Trade & Invest Africa

TRADE & INVEST AFRICA A F R I CA’ S L E A D I N G T R A D E

&

INVESTMENT JOURNAL

By Ocean Rock Media

Insight I Opportunities I Trends

A cut above the rest Nu-Fiberform Plastics SA (Pty) Ltd

E

Product outline

stablished in September 1996, Nu-Fiberform is one of the leading developers and suppliers of plastic and fiberglass products in South Africa, With dedicated members of staff and a keen, highly skilled management team, Nu-Fiberform enjoys the continued support of companies like Siyahamba Engineering, the Union Carriage Partnership and all the Transnet Rail Engineering Depots.

A company is more than simply a name on a profit sheet. With this in mind, Nu-Fiberform places great emphasis on its employees.

From the senior management team of chief executive officer Eddie Coetzee and operational manager Mpho Mohale to the factory floor, all Nu-Fiberform employees play an active role in the development of a company that is committed to superior customer service.

Eddie Coetzee, Chief Executive Officer The Employees Trust was formed in consultation with the company’s professional advisors and is in the process of being sanctioned by the Master of the High Court.

The sanctioning process is often a lengthy and involved one. Once this process is completed the share certificate confirming the transaction will be made available.

As demonstrated Mr Carton’s efforts, Nu-Fibreform and its management are fully committed to broad-based black economic empowerment (BBBEE).

Employee training and development Nu-Fiberform Plastics provides employment to a significant number of PDIs in its factory, and exceeds the minimum Bargaining Council wage rates.

Employee Trust Following a shareholders’ meeting on 23 October 2007 Nu-Fiberform’s majority shareholder and retired chairman, Eddie Carton, announced his decision to dispose of 64% of his interest in the company.

The main objective of this decision was to allocate shares to previously disadvantaged indi viduals (PDIs) within Nu-Fiberform by creating an Employee Trust for the benefit of all PDI employ ees. The Nu-Fibreform Plastics Employee Trust currently maintains a 20% stake in the company.

Staff are valued members of the team and management actively promotes the transfer of skills to them.

-

Nu-Fiberform Plastics utilises highly advanced production techniques, enabling the company to produce a wide range of fiberglass products including seats, monsoon ventilators, nose cones, canopies, grating, pultrusion products, window shrouds, portable modular building cubicles and ladders for its railway clients (including Union Carriage & Wagon, Transnet Rail Engineering, Siyahamba Engineering, Rolling Stock Repair Services and Metrorail) and non-railway clients (Airports Company South Africa, eThekwini Municipality, construction and mining companies, etc).

Please go to www.nu-fiberform.co.za for more detailed information on Nu-Fiberform’s products.

Empowerment Nu-Fiberform Plastics is totally committed to the development of previously disadvantaged entrepreneurs and entities.

As part of its ongoing efforts on sustainable entrepreneurial improvement and upliftment, the company has provided a modular build ing to a PDI, who by tremendous courage and hard work has created a shop which provides meals and beverages to the local industrial area.

Nu-Fiberform is committed to producing proudly South African products.

S&S/446290/E/Share Our Vision

Share our viSion

Since the introduction of our electricity-saving initiatives in 2003, the amount of electricity saved by South Africans would amount to 600 000 swimming pools of water, 21 million tonnes of CO2 emissions, plus a mountain of coal – 11 million tonnes to be exact. That amounts to the annual energy output generated by one and a quarter coal-fired power stations. More importantly, saved power is the cleanest, cheapest and greenest power there is.

Eskom Holdings SOC Limited Reg No2002/01527/06

s 1 r

The need to provide cleaner energy that will minimise the carbon footprint of electricity generation is as high a priority to Eskom as the need for increasing access for all at an affordable price. By saving energy, as well as doing all we can to reduce environmental consequences, together we can power a better future, and make our vision a reality.

www.eskom.co.za

Contents REGULARS

Foreword by Dr Denis Worrall Letter from the Editor News & Views Profiles Inspirational Places Events Calendar

COUNTRY OVERVIEWS Angola - Botswana Ghana – Kenya Lesotho - Malawi Mozambique – Namibia Nigeria – South Africa Swaziland – Tanzania Uganda – Zambia Zimbabwe

FEATURES 27 So who else is investing in Africa, and why?

The growing Chinese footprint in the African continent, and the soaring trade between the two, has dominated financial news around the world. Is this simply a strategic resources raid by China, or is there more to it? In our cover story we take an in-depth look at Africa’s growth and which other countries have been lured to the African fest.

31 The lions are roaring The second part of our cover story looks at economic growth on the African continent that is rapidly superseding the growth boom of the Asian economic tigers of the last decade. The overall African economy is expected to grow by some 5.5% or more during 2012/13, while a number of the fastest growing economies in the world, are in Africa.

36 Editor’s Interview: Phuti Mahanyele, CEO of Shanduka Group Our Editor’s Interview in this edition is with Phuti Mahanyele, the dynamic young CEO of the equally dynamic Shanduka Group based in Johannesburg. The interview reveals just what it is that motivates and drives this remarkable achiever, as well as where she is taking her company in these uncertain times.

41 Think big to win small Dr Reuel Khoza, Chairman of South Africa’s Nedbank Group Ltd writes on entrepreneurship. He questions whether entrepreneurship is being correctly understood and suggests that there is a need to think on the scale of a kind of Marshall Plan for small business development.

64 Mapping a new ICT path for Africa With major shifts taking place in the global economy, Africa is emerging as a serious market that will be worth some US$1.7trillion by 2020. In a market that will have over a billion consumers, information and communication technology is set to play a huge role in Africa’s growth.

46 Gas discoveries have Southeast Africa abuzz

68 Addressing Africa’s infrastructure challenges

With gas fields already valued in excess of US$1,600-billion having been discovered – and more still being discovered – off the coast of Southeast Africa, the once sleepy rural backwater region comprising Mozambique and Tanzania is on the verge of a massive economic explosion that will change it forever

With Africa seen as one of the world’s fastest growing economic hubs, meeting the demand for key infrastructure is a priority, and one that brings exciting opportunities, writes André Pottas, a partner with professional services firm Deloitte

50 A frica’s emerging $1-trillion super trade bloc

As investment in Africa continues to rise, vital skills are leaving the continent at an alarming rate, their replacement costing Africa about US$4 billion annually. At the same time African countries need to improve their own skills development capacities.

Plans are well on track for the launch by July 2014 of a new super African free trade area comprising about half of Africa and involving 26 countries from Libya in the north down to South Africa. The new trade bloc will be formed by integrating three existing African trade blocs and will be a precursor to a continental free trade area to be established by 2017. These developments will open up many new business and investment opportunities.

54 Zambezi River basin offers multi-sector investment opportunities A new World Bank study has found that Africa’s fourth-largest river basin - the Zambezi River basin in south-eastern Africa - offers significant multi-sector investment and developmental opportunities. The study singles out the potential development of the hydropower and irrigation sectors that could result in further economic opportunities, as being of particular importance.

58 Africa’s numbers: can you count on them?

What can be measured can be improved.

But what if the measurement is flawed, outdated or biased? This is the situation confronting governments, businesses and other organisations in Africa. Despite the plethora of facts and figures available, Africa in particular suffers from a dearth of good data with negative effect for the continent.

72 Africa’s big dilemma

78 Neighbours feel impact of SA’s troubles In the apartheid era South Africa’s neighbours were held hostage to South Africa’s “security interests”. Then came the post-1994 boom period brought on by South Africa’s democratisation. But now the countries of the Southern African Development Community (SADC) are once again feeling the impact of their giant southern neighbour’s internal troubles.

82 Energy-efficiency building standards now enforced in SA After years of delay energy efficiency building standards are finally to be enforced in South Africa in respect of most new buildings and renovations. All new buildings and renovations have to adhere to the new standards.

85 Smartphones know no boundaries Being connected to the rest of the world, no matter where you are on earth is a powerful notion. It has revolutionised our lives and business, and Africa is the fastest growing mobile market in the world.

TRADE & INVEST AFRICA A F R I CA’ S L E A D I N G T R A D E

&

INVESTMENT JOURNAL

By Ocean Rock Media

Š Copyright 2010\2011 Ocean Rock Media and/or Trade & Invest. No section or part of this publication may be copied, reproduced or distributed for any purpose in any format whatsoever without written permission of the publishers. All information provided and opinions expressed in this publication are provided in good faith but do not necessarily represent the opinions of this publication, publisher, or editor. Although every possible care has been taken to provide information that is true, correct, up to date and not malicious, Ocean Rock Media, its owners, staff and associates cannot be held legally liable in any way for any loss, damage, injury or expense however caused, arising from the use of or reliance upon, in any manner, of the information or opinions provided in this publication and does not warrant the truth, accuracy or completeness of the information provided.

41001/297x420/R4

Sur f the web @ 30 000 f t The first and only SA airline to offer wireless internet onboard.

Mango guests will soon be able to purchase G-Connect In-Flight Wi-Fi top-up vouchers while making their booking on the Mango website.

Get onboard, get online with Mango G-Connect In-Flight Wi-Fi.

S U L P o g n a

M

1 , s t fi e n e B l e v a r T 5

t c u d o r P Unique

Choose Mango PLUS and enjoy these benefits: 1 Change Flights without Charge* 2 Complimentary BIDVest Premier Lounge Access 3 An Extra 10 Kg Checked-in Luggage 4 Complimentary Food and Drinks on Board 5 15% Executive Carport Parking Discount at OR Tambo International Airport

Visit flymango.com and click on the Premium button. *Terms and conditions apply.

flymango.com

Why not today?

bizana Local Municipality is a coastal M municipality situated in the north-eastern part of the Eastern Cape

Province bordering Kwazulu Natal. The Municipality covers an area of approximately 2806km2 and the municipal seat is located on the R61 road connecting Kwazulu Natal south coastal boundary to the N2 leading to Umtata.

Mbizana is a developing rural tourism region with a depth of unique cultural attributes, natural attractions and layers of heritage.

History, Culture & natural attractions!

What the Mbizana region lacks in industrial ventures, it more than makes up for in wild, adventurous landscapes, stretching from the inland hills to the unspoilt coastline.

Making up a large portion of the former Transkei’s Wild Coast, this is God’s own country, with hills, waterfalls, a petrified forest, ancient archaeological sites, endless sandy white beaches, arugged coastline and scenic estuaries.

Natural Sight Seeing Places The Mbizana coast is endowed with exceptional natural beauty, unspoiled sandy beaches and is one of the seven areas in the world with unusually high levels of biodiversity. A large number of rivers and estuaries with spectacular gorges and deepforested ravines, rugged cliffs, sheltered beaches and lagoons provide a great variety of landscape along the seafront.

What to look out for • Waterfalls (Mpahlana, Mnyameni, Sikhombe, Leopard Gorge- Mtentu) • Estuaries (Mtentu, Sikhombe, Kwanyana, Mnyameni, Mpahlana, Mzamba) • Scenic Beauty • Caves & San Paintings • Whites Sandy unspoilt Beaches • Endemic species • Red Sand dunes • Political, Cultural & Historical Heritage Sites

Background of the Initiative

Mbizana local Municipality is prerogative to be situated in the border of KwaZulu Natal and Eastern Cape provinces. The municipality is endowed with pristine beaches lush vegetation and is known as for its endemic species. It is an internationally acclaimed biodiversity hotspot because of its fauna and flora and is the home to the legend Oliver Reginald Tambo.

The development of a 36 bed lodge at the Phambili Mampondo area is one of the Projects and augments efforts to upgrade the Multipurpose centre which serves as a gateway to Mbizana. This lodge taps into a readily available market of tourist coming from the KwaZulu Natal Province and therefore has a great potential to succeed.

The Reserve is intended to draw on the natural, cultural and historical attraction of the area on the south bank of the Umtamvuna River. The project is primarily a community based Natural Resource Management (NRM) initiative, drawing on tourism as the key economic driver to provide both the incentive and some degree of sustainability.

Mtamvuna Nature Reserve was informed by the conservation assessment that was undertaken as part of the wild Coast Projects to identify the key priority areas for conservation in the Wild Coast. Assessment identifies the expansion of the existing KZN Nature Reserve. The Mtamvuna is classified as a river mouth and is the only one of its type in this area. According to its national status is classified as a priority estuary. The area contains at least 1450 species, including a good proportion of Pondoland Centre of Endemism and the grassland contains up 80 endemic species.

Undertaken by then proved the project to be viable and its execution

may have economic spin offs hence negotiations with the Wild Coast Sun continued to construct the Gateway centre inside their premises in the serviced site.

Mbizana Local Municipality has partnered with Wild Coast Sun in this economic development initiative to ensure socio economic improvement of Mbizana community as well as tourism development within the region.

The Heritage theme park is also a tourism establishment that was constructed during the implementation of the O. R. Tambo heritage and tourism route which was funded by the Department of tourism.

There are 10 members that initiated the project though they have challenges in operating the establishment.

Objectives

The objectives of this task are as follows: • To assist the prospective investors in assessing the feasibility of operating tourism establishments in Mbizana.

• To establish a thriving and vibrant tourism destination that stimulates economic growth of the area.

• To ensure that tourism creates sustainable job opportunities (directly & indirectly) for previously disadvantaged people.

• To establish a meaningful partnership between the investors and communities to ensure involvement of communities in tourism development.

P. O. Box 12 Bizana 4800 or No 51 Main Street Bizana 4800

We Bring Together People

People

Conferencing & Events

Intelligence Consulting

People

People

Investor Relations

Strategic Marketing

Tel: +27 21 689 7881 • Fax: +27 21 686 4361 Enquiries: Info@omegainvest.co.za Website: www.omegainvest.co.za

Dr Denis Worrall Foreword

Extending African regionalism: A challenge to South African diplomatic skills

I

t was to be expected that Dr Nkosazana Dlamini-Zuma, the African Union’s new Chairperson for the following two years, would mention in her acceptance speech the need for greater African unity because it is a theme which goes back to 1959 and the independence of Ghana and its iconic leader Dr Kwame Nkrumah.

Aside from the historical legacy, Dr Zuma, a former wife of the South African President, and a former foreign minister would therefore have an instinctive interest in promoting African unity or, more realistically, African regional integration. How successful she will be, given that her election resulted from a highly-controversial and hard-fought campaign, obviously backed by the South African Government, remains to be seen. But few people in African public life can match her understanding of the importance of regional integration.

She assumes office with advantages few of her predecessors could have enjoyed. Africa right now enjoys an extraordinary positive image. At my company, Omega Investment Research, we experienced this with the 14th Annual Euro-African Trade and Investment workshops which we organized earlier this year in London and in Muenchen. The theme of these conferences was “Africa’s Time to Shine is Now!”, and the fact is we were delighted with the response.

Contributing to this positive view is the fact, agreed by the World Bank and the IFC, that Africa’s overall expected growth this year at 5.5% is obviously very impressive compared to the sickly European economy and even the US. The main reasons for Africa’s growth is that it is a source of natural resources and that the price and demand for natural resources has been strongly driven by China and other major developing countries’ phenomenal growth.

The second reason is the quality of Africa’s macro-economic management, which has improved dramatically, as has the quality of economic leadership in African governments. And another explanation for this sustained growth has been that debt levels have been low in Africa.

For all these reasons, there is no doubt that perceptions of Africa have changed, and with those perceptions come an increasing appetite for investment and business. To quote Donald Gips, US Ambassador to South Africa: “This rising prosperity in Africa will open new markets for American goods and create jobs in both regions. More and more people understand that the 21st Century will be the African Century.”

While a strong case can be made for Africa’s changing perceptions in the world and its enhanced economic performance, the fact is that one critical need in Africa is for greater regional integration. In fact, Ernst & Young in their excellent Africa report for 2012 Building Bridges concludes that the single biggest priority as far as Africa is concerned over the next decade should be the acceleration of the regional integration process.

It goes on to say that: “Simply put, if this process does not intensify, Africa will remain structurally marginalised in the global economy and African countries will struggle to attract a greater share of foreign investment.” This view is confirmed by our business clients and associates in Africa.

African integration is needed for some obvious reasons: • To foster inter-African regional trade; • To encourage infrastructural projects of scale between different countries; • To facilitate investment of scale across borders; and • Generally to project a more inviting image to the world and to international investors.

This will be Dr Zuma’s biggest challenge. But it is a challenge she will not be taking on alone. Businesses all over Africa clearly know that they would benefit from more open markets both from a trade and investment point of view and she will be able to assume their support for a more integrated Africa.

It is also not a case of starting from scratch. A regional integration process has been on the agenda for many years. The 1991 Abuja Treaty divided the continent into five regional areas: North Africa, West Africa, Southern Africa, East Africa and Central Africa. This was in preparation for establishing the combined African Economic Community (AEC) in six phases over thirty-four years.

The ultimate result ambitiously envisaged would be an economic union with a common currency, full mobility of factors of production and free trade among all countries on the continent.

Achieving something like the EU was obviously very ambitious; and while some progress has been made in creating regional blocs, much more needs to be done.

Incidentally, the most advanced regional economic community is the East African community, which includes Kenya, Tanzania and Uganda, with Burundi and Rwanda joining in 2007 to complete its current membership of five countries. The East African community has established its own customs union, a common market, and according to reports good progress has been made towards implementing the free movement of labour, capital goods and services.

This therefore is a market of close to 150 million people, with a combined GDP approaching US$100 billion and an economic growth rate in excess of 6% over the past decades.

The east African community therefore sets a standard that challenges other regions in Africa. But much more can be done with bilateral agreements between different countries. In this way, the foreign investor interest in Africa will in fact very dramatically increase.

• Dr Denis Worrall is Chairman of Omega Investment Research (Pty) Ltd and serves as Editorial Adviser to Trade & Invest Africa.

Editor Stef Terblanche Editorial Adviser Dr Denis Worrall Staff Writers A.B. Gondwe Etienne Lefebre Terblanche Contributing Writers Helen Bimbassis Dr Reuel Khoza Simon Allison Andre Pottas Chris Yelland Design Kurt Daniels, Dalicia Du Plessis Production Liaison Jenna Fourie Sales Manager Nangamso Malkas Marketing Advisors Nangamso Malkas, Robin Temmers Circulation & Subscription Jenna Fourie Finance Control Claudia Adams Publisher Shakier Brenner Ocean Rock Media Suite 401 Sir Lowry Studios 95 Sir Lowry Road Cape Town South Africa Email: info@oceanrockmedia.co.za Tel: +27 (0)21 461 7482 Fax: +27 (0)21 461 7471

Letter from the Editor

trumpeted with growing confidence by Africans and non-Africans alike. While the rest of the world still fears the confluence of a triple threat, that is the European debt crisis, the fiscal cliff in the United States, and a sharp slowdown in China, Africa continues on an economic growth path not seen before. It is anticipated that final figures for 2012 will show growth in the 5-6% range, with prospects of projected growth of up to 7% by 2015. This brings me to this edition of TIA.

A year.

s we go to print with this, our Summer 2012/13 Edition of Trade & Invest Africa (TIA), we look back on an eventful

London hosted a successful Olympic Games, while Americans returned Barack Obama to the White House for a second term. Europe battled, and continues to battle, with its sovereign debt crisis. China’s economic performance slowed down. Disasters caused by earthquakes, floods, cyclones and other natural phenomena affected many people in different parts of the world, as did armed conflicts.

Here in Africa we also had our fair share of major events that affected our continent and its people for better or worse. South Africa’s Nkosazana Dlamini-Zuma was elected chairwoman of the African Union Commission. Still in South Africa, Jacob Zuma was re-elected president of the ruling African National Congress for a second term, while the parts of the country’s mining and agricultural sectors were shaken by unprecedented violence and wildcat strikes. For East Africa, and in particular for Mozambique, the future looks bright as more and more natural gas is being discovered.

In North Africa countries affected by the Arab Spring started rebuilding themselves.

However, conflicts continue to destabilise countries such as Mali, Somalia, northern Nigeria, Sudan, and Democratic Republic of Congo.

On the economic front the African story continues to be a good one, and certainly better than in most other parts of the world.

The claim that “Africa’s time is now” has been heard more and more over the last few years,

In this edition we focused on Southern Africa, home to Africa’s biggest economy.

Our cover story takes an in-depth look at Africa’s strong growth and who the international players are that are helping to drive this. Much has been written and said about China’s huge presence in the continent these last few years. She has been accused of conducting a resources raid in Africa, feeding her hungry economy in a world where many strategic resources are becoming scarce, and leaving nothing of value behind. We asked the question whether this was indeed true, and if not, who else if anybody, is also investing in and increasing trade with Africa. The answers we found were most interesting.

Our second cover story looks at the bestperforming African economies, and what the expectations are for the next few years in this regard. There can be little doubt that the Asian tigers will have to make way for the African lions!

Two developments that go hand in hand with the above are the massive recent discoveries of natural gas along Africa’s south-eastern seaboard and the establishment of a new $1-trillion super trade bloc. The latter involves a merger of three existing trade blocs by 2014, bringing together 26 countries across almost half of Africa and stretching from Libya to South Africa. This exercise is viewed by its architects as a precursor to a continent-wide free trade area by 2017.

At the same time much of the new trade bloc currently taking shape will benefit from the vast gas discoveries off Mozambique and Tanzania. The discoveries will turn these two countries into major energy players with enough gas to supply most of Europe for 6 years or more, and this is only the beginning. The gas finds are sure to provide this once economically depressed region with much-needed cash, lead to the creation of infrastructure and stimulate development.

TIA

André Pottas, a partner with professional services firm Deloitte, takes a look at the critical need for Africa to address its infrastructure challenges, and the opportunities that may come with this. Staff writer Etienne Lefebre Terblanche tells us more about a new World Bank study dealing with Africa’s fourth-largest river basin - the Zambezi River basin - which offers significant multi-sector investment and developmental opportunities.

Independent writer Helen Bimbassis confronts what has become a major headache for Africa, namely the ongoing flight of vital skills from Africa at a time when these skills are much needed at home. And Dr Reuel Khoza, Chairman of South Africa’s Nedbank Group Ltd, shares his penetrating thoughts on entrepreneurship with us. In other stories in this edition we look at just how reliable the official statistics of African countries are, and how this might affect business, as well as some interesting new developments across Africa in the field of information and communication technology.

In our regular Editor’s Interview, I have the pleasure of presenting to our readers one of Africa’s most formidable businesswomen, Phuti Mahanyele, CEO of South Africa’s Shanduka Group. Then there are our regular sections in which we bring you the latest continental news and business intelligence, take you to some outstanding, inspirational destinations, and more.

It truly is an exciting time to be in Africa. We trust that you will enjoy reading this edition of TIA as much as we enjoyed putting it all together for you. We look forward to bringing you even more in 2013 and wish our readers and advertisers all of the best for the year ahead.

STEF TERBLANCHE Editor

Welcome Welcome Welcome To To To Inkanyiso Inkanyiso Inkanyiso Technologies.

Technologies.

Technologies.

Inkanyiso Inkanyiso Inkanyiso Technologies Technologies Technologies is aistruly aistruly ablack truly black owned black owned owned company company company thatthat was that was founded was founded founded on 16 on October 16 on October 16 October 2006 2006 to 2006 be to a be tostate a bestate a state of the of the art of the art Information art Information Information Systems Systems Systems andand Information and Information Information Communication Communication Communication Technology Technology Technology Specialist Specialist Specialist company. company. company.

Inkanyiso Inkanyiso Inkanyiso Technologies Technologies Technologies Vision Vision Vision is toisbe toisthe be to the be most the most respected most respected respected provider provider provider of ICT of ICT of products ICT products products andand services and services services to the to the African to the African African conticonticontinent nent based nent based based on superior on superior on superior domain domain domain knowledge knowledge knowledge underscored underscored underscored by unparalleled by unparalleled by unparalleled service service service commitment. commitment. commitment.

TheThe founders The founders founders of the of the company of the company company is two is two dynamic is two dynamic dynamic black black females black females females whowho would who would would likelike to like make to make to amake difference a difference a difference to this to this to this country, country, country, by supplying by supplying by supplying costcost effective cost effective effective andand efficient and efficient efficient IS/ICT IS/ICT IS/ICT products products products andand professional and professional professional services services services to its to clients its to clients its clients Inkanyiso Inkanyiso Inkanyiso Technologies Technologies Technologies is an is upcoming an is upcoming an upcoming small small medium small medium medium company company company thatthat is that innovative is innovative is innovative through through through thethe assistance the assistance assistance of of of other other state other state ofstate the of the art of the art Distributors art Distributors Distributors likelike Mustek, like Mustek, Mustek, Pinnacle, Pinnacle, Pinnacle, Tarsus, Tarsus, Tarsus, Axiz, Axiz, GARMIN Axiz, GARMIN GARMIN etc.etc.etc.

OurOur support Our support support services services services areare comprehensive are comprehensive comprehensive withwith a with client a client a focus client focus on focus after on after onsale after sale services sale services services in order in order in to order satisfy to satisfy to satisfy thethethe needs needs needs of our of our of clients. our clients. clients.

WeWe also We also ensure also ensure ensure thethe comprehensive the comprehensive comprehensive screening screening screening \ profiling \ profiling \ profiling of our of our of consultants our consultants consultants to ensure to ensure to ensure thatthat the that the profile the profile profile supersupersupersedes sedes sedes thethe profile the profile profile of the of the professional of the professional professional service service service needed needed needed by the by the by clients. the clients. clients.

Inkanyiso Inkanyiso Inkanyiso Technologies Technologies Technologies alsoalso foster also foster a foster people a people a people centred centred centred approach approach approach withwith regard with regard regard to the to the placement to the placement placement of consultants of consultants of consultants at our at our at clients our clients clients in order in order in to order become to become to become a sought a sought a sought after after company after company company to be to associated be to associated be associated with. with. with.

Board Board Board Of Directors: Of Directors: Of Directors: Director: Director: L MLSingo M Singo (Merlyn) (Merlyn) Director: MLSingo (Merlyn) Cell: Cell: 0723974573 0723974573 Cell: 0723974573 0833062394 0833062394 0833062394 Tel:Tel:Tel: 0127557085 0127557085 0127557085 Fax: Fax: 0866059745 0866059745 Fax: 0866059745 E-mail:merlynsingo@inkanyiso.co.za E-mail:merlynsingo@inkanyiso.co.za E-mail:merlynsingo@inkanyiso.co.za

Director: Director: Director: M EMMajozi EMMajozi E Majozi (Elizabeth) (Elizabeth) (Elizabeth) Cell: Cell: Cell: 0835107846 0835107846 0835107846 Tel:Tel:Tel: 0127557085 0127557085 0127557085 Fax: Fax: Fax: 0866059745 0866059745 0866059745 E-mail: E-mail: E-mail: tshidimajozi@inkanyiso.co.za tshidimajozi@inkanyiso.co.za tshidimajozi@inkanyiso.co.za

Contact Contact Contact UsUsUs

Address: Address: Address: 304304 river 304 river villa river villavilla 71 Bourke 71 Bourke 71 Bourke street street sunnyside street sunnyside sunnyside 0002 0002 0002

Africa should lead PostSA is World Bank’s ‘most 2015 development agenda improved’ in facilitating cross-border trade

News & Views Compiled by TIA Staff Writers from Various Sources

A roundup of some of the most important news that allows you to stay abreast of developments across Africa…

ADDIS ABABA - Speakers at the 13th session of the Regional Coordination Mechanism held in November in Addis Ababa, stakeholders strongly urged that Africa’s priorities for the post-2015 development agenda be clearly spelt out and that African countries should join the efforts in shaping the post-2015 development agenda set by the United Nations.

“Africa is looking for MDG-plus, an agenda that recognises the impact of climate change, and the global finance and food crisis. The new agenda must involve consultation on the African side,” said African Union Commissioner for Economic Affairs Dr Maxwell Mkwezalamba, who spoke on behalf of AUC Chair Dr Nkosana Dlamini-Zuma.

The RCM is an annual high-level forum organised by the UN Economic Commission for Africa to foster debate on Africa and to determine how best to coordinate UN system support to the African Union and New Partnership for Africa’s Development (NEPAD). It is a vital mechanism to review progress made by NEPAD and to ensure that UN support is channeled effectively, based on the Continent’s needs and priorities.

The two-day meeting, chaired by the UN Deputy Secretary-General Jan Eliasson and the AU Deputy Chairperson, Ersatus Mwencha, brought together representatives of UN agencies, the AUC, NEPAD, Regional Economic Communities (RECs) including the East African Community (EAC) and the Southern African Development Community (SADC) as well as member states and development partners to strengthen the momentum of the Millennium Development Goals and to assess what happens after the 2015 deadline.

Source: Nepad

JOHANNESBURG – South Africa’s finance minister, Pravin Gordhan, says the World Bank has identified South Africa as the country that has shown the most improvement in the ease of trading across borders, reported the Johannesburg business daily Business Day. The improvement was a result of the customs modernisation programme of the South African Revenue Service (SARS), which Mr Gordhan said was having a “significant impact” on trade facilitation for legitimate goods.

Mr Gordhan quoted the World Bank Doing Business Report 2013, published in October, as saying: “In 2011-12 South Africa improved the most in the ease of trading across borders as measured by Doing Business. Through its customs modernisation programme it implemented measures that reduced the time, cost and documents required for international trade.

Improvements in South Africa have effects throughout southern Africa. Since overseas goods to and from Botswana, Lesotho, Swaziland and Zimbabwe transit through South Africa, traders in these economies are also enjoying the benefits.”

Source: Business Day

Nigeria’s Tourism Industry Gets International Recognition

LONDON - President Goodluck Jonathan’s transformation agenda in the travel and tourism industry got a huge boost from two independent global reports which described Nigeria as a potential powerhouse in the travel and tourism markets in the world.

NEWS & VIEWS

The two reports from the World Travel Market (WTM) 2012 Industry Report and WTM Global Trends Report carried out with Euromonitor International were released at the on-going four-day World Travel Market exhibitions taking place in Excel, London, United Kingdom. The 2012 Industry Report personally signed WTM’s Chairman, Fiona Jeffery, said the 40-page report which highlighted Nigeria as a viable travel and tourism destination was arrived at after thorough surveys conducted by its experienced staff.

Other countries listed together with Nigeria include Thailand, United Arab Emirates (UAE), Chile, South Korea and Singapore. The WTM Global Trends Report acknowledged by Fiona and Global Head of Travel and Tourism Research of Euromonitor International, Caroline Bremnel, revealed how the Nigerian film industry, dubbed Nollywood, has made the country the highlight of the African tourist industry with Africans making use of the increase in nofrills airline routes to visit the country made famous in the movies.

The 53-page report tagged “AfricaDestination Nollywood”, said Nollywood was the world’s second largest in volume terms after Bollywood (India) and ahead of Hollywood (US) with over 2,000 films produced annually. The report said Nollywood films were popular in African countries like Sierra Leone, Cameroon, Gabon, Kenya, South Africa, Democratic Republic of Congo and Gambia.

“I think we have got something to work with. Our focus is (on) organic growth, building on what we have. This does not rule out acquisitions, but this will be done on its merits,” he says.

His appointment plugs a hole left last year when former executive Rob Leith, who had been asked to take over the Africa portfolio, joined Russian investment bank Troika Dialog.This threw Standard temporarily off track. Months later, group CEO Jacko Maree and his three deputy CEOs appear to have found a replacement in Mr Schlebusch, who was the former head of the personal and business banking unit in South Africa.

“We have competitors but we are the true African bank because we have been basically reliant on Africa (including South Africa) for our growth,” he says.

His challenge is to grow return on equity from operations in Africa outside South Africa, which analysts say has not been impressive. At the same time, Standard has to battle its South African and global banking rivals who have similar growth ambitions.

FirstRand, Nedbank and Absa and its parent Barclays are investing in Africa. Also, Standard Chartered Bank recently said it would invest $100m over three years to build 110 new branches in eight countries including Kenya, Ghana, Nigeria and Mozambique.

This is not to say that the requirement for development finance has decreased poverty in Africa is still a serious issue, with the last Africa Progress Report stating that almost half of the continent’s population earns less than $1.25 a day - but merely that the focus for its input has shifted.The UK’s development finance institution, CDC, has recently announced its intention to focus its new investment strategy on building businesses and creating jobs in Africa and in South Asia. Once again, supporting the local private sector is the focus.

That is a necessary strategy. With a population set to double by 2050, yet no clear sign of where the jobs to support this demographic growth will come from, Africa is facing the risk of stalled economic development and widespread civil unrest unless swift action is taken.

SMEs are the driving force of a country’s GDP, wealth and government tax revenues, which in turn fund public services and infrastructural reform critical for socioeconomic growth. In fact, every $1 invested in an SME generates an additional $10 in the local community. SMEs are also the primary source of new job creation. In high-income countries, small businesses provide 60 percent of employment opportunities compared to less than 20 percent in developing countries. There is a huge opportunity - and acute need - for this percentage to grow.

Source: Business Day

Source: Jacana Partners / AllAfrica.com

Source: AllAfrica.com / This Day / World Travel Market / WTM Global Trends Report

Investing in African SMEs - a New Approach to Private Equity

AfDB invests US$7m in Southern African SME fund

LONDON - Investing in African SMEs requires a new private equity model, writes Simon Merchant, CEO of Jacana Partners, a panAfrican private equity company investing in SMEs. The role of the development finance institution is under debate. As the countries they serve increasingly become “engines of global growth” (as coined by former World Bank president Robert Zoellick), with the capacity, resources and entrepreneurial talent to make their own economic destinies, so the emphasis on including the local market private sector in development finance projects has increased.

PORT LOUIS - The African Development Bank (AfDB) has recently approved a US$7million equity investment in the Business Partners International Southern African SME Fund (BPI SA). This contribution will allow BPI SA to increase access to finance and capacity building for small and mediumsized enterprises (SMEs) within various sectors in the southern Africa sub-region, thereby boosting income generation and job creation.

The Mauritius-based BPI SA Fund will be managed by Business Partners International, a subsidiary of Business

Standard Bank back on track to Africa

JOHANNESBURG - Standard Bank’s new group head of personal and business banking, Peter Schlebusch, says there are opportunities “screaming at us” in subSaharan Africa, reports Sure Kamhunga in the Johannesburg Business Day. But he acknowledges it will be a tough battle as rivals are also eyeing the same opportunities. This is despite the bank having a strong balance sheet and claiming to be the region’s largest bank by assets and income.

NEWS & VIEWS

Partners Limited, a South African provider of SME financing solutions. This fund, which has targeted capital commitments of USD 40 million, invests in SMEs with annual revenues of under USD 10 million and fewer than 300 employees. It has wholly-owned local subsidiaries in Namibia, Zambia, Malawi and Zimbabwe. Target investment size will range between USD 50,000 and USD 1 million, diversified across industries and sectors.

The fund manager has a track record of setting up and managing funds in various sub-Saharan African countries. These funds have helped create private sector growth through job creation, skills transfer and mentorship.

Source: African Development Bank

SkyVision confirms African investment

JOHANNESBURG - SkyVision Global Networks has announced that it will continue expanding its local presence across Africa.

CEO of SkyVision, Doron Ben Sira, says: “It was clear from day one that if SkyVision was to enhance its market leadership in Africa, the company would have to expand its strong presence on the continent. After an intense strategic process, we have made a major leap in this direction over the past year and will continue to do so moving forward into 2013.”

A key step was to establish a local office and teleport in South Africa. SkyVision South Africa is positioned in a prime tactical position to respond to South African businesses requiring high quality communication services over fibre, wireless and satellite to Africa and from Africa.

SkyVision’s new iDirect hub in Johannesburg supports the latest iDX 3.1 iDirect release, and takes full advantage of the Amos 5 satellite with its broad coverage of southern and sub-Saharan Africa both on C Band and Ku Band.

SkyVision has also recently initiated a major expansion into Western Africa with the acquisition of Afinis, which gives it access to expanding markets in Francophone Africa.

Source: IT-Online

Latest air freight statistics show positive African growth

ACCRA - International Air Transport Association (IATA) has commended the Africa continent for its impressive performance in the recent Cargo Market Analysis for the third quarter of the year.

According to the analyses, African Airlines transporting freight in the region witnessed a 10.2 per cent increase in demand in August, continuing 2012’s positive growth trend.This was contained in a statement issued in Accra and copied to Ghana News Agency by DHL in Accra on Tuesday.

Mr Charles Brewer, Managing Director of DHL Express Sub-Saharan Africa, noted that the positive achievement made by the continent was a positive step to boost the business industry as it translates into economic growth for the continent.He said the increasing freight volumes in the region could be linked to improve business and consumer confidence as airline industry performance tracks developments in the global economy.

Source: Ghana Business News

AfDB and Tunisia Sign a 387.6 Million Euro Loan Agreement to Support the Reforms During Transition Period

TUNIS - The African Development Bank, represented by Vice-President Ndoumbe Lobé and the Tunisian Minister for Investment and International Cooperation, Riadh Bettaieb, signed a 387.6 million euro loan agreement for the financing of the Economic Recovery and Inclusive Development Support Program (PARDI) for Tunisia. The loan was approved by the AfDB Board of Directors at its October 28 meeting.

“This program seeks to assist our country to successfully surmount this period of transition with a rapid and efficient response to the urgent and immediate needs coming in the wake of the revolution,” said Minister Bettaieb.

The program is a continuation of the Bank’s Governance and Inclusive Development Support Program (PAGDI) approved in May 2011, and reinforces the Bank’s support of post-revolutionary Tunisia in areas relating to economic growth and the reduction of regional disparities. “The new program seeks to put the country on the road to inclusive growth and responds to the needs expressed by the Tunisian people through a series of measures aimed at the reduction of disparities, the promotion of growth, competitiveness and equal opportunities for employment,” explained the Director of AfDB’s Human Development Department, Agnes Soucat.

Source: African Development Bank

Nile Water Not Helping Farmers, Report Says

NAIROBI - The Nile Basin has enough water for agriculture but water management policies in its 11 countries risk locking out small-scale farmers, a new research has found out.

The research, which has been published in a new book, The Nile River Basin: Water, Agriculture, Governance and Livelihoods, calls on governments to invest in agricultural water management initiatives like irrigation and rain water harvesting to help small-scale farmers grow food throughout the year.

“Agriculture, the economic bedrock of all eleven Nile countries and the most important source of income for the majority of the region’s people, is under increased pressure to feed the basin’s burgeoning population already 180 million people, half of which live below the poverty line,” the book says.

The research says that even though the Nile and its tributaries are abundant lack of access to water is another area that could negatively affects the poor.

NEWS & VIEWS

“In the Nile Basin, poor people especially women living further away from water sources travel longer distances to collect water. But by rainwater management livestock and fisheries would therefore benefit from policies that give them greater access to water,” the book says.

Dr Seleshi Bekele, scientist and a coauthor from the United Nations Economic Commission for Africa (UNECA) says currently governments in the basin are giving scant attention to improvement of water management in their policies to small scale farmers which is key to the region’s economic growth, food security and poverty reduction.

Source: The Star / AllAfrica.com / The International Water Management Institute (IWMI) and Consultative Group on International Agricultural Research.

ECOWAS Calls for Comprehensive Action Plan for Infrastructure Development in West Africa

YAMOUSSOUKRO – The Economic Community of West African States (ECOWAS) has called on Member States and other stakeholders to evolve a comprehensive and concerted Action Plan to advance the development of infrastructure programme and projects in the region.

Speaking at the opening of a two-day Regional Experts Meeting in Yamoussoukro, Cote d’Ivoire on Wednesday 7th November 2012 on the Programme for Infrastructure Development in Africa (PIDA), the ECOWAS Commissioner for Infrastructure Mr. Ebrima Njie, noted that the lack of adequate infrastructure and efficient services constituted “major bottlenecks to the attainment of regional socio-economic development and integration.”

Consequently, he said the region continues to struggle under “economic backwardness,” in spite of its rich agricultural and mineral resource endowments.

While commending development partners and donors including the World Bank, European Union and the African

Development Bank for their continued support to ECOWAS, he stressed the need for “strong cooperation and coordination between all PIDA stakeholders,” to make the region and the continent competitive and major players in the global market economy.

Growth for Barloworld in Southern Africa, Russia

Source: Awoko

AfDB launches African Guarantee Fund for SMEs ADDIS ABABA - The African Development Bank (AfDB) recently announced the launch of its new African Guarantee Fund for the purpose of improving access to finance for small and medium-sized enterprises (SMEs) across Africa. The bank believes that SMEs are the best candidates to achieve inclusive growth in Africa as they contribute significantly to income generation and job creation.

The fund will provide financial guarantees to financial institutions to stimulate financing to SMEs with the aim of unlocking their potential to deliver inclusive growth in the continent.

The AfDB, in partnership with Denmark and Spain, will fund the AGF. Other donors, development finance institutions and private investors are expected to join to provide additional capital and scale up its operations.

However, financial access is consistently reported as one of the major obstacles to SME growth and development. Only 20% of African SMEs have a line of credit from a financial institution.

AfDB president Donald Kaberuka praised the Danish and Spanish governments for their continued support for the initiative, particularly in times of fiscal austerity, and celebrated a two-yearlong successful partnership triggered by the Africa Commission’s recommendation in 2009 to implement the AGF as one of the initiatives to tackle youth unemployment on the continent.

Source: African Development Bank / Creamer Media’s Engineering News at http://www. engineeringnews.co.za/article/afdblaunches-african-guarantee-fund-to-supportsmes-2012-06-04

JOHANNESBURG – Major South African industrial group Barloworld has seen significant growth in Southern Africa and Russia. Posting 70% half-year headline earnings growth, it said it expected a strong second half, driven by significant mining equipment deliveries in Southern Africa and Russia.

Commodity demand remained strong, despite the Chinese growth outlook moderating. The group’s mining order book for Southern Africa was at record levels, it said.

The company, listed on the Johannesburg Securities Exchange (JSE), grew its revenue 19% in the six months ended March, to R28.1-billion (US$3.4billion), while operating profit grew by 50% to R1.3-billion and headline earnings a share increased to 245c. Barloworld reported a US$90-million order book in Russia.

But it was even more so the groups’ R6.2-billion (US$750-million) order book in Southern Africa that caused its optimism.

The region contributed first-half revenue of R7.5-billion (US$908-million), up 41% from the prior period and mainly driven by mining and contract mining activity.

The group reported that construction activities continued to slow in South Africa, while the automotive industry was also anticipated to slow during the year. In logistics, Barloworld’s Southern African business had seen good volume increases.

Source: Creamer Media’s Engineering News / http://www.engineeringnews.co.za

Major tourism event to be held in Cameroon NEW YORK – The Africa Travel Association (ATA) has announced that its 38th Annual ATA World Congress will be held in Cameroon, West Africa in 2013. The annual event is the travel organisation’s largest international tourism industry meeting.

The congress will bring together from around the world hundreds of tourism leaders and professionals ranging

NEWS & VIEWS

from African tourism ministers, to representatives of tourism boards, tour operators, travel agencies, conference and incentive operators, ground operators, airlines, hotels, travel trade media and more.

Cameroon previously hosted ATA’s premier event in the country’s largest city Douala, and in 2001 it held its Eco-Tourism Symposi um in the Cameroonian capital, Yaounde.

This annual event offers a unique opportunity for networking for all buyers and sellers who have an interest in Africa as a destination.

UNCTAD’s new investment initiative praised

JOHANNESBURG –South Africa’s Minister of Trade and Industry, Dr Rob Davies, praised the new investment framework of the United Nations Conference on Trade and Development at its launch in Johannesburg in July.

“UNCTAD provides the policy knowhow for moving from the traditional investment model to the new sustainable development model”, Davies said of UNCTAD’s new Investment Policy Framework for Sustainable Development (IPFSD).

The launch of the framework was attended by more than 100 participants from government, the media, the private sector, and academia, at the Mandela Institute, in Johannesburg.

Today, Africa is one of the fastest growing regional economies and offers the highest rate of return on investment of any region. South Africa, the continent’s economic powerhouse, is currently developing a new investment and industrial policy aimed at upgrading and strengthening its competitiveness, and is listed by the UNCTAD World Investment Report 2012 as one of the top prospective host economies for foreign direct investment in the next two years.

Source: UNCTAD Vast Namibian water source discovered

Vast Namibian water source discovered WINDHOEK - A major newly discovered water source in Namibia could have a major impact on development in sub-Saharan Africa’s driest country. Estimates suggest the aquifer could supply the north of the country for 400 years at current rates of consumption.

Scientists say the water is up to 10,000 years old but is cleaner to drink than many modern sources. However, there are concerns that unauthorised drilling could threaten the new supply because a smaller salty aquifer sits on top of the new find.

The 800,000 people who live in northern Namibia depend for their drinking water on a 40-year-old canal that brings the scarce resource across the border from Angola.

Over the past decade the Namibian government have been trying to tackle the lack of a sustainable supply in partnership with researchers from Germany and other EU countries. They have now identified a new aquifer called Ohangwena II, which flows under the boundary between Angola and Namibia.

Martin Quinger, from the German federal institute for geoscience and natural resources (BGR), says that the new aquifer has great potential to change the nature of farming in the area. As well as providing a new source for agriculture in a region the aquifer will augment existing potable supplies. One of the biggest advantages of the new aquifer could be in helping people cope with climate change.

Source: The Daily Star / http://www. thedailystar.net

Bank ready to assist with Continental Free Trade Area by 2017 ADDIS ABABA - The African Development Bank (AfDB) stands ready to assist African countries in implementing the physical infrastructure needed for the establishment of the Continental Free Trade Area by 2017, said its president, Donald Kaberuka.

Addressing the NEPAD Heads of State and Government Orientation Committee which met during the African Union Summit held between 9 and 16 July 2012 in Addis Ababa, Mr Kaberuka echoed the

call of the African countries “for the development of trade-related infrastructure and productive capacity building programmes” as well as “an enabling policy and legal framework so as to contribute specifically to the boosting of intra-African trade.”

Kaberuka said he was confident that intra-African trade and African exports to the rest of the world could grow very fast if existing efforts were scaled up to improve the continent’s physical infrastructure.

Efforts to address physical infrastructure should also look at “soft infrastructure” constraints such as regulatory barriers, restrictive regulations on movement of goods and people, poor logistics services and of late, challenges in accessing trade finance, he said.

Recognizing that finance is the engine that drives trade, Mr Kaberuka decried the fact that with the advent of the financial crisis, businesses in at least a third of African countries were now paying a premium of about 10 percent on trade loans on top of cash collateral requirements.

He noted that the AfDB had responded to the trade finance crunch by establishing a USD 1 billion temporary Trade Finance Initiative (TFI) in 2009. The TFI has thrown a lifeline to hundreds of businesses across Africa, saving thousands of jobs and generating millions of dollars in revenue for firms and their governments.

Source: African Development Bank

South Africa and Angola sign infrastructure pact LUANDA - South Africa and Angola have signed a technical cooperation agreement to support infrastructure development in the oil-producing country, as part of a drive to stimulate increased trade and economic cooperation among countries in the southern African region.

“The intention of the agreement is to support the infrastructure development that is currently taking place in Angola and make sure that small and big industries are supported through such programmes,” South African Deputy Trade and Industry Minister Elizabeth Thabethe said at the signing ceremony.

The agreement was negotiated between the Department of Trade and Industry’s (DTI’s) regional spatial development initiative programme, based at the Development Bank of Southern Africa, and the Industrial Development Institute of Angola.

NEWS & VIEWS

Angola’s Deputy Minister of Geology, Mines and Industry, Kiala Gabriel, said the agreement would assist with the infrastructure backlog that his country was currently facing.

The agreement emanates from a memorandum of understanding on trade and industrial cooperation signed by Trade and Industry Minister Rob Davies and his Angolan counterpart in 2009.

Source: SA Government News Agency / http:// www.sanews.gov.za

African Development Bank helps Rwanda with infrastructure

KIGALI - The Government of Rwanda and the African Development Bank (AfDB) have signed two financing agreements of a loan totalling around US$68-million to construct a part of the Kivu Belt road bridging the western part of Rwanda.

Apart from improving local transport, the road will also facilitate intra-regional trade along the North-South Corridor connecting Democratic Republic of Congo, Burundi and Tanzania.

Discussions are ongoing to finance other two additional roads including BaseNyagatare road and Kagitumba-Kayonza scheduled for 2013 and 2014 respectively.

According to officials, this is the third phase of the bank financing the roads. The whole project of Kivu Belt road will cover 185 km in total and is supposed to be completed in a four-year time at the cost of US$ 350 million. So far, US$ 320 million has been mobilized.

Source: AllAfrica / Rwanda Focus

Dlamini-Zuma’s AU post brings opportunity

JOHANNESBURG - The head of South Africa’s Public Investment Corporation, Elias Masilela, believes the election of Nkosazana Dlamini-Zuma as AU Commission chairwoman has created a window of

22

opportunity to drive an African investment programme from South Africa.

That would probably be true not only for South African businesses, but also for foreign or multinational businesses wishing to enter Africa via South Africa. This would tie in neatly with the view held by Brazil, Russia, India and China when they invited South Africa to join them in the BRICS group, namely that South Africa is the gateway to Africa for business.

Masilela told the second Nedbank New Partnership for Africa’s Development (Nepad) Business Foundation Networking Forum that South Africa’s growth depends on the development of the rest of the continent. It was important therefore, he said, that South Africa started looking at investment opportunities for its businesses in the rest of the African continent.

It was this realisation that had prompted the PIC to launch an Africa strategy in which it has committed 5% of assets under its management, or about R50-billion (US$6.1billion), to invest in the rest of the continent, Mr Masilela said.

AfDB bolsters Gabon renewable energy with €57m loan

TUNIS - The African Development Bank (AfDB) Group, through its private sector window, recently approved a senior loan of €57.5-million to the Coder Hydropower Project in Gabon. The loan will go towards the design, construction and operation of two run-of-river hydro projects in Ngounie Province and North Gabon. The two power plants will generate 70 MW and 52MW respectively.

Despite a high electricity access rate of up to 83%, the Gabon electricity sector still faces frequent electricity shortages and blackouts resulting from high urbanization.

Gabon’s current power shortages hinder the country’s economic and social growth, making it a high governmental priority to revitalize the electricity supply and lower electricity prices.

The government’s goal is to increase generating facilities from 373 MW to 1200 MW by 2020. The current electricity production is split about 50:50 between hydro and diesel oil and Gabon also want to cut environmentally unfriendly and costly diesel power generation.

Source: African Development Bank

TRADE & INVEST AFRICA

Zambia seeks maximum 25% stake in new mines to bolster investment & jobs

LUSAKA – The Zambian government has announced its plans to own up to 25% of new mines in the country. Africa’s biggest copper producer sees this as part of its drive to draw investors to boost employment, Mines Minister Christopher Yaluma said recently.

The Zambian government says it wants to create an “enabling environment” for mining investment in order to stimulate job creation. The country has a 14% unemployment rate.

Yaluma said the Zambian state had no intention to raise its ownership in most of the mining houses. The state already has a stake of between 10 and 20% in most Zambian mines. It also has a 35% stake in Maamba Collieries, the largest coal mine in the country. The Zambian state holds stakes in mines through its ZCCM Investment Holdings.

Companies that already own mines in the country include Canada’s First Quantum Minerals, the UK’s Vedanta Resources and Barrick Gold, the biggest producer of the precious metal.

Source: Bloomberg, Business Report & Google News

AfDB gives US$ 15-million for trade insurance to support African growth

NAIROBI - The African Development Bank (AfDB) recently approved a US$15-million equity investment in the African Trade Insurance Agency (ATI) to increase its capital base. This contribution will allow ATI to increase its provision of trade, credit and political risk insurance products that encourage foreign direct investment and trade in Africa.

Based in Nairobi, Kenya, ATI was founded in 2001, under an International Treaty by African Member States at the

NEWS & VIEWS

initiative of Common Market for Eastern and Southern Africa and with the technical and financial support of the World Bank.

ATI has a mandate to increase investment and trade in Africa through the provision of medium-long term credit and political risk insurance as well as other risk mitigation products to African countries and related public and private sector actors.

The AfDB’s equity investment in ATI will increase its capital base and allow the underwriting of more business in trade, political and credit insurance to meet strong demand as well as to enhance overall profitability.

“ATI uses innovative risk mitigation instruments to catalyze private sector financing into a range of critical sectors from core infrastructure to trade finance” said Tim Turner, AfDB Private Sector and Microfinance Director.

Source: African Development Bank

Equatorial Guinea leads Africa in per capita health investment

MALABO - According to a new World Health Organization (WHO) report Equatorial Guinea and Botswana lead Africa in per capita investments in health care. However, the gap in spending between Africa and the rest of the world is still a matter for concern.

The statistics were provided in the WHO’s 2012 Health Financing and Health MDGs (Millennium Development Goals) Scorecard and Africa’s first Multi Year Health Financing Trends Analysis. The surveys show Equatorial Guinea’s per capita annual spending at $612 and Botswana’s at $442.

The World Health Organization has urged African governments to increase investment in health. Equatorial Guinea’s per capita investment of $612 compares to South Africa at $228 and Morocco at $59, and neighbors Gabon and Cameroon at $127 and $16, respectively.

Figures for each nation can be affected by the availability of private health care.

Equatorial Guinea was ranked number 40 in percentage of national budget

dedicated to health at 7.2%, which reflects the large share of the national budget dedicated to a broad range of infrastructure projects, including education, highways, electrification and communications.

AfDB injects €7m into SME fund in francophone Africa

Source: PRNewswire via COMTEX

SA could be hub for African oil and gas

CAPE TOWN - With an already welldeveloped ship and oil services industry, South Africa is well-positioned to become a service hub for the expanding West African oil industry and for the massive new East African gas fields. (See our feature article in this edition.)

As Africa’s biggest economy, the country has the necessary infrastructure as well as its already excellent ship and oil rig repair industry and shipping services sector. To top it all the country is geographically well situated for such a role, beating other energy service hubs such as Europe, Dubai, Singapore or Malaysia for proximity. In addition the country is located along a busy shipping route and has several large and sophisticated ports servicing the route.

Some estimates hold that South Africa’s shipping and oil services industry could treble annual revenue to over R3-billion (US$363-million) in just a few years.

Cape Town is already established as a leading logistics and service hub for oil operators in Angola and Nigeria, while it has also serviced decades of oil and gas exploration off the South African and Namibian coasts.

Because of the proximity of South Africa’s major ports to both West African oil fields and East African gas fields, savings for rig and ship operators can be huge, say the experts.

ADDIS ABABA - Small and medium sized business development in francophone Africa has received a welcome boost from the African Development Bank (AfDB) which recently approved a €7 million equity investment in the I&P Afrique Entrepreneurs SME Fund (IPAE).

This will allow IPAE to increase access to finance and capacity building for small and medium-sized enterprises (SMEs) and small microfinance institutions (SMFIs) in western and central Africa, thereby boosting income generation and job creation in the region.

This new fund will complete the range of financial vehicles managed by Investisseur & Partenaire among which I&P Développement (IPDEV), a private investment company, created in 2002, investing in SMEs and SMFIs in Frenchspeaking sub-Saharan Africa. The IPAE Fund, targeting a final closing of €50 Million, will seek out high potential SMEs and SMFIs primarily in western and central Africa.

Secondary focus countries, based on an opportunistic approach, will be located in the Indian Ocean region. The Fund will target SMEs across various industry sectors including healthcare, building materials and agribusiness.

Investisseur & Partenaire already has a good track record of managing investments in SMEs and MFIs in various sub-Saharan African countries.

Source: African Development Bank

Researchers design ‘smart’ water pumps for rural Africa NAIROBI - Researchers hope to harness mobile phone technology to improve water supplies in rural parts of Africa, reports SciDev.Net. A team from the University of Oxford, in the United Kingdom, proposes installing hand pumps containing devices that automatically send text messages to

NEWS & VIEWS

local water engineers whenever pumps break down or dry up. The device, known as a water point data transmitter, is fitted into hand pump handles, and automatically monitors the number of strokes made when a pump is operated.

This data, which provides estimates of daily and seasonal demand, including critical under- or over-usage information, is then transmitted to a central hub - thus informing engineers, cheaply and regularly, of the need for repairs, and helping to ensure a constant flow of water.

The researchers tested their idea, which is known as the ‘Smart Handpumps’ initiative, in 70 villages in Kenya during August. A prototype transmitter was successfully trialled in Zambia in 2011.

Source: allAfrica / SciDev.Net.

Ncube is also concerned that China, which acted as a key shock absorber during the earlier phases of the global economic crisis, may not be in a position to offer such support this time around.

Source: Creamer Media’s Engineering News at http://www.engineeringnews.co.za/article/ europe-a-key-risk-to-africas-2012-growthoutlook-afdb-economist-2012-07-31

Decline in FDI to Africa caused by Arab Spring & financial crisis, but prospects are brightening – UN report

Europe a risk to Africa’s growth

JOHANNESBURG - African Development Bank (AfDB) chief economist Professor Mthuli Ncube has warned that Africa’s 2012 economic growth outlook is facing pressures from a range of sources, not least the current crisis in Europe, reports Engineering News.

The publication says the AfDB currently expects Africa-wide growth of 4.5% in 2012, underpinned by a sub-Saharan Africa economic expansion of 5.3%.

Excluding South Africa with its slow pace of growth, the rate of growth in the rest of the sub-region is estimated at 5.9% for the year.

But the bank warns that the outlook is highly sensitive to the economic fortunes or misfortunes of Europe. Ncube indicates that a 1% fall in the territory’s growth will shave 0.5% off African economic growth.

Lower European growth will be felt primarily through lower export earnings and a decrease in tourism-related earnings, especially in North Africa, which is still stabilising from the after effects of the ‘Arab Spring’. But there is also a risk of lower financial inflows in the form of aid, investment and remittances, as well as the potential for “contagion effects” spreading to African banks.

24

GENEVE - Foreign direct investment (FDI) inflows to Africa as a whole declined for the third successive year, to $42.7 billion, says the World Investment Report 2012 recently released by the UN Conference on Trade and Development.

However, the decline in FDI inflows to the continent in 2011 was caused largely by the fall in North Africa; in particular, inflows to Egypt and Libya, which had been major recipients of FDI, came to a halt owing to their protracted political instability.

In contrast, inflows to sub-Saharan Africa recovered from $29 billion in 2010 to $37 billion in 2011, a level comparable with the peak in 2008. A rebound of FDI to South Africa accentuated the recovery.

The continuing rise in commodity prices and a relatively positive economic outlook for sub-Saharan Africa are among the factors contributing to the turnaround.

In addition to traditional patterns of FDI to the extractive industries, the emergence of a middle class is fostering the growth of FDI in services such as banking, retail and telecommunications, as witnessed by an increase in the share of services FDI in 2011.

The overall fall in FDI to Africa was due principally to a reduction in flows from developed countries, leaving developing countries to increase their share in inward FDI to the continent (from 45 per cent in 2010 to 53 per cent in 2011 in greenfield investment projects).

Source: UNCTAD World Investment Report 2012

TRADE & INVEST AFRICA

IFC invests $35m in African ICT

JOHANNESBURG - The International Finance Corporation (IFC), a member of the World Bank Group, announced an equity investment of $35-million in the South Africa-based Convergence Partners Communications Infrastructure Fund to support more rapid development of information and communications technologies across Africa.

The fund is expected to play an important development role in Africa, where ICT infrastructure bottlenecks impede the growth of business and companies lack access to finance, especially risk capital and related expertise from investors that can help businesses succeed.

The investment focus of the fund will be to address the lack of enabling infrastructure that provides quality, affordable communications services, especially broadband, across Africa. The fund aims to develop and invest in new wholesale, open access networks and related services.

The fund will capitalize on the potential for communication technology platforms to deliver critical services such as banking, healthcare, education and government programs that contribute to improved living standards. The fund will be managed Convergence Partners Management (Proprietary) Limited.

Source: Convergence Partners

Upgrading of Sena line will bolster Mozambique coal export

BEIRA - Mozambique’s ports and rail authority, Portos e Caminhos de Ferro de Moçambique (CFM) announced that it anticipates the frequently delayed rehabilitation of the important Sena railway line that links the coal mines of Tete province with the port of Beira to be completed by December this year.

The company said earlier this year all work is on track. At present the line carries 2-million tons of coal per year.

After the first phase of rehabilitation has been completed, it will be able to carry 6.5-million tons.

NEWS & VIEWS

CFM hopes that it will carry 12-million tons by 2013, and 20-million tons within three years.

New miners in the country have expressed concern over problems with infrastructure. While some mines like Vale have been using the Sena line, most other coal miners had to transport their coal by truck. But private companies have joined forces with the government to initiate several projects that include expanding and improving the rail and ports network in the country.

Algeria increases investment in its gas resources and refining industry

ALGIERS - The Algerian state energy company, Sonatrach, has announced plans to invest up to US$80-billion over the next five years to expand and strengthen its gas resource industry, and its refining and petrochemical capacity.

This investment will be up to US$12-billion more than what has been previously announced by the company.

Algeria is an Opec member and a significant supplier of natural gas to Europe.

Sonatrach CEO Abdelhamid Zerguine told a gas industry conference recently that the increased investment is aimed mainly at the upstream sector with the hope of increasing its refinery capacity and petrochemical base.

Zerguine told the conference that part of the $80-billion investment would be used to build new refineries. At present Algeria needs to import much of its requirements in respect of refined fuel products because of insufficient refining capacity. With domestic demand growing, the country had to import around 1.3-million tons of fuels in 2011.

Zerguine also announced that Algeria has huge shale gas reserves, with preliminary studies estimating that the country could have as much as 600 trillion cubic feet of recoverable shale gas reserves.

Brazil to tap into Africa with biggest-ever investment fund

Experts say sustainable development in Africa needs innovative financing and private sector support

BRASILIA - The biggest Africa investment fund in the world was launched earlier this year by Brazil’s top investment bank, Banco BTG Pactual. The fund is worth US$1-billion, with all the capital having been raised in Brazil.

And in July the bank followed this up with an announcement of a tie-up with Roger Agnelli, former head of mining giant Vale, to invest up to US$520-million in Latin America and Africa. These two moves certainly bring a new dimension to the competition between Brazil and its BRICS partners, India and China, in Africa.

Following the July announcement, BTG said the agreement between billionaire Andre Esteves’s BTG Pactual and Agnelli’s investment company AGN will allow them to explore investment opportunities in the mining sector with a focus on Brazil, Latin America and Africa.

Professor Meshach Aziakpono, programme head of the MPhil in Development Finance (MDevF) at the University of Stellenbosch Business School (USB) in South Africa, says the announcement by Brazil’s BTG of a $1 billion Africa investment fund to aid Brazil in competing with China for Africa’s huge mineral resources and growing consumer market, demonstrates the massive untapped trade and investment potential on the continent.

But he is concerned that as foreign interest in Africa continues to grow, African countries themselves are still largely obstructed from reaping the benefits of investment opportunities right on their doorstep, as a result of various levels of red tape barriers and a lack of development financial institutions.

Professor Aziakpono says that African development, while showing encouraging signs of growth, is hampered by a lack of cross-border trade.

RIO DE JANEIRO - Innovative sources of finance and resources from the private sector are key to achieving sustainable development in Africa, African leaders and world experts said earlier this year at the United Nations Conference on Sustainable Development, or Rio+20, in Rio de Janeiro.

Participating in the high level “Financing Sustainable Development in Africa” panel discussions, African states and their partners discussed resource mobilisation for sustainable development – both domestically and internationally.

Institutions that have access to global financial resources are sometimes constrained by their inability to effectively operate at a level where sustainable development initiatives are undertaken in a meaningful manner. Those who are able to do so are often either unable to raise the resources they need or are denied access to institutions who have such resources.

While green growth is often perceived as an expensive pathway to development, Aly Abou-Sabaa, chair of the AfDB’s Climate Change Coordination Committee observed that “not all green development options are expensive as many could derive benefits,” making it a realistic investment for all types of actors.

Through its various activities supporting the transition towards a green economy in Africa, the AfDB has identified huge opportunities for the continent.

Ibrahim Thiaw, Director, Environmental Policy Implementation, UNEP, gave concrete examples of such opportunities. “Two of the main issues plaguing the continent, namely desertification and waste management, represent some of the main opportunities,” he noted. ”Desertification has the potential for land restoration, reforestation and creation of green jobs, conservation of biodiversity, recharging of underground water sources and agricultural activities,” he explained.

Source: Own and Epic Communications

Source: Distributed by the African Press Organization on behalf of the African Development Bank.

TRADE & INVEST AFRICA

25

0 6 3 R E T N SE partner in irrigation

A f r i c a ’s p i v o t o f s u c c e s s

pivotal r u o Y –

Company profile SENTER 360 is a South African company. We have a simple policy of doing business with the highest standards of integrity. We therefore pride ourselves on not merely selling a product, but building long term relationships.

Designed and built in South Africa in 1994, SENTER 360 centre pivots are known for their superior construction quality and strength – above industry standards, and we as a company are renowned for excellent sales and after-sales service.

We have been in the irrigation industry for more than 20 years, specialising in surveying, system design, installation and commissioning of irrigation systems.

We have growing business interests in South Africa, Africa and internationally and offer a turn-key project development service from feasibility study phase to implementation and project management.

One of our recent achievements has been the allocation of an international tender for the supply of more than 50 centre pivots to the South African Government for the Taung irrigation scheme.

Tel: +27 (18) 469–1331 Email: info@senter360.co.za www.senter360.co.za

Senter 360 - Encounter Africa July.indd 1

Key aDVanTaGeS of SenTer 360 • The most effective way of irrigating large areas • Ensures constant high yields • More than 96% water distribution accuracy • Manufactured with high quality materials to very high standards of accuracy • Only the best quality heavy-duty drive train components are used to cope with terrain and ensuring years of reliable service • Senter 360 has the strongest centre pivot span structure available today • We carry high levels of stock to be able to supply when you need it

A f r i c a ’s p i v o t o f s u c c e s s Since 1994

2012/07/10 08:46:54 AM

Trade & Investment

TIA

More than just a Chinese resources raid…

So Who Else Is Investing In Africa, and Why?

By Stef Terblanche

T

he soaring trade between China and Africa has been dominating financial news around the world of late. And quite rightly so, for bilateral trade between the two now exceeds a staggering US$160bn per year, up from a paltry US$10bn a mere decade ago.

Trade between China and the continent already in 2009 outstripped Africa’s trade with either of its previous biggest, and traditional, partners, Europe and the United States. And the end of this phenomenal growth is nowhere in sight.

And while much of the focus has been on the rapid expansion of SinoAfrican trade and investment, it certainly cannot be only China that has taken such an intense interest in Africa. Who else, one might then ask, may be looking at this erstwhile “dark continent” with renewed interest and a hunger to invest and trade across new, previously mostly unexplored frontiers? The answer is simple: many.

Africa’s age If anything, Africa’s true age may finally have dawned. African growth and the continent’s Lion economies are rapidly superseding the economic boom of the Asian Tigers. (See separate article.)

Much of the catalytical spur for this astounding growth has come from Africa itself, a continent that has also of late become everybody’s darling as an antidote for global recession and Eurozone blues.

True, Africa still harbours a treasure trove of scarce and valuable resources in a world where competition for these vital commodities is fast going into overdrive,

thus inviting foreign plunder raids. But times have changed and Africa itself has woken up to its vast potential, creating opportunities and development, or extracting these from those seeking what she has to offer. Accordingly the continent is awash with economic good news.

The insatiable demand for Africa’s resources, coupled to the continent’s rapidly growing population, the accompanying growth in consumer demand, and an

African growth and the continent’s Lion economies are rapidly superseding the economic boom of the Asian Tigers. explosion of infrastructural development to accommodate all of this, is creating significant business opportunities across the continent.

Africa has responded well to the changing global conditions and its own potential. Business services firm KPMG says the world is taking note of African countries’ efforts to attract more foreign direct investment (FDI) through, for instance paying attention to increased peace, democratic elections and improved governance.

KPMG points out that according to

TRADE & INVEST AFRICA

various reputable forecasters, the African economy is expected to grow by some 5.5% or more during 2012/13, while its total Gross Domestic Product (GDP) is expected to reach US$2.6 trillion by the year 2020. And at least seven African countries are expected to rank among the 10 fastest-growing economies in the world during the next five years. That is seriously bucking the general trend elsewhere in this troubled world.

Added to this, Africa currently has the world’s fastest-expanding labour force with more than 500 million people between the ages of 15 and 64. That number is expected to pass 1.1 billion by

“Africa is more important than ever to global security and prosperity…” – US President Barack Obama

27

Apart from India and China, countries like Brazil, Argentina and Russia are zooming in on the African boom. For instance, Brazil’s top investment bank, BTG Pactual, recently announced plans to raise US$1 billion to create the world’s biggest investment fund for Africa, with a strong focus on areas such as infrastructure, energy and agriculture.

Skewered perceptions

Africa to grow by 5.5% in 2012/13, total GDP to reach US$2.6-trillion by 2020.

2040 – which will make it larger than the labour forces of China and India. In turn that will create a vast consumer market across the entire continent.

In 2008 FDI to the continent peaked, but then declined as a result of the global financial crisis. Last year Africa attracted 12% of all FDI targeted at developing countries, says KPMG. On the down side, the World Bank Investment Report last year pointed out that intra-regional FDI in Africa is limited, accounting for only 5% of the total. However, accounting firm Ernst and Young also last year pointed out that intra-African investment nonetheless increased 21% between 2003 and 2010.

And trade between Africa and the rest of the world increased by 200% over the past decade, while African manufactured output doubled.

These mega-trends shaping Africa’s future came under the spotlight in April at KPMG’s Africa Conversation “Investing in Africa”. Commenting on them KPMG Head of Strategy Tim Bashall said: “We are obviously dealing here with long term investment strategies. The African story still has elements of political and economic uncertainty but overall business opportunities are greatly improving. Investors are therefore thinking in cycles of 15-20 years”.

Concerns However, there are some concerns too.

For one, much of the current African boom has bypassed troubled North Africa.

According to data published by the UN Conference on Trade and

28

Development (UNCTAD), total foreign investment to Africa in 2011 decreased for the third consecutive year to an estimated US$54.4 billion. Africa’s share of the world investment total decreased from 4.2% in 2010 to 3.6% in 2011, but was still above the past decade’s average

Traditional trading partners left behind as Africa shifts its focus to emerging economies of 3.3%. This was a direct result of political and security events in Egypt, Libya and Tunisia.

Looking only at sub-Saharan Africa, a different picture emerges though with an estimated 25% increase in foreign investment in 2011 being recorded.

Eastern and Western Africa led this recovery with a 53% and 17% increase respectively in receipts, says UNCTAD. While Africa – apart from South Africa - remained largely unaffected by the 2008 recession, officials at the World Bank and other organisations are warning that a worsening European crisis will have serious consequences for Africa.

Nonetheless, countries like China and India seem unperturbed and continue investing in the continent at a breathtaking rate. Traditional trading partners like Britain, France and the US have been left behind, and Africa’s focus has shifted to emerging countries.

TRADE & INVEST AFRICA

However, consulting company Ernst & Young said in report in May based on a survey of more than 500 investors and business leaders on Africa’s attractiveness for FDI that there remained a vast perception gap between those with African business interests (positive) and those without (negative).

Robert Appelbaum, a partner at South African law firm Webber Wentzel holds that “debate about the risks of investing in Africa is often too generalized - as if Africa was one country”.

In an article “African investment insights” published on the firm’s website he writes that “the reality is that it is a continent of 54 countries each with its own mix of political, cultural, religious and language factors”.

There are many different legal systems in place and regional legal developments are taking place such as the harmonization of business laws in the sixteen countries in the OHADA (a system of business laws and implementing institutions adopted by sixteen West and Central African nations) region and the development of the East African economic community with its own legislative body. And, he says, many of the perceived risks are not necessarily particular to Africa.

And to further allay investor concerns, the World Bank Doing Business Report 2012 shows that regulatory reform in Africa is ongoing, with a record 78% of African economies having pursued regulatory reforms in the preceding year.

Meanwhile FDI trends also differ significantly across regions and sectors.

Since 2008 Southern Africa has been the continent’s biggest investment recipient but the International Monetary Fund (IMF) suggests that West Africa should reach the same level this year.

Nairobi-based financial journalist Dinfin Mulupi writes that Southern and Western Africa attracted 55% of Africa’s total investment in 2011. The top five recipients were Nigeria, South Africa, Morocco, Angola and the Congo Republic, by themselves attracting 48% of the 2011 total. And, she says, mergers and acquisitions (M&A) also took off in Africa in 2006-2010 with a total worth of US$120

billion recorded compared to US$42.5 billion for 2000-2005.

Until now East Africa lagged the other regions when it comes to resources. But vast natural gas discoveries off the coast of Mozambique and Tanzania could change all of that, with investment in the region expected to increase dramatically.

The Common Market for Eastern and Southern Africa (COMESA) region has already experienced an increase in foreign direct investment from developed countries in the last two years, says COMESA secretary general Sindiso Ngwenya.

The gas finds are set to significantly bolster a 26-nation, trillion-dollar super trade block taking shape in the region, as well as the ambitious North-South Corridor (NSC), a road and rail infrastructure project spanning eight countries from Tanzania to South Africa. (See separate article.)

The Chinese invasion Undoubtedly China has become the leading foreign player in Africa, with

India trying hard to catch up. As pointed out above, three years ago China overtook the US as Africa’s biggest trading partner with bilateral trade escalating to US$160bn in 2011.

ambassador to Africa. China also donated the new US$200 million headquarters of the Africa Union (AU) in Addis Ababa as a gesture of its goodwill. And according to The Economist China has boosted em-

China says it is not only Africa’s biggest trade partner, but also provides much development aid And while most of the rest of the world accuses China – perhaps enviously – of being interested only in plundering the continent’s vast reserves of minerals, gas and oil, China begs to differ. Senior Chinese officials have repeatedly said their policy is to make friends in Africa and assist with the development of Africa to the mutual benefit of both China and Africa.

To back up these claims they point out that China has already invested in excess of US$13bn, while it has provided “tens of millions of dollars in food aid” to African countries, in the words of one Chinese

ployment in Africa and made basic goods like shoes and radios more affordable.

And recently China’s Vice-Minister of Commerce, Li Jinzao, announced that China will increase its investment in Africa’s service sector in order to help the continent play a greater role in an industry that has become a mainstay of the global economy.

On top of this China has become a major foreign aid contributor to Africa. While the full volume of Chinese aid remains undisclosed, some estimates say it has grown from around US$800 mil lion in 2005 to US$10 billion between 2009 and 2012.

China is leading the Asian invasion of Africa with trade of US$160-billion per year.

TRADE & INVEST AFRICA

29

In comparison the World Bank’s annual loans to Africa have averaged around US$4.5 billion a year since 2006.

But, warns the controversial writer and economist Dambisa Moyo, all is not well with China’s interest in Africa. In her new book, “Winner takes all”, she points out that in 2010 China had 40 cities with populations of more than one million, while it plans to have 265 such cities by 2020. This will dramatically escalate demand for commodity resources, food and water.

And, she says, so far only China has woken up to the fact that production of many resources is now peaking or some resources are already starting to run out.

And that, she says, is what brings China to these shores.

Moyo also warns that when the rest of the world wakes up, it will lead to a terrible war for resources. Her words are not to be taken lightly. After all, she was named by Time Magazine as one of the “100 Most Influential People in the World”, and was elevated to the World Economic Forum’s Young Global Leaders Forum.

BRICS and others While China may have been something of a latter-day pioneer in Africa, other countries, especially the other members of the BRICS group (Brazil, Russia, India, China and South Africa) as well as other emerging nations are also waking up to the possibilities.

According to Standard Bank Group analysts Simon Freemantle and Jeremy Stevens, presenting their findings in Standard Bank Group’s latest “EM10 and Africa” report, the ten emerging market economies (EM10) that are becoming the continent’s most prominent new commercial partners are Brazil, China, India, Indonesia, Nigeria, Russia, Saudi Arabia, South Africa, Thailand and Turkey.

For instance, South Africa’s trade with the rest of Africa last year exceeded about US$30 billion, 17% of South Africa’s total trade with the world. Most of this was, however, still concentrated within the Southern African region. But South African firms are nonetheless rapidly expanding their business ties in Africa, with mining houses like Anglo American, banks like Standard Bank, media companies like Naspers with its paytelevision interests, and telecommunications companies like Vodacom and MTN leading the way.

UNCTAD points out that the biggest flow of FDI into Africa in 2010 was directed at the oil-rich economies of Algeria, Angola, Egypt, Ghana, Nigeria and Libya.

30

But that may since have changed considerably considering the picture painted by the most recent FDI data that has been made available.

Where to invest In a report released in June, KPMG says there are several key sectors looking for African opportunities, including companies operating in mature economies with low or no growth that need to find new ways to grow; companies operating in the high-growth Brazil, Russia, India and China (BRIC) markets, looking to fuel

Brazilian bank to create world’s biggest African investment fund their growth; and companies looking for intra-Africa trade opportunities; and companies already operating in Africa that are looking to expand their footprint on the continent.

Apart from South Africa, China and India, Brazil is another BRICS country looking at upping its African trade and investment portfolio. As mentioned above, the Brazilian investment bank BTG Pactual has already unveiled plans to create the world’s biggest investment fund for Africa, focusing especially on sectors such as infrastructure, energy and agriculture.

KPMG says it has identified the three main categories of opportunity in Africa as being in infrastructure, resources and consumer demand, while there are also demand-based opportunities for personal banking services, small and mediumsize business financing, micro-finance, development finance and for trade finance houses. It furthermore singles out growth prospects for the food and beverages sector, and the formal retail sector.

Various other analysts point out that some of the most vibrant and promising opportunities in Africa are found in telecommunications and information technology, gas and oil, electricity, tourism, manufacturing, industries linked to infrastructure development, agriculture, and mining.

Other players awaken Although late starters, a number of other countries have recently also woken up to the opportunities that abound in

TRADE & INVEST AFRICA

Africa. Among them – not surprisingly – is the continent’s previous biggest trade partner, the US. In June President Barack Obama released a sweeping new US strategy for Africa.

It seeks to make a significant mark on the African development front by bolstering US trade with the continent, engaging on the security front, strengthening peace, and assisting with good governance development.

“As we look toward the future, it is clear that Africa is more important than ever to the security and prosperity of the international community, and to the United States in particular,” the Washington Post reported Obama as saying when he unveiled the strategy.

Although Obama had paid little attention to Africa so far – his attention held by crises in other parts of the world his Secretary of State, Hillary Clinton, says Obama believed “passionately” in Africa’s future. She noted that six of the world’s 10 fastest-growing economies over the past decade were in Africa and reminded the American business community that “Africa offers the highest rate of return on foreign direct investment of any developing region in the world”.

Following up on these observations, US Trade Representative Ron Kirk and South Africa’s Minister of Trade and Industry, Rob Davies, in June signed the Trade and Investment Framework Agreement (TIFA), which aimed to deepen the bilateral trade and investment relation-

South Africa “seeking out new sources of investment and trade with dynamic economies…” ship between the two countries. The agreement is also to “provide for a regular dialogue on the full spectrum of trade and investment topics” said Kirk.

It is not only “traditional partners” of Africa like the US and Britain that are stepping up their trade and investment activities in Africa.

For instance, in June this year South Africa and Saudi Arabia set up a joint holding company to promote business and investment between the two. The company kicked off with a potential to create US$2.5-billion worth of business opportunities in real estate, mining and minerals, agriculture, health services,

trading, technical services, automotive industries, construction, power construction, petro-chemicals downstream and engineering.

Noting that the two countries had the biggest economies in their respective regions, Minister Davies said this development was fully in line with South Africa’s strategy of “seeking out new sources of investment and trade with dynamic economies”. The two countries agreed to increase their trade to a targeted US$7.5billion within 5 years.

Recent studies have showed a lack of financial services in developing African countries while, for example, the total value of mobile money transfers in Africa is expected to exceed US$200billion by 2015. Acting on this, the Indiabased integrated telecommunications giant Bharti Airtel, has been busy rolling out its commerce services across Africa.

Its most recent venture is collaboration with a leading African bank, Ecobank, to launch Airtel Money in Chad.

And in what may well represent the next wave of Asian investment in Africa, Asian private funds are poised to capitalise on high growth rates in Africa coupled to increasing economic and political stability. In other developments the Indian government has set aside US$1-billion for soft loans to fertiliser companies to create logistics and infrastructure facilities in African countries.

Countries like China, Malaysia, Singapore and Bangladesh are spending billions of dollars to acquire agricultural land in Africa to grow food and biofuels for global markets. JSE and London-listed African investment group Lonrho has announced it was setting up a low-cost African airline.

And an already well-known player on the African continent, Coca-Cola, recently opened a new, state-of-the-art bottling plant in Somaliland in the troubled Horn of Africa region – a sign that even there increased stability is anticipated and with it exciting new prospects.

And the Moscow-based investment bank Renaissance Group is beefing up its real estate investment across Africa. This includes about US$2.5-billion invested in the Tatu City housing project for 62,000 residents and 23,000 day visitors. The Japanese company Nitori is investing US$15-million in a new furniture and ceramics manufacturing plant in Tanzania.

The list of business, investment and development activities involving Africa and the rest of the world is almost endless. While much of the world is concerned with Eurozone problems and other global economic pressures, Africa, while also mindful of the potential fallout, nonetheless remains on a strong

growth trajectory, poised for the next wave of investment, trade and development. The signs sure look good.

Writer and economist Dambisa Moyo, believes all is not well with China’s interest in Africa…

The lions are roaring…

Africa’s Fast Growing Economies

S

By Staff Writers

tep aside Asia’s tigers…the African lions have arrived.

Economic growth on the African continent – and in particular in a number of high-performing African countries - is rapidly superseding the growth boom of the Asian economic tigers of the last decade.

Business services firm KPMG points out that according to various reputable forecasters, the overall African economy is expected to grow by some 5.5% or more during 2012/13, while its total Gross Domestic Product (GDP) is expected to reach US$2.6 trillion by the year 2020.

Compare this to the World Bank’s global growth estimate for 2012 of a mere 2.5%, the world’s most sluggish growth pace in a decade if one excludes the recession of 2009.

Since the beginning of this year a number of investment analysts at leading firms such as Ernst & Young, Investec and Frost & Sullivan have gone on record saying investors were so impressed by

TRADE & INVEST AFRICA

the African growth picture that they were diverting risk and exposure away from the struggling developed economies.

Frost & Sullivan Operational Director for Africa, Hendrik Malan, remarked: “Much has changed since The Economist labelled Africa ‘The Hopeless Continent’ ten years ago…”

“Africa’s growth is not fuelled purely by resources anymore. For a number of key countries, diversified economies drive up to 75% of real GDP expansion, creating a multitude of opportunities across industries from agriculture to manufacturing to real-estate,” he said.

By last year The Economist had changed its tune and was predicting that Africa will outperform Asia over the next 5 years in terms of growth.

“To the surprise of many, Africa has mostly stood tall through all of (the recent global turmoil). The majority of its 54 countries have weathered the recurrent financial and economic storms and have continued to impress as they traverse the road to recovery. A few have even been able to take their place among the world’s top performers in the economic growth league,” says Kofi Annan, former Secretary General of the United Nations and Nobel laureate, who now chairs the Africa Progress Panel.

Analysts have singled out a number of star performers…both those African countries that have growing exceptionally fast over the past decade, as well as those they expect to show remarkable growth in coming years. So, just who are these African lions then?

The Economist noted that over the ten years to 2010, no fewer than six of the world’s ten fastest-growing economies were in sub-Saharan Africa. These it listed as being Angola, Nigeria, Ethiopia, Chad, Mozambique and Rwanda. All of them had annual growth rates of around 8% or more.

The Economist went further, stating that in the 5 years between 2011 and 2015 Africa would deliver no fewer than 7 of the top 10 fastest growing economies in the world. These were listed as Ethiopia, Tanzania, Mozambique, Congo, Ghana, Zambia and Nigeria. It also noted that over the past decade sub-Saharan Africa’s real GDP growth rate jumped to an annual average of 5.7%, up from only 2.4% over the previous two decades. The World Bank expects Ghana to be the fastest growing African economy in 2012.

In Southern Africa various indices indicate steady or improving business confidence. South Africa has also continued attracting the most private equity investment over the past two years. However, over the past five years a higher propor tion

31

of capital has been directed towards subSaharan Africa’s so-called frontier markets.

And in East Africa rising business confidence and consumer demand have attracted increased interest from private equity funds. The East African Community expects more than US$200-million worth of deals being directed at the region this year.

In the West African Economic and Monetary Union growth fell to below 1% in 2011, but is now expected to rebound and shoot up to about 7%, the International Monetary Fund (IMF) has estimated.

And business services provider Deloitte also says the outlook for Africa is extremely positive. In a presentation by Deloitte in South Africa based on extensive research by Professor Roger George and Dr Jacqueline Chimhanzi of Deloitte Consulting, the firm said economic growth on the African continent was expected to buck international trends by returning between 7 and 10% GDP growth in some markets over the next five years.

While growth and development opportunities have increased across the board in a variety of industries and sectors, it is still sub-Saharan Africa’s abundance of mineral resources and oil that primarily helped the continent to weather the world’s economic downturn better than others. In a world challenged by approaching or existing peak scarcity of many resources, China has led the race in Africa to acquire these resources.

But with it has come increased trade, investment, new resource discoveries, downstream industries, and development…all contributing to the growth boom the continent is experiencing. For instance, trade between Africa and the rest of the world increased by 200% over the past decade, while African manufactured output doubled.

In some African countries such as Angola, Nigeria, Uganda and Mozambique, major new oil and gas finds have led to local economic booms. Many African countries have at the same time become more democratic and stable and have modernised and strengthened their economic management. Many, such as South Africa, Kenya and Rwanda for instance, have also diversified their economies into technology and services, making them less dependent on commodity prices.

Meanwhile the 2012 African Economic Outlook (AEO) report presented by the African Development Bank (AfDB) in May in Arusha, Tanzania, has singled out Rwanda, Ghana, Ethiopia, Nigeria, Mozambique, Liberia, Zambia Equato-

32

rial Guinea, Zimbabwe and Botswana as Africa’s top 10 economic performers of last year.

The AEO states that with almost 200 million Africans aged between 15 and 24, the continent has the youngest population in the world. This number, it says, is expected to double by 2045. The continent’s rapidly growing population, coupled to the insatiable worldwide demand for Africa’s resources, has led to an accompanying growth in consumer demand, and an explosion of infrastructural development to accommodate all of this.

Africa currently has the world’s fastest-expanding labour force with more than 500 million people between the ages of 15 and 64. That number is expected to pass 1.1 billion by 2040 – which will make it larger than the labour forces of China and India. In turn that will create a vast consumer market across the entire continent.

KPMG says Africa’s Gross Domestic Product (GDP) is expected to reach US$2.6 trillion by the year 2020 and agrees that at least seven African countries are expected to rank among the 10 fastest-growing economies in the world during the next five years.

The IMF has also reiterated its forecast of 5.9% GDP growth for Africa this year, with some African countries expected to grow even faster at levels above 8%. Of the world’s 15 fastest-growing economies in 2010, ten were from Africa, reported the IMF. Researchers McKinsey & Company, which produced a report “The Changing Face of the African Consumer” based on interviews with some 15,000 consumers in 10 different African countries, found that most African households spent 30% of their income on groceries, 10% on clothing, and 6% on telecommunications.

It is little wonder that, for example, cellular phone companies like South Africa’s Vodacom and MTN to name but two, are doing such excellent business across the continent.

On these items alone, Africa is expected to offer a market totalling US$185 billion in consumer spending by 2020.

It is still quite far behind consumer spending in India, for example, which stood at US$991 billion in 2010, and is expected to reach US$3.6 trillion by 2020, but the economic growth in a number of African countries is much faster than in India. It should also be remembered that Africa is not a single country and that some problem countries with high poverty, unemployment, disease and conflict levels are pulling down the average continental growth potential.

And finally, in its report McKinsey

TRADE & INVEST AFRICA

singled out South Africa, Egypt, Morocco and Tunisia as being the continent’s four most advanced economies, South Africa of course being the biggest African economy. These four, together with the various other rapidly growing economies listed above, represent the lion economies of a continent only beginning to realise its own potential.

Investment

M

or oc co

Tunisia

Egypt

Nigeria

Ethiopia

Co n

go

/R

ep

ub

lic

Ghana

Chad

Congo / DRC

Fastest growing African economies 4.3% (2010)

Congo / DRC

6.5% (2010)

Angola

e

Chad

qu

3.7% (2011)

Tanzania

bi

Angola

Rwanda

M

oz a

m

Congo / Republic 5.3% (2011) Ethiopia

7.5% (2011)

Ghana

14.3% (2011)

Mozambique

7.1% (2011)

Nigeria

7.6% (2011)

Rwanda

8.6% (2011)

Tanzania

6.1% (2011)

Zambia

6.6% (2011)

Africa’s Leading Economies by 2011 GDP South Africa

US$554.6 billion

Tunisia

US$101.7 billion

Egypt

US$515.4 billion

Morocco Nigeria

US163 billion US$414.5 billion

South Africa

TIA

y re T befo i n k

ou link ...

Timing. Tenacity. Trust.

At Invest North West we understand the intrinsic fundamentals of successful cross-border links. Whatever your business requirements, you can trust us to deliver the perfect balance between pre-identified, sustainable investment opportunities and enduring business partnerships.

Our team of dedicated professionals offer a one-stop service to assist investors in identifying and implementing opportunities at the forefront of the Province’s lucrative AgriBusiness, manufacturing, Renewable Energy

Mining & Mineral Beneficiation Infrastructure, Services e.g. Business Processing & Outsourcing (BPO) and Tourism market sectors.

Committed to action-oriented service and viable partnerships, our team is ready to take you to the next level.

Te Pulse of trade and Investment opportunities in the North West Province.

30

Tel: +27 (0) 14 594 2570 • Fax: +27 (0) 14 594 2570 E-mail: inw@inw.org.za • Website: www.inw.org.za

Tavrida Electric Africa (Pty) Ltd “LEADERS IN MEDIUM VOLTAGE VACUUM SWITCHGEAR AND RETROFIT SOLUTIONS” Tavrida Electric is a specialist in the development and manufacturing of medium voltage switchgear products for indoor and outdoor applications. 20 years ago Tavrida Electric was the first company to introduce a vacuum circuit breaker with magnetic actuators. More than 300,000 vacuum circuit breakers and over 18,000 reclosers installed worldwide make Tavrida Electric a leading manufacturer for medium voltage vacuum switchgear. Regional offices in more than 22 countries provide our customers with integrated solutions based on our innovative products combined with unrivalled service.

We serve the power industry, mining, national and municipal utilities in South Africa and African states. Tavrida Electric’s outdoor circuit breakers provide the following key advantages and value to our customers: Safety and Environmental friendly •

Our circuit breaker is air insulated “NO SF6 GAS or OIL”.

•

All of our products have been exten sively tested by reputable independent laboratories such as DEKRA (KEMA), CESI, SANS and many more. We maintain a quality system in full compliance with ISO9001-2008 that is externally audited and certified by DEKRA (KEMA)

Lowest Weight - Recloser •

Tavrida Electric’s light weight VCB and the robust aluminum tank of our recloser contribute to the total weight of the OSM’s of not more than 72kg making these the most light weight outdoor Auto-Recloser circuit breakers in the market.

Advantages of the Single-Coil Magnetic Actuator - VCB •

This single-axis design results in the highest reliability available today: Maintenance free with a total life expectancy of > 30 years, and up to 150,000 close - open operations.

TAVRIDA ELECTRIC AFRICA (PTY) LTD Cnr. Van Dyk and Commissioner Streets, (Entry from David Street) Boksburg East Industrial Boksburg, Gauteng, RSA, Phone: +27 11 914 2199 Email: fs@tavrida.co.za, Web: www.tavrida.co.za

TAVRIDA ELECTRIC AFRICA (PTY) LTD Currently holds the ESKOM National Contract for the supply of 11-27kV Auto Reclosers.

Phuti Mahanyele

Profile

TIA

Editor’s Interview: Phuti Mahanyele, CEO of Shanduka Group

By Stef Terblanche

I

n 2001 the enigmatic former South African trade unionist and politician, Cyril Ramaphosa, launched his new business venture, the Shanduka Group.

His venture was able to make good use of the black economic empowerment project in South Africa. It had the backing of major blue chips; leaders in mining, banking, services and more. But what Ramaphosa still needed was someone who could manage and grow this business on his behalf, someone who shared his vision and could turn it into a reality.

In 2004, after a spell of headhunting, Ramaphosa found the right person, a young woman with all the right credentials, a lot of promise, and guts. This woman was Phuti Mahanyele, initially appointed to head up Shanduka’s energy business, and made group CEO in 2010.

In just eight short years, the efforts of Mahanyele and the rest of the phenomenal Shanduka team managed to raise the group’s value from around the R300 million (US$48.4 million) it was worth when it started in 2001, to about R10 billion (US$1.21 billion) by last year. Today it is a giant in financial services, energy, resources, property, food and beverages, and in other industrial sectors.

With her at the helm, Shanduka has just recently completed a transaction that saw it acquiring a majority stake in Shanduka Coal from international resources company Glencore International Plc. The transaction, estimated to be worth around R700 million (US$85 million), saw Shanduka increase its holding from a minority 30% to a controlling stake of 50.1%.

Mahanyele and Shanduka have also

just topped the flood of deals they have concluded over the last two years with a R2.1 billion (US$255 million) venture in a gas-based electrical power project on the South African and Mozambican border. Together with Aggreko, the UKbased temporary power generation specialist, Shanduka signed a Power Purchase Agreement (PPA) with Eskom, the South African power utility, and with Electricidade de Moçambique (EDM), the Mozambican power utility, to provide a 107 MW power plant that will supply base load and peak power to both companies.

As a leading black-owned and blackmanaged South African group Shanduka also champions the improvement of education, the nurturing of new young entrepreneurs and transformation that will advance black business.

So, just who is Phuti Mahanyele? For one, she is one of the World Economic Forum’s Global Young Leaders. And in 2008 The Wall Street Journal listed her as one of the top 50 women in the world to watch.

She was also chosen as the “Most Influential Woman in Government and Business – Financial Services” by CEO Magazine in 2009; her alma mater, Rutgers, the State University of New Jersey in the US, last year awarded her the “Rutgers Vision of Excellence Award”; she re-

She is one of the World Economic Forum’s Global Young Leaders

TRADE & INVEST AFRICA

ceived the “Top in Project Finance, 2003” award; and was nominated “Outstanding Businesswoman of the Year” in 2009 at the African Business Awards hosted by African Business magazine and the Commonwealth Business Council.

Smart, confident, yet unassuming is the impression she makes on those who meet her for the first time.

Mahanyele grew up in a well-todo family with her two siblings and spent most of her childhood in Soweto.

Mahanyele attended school at McAuley House, a Catholic private school in Parktown West, Johannesburg during the politically tumultuous final years of the apartheid era. Wanting to expose her to a broader cultural environment beyond the restrictive confines of an apartheid

“I was 17 when I finished my matric, got on a plane and went overseas.” tertiary education, her parents sent her overseas to begin her university studies.

“I was 17 when I finished my matric, got on a plane and went overseas. I spent the next four years studying at Rutgers.”

There she obtained a BA in Economics in 1993, followed by an MBA from De Montford University in Leicester, UK in 1996. She also completed the Kennedy School’s Global Leadership and Public Policy for the 21st Century programme at Harvard University in 2008.

37

Her entry and rise in the business world was fast and successful, gaining experience and expertise in project finance, private/public partnerships, privatisation, corporate mergers and acquisitions and energy assets. It was not long before she became Vice President at Fieldstone, an international firm specialising in the financing of infrastructure assets which she joined in New York in 1997, before transferring to its South African office.

Then followed a stint as head of the Project Finance South Africa business unit of the Development Bank of Southern Africa (DBSA). She had also run her own renewable energy company. In 2004 came the move to Ramaphosa’s emerging empire as managing director of Shanduka Energy (Pty) Ltd. She had in fact already at that stage accepted a new position with Standard Bank, Africa’s largest banking group and one in which Shanduka now has a small investment stake. I probe: What did Ramaphosa offer or say that made her take the Shanduka job instead?

Mahanyele laughs: “It was nothing that Cyril said or offered. It was just that I believed in him, I looked up to him and I was very inspired by Cyril Ramaphosa as a leader. That’s what attracted me to Shanduka. This was one of those opportunities that come only once in a lifetime.

For me it was really about having the opportunity to work with Cyril and to create something truly worthwhile with him,” she says.

And that they certainly have done. “As for the business, I had no idea at the time how successful it was but had a strong sense that there was the potential for it to succeed.”

38

Now CEO since 2010 of the larger Shanduka Group, she is also a member of the boards of a number of Shanduka Group investee companies.

Simultaneously pursuing her passion to help advance young people in education, their development and as entrepreneurs, she is also involved in a number of activities with youth, both in her personal capacity and through projects of the group.

She is currently mentoring young professionals and students. Mahanyele is involved with the “Dignity Day” programme which is led by Young Global Leaders of the World Economic Forum and is focused on re-enforcing the values of dignity in young people. She is also a Patron of NEET (National Education Empowerment Trust).

And she is involved in Shanduka’s massive investments in social transformation focused on education and entrepreneurship through programmes such as the Adopt-a-School Foundation and the Shanduka Black Umbrellas initiative. Having benefitted from opportunities not available to most young South Africans, she is ploughing back into the community as much as she can.

She makes the point that giving back and ensuring that whatever the company does also benefits the broader society and the communities affected by its businesses, has always been Shanduka’s core philosophy and “our way of doing things”.

This “way of doing things” has, for example, brought about a commitment by Shanduka to spend R100-million over a 10-year period up to 2014 to educate and train young people as part of its corporate social investment programme.

That commitment was already made

TRADE & INVEST AFRICA

a decade ago, she says, when “the business was still quite small”. In fact, at the time the company was worth only about R300 million, which means it had committed the equivalent of a third of its total value to CSI. Mahanyele says the group has already surpassed the R100 million mark and is now working on a new commitment in partnership with another black economic empowerment entity to establish a major new CSI initiative.

“This is very much informed by Cyril’s vision. He never wanted a business that would only create shareholder value – although that is very important. So it was quite a bold statement and commitment to make at the time.”

The fibre of this outlook on life runs throughout the company. Mahanyele says that every employee of Shanduka contributes to the Adopt-a-School programme. She says Shanduka focused on education as being the most important resource to unlock as it has proven itself to be the pivotal factor for every success-

Shanduka focused on education being the most important resource to unlock… ful nation on earth.

The project, now run by 15 fulltime staff, benefits over 100 schools and some 170,000 young learners. But working with this programme, Mahanyele and her colleagues also recognised that entrepreneurship was another key issue in South Africa.

“With corporate South Africa unable to absorb all the matriculants and other school leavers, we realised that we needed a culture of entrepreneurship where young people will create their own opportunities and their own futures.”

With a R5.2 million initial commitment from the Shanduka Foundation, Mahanyele and her colleagues joined forces with two young men who had started the Black Umbrellas organisation. This organisation, now called Shanduka Black Umbrellas, provided an incubator for small entrepreneurs to help get them started and survive the initial difficult period of getting a business going. It has since grown from its original Cape Town base to having centres in several cities where it fosters the development of 100% black-owned enterprises.

Shanduka also runs an internship programme for young people, many of whom are now valued Shanduka employees.

In addition to all these initiatives there is also the Cyril Ramaphosa Education Trust started personally by Ramaphosa before he launched Shanduka and which he initially funded with the fees he earned from serving as a director on various boards.

“Our focus is very much on education and entrepreneurship for us. We realised the government cannot do this on its own. So we need more corporates in South Africa to get involved in doing these things, helping schools with infrastructure and equipment and training young people.”

Mahanyele believes strongly in transformation that will empower and benefit the masses. The name Shanduka is synonymous with transformation, meaning “change” in TshiVenda, Ramaphosa’s mother tongue. As a group born out of the BEE project, it has been at the forefront of engendering transformation, also within companies with which it does business and in industries in which it is active.

Nontheless, Mahanyele feels strongly those black-owned companies in South Africa that had benefitted from enabling empowerment policies after 1994 need to do much more to empower the masses.

But when it comes to business, even with Shanduka’s BEE credentials and the political connections of Ramaphosa – he

Good business sense, a focused vision and a strong team serves on the ANC’s national executive committee and almost became South Africa’s president after Nelson Mandela – Mahanyele is adamant that politics had nothing to do with the group’s success.

Good business sense, a focused vision and a strong team is what made Shanduka, she says. She says Ramaphosa made very sure that he had a good team, and she gives much credit to her 70-strong team of professionals in various disciplines.

At a time when South Africa’s BEE companies seem to be under pressure from all sides – politically and financially – Shanduka seems to have bucked the trend. Other BEE players are nervously keeping one eye on the bottom-line and the other on spill-overs from the Eurozone crisis among other things. In a time when BEE activity fizzled out in the aftermath of global recession and financial meltdown, Shanduka went the other way, bagging one good deal after another.

But Mahanyele views Shanduka as

much more than a BEE entity, saying BEE was only a means to an end, and that the group is now a strong commercial player in its own right with a proven track record in adding value.

The group has made key investments in the food and beverages sphere.

It was with Mahanyele at the helm that Shanduka snapped up the lucrative McDonald’s fast food chain ahead of competitors, a business that ties in neatly with its Coca-Cola interest. Shanduka was appointed the sole developer of McDonalds’ franchises in South Africa for the next 20 years, while it has a 70% stake in the South African Coca-Cola bottling operation.

The company also has stakes in mining house Lonmin, cell phone company MTN, Alexander Forbes, Liberty Group and Standard Bank among numerous others. It has also invested heavily in resources such as platinum and coal, and of course in the energy sector, as shown by its recent deals with Glencore and Aggreko. At present Shanduka is pursuing several power generation partnerships in South Africa and the sub-continent in a bid to build its “nascent” energy unit.

In reference to the R700 million Glencore deal Mahanyele says “we had always intended to increase our equity in coal in line with our strategy of acquiring a significant or controlling stake in our businesses in what has been identified as the group’s core areas of business”.

She says with South Africa having an abundance of coal that is an affordable energy resource, it must be used, but with greater responsibility, until such time as the country can afford the luxury of utilising only renewable energy which is far more expensive.

The group’s philosophy is to build businesses where it can add value and ultimately take control. Recognising both this and its success to date, the China Investment Corporation (CIC) last year teamed up with Shanduka, taking a 25% stake in the group.

Mahanyele gives ample recognition to the hands-on, active leadership style of her enigmatic boss, Ramaphosa. But she has no illusion herself about whom he trusts to run the show.

“I am the chief executive of the company with the responsibility of making sure that all the executive functions are executed well. Operations, strategic issues, and executive decisions are all my day to day responsibilities. While Cyril is there on a daily basis, I am the one who ultimately has the responsibility of running the business,” says Mahanyele.

Mahanyele says her role is that of guiding the group, nurturing a talented and effective team, and motivating that

TRADE & INVEST AFRICA

team to achieve its full potential, while also giving back to the broader community. On all scores she has certainly succeeded.

39

Insight

TIA

Think big to win small

A Marshall Plan to foster entrepreneurs Dr Reuel Khoza, Chairman of South Africa’s Nedbank Group Ltd writes on entrepreneurship.

I

n the dying days of apartheid I had a bone-chilling experience as a small business operator running a meat wholesale-cum-butchery outfit in Orlando East. I was serving a public utility.

When the utility sent an inspector to visit my little outfit he spotted that my Ford Granada had an installed car phone which was very rare at that time, before cell phones. Upon getting back to his bosses he moaned that sourcing from me as a small business was grossly inappropriate because in reality I was a big fat black cat that did not deserve a leg up.

Certainly, this was a nasty racial slur, but my question is: How much have attitudes really changed?

If an inspector today were to find an entrepreneur well-equipped with information technology, smart premises and well marketed products, would the reaction be that this person does not need a leg up? Entrepreneurs with panache are what we want to see! They must have a CAN DO attitude.

Subsequent to the inspector’s visit, payments for my supply of meat to this utility would take 30-60 days when in fact the utility could afford to pay cash or within 30 days at the very worst. Protestations and pleas on my part yielded no positive results. This was enough to cripple my small business operation, which it did.

Entrepreneurs must take the step up from start-up to sustainability as formal enterprises. What we are witnessing, however, is that many enterprises today remain informal, under the taxman’s radar, and they are harassed by police and

other authorities who seem to regard them as blots on the business landscape.

In my view, the normal problems of the entrepreneur in any society are compounded in South Africa by both lack of visionary leadership and a narrow form of business analysis.

Do we correctly understand what entrepreneurship is?

Do we correctly understand what entrepreneurship is?

Let’s look at certain prevailing ideas.

Entrepreneurship is seen as individual enterprise where someone with a good idea finds a niche and exploits it for personal gain.

The same model emphasises that at some point the entrepreneur has to learn the skills of management and delegation, that is, he or she has to make the difficult transition from start-up to sustainability and further growth. Unfortunately this is where many fail and within 6 to 18 months they fall off a cliff into an abyss from which few can ever return. Some may struggle on as subsistence businesses but they do not grow beyond that.

This is a functional view of entrepreneurship which leads business planners to recommend key interventions. These include more serviceable infrastructure, enterprise incubation centres, easier finance, management training, tax breaks and much else besides, to ensure that the entrepreneur leaps the abyss. As Chair-

TRADE & INVEST AFRICA

man of Nedbank I recognise that all of these interventions are vital. We have inspiring programmes of finance and other forms of support, and along with other banks we try to build a growing small and medium enterprises (SMEs) business clientele for the future from the start-ups of today. SMEs should be the backbone of our economy because big business and the state simply cannot provide enough jobs.

Encouraging entrepreneurship is not just a talking point for business theorists.

It’s a very serious challenge that South Africa must meet in order to overcome dire unemployment. Other developing countries have shown that entrepreneurship can be the engine of growth and development. Big business and the state cannot and should not be expected to create jobs for all.

We need to think on the scale of a kind of Marshall Plan for small business development. I call this thinking big to win small. If we are to pour money into a grand scheme there has to be real pay-

Spread skills and encourage selfempowerment back in the form of consistent development and job creation. Schemes to create jobs by spending taxpayers’ money - for example, the youth subsidy - can go only so far.

Introducing jobless youth to the business

41

world with state support and business involvement is a good idea. Its primary aim - which has to be emphasised - would be to spread skills and encourage self-empowerment, not just provide income so reinforcing dependence on the government or private sector.

The beneficiaries of the proposed subsidy would gain fullest advantage by emerging from employment to go forth and create their own enterprises. Employers and mentors must fire up hope, actively transfer knowledge resources and skills, and constantly inculcate a passion for excellence. Then a leg up becomes a leg out into the world of self-sustaining profitable work and innovation.

That’s the road to mass job creation from the bottom up.

A true developmental state is one that rises from the grassroots upwards. It cannot be imposed on the people from the top by means of government interventions. There is no reason to believe that the state has greater wisdom than that of the collective of entrepreneurs, companies and consumers operating in the economy. Attempts to favour certain industries inevitably come at the expense of others. Attempts to redirect efforts at a national level often come with unwelcome unintended consequences.

When government calls all the shots and everyone is scrambling for a piece of the taxman’s pie you have not a welfare state but something like a warfare state.

We clash in the streets because we are at odds with each other over how to get the political economy moving towards broad-based national development.

We need consensus, not conflict; negotiation, not negativism.

That is why I believe we have to move beyond the purely functional view of entrepreneurship and adopt a more rounded, community-based view of it. And we need our political, business and social leaders to rally the nation for a great creative effort.

A big problem lies with the enabling environment, or lack of it. A World Bank report on the Ease of Doing Business has found that that South Africa is one of the more difficult countries in the world in which to do business and start a company. This suggests that obstacles to starting and running a business must be removed - for example, too much state regulation, too many forms to complete, or too many demands from the taxman - points made in a recent report by Adcorp.

Further than this, we also know that

42

the entire education system from primary schooling to tertiary level is in crisis.

Half-educated, semi-literate and nonnumerate matriculants emerge seeking jobs, of which there are too few in the

…a certain kind of leadership offering a vision of our future… corporate sector or in the ranks of government. They then have to depend on themselves and are scarcely equipped to do so - so the cry goes up for the state to provide jobs.

No lasting solution will be found down that road. We have to start further back and deeper down in society, beyond purely functional remedies. If an entrepreneurial culture is to emerge across the wider spectrum it needs a certain kind of leadership offering a vision of our future based on positive stakeholder relationships.

We are all stakeholders in modern South Africa with its global partners in trade and we - as well as they - all stand to lose or gain from entrepreneurship.

In a nutshell, we must seek to attain the Millennium Development Goals of eradicating hunger and poverty by pulling ourselves up by our own entrepreneurial bootstraps - and that means all of us. Are we doing what we should?

Let’s take some pointers. Corporate business, for instance, is doing too little to encourage entrepreneurship within its own protected walls. The 2011 Global Entrepreneurs Monitor (GEM) report, showed that less than one half of one per cent of employees are actively engaged in Entrepreneurial Employee Activity in this country, compared with a country such as Uruguay where nearly 5% of employees are busy with new business ideas.

Big business must play its part - but what about government? What is it doing to construct an enabling environment? According to the World Bank’s Ease of Doing Business 2012, in the top rated country, Singapore, it takes only 3 procedures and 3 days to start a business.

In South Africa, ranked 35, it takes 5 procedures and 19 days.

Recently at the Soweto International Conference on Entrepreneurship and Small Business Development, held at the University of Johannesburg’s Soweto Campus, several speakers including President Zuma emphasised that the townships should be thriving centres of economic activity and excellence rather than mere labour reservoirs. Yet this will

TRADE & INVEST AFRICA

remain a dream until it becomes easier to do business.

And what of small businesses themselves - what are they doing to pull themselves up to sustainability? The troubled issue of hostile labour relations breeds an environment in which good management-worker relations are not built up from the start. Many small businesses are labour-minimisers because they fear being dragged off to the CCMA (Commission for Conciliation, Mediation & Arbitration) every week, diverting valuable management time from entrepreneurial activity.

To become sustainable in democratic South Africa you have got to base your

… base your labour practices on respect for human dignity… labour practices on respect for human dignity and rights, decent wages and cultural understanding. None of this has to cost the entrepreneur an arm and a leg.

Efficiency rather than exploitation must be the watchword in small businesses just as it must be in big business.

Against this background of corporate, government, and small business shortcomings, we have researchers and advisors telling us that small businesses are at a natural disadvantage. They lack scale and thus bargaining power, they lack skills and thus efficiency, they have limited knowledge and information, they often lose clients because they cannot meet large orders, they battle to access training programmes, and they face high fixed costs because the regulatory and policy environments do not cater for SMEs. This is a gloomy picture, based on the functional approach to entrepreneurship. The functional approach is not wrong - it seeks to correct real problems in the practical context with which the entrepreneur must grapple - but as I said, there has to be a more fundamental set of solutions to our national crisis of small business sustainability.

In my recent book Attuned Leadership: African Humanism as Compass (Penguin SA, 2011), I argued that leadership in our political economy must humanise itself to deliver a more caring, socially responsible, and democratically accountable form of capitalism. This may sound like a very worthy but abstract and not very practical recipe for business success.

I sincerely believe, however, that the

ers, at all levels from local to national and international, must come to the service of small business on a grand scale.

The example of the Marshall Plan that saved Europe after World War 2 and put Germany on the road to renewal and massive growth is demonstrative.

Let us seek a new national consensus around the concept of the developmental state that is founded on the energies of the people themselves. Their creative freedom can be liberated if it is fully resourced by government and business, comprehensively planned and rolled out, and supported by nationwide stakeholder involvement.

The major stumbling block to the achievement of a true entrepreneurial culture in South Africa can in brief be described as a lack of vision, or to put it another way, the absence of visionary leadership - not just any kind of leadership with a grand plan, but leadership with the moral authority to mobilise the country’s major interest groups and parties in support of entrepreneurship.

This is what we South Africans are famous for. It is the kind of leadership that Mandela gave the nation, inclusive and encompassing, not divisive and self-seeking. He conciliated, rather than

Mandela gave the nation inclusive and encompassing leadership…

African philosophy of Ubuntu is a discipline that can correct many of the ills of the type of rampant, destructive, predatory capitalism that has swept the global economy into recession. Ubuntu makes leaders accountable to the led; in business it implies that the enterprise is embedded in its community of stakeholders and should spread the benefits of profitmaking activity.

This does not imply that everyone deserves equal rewards for unequal contributions (the recipe of communism). It does imply that rewards must be equitable and business transparent. Unless we do turn capitalism around to serve mass needs the Millennium Goals will remain forever out of reach.

Which means in effect that our lead-

breeding conflict; and rather than aggravating the concerns of different groups with divisive views he aggregated them, seeking to bring all together for national reconciliation and progress.

We have the institutions to mobilise for entrepreneurship, along with the wherewithal and knowledge to draw up and execute plans. This cannot be a Stalinist undertaking of centralised, bureaucratic five-year plans. To portray this vision and call forth the support of communities - many of whom are currently sceptical about capitalism because they are too often its victims -is the task of ethical, human-centred leadership.

Functional analyses of entrepreneurship miss the key point that businesses cannot survive and thrive without the energetic participation of their stakeholders. By concentrating only on the character of the entrepreneur and the difficulties of transitioning to sustainability - better management and so on - the functionalists fail to recognise the role of leadership vision and community in-

TRADE & INVEST AFRICA

volvement in business life.

Entrepreneurs know this very well because when they start up at the grassroots the most important element of their success is popularity at the interface with customers. We live in a relational world, and recognition of our mutual dependence is the first step towards working together as a nation.

This point is recognised in broad theory. Trade and Investment research papers on SMEs produced by the OECD and the United Nations conclude that the long-term survival of SMEs is heavily dependent on their relationship with other elements of the corporate community including foreign enterprises and large domestic corporations (whether state-owned or private).

What we have to do is actualise this mutual dependence. My own watchwords are the motif of Ubuntu: ubuntu ngmuntu ngabantu - I am because you are, you are because we are.

We need to agree that true human development - which implies economic and social development, along with leadership responsibility and accountability - requires an ethical commitment to a common destiny in which all citizens can share the benefits of the political economy.

In this respect, development comes from within the individual and communities on the ground. It is something that is felt strongly as a motivator, it drives the entrepreneurial urge, and it implies that we - all of us from corporate industry to township start-ups - share a single compelling aim.

That aim is to rid ourselves of poverty, dependence, racial stereotyping, corruption and criminality - the ugly realities that form a deadly nexus destroying the soul of modern South Africa. We have to turn things around and become the chief architects of our own democratic developmental state.

Entrepreneurs are entrepreneurs because of their customers. Companies and small-scale businesses are symbiotically interdependent. Government and corporate business are interwoven in one political economy. It behoves us all to optimise this multifaceted interdependence.

With that principle in mind, a Marshall Plan to put entrepreneurs on the road to sustainability is entirely possible. We need to return to Mandela’s bighearted, big visionary approach. Let’s plan big to win small.

Copyright, Reuel J Khoza. Used with permission. More on website and blog at www.reuelkhoza.co.za”

43

We’re not just building power stations, we’re building the nation.

S&S/446290/E/Corp

Since 2005, Eskom has committed to spend an estimated R340 billion on building new power stations, power lines and other infrastructure. This initiative will not only ensure more electricity for all South Africans, but to date it has also created thousands of jobs and has led to the development of infrastructure such as roads, railway lines, schools and housing. Eskom’s current capital expansion programme will be completed in 2018/2019, which means its social and economic impact will be one of the many things our nation can look forward to in years to come. We’re empowering South Africans to help create a brighter future, because with power we can grow a nation.

Eskom Holdings SOC Limited Reg No2002/01527/06

www.eskom.co.za

Energy

TIA

Gas discoveries have Southeast Africa abuzz

Major boost for regional development expected

T

he sleepy rural backwater that is Southeast Africa is on the verge of a massive economic explosion that will change it forever, for better or worse. It is here, off the coast of some of the world’s poorest countries, that some of the world’s richest gas fields have been discovered in recent times…and continue to be discovered.

From Mozambique, still recovering from decades of war, to Tanzania with its unspoilt natural beauty and famous wildlife, and to Kenya with its pristine and isolated beaches, the words “energy”, “trade” and “development” are filling a hitherto poverty-stricken region with excited anticipation. It is especially the most recent gas finds off the coast of Mozambique that are causing a stir. Fuelling these expectations is the forecast by the International Energy Agency (IEA) of a growing role for natural gas in the world’s energy mix.

However, experts warn there are significant technical and commercial challenges and risks to bringing the liquefied natural gas (LNG) to market by the end of this decade. Some of the challenges revolve around legislative and political facilitation, government capacity, infrastructure, and financing. In similar vein professional services firm Ernst & Young warns that unprecedented new prosperity for the region is by no means a given and that there are many risks that could put a damper on the region’s gas prospects.

Be that as it may, when Royal Dutch Shell chief executive Peter Voser briefed investors at the Royal Institution in London’s Mayfair last month, he said energy demand could have doubled by 2050 and painted gas as the fuel of the

By Stef Terblanche future that could satisfy that demand as it was plentiful, acceptable and affordable.

Already by April this year the overall value of the natural gas discovered along the Mozambican coast alone, stood at around US$1,600 billion. Since then several more gas discoveries have been announced, with experts estimating there are an estimated 35 trillion to 65 trillion cubic feet of recoverable natural gas in the offshore fields of Mozambique. And, they say, there is more potential for further discovery.

The East African gas finds have attracted major global energy and oil players. While the “traditional” multinationals like Anadarko, Shell and Exxon have already established a presence here, the finds have also elicited much interest in Asian countries just across the Indian Ocean.

The gas finds – once production goes online - are also set to significantly bolster a 26-nation, trillion-dollar super trade bloc taking shape in the region, as well as the ambitious North-South Corridor, a road and rail infrastructure project spanning eight countries from Tanzania to South Africa. (See separate article.)

Offshore discoveries of these vast, previously unknown gas fields along the East African coast over the past 18 months have shaken oil, energy and exploration companies into frenzied activity, triggering takeover battles for companies suddenly thrust into lucrative positions.

One such takeover battle was for London-listed Cove Energy, with Royal Dutch Shell and Thailand’s PTT Exploration and Production both making big offers. In the end PTT outbid Shell.

According to reports in June, Anadarko was considering expanding

TRADE & INVEST AFRICA

its plans for the development of Mozambique’s Offshore Area 1. This followed its discovery of a second major gas field in the block, which is located in the Rovuma Basin. By November Anadarko was considering a joint venture to monetize up to a third of its interests in Mozambique.

In Mozambique, projects by Anadarko and Italian integrated energy group ENI seem to be the most advanced at present. These two have drilled by far the most wells and have discovered the most gas reserves. Anadarko is about to enter the next phase of operations, namely front-end engineering.

Despite the challenges listed above, both Anadarko and ENI aim to bring the first LNG in Mozambique to market in 2018.

Enough gas for Europe With the latest find in the Atum-Golfinho field, situated north of its Prosperidade field, Anadarko is said to believe the block may hold between 30 and 60 trillion cubic feet of gas that can be extracted. This is enough to meet the total combined gas consumption of Germany, Britain, France and Italy for 3 to 6 years or even longer.

Cove’s attractiveness for bidders like PTT and Shell lay in the fact that it owns an 8.5% stake in the block where Anadarko made the latest discoveries and where it now plans to invest in the construction of plants to ship the gas abroad as liquefied natural gas. In addition, the Atum-Golfinho field is located entirely in the block owned by Anadarko and Cove and does not extend into adjacent exploration areas.

47

As mentioned already, other huge discoveries have been made by Italian company ENI off Mozambique and by Britain’s BG Group and Exxon Mobil further north in Tanzania.

Anadarko’s other partners in its Mozambican block are Indian groups Bharat Petroleum and Videocon, and Japan’s Mitsui.

ENI earlier this year revised its capacity estimates for its gas blocks in the Rovuma Basin upwards by 10 trillion cubic feet to 40 trillion. The group believes gas reserves in the area may yet be even bigger and had plans to drill another four wells by the end of this year, reported the Econo mist Intelligence Unit (EIU). Coupled to oil discoveries in Kenya and Uganda, the region is about to compete with Nigeria as Africa’s biggest energy producer. Having joined the club of global gas giants with these discoveries, the region could theoretically threaten Russia’s gas supply monopoly in Europe, but will more likely start competing with Qatar in supplying Asia.

To put the gas finds in proper perspective, the US Geological Survey estimated – prior to the latest finds being made - that the gas fields off Kenya, Tanzania and Mozambique are 253 trillion cubic feet in size, compared to 186 trillion cubic feet for Nigeria. But this is still considerably smaller than the

48

world’s largest gas field, the South Pars/ North Dome field straddling Qatar and Iran which, according to the International Energy Agency, holds an estimated 1,800 trillion cubic feet of in-situ natural gas and some 24 billion cubic feet of natural gas condensates.

With low demand for gas in the countries of the Southeast African region, the bulk of the finds will probably be turned into liquefied natural gas (LNG) for export to an expanding global market searching for fuels that are cleaner than coal. Neighbouring South Africa, troubled by an electricity supply crisis and relying heavily on high-polluting coal power stations, could also benefit.

Accelerating development The gas finds came at an opportune time for the region’s development plans which have been hampered by poor infrastructure, slow integration and a lack of funds.

Gas money - both in the initial developmental stage and later in the production stage - will most likely help to fast-track the ambitious North-South Corridor (NSC) project and may also improve the appetite of private equity entities to commit to long-term investment in this project. Until now state entities in the African countries involved in the project had to take the lead.

And the success of the envisaged

TRADE & INVEST AFRICA

US$1 trillion trade bloc, involving 26 countries in East and Southern Africa and merging three existing regional trade blocs, will be closely tied to that of the NSC. Both these initiatives could therefore benefit from an influx of construction, gas production and downstream companies into the region following the gas discoveries.

The EIU estimates that investments totalling some US$90 billion have already been earmarked for Mozambique for new energy and mining projects.

This figure is over seven times more than Mozambique’s current GDP of about US$12.4-billion.

The EIU says that some US$2 billion is earmarked for power generation, while about US$68 billion is for natural gas projects. The latter includes US$18 billion from Anadarko and US$50 billion from Italy’s ENI. It is expected that most of these projects will be developed over the next ten years.

Fracking plans for South Africa The region’s profile as a major new African energy producer could be further enhanced if Shell were to succeed with its plans to conduct hydraulic fracturing for gas deposits in shale rock in three areas making up some 90,000 square kilometres in South Africa’s arid Karoo region.

The corporation plans to sink 24 wells at an approximated cost of US$15 million each. For this the South African government recently gave a tentative go-ahead nod.

Shell applied in late 2010 for a licence from the Petroleum Agency South Africa (PASA) to start fracking operations. PASA was to make known its decision on granting Shell exploration rights last year and Shell was hoping to start exploration drilling before the end of 2012, with fracturing starting in 2013.

However, Shell’s plans were put on hold last year when a huge public outcry led by conservationists, farmers and businessmen over possible permanent environmental damage and massive water pollution caused South Africa’s Mineral Resources Minister, Susan Shabangu, to announce a moratorium on fracking.

She also set up a task team to investigate the method further.

More recently South Africa’s Energy Minister, Dipuo Peters, said she hoped that the shale gas exploration would go ahead as it could assist the country to build up energy supplies and move to a lower carbon economy. In September Shanbangu gave the green light for the moratorium to be lifted, effectively giving the go ahead for fracking. This was endorsed by the South African government. However environmental groups seem set to challenge this in court.

Estimates vary, but some put the potential shale gas resource in the Karoo at 485 trillion cubic feet of gas, or as much as representing about the fifth-largest gas resource in the world. A report commissioned by Shell from Econometrix, a South African firm, claimed the shale gas industry that could result here could add up to R200-billion a year to South Africa’s GDP and could create as many as 700,000 jobs. Other experts and environmentalists have scoffed at the report, saying it is grossly over-estimating. South African petrochemicals group Sasol at present contributes around R60 billion a year to the country’s GDP. Together these developments in Southern and Eastern Africa, the new oil

finds and ongoing exploration in countries like Uganda and the Democratic Republic of Congo, and the existing oil production in countries such as Nigeria, Gambia, Angola, Equatorial Guinea and the countries of North Africa, could turn Africa into an energy powerhouse competing with the Middle East.

According to the World Bank, Tanzania, with the second biggest economy in East Africa, is expected to experience revenue increases of up to US$3 billion a year following its gas discoveries.

And Mozambique, with the fastestgrowing energy sector in the region, estimates that international energy firms already active in the country will spend over $50 billion to develop its liquefied natural gas industry over the next ten years.

Energy with a conscience However, the World Bank has already warned that African countries that have made major new gas and oil discoveries, particularly those in East Africa, will have to set up institutional frameworks to manage their new-found wealth. In addition mechanisms for investment that will contribute to development benefitting all the citizens of these countries will have to be put in place. And there will be a need for enforcing strict environmental protection measures.

In West Africa, and particularly in the Niger Delta region of Nigeria, multinational oil companies had a free rein in extracting oil at huge environmental and social cost. Benefits mostly went to corrupt senior government members.

For Southeast Africa, however, the signs are good when considering Shell’s reported acknowledgement that the gas finds in Mozambique now offered it a chance to reverse the negative image it earned itself in Nigeria. And the Mozambican government has also already demonstrated that it may approach

TRADE & INVEST AFRICA

management of its new-found gas wealth with a social and environmental conscience. That certainly augurs well for the future.

Comparative Statistics DP (Current prices in US dollars – G source IMF) South Africa: 419.93-billion Mozambique: 14.27-billion Tanzania: 24.86-billion DP Per Capita (Current prices, US G dollars – source IMF) South Africa: 8,201.99 Mozambique: 635.44 Tanzania: 577.84 overnment Revenue (As % of G GDP - source IMF) South Africa: 27.450 Mozambique: 28.741 Tanzania: 23.388 urrent Account Balance (in US C dollars – source IMF) South Africa: -20.235-billion Mozambique: -1.818-billion Tanzania: -3.055-billion Population (Source IMF) South Africa: 51,198,000 Mozambique: 22,457,000 Tanzania: 43,019,000 roved Gas Reserves Jan. 2011 P (Source CIA World Fact Book): South Africa: 27,160,000 cubic meters Mozambique: 127,400,000,000 cubic meters Tanzania: 6,513,000,000 cubic meters (Note: The comparative data for gas reserves has since changed considerably through new finds and estimates.)

49

Trade & Investment

TIA

Africa’s emerging $1-trillion super trade bloc Plans on track for 2014 launch

By A.B. Gondwe

A new super trade bloc bringing together 26 countries is taking shape across almost half of Africa, stretching from Libya to South Africa. For Southeast Africa, much of which until now was a sleepy and predominantly rural region, a potentially massive economic explosion that will change it forever, is imminent.

A

lready the south-eastern part of the emerging new African regional free trade area (FTA) – in particular Mozambique and Tanzania – is being turned upside down by huge discoveries of natural gas. These are likely to bring much-needed investment, development and new downstream industries to a region that is home to some of the poorest countries in the world.

Countries in the region are forging ahead full steam with ambitious plans to create the 26-nation FTA by integrating three existing African trade blocs by July 2014. Another regional initiative that will dovetail with these plans is the creation of the North-South Corridor (NSC). The latter is a road and rail infrastructure project spanning eight countries and is already well underway.

These plans started taking shape before the gas discoveries were made in Mozambique and Tanzania. The finds, however, came at an opportune time for the sub-region’s development plans which have been hampered by poor infrastructure, slow integration and a lack of funds.

With expectations that the first liquefied natural gas could become commercially available from the Mozambican gas fields by 2018, gas money could then be diverted in developments linked to the FTA and the completion of the NSC. The regional FTA plan seeks to merge three existing trade blocs – the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA), and the Southern African Development

TRADE & INVEST AFRICA

Community (SADC) – into a single FTA creating a free market of 525-million people with an output of US$1 trillion once it is launched.

The FTA will bring together Kenya, Uganda, Tanzania, Rwanda, Burundi, Comoros, DRC, Egypt, Ethiopia, Djibouti, Madagascar, Malawi, Mauritius, Seychelles, Sudan, Swaziland, Uganda, Zimbabwe, Zambia, Libya, Angola, Botswana, Lesotho, Mozambique, Namibia, and South Africa in a massive new market constituting 58% of the continent’s GDP and 57% of its population. It is viewed by its architects as a precursor for a continent-wide Continental Free Trade Area (CFTA), also already in the planning stages.

2014 launch Plans are well underway and the FTA is expected to be launched by July 2014, two years from now, say the 26 governments involved in the initiative. One of the only major remaining sticking points seems to be completing the harmonising of rules of origin, massive and complicated task.

Until now the slow pace of integration, the high cost of doing business, the lack of infrastructure, and disagreements over the harmonising of cross-border trade regulations, have been seen as negatives.

Off-setting that, however, has been the rapid economic growth recorded in Africa, second only to the Asian giants.

The World Bank said in February that trade barriers and regulatory requirements were holding back developments

51

causing the region to lose out on growth.

But the three existing trade blocs say they will now engage in harmonising crossborder trade regulations, a process they are optimistic will not take too long.

Sindiso Ngwenya, the secretary general of COMESA, recently said complicated negotiations on rules relating to easier cross-border trade would be a major challenge.

“While COMESA and the EAC have identical rules of origin, the SADC has got different rules of origin, so we will have to engage with them,” he said.

South Africa’s President Jacob Zuma, when answering questions in Parliament, also recently reported progress on these projects. He said South Africa’s Presidential Infrastructure Championing Initiative committee, comprising eight heads of state and government under South Africa’s leadership was championing the NSC road and rail projects to remove trade restraints. Various problem areas were identified and have been or are being addressed.

“Amongst the challenges is to further improve and strengthen coordination amongst the member states. Other issues we are looking at include funding methods for the projects and to get more private sector investments into the projects.

We are committed to make this succeed given the importance of infrastructure for Africa’s growth and development,” said President Zuma.

Of course South Africa, which has the

continent’s biggest economy and most advanced infrastructure, will be the powerhouse that will anchor the FTA initiative together with other large economies like Egypt and Kenya.

Feeding into the unfolding regional development project in the south of the continent will be South Africa’s own R840 billion (US$102 billion) infrastructure development programme which, some estimates say, will eventually be worth in excess of R3 trillion (US$366 billion), while the likes of the European Union, for example, have pledged €400 million for projects in the emerging trade bloc. Now revenue from gas projects may bolster these investments and help fast-tracking the regional development initiatives.

While African economies have been growing fast these past few years – in a number of cases now even outstripping growth in Asia – the continent continued to be criticised over its slow pace of integration and trade harmonisation. This was seen as driving up the cost of doing business in the continent.

Even bigger plans The North, Eastern and Southern African FTA initiative is not the only one in the pipeline and, as mentioned, is viewed as a precursor for an even bigger one. Also slowly taking shape are preliminary plans of the continent’s 54 nations to establish a continental free trade area by 2017. They envisage that this will substantially speed

up infrastructure development across the entire continent and harmonise and simplify related policies, laws and regulations to bolster integration and facilitate muchenhanced trade, investment and development.

Recognising that lack of political will rather than funding is inhibiting foreign investment, slowing down development t and vital regional infrastructure projects, and is also preventing intra-African trade, the African nations endorsed the plan at the 18th African Union (AU) summit in January in the Ethiopian capital and adopted a series of related agreements.

“The Continental Free Trade Area (CFTA) should be operationalized by the indicative date of 2017, and enhanced intra-African trade and deepened market integration can contribute significantly to sustainable economic growth, employment generation, poverty reduction, inflow of foreign direct investment, industrial development and better integration of the continent into the global economy,” according to the Declaration on the Program for Infrastructure Development in Africa.

But while these plans are still in the early stages, the planned FTA for the three existing regional trade blocs is fast approaching realisation.

COMESA’s Ngwenya, as well as officials from other countries involved in the regional FTA, believe the timetable set down is feasible and could even be sped up. They believe the experience gained by

all the countries involved in setting up the earlier three trade blocs will go a long way in facilitating the latest initiative. Some of the countries involved belong to more than one of the three trade blocs. For example, Kenya is a member of both the EAC and COMESA, while Zambia is a member of both the SADC and COMESA. Officials in the participating countries are hopeful that the initiative will also foster the creation of a number of new African multination companies. They point out that this was already the case in the EAC where regional integration led to a doubling of trade among member states after 2005 when they entered into a customs union. This in turn led to the creation of new multinational companies like Kenya’s Bidco which manufactures soap and edible oils.

Regional and even continent-wide integration and trade harmonisation has become vital in a continent that offers a potential market bigger than that of China, where growth is expected to be in excess of 5% this year, and where GDP could exceed US$2.6 trillion by 2020.

Integration vital Dr Denis Worrall, former South African ambassador to the UK and Australia and now the chairman of Omega Investment Research which hosts Euro-African conferences around the world, says one critical need in Africa is for greater regional integration. “In fact one leading international accounting firm has concluded that the

single biggest priority as far as Africa is concerned over the next decade should be the acceleration of the regional integration process,” he says.

Concurring with this view is Professor Meshach Aziakpono, programme head of the MPhil in Development Finance (MDevF) at the University of Stellenbosch Business School (USB) near Cape Town, South Africa. He too says African development, while showing encouraging signs of growth, is hampered by a lack of cross-border trade.

Aziakpono says the recent announcement by Brazil’s leading investment bank, Banco BTG Pactual, of a US$1 billion Africa investment fund – to be the biggest in the world - to aid the country in competing with China for Africa’s huge mineral resources and growing consumer market, demonstrates the massive untapped trade and investment potential on the continent.

He believes that as foreign interest in Africa continues to grow, African countries themselves are still largely obstructed from reaping the benefits of investment opportunities right on their doorstep, as a result of various levels of red tape barriers and a lack of development financial institutions.

“Countries such as the US, France, the UK, India, Brazil and China are investing billions of dollars into the African continent, yet recent statistics by the World Organisation (WTO), reveal that intra-African trade remains at about 10% of the continent’s overall

trade, due to barriers of a regulatory nature that African countries impose on each other.”

According to Aziakpono, inappropriate financial and trade systems are key factors that are costing the African countries billions of rands in lost opportunities and depriving the region of new sources of economic growth.

But says Tim Bashall, Head of Strategy at KPMG Africa: “We are aware that people worry about political risks and change of legislation in different African countries. But it has become a lot better. African countries have become increasingly stable and there are many promising examples of public sector reforms which have helped to improve the business landscape, including improving regulatory frameworks”.

Also responding to these challenges, outgoing Chairman of the AU Commission, Jean Ping, said “increased intra-African trade will enable the continent create a large market of close to one billion people as well as encourage the diversification of economies”.

He referred to the fact that the EAC, COMESA and SADC had already begun negotiations to merge as a precursor to a single trade area across the entire continent.

“The AU is recommending that the Economic Community for West African States (ECOWAS), Economic Community of Central African States (ECCAS) and Arab Maghreb Union (AMU) enter into similar talks,” Ping said. “Many analysts are of the view that Africa is on the verge of an economic boom much like East Asia experienced in the later part of the 20 century,” he added.

Investment

TIA

Zambezi River basin offers multisector investment opportunities – World Bank study

A

new World Bank study has found that Africa’s fourth-largest river basin - the Zambezi River basin in south-eastern Africa - offers significant multi-sector investment and developmental opportunities that can optimise regional economic growth across a number of countries.

The study singles out the potential development of the hydropower and irrigation sectors that could result in further economic opportunities, as being of particular importance.

“Better management and cooperative development of the basin’s water resources could significantly increase agricultural yields, hydropower outputs, and economic opportunities,” says the report.

“Seen in this light, cooperative river basin development and management not only provide a mechanism for increasing the productivity and sustainability of the river system, but also provide a potential platform for accelerated regional economic growth, cooperation, and stability within the wider Southern Africa Development Community (SADC).”

The Zambezi is Africa’s fourth-largest river basin, after the Congo, Nile and Niger. From its source 1.5 kilometres above sea level in Zambia, the main branch of the river flows through Angola, enters Zambia again, passes through Namibia and Botswana, plunges over Victoria Falls into Zimbabwe, and into Lake Kariba.

Beyond the Kariba Dam, the Zambezi unites with the Kafue River and flows into Mozambique, amassing behind the Cahora Bassa Dam before joining the Shire

By Etienne Lefebre Terblanche River, which stems from Lake Malawi, Africa’s third-largest lake, and, having covered roughly 1.3 million square kilometres, the Zambezi finally empties into the Indian Ocean, discharging over 4,000 cubic metres of water per second.

The waters of the Zambezi River Basin (ZRB) could be the key to regional development and sustainable economic growth for many sub-Saharan countries.

Already the economies of its eight riparian countries, namely Angola, Botswana, Malawi, Mozambique, Namibia, Tanzania, Zambia, and Zimbabwe, are closely linked to the river, which serves as one of Africa’s most valuable natural resources and meets the basic needs of an estimated 30 million people.

However, despite the major role of the ZRB in providing food security for regional populations and generating hydropower, which makes significant contributions the economies of many riparian countries, it has remained largely undeveloped over the last three decades.

The ZRB is characterised by periodic droughts and floods, which makes progress in terms of managing the resource particularly difficult for many of the affected countries. Compounding the problem has been the unilateral development strategies of many riparian countries, owing to differences in political and socio-economic conditions, as well as physical variations of the basin itself.

But the report recently published by the World Bank, which looks at investment opportunities specifically for developing the hydropower and irrigation

TRADE & INVEST AFRICA

sectors, as well as the potential economic benefits of regional cooperation within these sectors, has revealed the true potential of the ZRB. International financial institutions and development organisations, including the World Bank, have already made substantial investments and established various support programmes in the region, but the report provides the first comprehensive analysis of multi-sector investment opportunities and a solid foundation for governments to use in the development of a coordinated strategy to optimise regional economic growth.

Through analysing several possible development scenarios, the report established the most balanced approach to hydropower and irrigation development, illustrating in the process the considerable extent to which one sector can influence the productivity of the other.

Widespread irrigation projects would generate substantial job opportunities and increased agricultural productivity associated with it would provide a measure of food security for the region. But extensive development of this sector would result in a negative impact on the hydropower sector to the extent of offsetting any economic benefits.

The scenario determined to be the most viable, in economic terms, would generate some 270,000 direct employment opportunities, as opposed to the 1 million potential jobs that would be created by fully developing the irrigation potential of the ZRB. A major determining factor in the economic equation is

55

thus the premium assigned to firm energy.

However, while hydropower generation produces considerably less direct employment opportunities, the report does not take into account the indirect opportunities stemming from the economic growth associated with sufficient, sustainable power supplies.

The report also indicated that other sectors, such as tourism and fisheries, as well as conservation programmes, will have an almost negligible impact on the viability of investments in hydropower and irrigation projects. Similarly, for the balanced scenario, the devel-

opment of the latter industries should have minimal impact on other sectors.

Optimisation of existing hydropower facilities through coordinated operation between riparian countries could increase firm energy production by 7% or to the value of US$585 million over a 30 year period and would require no fundamental infrastructure investment.

The ZRB generation plan, developed by the Southern Africa Power Pool (SAPP), could be implemented at a cost of US$10.7 billion over a 15-year period, effectively supplying the total regional power demand of all ripar-

ian countries, approximately 48,000 gigawatt hours per year. And once the SAPP plan is successfully in place, the optimisation of the hydropower sector through coordinated operation of the various facilities could potentially boost energy output by an additional 23%.

Investment opportunities requiring US$2.5 billion in the agricultural irrigation sector were identified by the report and, in keeping with the most balanced of the development scenarios, if all the projects were implemented, the productive area for cropping could expand by 180% or more.

In the case of all identified irrigation projects being undertaken without the corresponding development of the hydropower sector according to the SAPP plan, average energy generation could, however, be reduced by 9%, while the concurrent development of both sectors would result in only a 4% average potential energy reduction.

The report concluded that a reasonable balance between hydropower and irrigation investments could produce roughly 30,000 gigawatt hours per year of firm energy and upwards of 770,000 hectares of irrigated agricultural land.

Other options to increase energy generation through cooperative irrigation development initiatives were also

identified, such as relocating nearly 30,000 hectares of infrastructure to a site further downstream, which has the potential of boosting annual firm energy output by 2% or to the net present value of US$140 million. However, such proposals threaten food security for associated riparian countries and are unlikely to be implemented.

The data generated and consolidated information produced by the analysis of multi-sector investment opportunities in the ZRB was provided to the riparian countries, the SADC, international development partners, and the Zambezi River Watercourse Commission (ZAMCOM) with the goal of bolstering international cooperation and investment in the ZRB.

With the focus on hydropower and irrigation as key investment areas, the development scenarios proposed by the report provide growth-orientated investment opportunities in power and water in the ZRB. However, the realisation of these opportunities lies in the ability of riparian countries to establish and maintain cooperative development and management plans for the resources of the ZRB. The potential for sustainable economic growth and a handsome return on investments certainly exists.

(The full report can be downloaded from the World Bank’s website at www.worldbank.org)

Statistics

TIA

Africa’s numbers: can you count on them?

By Simon Allison

What can be measured can be improved. But what if the measurement is flawed, outdated or biased?

This is the situation confronting governments, businesses and other organisations in Africa. Simon Allison looks at data on Africa and discusses how it could be made more reliable.

S

tatistics are important, particularly for gauging development, and particularly in Africa. If we cannot measure and compare, we cannot understand, analyse and look for solutions. Governments, donors and businesses rely on numbers measuring healthcare, poverty, education, the economy and other issues.

These numbers determine policy. How reliable are they?

In short, not very. Despite the plethora of facts and figures available, Africa in particular suffers from a dearth of good data.

Some of it is old, some of it is biased, some of it just does not exist. Until the continent can rectify this situation, policy development is based on as much guesswork as fact.

“Without data, policy debate and creation cannot be based on facts and policymaking tends to remain in the realm of commitments,” said Elizabeth McGrath, director of the Ibrahim Index of African Governance, which collates much of the reliable data in Africa (and sometimes, by virtue of necessity, some of the less reliable data) into an index that measures governance. “There is no doubt that with better data, governments and partners alike could identify which policy interventions work most efficiently.”

One of the biggest issues facing the continent is poverty. Billions of dollars are poured every year into poverty alleviation projects. There is only one problem: no one has a clue how poor Africa really is. The statistics are so flawed that they are

nearly meaningless. The absence of good poverty statistics raises serious questions about resource allocation, accountability and cost-effectiveness.

One example stands out as particularly disturbing. The World Bank’s World Development Report is one of the primary sources for poverty data. It is enormous.

Businesses use it to make investment decisions, donors to determine funding requirements and finance ministries to make economic policy. It matters.

But sometimes, World Bank numbers can be dangerously misleading. Look at the report’s most headline-grabbing indicator: how many people in a particular country are living under the infamous poverty line, defined now as $1.25 a day?

For Algeria, the answer to that question would be 6.8% of the population, according to the report. But do not take that at face value. Dig a little deeper and it becomes apparent that this data was collected in 1995, 17 years ago. Since then, the World Bank has had no new data measuring the number of Algerians below the poverty line. It is forced to rely on extrapolation to estimate what the actual numbers might be. Extrapolation or related techniques are standard statistical practices and can often be quite accurate.

But they are no substitute for collected data. The longer one has to extrapolate the greater the probability of error.

Algeria is the most extreme example, but there are others. The newest data in the report on South Africans and Tunisians

TRADE & INVEST AFRICA

below the poverty line is 12 years old; for Sierra Leoneans, it is eight years; for Nigerians, it is seven years. Even in the best-case scenario, the data is at least three years old, thanks to the time lag which is a feature of most national data, given the practicalities of data collection.

What all this means is that the World Bank’s main indicator of poverty in Africa is at least three years out of date, usually more. A lot can happen in three years, as any president trying to explain away his country’s unflattering numbers will admit.

Essentially, what we think we know about poverty in Africa today is, in the best cases, a reasoned estimate. In others it is guesswork.

Other flawed statistics reveal how wrong these guesses can be. One of the most quoted and relied upon statistics in the world is that of gross domestic product (GDP), used to measure the size of an economy. GDP is calculated from what is known as a base year. This base year should be regularly updated to compensate for unanticipated variations; if not, GDP figures can be wildly skewed.

Take Ghana, which rebased its GDP in 2010, going from a base year of 1996 to 2006. Suddenly, the economy grew by 60%. The average per capita income jumped from under $800 to $1,318, enough to catapult Ghana from being a low-income to a middle-income country. Not a bad return for a few relatively straightforward calculations. Numbers, especially in Africa, are not sacred; they can

59

often be misleading. Why? Rural communities in Africa are generally difficult to access, thus hard for data collectors to reach.

Much commerce is conducted informally, leaving no records.

Government resources are thinlystretched and directed at material outputs like infrastructure or healthcare, rather than the less obviously valuable task of collecting statistics. There is a shortage of trained staff to collect data. When data is collected, it is often at irregular intervals and inconsistent with what came before, making it impossible to produce meaningful comparisons.

There are also some less valid reasons.

Bias is a huge problem, particularly when so many statistics come from so-called “official data”, numbers produced by a government.

What is to stop presidents from telling people what they want to hear rather than the real facts, particularly when the made-up or massaged statistics make the government look so much better? Equally, what is to stop non-governmental organisations (NGOs) from manipulating their figures to make a situation look so much worse—and therefore so much more in need of both attention and funding— than it really is?

The underlying point of these examples is that the less reliable the statistics, the greater the chance of misinterpretation or manipulation. So how can statistics in Africa be made more reliable? There are three types of data, all of which are unreliable in different ways and therefore require unique solutions.

Outcome data is the most valuable, but also the most difficult and expensive to collect. It measures tangible outcomes such as the number of children in school or the prevalence of a certain disease. Even in a perfect world, this requires huge investment and all the data comes with a two- to three-year time lag. Usually, governments manage the collection of outcome data, which is the clue for how to improve it.

Governments and donors should invest real resources into national statistics offices capable of serious research, and ensure the data gathered is comparable across

What all this means is that the World Bank’s main indicator of poverty in Africa is at least three years out of date, usually more.

60

TRADE & INVEST AFRICA

countries and time. This is already happening, to an extent. The African Union Commission and the United Nations Economic Commission for Africa, in partnership with the Organisation for Economic Cooperation And Development, are focusing on strengthening national statistical capacity and harmonising data collection techniques. But along with strengthening the national offices, donors need to stop trying to replace them.

“Donors flood money into conducting independent, small sample surveys in a country, usually to assess the impact of their own projects. But this can undermine national statistics offices, and removes any incentive for the government to fund them,” said Richard Watts, a specialist in African data who consults for international NGOs and the United Nations.

“More should be done to build the capacity of government statistical departments, rather than usurping them.”

Process data assesses laws and regulations and is more subjective. A good example is the World Bank’s Doing Business Report, which uses in-country experts to answer hypothetical questions such as the

Africa needs to commission its own process data and use its own experts if it wants a more relevant picture. number of days it takes to establish a business in a country. These answers are then translated into scaled numbers and compared with other countries. But subjectivity is a problem. Almost all process data on Africa is compiled by western institutions, often using western rather than local experts, and this produces a certain cultural bias in the statistics.

Africa needs to commission its own process data and use its own experts if it wants a more relevant picture. Moves to address this are being made. The Mo Ibrahim Foundation, for example, is working with Afrobarometer, a Benin-based research company, to scale up Afrobarometer’s existing citizen surveys to cover two-thirds of Africa; they have commissioned the South Africa-based Global Integrity Trust to create a network of experts in each African country to provide assessments of key political, social and economic indicators.

Finally there is input data, which is the

easiest to measure but often the least useful. This is usually about the money that is allocated into a specific area or project.

How much has the government spent on healthcare? How much did the United Kingdom donate to Tanzania last year?

These numbers are easily manipulated, especially given the lack of accountability in the development sector. If an NGO says they spent $100 fighting poverty last year, how do we know how much of that went to the intended recipients and how much was spent on flights, hotels and per diems for the NGO staff?

The key to improving input data is improving accountability. NGOs need to be held to the same accounting standards as listed companies and governments must be encouraged to be transparent with their finances.

All this is easier said than done; data collection is hard, expensive work. But there are two trends that might encourage more reliable and timely statistics. The first is improved and more widespread education across the continent. It is producing people able to collect information and, more importantly, people able to use it effectively.

The second is Africa’s increasing commercial potential. Like countries, companies need current and accurate statistics to make effective business decisions. As a result, corporations will use their influence and money to improve data collection.

Hopefully, when governments realise that accurate statistics can not only help them govern, but also attract investors, they too will put more emphasis on producing reliable and up-to-date numbers.

Still, it will be many years before Africa consistently produces statistics that governments, investors and donors can trust.

Until then, policy and business decisions will all too often be based on misinformed conjecture.

TRADE & INVEST AFRICA

This article first appeared in Issue 2 of Africa in Fact, the journal of Good Governance Africa.

61

Phone? Tablet? Feel free with Galaxy Note.

5.3� HD Super AMOLEDTM

Amazing Size 1.4GHz Dual-Core Processor

9.65mm

C1200088

S memo

S Pen

Capture and create with the new Samsung Galaxy Note. The benefits of a tablet. The convenience of a smartphone. www.samsung.co.za

0860 726 7864

Technology

TIA

Mapping a new ICT path for Africa

By Chris Yelland, managing director, EE Publishers

A

s the world finds itself in the process of rebalancing global GDP (gross domestic product) Africa is only now emerging as a serious market projected to be worth some US$1.7 trillion by 2020 with over a billion consumers. And information and communication technology is set to play a huge role in Africa’s growth.

As Delta Partners MD Andrew Snead pointed out at the inaugural African ICT Indaba, in Cape Town, earlier this year, over 500-million of the anticipated three billion new mobile Internet users around the globe could come from Africa by 2020.

Snead also cautioned that Africa should, however, position itself to successfully contribute to this anticipated growth.

The objective of the Indaba, hosted by the South African Department of Communications (DoC) and International Telecommunications Union (ITU) was to formulate an Africa-wide agenda and approach to expanding the growth of the ICT sector.

To this end the South African minister of communications, Dina Pule, said that discussions must shape the framework for using technology in order to achieve socio-economic development and create sustainable jobs.

And during a panel discussion at the indaba, MTN CEO Karel Pienaar said that the foundation to enabling a knowledge economy is a quality broadband infrastructure, and that any delays in the rollout of broadband in Africa could result in thousands of job opportunities being lost, with a significant negative impact on GDP. Meanwhile Alec Hogg, till recently executive director of Moneyweb, noted that from small beginnings, Africa is slowly awakening to the opportunities of engaging on its own terms with the international science, engineering and technology, food and agriculture, manufacturing and busi-

TRADE & INVEST AFRICA

ness communities to achieve appropriate foreign investment and sustained economic growth.

Hogg, who had just returned from the World Economic Forum on Africa in Addis Ababa, was speaking at a business breakfast briefing in Johannesburg hosted by the Association of Distributors and Manufacturers of Electronic Components (ADEC).

Currently, the USA has 24.3% of global GDP, with China having 8.7%, and Africa a mere 2%. However, said Hogg, we are living through a rebalancing of global GDP, with China’s GDP increasing steadily towards its natural share of 23%, while Africa is only just starting. In this, Africa needs to appreciate that economic growth is not just about mineral resources, mining and commodities – the continent needs to unleash its human potential.

Attendance at the Africa WEF 2012 was significantly oversubscribed, with political and business leaders from around the world reflecting a new and different business interest of pragmatic optimism in the continent this year – an interest in its emerging markets, its young people and the global shapers of Africa.

Hogg indicated that as developments are unfolding fast in Africa, astute business leaders are looking to invest in Africa – but in a different way. Hogg believes that the demographics of Africa, with some 60% of the population under 30 years of age, offers a significant potential dividend, but this needs a considerable investment in education.

A consistent theme at the WEF event was that African governments were prioritising economic growth. In the fields of science and technology, South Africa, with its eight partner countries – Botswana, Ghana, Kenya, Madagascar, Mauritius, Mozambique, Namibia and Zambia – have

65

More about ICT in Africa….

recently won the lion’s share of the Square Kilometre Array radio telescope project after nine years of effort.

Other opportunities presenting in Africa include leapfrogging the traditional phases of industrialisation and technology development, and examples of this can be seen in the fields of information technology, mobile wireless communications and digital satellite television.

There are 616-million mobile phones in Africa, greater than the whole population of North America and this brings new business via smart phones through wireless banking, e-commerce and the internet, direct to the youthful and growing population.

The ICT Indaba heard that there were over 1.6-billion people using mobile phones, of which about two-billion were connected to the Internet. It is expected that by 2020 this number would increase to five-billion.

But while internet access is increasing, the cost of bandwidth, priced up to a thousand times higher than in developed countries, remains an inhibitor instead of an enabler in Africa. Hogg says that there is an urgent need for Africans to get onto level playing fields with the rest of the world, to empower women, and to enable new business models. All of these may thus be seen as

66

opportunities rather than impediments.

Hogg suggested that the USA and China built their economies on effective distribution of goods and services, and that Africa should follow suit. While high technology local manufacturing may not be feasible in the short and medium terms, he points to several significant examples of local African service, assembly and repair facilities as pragmatic approaches that make a start.

In South Africa, significant new initiatives are underway to make electronics manufacturing in South Africa more globally competitive. Whilst somewhat fragmented, there are in fact some strong electronics manufacturing niches in the country, such as prepayment electricity meters, television sets, DSTV decoders and set-top boxes, vehicle tracking and security systems, and contract manufacturing.

His advice to business wanting to invest in Africa is to arrive early and take a long term view, embark on true partnerships, forget about colonisation, be engaged and vigilant, and maintain a diversified portfolio.

• Chris Yelland is the MD of EES Publishers which specialises in the fields of engineering, electronics and ICT

TRADE & INVEST AFRICA

•

By 2020 more than 500-million of the projected 3-billion new global mobile Internet users could come from Africa

•

ICT contributed 1.8% to South Africa’s GDP, while in many other African countries the figure stood at about 1.2%

•

Africa has been the world’s fastest growing region over the last decade in terms of mobile penetration. While fixed line penetration has stagnated at 4% in the continent, mobile has grown at an astonishing rate to 45% with North Africa leading at 73%.

•

A survey of 15 major African cities found 52% of the population accessed the Internet in the past month, 25% accessed it daily, over 20% used it more than 10 hours a week, and 54% owned an Internet-capable device

•

The South African government is establishing a review panel to develop a new integrated ICT policy by March 2013

•

International Telecommunications Union says Africa’s mobile subscription penetration currently stood at 33% with 433-million mobile users

•

A World Wide Worx survey found Internet penetration in South Africa is 17%, in Nigeria 29%, and in in Kenya 25%

•

New initiatives are underway by South Africa’s Department of Trade and Industry and the electronics component and manufacturing sectors to make the industry more globally competitive

•

Moves are afoot to establish a continental top-level domain for Africa, with UniForum South Africa having been appointed by the African Union Commission (AUC), supported by over 40 African governments, to lead the dotAfrica project

•

Between R150-billion and R200-billion investment in infrastructure is needed to realise Africa’s broadband ambitions, says telecommunications group MTN MD Karl Pienaar

“ ZanAir is celebrating its 20th anniversary – Come & join us in this celebrations!”

This year we celebrate our 20th anniversary and its been a journey of immense growth. ZanAir started as a small charter company with a 5 seater, and today we operate 6 aircrafts across Tanzania. The company was started with just two staff, and today we employ a team of 70 dedicated employees who are always willing to assist.

Being the friendliest airline in Tanzania, we have managed to attract some of the best tour operators from overseas and local travel agents. Most of our clients have been doing business with us for more the 10 years.

This year we have also joined hands with lodges in Selous Game Reserves and Bluebay Beach Resort to offer attractive packages.

For more information on this packages please visit or promotions page.

Thank you for choosing ZanAir “Zanzibar Premier Aviation Company”

“For domestic flights within Tanzania, contact ZANAIR…the friendliest airline!

Infrastructure

TIA

Addressing Africa’s infrastructure challenges

Crucial to long-term growth

By André Pottas

With Africa seen as one of the world’s fastest growing economic hubs, meeting the demand for key infrastructure is a priority.

This translates into exciting opportunities for global investors who need to look past the traditional Western view of Africa as a homogeneous block, and undertake the detailed research required to understand the nuances and unique opportunities of each region and each individual country, writes André Pottas, a partner with professional services firm Deloitte.

O

ne of sub-Saharan Africa’s top developmental challenges continues to be the shortage of physical infrastructure. Greater economic activity, enhanced efficiency and increased competitiveness are hampered by inadequate transport, communication, water, and power infrastructure.

The world is eager to do business with Africa, but finds it difficult to access African markets, especially in the interior, due to poor infrastructure.

Physical infrastructure covering transportation, power and communication through its backward and forward linkages facilitates growth; while social infrastructure including water supply, sanitation, sewage disposal, education and health, which are in the nature of primary services, has a direct impact on the quality of life.

Without this infrastructure, Africa will not achieve the growth levels expected or required. Infrastructure planning and investment are therefore critical if Africa’s huge economic and developmental potential are to be realised.

Key in helping the continent realise its economic potential, is the careful construction of a sustainable infrastructure that can assist to turn the situation around.

Africa’s economic growth and development are intrinsically linked to infrastructure development, but it is the push-pull relationship with commodities that has become the driving force for infrastructure development in the region.

TRADE & INVEST AFRICA

Large commodity finds like oil and gas in East and Southeast Africa, as well as the huge demand – particularly from Asia – for agricultural and natural resources, including minerals such as iron ore, platinum, coal, and copper are driving the need for infrastructure. In turn, investment in infrastructure needed to extract and move these commodities to global markets (rail and port infrastructure) continue to drive Africa’s economic growth.

The lack of infrastructure is a serious obstacle to growth and development, and results in a low level of intra-African trade and trade with other regions. The continent accounts for 12% of the world population but generates a mere 1% of global GDP and only 2% of world trade.

Despite this, six of the world’s ten most rapidly expanding economies are now located in sub-Saharan Africa. This gives even more reason for speedy infrastructure transformation.

Rapid population growth also places enormous challenges on existing, and often obsolete and poorly maintained infrastructure and resources. In many African countries, infrastructure limitations, notably in power and logistics, inhibit productivity at least as much as other institutional challenges, such as weak governance, onerous regulation and lack of access to finance.

Studies, such as that by the Infrastructure Consortium of Africa (ICA), have shown that poor road, rail and harbour infrastructure adds 30-40% to the costs of

69

goods traded among African countries. A recent World Bank study on infrastructure also highlighted challenges in this regard for continental economic development. It found that the poor state of infrastructure in sub-Saharan Africa, that is electricity, water, roads and information and communications technology (ICT), reduced national economic growth by two percentage points every year and cut business productivity by as much as 40%.

It is estimated that about US$93-billion is needed annually over the next decade to overhaul sub-Saharan African infrastructure. About two-thirds or $60-billion of that is needed for entirely new infrastructure and $30-billion for the maintenance of existing infrastructure. Only about $25-billion annually is being spent on capital expenditure, leaving a substantial shortfall that has to be financed.

structure development on balance sheet, and infrastructure rollout has thus been constrained by budgetary restrictions.

Furthermore, local banks are often not able to supply the tenor of loans needed for long term infrastructure investment.

For the continent’s infrastructure backlogs to be cleared, some form of collaboration with private sector players is a necessary and important precondition.

There is also a strong need to diversify the available sources of funding by developing domestic and regional capital and debt capital markets and boosting publicprivate partnerships (PPPs).

These markets are generally not well developed in Africa, outside of South Africa, although that is slowly changing.

Countries like Nigeria, Kenya and Ghana have recently seen substantial growth in their capital markets.

Backlogs offer opportunity

Public-Private Partnerships

While inadequate infrastructure may be the single biggest threat to Africa’s longterm growth, at the same time it also represents a significant opportunity for investors to finance physical infrastructure assets such as ports, railway lines, toll roads, power stations, hospitals and broadband ICT. With governments across the continent committing billions of dollars to infrastructure, Africa is at the start of a 20 to 30-year infrastructure development boom. There are, however, certain preconditions that private investors typically require before committing themselves to projects with the lengthy payback periods that attach to infrastructure assets.

For example, they want to be involved in projects that are high priority for governments and thus are likely to come to a conclusion. They do not want to be involved in projects where there are no clear implementation timelines or where the timelines are repeatedly moved out.

They will also focus on markets where there is a guarantee of long-term policy stability and revenue certainty and to make projects happen. On the positive side, in recent years much of Africa has experienced heightened political stability, improved governance and transparency and become increasingly open to regional and global integration.

This has attracted global investors seeking growth opportunities beyond the depressed Western markets of Europe and North America.

Governments and public authorities are increasingly turning to PPPs to deliver efficient and cost-effective infrastructure and services. PPPs can help public sector entities shorten delivery times, share risks, achieve better value for their money and increase innovation in their infrastructure rollout and provision of services.

Such partnerships allow private sector organisations to apply their skills and experience to infrastructure development and operation and mobilise finances for long-term infrastructure investments. Despite their potential, however, PPPs are highly complex policy instruments and must be fully understood and professionally implemented and managed if they are to deliver on their potential.

Above all, the political will to make decisions quickly and transparently is crucial to optimising the benefits that this process can bring. The infrastructure gap – the amount of investment required to meet core infrastructure needs – is large and growing.

On average, developing countries need to spend 5% of their gross domestic product (GDP) annually on infrastructure capital expenditures in order to sustain and expand essential public infrastructure. This constant challenge requires bold approaches and practical solutions, such as PPPs.

Funding Funding remains a key challenge. African governments have historically financed a sizeable share of the continent’s infra-

70

With its strong presence in Africa, a staff compliment of more than 5,000 people, and over a century’s experience on the continent, Deloitte seeks to further cement its involvement in infrastructure development on the continent.

Of specific relevance is the sub-Saharan Africa infrastructure advisory team, based out of Johannesburg, Nairobi, Dar es Salaam, Accra and Lagos. For more information, André Pottas can be contacted at: apottas@deloitte.co.za.

TRADE & INVEST AFRICA

59

Badger Mining & Consulting Specialises in: • • • • • •

Technical feasibility studies Project management Mining Right Applications Project/Mine financial evaluations and Project presentation and documentation Exploration program management Reserve modelling and evaluations Due Diligence appraisals Competent Persons Reports Mine planning and scheduling Mining Technical Services

Tel: +27 11 608 0527 Fax: +27 11 608 3044 Email: bridgetm@badgermining.co.za Web site: www.badgermining.co.za

Skills

TIA

Africa’s big dilemma

Rising investment exacerbates skills shortages

By Helen Bimbassis

A

s investment in Africa continues to rise, vital skills continue to drain away from the continent at an alarming rate. At the same time African countries – in partnership with private companies – need to improve their own skills development capacities.

Business and the public sectors of countries across Africa are being forced to spend about US$4 billion annually to plug the gaps in health, education, the environment and public management left behind by the 40% of the continent’s professionals who have sought employment elsewhere.

It is ironic that while the continent continues to enjoy resurgence in international investment, African countries have to compete internationally to ensure that critical skills are available to support their economies whilst simultaneously doing a “phenomenal job” of exporting their best and brightest to other countries.

International competition As African leaders battle to meet the challenges that the movement of talent internationally brings to their economies, they also have to cope with the fact that international competition for talent is working against them. There is a major demographic shift which is taking place as the “baby boomers” of the 1950’s and 60’s begin retiring.

By one estimate 50% of the top people at America’s 500 leading companies will retire over the next five years. As this scenario is repeated elsewhere, international competition for recruiting the best and the brightest is increasing, creating further opportunities for Africa’s mobile young professionals. A recent survey

examining the feelings of the African diaspora indicated that: • • • • • • •

The majority of those surveyed live in Europe and North America; 75% to 80% of them completed the majority of their schooling in Africa; Most of them had very little work experience in Africa before leaving the continent; The majority of them intend to return to Africa within seven years; Those who do not intend to return left because of political reasons and the lack of security; The majority of them have been sending money home to family; The money sent to family was mainly for consumption and personal responsibilities, and it was usually sent by hand or International Money Transfer.

Reinforcing this outlook were the findings of a paper presented at the Institute for African Studies and Slovenia Global Action (“African Migration and the Brain Drain”), in which the following statistics were provided:

•

An estimated 300,000 African professionals live and work outside the continent; Since 1990 Africa has lost 20,000 professionals each year; About 30,000 Sub-Saharan Africans holding PhDs now live outside Africa; and To fill the gap caused by this brain drain, Africa employs up to 150,000 expatriate professionals at a cost of $4-billion annually.

• • •

TRADE & INVEST AFRICA

73

On a more positive note, the growth of democratically elected governments and the improvement in political and economic governance in many countries have increased the interest of Africa’s diaspora in engaging constructively with their former homelands. Many African governments, seizing the initiative presented by this growing interest, are creating awareness of job opportunities and employment within Africa. Their efforts include: •

Enabling and facilitating private and public sector African employers and global economies with a footprint in Africa, as well as working together to boost skills inflow into key managerial and technical areas;

•

Fostering debate in Africa and internationally with the African diaspora on how to contribute to an Africawide skills strategy to change attitudes and perspectives;

•

Ensuring that governments and employers work together to make skills transfer easier, including opportunities to self-employed Africans; and

•

Addressing cultural, social and other barriers and developing best practice regarding the identification and retention of professionals from outside and enabling the labour market to become more flexible.

74

Today Africa is one of the emerging markets that most companies are exploring and are considering expanding into.

The continent presently exhibits the risks and opportunities that were common in the emerging markets of China and India during the early 1990s. Back then few global players knew how to react when these countries opened up their markets for business as it was difficult to assess how committed their governments were to creating an “investorfriendly” climate.

Those companies that invested in India and China back then – also in developing much-needed skills - are now reaping the benefits. New regimes in North Africa have yet to demonstrate their intention, while in Sub-Saharan Africa attention must be given to issues like HIV/Aids and creating an enabling business environment that will attract young African professionals seeking employment.

Jobs and skills But while retaining those skills that have been created is one side of the problem, the other side is job creation matched to a supply of sufficient skills.

In South Africa – Africa’s biggest economy and the powerhouse of the Southern African region – the single most important task today is creating jobs in order to eliminate poverty. It is central to the government’s objective of

TRADE & INVEST AFRICA

moving away from the present resourceintensive economy, which the country’s National Planning Commission says is unsustainable.

But South Africa and other African countries, like any employer, need people with the relevant training and skills to do the jobs required to develop their economies.

That there is a critical shortage of the skilled workers required for especially rural development and to lift people out of poverty is a fact. But while the challenges facing government and society are substantial, they are not insurmountable.

Among these challenges are low literacy levels - which hinder the development of agricultural and other basic vocational skills – and a shortage of the skills needed for agricultural production, food security and sustainable rural development.

These include leadership, planning and management skills; literacy and numeracy skills; negotiation and facilitation skills; technical and vocational skills in agriculture, and land and water management; basic decision-making and problem-solving; social, interpersonal and communication skills; the critical thinking that is necessary for fostering innovation and change; food preservation and processing skills; marketing skills; business, income-generating and entrepreneurial skills; and the awareness of social, political and legal institutions that are necessary for effective participation in civil society.

Education While such skills are essential for success in the modern world and should be gained through primary and secondary education, the education system in many countries has failed many youngsters, especially in rural areas.

In South Africa the National Development Plan’s objective is to attack the blight of poverty and nurture economic growth while creating a virtuous cycle of expanding opportunities and rising living standards. With a growing economy and the objective of sustaining 6% economic growth, the country needs to invest heavily in education and skills.

The country’s unemployment rate is among the highest in the world, with rural areas being heavily affected.

Policies focused on a comprehensive rural educational strategy, agrarian reform and measures to ensure food security are essential. In countries such as China and Vietnam where the state implemented such necessary reforms, better food security and a decline in poverty resulted.

While Africa needs substantial investment in respect of education and training, the above statistics on the “African Diaspora” do provide a positive note for the future.

But clearly the brain drain is not sustainable and the continent needs to attract emigrants back as contributors to Africa’s economy.

Furthermore, there must be more investment in education, substantial agrarian reform to help small-scale farmers, the creation of innovative public-private partnerships to support the green economy, building further on conservation efforts, and developing a dynamic skills and training regime that will especially help develop entrepreneurship and innovation.

Helen Bimbassis is an independent writer and consultant who previously worked for Deloitte Consulting. She can be contacted by email at hbimbassis@gmail.com or can be followed on twitter @HBimbassis.

Established in France in 1902, Weber has a proud history in the construction industry. We take pride in providing innovative solutions and services based on local knowledge and international experience.

Weber South Africa has production plants in Alrode, Middelburg, Durban and Cape Town. Our products are manufactured to exceptional standards and supported by superior technical knowledge and on-site training.

Colour Silk is a cement-based, waterproof, integrally coloured plaster formulated to be applied as a thin skim. For interior use only.

Grano Colour is a cement-based, integrally coloured granolithic product for the surface hardening of freshly placed concrete or screeds. For interior or exterior use.

Saint-Gobain Construction Products SA (Pty) Ltd 77 Ostend Road, Germiston South, Johannesburg Tel.: +27 11 345-5300 Fax: +27 11 345-5301 Sales : 0860 27 28 29 or visit www.weber-tylon.co.za

M

M

ER

ER

R E S I S TSAI SNTCAE NCE RE AL

TH

TH

AL

UE VA L UE VA L

Skills

TIA

Neighbours feel impact of SA’s troubles

By Stef Terblanche

I

n the apartheid era South Africa’s neighbours were held hostage to South Africa’s “security interests”.

The post-1994 boom period followed during which Nelson Mandela’s pull and democracy coming to Africa’s biggest economy brought unparalleled investment and development to the region. But now the countries of the Southern African Development Community (SADC) are once again feeling the impact of their giant southern neighbour’s internal troubles.

Not only has South Africa’s recent labour turmoil impacted heavily on the other SADC countries and even further afield, but the international loss of confidence in the country is also impacting negatively on many of them.

In addition South Africa’s own worsening growth prospects linked to international developments – particularly the pressures in Europe - are also having knock-on repercussions in the region, while some of its internal political developments are doing the same. These developments illustrate just how dependent these countries are on their southern neighbour.

Despite the many benefits South Africa’s economy – still the largest on the African continent – brings to its neighbours and other countries of the SADC,

the country is rapidly gaining notoriety among them because of the increasingly negative spill-over effects of its internal developments.

Labour unrest impact The labour unrest and strikes that engulfed South Africa’s mines in the latter half of the year, as well as the legal transport sector strike, impacted directly on neighbouring countries, bringing hardship to many people throughout the SADC region and harming their economies.

A case in point was how the legal strike by road freight workers in South Africa negatively affected the economies and people of landlocked and other SADC countries, most of them dependent on South Africa. These countries included Swaziland, Lesotho, Botswana, Namibia, and Mozambique and even had an impact as far away as the DRC, Malawi and Zambia.

Another example was the wave of illegal strikes on South Africa’s mines in which many migrant workers from neighbouring countries were drawn into the turmoil. As mines stopped paying the illegally striking workers it cut off the flow of much needed revenue to these countries in the form of wages sent

TRADE & INVEST AFRICA

home to the workers’ families. Not only are the families harshly affected, but many of these countries also rely heavy on revenue earned from these wages.

The transport sector strike had a crippling effect on Zimbabwe’s economy with the country at one point anticipating losing up to US$100-million a day. In Namibia the strike was severely affecting prices of goods coming from South Africa. The Botswana Department of Energy Affairs had to introduce costly special measures to ensure sufficient fuel supplies, such as providing security escorts to protect fuel tankers driving north from South Africa.

With the prospect of running out of fuel looming, Botswana increased its efforts to secure alternative fuel supplies to lessen dependency on South Africa.

Swaziland In Swaziland the Swaziland Transport and Allied Workers Union (Stawu) advised Swazi truck drivers not to travel to and from South Africa as their lives, trucks and consignments were at risk after violent South African road freight strikers had attacked Swazi truck drivers and torched their vehicles.

This meant heavy losses for the Swazi transport industry and the country

79

in general, with more than 90% of Swaziland’s imports coming from South Africa. But Swaziland’s problems caused

by South Africa do not end there.

In Swaziland spill-over pressures from developments in South Africa are compounded by growing and ongoing opposition to the much criticised rule of the country’s absolute monarch, King Mswati III. The situation in Swaziland around opposition to the monarch is intensifying.

Recently such a large majority of members of the Swaziland parliament passed a vote of no confidence in the government that King Mswati III, if he were to stick to the prescripts of the country’s constitution, would have been obliged to dismiss his entire cabinet. But this was not forthcoming and is unlikely to occur.

With Swaziland’s economy in dire straits, South Africa was among a number of recent international entities promising bailout aid on condition of economic and political reforms being implemented in the tiny kingdom. These did not occur and the World Bank, IMF and others cancelled the promised aid.

South Africa kept its options open, but is still awaiting reforms in Swaziland.

Recently, at the African National Congress’ (ANC) third International Solidarity Conference, the South African ruling party resolved to support the un-

banning of political parties in Swaziland, promising “liberation” for the country’s people. The ANC’s alliance partner, the Congress of South African Trade Unions (Cosatu) has also previously threatened to interfere in the country’s domestic political affairs.

More devastating for Swaziland – and with serious repercussions for a number of other countries in the region – are changes in South Africa’s immigration laws that could end the system of migrant workers coming to South Africa to work on the mines. Many Southern African countries are highly dependent on revenue earned in this way.

Swaziland’s Minister of Labour and Social Security, Lutfo Dlamini, recently told The Times of Swaziland that the move will “profoundly” affect Swaziland and other countries in the region. The minister said already the number of Swazis employed on South Africa’s mines had dropped from 30% to 12% of all Swazi workers, while, he claimed, a further 5,000 Swazi workers currently employed by South African mines could soon be affected.

Namibia Meanwhile, developments in South Africa have caused concerns also in Namibia whose economy, as a former administrative territory of South Africa,

is closely intertwined with that of its big southern neighbour. And some of the effects of developments in South Africa have indeed spilled over into Namibia.

But Namibia’s planned spending aimed at boosting employment and growth is expected to bolster the Namibian economy next year, thus offsetting any drag from South Africa’s struggling economy and the negative knock-on effects of political and labour developments there. Namibia’s economy is expected to grow by 4.5%...much stronger than the revised forecast for South Africa. That was trimmed down to 2.5% by South Africa’s finance minister, Pravin Gordhan, in November, while the more recent data shows that the strikes and a slowdown in consumer spending had slowed down GDP growth to a mere 1.2% in the third quarter.

Meanwhile the downgrading of the credit rating of South African banks by international credit rating agencies should theoretically also impact negatively on the local subsidiaries in neighbouring companies of these banks.

Moody’s recently downgraded the foreign deposit ratings of the five biggest banks in South Africa - the Standard Bank Group, FirstRand, Nedbank Group, Absa Group and Investec – after it had earlier cut the South African government’s bond rating to Baa1 (negative) from A3a because of the South

African government’s credit profile and “concerns about South Africa’s future political stability”.

This caused concern in Namibia over the effect on local subsidiaries of Standard Bank, FirstRand and Nedbank. None of these subsidiary banks in Namibia have independent credit ratings and their credit ratings are tied in with those of the parent banks. If they therefore wanted to borrow outside of Namibia and South Africa, the cost of borrowing would increase because of what is happening in South Africa. The same applies to other countries in the region where subsidiaries of the South African banks are active.

However, according to a report Ndangi Katoma, director of strategic communications and financial sector development at the Bank of Nambia, says this should not have much impact as the local subsidiaries in Namibia seldom actually borrow in the international market.

In another development some commentators have compared an ongoing wildcat strike by Namibian teachers belonging to the Namibia National Teachers Union (Nantu) with the illegal strike

by Lonmin miners at Marikana in South Africa. There have been suggestions that the Namibian teachers are inspired by the events in South Africa where a

settlement reached by Lonmin with the illegal strikers soon led to copycat strikes across the mining industry.

Botswana Meanwhile in its recently released Regional Economic Outlook (REO) report for Southern Africa, the International Monetary Fund (IMF) says the anticipated slowdown in the South African economy this year will also restrain growth in a number of neighbouring countries.

“For Botswana, Lesotho, Namibia and Swaziland (BLNS), spill over effects are significant, albeit less straightforward than simple intuition would suggest,” the IMF’s researchers say.

In the case of Botswana the IMF says the single biggest risk because of the South African slowdown is a reduction in Southern Africa Customs Union (SACU) revenues. This year Botswana expected to receive around R14-billion as its share of these revenues. This share is the country’s biggest single contributor to national revenues, ahead of taxes and mining royalties. But the IMF has warned that SACU members may not receive their anticipated shares as South Africa is being hit by multiple problems linked to the Eurozone crisis and domestic labour instability.

The KIMF report estimates that South Africa accounts for about 9.7% of Botswana exports annually, and is the source of nearly 80% of its imports. The IMF anticipates economic growth in Botswana of 3.8% this year and 4.1% next year.

Lesotho Lesotho’s dependence on South Africa for its survival has worsened as the country grapples with food shortages caused by abnormal weather shocks, including flash floods and drought, over the past two years. Following Lesotho’s declaration of an emergency in August, a visit to South Africa by Lesotho Prime Minister Tom Thabane last month, and a call for international assistance by the United Nations, South Africa pledged to assist Lesotho.

The full amount and details of the assistance is not known. By August Lesotho had received just US$8.4m of the required US$38.5m in foreign assistance and was banking on South Africa to make good on its promise.

Meanwhile the countries of the SADC region continue to watch their southern neighbour with an increasingly wary eye. It is never easy living in the shadow of a troubled giant.

Trade & Investment

TIA

Energy-efficiency building standards now enforced in SA Unbiased Sector Article provided by Saint Gobain

A

fter years of delay energy efficiency building standards are finally to be enforced in South Africa in respect of most new buildings and renovations.

In September last year the South African ministry of trade and industry published the new National Building Regulation XA (for Energy Usage in Buildings) in the Government Gazette. Barring a few exceptions, all new buildings and any renovations that need plans approved were to be designed to the published Energy Efficiency Standards with effect from 9 November last year.

Those exempted from the new regulation are commercial services buildings; industrial buildings and plant rooms; storage buildings and parking garages.

There are no exceptions or exclusions for any of the buildings that fall into the other occupancy categories. All houses and schools are also included under the regulation.

The regulation and its corresponding standards cover energy efficiency – not electrical efficiency. They cover the reduction of the use of energy from electricity, gas, oil, or other fuels used in buildings.

Complying regulation

with

the

new

In terms of other building regulations, there are two routes to compliance – rational design and “deemed-to-satisfy”.

However, an additional measure in the new regulation entails energy usage comparison to a reference building.

The “deemed-to satisfy” route is covered by the SANS 10400-XA standard.

Within the SANS 10400-XA, there are three routes to compliance – energy usage calculation and comparison to the values in the tables within SANS 1004-XA; follow the “recipe” outlined; and comparison of the energy usage values of the building being designed to a reference building designed using the “recipe”.

All the calculation routes need the services of a competent person. The calculation routes in SANS 10400-XA must be done using Agrement accredited Software. The design assumptions to be used in the calculation methods are given in SANS 10400-XA.

Hot water requirements The regulation requires that 50% by volume of hot water supplied to a building

must be heated by means other than the traditional electric hot water cylinders (geysers).

The methods of heating water could be solar, heat pumps and other energy efficient means. SANS 10400-XA gives guidance for calculation of hot water requirements and also, where used, the standards for solar water heaters and their installation.

The regulation does not prescribe the use of solar water heaters. These should only be installed where it is technically feasible to do so and where energy will be saved. There may be building designs where heat pumps or heat recovery makes more technical sense.

Climatic zones & values South Africa has been divided into 6 climatic zones with different needs for heating, cooling and comfort. The levels of intervention and performance for a building in Durban are very different to those of a building in Bloemfontein.

The maximum energy consumption and maximum energy demand values for some occupancy categories are listed in tables in the regulation. A competent person must demonstrate that the new building has an energy value equal or lower (better) than those in the tables.

The “recipe” steps A number of steps to be followed are covered in the “recipe” approach. These include the following: •

Orientation – optimal orientation is suggested as it would be difficult to make it mandatory;

•

S hading – in accordance with the requirements in SANS 204;

•

E xternal Walling – this is divided into masonry and non-masonry walling with different energy performance parameters. Certain constructions of masonry walling are “deemed-tosatisfy”; and

•

F enestration – Buildings with up to 15% fenestration area to net floor area per storey are “deemed-to-satisfy”. If the fenestration area exceeds 15%, the buildings must then comply with the requirements in SANS 204. There is a table in SANS 204 with maximum values for Conductance and Solar Heat Gain for fenestration.

An arithmetic calculation method is provided for demonstrating the total Conductance and Solar Heat Gain of the new building.

The regulation does not require installation of double glazing.

Roof, flooring & services Energy performance parameters (Total Rvalues) for the roofing/ceiling assembly in the different climatic zones are listed in a table. R-value stands for thermal resistance, which is a property of a material/ product.

Total R-values are obtained by adding the R-values of the individual components of the structure. Tables are given for Metal Roof and Clay Tile Roof structures with the R-values given for each component – including the R-value required for the insulation intervention.

To know what the R-value of the insulation is, the insulation manufacturer will have to supply a laboratory tested thermal result and will demonstrate that the thickness of insulation supplied complies with the intervention requirement.”

In respect of flooring, if in-slab heating is installed, the heating system must be insulated underneath the slab.

Services (excluding hot water) that use energy or control the use of energy, including heating, air conditioning and mechanical ventilation must be in accordance with the requirements of SANS 204.

Demonstrating compliance If any of the calculation routes are followed, the competent person must demonstrate that the energy usage complies with the route followed. On the plans, it must be shown, where provided, the location, type & capacity of water heating installations and, where provided, the details of the fenestration and insulation.

Two energy standards Many people may wonder why there are two energy standard, SANS 10400-XA and SANS 204.

SANS 204 is slightly more stringent and has higher masonry walling requirements. SANS 10400-XA is South Africa’s “starter” minimum standard for energy efficiency.

If only SANS 204 were enforced, it would put some of the building industry players at risk as their products could not meet the energy performance requirements. It also requires the use of some building methodologies that are not used nationally and therefore the skills required for those methodologies are lacking.

An example is buildings that are built with cavity brick walls in the coastal

areas. This is not common inland. SANS 204 would require a cavity brick wall with insulation in the cavity for some occupancy categories in the inland region.

The brick layers in this region are not skilled in this.

SANS 204 is the goal of South African Energy Efficiency minimum standards in a few years. Currently it stands as a voluntary standard, showing the building industry where we are going to. It will be encouraged to design to SANS 204 levels.

Implications for SA building ndustry The capital costs of buildings are going to increase slightly, but the energy supply will be more secure. The cost of the new buildings will have to be weighed against the cost of not having energy supply.

Where the building is to be occupied by the owner of that building, the owner can reap the reward of the energy savings. With tenants it is of course and not the owner who reap the rewards of the lower energy costs. On the other hand, a low energy usage building will be much more attractive to tenants.

Energy saving No major immediate energy saving is likely as the extent of energy saving generated by the implementation of this regulation will be limited to the number of new buildings and renovations done from 9 November 2011 onwards.

A bigger energy saving will be realised in the retrofit of existing buildings into energy efficiency. With the further increases of energy prices on the horison, the implementation of “Green Leases” and the possibilities of incentives, this may become a profitable possibility.

This article was written by Lisa Reynolds and supplied by Saint-Gobain South Africa.

Advertorial

TIA

Smartphones know no boundaries

B

eing connected to the rest of the world, no matter where you are on earth is a powerful notion. With true globalisation a part of everyday life, people have quickly become accustomed to the way it has enhanced their lives.

We are able to speak to virtually anyone on the planet by simply typing the correct combination of numbers while any bit of information you seek is merely a Google search away.

There are very few people who would sacrifice their “digital companion” and rightfully so, as there is great comfort in the ability to always be in contact with the people that matter the most to a person. It has also revolutionised business, from keeping the sales force connected, to accepting payments for services using mobile payment systems such as Square (https://squareup.com/).

Smartphones have changed the way people communicate forever.

Africa has seen a particularly sharp rise in the uptake of mobile phones, although a majority of these are feature phones (phones that offer a fixed set of limited functions). Africa is now the fastest growing mobile market in the world. According to a study done by industry body GSMA1, Africa will be home to around 738 million handsets by the end of 2012.

The report also shows that as of September 2011, Africa had over 620 million mobile connections and has overtaken Latin America to become the second biggest mobile market in the world, after Asia. Technical research company Ovum (www.ovum.com) also released a report earlier this year indicating that the next billion mobile connections will mainly come from rural areas in emerging markets.

This growth in Africa is largely due to the quick expansion of networks and on-going network upgrades throughout the continent. User demand is also at an all-time high and the barrier to entry is becoming less and less. Africa is also finding itself in the remarkable position to be able to leapfrog technologies that are used in more mature markets. With newer and cheaper technology driving digital communications, Africa truly has the best of both worlds.

While consumer uptake on the continent is exploding, businesses have also caught on to the idea of a smarter and better-connected work force.

As cloud computing shifts business intelligence online the smartphone has already proven itself a worthy asset.

Vertical industries ready for the uptake The next step is to develop hardware capable of withstanding some of the harsh conditions in which people want to use theirr smart devices at work or at play.

Vertical industries in particular, such as security,

mining, and agriculture, provide excellent case studies for the use of smart devices on-site. There is a definite need for internet connected devices in these industries but to-date there has not been many viable solutions for their requirements. A handful of manufacturers have developed phones for tough environments over the last few years but it can be argued that the timing was simply not right for vertical industries to adopt a technology that was not quite mature.

Today things are very different with mobile apps and mobile websites are fast becoming the most popular means of media consumption.

Although Apple is a key driving force behind many of the technology trends, Google’s Android operating system has made the concept truly universal and any mobile manufacturer can easily make use of this operating system to build products on.

This universal adoption is making Android one of the most widely used mobile operating systems available today. It has also spawned an entire sub culture of developers and hardware engineers trying to push the boundaries of what Android is capable of doing.

The range of hardware costs, open platform features, and industry wide support has meant that businesses looking for a platform to develop on are also very happy with the Android offering.

It can certainly be argued that Android fragmentation is an issue for app developers but it is a relatively minor problem when considering the reach and benefits of a truly open mobile operating system such as Android.

For the vertical industries described earlier, Android has opened up a new whole world of communication, workflow, and business capabilities. This is largely thanks to the work of a few smartphone manufacturers who are building hardware to withstand the toughest conditions known to man.

Ruggedized smartphones today offer complete protection from water and dust while maintaining full touch-screen capability and the same feature set as one expect to find on high-end consumer smartphones. This includes access to an app store, GPS Receiver, Bluetooth, Digital Camera, and in most cases a built-in radio.

Even though accessory manufacturers have long been developing ruggedized casings for most smartphones currently on the market, these protective covers, protect nothing more than your smartphone’s outer shell. To be truly rugged, a smartphone needs to adhere to industry standard certifications.

There are two major certification ratings which determine how tough a product is and these determine if a design adheres to the harsh conditions under which it is expected to perform.

The first rating system is called the Ingress Protec-

TRADE & INVEST AFRICA

tion Rating and is a classification system showing the degrees of protection from solid objects and liquids. The IP Code emphasises environmental design limitations that the smartphone will experience throughout its service life.

Another very popular classification rating employed by products designed for tough environments is the United States defence standard, often called a military standard, “MIL-STD”, “MIL-SPEC”, or (informally) “MilSpecs”, it uses test methods that replicate the effects of environments on the equipment rather than imitating the environments themselves. This rating system is used by the U.S. Department of Defence and other non-government organisations, and technical organisations.

With ruggedized smartphones ready for industry and leisure, app developers are able to sink their teeth into app development for niche industries. The world is already seeing a myriad of apps for joggers, cyclists, and hikers that provide them with navigation and tracking information.

Most of the ground-breaking applications for rugged smartphones today are custom developed applications for specific industry purposes. These range from internal messaging systems, PTT (Push To Talk) networks, internal document archives, or more interestingly, GPS linked check points for security and remote device activation for audio and video monitoring.

Consumers who enjoy an active outdoor lifestyle have also shown interest in a ruggedized device that can be used as either a primary or secondary phone. Casual sports that require one to wear a helmet or hobbies that may get you wet are perfect examples of past times that see you leave your smartphone at home. A ruggedized smartphone keeps you connected under any outdoor condition.

Only the beginning We have just breached the cusp of what is possible in vertical industries where function-specific app development combined with ruggedized hardware produce a sub-set of business functionality that improves business efficiency and worker productivity. It also adds value to past-times that we enjoy by keeping us connected anywhere life takes us.

Tough working environments will certainly be the driving force behind the development of ruggedized smartphones and tablets but we will see an uptake of these devices in consumer markets where the realities of life dictate that tougher technology is needed.

•

T his article was supplied by RuggedPhones.co.za

85

Advertorial

TIA

Educor Africa Supplied by Educor

The need for private education institutions in West Africa has grown over the last 15 years as the total number of students seeking tertiary education has quadrupled, while public resources allocated to expenditure on tertiary education has only doubled. In light of this private education provider, Educor Africa, will be expanding across West Africa to place its brands at the forefront of the higher and further education sector here.

T

he initiative will be spearheaded by Educor Chief Executive Officer, Julian Kannigan, and will see brands with a combined legacy of over 200 years taken across West Africa in service of emerging employment sectors.

In order for South African education brands to succeed in diverse markets, these brands will have to be evolved with African insights to appeal to students across the African continent whilst delivering to a global standard. In view of this Julian Kannigan has spent a month in Lagos, Nigeria ensuring that the regulatory framework has been met prior to launching the venture. He also identified prospective premises for the brands.

The Educor Africa initiative has been well supported by government and has become a part of the Nigerian South African Chamber of Commerce. It has been encouraged to apply for a university licence. Upon his arrival Kannigan was received by Nigerian Minister of Tourism, Culture and National Orientation, the Honorable Edem Duke, in his chambers in Abuja to discuss the possible opening of a multimedia school run by Damelin in response to the rapidly expanding Nollywood film industry in Nigeria.

Nollywood is the country’s booming film industry and is the world’s third largest producer of feature films. In just 13 years Nollywood has grown into a R2.5 billion per year industry that employs thousands of people. Currently some The old bulky videotape cameras have given way to their digital descendants used these days. Editing, addition of music scores and other postproduction work is done with computer-

TRADE & INVEST AFRICA

based systems. This creates a demand for training and courses on the use of technical equipment and software needed for Nollywood film production, which opens doors for private education institutions that offer courses and training of this kind.

Many factors have led to this expansion into West Africa, such as the steadily growing ‘middle class’ in West Africa. Research shows that 40% of the African population is classified as middle Living Standards Measure (LSM), with a disposable income to fund tertiary education fees. Other contributing factors include the increase in Africa’s mobile communications subscription, which reflects development in technological infrastructure .

Over the years governments of West African countries have made various overtures to South African private education providers to encourage cross border expansion. This took place in view of the growing market for higher and further education and the current limitations of public education. There is particular interest in those brands which are leaders in the South African private education sector and which have impressive legacies, such as that of INTEC which has existed for over 100 years and Damelin, which is over 65 years old.

Educor Africa graduates are indicative of the Group’s mission to lead and inspire quality private education and training throughout Southern Africa and the African continent.

The Group’s approach to quality combines the concept of team commitment and a strong focus on each student, and is deeply entrenched in its core values.

85

The calibre of their alumni across each brand stand as a testament to the value offered to graduates with each qualification, enhancing their marketability and employability.

The public perception of higher and further education in West African countries has shifted and is no longer viewed as an expensive service that largely benefitted the wealthy and privileged. Today higher and further education is recognised as an instrument for productivity, competitiveness and economic growth in West Africa.

In this light former UN Secretary General Kofi Annan recently spoke about the importance of higher and further education in Africa, saying “the university must become a primary tool for Africa’s development in the new century”.

“Universities can help develop African expertise; they can enhance the analysis of African problems; strengthen domestic institutions; serve as a model environment for the practice of good governance, conflict resolution and respect for human rights, and enable African academics to play an active part in the global community of scholars”.

Julian Kannigan recently went on CNBC Africa’s ‘Beyond Markets Show’ to discuss the details of the venture. He described the challenges posed to the venture and noted: “Certainly when going into countries such as Nigeria, we are faced with infrastructure and security issues but as an entrepreneurial organisation, where others see challenges, we see opportunities. We are definitely going into this with our eyes wide open”.

The business model for the venture

88

will opt for a local West African staff contingent that will be trained either locally or in South Africa. This will contribute to both the local economy and local community development, as well as alleviate current unemployment rates in local areas. This will also allow the up skilling of people across West Africa by sourcing and training suitable individuals, which will in turn boost employment statistics and develop local economies.

With decades of experience and a legacy of professionalism to their credit, South African education institutions across the private sector are being welcomed to place their flags in West Africa. Ventures such as that of Educor Africa will assist in improving education standards within the private education sector. They will change lives by increasing the number of people who have access to accredited higher and further qualification, which will in turn allow for a secure and prosperous future.

Economies on the African continent are growing consistently faster than any other in the world and labour productivity is on the rise. As a result foreign debts and budget deficits are becoming issues of the past.

This is your opportunity to capitalise upon the upliftment of the continent and invest in an initiative that will help groom our leaders of tomorrow and ensure the future growth of the African economy.

We’d like to know you and provide you with all the vital information that you require. Please send your details to info@ educorafrica.com and we will send you an information pack.

TRADE & INVEST AFRICA

Built-in sound control

With Gyproc’s new high performance GypWall SoundBloc, you can create a world where patients heal and doctors can hear themselves think. A world where kids can learn and teachers can teach. A world where business travellers are guaranteed a good night’s sleep and holiday goers can go on partying till dawn. Sounds good, doesn’t it.

1851 SoundBloc | It’s a Go

0860 27 28 29 www.gyproc.co.za

COMPANY PROFILE

Advertorial

TIA

The Coega Development Corporation T

he Coega Development Corporation (CDC) is a state owned entity formed in 1999 and mandated to develop and operate the Coega Industrial Development Zone (IDZ) in Port Elizabeth.

The IDZ is located adjacent to the modern deep water port facility, the Port of Ngqura, developed and owned by Transnet National Ports Authority. The 11,000 hectare Coega development is the leading IDZ in Southern Africa. Through investment promotion, the CDC attracts investors from all over the world – much of it Foreign Direct Investment - in different business sectors.

The CDC currently focuses on the following sectors: Automotive, Renewable Energy, Agro Processing, Business Process Outsourcing, Construction and Building Material, Chemicals, and Logistics. The corporation also has a Container Depot.

The CDC is gradually increasing its footprint in South Africa as a centralised service provider to various stakeholders following a strategic review of its mandate two years ago. The result of this move has been a fundamental reframing of the organisation from an Industrial Development Company simply focusing on the Coega Industrial Development Zone (IDZ), to a services group that undertakes industrial development at the Coega IDZ and the Nelson Mandela Bay Logistics Park (NMBLP) in Uitenhage, and which now provides programme management services to all spheres of government as well as management consulting services to the public sector as a whole, including state-owned enterprises.

Through its offices in East London and

KwaZulu-Natal the CDC is able to leverage existing capabilities within the organisation to provide infrastructure development and advisory services, and outsourcing services and solutions to government and business around the country.

The CDC works in partnership with national, provincial and local government to implement projects. For example, it shares its expertise with the Department of Roads & Public Works for the building of provincial roads in the Eastern Cape. Coega’s tutelage support is also shared with the Department of Health for the building and improving of hospitals; and the Department of Education for the building of schools in KwaZulu-Natal.

To date, Coega has secured 21 investors and has attracted investments to the value of R140-billion. There are other key strategic projects in the pipeline which includes the Petrosa Oil Refinery, Power Station, 2xFeMn Smelters, and Combined Cycle Gas Turbine Project (CCGT).

The CDC has reached many employment milestones this year, including creating in excess of 30,000 jobs to date. The Agro Processing sector in particular is a large contributor to indirect and induced employment in rural areas. The CDC has a rich empowerment history which ranges from grassroots empowerment of communities in the surrounding areas to partnerships with major South African corporations and with government. It has strongly positioned itself as a key skills developer and major job creator in the Eastern Cape with a specific focus on job creation among the youth in the province.

An example of one of the key drivers

TRADE & INVEST AFRICA

of this development is the Coega Corporate Travel Initiative. As one of many skills development initiatives of the CDC, the main objective is to improve the chances of employment for young black graduates by giving them travel industry experience over a period of 18 months. This internship is closely managed by the CDC’s Human Resources division. The initiative is fully BBBEE (broad-based black economic empowerment) compliant.

Coega has recently implemented a driver-training outreach programme which is a high-tech driving simulator.

The programme aims to help graduates and the unemployed youth in the province become employable by giving them the necessary skills and training to enable them to acquire a driver’s license. The programme has three main focus areas in the Eastern Cape, namely Nelson Mandela Bay, East London and Mthatha.

The Coega Development Corporation is the joy and pride of the Eastern Cape Province and a catalyst for socio-economic development.

91

COMPANY PROFILE

Richards Bay Minerals R

ichards Bay Minerals (RBM) is a joint venture between Rio Tinto, BHP Billiton, Blue Horizon Investments (B-BBEE) and RBM employees, and is a leading producer of titanium minerals, high purity iron and zircon.

RBM mines and processes heavy minerals found in the coastal sands of northern KwaZulu-Natal. Among the products supplied by RBM are titania slag, high purity pig iron, rutile and zircon. The company is proud of its safety standards and has a NOSA 5 star rating, Noscar from NOSA, ISO9001, 9002 and ISO 14001 accreditation.

Making a difference Under the leadership of RBM’s Managing Director, Dr Elaine Dorward-King, it is the company’s Vision to make a difference in our world by creating a brighter future.

The company is a major economic contributor to the region and employs 1,800 permanent staff and up to 2,200 contractors at any given time.

Established in 1976, RBM has since implemented sound corporate social development programmes and an awardwinning environmental rehabilitation programme, based on Rio Tinto’s standards, which restores mined dunes back to their natural state after mining.

Sustainable development RBM is committed to the sustainable custodianship of the environmental, social and economic capital within our sphere of influence in pursuit of our vision of becoming the world’s leading mineral sands processor.

This is achieved by working in partnership with a wide array of stakeholders including shareholders, employees, customers, suppliers, surrounding urban and rural communities, local tribal authorities, local and national chambers of business, special interest groups, political leaders, academic institutions, the media and local, provincial and national government departments. The company has stated as its Mission that it strives to be the safest, most reliable and sustainable Industrial Minerals supplier to the benefit of all our stakeholders. Therefore, at RBM we believe that our business is defined by the interactions we have with our stakeholders and we believe that

long-term relationships based on trust and mutual benefit as well as acting with integrity and responsibility are the key to our business success.

Sustainable outcomes are driven by the need for the consistent supply of our products to world markets. As a global corporate it is imperative that we communicate the need to balance economic performance with environmental and social performance imperatives.

Social investment The company’s corporate social investment programme encompasses education, health care, agricultural development, economic empowerment and community safety. The programme is improving the quality of education, preventing illness and promoting better health, facilitating skills transference and capacity building, providing employment in an area characterised by high unemployment.

It empowers rural people, especially women who are usually at the bottom of the economic scale, to improve the quality of their lives and livelihoods and so become more self-sufficient.

Economic contribution RBM contributes about 3.5% of the Gross Geographic Product of KwaZulu-Natal; and 18% of the GGP of the north-east region of KwaZulu-Natal. The company employs more than 1,800 permanent employees, 78% of which are historically disadvantaged South Africans.

Social impact Our vision extends beyond the fostering of a motivated and skilled workforce into the wider community where, for the past three and a half decades, we have been working in partnership with our surrounding communities on a comprehensive sustainable development programme.

This programme encompasses four filters: corporate governance, economic development, care for the environment and social issues.RBM host communities became shareholders in 2009, this saw them owning 10.8% of the business. This includes both the Mining and Smelting operations. Each community holds its equity directly in Blue Horison and has one

TRADE & INVEST AFRICA

Advertorial

TIA

Board seat into Blue Horison which is the Holding company for our new shareholders. One community member sits on the RBM Board, namely Mr. Bongukuphiwa Mthethwa from the Sokhulu community.

Community shares are held through a special purpose Development Trust which distributes benefits to the Public Benefit Organisation Trust and other community investment initiates. To empower the Trustees to run and manage these new institutions, the Institute of Directors conducted Corporate Governance training which was extended to the Traditional Councils to whom the Trusts are accountable.

To date, each community received R20.8-million which includes an initial endowment of R17.5-million and trickle dividends. The communities have spent these funds to kick start their immediate development needs in agriculture, education, business development, and infrastructure.

Another milestone in supporting the development and betterment of local communities was reached recently when RBM opened administrative offices in the Richards Bay CBD for the public benefit trusts of its host communities. This initiative was agreed as part of the company’s B-BBEE transaction where RBM committed to giving capacity, guidance and mentoring for the work of the PBO trusts.

RBM will pay for the office rental and will employ a full-time office administrator to help the communities accomplish their development work through the trust funds. This initiative attests to RBM’s long established commitment to co-existence with and empowerment of host communities.

Contact Details for RBM are: P.O. Box 401, Richards Bay, 3900 Tel: +27 (0)35 901 3111 Fax: +27 (0)35 901 3442 E-mail: info@rbm.co.za Website: http://www.rbm.co.za

93

COMPANY PROFILE

Advertorial

TIA

Rugged Phones.com R

uggedPhones.co.za specialises in rugged smart devices that can handle tough environments and extreme weather conditions. Launched in 2012, RuggedPhones.co.za offer specialised smart devices aimed at both vertical and consumer industries requiring tough devices to keep in touch and connected to the world.

The first product launched in South Africa was the Titan Rugged smartphone, an Android based smartphone that is both IP-67 certified and approved by the US Military Standards specification. Future product releases include ruggedized tablet devices that will provide another layer of technology for industries that require larger screens for custom or commercial applications.

RuggedPhones.co.za has collaborated with carefully selected manufacturers to ensure hardware reliability and impressive product support. All RuggedPhones. co.za hardware comes with a swop-out warranty if the fault is manufacture-related that offers full product support and set up assistance. The ruggedized devices sold byRuggedPhones.co.za are built in conjunction with its international manufacturers to ensure each device not only meets international standards but are also developed to meet the needs of the unique South African market. One example of this is the lower cost to entry compared to other rugged devices currently available.

Google has already indicated that the next wave in mobile computing based on their Android platform will be ruggedized devices. Ruggedphones.co.za develops, manufactures and delivers smart solutions for tough environments on the African content.

With over 15 years’ experience in telecommunications, development and service, RuggedPhones.co.za has a dedicated team of professionals who have worked on some of the biggest mobile phone brands in the world. Furthermore, RuggedPhones.co.za is uniquely positioned to offer customised hardware and software development for any rugged application or terrain requirements.

All ruggedized hardware is available from www.ruggedphones.co.za as well as Nashua Mobile and Autopage Cellular. For more information call us on (011) 460-8000.

TRADE & INVEST AFRICA

95

Sanctuary Retreats

p m a C s e n i a B y r a u t Sanc S

Inspirational Places

et in a grove of trees, and surrounded by papyrus beds, this low environmental impact camp has been built using commercially grown wood and recycled tin cans. The local community in Maun were invited to collect as many cans as they could, and paid a fee for every can collected. These cans were then incorporated into the camp buildings, forming the backbone of the structures. There is a communal swimming pool, and the wide wooden deck that surrounds the main dining and sitting room is the ideal place to relax while observing the varied wildlife present here. See prowling lions looking for prey at the edge of the lagoon that the camp overlooks, or watch one of the many elephants who live in the area.

The five tented suites at Sanctuary Baines’ are opulent and luxurious, with adjoining outdoor bathrooms and four-poster beds swathed in mosquito netting. Traditional safari ceiling fans create a cooling breeze at even the hottest times of the year. Should you wish, your bed can be wheeled out onto the private wooden deck for a night under the stars, overlooking the shimmering waters of the Boro River where hippo can often be spotted.

Guests have the opportunity to see animals up close when expert guides accompany them on morning and evening game drives in open 4 x 4 vehicles. A night game drive is the perfect means to see some of the nocturnal animals one wouldn’t see during the day time. The park also boasts a diversity of landscape with desert, dry savannah, lagoon and swamps in close proximity – cheetah, crocodile and elephant can also be seen on a game drive. Activities included from Sanctuary Baines camp are morning and evening game drives, walking safaris, mokoro and motorized boating excursions.

Another extraordinary treat available at Sanctuary Baines’ Camp is the opportunity to go walking in the bush with three semi-habituated elephants. Jabu, Thembi and Morula are elephants that were orphaned nearby and adopted by Doug and Sandi Groves. The elephants ‘take’ guests on long walks, foraging in the area in absolute safety. They show travellers how they look for food, strip leaves from branches with their long trunks and take showers in the lagoons of the delta. What better guide to the African bush than a fully-grown African elephant? Even Sanctuary’s famously brilliant guides bow to these elephants’ innate knowledge and bush-sense. This activity includes a leisurely paced walk with a trio of semi-habituated elephants, observing and interacting with them, and a picnic lunch in their company. (additional cost) Booking Enquiries: southernafrica@sanctuaryretreats.com Website: www.sanctuaryretreats.com

Blue Train ow d in W A … in a r T e lu B The th Africa to the Soul of Sou

T

he charm and elegance of the world-famous Blue Train has been synonymous with luxury hospitality, tourism and leisure on rail since 1946. It offers a unique way of experiencing some of southern Africa’s magnificent landscapes and landmarks, travelling in the lap of luxury and pampered with excellent service.

On board the train guests indulge in fine cuisine accompanied by some of the best wines South Africa, if not the world, has to offer; five-star accommodation and around the-clock personal butlers that see to the guests’ every need and ensure pampering of the highest order for the duration of their trip.

This iconic five-star “hotel on wheels” also offers a unique way for your clients to enjoy a memorable event; be it for clients’ incentives, strategic conference meetings, product launches, VIP breakfasts, lunches, dinner and cocktail parties, weddings and more. You can also book a charter with a difference, such as a golfing or safari charter. These will take you through the unique beauty of the South African landscapes and landmarks, from the “Valley of the Elephants” along the Kruger National Park, to other superb attractions or to some premier annual sporting or entertainment events across South Africa, amongst many others.

Take a journey into a timeless world of grace, elegance and romance, where spectacular scenery stirs your imagination and luxurious comfort soothes your mind, body and soul.

For more information & bookings: Internet: http://www.bluetrain.co.za E-mail: info@bluetrain.co.za Pretoria: Tel: +27 (0)12 334-8459 Cape Town: Tel: +27 (0)21 449-2672 Fax: +27 (0)12 334-8464sz

Ngwenya Glass Swaziland’s HOTTTouEriSst Tattraction!

N

gwenya Glass was set up in 1979 by a Swedish Aid Project on the slopes of the Ngwenya (crocodile) Mountain in Swaziland. Local Swazi’s were employed and trained in the age-old art of glass blowing and benefited from the custom-designed imported machinery and equipment.

After the factory was forced to close in 1985 as no further funding was available, the Prettejohn family from the Eastern Cape in South Africa - avid collectors of the glass elephants produced by Ngwenya - decided to buy it out of liquidation so that they could continue to grow their collection! After fixing the machinery and building a new furnace, and with four employees, including Sibusiso Mhlanga, now a master glassblower trained by the Swedes Ngwenya Glass was back in production by August 1987.

Today Ngwenya Glass is run by husband and wife team Chas & Cathy Prettejohn, employs over 60 people, and Sibusiso, who has visited Sweden several times, now tutors the new apprentices. The business has a strong environmental focus and all the products, which include a wide range of table ware, drinking glasses, vases, jugs, ornamental African animals are hand made from 100 % recycled glass. Saving the most precious resource, water, the factory only uses use grey water and water from rainwater catchments. Waste newspaper is used for packaging and no extra boxes are used in an effort to decrease Ngwenya’s carbon footprint. Materials such as bubble wrap are used sparingly.

Ngwenya Glass has also started a tree-planting programme, engages with schools in environmental clean-up days, gives a percentage of its worldwide sales to Mkhaya Game Reserve, a refuge for endangered species and established the Rhino & Elephant Wildlife fund. The company also engages with the local community in a number of programmes and activities.

Ngwenya Glass is a popular local and tourist attraction located within a complex set in large indigenous gardens. On a visit to the factory it is possible to view the magical art of glass blowing, explore the craft centre with its selection of shops all displaying locally made products and more.

For more information: Telephone & Fax: +268 – 244 24053 / 244 24142 / 244 24151 / 244 24588 Fax from SA only: 086 5305 452 Email: ngwenya@ngwenyaglass.co.sz Website: www.ngwenyaglass.co.sz

Mhondoro

Norotshama River Resort

a i b i m N o t n y o a i L Gatew Spirit of the

M

hondoro Lodge is situated in the Welgevonden Private Game Reserve. The reserve consists of 37,000 hectares of unspoiled African bushveld ranging from rocky outcrops where the leopards watch from their hidden crevices, to wide open savannah where the herds of zebra, wildebeest and impala abound.

The reserve houses various species including the Big 5 and cheetah and is entirely malaria-free. Founded in 1993 and part of the larger United Waterberg Biosphere, it represents one of the largest private conservation investments in the world.

Four luxuriously appointed private chalets are located along the ridge overlooking the waterhole and adjacent plains with the Waterberg Mountains in the distance. A maximum of 10 guests may stay at the game lodge, ensuring personal attention and care from your hosts.

The en-suite bathrooms have a choice of indoor shower, giant bath or a secluded outdoor hot-water shower.

The Presidential Villa has two separate double rooms, both with bathrooms en-suite and outdoor showers, linked by a central lounge with a fire place. The large viewing sundeck has a private Jacuzzi. Enjoy a full English breakfast after an early morning game drive or, by special arrangement, our special Bush Breakfasts in the wild. Afternoon tea is followed by an afternoon game drive, before three course dinners are served. These range from deliciously prepared plated meals to a more traditional braai on the open fire in our starlit boma.

Bush walks and hiking excursions with fully qualified rangers are offered. These vary according to the weather, time of year and the wishes of guests. Apart from the larger animals guests may also see the “Little Five”- Elephant Shrew, Leopard Tortoise, Rhino Beetle, Buffalo Weaver and Ant Lion. The rangers are extremely knowledgeable about the bush and will have guests absorbed in the wonders of this magical eco- system.

At Mhondoro visitors can also view some of the only surviving rock art from the indigenous San people who lived in the Waterberg region.

For more information & bookings: Tel: 086 110 6648 E-mail: res@mhondoro.com / info@mhondoro.com Web: www.mhondoro.com

N

orotshama River Resort is ideally situated on the banks of the Orange River. A gateway to Southern Namibia’s wealth of breathtaking natural landscapes, Norotshama is nestled in the heart of the Aussenkehr Grape Valley, home to the largest export table grape farms in the Southern Hemisphere. Our guests, pampered from the moment they arrive, can enjoy traditional southern Namibian hospitality, luxury accommodation and a host of exiting activities.

Guests can stay in one of 30 luxury air-conditioned suites of which 10 were recently completed for the exclusive use of our international tour operators; 4 luxurious tented thatched chalets; 2 stone constructed self-catering units; 4 thatched family chalets; or 10 river edge chalets. All units are stylishly decorated and are equipped with air conditioning, a bar fridge, microwave oven and a safe.

There are also camping sites equipped with individual barbeques, electricity and ablution facilities.

The resort boasts top-class facilities such as its renowned a la carte restaurant, as well as barbeque facilities, swimming pool, outdoor dinner venues, wireless internet connectivity and even a landing strip for light aircraft. A number of exciting activities are offered, such as river rafting and canoeing on the Orange River; excursions into the Aussenkehr Nature Park which boasts fabulous hiking, mountain biking and 4x4 routes; guided tours of the canyons and unusual geological formations; viewing the legendary Namib desert horses; visiting German military relics and a graveyard; a cultural village tour; sport rick climbing; and many other activities.

Norotshama and the Assenkehr Nature Park are dedicated to the conservation of the delicate ecological balance of this fragile desert landscape. Norotshama has adopted a large number of green practices in this regard. The nearby rural community also gain employment and other benefits from our grape production and tourism while there are extensive training programmes for the local community members to acquire new and varied skills.

For more information; http://www.norotshamaresort.com; Tel: +264 (0) 63 297215; Email: norotshama@africaonline.com.na

Courtesy of of the the Foreign Foreign & Courtesy Commonwealth Office in in the the Commonwealth Office UK, each issue of TIA UK, TIA brings brings you concise concise and and succinct succinct you Sub-Saharan Sub - SaharanAfrican Africancountry country profiles. country, we profiles. For For each each country, we give and figures figures give headline headline facts facts and about about the the population, population,capital capital city, city, currency currency and and so so on. on. Then Then we briefly outline the economic we briefly outline the economic trends, trends, and andthe thecountry’s country’s commercial commercial trading trading partners partnersand and foreign relations.

We feature the foreign relations. We feature the following countries in following countries in this this issue issue: Angola Angola Botswana Botswana Ghana Lesotho Kenya Malawi Lesotho Mozambique Malawi Namibia Mozambique South Africa Namibia Swaziland Nigeria Zambia South Africa Swaziland Tanzania Uganda Zambia Zimbabwe

Country Africa Country OOVERVIEW V E RV I EW

Angola

Republic of Angola Angola is located along the South Atlantic coastline (West Africa) and shares borders with the Democratic Republic of Congo in the north and northeast, Zambia in the southeast and Namibia in the south. An arid coastal belt extends from Namibia to Luanda, the capital; the southern interior is characterised by dry savannah; and the northern regions are covered in tropical rainforest. The interior highlands have a high annual rainfall and excellent agricultural conditions.

The cold Benguela Current produces a temperate climate along the narrow coastal strip, but during the rainy season (November to April) high temperatures and humidity occur. The altitude of the interior highlands has a similar regulatory effect on the climate and overnight temperatures can fall below freezing during the dry season. The tropical climate of the north is characterised by a greater difference in temperature between day and night than between summer and winter and enjoys rain all year round.

The Angolan population is made up of several Bantu-speaking ethnic groups (97%), a small white population of ,mainly Portuguese descent (1%), and a slightly larger mixed racial pool (2%). Angola was settled by Portuguese from the 16th century onwards, but effectively became a Portuguese colony on the Berlin Conference terms only in the 1920s. Today Portuguese is both the predominant and official language.

Following a left wing military coup in Portugal in 1974, independence was handed to Angola in 1975 with three liberation movements, the Popular Movement for the Liberation of Angola (MPLA), the National Union for the Total Independence of Angola (UNITA), and the National Liberation Front of Angola (FNLA) agreeing to share power. Within months civil war broke out and the MPLA, led by Agostinho Neto and backed by Cuban and the Soviet Union, seized control of most of the country. A South African military expedition invaded the country, joined up with

102

UNITA and the FNLA, and after nearly seizing the capital, Luanda, withdrew due to international political developments.

The civil war, in which an estimated 1.5-million Angolans lost their lives, continued until UNITA leader Jonas Savimbi was killed by MPLA forces in 2002. This finally firmly secured power for President Eduardo dos Santos who had in the meantime succeeded Neto.

Dos Santos organised legislative elections in 2008 and promised presidential elections the following year. However, he soon enacted a new constitution and thereby managed to postpone the elections until August 2012.

Subsistence agriculture remains the primary economic activity of most Angolans. The post-war commercial agriculture sector has steadily been improving with the resettlement of previously abandoned areas. With the Portuguese having settled mostly in the coastal regions, much of the interior of Angola was undeveloped prior to the civil war and most of the existing infrastructure was damaged during its course. The government managed to secure several billion-dollar credit lines from European and other countries to rebuild the infrastructure networks, sparking a construction boom.

The economy has generally experienced very high annual growth rates (averaging upwards of 17% from 2004 to 2008) due to the country’s extensive oil reserves and increasing international demand. In 2006 Angola became a member of OPEC and its production quota was set at 1.65-million barrels of oil per day. Oil extraction contributes roughly 85% of the GDP when supporting sectors are included. The onset of the global economic recession in 2008, which decreased international demand for oil and diamonds (Angola’s other major commodity), caused a substantial reduction in growth rates and a budget deficit in 2009. However, the subsequent recovery of oil prices yielded a surplus in 2010 and conditions continue to improve.

TRADE & INVEST AFRICA

Country Overview

General Location: Southern Africa, bordering the South Atlantic Ocean, between Namibia and DRC. Capital: Luanda Languages: Portuguese (official); Kikongo; Chokwe; Umbundu; Kimbundu; Ganguela; Kwanyama.

Time Zone: GMT + 1 Main Airport: Quatro de Fevereiro International Airport, Luanda.

International Dialling Code: +244 Communications: Poor state-owned fixed-line telecommunications until 2005, but vastly improved since private operators – now totalling 5 – were introduced. Good cellular service providers (state-owned and private) with networks covering most large towns.

Currency: Kwanza.

Credit Cards & Travellers’ Cheques: Credit cards are not generally accepted with limited acceptance only of American Express, Diners Club and Visa. Some larger hotels and restaurants in Luanda have started taking credit cards. ATMs can be found in major towns and cities, but many do not accept foreign cards. Traveller’s cheques are accepted.

Taxes: 10% VAT payable on goods and services.

Entry Requirements: Passport must be valid for at least nine months after intended period of stay and must have two blank pages. Visas required by most nationals.

Imports: US$24.76-billion (2011 est.)

Foreign Exchange & Gold Reserves: US$28.3-billion (2011 est.)

Inflation:14.3% (2011 est.)

Unemployment: Unknown - (majority of labour force engages in subsistence agriculture).

Poverty: 40.5% of population below international poverty line of US$1.25 a day (2006 est.).

Economic Sectors: Agriculture: 9.6% of GDP (2008 est.); industry: 65.8% of GDP (2008 est.); and services: 24.6% of GDP (2008 est.)

Natural Resources: Oil; diamonds; iron ore; phosphates; copper; feldspar; gold; bauxite; uranium.

Agricultural Products: Bananas; sugarcane; coffee; sisal; corn; cotton; cassava; tobacco; vegetables; livestock; forest products; fish.

Manufacturing Industries: Petroleum products; cement; basic metal products; fish processing; food processing; brewing; tobacco products; sugar; textiles; ship repair.

Major Banks: National Bank of Angola (central); Angolan Investment Bank; Development Bank of Angola (state-owned); Standard Bank.

Major Private Companies: BP Petroleum Development Ltd; Chevron Corporation; Cabinda Gulf Oil Company Ltd; Southern Era Resources Ltd; Odebrecht Angola Ltd; Xceldiam Ltd; Minbos Resources Ltd; Metalex Ventures Ltd; Grupo Medianova; Movicel; Gem Diamonds Ltd; Gilla Inc. Major State-Owned Enterprises: Sonangol Group; Endiama; National Iron Ore Company of Angola (Emprêsa Nacional de Ferro de Angola); Angola Telecom; Luanda Railway; TAAG Angola Airlines.

Political

Contacts

System: Republic; multiparty presidential system (until now a de facto one-party state).

Independence: 11 November 1975 (from Portugal).

Government: President is head of state and government.

Council of Ministers is appointed by the president. President is indirectly elected by National Assembly for a five-year term; eligible for a second consecutive or discontinuous term under the 2010 constitution. Administratively Angola is divided into 18 provinces and 163 municipalities.

Legislature: Unicameral National Assembly with 220 seats; members elected by proportional vote to serve four-year terms.

Legal System: Civil legal system based on Portuguese civil law; no judicial review of legislation.

Population: 18 million (2011 est.)

Chamber of Commerce and Industry: Contact: Anthony dos Santos (President) - Tel: +244 222 445 213; Fax: +244 222 444 629; Email: ccira@ebonet.net Trade Representative Office (South Africa): Tel: +27 11 884 3212; Fax: +27 11 884 3536; Email: angotrade@icon.co.za Angola National Private Investment Agency (ANIP): Tel: +244 222 331 252; Email: geral@anip.co.ao Ministry of Geology, Mines and Industry: Tel: +244 222 326 724; Fax: +244 222 321 655 Ministry of Energy: Tel: +244 222 393 681; Fax: +244 222 393 684 Ministry of Petroleum: Tel: +244 222 337 292; Fax: +244 222 337 440 Ministry of Urban Affairs and Construction: Tel: +244 222 334 429; Fax: +244 222 310 460 Ministry of Transport: Tel: +244 222 311 581; Fax: +244 222 311 303 Ministry of Finance: Tel: +244 222 338 548; Fax: +244 222 332 069

Economy Gross Domestic Product (Purchasing Power Parity): Total: US$115.9-billion (2011 est.)

Per Capita: US$5,900 (2011 est.)

GDP Growth: 3.7% (2011 est.)

Budget: Revenues: US$42.86-billion (2011 est.)

Expenditures: US$35.41-billion (2011 est.)

Surplus / Deficit: 7.5% of GDP (2011 est.)

Public Debt: 24.5% of GDP (2011 est.)

Current Account: US$7.755-billion (2011 est.)

Exports / Imports: Exports: US$65.63-billion (2011 est.)

TIA

Sources: Country’s Government, CIA World Factbook, US State Department Country Fact Sheets, International Monetary Fund, World Bank

TRADE & INVEST AFRICA

103

Botswana

Republic of Botswana This landlocked Southern African country is surrounded by South Africa, Namibia, Zambia and Zimbabwe. While the Kalahari Desert dominates much of the region’s topography, it is nonetheless a country of spectacular environmental contrasts. The Okavango Delta, the world’s largest inland delta, supports a tremendous diversity of wildlife in the northwest and, in addition to the large areas of desert and delta in Botswana, the world-renowned tourism destination also supports savannah and grassland biomes, which provide habitats for large herds of antelope, predators such as lion and leopard, as well as elephant, rhinoceros and a myriad of other mammals.

The population of Botswana is currently estimated to be about 2.06-million with a 1.5% annual growth rate and, while English is the official language, 79% of the population is Tswana, 11% Kalanga and the remaining 10% are descended from the first inhabitants of the region, the San (hunter-gatherers) and Khoi (hunter-herders), and also includes Indians and whites.

The British Government accepted proposals for a selfgoverning democracy in 1964 and, following the first general elections, Botswana gained its independence on September 30, 1966. During the last national elections the Botswana Democratic Party (BDP) won 45 of 57 seats in the National Assembly and Ian Khama, who, in accordance with national term limits imposed on former president Festus Mogae, had already assumed the presidency on March 31, 2008, was elected in his own right on October 16, 2009.

Since independence, Botswana experienced among the fastest growth rates in per capita income in the world, averaging

104

9% per year from 1967 to 2006, when the global economic recession began slowing growth. With a GDP estimate of US$30.09-billion for 2011 and a growth rate of 6.2% for the same year, Botswana has a thriving economy with an abundance of natural resources. Mining contributes roughly 40% of the GDP and the country is the world’s largest producer of gem-quality diamonds, with current reserves estimated to be sufficient for another 20 years. The tourism industry, with an annual growth rate of 14% sustained over the past 8 years, accounts for approximately 11% of the GDP of Botswana.

Trade estimates for 2011 amount to US$5.509-billion in exports, primarily diamonds, but also including various metals, meat products and textiles. Imports amounting to US$5.426billion were mainly in machinery, transport equipment, fuel and manufactured goods. Botswana has no prohibitions on foreign ownership of companies, a low corporate tax rate of just 15% and the country abolished foreign exchange controls in 1999, thereby actively encouraging foreign investment.

The official currency is the Pula and is fully convertible, while there are no restrictions on repatriation of profits of direct investments. Botswana is a member of the Southern African Development Community (SADC), which has a mandate to encourage development and economic integration throughout the region, and its headquarters is located in Gaborone, the country’s capital. It is also a member of the Southern African Customs Unions (SACU). What’s more, with a record of sound economic governance, Transparency International ranked Botswana as Africa’s least corrupt country in 2012.

TRADE & INVEST AFRICA

Country Overview

General Location: Southern Africa, bordered by South Africa, Namibia, Zambia and Zimbabwe.

Capital: Gaborone Languages: English (official); Setswana; Ikalanga.

Time Zone: GMT + 2 Main Airport: Sir Seretse Khama International Airport, 15km north of Gaborone.

International Dialling Code: +267 Communications: Fibre-optic telecommunications network completed (connecting all major population centres); 22 commercial Internet service providers; 3 cellular phone providers covering most of the urban development areas.

Currency: Pula Credit Cards: Visa, MasterCard, American Express and Dinners Club are accepted forms of payment at hotels, shops and restaurants, but to a limited extent outside major centres.

Travellers’ Cheques: Most hotels and lodges accept travellers’ cheques, but surcharge may be high. Advisable to change money into local currency.

Taxes: 10% VAT payable on goods and services.

Entry Requirements: Foreign visitors need passports valid for at least 6 months after date of entry. Citizens of Commonwealth countries do not require a visa and visa abolition agreements exist with a number of countries. All other foreigners need a visa. Any visitor wishing to stay more than 90 days will have to apply for prior permission.

TIA

Unemployment Rate: 7.5% (2007 est.)

Poverty: 30.3% of population below international poverty line of US$1.25 a day (2003 est.)

Economic Sectors: Agriculture: 2.1% of GDP (2011 est.)

Industry: 45% of GDP (2011 est.)

Services: 52.9% of GDP (2011 est.)

Natural Resources: Diamonds; copper; nickel; salt; soda ash; potash; coal; iron ore; silver.

Agricultural Products: Livestock; sorghum; white maize; millet; cowpeas; beans.

Manufacturing Industries: Textiles; construction; beef processing; chemical products; food and beverage products.

Major Banks: Bank of Botswana (central bank); Barclays Bank; First National Bank; Standard Chartered Bank; Stanbic Bank.

Stock Exchange: Botswana Stock Exchange (BSE), based in Gaborone.

Major Private Companies: African Banking Corporation Holdings Ltd; African Energy Resources Ltd; Aviva Corporation Ltd; Barclays Bank of Botswana Ltd; Chobe Holdings Ltd; Discovery Metals Ltd; Engen Botswana Ltd; First National Bank Botswana Ltd; Lucara Diamond Corporation; Standard Chartered Botswana Ltd; Wilderness Holdings Ltd. Major State-Owned Enterprises: Air Botswana; Botswana Development Corporation; Botswana Power Corporation; Botswana Railways; Botswana Telecommunications Corporation; Water Utilities Corporation (WUC); Debswana Diamond Company (Pty) Ltd (partnership with De Beers).

Contacts

Political System: Republic; multiparty parliament; constitutional democracy.

Independence: September 30, 1966 (from United Kingdom).

Government: Head of State & Head of Government is President who appoints Cabinet from the National Assembly.

Current President is Ian Khama.

Legislature: Parliament, consisting of popularly elected National Assembly and advisory House of Chiefs.

Legal System: Dual legal system based on Roman-Dutch law and customary law.

Population: Current Estimate: 2.06 million (2001 census: 1.68 million)

Economy Gross Domestic Product (Purchasing Power Parity): Total: US$30.09-billion (2011 est.)

Per Capita: US$16,300 (2011 est.)

GDP Growth: 6.2% (2011 est.)

Budget: Revenues: US$5.614-billion (2011 est.)

Expenditures: US$6.24-billion (2011 est.)

Surplus / Deficit: -6.1% of GDP (2011 est.)

Public Debt: 20.3% of GDP (2011 est.)

Current Account: US$ -467.9-million (2011 est.)

Exports / Imports: Exports: US$5.509-billion (2011 est.)

Imports: US$5.426-billion (2011 est.)

Foreign Exchange & Gold Reserves: US$8.516-billion (2011 est.)

Inflation: 7.8% (2011 est.)

Office of the President: Contact: Phillip Modise - Tel: +267 395 0970; Email: pwmodise@gov.bw Ministry of Finance and Development Planning: Contact: K Lepekoane - Tel: +267 395 0353; Email: klepekoane@gov.bw Ministry of Infrastructure, Science and Technology: Contact: Masego Swabi - Tel: +267 395 8565; Email: mswabi@gov.bw Ministry of Transport and Communications: Contact: Chadza Matsheka - Tel: +267 362 5532; Email: cmatsheka@gov.bw Ministry of Trade and Industry: Contact: Keabatshaba Matsietsa - Tel: +267 360 1226, Email: kmatsietsa@gov.bw Ministry of Environment, Wildlife and Tourism: Contact: Mosetsanagape Sepora -Tel: +267 393 4479; Email: mssepora@gov.bw Ministry of Minerals and Water Resources: Contact: Ozias Senwelo - Tel: +267 365 6690; Email: osenwelo@gov.bw

Sources: Country’s Government, CIA World Factbook, US State Department Country Fact Sheets, International Monetary Fund, World Bank

TRADE & INVEST AFRICA

105

Ghana

Republic of Ghana

Ghana is situated on the Gulf of Guinea along the Atlantic Ocean in West Africa, Ivory Coast is its western neighbour, Burkina Faso is in the north, Togo to its east, and the Gulf of Guinea to the south. The country has the distinction of being the first sub-Saharan African country to regain its independence after the colonial period. Its name, which means “Warrior King”, is derived from the ancient Empire of Ghana.

Pre-colonial Ghana was inhabited by a number of ancient, predominantly Akan kingdoms, while non-Akan states created by the Ga and the Dagomba also existed. The area was rich with gold, leading to trade between the Akan and various African states. It was also a key area for slave and ivory trade. In the 15th century, when the mighty Ashanti Empire still dominated here, the Portuguese arrived and trade with Europe started. This led to Britain establishing the Gold Coast Crown colony in 1874 over parts of the country. Formed from the merger of the British colony of the Gold Coast and the Togoland trust territory, Ghana achieved independence from Britain in 1957. In 1960 Ghana became a republic.

After a long series of coups and political instability, Lt Jerry Rawlings took power in 1981 and banned political parties.

After approving a new constitution and restoring multiparty politics in 1992, Rawlings won the 1992 presidential elections.

He served two terms and has since been succeeded by a number of democratically elected leaders. John Dramani Mahama became president in July 2012. The country’s

106

population of 24.6-million people is made up of a large number of ethnic groups speaking a variety of languages.

English is the official language.

Some three decades of good economic management has caused Ghana’s economy to thrive. The country has ample natural resources, of which gold and oil are the most important. Agriculture is also an important sector, accounting for almost 25% of GDP, while the services sector accounts for 50% of GDP. Other exports include cocoa, natural gas, timber, electricity, diamonds, bauxite, and manganese. The country has managed to sustain reductions in poverty levels and is ranked as a Lower–Middle Income Economy by the World Bank. Per capita output in Ghana is more than double that of the poorer countries in West Africa. In 2006 Ghana signed a Millennium Challenge Corporation (MCC) Compact aimed at transforming Ghana’s agricultural sector. In 2002 Ghana obtained debt relief under the Heavily Indebted Poor Country (HIPC) program while it also benefits from the Multilateral Debt Relief Initiative that took effect in 2006. In 2009 Ghana signed a three-year Poverty Reduction and Growth Facility with the IMF. Ghana is a member of all the major African and international organisations, including the South Atlantic Peace and Cooperation Zone, the United Nations, the Commonwealth of Nations, the African Union, and the Economic Community of West African States.

TRADE & INVEST AFRICA

Country Overview

General Location: East Africa Capital: Nairobi Languages: English & Swahili.

Time Zone: East Africa Time (UTC +3).

Main Airport: Jomo Kenyatta International Airport (JKIA), Nairobi.

International Dialling Code: +254 Communications: Good fixed line network (country comparison 120th out of 230 countries); over 4 million internet users (59th out of 230 countries).

Currency: Kenyan shilling divided into 100 cents.

Forex & Credit Cards: All major cards & travellers’ cheques; several forex bureaus in Nairobi as well as major banking institutions.

Taxes: VAT rate 16%; corporate tax rate 30%; income tax rate 30%.

Entry Requirements: Visas can be obtained at port of entry – large number of countries exempted.

Political

System: Presidential representative democratic republic, whereby the President is both the head of state and head of government; constitutional democracy; unicameral parliament.

Independence: 1963 President Mwai Kibaki directly elected for Government: 5 years. Prime Minister Raila Odinga and cabinet appointed by President. Currently a coalition government. (New constitution adopted 2010 will do away with position of prime minister after next presidential election.)

Unicameral National Assembly also Legislature: called Parliament. (New constitution introduces bicameral parliament.)

Independent judiciary based on mainly on Legal System: British and in some lower courts on Muslim law; Chief Justice appointed by President.

Population: 43 million.

Economy

Gross Domestic Product: US$71.21 billion (2011 est.)

GDP Real Growth Rate: 4.4% (2011 est.)

Budget: Revenues: US$6.611 billion; expenditures: US$8.38 billion (2011 est.)

Surplus/Deficit: -5.3% of GDP (2011 est.)

Public Debt: 50.7% of GDP (2011 est.)

Current Account: US$3.536 billion (2011 est.)

Exports / Imports: Exports US$5.787 billion (2011 est.); imports US$13.83 billion (2011 est.).

Foreign Exchange & Gold Reserves: US$4.893 billion (2011 est.)

Inflation: 14% (2011/2012 est.)

Unemployment: 40% (2008 est.)

Poverty: 50% of population below poverty line; World Bank rates it below Middle Income level.

Economic Sectors: Agriculture; tourism; production; service sector; mining; communications; transport; energy.

TIA

Natural Resources: Oil; gas; aluminium; steel; lead.

Agricultural Products: Tea; coffee; corn; wheat; sugarcane; fruit; vegetables; dairy products; beef; pork; poultry; eggs.

Manufacturing Industries: Small-scale consumer goods (plastic, furniture, batteries, textiles, clothing, soap, cigarettes, flour); agricultural products; cement, commercial ship repair.

Major Banks: 43n licenced commercial banks including ABC Bank (Kenya); Bank of Africa; Bank of India; Barclays Bank; Chase Bank (Kenya); Citibank; Commercial Bank of Africa; Development Bank of Kenya; Dubai Bank Kenya; Guardian Bank; Gulf African Bank; Standard Chartered Kenya; and more.

Stock Exchange: Nairobi Securities Exchange.

Major Private Companies: Williamson Tea Kenya; Kenya Airways; Nation Media Group; Standard Group; Longhorn Kenya; Car and General; CMC Holdings; Sameer Africa; Marshalls; Jubilee Holdings; Pan African Insurance Holdings; British-American Investments Company; Kenya Reinsurance Corporation; CIC Insurance Group; British American Tobacco Kenya; Kenya Orchards; East African Breweries; EA Portland Cement; Total Kenya; KenolKobil; Crown Berger; and more.

Major State-Owned Enterprises: Kenya Broadcasting Corporation; Kenya Electricity Generating Company; Kenya Pipeline Company; Kenya Railways Corporation; and National Oil Corporation of Kenya.

Contacts Office of the President: His Excellency The Hon. Mwai Kibaki C.G.H., M.P. - Tel: +254 (0)2 22 7411 Prime Minister: Hon. Raila Amollo Odinga., M.P. Secretary for External Trade: Mr. Simon Chacha Nyangi Minister of Cooperative Development: Hon. Joseph Nyagah, M.P.- Tel +254 (0)2 73 1531-9 Minister of East African Community: Hon. Musa Sirma, M.P. – Tel +254 (0)2 24 5741 Minister of Information & Communication: Hon. Samuel Lesuron Poghisio., M.P. – Tel +254 (0)2 251152 Minister of Tourism: Hon. Danson Mwazo, M.P. - Tel +254 (0)2 313010 Kenya National Chamber of Commerce & Industry: Tel +254-20-22 08 66/7 Nairobi Securities Exchange: Tel +254-20-23 06 92 Capital Markets Authority: Tel +254-20-22 19 10/22 1869 Central Bank of Kenya: Tel +254-20-22 64 31/24 60 00, Export Processing Zones Authority: Tel +254-20-71 28 00-6, Federation of Kenya Employers: Tel +254-20-72 19 29, +25420-72 19 48

Source: Government, CIA World Factbook, International Monetary Fund, World Bank, Wikipedia

TRADE & INVEST AFRICA

107

Kenya

Republic of Kenya

Kenya, named after Africa’s second highest mountain peak, is the economic hub and biggest economy of East Africa. Straddling the equator, the country has a land area of 580,367 km2 and is bordered by the semi-desert landscape of the Horn of Africa to the north, the Great Rift Valley and Lake Victoria to the west, Tanzania in the south, with the Indian Ocean forming its eastern border.

the sole legal party in Kenya. Political liberalisation followed in the nineties after internal and external pressure and today the country is a multi-party democracy. The last few years have politically been quite stable following two months of serious upheavals and political violence resulting in some 1,500 people being killed after the disputed result of the December 2007 election.

Kenya is a multi-cultural and multi-lingual country with the Kikuyu being the biggest ethnic group making up some 22% of the population. The next biggest groups are the Luhya (14%), Luo (13%), Kalenjin (12%) and Kamba (11%), followed by a number of smaller groups including whites of European descent, Arabs and Asians. The latter three groups make up less than 1% of the population. Kenya falls within the African Great Lakes region which has been inhabited by humans since the Lower Palaeolithic period. Expanding from West Central Africa, the Bantu reached the area by the first millennium AD. The Kenya of today comprises the early crossroads of Niger-Congo, Afro-Asiatic and Nilo-Saharan migration. The first European and Arab presence was in the coastal region, particularly Mombasa and dates to the Early Modern period. European exploration of the interior began in the 19th century, and colonisation by Britain followed in 1895 as the British East Africa Protectorate, which became the Kenya Colony in 1920.

Kenya achieved independence as a republic in 1963. The country has a population of 43 million (July 2012 est.).

Along the coast and close to Lake Victoria, the world’s second largest fresh water lake, the climate is tropical, warm and humid.

In much of the west the forested and hilly areas have a temperate climate. The climate of the savannah grasslands with their vast wildlife populations in the interior is cool, getting colder closer to the country’s three permanently snow-capped peaks. In the arid and semi-arid areas of the north the climate is hot most of the time.

Although the country functioned as a de facto one-party state from 1969 to 1982 and from 1982 until 1991 it was officially a oneparty state with the Kenya African National Union (KANU) being

108

Much of the country’s economy is based on agriculture, tourism and the service industry. As a major exporter of coffee, tea and flowers, Kenya has one of Africa’s most successful agricultural regions employing some 75% of the country’s labour force.

However, there is much room for further agricultural development.

While still the major East African economy, low investment on infrastructure and high levels of corruption are threatening its economic position. Kenya is a member of the East African Community (EAC), which includes a Customs Union. It is also a member of the Common Market for Eastern and Southern Africa (Comesa). The country is party to a large number of international treaties and agreements and has membership of a large number of organisations.

TRADE & INVEST AFRICA

Country Overview

General Location: East Africa Capital: Dodoma Largest City: Dar es Salaam Languages: English & Swahili Time Zone: East Africa Time (GMT + 3 hrs.)

Main Airport: Julius Nyerere International Airport 13km southwest of Dar es Salaam.

International Dialling Code: +255 Communications: Relatively good fixed line telephone network, but in rural areas calls may have to be placed through an operator; cell phone networks in main urban areas and Zanzibar – some international roaming agreements exist; various internet service providers with some internet cafes in major centres; internet connections at most first-class hotels and lodges.

Currency: Tanzanian shilling (TZS) divided into 100 cents.

Banking & Credit Cards: Banks, foreign exchange bureaux and some hotels exchange major currencies in larger towns; ATMs in major cities only; credit cards accepted only by major lodges, some hotels and travel agents incurring a 10% surcharge.

Taxes: 18% VAT payable on goods and services.

Entry Requirements: Most foreign visitors need a visa – certain exemptions (check with embassies); Nationals of the East African Community do not need visa or entry permit; Passport must be valid for at least six months.

Political System: Republic; constitutional democracy, but one-party

dominant.

Independence: 1961 – 1963.

Government: President is head of state and of government; president and members of National Assembly are elected by direct popular vote for five-year terms; president appoints a prime minister who serves as the government’s leader in the National Assembly; president selects his Cabinet from among the National Assembly members.

Legislature: Unicameral National Assembly.

Legal System: Independent judiciary with high and lower courts.

Population: 47-million (2012 est.)

Economy

Gross Domestic Product: US$67.9 billion (2011 est.)

GDP Growth: US$6.4% (2011 est.)

Budget: Revenues: US$4.603 billion; expenditures: US$6.125 billion (2011 est.)

Surplus/Deficit: -6.5% of GDP (2011 est.)

Public Debt: 37.6% of GDP (2011 est.)

Current Account: -US$3.872 billion (2011 est.)

Exports / Imports: Exports: US$4.843 billion (2011 est.); imports: US $9.635 billion (2011 est.)

Foreign Exchange & Gold Reserves: US$3.726 billion (2011 est.)

Inflation: 12.7% (2011 est.)

Poverty: 36% below poverty line (2002 est.)

Economic Sectors: Agriculture; tourism; mining; energy; manufacturing.

TIA

Natural Resources: Natural gas, gold, diamonds, coal, iron, uranium, nickel, chrome, tin, platinum, coltan, niobium, rare earths oxide and tanzanite.

Agricultural Products: Coffee, sisal, tea, cotton, pyrethrum (insecticide made from chrysanthemums), cashew nuts, tobacco, cloves, corn, wheat, cassava (tapioca), bananas, fruits, vegetables; cattle, sheep, goats.

Manufacturing Industries: Agricultural processing (sugar, beer, cigarettes, sisal twine); mining (diamonds, gold, and iron), salt, soda ash; cement, oil refining, shoes, apparel, wood products, fertilizer.

Major Banks: Access Bank; Advans Bank Tanzania; Akiba Commercial Bank; Bank of Africa; Bank of India (Tanzania); Barclays Bank Tanzania; Citibank; Commercial Bank of Africa (Tanzania); First National Bank of Tanzania; International Commercial Bank; Stanbic Bank; Standard Chartered Bank; United Bank for Africa; and others.

Stock Exchange: Dar es Salaam Stock Exchange (member of African Stock Exchanges Association).

Major Private Companies: Tol Gases Limited; Tanzania Breweries Limited; Tanzania Tea Packers Limited; Tanzania Cigarrete Company Limited; Tanga Cement Company Limited; Swissport Tanzania Limited; Tanzania Portland Cement Company; Dar Es Salaam Community Bank; National Microfinace Bank Plc; Kenya Airways Limited; East African Breweries Limited; Jubilee Holdings Limited; Kenya Commercial Bank Limited; RDB Bank Public Limited Company; Nation Media Group; African Barrick Gold plc; Vodacom Tanzania; Quality Group Limited; Tanzanian and Italian Petroleum Refining Company Limited, MIC Tanzania Limited; and Precision Air Services plc.

Major State-Owned Enterprises: Air Tanzania; Tanzania Electric Supply Company Limited (TANESCO); Tanzania Railways Corporation; and Tanzania Telecommunications Company.

Contacts Office of the President: Chief Secretary: Tel +255 (0)22 2116679 Prime Minister’s Office: Permanent Secretary: Tel +255 (0)22 2135076/2123281/2117249/50-2.

Minister of Industries & Trade: Tel: +255 (0)22 2181397, 2180418, 2117219-23, 2180049, 2180050 Ministry of Finance: Permanent Secretary: Tel +255 (0)22 2111174/9, 2112854 Ministry of Agriculture & Food Security: Permanent Secretary: Tel +255 (0)22 2862480/1 Ministry of Communication & Transport: Permanent Secretary: Tel +255 (0)22 2114426 Tanzania Tourist Board: Tel +255 (0)22 2111244/5 Stock Exchange: +255 (0)22 2135779, 2123983, 2128522

Source: Government, CIA World Factbook, International Monetary Fund, World Bank, Wikpedia

TRADE & INVEST AFRICA

109

Lesotho

Kingdom Of Lesotho The Kingdom of Lesotho is the southernmost landlocked country in the world, completely surrounded on the high veld plateau by South Africa. It is also the most elevated of the world’s independent states, its lowest point being at an altitude of 1,400 metres above sea level. Consequently, Lesotho’s climate is considerably cooler throughout the year than other countries located on the same latitude. Year-round snow is not an uncommon feature of the higher peaks.

The earliest known inhabitants of the area were Khoisan hunter-gatherers who were later largely replaced by Wasjaspeaking tribes as a result pf Bantu migrations from central Africa. The Sotho-Tswana people settled the general Southern African region between the 3rd and 11th centuries. The present Lesotho (previously called Basutoland) emerged as a single polity under king Moshoeshoe I in 1822. While other ethnic groups are present in Lesotho these days, over 99% of the population is comprised of Basotho.

Britain granted the country its independence in 1966. After a series of coups, the Basotho Congress Party (BCP) was democratically elected in 1993. Following another military coup instigated by the king, and lengthy negotiations with member states of the Southern African Development Community (SADC), the BCP government was reinstated in 1995, only to break apart over leadership disputes two years later. The Lesotho Congress for Democracy (LCD) was formed, winning general elections in 1998, which were followed by yet another military mutiny that required intervention by

110

South African troops. The LCD was soon back in power, but in February 2012 the prime minister and his supporters, holding a majority of seats, abandoned the LCD after internal conflict and formed the Democratic Congress (DC), which is now in power.

Lesotho has a parliamentary or constitutional monarchy in which the prime minister is head of government and has executive authority. The king serves a largely ceremonial function and no longer possesses any executive authority.

The monarch is also prohibited from actively participating in political activities.

Lesotho’s small size and mountainous terrain has led its government to rely on customs duties from the Southern Africa Customs Union (SACU) and remittances from Basotho employed in South Africa for revenue. The market-based economy is thus heavily tied to South Africa. With a decline in the mining industry’s labour requirements, Lesotho’s manufacturing sector, supported by plantations and pastoralists, has experienced growth in the milling and leather industries. Despite recent drought decreasing agricultural activity, the majority of the labour force is still engaged in subsistence agriculture of a pastoral nature. With the global economic crisis and a decline in demand for Lesotho’s export products, the kingdom’s economic growth dipped in 2009, but positive figures have been reported every year since.

TRADE & INVEST AFRICA

Country Overview

General Location: A landlocked country and enclave completely surrounded by South Africa in south-eastern Africa.

Capital: Maseru Languages: Sesotho; English (both official) Time Zone: GMT + 2 Main Airport: Moshoeshoe International Airport, Maseru.

International Dialling Code: +266 Communications: Basic system consisting of a modest number of landlines and a limited microwave radio relay system. Also has a small radiotelephone communication system. Cellular telephone system is expanding, but restricted to urban areas.

Currency: Loti, but also South African rand Credit Cards & Travellers’ Cheques: Major credit cards and traveller’s cheques, in US dollars, are accepted only at major tourist establishments and banks.

Entry Requirements: Valid passport; no visa required for period of up to 14 days for most visitors. Must have sufficient funds and tickets for return journey. Extensions for visas are possible if made with Lesotho Immigration Authorities within initial 14day period. Lesotho passport and visa requirements are liable to change at short notice; advised to check entry requirements with embassy prior to travel.

Political System: Constitutional monarchy Independence: 4 October 1966 (from the UK) Government: Monarch is head of state; prime minister is head of government and cabinet.

Legislature: Bicameral parliament consists of elected Assembly and non-elected Senate.

Legal System: Mixed legal system of English common law and Roman-Dutch law; judicial review of legislative acts in High Court and Court of Appeal.

Population: 1.924-million (2011 est.)

TIA

Services: 59.4% of GDP (2011 est.)

Natural Resources: Water; diamonds.

Agricultural Products: Wool; mohair; corn; wheat; pulses; sorghum; barley; meat; livestock; leather; jute.

Major Industries: Food; beverages; textiles; apparel assembly; handicrafts; construction; tourism.

Major Banks: Central Bank of Lesotho; Standard Lesotho Bank Ltd; Nedbank Lesotho Ltd; First National Bank of Lesotho Ltd. Stock Exchange: Plans for a stock exchange have been in the pipeline for some time.

Major Private Companies: LEO (Pty) Ltd; Comnet Lesotho; Nedbank Lesotho Limited; Quadrant Computers; BP Lesotho; Angel Diamonds Ltd; Lesotho Sandstone; Total Lesotho; African Union; Afrox; Alliance Insurance; Clicks; CNA; Deloitte & Touche; Edgars Stores; Engen; Ernst & Young; Vodacom; Imperial Car Rental.

Major State Owned Enterprises: Telecom Lesotho; Lesotho Post Bank; Lesotho Highlands Development Agency; Lesotho National Development Corporation; National Abattoir & Feedlot Complex.

Contacts Ministry of Foreign Affairs and International Relations: Contact: Mr J T Metsing - Tel: +266 2231 3135; Fax: +266 2231 0178; Email: moeketsim@foreign.gov.ls Ministry of Tourism, Environment and Culture: Contact: Mrs P Masita Mohale - Tel: +266 2231 3034; Fax: +266 2231 0194; Email: pmasita.mohale@mtec.gov.ls Ministry of Trade and Industry, Cooperatives and Marketing: Tel: +266 2231 7454; Fax: +266 2231 0644 Lesotho Chamber of Commerce and Industry: Tel: +266 2231 1066; Fax: +266 2232 3089; Email: info@lcci.org.ls

Economy Gross Domestic Product (Purchasing Power Parity): Total: US$2.7-billion (2011 est.)

Per Capita: US$1,400 (2011 est.)

GDP Growth: 3.5% (2011 est.)

Budget: Revenues: US$1.267-billion (2011 est.)

Expenditures: US$1.57-billion (2011 est.)

Surplus / Deficit: -13.7% of GDP (2011 est.)

Public Debt: US$690.6-million (2011 est.)

Current Account: US$ -415.7-million (2011 est.)

Exports / Imports: Exports: US$978.9-million (2011 est.)

Imports: US$2.335-billion (2011 est.)

Foreign Exchange & Gold Reserves: US$946.5-million (2011 est.)

Inflation: 7.2%. (2011 est.)

Unemployment: 45% (2002 est.)

Poverty: 49% of population below international poverty line of US$1.25 a day (1999 est.)

Economic Sectors: Agriculture: 7.5% of GDP (2011 est.)

Industry: 33.1% of GDP (2011 est.)

Sources: Country’s Government, CIA World Factbook, US State Department Country Fact Sheets, International Monetary Fund, World Bank

TRADE & INVEST AFRICA

111

Malawi

Republic Of Malawi Though a vast expanse of water covers a quarter of its surface area and demarcates over 20% of its borderline, Malawi is a landlocked country of Southeast Africa. Formerly known as Nyasaland, it is bordered by Zambia to the northwest, Tanzania to the northeast and by Mozambique from southeast to southwest. The temperate climate of the northern highlands, a mountainous region where Lake Malawi parallels the Great Rift Valley in a southwards direction, gives way to subtropical conditions and rolling plains below the escarpment.

What is today known as Malawi was colonised by migrating tribes of Bantu around the 10th century. . In 1891 the United Kingdom established the protectorate of Nyasaland. In 1953 Nyasaland, became part of the semi-independent Central African Federation (CAF). The Federation was dissolved in 1963 and in 1964 Nyasaland gained full independence and was renamed Malawi. Following the thirty-year political reign of President Hastings Banda, Malawi held its first multiparty democratic elections in 1994.

After a failed attempt by the elected President Bakili Muluzi to amend the constitutional limitations on terms, Dr Bingu wa Mutharika was elected in 2004 and re-elected in 2009. His rule was widely considered to be increasingly autocratic and in July 2011 protests erupted over poor government, leaving over a dozen dead and scores wounded. President Mutharika died abruptly in April 2012, leaving the presidency to Malawi’s first female leader, Joyce Banda.

112

With a predominantly agricultural economy (the large majority of the labour force is engaged in subsistence agriculture), Malawi is one of the world’s least developed countries. The Malawian government is heavily dependent on outside aid to meet development needs, although since 200o this has decreased. The Malawian government faces major challenges in building and expanding the economy, improving education, health care, environmental protection, and becoming financially independent, tasks the new president has started tackling in earnest.

Farming accounts for a third of the GDP and 90% of export revenues, half of which is generated by the tobacco sector alone. In 2009 investments fell by 23% and continued to decline throughout the following year, mainly due to the failure of the Democratic Progressive Party (DPP) to address issues of unreliable power and water supplies and inadequate infrastructure and telecommunications. Other problems include corruption, rapid growth of an already dense population, and mounting pressure on agricultural lands.

TRADE & INVEST AFRICA

Country Overview

General Location: Located in south-eastern Africa, landlocked and surrounded by Zambia, Mozambique, and Tanzania.

Capital: Lilongwe Languages: English (official); Chichewa (common) Time Zone: GMT + 2 Main Airport: Lilongwe International Airport (also known as Kamuzu International Airport).

International Dialling Code: +265 Communications: Rudimentary with limited fixed-line telecommunications. Cellular services are expanding but network coverage is limited to the main urban areas.

Currency: Kwacha (divided into 100 tambala) Credit Cards & Travellers’ Chdeques: Credit cards are not widely accepted in Malawi outside of the main urban areas.

Travellers’ cheques or cash are advised. Money can be changed at the airport, banks or commercial bureaux de change.

Taxes: 16.5% VAT payable on goods and services.

Entry Requirements: All visitors require a valid passport.

Citizens of industrialised nations such as the US and EU countries do not require a visa. Visas can be obtained upon arrival.

Political System: Multiparty democracy Independence: 6 July 1964 (from the UK) Government: President is both chief of state and head of government. Cabinet consists of 46 members nominated by the president. President elected by popular vote for a five-year term and is eligible for a second term.

Legislature: Unicameral National Assembly consisting of 193 seats where members are elected by popular vote to serve terms of five years each.

Legal System: Mixed legal system of English common law and customary law.

Population: 16.323-million (2012 est.)

TIA

Services: 53% of GDP (2011 est.)

Natural Resources: Limestone, arable land, hydropower, unexploited deposits of uranium, coal, and bauxite.

Agricultural Products: Tobacco; sugarcane; cotton; tea; corn; potatoes; cassava; sorghum; groundnuts; macadamia nuts; cattle; sheep.

Major Banks: Reserve Bank of Malawi (central); National Bank of Malawi Ltd; Standard Bank Malawi Ltd; NBS Bank Ltd; First Merchant Bank Ltd; Nedbank Malawi Ltd. Stock Exchange: Malawi Stock Exchange (established 1995).

Major Private Companies: Blantyre Hotels Ltd; Illovo Sugar; NICO Holdings; Press Corporation Ltd; Packaging Industries Malawi Ltd; Sunbird Tourism; Old Mutual; Real Insurance Co. Major State Owned Enterprises: National Oil Company of Malawi (NOCMA); Agricultural Development and Marketing Corporation (ADMARC); Agricultural Development Marketing Corporation (ADMARC); Small-holder Farmers Fertilizer Revolving Fund (SFFRF); Electricity Supply Company of Malawi (ESCOM); Air Malawi.

Contacts Ministry of Foreign Affairs: Tel: +265 178 9088; Fax: +265 178 8482; Web: www.foreignaffairs.gov.mw Ministry of Development Planning and Cooperation: Tel: +265 178 8888; Fax: +265 178 8247; Email: mepd@malawi.net Ministry of Finance: Tel: +265 178 9355; Fax: +265 178 9173; Email: finance@finance.gov.mw Ministry of Industry and Trade: Tel: +265 177 0244; Fax: +265 177 0680; Email: minci@malawi.net Government of Malawi: http://www.malawi.gov.mw Reserve Bank of Malawi: http://www.rbm.mw Malawi Stock Exchange: http://www.mse.co.mw National Statistical Office: http://www.nso.malawi.net Privatization Commission: http://www.privatisationmalawi.org Copyright Society of Malawi: http://www.cosoma.org African Regional Intellectual Property Organization: http://www.aripo.org

Economy Gross Domestic Product (Purchasing Power Parity): Total: US$13.77-billion (2011 est.)

Per Capita: US$900 (2011 est.)

GDP Growth: 4.6% (2011 est.)

Budget: Revenues: US$1.764-billion (2011 est.)

Expenditures: US$1.822-billion (2011 est.)

Surplus / Deficit: -2.3% of GDP (2011 est.)

Current Account: US$ -714.2-million (2011 est.)

Exports / Imports: Exports: US$921.9-million (2011 est.)

Imports: US$1.694-billion (2011 est.)

Foreign Exchange & Gold Reserves: US$172 million (2011 est.)

Inflation: 7.5% (2011 est.)

Unemployment Rate: N/A (large majority of labour force engages in subsistence agriculture) Poverty: 53% of population below international poverty line of US$1.25 a day (2004 est.)

Economic Sectors: Agriculture: 30.3% of GDP (2011 est.)

Industry: 16.7% of GDP (2011 est.)

Department of Commerce, Foreign Commercial Service: www.trade.gov/cs Department of Commerce, Trade Compliance Center: tcc.export.gov/ReportaBarrier/index.asp Department of Commerce, Office of the Chief Counsel for International Commerce: http://www.ogc.doc.gov/trans_anti_bribery.html

Sources: Country’s Government, CIA World Factbook, US State Department Country Fact Sheets, International Monetary Fund, World Bank

TRADE & INVEST AFRICA

113

Mozambique

Republic of Mozambique This Southeast African country is renowned for its beautiful coral-reefed coastline, its national parks, islands, and historical cities. Following decades of civil war, this former Portuguese colony today is a stable, safe and economically bustling country. It is also on the verge of becoming a new African energy giant following the very recent discovery of massive natural gas fields off its coast.

later. FRELIMO did not allow any elections and declared the country a Marxist socialist state. This led to a civil war between the Soviet Union-backed FRELIMO and the anti-communist, South African-backed RENAMO from 1977 to 1992 in which an estimated one million Mozambicans perished, 1.7 million took refuge in neighbouring states, and several million more were internally displaced.

The country is located in Southeast Africa and is bordered by the Indian Ocean (2,500km of coastline) and several countries, including South Africa. Its population consists of Africans (99.6% made up of Makhuwa, Tsonga, Lomwe, Sena and others) and a small number of people of European (mainly Portuguese) and Asian (mainly Indian) descent, as well as some mixed race people.

The civil war, together with FRELIMO’s disastrous and inhumane socialist policies, all but destroyed the country.

After the death of President Samora Machel in a plane crash, his successor, Joachim Chissano instituted political and economic reforms. The civil war ended in October 1992 and the country slowly started flourishing as development aid and investment poured in. Today the country is a multi-party, presidential democracy under the 1990 constitution.

Settled by Bantu-speaking migrants between the 1st and 5th centuries AD, various Swahili and Arab commercial centres were established. From around 1500 Portuguese settlers started arriving and gradually colonised the country which was eventually declared an Overseas Province of Portugal in 1951.

In the 1950s various communist and anti-colonial organisations sprung up and by 1964 the Front for the Liberation of Mozambique (FRELIMO) had launched a guerrilla campaign against Portuguese rule. Following a leftist military coup in Portugal, control of the country was handed over to FRELIMO in 1974, with official independence following a year

114

Some 1,200 previously state-owned enterprises have been privatised. Both the World Bank and the IMF have remarked about the country’s remarkable recovery and growth, yet also pointed out that many challenges remain. However, the recent gas discoveries are set to further boost the development of the country. Mozambique is a member of the African Union (AU), Southern African Customs Union (SACU), Southern African Development Community (SADC), but quit as a member of the Common Market for Eastern and Southern Africa (COMESA) in 1997.

TRADE & INVEST AFRICA

Country Overview

General

Location: Southeast Africa, bordered by the Indian Ocean, South Africa, Swaziland, Zimbabwe, Zambia, Malawi and Tanzania.

Capital: Maputo (previously Lourenco Marques).

Languages: Official language is Portuguese; Swahili and various other indigenous African languages are also spoken.

Time Zone: UTC/GMT +2 hours.

Main Airport: Main airport is Maputo International Airport 5km northwest of Maputo.

International Dialling Code: +258.

Communications: Good fixed line telephone and fax services in major cities. Cell phone coverage is provided by two major mobile phone networks but is limited to major cities and some coastal locations - roaming agreements exist. Internet cafes are available in Maputo, while some hotels offer Internet connectivity.

Currency: New Metical ((as of August 2011, 1 USD is roughly equivalent to 27 New Meticals). US dollars and South African rand widely accepted.

Money & Cards: Credit cards are accepted in some of the more expensive hotels in Maputo, but facilities throughout the rest of the country are limited while ATMs are also scarce – carry cash or travellers’ cheques. Money can be changed at banks, Rennie’s or local dealers.

Taxes: VAT of 17% charged on most goods.

Entry Requirements: All foreigners need visas prior to their arrival, except South Africans staying less than 30 days.

Business or tourist visitors can obtain visas on arrival (at airport only) valid for a maximum of 30 days. Passports must be valid for at least 6 months.

Political

System: Republic; constitutional, multi-party democracy.

Independence: June 25, 1975 (from Portugal).

Government: President is head of state and government; assisted by a prime minister who oversees the cabinet.

The country is divided into provinces, districts, administrative posts and localities.

Legislature: Unicameral Assembly of the Republic.

Legal System: Mixed legal system of Portuguese civil law, Islamic law, and customary law.

Population: 22.9 million (2009 est.).

Economy

Gross Domestic Product: Total: US$23.886 billion (2011 est.).

Per Capita: US$1,085 (2011 est.).

Economic Growth: 7.1% (2011) – IMF forecasts 6.7% for 2012 and 7.2% in 2013.

Budget: US$4.176 billion (2011 est.)

Public Debt: 43% of GDP (2011 est.)

Current Account: -US$1.385 billion (2011 est.)

Exports / Imports: Exports: US$2.646 billion (2011 est.)

Imports: US$3.846 billion (2011 est.).

Foreign Exchange & Gold Reserves: US$2.141 billion (31 December 2011 est.)

TIA

Inflation: 5.12% (1st quarter 2012).

Unemployment: Approx. 21% (current government estimate).

Poverty: Approximately 70% live below poverty line (2012 est.) – special measures have been fast-tracked to bring poverty down.

Economic Sectors: Agriculture, fishing and forestry; mining and semi-processing; food production; manufacturing; tourism; telecommunications; and finance.

Natural Resources: Natural gas; marble; bentonite; coal; gold; bauxite; granite; titanium; and gemstones.

Agricultural Products: Sugar; copra; cashew nuts; tea; tobacco; meat; and fish. (Marine products are biggest exports; agriculture employs 80% of all workers).

Manufacturing Industries: Aluminium smelter; construction materials; agricultural processing; beverages; and consumer goods.

Major Banks: Various national and international banks including Millennium, Standard, Barclays, Banco Commercial e de Investimentes, International Commercial, Mauritius Commercial, and First National Bank.

Stock Exchange: Maputo Stock Exchange (Bolsa de Valores de Mozambique) opened 1999.

Major Private Companies: Mozal (aluminium smelter operated by BHP Billiton); Cahora Bassa Hydroelectric Dam; Moçambique Cellular (mCell); Petromoc; Sasol Petroleum Temane; Electricidade de Moçambique (EDM); Cervejas de Moçambique (CDM); Telecomunicações de Moçambique (TDM); C.M.C Africa Austral; BP Moçambique; SA Breweries; Standard Bank; Anglo American; Industrial Development Corporation of SA; Illovo; Basil Read; Eskom; and Southern Sun Hotels.

Major State-Owned Enterprises: Most state-owned enterprises have been privatised by the Technical Unit for Enterprise Restructuring.

Contacts

Ministry for Co-ordination of Environmental Action: Minister Alcinda Abreu – Tel +258 (0) 21 492403; Web http://www.micoa.gov.mz/.

Ministry of Energy: Minister Salvador Namburete - Tel +258 (0) 21 303265.

Ministry of Fisheries: Minister Victor Manuel Borges - Tel+258 (0) 21 300961; Fax +258 (0) 21 425087 Ministry of Industry & Commerce: Minister Antonio Fernando - Tel+258 (0) 21 352600; Email infomic@mic.gov.mz; Website http://www.mic.gov.mz/.

Ministry of Mineral Resources: Minister Esperança Bias - Tel +258 (0) 21 314843; Website http://www.mireme.gov.mz/.

Ministry of Finance: Minister Manuel Chang – Tel +258 (0) 21 315000; Fax +258 (0) 21 306261.

Mozambique-South Africa Chamber of Commerce and Industry (CCIMOSA): Contact - Antonio Matos; Tel +258 21 415 198; Email ccimosa@tvcabo.co.mz.

Mozambique Chamber of Commerce: Email: cacomo@teledata.mz.

Sources: Country’s Government, CIA World Factbook, World Bank, International Monetary Fund, and KPMG.

TRADE & INVEST AFRICA

115

Namibia

Republic of Namibia Namibia is renowned for its physical beauty consisting of harsh but beautiful desert landscapes, the cool Atlantic Ocean, the green plains of the north, the rugged mountains, and its rivers. The Namib with its shifting sand dunes and rare desert elephants is the oldest desert in the world.

The country is sparsely populated with only 2.1-million people (2011 census). Since early times Namibia was inhabited by Bushmen, Damara, and Nama, with Bantu people arriving since about the 14th century AD from central Africa, Orlam (mixed-race) clans and settlers of European and South African origin arriving from the Cape Colony (South Africa) from the 18th century onwards. In 1884 Germany claimed it as a colony.

The racial/ethnic composition of its population (2000 statistics) is Ovambo 34.4%; coloured (mixed-race) 14.5%; Kavangos 9.1%; Herero 5.5%; white (mainly German and South African origin) 6%; Damara 7%; Nama 4.4%; Caprivian 4%; San and Bergdama 7%; Kwambi 3.7%;Baster (mixed race) 2%; Tswana 0.5%; and other 1.5% During World War 1 South Africa occupied the colony known then as German South-West Africa on behalf of Great Britain and administered it as a mandate until after World War II, when it annexed the territory. In 1966 the then Marxist South-West Africa People’s Organization (SWAPO) launched a liberation struggle with independence eventually achieved under United Nations supervision in 1990. The country is a stable multiparty democracy but is politically dominated by SWAPO which has ruled since independence.

116

Namibia is dry and arid, but has significant water resources to the far north. It has a thriving agricultural sector and is blessed with a variety of mineral resources. Fishing and tourism are also important industries, while manufacturing makes up its biggest economic sector at 13.5% of gross domestic product (GDP).

Mining accounts for 13% of GDP, but provides more than 50% of foreign exchange earnings. Namibia is a primary source for gem-quality diamonds, is the world’s fourth-largest uranium producer, produces large quantities of zinc, and is a small producer of gold and other minerals. The country has a highly developed banking sector with modern infrastructure that includes online and cell phone banking.

The country has both high unemployment and poverty levels, but a number of legislative and other measures have been introduced to alleviate this. Cost of living is relatively low compared to other countries, according to the cost of living index published by xpatulatpor.com. It ranks Namibia’s capital, Windhoek, 617th out of 780 cities, with rank 780 being the least expensive on the scale.

Namibia’s economy is tied closely and historically to that of South Africa. It is a member of the Southern African Development Community (SADC) and of the Southern African Customs Union (SACU), the oldest customs union in the world. The country is party to a number of international environmental protection and climate change-related treaties and agreements.

TRADE & INVEST AFRICA

Country Overview

General Location: South-western Africa, bordered by South Africa, Botswana, Zambia, Angola and the Atlantic Ocean.

Capital: Windhoek.

Languages: English, plus German, Afrikaans and various other indigenous African languages.

Time Zone: Summer: GMT+ 2 hours from the 1st Sunday in September to the 1st Sunday in April.

Winter: GMT + 1 hour from the 1st Sunday in April to the 1st Sunday in September.

Main Airport: Hosea Kutako International Airport 40km (25 miles) from Windhoek.

International Dialling Code: +264.

Communications: Good fixed line, cellular and internet networks and services covering most of the country.

Currency: Namibian Dollar, or South African Rand (linked 1 : 1).

Credit Cards: American Express, Diners Club, MasterCard, Visa, Maestro and European Community credit/debit cards accepted – for others, check with your bank.

Travellers’ Cheques: Advisable to take travellers cheques in US dollars or South African rand.

Taxes: 15% VAT payable on goods and services.

Entry Requirements: Foreign visitors need passports valid for at least 6 months after date of entry. Visas required for most visitors – check with embassies for exemptions.

Political System: Republic / multiparty parliamentary democracy.

Independence: 21 March 1990 (from South African mandate).

Government: Head of State & Government is President who appoints Cabinet from National Assembly – Current President is Hifikepunye Pohamba.

Legislature: Bicameral parliament: National Council and National Assembly, both elected for 5-year terms.

Legal System: Mixed legal system, non-codified civil law based on Roman-Dutch law and customary law introduced from South Africa.

Population: 2.1-million (preliminary result 2011 census).

Economy Gross Domestic Product: Total: US$15.74 billion (2011 est.)

Per Capita: US7,363 (2011 est.)

GDP Growth: 3.6% (2011 est.)

Budget: Revenues of US$3.959 billion; expenditures of US$5.217 billion (2011 est.)

Surplus/Deficit: -9.7% of GDP (2011 est.)

Public Debt: 27.4% of GDP (2011 est.)

Current Account: US$108.7 million (2011 est.)

Exports / Imports: Exports US$4.568 billion (2011 est.); imports US$5.345 billion (2011 est.)

Foreign Exchange & Gold Reserves: US$1.542 billion (2011 est.)

Inflation: 5.3% (2011 est.)

Unemployment: Approx. 31% narrow definition; approx.

51% broad definition (2008 est.)

Poverty: Approx. 50% of population live below international poverty line of US$1.25 a day.

Economic Sectors: Manufacturing (14.4% GDP); Mining (13% GDP); Agriculture (13% GDP); tourism (14.5% GDP); fishing (4% GDP); retail; finance; and other services. (GDP percentages most recent estimates available.)

TIA

Natural Resources: Diamonds, copper, uranium, gold, silver, lead, tin, lithium, cadmium, tungsten, zinc, salt, hydropower.

Significant off-shore gas deposits. Also suspected deposits of oil, coal, and iron ore.

Agricultural Products: Millet, sorghum, peanuts, grapes, livestock, dairy products, fish.

Manufacturing Industries: Meatpacking, fish processing, dairy products, mining, electricity.

Major Banks: Central bank is Bank of Namibia; commercial banks include Bank Windhoek, First National Bank, Nedbank, Standard Bank.

Stock Exchange: Namibian Stock Exchange, Windhoek.

Major Private Companies: Rossing Uranium; Aggra (Cooperative) Ltd; AngloGold Ashanti Namibia; Bidvest Namibia; BP Namibia; FNB Namibia; CIC Holdings; Goldfields Namibia; Namdeb Diamond Corporation; Namibia Breweries; Grant Thornton Neuhaus; Ohlthaver List.

Major State-Owned Enterprises: NamPower; Air Namibia; National Petroleum Corporation; Offshore Development Company; Development Bank of Namibia; Telecom Namibia; Namibian Broadcast Corporation; Namibia Ports Authority; Namibia Wildlife Resorts; Namwater; Transnamib Holdings.

Contacts Office of the President: Tel: +264-61-270 7111• Fax: +264-61-24 5989 Minister of Trade & Industry (Dr Hage Geingob): Tel: +264 61 2837334 • Fax:+264 61 220148 Email: hgeingob@mti.gov.na Permanent Secretary of Trade & Industry (Dr Malan Lindeque): Tel: +264 61 283 7332 • Fax:+264 61 220 278 Email: mlindeque@mti.gov.na Namibia Investment Centre: Tel: +264 61 283 7335 • Fax: +264 61 220 278 Email: nic@mti.gov.na or artivol@mti.gov.na Industrial Development Directorate: Tel: +264 61 283 7328 Fax: +264 61 259 676 • Email: martina@mti.gov.na or shinyala@mti.gov.na International Trade Directorate: Tel: +264 61 283 7331• Fax:+264 61 253 865 Email: mwanyangapo@mti.gov.na Finance & Administration Directorate: Tel: +264 61 283 7337 • Fax:+264 61 238 607 Email: kuyonisa@mti.gov.na Ministry of Finance: Tel: +264 61 209 2931 • Fax: +264 61 22 7702 Ministry of Fisheries & Marine Resources: Tel: +264 61 2053911 (switchboard) Fax: +264 61 233 286 Web: www.mfmr.gov.na Ministry of Home Affairs & Immigration: Tel: +264 61 292 2111 • Fax: +264 61 292 2185 Namibia Chamber of Commerce & Industry: Tel: +264 61 228809 • Fax: +264 61 228009 Email: ncciinfo@ncci.org.na Chamber of Mines of Namibia: Tel: +264 61 237925 • Fax: +264 61 222638 Registrar of Companies: Tel: +264 61 22-6571 • Fax: +264 61 23-8643 Namibia Tourism Board: Tel: +264 61 290 6000 • Fax: +264 61 25 4848 Web: http://www.namibiatourism.com.na

Source: Government, CIA World Factbook, International Monetary Fund, World Bank

TRADE & INVEST AFRICA

117

Nigeria Federal Republic of Nigeria Nigeria is located in West Africa on the Gulf of Guinea. It is bordered by the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in the north. Nigeria is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The name Nigeria comes from the Niger River which was named by Flora Shaw, the future wife of Baron Lugard, a British colonial administrator, in the late 19th century.

Archaeological evidence shows that human habitation in Nigeria dates back to at least 9,000 BC with a region in the country thought to have been the original homeland of the Bantu people who later spread across Africa. Nigeria is Africa’s most populous country and the seventh most populous in the world. Its three major and most influential ethnic groups are the Hausa, Igbo and Yoruba. The north is predominantly Muslim and the south Christian. Since 2002 there has been periodic conflict in the north between militant Muslims, who want to establish sharia law, and government forces.

British influence and control over what would become Nigeria gradually grew and the country was formally colonised

by Britain in the late 1800s and early 1900s. A system of administrative structures was set up while local traditional chiefs were recognised. A series of constitutions that were implemented after World War II granted Nigeria considerable autonomy and in 1960 Nigeria achieved independence from Britain. Within a few years civil war erupted as Biafra sought to break away as a separate, independent state. These upheavals

118

were followed by a number of coups over the ensuing years, with military governments replacing the democratically elected government for almost two decades. In 1999 a new constitution was adopted and civilian rule returned. Despite irregularities and violence marring the 2003 and 2007 presidential elections the country is experiencing its longest period of civilian rule since independence.

Abundant oil reserves mainly in the Niger Delta have brought great wealth to the country, as well as corruption and more political violence by rebels as well as criminal gangs operating in the oil territories. Ordinary Nigerians complain that they have seen nothing of the oil wealth, saying the politicians have claimed it all for themselves. Nonetheless, economic growth has been substantial and Nigeria is listed as one of the “Next Eleven” economies of the world. Meanwhile the government faces the huge task of continuing the reforms started in 2008 ofitsa petroleum-based economy which has suffered from corruption and mismanagement. The capital-intensive oil sector provides 95% of foreign exchange earnings and about 80% of budgetary revenues.

Nigeria has received debt-restructuring loans and assistance from the Paris Club and IMF since about 2000, but only really started implementing the market-oriented reforms demanded by the IMF in 2008. Nigeria’s extensive financial sector suffered during the global financial and economic crises, but the Central Bank has implemented measures to restructure and strengthen the sector.

TRADE & INVEST AFRICA

Country Overview

General Location: West Africa on the Gulf of Guinea

Capital: Accra Languages: English (official); several indigenous languages.

Time Zone: Ghana Standard Time - GMT (UTC) +0 (no daylight saving time).

Main Airport: Kotaka International Airport, Accra.

International Dialling Code: +233.

Communications: Privatised Ghana Telecom operates reliable fixed line telephone system with abundant pay-phones; mobile telephones are common, especially in cities, with 4 cell phone service providers; Accra has more than 500 internet cafes, plus many also in other cities; many ‘communication centre’ businesses provide public telephone & dial-up internet services; and most good hotels and lodges have internet facilities.

Currency: The Cedi.

Credit Cards: Number of good banks including Barclays and Standard Chartered Banks exchange cash and the better known travellers’ cheques without commission; ATMs and foreignexchange (forex) bureaus in all major towns; major credit cards accepted widely.

Taxes: VAT of 12.5% payable on goods and services.

Entry Requirements: Visas required by all except ECOWAS nationals; nationals of most countries can receive a tourist visa onarrival at the Kotaka Airport; passports should be valid for at least six months.

Political System: Constitutional democracy

agriculture; mining; energy; lumbering.

Natural Resources: Crude oil; natural gas; timber; diamond; bauxite; manganese; and gold.

Agricultural Products: Cocoa; rice; cassava (manioc); peanuts; corn; shea nuts; bananas; timber.

Manufacturing Industries: Mining-related; lumbering; light manufacturing; aluminium smelting; food processing; cement; small commercial ship building.

Major Banks: Access Bank Ghana; Agricultural Development Bank of Ghana; Bank of Africa; Bank of Baroda; Barclays Bank; Banque Sahélo-Saharienne pour l’Investissement et le Commerce (BSIC); CAL Bank; Energy Bank; Fidelity Bank Ghana Limited; First Atlantic Merchant Bank Ghana; First International Capital Bank; Ghana Commercial Bank; Guaranty Trust Bank (Ghana); International Commercial Bank; Société Générale Social Security Bank; Stanbic Bank; Standard Chartered Bank; and more.

Stock Exchange: Ghana Stock Exchange (GSE) (3rd largest stock exchange in Africa) Major Private Companies: Accra Brewery Co; African Champion Industries; Aluworks; Benso Oil Palm Plantation; Camelot Ghana; Clydestone Ghana; Enterprise Insurance; Guinness Ghana Breweries; Mechanical Lloyd; Pioneer Kitchen Ware; Sam Woode Ltd; Starwin Products; Transol Solutions Ghana; Volta Aluminium Company; CAL Bank; Ghana Oil Company; Ghana Commercial Bank; and more.

Major State-Owned Enterprises: Ghana Broadcasting Corporation; Ghana News Agency; Ghana National Petroleum Corporation; Ghana Post; Ghana Railway Corporation.

Contacts

Independence: 1957 Government: President is head of state and government – he appoints Council of Ministers subject to approval by Parliament.

Legislature: Unicameral Parliament (230 seats; members elected by direct, popular vote in single-seat constituencies to serve four-year terms).

Legal System: Supreme Court; High Court; Court of Appeal; regional tribunals; mixed system of English common law and customary law.

Population: 24,652,402 (July 2012 est.)

Economy

TIA

Gross Domestic Product: US$75.66 billion (2011 est.)

GDP Growth: 14.4% (2011 est.)

Budget: Revenues: $8.5 billion; expenditures: $10.08 billion (2011 est.).

Surplus/Deficit: -4.2% of GDP (2011 est.)

Public Debt: 38.2% of GDP (2011 est.)

Current Account: -US$3.675 billion (2011 est.)

Exports / Imports: Exports: US$12.79 billion (2011 est.); US$15.97 billion (2011 est.).

Foreign Exchange & Gold Reserves: US$5.805 billion (2011 est.)

Inflation: 8.7% (2011 est.)

Unemployment: 11% (2000 est.)

Poverty: 28.5% (2007 est.)

Economic Sectors: Services; manufacturing; tourism;

Ghana Airports Company: Tel: +233 (0)21 761009 Standard Chartered Bank : Tel: +233 (0)21 664590-9 Ghana Commercial Bank: Tel: +233 (0)21 664914-9, 663539, 666841-2 Barclays Bank: Tel: +233 (0)21 664901-5 Bank of Ghana : Tel: +233 (0)21 66690, 666365 Ghana Tourist Board: Tel: +233 (0)21 23 1779, 22 2153 Ministry of Tourism : Tel: +233 (0)21 66 6314 Ministry of Interior : Tel: +233 (0)21 662142, 667450, 662688 Information Services Department: Tel: +233 (0)21 227102 Ministry of Foreign Affairs & Regional Integration: Te l : +233 (0)21 664008, 664951 Ghana Investment Promotion Centre: Tel: +233 302 665125 /665126/ 665127/ 665128/665129 Email: info@gipcghana.com Ghana Stock Exchange: Tel: +233-30-2669908; +233-302669935; +233-30-2669914; +233-30-2664715 Ghana Chamber of Commerce: Tel: +233 (0)30 2662860; info@ ghanachamber.org

Source: Government, CIA World Factbook, International Monetary Fund, World Bank

TRADE & INVEST AFRICA

119

South Africa

Republic of South Africa South Africa is truly a world in one country with its vast extremes and great variety seen in everything from its climate, to its vegetation, geology, scenery, animals, cultures, people, economic development and much more. Climate ranges from moderate Mediterranean, to humid sub-tropical, the cool Highveld climate of its central plateau, and more.

In July 2011 Statistics South Africa estimated the country’s population as 50.59 million. The most populous area is Gauteng Province (comprising three large cities) with some 11.3 million people. There are some 17 ethnic/language/cultural groups made up of the Nguni (Zulu, Xhosa, Ndebele and Swazi people); Sotho-Tswana (including the Southern, Northern and Western Sotho, and Tswana people); Tsonga; Venda; Afrikaners; English; coloureds (mixed race); Indians; Chinese; small remaining numbers of the original inhabitants of the region, namely the Khoi and San (Bushmen); and other immigrants from the rest of Africa, Europe and Asia.

Modern humans have lived here for over 100,000 years, and their ancestors for some 3.3 million years. The earliest inhabitants were the Khoekhoen pastoralists and San huntergatherers. Later Bantu-speaking agro-pastoralists began arriving from elsewhere in Africa, with the first Dutch and other European settlers arriving from 1652. The Dutch colonised the Cape of Good Hope. Later Britain took possession of the Cape and Natal Colonies. Afrikaners of mainly Dutch, French and German origin rejected British rule and established the independent Boer republics of Transvaal and the Orange Free State in the interior.

Following vast gold discoveries in Transvaal, Britain seized the Boer republics following three years of the devastating South African War (Anglo-Boer War). The former republics

120

and colonies united into the Union of South Africa in 1910.

In 1948 the National Party came to power and formalised apartheid, exiting from the British Commonwealth after declaring a republic in 1961. The African National Congress (ANC) and the Pan-Africanist Congress (PAC) launched their liberation struggles. Following constitutional negotiations South Africa held its first non-racial democratic elections in 1994, after which the ANC came to power. It remains in power and dominates the country politically, except in one of the nine provinces, the Western Cape, where the opposition Democratic Alliance (DA), an amalgamation of former white liberal parties and the erstwhile National Party, but now with a growing coloured and black support base also, is dominant.

The country is the regional economic powerhouse and also Africa’s biggest economy. Major economic activity or industries include mining, steel, manufacturing, petro-chemicals, agriculture, fishing, financial services and retail. The country has a world-class, sophisticated banking system dominated by four major banking groups. The South African Reserve Bank is the central bank.

South Africa is a member of the BRICS group – Brazil, Russia, India, China and South Africa. While in size it does not match the populations or economies of the other four BRICS members, South Africa is recognised as the gateway to Africa.

It is also the leading country in both the Southern African Development Community (SADC) and the Southern African Customs Union (SACU), the world’s oldest customs union, is a member of the G20 group of major economies, a member of the African Union (AU), and a non-permanent member of the UN Security Council.

TRADE & INVEST AFRICA

Country Overview

General Location: Southern Africa, bordered by the Indian Ocean, Atlantic Ocean, Namibia, Botswana, Zimbabwe and Mozambique. Two landlocked sovereign states, Lesotho and Swaziland, are within its territory.

Capital: Pretoria (executive); Cape Town (legislative); Bloemfontein (judicial).

Languages: English is the lingua franca – it is also one of 11 official languages.

Time Zone: UTC/GMT +2 hours - no daylight saving time.

Main Airport: O R Tambo International, Johannesburg – international airports in all major cities.

International Dialling Code: +27, followed by local area code and the number.

Communications: World-class fixed line, cellular and internet networks and services covering all of the country.

Currency: Rand, dividing into 100 cents.

Money & Cards: All major credit cards, travellers’ cheques, currency exchanges, cash transfers by money orders or internet.

Taxes: 14% VAT charged on most goods and services refunded when leaving country.

Entry Requirements: Most EU countries, Japan, and USA don’t require visas - others have to apply for visas before travelling.

Political System: Republic; constitutional multi-party democracy.

Government: President is head of state and of government and is appointed by majority party in parliament; president appoints cabinet; provinces are headed by premiers who appoint provincial executive councils; municipalities (including metros) are headed by mayors/executive mayors, who appoint executive committees.

Legislature: Two-chamber national parliament (National Assembly and Council of Provinces); provincial legislatures in the nine provinces; and city/municipal councils.

Legal System: A hybrid of predominantly Roman-Dutch law; British common law; and customary/traditional African law – Constitutional Court is the highest court, followed by Supreme Court of Appeals and various High Courts and specialised courts, regional courts and magistrates’ courts.

Population: 50.59 million (July 2011 est.)

Economy Gross Domestic Product: Total: US$364 billion (2012 est.).

Per capita: US$7,280 (2012 est.).

GDP Growth: 2.8% current.

National Budget: US$128 billion (2012 est.)

Surplus/Deficit: -5.2% of GDP (2011 est.)

Public Debt: 35.6% of GDP (2011 est.)

Current Account: -16.67% of GDP (2011 est.)

Exports / Imports: Exports: US$94.21 billion (2011 est.).

Imports: US$92.86 billion (2011 est.).

Foreign Exchange & Gold Reserves: US$50.26 billion (December 2011).

Inflation Rate: 6.1% (April 2012).

Unemployment Rate: 25.2% narrow definition (1st quarter 2012)

TIA

Poverty: 47.% live below lower bound poverty line (Statistics SA 2009) Natural Resources: Platinum; kyanite; chromium; palladium; vermiculite; vanadium; zirconium; manganese; rutile; ilmenite; gold; fluorspar; aluminium; antimony; iron ore; nickel; phosphate rock; diamonds; coal; and natural gas.

Agricultural Products: Maize and other crops; chicory roots; grapes; wine; citrus fruit; other fruit; sisal; fibre crops; nuts; tobacco; wool; sugar; meat; milling products; malt; starch; dairy products; ostrich products; game; tea; flowers; and more.

Manufacturing Industries: Automotive; steel; telecommunications; information technology; shipping; electronics; furniture and appliances; plastics; paper and wood; agricultural products; petro-chemicals; construction and building materials; glass; clothing; fabrics; and more.

Major Banks: Absa (part of UK Barclays); Standard; First National; Nedbank; Capitec; various smaller banks; and various foreign banks – South African Reserve Bank is the central bank.

Stock Exchange: Johannesburg Stock Exchange – 120 years in existence, Africa’s premier exchange, and 18th biggest globally in terms of market capitalisation.

Major State-Owned Enterprises: Transnet; Eskom; SA Airways; Denel; Alexkor; Safcol; Broadband Infraco; and SA Express.

Contacts Office of the President: Tel: +27 (0) 12 300 5200; Fax +27 (0)12 323 8246.

Minister of Trade & Industry: Minister Dr Rob Davies - Ministry (Pretoria Office): Tel +27(0)12 394 9500, Fax +27(0)12 341 1600.

Department of Trade & Industry: Director-General Mr Lionel October - Department (Pretoria office): Tel +27 (0)12 394 3075, Fax +27 (0)12 394 0323, Email loctober@thedti.gov.za or contactus@thedti.gov.za.

Ministry of Finance: Minister Pravin Gordhan - Ministry (Pretoria Office): Tel +27 (0) 12 323 8911, Fax +27 (0) 12 323 3262, Email minreg@treasury.gov.za.

National Treasury: Director-General Mr Lungisa Fuzile Department (Pretoria Office): Tel +27 (0) 12 315 5904, Fax +27 (0) 12 328 5145, E-mail juanita.jansen@treasury.gov.za.

Companies & Intellectual Property Commission: Commissioner Ms Astrid Ludin - Tel +27 (0)86 100 2472 (CIPC), Fax +27 (0)86 517 7224, Email info@cipc.co.za.

Small Enterprise Development Agency: CEO Ms Hlonela Lupuwana - Tel +27 (0)12 441 1000, Fax +27 (0)12 441 2064, Email info@seda.org.za.

Ministry of Home Affairs: Minister Dr Nkosazana DlaminiZuma - Tel +27 (0) 12 432 6648 (Hotline: 0800 20 44 76), Fax +27 (0) 12 432 6675, Email minister@dha.gov.za.

Johannesburg Stock Exchange: No 1 Exchange Square, Gwen Lane, Sandown, 2196, Johannesburg; Tel +27 (0) 11 520-7000; Web http://www.jse.co.za/Home.aspx.

Chamber of Mines of South Africa: Tel +27 (0) 11 498 7100, Fax +27 (0)11 834-1884, Email webmaster@bullion.org.za.

SA Chamber of Commerce & Industry: CEO Mr Neren Rau Tel +27 (0) 11 446 3800, Fax +27 (0) 86 532 7357, Email ceo@sacci.org.za.

Sources: South African Government, World Bank, CIA World Factbook, International Monetary Fund.

TRADE & INVEST AFRICA

121

Swaziland

Kingdom of Swaziland The Kingdom of Swaziland is Africa’s last absolute monarchy and among the smallest countries in the Southern Hemisphere. Completely landlocked, it is nestled in mountains, surrounded by South Africa and Mozambique. King Mswati III has ruled over this tiny country since 25 April 1986.

Swaziland is a country of temperate climate, summer rainfall and rugged grandeur. The total population is about 1.3-million (2012 est.) of which 97% are Africans, descendant of the Bantuspeaking agro-pastoralists that migrated southwards around the 3rd century AD. During the Anglo-Boer War (1899-1902) in neighbouring South Africa, Swaziland became a protectorate under British control. It was granted independence in 1968.

Resistance has been building among the populace against the hereditary and absolute power of the monarch who, as the head of state, appoints the prime minister, who in turn recommends the cabinet for confirmation by the monarch.

There are thus no elections in the executive branch of government. In 2006 the country’s constitution came into effect, but political reform has been slow, if not static, and the status of opposition political parties remains unclear. Amidst extensive state propaganda and censorship, social unrest has long been simmering, at times resulting in public protests that are usually suppressed by police loyal to the monarch.

Swaziland’s economy is heavily dependent on South Africa.

Its currency is pegged to the South African rand and more than 90% of its imports are South African in origin, while

122

the bulk of its primary export product (sugar) goes to South Africa. The country has long relied for its survival on its share of revenue from the Southern African Customs Union (SACU).

However, the global economic crisis negatively affected this source of income, causing a financial crisis in Swaziland.

Bailouts promised by the African Development Bank (AfDB), International Monetary Fund (IMF) and the World Bank (WB) were withdrawn due to Swaziland’s failure to implement prerequisite political and economic reforms. Only South Africa’s US$300 million loan offer to Swaziland still stands, but is also conditional to reforms.

King Mswati III has recently been heavily criticised over his lavish lifestyle while his country suffers economic hardships and one of the highest HIV infection rates in the world at 25% of the population. Consequently, Swaziland also has the lowest life expectancy in the world at 50 years.

Natural resources are limited by the country’s size and in recent years mining has declined to the point where only a few stone quarries and coal mines remain active. Diversification in the manufacturing sector has been slow. With approximately 70% of the population employed in subsistence agriculture, overgrazing, soil depletion, rapidly diminishing forests and drought are serious concerns. Unemployment and poverty rates are high. Swaziland’s need to attract foreign direct investment and increase the number of viable enterprises is critical.

TRADE & INVEST AFRICA

General Location: Southern Africa, between Mozambique and South Africa.

Capital: Mbabane (administrative capital); Lobamba (traditional and legislative capital).

Languages: English (official, used for government business); siSwati (official).

Time Zone: GMT + 2 Main Airport: Matsapha International Airport, near Manzini (new one under construction).

International Dialling Code: +268 Communications: Modern, but low-capacity fixed-line telephone system and single cellular service provider with good network coverage.

Currency: Lilangeni (Emalangeni plural), equal value to South African Rand.

Credit Cards & Travellers’ Cheques: Most credit cards and travellers’ cheques honoured.

Taxes: 14% VAT payable on goods and services since April 1, 2012. Airport embarkation tax payable on departing international flights.

Entry Requirements: All visitors must have a valid passport.

Visas are required, although nationals of many African, European

Political System: Absolute monarchy.

Independence: 6 September 1968 (from the UK) Government: Hereditary monarch appoints prime minister from elected members of House of Assembly. Cabinet recommended by prime minister and confirmed by monarch.

Head of State: King Mswati III (Since 25 April 1986). Head of Government: Prime Minister Barnabas Dlamini (Since 16 October 2008) Legislature: Bicameral parliament consists of 30-seat Senate, 10 members appointed by House of Assembly and 20 by monarch. House of Assembly consists of 65 seats, 10 members appointed by monarch, 55 elected by popular vote. Members of Senate and House of Assembly to serve five-year terms.

Legal System: Mixed legal system of civil, common, and customary law.

Population: 1,386,914 (July 2012 est.

Economy Gross Domestic Product (Purchasing Power Parity): Total: US$6.12-billion (2011 est.)

Per Capita: US$5,200 (2011 est.)

GDP Growth: -2.1% (2011 est.)

Budget: Revenues: US$1.006-billion (2011 est.)

Expenditures: US$1.488-billion (2011 est.)

Surplus / Deficit: -12.6% of GDP (2011 est.)

Current Account: US$ -461.8-million (2011 est.)

Exports / Imports: Exports: US$1.965-billion (2011 est.)

Imports: US$2.035-billion (2011 est.)

Foreign Exchange & Gold Reserves: US$603 million (2011 est.)

Inflation: 8% (2011 est.)

Unemployment Rate: 40% (2006 est.)

Poverty: 69% of population below international poverty line of US$1.25 a day (2006 est.)

Economic Sectors: Agriculture: 8.2% of GDP (2011 est.)

Industry: 46.9% of GDP (2011 est.)

Services: 44.9% of GDP (2011 est.)

Natural Resources: Asbestos; coal; clay; cassiterite;

hydropower; forests; small gold and diamond deposits; quarry stone; talc.

Agricultural Products: Sugarcane; cotton; corn; tobacco; rice; citrus; pineapples; sorghum; peanuts; cattle; goats; sheep.

Manufacturing Industries: Coal; wood pulp; sugar; soft drink concentrates; textiles; apparel.

Major Banks: Central Bank of Swaziland; Barclays Bank of Swaziland Ltd; First National Bank Swaziland Ltd; Standard Bank Swaziland Ltd; Nedbank Swaziland Ltd. Stock Exchange: Swaziland Stock Exchange (SSX), based in Mbabane.

Major Private Companies: Royal Swaziland Sugar Corporation Ltd; BP Swaziland (Pty) Ltd; Total Swaziland (Pty) Ltd; Swaziland Fruit Canners (Pty) Ltd; Bell Equipment Co Swaziland (Pty) Ltd; Peak Forest Products (Pty) Ltd; Maloma Colliery Ltd; Usutu Pulp Company Ltd; Ngwane Mills (Pty) Ltd. Major State-Owned Enterprises: Swaziland Post and Telecommunications Corporation (SPTC); Swaziland Electricity Company Ltd; Swaziland Railway; Swaziland National Provident Fund; Komati Basin Water Authority; Swaziland Investment Promotion Authority (SIPA); Swaziland Royal Insurance Corporation (SRIC); Swaziland Broadcasting and Information Service.

Contacts Secretary to Cabinet and Head of the Public Service: Contact: Mbuso C. Dlamini - Tel: +268 2404 2251; Email: dlaminimb@gov.sz Ministry of Natural Resources and Energy: Tel: +268 2404 2644; Fax: +268 2404 4851; Email: nergyswa@realnet.co.sz Ministry of Information, Communications and Technology: Tel: +268 2404 5826; Fax: +268 2404 1898; Email: ps_mict@gov.sz Ministry of Agriculture: Tel: +268 2404 2731; Fax: +268 2404 4730; Email: ps@agriculture.gov.sz Ministry of Home Affairs: Tel: +268 2404 2941; Fax: +268 2404 4303.

Ministry of Commerce, Industry and Trade: Tel: +268 2404 3201; Fax: +268 2404 4711; Email: mcit@gov.sz Ministry of Economic Planning and Development: Tel: +268 2404 3765; Fax: +268 2404 2157; Email: ps@planning.gov.sz Ministry of Public Works and Transport: Tel: +268 2409 9000; Fax: +268 2404 2364 Ministry of Labour and Social Security: Tel: +268 2404 1971; Fax: + 268 2404 1966; Email: deptlab@realnet.sz Ministry of Foreign Affairs and International Cooperation: Tel: +268 2404 2661; Fax:+268 2404 2669; Email: psforeignaffairs@realnet.co.sz Ministry of Housing and Urban Development: Tel: +268 2404 6049; Fax: +268 2405 0697; Email: ps_housing@gov.sz Ministry of Tourism and Environmental Affairs: Tel: +268 2404 6162; Email: ps_tourism@gov.sz Ministry of Finance: Tel: +268 2404 8145; Fax: +268 2404 3187; Email: ps@finance.gov.sz Federation of Swaziland Employers and Chamber of Commerce: Tel: +268 2404 0768; Fax: +268 2409 0051

Sources: Country’s Government, CIA World Factbook, US State Department Country Fact Sheets, International Monetary Fund

TRADE & INVEST AFRICA

123

Tanzania United Republic of Tanzania

Situated just below the equator, Tanzania is the largest country in East Africa and is bordered by Kenya in the north, Rwanda, Burundi and Lake Tanganyika in the west, Zambia, Malawi and Mozambique in the south, and the Indian Ocean in the east.

The country is famous for the great spectacle of the annual migration of millions of wildebeest and zebra followed by their predators. But it is equally famous for being home to the highest mountain on the continent, Mt Kilimanjaro; the Great Rift Valley; the awesome Ngorongoro Crater; its legendary spice islands; and the famous Serengeti National Park which encompasses two World Heritage Sites, two Biosphere Reserves, and one of the world’s oldest ecosystems.

Human presence in Tanzania dates back more than 2-million years. Until Bantu-speaking tribes started arriving in the region from West Africa about two-thousand years ago, the area was populated by Cushitic and Khoisan-speaking hunter-gatherer communities. After them came the arrival of Nilotic pastoralists until the 18th century. About this time Arabs started settling along the coastal strip and in 1840 Omani Sultan Seyyid Said moved his capital to Zanzibar City, making the island the centre for the Arab slave trade. Tanzania;s population of about 47-million consists of more than 120 ethnic groups, and also includes people of Arab, Indian, and Pakistani origin, and small European and Chinese communities.

In the late 1800s Imperial Germany seized the regions now known as Tanzania, Rwanda and Burundi, but not Zanzibar,

124

incorporating them into German East Africa. After World War I Tanzania was made a British Mandate while Burundi and Rwanda were ceded to Belgium. Tanzania achieved independence from Britain in 1961, and Zanzibar and Pemba in 1963. After the Zanzibar Revolution overthrew the Arab dynasty in Zanzibar they merged to form the nation of Tanzania in 1964. One-party rule – until 1985 under President Julius Nyerere - ended in 1995 with the first democratic elections held in the country since the 1970s. Today the country is a stable, multi-party democracy.

Failed socialist policies and heavy borrowing ruined Tanzania economically under Nyerere, but political and economic reforms instituted from the mid-1980s have turned the country around. Although being one of the world’s poorest economies in terms of per capita income, Tanzania averaged 7% GDP growth per year between 2000 and 2008 on strong gold production and tourism. The economy is largely based on tourism, agriculture (accounting for more than half of GDP), gold and other mining and, more recently, natural gas extraction. Despite being the third-largest producer of gold in Africa after South Africa and Ghana, the mineral sector has yet to start contributing significantly to the overall Tanzanian economy, and industry is still mainly limited to processing agricultural products and light consumer goods. Privatesector growth and investment has been stimulated by recent banking reforms.

TRADE & INVEST AFRICA

Country Overview

General Location: Central Africa, straddling the equator, just above

Lake Victoria.

Capital: Kampala Languages: English, Swahili plus 30 indigenous languages.

Time Zone: EAT; GMT/UTC + 3hrs Main Airport: Entebbe International Airport 35 km from Kampala.

International Dialling Code: +256 Communications: Good fixed line and cellular phone service provided by privatised Uganda Telecom; good cell phone network with 6 network operators: MTN, Airtel, UT Mobile, Warid, Orange Uganda, and Essar; if no roaming agreement is available and phone is not network-locked, sim cards can be bought locally; good internet network and accessibility - 11 licensed Internet service providers; many internet cafes in Kampala, other major centres; most good hotels have internet facilities and connectivity.

Currency: Uganda shilling.

Banking & Credit Cards: Post-2000 US dollar very welcome, Euro and Pound Sterling also widely accepted; Money can be changed at banks and private bureaux de change in all large towns; Travellers’ cheques not widely accepted outside Kampala; Visa and other major credit cards accepted – also at selected ATMs in Kampala, Entebbe airport, and in some other towns, although ATMs mostly do not take MasterCard; Various international and local banks provide good services.

Taxes: 18% VAT payable on certain goods and services.

Entry Requirements: Travellers from most non-African countries need visas – can be purchased at airport, border posts, or Ugandan embassies.

Political

TIA

products, tea, cotton, flowers, horticultural products.

Manufacturing Industries: Brewing, textiles, cement, steel.

Major Banks:ABC Capital Bank; Bank of Africa; Bank of Baroda; Bank of India (Uganda); Barclays Bank; Cairo International Bank; Citibank Uganda Limited; Imperial Bank Uganda; United Bank for Africa; Stanbic Bank; Ecobank Uganda; Standard Chartered Bank; and more.

Stock Exchange: Uganda Securities Exchange, Kampala Major Private Companies: British American Tobacco Uganda; Bank of Baroda Uganda; Development Finance Company of Uganda Ltd; East African Breweries Limited; Jubilee Holdings Limited; Stanbic Bank Uganda; Uganda Clays Limited; National Insurance Corporation; Centum Investment Company Ltd; MTN Uganda; Zain Uganda; Madhvani Group; and AYA Investments.

Major State-Owned Enterprises: Uganda Railways Corporation; National Water & Sewerage Corporation; Uganda Tea Corporation; Uganda Development Bank;

Contacts Government Services Uganda: Tel +256 (0)414 230 990; +256 (0)414 231 990 Uganda Revenue Authority: (Customs) - Tel +256 (0) 417 443000/ +256 (0) 417 440000 Uganda Securities Exchange: Tel +256 - 414 - 259-585, 342818, +256 - 312 - 370-815, 370-817, 370-818 Uganda Investment Authority: Tel +256 (0) 414 301110/ +256 (0) 414 301112 Uganda Tourist Board: Tel +256 (0)414 342196/7 Standard Chartered Bank: Tel +256 (0)414 258211-4,0414 258217 Bank of Uganda: Tel +256 (0)414 233680

System: Republic; multi-party constitutional democracy.

Independence: 1962 Government: President is head of state and government; elects cabinet from among elected members of National Assembly.

Legislature: Unicameral National Assembly.

Legal System: Judges appointed by president; mixed legal system of English common law and customary law.

Population: 33,640,833 (July 2012 est.)

Economy Gross Domestic Product:$47.78 billion (2011 est.)

GDP Growth Rate: 5.1% (2011 est.)

Budget: revenues: $2.891 billion expenditures: $3.557 billion (2011 est.)

Surplus/Deficit:-3.9% of GDP (2011 est.)

External Debt:$3.486 billion (31 December 2011 est.)

Current Account: -$1.631 billion (2011 est.)

Exports / Imports: Exports: $2.519 billion (2011 est.); Imports: $5.002 billion (2011 est.)

Foreign Exchange & Gold Reserves: $2.617 billion (2011 est.)

Inflation: 18.7% (2011 est.)

Poverty: 24.5% (2009 est.) below poverty line.

Economic Sectors:Mining, agriculture, oil, manufacturing, services.

Natural Resources: Copper, cobalt, oil, gold.

Agricultural Products: Coffee, sugar, tobacco, fish and fish

Source: Government, CIA World Factbook, International Monetary Fund, World Bank, Wikipedia

TRADE & INVEST AFRICA

125

Uganda

Republic of Uganda

Ironically, Uganda is a landlocked country in East Africa despite the fact that its southern border hugs the shoreline of Lake Victoria, the biggest lake in Africa and the world’s second largest fresh water lake. This relatively small country is situated largely on a plateau astride the Equator in East Africa. Despite its dark past under the rule of the dictator Idi Amin, it has a reputation for being Africa’s friendliest country. Uganda is bordered by Kenya to the east, by South Sudan on the north, by the Democratic Republic of the Congo on the west, and by Lake Victoria, Rwanda and Tanzania to the south.

With an estimated population of 33.6-million people, of which 12.5% live in urban areas, Uganda is one of the most populous countries in Africa. There are four main ethnic groups in Uganda.

The largest in number are the Bantu tribes who occupy the central and western regions of the country, followed by the Nilotics occupying the north-central region, the Nilo-Hamitics who occupy the eastern and north-eastern parts, and the Nilo-Hamitic groups in the north-west. Each group is made up of several tribes, making Uganda a multi-cultural and multi-lingual country, with around 40 different languages being used. There are also small communities of Asian, Arab and European origin. English is the official language, with Swahili being the second official language (used mostly in the north). Luganda is also widely spoken.

Arab traders moved into Uganda from their coastal enclaves along the Indian Ocean in the early 1800s. They found several African kingdoms with well-developed political institutions dating back several centuries, of which the most important were Buganda in

126

central Uganda, and the kingdom of Bunyoro-Kitara located to the north and west of Buganda. By the 1860s British explorers travelled to the area and were soon followed by Christian missionaries who settled there. The country was gradually colonised by Britain between 1888 and 1914. Uganda’s first legislature – which initially excluded Africans – was established in 1921. In October 1962 Uganda achieved independence from Britain and Milton Obote became the first prime minister.

While cotton became the economic mainstay of Uganda in colonial times and agriculture is still the most important economic sector, the country also has substantial natural resources. Coffee, fish and tea are the major export products.

Uganda has recorded exceptional macroeconomic performance since the early 1990s, with growth supported by responsible fiscal policy, prudent monetary management, a sound banking sector, and substantial donor assistance. Most state-owned enterprises have been privatised and the economy deregulated. However, corruption is rife.

The country also has an important tourism sector that embraces the East African savannah and the tropical West African jungle, an impressive range of antelope and predators as well as some of the most amazing forest primates in the world and over 1,000 bird species and much more. While politically stable in recent years and with most of the country considered to be safe, some outlying border regions have for years been plagued by the atrocities of the rebel Lord’s Resistance Army.

TRADE & INVEST AFRICA

Country Overview

General

Location: Central Africa, straddling the equator, just above Lake Victoria.

Capital: Kampala Languages: English, Swahili plus 30 indigenous languages.

Time Zone: EAT; GMT/UTC + 3hrs Main Airport: Entebbe International Airport 35 km from Kampala.

International Dialling Code: +256 Communications: Good fixed line and cellular phone service provided by privatised Uganda Telecom; good cell phone network with 6 network operators: MTN, Airtel, UT Mobile, Warid, Orange Uganda, and Essar; if no roaming agreement is available and phone is not network-locked, sim cards can be bought locally; good internet network and accessibility - 11 licensed Internet service providers; many internet cafes in Kampala, other major centres; most good hotels have internet facilities and connectivity.

Currency: Uganda shilling.

Banking & Credit Cards: Post-2000 US dollar very welcome, Euro and Pound Sterling also widely accepted; Money can be changed at banks and private bureaux de change in all large towns; Travellers’ cheques not widely accepted outside Kampala; Visa and other major credit cards accepted – also at selected ATMs in Kampala, Entebbe airport, and in some other towns, although ATMs mostly do not take MasterCard; Various international and local banks provide good services.

Taxes: 18% VAT payable on certain goods and services.

Entry Requirements: Travellers from most non-African countries need visas – can be purchased at airport, border posts, or Ugandan embassies.

Political

TIA

products, tea, cotton, flowers, horticultural products.

Manufacturing Industries: Brewing, textiles, cement, steel.

Major Banks:ABC Capital Bank; Bank of Africa; Bank of Baroda; Bank of India (Uganda); Barclays Bank; Cairo International Bank; Citibank Uganda Limited; Imperial Bank Uganda; United Bank for Africa; Stanbic Bank; Ecobank Uganda; Standard Chartered Bank; and more.

Stock Exchange: Uganda Securities Exchange, Kampala Major Private Companies: British American Tobacco Uganda; Bank of Baroda Uganda; Development Finance Company of Uganda Ltd; East African Breweries Limited; Jubilee Holdings Limited; Stanbic Bank Uganda; Uganda Clays Limited; National Insurance Corporation; Centum Investment Company Ltd; MTN Uganda; Zain Uganda; Madhvani Group; and AYA Investments.

Major State-Owned Enterprises: Uganda Railways Corporation; National Water & Sewerage Corporation; Uganda Tea Corporation; Uganda Development Bank;

Contacts Government Services Uganda: Tel +256 (0)414 230 990; +256 (0)414 231 990 Uganda Revenue Authority: (Customs) - Tel +256 (0) 417 443000/ +256 (0) 417 440000 Uganda Securities Exchange: Tel +256 - 414 - 259-585, 342818, +256 - 312 - 370-815, 370-817, 370-818 Uganda Investment Authority: Tel +256 (0) 414 301110/ +256 (0) 414 301112 Uganda Tourist Board: Tel +256 (0)414 342196/7 Standard Chartered Bank: Tel +256 (0)414 258211-4,0414 258217 Bank of Uganda: Tel +256 (0)414 233680

System: Republic; multi-party constitutional democracy.

Independence: 1962 Government: President is head of state and government; elects cabinet from among elected members of National Assembly.

Legislature: Unicameral National Assembly.

Legal System: Judges appointed by president; mixed legal system of English common law and customary law.

Population: 33,640,833 (July 2012 est.)

Economy Gross Domestic Product:$47.78 billion (2011 est.)

GDP Growth Rate: 5.1% (2011 est.)

Budget: revenues: $2.891 billion expenditures: $3.557 billion (2011 est.)

Surplus/Deficit:-3.9% of GDP (2011 est.)

External Debt:$3.486 billion (31 December 2011 est.)

Current Account: -$1.631 billion (2011 est.)

Exports / Imports: Exports: $2.519 billion (2011 est.); Imports: $5.002 billion (2011 est.)

Foreign Exchange & Gold Reserves: $2.617 billion (2011 est.)

Inflation: 18.7% (2011 est.)

Poverty: 24.5% (2009 est.) below poverty line.

Economic Sectors:Mining, agriculture, oil, manufacturing, services.

Natural Resources: Copper, cobalt, oil, gold.

Agricultural Products: Coffee, sugar, tobacco, fish and fish

Source: Government, CIA World Factbook, International Monetary Fund, World Bank, Wikipedia

TRADE & INVEST AFRICA

127

Zambia

Republic of Zambia Landlocked, Zambia shares borders with the DRC, Tanzania, Malawi, Mozambique, Zimbabwe, Botswana, Namibia and Angola. Most of the country is located on a high plateau with deep valleys carved into the landscape by its many rivers. Southwest Zambia is where the mighty Zambezi River falls nearly 100 metres over the 1,600 metre wide Victoria Falls. The climate is tropical, but changes in altitude cause corresponding changes in weather patterns throughout the country.

The Zambian population comprises upwards of 70 different Bantu-speaking ethnic groups; subsistence agriculture is their chief occupation. The area of modern Zambia was originally inhabited by Khoisan hunter-gatherers until around AD 300, after which major waves of Bantu-speaking immigrants arrived during the Bantu expansion. Among them, the Tonga people (also called Ba-Tonga, “Ba-” meaning “woman”) were the first to settle in Zambia and are believed to have come from the east near the “big sea” (lakes areas).

The territory of what is now Zambia was known as Northern Rhodesia from 1911. It was renamed Zambia when it gained independence in 1964. The new name of Zambia was derived from the Zambezi river (Zambezi may mean “God’s river”) which flows through the western region of the country and forms its southern border.

The British South Africa Company took control of Northern Rhodesia in 1891 and governed until the UK annexed it in 1923. A campaign for self-government led by Kenneth

128

Kaunda met with success in 1964 and Northern Rhodesia was declared independent as the Republic of Zambia. Prior to 1972 Zambia was a multiparty state, though Kaunda’s United National Independence Party (UNIP) dominated the political scene. The following year Zambia became an autocratic state under Kaunda, who ruled until 1991.

Democracy returned with the election of Frederick Chiluba of the Movement for Multiparty Democracy (MMD), but constitutional amendments were soon made to eliminate opposition. The MMD remained in power under President Mwanawasa, who established an anti-corruption task force to investigate his predecessor and introduced changes to the electoral process to eliminate tampering. He was succeeded

by Vice President Rupiah Banda following his sudden death in 2008. In September 2011 Michael Sata of the Patriotic Front (PF) won the presidential elections.

Zambia’s copper mining industry was initially controlled by the state, sustaining massive losses due to poor administration. With the government unable to cover the losses, it turned to privatisation, which significantly improved production at the mines. Subsequently, in 2004 escalating copper prices attracted large amounts of foreign investment, which made substantial contributions to Zambia’s formidable economic growth of 6% per year, sustained from 2005 to present. However, economic growth has not stemmed the increasingly high poverty rates and a dependency on copper renders the country vulnerable to fluctuations in global commodity prices.

TRADE & INVEST AFRICA

Country Overview

General Location: East Africa Capital: Dodoma Largest City: Dar es Salaam Languages: English & Swahili Time Zone: East Africa Time (GMT + 3 hrs.)

Main Airport: Julius Nyerere International Airport 13km southwest of Dar es Salaam.

International Dialling Code: +255 Communications: Relatively good fixed line telephone network, but in rural areas calls may have to be placed through an operator; cell phone networks in main urban areas and Zanzibar – some international roaming agreements exist; various internet service providers with some internet cafes in major centres; internet connections at most first-class hotels and lodges.

Currency: Tanzanian shilling (TZS) divided into 100 cents.

Banking & Credit Cards: Banks, foreign exchange bureaux and some hotels exchange major currencies in larger towns; ATMs in major cities only; credit cards accepted only by major lodges, some hotels and travel agents incurring a 10% surcharge.

Taxes: 18% VAT payable on goods and services.

Entry Requirements: Most foreign visitors need a visa – certain exemptions (check with embassies); Nationals of the East African Community do not need visa or entry permit; Passport must be valid for at least six months.

Political System: Republic; constitutional democracy, but one-party dominant.

Independence: 1961 – 1963.

Government: President is head of state and of government; president and members of National Assembly are elected by direct popular vote for five-year terms; president appoints a prime minister who serves as the government’s leader in the National Assembly; president selects his Cabinet from among the National Assembly members.

Legislature: Unicameral National Assembly.

Legal System: Independent judiciary with high and lower courts.

Population: 47-million (2012 est.)

Economy

Gross Domestic Product: US$67.9 billion (2011 est.)

GDP Growth: US$6.4% (2011 est.)

Budget: Revenues: US$4.603 billion; expenditures: US$6.125 billion (2011 est.)

Surplus/Deficit: -6.5% of GDP (2011 est.)

Public Debt: 37.6% of GDP (2011 est.)

Current Account: -US$3.872 billion (2011 est.)

Exports / Imports: Exports: US$4.843 billion (2011 est.); imports: US $9.635 billion (2011 est.)

Foreign Exchange & Gold Reserves: US$3.726 billion (2011 est.)

Inflation: 12.7% (2011 est.)

Poverty: 36% below poverty line (2002 est.)

Economic Sectors: Agriculture; tourism; mining; energy; manufacturing.

TIA

Natural Resources: Natural gas, gold, diamonds, coal, iron, uranium, nickel, chrome, tin, platinum, coltan, niobium, rare earths oxide and tanzanite.

Agricultural Products: Coffee, sisal, tea, cotton, pyrethrum (insecticide made from chrysanthemums), cashew nuts, tobacco, cloves, corn, wheat, cassava (tapioca), bananas, fruits, vegetables; cattle, sheep, goats.

Manufacturing Industries: Agricultural processing (sugar, beer, cigarettes, sisal twine); mining (diamonds, gold, and iron), salt, soda ash; cement, oil refining, shoes, apparel, wood products, fertilizer.

Major Banks: Access Bank; Advans Bank Tanzania; Akiba Commercial Bank; Bank of Africa; Bank of India (Tanzania); Barclays Bank Tanzania; Citibank; Commercial Bank of Africa (Tanzania); First National Bank of Tanzania; International Commercial Bank; Stanbic Bank; Standard Chartered Bank; United Bank for Africa; and others.

Stock Exchange: Dar es Salaam Stock Exchange (member of African Stock Exchanges Association).

Major Private Companies: Tol Gases Limited; Tanzania Breweries Limited; Tanzania Tea Packers Limited; Tanzania Cigarrete Company Limited; Tanga Cement Company Limited; Swissport Tanzania Limited; Tanzania Portland Cement Company; Dar Es Salaam Community Bank; National Microfinace Bank Plc; Kenya Airways Limited; East African Breweries Limited; Jubilee Holdings Limited; Kenya Commercial Bank Limited; RDB Bank Public Limited Company; Nation Media Group; African Barrick Gold plc; Vodacom Tanzania; Quality Group Limited; Tanzanian and Italian Petroleum Refining Company Limited, MIC Tanzania Limited; and Precision Air Services plc.

Major State-Owned Enterprises: Air Tanzania; Tanzania Electric Supply Company Limited (TANESCO); Tanzania Railways Corporation; and Tanzania Telecommunications Company.

Contacts

Office of the President: Chief Secretary: Tel +255 (0)22 2116679 Prime Minister’s Office: Permanent Secretary: Tel +255 (0)22 2135076/2123281/2117249/50-2.

Minister of Industries & Trade: Tel: +255 (0)22 2181397, 2180418, 2117219-23, 2180049, 2180050 Ministry of Finance: Permanent Secretary: Tel +255 (0)22 2111174/9, 2112854 Ministry of Agriculture & Food Security: Permanent Secretary: Tel +255 (0)22 2862480/1 Ministry of Communication & Transport: Permanent Secretary: Tel +255 (0)22 2114426 Tanzania Tourist Board: Tel +255 (0)22 2111244/5 Stock Exchange: +255 (0)22 2135779, 2123983, 2128522

Source: Government, CIA World Factbook, International Monetary Fund, World Bank, Wikpedia

TRADE & INVEST AFRICA

129

Zimbabwe

Republic of Zimbabwe Zimbabwe is a landlocked country at the southern tip of the African continent. Tucked between the Zambezi River in the north and the Limpopo River in the south, it shares borders with South Africa, Botswana, Zambia and Mozambique. It is a land of remarkable natural beauty with a rich cultural heritage dating back thousands of years.

Bantu-speaking ethnic groups - primarily the Shona and Matabele - comprise 98% of the population. The climate is predominantly tropical with heavy summer rainfall. Much of the country is located on the Highveld plateau, its endless grasslands providing good grazing for livestock and a diversity of wildlife. Among the country’s many marvels are the magnificent Victoria Falls and the ruins of Great Zimbabwe, where only the unique stone architecture remains as testimony to what was one of the most powerful African states of the Late Iron Age. The United Kingdom annexed what was then known as Southern Rhodesia from the British South Africa Company in 1923. By 1961 the country’s self-governing rulers had drafted a constitution, declaring unilateral independence in 1965. This was rejected by Britain and the rest of the world as the country’s black population were denied full voting rights. An ensuing liberation war fought by black nationalists, international sanctions and pressure from neighbouring South Africa eventually caused the rebel Rhodesian government of Prime Minister Ian Smith to call the country’s first free elections in 1979. This resulted in independence being declared and the country renamed the Republic of Zimbabwe the following year.

The first prime minister and current president, Robert Mugabe, and his ZANU-PF party have dominated the political scene since independence. Under President Mugabe’s rule reports of human

130

rights violations escalated in recent years. Starting in 2000, his widely condemned land redistribution programme resulted in the exodus of white farmers, crippling the economy and turning this one-time food exporter into a famine-threatened importer of food, at times relying on international humanitarian food aid.

The failing economy also led to the collapse of the public health system, compounding outbreaks of diseases such as a plague outbreak in 1994 and the cholera epidemic of 2009. Zimbabwe also has one of the world’s highest HIV/AIDS infection rates.

Mounting international pressure and deteriorating socioeconomic conditions forced the ruling ZANU-PF into negotiations with the opposition MDC resulting in an interim power-sharing arrangement while reforms and the drafting of a new constitution continue under supervision of the Southern African Development Community (SADC). In terms of the interim agreement Mugabe remains president while the MDC leader, Morgan Tsvangirai, is prime minister.

Since the formation of the unity government and dollarization of the local currency, the Zimbabwean economy has shown signs of recovery from a decade of hyperinflation. GDP growth has been sustained by a gradually recuperating agricultural sector, escalating mineral prices and an increase in tourism. The resulting increase in revenue and tax receipts since 2009 has seen a number of favourable reports on investment prospects for Zimbabwe being published.

The interim unity government arrangement has also brought greater socio-political stability. The reform and constitutiondrafting process is nearing completion and elections are expected to be held soon.

TRADE & INVEST AFRICA

Country Overview

General Location: Southern Africa, between South Africa and Zambia.

Capital: Harare Languages: English (official); Shona; Ndebele.

Time Zone: GMT + 2 Main Airport: Harare International Airport, 12km east of Harare.

International Dialling Code: +263 Communications: Fixed-line telephone system is poorly maintained. Substantial cellular network covering most of the country with three service providers. Internet connection available in Harare and most major towns.

Currency: Zimbabwean Dollar was abandoned in 2009 due to hyperinflation. Multi-currency scheme now operates - US Dollar and South African Rand most common.

Credit Cards & Travellers’ Cheques: Major foreign currencies and travellers’ cheques can be exchanged at bureaux de change, banks and hotels. American Express, Diners Club and Visa widely accepted, MasterCard more limited. Good banking system with many outlets and ATMs. Taxes: VAT of 15% payable on goods and services. Travellers don’t pay duty on items under US$250 for personal consumption.

Entry Requirements: Visas required for most visitors including from USA, Australia, New Zealand. Visas can be obtained upon arrival at airport, but best to check with local consulate or

Political System: Parliamentary democracy.

Independence: 8 April 1980 (from the UK) Government: Power-sharing government in place since 2009. Head of state is President Robert Mugabe and head of government is Prime Minister Morgan Tsvangirai. Cabinet appointed by president. Prime minster is accountable to House of Assembly.

Legislature: Bicameral Parliament consists of a Senate and a House of Assembly, with members for both elected by popular vote for 5-year terms. Provincial governors nominated by president and prime minster. Traditional chiefs elected by Council of Chiefs.

Legal System: Mixed legal system of English common law, Roman-Dutch civil law and customary law.

Population: 12.6-million (2012 est.)

TIA

Economic Sectors: Agriculture: 20.4% of GDP (2011 est.)

Industry: 24.6% of GDP (2011 est.)

Services: 54.9% of GDP (2011 est.)

Natural Resources: Coal; chromium ore; asbestos; gold; nickel; copper; iron ore; vanadium; lithium; tin; platinum.

Agricultural Products: Corn; cotton; tobacco; wheat; coffee; sugarcane; peanuts; sheep; goats; pigs.

Manufacturing Industries: Mining (coal; gold; platinum; copper; nickel; tin; diamonds; clay, numerous metallic ores); steel; wood products; cement; chemicals; fertilizer; clothing; foodstuffs; beverages.

Major Banks: Reserve Bank of Zimbabwe (central); Barclays Bank of Zimbabwe; Barbican Bank; Interfin Bank; Royal Bank Zimbabwe; Stanbic Bank Zimbabwe; Standard Chartered Zimbabwe.

Stock Exchange: Zimbabwe Stock Exchange (ZSE), based in Harare.

Major Private Companies: Zimplats Holdings; African Distillers; Aico Africa; Ariston Holdings; Bindura Nickel Corp; British American Tobacco Zimbabwe Holdings; Econet Wireless Zimbabwe; Fidelity Life Assurance Co; Hwange Coillery Co; Lafarge Cement Zimbabwe; Murray & Roberts; RioZim; Star Africa Corp.

Major State-Owned Enterprises: Air Zimbabwe (ceased operations in February 2012); National Railways of Zimbabwe (NRZ); Zimbabwe United Passenger Company (ZUPCO); Zimbabwe Electricity Supply Authority (ZESA), Zimbabwe Broadcasting Corporation (ZBC); Minerals Marketing Corporation of Zimbabwe (MMCZ); Zimbabwe Mining Development Corporation (ZMDC).

Contacts Ministry of Finance: Tel: +263 4794 5718; Email: webmaster@zimtreasury.org Confederation of Zimbabwe Industries: Tel: +263 4251 4906 Zimbabwe Investment Authority: Tel: +263 4757 9315; Email: info@zia.co.zw Zimbabwe Revenue Authority: Tel: +263 4758 8915; Email: info@zimra.co.zw; Web: www.zimra.co.zw Zimbabwe National Chamber of Commerce: Tel: +263 4447 0713; Email: info@zncc.co.zw; Web: www.zncc.co.zw Zimbabwe Tourism Authority: Tel: +263 4752 570; Email: info@ztazim.co.zw; Web: www.zimbabwetourism.co.zw

Economy Gross Domestic Product (PPP): Total: US$5.916-billion (2011 est.)

Per Capita: US$500 (2011 est.)

GDP Growth: 6% (2011 est.)

Budget: Revenues: US$685 million (2009) Expenditures: US$640.7-million (2009) Public Debt: 230.8% of GDP (2011 est.)

Current Account: US$ -675.6-million (2011 est.)

Exports / Imports: Exports: US$2.731-billion (2011 est.)

Imports: US $4.223-billion (2011 est.)

Foreign Exchange & Gold Reserves: US$462 million (2011 est.)

Inflation: 5.6% (2011 est.)

Unemployment: 2011 estimates vary between 70% and 80%.

Poverty: 68% of population below international poverty line of US$1.25 a day (2004 est.)

Sources: Country’s Government, CIA World Factbook, US State Department Country Fact Sheets, International Monetary Fund, World Bank

TRADE & INVEST AFRICA

131

Events Calendar

Conference & Events Diary

East Africa Summit When: 5 – 6 December, 2012 Where: Serena Hotel, Kigali, Rwanda What: Themed ‘Integrated BI for optimised performance’, the event will equip BI practitioners to overcome the challenges they face on a day-to-day basis.

Organisers/Sponsors: Economist Conferences More Info: Email africa@economist.com; Web www. economistconferences.com/eastafrica Organised by Economist Conferences, the East Africa Summit is a frank, open debate on the region’s future prospects and potential. With recent discoveries of offshore gas in Tanzania and oil in Kenya, East Africa’s prospects look better than ever – with the potential to become one of the world’s fastest growing markets. But, work needs to be done quickly to improve infrastructure and create better functioning institutions’ and legal systems. The summit will bring together international business leaders, policymakers, heads of state and senior editors from The Economist, to ask the tough questions on what can be done to reform the trade landscape.

Medifest South Africa When: 11 - 13 December 2012 Where: Blue Waters Hotel, Durban, South Africa What: Medical and healthcare congress Organisers/Sponsors: Vantage Trade Fairs More Info: contact@vantagetradefairs.com A unique aspect of this medical conference Medifest will bring together a dedicated and diverse cadre of traders, importers, clinicians, allied health professionals and other specialists.

Exhibitors therefore have the unique benefit of reaching the entire range of multidisciplinary professionals working in various fields at a single event. This healthcare conference 2012 provides the opportunity to meet, establish and strengthen partnerships with these experts. Whatever your product or service is, exhibiting at Medifest 2012 will bring you maximum exposure to professionals who shape the future of medical and healthcare industry in Africa. Medifest South Africa will revolutionize the buying procedure by delivering suppliers across the entire continuum of the medical industry. There will be ample scope for establishing profitable business relationship and to interact with others in the area of business and trade.

TIA

Academy of Management Africa Conference When: 7 – 10 January, 2013 Where: Gordon Institute of Business Science, University of Pretoria, Illovo Campus, Johannesburg, South Africa What: Management issues re Africa’s business, government and civil sectors Organisers/Sponsors: South African Institute of Mining and Metallurgy in conjunction with various sponsors.

More Info: http://meeting.aomonline.org/international/ southafrica/ The purpose of this conference is to bring Africa’s unique capabilities and needs to the attention of the world’s organization and management scholars, and at the same time to provide an opportunity for interested colleagues to collaborate and work on the many interesting theoretical and practical problems presented in Africa. Home to more than 50 countries and one billion people, Africa offers some of the world’s most vibrant economies while continuing to face profound challenges. Marked by fast growth, limited growth, or no growth at all, Africa’s business, government and civil sectors all need the very best management.

4th Annual Healthcare Summit When: 28 - 31 January, 2013 Where: Convention Dynamics, Isando, Johannesburg, South Africa What: Business forum for healthcare professionals including but not limited to health authorities, hospital operators, government, health insurers, care organisations, research institutions, academics, and pharmaceutical organisations Organisers/Sponsors: Informa Exhibitions IRR More Info: Tel +27 (0)11 771 7000; Email: customercare@iir.co.za IIR’s 4th Annual Healthcare Summit is a leading business forum for healthcare professionals including but not limited to health authorities, hospital operators, government, health insurers, care organisations, research institutions, academics, and pharmaceutical organisations. This event typically attracts attendees from across South Africa and features distinguished speakers, dynamic panel discussions, special workshops and master classes and various networking opportunities. This year’s conference, with the theme “bringing together policy, strategy, partnerships and innovation to drive sustainable reform in healthcare”, will explore the continuing evolution of healthcare in South Africa and the leadership and collaboration needed to ensure that higher quality healthcare services become more widely available.

Enterprise Risk Management

Conference & Events Diary

African Mining Indaba When: 4 – 7 February, 2013 Where: Cape Town International Convention Centre, Cape Town, South Africa What: The world’s largest gathering of the most influential stakeholders – financier, investors, mining professionals, government officials, etc- in African mining.

Organisers/Sponsors: Mining Indaba, LLC, Attn: Events Customer Service, 5081 Olympic Blvd.

Erlanger, KY 41018 USA plus many sponsors.

More Info: Toll Free (in the US and Canada): 1-800-831-8333; (for international callers): +1-859-746-5700; E-mail: info@miningindaba.com Investing in African Mining Indaba is the world’s largest mining investment event and Africa’s largest mining event. For 19 years, Investing in African Mining Indaba along with its partners in Africa have channeled billions of dollars of foreign investment into the mining value chain. Mining Indaba is the world’s largest gathering of mining’s most influential stakeholders and decisionmakers vested in African mining. 2012 was a record breaking year, with more than 7,000 individuals representing more than 1,500 international companies from 100 countries and approximately 45 African and non-African government delegations. This is where the world connects with African mining.

The Africa Summit When: 5 February, 2013 Where: The Royal Garden Hotel, Kensington, London,UK What: Special one-day examination of the world’s new economic engine.

Organisers/Sponsors: Economist Conferences More Info: Fax +44 (0)207 576 8472; Tel +44 (0)207 576 8118 The Africa Summit will be a special one-day examination of the world’s new economic engine. By bringing together the politicians, business leaders and investors defining Africa’s future, the summit will explore the latest commercial opportunities across the continent.

When: 12 - 15 February, 2013 Where: The Hyatt Regency, Rosebank, Johannesburg, South Africa What: Provides risk managers and senior executives with the tools and expertise to get ERM right.

Organisers/Sponsors: Institute for International Research, Johannesburg More Info: Michael Meadon at mmeadon@iir.co.za Risk management is an increasingly important component of good corporate governance. The identification, quantification, monitoring, reporting, mitigation and control of all risks and opportunities influencing an organisation has become a familiar, if still tricky, management task. The pressure on all companies to get Enterprise Risk Management right is immense, with regulators, investors and rating agencies all demanding predictable, transparent, sustainable and effective risk management processes and systems. Implementing the right risk management system, using the right tools and embedding the right risk management culture that will deliver effective risk assessment and management is of course an immensely difficult task. It is for this reason that the Institute for International Research has put together its Enterprise Risk Management conference. This conference, to be held over four days on 12, 13, 14 and 15 February 2013, provides risk managers and senior executives with the tools and expertise to get ERM right.

Core Banking Solutions Conference When: 13 - 14 February, 2013 Where: Indaba Hotel, Fourways, Johannesburg, South Africa What: Core banking solutions Organisers/Sponsors: Trade Conferences International More Info: E-mail: info@tci-sa.co.za; Tel: +27 (0)11 803 0009 Core banking solutions (CBS) involves the overhauling of traditional frameworks and legacy systems to bring in new technologies and according to the International Data Corporation (IDC) it has become a major area of technology investments for banks in Southern Africa and Africa as a whole. Fuelled by this ever evolving nature and vigorous competition, next generation core banking solutions are imperative to the growth of financial institutions. Banks must adopt new technologies and strategies for transforming and migrating their current core banking systems, without distracting current operations. Topics: overview of the current banking landscape in South Africa; core banking transformation – a case of when? ; core banking transformation; banking innovation; outside-in system innovation; achieving transformation through learning; and more.

19th World Congress of Aesthetic Medicine When: 14 - 16 February, 2013 Where: Cape Town International Convention Centre, Cape Town, South Africa What: Focus will be on a strong scientific program combined with teaching, training and live workshops to educate doctors from all over the world on the latest trends, new techniques, discoveries, products and devices in the field of Aesthetic Medicine.

Organisers/Sponsors: UIME (Union Internationale de Médecine Esthétique) More Info: E-mail: Mareli Janse van Rensburg, Conference Coordinator at +27 (0)12 548 7152 or mareli@wcam2013.org

WSRC promises exceptional opportunities for attendees to network with and learn from leading soybean producers, processors and companies representing the food, feed and ingredient sectors.

Loyalty & Rewards Conference When: 20 - 21 February, 2013 Where: Indaba Hotel, Fourways, Johannesburg, South Africa What: To develop and manage proper loyalty programmes that will equally benefit your company and your clients.

Organisers/Sponsors: Trade Conferences International More Info: E-mail: info@tci-sa.co.za; Tel: +27 (0)11 803 0009

The 19th World Congress of Aesthetic Medicine of the UIME will be held in Cape Town, South Africa from 14th to 16th February 2013, with training courses on the 13th February 2013. This is the 1st time in history that this world congress is being held in an African country and it is probably the most important aesthetic medical event ever in Southern Africa. We are expecting over 1000 aesthetic medical professionals from over 30 countries to join us with about 70 exhibition stands. The 19th World Congress of Aesthetic Medicine 2013 will focus on a strong scientific program combined with teaching, training and live workshops to educate doctors from all over the world on the latest trends, new techniques, discoveries, products anddevices in the field of Aesthetic Medicine. The strong congress program will be the major factor attracting delegates while the scientific committee is made up of experts from various countries who understands the educational and business needs of physicians in the industry. The exhibition will be a showcase of international companies from various continents with product.

Loyalty programmes have been around the world for more than 5 decades, but only became a huge feature in the South African marketing landscape recently. Up to now, there has been a massive explosion of these programmes and at the moment, loyalty programmes generate R12bn per annum with more than 10 million South Africans who carry at least one card, according to marketing experts. Loyalty programmes, when properly designed and correctly implemented, can among others, encourage long term loyal buying behaviour. Loyalty programmes not only serve as the interface between companies and their customers, but also foster constant engagement. Through these programmes companies are able to monitor changes in customer preferences and in response institute, appropriate programmes which meet the needs of these customers.

At the Loyalty & Rewards Conference delegates will be exposed to a wide range of topics that will focus on fresh and current issues on the subject, with emphasis on the evolving nature of customer needs.

Speakers have carefully been selected and will present topics which will cover vital issues that any marketer would like to learn about.

World Soybean Research Conference 2013

IT Web Business Intelligence Summit

When: 17 - 22 February, 2013 Where: Durban International Convention Centre, Durban, South Africa What: The leading international event on soybean research.

Organisers/Sponsors: Hosted by the Protein Research Foundation and the Oil and Protein Seeds Development Trust, and organized by Paragon Conventions Africa.

More Info: E-mail: wsrc@paragon-conventions.co.za; Paragon Conventions Africa Tel +27 (0)21 555 4152.

When: 26-28 February, 2013 Where: The Forum, Bryanston, Johannesburg, South Africa What: Themed ‘Integrated BI for optimised performance’, the event will equip BI practitioners to overcome the challenges they face on a day-today basis.

Organisers/Sponsors: ITWeb More Info: Maggie Pienaar at maggie@itweb.co.za

The World Soybean Research Conference (WSRC) will include both a technical programme and a trade show that showcases all aspects of the industry including soybean seed; oil and fat products; foods and drinks; soybean fiber products; biotech; animal feed; processing equipment and more. This year’s theme of “From China to Africa - Can research close the gap between soy production and increasing global demand?”, topics will highlight diverse topics in both plenary and concurrent break-out sessions, including: food security; sustainability; health and nutrition; genetics and breeding; processing; applications; agronomy; transportation and storage as well as an overview of commodity markets. Under the direction of the organizing committee, participants will hear from farmers, researchers and industry leaders as they explore the entire soy value chain from growing and processing soybeans to transporting, using and marketing soybean products.

In today’s competitive business environment, businesses need to make the right decisions at the right time. Business Intelligence (BI) gives users access to strategic data and in-depth insight that empowers them in decision-making. Attend ITWeb’s eighth annual Business Intelligence Summit where you’ll find answers to your most pressing BI questions. Themed ‘Integrated BI for optimised performance’, the event will equip BI practitioners to overcome the challenges they face on a day-to-day basis. The conference brings together local and international experts who will assess the latest updates and analysis of trends. Industry practitioners will share the lessons they have learnt during informative case studies. The expo that runs adjacent to the Summit is a valuable source of information on products and services from BI solutions providers.

Conference & Events Diary

Africa Trade Finance Week When: 4 – 6 March, 2013 Where: The Westin, Convention Square, Cape Town, South Africa What: Trade finance gathering looking at the significance of the regional and global trade flows in one of the world’s most attractive and lucrative markets.

Organisers/Sponsors: Exporta More Info: Tel: +44 (0) 20 8673 9666; Fax: +44 (0) 20 8673 8662; Email: info@exportagroup.com Now firmly established as the premier trade finance gathering in the region, the new extended format will encompass the significance of the regional and global trade flows in one of the world’s most attractive and lucrative markets. Reflecting on the impressive growth being experienced in the region, attending delegates will have much to discuss, with particular focus on the changing funding priorities and requirements of African companies as they continue growing their trade flows.

With around 300 delegates expected in attendance, including companies of all sizes and from all manner of sectors, strong focus will be placed on the role of both Africa’s huge commodity resources, as well as the continuing need for infrastructural development. Recognising the importance of face-to-face interaction when conducting business, huge emphasis will be placed on the importance of networking over the course of the week, with delegates being given the opportunity to plan and organise private meetings via Exporta in the lead-up to proceedings.

West Africa Investments Summit When: 7 March, 2013 Where: Lomé, Togo What: Investment opportunities in West Africa.

Organisers/Sponsors: Lancaster Conferences More Info: Tel: +(44)-(207)-1439904; +44-208-5965047 The West Africa Investments Summit is being organized to provide its participants and attendees the opportunity to learn the finer nuances of a very important topic of investment opportunities that are faced in the region of West Africa as well as related issues and will act as a guide to all those who are want to gain more knowledge about it. The West Africa Investments Summit will cover a number of important issues and topics that are related to the topic and hence will be a much sought after event. The conference will help the participants of the event to gain valuable information about the various latest happenings in the field of investments.

Future Bank World Africa When: 11-12 March, 2013 Where: Sandton Convention Centre, Johannesburg, South Africa What: Africa’s largest banking and technology show.

Organisers/Sponsors: Terrapinn More Info: Romeo Peacock, Assistance with conference registration or further information: Tel +27 11 516 4014; Fax +27 11 463 6000; romeo.peacock@terrapinn.com The mobile phone, technology and customer innovations have transformed the retail banking space. The most urgent need for banks right now is how best to engaging with and innovate for the changing customer. This presents a lucrative opportunity for businesses wanting to grow their client base and explore new markets like Africa. Future Bank is part of an epic show - with over 1200 participants from the retail banking sector taking part. Africa’s only exhibition giving you solutions to retail banking, payments, smart cards and the retail industry.

A platform putting you face-to-face with key customer and prospects.

World Investment Conference North Africa (WIC North Africa) When: 20 – 22 March, 2013 Where: Marrakech, Morocco What: Revolves around the central theme of Middle East & North Africa Region’s attractiveness in terms of Foreign Direct Investments.

Organisers/Sponsors: Invest in Morocco Agency & World Investment Conferences More Info: Tel. + 212 537 22 64 00; Fax: + 212 537 67 34 17/ 42; Email: info@invest.gov.ma The World Investment Conference North Africa (WIC North Africa) to be held on March 20 to 22, 2013 in Marrakech is organized in partnership with the Invest in Morocco Agency.

WIC North Africa revolves around the central theme of Middle East & North Africa Region’s attractiveness in terms of Foreign Direct Investments. The conference focuses on bringing together foreign investors looking for investment opportunities in North Africa and political and business leaders from the MENA region interested in engaging in mutually rewarding business relationships. It is a forum to share best practices, receive introductions to potential clients and partners, get updated on the latest investment and business opportunities in key growth sectors. North Africa is undergoing a transition, both in terms of investor perception of its market potential and in reality. Foreign Direct Investment (FDI) projects continue to grow strongly in the region and to offer exciting business opportunities for those who are ready to seize them. Morocco, who is on the verge of becoming one of the most attractive investment destinations in Africa, will host this first edition of WIC North Africa.

Events Calendar

Conference & Events Diary

9th Western Africa Oil, Gas and Energy Week 2013 When: 22 – 24 April, 2013 Where: Hilton Windhoek, Windhoek, Namibia What: Oil and gas opportunities and potential across the West African offshore and onshore.

Organisers/Sponsors: Terrapinn More Info: Babette van Gessel at email babette@glopac-partners.com The Government of Namibia and the Commissioner for Petroleum of Namibia are pleased to welcome Global Pacific & Partners’ 19th Western Africa Oil/Gas & Energy Conference 2013 to Windhoek and invite you to support this important meeting which will focus on the oil and gas opportunities and potential across the West African offshore and onshore for hydrocarbon exploration, discovery and development as well as gas-LNG and energy development. This Conference will be once again be a landmark event with a Strategy Briefing on Western Africa held the day prior to the Conference, led by Global Pacific & Partners, and will offer prime networking potential as well as direct exposure to Governments, National Oil Companies, Licensing Agencies and leading corporate players in and across this vast zone where a century of oil/gas development is combined with numerous fast-emerging frontier ventures, including pre-salt targets in the highly prospective offshore/deepwater zones from Morocco to Cape Town.

West Africa Investment Conference 2013 When: 22 – 24 April, 2013 Where: Moevenpick Ambassador Hotel, Accra, Ghana What: Our event offers regional and international investors, financiers and corporates the chance to see first-hand the transformation taking place.Organisers/Sponsors: Objective Capital Investment Conferences More Info: Tel: +44 (0)20 7754 5994; Fax: +44 (0)203 137 0076; Email: events@objectivecapitalconferences.com West Africa abounds with opportunity. Nigeria has great promise with its free-market orientation, massive population and natural resources. Fellow Anglophones Liberia and Sierra Leone are

TIA

settling down again after their troubles and providing great potential. The Francophiles with their West African Economic and Monetary Union and CFA have had a stable though not necessarily vibrant finance environment, but commentators still see opportunity for growth in private equity and capital market development in Ivory Coast and Senegal. We are going to be spending three day-long sessions considering some of the most exciting and prospective sectors in the region – power, financial services, infrastructure and the entrepreneurial small and medium entities. Opportunities are abounding in the region and especially in Ghana, the fastest growing economy of the region. This event will have a heavy focus on Ghana and its low hanging fruit - financial services and SME space. There are certainly high expectations but the question remains, is this time different? Can commodity led prosperity translate to sustainable economic progress? Over these three sessions you will hear the views of a distinguished cast of policy makers, influencers and investors who will attempt to unpack the region’s potential.Electric tools; Railways; Interiors; Lighting; and many more!

2nd Oil & Gas Africa - Int’l Trade Exhibition, Kenya When: 29 April – 1 May, 2013 Where: Cape Town International Convention Centre, Cape Town, South Africa What: Hub for key players in the oil and gas community, attracting leading oil, gas and petroleum companies from around the world..

Organisers/Sponsors: Oil & Gas Africa More Info: Tel : +971-4-3721421; Fax : +971-4-3721422 This regional trade event serves the resource-rich east African region and city of Nairobi; Kenya’s major centre of oil and gas activity for many of the leading operators in the country. Kenya has attracted oil & gas companies not only because of its ports and strategic location but also because the government is keen not to be left out of the exploration. Trade visitors from all over East & Central African countries are being invited directly and in collaboration with several regional trade bodies in Kenya, Tanzania, Ethiopia, Uganda, Somalia, Mozambique & Congo. Though Kenya by itself is one of the biggest markets in Africa, major emphasis is being laid upon attracting traders and importers from neighbouring countries.

•Please note, neither Trade & Invest Africa, Ocean Rock Media or any of its employees can be held liable for the accuracy of information supplied in respect of events, conferences and exhibitions listed above.

Events Calendar

TIA

What: After 13 years of close collaboration with utilities, municipalities, governments, regulators, large power users and solution providers it has become the number one power exhibition in Africa.

Organisers/Sponsors: Spinintelligent More Info: Show Director Russell Hughes - Tel: +27 21 700 3500 ext 3515; Email: russell.hughes@spintelligent.com

Conference & Events Diary

HICA 2013 (Hotel Investment Conference Africa) When: 9 – 10 May, 2013 Where: Southern Sun Elangeni Hotel, Durban, South Africa What: Africa’s premier hotel investment conference just before the annual Tourism Indaba in Durban.

Organisers/Sponsors: TBCSA; KwaZulu-Natal Department of Economic Development and Tourism; Trade and Investment KwaZulu-Natal (TIKZN); KwaZulu-Natal Tourism Authority (TKZN).

More Info: Boitumelo Moleleki at tumi@tbcsa.travel or Tel +27 (0) 12 654 7525 HICA is an established business to business networking platform focused on showcasing Southern Africa as a viable investment destination in the hotel and hospitality sector. It is an event which is also dedicated to improving the knowledgebased within the region in terms of building and operating hotel and hospitality facilities. The target audience is local and international investors, hospitality property developers, TBCSA Chief Executive Officer, Mmatšatši Ramawela said post the inaugural South African Travel and Tourism Industry Conference (SATTIC) 2012, participation at HICA 2013 is ‘a must’ for businesses wanting to take forward the discussions on how to improve the attractiveness of Southern Africa as a tourist destination amidst increasing competition from countries such as Morocco, Kenya and Thailand. HICA is the platform for those seeking investment opportunities and knowledge about operating in the sector especially in the current economic climate.

African Utility Week When: 14 - 15 May, 2013 Where: Cape Town International Convention Centre, Cape own, South Africa

After 13 years of close collaboration with utilities, municipalities, governments, regulators, large power users and solution providers African Utility Week has become the number one power exhibition in Africa. Over 250 suppliers from across the world will not only exhibit their latest technology and solutions but will be waiting to share their experience, case studies and best practices with you. There is no better place to be inspired by companies like Powertech, Itron and Eskom, just to mention a few. The new, world class conference programme and vastly improved exhibition opening times will double the engagement time between delegates and exhibitors. A key development of the event is the additional investment we have made to create a more engaging exhibition floor with product demonstration workshops, cocktail functions, free refillable coffee and meeting lounges all providing more business opportunities for our exhibitors. Our exhibitors and sponsors are experts in the fields of power generation, transmission, distribution, metering, clean energy, energy efficiency and project management. No matter what challenges you are facing at work, you will find someone with the answer to your most pressing questions.

West Africa Investments Summit When: 7 March, 2013 Where: Lomé, Togo What: Investment opportunities in West Africa.

Organisers/Sponsors: Lancaster Conferences More Info: Tel: +(44)-(207)-1439904; +44-208-5965047 The West Africa Investments Summit is being organized to provide its participants and attendees the opportunity to learn the finer nuances of a very important topic of investment opportunities that are faced in the region of West Africa as well as related issues and will act as a guide to all those who are want to gain more knowledge about it. The West Africa Investments Summit will cover a number of important issues and topics that are related to the topic and hence will be a much sought after event. The conference will help the participants of the event to gain valuable information about the various latest happenings in the field of investments.

e c n e i r e p x E y t u a e b d e n i f e r n u in it's true Privately owned Tau Game Lodge is situated in the Big 5 malaria-free Madikwe Game Reserve, accessible by scheduled flights, or a 4 hour drive from Johannesburg.

The main body of the lodge has an impressive reception hall, swimming pool and a comfortable upstairs lounge and bar and dining-room. The chalets at Tau are privately situated in pristine, indigenous gardens and embrace the spirit of Africa with modern luxury and unsurpassed vistas of the bush and the natural waterholes.

The state-of the art Tau Game Lodge Convention Centre, which is situated at walking distance from the lodge can seat up to 150 delegates, while at the Tau Spa Oasis guests are offered rejuvenating spa treatments, surrounded by the beauty of the African Bush. Families with children of all ages are welcome at Tau Game Lodge. All of our younger visitors become automatic members of the Tau Cubz Club and are entertained with exciting activates.

a c i r f A

Central Reservations for Conference & Individual Bookings: Tel: +27 (0) 11 314 4350 • +27 (0) 11 314 4349 • Fax: +27 (0) 11 314 1162 E-mail: taugame@mweb.co.za • Emergencies: +27 (0) 83 262 2013 www.taugamelodge.com LUXURY ACCOMMODATION - FIVE STAR CONFERENCE FACILITIES - ECO EDUCATION - SPA - COMMUNITY DEVELOPMENT

SONNET’s contemporary elegance, fine styling and modern finishing sit comfortably with PARKER’s design heritage, epitomized in the exquisite detailing of the fine cut 18k gold and Stainless steel nibs, the intricate feathering of the arrow clip and the perfect balance in hand. The SONNET range is truly timeless...............but always of the moment.

Distributed by

011 677 0000

www.parkerpens.com