Trade & Invest Africa Edition 4 by Ocean Rock Media

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

Insights | Opportunities | Trends

AGRO-

AQUACULTURE

PROCESSING

The aquaculture sector of the Eastern Cape has shown excellent growth in the past five years, and is currently ranked second in the country in terms of production by volume and value. The ECDC has positioned the province as the premier marine fin-fish aquaculture investment destination in south africa, ahead of provinces with superior climate and water resources. The province boasts two industrial Development Zones with purpose-made infrastructure for investment in mariculture. Products exported from the province include south african abalone, Dusky kob and marron crayfish.

The province holds enormous potential for further agro-processing developments. The landscape offers a diversity of climates conducive to a wide variety of agro-products. large tracts of land with high natural potential complement the availability of skilled and semi-skilled labour, existing infrastructure and transport linkages to national and international markets. opportunities exist for production of biofuels and a strategic environmental assessment in this regard is underway.

For more opportunities in the sector contact:

rory HasCHiCk rory@ecdc.co.za Tel. (0) +27 83 410 3099

MlaMli noDaDa mnodada@ecdc.co.za Tel. +27 (0) 83 451 2187

AUTOMOTIVE MANUFACTURING

The province leads the country in the automotive sector - with no less than three oEMs and numerous suppliers located in the Eastern Cape. after hosting south african automotive Week in 2012, the ECDC will join the rest of the country in hosting the event in Johannesburg from 14-16 october 2014. This event showcases south africa, its automotive hubs and clusters and all the potential the sector has to grow even more. Foreign investment is also a focus of the event which is endorsed by all spheres of government as well as all the automotive industry associations. For more opportunities in the sector contact: WilliE van HEErDEn wheerden@ecdc.co.za Tel. +27 (0) 83 451 2193

INVESTMENT

OPPORTUNITIES in the Eastern Cape, South Africa Discover a land of opportunity, where a highly developed first world economy meets the huge potential of an emerging economy, and creates a dynamic investment environment. The Eastern Cape’s positioning affords it easy access to african and global markets through its sea, road, rail and air networks, and it has world-class commercial and industrial infrastructure. as the Provincial investment & Trade Promotion agency of the Eastern Cape, the Eastern Cape Development Corporation (ECDC) is your one-stop-shop for investment into the tourism and other emerging sectors in the province.

We assist new and existing investors at no cost with the following:

RENEWABLE

ENERGY

• • • • • • •

Identifying new opportunities in key sectors Facilitating and financing new ventures Accessing investment incentive schemes Accessing local business networks Creating access to a portfolio of land and properties Facilitating corporate relocations and aftercare services Lobbying municipal, provincial and national government for relevant interventions

With some of the country’s best wind and solar resources, the ECDC is ready to provide concrete support to investors who make the Eastern Cape their location of choice for renewable energy projects. The Eastern Cape has garnered more than 60% of the successful wind farm applications in the calls for independent power suppliers to date. For more opportunities in the sector contact: WilliE van HEErDEn wheerden@ecdc.co.za Tel. +27 83 451 2193 rory HasCHiCk rory@ecdc.co.za Tel. +27 83 410 3099

REAL ECONOMIC

GROWTH www.ecdc.co.za | Tel. +27 (0) 43 704 5600

70 Years in Quality Private Higher Education Join us on this journey of excellence into Africa. Our initiative has the potential to transform African economies, bringing in thousands of jobs for those who have the right education. To invest and be part of this legacy, email us at info@educorafrica.com

â&#x20AC;&#x153;Education is not a way to escape poverty - it is a way of fighting itâ&#x20AC;?.

70 Ye a r s

of Quality Private Education Damelin Certified

Julius Nyerere

contents

TIA

REGULARS 13 - Foreword by Dr Denis Worrall 15 - Letter from the Editor 18 - News & Views 66 - Profiles 90 - Inspirational Places 128 - Events Calendar COUNTRY OVERVIEWS Angola Botswana Ghana Kenya Lesotho Malawi Mozambique Namibia Nigeria South Africa Swaziland Tanzania Uganda Zambia Zimbabwe

FEATURES 23 South Africa’s mining industry… seeking a sustainable future South Africa’s all-important mining sector has lived through a torrid time these last few years. However, not only has the South African mining industry survived the most serious storms in its history, but the various watershed crises since 2008 have catapulted it onto a new trajectory few would have foreseen a decade ago. 34 Confidently into the future Just how sustainable is the future of mining in South Africa? There are mixed views about this, but we found many who take a positive long-term view, including the South African government, the South African Chamber of Mines and many others. 38 Africa’s minerals – curse or blessing Much has been said about Africa’s so-called resources curse which, of course, refers to countries with an abundance of natural resources like minerals and oil, but who tend to have less economic growth and worse socio-economic development than those countries with fewer or no natural resources. But Africa seems to be putting the curse to rest. 8

69 Managing logistics in Sub-Saharan Africa is not for the faint-hearted

44 Procurement of strategic importance for Africa’s growth and development Economic growth in Africa, driven by the resources sectors, has made the continent one of increasing opportunity. Procurement as a function of supply chain management can play a strategic and significant role. Prof. Douglas Boateng, Chairman of the Chartered Institute of Purchasing and Supply’s Africa Strategic Advisory Board takes a look at the critical issues involved. 48 Assessing the logistical challenges to serving customers on time Delivering goods to these customers on time and at the right cost represents a sizeable prize for any company. However, due to differing maturity and complexity of routes across the continent, getting goods to market at the right cost requires innovation. Hennie Human identifies some of the key challenges. 52 Next port of call…Southern Africa With 95% of Southern Africa’s trade being seaborne, ports make up a major part of the economic infrastructure of the region. No wonder the region boasts no fewer than 17 commercial ports from Luanda in the west to Dar es Salaam in the east. We look at the vital role these ports play.

Transporting goods anywhere can be challenging, and in Sub-Saharan Africa, delivering goods to customers on time and at the right cost, is indeed fraught with obstacles which need to be identified and managed correctly. Although Africa’s ports have made huge progress in recent years, some problems persist. 71 PMAESA – 40 years of excellence in ports management The Port Management Association for Eastern and Southern Africa (PMAESA) is an important organisation in the African maritime industry and a vital partner in the successful implementation of the African Union’s 2050 Maritime Strategy. The association recently celebrated its 40th anniversary with a major conference held in Durban, South Africa. 73 Travel smart and get home safely People, and especially those travelling to other countries, constantly face threats to their personal security from criminals. Loss prevention and corporate security executives who have to reduce risks to company assets – the most important of which is people – have to take a long and hard look at commuter and extended travel security. 76 African tourism…so much more than lions, tree-houses and dugout canoes

Two of South Africa’s ports – Durban and Cape Town – have been ranked among the world’s top 120 container ports by the Container Management World Top Container Ports 2013 report.

Tourism is the world’s top industry and the fastest developing industry in Africa, with opportunities abounding. According to a World Bank report published in October last year, in 2011 global tourism contributed 9.1 percent to world GDP. Africa’s tourism revenues, it noted, are rising fast and are set to contribute more and more to world activity.

66 TNPA plays its part in promoting African regional port co-operation

130 Gauteng Investment Centre cuts red tape for investment

Transnet’s Market Demand Strategy places much emphasis on regional co-operation and calls for a review of the state owned entity’s role in the development of the North-South and East-West logistics corridors.

The newly established Gauteng Investment Centre (GIC) in Sandton, Johannesburg has been created to position Gauteng province in South Africa, the economic and industrial hub of Southern Africa, as a preferred destination for investment and trade.

64 SA container terminals rated among world’s top 120

TRADE & INVEST AFRICA

TRADE & INVEST AFRICA A F R I CAâ&#x20AC;&#x2122; S L E A D I N G T R A D E

INVESTMENT JOURNAL By Ocean Rock Media

ÂŠ 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.

TRADE & INVEST AFRICA

Foreword

As an investor where do you start in Africa…. Nigeria or South Africa or…?

recurring theme in the last few months among analysts of African development has been the challenge Nigeria presents South Africa as Africa's biggest economy. Nigeria has the population (164 million as opposed to South Africa's 60 million), and over the past few years has demonstrated higher GDP growth than South Africa. (6.3% percentage versus 2.5%; over the past 5 years Nigeria has averaged 6.9% and South Africa 2.2%, with FDI inflow to Nigeria $7 billion, South Africa $4.6 billion). The two countries’ employment levels are about the same (which is to say that they both have high levels of jobless people) and both have their share of corruption. Nigeria's official anticorruption aspirations suffered a setback when in early February President Goodluck Jonathan sacked Lamido Ganusi, governor of the Nigerian Central bank, for accusing the Nigerian oil authorities of a massive illegal dispersion of oil revenues. The President's action had an immediate and pronounced negative effect on foreign investors. (Incidentally, while Nigeria has oil and South Africa does not, this brings with it a curse: the whole economy has come to depend on that oil with a resulting loss of productivity in industry, manufacturing and agriculture). Neither country is an easy place to do business if you ask foreign business people. But both are politically stable. Nigeria, of course, has its Boko Haram Islamic terrorist movement whose violent activities have until now been concentrated in the far North East of the country. There is nothing like Boko in South Africa, but, oddly enough given the country's longer independent status and more mature private and public institutions South Africa seems more unsettled largely because of

what might (perhaps too kindly) be described as "hyper-active" labour unions. South Africa's mining industry, for example, once so strong in generating jobs and foreign investment, is seriously troubling those same investors as the recent Mining Indaba showed. And investors into South Africa generally complain of uncertain government policies, confusing regulatory practices, and arbitrary awards of state licenses and permits. Both countries face important elections - South Africa on 7 May this year, and Nigeria early in 2015. Both their present leaders are controversial, admittedly for different reasons. While the size of the economy is obviously an important consideration from a marketing point of view, South Africa's strength lies in the diversity of its economy - it's offerings are from architects to zoologists. And although it is no longer the obvious gateway to Sub-Sahara Africa as it used to be for decades - others compete for that accolade - South Africa is still the preferred route for foreign companies into Africa. Aside from its financial strengths and the presence of South African banks and financial institutions elsewhere on the continent, the penetration of South African companies into the African market is very impressive. For example, the South African retailer Shoprite Checkers has no fewer than 1,500 stores in 18 African countries outside of South Africa. In fact, South Africa is today the biggest foreign investor in Africa. South African business people therefore have the experience of setting up in the subcontinent and thriving there. Analysts no doubt will continue debating which is the more promising country from an economic view - Nigeria or South Africa - after Michael Power of Investec

TRADE & INVEST AFRICA

TIA

Dr Denis Worrall threw “n groot klip in die bos” (meaning “to throw a big stone into the bush” the richness of the Afrikaans language continues to surprise) in an article under the provocative title "Forget about South Africa and Nigeria". Power, always an interesting commentator, reminded us of the rather trite point that Africa has for centuries been the supplier of raw material, whether minerals or agricultural, for products made elsewhere and exported back to Africa. That, says Michael, is changing and changing fast. “Africa is starting to make things at home, and not merely supplying the ingredients that go into the making of things elsewhere. And having made them it is starting to export them." And where is this happening most impressively? As Michael puts it: "Fittingly, this transformation is appearing in that part of Africa which is closest to where the sun rises - in the East. And this is happening in part because of East Africa's proximity to the economic renaissance of the other East – in Asia." Africa's new economy is taking root in East Africa with, as Michael puts it, "Kenya and Ethiopia (being) at the forefront, with Tanzania and Uganda reinforcing this emerging regional cluster of more than 300 million people." So he says - forget about South Africa and Nigeria, look to East Africa! Interesting, don't you think? Dr Denis Worrall is Chairman of Omega Investment Research (Pty) Ltd and serves as Editorial Adviser to Trade & Invest Africa. He has produced a fortnightly brief “Insight” for more than 20 years which goes to 8,000 companies and individuals in 26 countries. Should you wish to receive it please contact Stacey Farao - staceyf@omegainvest.co.za

Introducing

BLUESKY AIRWAYS your future connection in

Botswana & Southern Africa

excellence

AIRWAYS

reliability safety

www.blueskyairways.co.bw

Based at Sir Seretse Khama International Airport, Gaborone.

e-mail : info@blueskyairways.com

“When we say

Welcome Aboard,

“

we mean it”

ravel is often synonymous with stress” says Mark Spicer, Managing Director of BlueSky “...and business travellers usually don’t need any more hassle. Our goal is to make the journey a time to de-stress, to relax and unwind”. BlueSky wants its passengers to enjoy the journey. That means, first, making passengers feel totally safe and second, completely satisfied with their travel experience. BlueSky Airways, a new airline serving Southern Africa, seeks to offer new options and heights in customer service. Air travel in Africa does not always have the best reputation. That’s why BlueSky has put together a team of experts from all over the world, with decades of combined experience, to offer its customers service excellence, reliability and safety standards comparable to the industry’s leaders.

“we’re not flying passengers, we’re flying guests” Mark Spicer and his BlueSky partners have been involved in the aviation industry in Southern Africa for decades. Mark Spicer Managing Director of BlueSky Airways

A Modern-day Classic - globally famed for its reliability, versatility and performance, the Boeing 737 is the equipment of choice for BlueSky Airways

They have travelled extensively throughout the region and know the needs and wants of travellers firsthand. “We’re not flying passengers, we’re flying guests”, said Mark Spicer ...and we don’t see any reason why high service standards expected elsewhere in the world shouldn’t also be enjoyed by passengers in Southern Africa”. BlueSky believes that its choice of modern aircraft and in particular the Boeing 737, one of the most successful commercial jet aircraft in history, is a key decision in ensuring that guests commence and complete their travel in a manner exceeding expectations. BlueSky passengers will also be able to enjoy a choice of seating class, including Business Elite, offering that extra comfort and exclusive service that business travellers deserve. By combining a wealth of experience, knowledge and passion for aviation, with the use of industry-leading equipment, BlueSky Airways plans to take air travel in southern Africa to new levels of customer satisfaction.

TRADE & INVEST AFRICA A F R I CAâ&#x20AC;&#x2122; S L E A D I N G T R A D E

INVESTMENT JOURNAL By Ocean Rock Media

Editor Stef Terblanche stefterblanche@telkomsa.net Editorial Advisor Dr Denis Worrall Staff Writers A.B. Gondwe Etienne Lefebre Terblanche Contributing Writers Prof. Douglas Boateng Hennie Human Design Kurt Daniels kurtdaniels5@gmail.com Production & Client Liaison Lauren Phigeland production@oceanrockmedia.co.za General Manager & Finance Controller Gail Florus gail@oceanrockmedia.co.za Marketing Advisors Cheryl Pinter Nigel Milton Robin Temmers Distribution & Advertising Enquiries Shakier Brenner shakier@oceanrockmedia.co.za Subscriptions Lauren Phigeland production@oceanrockmedia.co.za Publisher Shakier Brenner shakier@oceanrockmedia.co.za 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 +27 (0)21 072 0123 Fax: +27 (0)21 461 7471

The

is a perfect

Destination!

Letter from the editor

ur latest issue of Trade & Invest Africa (TIA) comes to you shortly after the conclusion of the biggest summit ever held between Africa and the European Union. The event took place over two days in Brussels with some 80 African and EU countries attending, 61 of them represented by their presidents or prime ministers. Among those on the EU team attending the summit were France’s President François Hollande and Germany’s Chancellor Angela Merkel. Sadly, Britain with its long history in Africa sent only its foreign minister, and just as sadly the leader of what was then still Africa’s biggest economy, South Africa’s President Jacob Zuma, also did not attend. Yes, it’s true, since the summit Nigeria has overtaken South Africa as the continent’s biggest economy. Nonetheless, the summit came at a time when relations between Africa and Europe had changed vastly from what they were a decade or more ago. Africa’s rapid growth, immense changes in global geo-politics, the shifting balances and relations between emerging and developed nations, as well as the various financial and economic crises of the last few years, had all played a role in making the world look very different from what it did a mere ten or fifteen years ago. While Europe had for over a century been Africa’s biggest trading partner by far, that honour now goes to China. But fifteen or twenty years ago, little more than the occasional political gesture moved between Africa and China. Today more than US$200billion worth of goods are shipped between the two. That places Africa collectively as a trading partner of China in fifth place behind Taiwan, South Korea, Japan and its top trading partner, the United States. Yet most of what Africa exports to China is still only its raw materials, and it was this, tied to the commodities boom of recent years that, helped Africa to achieve growth rates well ahead of most of the rest of the world over the past decade. However, research from the McKinsey Global Institute in 2010 – when everyone was trying to figure out what was behind Africa’s sudden growth – revealed that resources accounted for only about a third of it. The rest, the research

showed, came from structural changes in many African countries that stimulated activity and growth beyond resources in the domestic economies. Even so, with China’s growth rate slowing, as well as that of India and Brazil, with whom Africa’s trade has also rapidly grown in recent years, the question is whether Africa will be able to maintain its recent growth performance. That is what makes this Africa-EU summit so important. Europe continues to recover from its recent crises. New forecasts from the European Commission in February put GDP growth in the European Union at 1.5% this year and 2.0% next year, with growth estimates across the smaller euro zone being slightly less. By the conclusion of the summit, the African and EU delegates had agreed that what was required is a fundamental shift from the traditional aid provision, to trade and investment in order to stimulate economic development and growth, reduce poverty and create jobs. And they would do this within a new relationship as equals. What is important here is that this sets the stage for a new era of the two continents moving away from a trade-off of European aid and African exports of raw materials. More substantial trade and investment leaving a much more diversified and longerlasting footprint, now becomes possible. Among the 63 points agreed to at the summit it was stressed that future policies would focus strongly on industrialisation, developing green industries, advancing agriculture, stimulating beneficiation and adding value, developing economic infrastructure, and building strong services sectors. This takes the EU approach beyond the commonly held view – though not entirely true – that China is merely on a resources raid without investing in Africa’s development. A common sentiment heard at the summit was that Africa offers immense opportunities. Now it is up to governments and their various agencies, corporates, investors, traders and entrepreneurs to seize these opportunities. Having said all of this, it does not mean that Africa’s vast supply of every possible natural resource should be any

TRADE & INVEST AFRICA

TIA

less important. The kind of development envisaged at the summit will be slow. Africa produces more than 60 different metal and mineral products, among them several of the world’s most important ones. It hosts one of the largest mineral industries in the world and sits on more than 30% of the world’s mineral reserves. Vast new oil and gas reserves are being discovered regularly. For a long time to come Africa will rely heavily on its resources, while these will no doubt also play a large role in promoting the kind of future development envisaged at the EUAfrica summit. That is why, in this edition of TIA, we have focused strongly on mining in Africa in our cover spread of articles. For a century South Africa’s mining industry led the world. But in recent times it has lived through a torrid time, yet seems to have innovatively responded to and overcome each new crisis. At the same time as mining in a variety of resource sectors worldwide is under pressure, mining in a number of African countries seems to be experiencing boom times. There too many opportunities are presenting themselves. We therefore took an in-depth look at what the future may hold. We trust you will enjoy our features on mining as well as all the other articles we bring you in this edition. STEF TERBLANCHE

editor

Snippets

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

Renewables projects on the rise in Africa

News & Views

Compiled by TIA Staff Writers from Various Sources

Financing trends will stabilise into 2014. In 2013, there was a fundamental shift in the traditional leveraged project finance templates towards captivebalance-sheet funding from large international utilities. Source: Frontier Market Network Gabon’s aviation sector earmarked for growth

JOHANNESBURG - The biggest trends in renewable energy (RE) in South Africa will remain largely unchanged from 2013. There is an ongoing annual allocation of 1000+ MWs under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), which will continue to attract the world’s RE investors, utilities and pedigreed developers. Onshore wind and solar photovoltaic (PV) will remain dominant RE categories with a steady churn of projects taking place using the other kind of solar power (concentrated solar power or CSP). There will be relative increases (off a low base) in biomass, biogas and possibly some small hydro schemes. For the rest of Africa, certain countries will continue to progress and dominate RE attention, mostly in West and East Africa due to demand size. Due to energy security being the key driver, there will remain a large number of IPPs procured on an unsolicited basis, but many countries are now moving towards a more regulated procurement regime. An example is Get-Fit in Uganda or auction processes that are following the South African public procurement model. The broader African RE market will grow exponentially in 2014 off a relatively low base. Competition will be intense.

TIA

Airport in Libreville, increased 7.36% year-on-year (y-o-y) in 2012, with passenger numbers reaching 830,376. This marks an acceleration in growth, with passenger volumes having increased by 15% between 2009 and 2012. International arrivals totalled 417,045, up 13.29% y-o-y. Significantly, the number of passengers from the six member states of the Economic and Monetary Community of Central Africa (Communauté Économique et Monétaire de l’Afrique Centrale, CEMAC) reached 81,625, marking a rise of 17.82% on the previous year’s figures. Source: Oxford Business Group AfDB and Rwanda sign financing agreements to support skills development

LIBREVILLE - Air travel in Africa can be a complicated affair, but with the continent’s current spurt in economic growth has come a push to improve aviation links – and Gabon is no exception. The country has seen international carriers strengthening their presence and passenger numbers on the rise, and two new airline ventures are beginning to take shape, although it may be some time before flights commence. Flights in Africa follow a hub-andspoke system centred around Cairo, Johannesburg and Nairobi, but like many Central African economies, Gabon is keen to establish itself as an aviation hub and play a key part in regional integration efforts. While the country is benefiting from improved indicators, to achieve that goal will required additional improvements in the overall operating environment. Overall traffic through Gabon’s main airport, the Léon M’ba International

TRADE & INVEST AFRICA

KIGALI - The African Development Bank (AfDB) and Government of Rwanda signed two financing agreements to support skills development in the energy sector and local government revenue mobilization. The Fund for African Private Sector Assistance (FAPA) has provided US $800,000 to support the development of critical skills in the energy sector in line with the Government’s objective of increasing the energy generation capacity from the current 110.8 MW to 563 MW by 2017-2018. The technical assistance for

Snippets

skills development in the energy sector is a joint operation initiated by the Bank’s Private Sector and Human and Social Development Departments. Support from the Governance Trust Fund (GTF) amounting to US $482,700 will be used to establish a modern and efficient local government revenue management system in three urban local governments – the districts of Gasabo, Nyarugenge and Kicukiro – to improve tax administration and collection in tandem with the country’s goal of reducing its dependence on donor aid. Source: African Development Bank Côte d’Ivoire to benefit from global cocoa deficit

YAMOUSSOUKRO - The world’s top producer of cocoa beans, Côte d’Ivoire, is set to benefit from an anticipated mismatch between expected demand for the chocolate ingredient and available supply. Commodity traders estimate that the market is heading for a deficit in the next four years, as growing consumption of chocolates and confectionery outpaces production. Cocoa prices rose to a two-year peak in November 2013 and remained high heading into 2014. Côte d’Ivoire has seen a strong start to the current growing season, and increased export revenue should help to boost this key sector and benefit small-scale farmers. In the short term, Côte d’Ivoire’s cocoa industry will be bolstered by a bumper crop in the first half of the 2013/14 season. However, expectations for the year have

been tempered by unseasonably hot, dry weather in recent weeks, and production is expected to drop off after January. Côte d’Ivoire, which accounts for roughly 40% of global supply, is well positioned to benefit from growing demand. Agriculture is an integral part of the Ivoirian economy, making up more than one quarter of GDP in 2012 – CFA3.5trn (€5.3bn) – and around 40% of export revenue. Cocoa alone represents 15% of GDP. Source: Oxford Business Group Hazy outlook for SA’s Property Sector in 2014 JOHANNESBURG - The 2014 fortunes of South African property market inextricably lies on the country’s economic performance and other markets, according to Frank Berkeley, Managing Executive at Nedbank Corporate Property Finance. This meant the interim local property would not soon enjoy the uptick that was becoming apparent in some global property sectors, says Berkeley. While the current rand weakness could have translated into massive opportunities for SA’s economy to benefit from export, the ongoing production challenges faced by a number of industries means that the country remains largely unable to leverage those opportunities to sustainably improve its economic position, he said. On the positive side and despite a very challenging 2013, Nedbank Corporate Property Finance (NCPF) enjoyed a consistently strong performance characterised by a number of financing opportunities– and Berkeley is confident that this year should offer similar opportunities. Even a cursory glance at the property finance division’s book reveals the quality of clients and deals enjoyed by the business despite the difficult operating environment. In fact, NCPF closed some of the biggest deals ever seen in South Africa over the past year, including the R1,7bn Baywest Centre in Port Elizabeth, the R1bn Mthatha Mall and the massive R3bn Mall of Africa development.

TRADE & INVEST AFRICA

TIA

Source: SA Commercial Prop News Bank of Ghana issues new restrictions to support local currency ACCRA - Ghana’s central bank has issued new regulations to improve liquidity in the interbank currency market and shore up the local currency, its governor Henry Wampah announced recently. The regulations require all commercial banks in Ghana to “actively” quote a two-way pricing of currency exchange and limit the spread on corporate transactions to a maximum of 200 pips. They are transformational and will bring significant improvement into the interbank market. Ghana’s cedi slumped around 20 percent against the dollar in 2013 and sentiment remains bearish mainly due to poor liquidity, traders said. President John Mahama said that stabilising the currency was a priority if government was to enable the private sector to lead economic development. Other priorities include bringing down inflation and the budget deficit, he said. Macroeconomic instability including a falling currency casts a shadow over Ghana’s economy. The country is viewed as one of Africa’s brightest prospects because of its stable democracy and rapid growth powered by exports of cocoa, gold and oil. Source: The Africa Report / Reuters South Africa’s biggest media group Naspers’ focus shifts to Internet interests

CAPE TOWN - Under departing CEO Koos Bekker South Africa’s largest media group, Naspers, evolved into a global

Snippets

player of note. Now, with new CEO Bob van Dijk taking the reins, the group will be looking to unlock value in its as yet unprofitable Internet investments through his extensive e-commerce experience, reports the Financial Mail. Though Tencent, China’s largest Internet company by market value, and Russian Internet services company Mail.ru have been highly successful, some of Naspers’s other Internet assets, such as ibiboGroup in India, have yet to make money. The Naspers group has been through what it describes as four “technology spurts”, from pay-television service MNet to mobile phone operator MTN, then its Internet ventures and now e-commerce. Koos Bekker (61) has stepped down as CEO to take a year off and look for the fifth wave that will follow once e-commerce reaches maturity. Meanwhile, Van Dijk, who is the group’s most senior e-commerce chief, is expected to apply his experience as former head of eBay Germany and chief operating officer of international media group Schibsted’s Classifieds. Source: Financial Mail South Africa is poised on the brink of a digital revolution JOHANNESBURG - South Africa is poised on the brink of a digital revolution. Recent research carried out by consultancy World Wide Worx shows that the Internet economy contributes two percent to South Africa’s gross domestic product (GDP). This contribution is rising by around 0.1 percent a year, meaning it should reach 2.5 percent by 2016. The total spent by consumers, SMEs and the Government on products and services via the Internet, as well as on Internet access and infrastructure, is R59-billion. Even though traditional, non-digital media will continue to dominate overall entertainment and media spending over the next five years, much of the growth is expected to come from the digital space, according to PwC’s ‘South African entertainment and media outlook: 20132017’ survey.

Looking to the future, there are three waves of opportunity for organisations to generate profitable growth: First digital wave: Improve e-commerce profitability with a better customer experience, more compelling propositions, more effective distribution or smarter pricing. Second digital wave: Building on this understanding of customers by looking at the outcomes customers are trying to achieve and finding ways to enable these outcomes.Third digital wave: Act as a trusted fourth party on behalf of customers to aggregate their digital data, and to meet their needs through managing relationships with companies offering products and services. Source: PwC

TIA

and economy. Speaking at the closing ceremony, Septime Martin, the Bank’s Resident Representative in Angola, said that the training was part of the AfDB’s efforts to strengthen institutional capacity and human resources in Angola’s public institutions. He also stressed that the training should provide solid knowledge and understanding of AfDB rules and procedures to improve efficiency in the management and disbursement of its project resources. Source: African Development Bank The New Role of Safety Nets in Africa

AfDB Strengthens Angola’s Public Institutions

LUANDA - Last year the African Development Bank (AfDB) organized in Luanda, Angola a workshop focused on strengthening capacity for projects and financial management in the country’s public institutions. The training was organized in collaboration with the African Development Institute and the support of the Portuguese Trust Fund. It focused on the tools used to ensure quality at the first stages of AfDB projects, financial management and AfDB Disbursement principles and methods. The workshop was attended by 25 participants from Government agencies and project staff from agriculture, fisheries, finances, planning, environment, transports, energy, water

TRADE & INVEST AFRICA

WASHINGTON – When the recent global economic crisis threatened Africa’s progress in reducing poverty, safety nets emerged as a fundamental way to prevent a reversal of these gains. A new World Bank review of the use of these programs in 22 African countries shows that safety nets are critical instruments for reducing extreme poverty and increasing shared prosperity. The review, entitled “Reducing Poverty and Investing in People: The New Role of Safety Nets in Africa”, notes that safety net programs in Africa are working to reduce poverty in a number of ways. Impact evaluations provide evidence that safety nets help households to meet basic consumption needs, protect assets such as livestock, and invest in their children’s health and education. Research also suggests that safety nets could potentially boost future well-being and poverty reduction because they help poor households make productive

Snippets

investments today. They can also produce second round economic stimuli in poor areas. In most African countries reviewed, safety nets tend to be fragmented and too small to effectively protect the poorest. However, in some countries that are leading the way forward, such as Ethiopia, Kenya, Mozambique, Rwanda and Tanzania, safety nets are beginning to evolve from fragmented standalone programs into robust safety net systems. Source: World Bank

Egypt, Ghana, Kenya, Mozambique, Nigeria, South Africa and Tanzania. The countries were chosen based on their economic significance, strong growth in recent years and their potential as transportation and logistics gateways. The report aims to give investors and other interested stakeholders an insight into the key economic regions in Africa. Interviews were carried out with executives from African, European and Asian companies that operate in Africa. Source: PwC

Africa gearing up – future prospects in Africa for the transportation & logistics industry, according to PwC report

Kenya starts drilling boreholes in huge aquifer NAIROBI - A large-scale borehole drilling of the largest aquifer discovered in Kenya’s dry northwest region — Turkana County — last year is expected to begin soon, says John Nyaoro, director of water resources at Kenya’s Ministry of Environment, Water and Natural Resources. The Kenya government-funded project is part of a plan to use major water reserves for economic gains, especially through irrigation for agriculture, he adds, citing the safety of Lotikipi aquifer, where the drilling will occur, for domestic use and an existing survey to establish if its water quantity can be used for commercial purposes. The project is in response to a survey commissioned by the United Nations Educational, Scientific and Cultural Organization (UNESCO) in partnership with the government of Kenya which identified shallow aquifers and five deep high capacity groundwater reserves in the drought-stricken northwest Kenya in August last year. Source: SciDev.Net’s Sub-Saharan Africa desk

JOHANNESBURG - While South Africa tops the list for having the most developed transport and logistics sector in Sub-Saharan Africa placing it on a par with some of the world’s industrialised countries, logistics companies are looking to the rest of Africa for investment opportunities. South Africa is also regarded the best performer in Africa when it comes to trade facilitation logistics and among the best in terms of transport infrastructure. These are some of the findings of PwC’s ‘Africa gearing up: ‘Future prospects in Africa for the transportation & logistics industry report issued recently. The research was carried out by PwC together with Econometrix, South Africa’s leading economic consultants. The report focuses on 10 of Africa’s leading developing nations: Algeria, Angola, the Democratic Republic of Congo (DRC),

Infrastructure is biggest headache for COMESA region AKA - Lack of adequate infrastructure in transport, energy and communication and information technology (ICT) remains one of the most significant limitations to economic growth and development in the Common Market for Eastern and Southern Africa (COMESA) region.

TRADE & INVEST AFRICA

TIA

In the energy sector, the total installed capacity for electric power in the 19 COMESA countries is about 55,800 Megawatts. This contrasts with to a total of 124,000 for France and over 1,000,000 megawatts for the United States of America (USA), says the outgoing Chairperson of the COMESA Bureau of the Council of Ministers Hon. Amelia A. Kyambadde. This translates to high energy costs which are a major impediment to the expansion of the manufacturing sector in COMESA region. On the transport sector, the Hon. Kyambadde who is the Minister of Trade, Industry and Cooperatives, Uganda, observes that for every three rural Africans, only one of them dwells within two kilometers of an all-season road. The railway network is another sad story. With an area of approximately 12 million square kilometres, COMESA region has a network of 28,000 kilometres of an old colonial. India with an area of about three million square kilometres has 63,000 kilometres of rail. In regard to marine transport, Sub-Saharan Africa with about 23 ports have a total capacity of around 350 million of cargo. In comparison, the Port of Singapore alone handles about 470 million of cargo more than all the cargo handled by the SubSaharan Africa ports. On Information Communication Technology, about 15.4% are estimated to be internet users in the sub-Saharan Africa which is way below the world average of 35.6 per 100 people. Source: COMESA Japan to invest $32bn in resource-rich Africa TOKYO - Japan has promised financial assistance to resource-rich African nations totalling $32 billion (R357bn) for investment in infrastructure and mineral resource development, along with education, health care and human resource development, in its bid to cement relations with the continent. Japan’s vice-minister of economy, trade and industry, Yoshihiko Isozaki, recently unveiled “Japan’s new assistance package for Africa”. Isozaki said the continent was

Snippets

the “starting point” of the supply chain for the minerals Japan needed to produce cars and electronic appliances. Japan has only one operating gold mine and relies on imports for 100 percent of the basic and minor metals it needs in car manufacturing. Without security of supply for these metals, it stands to lose a large part of its global market share in hybrid cars, for example. It has 94 percent of that market. Isozaki announced that the new assistance package would see Japan’s public and private sector invest $32bn in infrastructure, human and mineral resource development in Africa over the next five years. Source: Business Report Africa’s infrastructure needs estimated at US$93b a year BRAZZAVILLE - Africa’s infrastructure requirements have been estimated at US$93 billion per year, according to the Congolese Minister for Spatial Planning Jean-Jacques Bouya, quoting a study by the African Development Bank (AfDB). The minister announced the figure at the “Build Africa” Forum holding in Brazzaville, the Congolese capital. He said of the amount, the continent can only mobilise about US$45 billion at present, hence the need to find a way to address the US$48 billion deficit. The New Partnership for Africa’s Development (NEPAD) has already identified large-scale infrastructure, the realisation of which will accelerate the integration of the African continent. They include the Brazzaville-Kinshasa road-rail bridge, the Trans-Saharan Gas Pipeline between Algeria and Nigeria, and the north-south corridor the Cape TownCairo project involving 8 countries. Over 1,000 delegates and experts in infrastructure from around the world are participating in the inaugural edition of the “Build Africa” Forum. Source: African Manager Johannesburg’s R110bn infrastructure plan JOHANNESBURG - The City of Johannesburg’s plan to invest R110bn

to upgrade ageing infrastructure in the inner-city, has been embraced by economists, but they also warned that funds should be channelled to address challenges in the city’s water and electricity supply. In a recent announcement ahead of the C40 Summit in Sandton, Johannesburg Executive Mayor Mpho Parks Tau said the city would spend more than R110 bn on the provision of infrastructure over the next ten years. Johannesburg suffers ageing infrastructure, capacity constraints and backlogs, which have negatively affected water usage, sewerage and electricity supply. Another area in need of attention is the the state of the city’s roads and traffic. In addition, Tau revealed that in the 2013/14 financial year alone, R7.3 billion will be spent on infrastructure - almost double that of the R4.6 billion in 2012/13. The 2014/15 financial year is set to allocate a further R13.5 billion, he added. Source: Ayanda Mdluli| at Moneyweb Africa as hospitality’s unchartered territory LAGOS - Africa’s hospitality sector promises some of the biggest rewards, as rising GDP and greater investment in infrastructure is helping the continent leverage its natural beauty to tourists. The rise of the middle class in emerging markets is leading to major shifts in the global hospitality sector. International hotel operators such as Intercontinental Group, Hilton Worldwide, Carlson Rezidor, Accord, Marriott and Starwood have seen the tide turning and are positioning themselves in Latin America, Asia and Eastern Europe. But it’s Sub-Saharan Africa (SSA) that remains the final frontier: the least developed region but with some of the greatest prospects. Until recently 60 hotel brands represented around 30 major hotel groups in the African continent, with more than 50% of the hotel developers operating in five countries of North Africa and the rest in 50 SSA nations. But that disparity between North Africa and SSA is shifting. Nigeria-based hospitality consultancy W Hospitality

TRADE & INVEST AFRICA

TIA

Group notes that SSA development pipeline grew 23% last year alone. Source: alifarabia.com for zawya.com. Africa Gearing Up: PwC Report on Transportation & Logistics JOHANNESBURG - A new analysis titled Africa Gearing Up: Future prospects in Africa for the transportation and logistics industry was released earlier this year by PricewaterhouseCoopers (PwC). In a joint introduction Klaus-Dieter Ruske, Global Leader Transportation & Logistics, and Peter Kauschke, Director Transportation & Logistics stated: “More than a billion people, 54 countries, a continent bigger than the USA, Europe, China and India combined. Yet Africa is barely present on the map of world trade.” There’s no doubt that Africa faces huge challenges – arguably bigger than any other region. Recent news about growing flows of refugees from Africa to neighbouring continents shows us quite plainly how desperate living conditions are for many in their African homeland. Not surprisingly, for many the phrase African logistics currently brings to mind humanitarian logistics. But the situation is changing fast and logistics strategists can’t afford to ignore the African market of the future. The global transportation and logistics industry can play a vital role in Africa’s efforts to gear up – building its infrastructure, enabling supply chains and distribution networks, providing mobility – and ultimately helping create jobs for its people. . The full report is available for download at: http://www.pwc.com/gx/ en/transportation-logistics/publications/ africa-infrastructure-investment/index. jhtml. Source: PwC / MarineLink.com Zambia plans sovereign wealth fund to diversify from mining LUSAKA - Zambia, Africa’s leading copper producer, plans to establish a sovereign wealth fund to stimulate investment in strategic non-mining industries, a treasury official said recently. “We are currently working on the

Snippets

concept which will be presented to cabinet,” the ministry of finance’s permanent secretary in charge of budget and economic affairs, Felix Nkulukusa, said. He did not give the size of the fund or say when it would be finalised. President Michael Sata said that the government planned to introduce an Industrial Development Corporation (IDC) under which the fund would be established. The IDC would boost the contribution of state-owned companies to national development by placing them under one umbrella holding entity, Sata said. He said the IDC was a government strategy to enhance domestic capital formation, wealth creation and preservation by focusing on exploiting the country’s advantages in natural resources and actively developing industries and enterprises. Source: Theafricareport.com Mozambique: Norwegian Aid for Energy, Fisheries and Statistics MAPUTO - The Norwegian government has pledged continued support for the Mozambican energy and fisheries sectors, and for the National Statistics Institute (INE). Norway has been supporting Mozambique in fisheries for the past 30 years, and in December the two governments signed an agreement continuing this support until 2017. The cost of this programme is US$29-million, of which the Norwegian government will provide US$24.2-million. In the energy sector, Mozambique and Norway have signed agreements on institutional cooperation between central government institutions of the two countries working on energy matters, which flow from a Memorandum of Understanding of November 2012, intended to support the sustainable management of energy resources. In addition to capacity building and rural electrification, Norway is providing financial support and technical assistance to the major investment projects planned. Source: allAfrica

Mozambique set to use Zimbabwe’s tourism model

MUTARE — Mozambique is keen to engage with Zimbabwe in order to boost tourism and infrastructure development in the two countries, an official has said. The director of Tourism in Mozambique, Fredson Bacar said his country had a lot to learn from Zimbabwe’s tourism, which is one of the fastest growing sectors of the economy. Bacar told Standard Business that Mozambique would take advantage of the Memorandum of Understanding (MOU) that the two countries signed in November last year as part of efforts to increase tourism co-operation. He said Zimbabwean investors were welcome in Mozambique where they could play a major role in helping develop the country and spruce up its image as a safe tourist destination. He said Mozambique wanted Zimbabweans to help develop infrastructure destroyed by years of civil war in the 1980s. Source: Clayton Masekesa, The Standard Growth remains stable in SA banking industry but challenges lie ahead JOHANNESBURG - Global Credit Ratings (GCR) recently announced its South Africa Bank Bulletin results which gave an outlook and overview of the latest developments in the economy, regulatory environment and banking industry in South Africa. Dirk Greef, Sector Head: Financial Institution Ratings at GCR, says, since 2003, South Africa has averaged quarteron-quarter real GDP growth of around 3.3%, reaching a high of 7.2% in 3Q of

TRADE & INVEST AFRICA

TIA

2004 and a low of negative 6.3% in 1Q 2009. “Overall, South Africa evidenced a seasonally adjusted and annualised real (“SAAR”) reduction in GDP at constant 2005 prices of 2.5% in 2012 (2011: 3.5%; 2010: 3.1%), to register the first deceleration in GDP on an annual basis since 2010.” He says financial soundness indicators remain strong although rising risks from unsecured lending have been noted, given the high household debt burden. “Consequently, should the interest rate cycle turn and/or house prices fall, at the current elevated debt levels, the household sector and related credit providers exposed to this sector could be very vulnerable,” explains Greef. He says the subdued economic growth is attributed mainly to labour unrest in the mining and agricultural sectors that crippled production. Source: ItiNews / Global Credit Rating Co. China’s slowdown unlikely to stem subSaharan Africa’s 6% growth LONDON - Sub-Saharan Africa could meet growth expectations of more than 6 percent this year, despite a slowdown in China, but the outlook for north Africa was more uncertain, African Development Bank (AfDB) says president Donald Kaberuka. The bank forecasts growth of 5.3 percent across Africa this year and 6.2 percent in sub-Saharan Africa. Slower growth in China has hit prices of commodities, sub-Saharan Africa’s key export. But the region’s economy had diversified, Kaberuka said. “The African growth story is only partly a commodity story – it’s also about FDI [foreign direct investment], private equity, remittances, urbanisation,” Kaberuka said. “The commodity story only explains maybe a third of what is happening.” He said growth expectations in North Africa were less clear. The Arab Spring uprisings of 2011 continue to take a toll on political stability in several countries, leading to overall growth levels of about 3.2 percent to 3.5 percent. Source: Reuters / Business Report

South Africa’s mining industry….seeking a sustainable future

TRADE & INVEST AFRICA

MINING

“

TIA

South Africa’s all-important mining sector has lived through a torrid time these last few years…which has inadvertently put the spotlight on mining across the African continent. And while several African countries seem to be experiencing boom times, mining in a variety of resource sectors worldwide is under severe pressure. So just what does the future hold for mining in South Africa and the rest of Africa, and how sustainable is it all?

“

olitical pressures, threats of nationalisation, regulatory turmoil, electricity blackouts, violent and destructive labour actions, low demand in weak markets, global economic pressures, serious environmental issues, and missing out on the last resources boom. You name it, the South African mining industry has experienced it all since 2008. Yet it’s still there, resilient, surviving, grinding away and delivering the goods. And there is much to be optimistic about for the future, say those who should know. While its multiple troubles kept the South African mining industry in the headlines and investors filled with uncertainty these last few years, not only South Africa, but the mining industry across the continent was placed under the magnifying glass. Across Africa much is happening, with new resources discoveries and massive investments taking place in a number of countries. And a number of other African countries benefitted from South Africa’s troubles as investors sought safer havens. Nonetheless, not only has the South African mining industry survived the most serious storms in its history, but the various watershed crises since 2008 have catapulted it onto a new trajectory few would have foreseen a decade ago. But just how sustainable will all of this prove to be? For South African miners there first was

the electricity crisis of 2008 when power to the mines was cut of for a period, bringing production to a standstill. This was followed by sharp increases in electricity costs as the country’s government-owned power utility set out to increase its capacity, which in turn sent the operating costs of mines skywards. Against the background of a global economic crisis that weakened commodity markets, there followed the highly damaging debate whether or not South Africa’s mining industry should be nationalised, a debate started by the militant youth wing of the governing African National Congress (ANC). On top of it all in 2012 came a period of massive labour unrest on South Africa’s platinum mines – later spreading to the gold mines - which reached its low point when police opened fire on illegally striking workers, killing 34 workers and wounding 78. Before this incident several people had already died at the hands of the workers, including two policemen. The weak global market conditions and the labour unrest impacted especially on South Africa’s platinum sector, the world’s largest with some 80% of global platinum reserves. More than half of its operations descended into marginal or loss-making mode in 2012. From being the star performer in South Africa’s mining sector when platinum group metals (PGMs) surpassed gold as

TRADE & INVEST AFRICA

the number-one foreign revenue earner for South Africa in 2004, it was now a sector in serious trouble. Even coal, the one-time stepchild of mining, overtook platinum as the highest earning commodity. Coal, alongside copper, could now also claim to have the best anticipated greenfield production growth outlook for this decade. Meanwhile the gold sector, also affected by the industrial unrest, experienced its own problems. As investors and analysts took an ever dimmer view of the developments in South Africa, the situation contributed to a downgrading of South Africa’s sovereign credit rating by several international rating agencies. Investors started by-passing South Africa, turning instead to other parts of the world including Africa’s so-called frontier markets where labour relations appeared far more stable and investorfriendly policy reforms provided longterm certainty. Power crisis The first crisis to hit the South African industry was the global financial crisis of 2007/08 and the onset of the global recession, with markets in turmoil and prices in most sectors plunging, with the exception of gold which once again lived up to its reputation as a safe haven in

MINING

TIA

term demand-side management and energy efficiency programme, while mines entered into the Energy Efficiency Accord with the Department of Minerals and Energy, committing them to a 15% reduction in energy usage by 2015. Resilient mining sector

times of uncertainty. However, coming hot on the heels of the financial crisis, South Africa was hit in 2008 by a catastrophic power crisis as demand outstripped supply across an ageing national grid operated by the countryâ&#x20AC;&#x2122;s government-owned power utility, Eskom. Alongside the labour troubles then yet to come, the electricity crisis was the biggest challenge the industry had to face in these troubled times. As the crisis hit home with rolling blackouts, Eskom responded by

temporarily shutting off power to the mines and other large industrial users of electricity. As mines halted production, precious metal prices soared to new highs. Despite the fact that even prior to 2008 a number of mining groups were already looking at reducing energy usage and/or their dependence on Eskom, as well as reducing their carbon footprint, everybody was caught off guard. Eskom and many of the largest electricity users met to plot the uncertain way forward. Eskom initiated emergency short-term measures as well as a long-

TRADE & INVEST AFRICA

Attesting to the South African mining industryâ&#x20AC;&#x2122;s resilience and innovation was its response to the electricity crisis. Apart from Eskom itself having embarked on an ambitious build programme to expand its power generating capacity, the threat to the mining industry has already been substantially reduced by the industry itself which adopted many innovative measures to improve efficiency, curtail energy waste, use the latest renewable and clean energy technologies, cut costs and lessen dependency on Eskom. For instance, many of the bigger mines teamed up with independent power producers (IPPs) to establish power plants on or near mines. Others engaged in co-generation producing electricity from waste heat, steam, or other waste from mining operations. A number of mines also installed new energy-efficient mining technology, invested in renewable energy sources such as wind, hydro and solar energy or hydro powered equipment for direct mining operations, providing positional cooling where work is performed. Innovative programmes were started with mines resorting to using lowquality waste coal to produce energy on-site; or using hydro powered equipment for drilling, cooling and cleaning operations; using backfill to support mined underground areas, lowering underground temperatures and reducing the size of areas to be cooled by as much as 65%; or using waste gas from ferrochrome smelters to produce electricity, among other measures. Energy policies and plans Even so, secure energy supply and the rocketing cost of energy remains a major

South African mines … improving energy management and reducing risk and dependency •

Co-establishing power plants on or near mines with Independent Power Producers (IPP’s);

•

Co-generation of electricity from waste heat, steam, or other mining waste;

•

Participation in Eskom’s demand market participation (DMP) programme entailing voluntary power usage reduction and electricity buyback options;

•

Investing in renewable energy sources such as wind, hydro and solar energy;

•

Utilising hydro powered equipment for drilling, cooling, cleaning operations, and direct mining operations;

•

Installing energy-efficient lamps, light globes and other lighting;

•

Installing new energy-efficient mining technology and using things such as power factor correction equipment which reduces electrical load and minimises wasted energy; and

•

Optimising air compressor usage, the efficiency of section fans and saving energy through cutting back the main surface ventilation fans during times of low air demand.

headache for the industry, resulting in mining groups adopting a number of energy policies and plans. Despite some criticism that many mines only pay lip service to these issues with nice-to-have wish lists in their annual reports, most of the larger South African mining groups very seriously now view energy efficiency and self-sufficiency, as well as reducing their carbon footprint, as a business imperative. Reporting on these activities now form an integral part of the annual reports of most mines.

MINING

Major mining group AngloGold Ashanti says because of the group’s high energy consumption, cost-effective energy security is critical to the company, both for its current operations and future projects. A global strategy to build energy security – including the adoption of clean energy alternatives and energy-efficient technologies – was initially developed by the group in 2011. Another leader in this field in South Africa is Anglo American, which says its primary response to climate change is to use energy more efficiently as energy consumption accounts for 70% of its greenhouse gas (GHG) emissions. “Climate change considerations are now incorporated into our business planning, supply chain and project reviews.” This is done at every Anglo American site. The company hopes to run cost efficient, carbon-neutral mines in 20 years’ time and has already invested over $180-million in low carbon technology and nearly $200-million in low-carbon and energy-efficiency research and technology development, among other things. And another example is Coal of Africa Limited (CoAL), which has several operating collieries among other activities. The company says it has a policy committing it to reducing the amount of energy used during production; optimising energy use through improved efﬁciency technology; capturing and recording as accurately as possible all the savings it has harnessed; and reducing its environmental impact. The company has appointed an “energy champion” on each colliery who will implement policies, promote awareness, collate information, report energy issues, keep records, and participate in energy saving projects. Another example is that of Exxaro which has implemented a consolidated approach to clean energy at corporate strategy level. This, it says, has given the company a clearer understanding of the risks and opportunities presented by energy in the broader sense. And Harmony mining company also cites the steep increases in electricity

TRADE & INVEST AFRICA

TIA

tariffs of the last few years as having pushed the energy efficiency issue from being merely an environmental consideration to being a business imperative. Despite some reluctance among mining companies in other parts of the world, a recent report by Navigant Research forecasts that renewable energy technologies will supply between 5 and 8 percent of the global mining industry’s power consumption by 2022. Political pressures Enter politics. The political debate around whether or not South Africa’s mining industry should be nationalised led to much confusion and uncertainty. In the process it caused a lot of harm as investors ran for cover and looked for other, more secure destinations. However, with the ruling ANC’s national conference of December 2012, that debate was finally largely laid to rest. It was rejected as a policy option by the ANC and the government. Mineral Resources minister Susan Shabangu and other government representatives at this year’s Mining Indaba in Cape Town again confirmed this. Some political parties and trade unions left of the ANC are still calling for nationalisation of South Africa’s mines, banks, agricultural land and other key economic sectors. At this stage there appears to be little chance of these parties and unions making headway with their demands. However, should they grow into a relatively strong position in the next few years and seem to gain the potential to threaten the ANC’s hold on power, they could arguably force the ANC government to reopen the debate and dictate the policy agenda. The forthcoming general election will probably give a good indication of the far left’s potential in this regard. But while the ANC rejected nationalisation as a policy option, it did propose a bigger direct role for the state in the mineral resources sector, new forms of taxation for mines, and "strategic state ownership where deemed appropriate".

MINING

TIA

Strategic nationalisation Apart from the focus in policy deliberations on so-called “strategic nationalisation“ the government has also drafted, but not yet finalised, amendments to its main mining law. Strategic nationalisation, which in essence is just another name for resource nationalism, will focus on three key aspects, namely: Strategic ownership will see the state increase its ownership in strategic sectors where deemed appropriate through equity, using the state-owned mining company as its vehicle. Coal for use by Eskom is a likely target. New mining taxes are to be used to allow the state to capture “an equitable share of mineral resource rents and deploy them in the interests of long-term economic growth, development and transformation". This could take the form a resource rent tax, a "windfall tax" on super profits or some other unspecified measure. Strategic minerals & export taxes to be imposed on designated "strategic minerals" that are categorised as important for inward industrialisation or as key inputs into downstream products. Shale and other natural gases, iron ore, coal and base metals are likely to be targeted. Meanwhile South Africa’s parliament has been deliberating the Mineral and Petroleum Resources Development Amendment Bill which seeks to make several changes to mining law, some of them controversial and opposed by the industry. Among the more controversial clauses is one that will allow the state to declare certain minerals as being strategic. This will allow the state to buy such designated minerals at below-market prices in order to stimulate the beneficiation of raw materials in South Africa and provide, for instance, a secure and less expensive supply of coal to the national electricity utility, Eskom. Even before these latest developments, the South African state’s intervention, investment and participation in the mining industry was already substantial.

TRADE & INVEST AFRICA

MINING

TIA

For instance, it has already effectively nationalised ownership of South Africa’s mineral resources through the Mineral and Petroleum Resources Development Act of 2002, designating these as belonging to the people of South Africa with the State acting as the custodian of these resources. The act also lends support to the emerging junior mining sector in South Africa by enforcing a "use it or lose it" principle. Where large established mining groups lose their rights these could be awarded to small companies. South Africa’s Department of Mineral Resources believes small-scale mining has an important role to play in sustainable development, job creation and poverty alleviation. In addition to the newly established state mining company, the African Exploration Mining and Finance Corporation, there are already a number of state-owned entities that are involved in the extractive sector in various capacities. Among them are the state diamond mining company Alexkor, the Central Energy Fund which is involved in the search for appropriate energy solutions, national oil and exploration company PetroSA, the Petroleum Agency SA which promotes exploration for onshore and offshore oil and gas resources, the Council for Geoscience and the Council for Mineral Technology (Mintek) which both provide research and development, the Mining Qualifications Authority, SA Diamond and Precious Metals Regulator, the State Diamond Trader, and the Mineral & Mining Development Board. Finally, in a further show of its commitment to mining, the South African government’s National Development Plan (NDP) envisages a major future role for the mining industry in stimulating growth, creating jobs, eliminating poverty, and reducing inequality by 2030. This plan was fully endorsed by the ANC in late 2012 but some of its economic clauses are still under review following objections from the ANC’s alliance partners, the South African Communist Party and the Congress of South African Trade Unions (COSATU).

TRADE & INVEST AFRICA

MINING

TIA

including to the gold sector. President Jacob Zuma announced the establishment of a commission of enquiry to be led by retired Judge Ian Farlam and sent an inter-ministerial committee led by Minister in the Presidency Collins Chabane to the scene. The causes and consequences of the Marikana strike and violence are complicated and the the Farlam commission, which is still hearing evidence, has yet to fully determine these. Labour law review

However, it is unlikely that any major changes will be made. Labour turmoil Another development that had a huge impact on South Africa’s mining sector over the last few years, was the violence, upheaval and turmoil seen in labour relations at mines in 2012 and 2013. The aftermath or consequences of this is still impacting on industrial relations on the mines and strike action has not subsided either. Not since the mineworkers’ strike and rebellion of 1922 – when Prime Minister Jan Smuts sent in the army and air planes - has South Africa witnessed such labour turmoil and violence at its mines, particularly those on the platinum belt of the country’s North West province. Between August and September 2012 these developments cost the lives of at least 46 people, with around 300 more injured, most of it occurring at or near Lonmin’s platinum mine at Marikana, North West. At the centre of the upheaval was a new independent labour union, the Association of Mineworkers and Construction Union (AMCU) as well

as independent workers’ committees in which a socialist political organisation, since having formed itself into the Workers and Socialist Party (WASP), was also heavily involved. AMCU has since affiliated to the National Council of Trade Unions (NACTU) a Workerist-leaning trade union federation that emerged from an Africanist/Black Consciousness political and ideological orientation in the 1980s. It is not aligned with any political party but is direct opposition for COSATU which is part of the political alliance led by the governing ANC. AMCU, whose founders came from the COSATU-affiliated National Union of Mineworkers (NUM), had made serious inroads into the membership base of the NUM with its recruitment efforts. In the process AMCU was aggressively confronting mining companies and making substantial pay rise demands. This led to an illegal strike and after several people were killed by strikers, police opened fire on them, killing a large number. This in turn triggered more labour actions and tense stand-offs between strikers, mine management and the state. The strikes soon spread to other mines,

TRADE & INVEST AFRICA

But most importantly, in the wake of the Marikana tragedy, labour relations experts and some union officials were calling for a review of labour laws to prevent the uneven competition among unions that they believe may have contributed to the Marikana tragedy. South Africa’s current labour legislation – largely the result of legislative collusion between the ANC and COSATU - favours recognition of majority unions, leaving little legal space in which minority unions can operate. However, President Jacob Zuma poured cold water on opposition demands for such a review. But following the tragic events at Marikana, AMCU replaced the NUM as the majority union on a number of platinum mines, causing both unions to take a rather ambivalent position on whether or not the majority-union principle should be discarded. COSATU may well change its stance at some point and start putting pressure on the government to change its stance on the majority union rule. Meanwhile the changed roles of the two unions also caused renewed tensions and violence last year. Shortly after these events South Africa’s Finance Minister Pravin Gordhan went on record saying the labour turmoil on the mines had cost the industry more than US$910-million (ZAR10bn) in lost production and would cause exports to fall by more than US$114-million (ZAR12.5bn) during 2013. Gordhan further warned of huge job losses and

MINING

that it would also lead to South Africa experiencing its slowest growth rate since the 2009 recession. The cost has since proven to be even higher. International credit rating agencies also took a dim view of developments, with Moody’s Investors Service and Standard & Poor’s leading the way in cutting their ratings for South Africa. In the aftermath of the labour developments, Cathie Lewis, company secretary at Evraz Highveld Steel & Vanadium, said “labour unrest has become one of the key risks of the 30

industry, which was not necessarily identified as such prior to Marikana”. “I don’t think the industry expected such an outcome with the consequent ripple effect it had on the rest of the industry and spilling over to other industries as well.” Lewis said the labour actions had “changed the environment” and said she believed that employee relations would become more and more important. “Proper employee engagement and not only employee management will also become more important. I foresee that

TRADE & INVEST AFRICA

TIA

unions might be offered board positions in future.” Concurring with Lewis a spokesperson for AngloGold Ashanti said the labour events had forced mining companies to rethink their approach to management in a variety of ways. He warned of imminent restructuring and job losses in the industry…something that has since materialised and has led to something of a stand-off between mining companies on the one hand, and government and labour unions on the other. Meanwhile labour relations in the

MINING

the importance of the role socioeconomic conditions and corporate social responsibility play. This has led to a number of impressive and innovative developments such as provision of housing and land, educational and recreational facilities, and more. Environmental issues

mining sector have since been largely normalised and stabilised. But some tensions between rival unions and between workers and mining companies remain, while unions continue making economically unsustainable wage increase demands and strike activity remains relatively high. There is also little likelihood that the Labour Relations Act will be reviewed any time soon specifically in respect of the majority rule. One positive outcome of the events before and after Marikana is that mining companies in South Africa acknowledged

Another issue that has rapidly risen to prominence in the South African mining sector concerns the environmental responsibilities of mines. The use of water, a scarce resource in South Africa, as well as the threat to humans, industry and the environment posed by fast rising acid water in abandoned mines, are central to this issue. The rising underground acid water levels and seepage from these abandoned mines, known as acid mine drainage, triggered horror predictions about a massive looming environmental disaster that will have devastating social and economic consequences. It prompted stakeholders and role-players across the board to come up with a rescue plan. Some say the worst has been fended off. But others say more needs to be done immediately or the worst is yet to come. The only thing that is clear however is that the process is fraught with conflicting views on key issues. In the words of Mariette Liefferink, CEO of the Federation for a Sustainable Environment (FSE), who is closely involved with the process, “nothing about this water issue is without conflict”. Acid mine drainage (AMD) arises when a mine ceases underground mining operations and is abandoned, water is consequently no longer pumped out of the mine, and the acid water then starts rising to the surface, eventually passing the environmentally critical level (ECL) and it starts decanting, that is, flowing out of the mines into the surrounding environment. It the starts decanting, that is, flowing out of the mines into the surrounding environment. Lime is added to the acid water that is pumped out of a mine to neutralise it, increasing the pH level, and thereby

TRADE & INVEST AFRICA

TIA

dramatically increasing the sulphate content of the water. Unless it is desalinated before being discharged into surface water systems, it will eventually render that water unfit for human, agricultural or industrial use. A 2010 report compiled by a team of experts for the Department of Water Affairs (DWA) warned of the dangerous long-term future impacts of AMD. In line with the report’s recommendations the South African government initiated immediate shortterm interventions and announced it would spend an estimated US$110million (ZAR1.2bn) to clean up the AMD. An intergovernmental task team involving also private sector stakeholders and experts reported in August that all of the recommended measures were underway. In order to find a long-term solution to the problem, the DWA appointed a team of consultants in 2012 to conduct a long-term feasibility study which has been completed. “The final report of this study will spell out the way forward in respect of financial and institutional issues,” says Marius Keet, a senior official with the DWA. But Liefferink says the government’s response is not enough and that a twostage response of neutralisation followed by the removal of the sulphur from the water, is required. All of this involves huge costs, and it is unlikely the government will want to carry these alone. But stakeholders involved in these processes have yet to arrive at an acceptable formula concerning the liability of mines for the damage done and for removing and treating the acid water. Some mines have been abandoned for many years and the companies that owned them may no longer exist. However, in a very recent decision South Africa’s Constitutional Court ruled that mining companies may be held accountable for the costs of mine water rehabilitation even after they have sold the mines. Meanwhile a number of mines are, however, voluntarily participating in the government’s rehabilitation programmes at their own expense and by making

MINING

available facilities and equipment while Anglo American’s coal division has, for example, done ground-breaking work in treating and recycling water used by its mines. New regulatory regime In the meantime, while the acid water levels continue rising, South African legislators are finalising a new regulatory regime that will substantially change the relationship between mining and the environment in South Africa. It brings new obligations for the mining industry, but it also removes previous uncertainties. Both government and the industry are hoping that it will result in a healthier relationship all round. Until now the environmental impacts on mines were regulated largely by three pieces of legislation, namely the National Water Act of 1998 (NWA), the National Environmental Management Act of 1998 (NEMA) and the Minerals and Petroleum Resources Development Act of 2002 (MPRDA). In terms of these three pieces of legislation, mines had to apply separately for their licences for mining rights, water usage and environmental authorisation. This resulted in much duplication, delays and confusion. Many mines were, for example, operating without the requisite water usage licences as a result. This led to discussions between the Department of Mineral Resources (DMR) and the Department of Environmental Affairs (DEA) to introduce an integrated licensing process. In September last year Minister of

Mineral Resources, Susan Shabangu, announced that her department had finalised amendments to the MPRDA that focused on “removing ambiguities in the legislation and streamlining our administrative processes” and “strengthened corrective provisions to non-compliance”. Two amendment bills were tabled in Parliament, with one already having been assented to by the president. Environmental lawyer Garyn Rapson says he believes “this will streamline and coordinate things and will change the environmental obligations for mining companies once the two bills are enacted”. According to Rapson, in future all environmental authorisation will be granted by the Minister of Mineral Resources under NEMA for anything that is related to mining. Furthermore, the environmental aspects relating to exploration, prospecting, mining and production activities which were previously outside the scope of NEMA are now included. According to Garth Watson, a director at Guns Attorneys and The Environmental Law Consultancy, the key provision of the proposed legislation is the fact that as soon as a mining right or mining licence application is lodged, it will be a requirement to obtain a water use licence as well and apply for all other environmental regulatory approvals, such as atmospheric emissions licences. “As a result, it will no longer be possible to mine without a water use licence or without having first obtained the necessary waste management, air quality control and other applicable

TRADE & INVEST AFRICA

TIA

environmental protection licences,” he says. “The optimal implementation of these legislative arrangements will provide enhanced confidence in this system and ameliorate any uncertainties about the system,” said Advocate Johnny de Lange, the ANC Member of Parliament who chairs the Portfolio Committee on Water and Environmental Affairs. Changes to the MPRDA will also affect acid mine drainage in that even if a mine applies for a closure certificate, its liability will extend beyond closure. “They are drastically increasing the liability to be faced by mines,” said Rapson. Andrew Gilder and Busani Dhladhla of the law firm Edward Nathan Sonnenbergs suggest that “the business of environmental law has witnessed a rapid evolution in recent years” in South Africa, as reflected in the proliferation of environmental legal departments at larger law firms. In an article on the firm’s website they argue that criminal convictions are set to become a feature of environmental compliance. In the final analysis, while the South African mining industry may have been marked by turmoil and shock impacts over the last 6 or 7 years, and while there are still a number of lingering problems that need resolving, much work has been done by all stakeholders to improve prevailing conditions. As a result, while more still needs to be done, the outlook for the future of mining in South Africa is certainly marked by change, greater certainty and much optimism. After all, mining has been the main driving force behind the history and development of Africa's most advanced and biggest economy, and continues to play that role. And South Africa still has the world’s biggest treasure trove of mineral resources valued at an estimated US$2.5-trillion.

By Stef Terblanche

TRADE & INVEST AFRICA

MINING

TIA

South African mining industry

here are mixed views about the sustainable future of South African mining. But the South African government certainly seems to take a positive view. So does the South African Chamber of Mines. First the governing ANC rejected nationalisation and expelled the chief protagonists of such a policy from the party for various misdemeanours. While the debate has not left the political arena altogether, its teeth has been pulled and it is no longer causing the same alarm as before. South Africa’s biggest trade union, the 333,000-strong National Union of Metalworkers (NUMSA), as well as a number of far-left political parties including the Economic Freedom Fighters (EFF), which was established by the expelled ANC youth leaders, are still calling for nationalisation. But the South African government has meanwhile also unveiled its National Development Plan (NDP) into which it factored in a major role for the mining industry in stimulating growth, creating jobs, eliminating poverty, and reducing inequality by 2030. This plan was fully endorsed by the ANC in late 2012. And despite the party’s alliance partners, the South African Communist Party (SACP) and the Congress of South African Trade Unions (COSATU), being unhappy with some of the economic clauses, the leaders of both have recently expressed their support for the NDP. Indications are that they will not stand in the way of the government moving ahead with the implementation of the NDP largely in its present form. While the ANC government is still mulling over proposed tax reviews for the mining industry, there is optimism in the industry that any introduction of

Confidently into the future new taxes will be done cautiously. Also, further amendments to the country’s main mining law that are in the pipeline are still being debated in Parliament and government seems to be sensitive to industry concerns. However, it will have to balance these concerns with its own needs. Progress being made Roger Baxter, senior executive for economics and strategy at the Chamber of Mines is also one who believes the outlook for a sustainable future for mining in South Africa is good, and could even be excellent over the long-term if a number of lingering constraints can be overcome. “If all constraints were to be removed, South Africa’s mining sector could grow at 3%-5% per year. That would double the size of the sector by 2028 and add another 100,000 to 200,000 direct jobs,” he recently said. Statistics South Africa also had some good news showing increased mining production for most of last year. It reported an increase of 22.0% yearon-year in October 2013, followed by increased mining production of 5.1% year-on-year in November. But some analysts, like Hein Boegman, African mining industry leader of PricewaterhouseCoopers (PwC) in South Africa, see a number of ongoing risks threatening the mining sector. Boegman believes these include increased costs due to labour, electricity and foreign exchange denominated inputs that have severely eroded margins for all mining companies. But Boegman has expressed concern over low prices, saying last year that he felt the low prices, particularly for platinum, could not sustain the industry and that mining companies would seriously be

TRADE & INVEST AFRICA

considering the long term viability of their projects in line with their longer term price expectations and short term cash needs. Tony Zoghby, industry leader for mining in Africa at professional services firm Deloitte, believes like Boegman that, problems aside, South Africa’s abundance of resources demands a positive view of the future. And while serious challenges still remain, such as the unstable labour environment, restrictive labour laws, and the issue of reliable electricity supply, the mining companies, government and labour unions all remain strongly committed to tackling these head on. For this purpose a body was specially created, called the Mining Industry Growth Development & Employment Task Team (Migdett). Industry insiders say much work has already been done to stabilise conditions in the mining industry in South Africa and, as Baxter pointed out, to “put in place things that will help reduce the hot-spot pressures”. “We have come through some of the major challenges, but now it is very much about how we work collectively to resolve the restraints and allow the real potential to come through.” Global context According to the International Council on Mining and Metals (ICMM) the number of mineral extracting countries around the world has increased and continues to do so. As a result, by 2010 the value of global minerals production was four times higher than in 2002. At least 40 of these countries are significantly dependent on mineral exports, thirty of these are low or

MINING

middle income countries, and many of them have low Human Development Index scores. Many are also victims of the so-called “resource curse”. Accordingly, says the ICMM, this shows that mining has an increasingly significant role to play in sustainable economic development in general and poverty reduction in particular. Research done by Citigroup shows that South Africa is the world’s richest country with mineral reserves worth US$2.5 trillion. Yet South Africa is also associated with widespread poverty, high unemployment, huge income gaps, and a range of other ills. Also, these are reserves and do not reflect the actual value of South Africa’s currently productive mining sector. A government document entitled “Strategy for the Sustainable Growth and Meaningful Transformation of South Africa’s Mining Industry” states that in real 2005 rand terms the value of South Africa’s mining sector had in fact shrunk to US$8.37bn (R92bn) in 2009 from US$9.4bn (R103bn) in 1993.

Confirming the government’s significant involvement in developing the mining sector as a key catalyst for sustainable development, the Department of Mineral Resources points out that already following the World Summit on Sustainable Development in 2002, it initiated a programme to develop a national strategic framework to guide the mining and minerals sector in South Africa in respect of sustainable development. It says that among others, the government’s mining and minerals policy is based on the principles of the Freedom Charter, the Mineral and Petroleum Resources Development Act, and the Broad Based Socio-Economic Empowerment Charter popularly known as the Mining Charter. All of these have a specific focus on sustainable development. And various government policy and planning initiatives such as the NDP, the National Industrial Policy Framework (NIPF), and the New Growth Path (NGP), all contain specific references to mining’s importance and its contribution to economic growth and sustainable development. In addition, a large number of other organisations, initiatives and programmes fulfil a further supplementary and supportive role in respect of both government and industry efforts to promote sustainable development. South African mining companies now all have sustainability policies, programmes, projects and initiatives in place and report annually on these in a Sustainability Report which forms part of the Annual Report. By Staff Writer 36

Mining’s contribution to the SA economy If there is anything that supports a sustainable future for mining in South Africa, it is the sheer size and scope of its contribution to the economy. Some facts about South Africa’s mining industry: • • • • • • •

Sustainable development

TIA

• • • • • • • • • • • • • • •

World’s 5th largest mining sector in GDP value; World’s biggest platinum producer; World’s 4th largest gold producer; 2010 turnover was US$36bn (ZAR396bn); Downstream activities add additional US$24.3bn (ZAR267.3bn) per year; Contributes 50% of South Africa’s export earnings; Accounts for US$42bn (R468bn) or 18.7% of South Africa’s GDP; Accounts for 33% of market capitalisation of the Johannesburg Stock Exchange (JSE); Created 1,353,831jobs in South African economy in 2010; Created 514,760 jobs directly in mining in 2010; About 13.5-million people directly depend on mining in South Africa; Mining accounts for 20% of investment in South Africa, 12% of it direct; Mining attracts foreign savings, namely US$173bn (ZAR1.9-trillion) or 43% of value of JSE; 89% of mining’s US$39.7bn (ZAR437bn) 2011 expenditures spent in South Africa; Paid US$8.1bn (ZAR89bn) in salaries and wages; Spent US$4.3bn (ZAR47bn) on capital expenditure; Paid US$2.4bn (ZAR26bn) in direct corporate taxation; Paid US$500-million (ZAR5.5bn) in royalties; Contributed US$118.2-million (ZAR1.3bn) to community development in 2011; Spent approx. US$72.8-million (ZAR800-million) on corporate social investment; Spent US$373-million (ZAR4.1bn) on skills development; and Provided 10,224 students with bursaries and study assistance in 2010.

TRADE & INVEST AFRICA

MINING

TIA

Africa’s minerals - curse or blessing?

ith the battle cry of “Africa’s time is now” the economies of countries across the African continent have been surging this past decade…much of it still largely based on Africa’s phenomenal wealth of mineral resources. Which brings to mind the spectre of the so-called “resources curse” and begs the question: is it really a curse, or a blessing? The resources curse of course refers to what is also known as “the paradox of plenty” whereby countries with an abundance of natural resources like minerals and oil tend to have less economic growth and worse socioeconomic development than those countries with fewer or no natural resources. Africa, boasting the fastest growth in the world today, seems to be bucking the trend and putting the curse to rest. Real GDP growth in Africa averaged 5.3% over the past ten years, twice hitting a high of 6.6%, while the World Bank forecasts 6% growth for this year despite the economic pressures that have been affecting the continent’s major trading partners. This while many African countries still rely heavily on earnings from their mineral resources. The African growth phenomenon is the result not only of shifting economic fortunes and markets elsewhere in the world, but is as much the result of changed and still changing political, economic and business dynamics across Africa itself. These changing dynamics are manifesting themselves in the continent’s geopolitical landscape, its changing markets and partners, a new

TRADE & INVEST AFRICA

MINING

developmental focus, democratisation and the uprooting of poverty, new alliances and trade blocs, among other things. But while it may seem like the continent is starting to beat the resources curse, its abundant natural resources, bolstered by recent new oil and gas discoveries, is still something of an Achilles’ heel for some African countries. Despite their mineral abundance these countries still fail to distribute their wealth to benefit the poor or to develop their countries. This increases the potential for social upheaval of the kind seen in recent years in oil-rich countries of North Africa and the Middle East. Although there are signs of the global economy bouncing back the reliance on mineral exports without developing downstream beneficiation capacity arguably still makes Africa less immune to the problems of three of its current biggest markets, namely Europe, the US and China. Yet in a 2012 Africa Overview the World Bank said “Africa is making progress on reducing poverty”. The World Bank’s global poverty update showed that the region’s US$1.25 a day poverty rate has fallen from 58.1% in 1999 to 47.5% in 2008, a 10.6 percentage point decline. The decline in poverty accelerated in 2005–2008, with nine million fewer people living below US$1.25 a day — the first such recorded decline in the number of poor. Subsequent reports by the Bank continue to reflect this trend both in resources-rich and non-resources-rich countries in Africa. But, warned the Bank, despite this success, serious development challenges remain in Africa “where governance and transparency remain weak…”. Yet the Bank nonetheless maintained that economic and social conditions are improving in Africa. In 2011, foreign direct investment flows jumped 25% to an estimated $35.6 billion. The business climate was improving and favourable economic prospects were attracting investment flows in the telecommunications, real estate, and retail sectors, it said.

“After 10 years of high growth, an increasing number of countries in Africa are moving into ‘middle- income’ status, countries achieving more than $1,000 per capita income,” said the Bank. Releasing the International Monetary Fund’s (IMF) Regional Economic Outlook for Sub-Saharan Africa of October 2013, the Director of the IMF’s African Department, Antoinette Sayeh, said “it is heartening to note that sub-Saharan Africa’s economies have generally maintained a strong pace despite some tensions observed in the external environment, including somewhat slower growth in emerging market economies”. “This is a reflection of continued sound macroeconomic policies as well as robust domestic demand, in particular investment in infrastructure and productive capacity,” she added. “The common perception that the strong growth in sub-Saharan Africa since the mid-1990s has been simply the result of relatively high global commodity prices, particularly those of non-renewable natural resources—such as oil and minerals—is really an incomplete view ” Sayeh said. She said the IMF had found that several non-resource rich, low-income countries have equally been able to sustain high growth rates over a relatively long period because of improvements in macroeconomic policy combined with structural reforms and reliable external financing. A year earlier Sayeh already said: “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”. So much then for the resources curse.

TIA

Investing in Africa Mining Indaba in Cape Town, the event being Africa’s largest annual mining showcase conference. “As executives networked and sought out potential deals at Africa’s largest mining conference, much of the talk focused on the opportunities being offered for junior and major mining houses in new areas of exploration,” wrote Andrew England in the Financial Times. He added: “In spite of global economic concerns and scarce debt financing, there was cautious optimism at last week’s African Mining Indaba in Cape Town that commodity prices, which have enjoyed an almost decade-long boom, would remain at relatively high levels. And Africa, which is endowed with an abundant pool of resources from potash to iron ore and yet is one of the least explored regions of the world, has been attracting mounting interest.” Rajat Kohli, the London-based global head of mining and metals at South Africa’s Standard Bank Group is of the opinion that Africa continues to offer considerable development potential with West Africa’s gold and iron ore deposits, the central African copper belt and fertilizer raw materials such as phosphate and potash being prime examples. But, he says, financing could be a challenge given the uncertain outlook for commodity prices. “Africa remains an attractive mining destination due to its ability to offer assets at relatively attractive prices compared

Africa mining outlook But what is the outlook for mining across Africa? Probably excellent if one has to judge by the fact that a record 7,000 delegates from all over the world attended this year’s

TRADE & INVEST AFRICA

MINING

to other jurisdictions,” says Mr Kohli. “Political and regulatory stability is improving. The only question is what sort of funding will be forthcoming.” In its report Mining in Africa towards 2020, business services group KPMG says “the remarkable changes that took Africa from ‘the hopeless continent’ in 2000 to the one where the ‘sun shines bright’ in 2011 (both headlines from The Economist) resulted in the continent receiving 15% of global exploration expenditure and mining investment during 2012. And in a February 2012 report The Economist wrote: “The true extent of Africa’s vast wealth of resources is hard to guess. Geologists have picked over most of the rest of the globe in search of minerals, yet huge swathes of Africa remain largely unprobed. But the immense ore deposits so far discovered and soaring commodity prices on the back of rip-roaring Chinese demand have convinced the world’s miners that the continent is the next big frontier”. Days before the Mining Indaba in Cape Town, the US-based Business Excellence Mining interviewed Frank Holmes, CEO and Chief Investment Officer at US Global Investors. This is what he said: “If you were to ask me if Africa is rich as a continent, then I would say of course, spectacularly so. Where Africa also benefits is the fact that it is one of very few destinations in the world that is growing rapidly without debt. It is a cash economy and those countries that have the most fiscal stability are the ones experiencing the strongest growth. In the US and Europe, we leverage to achieve growth, but they don’t need to do that in Africa because they are operating from such a low base. So that is where your opportunities are.” In a presentation last year on opportunities in mining in Africa, Frost & Sullivan’s Cape Town-based programme manager for mining in Africa, James Fungai Maposa, reaffirmed his confidence in the future of mining on the continent. According to him Africa’s mining sector is poised for strong growth driven by the vast untapped resource base and the

anticipated rise in demand for energy, base and precious minerals in China and India. Listing a few examples, he cited how Asian investment in Tanzania’s mining industry was on the rise. In West Africa, he said, large-scale iron ore and infrastructure upgrade projects will also attract significant foreign direct investment inflows. And in the Democratic Republic of Congo, Botswana and Mozambique their respective governments are driving strong growth in their mining sectors. But despite the strong growth forecasts for mining in Africa, Maposa also warns that major challenges still exist. Among these are capital projects deceleration, corruption, infrastructure constraints, cumbersome government bureaucracies, threats of resource nationalism, skills shortages, safety and environmental concerns, tax regimes, increased social responsibility, and merger and acquisition threats. But many of these challenges are not unique to Africa. For instance, Australia more so than any African country has unleashed the bogy of resource nationalism on the mining industry worldwide. Maposa believes that despite these challenges, Africa remains one of the world’s largest mining investment destinations, with Southern Africa leading the pack followed by West and Central Africa. As of 2011 there was an estimated 155 Canadian companies operating in 39 African countries with combined assets worth an estimated US$30.8bn. At the same time there were 230 Australian mining and exploration companies developing projects across Africa. And China’s interest in mining in Africa is of course no secret, with its focus strong on the Southern African countries of South Africa, Zambia, Tanzania and Mozambique. And South Africa’s Minister Shabangu was quoted quoted by the SABC as saying: “The exploration expenditure per square metre averages US$65 in Canada, Australia and Latin America, whereas the

TRADE & INVEST AFRICA

TIA

African equivalence remains below US$5 per square kilometre.” Shabangu said the mineral exploration prospect in Africa is extremely high and requires both local and international partners and investment to unearth. A survey of the legal and regulatory regimes governing exploration and mining in all the major African mining economies, shows that the majority of them have overhauled or are busy overhauling their laws, regulations and mining codes with a view to providing investor-friendly certainty, streamlining them and improving ease of access and licencing procedures, creating greater transparency and creating the necessary incentives for investors. The odd ones out are the Democratic Republic of Congo, South Africa (to a much lesser degree), Zimbabwe, Sierra Leone and Mali (also to a lesser extent). Meanwhile the World Bank has announced plans to launch a US$1bn fund by mid-year to map Africa’s mineral resources using technology such as satellites and airborne surveys, reported Mining Weekly. The aims, it said, is to fill geological gaps across the continent where a lack of adequate data hampers mining investments. According to the report Paulo de Sa, senior manager at the World Bank’s mining unit said the Bank had committed US$200-million to the five-year fund, and was meeting with mining companies and governments from sub-Saharan Africa who have expressed interest. Initially targeting southern and eastern Africa, De Sa said the fund would aim to collate existing data onto a single, digital platform that would be accessible to the public. The World Bank may find considerably more than the known mineral reserves. But even the known reserves are huge and include 40% of the world’s gold, 80% of its platinum metals group and 10% of its oil. There is certainly significant scope for optimism when it comes to the future of mining in Africa. By Mining Writer

MINING

Key Mining Countries in Sub-Saharan Africa Southern Africa South Africa Platinum, coal, gold, copper, uranium, diamonds World’s 5th largest mining sector in GDP value Produces 80% of world’s platinum World’s 4th largest gold producer and Africa’s largest Industry turnover US$36bn in 2010 Accounts for 50% of South Africa’s export earnings Accounts for 18 to 20% of GDP Regulatory/Legal – Frequent changes cause of uncertainty Zimbabwe Platinum, coal, diamonds, gold, asbestos 65% of exports (2010 est.) 20% of nominal GDP (2010 est.) Regulatory/Legal – Insecure, risky Botswana Diamonds, coal 75% of export earnings in 2006/07 42% of GDP in 2006/07 48% of Government revenues in 2006 Regulatory/Legal – Secure, investor-friendly Namibia Diamonds, uranium, copper, zinc 25% of the country’s income 9.5% of GDP in 2011 Regulatory/Legal – Secure, investor-friendly Mozambique Coal, aluminium, tantalum, beryllium Coal output forecast to reach 41.8 million by 2017 Value US$259-million in 2012 1.8% of GDP in 2012 Regulatory/Legal – Busy streamlining for greater ease

Zambia Copper, selenium, silver, lead, zinc, gold, gemstones, coal World’s seventh largest producer of copper Anticipated investment of US$15bn by 2017 Accounts for over 30% of all government revenue Accounts for an estimated 14% of GDP Regulatory/Legal – Streamlined, investor-friendly Angola Diamonds Base metal and gold potential 2nd largest producer of diamonds in Africa, 5th in the world Accounts for for 5% of GDP Regulatory/Legal – New 1992 mining law more investor-friendly

Central & East Africa DRC Copper, cobalt, diamonds, gold, coltan, tantalum, tin Contribution to GDP no longer available Mining activities subjected to political and security instability Regulatory/Legal – Insecure, corrupt Rwanda Tin, tantalum, coltan, tungsten, beryl, monazite, gold 4th largest producer of tantalum Mining expected to grow 40% plus next 5 years 15% of all exports – biggest export earner (2010) 2012 exports of US$136-million Accounts for 1.2% of GDP expected to rise to 5.27% by 2017 Regulatory/Legal – Overhauled to attract investment – streamlined, security Kenya Large-scale mining only just starting Mineral sands, soda ash, fluorspar, gemstones, gold Around 1% of GDP Regulatory/Legal – Streamlining improved enforcement, transparency

TIA

West Africa Ghana Gold, bauxite, manganese, diamonds Africa’s 2nd largest gold producer 5% of GDP 37% of total exports Regulatory/Legal – Secure, investor-friendly Niger Uranium, cement, coal, gold, gypsum, limestone, silver, tin 40% of all exports 3% of GDP Regulatory/Legal – Secure, investor-friendly Nigeria Columbite, tin, limestone, iron-ore, gold, tantalite, nickel, silver, copper Under-utilised reserves – hoping to vastly increase mining sector Newly introduced incentives to investors Mali Gold, kaolin, salt, phosphate, limestone Africa’s 3rd largest gold producer Contributes over 18% of government revenue Regulatory/Legal – Much improved, some licences being revised Guinea Iron ore, bauxite, gold, diamonds Contributes around 25% of country’s income Estimated 24% of global bauxite reserves are here 94% of Africa’s bauxite production Largest bauxite producer after Australia Bauxite accounts for 20% of GDP and 90% of exports Gold, diamonds also major export products Regulatory/Legal – Secure, investor-friendly Sierra Leone Diamonds, rutile, bauxite, gold, iron, limonite 4.5% of GDP and 79% total export revenue (2007) Diamonds account for 46% of export revenue (2008) Regulatory/Legal – Corrupt, inefficient, insecure

Tanzania Gold, diamonds, coal, iron ore, tanzanite, uranium, magnetite, chlorite, limonite, pyrite Africa’s 4th largest gold producer Accounts for 2.8% of GDP Annual growth of 7.7% anticipated for sector Regulatory/Legal – Streamlining improved enforcement, transparency

TRADE & INVEST AFRICA

Advertorial

TIA

RICHARDS BAY MINERALS Enhancing Lives Richards Bay Minerals (RBM), a joint venture between Rio Tinto, BHP Billiton, Blue Horizon Investments (B-BBEE) and RBM employees, 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. The company is a major economic contributor to the region and employs 1800 permanent staff and up to 2200 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.

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.

Sustainable Development

Economic Contribution

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. 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

RBM contributes about 3.5% of the Gross Geographic Product of KwaZuluNatal; 18% of the GGP of the north-east region of KwaZulu-Natal. The company employs more than 1800 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

TRADE & INVEST AFRICA

equity directly in Blue Horison and has one Board seat into Blue Horison which the Holding company for our new shareholders. One community member sits in RBM Board, 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 ran a Corporate Governance training, this was extended to the Traditional Councils to whom the Trusts are accountable. To date, each community received R20.8 million which includes initial endowment of R17,5 million and trickle dividends. The communities have spend 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 coexistence 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 Email: info@rbm.co.za Website: http://www.rbm.co.za

Supply Chain

TIA

Procurement of strategic importance for Africa’s growth and development Economic growth in Africa, driven by the resources sectors, has made the continent one of increasing opportunity - second only to Asia in the pace of its GDP growth. It is often held that the procurement function of supply chain management can play a strategic and significant role in the further successful economic development of Africa, especially as many challenges remain. However, are the powers that be giving sufficient recognition to this, especially when it is considered to what extent the mismanagement of this important function can lead to corruption and can harm a country’s economy? What are the critical issues and where should the focus be when weighing economic growth against economic development? How does this relate to the important small, medium and micro business sectors? We asked Prof. Douglas Boateng, a Ghanaian living in South Africa who is Chairman of the Chartered Institute of Purchasing and Supply’s Africa Strategic Advisory Board, for his views on these and related issues. Prof. Boateng is also the founder and CEO of Panavest International, the President of the Institute of Operations Management Africa and Africa’ first ever Extraordinary Professor for Supply and Value chain Management at the University of South Africa’s Graduate School of Business leadership, among the many other positions he holds. Here are Prof. Boateng’s views:

espite Africa’s rapid GDP growth and the many opportunities this creates, many challenges remain and further successful African economic development could benefit significantly from policy makers, captains of industry and governments recognising the strategic importance of the procurement aspects of supply chain management. The procurement aspects of supply chain management have finally come of age and it is among the fastest growing professions in the world. In Africa this received a major boost when the Chartered Institute of Purchasing and Supply (CIPS), the world’s largest professional organization representing the global procurement profession, created a Pan African Unit in 2012 to focus on training Africans to strategically use the procurement aspects of supply chain management as weapon for both competitive advantage and societal change. By creating the Pan African Advisory Board CIPS have shown their willingness to champion the African cause in relation to the United Nation’s Millennium Development Goals. This development and a renewed focus on accelerating economic development,

TRADE & INVEST AFRICA

Supply Chain

growth of small, medium and micro enterprise (SMME) sectors, growth and job creation through strategic sourcing, came at a very relevant time as the UN Development Programme had just announced that the world would miss the Millennium Development Goals targets referring to poverty reduction, universal primary education, improvements in healthcare, and gender equality among others. These goals can be achieved through sustainable economic development and job creation, which have become the worldâ&#x20AC;&#x2122;s most pressing socio-economic issues. That's why collectively we frankly have no alternative but to find creative ways to tackle this jobless scourge bedevilling African societies. Africa continues to be a significant supplier of raw materials to world markets. Oil, mining and other agricultural commodities like cocoa continue to be a major contributor to the overall GDP of the continent. In some countries these three sectors are the largest contributors to GDP, taxes and the source of foreign investment and foreign exchange. Unfortunately the direct impact of these activities on the regional and local economies appears disproportionately low. This fact has not gone unnoticed and is now frequently discussed in the echelons of power by governments, international political and economic organizations and the like. The economists amongst us may agree to disagree with me on this. But I consider economic development and economic growth as two different concepts when it comes to job creation and creating opportunities for SMMEs. For me a country can achieve economic growth by shipping out raw materials but not necessarily economic development and there are so many case studies of this phenomenon in Africa.

The reality is that if economic growth is not supported by real economic development on the ground it means nothing to the many people who have not benefited from the exploitation of natural resources. One of the ways to achieve economic development, create jobs and opportunities for SMMEs is through strategic sourcing. So what is strategic sourcing? Strategic sourcing is part of the procurement process that assists an organisation to optimise the total cost of ownership in relation to an acquisition. The acquisition may be a tangible, such as computers, or intangible such as consulting services. As a systematic process it objectively encourages the critical analysis of product acquisition and associated usage patterns within an organization and increasingly within society. Strategic sourcing has been successfully applied in various private sector industries including defence, automotive, aviation, banking and financial services, healthcare, media, agriculture, pharmaceuticals, utilities, building and construction, ICT and transport services. It continues to help organisations achieve quantifiable savings, often between 4% and 12% on procurement spend. However it is not just about cost savings. As a business process it can also help to improve service and corporate social responsibility targets if there is concerted effort to move away from sourcing based mainly on price to a more holistic product lifecycle management view of sourcing and long term local supplier development.

TRADE & INVEST AFRICA

TIA

To date, carefully constructed sourcing methodologies have clearly proven to have immediate to long-term bottomline benefits when implemented with the relevant human capital. Firstly, it encourages a shift from a purely cost-cutting and price sensitive mentality, to a clearly defined and managed approach to sourcing. Secondly, it encourages a modus operandi that allows for an organised, systemic approach to defining requirements, product development and innovation, supplier selection and development, negotiations, integrated forecasting, planning and demand management. Thirdly it can be used to both stimulate and spread economic activity. Thus there is a compelling argument for both public and private sector organisations to move from a purely transactional procurement and independent sourcing approach, to an enhanced collective and value-adding practice of â&#x20AC;&#x2DC;total product acquisitionâ&#x20AC;&#x2122;. Public procurement refers to acquisition of goods and services by public institutions in a country. It accounts for a substantial share of total government expenditure worldwide. In the European Union (EU) and the United States (US) over 1.5 trillion and 500 billion dollars respectively are spent annually on public sector-related procurement. The global average is between 12 and 20%.

Supply Chain

In developing countries the share is even higher. For example reports of the Organisation for Economic Co-operation and Development (OECD)between 2006 and 2011 show examples from countries like Uganda where public procurement represented up to 70% of the government’s total expenditure, while in Malawi and Vietnam it is over 40%. Given the significant budgets for public acquisition in developing countries, the efficiency and quality of procurement processes are central in determining how much citizens will benefit from state spending.

Governments and development partners these days are well aware of the link between functioning national procurement systems and the level of welfare in a country. But although laws and regulations are often well developed and in accordance with so called ‘international best practice’ in most countries, inefficiencies, capacity constraints and governance issues still continue to be major challenges. These shortcomings have led governments and international organisations to shift the focus from the technical aspects of the procurement

TRADE & INVEST AFRICA

TIA

process to the political and economic framework within which public acquisition takes place. We all agree that government sourcing has a major role to play when it comes to SMME development and job creation. For example in the UK there are 4.7 million Small and Medium Enterprises (SMEs), constituting 99.9 percent of all businesses. They employ 59 per cent of the private sector workforce and are responsible for 52 per cent of business turnover. Their average productivity has increased faster than larger firms in the last decade, but is still lower than larger firms. SMEs have a particular importance in terms of local economies and creating job growth. They tend to be concentrated in sectors that have lower capital intensity and therefore lower productivity. Within individual sectors, however, SMEs do not always have lower capital intensity. More generally, in a mixed economy there is clearly a complementary role for SMEs alongside large companies, given SMEs may be better suited to operating in smaller, niche markets where there are fewer gains from economies of scale. It is also evident that good arguments can be made that SMEs have an important role in leading entry into emerging sectors. But what, from a procurer perspective, are the public sector strategic sourcing constraints impeding SMME growth in Africa? Among these are inadequate and inconsistent implementation of preferential sourcing polices across all spheres of government, and inadequate capacity for supplier accreditation, inspection and procurement management. Current local supplier preference is often based on place of registration rather than local content (direct and throughout supply chain) - as a result, suppliers designated as “local” may often be acting as wholesalers/distributors, providing limited employment. Specification of exclusionary brands and technical specifications in tenders are preventing local supply. There is a lack of awareness by purchasers of competitive and empowered local content suppliers.

Supply Chain

There is often also limited awareness within procurement organisations of the aim of employment creation and limited knowledge of what to do about it, which is exacerbated by high staff turnover. Inadequate planning and delayed payment make it very difficult for small businesses to successfully supply government without jeopardising their sustainability. Bilateral trade agreements may create potential future restrictions of procurement policy. From the suppliers’ perspective, issues such as inadequate local supplier capacity, in particular black-owned suppliers, are important. So too are inadequate cost and quality competitiveness, as well as scale of production of local suppliers compared to imported sources. Unfair competition from “dumped” imports and the trend of increased percentage of imports servicing domestic demand also have an impact. From a supply chain management perspective the lack of networking among the continent’s procurement professionals is important. Data gathering and information management systems are not sufficient to enable monitoring and evaluation. Government is not able to trace spending patterns and suppliers along with inadequate monitoring and evaluation capacity. There is also mismanagement, misgovernance and misrepresentation by both purchasers and suppliers. In Africa state owned enterprises spend a considerable part of their budgets on procurement of goods and services. Consequently, these funds can become powerful vehicles to target local procurement and more importantly improve access to business opportunities for enterprises and small businesses. A strategic sourcing strategy that has been well developed can strengthen economic capacity; improve the investment environment; and ensure an increase in productivity, quality and competitiveness of local staff and businesses. It can also lead to SME growth, job creation; increasing affordability levels; broadening the local tax base; improving

council services; capacity and institutional development and linking the developed and underdeveloped areas. It empowers the disadvantaged and marginalised communities socioeconomically, facilitates redistribution processes and improves the quality of life locally. As a concept it is an important vehicle for poverty alleviation given its focus on socio-economic issues. It develops a positive linkage between sustainable growth and being pro-poor which is rare in traditional development strategies. There is also local empowerment and pro-activism and dynamism of local resources; development of a stronger civil society and ultimately transparency and accountability. However there is a risk that in the current economic climate local businesses will not be able to provide public and private sector organisations with the required value for money. Whilst every effort must be made to increase opportunities for local business, there is a perception risk that not enough is being done to award contracts locally. This negative perception can be damaging not only to governments, but also deter potential investors from locating or expanding their business in Africa. Nonetheless by working together there will be significant opportunities for local businesses to build on the inherent values delivered through their local knowledge of strategic sourcing and through their flexibility. Government and the private sector can help by encouraging the public procurement authority and procurement departments to support local businesses so that there is increased opportunity to bid for and win public sector contracts from locals. They can agree for the public procurement authority to significantly increase its spend on locally produced and packaged goods. Price flexibility must be given to local suppliers. While all procurement must comply with public procurement legislation it must not inhibit the development of key local supplier relationships to make the local supply

TRADE & INVEST AFRICA

TIA

base better prepared to win public sector business. And supplier selection and tender evaluation procedures must remain transparent, non-discriminatory and based on overall best value. African economies are small with a relatively constrained supplier base. Increasing the input of local labour, goods and services in the production process can make a major contribution to economic growth. In addition, this may open opportunities for SMMEs to participate in the growth process through the creation of opportunities in the local manufacturing/ packaging and supply industries. Management information on public sector procurement spend is patchy and if it was improved there is the potential for improved decision-making, based on better market and supplier information. Transparent reporting of how much spend goes to SMMEs across the public sector would be likely to incentivise procurers to make a greater effort to diversify their supply base and actively seek to employ SMMEs. Publication of the amount of contracts awarded to SMMEs would enable stakeholders to see how organisations are performing in relation to the government’s aspirations. I am of the firm opinion that economic development must be at the heart of every Government’s approach to procurement. It must not be just as a tool to drive efficiency but can also realise much wider benefits.

LOGISTICS

TIA

Assessing the logistical challenges to serving customers on time

frica has a population of one billion potential new consumers, with this trend set to more than double by 2050. Consumer spending is expected to hit US$1.4 trillion by 2020. Delivering goods to these customers on time and at the right cost represents a sizeable prize for any company. However, due to differing maturity and complexity of routes across the continent, getting goods to market at the right cost requires innovation. Companies, particularly those with perishable goods that have timesensitive supply chains, have difficulty understanding and navigating African border-crossing issues , with respect to infrastructure and bureaucracy. Logistics across the continent is a major issue, both in terms of distance and infrastructure. Roads, trains and ports are poorly maintained, unreliable and often disconnected. Tax and regulatory frameworks in Africa also tend to differentiate vastly from one jurisdiction to another. This is in comparison to greater uniformity across country borders, seen in markets such as the European Union. Companies, therefore, need to consider making better use of local suppliers. Organisations using domestic suppliers are viewed in a positive light and, through gaining an understanding of the environment, may overcome any logistical challenges the continent presents. Increasing confidence and growth potential backed by supply chain infrastructure is highlighted by the wide and rapid expansion of major multinational logistic companies in the continent. A major lesson learnt by existing operators is the extent of the skills

challenge in Africa. This is a challenge that can be managed, taking into consideration both regulatory and cultural requirements.

There are only three significant international networks on the African continent, reflecting the limited amount of inter-country rail trade that occurs:

Rail transport will not be a viable option in effective cross-border supply chains in Africa for the next 10 years

â&#x20AC;˘

In most African countries, particularly lower-income states, infrastructure is a major business constraint. This is found to depress firm productivity by up to 40%. For most countries, the negative impact of deficient infrastructure rivals that of corruption, crime, financial market and red-tape constraints. Generally, the African rail system remains fragmented, with many lines only connecting cities within a single country or linking a port and its immediate neighbours.

â&#x20AC;˘

TRADE & INVEST AFRICA

â&#x20AC;˘

The Southern African network that stretches north to Malawi, the Democratic Republic of Congo (DRC) and Tanzania The North African network in the Maghreb The East African network linking Kenya, Uganda and Tanzania.

At the end of 2008, there were 51 railways operating in 36 countries in Africa. African railways outside South Africa and North Africa still operate at the standard to which they were originally constructed, facing major problems from competing modes of transport.

LOGISTICS

The majority of lines on the continent accommodate lightweight and slowmoving trains. Poor maintenance over time has caused sections of the track to deteriorate, in some cases, almost beyond repair. This has resulted in a loss of competitiveness and rolling stock productivity. While some rolling stock can be tolerated on low-volume feeder lines, where this is the only option, it is a major constraint when competing against modern roads being constructed in major corridors. However, progress on construction of these roads is slow, and road transport itself has its own problems. North-South Corridor Initiative: Approximately 30% (+/- 2000km) of the length of the rail corridor that falls outside of South Africa, is in poor condition. This is evenly spread along the network, with most countries facing significant rehabilitation requirements. If the development of the North-South Corridor continues, countries in this network will improve their export times by up to as much as 30%. Road is costly, slow, and at times, dangerous In theory, the development of highways across the continent provides real opportunity for improved road transport. In practice, getting your goods from Cape to Cairo still remains fraught with problems. The return trip from Johannesburg to Dar es Salaam, through six border crossings, can take up to 18 days. The actual condition of the roads across much of the continent remains poor. A large number of improvement projects are in place, but too often, funding dries up and roads are left in a worse state than when work commenced. Overturned trucks are a regular sight on roads across the continent. Added to this is, a lack of reliable transportation companies. South Africa has great schemes in place to encourage owner drivers. However, the condition of the vehicles is often unfit for purpose. For example,

one major consumer products firm constantly has issues with frozen food transportation, where trucks used do not have sufficient cold storage to maintain the temperature for long trips. Border bureaucracy, fraud and corruption still occur on a regular basis, often creating delays. Additionally, hijacking of vehicles remains a threat for many logistics organizations. Non-tariff barriers (NTBs) are perhaps among the most burdensome and difficult issues to deal with, causing huge delays and cost to the economy of trade. Trucking from Mombasa to Kampala, roughly 1,200km, can take up to a few days – accounting for time delays from congestion, border crossing and, mostly, numerous random roadblocks and checks. All together, these delays mean that transport costs take up to 35% of the cost of doing business in the region. The latter NTBs are a favourite for soliciting bribes, not maliciously, but simply as means of economic benefit and capital gains relied upon by officials. Between Mombasa and the Ugandan border, a truck driver could expect on average 45 roadblocks, not accounting for the 12 weighbridges in Kenya and 5 in Uganda. Uganda’s import stock from the sea almost entirely enters the country via Mombasa, and 95% of these imports move by truck.

TRADE & INVEST AFRICA

TIA

Sea freight is becoming a more viable option, but road and rail access from ports is still a major challenge Africa’s ports have made huge progress in recent years, with massive benefits being reaped through successful port management partnerships. Additionally, sea freight is a problem particularly up the East coast of Africa, due to increased piracy over the past few years—attacks peaked in 2009, with over 4,000 incidents around African coasts. Decline was seen in 2010 and 2011, but it is still seen as a major deterrent to companies trading across the continent. In other areas such as the Gulf of Guinea, where Ghana has a maturing off shore oil industry, attacks are actually on the increase. There is a lack of consistent tax regimes across the continent Although tax systems in the European Union (EU) are not always perceived as being properly harmonized, they appear consistent and aligned when compared with Africa. Companies operating in or expanding into Africa experience the diversity of the tax systems as additional financial and administrative frustration in the supply chain. One of the major challenges companies in Africa face is indirect taxes, such as customs, which typically add

LOGISTICS

additional cost in the supply chain. More and more African countries appear to be introducing transfer pricing rules and documentation requirements covering transactions between companies belonging to the same group. Cross-border transactions falter when one of the tax authorities doesn’t agree with the transfer pricing applied. A transfer pricing adjustment typically results in a double taxation, adding cost and administrative burdens, and also adding journey time—increasing the risk to time-sensitive supply chains. In the EU, the taxpayer has the opportunity to discuss and negotiate its transfer pricing in advance, avoiding such double taxation. Harmonized tax systems would help facilitate cross-border trade and supplies. Local management is not adequately empowered Indigenous representation in management structures is important, both for local knowledge and employee engagement. However, the absence of strong leadership and development skills results in mediocre management and a high mobility of top talent.

Businesses are thus challenged to invest in building local leadership capability. This is done through improving expatriate mobility programs so as to get the right mix of diverse leadership and skilled labour, with talent pipelines that facilitate rather than constrain, growth ambitions. Local goods are poorly represented Across Africa, there are a number of developing agreements to encourage use of local suppliers. Some of these are supported by legislation, while others are the result of companies’ commitment to grow local suppliers: A major brewer is now marketing a cassava-based lager, supporting local farmers in Mozambique and Nigeria. A major chocolate bar manufacturer has committed to sourcing certified cocoa for all products by 2020, supporting West African cocoa farmers. The South African Minister for Public Enterprise is calling for development of a 25-year plan to localize supply chains, and many organizations are now signing up to “buy local’ to create jobs and to boost African industry. Additionally increasing local supply can help circumnavigate the issues,

TRADE & INVEST AFRICA

TIA

highlighted around movement of goods across the country and taxation issues by removing parts of the current supply chain. Realizing significant growth Successful organizations will be those that are able to identify the challenges in their supply chain, and develop real and sustainable solutions to overcome them. This requires adequate understanding of the local environment. There are considerable opportunities that, if managed correctly, can realize significant growth for these organizations. By Hennie Human

* Hennie Human, the author of this article, is Africa Advisory Performance Improvement Leader for assurance, tax, transaction and advisory services firm Ernst & Young (EY) in Johannesburg, South Africa. This article was first published by EY on its website and is reproduced with permission.

» Freight: Air, Sea & Road » Import & Export » General commerce » Clearing » Travel and tourism » E-commerce

SOUTH AFRICA Unit C1 Krost Park, 62 Lower Germiston Road, Heriotdale P.o.Box: 2257 Primrose 1416 Johannesburg, South Africa Tel: 0116262896 Fax: 0116262879 Cell: 0833189648 ANGOLA Rua 14, Martires de Kifangondo, Luanda Cell : +244-923-611221 Cell :+244-925-286294 Email: smuanza@afmexcargo.co.za www.afmexcargo.co.za

AFMEX CARGO

We Deliver… to Africa and Beyond

Next port of call â&#x20AC;ŚSouthern Africa 11 world-class ports for every kind of cargo

TRADE & INVEST AFRICA

Transport

ith Africa’s economic growth still outstripping the rest of the world with projected growth of 5.3% this year, African trade with the rest of the world reached a figure of US$1,151bn in 2011. Almost half of that was attributed to Southern Africa alone. Apart from traditional trading partners like Europe, the US and Japan, the region’s trade with China and India has grown phenomenally. What few people realise is that about 95% of this trade is seaborne… meaning, the traded goods enter or leave the Southern African region through seaports. As these seaports are such a vital link in this trading value chain it is no wonder the region boasts no fewer than 17 commercial ports spread around Africa’s southern shores from Luanda in the west to Dar es Salaam in the east. Of these 11 are major, mostly wellequipped harbours capable of handling all types of modern shipping requirements among them. However, with 313 ports in Africa – South America has 390 – Africa is lagging far behind North America with its 1,700 ports, Europe with 1,520 and Asia with 1,057 ports. Nonetheless, South Africa alone boasts eight internationally competitive ports – out of its nine commercial ports – that have the latest state-of-the-art equipment and facilities. A number of other ports in the region are currently undergoing huge expansions and upgrades that will vastly improve both capacity and efficiency, while providing a more comprehensive and greater choice of trade reach into the Southern African Development Community (SADC) and beyond. The ports of the region offer, in varying degrees of competence, a variety of modern and dedicated agriculture bulk shipping, break bulk, liquid bulk, ro-ro motor vehicle, container, coal, iron ore and other dry bulk terminals. With most of them operating efficiently, they are largely capable of keeping dwell-times down to internationally accepted best practice levels. But at some – the further north one

goes on either coast - there is considerable room for improvement. The ports and the dedicated or specialist terminals referred to offer services and facilities that include everything from pilot services, helicopter replenishment, bunkering, loading and unloading, haulers, trailers, reach stackers, ship-to-shore cranes, mobile harbour cranes, straddle carriers, skips, stevedoring, chandlers’ services, passenger terminals, dry-docking, repairs and maintenance, diving services, document handling and control, cargo tracking, and more. The importance of these ports is evident not only from the high volume of trade coming and going by sea, but also from the fact that African economic recovery and growth continues to outpace that of other continents. The African Development Bank (AfDB) has forecast economic growth this year of 5.3% across Africa and 6.2% in sub-Saharan Africa. Because of the importance of these harbours in maintaining the region’s growth and trade momentum, there are ongoing efforts by port authorities across the region to integrate more closely, thus improving efficiencies. For instance, in August last year South Africa’s Transnet National Port Authority (TNPA) and Namibia’s National Port Authority known

TRADE & INVEST AFRICA

TIA

as Namport reached an agreement to work closely towards this end. Earlier TNPA had reached a similar agreement with the Maputo Port Development Corporation (MPDC) in Mozambique. TNPA, Namport and the MPDC are to seek similar agreements with port authorities in Kenya, Tanzania and Angola. According to Franklin Mziray, secretary-general of the Port Management Association of Eastern and Southern Africa, collaboration between ports was also essential if African port operators were to obtain a better understanding of the needs of their customers, and to prevent ports from being detrimentally played off against one another by shipping companies seeking discounts. South Africa As mentioned, eight of the region’s eleven major commercial ports are located in South Africa. They are the ports of Richards Bay, Durban, East London, Ngqura (Coega), Port Elizabeth, Mossel Bay, Cape Town and Saldanha. There is also a smaller harbour at Port Nolloth used largely by the fishing industry but also serving the diamond mining industry. The Port of Mossel Bay, previously used for coastal transhipment of sugar, wool and other agricultural products, is now

Transport

TIA

NAVIS systems which provides integrated real time shipping information. Transnet is also investing a further US$30bn over seven years to lift its capacity and operating efficiencies and which includes achieving greater integration of the region’s logistics infrastructure. The seaborne trade moving through South African ports alone accounts for approximately six per cent of real world sea trade, placing South Africa within the top 12 international maritime trading nations of the world. Port of Richards Bay

mainly used by the fishing industry and for serving the offshore oil and gas industry, rather than for importing and exporting commodities. All of the South African ports are managed and operated by the parastatal TNPA together with Transnet Port Terminals (TPT), which provide world class cargo handling and logistics services. TNPA, one of five operating divisions of Transnet, the South African logistics parastatal, is responsible for the safe, effective and efficient economic functioning of the national port system, which it manages in a landlord capacity. It provides port infrastructure and marine services at the eight commercial seaports in South Africa and operates within a legislative and regulatory environment created by the National Ports Act 2005. TPT, established in 2000, is responsible for operations and landlord businesses and plays a key role in supporting the South African government’s export-led 54

growth strategy. Most Southern African import and export commodities are handled through South Africa’s seven biggest logistics ports with container terminals at Durban, Ngqura, Port Elizabeth and Cape Town; mineral bulk at Richards Bay, Port Elizabeth and Saldanha; break-bulk and specialised agricultural bulk at Durban East London and Cape Town; and ro-ro at Durban, Port Elizabeth and East London. TPT’s major customers represent a broad spectrum of the economy and include the shipping industry, vehicle manufacturers, agriculture, timber and forest products, the mining industry and exporters of minerals, metals and granite. TPT has spent millions in upgrading its terminals, redeveloping the Durban Container Terminal Pier 1 facility and launching the Ngqura Container Terminal servicing traffic from the East, South America and West African markets. All these container terminals utilise

TRADE & INVEST AFRICA

The port, one of South Africa’s newest after Ngqura (Coega), is located approximately 160 km north-east of Durban and 465 km South of Maputo on the eastern seaboard of South Africa. It was established in 1976 primarily for the export of 26 million tons of coal over the first ten years. The combination of specialised cargo handling facilities, fast vessel turnaround, deep water infrastructure, excellent rail links to the interior and the large greenfield development potential, has made it one world’s leading bulk ports. It now handles in excess of 80 million tons annually, representing approximately 60% of South Africa’s seaborne cargo. Its multi-purpose terminal handles about 5.6 million tons per year. The port offers all the usual services such as divers, chandlers, bunkering, and minor repairs but has no dry-dock or dedicated passenger terminal. However, cruise ships frequently use the port because of its access to tourist attractions like game reserves. In addition a world class Vessel Traffi Service (VTS) which supplies relevant information to ensure the safe navigation of vessels through areas of high-density traffic, channels and the approaches to ports, has been installed at Richards Bay. A dedicated railway line connects the port with Mpumalanga and Gauteng provinces, while there are direct rail and trunk road connections with all major South African cities and neighbouring countries.

Transport

Port of Durban The port, one of the busiest and biggest in Africa, traces its origin all the way back to 1824 when the Bay of Durban offered settlers a natural harbour. Its first harbour master was appointed in 1839. The Port of Durban handles over 80 million of cargo each year and is the leading port of the SADC region. It is a premier gateway for South-South trade and trade with the Far East, Europe, the United States, Middle East, and East Africa. The port is a focal point in the transport and logistics chain of South Africa and the SADC region with 60% of all imports and exports passing through this port. The port is close the city’s central business district, an international airport, and has road and rail connections with all major cities and countries of the region. The port deploys a wide range of modern, standard and specialised cargo handling equipment, has a dedicated bunkering berth, a dedicated passenger terminal, has ample ship repair facilities, a wide range of open and covered storage, good security, and offers all the usual services expected of a large, modern port. Port of East London This port is located approximately 950km east of Cape Town and 460 km south of Durban on the eastern seaboard of South Africa. It is South Africa’s only river port situated at the mouth of the Buffalo River, East London in the Eastern Cape province. It is a general cargo port with excellent rail and road connections to other cities, the interior and neighbouring countries. The port has the largest import-export grain elevator in South Africa and a car terminal connected by dedicated road to the nearby Daimler (Mercedes Benz) factory on the east bank of the port houses. A multi-purpose terminal that handles an ever-increasing volume of containers and is geared for 90,000 TEUs a year. The port offers bunkering, dry dock and other ship repair facilities, and all the usual services and facilities. The port has

a wide range of modern, standard and specialised cargo handling equipment as appropriate to the various terminal operations. Port of Ngqura The port is a newly constructed deep water port and lies some 20km northeast of Port Elizabeth at the mouth of the Coega River in Nelson Mandela Bay (Algoa Bay) on South Africa’s southeastern seaboard. It is South Africa’s 8th and newest commercial port development. Ngqura began commercial container ship operations in 2009. The port is protected by the main eastern breakwater (length 2.7 km) and a secondary western breakwater (length 1.125km) and is capable of handling container, dry and liquid bulk vessels. There are 7 berths ranging up to 325m length, with a capability of docking approximately a 340m vessel. The port is designed to accommodate post-Panamax dry and liquid bulk carriers as well as the new generation of cellular container ships. Ngqura is the first port in the world to have a fixed embedded jet pump sand bypass. Adjacent to the port is the Coega Industrial Development Zone (IDZ). The port and IDZ have direct access to the rail and road links to other South African cities and inland to neighbouring countries. Port of Port Elizabeth The third oldest port along the coast of South Africa, Port Elizabeth is a geographically well-positioned, customercentric, multi-cargo port. A such it is the gateway for expanding markets, a role now being supplemented by the new Port of Ngqura some 20km away. The port is situated in Algoa Bay on the south-eastern coast of South Africa. It is home to one of South Africa’s five container terminals. The port is free of congestion and can thus maintain high cargo handling and turnaround rates. It is equipped to handle dry bulk, bulk liquid, general cargo and container cargo. Passenger ships also make use of one of

TRADE & INVEST AFRICA

TIA

the fruit terminal berths when calling at here. The container terminal has 3 berths and 22 hectares of storage area. The port’s container terminal has three berths totalling 925m in length and a storage area of 22 hectares with 5400 ground slots for stacking purposes. The container terminal is equipped with the latest generation gantry container cranes and straddle carriers. The port also handles manganese ore from the Northern Cape and petroleum products, and ships vehicles for the local motors industry. It is also extensively used by the fishing industry. The port has excellent rail and road links with the rest of the country and the South African region. The port is losing some of its business the new Port of Ngqura, a factor that may prevent any expansions or new developments in the foreseeable future. Port of Cape Town This is South Africa’s oldest port – although Mossel Bay was first used as a replenishment station by seafarers - and probably the best known port in Africa alongside Alexandria and Dar es Salaam. It is positioned almost at the southern tip of the African continent. Over the centuries Cape Town has evolved from a replenishment post on a major east-west trade route into a modern general cargo port offering all facilities and services. Its location is also one of the most beautiful in the world, lying at the foot of Table Mountain at what is also known as the Cape of Good Hope, Cape of Storms, and Fairest Cape. It is also the port that opened up Sub-Saharan Africa for exploration by people from Europe, opened up trade routes, and facilitated development in all of Southern Africa. The strategic importance of its position on one of the busiest sea routes in the world was proven by the closure of the Suez Canal several decades ago as well as the much more recent escalation of piracy along Somalia, both of which diverted cargo traffic to Cape Town. The port serves especially the trade

Transport

between Southern Africa and Europe, South, Central and North America, Australia, West Africa, and the Far East. It is geared largely for handling general cargos and containers, but is also wellknown for its deciduous fruit and fish exports. As a container port it is second only to Durban and the container terminal has six deep-water berths that are served by a fleet of post-panamax gantry cranes. The multi purpose terminal at Duncan Dock handles fruit, fish, timber, wool, steel, paper, maize, wheat, rice, coal, scrap and other general cargo, as well as large passenger cruise ships. With its excellent dry dock and other ship repair facilities the port also serves Asian fishing fleets and the West African oil industry. Furthermore it is a favourite port of call for the cruise line industry, with smaller cruise ships docking right up against the five star hotels and shopping malls of the V&A Waterfront. There are two dry docks, a repair quay and ship lift facilities, while a full range of services and facilities are available. The harbour is walking distance from the modern, pulsating central area of Cape Town. The Port of Cape Town has a comprehensive range of covered and open storage facilities as well as very good security and all modern cargo hand ling equipment. The grain elevator has storage capacity of 28,000 cubic metres. The harbour boasts internationally competitive turn-around times. The weather in and around Cape Town can, however be hazardous with severe winter storms and very strong summer winds making approaches to the harbour difficult at times. The port is directly connected to the South African trunk road network as well as excellent rail infrastructure connecting it with all South Africa’s major cities and countries of the SADC region and further north. In 2013 the recently upgraded Cape Town Container Terminal was named one of the world’s top 120 container ports by the Container Management Report that annually rates international container ports based on terminal volumes and competitiveness.

Port of Saldanha Bay Some 60 nautical miles north-west of Cape Town along South Africa’s rather barren West Coast lies the Port of Saldanha. Discovered by Portuguese seafarers in 1601 as a place of natural shelter for their ships, it remains the largest and deepest natural port in the Southern Hemisphere able to accommodate vessels with a draft of up to 21.5 meters. The port has a purpose-built rail link from the Sishen iron ore mines in the Northern Cape interior, directly connected to a jetty bulk loading facility for the shipment of iron ore. More recently the Saldanha Steel Mill situated close to the port exports manufactured steel through the port. There is a 990m long jetty containing two iron ore berths, an 874m long multipurpose quay for the handling of break-bulk cargo and a 365m tanker berth. A full range of services and facilities are offered. Namibia In Namibia the National Port Authority known as Namport manages both the Port of Walvis Bay and the Port of Lüderitz. Walvis Bay is the country’s only commercial harbour serving clients throughout the Southern African Development Community (SADC). It is a sheltered deep water harbour benefiting from a temperate climate with no delays caused by bad weather. Lüderitz traditionally served only as a fishing harbour, but later started servicing the diamond industry as well, while there are plans to expand its operations to serve as a gateway and logistics base for various mineral operations as well as the petroleum industry. Namport is also embarking on an expansion programme that will see it triple its container volumes at Walvis Bay port from 355,000 twenty-foot-equivalent units (TEUS) to almost 1-million TEUS, at a cost of about R3bn. In addition, it is increasing its liquid-fuels handling capacity with investment in a new, deeper

TRADE & INVEST AFRICA

TIA

liquid-fuels berth at the port. Namport also manages a Syncrolift dry dock facility for vessels up to 2,000 tons and two floating docks with lifting capacity of 8,000 tons each. The Port of Walvis Bay facilitates a direct and fast trade route between Southern Africa, Europe and the Americas. This was significantly upgraded through the construction of the TransKalahari Corridor built jointly by the Namibian and Botswana Governments in the 1990s, followed later by the Trans-Caprivi Corridor, Trans-Cunene Corridor and the Trans-Oranje Corridor, all assisting in the rapid movement of cargo to and from Botswana, Zambia, Zimbabwe, Southern Angola, Southern DRC, and South Africa’s north-western regions. Angola Angola has six ports of which Luanda is the main port handling more than 70% of the country’s imports and exports, excluding oil which is mostly done through the Port of Cabinda. The Port of Luanda is administered and operated by the Administracao do Porto de Luanda. The Port of Luanda has 2,738mts of berths, divided over 5 terminals that cater for break-bulk, multipurpose, containers, oil and gas, with a separate fishing port. The busy container terminal is run by Sogester (Sociedade Gestora de Terminais S.A.), which is a joint venture between by APM Terminals and Angolan company Gestão de Fundos. The port moves about 1.5 million tons per year, mostly import cargo and half of which is containerised cargo, with goods ranging from wheat, flour, rice, sugar, cereals, frozen foods, to construction materials, steel products, and more. All the usual services associuated with a large and busy port are offered and include bunkering, towage, fresh water, dry dock, divers, stevedoring, chandlers, agents, and piloting. The southern Angolan Port of Lobito is being redeveloped and expanded at present to increase its current quay length of 1,122 meters to 7.8km and

Transport

will upon completion have ore and container terminals, be able to to dock 20 intercontinental vessels simultaneously, handle 11 million of general cargo and 700,000 TEUs per year. The Port of Namibe also serves the south of the country. Mozambique In Mozambique the Portos e Caminhos de Ferro de Moçambique (abbreviated as CFM and which in English translates as Mozambique Ports and Railways) is the parastatal authority that oversees the country’s railway system and its connected ports. Maputo is the main port while Beira, further north, is also an important yet smaller commercial port. The Maputo Port Development Company (MPDC) holds concessionary rights until 2033 to finance, rehabilitate, construct, operate, manage, maintain, develop, optimize and acts as Port Authority for much of the port. MPDC is a private company comprising a partnership between the Mozambican Railway Company (Caminhos de Ferro de Moçambique) and Portus Indico, which consists of South African logistics company Grindrod, DP World and local company Mozambique Gestores. Since MPFC’s involvement, the Port of Maputo has undergone significant upgrades and redevelopment in recent years and now competes with the Port of Durban in South Africa. The Grindrod Maputo Car Terminal started operating

in 2007 and now has a capacity of 4,158 parking bays with a throughput capacity of 150,000 cars per annum. It is strategically important to the region in handling growing volumes of trade from South Africa, Botswana, Swaziland and Zimbabwe. It is also Southern Africa’s nearest port to to Asia and the deep water port closest to Johannesburg and the mining and industrial provinces of Mpumalanga and Limpopo in South Africa, linked by excellent road and rail infrastructure. A good railway line connects it with central Zimbabwe. Also in Mozambique is the Port of Nacala, the country’s most northerly port situated in the deepest natural bay on the east coast of Africa and serving the Mozambican northern interior and landlocked Malawi. The management of Nacala port and railway has been outsourced to Portos do Norte SA, a consortium that includes the Brazilianowned mining group Vale Mozambique. Cargo handled includes cement, petrol, grains, containers, and infrastructure construction materials while a coal facility is on the cards. Tanzania The Port of Dar es Salaam is Tanzania’s principal port and one of the oldest and busiest ports, alongside Mombasa, on the East African coast. It has a rate capacity of 4.1 million tons dry cargo and 6 million tons bulk liquid cargo. The port has eleven deep-water berths with a total quay

TRADE & INVEST AFRICA

TIA

length of about 2,000 metres. The port handles about 95% of the Tanzania’s international trade and also serves the landlocked countries of Malawi, Zambia, Democratic Republic of Congo, Burundi, Rwanda and Uganda. The upgraded general cargo terminal has eight deep water berths handling dry bulk cargo and 81,040 square meters of covered storage. The terminal has an annual capacity of 2.5 million tons and is equipped with a variety of modern cranes, forklifts and tractors. The grain terminal has a fully automated silo for handling import and export grains. Discharge is by a grab/ hoppers system including three bagging units. Grain is transferred from the quay by 10 dump tractors. The silo is aerated and temperature controlled and has a holding capacity of 30,000 . Fumigation facilities are also available to protect the grains against damage by moulds or insects. The country’s three ports are managed and operated by the Tanzania Ports Authority. Some countries, like Zambia and Malawi, have their own cargo centres located near the port to facilitate cargo consolidation. The port is linked by road and rail to the interior and neighbouring countries. The port is strategically placed to serve as a convenient freight linkage not only to and from East and Central Africa countries but also to middle and Far East, Europe, Australia and America. Dar es Salaam is the fourth-largest container port on Africa’s eastern seaboard after Durban in South Africa, Mombasa and Djibouti. Tanzania is set to spend about US$211-million over the next 12 months upgrading the Dar es Salaam port as it seeks to match the efficiency of Mombasa in neighbouring Kenya, the Tanzania Ports Authority recently announced. The improvements, to be completed by July this year, will include strengthening and deepening seven berths, a new conveyor belt and silos, and construction of additional berths.

By Stef Terblanche

Key Information for Southern African Ports Dar es Salaam: Location: Latitude -6º -46’ -57’ S, Longitude 39º 17’ 4’ E. Specs: Medium sized; good shelter; over 150m overall length vessels. Terminals: Container; general cargo; grain. Services: Bunkering, fresh water, repairs, divers, stevedoring, chandlers, agents, piloting. Berths: 11 deep water berths. Cargo Volumes: 13 million tons. Operating: 24hrs all year. Contacts: Tel +255-22-2110401/2113642; Fax +255-22-2113646; Email pmdsm@tanzaniaports.com. Maputo: Location: Longitude 32° 34’ E, Latitude 25° 58’ S Specs: Medium sized; good shelter; over 150m overall length vessels. Terminals: Maputo Cargo Terminals for general cargo, bulk liquids, bagged sugar, cars, coastal, India and container; Matola Bulk Terminals for aluminium, coal and grain. Services: Bunkering, fresh water, small drydock, divers, stevedoring, chandlers, agents, piloting Berths: 16 berths. Cargo Volumes: Upwards of 14 million tons. Operating: 24 hrs, 7 days, all year. Contacts: Tel +258 21 34 05 00; Fax +258 21 31 39 21; Email info@portmaputo.com. Richards Bay: Location: Latitude 28˚ 48’S, Longitude 32˚ 02’E Specs: Large sized; good shelter; over 150m overall length vessels. Terminals: Dedicated coal, multi-purpose bulk, liquid bulk Services: Bunkering, fresh water, minor repairs, divers, stevedoring, chandlers, agents. Berths: 23 up to 350m long Cargo Volumes: Over 90 million tons (89 million tons in 2011, of which 84,500 tons bulk) Operating: 24hrs per day all year Contact: Tel +27 35 905 3440; Fax +27 35 905 3333; Email tessie.gower@transnet.net ; Durban: Location: Latitude -29.869175° , Longitude 31.034514° Specs: Large sized; good shelter; over 150m overall length vessels. Terminals: Multi-purpose terminals; 2 container terminals; ro-ro car terminal; 4 privately owned bulk handling facilities; 4 coal berths; privately owned sugar terminal; numerous other privately owned facilities for the handling of specialised commodities. Services: Bunkering, fresh water, repairs,

divers, stevedoring, chandlers, agents. Berths: 58 berths ranging from 148m to 350m, with depths up to 12.2m. Cargo Volumes: Over 80 million tons per year; 2.698 million TEUs; 120,000 cars per year. Operating: 24hrs per day all year Contact: Tel +27 31 361 3755; Fax +27 31 361 8920; Email customercare@transnet.net. East London: Location: Latitude 33˚ 01’ 26’’S, Longitude 27˚ 54’ 50’’E Specs: Small sized; good shelter; vessels over 150m length. Terminals: Grain, car and multi-purpose. Services: Bunkering, fresh water, repairs, divers, stevedoring, chandlers, agents. Berths: 11 commercial berths ranging up to 250m in length. Cargo Volumes: Approx. 8 million tons per year; 55,000 TEUs; 50,000 vehicles. Operating: 06:00 to 22:00 for marine services daily. Contact: Tel +27 43 700 1200; Fax +27 43 700 2319; Email Terry.taylor@transnet.net. Ngqura (Coega): Location: Latitude 33˚ 48’S, Longitude 25˚ 41’E Specs: Small sized; good shelter; vessels over 150m length. Terminals: General and container; dry bulk; bulk manganese; ro-ro. Services: Bunkering, open/covered storage, fresh water, divers, stevedoring, chandlers, agents. Berths: 7 berths ranging up to 325m length Cargo Volumes: Upwards of 7 million tons per year; 600,000 TEUs. Operating: Weekdays 24 hrs – weekends less; not on Christmas and New Year’s days. Contact: Tel +27 41 5071957; Email Margorie.Makama@transnet.net. Port Elizabeth: Location: Latitude 34 ° 01’ S (3357, 5 S), Longitude 25 ° 42’E (2538, 5 E) Specs: Medium sized; fair shelter; vessels over 150m length. Terminals: Container and general cargo; roro; break-bulk; tanker; fishing. Services: Bunkering, fresh water, minor repairs, divers, stevedoring, chandlers, agents. Berths: 12 berths ranging up to 318.5m length. Cargo Volumes: Upward of 12 million tons; containers upwards of 300,000 TEUs. Operating: 24 hours, 365 days of the year. Contacts: Tel +27 41 507 1957; Customer Services +27 21 507 1700; Email Margorie.Makama@transnet.net. Cape Town:

TRADE & INVEST AFRICA

Transport

TIA

Location: Latitude 33˚ 54’S, Longitude 18˚ 26’E Specs: Large sized; good shelter; vessels over 150m length. Terminals: General cargo; container; ro-ro; agricultural; tankers. Services: Bunkering, fresh water, major repairs, divers, stevedoring, chandlers, agents, oil industry. Berths: 34 berths up to 318.5m length. Cargo Volumes: Upwards of 15,000 tons per year; container Cargo Volumes 1.4-million TEUs per year. Operating: Cartage 24 hours per day; break-bulk 06:00 – 22:00 Monday to Friday; containers 24 hours a day, 362 days per year. Contact: Tel +27 449 5293; Fax +27 21 449 2665; Email Coen.birkenstock@transnet.net. Saldanha: Location: Latitude 33” 2”S, Longitude 17”5”E Terminals: Ore/dry bulk; general; liquid. Services: Bunkering by tankers (no pipelines), fresh water, smaller repairs, divers, stevedoring, chandlers, agents. Berths: 3 X MPT berths; 2 X iron ore berths; 1 crude oil berth; all ranging up to 318.5m length. Cargo Volumes: 60 million tons. Operating: 24 hours, 365 days. Contacts: Tel +27 22 703 5401; Fax +27 86 550 7548; Email Bukiwe.gomo@transnet.net. Walvis Bay: Location: Latitude 22°56’08’’ S, Longitude 014°29’07’’ E Terminals: Container; general; dry bulk. Services: Bunkering, fresh water, repairs, divers, stevedoring, chandlers, agents, towage, waste. Berths: 8 berths Cargo Volumes: 7-8 million tons; 250,000 containers per year. Operating: 06h00–22h00 Mondays to Fridays, shorter times other days. Contacts: Tel +264 64 208 2111; Fax: 264 64 208 2323. Luanda: Location: Latitude 8° 46’ 59” S, Longitude 13° 16’ 0” E Terminals: General bulk cargo; container terminal; petroleum. Services: Bunkering, towage, fresh water, dry dock, divers, stevedoring, chandlers, agents, piloting Berths: 3 berths up to 250m long. Cargo Volumes: Approx. 13 million tons Operating: 24 hours per day, 7 days per week, all year. Contacts: Tel +244 2 336584 & 335787; Fax +244 2 335975.

it’s simple we source we supply you save... To offer significant savings in oilfield supplies you To offer significant savings in oilfield supplies you need to purchase in bulk. Now there’s nothing new need to purchase in bulk. Now there’s nothing new here, it’s just simple ‘large order discount’ economics. here, it’s just simple ‘large order discount’ economics. But in this present climate where everyone is looking But in this present climate where everyone is looking to make savings, using us for your global sourcing to make savings, using us for your global sourcing and worldwide supply will give you access to a and worldwide supply will give you access to a leading purchaser of oilfield supplies in South Africa leading purchaser of oilfield supplies in South Africa and all the benefits that come with it. and all the benefits that come with it. So why not join our growing group of delighted So why not join our growing group of delighted customers and let our purchasing power deliver customers and let our purchasing power deliver significant savings for your business. It’s simple! significant savings for your business. It’s simple!

GLOBAL SOURCING, WORLDWIDE SUPPLY Visit us at AFRICA OIL WEEK 2013 - Stand 18 WINNER: Supplier of the Year 2013 Africa Oil and Gas Awards T: +27 (21) 552 9445

www.craig-international.com CAPE TOWN

ACCRA

TAKORADI

ABERDEEN

HOUSTON

KRAKOW

Advertorial

TIA

Craig International Supplies continues its growth throughout Africa *This article was supplied by Craig International Supplies

il, gas and mining companies throughout Africa are benefiting from the extensive experience and buying power of one of the leading global oilfield procurement companies. Craig International Supplies (CIS) Pty, is now recognised as the gateway to oilfield procurement for South and West Africa following major expansion to its network of bases and an impressive, growing client list across the entire continent. Customers such as Halliburton, Dolphin Drilling and Subsea 7, are being supplied to wherever they are from Angola, Nigeria and Namibia to Equatorial Guinea, DR Congo, Sierra Leone, Tanzania and Kenya. Named as the Best Supplier of the Year in the Africa Oil & Gas Awards 2013, CIS is highly proficient in sourcing the right products and supplying them on time and on budget. Established over ten years ago, the business also supports all major ports including Durban, Port Elizabeth, Cape Town, Saldanha Bay and those in Namibia. CIS has a team of specialised buyers in place to meet customers’ requirements and add value to their supply chain. Located in the heart of Cape Town, the office and significant warehouse space enables CIS to securely pack cargo to international standards, arrange third party inspections and organise shipment by sea or air through global logistics partner GAC. CIS holds around $1 million worth of stock to enable client demand to be met at short notice. The official distributor of JetLube products in Southern Africa,

CIS is also a distributor for Scaw Metals allowing the supply of different types of lifting equipment. Thinus von Waltsleben, Country Manager CIS Pty, said: “With a depth of experience and a global network of bases holding substantial stock, CIS is a market leader in its field in Africa. Our commitment to adding value and reducing costs in the supply chain has seen us supply everything from low value consumables to high value items including mooring and earth moving equipment, whilst also helping customers with travel arrangements, as well as setting up remote camps which include portable offices, water supply, catering and vehicles. Essentially, we are the go to company for procurement.” In addition to robust processes and procedures to ensure that every order is managed effectively, whatever the size and timescale, CIS holds a B-BBBEE rating of 6, is fully compliant with ISO/DNV and is a member of the South African Oil and Gas Alliance (SAOGA). Earlier this year, the company opened a base in Ghana to serve as a hub for procurement services to clients in-country and in neighbouring Nigeria, Cameroon and the Ivory Coast. With an office in Accra and a warehouse in Takoradi, CIS is able to offer a vast array of on -theground stock ranging from PPE, tools and lubricants to welding, consumables and lifting equipment including high usage MRO products. CIS also launched ebuy, the online procurement catalogue for the energy industry which gives customers access

TRADE & INVEST AFRICA

to over 50,000 products across 1,000 categories anytime, anywhere. A fully integrated system, ebuy has been designed to streamline the whole purchasing process and allow customers to quickly build and track orders. In addition, the company will be opening a base in Mozambique to further extend its service reach. Steven Craig, Business Development Manager CIS Pty, said: “Mozambique is an important market for CIS to expand into. It would effectively become a hub for us to widen our services into East Africa including Tanzania and Kenya”. CIS Pty is a division of Aberdeen headquartered Craig International Supplies Ltd which has bases in Houston, Ghana and Poland with another new base planned for Australia in addition to Mozambique.

TRADE & INVEST AFRICA

transport

TIA

SA container terminals rated among world’s top 120 container ports *This article was supplied by Transnet National Ports Authority, South Africa

wo of South Africa’s ports – Durban and Cape Town – have been ranked among the world’s top 120 container ports by the Container Management World Top Container Ports 2013 report. Ranked on Twenty Foot Equivalent Unit (TEU) throughput the Cape Town Container Terminal (CTCT) handled 12,9% more containers in 2012 compared 2011, placing it in position 119 for the first time. The Durban Container Terminal was ranked in position 51. Transnet’s R307 billion seven-year rolling capital investment programmes to expand port, rail, and pipeline infrastructure to increase capacity to meet market demand, is playing a vital role in creating capacity in the SA ports system. Part of Cape Town port’s success is a result of a US$811m (R5,2 billion) expansion by Transnet National Ports Authority (TNPA) of the CTCT. This fiveyear multi-phased project, completed in August 2013, has doubled the terminal’s capacity to 1,04 million TEUs. Key aspects of TNPA’s investment include deepening of all four berths to 15,5 metres; extending the quay wall by 10m over its entire 1137m length; the reconfiguration of the stacking yard to maximize space and refurbishing quay walls to support new larger cranes. This enables CTCT to receive and service 8000 TEU vessels with containers stacked eight high and 19 across with ease. For its part Transnet Port Terminals

(TPT) at the CTCT replaced old shipsto-shore cranes with six Liebherr super post-Panamax units all with twin-lift capability and replaced straddle carriers with 38 Kalmar Rubber Tyre Gantries with a stacking capacity of six over five. An additional 2700 reefer plug points for refrigerated containers were installed resulting in a total of 3752 plug points to handle growing perishable cargo. The terminal is also optimising the use of equipment and resources resulting in reduced vessel turnaround time and ship working hours. At the Port of Durban TNPA is undertaking several mega infrastructure upgrades to improve capacity as part of Transnet’s Market Demand Strategy. The economic downturn combined with some shipping lines diverting transshipment cargo to the Port of Ngqura and, infrastructure maintenance and upgrades at the Durban Container Terminal (DCT) resulted in a 5% drop in TEU throughput in 2012 compared to 2011. This saw the terminal slip from position 46 to 51. Infrastructure maintenance and upgrades at DCT include scour protection, strengthening the quay wall to accommodate new cranes as well as stacking area rehabilitation. Other upgrade projects to improve container handling include the Point and Maydon Wharf where additional container capacity of 300 000 TEU was created. Future expansion at Pier 1 will increase capacity 2,1m TEUs and to improve

TRADE & INVEST AFRICA

efficiency, the North Quay at Pier 2 will be deepened. In addition Transnet Port Terminals has commissioned seven new ship-to-shore twin-lift cranes. These are the biggest in Africa and can handle containers stowed 24 across deck. Also 20 new straddle carriers have been purchased of which 14 have a twin-lift capability. Container volumes in Durban are expected to grow from 2.69 million TEUs in 2012 to between 9 - 12 million TEUs per year by 2040. To meet this growth a new complementary port – the Durban Dig Out Port - is proposed at the old Durban Airport Site. The concept phase of this port has been completed and the pre-feasibility phase is underway. Transnet National Ports Authority (TNPA) is undertaking many other mega projects across all its ports. These are being undertaken in terms of Section 56 (S56) of the National Ports Act 2005. S56 enables TNPA to create new business opportunities for those previously excluded from the ports’ system by outsourcing the finance, design, development/ construction, operation and maintenance of facilities. A key rationale is that the bidding process is transparent, fair, equitable and competitive. Ultimately it is no longer business as usual for operators as competition is injected in to the port system and enhanced efficiencies, quality of service and productivity is expected by TNPA.

01 Maputo Port Development Company CE Osá˝&#x20AC;rio Lucas (left) and Transnet National Ports Authority CE Tau Morwe (right) sign a landmark MoU that paves the way for information and knowledge sharing. 02 Namport CE Bisey Uirab (left) and Transnet National Ports Authority CE Tau Morwe sign a MoU that will lead to collaboration across a wide range of port activities.

TRADE & INVEST AFRICA

transport

TIA

TNPA plays its part in promoting African regional port co-operation *This article was supplied by Transnet National Ports Authority, South Africa

key priority for the Southern African Development Community (SADC), the Common Market of Eastern and Southern Africa (Comesa) is regional co-operation. It is also in line with Transnet’s Market Demand Strategy which, among its imperatives, calls for a review of the state owned entity’s role in the development of the North-South and East-West logistics corridors. “We believe that in a spirit of cooperation we can be exponentially more efficient and play a key role in lifting regional trade within the SADC region from its current level of 12%. What we can achieve remains to be seen, but we should aspire to achieve the figures of other leading regional economic communities such as those of Asia and Europe where intra-regional trade is in the region of 60%,” said TNPA’s Chief Executive Mr Tau Morwe. As a fully-fledged member of the Port Management Association of Eastern and Southern Africa (PMAESA) the MoU’s comply with PMAESA’s resolution to foster collaboration and co-operation with member states. This striving for co-operation to improve regional trade and competitiveness is the motivation for the signing of ground-breaking Memoranda of Understanding (Mou) with the Maputo Ports Development Company (MPDC) and the Namibian Port Authority (Namport) during the second half of 2013. “TNPA realises that although we are arguably a dominant player on the African Continent as a ports system we do not have the monopoly on the expertise and knowledge. Other port systems on the African continent have strengths and unique aspects that we do not and we can tap into this without affecting their

competitiveness or independence. “Similarly they can learn vital lessons from us without disrupting our operations or negatively impacting on our business agenda,” says Morwe. For Osὀrio Lucas, Chief Executive: MPDC, the MoU has the intention of fostering competitiveness and growth and the realisation of the MPDC’s vision of propelling the region forward. Bilateral talks aimed at agreement on MoU’s with other southern and eastern African port authorities are underway. These include Kenya, Tanzania, Angola and Ghana. The Memoranda of Understanding open up collaboration and the exchange of technical expertise on matters of common interest in areas of infrastructure development, engineering, marine services, port management and operations, port environment and security and training. The collaboration means that the MPDC and Namport can access TNPA’s capacity and expertise at a lower cost than that of European or Eastern ports. For example, the MPDC’s dredging team has been to the Port of Durban to share its dredging knowledge and look at its processes. TNPA has sent a team of engineers to Maputo to look at its infrastructure development and provide guidance and expertise. The Maritime School of Excellence, a leader in marine training on the continent, is available for technical and maritime training as is TNPA’s port planning and engineering expertise and Safety, Health and Quality (SHEQ) expertise. On the other hand it means that TNPA can access the expertise of the MPDC which it can apply to its ports. An example is that of ore dust control at the

TRADE & INVEST AFRICA

Port of Maputo which TNPA is looking at implementing at various ports where dust control is required. Since the signing of the Namport MoU TNPA has been in discussion with Namport on its training programmes and shared policies on infrastructure development programmes and marketing. Mr Bisey Uirab Chief Executive: Namport says it is entering a new phase with emphasis on cost efficiencies, productivity and performance management. The MOU will assist in it achieving its goals and in promoting its port. Beyond SADC and Eastern Africa TNPA is looking at agreements with other international ports to assist it achieve its goals. In March 2014 a sister-ship agreement was signed between TNPA and the Miami-Dade County that will pave the way for co-operation between the two bodies. By virtue of its position as a port infrastructure provider and owner TNPA plays a key role in the cruise liner tourism development and thus in SA’s tourism industry. To this end it intends to develop dedicated cruise liner terminals at the Ports of Cape Town and Durban. A 2011 City of Cape Town report found that one 2000 passenger liner with a crew of 600 would spend around R2.2 million a day. If 25 liners visited the city in a season it would mean an additional R228.5m in revenue. In 2011, a total of 19 cruise ships brought more than 11 000 visitors to the province. The Port of Miami is the cruise capital of the world and the ability to have a free exchange of information is invaluable, says Morwe.

Leading cargo insurance brokers, trade and transportation risk consultants

A proud record of exceptional service and value delivered through the leading advisors in the industry. We understand supply chain liabilities, risks and exposures Johannesburg (+27) 11 771 - 5 4 0 0 • Durban (+ 27) 31 584 - 2 6 0 0 • Cape Town (+ 2 7) 21 487 - 3 8 8 0 • London (+ 44) 20 791 7 - 6 0 3 9 w w w. e i k o s r i s k a p p l i c a t i o n s . c o m • i n f o @ e i k o s . c o . z a Eikos Risk Applications (Pty) Limited is an Authorised Financial Services Provider: license number 481

Managing logistics in Sub Saharan Africa: not for the faint-hearted

Advertorial

TIA

“For benchmarking purposes, if we exclude Durban, and to a lesser extent, Mombasa, average dwell times in most ports in Sub-Saharan Africa is close to 20 days (compared to three to four days in most international ports.)”

Managing logistics in Africa is not for fainthearted

These long delays adversely affect the efficacy of port operations, and of course increase congestion in container *This article was supplied by Eikos Risk Applications terminals.

Road is slow,goods expensive, and at totimes, dangerous. ransporting anywhere continues be of concern. We need

mishandled at port, and with the inherent can be challenging and in Sublocal government to urgently upgrade of transporting freight on Sub- which Cargo transporters on the road face further challenges. Roads are inadequatelydangers maintained and are overloaded Saharan Africa, delivering goods to provincial roads throughout South Africa Saharan road and rail. makes it increasingly difficult for trucks to travel safely on them. According to the CSIR’s 9th State of Logistics Survey, customers on time and at the right cost, is as their state of disrepair continues to Companies in the logistics sector inland freight volumes have risen across the board in 2011 and 2012, and yet the condition of provincial road networks indeed fraught with obstacles which need impact negatively on the logistics sector,” face challenging demands in Southern has deteriorated Reimers, managing director if Eikos Risk to be identified markedly. and managedRemarks correctly. Hughremarks Hugh Reimers, managing AfricaApplication: and it is crucial that, with the right Although Africa’s ports have made director of Eikos Risk Applications. specialist advice, these risks are mitigated “The contribution of poor road conditions to accidents involving trucks huge progress in recent years, thanks and financed efficiently where possible. continues to be of concern. We need local government to urgently upgrade largely to successful port management Inconsistent tax frameworks, Marine insurance can be very provincial roads statesaysofEikos’ disrepair partnerships, problems persist. Cargo throughout costly delaysSouth Africa as their confusing, Reimers. Eikos to ofimpact dwell timecontinues is a clear indicator a port’s negatively on the logistics sector.” has a highly skilled marine team that efficiency, and where Durban may have a Companies operating in Sub-Saharan is available to provide advice on the dwell time of up to four days, a report by African countries experience the array intricacies of insuring international cargo Inconsistent tax frameworks and costly delays the World Bank in 2012 reflects that cargo of tax systems as an added frustration in risks. dwell timeoperating in Africa south of the Sahara is countries the supplyexperience chain. Where the a border official The company’s specialistfrustration legal team can Companies in Sub-Saharan array of tax systems as an added in the abnormally long. agreewith with the pricing with analysing and understanding supply chain. Where a border official maymay notnot agree thetransfer transfer pricing toassist be applied, the result may typically be benchmarking if we to be applied,Having the result typically be contractual exposures through double“For taxation: more purposes, administration, more delays. tomay wait any longer than necessary at a assumed border is particularly exclude Durban, and to a lesser extent, double taxation: more administration, various trade agreements. Eikos’ of cargo, detrimental for cold chain logistics providers. Yet another problem facing the freight sector is the return ofteam load Mombasa, average dwell times in most more delays. risk profilers can guide companies in the as an empty return leg is expensive and has to be factored into the cost. This costing must be prudently done to remain ports in Sub-Saharan Africa is close to Having to wait any longer than gathering of appropriate risk information competitive. 20 days (compared to three to four days necessary at a border is particularly in order to profile their risks. As insurers in most international ports.),” says the detrimental for cold chain logistics tend to apply higher premium rates when Insurance solutions for freight and owners report. providers.operators Yet another problem facingcargo there is little risk information, Eikos’ risk These long delays adversely affect the freight sector is the return of load profilers assist companies by presenting Successful companies will be those who have identified the risks in their supply chain and have taken the necessary the efficacy of port operations, and of cargo, as an empty return leg is expensive the necessary information on their risks steps to create sustainable solutions. As an independent marine insurance broker specialising in international and course cargo increaseinsurance, congestion in container and supply and has chain to be factored the Risk cost. This to insurers, so that insurers rate theirimpact domestic liabilities risks, into Eikos Applications understands the can financial terminals. costing must be prudently done to remain risks appropriately. associated with cargo being damaged or mishandled at port, and with the inherent dangers of transporting freight on competitive. Marine insurance is based on longSub-Saharan road and rail. Companies in the logistics sector face challenging demands in Southern Africa and it is Slow, expensive and dangerous roads established maritime law – it is a complex crucial that, with the right specialist advice, these solutions risks arefor mitigated efficiently where Insurance freight and financed and specialised arena. Any possible. shortfall in a Cargo transporters on the road face operators, cargo owners company’s understanding of this difficult Marine insurance can be are very confusing! Eikos has a highly skilled marine team who available to provide you with further challenges. Roads inadequately sector canisresult in its business suffering advice on the intricacies of insuring international cargo risks. Our specialist legal team assists with analysing and maintained and are overloaded which Successful companies will be those who a costly loss. Eikos’ recommendation understanding contractual exposures you identified assume the through agreements. Eikos has team of risk makes it increasingly difficult for trucks that have risks inyour their various supply trade is simple: Companies should getaEikos to travel them. to chain and haverisk taken the necessaryin steps Risk Applications on theirAs side as it profilers to safely guideonyou in According the gathering of appropriate information order to profile your risks. insurers tend to thehigher CSIR’s 9th State of rates Logistics Survey, create sustainable solutions. an profilers understands and apply premium when there is to little risk information, ourAsrisk assist youthebycomplexities presenting the necessary inland freight havetorisen across so that independent insurance challenges of maritime insurance. Eikos’ information on volumes your risks insurers, insurersmarine can rate your broker risks appropriately. the board in 2011 and 2012, and yet the specialising in international and domestic supply chain risk management specialists condition of provincial road networks has cargo insurance, liabilities and supply unparalleled expertise Marine insurance is based on long-established maritime law – it is a complex will andprovide specialised arena. Any shortfall in deteriorated markedly. chain risks, Eikos Risk Applications across the full spectrum of marine cargo your understanding of this difficult sector can result in your business suffering a costly loss. Our recommendation to “The contribution of poor road understands the financial impact insurance. you conditions is simple:toget Eikos involving Risk Applications on your side, a company who understands the complexities and challenges of accidents trucks associated with cargo being damaged or

maritime insurance. Let our supply chain risk management specialists provide you with unparalleled expertise across the full spectrum of marine cargo insurance.

TRADE & INVEST AFRICA

Advertorial

TIA

PMAESA – 40 years of excellence in ports management

he Port Management Association for Eastern and Southern Africa (PMAESA) is an important organisation in the African maritime industry and a vital partner in the successful implementation of the African Union’s 2050 Maritime Strategy. The association recently celebrated its 40th anniversary with a major conference held in Durban, South Africa. PMAESA was originally established in Mombasa, Kenya, in 1973 as the Port Management Association of Eastern Africa under the auspices of the United Nations Economic Commission for Africa (ECA), following a recommendation made at a meeting of the African Ministers in charge of transport in Tunisia in February 1971. At the time two other associations, the North African Ports Association (UAPNA) and the Port Management Association of West and Central Africa (PMAWCA), were also established, all with the same objectives, namely: • To provide member`s with a chance to exchange ideas and information through conferences, workshops and media interfaces in matters related to transport and trade facilitation; • To assist members to modernise their systems in a bid to enhance productivity and service delivery; • To create and maintain relations with other development partners, regional/sub-regional, international organisations and transport authorities through mutual projects and studies in matters beneficial to members ; and • To facilitate implementation of International Maritime Organisation (IMO) Conventions and Programmes. PMAESA’s main mission is to be an excellent regional organisation in the above context for the ports and maritime sector in Eastern and Southern Africa. It seeks to promote and nurture best practices among member ports by creating an enabling environment for

*This article was supplied by PMAESA exchange of information and capacity building to contribute to the economic development of the region. The 40th Anniversary Conference in Durban attracted over 200 participants from within and beyond Africa who deliberated on wide ranging issues based on the theme ‘African Maritime Economic Integration.’ The venue was Durban’s world class International Convention Centre, with its apt slogan “where Africa and the world meet”. Various speakers addressed the conference. In his opening remarks the PMAESA chairman, Mr Tau Morwe, said the outcome of the two-day conference was to be presented to the African Union (AU) leadership to show how African port authorities will take forward the 2050 Integrated Maritime Strategy Vision. “In South Africa, the government is talking about benefits of beneficiation and the contribution towards industrialisation,” said Mr Morwe who is also the Chief Executive of Transnet National Ports Authority in South Africa. “When we think of our ports, we should also at the same time think of what the government is doing to move toward industrialisation. In terms of African trade we will be talking about different numbers if we can have conversations around what we are doing to contribute to integration and beneficiation,” he said. He told the conference participants that poverty alleviation, job creation and the rest will automatically fall into place once the African Ports executives started thinking along those lines. PMAESA’s secretary general, Mr Franklin Mziray, said members were aware that the ports sector is confronting a time of many changes. The discussions from the conference were aimed at helping the industry meet these challenges and move forward as one economic community. Conference speakers dwelled on sub-themes such as the general outlook

TRADE & INVEST AFRICA

for global economic integration discussed key drivers for growth and regional organisations, challenges and opportunities of economic development, and transformation currently taking place in the African maritime sector. The vibrant debates that characterized the two days were aimed at generating input aimed at defining the major guidelines for a comprehensive maritime strategy. From the experiences shared by the speakers and the engagement of all the participants a number of principal guidelines emerged, all of which had a common denominator: the view that “cooperation” remains a key driver of maritime economic development. Along these lines, the participants reaffirmed their intention to maintain control of all projects and activities for which the necessary expertise and competencies exist locally, and to avoid having these projects entrusted to foreign decision-makers. The participants also stressed the importance of the transport corridors and they illustrated the advantages to be derived from continuing to improve these corridors. They said that cooperation is also highly desirable in this sphere and advice was given on the sharing of expertise, juridical standardisation, harmonisation of tariffs and customs formalities, and the sharing and divulging of information. Speakers again stressed the advisability of adopting common regulations, as well as the need to create government entities to apply and oversee such common regulations so that commercial efficiency might be improved. In discussing the project for a “Motorway of the Sea” other speakers stressed the need to count on quantitative and qualitative data to support business planning in which PMAESA could be the provider of such data.

TSU OFFERS A World Class Security Service

PREPARED TO TAKE

ACTION

TSU Protection Services offers the most professional executive protection service in Africa. Minimising security risks is essential in todayâ&#x20AC;&#x2122;s business environment. Failure to choose the right security partner can result in situations where your assets, property and even the lives of your personnel are placed at risk. Be confident with TSU as your security partner. Professional attention to detail, superior training techniques and our business ethics are unequalled in the security industry.

TSU Protection Services (Pty) Ltd CAPE TOWN Tel: +27 21 385 0113/6/7 GAUTENG Tel: +27 12 653 4976 www.tsuafrica.com 72 TRADE & INVEST AFRICA

Security

TIA

Travel smart and get home safely

frica is a continent of extremities, from exquisite beauty to devastation, from extreme wealth to abject poverty, and from serene peace to daily conflict. Conflict can take many forms, but is often driven by socio-economic conditions that challenge people’s basic need for survival. This in turn creates threats for those who are vulnerable. As a result people constantly face threats to their personal security from common and political criminals. They are perhaps most at risk when travelling, both abroad and at home. Loss prevention and corporate security executives who have to reduce risks to company assets – the most important of which is people – have to take a long and hard look at commuter and extended travel security. They have to do all they can to protect their traveling employees and to instruct them in the means to protect themselves during their travels. While foreign travel has benefited from more open borders and more efficient means of transportation, criminal targeting of foreign visitors has risen dramatically. Political and other unrest, unfamiliar settings and widely varying levels of police performance increase visitors’ vulnerability. Protection for traveling employees ranges from recommending the use of security “hotlines” to medical assistance, travel advisories and contracted security training services. Security awareness training for employee groups might just save a life. This training that is based on easy,

TRADE & INVEST AFRICA

Security

common sense lessons. Because people remain relatively inattentive to possible criminal threats, they are easy victims. Elements of defence rank, in what might be a surprising order of priority to the uninitiated, as follows: awareness, preparation, avoidance and reaction (resolution, escape or resistance). As security professionals know, awareness is essential to a proactive response to risk. Proactive security means identifying a risk before an incident occurs. Realising the threat and planning ahead for it becomes part of the awareness requirement. Travel advisories issued by government departments and up-to-date online services report security conditions in foreign countries. Consulting these reports is invaluable for the well-informed traveller. Knowledge of the cultural issues, political situations and criminal trends of a particular area or region is important when choosing how, when or

whether to travel in that area. The same need for awareness applies to daily travel at home, whether it be knowing the “bad neighbourhoods” to avoid, watching for assailants in malls or garage parking lots, or being careful where money is handled such as at ATM’s, convenience stores or public transportation centres. People should also be alert to being followed. Alertness is key to avoiding bad situations. Awareness leads to preparation and ultimately to avoidance. Knowing when and where one may be vulnerable allows a person to prepare for and diminish that vulnerability. Safe travel preparedness can be as simple as knowing where you are and where you are going. In other words, don’t get lost. Establish an itinerary and carry a map. A cell phone provides the means for quick calls for assistance. Criminals gather information from hotel lobbies, overhearing restaurant conversations and even taxi rides, and plan their assaults armed with that information. Share information about your travel arrangements with as few people as possible and have receptionists or assistants refrain from telling callers you are out of town. People who are at high risk such as executives or high-profile individuals should vary their daily routines and their travel routes to dissuade attack. Criminals will often alter their target when they cannot base their plans on repetition or habit. Staying out of harm’s way abroad and at home is often accomplished by simply staying low-key and unpredictable. If the principles of awareness, preparedness and avoidance are followed, travellers will rarely be forced into reaction. Nevertheless, successful evasion of an imminent assault is directly proportional to the time between recognising the assault and it being initiated. The sooner one recognises a suspicious approach the better one’s chances are of maintaining distance and choosing an appropriate response. If an attacker is still out of physical range and questioned as to his or her intent, the would-be attacker will often choose to rather find a less aggressive

TRADE & INVEST AFRICA

TIA

potential victim. What is important for most people is the ability to overcome their embarrassment at verbally challenging a complete stranger, but it can avoid an incident. Suffering a little embarrassment is a great deal easier than surviving a criminal assault. A further response in pre-emptive reaction to an imminent attack includes also seeking a safe place. If you are being followed, find places where there are other people and enlist help. If your assailant has gained physical proximity, you must establish his or her intent. Listen to and evaluate the demands made. If the assailant wants your wallet or purse or car, give these up – unlike your life they are replaceable. Many professionals recommend physical resistance only when the assailant is intent upon bodily harm or attempting to remove you to another location for purposes of rape, deadly assault or taking you hostage with a demand for ransom. That determination is of course the most difficult. Those involved in either travel abroad or locally can greatly benefit from attention to basic lessons and available information, as well as from more explicit training in the means of safe travel where lessons learned translate to lives saved. Their best interests may be well served by security professionals who provide your travelling employees with guidance in the methods of safe travel. Those who benefit from such guidance will not only be on the road today - they can confidently expect to be on the road again. TSU International is a leader in this field and is spearheaded by the competent team of Chris Beukes and Gavin Riley. Their combined experience in the safety and security industry spans more than 40 years. The TSU Protection Services support teams in Pretoria and Cape Town include the international accredited City and Guilds and SASSETA training division headed by Wimpie Espag. *This article was supplied by Gavin Riley, Chief Operations Manager at TSU International.

Travel & Tourism

TIA

The business of African tourism So much more than lions, tree-houses and dugout canoes

ourism is the world’s top industry and the fastest developing industry in Africa, with opportunities abounding. According to a World Bank report published in October last year, in 2011 global tourism contributed 9.1 percent to world GDP, 5.9 percent of worldwide exports and 4.5 percent of global investment. Africa’s tourism revenues, it noted, are rising fast and are set to contribute more and more to world activity. In fact, in 2012 sub-Saharan Africa attracted 33.8 million visitors, up from a mere 6.7 million visitors in 1990. Its receipts from tourism for that year amounted to over US$36-billion, or 2.8 percent of total GDP. The World Bank report further says that Sub Saharan Africa’s tourism industry is set to spur more economic growth for the continent and directly employ 6.7 million people by 2021. “Africa’s private companies are increasingly attracting regional and international investment and the returns on investing in Africa are among the highest in the world,” says Makhtar Diop, World Bank Vice President for Africa. But the World Bank also warns that in close alliance with the private sector, African governments should also create better transport, electricity, infrastructure, and other key services to develop tourism for more broad-based growth and improved livelihoods. Despite difficult global economic conditions these last few years, tourism figures for most African countries, and especially for South Africa, keep on growing strongly year after year.

Demonstrating Africa’s commitment to developing tourism, South Africa has earmarked tourism as a key sector with excellent potential for growth. The government aims to increase tourism’s direct and indirect contribution to the economy from the 2009 baseline of

TRADE & INVEST AFRICA

R189,4-billion (7.9% of GDP) to R499billion by 2020. Already tourism supports one in every 12 jobs in South Africa. According to South Africa’s Minister of Tourism, Marthinus van Schalkwyk, the industry injected R35.3-billion into the economy from January to June last year.

Travel & Tourism

“Compared to other economic sectors, this is more than, for example, the R32.6billion that gold exports contributed during the same period,” said Van Schalkwyk. Just how dependent many African countries are on income from tourism, but also how they have developed their tourism industries, is demonstrated for instance by the fact that the World Travel and Tourism Council’s (WTTC) ranks the tourism sectors in Zambia and Namibia 13th and 18th respectively out of 184 countries in terms of their contribution to GDP. South Africa, which has far better developed manufacturing, mining, financial services, ITC and agricultural sectors, is ranked only 118th in terms of the tourism sector’s contribution to GDP. Taking the initiative Tourism has always been high on the African agenda, but now more so than ever before and plenty of activities are taking place as Africa seizes the initiative to benefit from global growth and new trends in travel and tourism. In March the African island nation of Seychelles hosted a well-attended meeting of a ministerial working group of African tourism ministers. Alain St. Ange, the Seychelles Minister for Tourism and Culture, has called for a comprehensive tourism brand image to be created for the continent, an idea that was widely discussed in the ministerial working group. And during April Angola will be hosting the 56th Meeting of the UN World Tourism Organisation’s (UNWTO) Commission for Africa and the Regional Seminar on Tourism and Air Connectivity in Africa. The latter will be a preparatory meeting for the joint UNWTO/ International Civil Aviation organisation Ministerial Conference on Tourism and Air Transport in Africa to take place in Seychelles in October. In another example, Reunion – a French-owned African island off the East coast – continues with a rewarding programme of bringing groups of travel agents from all over the world to the

island to market it as a tourist destination. Africa also continues to host a number of popular travel and trade fairs attended by travel and tourism professionals from all over the world. Among the best-known of these are still South Africa’s tourism Indaba Expo held each year in Durban during May, and the Karibu Travel and Tourism Trade Fair held in Arusha, Tanzania in June each year. In addition owners and operators of African travel and tourism operations and products, as well as a variety of African travel and tourism industry organisations and delegates from tourism ministries and boards of African countries each year attend a variety of international trade fairs where they promote African destinations. Among the most popular of these are the Beijing International Tourism Expo, ITB Asia in Singapore, World Travel Market in London, and International TourismusBorse (ITB) Berlin, Germany. While the World Travel and Tourism Council (WTTC) recently urged South Africa to make travel to the country easier by increasing and improving airport infrastructure and by signing bilateral visa agreements, other countries in Africa are doing just that. For example, earlier this year Kenya, Rwanda and Uganda turned their countries into a single tourist destination and introduced the East Africa Tourist Visa in February. Such cooperation also lead to enhanced marketing and costsavings in other ways. For instance during the recent ITB tourism fair in Berlin the three East African countries shared a common pavilion where they marketed the region as a prime tourism destination and promoted the new East Africa Tourist Visa. As for bilateral visa agreements, it has been found that the the elimination of visas between Turkey and Russia, for instance, had contributed significantly towards increased tourism between the two countries. Some African countries are currently considering this option. Opportunity: BRICS tourism bonanza The focus of global tourism is shifting

TRADE & INVEST AFRICA

TIA

east and south, away from the traditional markets of Europe and North America, to Asia, the Middle East and Latin America, says the World Travel and Tourism Council (WTTC). This is true also for the African, and in particular Southern and East African, inbound tourism market. However, Africa can do much more to cash in on current global tourism trends and capture a bigger slice of the action. The large, emerging middle classes of especially China, India and Brazil are now driving international tourism demand, says the WTTC. Increasingly this is also the case with inbound African tourism, which puts South Africa – and by extension all the countries of the Southern African Development Community - in a prime position through South Africa’s membership of the BRICS bloc of countries (Brazil, Russia, India, China and South Africa). However, in a recently released report the WTTC says South Africa needs to do more to capitalise on the current global tourism growth trends. While international traveller spend went up 3.9% in 2013 to US$1.3-trillion globally, South Africa’s share of that spend in 2013 was only US$8.97-billion, a figure the report predicts will rise 5.7% this year. Outbound tourism from China – the world’s number one global tourism source market in terms of both number of trips and money spent on international travel according to Forbes –continues to increase in leaps and bounds. The 58-million outbound Chinese travellers of 2012 almost doubled to 100-million last year and it is projected that by 2020 there will be more than 200-million outbound travellers from China according to Hong Kong-based research firm CLSA Asia-Pacific Markets. Quoting the China National Tourism Administration, the China Daily reports that Chinese tourists spent US$102-billion overseas in 2012 and that it probably reached a much higher figure last year. According to Forbes spending in 2013 will have increased to more than US$120billion, which is far above the approximate US$80-billion spent by German and US travellers respectively. This figure is set to

Travel & Tourism

grow at a record pace as per-capita GDP exceeding US$8,000 is set to treble by 2020. Not only South Africa, but the entire Africa will have to do more to attract a bigger percentage of this action as Singapore, Thailand and the United Arab Emirates still remain the most favoured destinations for Chinese outbound leisure travellers. The picture for India is pretty much the same, with India having emerged as the worldâ&#x20AC;&#x2122;s fastest-growing outbound market, while in absolute numbers of outbound travellers it is second only to China. According to Tourism Australia the current number of outbound Indian travellers of approximately 15 million is expected to rise to about 50 million by 2020. But again, as is the case with China, the destinations most favoured by Indians are Thailand, Singapore and Malaysia, and not Africa. While Brazilians are also increasingly travelling to Africa and

South Africa, they also still favour other destinations like Europe. Completing the BRICS connection is Russia, the second fastest growing outbound travel market in the world and the fifth biggest outbound travel market globally in terms of spend. Last year Russian tourists spent US$43-billion on travel abroad, an increase of 32% in 2012. Since 2005 that figure has more than doubled. Africa has not yet tapped into this market with favourite Russian tourist destinations still being places like Europe, the US and Abu Dhabi. With Russian outbound tourism forecast to grow by 7.5% per year to 2017, and with a large untapped population, excellent marketing opportunities exist in Russia for the African travel and tourism industry. Meanwhile a number of developing trends in global tourism also offer excellent opportunities for the industry in Africa.

TRADE & INVEST AFRICA

TIA

Some key trends from WTM The key finding for Africa in the Global Trends Report 2013 compiled by the World Travel Market (WTM), which hosts the worldâ&#x20AC;&#x2122;s premier travel market conference and expo in London each year, is that child-focused safaris are becoming more popular, driven by demand for multi-generational holidays. The potential of family-friendly safaris in Africa is finally being realised, says the report. The report found that South Africa remains the key destination for family safaris, while Kenya, Malawi, Zambia and Tanzania are also favoured. The report furthermore says strong economic growth, especially in East Africa, is also helping to grow business tourism throughout the region. Rising African incomes and urbanisation are driving domestic travel. WTM also found that source markets are moving away from the traditional focus on the US and Europe to BRICS

Travel & Tourism

TIA

programme bringing sustainable tourism together with World Heritage as a way of promoting conservation and offering assistance. Meanwhile UNESCO has drawn up an Action Plan for Africa for 2012 to 2017 that aims to improve the representation of African heritage sites on the World Heritage List among other things. Other tourism trends

countries and the Middle East. With the rising numbers of BRICS visitors to Africa, Chinese visitors have become the fourth largest group of arrivals in South Africa, with over 132,000 Chinese visitors in 2012, a figure that is expected to grow to 180,000 by 2017. The report warns that in the next few years African hotels and travel retailers will have to expand their offerings rapidly to cater for this fast growing market segment. Trend: Heritage tourism in Africa Heritage Tourism, with both its cultural and natural components, has rapidly become one of the fastest growing, most popular types of tourism in the world today. Out of a total of more than 980 World Heritage Sites in 2013, no fewer than 134 were located in 39 African countries and 4 overseas territories in Africa. World Heritage Sites in Africa have now become

the leading destinations for many tourists to the continent. Apart from the World Heritage Sites, many countries, regions and cities across Africa now also offer a variety of other heritage tours, both in respect of cultural and natural heritage experiences. Examples abound from South Africa’s iconic Table Mountain, Robben Island, its famed Cradle of Humankind, to Malawi’s Chongoni Rock Art Area, to Mauritius’ Aapravasi Ghat, Zimbabwe’s Great Zimbabwe ruins, Mombasa Island’s Fort Jesus, the Lake System in the Great Rift Valley of Kenya, or Ethiopia’s ancient Fasil Ghebbi and many, many more. In view of this the mission of the World Heritage Convention is to encourage countries to nominate cultural and natural heritage sites for possible inclusion on the World Heritage List. Heritage sites receive various forms of assistance from the World Heritage Fund. The African World Heritage Fund (AWHF) has similarly launched a

TRADE & INVEST AFRICA

The meetings, incentives, conferencing and exhibitions (MICE) industry is also one of the fastest growing segments within the global tourism industry, generating millions in revenues. Statistics compiled by the International Congress & Convention Association (ICCA) show that some 400,000 conferences and exhibitions with a total outlay of US$280 billion are held around the world every year. While Europe and the United States still remain the major MICE destinations, Africa has been catching up, but is still lagging behind. Cities in many African countries – with South Africa leading the way – now have world-class conferencing and exhibition facilities supported by good travel and hospitality infrastructure such as airports and hotels. A quick online search of hotels, lodges, resorts and game ranches across the African continent also reveals that most offer good conferencing facilities. Event organisers have also been quick to join forces with travel and tour operators to combine conferences with safaris or visits to national parks, game reserves or other popular African tourism destinations. Exhibitions (excluding conferences) supporting business tourism to Africa is another matter altogether though. According to the March 2014 Global Exhibition Industry Statistics report of the UFI Global Association of the Exhibition Industry, 15 countries in North America, Europe and including China, Brazil and Turkey account for 80% of the global indoor exhibition space, with Europe leading the way. Approximately 31,000 exhibitions were held globally in 2012 where 4.4 million exhibiting companies

Travel & Tourism

welcomed 260 million visitors. In terms of net space rented per continent per billion US$ of GDP (in comparison to the world average) Europe and North America accounted for 35%, while Africa accounted for -72%. Clearly there are significant opportunities for the development of a MICE tourism industry in Africa. However, Africa, and in particular Southern and East Africa, are already increasingly popular destinations for business travellers who spend on average three times more than their leisure counterparts. At the same time they also spend in the leisure travel market through tours and other activities linked to their business visits, or through return trips. According to the South African government South Africa alone currently hosts more than 100 international conferences a year. “With new events supported by targeted marketing efforts, the number

of conferences is expected to increase. Business tourism is therefore one of the key tourism segments which have the potential for growth,” it says. “This market is expected to grow by 2 to 3% more than the country’s overall growth, potentially leading to further growth of 5% per year”. Other fast growing tourism sectors in Africa are sports tourism and adventure tourism. South Africa has long been a favourite destination for lovers of golf from all over the world, a trend that is picking up in other African countries too, with a number of top class golf competitions now being offered. And the Fifa Soccer World Cup of 2010 put South Africa and its neighbours firmly on the global sports tourism map. Major football events such as the Confederation of African Football’s Confederation Cup competition lure visitors from all over while also contributing to intra-African travel. And South Africa’s hosting of major international rugby and cricket competitions regularly bring visitors from as far afield as New Zealand, Argentina, Australia, Britain, India, Pakistan and more to South Africa. Many of these sports tourists combine their visits with safaris in South Africa or other nearby African countries. Some serious challenges But all is not a bed of roses…..there are some serious problems and challenges too affecting tourism in Africa. Apart from the known issues in a number of countries such as lack of infrastructure, health issues, and political tensions – Zimbabwe and the Central African Republic being prime examples - there are other serious problems too in some countries. For instance, tourism in Egypt has been badly affected by the political and security turmoil in that country, and the bombing of a coach carrying Korean holidaymakers in the Sinai peninsula in February dealt Egyptian tourism a further devastating hammer blow. Nonetheless, according to Egypt’s Tourism Minister, Hisham Zaazou, Egyptian authorities

TRADE & INVEST AFRICA

TIA

have put in place an “aggressive” plan of action to try and revive Egypt’s enormous tourism potential and return it to the popular tourist destination it once was. It may be bearing fruit already as despite the upheavals, some 2.5 million Russians alone visited the country last year. In Tunisia, which suffered a similar fate before, the authorities have managed to return stability to the country and it is expecting a record number of 7 million tourists to visit the country this year. Child prostitution also threatens to give a number of countries a bad name. A recent report produced by the international organisation called End Child Prostitution, Child Pornography and Trafficking of Children, and which was commissioned by the EU found, for instance, that South Africa has about 40,000 child prostitutes, while many more children were at “critical risk” from sexual tourism predators. This is a serious problem in countries across the continent. Recent acts of terrorism too have taken their toll on tourism in a number of African destinations, most notably Uganda, Kenya and Mombasa, northern Nigeria, Zanzibar and Somalia. The threat of terrorist attacks by Somalia’s al-Qaedalinked al-Shabaab has, for instance, prompted Uganda to recently establish a specialist tourism police force as part of the country’s counter-terrorism measures. The force will physically protect tourists as much as it will protect an industry estimated to be worth U$662-million a year. And wars in Mali, Central African Republic, Sudan and the Democratic Republic of Congo have also kept tourists away. Nonetheless, problems and challenges aside, the future of tourism in all its forms in Africa is bright against the background of an equally impressive prognosis for tourism on a global scale. And with it comes an abundance of opportunities for entrepreneurs big and small that in turn will generate benefits for entire communities, countries and regions across the continent. By Stef Terblanche

Travel & Tourism

African Travel & Tourism Business Organisations Africa Travel Association (ATA) Tel: +1 (0)212 447 1357; Fax: +1 (0)212 213 4890; USA Toll Free: 1 888 439 0478; Web: www.africatravelassociation.org; Email: info@ africatravelassociation.org African Travel & Tourism Association (ATTA) Tel: +44 20 7937 4408; Fax: +44 20 7937 4380; Email: info@atta.trave. African Fair Tourism & Trade Organisation (AFFTO) Tel: +49 (0)174 240 2615; Email: n.tolhurst@ aftto.org; Web: http://www.aftto.org/. Association of Southern African Travel Agents (ASATA) Tel: +27 (0)11 293-0560/1; Email: general@ asata.co.za; Web: http://www.asata.co.za/

Southern Africa Tourism Services Association (SATSA) Tel: +27 (0) 86 12 SATSA; Tel: +27 (0) 86 12 72872; Tel: +27 (11) 886 9996; Fax: +27 (0) 11 886 7557 Web: http://www.satsa.com/pages/ default.asp Southern African Association for the Conference Industry (SAACI) Tel : +27 (0)11 465 0334; Fax: +27 (0)86 218 6817 Email: info@saaci.co.za; Web: http:// www.saaci.co.za/. Sustainable Tourism Certification Alliance Africa (STCAA) Email: secretariat@sustainabletourismalliance. co.za; Tel: +27 (0)12 342 2945/3642; Fax: +27 (0)12 342 2946 Tanzania Association of Tour Operators (TATO) Tel: +255 27 250 4188; Fax: +255 27 250 6430; Email: info@tatotz.org; Web: http://www. tatotz.org/

Association for the Promotion of Tourism to Africa (APTA) Tel: +1 (303)679-3183; Fax: +1 (303)731-0621; Email: admin@apta.biz. Web: https://apta.biz/

Tourism Business Council of South Africa (TBCSA) Tel: +27(0)12 654 7525; Fax: +27(0)12 654 7394. Email: tourism@tbcsa.travel; Web: www. tbcsa.travel

Kenya Association of Hotelkeepers & Caterers (KAHC) Tel: +254 (0)41-2228208 (0)20 600 2538 / 600 4419 / (0)70 848 3334 Email: info@kahc.co.ke; Web: http://www.kahc.co.ke/

Tourism Enterprise Partnership (TEP) Tel: +27 (0)11 880 3790; Fax: +27 (0)11 880 2740; Email: info@tep.co.za; Web: http://www. tep.co.za/

Fair Trade in Tourism (FTT) Tel: +27 (0)12 342 2945/3642; Fax: +27 (0)12 342 2946; Email: info@fairtradetourism.org.za; Web: http://www.fairtradetourism.org.za/ Federated Hospitality Association of Southern Africa (FEDHASA) Tel: +27 (0)861 333 628; Fax: +27 (0)11 781 2549; Web: www.fedhasa.co.za; Email: Cheryl Stevens, General Manager cheryl@fedhasa.co.za. Medical Tourism Association of South Africa Tel: +27 (0)11 463 3154; Fax; +27 (0)11 706 5582 Web: http://www. medicaltourismassociation.org.za/ Regional Tourism Organisation of Southern Africa (RETOSA) Email: Palesa Tsiu palesa@retosa.co.za or Francis Mfune francis@retosa.co.za. South African Tourism (SATOUR) Tel: + 27 (0)11 895 3000; Fax: +27 (0)11 895 3001; Email: travel@southafrica.net Web: http://www.southafrica.net/za/en/landing/ visitor-home

Zanzibar Association of Tourism Investors (ZATI) Tel: +255 (0) 772 823234; Email: info@zati.org; Web: http://www.zati.org/

Country Tourism Boards Southern & Eastern Africa Angola Ministry of Hotels and Tourism Tel: +244 (2) 310 899; Web: www.angola.org. Botswana Tourism Tel: +267 391-3111/310-5601; Email board@ botswanatourism.co.bw; Web: http://www. botswanatourism.co.bw/ Comoros Tourism Office Tel: +269 764 4254; Email: dgtourisme@ comorestelecom.km. Lesotho Tourism Development Corporation Tel: +266 22312238; Fax: +266 22310189; Email: ltdc@ltdc.org.ls Web: http://www.ltdc. org.ls/

TIA

Madagascar National Tourism Board Tel: +261 20 22 661 15; Fax: +261 20 22 660 98; Email ontm@moov.mg; Web www. madagascar-tourisme.com. Malawi Tourism Association Tel: +265 (0)1 770 010; Tel/Fax: +265 (0)1 770 131; Cell: +265 (0) 888 865 250; Email: mta@malawi.net; Web: www.malawi-tourismassociation.org.mw. Mauritius Tourism Promotion Authority Tel: +230 210 1545; Fax: +230 212 5142; Web: www.tourism-mauritius.mu or www. tourisme-ilemaurice.mu. Mozambique Tourism Tel: +258 21 307 323 / 320 or +27 (0)13 750 1733 Email: mtb@moztour.com or kmomade@inatur.org.mz; Web: www.futur. org.mz. Namibia Tourism Board Tel +264 61 290 6000; Fax: +264 61 254 848; Email info@namibiatourism.com.na RĂŠunion Island Tourism Board Tel: +262 418 300; Email actu@reunion.fr. Seychelles Tourism Board Tel: +248 4 67 13 00; Fax: +248 4 62 06 20 / 4 62 06 40; Email: info@seychelles.travel; Web: www.seychelles.travel. South African Tourism Tel: + 27 (0)11 895 3000; Fax: +27 (0)11 895 3001; Email: travel@southafrica.net Web: http://www.southafrica.net/za/en/landing/ visitor-home Swaziland Tourism Information Office Tel; +268 404 2531 / 409 0112; Fax: +268 404 2531 Tanzania Tourist Board Tel: +255 (0)22 2111244/5; Email: info@ tanzaniatourism.go.tz; Web: http://www. tanzaniatouristboard.com/ Zambia Tourism Tel: +260 211 229087/ 90; Fax: +260 211 225174; Email: ztb@zambiatourism.org.zm; Web: http://www.zambiatourism.com/ Zimbabwe Tourism Authority Tel: +263 (0)4 752570; Web: www. zimbabwetourism.co.zw; Email: info@ztazim. co.zww. Uganda Tourist Board Tel: +256 (0)414 342196/7; Fax +256 (0)414 342188; Email utb@tourismuganda.info or utb@starcom.co.ug; Web: www.visituganda. com.

Walvis Bay

Namibiaâ&#x20AC;&#x2122;s industrial and logistical hub of choice for integrated investment opportunities.

Walvis Bay, Your Oasis of Opportunities.

Public Relations & Customer Service Division Tel: +264 64 201 3111 Fax: +264 64 205 590 Email: pr@walvisbaycc.org.na

INSP I PL AC INSPIRATIONAL PLACES

TRADE & INVEST AFRICA

INSPIRATIONAL PLACES

TIA

Ngwenya Glass Swaziland Ngwenya Glass, situated in Swaziland, employs over 60 people under the guidance of husband and wife team, Chas & Cathy Prettejohn. Since its rebirth, Ngwenya Glass has been more than an inspiring success story. It is an environmentalist’s dream! The products, which include a wide range of tableware, drinking glasses, vases, jugs and ornamental African animals are all handmade from 100 % recycled glass. Ngwenya Glass has been proudly recycling 100 % recycled glass since 1987. They have not simply jumped onto a new “green bandwagon”; it has always been a way of life. Ngwenya Glass uses waste newspaper as a very effective packaging material and does not use extra packaging, such as boxes and bags, in an effort to decrease its carbon footprint. At Ngwenya Glass grey water is also re-used and there are rainwater catchments for factory use. Ngwenya Glass has also started using purified old engine oil to fuel their furnaces. Many people do not realise that it is possible to contaminate one million litres of water with one litre of used oil. Ngwenya Glass has embarked on an indigenous tree-planting programme - 100 trees are currently being planted, with an ongoing programme to continue regular planting in the factory area. It also organises environmental clean-up days in its area and encourages schools to pick up litter in exchange for donations of building materials or sports kit and more. Ngwenya believes that by educating our children about environmental issues, we will have a chance of saving our planet. Ngwenya Glass has for the past twenty years paid a percentage of its worldwide sales to the Mkhaya Game Reserve (refuge for endangered species in the Lowveld of Swaziland). Since it established the Ngwenya Rhino and Elephant Wildlife Fund in 1989 many generous donations have been received from conservationists and others worldwide. Ngwenya Glass also supports numerous orphanages and charities in Swaziland and South Africa and have an active HIV/AIDS policy and program. It also pays a monthly salary to a counsellor who counsels abused children, women and HIV/Aids patients.

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

TRADE & INVEST AFRICA

INSPIRATIONAL PLACES

Tatanca Safaris & Tours

â&#x20AC;Ś

offering diversity in Tanzaniaâ&#x20AC;&#x2122;s Southern Highlands

TIA

Tatanca Safaris & Tours is based in the Southern Highlands of Tanzania. Our company services are spread from Southern Tanzania to the eastern coast, allowing our guests to experience diversity in landscape, flora and fauna across the vast and beautiful land of Tanzania. Unlike many Tanzanian safaris our company runs safaris in the southern half of the country, where you are most likely to see huge herds of animals rather than a congestion of vehicles. As tour operators we offer a wide range of services and programs such as wildlife safaris, trekking and cultural tourism. We provide tailor-made quotations for our customised activities in the Selous Game Reserve, which is one of the largest fauna reserves of the world. Selous was designated a UNESCO World Heritage Site in 1982 due to the diversity of its wildlife and undisturbed nature. At Udzugnwa Mountain Park there are more than 400 bird species, 2,500 plant species (25% of which are endemic) and 6 primate species. It has the second largest biodiversity of any national park in Africa. Ruaha National park is the largest national park in Tanzania and is also known for its concentration of greater and lesser kudu, its roan and sable antelope and its rich bird life. More than 400 species of birds have been recorded here. Mikumi National park forms the northern border of the Selous Game Reserve, and is one of the most accessible of the Tanzanian national parks. Each of these parks has its own uniqueness and beauty. We offer all kinds of services, depending on the budget of our clients, such as luxurious safaris, middle range and budget safaris with accommodation in lodges, hotels, tented camps and park facilities. With us you can also experience unique night-time game drives in the wild night when the predators are hunting their prey in Ruaha and Mikumi National Parks. For more information & bookings: Internet: http://www.tatancasafaris.co.tz/ E-mail: info@tatancasafaris.co.tz or marketing@tatancasafaris.co.tz Tel: +255 78 609 1313 or +255 76 733 8335

TRADE & INVEST AFRICA

INSPIRATIONAL PLACES

TIA

Experience Malawian hospitality at the Crossroads Hotel The Crossroads Hotel offers guests an unforgettable stay in Lilongwe, the capital of Malawi. The hotel is located adjacent to the Crossroads Shopping complex on the Mchinji roundabout, within minutes of the central business district, and only 25 minutes from Kamuzu International Airport. And it is also only 124km northeast of Lake Malawi. Each of the 101 rooms and suites feature a carefully chosen selection of fine furniture, luxurious fabrics and attention to detail that create an immediate sense of comfort. Elegantly styled and generously appointed, each guest room offers a warm and inviting space for guestsâ&#x20AC;&#x2122; relaxation and enjoyment. To further enjoy your stay, there is access to a fully equipped gym and spa, the only one in the city to have a Jacuzzi, steam room and sauna all in one facility. Crossroads Hotelâ&#x20AC;&#x2122;s unique conference and banqueting venues cater for 10 to 1,800 delegates for a conference and up to 800 for a seated banquet. Every event is distinguished by exemplary cuisine. Expert support and personalised service attends to the finest detail, from meticulous planning to successful conclusion. The team and facilities ensure an unforgettable experience. At the The Copper Pot elegance is not just a phrase used to refer to class and style, but attains literal meaning, while our menu is filled with mouth-watering dishes. Great restaurants are a blend of sophisticated cooking, imaginative ideas and respect for ingredients. The Copper Pot is the ideal setting for time intended to be spent with family, friends or colleagues celebrating life, birthdays, business deals or enjoying a romantic night out. There is something extraordinary for every palate at The Copper Pot restaurant. For more information & bookings: Internet: http://www.crossroadshotel.net/ E-mail: gm@crossroadshotel.net or reservations@crossroadshotel.net Tel: +265 1 750 333 / +265 1 750 444 Fax: +265 1 750 336

TRADE & INVEST AFRICA

INSPIRATIONAL PLACES

Air Botswana

a key partner in mining and tourism

Air Botswana takes immense pride in its responsibility as Botswana’s national carrier, positively impacting the country’s key economic sectors of mining and tourism. Attuned to the needs of both these important sectors, Air Botswana has convenient connections linking Africa’s business and leisure centres. Domestically, the airline provides daily connections between Gaborone and Francistown, Botswana’s second city. There are also connections between Gaborone and the country’s two main tourism centres of Maun and Kasane. Maun is considered the gateway to the world famous Okavango, the world’s largest inland Delta. North East of the Okavango is Kasane, gateway to Chobe National Park, one of the most prolific wildlife areas in Africa. Regional destinations connect Gaborone with Africa’s economic and industrial hub Johannesburg, as well as with other major centres such as Lusaka, Harare and Cape Town. There are also regional connections from Maun, Francistown and Kasane to destinations in South Africa. All these destinations are operated by a fleet of aircraft which include ATR 72-500, ATR 42-500, BAE 146 jet and recently acquired AVRO-RJ 85 jets. Air Botswana is a member in good standing of the International Air Transport Association (IATA), an indication of the airline’s commitment to the highest operational and safety standards. The airline has its sights set firmly on growth and expansion as the country’s aviation capacity and industry continue to grow. Buoyed also by a steady growth in the country’s economy, Air Botswana has aspirations to continue to diligently play a role in the provision of world class air transport services to the people and economy of Botswana. For more information & bookings: Internet: www.airbotswana.co.bw Tel: +267 368 8400 / +267 395 2812

TIA

Mack Air

... flying you across breathtakingly beautiful wilderness

Mack Air (Pty) Ltd is a non-scheduled air charter company based in Northern Botswana. Due to the shear geographical isolation of this part of Southern Africa, most of the lodges and camps within the region are only accessible by air. Consequently non-scheduled flight operations have become an integral part and cornerstone of the travel industry within Botswana. The town of Maun serves as Mack Air’s hub. It is considered to be the gateway to the magnificent Okavango Delta and Moremi Game Reserve. Maun is therefore ideally situated for Mack Air to be able to offer a wide spectrum of routes to exciting destinations, from in and around the Okavango Delta, to Kasane, Livingstone, Victoria Falls, Windhoek and Johannesburg. Over the last 20 years the unsurpassed support of its clientele has allowed Mack Air to grow into the largest independent air charter company in Botswana. It currently operates a fleet of 20 aircraft, ranging from four seat Cessna 206 aircraft used for shorter transfers, to the larger 10-seat Cessna Grand Caravan turbine powered aircraft for longer routes. Stringent aircraft maintenance procedures and crew training requirements have, and continue to contribute towards the company’s impeccable safety record, ensuring that clients are guaranteed the very best in terms of safety and professionalism when boarding one of these aircraft. Mack Air prides itself in providing its clients with the best possible service characterised by reliability, efficiency, consistency and safety. From the moment that Mack Air’s clients board one of its aircraft they are sure to experience an incredibly comfortable, enjoyable and unforgettable flight as they are transferred across arguably one of the most beautifully untouched parts of the globe! For more information & bookings: Internet: www.mackair.co.bw E-mail: reservations@mackair.co.bw Tel: +267 686 0675 • Fax: +267 6860036

TRADE & INVEST AFRICA

Country overviews

In this section TIA presents comprehensive overviews for a selection of African countries. This is a handy one-stop reference for anyone considering doing business with or investing in any of these countries. For each country we provide a general overview of the country’s • Location and geography • Social and demographic facts • History and politics • Key industries • Economy and business • Safety and security. This is followed by the most up to date data in sections under the headings General, Political, Economy and Contacts. In this issue the following countries are featured: • Angola • Botswana • Ghana • Kenya • Lesotho • Malawi • Mozambique • Namibia • Nigeria • South Africa • Zambia • Zimbabwe

Country overview

TIA

TIA Country Overviews

Country overview

TIA

Angola Official Name: Republic of Angola

ngola 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 Cuba and the Soviet Union, seized control of most of the country. A South African military expedition invaded the country, joined up with 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.

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.

TRADE & INVEST AFRICA

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.

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.)

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.) 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); Banco Angolano de Investimentos; Banco Espírito Santo Angola ; Bank of Commerce and Industry; Development Bank of Angola (state-owned); Standard Bank.

Major Private Companies:

JFPI Corporation; 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; Secil Marítima; Grupo Medianova; Angola LNG; Transafrik International; Aeronáutica; Movicel; Unitel S.A.

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.

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

Angola Stock Exchange

Planned to open in 2016

Political

Contacts

TRADE & INVEST AFRICA

Sources: Country’s Government, CIA World Factbook, US State Department Country Fact Sheets, International Monetary Fund, World Bank

Economy

Country overview

TIA

Botswana Official Name: Republic of Botswana

his 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 9% per year from 1967 to 2006, when the global economic recession

began slowing growth. With a GDP estimate of US$30.09billion 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

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:

12% VAT payable on goods and services.

TRADE & INVEST AFRICA

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.

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)

Political

Gross Domestic Product (Purchasing Power Parity):

Total: US$34 billion (2013 est.) Per Capita: US$16,400 (2013 est.)

GDP Growth:

3.9% (2013 est.)

Budget:

Revenues: US$5.04 billion Expenditures: US$4.952 billion (2013 est.)

Surplus / Deficit:

0.6% of GDP (2013 est.)

Public Debt:

17.9% of GDP (2013 est.)

Current Account:

US$1.375 billion (2013 est.)

Exports / Imports:

Exports: US$7.569 billion (2013 est.) Imports: US$7.389 billion (2013 est.)

Foreign Exchange & Gold Reserves:

US$7.933 billion (31 December 2013 est.)

Inflation:

7.5% (2012 est.)

Unemployment Rate:

17.8% (2009 est.)

Poverty:

30.3% of population below international poverty line of US$1.25 a day (2003 est.)

Sector % of GDP:

Agriculture: 1.9% Industry: 35.7% Services: 62.4% (2013 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); BancABC; 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; Botswana Insurance Holdings; Cresta Marakanelo; Chobe Holdings Ltd; Discovery Metals Ltd; Engen Botswana Ltd; FSG Limited; First National Bank Botswana Ltd; Furnmart; G4S Botswana; Imara Holdings; Letshego; New African Properties; Olympia Capital Corporation; Prime Time Property Holdings; Lucara Diamond Corporation; Sechaba Breweries Holdings; Sefelana; Standard Chartered; Turnstar;Wilderness Holdings.

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).

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

Contacts

TRADE & INVEST AFRICA

Sources: Country’s Government, CIA World Factbook, US State Department Country Fact Sheets, International Monetary Fund, World Bank

Economy

Country overview

TIA

Ghana Official Name: Republic of Ghana

hana 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 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.

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 foreign-exchange (forex) bureaus in all major towns; major credit cards accepted widely.

Taxes:

VAT of 15% payable on goods and services.

Entry Requirements:

Visas required by all except ECOWAS nationals; nationals of most countries can receive a tourist visa on arrival at the Kotaka Airport; passports should be valid for at least six months.

Political

System:

Constitutional democracy

Independence:

1957

Government:

President is head of state and government – he appoints Council of Ministers subject to approval by Parliament.

TRADE & INVEST AFRICA

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:

25,758,108 (July 2014 est.)

Gross Domestic Product:

$90.41 billion (2013 est.)

GDP Growth:

7.9% (2013 est.)

Budget:

Revenues: US$8.5 billion; Expenditures: US$10.08 billion (2011 est.).

Surplus/Deficit:

-4.2% of GDP (2011 est.)

Public Debt:

53.1% of GDP (2013 est.)

Current Account:

-US$3.675 billion (2011 est.)

Exports / Imports:

Exports: US$13.37 billion (2013 est.); Imports: US$18.49 billion (2013 est.)

Sector % of GDP:

Agriculture: 21.5% • Industry: 28.7% • Services: 49.8% (2013 est.)

Foreign Exchange & Gold Reserves:

US$6.016 billion (31 December 2013 est.)

Inflation:

11% (2013 est.)

Unemployment:

11% (2000 est.)

Population below poverty line:

28.5% (2007 est.)

Economic Sectors:

Services; manufacturing; tourism; 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); HFC Bank; International Commercial Bank; Société Générale - Social Security Bank; Stanbic Bank; Standard Chartered Bank; Kasema Rural Bank; Prudential Bank; Zenith 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; Crocodile Machete; Enterprise Insurance; Guinness Ghana Breweries; HFC Bank; Mechanical Lloyd; Pheonix Life Insurance Company; Pioneer Kitchen Ware; Polytank Ghana; Sam Woode Ltd; Starwin Products; Transol Solutions Ghana; Volta Aluminium Company; CAL Bank; Ghana Oil Company; Ghana Commercial Bank; Interplast Limited; Chorkor Cable and Conductor; Activa Insurance Company; Wienco Ghana; Mechanical Lloyd Company; Ramelle International; Wapic Insurance; Ivory Financial Services; M&J Pharmaceuticals; Ghana Homes Loans Company; British American Tobacco; Ghana Rubber Estates; Total Petroleum; MacDan Shipping Company; Goldfields Ghana; Auto Plaza Limited; and more.

Major State-Owned Enterprises:

Ghana Broadcasting Corporation; Ghana News Agency; Ghana National Petroleum Corporation; Ghana Post; Ghana Railway Corporation.

Contacts 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:

Tel: +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; +233-30-2669935; +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

Economy

Country overview

TIA

Kenya Official Name: Republic of Kenya

enya, 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. 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.). 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 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. But the country has also become the target of al-Qaeda linked al-Shabaab terrorists as reprisal for the presence of Kenyan troops in Somalia. The most recent major terrorist incident occurred at a shopping mall in Nairobi in 2013 in which at least 67 people died. 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. 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.

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.

System:

Presidential representative democratic republic, whereby the President is both the head of state and head of government; constitutional democracy; unicameral parliament.

Independence:

1963

Government:

President Mwai Kibaki directly elected for 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.)

Legislature:

Unicameral National Assembly also called Parliament. (New constitution introduces bicameral parliament.)

Political

TRADE & INVEST AFRICA

Legal System:

Independent judiciary based on mainly on British and in some lower courts on Muslim law; Chief Justice appointed by President.

Population:

45,010,056 (July 2013 est.)

Gross Domestic Product:

US$79.9 billion (2013 est.)

GDP Real Growth Rate:

5.1% (2013 est.)

GDP per capita:

US$1,800 (2013 est.)

Sector % of GDP:

Agriculture: 29.3% • Industry: 17.4% • Services: 53.3% (2013 est.)

Budget:

Revenues: US$7.866 billion • Expenditures: US$9.742 billion (2013 est.)

Surplus/Deficit:

-4.1% of GDP (2013 est.)

Public Debt:

53.5% of GDP (2013 est.)

Current Account:

-US$4.495 billion (2013 est.)

Exports / Imports:

Exports US$6.58 billion (2013 est.) • Imports US$15.86 billion (2013 est.)

Foreign Exchange & Gold Reserves:

US$5.541 billion (31 December 2013 est.)

Inflation Rate:

5.8% (2013 est.)

Unemployment:

40% (2008 est.)

Poverty:

43.4% (2012 est.) of population below poverty line; World Bank rates it below Middle Income level.

Economic Sectors:

Agriculture; tourism; production; service sector; mining; communications; transport; energy.

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:

43 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; East African Canvas; Digital City; Lean Energy Solutions; Plenser; Allwin Agencies; Propack Kenya; Vivek Investments; Powerpoint Systems; Coninx Industries; Synermedia Pharmaceuticals; Coast Industrials & Safety Supplies; Isolutions Associates; Wotech; Avtech Systems; Kenya Bus Services; Tissue Kenya; Alexander Forbes; Charlestone Travel; Elite Tools; Eurocon Tiles; R & R Plastics; Classic Mouldings; Novel Technologies; Vintage Africa; Panesars; Pinnacle Travel; Tyremasters; Cacon Chemicals; Cibe Movers; 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, +254-20-72 19 48

Source: Government, CIA World Factbook, International Monetary Fund, World Bank, Wikipedia

Economy

Country overview

TIA

Lesotho Official Name: Kingdom of Lesotho

he 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 of 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 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.

General

100

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 14-day period. Lesotho passport and visa requirements are liable to change at short notice; advised to check entry requirements with embassy prior to travel.

TRADE & INVEST AFRICA

Country overview

TIA

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:

1,942,008 (2013 est.)

Gross Domestic Product (Purchasing Power Parity):

US$4.265 billion (2013 est.)

GDP Per Capita:

US$2,200 (2013 est.)

GDP Growth:

4.1% (2013 est.)

Budget:

Revenues: US$1.462 billion Expenditures: US$1.483 billion

Surplus / Deficit:

-0.9% of GDP (2013 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$857.9 million (31 December 2013 est.)

Inflation:

5% (2013 est.)

Unemployment:

25% (2008 est.)

Poverty:

49% of population below international poverty line of US$1.25 a day (1999 est.)

Sector % of GDP:

Agriculture: 7.4% Industry: 34.5% Services: 58.2% (2013 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 Bank Lesotho; Nedbank Lesotho Ltd; First National Bank of Lesotho Ltd; Agric Bank.

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; KM Global Consulting; Pelane Holdings; Solarsoft; Lesotho Sandstone; Thaba Tours; Afrox; Alliance Insurance; Allied Chemists & Pharmaceuticals; Avos; Berea Steel Industries; Cargo Carriers.

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

TRADE & INVEST AFRICA

Sources: Countryâ&#x20AC;&#x2122;s Government, CIA World Factbook, US State Department Country Fact Sheets, International Monetary Fund, World Bank

Economy

101

Country overview

TIA

Malawi Official Name: Republic of Malawi

hough 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. President Banda introduced political and economic reforms, winning back the trust of the World Bank

and investors. However, her policies and changes have met with some opposition from members of her predecessor’s government. 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 2000 this has decreased. There have been, and still are, considerable 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. But there have been significant improvements too since President Banda assumed power and she has cut down on government spending. However, in January 2013, thousands of Malawians protested in Blantyre against rising inflation after Banda defended the devaluation of the kwacha and refused to reverse it. She was supported by IMF chief Christine Lagarde. 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

102

System:

Multiparty democracy

Independence:

6 July 1964 (from the UK)

TRADE & INVEST AFRICA

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:

17,377,468 (2013 est.)

Gross Domestic Product:

US$15.02 billion (2013 est.)

GDP Growth:

5% (2013 est.)

GDP per Sector:

Agriculture: 29.4% Industry: 18.9% Services: 51.7% (2013 est.)

Budget:

Revenues: US$1.347 billion Expenditures: US$1.4 billion (2013 est.)

Surplus / Deficit:

-1.4% of GDP (2013 est.)

Public Debt:

50.8% of GDP (2013 est.)

Exports / Imports:

Exports: US$1.427 billion (2013 est.) Imports: US$2.42 billion (2013 est.)

Foreign Exchange & Gold Reserves:

US$364.2 million (31 December 2013 est.)

Inflation:

26.9% (2013 est.)

Poverty:

53% of population below international poverty line of US$1.25 a day (2004 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; Malawi properties Investment Co; NICO Holdings; National Investment Trust; Press Corporation Ltd; Packaging Industries Malawi Ltd; Sunbird Tourism; Old Mutual; Real Insurance Co. ; Telecom Networks; Kentam Products;

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; Malawi Posts Corp;

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

http://www.cosoma.org

African Regional Intellectual Property Organization:

http://www.aripo.org

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

Contacts

TRADE & INVEST AFRICA

Sources: Country’s Government, CIA World Factbook, US State Department Country Fact Sheets, International Monetary Fund, World Bank

Economy

103

Country overview

TIA

Mozambique Official Name: Republic of Mozambique

his 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. 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. 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 later. FRELIMO

did not allow any elections and declared the country a Marxist socialist state. This led to a civil war between the Soviet Unionbacked FRELIMO and the anti-communist, South Africanbacked 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 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. 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.

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. Cellphone coverage is provided by MCel, Vodacom and Movitel - penetration is around 36%. ADSL Internet services for home and business customers as well as 3G offered by cellphone companies. 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

104

TRADE & INVEST AFRICA

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:

24,692,144 (2014 est.)

Gross Domestic Product:

US$28.15 billion (2013 est.)

GDP Per Capita:

US$1,200 (2013 est.)

GDP Per Sector:

Agriculture: 28.7% • Industry: 24.9% • Services: 46.4% (2013 est.)

GDP Growth Rate:

7% (2013 est.)

Budget:

Revenues: US$4.808 billion • Expenditures: US$6.101 billion (2013 est.)

Public Debt:

46.7% of GDP (2013 est.)

Current Account:

-US$5.884 billion (2013 est.)

Exports / Imports:

Exports: US$3.92 billion (2013 est.) • Imports: US$7.068 billion (2013 est.)

Foreign Exchange & Gold Reserves:

US$2.99 billion (31 December 2013 est.)

Inflation:

4.4% (2013 est.)

Unemployment:

Approx. 21% (current government estimate).

Poverty:

52% (2009 est.) live below poverty line

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 Bank; Barclays; International Commercial; Mauritius Commercial; BIM-Banco Internacional de Mocambique; First National Bank; BCIBanco Comercial e de Investimentos,.

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 (mCel); 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; Southern Sun Hotels; Petromoc; Motraco; Cervejas de Mocambique; BIM-Banco Internacional de Mocambique; EDM Electricidade de Mocambique; Mozambique Leaf Tobacco; CMC Africa Austral; LAM Linhas Aereas de Mocambique; CFM; Cimentos de Mocambique; Petrogal Moçambique; Coca-Cola Sabco; Intelec Holdings; Total Moçambique; Manica Freight Services; Olam Moçambique; Mota - Engil Eng. Const. SA; Teixeira Duarte Engenharia e Construções Moçambique; Toyota de Moçambique; British American Tobacco Mozambique; and more.

Major State-Owned Enterprises:

Most state-owned enterprises have been privatised by the Technical Unit for Enterprise Restructuring.

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.

Contacts

TRADE & INVEST AFRICA

Sources: Country’s Government, CIA World Factbook, World Bank, International Monetary Fund, and KPMG.

Economy

105

Country overview

TIA

Namibia Official Name: Republic of Namibia

amibia 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 about 2.2-million people (2013 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 (mixedrace) 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.

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 accounts for 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 gemquality 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), the Southern African Customs Union (SACU), the oldest customs union in the world, and of the African Union (AU). The country is party to a number of international environmental protection and climate change-related treaties and agreements. 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 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.

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.

Political

106

TRADE & INVEST AFRICA

Legal System:

Mixed legal system, non-codified civil law based on Roman-Dutch law and customary law introduced from South Africa.

Population:

2,198,406 (July 2013 est.)

Gross Domestic Product:

US$17.79 billion (2013 est.)

GDP Per Capita:

US$7,363 (2011 est.)

GDP Growth:

4.4% (2013 est.)

Sector % of GDP:

Agriculture: 7.7% • Industry: 29.6% • Services: 62.6% (2013 est.)

Budget:

Revenues: US$4.325 billion • Expenditures: US$5.126 billion (2013 est.)

Surplus/Deficit:

-6.5% of GDP (2013 est.)

Public Debt:

27.2% of GDP (2013 est.)

Current Account:

-US$658.4 million (2013 est.)

Exports / Imports:

Exports US$5.124 billion (2013 est.) • Imports US$7.084 billion (2013 est.)

Foreign Exchange & Gold Reserves:

US$2.267 billion (31 December 2013 est.)

Inflation:

5.5% (2013 est.)

Unemployment:

51.2% (2008 est.)

Poverty:

55.8% 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.)

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:

Bank of Namibia (central bank); Bank Windhoek; First National Bank; Nedbank; Standard Bank; Fides Bank Namibia; Nedcor Investment Bank; Oceana; Old Mutual;

Stock Exchange:

Namibian Stock Exchange, Windhoek.

Major Private Companies:

Rossing Uranium; Namdeb Holdings; 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; Rosh Pinah Zinc; Okorusu Fluorspar; Langer Heinrich Uranium; AREVA Resources Namibia; Swakop Uranium; B2Gold Namibia; Valencia Uranium; Salt & Chemicals; Samicor Diamond Mining; Teck Namibia; Bafex Exploration; Rio Tinto Mining & Exploration; SWA Uranium Mines; Marenica Energy; Kunene Resource Holdings; Namibian Marine Phosphate; Namibian Copper Limited; Barloworld Equipment; Manica Group Namibia; Protea Chemicals Namibia; SWACO Group; Basil Read Mining; Atlas Copco; Kraatz Marine; Shali Group Holdings; Petrobras Oil & Gas; Eco (Atlantic) Oil & Gas; Namib Mills; Leo Namibia; MTC Namibia; O&L; BZ Construction; Alu-Max Aluminium; Etale Fishing; Alexander Forbes; Anglo American; Afrox; Barloworld; CIC Holdings; Ellerine; Investec; Kolosus; Metje & Ziegler; Namibian Fishing; Metropolitan Life; Namibian Harvest; Namibian Sea Products; Standard Bank Group; Truworths; Wooltru; Trans Hex.

Major State-Owned Enterprises:

NamPower; NamPost; NamWater; Air Namibia; National Petroleum Corporation; Offshore Development Company; Development Bank of Namibia; Telecom Namibia; Namibian Broadcasting Corporation; Namibia Ports Authority; Namibia Wildlife Resorts; Namwater; Transnamib Holdings. Contacts

Minister of Trade & Industry:

Hon. Calle. Schlettwein - 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 Home Affairs & Immigration:

Tel:

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

+264 61 292 2111 Fax: +264 61 292 2185

Source: Government, CIA World Factbook, International Monetary Fund, World Bank

Economy

Country overview

TIA

Nigeria Official Name: Federal Republic of Nigeria

igeria 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 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 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. 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 of its 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. General

Location:

West Africa, bordering the Gulf of Guinea, between Benin and Cameroon.

Capital:

Abuja (Largest city is Lagos).

Languages:

English (official); various other national and regional languages.

Time Zone:

West African Time (UTC +1hr)

Main Airport:

Nnamdi Azikiwe International Airport, Abuja; Murtala Muhammed International Airport, Lagos.

International Dialling Code:

+234

Communications:

Fixed line network in need of expansion and modernisation; addition of a second fixed-line provider in 2002 resulted in faster growth but subscribership remains only about 1 per 100 persons; mobile-cellular services growing rapidly; multiple cellular providers operate nationally with subscribership base approaching 60 per 100 persons; excellent internet services with 43.989 million (2009) using internet here; Nigeria has fastest growing telecommunications market in the world.

Currency:

Naira, subdivided into 100 kobo.

Credit Cards:

Most major credit cards accepted by banks, businesses and hotels, although fraud is a problem; ATMs in all cities; most international travellers’ cheques accepted.

Taxes:

VAT rate of 5% payable on most goods and services, with basic foodstuffs, medical services, medicine and other items exempted.

Entry Requirements:

Visitors to Nigeria require a passport and a Nigerian visa to enter the country, and should obtain the visa in advance from a Nigerian embassy or consulate. In most cases, visas cannot be obtained on arrival at the airport; a yellow fever vaccination certificate is required for travellers over one year of age arriving within six days from infected areas. Political

108

System:

Constitutional democracy; federal republic.

Independence:

1960 (from Britain)

TRADE & INVEST AFRICA

Government:

President is head of state and government; president elected by popular vote for a four-year term; appointed cabinet is called the Federal Executive Council.

Legislature:

Bicameral National Assembly consists of the Senate (109 seats, 3 from each state plus 1 from Abuja; members elected by popular vote to serve four-year terms) and House of Representatives (360 seats; members elected by popular vote to serve four-year terms).

Legal System:

Supreme Court (judges recommended by the National Judicial Council and appointed by the president); Federal Court of Appeal (judges are appointed by the federal government from a pool of judges recommended by the National Judicial Council); mixed legal system of English common law, Islamic law (in 12 northern states), and traditional law.

Population:

177,155,754 (2014.)

Gross Domestic Product:

US$478.5 billion (2013)

GDP Growth:

6.2% (2013 est.)

GDP Per Capita:

US$2,800 (2013 est.)

Sector % of GDP:

Agriculture: 30.9% • Industry: 43% • Services: 26% (2012 est.)

Budget:

Revenues: US$23.85 billion • Expenditures: US$31.51 billion (2013 est.)

Surplus/Deficit:

-2.6% of GDP (2013 est.)

Public Debt:

19.3% of GDP (2013 est.)

Current Account:

US$16.16 billion (2013 est.)

Exports / Imports:

Exports US$93.55 billion (2013 est.); Imports US $55.98 billion (2013 est.)

Foreign Exchange & Gold Reserves:

US$35.21 billion (2011 est.)

Inflation:

8.7% (2013 est.)

Unemployment:

23.9% (2011 est.)

Poverty:

70% (2010 est.) of population live below poverty line.

Economic Sectors:

Energy; telecommunications; financial services; mining; agriculture; manufacturing.

Natural Resources:

Oil; natural gas; coal; bauxite; tantalite; gold; tin; iron ore; limestone; niobium; lead; and zinc.

Agricultural Products:

Cocoa; peanuts; cotton; palm oil; corn; rice; sorghum; millet; cassava (tapioca); yams; rubber; cattle; sheep; goats; pigs; timber; fish

Manufacturing Industries:

Rubber products; wood; hides and skins; textiles; cement; construction materials; food products; footwear; chemicals; fertilizer; printing; ceramics; steel.

Major Banks:

Access Bank; Citibank; Diamond Bank; Ecobank Nigeria; Enterprise Bank Limited; Fidelity Bank Nigeria; First Bank of Nigeria; First City Monument Bank; J P Morgan Chase Corporate Banking; Keystone Bank Limited; Stanbic; IBTC Bank Nigeria Limited; Standard Chartered Bank; United Bank for Africa; Guaranty Trust Bank; Zenith Bank and more.

Stock Exchange:

Nigerian Stock Exchange (NSE), Lagos (2nd biggest in Africa).

Major Private Companies:

Guinness Nigeria; First Bank of Nigeria; Guaranty Trust Assurance; Accenture Nigeria; Fidelity Bank; Total Nigeria; GlaxoSmithKline; John Holt plc; Transnational Corporation of Nigeria; Julius Berger Nigeria; Chevron; Shell; Elf; Agip; 7Up Bottling; Africa Prudential Registrars; African Alliance Insurance; Afrik Pharmaceuticals; Afromedia Nigeria; Cement Co Northern Nigeria; Aluminium Extrusion Industries; Ashaka Cem; Cadbury Nigeria; FBN Holdings; International Breweries; John Holt; Lafarge Cement WAPCO Nigeria; Livestock Feeds; Mansard Insurance; Equity Assurance; Japaul Oil & Maritime Services; Nestle Nigeria; Nigeria Energy Sector Fun; Nigerian Breweries; Premier Breweries; Paints and Coatings Manufactures; Standard Alliance Insurance; Trans-Nationwide Expres; UTC Nigeria and more.

Major State-Owned Enterprises:

Central Bank of Nigeria; Nigeria Deposit Insurance Company; Nigerian Coal Corporation; Nigerian National Petroleum Corporation; Power Holding Company of Nigeria; Nigerian Unity Line; Nigerian Ports Authority; Nigerian Mining Corporation; Nigerdock Nigeria Plc; National Insurance Corporation of Nigeria; Nigerian Telecommunication; and more. Contacts

Federal Ministry of Finance & Economic Development:

Tel: +2349 (0)234 6291-5

Federal Ministry of Power & Steel:

Tel: +234 (0)9 523 7064

Federal Ministry of Petroleum Resources:

Tel: +234 (0)9 523 5194

Nigerian Stock Exchange:

Lagos: +234 (0)1 4638333-5; Abuja: + 234 (0)9 4610615, 234-09-4610615, 4610611, 08023012703; Email: nseabuja@nigerianstockexchange.com

Federal Ministry of Commerce & Tourism:

Tel: +234 (0)9 234 1490

Federal Ministry of Industries:

Tel: +234 (0)9 234 1387

Federal Ministry of Solid Minerals Development:

Tel: +234 (0)9 523 3536; 523 6452

Lagos Chamber of Commerce & Industry:

Tel: 234 (0)1 7746617, 2705386, 7732305, 7616970; Email: lcci@lagoschamber.com

Source: Government, CIA World Factbook, International Monetary Fund, World Bank, Wikipedia

Economy

Country overview

TIA

South Africa Official Name: Republic of South Africa

outh 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); SothoTswana (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 hunter-gatherers. 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 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.

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

110

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.

TRADE & INVEST AFRICA

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:

51.77 million (2011 est.)

Gross Domestic Product:

US$384.3 billion (2012)

Per Capita GDP:

US$11,500 (2013 est.)

GDP Growth:

2.5% (2012)

Budget:

Revenues: US$85.13-billion (2014) Expenditure: US$118.4-billion (2014)

Surplus/Deficit:

-4% of GDP (2014)

Public Debt:

39.3% of GDP (2013)

Current Account:

-5.8% of GDP (2013)

Exports / Imports:

Exports: US$ 77,44-billion (2012) • Imports: US$80,72-billion (2012)

Foreign Exchange & Gold Reserves:

$50.7-billion (31 December 2012 est.)

Inflation Rate:

5.4% (2012).

Unemployment Rate:

25.2% narrow definition (1st quarter 2012)

Poverty:

20% of people live below food poverty line (2011)

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:

SA Reserve Bank (central bank); Absa (part of UK Barclays); Standard Bank; Habib Bank; Mercantile Bank; BNP Parobas; Bank of China; Bank of Taiwan; First National; Nedbank; Capitec; Africa Bank; Bidvest Bank; First Rand Bank; Grindrod Limited; Imperial Bank; Investec Bank; Citi Bank; Deutsche Bank; JP Morgan Chase; Societe Generale; Standard Chartered; State Bank of India; Hongkong and Shanghai Banking Corporation; and some 50-60 other banks also represented.

Major Companies:

There are too many to list here, but for comprehensive lists with contact details, go to: JSE - https://www.jse.co.za/Home.aspx • Top500 - http://www.top500.co.za/ Bloomberg List - http://www.bloomberg.com/markets/companies/country/south-africa/

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:

Agricultural Research Council (ARC); Air Traffic and Navigation Services Company; Airports Company South Africa; Alexkor Limited; Armaments Corporation of South Africa; Broadband Infraco; Council for Mineral Technology; Denel (Pty) Ltd; Development Bank of Southern Africa; Electricity Distribution Industry Holdings; Eskom; Human Sciences Research Council; Industrial Development Corporation ; Invest North West; Ithala Development Finance Corporation ; Khula Enterprise Finance; Land Bank and Agriculture Bank of South Africa; National Ports Authority; Passenger Rail Agency of South African; PetroSA; Public Investment Corporation (PIC); Small Enterprise Development Agency; South African Airways; South African Broadcasting Corporation; South African Express; South African National Parks; South African Nuclear Energy Corporation SOC Ltd; South African Post Office; South African Reserve Bank; Telkom SA; Transnet; Transnet Freight Rail, and more. Contacts

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.

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 Ms Naledi Pandor - 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.

Economy

Country overview

TIA

Swaziland Official Name: Kingdom of Swaziland

he 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 Bantu-speaking 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 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.

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 and other countries are exempt – consult an embassy. Political

112

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)

TRADE & INVEST AFRICA

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:

1,419,623 (July 2014 est.)

Gross Domestic Product

US$3.807 billion (2013 est.)

GDP Per Capita:

US$5,700 (2013 est.)

GDP Growth:

0% (2013 est.)

Sector % of GDP:

Agriculture: 7.6% • Industry: 47.8% • Services: 44.6% (2013 est.)

Budget:

Revenues: US$1.274 billion • Expenditures: US$1.316 billion (2013 est.)

Surplus / Deficit:

-1.1% of GDP (2013 est.)

Current Account:

US$-1.5 million (2013 est.)

Exports / Imports:

Exports:US$1.603 billion (2013 est.) • Imports: US $1.545 billion (2013 est.)

Foreign Exchange & Gold Reserves:

US$801.4 million (31 December 2013 est.)

Inflation:

6.1% (2013 est.)

Unemployment Rate:

40% (2006 est.)

Poverty:

69% (2006) of population below international poverty line of US$1.25 a day

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; Wesbank; 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:

BP Swaziland; Total Swaziland; Swaziland Fruit Canners; Bell Equipment Co Swaziland; Peak Forest Products; Maloma Colliery; Usutu Pulp Company; Ngwane Mills; AG Thomas; AG Electrical; Acrylon paints; Africa Online; Bearing Man; Caltex; Canon; Cargo Carriers; DHL Swaziland; Datacom; Deloite & Touche; Dulux Swaziland; Jinma Tractors; Kia Motors; King Pie; Lesco Engineering; Fedex; Fidelity Springbok Security; Fedics; PG Glass; Pam Golding Properties; Panazonic; Paramount Seed; Peak Timbers; Reclam Swaziland; Royal Swaziland Sugar Co; Shell Oil; Singer Sales & Service; Spintex; Steers; Supaquick; Webster Print; and more.

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; Royal Swazi National Airways; Swaziland Airlink. 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

Economy

Country overview

TIA

Tanzania Official Name: United Republic of Tanzania

ituated 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, 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. Private-sector growth and investment has been stimulated by recent banking reforms. 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, 10% on certain goods.

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

114

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.

TRADE & INVEST AFRICA

Legislature:

Unicameral National Assembly.

Legal System:

Independent judiciary with high and lower courts.

Population:

49,639,138 (2014 est.)

Gross Domestic Product:

US$79.29 billion (2013 est.)

GDP Per Capita:

US$1,700 (2013 est.)

GDP Growth:

7% (2013 est.)

Sector % of GDP:

Agriculture: 27.6% • Industry: 25% • Services: 47.4% (2013 est.)

Budget:

Revenues: US$7.117 billion • Expenditures: US$8.917 billion (2013 est.)

Surplus/Deficit:

-5.6% of GDP (2013 est.)

Public Debt:

42.7% of GDP (2013 est.)

Current Account:

-US$4.857 billion (2013 est.)

Exports / Imports:

Exports: US $5.92 billion (2013 est.) • Imports: US$11.16 billion (2013 est.)

Foreign Exchange & Gold Reserves:

US$4.343 billion (31 December 2013 est.)

Inflation:

7.8% (2013 est.)

Poverty:

36% (2002 est.)

Economic Sectors:

Agriculture; tourism; mining; energy; manufacturing.

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:

ABC Bank; Bank of Africa; Access Bank; Advans Bank Tanzania; Akiba Commercial Bank; Bank of Baroda; 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; Chase Bank; Commercial Bank of Africa; Consolidated Bank of Tanzania; Credit Bank; Development Bank of Tanzania; Dubai Bank; Diamond Trust Bank; Equity Bank; Eco Bank; Fidelity Bank; First Community Bank; 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; SAB Miller; Multi Cable; 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; Precision Air Services; Chandaria Industries; Tata Africa; Banana Investments; Tanzania Fertilizer; SATEC Suba Agro Trading; DPI Simba; Mantrac; IPP Media; Business Times Ltd; Prime Advertising; Independent Television; Fabec; BQ Contractors; Skol Building; AJ Quality Timber Exporters; Kibotrade Textiles; Raffia Bags; Hyatt Regency; Mutual Developers; Advent Construction; AIC Busintel Resources, and more.

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

TRADE & INVEST AFRICA

Source: Government, CIA World Factbook, International Monetary Fund, World Bank, Wikpedia

Economy

115

Country overview

TIA

Uganda Official Name: Republic of Uganda

ronically, 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 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. 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.

System:

Republic; multi-party constitutional democracy.

Independence:

1962

Political

116

TRADE & INVEST AFRICA

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:

35,918,915 (July 2014 est.)

Gross Domestic Product:

US$54.37 billion (2013 est.)

GDP Per Capita:

US$1,500 (2013 est.)

GDP Growth Rate:

5.6% (2013 est.)

Sector % of GDP:

Agriculture: 23.1% • Industry: 26.9% • Services: 50% (2013 est.)

Budget:

Revenues: US$3.2 billion • Expenditures: US$3.803 billion (2013 est.)

Surplus/Deficit:

-2.7% of GDP (2013 est.)

Public Debt:

30.7% of GDP (2013 est.)

Current Account:

-US$1.908 billion (2013 est.)

Exports / Imports:

Exports: US$3.156 billion (2013 est.) • Imports: US$4.858 billion (2013 est.)

Foreign Exchange & Gold Reserves:

US$3.579 billion (31 December 2013 est.)

Inflation:

6.2% (2013 est.)

Poverty:

24.5% (2009 est.) people living below poverty line.

Economic Sectors:

Mining, agriculture, oil, manufacturing, services.

Natural Resources:

Copper, cobalt, oil, gold.

Agricultural Products:

Coffee, sugar, tobacco, fish and fish products, tea, cotton, flowers, horticultural products.

Manufacturing Industries:

Brewing, textiles, cement, steel.

Major Banks:

ABC Bank; Bank of Africa (Uganda); Bank of Baroda (Uganda); Bank of India; Bank of Uganda (central bank); Barclays Bank (Uganda); Cairo International Bank; Centenary Bank; Citibank; Commercial Bank of Africa; Crane Bank; DFCU Bank; Diamond Trust Bank; East African Development Bank; Ecobank; Equity Bank; Finance Trust Bank; Global Trust Bank; Housing Finance Bank; National Bank of Commerce; Guaranty Trust Bank; Kenya Commercial Bank; Nile Bank Limited; Orient Bank; NC Bank Uganda; Stanbic Bank; Standard Chartered Uganda; 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; Aya Group; DFCU Group; International Medical Group (Uganda); Madhvani Group; Mehta Group; Mukwano Group; Mulwana Group; New Vision Group; Tororo Cement Limited; Ruparelia Group; Simba Group; National Housing and Construction Company; Tonniez Group; Roofings Limited; Wavah Group; DFCU Group;Hima Cement Limited; Moroto Cement Limited; Uganda Clays Limited; National Social Security Fund (Uganda); Opportunity Uganda Limited; PostBank Uganda; Pride Microfinance Limited; UGAFODE Microfinance Limited; Translink (U) Ltd; Umeme; East African Breweries; Kyagalanyi Coffee Limited; Kakira Sugar Works; Kinyara Sugar Works Limited; Sango Bay Estates Limited; International Medical Group; Quality Chemical Industries Limited; Imperial Hotels Group; National Insurance Corporation; Statewide Insurance Company; New Vision Group; MultiChoice; MTN Uganda; Airtel Uganda; Orange Uganda; Smile Telecom; K2 Telecom; Smart Telecom; and more.

Major State-Owned Enterprises:

Uganda Railways Corporation; National Water & Sewerage Corporation; Uganda Tea Corporation; Uganda Development Bank; Sugar Corporation of Uganda Limited; Uganda Broadcasting Corp; Uganda Telecom; and more 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, 342-818, +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

TRADE & INVEST AFRICA

Source: Government, CIA World Factbook, International Monetary Fund, World Bank, Wikipedia

Economy

117

Country overview

TIA

Zambia Official Name: Republic of Zambia

andlocked, 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 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.

General Location:

Landlocked country in central Southern Africa, bordered by Angola, the Democratic Republic of the Congo, Zimbabwe, Tanzania, Mozambique, Namibia and Botswana.

Capital:

Lusaka

Languages:

English (official); 70+ local languages / dialects

Time Zone:

GMT + 2

Main Airport:

Kenneth Kaunda International Airport, Lusaka.

International Dialling Code:

+260

Communications:

Among the best in Southern Africa. High-capacity microwave radio relay connects most urban areas. Several cellular telephone services in operation with good network coverage. Internet service providers in most cities and towns.

Currency:

Zambian kwacha

Credit Cards:

Major credit cards are accepted in larger supermarkets, restaurants, stores and hotels in large urban centres only.

Travellers’ Cheques:

Some are accepted – cheque with local banks.

Taxes:

16% VAT on goods.

Entry Requirements:

Passports must be valid till at least six months after leaving Zambia. Visas required. Tourists are issued with visas at any port of entry or at Zambian missions abroad.

System:

Multiparty democracy

Independence:

24 October 1964 (from the UK)

Government:

President is both the chief of state and head of government. Cabinet appointed by the president from among the members of the National Assembly.

Legislature:

Unicameral National Assembly

Political

118

TRADE & INVEST AFRICA

Country overview

Legal System:

Mixed legal system of English common law and customary law.

Population:

14,638,505 (July 2014 est.)

TIA

Gross Domestic Product:

US$25.47 billion (2013 est.)

GDP Per Capita:

US$1,800 (2013 est.)

GDP Growth:

6% (2013 est.)

Sector % of GDP:

Agriculture: 19.8% • Industry: 33.8% •Services: 46.5% (2013 est.)

Budget:

Revenues: US$4.814 billion • Expenditures: US$6.687 billion (2013 est.)

Surplus / Deficit:

-8.4% of GDP (2013 est.)

Current Account:

-US$1.25 billion (2013 est.)

Exports / Imports:

Exports: US$8.547 billion (2013 est.) • Imports: US$8.216 billion (2013 est.)

Foreign Exchange & Gold Reserves:

US$2.833 billion (31 December 2013 est.)

Inflation:

7.1% (2013 est.)

Unemployment:

14% (2006 est.)

Poverty:

64% (2006) of population below international poverty line of US$1.25 a day (2006 est.)

Economic Sectors:

Agriculture: 21.4% of GDP (2011 est.) • Industry: 35.1% of GDP (2011 est.) • Services: 43.5% of GDP (2011 est.)

Natural Resources:

Copper

Agricultural Products:

Corn; sorghum; rice; peanuts; sunflower seed; vegetables; flowers; tobacco; cotton; sugarcane; cassava (tapioca); coffee; cattle; goats; pigs; poultry; milk; eggs; hides.

Major Industries:

Copper mining and processing; construction; foodstuffs; beverages; chemicals; textiles; fertilizer; horticulture.

Major Banks:

Access Bank Zambia; African Banking Corporation; Bank of China; Barclays Bank Zambia; Cavmont Capital Bank; Citi Bank Zambia; Ecobank Zambia; Finance Bank Zambia; First Alliance Bank Zambia; First National Bank Zambia;Indo-Zambia Bank; Intermarket Banking Corporation; International Commercial Bank Zambia; Investrust Bank Plc; Stanbic Bank Zambia; Standard Chartered Bank; United Bank for Africa Zambia; Zambia National Commercial Bank.

Stock Exchange:

Lusaka Stock Exchange (LuSE)

Major Private Companies:

African Explosives; Zambia Bata Shoe Co; British American Tobacco; BP Zambia; Lafarge Cement; National Breweries; Shoprite Holdings; Zambeef Products; Zambian Breweries; Zambia Sugar; First Quantum Minerals Zambia; MTN Zambia; Chilanga Cement; Konkola Copper Mines; Zambia Consolidated Copper Mines; Railway Systems of Zambia; Aero Zambia; Eastern Air; African Explosives Limited; Cavmont Capital Holdings Zambia; Copperbelt Energy Corporation; Investrust Bank; Lafarge Cement Zambia; Metal Fabricators of Zambia; National Breweries; Pamodzi Hotels; Puma Energy Zambia; Real Estate Investments Zambia; Standard Chartered Bank Zambia; Zambia National Commercial Bank; Zambia Sugar; Genesis Group; Apollo Enterprises; Gemstone Marketing & Consultancy; Munich Advisors Group; Pelize Akani Minerals Zambia; Africa Explosives; African Explosives Zambia; Antelope Milling Co; Bata Shoe Company; CDC Cement Group; Chilanga Cement; Chris Furniture; Colgate Palmolive Zambia; Comark Limited; Gilbey & Matheson Ltd; Dunlop Zambia; Electric Maintenance Lusaka; Galco Zambia Limited; Kitwe Processing; Lever Brothers Zambia; Mwembela Timber Company Limited; Norzam Gluelam; Plascon Zambia; Plastico Zambia; ROP Zambia; SAPCO Fibreboard and Wood Products; Supersonic International Zambia; TAP Building Products; Tejay Pharmaceuticals; Universal Mining and Chemical Industries; Wood Processing Industries Limited

Major State Owned Enterprises:

Zambia State Insurance Corporation; National Airports Corporation; Zambia National Broadcasting Corporation; Zambia Consolidated Copper Mines; Copperbelt Energy Corp; Zambia Electricity Supply Corporation; Zambia Railways; ZamPost; Zambian Airways.

Zambia National Information Services:

Email: zanisnamz@zambia.co.zm

Department of Tourism:

Tel: +260 122 7645

Ministry of Commerce, Trade and Industry:

Tel: +260 122 8301; Fax: +260 122 6727

Zambia Development Agency:

Tel: +260 122 2858; Fax: +260 122 5270; Email: info@zda.org.zm

Contacts

TRADE & INVEST AFRICA

Sources: Country’s Government, CIA World Factbook, US State Department Country Fact Sheets, International Monetary Fund, World Bank

EconomY

119

Country overview

TIA

Zimbabwe Official Name: Republic of Zimbabwe

imbabwe 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 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 continued under supervision of the Southern African Development Community (SADC). In terms of the interim agreement Mugabe remained president while the MDC leader, Morgan Tsvangirai, was prime minister. That arrangement ended with elections in 2013, the outcome of which was highly disputed and widely condemned as having been rigged. Nonetheless, the SADC upheld the result and the MDC and Tsvangirai left the government. Bur since the formation of the unity government and dollarization of the local currency, the Zimbabwean economy had shown signs of recovery from a decade of hyperinflation. GDP growth had 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 had seen a number of favourable reports on investment prospects for Zimbabwe being published. However, since the 2013 elections, the economic situation in the country has again rapidly deteriorated. Foreign-owned companies are also under much pressure from the Mugabe government’s new indigenisation policy whereby majority shareholding must be handed over to black Zimbabweans or the Zimbabwean government.

General

120

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 embassy first.

TRADE & INVEST AFRICA

Political System:

Parliamentary democracy.

Independence:

18 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:

13,771,721 (July 2014 est.)

Gross Domestic Product:

US$7.496 billion (2013 est.)

GDP Per Capita

US$600 (2013 est.)

GDP Growth:

3.2% (2013 est.)

Sector % of GDP:

Agriculture: 20.1% • Industry: 25.4% • Services: 54.5% (2013 est.)

Budget:

Revenues: US$1.05 trillion • Expenditures: US$1.187 trillion

Public Debt:

202.4% of GDP (2013 est.)

Current Account:

-US$576 million (2013 est.)

Exports / Imports:

Exports: US$3.144 billion (2013 est.) • Imports: US$4.571 billion (2013 est.)

Foreign Exchange & Gold Reserves:

US$437 million (31 December 2013 est.)

Inflation:

8.5% (2013 est.)

Unemployment:

95% (2009 est.)

Poverty:

68% of population below international poverty line of US$1.25 a day (2004 est.)

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; Agricultural Development Bank of Zimbabwe; CBZ Bank Limited; Ecobank Zimbabwe; FBC Bank; Interfin Bank; Kingdom Bank Limited; MBCA Bank; Royal Bank Zimbabwe; Standard Chartered Zimbabwe; Time Bank Zimbabwe; Trust Banking Corporation.

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; Border Timbers; Cotton Company of Zimbabwe; Hippo Valley Estate; Sable Chemicals; Zimbabwe Iron and Steel Company; African Distillers; ART Holdings; Cairns Holdings; Colcom Foods; Dairibord; Delta Corporation; Tanganda Tea; TSL Limited; Zimswitch; Beitbridge Bulawayo Railway; New Limpopo Bridge; Zimbabwe United Passenger Company; Zimplow Limited; CBZ Holdings;

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); ZimPost.

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

Contacts

TRADE & INVEST AFRICA

Sources: Country’s Government, CIA World Factbook, US State Department Country Fact Sheets, International Monetary Fund, World Bank

Economy

121

Conferences & Events

My Calendar of Conferences & Events

AITEC Southern Africa ICT Summit 2014 When: 2-3 April 2014 Where: Girassol Indy Village Congress Hotel, Maputo, Mozambique. For More Info: Telephone +44 (0) 20 8441 1231 or +254 (0) 738 767 150; Email info@aitecafrica.com or kenyainfo@aitecafrica.com; Web http:// aitecafrica.com/event/view/115 Aitec Africa’s core business since 1987 has been focussed on ICT publishing, event management, professional development and training in Africa. It has been a market-leading pioneer in terms of spreading knowledge on the Internet, computing and telecommunications across most of English-speaking Africa. The Southern African ICT Summit will gather the region’s ICT policy-makers, regulators, CIOs and professionals from throughout the SADC region to share knowledge, network with industry leaders from throughout the world, and develop best practice strategies for the coming year. The Summit coincides with the opening of the Mozambique Science Park so will feature a number of sessions and presentations highlighting the business and development opportunities associated with this. The Summit will focus on the deployment of ICT solutions to improve the quality of life for Southern Africa’s citizens and empower them to export their knowledge and skills. West Africa Mining Investment Summit When: 7-10 April 2014 Where: The Waldorf Hilton, Aldwych, London WC2B 4DD, UK For More Info: Peter Braham, Business Development Manager Tel +44 (0) 20 7812 8439 or peter. braham@resourcefulevents.com; Harry

122

TIA

Conferences & Events Chapman, Conference Director – Tel +44 (0) 207 812 8441 or harry. chapman@resourcefulevents.com. West Africa is an area of high risk but potentially high reward. If you get a mining investment right there is a significant amount of money to be made. The challenge is managing political, infrastructural and security risks. With government delegations attending alongside major miners and supported by many of the region’s governments the West Africa Mining Investment Summit will provide the information and contacts you need to stay ahead of the competition. Coal Transportation Africa Summit When: 8-9 April 2014 Where: Gallagher Convention Centre, Johannesburg, South Africa For More Info: Web http://www. intelligencetransferc.co.za/conferences/ coal-transportation-africa-summit/ South Africa is ranked amongst the top 10 in the world for the largest coal reserves and is 5th in terms of being the largest coal exporter. However various challenges still hinder the regions coal transportation capacity ranging from infrastructure constraints to regulatory and investment constraints. This conference will bring together stakeholders across Southern Africa to discuss challenges and current successes within coal transportation across rail, land and sea. Discussion will focus on tackling South Africa’s coal transport challenges and emerging opportunities within the global market; considering PPP as a way to speed up investment in rail infrastructure; addressing the regulatory landscape in South Africa with regard to coal; the importance of regional cooperation for coal transport solutions for a landlocked country; comparing South Africa

TRADE & INVEST AFRICA

and other emerging coal exporters in Africa; transporting coal from port to pit seamlessly; engaging parastatals and government departments to ensure the swift and timeous movement of coal; and leveraging on new technology to expedite the transport of coal AgriTech International Conference & Exhibition When: 10-12 April 2014 Where: Mlimani City Conference Centre, Dar es Salaam, Tanzania For More Info: Web www.biz-fora.com; Tel +255684715404/715610048; Email info@biz-fora.com/marketing@ biz-fora.com. The 1st AgriTech International Conference 2014 is organized to unleash the many new opportunities, explore ways and policies to ensure successes. The conference will be bringing together agriculture expertise, technologists and Industry players from around the world. A number of prominent speakers and leading edge industry experts will be invited from various countries to share their share their knowledge, expertise and proven business models, trends by focusing on the business opportunities that will help stimulate the industry. The objective is for participants to learn about the emerging global trends and new innovation in agriculture; to encourage more entrepreneurs to tap into the vast opportunities available from the new economic model in agriculture technology; to bring forth new business opportunities and strategies for industry players; to provide an interactive platform for industry players and related organisations to network and exchange information; and to find solutions to industry related problems.

Conferences & Events

Foodnews Juice Africa Conference When: 8-10 April 2014 Where: Radisson Blue Waterfront Hotel, Cape Town, South Africa For More Info: Phone +44(0)20 3377 3658; Fax +44(0)20 3377 3659; Email bookings@agra-net.com . Be part of the only event dedicated to assessing raw material outlooks and new product trends in the African juice market. Meet the entire supply chain from South African raw material suppliers to Kenyan juice bottlers. The conference will be covering all key fruits for Africa and beyond; mango, pineapple, citrus and tropical. Quality networking in a stunning location. The best content designed by experts in the fruit juice industry. Following on from the success of the first ever Juice Africa conference in 2013, the second event is a must attend for anyone looking to expand their business card book with juice bottlers, manufacturers, suppliers and raw material producers from all over Africa. Companies from the following countries have already confirmed their attendance; South Africa, Mozambique, Nigeria, Sierra Leone, UK, Thailand, Algeria and The Netherlands. Wind Energy Summit South Africa When: 9-10 April 2014 Where: Southern Sun Cape Sun Hotel, Cape Town, South Africa For More Info: Tel +44 (0) 207 375 7164; Email victoria@windenergyupdate.com; Web http://www.windenergyupdate.com/ south-africa/ Procure, construct and deliver successful, profitable South African wind projects. International companies are taking advantage of opportunities for growth in South Africa but those looking to operate in the country need to understand the key factors before being able to do so successfully. Wind Energy Summit South Africa brings together over 100 key members of the renewable industry to facilitate and drive forward this expanding market. Helping forge new partnerships

and tackling emerging issues as the competitive bidding rounds progress. International Franchise Expo 2014 When: 10-12 April 2014 Where: Sandton Convention Centre, Johannesburg, South Africa For More Info: Web http://ife.co.za/ Are you a franchise looking to expand? Then the International Franchise Expo 2014 held in South Africa is the perfect opportunity to show thousands of visitors what you offer. Flaunt your recipe for success by booking your stand and have the opportunity to speak directly to interested entrepreneurs to generate sales and leads. speakers. Who Should Attend? Business owners who would like to franchise their business. If you are someone who is interested in owning a franchise. Franchisors and franchisees. 5th Eastern Africa Oil, Gas-LNG & Energy Conference When: 28-30 April 2014 Where: InterContinental Hotel, Nairobi, Kenya For More Info: http://www. globalpacificpartners.com/events/?id=851 ; Phone +27.11.880.7052; Email Amanda Wellbeloved at amanda@glopac-partners. com. Recent large and world-class gas discoveries in Mozambique and Tanzania, with potential for more to come, and commercial oil flows in Kenya, show the potential of the enormous exploration frontiers of Eastern Africa, both onshore and offshore. The impact of this resurgence is rebalancing the Africa oil-gas industry landscape into a wider continental oil and gas/LNG game, with potentially global consequences. The 5th Eastern Africa Oil, Gas-LNG & Energy Conference 2014 provides unrivalled new insight into the upstream opportunities, open acreage, bid rounds, new ventures, oil/gas investments, key upstream players, and corporate/ government strategies in this vast region

TRADE & INVEST AFRICA

TIA

of fifteen countries covering onshore and offshore potential, from Eritrea to South Africa, including across the Mascerene islands. The Conference, the landmark meeting on Eastern Africa, is hosted annually by Global Pacific & Partners with Presentations by Dr Duncan Clarke (Chairman, Global Pacific & Partners), Africa’s foremost strategist in the upstream, and author of Africa: Crude Continent: The Struggle for Africa’s Oil Prize. The Conference showcases significant presentations of chief executives, government officials, Ministers and key players in Eastern African exploration, from within leading corporate and state oil companies as well as inside the energy finance and service/ supply industry value-chain, with an important Exhibition over the Conference period. Already Eastern Africa has been transformed into a fast-emerging oil and gas frontier region. 3rd Power & Energy Africa Conference When: 27 - 29 April 2014 Where: KICC, Nairobi, Kenya For More Info: Web http://www.expogr. com/kenyaenergy/ ; Tel +971 50 628 5684. Powering and Energizing Africa for the 3rd consecutive year! The third edition of Power & Energy Africa is an imposing demonstration of its importance for the successful development of power and energy sector in Kenya. The expectations with the first show were not only fulfilled, but clearly surpassed. The 3rd Power & Energy Africa is being held from the 27th to the 29th of April, 2014 at Kenya’s prime international venue; the Kenyatta International Conference Centre in Nairobi. Exhibiting at the largest power event in the industry will allow you to showcase your products and services to the industry’s largest gathering of qualified decision-makers. 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

123

Conferences & Events

biggest markets in Africa, major emphasis is being laid upon attracting traders and importers from neighbouring countries. INDABA 2014 Travel & Tourism Show When: 10-12 May 2014 Where: Albert Luthuli Convention Centre, Durban, South Africa For More Info: E-mail indaba@indabasouthafrica.co.za; Phone +27 (0)11 467 5011 / 5024 (outside SA), +27 (0)861 077 784 (SA). INDABA is one of the largest tourism marketing events on the African calendar and one of the top three ‘must visit’ events of its kind on the global calendar. It showcases the widest variety of Southern Africa’s best tourism products, and attracts international visitors and media from across the world. INDABA is owned by South African Tourism and organised by Pure Grit Project and Exhibitions (Pty) Ltd. For two years in a row, INDABA has won the award for Africa’s best travel and tourism show. This award was presented by the Association of World Travel Awards. Africa Health 2014 When: 6-8 May 2014 Where: Gallagher Convention Centre, Johannesburg, South Africa For More Info: Web http://www. africahealthexhibition.com/ The last three years have seen Africa Health Exhibition and Congress go from strength to strength. Continued interest saw consistent growth in the number of exhibitors, delegates and visitors coming together to share information, exchange ideas and devise solutions to healthcare problems that continue to plague the African continent. Held alongside the exhibition we have 14 CPD accredited conferences. These conferences are thoroughly researched and produced together with local South African medical professionals, to ensure that topics are relevant and informative.

124

African Utility Week When: 13-14 May 2014 Where: International Convention Centre, Cape Town, South Africa For More Info: Web http://www.africanutility-week.com/aboutconference; Email info@spintelligent.com; Phone +27 21 700 3500. African Utility Week is the singular must-attend event for the power and water utilities industry in Africa. You can choose from a multi-track program offering inside expertise and get return on investments from the solutions and technologies presented. You can meet the industry experts that have the answers to a better-run business. We’ve gathered together an industry-elite group of real-world doers to share their expertise from grid to socket on best practices for effective power supply. Spintelligent is part of Clarion Events, a global B2B business event organiser with over 500 staff in offices in South Africa, UK, Netherlands, Germany, United States, Brazil, UAE and Singapore. Spintelligent has established itself as the key strategic information provider and specialist in African development, with a focus on the power, mining, education, agribusiness and defence sectors. 2014 Africa Financial Services Investment Conference When: 15-16 May 2014 Where: Hilton Metropole, Brighton, UK For More Info: Web http://www.afsic.net/ The objective of the Africa Financial Services Investment Conference is to increase investment into Africa’s financial services sector by bringing listed, and unlisted financial services companies from across Africa together with debt and equity institutional investors, and other interested parties. Financial services companies including banks, insurance companies, micro-lenders, leasing companies etc. are confirmed to attend, with more likely to confirm in the coming months. These include representatives of the largest banks in Burkina Faso, Chad, Central African

TRADE & INVEST AFRICA

TIA

Republic, DRC, Ghana, Kenya, Liberia, Malawi, Mauritius, Rwanda, Sao Tome, Sudan, Tanzania, Togo; Africa’s largest bank by number of branches; Africa’s largest insurance company; as well as many other banks, insurance companies, microfinance and other financial services companies. Many of Africa’s largest investors will be attending AFSIC 2014, including a wide range of major Africa focused funds that will be making presentations such as Actis, Amethis Finance, Carlyle, CDC, DPI, FMO, Frontier Markets Fund Managers, Helios, Jacana Partners, Leapfrog Investments, TLG Capital, T Rowe Price and the World Bank. Companies from 17 different African countries attended the inaugural Africa Financial Services Investment Conference. The 2014 event is likely to become a highlight of the Africa Financial Services calendar with a very wide range of financial services companies planning to attend. 6th Annual East Africa Trade & Commodity Finance Conference When: 22-23 May 2014 Where: Windsor Golf Hotel & Country Club, Nairobi, Kenya For More Info: Tel: +44 (0) 20 8673 9666; Fax: +44 (0) 20 8673 8662; Email: info@exportagroup.com; Web: http://www.exportagroup.com/ events/conferences/6th-Annual-EastAfrica-Trade-&-Commodity-FinanceConference_450/ The 6th Annual East Africa Trade & Commodity Finance Conference will bring together domestic, regional and international trade leaders to explore the latest developments, challenges and key issues facing this exciting and lucrative market. Huge emphasis will be placed on the importance of networking, where an abundance of such opportunities will be provided over the course of the event. Delegates will also have the opportunity to plan and organise private meetings with fellow attendees prior to the conference via the pre-event networking website. Be sure not to miss out on 2014’s only true industry meeting. “The depth and breadth of information is excellent, the selection

Conferences & Events

of presenters is fantastic - they really captured the audience.” African Construction Conference & Expo When: 27-28 May 2014 Where: Sandton Convention Centre, Johannesburg, South Africa For More Info: Phone +27 21 700 4300; Email Meghan Gilson at meghan.gilson@ hypenica.com or Stefanie Pillay at stefanie. pillay@hypenica.com. The African Construction Expo and Conference is the only forum that brings together construction professionals from the entire African continent. The event hosts a conference that addresses strategic issues around large scale construction and infrastructure projects. An interactive exhibition showcases the latest products and solutions that help deliver projects on time and on budget. A free-toattend workshop programme provides educational content and encourages a change towards a more sustainable approach to construction. The event is designed for the industry’s senior level management, investors, government representatives as well as construction professionals of all trades. Africa Media Business Exchange 2014 When: 28 May 2014 Where: Kenyatta International Conference Centre, Nairobi, Kenya For More Info: Email info@aitecafrica. com or info@filmbizafrica.com; Tel Aitec Africa at +254(0)20-815-5638 or Filmbiz Africa at +254(0)202324238; Web http:// aitecafrica.com/event/view/113. This year’s Broadcast, Film & Music Africa Conference (BFMA 2014) will include the 2nd Africa Media Business Exchange to provide a platform for African media start-ups to pitch their business ideas and opportunities to Venture Capitalists (VCs) and other potential investors – as well as for content producers to pitch their ideas to commissioning editors and other buyers of content. Organized by AITEC Africa in partnership with FilmBiz Africa and Growth Africa Hub, the Exchange is

an opportunity to kick-start the continent’ s emerging creative content industry. 20 international and regional VCs will meet with developers, innovators and start-ups with exciting business ideas that need financial backing. The format is a threeday mentoring and investment process. Africa Finance & Investment Forum 2014 When: 4-5 June 2014 Where: Cologne, Germany For More Info: Tel: +32.2.626.1515; http://www.emrc.be/en/events/afif-2014. aspx The Africa Finance & Investment Forum (AFIF) is an annual business networking event organised in the framework of EMRC international’s activities, aimed at strengthening the private sector in Africa, encouraging entrepreneurship and attracting investment in the African continent. The 2014 edition of AFIF will be hosted by and organized in collaboration with DEG - Deutsche Investitions - und Entwicklungsgesellschaft mbH and will take place for the first time in Germany from the 4-5 June 2014. The Forum will be preceded by a two day training on “Sources of Funding” (2-3 June 2014). Karibu 2014 Travel & Tourism Fair, Tanzania When: 6-8 June 2014 Where: Arusha, Tanzania For More Info: Tel +255 27 254 5633; Fax +255 27 254 5633; Email info@karibufair. com; Web http://www.karibufair.com/ index.php. Karibu fair is the leading travel trade event in East Africa. Originally created to promote Tanzania, it’s now a regional event that also features many products and delegates from Kenya, Uganda and Rwanda. Karibu’s major function is one of a relationship broker who targets, attracts and matches the needs of buyers and suppliers. Botswana Resource Sector Conference When: 10-11 June 2014

TRADE & INVEST AFRICA

TIA

Where: Gaborone International Conference Centre, Gaborone, Botswana For More Info: Email emma@ capresources.co.uk ; Web http://www. capconferences.com/ This conference, in its eleventh year is scheduled for Tuesday June 10th and Wednesday June 11th 2014 and is the largest annual investment conference held in Botswana. It aims to increase investment into Botswana’s Resource Sector by bringing together Botswana resource companies, with global and local institutions looking for investment opportunities. The agenda will comprise listed companies making a series of 30 minute presentations over two days to the audience. The conference will attract a substantial number of significant institutional investors, including asset management firms, pension funds, hedge funds, brokers and other investment specialists. Those who should attend include institutional investors looking for investment opportunities in Botswana’s resource sector; private investors; resource companies with existing operations in Botswana or those looking for attractive opportunities in Botswana; mining sector supply companies looking to meet their customers at a single venue; and the mining sector media. 2014 Africa Insurance & Reinsurance Conference When: 10 – 11 June 2014 Where: Laico Regency Hotel, Nairobi, Kenya For More Info: Web http://aidembs.com/ insurance_conference/ The 2014 Africa Insurance & Reinsurance Conference will keep you up-to-date with the latest industry developments, marketing strategies and product innovations relevant for the African market. New technologies, development of new client segments and the overall economic growth in the continent is not only forcing regional insurers to rethink the way they conduct business but also forcing the global players to look at Africa as a strategic market for growth. At the 4th Annual Africa Insurance and

125

Conferences & Events

Reinsurance Conference, will focus on key fundamentals to the business of insurance and discuss how industry players are and must adopt their business models in this dynamic market. The perfect environment for you to engage in “face to face” meetings. Come meet and network with industry leaders who encounter - and solve - the same challenges you see every day. Learn how to gain a competitive advantage, benchmark your strategies, deliver a better customer experience, and so much more! 4th Zambia International Mining & Energy Conference & Exhibition When: 24-25 June 2014 Where: New Government Complex Conference Centre, Lusaka, Zambia For More Info: http://www.zimeczambia. com/ The theme of Zimec 2014 is “Securing Zambia’s growth by ensuring the sustainable development of its mineral and energy resources”. Organised in association with the Ministry of Mines, Energy and Water Development of Zambia and the Association of Zambian Mineral Exploration Companies (AZMEC), ZIMEC 2014 provides the definitive platform for showcasing Zambia’s mineral and power potential and connecting with industry professionals. Now in its 4th edition, the conference will feature two parallel conference streams, focusing on mining and power issues respectively. Attending will enable you to participate in the sectors’ hottest debates, meet and learn from the sector leaders and showcase your products in the colocated exhibition. Africa Ports and Harbours Show When: 1-2 July 2014 Where: Sandton Convention Centre, Johannesburg, South Africa For More Info: Web http://www. terrapinn.com/exhibition/africa-portsand-harbours/index.stm ; Tel +27 (0) 11 516 4015; Email enquiry.za@terrapinn. com or brian.shabangu@terrapinn.com. African ports harbour & terminal

126

TIA

operators and major end users are looking to streamline efficiencies and improve operations. The Africa Ports & Harbours Show is the place where Africa’s operators & major importers and exporters meet to discuss their transport challenges and propose strategies & systems to overcome their challenges. And where they make decisions to invest in new solutions.

in transporting their cargo. This is a platform for cargo transportation solution providing to showcase their business to Africa’s key cargo owners and buyers. Your customers are here to: Evaluate new technologies; Compare new products; Make buying decisions; Engage with world class solution providers; and Establish partnerships.

Aviation Outlook Africa

AITEC Banking & Mobile Money West Africa ACCRA 2014

When: 1-2 July 2014 Where: Sandton Convention Centre, Johannesburg, South Africa For More Info: Web http://ww.terrapinn. com/2014/aviationoutlookafrica/; Tel +27 (0) 11 516 4015; Email enquiry. za@terrapinn.com or Brian Shabangu at brian.shabangu@terrapinn.com. Aviation Outlook Africa is a conference about meeting the demand for aviation solutions. The event targets decisionmakers from local and international airlines, airports, investors and government. Aviation Outlook Africa is the only event in Africa that offers on-the-cusp content and allows buyers access to cutting edge aviation technology and solutions-providers. Exhibitors include: MRO service providers; Aircraft Manufacturers & original equipment; Manufacturers; Airport Operators & developers; Distribution & Reservation solutions; Travel agencies & tourism boards; Airport Infrastructure & ground support equipment; GSA’s, Marketing and Loyalty solutions The Cargo Show When: 1-2 July 2014 Where: Sandton Convention Centre, Johannesburg, South Africa For More Info: Web http://www. terrapinn.com/exhibition/the-cargoshow-africa/; Tel +27 (0) 11 516 4015; Email enquiry.za@terrapinn.com or Brian Shabangu at brian.shabangu@terrapinn. com. The Cargo Show Africa is the leading exhibition and idea exchange for the African cargo owning community, who are hungry for innovative solutions

TRADE & INVEST AFRICA

When: 9-10 July 2014 Where: Accra International Conference Centre, Accra, Ghana For More Info: Email info@aitecafrica. com; Tel +44 (0)1480 880774; Web http:// aitecafrica.com/event/view/114. Now entering its sixth year as the region’s leading banking forum, AITEC Banking & Mobile Banking West Africa 2013 will address the key issues faced by the region’s increasingly dynamic financial services sector. African banks have a great challenge in overcoming their heritage of colonial banking, which was designed to cater primarily for government, corporate and high-worth individuals. The bottom part of the pyramid has been badly neglected. Now that the mobile operators are setting the pace in terms of providing low-cost banking services, banks are scrambling to catch up. This they can do not only through technological innovation, but also through a customeroriented corporate culture and service innovation. Mobile banking is the future, not a fad. Because most central banks are also tied into the old banking paradigm, they don’t fully understand the dynamics of mobile banking, worry about the risks involved and therefore resist it. No doubt they are also encouraged to do so by the banks who don’t want mobile operators encroaching into their space. Ghana is a notable exception. There, the Central Bank has taken the risk of allowing mobile operators to provide money transfer services – and it has benefited millions and reduced money transfer costs substantially. Money moves around the economy far more efficiently and quickly and in that sense, a higher level of financial inclusion has been achieved.

Conferences & Events

AITEC Banking & Mobile Money West Africa LAGOS 2014 When: 15-16 July 2014 Where: Eko Hotel, Lagos, Nigeria For More Info: Telephone +44 (0) 20 8441 1231; Email info@aitecafrica.com; Now entering its seventh year as the region’s leading banking forum, AITEC Banking & Mobile Banking West Africa 2014 will address the key issues faced by the region’s increasingly dynamic financial services sector. African banks have a great challenge in overcoming their heritage of colonial banking, which was designed to cater primarily for government, corporate and high-worth individuals. The bottom part of the pyramid has been badly neglected. Now that the mobile operators are setting the pace in terms of providing low-cost banking services, banks are scrambling to catch up. This they can do not only through technological innovation, but also through a customeroriented corporate culture and service innovation. CIPS Pan African Conference 2014 – Zambia When: 29 - 30 July 2014 Where: InterContinental, Lusaka, Zambia For More Info: Web http://www.cips.org/ events/Pan-African-Conference/. Network- with over 400 peers and procurement professionals. Gain - a group discount automatically, if you book 5 delegate places or more. Connect - with industry suppliers at our exhibition and find the right business solutions for you. Earn - up to 14 CPD points. Select between different industry and business speakers, who will discuss the topics important to you and how they affect your career Learn - from the industry pioneers. This is your industry conference, tailored around you and your career development. Meet - leading procurement and supply chain practitioners. SCECSAL XXI Conference, Malawi When: 28th July - 1st August 2014

TIA

Where: Sunbird Capital Hotel, Lilongwe City, Malawi For More Info: Geoffrey F. Salanje, Lilongwe University of Agriculture and Natural Science, Cell: (265) (0)9 99 930 892, Tel: (265) (0)1 11974112, E-mail: gsalanje@bunda.luanar.mw or salanje@ yahoo.com.

planners, thinkers and writers from all over the world will gather, with the public, for a week of lively and challenging talks, workshops, events and happenings.

The theme of the conference is “Information and knowledge management as a driving force for socio-economic development in Africa”. Sub-themes include • Information and communication technology (ICT) for knowledgebased economies • LIS education and socio-economic development • The impact of global credit crunch on African libraries and archives • Knowledge and information in health care delivery services • Conflict management: the role of archives and records • Social media and socio-economic development • Information literacy for socioeconomic development • Knowledge and information for persons with special needs • The impact of libraries and information services in shaping knowledge economies • The role of agricultural services in socio-economic development

When: 1-3 September 2014 Where: Gaborone, Botswana For More Info: Web http://www.iasted. org/conferences/home-812.html ; Phone +1 403 288 1195; Fax +1 403 247 6851.

The International World Congress of Architects 2014 When: 4-9 August 2014 Where: International Convention Centre, Durban, South Africa For More Info: Phone +27 31 201 7590; Fax +27 31 201 7586; Email alene. naidoo@uia2014durban.org. On the twentieth anniversary of South Africa’s re-birth, the UIA Congress will celebrate the African profession as a meaningful contributor to world architecture and thought leadership in city development; as well as the continent’s contribution in the affairs and evolution of architecture globally. Architects, engineers, designers, technologists,

TRADE & INVEST AFRICA

5th IASTED African Conference on Environment and Water Resource Management

The conference is sponsored by the International Association of Science and Technology for Development (IASTED). 2nd International Oil & Gas Conference & Exhibition, Namibia When: 17-19 September Where: Windhoek, Namibia For More Info: http:// namibiaoilgasconference.com/ content/2014-conference-exhibition Endorsed by the Government of Namibia, Rich Africa Consultancy founded and organised Namibia’s first International Oil and Gas Conference and Exhibition in 2012, which was a resounding success. Themed ‘The Road to Discovery & Beyond’, the conference attracted more than 250 international and local delegates. ‘Ensure the development of Namibia’s natural capital and its sustainable utilisation for the benefit of the country’s social, economic and ecological wellbeing’. As a proudly Namibian company, Rich Africa Consultancy is pleased to announce Namibia’s 2nd International Oil and Gas Conference & Exhibition, to be held on 17th – 19th September 2014 in Windhoek, Namibia. The theme of the Conference is ‘ Unlocking and Optimising Our Resource Potential’ with a special focus on exploration, energy and investment. The flagship event will gather leading international, regional and local experts to deliberate on new developments, investment opportunities and outlook for the oil, gas & energy sectors in Namibia. New areas to be covered include the Country’s energy

127

Conferences & Events

and downstream sectors. Organised by natural resources experts, this learning and networking platform will continue to positively contribute to the foundation for developing a framework for the sustainable management, development and investment of Namibia’s resources. Africa Hotel Investment Forum When: 30 September – 1 October 2014 Where: InterContinental, Nairobi, Kenya For More Info: http://www.africaconference.com/; Jonathan Worsley, Chairman, Bench Events, Tel +44 (0) 1485 609160, Mobile +44 (0) 7770 584739 Bench Events has a long track record of delivering, with its partners, the premier hotel investment events in Europe and the Middle East. Bench Events’ Chairman, Jonathan Worsley, is one of the organisers and founders of the highly successful International Hotel Investment Forum now in its fourteenth year (www.berlinconference.com). The Africa Hotel Investment Forum (AHIF) is the continent’s leading hotel investment conference. It brings together over 400 top-level hotel investors, operators, developers, and advisors from over 20 countries, including government ministers from African nations. This premier event is THE event to network and discuss the latest developments, trends and opportunities available in this emerging market. This year’s theme is aptly titled “Reaching New Heights” highlighting the booming new investment potential growing throughout the region. With reports of Africa’s impressive economic growth bound to continue in the 2014 economic year and beyond, now is the time to build upon relationships already forged and grasp new opportunities. AHIF returns to Kenya, taking place at the InterContinental Nairobi, 30 September 1 October 2014. 6th All Africa Conference on Animal Agriculture When: 27 – 30 October 2014 Where: Kenyatta International Convention Centre, Nairobi, Kenya

128

For More Info: Tel +254 20 272 2637; Email info@aacaa6.org; Web http://www. aacaak.or.ke/. The organising committee is proud to welcome you to the 6th All Africa Conference on Animal Agriculture (AACAA) to be held from 27 – 30 October 2014 at the Kenyatta International Convention Centre situated at the heart of the capital city of Nairobi, Kenya. Meeting every four years, the AACAA assembly provides a forum for researchers, policy makers, entrepreneurs and other stakeholders to share scientific findings and experiences in animal agriculture in Africa and beyond. The 6th AACAA builds from previous successful conferences held in Nairobi (1992), Pretoria (South Africa, 1996), Alexandria (Egypt, 2000), Arusha (Tanzania, 2005) and Addis Ababa (Ethiopia, 2010). We plan to show-case the potential of Africa as production powerbase for livestock and related products with large potential and multiplier effect in the regional and international trade, notwithstanding the myriad of challenges facing the continent and the animal industry. 6th International Conference on e‐ Infrastructure and e‐Services for Developing Countries When: 24-16 November 2014 Where: Kampala, Uganda For More Info: Email conferences@eai. eu ; Web http://africommconference. org/2014/show/home Deploying efficient and effective infrastructures and solutions when limited resources are available is a challenging task and a key-enabler for the diffusion of ICT in developing countries. The aim of this conference is bringing together international researchers, students, public officers, policy makers and practitioners in ICT to discuss issues and trends, recent research, innovation advances and on-thefield experiences related to e-Governance, e-Infrastructure, and e-Business with a focus on developing countries.

TRADE & INVEST AFRICA

TIA

East Africa Oil & Gas Exhibition and Conference When: November 2014 Where: Dar es Salaam, Tanzania For More Info: James Hodgson, Conference Producer at email james. hodgson@ite-events.com ; Tel +44 (0) 207 596 5180 ; http://www.eastafrica-og.com/. Large amounts of foreign investments have been injected into the East African oil and gas industry due to recent offshore discoveries and government policies for monetising the region’s reserve. These changes have propelled East Africa as the next lucrative market in the international oil, gas and LNG market. Major oil and gas companies have expanded their business into this under-explored region. In July 2012, PTT Exploration and Production outbid Royal Dutch Shell for the $US1.9 billion takeover bid of Cove Energy, giving the company access to massive gas reserves off the East African coast. BG Group and Ophir Energy have also discovered gas off the coast of Tanzania this year. Join major companies, along with senior government officials, regulatory bodies and associations at the East Africa Oil & Gas Exhibition and Conference, taking place on November 2014 in Dar es Salaam, Tanzania who will discuss new commercial opportunities, geopolitical challenges, recent developments, case studies on successful explorations and community engagement strategies. Key countries that will be covered include Uganda, Tanzania, Kenya and Mozambique.

Advertorial

TIA

Gauteng Investment Centre cuts red tape for investment *This article was supplied by the Gauteng Investment Centre

s part of its efforts to position Gauteng province in South Africa as a preferred destination for investment and trade, the provincial government has established the Gauteng Investment Centre (GIC) in Sandton, Johannesburg, the economic and industrial hub of Southern Africa. This centre is to serve as a first point of contact for investors who need to access new value in the Gauteng economy. The establishment of the centre was facilitated by the province’s economic development agency, the Gauteng Growth and Development Agency (GGDA), which is an agency of the Gauteng Department of Economic Development. The centre is strategically located in Sandton, an affluent city situated within the metro of Johannesburg. GIC a convenient one-stop service The GIC conveniently offers a one stop shop where investors can access all the important information and services required for investment or the establishment of various business opportunities. With the Gauteng City Region and its three major cities – Johannesburg, Tshwane and Ekurhuleni - being a leading city region on the continent, the Gauteng government, through the GIC, will work with other government regulatory entities.

130

Among others it will aim to be a central point of reference in the provision of investment information to enable investors to obtain important decisionmaking information. In doing this the GIC will be a driver of efficiencies within the investment facilitation services in Gauteng. It will furthermore serve as a central point of reference for investment lead development and initiation and assist in the reduction of investment facilitation lead time to implementation. The objective is to increase the success rate and minimise missed opportunities by the investor community. The GIC provides proactive and effective communication to investors through its various services such as information and research services, administrative assistance in getting started, pre-investment support services and aftercare. Partners Through the various partners involved in the GIC, investors will be able to access company registration, tax registration services and information sharing. These partners are:  Department of Trade and Industry, represented by Trade and Invest SA (TISA)

TRADE & INVEST AFRICA

 Department of Home Affairs  South African Revenue Service (SARS)  Companies and Intellectual Property Commission (CIPC)  Brand South Africa  Gauteng Department of Agriculture and Rural Development  Gauteng Enterprise Propeller  City of Johannesburg  Ekurhuleni Investor Centre  Tshwane Economic Development Agency  West Rand Development Agency  EY (Ernst & Young) (Private Partner) About GGDA The GGDA is the implementation arm of the the Gauteng Department of Economic Development and assists the department in leading, facilitating and managing sustainable job creation and inclusive economic growth and development in the Gauteng City Region. Visit the centre Gauteng Investment Centre, The Venue, No. 1 Sandton Drive, Sandton, Gauteng Tel: +27 11 085 2400

Celebrating award winning building solutions.

ZAExports@saint-gobain.com

0860 27 28 29 | www.gyproc.co.za