Hawkins, who paid a courtesy call to the state Governor, Adams Oshiomhole during an inspection of projects in the state, said the $250 million fertilizer plant is being planned by the Overseas Private Investment Corporation of the United State Government.

“We are here because we are proud that the Overseas Private Investment Corporation of the US government is involved with the Green Petrochemical Company, which is making a $250m investment, and we are happy that this important fertilizer plant will have the support of the United States Government.”

“It will create about 1,500 jobs. That is something we are hoping to take a look at when we are here. The United States has had a long relationship with you way back before your time in politics and your activities as one of Nigeria’s premier labour leaders, and we are very happy to continue with that relationship.”

Hawkins in his address also described the state Governor who was a former president of Nigerian Labor Congress (NLC), as one of the most effective governors in Nigeria.

“We are happy that people of your state obviously think highly of you and your re-election is what we in America call landslide. You are someone many people point to when answering the question: ‘Who is the most effective governor in Nigeria?’ Often, the answer is Comrade Adams Oshiomhole,” he said.

Speaking on the proposed project, Governor Oshiomhole thanked the US government for the planned investment in the state.

“We trust we can count on your support. I am happy for the good news that a US agency is supporting a fertiliser plant here, and this shows the confidence and we are happy about that,” Oshiomole said.

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According to Layfeild, Standard Chartered has already applied for a banking license in Angola with the intention of submitting a license application to concerned regulatory agencies in Mozambique.

While the bank hopes to explore oil and gas financing in energy-producing Angola; gas exploration boom in Mozambique played a major role in influencing the application of a banking license in the country.

The British bank, which operates in 15 African countries, had early this year signed a joint-venture agreement with government-owned insurer ENSA in Angola and said it had applied for a banking license, which needs to be approved by the Bank of Angola.

Standard Bank would have a 60 percent share of the joint venture with ENSA.

The bank is hoping to increase its revenue in its offshore banking operations in the region by tapping into the advantage of Africa’s growing population as well as oil and gas financing.

Standard Chartered is not left alone in the race of tapping into the booming business potential presented by the continent. Other financial institutions and private-equity firms, including the likes of JP Morgan Chase & Co. (JPM) and Carlyle Group LP (CG) are also on the same course to increase their presence in Africa.

Speaking at the sideline of the World Economic Forum in Cape Town, South Africa, Layfeild said: “We’ve been thinking about this for a number of years. There’s a huge amount of infrastructure and human capital development that needs to happen.”

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Egypt’s Minister of Investment Osama Saleh gave this assurance at the ongoing “Egypt China Economic and Business Forum” in Beijing, which has in attendance about 80 Egyptian entrepreneurs and representatives from 200 Chinese enterprises.

The Egyptian delegations consist of diverse representation covering all the vital economic sectors including infrastructure, construction, tourism, petrochemicals, pharmaceuticals and textiles.

This is the first time such a huge business mission has come to China from Egypt, Hassan Malek, one of the Egyptian business delegation said. The two-day forum which will end today (Wednesday) is part of the Egyptian government plan to restructure the economy of the country after the revolution which oust Hosni Mubarak 30 years regime to give way to a civilian government.

The revolution caused a dent in the Egyptian economy as there were suspensions of a number of investment projects, including investments by Chinese enterprises.

To prevent such mishap in the future, Saleh said Egypt’s Ministry of Investment has set up a team to help investors ensure that no interruptions affect their business operations. He said agreements are now made with investors on investment protection and that such agreement will be respected by any government who comes to power.

“We worked together with the Ministry of Interior, Ministry of Defense and Ministry of Labor to work 24 hours for all the investors, and we also worked with ambassadors in different countries,” Saleh said.

With more than 1,100 Chinese enterprises investment in Egypt and a bilateral trade volume of $8.8 billion in 2011, China now rank 25th in terms of Egypt’s sources of foreign investment.

Meanwhile, Egypt has set an ambitious target to triple Chinese investment fourfold within the next three years.

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A total of eleven representatives were sent by the investors to get first hand information on investment potentials especially on agriculture.

While acknowledging the president’s visit as a stimulator for the investment outreach, Tanzania Investment Centre (TIC) Acting Executive Director, Raymond Mbilinyi, said TIC gave the investors information on investment opportunities in the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) and the government’s Agriculture First initiative, popularly called ‘Kilimo Kwanza.’

The investors were also enlightened on other benefits and incentives that would be derived from investing in the country.

According to Mbilinyi, such investors will help create a strong base of tax payers and develop the agricultural sector in the country by via new technologies and collaboration with local farmers.

The delegation will also be visiting Mozambique, South Sudan and Ethiopia to seek investment opportunities.

Image via businessweek

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Experts at the sixth KPMG’s Africa Conversations Series on transacting in Africa, were of the opinion that considerable focus on infrastructure upgrade, increase in Foreign Direct Investments (FDIs), improved banking supervision and more insurance policy uptakes; may increase Nigeria, South Africa and other African countries GDP to $2.6 trillion by 2020. While noting that, historically, multi-nationals and larger listed African companies have conducted investment into and across Africa, especially from the South; Head of Transactions and Restructuring at KPMG, John Geel said, “We are now witnessing an increasing number of smaller companies undertaking investments due to improved growth opportunities and regulatory tax regimes. This means that companies are now seeking out the right entity to transact with, negotiate details of collaboration and sign legal contracts.”

He stated that the economic analysis group had noticed improvement on the continent’s banking sector with continued consolidation and expansion appetite.

Noting reports on a survey carried out by KPMG Africa in May 2012, Geel stated that of the fourteen countries surveyed in the report, life and short-term insurance markets were relatively mature in the southern region, with few obvious merger and acquisition opportunities.

He said that it is ultra competitive, well regulated and, in all likelihood, facing ongoing challenges regarding regulation such as IFRS Phase II, Treating Customers Fairly and others.

With this development, Partner and National Head of Insurance, Gerdus Dixon, posits that other African countries are presented with new untapped markets, massive potential customer populations and burgeoning economic growth.

He stated that “While Nigeria, Ghana and Angola’s growth rates are all in excess of this. In many ways, describing these African countries as the “new frontier” is also no longer accurate, as most of the big players are already out of the blocks, so to speak, and actively positioning themselves for an African play.”

Dixon however emphasised that individual African countries should be understood and assessed each on their own merits. The incredible diversity and subtle nuances are critical in unlocking the secrets to business success.

He asserted that “Africa’s gross domestic product is expected to reach $2.6 trillion by 2020, but expanding into African countries is not a short-term growth fix, it will take deep pockets and committed sustainable long-term business plans to develop the insurance market in these African countries – particularly the much vaunted retail or individual life insurance markets.”

He believes it is important for shareholders to understand the return profile of expanding into Africa.

“The underdeveloped formal economy and infrastructure will demand that innovative solutions need to be found with regard to strategy, product design and distribution. The barriers to entry are high, but Africa is simply too big and growing too fast for insurers to ignore,” Dixon said.

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CRDB Bank General Manager in Burundi, Bruce Mwile, confirmed this to the East African News Agency (EANA) over the phone. “The branch will be opened in Bujumbura this year but I cannot tell you exactly when as there are some matters which need to be finalised first,” he said.

In establishing the bank at Burundi, CRDB Bank will become the second indigenous financial outfit to have branches outside the country after Exim Bank expanded to The Comoros Islands. The only East African bank which has aggressively invested in all five partner states so far is the Kenya Commercial Bank (KCB).

Meanwhile, Mwile said the Dar es Salaam-listed company is building the subsidiary bank Bujumbura, Burundi to act as a springboard for more branches in the tea and coffee exporting neighbouring country.

“We are currently constructing the head office building here (Bujumbura) and we will have more branches in the city,” he said.

CRDB Bank Managing Director, Dr Charles Kimei, had revealed last June in Arusha, that the opening of the new office in Burundi was supposed to have been fully operational last month, but it was delayed for logistic reasons.

“Our target is to grow the bank into a financial giant in East and Central Africa,’’ had Kimei revealed at a media conference.

Burundi is one of the five member states and a growing stable market within the revived East African Community (EAC). Other members are Kenya, Uganda, Tanzania and Rwanda. The grouping has a Customs Union, a Common Market protocol and plans to move on to monetary union.

Speaking on the new move, the Chief Executive Officer of International Business and Management Consultant Ltd, Simon Mapolu commended that “CRDB Bank transforms into reality the East African Community ambition for the member states to trade beyond their borders.’’

He believes the move will give the Tanzanian company international exposure to compete professionally and effectively in a global landscape while improving its profit margin and dividends for the shareholders.

The treasury coffers too, will be beefed up with more taxes, he said.

The post Tanzania’s CRDB Bank To Begin Operations In Burundi appeared first on Ventures Africa | .

Squadra was established in partnership between three organizations with over 50 years experience in the fields of trade and industry in different segments including automotive, leisure, fashion and garments in general trading and retailing. Over the years, these three companies have become Egypt’s premiere fashion leader in the food and beverage sector through creativity, quality, differentiation and innovation.
Squadra CEO, Hany Tanyous, said “Cold Stone Creamery has successfully managed to preserve the warm feeling of stepping into a traditional creamery with fresh and rich aromas, while also utilizing the advances of the millennium to continue growing into a cutting-edge brand that is recognized and embraced throughout the world.”

He believes it is the perfect fit for Egyptian consumers who value high quality products and appreciate the tradition behind it.

The group (Squadra) anticipates great success and rapid growth for Cold Stone Creamery in their local market.

“We are pleased to continue to strengthen our international presence by entering an entirely new continent,” Dan Beem, Cold Stone Creamery’s International president said.
He believes that the company has chosen right by picking Squadra for the task of the company’s expansion.
“Squadra is the perfect partner for this important milestone with their great reputation, incredible knowledge of the market and a very successful track record,” Beem said.

“We have great expectations for Cold Stone Creamery to flourish within Egypt, as well as future plans to continue expanding throughout the continent of Africa.”

Cold Stone Creamery’s explosive international growth began in November 2005 when the company opened its first international store in Tokyo, Japan. Today, Cold Stone Creamery stores are operating in more than 380 international locations in 19 countries including China, South Korea, Canada, Denmark and the United Arab Emirates.

Cold Stone Creamery is headquartered in Scottsdale, Arizona.

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While mobile technology has brought many gains for East Africans in money transfer, communication and increasing access to the internet, the competition amongst telecommunication operators can only be described as cut-throat.

One of the most vibrant markets is Kenya where one of the operators Safaricom Ltd. revolutionized money transfer with its mobile money transfer service M-Pesa which has since been replicated across the world. Safaricom has 17.95 million subscribers while its competition Airtel Kenya has 4.17 million, Telkom Orange commands 2.75 million and yuMobile holds 1.63 million subscribers. The four operators are constantly engaging on price wars to grow their market share in the country which has 26.49 million subscribers. Money is big in telecoms as was proved by safaricom in 2009 with its record Ksh. 21 billion pre-tax profits.

In Tanzania, South African owned company Vodacom Tanzania faces off with Zanzibar Telecommunications Corporation (Zantel), Bharti Airtel, MIC Tanzania Limited (Tigo) and fixed line operator Tanzania Telecommunications Company (TTCL) being the major players.

With increased competition in voice, telecoms are shifting focus to data, mobile money, m-commerce and other value add services to attract customers.

In Uganda, six operators namely, Mobile Telecommunications Network (MTN) – a South Africa led consortium, Uganda Telecom Limited (UTL), Orange Telecom Uganda, Airtel Network Uganda, Waridi Telecom and I-Telecom run the show in the market which had 14 million mobile phone users as at June.

South Africa’s MTN Rwandacell and TIGO Rwanda Ltd were the main players in the sector, which is among the fastest growing in Africa, until Bharti Airtel Rwanda broke the duopoly with its launch in March. Rwanda has about 4 million mobile phone subscribers with projections of hitting 6 million subscribers by 2015.

Since 2009, when the first of four undersea fibre optic cables went live in Kenya bringing broadband Internet connectivity to the region, communication and business transactions have changed with growth of e-commerce.

Kenya’s ambitious Konza Technology City, a 20-year US$14.5-billion project of what will be become the “Silicon Savannah” is set to create numerous opportunities. The project to be established on 5,000 acres in Machakos County, 60km from Nairobi, which will comprise of a technology park, university campus, international business district Science Park, and residential properties is bound to open a plethora of opportunities.

Tourism

The land of the Safari – East Africa has always proven its tourist magnet status. Thanks to the regions sandy beaches along the Kenyan Coast, favorable weather patterns, game parks that are home to different species of wild animals and birds, rich history, diverse culture and exotic islands like Tanzania’s Zanzibar and Kenya’s Lamu and Malindi. All these and more have been the major factors ensuring a constant tourist throng to the horn of Africa.

Kenya earned Ksh. 98 billion (US$11 billion) from tourism revenues last year after attracting 1.26 million tourists. In Uganda, the sector, which contributes nearly 26 per cent of the country’s total exports earnings, brought in US$600 million in 2010. By the end of the third quarter of 2011 tourism earnings in Rwanda was estimated to be about US$183 million while in Tanzania, the sector brought in US$1.3 billion in 2010.

Some of the leading investors in the region include The Serena Group of Hotels which has more than 25 establishments and the Sarova Hotels which boasts of eight facilities across the region. Private Safaris (E.A), Somak Safaris and Pollmans Tours & Safaris lead the pack among tour operators.

One of the key opportunities in the tourism industry is accommodation. Business and conference tourism has been growing steadily over the years as more investors set base in East Africa creating more demand for accommodation facilities.

Italian billionaire Flavio Briatore is establishing a five star hotel at the coastal resort of Malindi in Kenya while Richard Branson last year announced he will be opening a luxury safari lodge in the Masai Mara.

Also read:

Special Feature: Top Investment Areas In East Africa And The Players Exploiting Them

Special Feature: Top Investment Areas In East Africa And The Players Exploiting Them (2)

Special Feature: Top Investment Areas In East Africa And The Players Exploiting Them (3)

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The presence of Chinese shoe companies marks a distinct diversification from the traditional investment of China in infrastructural development and oil sector in African countries.

One of the major investor in the shoe business in Ethiopia is the Huajian shoe factory.

Huajian is one of China’s biggest shoe manufacturers. It plans to invest up to US$2 billion (1.5 billion euros) in Ethiopia to make shoes for export to Europe and North America. Ethiopian government plans to expand the industrial sector by building five more industrial zones throughout the country to attract further foreign investment. When completed in 2014, the US$250 million project will host over 80 factories and create 20,000 local jobs. Currently six Chinese-run factories operate in the zone, including a car assembly plant and a plastics factory.

However, China’s investment in the Ethiopia shoe business is not a one-side affair as Ethiopia also benefits from this bargain by exporting unprocessed raw materials like leather to far away China. Deputy Director of the Eastern Industry Zone, Qian Guoqing, said “The two sides have a commitment; they say ‘you should have something, I should get something.”

Meanwhile, some analysts stated that having a large scale investment in Ethiopia has its risks as its financial benefits are uncertain.

Stephan Dercon, a development economist at Oxford University said, “It’s not a risk-free strategy and it’s not necessarily clear that it will work.”

“The Chinese … take the opportunities now in Ethiopia where they make the trade-off between very high rewards. That’s pretty risky in the first few years of doing this, and we’ll have to wait and see.”

However, to minimise risks and attract investors, the Ethiopian government is offering four-year tax breaks, cheap land and free electricity to investors in the industrial zone.

But there may be trouble in paradise as foreigners complain of poor telecommunications, overbearing bureaucracy as well as the absence of a port in the landlocked Horn of Africa country.

Huajian’s human resource manager, Paul Lu, also cites cultural differences, language barrier and poor work ethic among the locals as a problem. Yet he said the availability of labour and raw materials were key attractions.

“We came to make shoes and we had to consider the resources — Ethiopia is very rich in leather,” said Paul.

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Agriculture is the back bone of East African economies contributing significantly to the country’s Gross Domestic Product (GDP). For instance, PricewaterhouseCoopers Kenya (PwC) estimates that the agricultural sector contributes about 30 per cent of Kenya’s GDP and more than 60 per cent of the country’s total export earnings. Agriculture is also the biggest driver of employment with more than 75 percent of population engaged in the sector directly or indirectly.

Coffee is one of the major export earners for countries in East Africa with exports being made to the US, Europe, Japan and South Korea.

In 2011, data from the Kenya National Bureau of Statistics show that Kenya’s coffee earnings rose to US$200 Million in 2010. According to the Uganda Coffee Development Authority the country earned US$36.2 million from 244,319 bags of coffee exported in February.

Coffee is Burundi’s top foreign exchange earner employing ten percent of its entire population. The country earned US$2.4 million in the month of January 2012 in coffee exports.

Tea, another major foreign earner, brought in approximately Ksh. 109 billion (US $1.3 billion) last year for Kenya which is the world’s largest exporter of black tea. United Kingdom, Egypt, Sudan, Afghanistan Pakistan and China are Kenya’s major markets for tea. Burundi earned $1.41 million last year from the export of 560,353 kg of tea.

Data from USAID Kenya Horticulture Competitiveness Project (KHCP) show that horticulture which is Kenya’s leading source of foreign exchange brought in US$905.2 million last year in export earnings. In Rwanda horticulture export earnings for 2011 hit US$3 million.

Key investors in the sector include Uganda’s Madhvani Group of Companies which has several businesses in tea and horticulture, fruit processor Del Monte Kenya Ltd, dairy experts New Kenya Cooperative Creameries, and Brookside Limited, Tanzania Tea Packers Limited, Afri Tea and Coffee Blenders( Tanzania), Uganda Tea Corporation Limited, Sasini Tea (Kenya), Unilever Tea Kenya (UTK) Williamson Fine Teas Limited (Kenya), and Farmer’s Choice which specializes in pork, beef, lamb and processed poultry product. Indian firm Jay Shree Tea & Industries (JTIL) is in advanced stages of acquiring tea estates in Rwanda and Uganda.

There are existing opportunities in agriculture especially in financing of agricultural projects, value addition of farm produce, machinery and farm equipment and organic farming. With more than half of the regions arable land still unutilized, investors can make huge gains by tackling the major challenge of unreliable rain through the use of irrigation and water harvesting methods among other new farming technologies.

Infrastructure

Poor infrastructure has for years stood on the way of development of most countries in East Africa. Perhaps the biggest project in Kenya and the region is the multi-billion dollar Lamu Port South Sudan Ethiopia Transport Corridor (Lapsset). The U$23bn port and oil refinery project in Kenya’s coast linking Lamu to South Sudan and Ethiopia was launched this year and will be completed in four years.

The biggest beneficiaries of the wave of new infrastructure in the region of course are Chinese firms contracted to construct roads and rail networks across the region. Lately, Chinese investment in the region has been immense. For instance, one of the major construction projects in Kenya is the 30 km Greater Southern Bypass being undertaken by the China Road and Bridge Company (CRBC) at a cost of approximately Ksh. 17 billion funded in part by the Government of Kenya and a concessional loan by the Chinese Government. The CRBC has also been contracted for the construction of the Ksh. 8.5 billion 39-km Eastern bypass and the 31-km Northern bypass expected to make Kenya a regional commercial hub. CRBC will also undertake most of the construction of the Northern Corridor Transport Improvement Project (NCTIP) funded by the World Bank Group’s International Development Agency (IDA) covering road and air transport which will link Kenya to the rest of the region.

In Sudan, Sino Hydro Corporation is undertaking a US$300 million contract to construct a 486 kilometre road. Uganda has also in recent years put efforts to improve its national road network and transit corridors. After all, Uganda’s infrastructure is critical not just to its people but also to neighboring states, Rwanda, Burundi and southern Sudan which are landlocked.

Rwanda’s infrastructure was shattered by the 1994 genocide but the country has since undertaken projects to improve its infrastructure network. Last year, the Government kicked off the construction of a five kilometres roads in Rubavu town expected to improve trade with the Democratic Republic of Congo (DRC) which will be financed by the European Union.

Whilst CRBC has clinched most of the contracts, some of the other firms active in infrastructure in the region include Chian Wuyi Co Ltd and Shengli Engineering Construction Group Company.

There are more opportunities in the construction, upgrading and modernisation of roads, air, electricity, and rail networks in the region.

Also read:

Special Feature: Top Investment Areas In East Africa And The Players Exploiting Them

Special Feature: Top Investment Areas In East Africa And The Players Exploiting Them (2)

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