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UBA Group Appoints Tony O. Elumelu as Chairman
August 27, 2014 | 1 Comments

tony-elumeluMr Elumelu is Chairman/CEO of Heirs Holdings (http://www.heirsholdings.com), the pan-African proprietary investment company, which he founded in 2010 and which holds stakes in a number of leading African businesses, including Nigeria’s largest conglomerate by market capitalisation, Transcorp, and UBA.  Elumelu retired as Group Managing Director and CEO of UBA in 2010, following the introduction by the Central Bank of Nigeria of 10 year tenure limits for bank CEOs. He had served as CEO of the UBA Group for 13 years, where he was responsible for the creation of today’s UBA – a financial services institution that built a reputation for innovation and the democratisation of banking services and now spans Africa, providing services to more than 10 million customers across the continent and in London, Paris and New York. Widely regarded as one of the leading business figures in Africa, Elumelu has developed a reputation for identifying value and bringing a long term investment orientation and discipline to sectors critical to Africa’s development, including financial services, power, oil and gas, agribusiness, real estate and hospitality. As the founder of the Tony Elumelu Foundation, an Africa-based and African-funded philanthropic institution, Mr Elumelu is committed to the promotion of entrepreneurship in Africa, based on his championing of Africapitalism, the philosophy that the African private sector is the critical enabler of the continent’s economic and social transformation. The Chairmanship of UBA will complement Mr Elumelu’s existing positions with other Heirs Holdings’ portfolio businesses, including the Chairmanship of Transcorp, Nigeria’s largest listed conglomerate by market capitalisation. “Tony Elumelu’s track record at UBA speaks for itself. His return to the Board brings a depth of knowledge and experience of the African financial services industry that is second to none. We are privileged to have him lead the Board at this critical stage in our development,” said Mr. Phillips Oduoza, Group Managing Director/CEO UBA. With operations in 19 African countries and a presence in New York, London and Paris, UBA is one of the largest financial services institutions in Africa. The Bank recently unveiled its Project Alpha, a 3-year road map of key transformation initiatives, designed to consolidate the Group’s strategic positioning and fully exploit the opportunities provided by Africa’s economic renaissance and the UBA Group’s unique platform. “I am very much looking forward to returning to the Group – UBA represents a tremendous investment opportunity, and is at an inflection point in its growth path. We have an extremely powerful executive team and I am looking forward to bringing my experience and energy to guide UBA’s long term strategy.  Financial services remain one of the key drivers of African growth, both in terms of social inclusion and regional integration, and the UBA Group provides a unique platform to deliver both extraordinary value and drive Africa’s economic success.” ”I would also like to thank my predecessor, Ambassador Keshi and the entire board for their contributions to the growth and development of the bank” said Mr Elumelu. Tony Elumelu Profile Tony O. Elumelu (http://www.tonyelumelu.com) is an entrepreneur and a philanthropist. Born, raised and educated in Africa, Mr. Elumelu has been responsible for creating businesses across the continent, in sectors critical to Africa’s economic development. In 2010, he founded Heirs Holdings, an African investment holding company, with investments in financial services, power generation, oil and gas, agribusiness, real estate and hospitality. In the same year, he established the Tony Elumelu Foundation, an Africa-based and African-funded philanthropic institution dedicated to catalyzing entrepreneurship across Africa. He is Chairman of Heirs Holdings as well as UBA Group Plc and Transcorp Plc, which is Nigeria’s largest listed conglomerate. Mr. Elumelu is the author and leading proponent of “Africapitalism,” an economic philosophy which advocates for the private sector’s commitment to Africa’s development through long-term investment in strategic sectors of the economy, that drive economic prosperity and social wealth. In 2013, Mr. Elumelu received the Leadership Award in Business and Philanthropy from the Africa-America Institute Awards. He was also named African Business Icon at the 2013 African Business Awards. Mr. Elumelu presently serves as a member of the Global Advisory Board of the United Nations Sustainable Energy for All Initiative (SE4ALL) and USAID’s Private Capital Group for Africa Partners Forum. *Shared by APO   ]]>

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Afriwise Consult Unlocks Value of Local Expertise in Africa
August 27, 2014 | 0 Comments

Olivier Binyingo Olivier Binyingo[/caption] South-Africa, August 26, 2014/African Press Organization (APO)/ – Two well-known lawyers on the African scene, Steven De Backer and Olivier Binyingo, recently launched Afriwise consult (http://www.afriwise.com) to offer clients a more holistic consulting approach and access to genuine on-the-ground expertise in Sub Saharan Africa, with procedures for quality assurance and a strong underlying ethical culture. Having worked together for a number of years, both as local and regional counsel on the African continent, they recognized the opportunity for a different kind of professional services firm. Afriwise is launching a groundbreaking consulting model for Africa, designed to assist clients with advice that is genuinely tailored to situations and local environments in African countries, through collaboration between the best African experts. Afriwise consult provides one point of contact for private and public organizations that need legal, tax, transaction, risk and management consulting services in Sub Saharan Africa and teams up with the right professionals to deliver solutions that work. Africa’s rapid growth has captured the world’s attention, triggering unprecedented business interest and investment. Sub Saharan Africa is now perceived to be one of the world’s greatest opportunities for corporate expansion. At the same time not all the countries are moving at the same pace and Africa remains a diverse and complex continent, with different countries presenting different challenges and obstacles. Afriwise consult is dedicated to helping organizations navigate through these increasingly complex legal, regulatory, tax and socio-economic environments in Sub Saharan Africa. For that purpose it has constituted a core team of experienced Sub Saharan Africa focused consultants with diverse skills and expertise across a broad range of industries. The team comprises business lawyers, tax advisers, risk advisers and management consultants. “Traditional solutions often don’t work in African markets” says Olivier Binyingo. “There is a need for flexibility and creativity when tackling country specific challenges, which calls for an interdisciplinary approach. With Afriwise, we try to break free from silo thinking. Taking into account the different angles to a project or a transaction from the outset, in an integrated way, saves time and costs to clients.” In addition to its own core team of consultants, Afriwise created the Afriwise community which brings together top in-country professionals with diverse skills and expertise throughout Sub Saharan Africa. The careful identification and selection of the right local experts and advisers as members of the Afriwise community is really at the core of Afriwise’s value proposition.  The Afriwise community enables the firm to put together tailored teams on each of its clients’ projects and transactions to reflect the required skills and expertise, on-the-ground knowledge and local socio-cultural and language affinity. As Steven De Backer explains, the idea behind adopting a collaborative consulting model for Africa was developed by the two founders over a long period of time: “Africa is not a country but a continent, home to 54 very different countries. Clients have come to realize that understanding local customs, sensibilities and having access to on-the-ground expertise in the markets in which they operate is key. Various advisory firms are adopting different models to try to cater for that need – from hub offices in key jurisdictions to alliances and networks with local firms – but we don’t believe these strategies will enable them to always include the right local professionals in their clients’ engagements. These traditional models are too rigorous for African markets; what you want is flexibility and the ability to partner with the right individuals for each assignment. We have been confronted with this throughout our careers and have thought long and hard about the most suitable model to advise clients properly, which lead us eventually to the concept of the Afriwise community.” “We plan to be quite disruptive to the traditional consulting model”, adds Binyingo. “We are dramatically increasing access to local expertise for clients active in Sub Saharan Africa, in the most affordable and yet integrated way.” Some of the services Afriwise consult offers include legal and tax advisory, risk advisory and management, transaction advisory, corporate governance consulting and specialist advisory services such as strategic advice around market entry, PPP structuring, stakeholder engagement and assistance with putting in place local partnerships and alliances. The name Afriwise is a play on streetwise. Being ‘afriwise’ means having the experience, skills and knowledge but also the awareness and resourcefulness required for success in Africa. Afriwise is also based on core values such as integrity and sustainability. “We strive to deliver projects for our clients which generate value for all stakeholders, adhere to ethical principles and demonstrate innovativeness and creativity” notes De Backer. “We encourage everyone with a passion for the African continent to use the #afriwise hastag on social media to promote ‘afriwise’ solutions and concepts”. Afriwise consult (http://www.afriwise.com) is a multi-disciplinary and Sub Saharan Africa focused consulting firm providing services to companies, governments, project developers and development organisations. Afriwise’s value proposition combines deep insight into the dynamics of local markets in Africa with a practical and solution-oriented mindset and a strong underlying ethical culture. To achieve this, Afriwise consult has hired a number of seasoned professionals with backgrounds in law, tax, risk advisory, banking and management consulting in Africa who team up, in a seamless way, with the right in-country professionals in Sub Saharan Africa when working for clients. These local professionals are generally members of the Afriwise community, a unique pool of like-minded experts who have formalized arrangements and collaborate with Afriwise consult to deliver value. Afriwise consult’s central management team is headquartered in the offices of Afriwise Consult (PTY) Limited in Johannesburg, South Africa. *Shared by APO ]]>

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The impact of Movitel on ICT in Mozambique
August 27, 2014 | 0 Comments

By Nguyen Thai Khang* 188-photo-8Arriving in Mozambique when the telecom infrastructure was very limited and only 35% of the population was accessible to the telecommunication services, Viettel – the Vietnamese leading telecommunications – has endorsed an initiative to popularize telecom services in rural and under-served areas in Mozambique. This initiative regards telecom provision as a commodity, which should be accessible regardless of geographical location or financial capacity. The company has invested in a network, service support and introduction of social programs to enable telecom services accessible to rural Mozambicans, as part of improving their overall lives and become its customers. Viettel aims at a sustainable social development and benefit both customers and the company by bringing mobile phones to every Mozambican and broadband Internet to every Mozambican family. Two years after the initiative was implemented, Movitel – the joint venture between Viettel and Mozambique’s SPI Company has built 2,800 2G/3G base stations and 25,000 km of fiber optical cables covering 100% of districts and highways, serving nearly 80% of the Mozambican population. In rural areas, by the end of 2013the company has increased its coverage area from 60% to 85% and doubled the number of covered people from 35% to 75%. In addition, to address the difficulties incurred due to limited transportation infrastructure, Movitel developed a diversified distribution channels comprising of 153 shops, 12,600 agents and points of sales and nearly 4,000 direct sales staffs to deliver door-to-door services in every village. Nearly 600,000 people in at least 5rural districts have been covered and served telecom services for the first time in life. Tariff plans have been tailored to be affordable and flexible for different groups. For instance, farmers were offered zero entrant fee with top up denomination of any value in addition to subsidizing handsets while the youth could enjoy services such as i-Muzik, Missed call alerts, Call me back, daily news, horoscopes, etc. Never before is it easier for Mozambican to use telecommunications services than it is now with Movitel. 1240-movitelMoreover, Movitel is considerably contributing to changing the information communication landscape in Mozambique thanks to its strong network infrastructure. Movitel now accounts for 70% of the country’s fiber optical cable infrastructure and 50% of the mobile phone network infrastructure, bringing Mozambique among the top three nations in terms of fiber optical cabling infrastructure in Sub-Saharan Africa (along with South Africa and Nigeria). The country now has a strong and modern infrastructure through this, in addition to the latest DWDM technology and 20Gbps bandwidth. The infrastructure enables Mozambique’s telecommunication industry to implement the e-government and develop ICT applications in the education and healthcare sectors for socio-economic. Especially, considering investment in education as an investment for the future and the knowledge base of a country, Movitel has introduced “Internet connection to schools” program to supply free broadband Internet to 4,200 schools nationwide. Up to the end of 2013, 2,500 schools was connected with Internet, helping millions of teachers and students have access to the world’s sources of information for a better education. Besides, the company also supports Mozambican government to implement e-government program to bridge the digital gap between rural and urban areas. Recently, Movitel, SA has become the only telecom operator in Africa in 3 consecutive years winning reputable prizes from prestigious international organizations by winning the Best Mobile Innovation Award – the most notable prize among the 18 others of the Mobile Innovations Awards. Formerly, it won the Rural Telecom Award of the AfricaCom Awards in 2012 and the Competitive Strategy Leadership award by The American Research and Consulting firm Frost and Sullivan in 2013. These awards are all a praise of the tireless effort of Movitel in enhancing the people’s lives and its contribution to the ICT development of Mozambique. *In partnership with APO  ]]>

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Ghana's talented but ignored inventors
August 24, 2014 | 0 Comments

A father and his pilot son in a country with no history of manufacturing are making products that will stun the world.   By * [caption id="attachment_11350" align="alignleft" width="300"]Kantanka brand of SUV that is ready for the market Kantanka brand of SUV that is ready for the market[/caption] Accra, Ghana – Imagine having a television set that comes on after an effortless clap or by blowing air; picture yourself in a car that is engineless and starts with a simple push of a button tucked to your dress; or a change-over-machine that speaks and tells you where exactly a fire or electrical fault is in your home. This is not fiction. It is not magic. It is not happening in Europe or Asia and not even in the United States. These products are being manufactured in the West African nation of Ghana. The brains behind this is Apostle Dr Kwadwo Safo, owner of the Kantanka Group of Companies. He is naturally gifted. A genius. An inventor and a philanthropist. He has no formal or sophisticated technical background. He imagines, dreams and creates at will. He lives in his own world. It takes about 45 minutes from Accra, the capital, to reach his “city” at Gomoa Mpota in the central region of Ghana. It is set apart from the hustle and bustle of cosmopolitan Accra. His flag – blue, red, yellow and white stars embossed on the blue hue – constantly flies at a junction on the highway you reach after going past beautiful green landscapes that lead to his location. It is a large tract of land. The buildings are huge. The ambiance is engaging. It has a natural touch and feel, complete with tortoises – the oldest is 40 years – and a porcupine, evidence of Safo’s love for nature. Engineless car A large African map showing a picture of Apostle Safo spinning a ball imprinted with pictures, a huge star beneath it and a miniature aircraft welcome visitors. It takes close to two-and-a-half hours to tour his complex in a car. His son, Kwadwo Safo Jnr, a commercial pilot who acquired his licence at age 19, welcomed Al Jazeera. He is the group’s chief operations officer. After driving past the tortoises, the first point of call was a workshop where a chopper was being manufactured alongside a hand-made engineless five-seater vehicle. Safo Jnr said they will ensure there is no risk in test-flying the chopper and explained how the engineless car will work. [caption id="attachment_11351" align="alignright" width="300"]A Kantanka brand of SUV that has gone through testing and is ready for the market A Kantanka brand of SUV that has gone through testing and is ready for the market[/caption] “The non-engine vehicle does not rely on a combustion engine to move, but an electric motor powered by rechargeable batteries,” Safo Jnr told Al Jazeera. “The batteries can be recharged with solar energy or electricity. As you drive the car on the road, it converts the energy from the sun into mechanical energy which powers the car. “We do everything here. For the engineless car it is only the lights and the tyres that were bought. Everything else from moulding [parts], among others, was done by our local people.” A peacock bade us goodbye from that section, then three zebras smiled at us as we drove on an untarred road towards the colossal buildings on the outskirts. They are four in all, neatly painted and look abandoned when viewed from a distance. The structures serve as the assembling plants for the yet-to-be unveiled Kantanka range of commercial vehicles – sports utility vehicles (SUVs) and pickup trucks. Although some car parts are imported, assembling the more than 1,500 pieces for a car and spraying are done by about 20 young men between the ages of 16-25 years. Amazingly, they have no formal training in building a car. “Most of them are junior and senior high school leavers. The people who are actually racking their brains here to make things work have never been to school before,” Safo Jnr said. Six to 10 cars can be assembled and be ready for the road in a day. Four had been completed and tested by the time Al Jazeera visited. It is hard to tell they were actually assembled in Ghana, save for the Kantanka crown and inscription at the back. Market plans  “We are hoping to increase the number to 12 or 15 daily when we go commercial soon,” Safo Jnr said. “We have delayed … going commercial because Africans and Ghanaians in general have the perception that once it is from Ghana, it is not good – durability is not assured, safety is not guaranteed. So we have decided to use the products ourselves and make sure they are good to go and standardised before we hit the market. “I was in Brazil about six months ago and I was in tears. The whole of Rio de Janeiro was packed with Marcopolo buses … and these are buses that were assembled and made in Brazil. [caption id="attachment_11352" align="alignleft" width="300"]A finished Kantanka vehicle at the speed testing unit of the manufacturing plant A finished Kantanka vehicle at the speed testing unit of the manufacturing plant[/caption] “They patronise it. In India they encourage made-in-India vehicles – Mahindra and Picanto, etc – and that’s my dream to one day see Kantanka cars on the streets of Accra, Kumasi and all over. I will be fulfilled,” a visibly euphoric Safo Jnr pointed out in his office fitted with a locally made air-conditioner that is switched on and off by slotting in a card. The card in the air-conditioner, explained Safo Jnr, works like one used for an ATM. It is programmed to start the air-conditioner, regulate the temperature and can tell the time when the unit should be turned off. It is multi-functional, he said. Difficult questions  While hugely ambitious and a potential source of pride for a country that is only known for its gold, cocoa and lately oil, the Kantanka project still raises major questions. Who, for example, will buy SUVs in a country where the average income is $1,400 and where just about everyone drives a used car? Do the carmakers perform crash tests, and will they meet the high standards of cars made in Europe and Asia? “We will be doing that in the course of our manufacturing process,” said Safo Jnr, referring to crash tests. The cars will be “affordable” and middle-income earners will be able to buy them. “We know the market and we can assure you that Africans will be able to buy our cars,” he said. In some countries projects such as this attract financial assistance from the government. But Ghanaian governments upon governments seem to have ignored the “Star of Africa”, as Apostle Dr Safo is called by the people of Ghana. Not even his self-made Limousine dubbed “Obrempong”, the speaking change-over-machine, or a range of flat-screen television sets made with wood covers that respond to a simple clap to come alive, increase or reduce volumes have fascinated the government enough to support one of their own. Determined to succeed  The Safo family is undaunted though. [caption id="attachment_11354" align="alignright" width="300"]Kwadwo Safo Jnr making a point in an interview with jounalist Kent Mensah Kwadwo Safo Jnr making a point in an interview with jounalist Kent Mensah[/caption] “Most of the promises they have made, they say they are in the pipelines. I’m sure African pipelines are very choked so the water is not flowing. Not even the corporate world has shown concern … We are still hoping,” said Safo. “We have had several offers from Asia and Europe, but we turn them down because we just want to stay in Africa and make sure that whatever we are doing here we’ll be able to achieve our dreams. “People tell us that we are wasting our time because we won’t get anywhere. But we pay no attention to them, rather we make sure that we prove them wrong by meeting targets that we set for ourselves.” The US-trained young pilot is optimistic about the future. For him, it is a matter of trust and belief in the African. “The whites believed in themselves and got to where they are now. They are no different from us. We all stayed in our mothers’ womb for nine months … If you cut a white and a black man you get blood. The only differences are our names and colours,” he said. “So we should believe in ourselves. We must reduce the talking and put in work.” *Source Al Jazeera .Photos by ]]>

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US-Africa Summit: What post agenda for West Africa?
August 24, 2014 | 0 Comments

By Emanuele Santi and Mohamed El Dahshan* [caption id="attachment_11342" align="alignleft" width="275"]President Yaya Boni of Benin and US President Barack Obama at the recent Summit in Washington,DC President Yaya Boni of Benin and US President Barack Obama at the recent Summit in Washington,DC[/caption] As the largest-ever US-Africa gathering of leaders came to a close, the debate on the future of the US policy for Africa has once again resurfaced. While interesting suggestions are put forward by economists and other experts – this argument by the Center for Global Development on closing the energy gap is among the most interesting – it may however be judicious if, rather than hope for a new grand scheme to be implemented, we take a deeper look at the existing US economic policies and instruments towards Africa, and analyze their effect on the West African region. The flagship economic policy of the US-Africa policy as it stands is the African Growth and Opportunity Act (AGOA), by which the US decided to incentivize African countries to open their markets and partake in global trade, by offering to eliminate import duties on over 6,400 products exported from 38 eligible Sub-Saharan countries, including all 15 West African nations. Indeed, US President Barack Obama had vowed, in a 2013 press conference in Senegal, that the AGOA programme would be “renewed and improved”. The programme indeed stands to be greatly improved. For one, the yearly renewal of AGOA appears to present some difficulties for investors in terms of investment planning and diverting resources to AGOA-compliant exports. As such, a number of African ambassadors to the US drafted a proposal suggesting AGOA be renewed for 15 years. As displayed in the table below, which details the yearly exports from AGOA beneficiary countries to the US over the past 10 years, few countries appear to have benefited from the preferential access, with Nigeria and, to a lesser extent, Côte d’Ivoire, far ahead.

  2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1
Nigeria 16,267 23,801 27,709 32,373 37,756 18,753 27,884 32,348 18,179 11,122 973
Côte d’Ivoire 697 784 552 545 710 696 926 1,069 1,083 932 543
Ghana 138 154 191 197 177 132 250 748 257 306 69
Guinea 64 74 91 95 105 67 90 80 103 90 27
Liberia 84 91 130 115 143 78 155 158 144 93 18
Sierra Leone 9 9 35 47 46 23 27 23 15 39 12
Senegal 2 3 18 12 16 6 4 6 16 16 5
Togo 1 6 4 5 11 7 9 31 50 7 3
Benin 1 1 1 5 16     2 3 3 2
Niger 15 61 117 8 43 105 26 288 81 2 1
Burkina Faso   2 1 1 1 2 2 3 2 6  
Cape Verde 3 2 1 2   1 1 1 1 1  
Gambia             3        
Total 17,281 24,988 28,850 33,405 39,024 19,870 29,377 34,757 19,934 12,617 1,653
Table 1.Combined AGOA Exports to the United States (including GSP), million USD Source: AGOA.info portal, based on United States International Trade Commission data.
The profile of AGOA trade shows that a massive concentration on the oil and gas sector. In the first quarter of 2014, for instance, African exports under AGOA totaled $3.4 billion; a whopping 74% of those being petroleum products. Non-fuel products, worth $890 million, were almost exclusively raw materials, mostly agricultural products. During that same period, West African countries exported $926 million worth of goods under AGOA only – a figure rising to $1.653 billion if we were to include duty-free exports under the WTO’s Generalized System of Preferences (GSP) as well. Table 2 and the accompanying graph break down the latest figures on exports to the US under AGOA, by sector, for a clearer idea of the relative importance of export sectors.
Product Value (USD) Percent
Oil and Gas $22,781,896,155 59.80%
Primary metal manufacturing $3,063,465,495 8.00%
Petroleum and Coal products $2,683,498,920 7.00%
Transportation Equipment $2,528,074,222 6.60%
Miscellaneous manufactured commodities $1,679,184,263 4.40%
Agricultural products $1,315,531,485 3.50%
Apparel manufacturing products $921,160,903 2.41%
All Others $3,139,099,559 8.23%
Total $38,111,911,002 100%
 
Table 2: US Imports from AGOA Beneficiary countries, by sector, 2013
Source: US Government trade statistics, Department of Commerce.
Of particular relevance to West Africa is the opportunity to export textile and apparel – a sector clearly marginal in the AGOA export product mix to date, despite its great potential. West Africa is the second-largest regional group exporting cotton, providing 11% of the world trade in the commodity; a major source of agricultural income, it provides up to 12.7% of the agricultural value-added in Mali, 7% in Burkina Faso – most of it to smallholder famers. Yet 83% of Sub-Saharan African cotton is exported as lint; and disparities between countries mean that transformation rate decreases further, reaching only 5% in francophone Africa. Moving the African cotton and textile sector up the value chain has the potential to transform many countries in the region – and improve the livelihoods of millions. The Africa Investment Incentive Act of 2006, which amended the textile section of the AGOA, stipulates the rules governing the textiles to be granted duty-free access to the US were generally generous. More importantly, the quotas determined for those good were never filled by the beneficiary countries. In fact, in 2012-2013, the export quota was only filled to 12.59% under AGOA; the year prior, 10.14%. Thanks to the wealth of raw material and the geographic proximity of the sub-region to the United States, the textile and apparel industries could be key to break the dominance of raw materials on West Africa’s exports under AGOA. For this to happen however, investment are needed in energy and transport infrastructure, which represent today two major bottlenecks to the development of the sector. In many countries of the region, energy costs are significantly higher than in the rest of the continent, largely due to expensive delivery and inconsistent supply, forcing people to rely on more expensive backup energy sources. Transport costs are also often noncompetitively expensive, due both to weak infrastructure and inefficient logistics, administrative delays, and corruption. The US initiative Power Africa could also play a complementing role to accompany the country in such needed reforms. Finally, the cotton and textile sector also requires a better comprehension of the value chain, improved capacity of cotton-related organisations, and a new regional strategy for sharing knowledge, skills, and sourcing of materials and technology. This must be complemented by a promotion policy aimed at familiarizing potential customers with West African cotton and textile products. The rising outlook on cotton prices gives West African countries ample room to enact their long-planned market reforms and investments in ginning facilities. *Source afdb
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Designer shuns medical school to build 'jewelry empire'
August 23, 2014 | 0 Comments

Monique Todd* [caption id="attachment_11305" align="alignleft" width="640"]Janet Fredman Designs is a jewelry retailer specializing in contemporary accessories. Utilizing natural resources such as seeds, wood and leather, Fredman creates unique pieces that encapsulate the raw beauty of Zambia. Janet Fredman Designs is a jewelry retailer specializing in contemporary accessories. Utilizing natural resources such as seeds, wood and leather, Fredman creates unique pieces that encapsulate the raw beauty of Zambia.[/caption] It takes a lot of guts to choose jewelry design over a career in medicine, but then, Janet Fredman isn’t the kind of woman to shy away from challenges. Shunning the prospect of attending medical to follow her creative side, the young entrepreneur went about transforming a passion for handmade accessories into a flourishing design practice based in Zambia’s capital, Lusaka. Despite the country’s rich offering of gold and gemstones, Fredman opted for everyday materials such as wood, seeds and leather to make her pieces. The result is a stunning collection of rings, bracelets and necklaces that translate the beauty of Zambia into wearable art. “[When] I started first making jewelry, it started as a hobby”, recalls Fredman. “I started making jewelry out of beads, and then later went to study as a goldsmith.” She adds, “after studying, I came back and then what I learned as a goldsmith I incorporated it with Zambian materials to make contemporary Zambian jewelry.” A visit to a Cape Town jewelry shop further inspired Fredman to dive headfirst into her new venture, and since January 2014, the business has provided both a rewarding and challenging experience. Still in her 20s, Fredman has impressed many with her success, but establishing a new business at a young age is never easy. “Business has been going OK”, says Fredman. “Sometimes it’s slow and sometimes it’s high — [I’m] still trying to find my way, what to do, the how, the do’s and the don’ts; still trying to figure it out.” [caption id="attachment_11306" align="alignright" width="300"]Fredman hopes her designs will help her business grow into a jewelry empire so that "everyone will be talking about it." Fredman hopes her designs will help her business grow into a jewelry empire so that “everyone will be talking about it.”[/caption] Professional and sleek, Janet Fredman Designs has the appearance of a high value retailer — but it’s this very quality that has led some people to question the legitimacy of her work. “They’re like ‘you’re young, did you really make this?’ or ‘maybe you bought and maybe you’re selling'” she says. Nevertheless, Fredman remains unfazed. In fact, the talented designer shows no sign of slowing down. “The hopes for my business is to grow it, so it becomes an empire, a jewelry empire everyone will be talking about.” *Source CNN]]>

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'Made in China' Now Being Made in Africa
August 23, 2014 | 0 Comments
[caption id="attachment_11316" align="alignleft" width="800"]Mohamed Nureldin Abdallah/Reuters Mohamed Nureldin Abdallah/Reuters[/caption] The cost of labor in China is going up, so Chinese manufacturers are moving to Africa, and they’re playing all the angles.
HONG KONG — Sun Qiaoming is a trader from Jiangsu. He operates his import-export business on the Eastern coast of China, where there is plenty of space for a man with his drive and skills to prosper. Already fairly successful, he recently set his sights beyond his country’s borders. “There’s been much talk about the Chinese Dream in the past few years, but I have an African Dream.” he said. “African gold will fill my next bucket of gold.”He wasn’t referring to the natural resources that President Obama recently hinted as the reason for China’s presence on the African continent. After all, Sun is a private entrepreneur, and receives no direct support from the government in his business endeavors. His “gold” is the labor in Africa—cheap, trainable, abundant, and ready to work. They may not have the decades of know-how that the Chinese developed during their meteoric rise in global production, but Sun is confident that with time and proper training, they will be able to match the efficiency and productivity of workers in China. With rising labor and energy costs, as well as tightening environmental restrictions, it is becoming increasing difficult for Chinese industrialists to churn out cheap goods at a massive scale in their own country. Even as fresh university graduates suffer a high unemployment rate, few want to take jobs on factory floors. “The post-90s generation wants office jobs, not blue collar work,” Sun explains. “It’s understandable. Life is much easier now. Factory work is stable but I want my children to have other options.” The result is an exodus of Chinese manufacturing to places where labor is cheaper and financial incentives like capital subsidies are offered to foreign-owned factories. But vibrant industry requires solid infrastructure, which is where the Chinese government enters the equation. Last year, over 214,000 workers were posted in Africa to build highways, bridges, dams, and power plants. That’s about a quarter of all Chinese workers who are sent abroad to work for state-owned enterprises. For decades, the Chinese government has had a foothold on the African continent. During the Mao era, the Chinese government funded and executed massive infrastructure projects like a railway connecting Tanzania and Zambia, reaping benefits on multiple levels. Not only does China have access to the wealth of natural resources in a multitude of African countries, the support from those nations was necessary for the People’s Republic of China to gain membership to the United Nations, opening up a plethora of opportunities in international diplomacy and trade. Chinese support in Africa has been on a steady rise in the past 25 years. Trade between China and Africa rose by 700 percent in the 1990s. China’s foreign direct investment in Africa has increased by over 50 percent per year since 2001. Aside from the highly visible presence of state-owned enterprises that take on massive projects, privateers like Sun Qiaoming have been carving out their own commercial fiefdoms as well. In the early 2000s, an acquaintance told Sun about the possibility of doing business in Ethiopia. At the time, Ethiopians still relied on imports from Western Europe for many commodities, most of which were costlier than goods produced in China. As a test, Sun shipped over a container stuffed with apparel made in his home province. After it reached Ethiopia, the contents were distributed and sold out in under two weeks. That marked the beginning of a fruitful long-term relationship with his Ethiopian clients. By utilizing those existing connections, and partnering with another entrepreneur from his hometown, he is in the final stages of planning for a new textile factory near Addis Ababa, joining other Chinese industrialists who have made the move. Even though Sun and his partner plan on using materials and equipment imported from China, all of his factory staff will be Ethiopian. “It’s about adding value locally,” he explained. “Once we hit the 20 or 30 percent mark, our clothes will officially be ‘Made in Ethiopia.’ Then it will be easier for us to sell to the US and EU.” The west puts limits on commodity imports from China. Production relocation to Africa and South America have allowed Chinese enterprises to circumvent trade caps. Sun is one of a small segment of Chinese businessmen willing to take the risk to establish new businesses in far-off lands, but prejudice is still an issue. “My family thinks all of Africa is the same. Just because Libya was evacuated and West Africa is dealing with Ebola, it doesn’t mean business is affected everywhere else,” he said. “But then, as much as I want to work there, I can’t look for a wife—marrying an African is marrying down—so I will need to do that here.” It took a long time for the US government to realize that it is falling behind China when it came to economic engagement with Africa, whether between governments or private enterprises. Eager to catch up, President Obama hosted the recent US-Africa Leadership Summit, but positive attention on cooperation and renewed ties was overshadowed by statements suggesting that China was the elephant in the room. Last week, during an interview with NPR’s Morning Edition, National Security Advisor Susan Rice attempted to point out the differences in how Americans and Chinese do business in Africa, suggesting that Chinese (state-owned) businesses bring in their own workers for projects in Africa, while American enterprises give those opportunities to locals and builds their capacities to maintain the infrastructure once construction is complete. However, Howard French, author ofChina’s Second Continentcontested those words and pointed out that American engagement on the ground in Africa is nearly absent, bringing up examples of American construction projects in Africa that were outsourced to a Chinese firm. As the spin continues, it seems like the scales are tipped in China’s favor. The nation’s investment in Africa polishes its soft power image, and the improved infrastructure benefit the African nations and the many Chinese businessmen they host. Sun is confident about his new venture, and genuine enthusiasm and excitement are packed into his words when he speaks of his upcoming journey. “I love spicy food, and my friends tell me that Sichuan hotpot has become very popular in Addis Abeba,” he said. Even with new beginnings, he won’t be missing some of the comforts of home. *Source thedailybeast
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Mozambique sees $30 bln investment for 2018 LNG exports startup
August 23, 2014 | 0 Comments

By Manuel Mucari* gasflaringMore than $30 billion will be invested initially in Mozambique’s natural gas sector to build capacity to produce 20 million tonnes per year of liquefied natural gas (LNG), with the first exports due to start in 2018, the national oil company said. The investments will be made to develop the northern ports of Pemba and Palma, where a giant logistics base and LNG production plants are planned that will use gas produced from offshore fields in the Rovuma Basin being developed by U.S. oil major Anadarko Petroleum Corp and Italy’s Eni. Mozambique is hoping revenues from its large gas deposits and its fledgling coal mining industry will help it emerge from years of poverty and dependence on foreign donors. “In an initial phase, liquefaction units with a total capacity for 20 million tonnes a year of LNG will be built and operated. The investment to be made tops $30 billion,” Nelson Ocuane, president of the state oil company ENH, said. The initial exports from 2018 will come from a first LNG train of 5 million tonnes a year, with overall capacity for the industry to be ramped up subsequently to 20 million tonnes per year. “Mozambique has good conditions to start exporting in 2018 because all the investment plans indicate that the essential infrastructure will be in place by then,” Ocuane said. Some industry analysts say Mozambique may struggle to meet its target date of 2018 for the start of LNG exports. They say it must develop its LNG potential by the end of this decade as other supplies come on the market from West and East Africa and the global supply/demand scenario shifts, with the United States moving from energy importer to exporter. Enough gas to supply 4 countries for 18 years Around 180 trillion cubic feet of gas has been found in Mozambique’s offshore Rovuma Basin. This would be enough to supply Germany, Britain, France and Italy for 18 years. Italy’s Eni has proposed constructing two floating offshore LNG plants to process gas from its Rovuma Basin area, which would be quicker to complete than an onshore facility. Ocuane said Mozambique’s government was giving technical consideration to the Eni proposal, and would give its answer “in due course”. But he added: “The government prefers the construction of LNG units onshore because this has the potential of creating employment and allowing the possibility of a series of investments in support areas for the gas industry.” Under the new legislation for the sector, foreign operators who win licences to explore for oil and gas must do so in partnership with state oil company ENH. The law also says that 25 percent of all gas and oil produced should go to the domestic market. Mozambique recently set up a public company, Portos de Cabo Delgado, bringing together the state rail operator, CFM, and the national oil company to develop the northern LNG infrastructure. The sub-concession for the Pemba port development has been given to ENHILS (ENH Integrated Logistics Services), a joint venture between ENH subsidiary ENH Logistics, which holds 51 percent, and Orlean Invest, a Nigerian company, with 49 percent. *Source Africa Report/Reuters]]>

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The Needs of African Nations Align well with technology deployed by Vermeer-CEO Mary Andringa
August 21, 2014 | 5 Comments

Vermeer CEO Mary Andringa with Minister of Foreigh Affairs and International Cooperation of Somalia, Mr. Abdirahman Dualeh Belleh at the recent USA-Africa Leaders Summit Vermeer CEO Mary Andringa with Minister of Foreigh Affairs and International Cooperation of Somalia, Mr. Abdirahman Dualeh Belleh at the recent USA-Africa Leaders Summit[/caption] It is a good time for more trade engagement with Africa says Mary Andringa CEO of  Vermeer a global leader in the provision of agricultural and industrial equipment. Currently in South Africa ,parts of North Africa,Nigeria and the D.R.Congo, the needs of African Nations align well with technology that Vermeer deploys around the world ,Mary Andringa said. The CEO of Vermeer was one of the active participants at the USA-Africa’s leaders forum as the company seeks to expand its operations and networks in Africa. With growing emphasis on agriculture,energy and infrastructure across the continent, Vermeer is one of the American Companies which could find a lot of willing partners . What Vermeer is looking for are the right people with the interest in learning the technical side of equipment solutions and providing customers with premium services when it comes to parts,services and technical knowledge,Mary Andinga said. In a show of confidence against competition , Mary Andringa said the level of support differentiates Vermeer from others as her Corporation does not just sell equipment and leave but also places much emphasis on the productivity and profit of customers. In technology and support, Vermeer has what it takes to compete and do better than some of the Chinese companies she said. Your company was actively present at the recent USA-Africa Leaders Summit, what impressions did you leave the summit with? It is a good time to become more engaged with trade for Africa. With the emphasis in Africa on power and communications, clean water, etc. the needs of many African nations align well with the technologies we have been deploying around the world. In what parts of Africa is Vermeer presently doing business in and how has the experience been so far? We are doing a lot of work in S. Africa and parts of Sub Saharan Africa. The experience has been good. We work through focused Vermeer dealers. Our dealer in S. Africa has been excellent in supporting customers. We  have worked in Northern Africa on some project deals.  We are also involved in surface mining in the DRC. What exactly has been holding back your company and in a broader sense American companies from investing in Africa? Finding the right people to represent Vermeer who are willing to learn about the technical side of our equipment solutions and understand the expectations for taking care of customers with parts, service and technical knowledge. We also need people we can trust and who are ethical in their work practices. The massive presence of African Leaders was probably an indication of willingness to do business with the USA; did you leave with the conviction that some of the issues which have discouraged companies like Vermeer from investing in Africa will be addressed? I was much more confident that issues of transparency and working in an ethical manner are priorities for African governmental leaders and leaders of businesses. The growth of American business in Africa comes at a time when countries like China are all over the place, what strategy does Vermeer have make inroads in the African market in the face of competition? mary.andringaWe focus on trying to make a real impact on our customers’ productivity and profit. Therefore we are not just selling equipment and then leaving with no followup. We want our customers to be very successful in using our solutions. Therefore our level of support really differentiates us. I believe with our technology which helps improve infrastructure, and manage natural resources we have some great solutions for the variety of infrastructure projects going on in Africa. And our technology and support can help us compete against Chinese and other competitors. As a follow up to that if you were asked to articulate the case on why Africans should opt for business with American companies, how will you sum it up? As a US company, I would ask African companies to look at who can give them the most value. They need to consider not only the initial purchase price of solutions, but how are they going to be supported in their work.  A major concern has been a lot of the companies which come are all about profit, with little care to communities or social initiatives, what does Vermeer has as a policy to help worthy development causes in the community besides business? Our history in the US has been one where we have given back to our communities for over 6 decades. As we do work internationally where we have entities, our team members have given of their time to be involved in various community projects—like volunteering time in orphanages, raising money for good causes, etc. But as important is helping our customers be productive and profitable so they gain more work and provide good jobs for local citizens.  In Africa our dealership has aided in several projects where a compressed earth block machine (with ties to Vermeer) has been used to build structures for not of profit organizations. May we have an idea on the post summit plans of Vermeer for its investments in Africa, how soon before we see the next steps in your company’s expansion to Africa? Vermeer_D16x20A_Navigator_horizontal_directional_drilling_machine_(1)We are intent to continue on working on a plan which we started a year ago. We have added a person from our European office to focus totally on new markets in Africa. He has conducted several educational seminars in Ghana on using trenchless technology to install electrical lines or fiber without cutting streets and disrupting traffic. We will continue to focus on this type of education and connection where there are power or fiber projects.  We are also hoping to be more intentional about involvement in MCC projects in Africa. A last question, how does the USA strike a balance between corporate interests in Africa and values like democracy, good governance and democracy? We are just getting to know the MCC organization, but their filter for where money is invested may be the model for how the US strikes that balance—looking for democracy, good governance and supportive local government and private enterprises. For more on Vermeer and its products click here]]>

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Gearing up for the grand finale of AfDB’s 50th Anniversary
August 21, 2014 | 0 Comments

indexThe African Development Bank (AfDB) marks its Golden Jubilee this year. The grand finale of the year-long celebrations is scheduled to take place November 4, 2014 in Abidjan, Côte d’Ivoire.

The Bank’s 50th Anniversary coincides with the development finance institution’s return to its headquarters in Abidjan, after over a decade of relocation to Tunis, and gives the celebrations a double significance. As it looks back on the past 50 years, the African Development Bank has much to celebrate. Since its inception it has marked four milestone celebrations. It was in November 1964, that the Bank held its first Board of Governors’ Meeting in Lagos, Nigeria. That was barely four years after most of the founding nations had attained their political independence. Today, worthy tributes are paid to the founding fathers for their vision for United Africa. Monrovia, Tunis, Khartoum all played important roles in the establishment of AfDB, but the Bank’s existence officially commenced with the inaugural Board of Governors meeting in Lagos in November 1964. The Agreement establishing the African Development Bank was actually signed on August 4, 1963 in Khartoum by the Finance Ministers of the then 23 independent African countries. Fifty years on, and from a very modest beginning, the Bank has grown in stature and maturity, in brand and credibility and its achievements as the continent’s largest financial institution have gone beyond African borders. The 50 years of the Bank’s continuity has become synonymous with 50 years of sustainability and Africa’s economic resilience.   When the Bank marked its 10th Anniversary celebrations in 1974 in Rabat, Morocco, the Bank’s cumulative commitment was barely US $125 million. But there was hope for renewal that year, with decisions relating to the second capital increase and the kick-off of African Development Fund (ADF) operations. The Bank’s 20th Anniversary in Abidjan in 1984 was closely followed by the 25th Anniversary, or the Silver Jubilee, in Abuja in 1989. While the 10th Anniversary celebration saw a Bank in its infancy, the 1984 and 1989 events represented, according to one Bank economist, the take-off stage of the institution. In May 1983, in Nairobi, Kenya, 17 non-regional countries attended their first AfDB Group Annual Meetings as full members. In fact, as a result of the admission of non-regional membership, the Bank’s authorized capital had increased from US $2.5 billion over the preceding 20 years, to US $6.3 billion by the 20th Anniversary. Barely four years later in Cairo, Egypt, in 1987, the Bank had successfully concluded a 200% increase and, by its 25th Anniversary in Abuja Nigeria, the Bank’s attention turned to the Committee of Ten, a group of eminent persons reflecting on the future of the Bank. The Golden Jubilee is therefore a one-of-a-kind celebration. It is not a Silver Jubilee nor is it an Annual Board of Governors Meeting. Rather, the Golden Jubilee is a rare celebration of the African Development Bank’s past, present and future. In 2014, the Bank’s Golden Jubilee provides all stakeholders and friends of the Bank an opportunity to look back with satisfaction through the landmark moments of its past 50 years and to look ahead to the future of the institution and its role in the development of the African continent. Related:AfDB at 50: Paving the way to Africa’s economic and social transformation *AFDB
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Zimbabwe’s Econet Wireless and the making of Africa’s first cashless society
August 21, 2014 | 0 Comments

Anna Leach* [caption id="attachment_11214" align="alignleft" width="460"]Strive Masiyiwa, CEO of Econet Wireless. Photograph: Sarah Lee for the Guardian Strive Masiyiwa, CEO of Econet Wireless. Photograph: Sarah Lee for the Guardian[/caption] Will Zimbabwe be Africa’s first cashless society? Telecommunications company, and now mobile banking service, Econet Wireless predicts that in less than 12 months notes and coins will be long-gone from this southern African country. “We do not expect anyone to still be using paper money in a year’s time,” the company’s CEO Douglas Mboweni recently said. “It will be just like Europe or America, where you no longer see people carrying bundles of cash.” The collapse of Zimbabwe’s economy in 2002 paved the way for Econet Wireless’s mobile payment system. “Hyperinflation had destroyed people’s confidence in financial institutions,” said the Zimbabwe company’s founder, Strive Masiyiwa, at the Mastercard Foundation Symposium on Financial Inclusion in July. “The lowest denomination circulating was $1,” Masiyiwa said. “If you want to buy a packet of sweets for your child, you can’t get change.” The company set up a mobile payment system that handles small amounts and allows people to save as little as $1. “Today 43% of the GDP moves through Econet Wireless,” he concludes. Masiyiwa was born in Zimbabawe (then Rhodesia) in 1961. He and his parents fled the country in the turmoil after prime minister Ian Smith declared independence in 1965, settling in Zambia. His parents, who ran their own business, could afford to send Masiyiwa to school in Scotland when he was 12. After school he studied electronic engineering at the University of Wales and worked briefly for a computer company in Cambridge before returning to Zimbabwe in the early 1980s. Econet Wireless was established in 1998, but not before a fight. Masiyiwa waged a five-year legal battle with the government for a licence to deliver telephone services. The company now operates in 17 countries including Botswana, Lesotho, Kenya, Nigeria, South Africa and New Zealand. In 2000, while the UN filed a civil suit against Mugabe, Masiyiwa moved his family and company headquarters to South Africa. Econet Wireless first developed mobile payments to help NGOs transfer money to refugees after the war in Burundi ended in 2005. “Donor agencies were trying to find ways to make cash disbursements to refugees,” says Masiyiwa. “So we built the payment system initially not as a business but as a way to help humanitarians get money to people in rural areas who were trying to re-establish their lives.” That model was extended and now mobile money transfers are central to Econet Wireless’s business. Like M-Pesa before it, the company blurs the lines between telecomms and banking. Masiyiwa is passionate about this latter part of his business. He believes that extending saving and credit services to the poorest people gives them “extraordinary dignity and a sense that they are in control of their own lives”. His next challenge is to create a product that allows people who are informally employed, such as smallholder farmers and casual workers, to access credit. “In Africa 70% of people are informally employed,” he says. “The big frontier for us is to create platforms where those people can access credit.” He says there’s no risk that they will get into unmanageable debt because the banks won’t extend excessive credit, calling the system “self-regulating”. But Masiyiwa says that offering people the ability to save is even more important than credit. “We’re trying to build up a savings culture where people are encouraged to save, even if they only have a dollar – for children’s school fees, for transport, for the doctor. A savings and credit infrastructure builds resilience.” In his speech to microfinance experts at the symposium in Turin, Masiyiwa recounted a story about the judge in Zimbabwe who granted Econet Wireless’s licence in 1998, saying that 70% of people in the country had never heard a telephone ring. “Today, 75% of people [in Zimbabwe] have a cell phone,” he said “And I want 75% of the people in Africa to have a bank account … on a mobile phone.” And Masiyiwa has even found a solution to the energy problem that could prevent him from realising his dream. “We have developed solar charging stations where people can go into a kiosk and plug in their phone for free. Because our money is not made from someone charging the phone. It’s made from someone using the phone.” By way of lessons learnt, Masiyiwa says that in order to reach the unbanked, financial institutions – and telecommunications companies – must design services that are practical, simple and affordable. “I’ve got a customer who has a dollar in his pocket and has got to decide to have some lunch, call his cousin or go to the doctor. We have to develop services with sensitivity to the fact that in Africa our customers don’t have the same disposable income as in New Zealand, for example.” But the billionaire businessman cautions that it’s a mistake assume the poorest behave differently to other customers. “Their behaviour and aspirations are no different from those who have higher incomes,” he says. “They want to use Facebook. They want to use WhatsApp. We have to find ways for them to access those things with their very low income.” *Source Guardian]]>

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US-Africa Leaders Summit: Africapitalism at Full Speed
August 16, 2014 | 0 Comments

f04da2db11221557d15f1aAfter repeated calls to make Africa a priority, many hoped that the 2014 US-Africa Leaders Summit would bring the United States and the African continent together in an unprecedented partnership.

Indeed, the summit turned the page on a post-cold war type of diplomacy which had been dominated by derogative aid and a paternalistic approach. The summit helped to usher the two continents toward stronger economic cooperation and also created a platform fora win-win, mutually beneficial partnership aimed at reducing security threats.

The official agenda was focused on security, democracy and governance. However, for the first time, a trade and investment- focused theme dominated the week, with more than 60 ancillary events featuring African leaders who shared information on business opportunities in their respective countries.

As a result of these conversations, US President Barack Obama announced a $26 billion commitment to power development on the African continent to provide electricity to more than 60,000 Africans and entrepreneurs and to lay the foundation for an African economic boom. A total of $33 billion was pledged and $14 billion worth of private deals were created during the summit.

These investments are a far cry from China’s $200 billion investment in the African continent in 2013 which is more than double that of the United States. In fact, US Ambassador Linda Thomas-Greenfield said that Africa presents enough opportunities to be seized by all players. China and the US have two different approaches to investing in Africa but they are complementary. Still, Africa’s bright future will not depend on the amount of investments made; it will depend on which investments have the ability to create jobs on the continent and secure long-term development.

African leaders came to Washington accompanied by more than 200 African executives. Mutually beneficial partnerships are now the new models of engagement such as the partnership between Dangote Industries, asset management firm Blackstoneand Black and Black Rhino, an African infrastructure development company, with a $5 billion investment in infrastructure development. Another partnership includes Heirs Holding, Symbion and General Electric. It’s a venture that contributed to tripling the power capability in Nigeria from 150 megawatts to 453 megawatts in just six months. These success stories were made possible by the strong implementation of local content laws in Nigeria which allows their private sector to grow and due to improved power and investment regulations.

Leaders called for the creation of jobs on both sides of the Atlantic, in order to address the US employment challenge and Africa’s security threat posed by 54 million new jobs that need to be created in Africa by 2020. This can be duplicated in all sectors. This is Africapitalism at full speed.

Nevertheless, Africa’s future still depends on Africans, not on China, the European Union or even the United States. While speaking at the Believe in Africa Day High-Level Dialogue organized by African diaspora leaders, President of the African Development Bank M. Donald Kaberuka said: “A country that relies on others to finance development is ordained to fail.”

President Barack Obama greets leaders from Africa during a summit this week in Washington.

President Barack Obama greets leaders from Africa during a summit this week in Washington.

African leaders had expected to participate in the usual bilateral talks that they have attended summits held in France, the European Union and China. However, the lack of such talks did not undermine the outcome of the US-Africa Leaders Summit. Their participation in the summit sent a clear message to the rest of the world that Africa is ready to enter the big leagues and that the US summit was not just held to compete with the ones held by the Chinese or French.It is rather a loud proclamation of the strategic and economic importance the continent holds as stated in a resolution introduced by US Representative Gregory Meeks in the US Congress.

Nonetheless, the US still needs to contend with China, Europe and other emerging economies, including India and Turkey. The increase of positive south-south relations has already altered the traditional regional landscape.We are entering a new era for US-Africa relations. President Obama deserves an accolade for igniting the spark for these new relations. It is our hope that other summits will take place, and hopefully the next time it will be on African soil.

* Souce US-China Daily

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