Africa Brief: Stanlib keeps an eye on Africa after deal in Ghana and more…
Stanlib keeps an eye on Africa after deal in Ghana
Standard Bank-owned asset manager Stanlib has set up operations in Ghana through the acquisition of the Stanbic Investment Management Services division. It is also pursuing an asset management acquisition in Nigeria, which it hopes to close in the first half of 2015. MD of Stanlib Africa Ben Kodisang said the asset manager was applying for a licence in Tanzania, as part of a plan to build its asset management capability and take advantage of pension fund and social reforms in the rest of Africa.
by Phakamisa Ndzamela published in Business Day on 24/10/2014
Rwanda eases travel ban
Rwanda yesterday lifted Ebola travel restrictions on travellers who had been in the US and Spain after the president publicly told the health minister it was not necessary.
Excerpt from Rwanda eases travel ban published in Business Day on 24/10/2014
IMF outlines plan to fix ailing Zimbabwe
Zimbabwe must put in place operating parameters for the acquisition of bad bank loans by the end of the year and submit recommendations to fix the mining sector’s fiscal regime by June as part of new reforms that the International Monetary Fund (IMF) will monitor.
by Tawanda Karombo published in The Star, Business Report on 24/10/2014
Investors look to stock exchange to tap into African growth
Facing subdued growth at home, a growing number of Western investors are looking to Africa’s “frontier markets” for high returns and hoping the continent’s budding exchanges can help them tap in. This new appetite for African investments has driven a proliferation of stock ex¬changes across the continent, with countries such as Mozam¬bique, Uganda and Tanzania setting up their own markets. These markets offer African companies a means to access Western capital in a stable and transparent environment, gov¬erned by more defined rules than private investments.
by Angelina Boulesteix published in The Star, Business Report on 27/10/2014
Nigeria joins race to expand motor industry
With three major international brands already building their vehicles there and at least 20 more waiting in the wings, Nigeria believes it has the capacity to become an important global producer of vehicles and components. And SA is among the countries helping it pursue the dream. Until now, SA has dominated the African car scene. It expects to build nearly 600,000 vehicles this year and clings to its dream of increasing this to R1.2 million by 2020.
This is not the first time Nigeria has tried to create a motor industry. Local firms started assembling vehicle kits in the 1960s, but the industry progressed in fits and starts. The federal government set up state-owned plants in the 1970s and 1980s but also failed to make an impression. In principle, there is room for two sub-Saharan motor industry hubs, in Nigeria and SA. Since 1995, under first the Motor Industry Development Programme (MIDP) and now the Automotive Production Development Programme, SA’s industry has developed from an inefficient, sanctions-busting entity into one approaching world-class.
by David Furlonger published in Business Day on 27/10/2014
Africa offers new waters for boat-building sector
South Africa’s boat-building industry expects a boost in exports of its products as opportunities increase in the rest of Africa due to growth in the oil and gas industry. The industry exports more than 95% of its production and has been in positive trade balance since 2010. According to Marine Industry Association of SA, the industry is beginning to see growth in the export boat-builiding market after a downturn following the global economic crisis.
by Bekezela Phakathi published in Business Day on 28/10/2014
Sphere Minerals reviews plan to develop iron mine in Africa
Sphere Minerals which are controlled by Glencore, slowed plans to develop a $900m iron-ore mine in Africa after prices of the steel-making material plunged. The Mauritanian government reached a preliminary agreement with Glencore to share a port and railway to serve the Askaf project, according to an April filing, Baar, Switzerland-based Glencore, which has two other undeveloped iron-ore projects in West Africa, holds 79% of Askaf, it said in its annual report.
by David Stringer published in Business Day on 28/10/2014
SNG obtains license in Cameroon
South African accounting firm, SizweNtsalubaGobodo (SNG) have obtained a license to run their practice in Cameroon. The firm is currently facing pressure from its South African clients who are expanding in Africa and want to be services by SNG. The firm’s African expansion plans have been sidetracked by new briefs from clients who needed to be serviced in some African countries. However, Ms Gobodo said the acquisition of a license in Cameroon allowed to operate in the Economic Community of Central African States. These countries include Cameroon, Chad, Central African Republic, Republic of Congo, Gabon and Equatorial Guinea.
by Phakamisa Ndzamela published in Business Day on 28/10/2014
Botswana has become a victim of its own success
Environmental scientist Bakang Bogopa, who studied on a government scholarship, is among thousands of unemployed graduate in Botswana who exemplify the country’s swift economic progress in the past five decades and the challenges it now faces. Botswana’s economy is not sophisticated enough to employ many of the expanding stream of highly skilled graduates, such as Bogopa. As diamond prices are falling economic growth has slowed to 1.6 percent year on year on the second quarter and unemployment is stuck at around 20 percent, with youth joblessness believed to be much higher. Economists urge the government to free up funds to lend to small businesses and to support areas of the economy outside the diamond industry, which accounts for around 40 percent of GDP.
by Tiisetso Motsoeneng and Joe Brock published in The Star, Business Report on 28/10/2014
Kenya: Growth target to be reviewed
Kenya would review its economic growth target for this year after it recalculated the size of the economy a move that led to a jump in annual growth rates, its central bank governor said yesterday Government officials put last year’s gross domestic product at $53.4 billion (R586bn) – 25 percent higher than previously stated – after updating the base year for its calculation.
by Reuters published in The Star, Business Report on 28/10/2014
Tanzania: Start date set for port initiative
Construction of a Chinese-funded port and special economic zone in Tanzania worth at least $10 billion (R109bn) would start in July next year, the president’s office said yesterday, for the first time setting a start date for the delayed initiative. Tanzania aims to build a huge port at Bagamoyo, 75km north of Dar es Salaam, the site of the country’s main port, where shippers complain of congestion and inefficiencies.
by Reuters published in The Star, Business Report on 28/10/2014
Vodacom faces stiff competition as new operator enters Tanzania
State of the art 3G network is to be introduced in Tanzania by July 2015. A Vietnamese telecoms company, Viettel, has been awarded a licence to roll out the $1 billion network. Existing market players like Vodacom, Etisalat, Bharti Airtel and Tigo Tanzania will face some pressure from the new entrant into the moderately penetrated Tanzanian telecoms sector. The government sees this sector as a high growth market and expects operators to float their shares onto the local bourse in order to boost local ownership. This move has been met with some scepticism by other continental operators eyeing the lucrative Tanzanian market. However, this has not deterred the Vietnamese from investing. More investments are envisaged.
by Fumbuka Ng’wanakilala published in Business Day on 29/10/2014