Africa Brief: Taste for pizza takes off in Africa and more…
Taste for pizza takes off in Africa
Pizza is becoming the fastest growing food offering in South Africa. For example if you look at Panarotti’s, its sales have increased by 28.2% in the last year. The reasons attributable to the increase is that the product is affordable and that it is relatively healthy. However despite the fact that there have been many indicators that the market is growing and is doing well however these were not utilised or realised it seems. As Yum brands only recently brought pizza hut back to SA. The return of Pizza Hut has a lot of potential to grow says analysts. It has just opened a store in honeydew and is planning on expanding to Boksburg, Midrand and Soweto. Many analysts say that by increasing the competition pizza companies won’t do as well anymore however they are all positive about growth says one analyst so they still will see returns.
by Nompumelelo Magwaza published in The Star, Business Report on 22/09/2014
Nigeria: Power firms to get big bailout
Nigeria’s oil minister announced a 213 billion naira bail out for power firms. Nigeria has very large gas reserves however they are not uitlising them properly. Last year November the president handed ownership of the state electricity to private buyers.
by Reuters published in The Star, Business Report on 22/09/2014
Zambia: Law to restart farmer’s bourse
Zambia’s president has directed a government minister to draft a law stating that the country’s agricultural commodities market can resume trading after a three year halt. It is believed this act would be implemented by the end of the year.
by Bloomberg published in The Star, Business Report on 22/09/2014
Liquor firms look north as African market grows
It has been predicted that east African spirit and brandy market could grow by as much as 30 % in the next 10 years. This the African alcohol market is beckoning for South African firms. This creates huge opportunities for South African and other international companies. Many analysts have stated that the spirits market has a lot of growth potential in east Africa where the spirit business is not part of the listed brewing business. Distell has bought into Kheal, a company that manufactures and distributes spirits in the region. Kheal gives them access to Rwanda and Uganda markets. Distell’s revenue has shown great increase despite various hurdles. Due to various factors East African alcohol producers have faced greater difficulties that their West African counter parts. A report stated that a lot of energy had been channeled into brewing capacity in Africa. There is great opportunity here due to the boom in population. However in West African countries consumption of spirits is minimal. This leaves a lot of room for growth in this area.
by Tawanda Karomo published in The Star, Business Report on 17/09/2014
Natural gas output to triple by 2020
Nigeria has aimed to triple its gas production capacity to meet its power and industrial development needs. It has been said that they now need to critically focus on their gas to power needs. Nigeria has regular blackouts and does not have enough and does not have enough electricity to meet demand.
by Bloomberg published in The Star, Business Report on 17/09/2014
Russian investors start $3bn platinum mine in Zimbabwe
Russian investors have started a $3billion platinum mine about 50kms from Harare. The mines target is to produce 250 000 ounces annually within 3 years. Peak production would be 800 000 ounces a year. The land used to belong to Zimplats, who are still owed $150 million. Part of the land was also portioned off and not all investors have decided what they are going to do with their share.
by Peta Thornycroft published in The Star, Business Report on 17/09/2014