Tag Archives | growth
Automotive Manufacturing Plants prepare to expand in Africa While the South African automotive market looks […]
Joint move on Adcock underlines shift at PIC THE Public Investment Corporation (PIC) and Bidvest […]
High growth and emerging markets represent some of the biggest growth opportunities in recent history. […]
Development group Farm Concern International (FCI), in partnership with the Bill and Melinda Gates Foundation, […]
There are ever increasing concerns for petroleum exploration and development prospects across Sub-Saharan Africa arising from the dramatic falls in oil and gas prices since mid-June 2014. The primary supply-side reasons are the US shale oil and gas revolution, strong production from conflict regions such as Iraq and Libya, and OPECs November 2014 statement that they would not cut production.
“A growing body of evidence suggests that financial institutions and financial markets exert a powerful influence on economic development, poverty alleviation, and economic stability,” says Martin Čihák, lead economist at the World Bank. Financial sectors on the African continent remain largely underdeveloped, while banking industries continue to dominate the landscape in terms of total assets and services. Nonetheless, financial sector development has been on the agenda of African policymakers for some time.
The truth about Africa Rising is that it is real. The economy is growing and potential for huge and sustained growth is enormous. According to the British newspaper The Independent, 31 million households in Africa have moved up from poverty into the consuming class, and in only 20 years Africa will have the largest labour force in the world. The spending power of this demographic will further fuel the economy.
The biggest issue facing business today is how to grow in a low growth economy. This is the challenge facing the G20 leaders when they meet in Brisbane later this week. Against that backdrop, corruption has a staggering impact on economic growth. At $3 trillion or around 5 percent of global GDP, if corruption were an industry, it would be the world’s third largest.
Recently the Carlyle Group, one of the largest global asset management firms, specialising in private equity, closed its maiden sub-Saharan Africa Fund at around US$700m – about 40% beyond its original target. This has followed the closure of a number of similar Africa funds at anywhere from US$350m to US$1bn. Private equity operating norms suggest that these funds will have to be deployed within the next couple of years – and this illustrates the direction of travel of one of the most focused streams of global investment capital.
At the credit application and processing stage, banks need to invest in systems that allow more efficient and tailored risk profiling. Such a system rewards diligent entrepreneurs with lower lending rates and greater access to capital. Post-disbursement, the establishment of dedicated advisory/support teams can help minimise credit risk and improve credit management by educating and advising SMEs on day-to-day financial management, record keeping and corporate governance. The incremental cost of this will be easily offset by the increased patronage and lower default rates.
Things move apace within Africa’s telecoms industry. The continent continues to improve its international connections through new cables, grow its smartphone base, reduce its calling and data costs, introduce new legislation and regulations, merge landline and cellular companies, introduce new mobile-based technologies and services, and more. Here are a few of the most recent development in African telecoms…
Our recent 2014 KPMG African and Global CFO surveys revealed some telling differences between operations and challenges in Africa and those in the rest of the world. For example, African firms differ significantly from their global counterparts with respect to centralised versus decentralised operations of their chief financial officers (CFOs).
The most important trend for positively impacting healthcare in Africa is already underway: the steady rolling out of primary healthcare into ever more remote areas, providing vaccinations, clean water, midwife assistance and basic health advice to ever larger numbers of people.
Another important trend is taking place in Africa’s cities, where new private hospitals are providing outpatient services and the reassurance of quality emergency care to the new middle class.
South African banks and construction companies have been expanding activities in the rest of Africa, where energy is one of the fastest-growing sectors. The $900m of debt and equity project finance for the Kpone Independent Power Plant and associated infrastructure in Ghana was closed by financiers and industrialists, including several South African banks.
There is an increasing interest in Africa as a potential investment destination due to the fact that the developed markets are not expected to grow as they have done previously. In addition, Africa is seen to be becoming more politically mature and easier to access and this, together with its growing population and rise in consumption, is adding to its attractiveness for foreign investors
Most accounts of health and healthcare in Sub Saharan Africa are written by foreigners. This book redresses the balance. It is written by Africans who have themselves led improvements in their own countries and describes many of the features of leadership, policy and implementation which have been involved.
The Zambezi River Basin (ZRB), consisting of Angola, Botswana, Malawi, Mozambique, Namibia, Tanzania, Zambia, and Zimbabwe, is integral to the lives and basic needs of the 30 million people with access to it. The riparian economies that the ZRB facilitates have consistently enjoyed economic growth above 6% year on year, though in the past 30 years, little investment has been made into the ZRB itself in the past 30 years.
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.
A strong manufacturing sector can help Africa’s emerging economies escape the poverty trap and build sustainable growth. With a billion people spread across 54 diverse nations, and rich natural and agricultural resources, Africa is often described as the last true frontier for economic development.
By looking beyond the BRIC countries and expanding geographic focus, many are uncovering that underdeveloped markets are poised for growth. This latest issue of High Growth Markets examines some of those opportunities and challenges that exist in emerging economies for global investors.
As one of the most politically stable countries in Africa, it’s not surprising that Zambia is stepping forward as a worthy contender for potential investors looking to enter and/or expand operations on the continent.
As countries grow wealthier, models of healthcare provision and financing need to adapt to increasing expectations and new demands for healthcare.
With strong growth aspirations in infrastructure, finance, energy, mining and other sectors, the role of procurement in organisation is becoming very strategic.
There have been numerous gas finds in Mozambique and Tanzania since 2010. In fact, finds in the Rovuma Basin have provided the operators of the gas projects enough incentive to develop LNG facilities in both countries.
There has been a rapid expansion of banking activities across the continent in recent years that, encouragingly, has not been driven by global / Western banks alone