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ReConnect Africa is a unique website and online magazine for the African professional in the Diaspora. Packed with essential information about careers, business and jobs, ReConnect Africa keeps you connected to the best of Africa.

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A round-up of recent news from the UK, Africa and around the world.

 

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Apply Now for Jozi African Talent Speed-Dating 22 August, Johannesburg, South Africa

If you yearn to return home and are waiting for that dream opportunity, then apply to attend the Homecoming Revolution’s  Jozi African Talent Speed-Dating event  on the morning of 22nd August.  Network, meet and interview with top employers who have opportunities in Nigeria, Ghana, Uganda, Tanzania and Kenya. Confirmed Exhibitors include Barclays Africa, Allan Gray, Old Mutual, Group 5, Microsoft, Centum, KPMG, Engen and Safaricom.  The event is invite-only with free entrance for individuals with the correct profiles.  APPLY HERE NOW!

Executives to increase L&D Spending to Compete Globally, Research shows

Nearly a third of executives plan to increase their learning and development budgets this year, as developing leadership capability becomes the greatest business challenge for global companies. Just 36 per cent of respondents to Henley Business School’s Corporate Learning Priorities survey said international competition would be the greatest challenge over the next three years, compared to 71 per cent who are concerned with overall leadership ability. The results ­– from a survey of more than 350 executives, from 38 countries, 60 per cent of which were in HR roles – suggest that organisational priorities had shifted over the past year. Forty eight per cent more respondents expect L&D budgets to be larger this year, compared to 2013, and the majority of this spend will go on individual and team coaching with 83 per cent and 55 per cent of executives planning to use these methods. Retaining talent and maintaining employee engagement continues to top the list of management objectives for 2014, supporting the drive for growth and competitive advantage. Perhaps the biggest shift shown in this year’s results is the focus on developing leadership as a whole. In 2013, 89 per cent of respondents said that ‘senior leaders’ were the group most likely to be included in corporate learning and executive education plans. According to the survey results, investment in L&D is the key to accelerating growth of organisations emerging from the economic downturn, and this is true for both SMEs and the largest organisations.

More than Half of Women Experience Harassment and Bullying at Work, says Study

More than half of women have experienced harassment and bullying at work, according to the biggest study of women in the workplace. Some 52 percent of women said they'd experienced bullying and harassment at work over the previous three years, according to a British online survey of 25,000 people carried out by workplace gender campaign Opportunity Now and global professional services firm PwC. And experts warn that the impact of workplace harassment could also be felt in the damage it causes to companies' reputation and ability to recruit top talent. Examples of bullying and harassment ranged from being deliberately undermined - which more than one in four respondents reported - to victimization, or the intentional blocking of career progression, which more than one in six said they had experienced. A further 12 percent of those questioned said they had experienced sexual harassment, which was defined to include sexual comments, texts or emails, unwanted physical contact or leering, being asked for sexual favours or the displaying of offensive materials. It wasn't just women who reported awareness of workplace bullying, with some of the 2,166 men who took part in the study, called Project 28-40, highlighting it too. Some of the sectors where women were most likely to experience harassment were those with a higher female-male ratio than other, more male-dominated industries. Over 60 percent of those surveyed in the arts, entertainment and recreation sector, and 59 percent of those in the media industry reported harassment. The charity, construction, uniform and armed services, and transportation sectors also fared poorly, with between 56-59 percent of respondents from these industries reporting harassment. One risk of not dealing with harassment and bullying in a responsible way is a loss of reputation which can hit an organization hard - both in terms of talent and future business. The report called the findings regarding harassment and bullying the "most striking illustration" of the gap between organizations' policies and employees' experiences, and said they should "galvanize organizations into action."

World’s Most Reputable Companies Unveiled

More than 55,000 interviews with consumers were conducted across the 15 largest markets in the world to measure the corporate reputation of the 100 most visible companies. The Walt Disney Company and Google have the best corporate reputations in the world with consumers, according to Reputation Institute’s 2014 Global RepTrak® 100 study. The best companies in the world like The Walt Disney Company and Google see reputation as an input to their strategy not as a passive output from their communications. They use feedback from customers and other key stakeholders to make better business decisions, and that is what makes them trusted and relevant. By working systematically with reputation they have a clear understanding of where to invest and what to say, which increase their return on investments. The World’s Most Reputable Companies (Tier 1) are: Google, Walt Disney, BMW, Rolex, Sony, Cannon, Apple, Daimler, Lego, Samsung and Microsoft. According to the key findings: Rolex rated no. 1 for products and services by consumers; Apple considered the most innovative company by consumers; Google considered the best place to work by consumers; BMW rated no. 1 for governance by consumers; The Walt Disney Company considered the best corporate citizen by consumers; Google rated no. 1 for its leadership by consumers; Google rated no. 1 for its financial performance by consumers; Amazon has the best reputation in North America; Sony has the best reputation in Europe; Google has the best reputation in Latin America and Rolex has the best reputation in Asia.

NatWest Everywoman Awards: 2014 Round Open (UK)

The NatWest Everywoman Awards are open to any female business owner whether they operate as a limited company, sole trader or in partnership with others. The awards reward not only businesswomen who have achieved significant success, but also women who have overcome adversities such as financial constraints, social disadvantages or skills gaps. Examples of the awards categories are as follows: Artemis Award for women under 25; Demeter Award for women aged between 26 and 35; Athena Award for women aged between 36 and 49; Hera Award for women over 50. Two finalists and nominees from the main categories will be chosen to receive The NatWest Everywoman Award and the Everywoman Iris Award. Winners will also be chosen to receive the Spirit of Everywoman Award and the Everywoman Ambassador Award. The deadline for receipt of nominations is 7 July 2014.See the website for more details.

Fastest Climb in UK Starting Salaries for 7 Years, Report Shows

UK entry salaries for permanent jobs have risen at their fastest rate for seven years, according to the latest Recruitment and Employment Confederation (REC) and KPMG report on jobs. However, the same was not true for temporary staff whose pay increased at the slowest rate for five months, report data showed. The number of vacancies advertised is still growing with the pace of hiring rising in March and only just missing the 15-year high reached in January. But the research found that the number of candidates applying for these roles had fallen. Permanent staff availability dropped at its sharpest rate since October 2004, while the latest fall in temporary employee availability was the fastest in nearly 10 years.  Private sector demand for staff remained stronger than that in the public sector during March, while the quickest growth was in private sector permanent roles. Private sector temporary vacancies also recorded a strong rise. But while the level of public sector hires was lower overall than recruitment in the private sector, it had increased at a faster rate.  Demand rose for all nine types of permanent staff in March across both sectors. The strongest growth was seen in engineering, while the slowest increase was among blue collar employees. 

Labour will ‘Fast-track Black and Working-class’ into Senior UK Civil Service

The Labour party has pledged to fast track black and ‘working-class’ applicants into senior Civil Service roles if it wins the next general election in 2015. Under its proposals, the party will aim to recruit 18 per cent black and ethnic minority and 24 per cent "working-class" candidates into Whitehall’s Fast Stream graduate training programme. Applicants will qualify as “working-class” if their parents hold jobs that are classified as unskilled or semi-skilled, for example factory work, by the Office for National Statistics. Currently, the Fast Track scheme selects more than 300 graduates each year as potential leaders of the future. However, the plans to boost diversity in the selection process are a response to criticism that the Civil Service workforce is a “closed shop” and staffed in the majority by white people from upper- and middle-class backgrounds, who were privately educated and/or attended Oxbridge. Details of the proposals have not yet been discussed with leaders of the Civil Service but the plans are expected to be in the party’s election manifesto.

Sharp Decline in Graduate Starting Salaries, Research Shows

The average graduate starting salary has dropped 11 per cent over a five-year period to 2012 despite the huge rise in tuition fees, according to research by The Complete University Guide. Average entry-level earnings fell from £24,293 to £21,702 in real terms between 2007 and 2012, the data revealed. Dentistry continues to be the highest paid graduate occupation, but that also saw a decrease of 9 per cent to an average of £30,681 for a beginner’s salary. The latest research, based on returns to the Destination of Leavers from Higher Education (DLHE) over a five-year period, shows that the drop in starting salaries for graduate-type jobs is accelerating. The previous survey, for the period between 2005 and 2010, showed a 4 per cent pay decline. Only two-degree subjects recorded an increase in graduate starting salary between 2007 and 2012: materials technology (up 13 per cent) and librarianship and information management (up 3 per cent). In contrast, the median starting salaries for many of the most sought after degrees have seen a sharp decline since the economic downturn, including law (17 per cent) and medicine (15 per cent). The survey results raise questions about the value of spending up to £9,000 a year on a degree, as the average graduate premium – the difference between starting salaries in graduate-type and other employment – remained relatively low at £6,717. Pay for social policy and civil engineering graduate entry posts showed the greatest increase in the difference between graduate and non-graduate starting salaries, which rose to 32 and 30 per cent respectively. Stephen Isherwood, chief executive of the Association of Graduate Recruiters (AGR) agreed that a university degree still stands students in good stead when they enter the jobs market, and he is optimistic that graduates will be rewarded with higher starting salaries as the market recovers.

Almost 20% of Employees Fail Probationary Period, Research Shows

Nearly a fifth of new recruits (18 per cent) do not pass their probation or have the period extended by their employer, research has found. The survey of managers and employees, by recruiter Spring Personnel, showed that poor performance was the most commonly cited reason employees were let go (62 per cent), followed by absence (50 per cent) and poor punctuality (38 per cent). Personality clashes were also frequently mentioned as a reason employees failed probation, with 12 per cent of respondents pointing to an argument as cause to refuse an ongoing contract. The survey also found only one in five businesses (21 per cent) had never extend a worker’s probation period suggesting there is flexibility in probations as employers want to ensure they’ve made the right hiring decision. Further survey findings revealed that almost half employees (49 per cent) feel insecure during their probation and 38 per cent feel anxious. More than a fifth (22 per cent) admitted they made more effort with their work during this trial period than when their role has been permanently confirmed. The survey was conducted on behalf of Spring Personnel by independent research firm Opinion Matters, which questioned 403 UK workers responsible for employees going through probationary periods at work and 1,498 UK adults who have held a permanent role within the last 12 months.

HR ‘unprepared’ for Global Transformation, say Business Leaders

The availability of skills continues to be the main concern for business leaders across the UK, according to a survey from PwC, with 63 per cent of bosses describing it as a “serious concern” for their organisations. However, the majority (61 per cent) haven’t yet taken the first step in managing the talent shortage, despite 77 per cent of chief executives planning to change their strategy in 2013. The report, based on interviews with more than 1,300 CEOs in 68 countries, suggests that UK business leaders are more concerned about the availability of key skills than any of their Western European counterparts, and megatrends such as technological development, demographic change and urbanisation have created “profound challenges” for the future of business and their workforces. Fifty-eight per cent of leaders are worried about rising labour costs in high-growth markets. Signs that young, skilled workers in China and India are starting to favour domestic employers, means UK businesses are having to widen their search for new talent, looking to places such as Indonesia, Vietnam and the Philippines. Increasing regulation is also cited as a challenge, with 52 per cent of respondents saying it hampered their ability to attract and retain the best people. Just one in five felt their government had been effective in addressing skills shortages. Despite 44 per cent of CEOs believing the global economy will improve over the coming year, the majority reported having little confidence in HR to cope with the changes ahead. Just 34 per cent said HR was “well-prepared” to capitalise on transformational trends. Nine per cent said the function was not prepared at all. The report suggests HR teams develop “sophisticated analytics to spot talent trends and skills gaps, and provide the insight that will help organisations adapt their talent strategy, training and reward framework to maximise the opportunities available.” The report calls for business leaders to develop a new mindset around global talent sourcing and work more closely with educators and trainers to help develop existing talent.

Social Enterprise Awards UK Open for 2014 Entries

The Social Enterprise Awards 2014 are now open for applications from social enterprises across the UK. The Awards, which have been running for 16 years, recognise social enterprise organisations for their business excellence and contribution to society, as well as the achievements of people working within the social enterprise sector. UK social enterprises of any size may apply, providing that they trade primarily for social and/or environmental purposes, earn at least half of their income through trading activity, and commit at least half of profits to social purposes or is reinvested back into their business. They must also be able to show that their social purpose is evidenced in the governing documents. This year there are two new categories: Women’s Champion and Inspiring Youth Enterprise. Categories 1-10 are open to organisations from England, Northern Ireland, Scotland and Wales. Social Enterprises can enter all categories. Non social enterprises can enter Category 4, Category 5 and Category 10. Category winners and the overall UK winner will receive an award presented at the ceremony. Winners also receive a package including PR support, mentoring and business support consultancy. The deadline for applications is 11 July 2014. Entries will be judged on a national basis, with national winners going forward for the overall UK awards. The winners of all categories will be announced at an awards ceremony being held on 26 November in London. An application form and the criteria for each category can be found on the Social Enterprise UK website

African Mobile Money Revenues to Hit $3b

Mobile Money operators’ revenue will rise to $3 billion by 2015, a study by Pyramid Research has shown. Although Safaricom’s M-Pesa in Kenya has long been the lone success story in the mobile money universe, successes are being recorded in Nigeria, Uganda and Tanzania with similar mobile money offerings. MTN Uganda’s Mobile Money service accounts for three per cent of all airtime sold on its networ­k, and Vodacom’s M-Pesa service in Tanzania currently has six million subscribers with exponential growth of 600 per cent experienced in the past year alone. Currently, mobile money offerings remain limited and are concentrated in just 22 of the more than 50 African countries. Analysts said the African mobile money market has the potential to grow to a money-making market, but operators, banks and regulators need to work toward developing an enabling environment for business models that meet service providers’ revenue demands.

M-Pesa Launches in Europe

Vodafone M-Pesa, the mobile money transfer and payment service, has been launched in Europe.  M-Pesa, which launched in Romania, will offer simple, safe and secure mobile money transfer and payment services to approximately seven million Romanians who transact mainly in cash. The service also offers banked customers the convenience of being able to access and transfer money via the mobile phone. M-Pesa is based on simple text messaging technology and operates over any of Vodafone Romania’s mobile network connections, including 4G services which launched in 2012. Romanian M-Pesa customers will be able to transfer as little as one new Romanian leu (0.22 euro cents) up to 30,000 lei (€6,715) per day.   Vodafone M-Pesa can be activated at any one of around 300 Vodafone Romania stores and participating retail outlets as well as through authorised agents, and will be accessible to approximately six million people in both rural and urban areas.  It will be extended to other parts of the country, comprising a total of 2,000 retail and distribution points of presence by the end of 2014. M-Pesa also will allow Vodafone Romania’s customers to top up pre-pay airtime on a mobile device, pay utility bills, make a deposit and withdraw cash from participating agents, and purchase goods such as flowers, a newspaper and a coffee.  

Engineering Survey Reveals Scale of UK Gender Pay Gap

The Institution of Chemical Engineers’ (IChemE) biennial salary survey of workers in sectors including oil, gas, food and drink, energy and pharmaceuticals has revealed the scale of the gender pay gap with women typically earning 25 per cent less by the age of forty. The survey, which began in the 1980s and based on a sample of over 2,500 IChemE members in the UK and Ireland, revealed median salaries for the chemical engineering profession had grown by nearly six percent (5.7%) since 2012 and by 12 per cent since 2010 to £56,000. Salaries for people entering the profession, under the age of 25, improved by 5.3 per cent, between 2012 and 2014, to a median salary of £30,000 – an increase of £1,500. Median pay rates for fully qualified or Chartered Chemical Engineers (MIChemE), continued to grow strongly to £70,000, compared to £40,000 for non-chartered chemical engineers. However, despite median salary increases for female engineers outstripping their male counterparts – 10.3 per cent versus 7.1 per cent – over the past two years, it is the pay gap between men and women which continues to be the most challenging remuneration issue for the chemical and process industries. The survey reveals that women are achieving median salaries around 28 per cent less than men (£43,000 versus £60,000) over the course of their careers. The earning potential of women declines significantly between the ages of 30 to 40 years with median salaries of female engineers typically nearly £16,000, or 25 per cent, less than men of a similar age.

The Best Country to Work in

The U.S., U.K. and Australia remain the favourite destinations for professionals globally, but the U.K. is gaining ground as the top destination for those wanting to work overseas, a new survey shows. According to a report published Tuesday titled 'Global professionals on the move - 2014' by global recruiter Hydrogen, the U.S. remains the top destination for those already working abroad and those wanting to do so. But it added that the U.K. has made headway against the U.S. to be almost equal as the most favoured country for professionals wanting to work overseas. The outlook for Britain's economy has improved over the past year. Gross domestic product (GDP) rose 0.8 percent in the first quarter from the precious one, with the economy expanding for the fifth straight quarter. The U.S., U.K and Australia as the top places to work reflected a preference for English-speaking countries. Others listed in the top 10 for relocation were Switzerland, Canada, Germany, Singapore, UAE, France and Spain. The main attractions for working abroad were lifestyle, prospects and culture. Where city preferences were given, these tended to be capital cities, with London the most preferred. The British capital was ranked number one by 14 percent of professionals, twice as many as New York, which ranked second, the survey showed. The report was based on the results of an online survey conducted in November that garnered 2,444 responses from professionals in 99 different countries working across a range of sectors such as finance, oil and gas, and technology. It was conducted by a consultancy project team from ESCP Europe and studied the opportunities and motivations of highly qualified, high earning professionals working abroad. According to the study, more companies than ever recognize the value of hiring "international talent" and a growing number of professionals are willing to work in another country. More than a third of those survey said they would be willing to work abroad compared with 16 percent five years ago, while 40 percent of global professionals said they now believe that there are no barriers to moving abroad compared to five years ago when all those questioned in the survey believed that some barriers to relocation existed. The reports identified five countries facing a "talent gap" or in other words, face difficulty filling jobs: Japan, Brazil, India, Turkey and Hong Kong. According to the survey: "Despite the demand for talent in BRICs [Brazil, Russia, India, China], Brazil this year disappeared from the top 15 desirable destinations, and both Hong Kong and China have slipped down the rankings to 11th and 12th place respectively.

One-Third of Employees Find Appraisals ‘Unfair’, says CIPD

Large numbers of employees have “real issues” with their employer’s performance management and career progression policies, a CIPD survey has revealed. The CIPD/Halogen Software Employee Outlook survey of more than 2,500 employees found that 30 per cent felt their employer's appraisal process was unfair with less than 40 per cent considering it fair. A similar proportion (32 per cent) told the survey they felt progression within their organisation was unachievable, with one in five reporting that their managers fail to explain objectives and expectations effectively. Staff in the public sector showed most concern about performance management processes, with more respondents reporting them more unfair than fair. These findings, combined with further results showing that workers’ trust in senior leaders has hit a two year low, do not paint a rosy picture of employee engagement. However, there was some good news as job satisfaction has increased in all sectors compared with 2013. According to the net satisfaction scores - the proportion of people agreeing with a statement versus those disagreeing - satisfaction had risen from +40 to +42 from the Winter Employee Outlook survey. Following the research results, the CIPD has called on managers to take the initiative and talk to their employees about development or risk losing valuable talent. The survey showed that employers in the voluntary sector may be particularly affected by this threat as staff in the sector were most likely to feel that career progression was unachievable, while the proportion who said they were looking for a new job has risen from 24 per cent to 27 per cent.

Majority of Gen Y ‘won’t stay with one employer more than five years’

Employers will have to try harder to retain Generation Y talent as a global survey revealed 90 per cent of this age group plan to stay no longer than five years with one organisation. Research by London Business School (LBS), in partnership with Deloitte, showed that high potential employees born in the 1980s and 1990s don’t feel bound to a single employer to ensure career progression with 37 per cent reporting they’d stay no more than two years at one firm. And two-fifths admitted that they are already planning their next career move when they start a new job. The study suggests that employers hoping that talented young workers will stay for the promotion prospects will be disappointed as this motivation to remain takes third place behind work/life balance and organisational culture. Executive education experts at LBS said the findings provide evidence that employers from the baby boomer generation and Generation X have failed to offer benefits that appeal to the high-potential Gen Y employee. Survey results also showed that Gen Y’s goals are quite different from previous generations with only 12 per cent of emerging leaders aspiring to emulate chief executives who focus on how the business is trading. Instead, the development and promotion of innovation is a bigger priority for younger talent, with 34 per cent of those intent on becoming a company leader preferring to take a more entrepreneurial approach to management. An even higher percentage (39 per cent) said they want to be a leader whose aim is to make the company and the world a better place.

Black College Graduates Still Face Discrimination in US Job Market

A newly released report by the Center for Economic and Policy Research (CEPR)—a left-wing think tank that studies inequality and economic issues—shows that Blacks account for a disproportionate amount of the 2013 unemployment rate when it comes to recent college graduates. According to the Pew Research Center, the Black unemployment rate has been double that of whites for the last 60 years. The job market has also been more difficult to break into in recent years, a reason being the effects of the ‘Great Recession,’ which the report largely focuses on. The report goes on to note another contributing factor: job-market discrimination. Per a study conducted by the National Bureau of Economic Research, “Job applicants with white names needed to send about 10 résumés to get one callback; those with African-American names needed to send around 15 résumés to get one callback.” Examples given were “Black sounding” names like Lakisha Washington and Jamal Jones versus “white sounding” names like Emily Walsh and Greg Baker. Black men also seem to be underrepresented in managerial positions, and as a result are overrepresented in low-paying positions. Using data collected from 2010–2012, researchers concluded that a “$10,000 increase in the average annual income of an occupation translated into a 7 percentage point drop in the share of Black men doing that job.” Also noted is that recent college graduates who are able to secure a job often find themselves in a position where their college degrees are not applicable, or not needed, for that particular position. In other words, when Black recent college graduates do find work, they are overqualified for those positions.

Woolworths set to acquire Australia's David Jones

South African retailer Woolworths is to buy Australian department store chain David Jones for R21.4-billion (A$2.1-billion), in a deal that will create a leading southern hemisphere retailer with 1 151 stores across 16 countries.  The deal will make Woolworth one the 10 biggest department store operators in the world, and one of the largest companies listed on the Johannesburg Stock Exchange. David Jones is an iconic Australian brand at the premium end of the clothing business, occupying a similar customer positioning in Australia to Woolworths in South Africa. "DJs", as many know it, also stocks gourmet food and wine and high-end beauty products. One of Australia's oldest department stores, it has 38 branches across the country and flagship stores in Sydney and Melbourne. As part of this turnaround strategy, Woolworths said it was committed to developing its South African supply chain and boosting exports from the southern African region.

Regus Opens New Gateway into Africa with Launch of First Centre in Botswana

Regus is creating new opportunities to do business in Sub-Saharan Africa with the opening of its first centre in Botswana. The launch, which represents Regus’ 101st country, will help companies of all sizes to explore a nation expected to achieve real GDP growth of around 5.5% in 2014. Botswana is a highly attractive market for businesses, offering “an impressive track record of good governance and economic growth”, according to the World Bank.2 In addition to having a thriving mining industry, the country also has steady agriculture, financial services and tourism sectors, with the government committed to expanding non-mining private business – opportunities that Regus’ presence in Botswana will help firms to explore. Following its launch in Botswana, flexible workplace provider Regus now operates in 17 countries in Africa, offering exceptional openings for companies to expand into frontier markets. They can use Regus’ network to assess the market opportunities without the financial risk of long-term, fixed property arrangements.

New Report Casts Doubt on Success of BEE in South Africa

Despite seven years of practising legislation aimed at granting previously disadvantaged groups in South Africa preferential access to the employment market, a recent report says that even 20 years after the final fall of apartheid most workplaces were still biased in favour of the country’s white population. The report pointed out in particular that only about 20 percent of South Africa’s executive positions were occupied by the black majority, with about 63 percent of top positions still held by whites. These numbers do not reflect the fact that 75 per cent of South Africa’s economically active population are black and only 11 per cent white. The 14th Commission for Employment Equity’s report also specified how other racial groups performed in comparison: South Africa’s Indian population managed to fill 8.4 percent of the top-tier professions while the Coloured (mixed race) population came in last, occupying just over 5 percent of the top rungs in the corporate ladder. Only 11,5 percent of South Africans are Coloured while only 2,5 percent identify as Indian or Asian. While the Indian population has benefited greatly from the introduction of laws aimed at facilitating access to these positions, with their presence doubling over the last few years, no other population segment from previously disadvantaged groups appeared to have experienced any solid improvement. However, the report fails to address the ongoing causality of the observed imbalances following the introduction of BEE legislation. It also neglects an analysis of mid-level positions and a subsequent comparison between mid-level and senior positions, examining how the issue of upward mobility has managed to progress among the various racial groups over the years and to assess whether access to top positions has become easier. Another report published irrespective of the Labour ministry’s findings shows that income levels between the various racial groups also hit significant disparities, with the median income for the white population coming in at R10,500 while the figure for the black population at around R2,600. But this statistical data can also be scrutinised for representing some false values, as other social factors might also have to be taken into consideration (such as education levels, age and gender) before identifying the meaning of the median income value, i.e. the middle income bracket to various groups. The reports were published as new draft employment equity regulations were made available for public comment before heading to parliament for consideration.

Johannesburg to Get 1,000 Wi-fi Hotspots

The City of Johannesburg plans to install 1 000 wi-fi hotspots throughout the city by 2016, according to its executive mayor, Parks Tau.The city has spent R1-billion on the broadband network and is now working on access points for the citizens to enjoy the connectivity. Thirty-five libraries will be connected by June and all 85 libraries in the city will have free internet access by the end of 2014. Tau promised that the roll out would be completed before the end of his five-year mayoral term in 2016. The city will train 1,000 students a year in its ICT operations to work in communities to help introduce the latest technology to residents and a partnership with the University of Witwatersrand is being established to develop the Tshimologong Precinct in Braamfontein, which will focus on information technology innovation and small, medium and micro enterprise incubation.

BNP Paribas Enters South African Consumer Finance Market

BNP Paribas Personal Finance, a subsidiary of French bank BNP Paribas, is to acquire South African consumer finance company RCS from Foschini Group and Standard Bank for approximately R2.65-billion (US$255-million. RCS focuses primarily on providing retail credit card facilities, personal loans and insurance to the mass middle market, both under its own brand and in association with a number of retailers in South Africa, Namibia and Botswana. The company employs a workforce of over 1 250, services approximately 1-million cardholders, and has developed partnerships with 3 000 merchants for its general purpose card and exclusive agreements with 14 merchants for private or co-branded cards.  It is 55% owned by clothing and accessories retailer Foschini and 45% owned by Standard Bank. The transaction is expected to be completed by the third quarter of this year.

Kenyatta Urges Technology Use to Reduce Diaspora Remittances Costs

Kenyan president Uhuru Kenyatta has stated that his government will be negotiating with financial institutions to make remittances to the country easier and cheaper, and urged the adoption of technology to bring down costs. Kenyatta told Kenyans living and working in Doha, Qatar, that the Kenyan government would look into issues affecting Kenyans working abroad, among them unscrupulous employment agents who take advantage of Kenyan job seekers abroad, and high remittance charges. Kenyatta said utilising existing technological channels will go a long way into lowering cash transfer costs. Kenyans currently rely on channels such as Moneygram and Western Union to send money home. M-Pesa and recent entrant into the market, Equity Bank, also serve Kenyans living in the UK.

16 African Firms named 'global growth companies'

Six South African businesses were among 16 dynamic, high-growth African firms named as "Global Growth Companies" by the World Economic Forum (WEF).
Making the announcement on the eve of the WEF on Africa summit in Abuja, Nigeria, the Switzerland-based organisation described the 16 companies as "trailblazers, shapers and innovators that are committed to improving the state of the world". Global Growth Companies "are fast-growing companies with the clear potential to become global economic leaders," the WEF said in a statement. "The 16 nominated African Global Growth Companies ... share in common a track record in exceeding industry standards in revenue growth, promotion of innovative business practices, and demonstration of leadership in corporate citizenship."  The six South African companies on the list are property investment holding company Growthpoint Properties, low-cost retail bank Capitec, law firm Webber Wentzel, black-owned fuel reseller KZN Oils, technology firm Net1 UEPS Technologies, and shoe retailer Tekkie Town. Nigeria also has six firms on the list, namely Nagode Group, UAC of Nigeria, Computer Warehouse Group, Interswitch Limited, Notore Chemical Industries, and Seplat Petroleum Development Company. Kenya's Nation Media Group and Bidco Oil Refineries, along with Uganda's Simba Group and Mauritian company GML, complete the list.

JSE Equity Market Data Now Available via Google

The Johannesburg Stock Exchange (JSE) has teamed up with Google Finance to enable local and international and investors to track JSE equity data online.
All equity listed instruments on the JSE are provided on www.google.com/finance?q=JSE with a 15-minute delay. Google Finance now offers financial information from 35 stock exchanges worldwide. According to the JSE, 45% of the exchange's data was subscribed to outside of South Africa in 2013, "indicating international demand for South African equities and exposure to African investments in general". The JSE is one of the top 20 exchanges in the world in terms of market capitalisation. South Africa was ranked second World Economic Forum's (WEF's) 2013 Global Competitiveness Index for raising finance through the local equity market.

New Careers Resource for South African Graduates

A free new online resource is set to change the landscape for post- qualification jobseekers. The World of Work, created by The Independent Institute of Education, has been designed specifically to help South Africa’s graduates bridge the gap between studies and work, and to assist them to perform optimally when entering the workplace for the first time. The site helps prospective students, current students, graduates and young workers navigate the various aspects of preparing for, searching for, and impressing in their first jobs. Although it is a product of The IIE, SA’s largest and most accredited private higher education provider, the resource is available free to all of the country’s young people, regardless of their academic affiliation. The World of Work focuses on five main areas: Preparation, Presentation, Pay, Impressing and Promotion. Preparation looks at issues of deciding what to study, and doing the right things while studying to bolster your post-study chances; Presentation considers aspects such as CVs, and the job application and interview process; Pay mulls issues such as expectations vs opportunity, and budgeting; Impress looks at how to put your best foot forward in your first job, and Promotion assists in getting ready to take your career to the next level. The World of Work is freely accessible at the World of work website , on Facebook at and on twitter via @theworldofwork

Standard Bank identifies Francophone Africa as Next Frontier for Continent’s Investment Boom

Standard Bank plans to use its presence in the Ivory Coast (Côte d’Ivoire) to expand its service offering across the rest of Francophone Africa, which the lender believes is poised to experience an investment boom as foreign companies are lured by the region’s mineral wealth and economic growth. Africa’s largest lender opened its Ivory Coast representative office in the capital city of Abidjan in November last year to service its 145 clients with operations in Francophone Africa in sectors ranging from mining, oil and gas, infrastructure, power and energy to fast moving consumer goods. Standard Bank said at the time that the investment signified a deliberate drive into West Francophone Africa due to Ivory Coast’s membership of the West African Economic and Monetary Union (UEMOA), which includes Benin, Burkina Fasso, Guinea-Bissau, Mali, Mauritania, Niger, Senegal, and Togo. “It’s fair to say that we’ll be using the Ivory Coast office as a launchpad into the rest of the region. Francophone West Africa is less well-known to South Africans but it cannot be ignored due to the economic potential,” said Mr Greg Goeller, Executive for Client Coverage Africa at Standard Bank’s Corporate and Investment Banking unit. “The region has all the components to benefit from the next global mining and infrastructure boom, which in turn will lead to economic growth in other sectors as well. Our clients are increasing presence and exposure to West Francophone Africa and we plan to follow them.” Ivory Coast has emerged from two decades of civil war as one of the fastest growing economies in Africa thanks to public investment in infrastructure, natural resources, the commercialisation of its agriculture sector and its rapidly emerging consumer market. The country remains the largest and most diversified economy in Francophone Africa and is also the ninth largest in all of Sub-Saharan Africa. In addition to the countries making up the UEMOA, Standard Bank also plans to expand its focus to include the six nations that comprise the Central African Economic and Monetary Community (CEMAC), which include Cameroon, the Central African Republic, Chad, Republic of the Congo, Equatorial Guinea and Gabon. These two monetary unions (CEMAC & UEMOA) have combined populations of 148 million people and a cumulative nominal gross domestic product of US$167 billion. Mr Goeller says these nations have the advantage in that their currency (CFA franc) is guaranteed by the French treasury while both the currencies used in the two monetary unions, the West and Central African CFA francs, are pegged to the euro. Mr Goeller says that while inward foreign direct investment (FDI) in Francophone Africa has thus far been largely linked to mining and resources, with the sector accounting for 83.9% of the total value of deals completed in Gabon, Ivory Coast, Cameroon, Guinea, Senegal, Sierra Leone and the Republic of Congo between 2008 and 2012, this is likely to change over time. Standard Bank believes that other sectors such as oil and gas, infrastructure, telecommunications, fast moving consumer goods and agriculture will increasingly attract more foreign direct investment as the economies of Francophone Africa develop. For example, much of Francophone Africa is ideally suited to investments in hydro-electric power generation thanks to the region’s topography and abundance of fast flowing rivers. Guinea began negotiations with China International Water and Electric Corporation in August 2011 on the construction of a 240 Megawatt (MW) hydroelectric facility at Kaleta, located approximately 150 km northeast of Conakry. The project is estimated to cost USD 526 million. Ivory Coast recently concluded a 20 year USD500 million loan with China’s Export-Import Bank (Exim) to finance the construction of the 275 MW Soubre Hydro Power Station while US private equity firm Joule Investments has agreed to start developing Phase II of the existing Bumbuna Hydroelectric Plant (BHP)  with the Sierra Leone government.

Tony Elumelu Foundation Launches Africapitalism Institute

The Tony Elumelu Foundation has announced the launch of the Africapitalism Institute.  Africapitalism – the philosophy established by Mr. Elumelu – calls on the private sector to commit to making long-term investments across Africa that generate both economic prosperity and social wealth. The Africapitalism Institute is the first pan-African think tank headquartered in Africa, and founded and funded by Africans.  The work of the Institute will codify the philosophy of Africapitalism across Africa and the world. As a fully African funded and led think tank the institute will focus on academically rigorous, practically applicable research and multi-stakeholder engagement to advocate for public policies and business practices that will unlock opportunities for all Africans. The Institute’s Global Advisory Board includes Amir Ben Yahmed, Founder and Editor-in-Chief, Jeune Afrique and President of the Africa CEO Forum and Tandeka Nkiwane, Development Research Institute of South Africa and Special Advisor to the Chief Executive Officer at The NEPAD Agency. The Africapitalism Institute believes that with the right investment approach and enabling environment, Africa can continue to grow economically and create new employment opportunities for Africans across the continent.

South Africa Climbs up One place in Competitiveness Ranking

South Africa has moved up one place from 53rd to 52nd out of 60 countries ranked in the latest world competitiveness rankings by top-ranked Switzerland-based business school IMD. The IMD released its 2014 World Competitiveness Yearbook ranking, based on a survey of 4 300 international executives and showed the continued success in the US, partial recovery in Europe, and struggles for some large emerging markets.
The US retained top spot in the 2014 ranking, followed by Switzerland, Singapore, Hong Kong and Sweden. South Africa's BRICS partners came in at 23rd (China), 38th (Russia), 44th (India) and 54th (Brazil). South Africa was the only African country surveyed. By way of comparison, the World Economic Forum's 2013 Global Competitiveness Index, which surveyed 148 countries, placed South Africa 53rd overall, second in Africa (behind Mauritius at 45th), and second among the BRICS economies (China ranked 29th, Brazil 56th, India 60th, and Russia 64th).
South Africa improved in two of the four categories on which the IMD's overall ranking is based, climbing by three places to 55th in the infrastructure ranking and by one place to 56th in the economic performance ranking. However, the country dropped by three places to 35th in the government efficiency ranking, and by eight places to 51st in the business efficiency ranking.

EDI Launches New Africa Data Product

Exchange Data International (EDI), a provider of global securities data, has announced the launch of AFED providing macroeconomic and financial data for all 54 countries in Africa. The service provides direct access to a comprehensive suite of Africa centric economic and financial data. AFED combines EDI‘s 20 years’ experience in data aggregation and delivery with the expertise of analysts specializing in African political and economic sovereign risk. The macroeconomic database currently covers more than 15,000 key economic and financial data indicators captured from 89 multilateral sources. These include Investment Real GDP by sector, domestic and external debt, grants, Consumer Prices, employment figures and industry related indicators such as gold and car production. AFED reports these figures as published by the source leaving clients the choice to adjust if required. AFED is the only database that enables clients to efficiently compare sources on the same indicator; all data collected is normalised and classed into thirteen main groups (e.g. National Accounts, Inflation, Prices & Wages, Politics, Government & Society etc...). Subscribers can easily retrieve any and all data points of interest, whether directly from the online platform or via MS Excel using AFED’s integrated plug-in. In addition to the macroeconomic data, EDI has grouped a number of its established datasets under a Capital Market module, providing subscribers with detailed African market data in one dedicated place. This Module comprises Equity and Listed Bond prices, Credit Ratings, Fixed Income reference data, Stock Exchange Indices and FX and Interest rates.

New Cement Producer Enters South African Market

China's Jidong Development Group, one of the world's top five cement makers, is to enter the South African market with the construction of a R1.8-billion, one-million tonne per annum cement plant in Limpopo province. Nedbank Capital and the Bank of China Johannesburg have announced that R1.1-billion in debt capital had been raised to fund Mamba Cement, a special purpose company established to build and operate the plant at an established limestone deposit near Northam in Limpopo. Equity in addition to the loan will be provided by Jidong Development Group, the majority shareholder in Mamba Cement, the China-Africa Development Fund, and South African investment and operating group Women Investment Portfolio Holdings (Wiphold). Mamba Cement will manufacture "high-quality pure cement with the capacity to produce very cost-effective products," Nedbank Capital said in a statement, adding that the company would have "a sustainable transport advantage due to its proximity to the major cement demand centres of Johannesburg, Pretoria, Mpumalanga, Rustenburg and Brits". The investment is expected to create jobs and provide opportunities for small suppliers for communities north of Brits. Market researchers Frost and Sullivan have predicted that rapid infrastructure development in South Africa and its neighbouring countries will boost the prospects of the cement industry in the southern African region. The South African government, for example, plans to spend in excess of R4-trillion on a massive state-led infrastructure drive over the coming years, with a substantial focus on rail, road, energy and water infrastructure.

South Africa Up in Business Tourism Rankings

South Africa has climbed from 37th to 34th in the International Congress and Convention Associations' (ICCA's) latest ranking of business tourism destinations worldwide, with Cape Town and Durban being rated Africa's top two cities for meetings and events. The ICCA's 2013 rankings confirm South Africa's position as the top business events destination on the continent, followed by Kenya and Morocco. In the African cities ranking, Cape Town and Durban were followed by Nairobi in third place, while Stellenbosch outside Cape Town was placed 10th.
Internationally, Cape Town came in at 52nd (behind Melbourne at 44th and Vancouver at 38th), while Durban jumped a massive 60 places to rank 97th in the world. Major international events successfully hosted by South Africa include the International Aids Conference in 2000, the 123rd Session of the International Olympic Organising Committee in 2011, the World Congress on Intensive and Critical Care Medicine in 2013, and the One Young World Conference in 2013. An estimated 20,000 delegates will converge on Durban in 2016 when the country hosts the International Aids Conference for the second time.

Inaugural Southern Africa Compliance Awards Announced for November

The outstanding contributions that compliance professionals make every day to securing the future of business in Southern Africa will be celebrated and rewarded at the first-ever Southern Africa Compliance Awards 2014 taking place in Johannesburg in November. The awards ceremony at La Toscana of Montecasino, on 19th November will represent and reward professionals from across the compliance sector, recognising the very best individuals, teams and initiatives; highlighting the united efforts of this innovative and dynamic sector. The key highlight of twelve months’ worth of diligence, vision and commitment in helping to keep compliance at the very top of its game, the ‘Southern Africa Compliance Awards 2014’ will be judged by prominent compliance and regulatory professionals from across the spectrum of the corporate, legal and professional services world in Southern Africa.The shortlisted finalists that demonstrate the excellence and wealth of talent within the compliance industry will be announced and the winners revealed at the Gala Dinner and Awards Evening in Johannesburg. The 12 award categories range from Junior Compliance Officer of the Year to Compliance Innovator of the Year and Law Firm of the Year to Inspirational Woman of the Year in Compliance. Entries will be judged by a panel of prominent compliance specialists from across the corporate, legal and professional services world in Southern Africa

Almost 10 Million Tourists Arriving in South Africa

Foreign arrivals in South Africa reached their highest level ever in 2013 as the country's international tourist numbers approached the 10-million mark, according to its Department of Tourism. According to the latest figures from Statistics SA, 14 860 216 foreign visitors arrived in South Africa last year, a 10.5% increase over 2012. Of these, 9.6-million were tourists, translating to a 4.7% year-on-year increase in international (including the rest of Africa) tourist arrivals, and a 7.1% increase in overseas (excluding Africa) tourist arrivals. South Africa's international tourist arrivals grew at an annual average growth rate of 7.4% between 2011 and 2013, well above the global average of 4.5% during this period. Tourist arrivals to South Africa showed positive growth from all regions in 2013, the department said, including good growth out of Europe, its largest overseas market for tourists. A total of 304 090 German tourists visited South Africa in 2013, firmly entrenching its status as South Africa's third-largest tourist source market. Arrivals from France, South Africa's fifth-biggest overseas source market, grew to 134 840, while Italian arrivals reached 67 790. However, South Africa's largest overseas source market, the UK, grew by a modest 1% to 442 523 tourist arrivals in 2013. Arrivals from the rest of Africa grew by 4% year-on-year to 6 889 389 in 2013, with arrivals by air growing by 12%. Nigeria, the largest African air market for South Africa's tourist arrivals, grew by 15.4% to 84 589 arrivals. A total of 417 582 North American arrivals were recorded in 2013, up from 393 446 in 2012, while tourists accounted for 348 646 arrivals in 2013, reflecting 6.7% growth on the 326 643 tourists that visited the country in 2012. Asia and Central and South America continued to record good growth on top of the exceptional levels witnessed in 2012, in which these markets grew by 34% and 37% respectively. Central and South American tourist arrivals numbers grew by 8% to reach 129 463. Brazil remains by far the biggest market out of this region growing by close to 5.6% to reach 82 802 tourist arrivals. Australasian tourist arrivals to South Africa grew by 4.0% in 2013, with 148 660 tourist arrivals recorded. According to figures for the period ending December 2012, direct tourism contribution to GDP grew from R83.5-billion in 2011 to R93.3-billion or 3% of GDP in 2012. At the same time, tourism contributed approximately 617 287 direct jobs in 2012, amounting to about 4.6% of direct employment in the country, up from over 591 785 direct jobs in 2011.

South Africans Online Grew 20% in 2013

Twenty million South Africans had access to the internet in 2013, growing 20 per cent year-on-year from 2012, according to a study. VC firm Kleiner Perkins Caufield & Byers (KPCB) released the 2014 Internet Trends study, compiled by American venture capitalist (VC) and former Wall Street securities analyst, Mary Meeker. According to Meeker, South Africa has an internet penetration of 40 per cent, with the growth of the smartphone market driving internet penetration. KPCB said South Africa has a smartphone penetration of 41 per cent, representing 20 million individuals. It said the country experienced a 32 per cent smartphone usage growth during 2013, four percentage points above the global average.

Tigo Partners with IFC and MasterCard Foundation to Expand Mobile Financial Services

Tigo Ghana, one of Ghana’s largest cellular operators, has entered into a $2 million advisory service agreement with the IFC, a member of the World Bank Group, and The MasterCard Foundation to develop and expand mobile financial services in support of wider financial inclusion in Ghana. The project is part of the Partnership for Financial Inclusion, a joint $37.4 million initiative of IFC and The MasterCard Foundation to expand microfinance and advance mobile financial services in Sub-Saharan Africa. While mobile phone usage is high in Ghana, access to formal financial services remains low. Only 29 percent of adults in Ghana have an account at a formal financial institution. Among people with low income that number is only about 15 percent. Most poor people are left with no choice but to resort to informal, unregulated and often unreliable means of savings, and insurance. The project will run for three years and focus on customer education and acquisition, with IFC providing advisory services on business development, customer profiling and agent network management.

GIBS Business School Remains top in Africa Rankings

The University of Pretoria's Gordon Institute of Business Science (GIBS) has again taken the top ranking among South African and African business schools in the annual UK Financial Times Executive Education rankings announced recently. The Financial Times survey presents a global benchmark for providers of executive education and GIBS has now been ranked among the top business schools worldwide for 11 consecutive years. The survey is compiled using data from two sets of online surveys - one for business schools themselves and another for clients. Business schools are asked for details of a number of top clients, who are then invited to complete an online survey about the school that nominated them. For GIBS, clients comprising not only leading South African corporates but top multinationals operating in the rest of Africa and abroad participated in the survey. This year, GIBS executive education has risen to number 42 worldwide, one up from its 43rd combined executive education ranking last year and remains the only African and Middle Eastern School in the global top 50. In terms of open programmes GIBS achieved a ranking of 42nd (up from 43rd in 2013), next in Africa is Lagos Business School in 55th place followed by USB Executive Development sitting at 61st place and Wits Business School in 62nd place. In custom programmes, GIBS remains the highest ranked African business school, followed by the University of Cape Town GSB and USB Executive Development sitting in 64th and 68th position respectively. Wits Business School appears in 78th place.

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