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Designed with the aim of being a significant endorsement of corporate achievement, the National Business Awards UK enable businesses and social firms from different industries and sizes to compete on a level playing field. Categories to enter in 2015 include The Corporate Citizenship Award; The Customer Focus Award; The Digital Business of the Year; The Employer of the Year; The Smith & Williamson Entrepreneur of the Year; The Growth Business of the Year; The Innovation Award; The Inflexion International Growth Business of the Year; The New Business of the Year and The Social Enterprise of the Year. The year-round programme will see a series of thought-leadership events focusing on key aspects of growth. These events will take place in various UK cities throughout the spring. Any company within the UK, whether public, private or third sector, can enter the Awards, regardless of size or industry sector. Organisations may self-nominate and entries may be submitted for multiple categories. Submissions for the 2015 Awards will be accepted until 22 May 2015. See the website for more details.
The British Army needs to overhaul its approach to recruitment and career structure to encourage more women and ethnic minority staff to join and stay in the services, according to General Sir Nicholas Carter, the chief of the general staff who reports that for too long the career structure in the Army had been too male-orientated and had pressurised women into leaving. General Carter said the organisation needs to look beyond its “traditional” but “shrinking” recruitment pool and assess how it reaches out to all types of British society. According to figures from the Ministry of Defence, the UK Army currently has 3,950 less full-time trained personnel than it requires. At 1 January 2015, women accounted for just 8.9 per cent, while just 11.9 per cent of Army officers were female. Black, Asian and minority ethnic (BAME) personnel currently account for 10.2 per cent of Army personnel according to the latest MoD data. The Army is currently undergoing a transformation project called Army 2020, which aims to reshape the organisation's structure. This includes a new development framework, which will reassess career structures, career management and training.
The fifth annual Business Start-ups Competition aims to stimulate and promote entrepreneurial initiative within the UK. The competition challenges interested parties to submit an innovative, 'disruptive' business idea. There will be two winning prizes, which will provide critical analysis of the winning project and a tailored online market research survey. The first prize winner will receive market research to the value of £1,000 and the second prize winner will receive market research to the value of £500. Winners will also be entitled to 15% discount on a future market research report commissioned with the competition's sponsor, Marketest, within 12 months of winning. Prospective entrepreneurs in the UK who are aged 18 and over and those in the initial stages of starting up a new business may enter the competition. The deadline for receipt of applications is 16 May 2015. See the website for more details.
The Pitch is an annual competition which aims to find the UK's most exciting and innovative small companies and entrepreneurial talent. Entrants must pitch their business idea to a panel of industry experts who will scrutinise business concepts and presentation skills, searching for the best of the best. Successful entrepreneurs will be chosen to present their product or service, with winners being selected to go through to a live grand final in Bristol. Business ideas may be in any field; however, the judges will assess all pitches by looking for innovation, engagement with customers, sound financial and business planning, and an understanding of where the opportunities exist in the market for the product or service. The winning entrepreneur will receive a package of business support prizes worth in the region of £25,000. Every entrant who takes part in The Pitch will receive expert advice on their business idea, guidance on their business plan and access to a range of business resources. Each finalist will also receive extensive media coverage. To enter, businesses must be based in the UK, established for less than three years at the time of entry and employ no more than 20 members of staff. The contest comprises regional heats taking place in the summer, followed by a grand final later in the year. Entries are now being accepted until 31 July 2015. See the website for more details.
The Charity Times Awards are now open and accepting entries from any UK-based registered charity, or international charity with registered UK offices, who have a trustee, chief executive, director or upper level manager that deserves recognition. Now in their 16th year, the nonfinancial Charity Times Awards, previously known as the UK Charity Awards, continue to be the pre-eminent celebration of best practice in the UK charity and not-for-profit sector. They honour both the individuals and the teams of dedicated staff that continue to deliver exceptionally high standards of work in the currently difficult and competitive conditions. The objectives of the Charity Times Awards are to support continuing professional development and contribute towards raising the standards of charity management and promote and raise the profile of the charity sector. Entry is free and open to any UK-based registered charity, or international charity with registered UK offices. Other not-for-profit organisations may be allowed to enter at the discretion of the judges. There are 28 award categories for 2015 and charitable organisations are able to enter into more than one category, and are encouraged to nominate themselves.Further details along with the entry form can be found on the Charity Times Awards website The deadline for entries is 27 May 2015.
New York City’s Department of Cultural Affairs will conduct a wide survey of its cultural institutions this summer. According to The New York Times, it will cover the diversity of board members, hired staff and even the audiences for institutions from museums to public gardens. A private non-profit vendor will be selected to administer the survey. There is no indication what the data will be used for at this time, but according to Tom Finkelpearl, the city’s Commissioner of Cultural Affairs, the report will show by sector what can be learned from how people develop audiences and staffs and boards, highlighting the positive, sharing best practices. The survey looks to address what is likely a nationwide situation with the arts and other publicly financed cultural organizations. As Finkelpearl says, “Over 90 percent of staffs at museums nationally are white.”
A new university is set to open in 2017 with the aim of providing work-ready graduates for the science, technology and engineering sectors. The university, the New Model in Technology and Engineering (NMITE), based in Hereford, aims to help address the UK's skills shortage in engineering and technology. Supported by leading universities, engineers, businesspeople and politicians, students will not be taught traditional degrees such as civil engineering, but applied engineering degrees, that focus on security and cyber defence, advanced manufacturing, and green and renewable technologies sectors. This will be combined with a broad range of applied analytical thinking, innovation, interpersonal and leadership skills that employers seek. According to the latest CBI Education & Skills Survey, 48 per cent of employers preferred graduates with science, technology, engineering and maths (STEM) qualifications. However 39 per cent of organisations requiring STEM skills expressed difficulties recruiting such staff. Leading figures from John Lewis, GlaxoSmithKline and JCB will act as advisors to the UK university, as will Bristol and Warwick Universities in the design and content of courses. NMITE, celebrated as Britain's first “greenfield" university to open in 40 years, will operate as a not-for-profit private operation. The campus will be built with private funding from business, other philanthropic sources, government and the EU. Future running costs will be met by tuition fees and funding from industry. NMITE will welcome its first 300 students in September 2017.
The UK has passed a bill that enshrines in law its commitment to spend 0.7% of its gross national income (GNI) on aid every year, making it the first G7 country to meet the UN’s 45-year-old aid spending target. The international development bill passed its third reading in the House of Lords on Monday and will now receive royal assent. Britain met the 0.7% target for the first time last year when it spent £11.4bn – or 0.72% of its GNI – on overseas aid.
The eCommerce Awards for Excellence are designed to reward the activities of the UK's ecommerce industry. The awards celebrate the country's presence in ecommerce excellence and winners will be showcased as inspirational companies. Winners will receive a trophy to commemorate their success and will also benefit from the kudos of being declared the winner in their particular category along with associated PR and profile-raising benefits. There are numerous categories which cover every part of the ecommerce chain, from marketing and website design to payment, fulfilment and customer service. This year, the categories for eCommerce Awards 2015 are split into four groups: Industry, Innovation, Specialist and General. Online retail businesses operating in the UK may enter these awards. The 2015 awards ceremony will take place on 30 September 2015 at the Marriot Hotel, Grosvenor Square, London. The deadline for entries is 1 June 2015. See the website for more details.
The regional charity RAISE has launched a new £125,000 Challenge Fund to help voluntary groups and charitable organisations in the South East of England to grow, develop and overcome barriers. The RAISE Challenge Fund has been established in partnership with the regional charity RAISE and the Community Foundations of the South East of England to support aspirational thinking and innovation in the voluntary and charitable sector. RAISE wants to help groups and organisations to achieve greater results for their local communities by supporting them to grow, develop and overcome barriers. Voluntary groups and charitable organisations in the South East of England are invited to apply for grants of between £2,500 and £10,000. There is £125,000 available in total, and RAISE envisions awarding around half of the grants in the £2,500 - £5,000 range and half in the £8,000 - £10,000 range. Each application will be considered on its own merit and larger grants may, in exceptional circumstances, be considered. RAISE is also offering optional ‘grant plus’ support packages in addition to funding. These packages are designed to offer support to applicants before, during and after the application process. While funding is primarily intended for developmental activity, short term projects that can be shown to deliver significant change in a group’s capability will also be considered. Applications will be assessed on their creativity, reach and predicted benefits, and priority will be given to organisations that may find it difficult to find funding elsewhere because of restrictive application criteria. There is a two-stage application process. Groups must first fill out an online Expression of Interest form which can be found on the Community Foundation for Surrey website. Successful applicants will be invited to fill out a full application form. RAISE staff will be on hand to provide support to groups invited to the application stage to help them develop a strong application that meets the Fund criteria. All Expressions of Interest must be submitted by 31 May 2015. Further information is available on the Community Foundation for Surrey’s website.
The 2015 British Franchise Association (bfa) Franchisee of the Year Awards are open for entries, with £10,000 on offer for the UK's best franchise manager. The awards invite entries from franchising firms across the UK, providing cash prizes for five top nominees at an awards ceremony in the autumn. Entrants may enter one franchisee in up to three categories. Alternatively they can enter a different franchisee for each of the categories. 2015 categories: Female Franchisee of the Year; Young Franchisee of the Year (aged under 30); Olderpreneur Franchisee of the Year (aged over 55); Award for Franchisee Customer Service; Micro Business Franchisee of the Year; B2B Franchisee of the Year. Awards will also be provided in recognition of franchisees across five different regions - London and the South East, South West and South Wales, Midlands and North Wales, North, and Scotland and Northern Ireland. The bfa HSBC Franchisee of the Year, chosen from the winners of the five sub award categories, receives £10,000 courtesy of HSBC. Each of the category winners receives a trophy and £1,000 from HSBC. Franchisors are able to nominate five franchisees, with one nomination per region. The deadline for receipt of entries is 29 May 2015. See the website for more details.
While there have been many achievements on gender equality since the Beijing Declaration on women rights was signed by 189 governments in 1995, many challenges remain, including a motherhood pay gap, says the ILO. Women continue to experience widespread discrimination and inequality in the workplace. In most parts of the world, women are often in undervalued and low-paid jobs; lack access to education, training, recruitment; have limited bargaining and decision-making power; and still shoulder responsibility for most unpaid care work. Globally, the gap in labour market participation rates between men and women has decreased only marginally since 1995. Currently about 50 per cent of all women are working, compared to 77 per cent of men. In 1995, these figures were 52 per cent and 80 per cent respectively. It is estimated that reducing the gap in participation rates between men and women by 25 per cent in G20 countries by 2025 would add more than 100 million women to the labour force. Access to maternity protection has improved, though many women are still left out. While the percentage of countries offering 14 weeks or more maternity leave has increased from 38 per cent to 51 per cent, more than 800 million women workers globally, or 41 per cent of all women, still don’t have adequate maternity protection. At the same time, states are increasingly recognizing men’s care responsibilities. In 1994, 28 per cent of countries surveyed provided some form of paternity leave. As of 2013, this figure had increased to 47 per cent. Today women own and manage over 30 per cent of all businesses, but tend to be concentrated in micro and small enterprises. Women sit on 19 per cent of board seats globally, and only five per cent or less of the CEOs of the world’s largest corporations are women. While men are beginning to take on more care responsibilities, women continue to shoulder most of the responsibility for family care, often limiting their access to paid employment completely, or confining them to part-time positions, which are typically not as well paid. For example, in the European Union (EU), women spend an average of 26 hours per week on care and household activities, compared with nine hours for men. Violence remains a major factor undermining women’s dignity and access to decent work. Some 35 per cent of all women are victims of physical and/or sexual violence that affects their attendance at work. A gender pay gap persists, both for women with and without children. In general, women earn on average 77 per cent of what men earn, with the absolute gap widening for higher-earning women. The ILO has noted that without targeted action, at the current rate, pay equity between women and men will not be achieved before 2086, or at least 71 years from now. In addition, the ILO says it appears that the unadjusted motherhood gap tends to be larger in developing than developed countries. Globally, the motherhood pay gap increases with the number of children a woman has; in many European countries, for example, having one child has only a small negative effect, but women with two and especially three children experience a significant wage penalty. In developing countries, evidence suggests that the sex of the child may matter as daughters may be more likely than sons to help with household and caring tasks, thereby reducing the motherhood gap.
The Department for Business, Innovation and Skills (BIS), in partnership with the Scottish Government and Invest NI, has published the findings of the 2014 Small Business Survey, which provides a comprehensive overview of the current state of small and medium-sized enterprises (SMEs) in the UK. The survey involved telephone interviews with 4,355 businesses that each employ between one and 249 members of staff. A wide range of topics were covered in the questionnaire, including recent growth in SME's sales turnover and staff levels, barriers to success, the capabilities of managers and owners, access to finance and use of business support. The findings were also compared with the results of the 2012 version of the survey in order to demonstrate how the situation facing SMEs has evolved over time. Some of the key findings from the survey include: 78% of businesses surveyed made a profit in the previous year. Additionally, 40% of SMEs had increased their turnover since the previous year, 39% had approximately the same turnover while 18% reported a fall from the previous year’s figure; Businesses involved in manufacturing and business services reported the greatest turnover growth at 48 and 47 per cent respectively; The economy was the most commonly cited obstacle to economic success overall, with 13% of businesses citing this as the main obstacle. However, this has improved markedly since the 2012 survey, when 38% of businesses cited the economy as their key barrier to success; 19% of SMEs applied for finance in the previous twelve months. Of these, 39% reported difficulty in getting these funds, including 30% who were refused money outright. The report explores all of these areas and more in great detail, providing various graphs, charts and statistics that help to break down the vast quantity of data gathered during the construction of the survey. The results of this survey will in turn play a vital role when the continued evolution of small and medium-sized businesses is assessed in the future.
The multilateral lender says this funding is mainly meant to leverage on the oil and gas sector for the development of a competitive private sector in Uganda. The World Bank has announced a $160m dollar credit for Uganda that will be directed towards skilling and enterprise development around the oil and gas industry. The multilateral lender says this funding is mainly meant to leverage on the oil and gas sector for the development of a competitive private sector in Uganda. The World Bank is asking government to move with speed and ensure progress in the oil sector that has seen delayed licensing approvals and activity.Uganda currently, has 6.5 billion barrels of oil deposits, with projected forecasts of a 60-Barrel Per Day refinery and oil pipeline in the offing.
The Africa Finance Corporation (AFC) has overseen the ground-breaking of the $900 million Kpone Independent Power Project (Kpone IPP) in Ghana, implemented by the Cenpower Generation Company Limited. AFC is the lead project developer, mandated lead arranger and largest equity investor in Kpone IPP, which reached financial close in December 2014. Kpone IPP is a $900million project comprising a 350 megawatt (MW) combined cycle gas turbine power plant, a 161kV substation, liquid fuel (Light Crude Oil and Distillate) storage, delivery and supply infrastructure and working capital financing for fuel. It will be the largest IPP in sub-Saharan Africa, and as a CCGT plant it will be amongst Ghana’s most fuel-efficient thermal power stations. The project, located in the Tema Industrial Zone, near Accra will provide an additional 10 per cent of Ghana’s generation capacity, approximately 20 per cent of its available thermal generation and supply power to approximately one million households, when it comes on-stream in 2017. KponeIPP has already been awarded the prestigious Thomson Reuters “African Power Deal of the Year” award for 2014.
Indian public-owned consortium, International Coal Ventures Limited (ICVL) has invested $2 billion in Mozambique’s mining sector, including the construction of a power generation plant. The sum includes a project to transform coking into liquid fuels, in addition to mining within three years of 13 million tons of coal annually. ICVL was formed as a special purpose vehicle for Indian state-owned steel companies, Steel Authority of India (SAIL) and Rashtriya Ispat Nigam Limited (RINL), the largest producer of iron ore, National Mineral Development Corporation Ltd and Coal India with a registered capital of $1.62 billion. Last year, the consortium acquired three coal mines in Mozambique’s Tete province from mining giant Rio Tinto group for over $50 million. Rio Tinto used to control 100 percent of Zambeze and Tete Oriental coal mines and 65 percent in Benga mine in Tete province. There are large mineral deposits, in Mozambique but exploration has been constrained by the civil war (1977–1992) and poor infrastructure. The mining sector in Mozambique contributes less than 5 percent of the country’s GDP. Mozambique exported its first batch of coal in 2011 and expects to become the world’s largest coal exporter. It is also spending about $50 billion in infrastructure projects to access its coal reserves.
Kenya’s 2014 mobile money use surged to a record 26.1 billion U.S. dollars, an increase of about 4 billion dollars from previous year. This is a new high in the use of the technology that has transformed lives in the East African nation, boosted e-commerce and enhanced saving culture among Kenyans. The 26.1 billion dollars annual use, which new data from Central Bank of Kenya (CBK) has showed, means that Kenyans are transacting 72 million dollars a day on mobile money platforms, 3 million dollars per hour or 50,000 dollars a minute. This is a rise from 61 million dollars a day, 2.6 million dollars an hour or 43,333 dollars a minute in 2013. Mobile money is deeply entrenched in the lives of Kenyans, making East African nation the global leader in the technology. As in previous years, the bulk of the transactions last year were conducted in December, where use peaked to 2.5 billion dollars as Kenyans send money to their family and friends for Christmas. Analysts attribute increased usage of mobile money in the East African to two things. First is the licensing of three other players into the sector and second is the embracing of the platform by small businesses. Communication Authority of Kenya in April last year licensed Tangaza Pesa, FinServe and Zioncell, mobile virtual network operators, to enhance competition in the industry dominated by Safaricom’s Mpesa, which has over 95 percent market share. Other telecoms that offer the service are Airtel (Airtel Money), Orange (Orange Money) and Yu (Yu Cash). The CBK data showed that the move to license more players led to increased usage of mobile money. During the period in review, CBK data indicated that the number of mobile money agents rose to 123,703 in December up from 114,107 in January 2014 while the number of transactions per month closed the year stood at 85 million, up from 67 million.
According to a study published by consulting firm BCG, an estimated 251 million people in sub-Saharan Africa will be banked via mobile by 2019. The firm estimates that 400 million people will in 2019 possess a mobile phone in sub-Saharan Africa and will, thanks to their growing income, require banking services. Of this figure, only 149 million will be directed to traditional bank networks. Because of the lack of accessible banks branches for everyone and income not allowing them to afford basic banking services fees, there will be 251 million people available for mobile banking. BCG also believes that M-banking services in 2019 will generate at least $ 1.5 billion of revenue on payment services alone. Revenues are expected to be much higher if we take into account the savings, insurance, and to a lesser extent the credit. According to the study, banks and telecom operators each have the capability of taking advantage of this growth in mobile banking market.
The government of India has given Ghana a $150 million line of credit to support the country's agriculture sector, according to a report by the Indo-Asian News Service. According to the report, the fund will support the implementation of an Agricultural Mechanisation Service Centre (AMSEC) and projects intended to provide farmers in the country with affordable and timely access to farm machinery. Ghana's Interior Minister, Mark Owen Woyongo was cited in the report to have said India has also provided another $30 million line of credit to be used for the rehabilitation and upgrade of potable water in Yendi in the northern region. Under the AMSEC project, farmers will benefit in their land preparation with planters for precision planting, boom sprayers and pumps for proper crop maintenance, and combine harvesters for effective harvesting. Other goals of the AMSEC programme are to increase the low number of tractor to farmer ratio as well as reduce the drudgery and tediousness associated with manual farming operations, the report noted. Agriculture is an important contributor to Ghana's economy, providing employment to about 60% of the population and contributing 22% to GDP in 2013. According to the Indian government, it has to date extended lines of credit amounting to $224 million to the Ghana government for a number of developmental projects.
Bloomberg has ranked Kenya third in a global survey of economies projected to register the fastest growth this year, placing the country ahead of other emerging markets in Africa. According to a Bloomberg survey of 57 countries, Kenya’s projected six per cent growth rate this year would see it join China, India, Philippines and Indonesia as the only economies hitting a five per cent growth rate. These countries together make up about 16 per cent of global gross domestic product. The survey ranked China and Philippines first and second respectively. The Bloomberg survey is the latest to put Kenya’s projected growth at six per cent or better, showing increased confidence in the economy at a time the country is tackling problems in leading sectors such as tourism caused by insecurity. According to Bloomberg, emerging markets in Asia and Africa are at the top of global growth projections over the next two years. According to the survey, world economies are expected to grow on average by 3.2 per cent in 2015 and 3.7 per cent next year after expanding 3.3 per cent in each of the past two years. Nigeria, Africa’s largest economy, is projected to expand 4.9 per cent this year, and is the only other African country in the top 20 of those surveyed for the Bloomberg report. Other institutions projecting the Kenyan economy to grow at six per cent or better include Citi, the World Bank and the Treasury. The 2015 outlook report by Citi and country rating by Fitch projected a six per cent growth for the economy, thanks to lower fuel costs, which are expected to result in falling general prices and dividend from investing in infrastructure projects. According to analysts, Kenya has in the past struggled to attain its true growth potential of above six per cent due to a host of challenges, including political uncertainties, periodic droughts and frequent attacks blamed on terrorists.
Airtel Kenya has spent Sh2.5 billion on upgrade of its network across the country to boost its 3G high-speed Internet access as it takes on market leader Safaricom, which is already rolling out 4G connectivity. Increased proliferation of smartphones has raised demand for data services, providing a new growth avenue for the telcos. Airtel is upgrading its Internet network to improve indoor coverage penetration and data quality for 3G Internet users. The upgrade has been finalised for sites in Mombasa and Kitale, with works in Nairobi nearing completion. Airtel is partnering with mobile broadband Nokia Networks in the upgrade project that would see customers enjoy the recently launched bundled tariff dubbed #UnlimiNet. Following the upgrade, customers will also be better placed to take advantage of other data services such as free Twitter on Airtel Internet, Internet.org- free Internet powered by Airtel and Facebook.
The African export-import bank (Afreximbank) has announced that it has signed loan agreements of totaling $180 million (104 billion CFA Francs) to four Ivorian public companies to support their investment programmes. The institution has granted a credit facility of €50 million ($56 million) to the Autonomous Port of Abidjan in the context of a syndicated loan of €200 million ($226 million) to finance the building of a second container terminal. Afreximbank is part of the banking pool which granted this syndicated credit, along with Banque Atlantique and Société Générale. A €50 million loan was also granted to the Abidjan public transport operator Sotra to fund the “acquisition of 500 additional buses, 12 water buses and a new ticketing system”, and a credit facility of €30 million ($33 million) to the National Investment Bank (BNI, Banque Nationale d’Investissement) to help it “finance Ivorian small and medium-sized enterprises who cannot meet the criteria for access to direct funding”. A €29 million ($32 million) loan was granted to the Ivorian company for textile development (CIDT, Compagnie Ivoirienne pour le Développement des Textiles) to fund “the purchase of inputs and cotton grains for the agricultural campaign”. These credit facilities are part of the Côte d’Ivoire country Plan (Programme pays pour la Côte d’Ivoire), approved in 2013 for an envelope of $550 million. This 3-year plan aims at “supporting and facilitating the country’s economic recovery following the prolonged political crisis it has experienced”.
The countries of the West African Economic and Monetary Union (WAEMU) should record an economic growth of 7.2% in 2015, which is higher than China, who is targeting 7%. According to figures released by the Central Bank of West African States (BCEAO), gross domestic product in the region increased by 6.6% in 2014, against 5.9% in 2013. The WAEMU zone’s results are particularly driven by Ivory Coast, which recorded strong growth since the end of the civil war: 9.8% in 2012, 8.7% in 2013 and 8 to 10% planned for 2014 thanks to public investments in infrastructure among others. WAEMU comprises eight Member States: Benin, Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal and Togo.
The launch of a new gas pipeline in Mozambique is expected to help with both the country’s energy shortage and that of South Africa’s. The Republic of Mozambique Pipeline Investments Company (ROMPCO), announced the completion of gas transmission capacity named Loop Line 1 that was built to transport gas to customers at the energy hub of Ressano Garcia in Mozambique. ROMPCO is a joint venture between Sasol, Companhia Mocambiçana de Gasoduto S.A. and South African Gas Development Company (SOC). The expansion in capacity enables the generation of more than 400 MW of power, which could power 320 000 households at Ressano Garcia and also enable further in-country monetisation of gas for Mozambicans. The 865km gas pipeline runs from the central processing facility (CPF) at Temane in Mozambique to Secunda in South Africa. The project involved the installation of a pipeline in parallel to its existing one. Loop Line 1 was also built to transport gas to customers in the Central Térmica de Ressano Garcia (CTRG) gas-to-power facility, the Matola Gas Company and Empresa Nacional de Hidrocarbonetos (ENH). The joint venture owns the 865km pipeline through which the gas purchased from Mozambique is transported to South Africa and to Ressano Garcia in Mozambique.
Nigeria is PayPal’s second largest market in Africa according to the company’s head of business development, sub-Saharan Africa. South Africa remains the company's highest market in Africa with over a million accounts, followed by Nigeria and Kenya. PayPal has been widely welcomed by Nigerians since the launch of the service in the country last year and, according to the company, the service is meeting the needs of millions of Nigerians that want to engage in ecommerce on foreign platforms. Currently, they offer Nigerians the opportunity to register for free for a PayPal account to make payments on overseas websites and, over time, they plan to expand their service offering in Nigeria to include services that will lead to better experiences in online and mobile payment methods in Nigeria.
Kenya is set to become one of the top five fastest-growing economies in Sub-Saharan Africa, with growth rates rising to between six and seven per cent over the next three years, according to the World Bank. The latest Kenya Economic Update (KEU) projects the country’s growth to rise from 5.4 per cent in 2014 to up to seven per cent between 2015 and 2017. The report also says that external and internal balances are expected to improve significantly, thanks to falling oil prices. In addition, public investment in infrastructure, mainly in energy and the standard gauge railway, will strengthen growth in the medium term. The report says that the country’s expansive fiscal policy allowed it to finance major infrastructure projects without putting excessive pressure on domestic financing. However, some challenges remain. In particular, sluggish demand for exports and their declining production is widening the country’s current account deficit. The report suggests that in order to anchor and sustain growth, Kenya needs to boost productivity and improve the business environment to regain and increase its competitiveness. In recent years manufacturing’s contribution to Kenyan exports and growth has fallen behind and performance has been less than optimal. A strong manufacturing sector would create more employment, especially for young people in Kenya. The report suggests that this would also increase exports and reduce the country’s external vulnerability from a widening account deficit. The report highlights key steps for Kenya to take, including implementing the business reform agenda, completing reforms at the port of Mombasa, improving the efficiency of its massive infrastructural projects, strengthening governance, improving productivity and continuing to maintain macroeconomic stability.
African individuals with 30 million US dollars in assets is set to more than double over the next decade, this is according to The Wealth Report 2015. The Wealth Report 2015 compiled by Knight Frank with support from Standard Bank Wealth and Investment, said the number of ultra-high-net-worth individuals is set to surge 59 per cent over the next 10 years, stronger than the 34 per cent projected global growth. According to the report, it will be a case of the of Mexico, Indonesia, Nigeria and Turkey (MINT) trumping Brazil, Russia, India, China and South Africa (BRICS). The average expected uplift for MINT countries is 76 per cent over the next decade, which narrowly defeats the 72 per cent for BRICS nations, according to research which includes the Global Cities and Global Attitudes annual surveys. The global average is just 34 per cent and the average increase expected across the G8 developed nations is 28 per cent. According to Margaret Nienaber, global chief executive of Standard Bank Wealth and Investment, the market is evolving with positive future growth in key African countries like Nigeria, which has one of the strongest forecast growth rates in high-net-worth individuals over the coming decade. Africa is one of the regions of the world with huge potential to grow its wealth, driven by a rising middle class and the increased success of many businesses. According to the report, Johannesburg stands out as the most important African city after ranking as the 28th most important city for ultra-high-net-worth individuals and Cape Town, the 36th.
Kenya and Rwanda have connected their stock markets electronically to boost investments between the two countries and as a gesture of commitment to the regional integration of the capital markets. Four Kenyan companies have cross-listed on the Rwanda Securities Exchange (RSE) in anticipation of booming business between the countries. These are Nation Media Group, Equity Bank, Kenya Commercial Bank and Uchumi Supermarkets. Robert Mathu, the executive director of the Capital Markets Authority of Rwanda, said automation of the EAC members’ stock markets forms a key pillar of the capital markets integration. Market intermediaries will be able to offer their services in each of the EAC member states. As part of the process towards unified capital markets, a set of 15 directives were adopted by the EAC Council of Ministers in November 2014 and are only waiting for a transposition by the EAC member states. The directives were on takeovers and mergers, investor education and protection, anti-money laundering, securities depositories, conduct of business by licensees, securities exchanges and licensing of market intermediaries. Others are EAC corporate governance on listed companies, public offer of debt securities, public offers on equities, corporate governance for securities market intermediaries, admission to secondary trading, Asset Backed Securities , regional listings on securities markets and collectives Investment schemes. The EAC Common Markets Protocol which became effective on July 1, 2010, prioritizes regionalization of the East African Capital Markets with the aim of providing an opportunity for the growth and deepening of the capital markets in the region to promote economic growth. It is argued that well integrated regional markets will allow issuers to tap regional capital market to raise capital required to meet the costs of major infrastructural development and commercial ventures.
Oil and gas company Tullow is scaling up its exploration operations in northern Kenya with the planned construction of a mammoth logistics centre that signals the transition to the critical wells appraisal stage. Tullow is building the new camp on a 426-acre parcel of land leased from Turkana residents in Kapese. The facility is located seven kilometers from Lokichar – one of the areas it has struck oil. The oil firm said the project is informed by the challenges its operations in Block 10BB and 13T are facing with the provision of adequate camp facilities, material storage yards and work areas for contractors. The plan is to have the new base replace Tullow’s four sites, currently located in the Lokichar and Turkana basins. It will, among other things, be capable of holding approximately 1,200 workers and larger aircraft. The firm has set aside Sh9.1 billion for its exploration and appraisal activities in Kenya this year. It has, however, not disclosed what portion will go into building the new integrated support base (ISB). Tullow’s massive investment in the base is significant because Block 10BB holds the Amosing and Ngamia wells, the two locations where the company has made oil finds in varying amounts since its first announcement in 2012. Extended well tests on Ngamia basin are set to begin mid next year while tests on the Amosing well are set to begin next month, a crucial stage in determining the amount of commercially viable oil in the Turkana basin. Mid last year, Tullow pledged to meet the government’s target of commercialising oil by 2017, even as it described the resource discovered as being of high quality and highly marketable internationally. Tullow, which is Britain’s fourth-largest oil and gas firm, and its partner Africa Oil have struck commercially viable oil deposits totalling 600 million barrels in Turkana’s Lokichar basin. The 2017 target, and the growing number of successful resource finds in the two highly promising blocks in northern Kenya, has necessitated the latest investment in a new camp. Phase one of the new base will include a community liaison office, a 400 man camp, a contractors’ work area, a fuel and maintenance facility, security and information systems offices and a logistics centre. The second phase of the multi-million shilling project will include construction of a central power plant, fuel distribution and water treatments systems, an 800- man camp, an air terminal and medical centre. The investment by Tullow in Kenya comes at a time when the company is cutting back on expenditures as part of measures taken in the wake of falling international prices of crude. Tullow Oil in January announced that it would slash its global exploration budget by Sh9.1 billion ($100 million), but added that it will continue focusing on its East African business.
Mauritius Commercial Bank (MCB) Group will further its expansion in Mozambique in partnership with Société Générale. As per an agreement signed yesterday, Société Générale will become a shareholder of MCB Moçambique. This operation is subject to the approval of the central bank of Mozambique. MCB Moçambique started operating in Maputo in August 1999 in order to better serve Mauritian entrepreneurs venturing into Africa. Over the years, it has widened its client base and now serves all the sectors of the Mozambican economy through two branches located in Maputo and Matola. By joining forces, MCB Group and Société Générale will provide the bank with important resources that will enable it to offer more services – particularly in terms of financing to local and international businesses – and extend its network of branches in a fast developing country.
Bharti Airtel, the global telecommunications services provider with operations in 20 countries across Africa and Asia, has announced the launch of a cross-border money-transfer service for Airtel Money customers between The Democratic Republic of Congo (DRC), Zambia and Rwanda. This initiative will extend the level of convenience already experienced by Airtel Money customers in the countries, facilitating increased remittances and regional trades at very low cost with ubiquitous distribution network. Already, Airtel Money has in excess of 20,000 agents across the three countries. The average fee to remit money in Africa is the highest of any region in the world; it is cited by the ODI (Overseas Development Institute) as lying anywhere between 12%-20%. The World Bank recently reported that an additional $4 billion could go into the hands of Africans if international remittance fees fell to 5% (G8 average) adding further to the positive social and economic impacts of remittances as a source of income. With over 30million customer wallets in 17 countries, Airtel Money is at the forefront of efforts to create entire cashless payments ecosystems, deepen financial inclusion and reduce transaction costs across Africa.
Strong foreign investor participation in 2014 gave regional bourses their best year on record with most investors making handsome returns, especially at Tanzania’s Dar es Salaam Stock Exchange (DSE), which was ranked Africa’s’ best stock exchange last year. The local companies index climbed 27 per cent last year, the highest in the region. In August last year, Tanzania removed the 60 per cent cap on foreign investors, making shares of some of the country’s largest, most profitable companies accessible to non-Tanzanians for the first time in years. The resulting inflow of foreign cash improved the bourse’s performance. According to global financial reporting firms Bloomberg, CBS and Thomson-Reuters, the Egyptian Stock Exchange came in second with its main index achieving a 31.6 per cent increase while the Uganda Securities Exchange (USE) emerged third with a jump of 26.5 per cent. The Nairobi Securities Exchange (NSE), which emerged fourth, registered a drop, emerging at 19.2 per cent. Tanzania’s’ DSE was also the best performing bourse in Africa in terms of market capitalisation, which grew by 40 per cent to $12.04 billion, while domestic stocks grew by 66 per cent during the year. DSE chief executive Moremi Marwa said the results showed strong investor confidence in the bourse coupled with reforms that were working for the benefit of the Tanzania economy. 2014 saw the total number of listed companies on DSE increase to 22, of which 14 were domestic, seven cross-listed from Nairobi Stock Exchange and one from the London Stock Exchange. Previously, Tanzania only allowed investors from within the East Africa Community to purchase up to 40 per cent of offered government securities while individual countries were not allowed to purchase more than two thirds of the 40 per cent quota. Tanzania Cement Company, the country’s second-largest cement manufacturer, was one of the best performing counters, earning year-to-year returns of 124.2 per cent. Other top gainers were Twiga, which gained 50 per cent; Tanzania Breweries Ltd, which gained 76 per cent; CRDB Bank gained 54 per cent while the Tanzania Cigarette Company gained 94 per cent. Swiss port gained 87 per cent, DCB Commercial Bank gained 47 per cent while National Microfinance Bank gained 30 per cent. According to the CMA, the best performing stocks on the Kampala bourse last year included British American Tobacco, whose share price rose by 85.31 making a return on investment of 65.1 per cent, electricity distributor Umeme, which saw its share rise by 38.36 per cent, making a return on investment of 105 per cent. The manufacturing and allied sector had the best performance, growing by 409.36 per cent while the energy and petroleum sectors grew by 0.8 per cent. The returns in the commercial and services and the construction and allied sectors dipped by 6.85 per cent and 1.89 per cent respectively while the telecommunications and technology sector rose 29.49 per cent, and the Growth Enterprise Market Segment grew by 0.8 per cent.
Over two thirds of all Japanese-led deals over the past decade have focused on Nigeria, says global law firm, Linklaters LLP. This would make Japan the biggest Asian investor in Nigeria. The firm further stated that Japan now ranks as the most active Asian project finance sponsor in Africa as a whole. According to the firm, over the last 10 years, the level of project finance investments sponsored by Asian funds in Africa has increased by over 160 per cent. The amount of fresh capital poured into the continents’ projects such as roads, water sanitation plants and oil and gas pipelines in the last year alone stands at 4.16 billion dollars. Japanese investors, in particular, have ramped up their project finance commitments in Africa by 576 per cent – 3.54 billion dollars were invested last year alone as a result of a large focus on projects in Morocco. Linklaters stated that China ranks as the second biggest Asian sponsor into Africa, committing in excess of 11.9 billion dollars of project financing over the past decade, almost half focused on South Africa. The most attractive project finance investment destinations in Africa for Asian sponsors over the last ten years have been Nigeria, attracting 22.8 billion dollars, South Africa at 6.8 billion dollars, Mozambique at 5.9 billion dollars, Egypt at 5.48 billion dollars and the DRC at 5.36 billion dollars.
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