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

 

Coca-Cola Foundation Pledges $4.5 Million to Life Skills Training for African Youth

The Coca-Cola Africa Foundation (TCCAF) has pledged $4.5 million towards a new youth empowerment initiative that will provide life skills training, business skills training and access to employment and mentoring for 25,000 young Africans. The Youth Empowered for Success (YES!) program will empower marginalized youth in six African countries and will leverage technology and strategic partnerships to accelerate and scale the initiative to provide opportunities to many more youth across the continent. The YES! initiative will be introduced in Kenya, Tunisia and South Africa in phase one before being implemented in Liberia, Nigeria and Uganda through TCCAF and implementing partners Mercy Corps, Microsoft, Harambee Youth Employment Accelerator and Kuza Biashara. The program will address critical development and life skills for 18-35 year old unemployed and underemployed young Africans, and provide access to sustainable economic opportunities created through employment or entrepreneurship. During the first three years TCCAF aims to provide proof of concept for a scalable and replicable model with the ambition to reach 500,000 youth by 2020 by establishing strong partnerships with private sector, NGO, government and civil society organizations. The YES! program will focus on four strategic program pillars. TRAIN will prepare youth for jobs and provide high impact market-driven skills, LINK will connect youth to employment opportunities, THRIVE will focus on supporting youth to succeed in jobs and entrepreneurship and ENABLE will drive collaboration with governments, private sector and civil society to provide an enabling employment to facilitate access to jobs for youth. In each country, implementing teams will conduct youth-led assessments to identify opportunities and limitations in regional labour markets. Additionally, the YES! program will pioneer an innovative new web and mobile technology platform in each country that will significantly expand access to all YES! services to thousands more youth. Finally, YES! Will create entrepreneurship opportunities to some of the YES beneficiaries through the YES! Hubs, a unique retail and social services center, that will be owned and run by youth, and provide young people with connectivity to technology platforms and access to training, mentors and skills training as well as ongoing support and advice for retail entrepreneurship.

Scottish Government Launches International Development Grants Programme

The Scottish Government has launched the third year of its £500,000 International Development Small Grants Programme which supports small international development agencies in Scotland. Administered by Lloyds TSB Foundation for Scotland, the small grants programme is open to small Scottish-based Non-Governmental Organisations (NGOs) to plan, implement or expand programmes helping some of the world's poorest communities. This grants programme has been designed to nurture Scottish expertise in international development, encourage innovation and increase the scope and size of international NGOs in Scotland. The programme is intended to accommodate smaller requests. Project grants up to £60,000 are available for over a three-year period. A maximum of £10,000 for feasibility and capacity building grants are available to cover a one-year period. The funding must go to projects in Scotland's international development priority countries: Malawi, Rwanda, Tanzania, Zambia, Pakistan, Bangladesh and the Indian States of Bihar, Madhya Pradesh and Orissa. The deadline for applications is 25 November 2015 (12 noon). Full details can be found on the Lloyds TSB Foundation's website

Recruitment Delays Getting Longer, says Report

The time it takes an employer to offer their chosen candidate a job has “grown dramatically” in recent years, according to international analysis from employer ratings website Glassdoor. Researchers examined a sample of 344,250 interview reviews from six countries to discover the length of hiring delays and what was causing them. It found that average interview processes have grown by 3.3 to 3.7 days since 2009. Results outlined in the report ‘Why Is Hiring Taking Longer?’, showed that expanding interview processes are a major factor behind the growing trend in delayed job appointments. UK employers take an average of 28.6 days to quiz candidates, however, this is still a swifter process than in France, where it can take up to 31.9 days, and Germany where the interview process averages 28.8 days. But relatively speedy Canadian recruiters spent just 22.1 days interviewing prospective employees, in the US it takes 22.9 days, and in Australia it was 27.9 days. Glassdoor analysts looked at how a wide variety of factors have influenced the way employers screen candidates from changes in their own industry, to shifts in employment law and culture, the growing complexity of job roles, and shifts in employer job interview methods. The report found that employer hiring policies “have a large effect on the length of the interview process”. For example, decisions to require group panel interviews, candidate presentations, background checks and skills tests, all have a statistically significant effect on hiring times. And tougher screening procedures, which can include drug tests, have become more common among employers. The report said: “All of the recent growth in hiring process appears to be driven entirely by economy-wide shifts in the composition of employers, job titles, hiring industries, and company HR policies.” However, the report also said: “While most factors we examined are beyond the control of individual job seekers and employers, one important set of factors is not: the number and type of job interview “screening” methods chosen by company HR management. Of the job screening methods we examined, all have a positive and statistically significant effect on job interview durations.”

Industry Body Calls for More Women in STEM Jobs to Plug UK Skills Gaps

UK employers in Science, Technology, Engineering and Maths (STEM) led sectors will need a million more engineers and technicians in the next five years and attracting more women into the industry is part of the answer, according to sector bodies. Research by the Royal Academy of Engineering suggests that the country will need more than a million skilled employees in STEM based roles by 2020. But to meet this demand, the current number of annual engineering graduates and apprentices will need to increase dramatically. A study conducted by the campaign group Wise recently showed that the UK has the lowest proportion of women in engineering in Europe, with women making up less than 10 per cent of the workforce. In response to this dual problem, of skills shortages and a lack of gender balance, leading industry names including Professor Dame Ann Dowling, president of the Royal Academy of Engineering, and Sir James Dyson, have called for a change in the way a STEM careers are promoted. They, and others, have warned that misperceptions about STEM careers not being for women must be tackled to avert the skills crisis.

Diaspora Funeral Cash Plan Launches in UK

THE Diaspora Funeral Cash Plan has been officially launched in the UK. Underwritten by Zimnat Life (Zimbabwe) and Madison Life (Mlife, Zambia), the Diaspora funeral Cash Plan is an innovative cash-based funeral insurance which offers guaranteed acceptance for all applicants under the age of 75 without any cumbersome and intrusive medical checks on application or claim. The Diaspora Funeral Cash Plan, which is a cover for life and permanently a US$ denominated scheme, started in 2012. The cover is targeted at alleviating the many traumatic situations that diaspora families have faced over the years. Oftentimes, when they lose relatives in foreign countries or a close relative back home, many families struggle to send bodies of their loved ones to their final resting places. The cover is available for up to US$20,000 per life. With guaranteed acceptance and no medicals at all, the qualifying requirements for one to be covered are streamlined and tailored to ensure a hassle free claim process. Under the scheme, bereaved families get instant US$s cash pay-out at the death of their loved ones along with a range of other benefits targeted at alleviating the burdens that come with bereavement, especially in the diaspora. Being cash-based and permanently US$ denominated, the Diaspora Funeral Cash Plan offers complete flexibility as it is a worldwide cover, a protection without borders.

Tax evasion by multinational companies depriving Africa of $11 billion annually, according to Oxfam

Tax evasion practices by multinational companies are costing Africa $11 billion annually, explains anti-poverty NGO Oxfam in a report published on June 2nd, ahead of the G7 summit taking place this weekend in Bonn (Germany). To evade taxes and avoid customs duties, multinational companies use a simple system called “transfer pricing” that consists of “lying” about the sale prices of goods and services exchanged between subsidiaries. “A subsidiary will tend to overvalue imports and understate exports, which amounts to not declaring the added value where it is actually produced,” explains Nicolas Vercken, advocacy director for research at Oxfam France. Another major practice is to create competition between states. Anxious to attract foreign investment, developing countries offer generous benefits or accept unfair conditions imposed by powerful companies, fearing that they will go elsewhere otherwise”, denounces the Oxfam report.

NI’s Charity Commission Publishes New Equality Guidance for Charities

The Charity Commission for Northern Ireland has published new guidance to support the country’s charities in understanding how equality legislation as it affects them. The 39-page document 'Equality guidance for charities in Northern Ireland' is a useful resource for both established and new charities as charity trustees are obliged to be aware of all the legal requirements which may affect their charity. This includes knowing the law when setting up a new charity, registering or running a charity. According to the Charity Commission, equality legislation requires service providers, including charities, not to discriminate on certain grounds when they provide services to the public. There are, however, some exceptions for charities which allow them to be established or operate for the benefit of certain groups of people, and not others. A copy of the 'Equality guidance for charities in Northern Ireland' can be downloaded for free from the Charity Commission for Northern Ireland's website

Joseph Rowntree Foundation – New R&D Programme Calls Open Across UK

The Joseph Rowntree Foundation has issued new calls for proposals as part of the Poverty and Ethnicity Programme. A five-year programme to increase understanding of the relationship between poverty and ethnicity was launched by the Joseph Rowntree Foundation (JRF) in the spring of 2011 with the intention of using the findings to develop more effective ways of tackling poverty across all ethnic groups in the UK. As part of this Programme, JRF has launched the following four new calls: Poverty and Ethnicity: Support Partner for Practical Demonstration Projects. This call is for proposals to become JRF’s partner, supporting practical projects commissioned in the third phase. The chosen partner will be responsible for providing support to the project teams, monitoring progress and reporting to JRF, creating links between the projects and with JRF, and gathering the learning from the projects both during their life and at the end of this phase of work. Proposals from BME led organisations are particularly welcomed, although this is not a requirement. Organisations must however be able to demonstrate that their ethos is inclusive and supports race equality. The partner organisation would be due to start late 2015 for a maximum of two years (depending on the nature of the practical projects commissioned). The deadline for applications is 1 September 2015 (11:59pm). Community-Led Approaches to Reducing Poverty: A Review Of International Development Evidence And Practice. This is an open call for proposals to undertake a review of community led approaches to reducing poverty in neighbourhoods. International development seeks to implement long-term solutions to problems by working with developing countries to create the capacity needed to provide such sustainable solutions, and it is hoped techniques can be learnt from these models to replicate in the UK. A £20,000 project budget, including VAT and expenses, is available for one project only for four months. The deadline for applications is 22 September 2015 (11:59pm). JRF is interested in hearing from a wide range of organisations. Full details on all four new calls can be found on the Joseph Rowntree Foundation’s website

PayPal Buys Money Transfer Provider Xoom

PayPal has announced that it had struck a deal to buy Xoom, a digital money transfer provider, to broaden its services across the globe. PayPal will pay Xoom’s shareholders $25 a share, or about $1.09 billion. Excluding Xoom’s cash and short-term investments and including its debt, PayPal would end up paying about $890 million for the company. Xoom enables customers in the United States to send money to and pay bills for people around the world using their mobile phones, tablets, and computers. PayPal is set to be spun off from eBay so that it can attract more online merchants, which have shied away because they see eBay as a competitor. Xoom is part of a wave of upstarts challenging traditional money transfer businesses like Western Union in the enormous global remittances market, which the World Bank valued this year at about $600 billion. Frequently used by immigrants to wire money to family in their home countries, traditional global remittance services are often cash-based and rely on money agents in retail locations to complete transfers abroad.

UK STEM Job Vacancies Twice as Likely to be Unfilled, says Report

The risk of UK job vacancies being left unfilled in the science, technology, engineering and maths (STEM) industries is almost double the average for all occupations, research has shown. A report by the UK Commission for Employment and Skills (UKCES) revealed that 43 per cent of STEM vacancies are hard to fill, due to skills shortages, compared to a UK average of 24 per cent for other difficult to fill roles. It also found that high level STEM workers are less likely to receive training than their counterparts in other roles, indicating that employers must invest more in developing the skills of these workers. According to the report, five million people are employed in high level STEM roles, making these skills crucial to the success of the UK economy, in terms of jobs, productivity, innovation and competitiveness.Lesley Giles, deputy director at UKCES, said STEM skills underpin many of the industries at the forefront of the economy. Further findings revealed that engineering is the worst hit, with 60 per cent of vacancies in this sector classed as difficult to fill due to a lack of skills, followed by 40 per cent of vacancies for IT professionals. In comparison, the overall density of skills shortages across the whole UK labour market is around 22 per cent. The report also found that IT and engineering professionals are expected to have the greatest recruitment needs in the future.

‘Skills emergency’ presents major set back for UK growth, warns CBI

More than half of employers fear that skills shortages will undermine the UK’s economic growth, a survey from the CBI and Pearson has revealed. Research with 310 firms, which employ more than one million people in total, found that 55 per cent of respondents fear that they will not be able to access enough workers with the skills they need. On top of this, two thirds (68 per cent) of said that their need for people with a higher level skills is expected to grow in the years ahead. The survey showed that demand for highly skilled workers is particularly strong in sectors critical to the rebalancing of the economy – engineering, science and hi-tech (74 per cent), construction (73 per cent) and manufacturing (69 per cent). In addition to the increase in demand for higher level skills, the CBI has raised concerns that the government’s recently announced apprenticeship levy for larger employers will not deliver the high-quality, business-relevant training needed or do much to help small or medium sized businesses. Although the CBI agreed that it may fund more apprenticeships which will help meet the government’s target of creating three million new apprenticeships. However, the CBI explained that of apprenticeships starts in 2013/14, just 2 per cent were higher apprenticeships, which lead to qualifications at a level equivalent to higher education. More than a third of respondents (38 per cent) said that better matching of qualifications to business needs would get more companies involved in apprenticeships, as would putting more purchasing power in the hands of firms (34 per cent).

Surge in Kenya’s Mobile Money Transactions

Kenyan mobile money transfer users transacted 6.71 billion U.S. dollars in the first quarter of this year, which is an increase of 1.1 billion dollars in the same period last year. The rise in mobile money use signals how entrenched the service is in the Kenyan society as the number of subscribers and service providers rise. The telecoms are also coming up with various innovative services that deepen the use of mobile money, with offering of loans becoming the latest sensation. The largest transaction in the first quarter, according to the Central Bank of Kenya (CBK) was made in March. During the month, transaction hit an all-time high of 2.4 billion dollars, up from 2.1 billion dollars in February and 2.2 billion dollars in January. Last year, Kenyans transacted a record 26.1 billion dollars on mobile money, an increase of about 4 billion dollars from previous year. There are about six mobile money service operators in the East African nation, with Safaricom leading a market share of over 90 percent. Others are Airtel Money, Orange Money, Tangaza Pesa, and FinServe (Equitel), which uses the thin-SIM technology, and is set to start its services in August. Data from the Communication Authority showed that the new players are already having an impact in the sector, with MobiKash, Tangaza and FinServe having combined subscribers of 2.4 million in the country. As of the end of March, there were 26 million mobile money subscribers, up from 25 million in January, according to the CBK data. The number of agents, on the other hand, stood at 128,598 during the period, up from 127,187 as the sector continued to employ more people.

Google Inc (GOOGL) to invest $700 million in Kenya's wind power project

Google Inc is expected to back Kenya’s $700 million wind power project. The involvement of Google in the power project is expected to trigger interest among other U.S. private investors to back Kenya’s massive initiative. The project will cover 40,000 acres of land, and is expected to boost Kenya’s energy capacity by 20% when completed. Less than 50% of Kenya’s population currently has access to electricity, and the Lake Turkana Wind Power Project is expected to come as an enormous boost to the country’s power capacity. Stakeholders expect Google’s move to give the wind project a huge vote of confidence, triggering investment interest among other private sector investors. Google’s move in Kenya’s Turkana wind power project is also expected to help secure more U.S. government backing for the project. The Turkana project could benefit from a $250 million backing through President Barack Obama’s initiative called Power Africa. To secure the important government backing, the Turkana projected needed to receive what has been termed as “meaningful” participation of the U.S. private sector. The involvement of Google Inc is expected to satisfy the requirement, thereby unlocking government support for the project. Google Inc’s participation in the Turkana project is just one of the many green energy projects the company is backing in Africa. In 2013, for instance, Google invested $12 million in one of South Africa’s solar projects.

Remittances to Rwanda Made Easier by Mobile

It will now be easy for Rwandans living abroad to send money to their relatives back home following the launch of a new mobile money transfer service by MTN Rwanda and Western Union, a global money transfer service firm. Ebenezer Asante, the MTN Rwanda chief executive officer, said the new service allows subscribers in Rwanda, who use MTN Mobile Money service to receive Western Union money transfer transactions directly on their mobile phones and Rwandans living abroad can remit money back home to MTN subscribers “swiftly and with greater convenience”. The telecom firm currently has over three million mobile money customers. To access the service customers need an active MTN Mobile Money account to receive money directly on to the mobile phones. This year MTN Group has signed a collaboration agreement that will allow MTN mobile money users in Uganda, Rwanda and Zambia to make international remittances with M-Pesa customers in Kenya, Tanzania, the DR Congo, Mozambique and vice versa. According to a recent statement from the company, about 85% of its subscriber base is registered on mobile money platform. Over 70% Rwandans own mobile phones, according to Rwanda Utilities Regulatory Authority. Meanwhile, Northern Corridor countries – Rwanda, Uganda and Kenya – are on the verge of rolling out cross-border mobile money transfer services under the One Area Network.

World Bank Group approves US $500 million for Eastern Africa Development Corridor

The World Bank Group has approved $500 million for the development of the transport and trade corridor in north-western Kenya and improve the livelihoods of the communities in Turkana and West Pokot counties. It will support upgrading of the road linking Kenya to its neighbors in the north-western border and also enhance internet connectivity between the countries and the rest of world. The project will cost an estimated $676 million, with the balance being contributed by the Kenya Government. The new project will enable Kenya to upgrade the road, Information and Communications Technologies infrastructure and road safety on the corridor and also facilitate establishment of trade and development facilities, including markets to support pastoralist communities and micro enterprise operators. The project will support farmers, pastoralists and small business entrepreneurs along the corridor and help boost exports of agricultural, livestock, fishery and mineral products from north-western Kenya. It will facilitate extraction of oil resources recently discovered in Turkana and help reduce the vulnerabilities of the local communities in Turkana and West Pokot that are isolated and exhibit high levels of poverty by better integrating them to the national economy. The upgrading of the 309 km road section from Lokichar to Nadapal/Nakodok will be part of a major undertaking by the Governments of Kenya and South Sudan to rehabilitate 595 km of the road linking Eldoret in Kenya to Juba, South Sudan's capital. The South Sudan part of the project was approved in May 2014 to improve the trade and transport facilities from between Juba and Nadapal. The upgraded road will link up to the Northern Corridor transport system and other major transport and trade corridors in the Eastern African region. It will contribute to regional integration and reduce the cost of doing business in the East African Community.

IFC and CITIC Launch $300 Million Affordable Housing Programme

The IFC is partnering with CITIC Construction Co., the Chinese construction and engineering multinational, to launch a $300 million affordable housing investment platform focused on sub-Saharan Africa. The new vehicle, CITICC (Africa) Holding, will partner with local housing developers to provide long-term capital to build 30,000 homes over the best five years, creating 150,000 new jobs in the process. Rapid urbanization is pushing up demand for housing in Sub-Saharan Africa. African cities become home to over 40,000 people every day, many of whom find themselves without a roof over their heads. Kenya’s housing shortage is estimated at 2 million units, while Nigeria is in want of 17 million units. The soaring demand is being met by scant new supply. Africa’s housing market has few local developers with the technical and financial strength to construct large-scale projects. The IFC-CITIC Construction platform will work with local housing companies to develop affordable housing projects across Sub-Saharan Africa, each ranging in size from 2,000 to 8,000 units. CITIC Construction has a proven track record in constructing and delivering large scale housing projects. The platform will start by developing homes in Kenya, Rwanda and Nigeria, before expanding to other countries as operations ramp up. The new housing units will be constructed in accordance to IFC’s green building standards, delivering homes that are environmentally friendly and sustainable.

International Cocoa Organisation downgrades Ghana’s cocoa output by 22%

The International Cocoa Organisation has downgraded by 22 percent Ghana’s cocoa output for the 2014-2015. The estimate for the Ghana crop – the world’s second biggest – was slashed by 114,000 tonnes to 696,000 tonnes – representing 22% slump year on year. The organisation is the latest to raise concern about Ghana’s output. Manufacturers and traders in the cocoa industry have also been complaining about Ghana’s disappointing crop season. The International Cocoa Organisation or ICCO says it is yet to get a definitive explanation to the shortfall even though factors like strong Harmattan wind, inadequate rainfall, late application of fertilizers, and the curtailment of a government spraying programme have been cited as hurting production in Ghana. It noted that cocoa farming in the country has over the years been increasingly competing with the mining industry for land, water resources and labour. This phenomenon, it said may have been exacerbated this season, following the lower producer price offered to Ghanaian farmers during the previous season. The ICCO warned of an emerging declining trend should structural factors responsible for the reduction in production continue to persist. The Organization also raised concerns over the prospects for a full recovery, given that the reasons behind the fall in Ghana remain unclear.

Dangote Cement Starts Production in Ethiopia

Nigerian tycoon investor, Alhaji Aliko Dangote, has ventured into the Ethiopian construction sector. This is after the Dangote Group, a company owned by Africa’s richest man according toForbes Magazine, opened a $600 million cement factory on Thursday. The facility has an initial annual production capacity of 2.5 million tonnes of cement, expected to double later. Located 90 kilometers North West of the capital, Addis Ababa, the factory will serve the country whose cement needs are expected to grow by 5 million tonnes in a year. The country’s economy has been a growth trajectory, mostly driven by agriculture, and large scale construction. During the event to commission the facility, Ethiopian Prime Minister, Hailemariam Desalegn, invited investors into the Horn of Africa country saying its rising demand was an opportunity. The leader pledged billions of US dollars to solve logistical bottlenecks that have made the country a bit unattractive. Ethiopia has a population of 95 million and a fast growing middle class. Dangote Cement, which is the single largest investment by an African entrepreneur in Ethiopia, promises thousands of jobs. It is also expected to boost production capacity of local cement factories from the current 12.5 million metric tonnes per year to 15 million metric tonnes. Godwin Emefiele, Central Bank Governor of Nigeria said at a time when the economies of sub-Saharan Africa seem to slow because of external factors, cement plants like this enhance the continent’s self-sufficiency and boost African countries economic development. Dangote runs cement factories in Senegal, in Zambia and South Africa as well as one in Cameroon. The company’s plans to enter the Kenyan market are at an advanced stage, which is part of the firm’s ambitious plan to spread across Africa.

Angola to Pull sub-Saharan Africa Growth to 4.2%, says World Bank

Prevailing low prospects in Nigeria and Angola, Africa’s richest oil producing nations, are projected to see economic growth in sub-Saharan Africa (SSA) slow to 4.2 percent, less than earlier expected, according to the World Bank’s latest Global Economic Prospects (GEP) report. Low oil prices have considerably reduced growth in commodity-exporting countries (Angola, Nigeria), in SSA, and have also slowed activity in non-oil sectors. Even for South Africa, which ought to be one of the main beneficiaries of low oil prices, the World Bank fears that growth is now being held back by energy shortages, weak investor confidence amid policy uncertainty, and by the anticipated gradual tightening of monetary and fiscal policy. As a result, developing countries are now projected to grow by 4.4 percent this year, with a likely rise to 5.2 percent in 2016, and 5.4 percent in 2017. Risks to the outlook for emerging and developing economies continue to weigh on growth. Lower prices for oil and other strategic commodities have intensified the slowdown in developing countries, many of which depend heavily on commodity exports. While commodity importers are benefiting from lower inflation, fiscal spending pressures, and import costs, low oil prices have so far been slow to spur more economic activity because many countries face persistent shortages of electricity, transport, irrigation, and other key infrastructure services; political uncertainty, and severe flooding and drought caused by adverse climate. A special analysis in the report finds that low-income countries, many of which depend on commodity exports and investment, are vulnerable in the current environment. During the commodity price boom of the mid-2000s, their economies strengthened considerably with new discoveries of key metals and minerals, resource investment, and expanding commodity exports.

Nigeria’s e-commerce Sector to be Worth $13 billion by 2018

As more Nigerians patronise online retail platforms following the Central Bank of Nigeria (CBN) cash-lite agenda and the Federal Government of Nigeria’s national broadband policy 2013-2018, the Nigerian electronic commerce sector is expected to expand further to as much as $13 billion (N2.5 trillion) in value, THISDAY findings have revealed. According to the national broadband policy 2013-2018, 80 per cent of the Nigerian population is projected to enjoy mobile broadband access and 20 per cent fixed line access. The CBN’s cashless policy began nationwide on July 1, last year.Prior to the commencement of the policy in 2012, the sector recorded 1,000 orders per day, with market size standing at $35 million (N5.6 billion). Today, on average, the leading online stores achieve about $2 million worth of transactions per week (approximately N1.5bn per month). These figures, THISDAY findings revealed, further increased to 15,000 orders per day, with market size valued at $550 million (N88 billion). The growth in the ecommerce space in Nigeria has been made possible by the activities of major on-line retailing platforms such as Konga.com, Jumia.com, DealDey, QuikTellers, WakaNow, RyteDeals, Checki.com, Buga.com among others. THISDAY findings revealed that activities of these companies is boosting job creation with over 20,000 jobs found to have been created since 2012, with the sector having positive impact on service industry expansion, including infrastructure, warehousing, advertising and logistics. The sector is attracting a lot of foreign investments as two of the leading players in the sector, Jumia and Konga received $50 million (N8.25 billion) investments in the last one year. Since 2012 till date, the sector has attracted $200 million Foreign Direct Investment (FDI). Future growth will very much depend on the evolution of internet penetration. According to the Nigerian Communications Commission (NCC), active internet subscription via GSM was estimated at 83.2 million in February, equivalent to a penetration of 49 per cent. Based on industry reports, countries with highly successful e-commerce industries such as the United Kingdom, the United States and Norway have correspondingly high Internet penetration rates of 87 per cent, 81 per cent and 95 per cent respectively.

African Governments and Business Leaders Launch Regional Scholarship and Innovation Fund

A ‘Regional Scholarship and Innovation Fund’ for Africa has been launched. The launch event was led by the President of the Republic of Senegal HE Macky Sall, and representatives of the Heads of States of Ethiopia and Rwanda. The Fund will contribute to the World Bank ‘Partnership for Skills in Applied Sciences, Engineering and Technology (PASET)’ programme, which seeks to award 10,000 African PhD scholarships over ten years, to strengthen research and innovation in applied science, engineering and technology. The African Governments involved committed to the Fund alongside a new group of prominent business figures, the ‘Africa Business Champions for Science’, to raise a total of $5million during the launch. The ‘Africa Business Champions for Science’ group is chaired by the Angolan businessman Dr Álvaro Sobrinho, also Chairman of the Planet Earth Institute NGO. Additional funds will now be mobilised from African Governments, business leaders and other developmental partners, to operationalise the Fund by June 2016. The initiative is led by the PASET Steering Committee comprising Ministers responsible for higher education and research from Senegal, Rwanda and Ethiopia, business leaders, representatives from academia and the World Bank. The overall objective of PASET is to accelerate the creation of a skilled, high-quality workforce in Africa to power Africa’s socio-economic transformation. The launch of the Fund is an outcome of the actions agreed at the previous PASET Forum’s held in Ethiopia (2013) and Senegal (2014), as well as the related Forum on Higher Education, Science and Technology held in Rwanda (2014).

US Equity Firm and Mo Ibrahim to Invest $1 Billion in Africa

American private equity firm TPG Capital will invest up to $1 billion (about Sh98 billion) in African companies under a tie-up with Sudanese billionaire Mo Ibrahim’s Satya Capital. TPG is a newcomer to Africa while Satya’s interests range from healthcare in Nigeria to manufacturing in Tanzania.Satya will also make available an extra $300 million to $400 million (Sh29 billion to Sh39 billion) for investment under the tie-up. The partnership is a special purpose vehicle called TPG Satya Ltd, and the companies, in a joint statement, said it would focus on businesses in healthcare, information technology, consumer and financial services, among other sectors. Ibrahim said TPG’s funds would come from its middle market platform, TPG Growth. TPG (formerly the Texas Pacific Group) is one of the world’s largest private equity groups with about $60 billion (Sh5.9 trillion) in assets.

The Abu Dhabi Fund Invests $9 million in a Hybrid Plant in Mali

The Abu Dhabi Fund for Development (ADFD) has awarded a $9 million loan for the construction of a hybrid solar power plant in Mali. With a capacity of 21 MW, the plant will supply some thirty localities, which serves nearly 123,000 people. “Given the importance of renewable energies in sustainable development, ADFD is keen to fund projects in this sector to support developing countries in the development of their potential. The development of such projects will create hundreds of job opportunities. It will also attract other investments to achieve a sustainable development mode”, said Mohammed Saif Al Suwaidi, ADFD’s Director. This funding is part of the second phase of a project of ADFD and IRENA to grant a $41 million concessional loan for six renewable energy projects developed by developing countries among them being Mali, Mauritania and Sierra Leone

Hilton Heads Hotel Development Boom in Africa

The findings of this year’s Hotel Chain Development Pipeline Survey, produced by Lagos-based consultancy W Hospitality Group (http://w-hospitalitygroup.com/), show that Hilton is leading the race to develop new hotels in Africa with 7,250 rooms in its pipeline, spread over 29 new properties, 18% up on the previous year. Hot on its heels is Carlson Rezidor, with 6,953 new rooms in development spread across 32 hotels. Marriott is in third place with 6,412 rooms in its pipeline spread over 36 new properties, 22% up on 2014. Best Western has 12 new hotels in its pipeline, but the average size of hotel is lower, at 93 rooms, and therefore drops out of the top ten when the pipeline is analysed by number of rooms. Both Kempinski and Fairmont focus on large, luxury hotels (Kempinski with their single brand, and Fairmont developing Raffles, Fairmont and Swissotel) and have the largest average number of rooms in the survey. Mangalis is a new chain, launched in 2013, with its first hotel openings expected in 2015, in Conakry and Dakar. In terms of individual brands, Carlson Rezidor’s Radisson Blu brand occupies first position in terms of the number of hotels and rooms in its development pipeline. Its sister brand, Park Inn by Radisson, is also in the top 10, whilst the Hilton brand and its “little brother”, Hilton Garden Inn, occupy second and fifth positions respectively. Marriott and Starwood each have two brands in the top ten, with Starwood achieving particularly strong growth for both brands, Sheraton and Four Points.

JCDecaux becomes Number One Outdoor Advertising Company in Africa

/JCDecaux SA, the number one outdoor advertising company worldwide, has announced that it has completed the acquisition of Continental Outdoor Media, the leader in outdoor advertising in Africa, in partnership with a community owned investment company, Royal Bafokeng Holdings (RBH), with a shareholding split of 70/30. RBH’s long-term investment approach, coupled with their commitment to the African markets resonated with JCDecaux, leading to the formation of this strategic partnership which leverages the strengths of both partners. With more than 36,000 advertising panels and a presence in 16 countries (Algeria, Angola, Botswana, Cameroon, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, Tanzania, Uganda, Zambia, and Zimbabwe), JCDecaux becomes the number one outdoor advertising company in Africa.

CDC-backed Businesses in Africa and Asia Create Nearly1.3 million New Jobs

CDC Group plc, the UK’s government-owned development finance institution, has today announced its 2014 annual results. The organisation, which invests to support the growth of businesses and create jobs in developing countries in Africa and South Asia, made 19 new investment commitments totalling £296.5m and reported a total return after tax of £420.2m (2013: £117.3m). New analysis also showed that CDC-backed businesses contributed to the creation of nearly 1.3 million new direct and indirect jobs in 2014. The new findings show that businesses in CDC’s Africa and South Asia portfolio directly employed 533,000 workers and were responsible for a further 10.8 million people when indirect employment effects, such as their supply chains, wages and increased access to power and financial services were taken into account. 2014 saw the value of the businesses in CDC’s portfolio grow, with total assets rising from £2,948m in 2013 to £3,369m in 2014. This growth allows CDC to continue to support and make new investments in new businesses. CDC’s 19 new investments last year (including fund commitments) covered a variety of job-creating sectors in some of the world’s most challenging places. They included a 335MW electricity plant in Bangladesh, a partnership to help develop transport infrastructure across sub-Saharan Africa, and a pioneering deal (established within weeks alongside Standard Chartered) bringing critically-needed working capital to companies in Sierra Leone during the Ebola crisis. Since 2012, CDC has evolved from providing capital solely through funds managed by third-party managers to offering a wider range of capital including the direct provision of debt and equity finance. Of the 19 new commitments made in 2014, 13 were direct equity or direct debt. CDC also changed its geographical focus in 2012, now only investing in Africa and South Asia. The 2014 results show that 70% of CDC’s portfolio is in Africa and South Asia and this will grow to 100% over the next few years. CDC targets a number of priority sectors, selected because of their greater capacity to create jobs. These seven sectors are agribusiness; construction; financial institutions; infrastructure; manufacturing; health and education. 85% of CDC’s new capital for Africa and South Asia in 2014 was invested in businesses in these priority sectors (2012: 53%).

African Mutual Funds Assets Under Management to Exceed $1 trillion by 2020, says PWC

The assets of mutual funds for African investment will exceed $1 trillion in 2020, according to a study published on June 25th by consultancy and audit firm PricewaterhouseCoopers (PwC). The projected growth of African mutual funds including African investments is based on the high demand expected for the life insurance and retirement savings products, in a context of economic prosperity on the continent. However, PwC believes that poor infrastructure and lack of liquidity in many African stock markets are major obstacles to a more rapid development of mutual funds across the continent. Moreover, the firm welcomes the important movement recorded by the South African mutual fund industry, recalling that the number of such funds has increased from 19,000 in the 1980s to about 30,000 currently.

Bank of Ghana Issues Telcos with Mobile Money Ultimatum

A new set of guidelines from the central bank has given telecommunication companies engaged in the mobile money service up to six months to establish a separate business entity to handle their electronic money services. The guidelines require non-banks that have previously been offering mobile financial services in partnership with banks to apply within six months for a license. The objectives of the latest guidelines, the Bank of Ghana said, is to “ensure that electronic money is only provided by (a) financial institutions regulated under the Banking Act, 2004 (Act 673); or (b) duly licensed non-bank entities which are engaged solely in the business of e-money and activities related or incidental to the business of e-money, and which are regulated and supervised by the Bank of Ghana. Currently, only three of the six mobile telcos - MTN, Airtel and Tigo - are involved in the mobile money business, which has grown from a transaction value of Gh¢171million in 2012 to the multi-billion cedi sector it is now. The new regulation will mean that MTN, Tigo, and Airtel have a January 6, 2016 deadline to conform to the BoG’s requirements. The guidelines come at a time patronage of mobile money continues to gain momentum. For the third year running the value of transactions has seen an astronomical jump -- from Gh¢2.4billion as at 2013 to about Gh¢11.6billion in 2014 according to the central bank’s data. Growth of the transactions’ value over the years corresponds with a similar trend in the volume of transactions. So far, the number of transactions has almost quadrupled since 2012; from 30 million to about 106.4 million in 2014. According to the BoG, the guidelines are being issued as part of its broader strategy to create an enabling regulatory environment for convenient, efficient and safe retail payment and funds transfer mechanisms. The Guidelines for E-Money Issuers in Ghana, the central bank said, is to promote the availability and acceptance of electronic money as a retail payment medium with the potential to increase financial inclusion, and specify necessary safeguards and controls to mitigate the risks associated with e-money business and ensure consumer protection.

USA Extends AGOA Act Benefiting Africa’s Textile Industry

The US government granted a long-term extension to a major US-Africa trade programme in June, a move welcomed by African textile and apparel manufacturers. The bill reauthorises the African Growth and Opportunity Act (Agoa) for another 10 years. Since 2001, the non-reciprocal trade programme has allowed more than 6,400 items from around 40 sub-Saharan African countries to be imported into the US without duties or quotas. The African textile and apparel sector, one of the main beneficiaries of the scheme, had urged the US government to proceed with the extension of AGOA well ahead of its expiration in September, warning that a delay could endanger tens of thousands of African jobs. US imports of apparel manufacturing products from Agoa countries dropped by 5.6 percent to $225m in the first quarter of 2015, according to the US Department of Commerce. More decline is expected for third quarter of the year, according to Paul Ryberg, president of the African Coalition for Trade, a US organisation which represents African companies mostly in the textile and apparel sector and that has lobbied for the extension of Agoa. Nonetheless, manufacturers are pleased with the 10-year renewal, which is the longest extension in the history of the programme. The so-called third-country fabric provision – which allows some Agoa-eligible countries to use materials originating elsewhere in their products – has also been extended until 2025. Kenya, the largest apparel exporter under Agoa, has a set a target of growing exports from around $385m in 2014 to $1bn in the next three years, and of increasing jobs in the sector from 40,000 to 100,000.

Zimbabwe Mobile Money Payments Set to Reach $50 Billion in 2015

The Central Bank of Zimbabwe says electronic payments are expected to reach $50 billion by the end of the year as the country’s mobile money sector continues to grow in both volumes and value. All of the three mobile network operators in Zimbabwe – Econet, Telecel and NetOne – have mobile money platforms which the RBZ said transacted a total of $6,1 billion between 2009 to 2014. According to the bank, the mobile money sector had transformed the financial services sector and has become a critical service delivery tool and innovative access channel for the banking system. In 2015, total annual electronic payments are estimated at $50 billion, compared with total bank deposits currently just above $5 billion. Mobile money transactions have also helped in migrating cash flows from the informal to the formal sector of the economy. The central bank estimates that up to $3 billion is circulating in the informal sector while the Ministry of Small to Medium Enterprises (SME’s) puts the figure at $7.4 billion.

Sub-Saharan Africa to See Increases in Private Equity

Among the data and findings published in the Emerging Markets Private Equity Association’s 2015 Limited Partner Survey, sub-Saharan Africa is the region where the most respondents plan to begin or expand investing. Financials, Healthcare and Consumer Goods top the list of sub-Saharan investment sectors that LPs are looking to exposure to, although both MENA and SSA are still perceived as the riskiest regions by LPs allocating private equity dollars.

BRICS Launch Development Bank

The Brics' New Development Bank (NDB) was officially opened for business in Shanghai on 21 July. The NDB will have initial capital of $50-billion (about R618-billion), which will be expanded to $100-billion within the next couple of years. It was floated by Brics nations as an alternative to the World Bank and International Monetary Fund to boost infrastructure funding in the emerging economies and offer them tailor-made services. India's Kundapur Vaman Kamath will be the bank's president for the first five years. The Brics members – Brazil, Russia, India, China and South Africa – launched the bank at their seventh summit, held in the Russian city of Ufa on 8 and 9 July. The creation of the bank was prompted by efforts to finance infrastructure projects, mainly in member countries. Each nation will also have an equal say in the bank's management, regardless of gross domestic product size, according to its officials. Unlike the World Bank, which assigns votes based on capital share, in the New Development Bank each participant country will be assigned one vote, and none of the countries will have veto power, the latter says. However, Reuters reported that China had pledged to contribute $41-billion to the NDB, giving it the largest share of voting rights at 39.5%. Brazil, India and Russia would each contribute $18-billion, while South Africa would contribute $5-billion. The Brics nations have criticised the World Bank and the IMF for not giving developing nations enough voting rights. The bank is expected to issue its first loans early next year.

Louis Berger to support sub-Saharan Africa transportation sector development under A.C.P.-European Community Partnership

Louis Berger, as part of a consortium led by NTU International A/S, has been hired to support the development of the transportation sector in the African, Caribbean and Pacific (A.C.P.) Group of States, with a focus on sub-Saharan Africa. This 2.3 euro million ($2.6 million USD) project aims to promote inclusive political, economic and social development through enhanced regional integration by strengthening African countries’ ability to regulate, organize and finance better inter-regional and continental transportation infrastructure through safe trans boundary transportation corridors and integrated transportation policies. The project also will support progress toward the Millennium Development Goals in A.C.P. countries. The consortium will help the African Union Commission’s Department of Infrastructure and Energy improve its sector management capacity as well as support the implementation of the Program for Infrastructure Development in Africa (PIDA) Priority Action Plan projects. In addition, the consortium will strengthen the transportation pillar of the 2014-2017 Infrastructure Agenda of the Joint Africa-European Union Strategy, an initiative that outlines a long term shared vision of the future of Africa-European Union relations in a globalized world, and will promote the startup of smart corridor activities. Louis Berger has more than 50 years of experience in Africa and nearly 25 years of experience in Ethiopia, where the firm has implemented almost 20 projects. These assignments cover a broad range of professional services in transport, agriculture and economic and institutional development.

GE Africa and Gearbox announce plans to launch GE Garages for technology skills acquisition

In order to support the development of a manufacturing ecosystem and build skills in Kenya, GE Africa and Gearbox have announced a plan to launch a ‘GE Garages’ manufacturing program to help build a skilled workforce and drive entrepreneurial development in Kenya. This program is in development with University of Nairobi, Technical University of Kenya and Seven Seas Technologies. The GE Garages - Nairobi will contribute to bridging the technical skills gap in Kenya. According to the National Manpower Survey, the percentage of vacant posts in the transport sector is 2.8%. While the Oil and Gas Sector will create between 6,000 and 15,000 new jobs over the next ten years with the majority requiring technical or vocational training. The GE Garages space, which will be hosted at Gearbox’s premises, will support classes and workshops, for students, entrepreneurs, makers and others to learn more about advanced manufacturing processes, software programming and business development. It will feature advanced manufacturing innovations like 3D printers, laser cutters, CNC mills for the industrial world to encourage entrepreneurial disruption and a skilled workforce for the future.GE created the Garages experience in March 2012 to reinvigorate interest in invention, innovation, and manufacturing in America. Programs have included custom projects, curated speaker sessions and workshops amidst a fully equipped advanced manufacturing space, including hardware such as CNC mills, laser cutters, 3D printers, injection moulders, Arduino kits and much more. This program went global with a workshop in Lagos Nigeria in 2014 and has since grown to include several countries in Europe and the Middle-East.

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