Connecting Africa’s Skilled Professionals
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UK head hunters have designed a new ‘enhanced code’ for their industry in a bid to increase the number of women appointed to boardroom posts across the FTSE 350. The code has been created in response to findings in the Sweeney Review that executive search firms could do more to tackle gender inequality in top roles. This beefed up code builds on the original 2011 voluntary code that more than 70 search firms signed up to. It followed the 2011 Lord Davies Review, which set targets for the FTSE 100 firms to have at least 25% female representation on their boards by 2015. And while the percentage of women sitting on boards in the FTSE 100 is now more than 20 per cent there has been broad criticism of the rate of progress. Under the reworked code, signatories agree to do more to support aspiring women by developing internal programmes to raise awareness of unconscious bias among their own staff and sharing best practice on how they did it with other firms. The code also requires search firms to provide evidence on their progress to the Davies Steering Group. To comply with the code head hunters will need to show they have supported the appointment of at least four women to FTSE 100 and 250 boards over the last year and helped women achieve their first FTSE 350 board appointment. They will also need to show how they achieved at least 33 per cent female appointments across all their FTSE 100 and 250 board work and have fully delivered against more qualitative aspects of the enhanced code, for example changing employee attitudes, in their day to day working.
UK government polices designed to reduce net migration have greatly reduced the international talent pool available to British businesses, according to a report. The number of highly skilled European workers arriving in the UK had fallen by 28 per cent between 2007 and 2013, to a total of 242,000. The report from the Migration Observatory at the University of Oxford suggests that there has been a 39 per cent drop in hires from outside Europe since the introduction of major immigration policy changes by successive governments. Highly educated workers from outside the European Economic Area (EEA) – EU countries plus Iceland, Liechtenstein and Norway – have been most affected by government policies: migrants from these countries decreased from 155,000 in 2007 to 94,000 in 2013. Experts suggest that the goal to cut immigration levels by “tens of thousands” was having a detrimental effect on UK businesses. However, figures also show that recent economic events such as the 2008 downturn and eurozone crisis might have prompted the significant rise in the number of highly skilled migrant workers arriving from within the EEA. There were 53 per cent more workers in 2013 than in the two preceding years. Dr Carlos Vargas-Silva, co-author of the report suggested that efforts to reduce non-EEA skilled migrant workers, had led businesses to look closer to home for migrant talent, but these efforts did not translate to the boardroom. The number of highly educated migrant workers occupying manager, director or senior official roles was at its lowest level in 2010, with just 79,000 people recorded in these positions. This increased only slightly in 2013, but still a 22 per cent reduction from the 125,000 levels recorded in 2007.
The number of UK graduate vacancies has increased by 11.6 per cent this year, returning the graduate jobs market to its pre-recession peak, according to a report. Figures suggest a third of graduate employers have stepped up their recruitment in the last six months, contributing to the biggest increase in graduate vacancies for four years. This follows an unprecedented 23.3 per cent dip between 2007 and 2009. Accounting and professional services firms, public sector employers and engineering and industrial companies lead the way, having expanded their graduate openings to more than 4,400, above 3,400 and more than 1,600 jobs respectively. Based on a poll of 18,000 final year students, the High Fliers report also shows that for the first time in four years, the median starting salary for new graduates in 2014 has increased to £29,500, with the most generous entry-level wage on offer from investment banks (£45,000) and law firms (£39,500). According to the report, The Graduate Market in 2014, two thirds of employers now provide paid vacation internships for penultimate year students; three-fifths offer industrial placements for undergraduates, and increasing numbers of employers offer work experience places for first year undergraduates. More and more employers are looking to “hook” graduates much earlier in their career. More than half the recruiters who took part in the research suggested that graduates who have had no previous work experience at all are unlikely to be successful during the selection process, and the proportion of new graduates recruited directly through employers’ work experience programmes has jumped from 26 per cent in 2010 to a record 37 per cent in 2014. However, figures show competition for places remains high with an average of 39 applicants for every graduate vacancy. Office for National Statistics figures also suggest that graduate numbers have increased by 85,000 to 365,000 since 2007, which means there will have to be a sustained increase in the number of graduate-level jobs to place the higher number of degree-holders looking for work. More than two-thirds of employers said they plan to hire a similar number of graduates or expand their recruitment further in 2015.
Nearly a quarter of employers failed to fill their graduate job vacancies in 2013 despite the fact that the number of posts available for degree holders is forecast to grow, a survey has revealed. The Association of Graduate Recruiters (AGR) bi-annual survey found that graduate job opportunities are predicted to increase by 17 per cent from last year. Employers in the banking and financial services industry expect the largest rise with 54 per cent more recruitment among university educated jobseekers. Organisations in the transport and logistics sectors also plan to recruit more graduates with almost a third more vacancies to go on offer this year. And the trend for increases is fairly widespread with employers in 11 out of the 13 sectors surveyed by AGR saying they planned to take on a large number of new graduates, with only the FMCG (fast moving consumer goods) and energy, and utility sectors proposing to decrease hires by 13 per cent and 9 per cent respectively. Predicted increases in competition for the best talent appear to have pushed up starting salaries. Pay for new graduate hires is expected to improve with a median salary increase of £500 from last year boosting pay to £27,000. University leavers taking on roles in investment banking can expect the highest entry wage at £43,000 a year. The issue of improving social mobility has gained more support among employers, survey results suggested. They found that there has been a rise in the proportion of organisations that plan to monitor the socio-economic diversity of their graduates during the recruitment process. The report shows a nine-percentage point increase in this area of data collection from 2013. Survey findings are based on responses from 189 AGR members in the UK across 17 sectors, which will provide an estimated 22,076 graduate vacancies in 2014.
Employers in the NHS will be forced to increase their representation of ethnic minorities in senior positions under new equality proposals announced by NHS England. The proposals will impose a national workforce race equality standard throughout the NHS from April next year, and those who fail to meet the standard could face contractual or regulatory consequences. NHS employers, including clinical commissioning groups, will have to demonstrate progress against a number of indicators of workforce equality, including a specific indicator of how they are addressing low levels of ethnic minority representation on their boards. This action on diversity follows recent reports highlighting disparities in the number of BME people in senior leadership positions across the NHS. A report by Roger Kline, The Snowy White Peaks of the NHS, showed a huge contrast between certain areas’ patient demographics and representation on NHS boards in those areas. In London, where BME representation in the population is 45 per cent, only 8 per cent of trust board members were from ethnic minorities, and just 2.5 per cent of chief executives and chairs. Trusts will also be judged on responses to NHS staff surveys on diversity, as well as workforce metrics such as the recruitment of ethnic minority staff, access to training opportunities, and the likelihood of BME staff being involved in disciplinary action. Simon Stevens, chief executive of NHS England, said he wanted the NHS to better represent the diversity of people it serves.
The Queen’s Award for Voluntary Service is the highest award given to local volunteer groups across the UK. The annual award recognises and rewards excellence in voluntary activities carried out by groups in the community. First announced in 2002 as part of the celebrations for The Queen's Golden Jubilee, the award is given for outstanding achievement by groups of volunteers who regularly devote their time to helping others in the community, improving the quality of life and opportunity for others and providing an outstanding service. In the last 12 years, the award has gone to many different types of groups including those who are working to improve their local environment, running community centres, supporting families, or working with children and young people. Anyone in the UK can nominate a group. To be eligible, the group must consist of two or more people who have been doing volunteering work for at least three years. The majority of the group must be volunteers, and more than half the volunteers must have the right to live in the UK. Groups cannot nominate themselves but can be nominated by those who benefit from their work, members of the public, representatives of public bodies, or other voluntary groups. Nominations are assessed by a regional committee before being passed to a national committee for final selection and recommendation to The Queen. For information on how to nominate a group, visit The Queen's Award for Voluntary Service website. There is no deadline for nominations as they are considered at any time within three years of the nomination. Groups cannot be nominated for a particular year’s Award.
Global employers are failing to attract the right mix of talent because of unappealing or confusing employer brands, according to advisory firm CEB. More than three-quarters of companies around the globe have invested in formal employer branding initiatives in the past three years yet only a quarter of candidates applying for roles are high quality. However, the number of applicants per open position has risen significantly (33 per cent) over the same period, which suggests that employers have simply succeeded in attracting more, not better people. In a series of interviews with recruiting and brand executives and an online survey of more than 2,000 recruiting staff from North America, Asia Pacific, Europe and the Middle East, CEB found that employers are under increasing pressure to attract new types of talent. Two-thirds of respondents to the CEB 2014 Employment Branding Effectiveness Survey said they were attracting more candidates from new or different labour markets compared to three years ago, because of increasing globalisation. And while efforts have been ramped up to become known as a great place to work in relatively unknown markets, current employer brand initiatives, and mass communication methods are “universally unappealing” to the global workforce, CEB said. When asked where potential applicants accessed information prior to joining a company, the majority said they relied on “other sources”, rather than communication from the organisation, with 61 per cent stating they were more sceptical about what employers say about themselves, compared to three years ago. CEB suggests that efforts needed to shift from building an employment brand that appeals to everyone, to helping people make an informed decision on whether or not to apply for a particular position and that companies have to stop chasing universal popularity and adapt a ‘lure the best, deflect the rest’ mindset to employment branding.”
Despite the country’s unemployment levels, South African youth remain optimistic about their prospects of finding a job in the country, an annual youth survey conducted by University of Pretoria’s Gordon Institute of Business Science (GIBS) reveals. The findings show that the youth are very much aware of what is happening around them and the ‘Mandela generation’ is very positive about their future career prospects: 84% of the nearly 2 300 grade 11 and 12 learners surveyed believe that South Africa has a bright future and they are ready to tackle it with all its challenges. The survey results clearly show a different perspective of the perceptions of South African youth. The survey asked the learners to rate a number probing questions about themselves and the country on various scales from “strongly disagree” to “strongly agree”. Some highlights included the following: Learners were not convinced that racism was still a major problem in South Africa, with 86% believing that South Africa has improved since the end of apartheid. In a reminder that these youth have grown up in an integrated South Africa, 88% of learners believe that diversity of the country was one of its strengths. These youth are the generation that is writing a new story for South Africa. Despite negative perceptions about the country’s education system, an overwhelming 90% believed that the education they were receiving currently was adequately preparing them to tackle future challenges and access careers in the globalised world. Although 72% of learners could see themselves emigrating in the future, 76% of learners believe they will have a better career in South Africa than elsewhere in the world. Less than half of learners believed that they would be unemployed if they remained in South Africa. Of the learners surveyed, 82% believed that in 2014, black South Africans have the same opportunities that white South Africans had in the past.
Communications technology and services company Ericsson has revealed the scale of the region’s ongoing data revolution with traffic growth doubling the past year. The June 2014 Sub-Saharan Africa Ericsson Mobility Report shows that in 2014 phone users accessed 76,000 TB (terabyte) of data per month, double the 2013 figure of 37,500 TB per month. In 2015 the figures are expected to double again with mobile phone users accessing 147,000 TB per month. The rise of social media, content-rich apps and video content accessed from a new range of cheaper smartphones has prompted the rise. Consumers in Kenya, South Africa and Nigeria are also increasingly using video TV and media services from their smartphones. In the next five years, the Report’s findings show that the voice call traffic in Sub-Saharan Africa will double and there will be an explosion in mobile data with usage in Sub-Saharan Africa growing 20 times between 2013 and 2019, twice the anticipated global expansion. By 2019 the report predicts that 75 per cent of mobile subscriptions will be internet inclusive (3G or 4G). This growth has been predicted following the launch in 2014 of a number of smartphones for under $50 USD by a number of major device manufacturers allowing the rapid expansion of 3G and 4G technology across the region. The 2014 Report predicts that in just three years’ time 3G technology will become the dominant technology across the region.
IPM South Africa has developed an annual tradition of rewarding excellence in people leadership. At the IPM Annual Convention, a special ceremony is held in the form of a Gala Dinner where these individuals are recognised with awards. Nominations for the 2014 IPM Excellence Awards are now open. This year we have the following categories for our Excellence Awards: IPM CEO of the Year, IPM HR Director of the Year, IPM HR Practitioner of the Year, IPM HR Emerging Practitioner of the Year and IPM HR Team of the Year. Should you wish to nominate a candidate, please click on the link provided on the website. This should be done in consultation with the nominee and submitted as soon as possible. All finalists will receive one night’s free accommodation at Sun City to enable them to attend the Gala Dinner on Tuesday, 11 November 2014, where they will be presented with their awards. All winners will be profiled in the People Dynamics magazine and will attend an identified programme at GIBS on a complimentary basis. The official closing date for submissions is 15 September 2014 however early submission is recommended as this enables the Awards Committee to start processing the nominations. www.ipm.co.za
Singapore has emerged the largest investor in Africa among the ASEAN countries, according to the latest United Nations’ World Investment Report 2013. Located strategically in the heart of Southeast Asia, Singapore’s economic ties with Africa have been on the rise. As of end 2012, Singapore’s investments into Africa saw a compound annual growth rate (CAGR) of 11.2% over the previous five years, reaching US$15.9 billion(1). Singapore-Africa trade has also increased, reaching US$11.1 billion in 2013, achieving a strong CAGR of 11.7% since 2009. According to International Enterprise (IE) Singapore (http://www.iesingapore.com), the Singapore government agency promoting trade and overseas investments, there are currently over 60 Singapore companies operating in over 50 countries in Africa. Projects span a wide range of sectors from agri-business, food & beverage and oil & gas, to eGovernment services, information & communications technology, and transport & logistics. Despite Singapore’s limited domestic market and lack of natural resources, the country has progressed from a third to first world country and developed into a competitive and dynamic business hub. During its post-independence years, Singapore companies have accumulated extensive experience and capabilities in many sectors including eGovernment, urban planning and development, and oil & gas. In the oil & gas sector, Singapore is one of the biggest refining centres in the world and home to many oil & gas equipment manufacturers and distributors. As the world leader in the construction of offshore equipment such as jack-up rigs, semi-submersibles, and floating production storage and offloading services, Singapore companies such as Keppel Offshore & Marine, Sembcorp Marine, RK Offshore, and Pacific Radiance, are presently providing these services to Africa. To date, there are over 10 African companies present in Singapore. For example, African oil company Sonangol, has set up a Singapore office to facilitate its oil trade with Asia, leveraging Singapore’s good geographical location and pro-business environment.
After a successful entry in Nigeria earlier this year, Bangalore-based mobile payment solutions provider iKaaz Software Pvt Ltd has now expanded into Kenya. The company has partnered with Family Bank, one of the leading banks in the country. As part of the partnership, iKaaz will provide the customers of Family Bank with its Near Field Communication (NFC) and Bluetooth powered contactless payment solutions through Tap and Pay method. iKaaz, along with its local partner EDGE financial systems (EFSL) aims to provide Family Bank’s customers with the ability to move faster through checkouts at retail stores, as well as be able to use the same payment tags to pay at transportation check points. The name iKaaz refers to digital money and has been derived from the Tamil word Kaas (money).
At least 14 million Ugandans used the mobile money platform to trade, send and receive money last year, putting it among the most used medium of transaction, according to Bank of Uganda. The value of mobile money transactions jumped by 40 per cent to Shs 18.6tn last year, far more than Uganda’s resource envelope for this financial year, according to the central bank’s annual supervision report for 2013. Only Shs 11.7tn was transacted in 2012. In 2014/15 financial year, Uganda’s economy is expected to run on a Shs 14tn purse. The number of Ugandans using mobile money increased by 52.4 per cent to 14 million, twice more than the total bank accounts in the country. The number of transactions increased by 65 percent from 241.7 million transactions recorded in 2012 to 399.5 million transactions last year. Many banks have entered into partnerships with telecom companies to have mobile money included on their menu. MTN Uganda announced that mobile money contributed to almost a half of its profits last year. All the bigger telecoms here have a mobile money product. The platform is now being used by different companies. Air Uganda and Kenya Airways have their air tickets available for customers who can pay through mobile money. Multiplex Uganda allows those who own cars in Kampala to pay for the monthly parking fees through mobile money and police fines can now also be paid via mobile money.
The German government has signed five agreements committing €414.26-million (about R5.89-billion) to development projects in South Africa. The agreements were signed by Finance Minister Nhlanhla Nene and German Ambassador Horst Freitag. The new contributions will bring Germany's total financial and technical aid to South Africa to just over R14.4-billion since 1992. According to the Treasury, the aid has gone towards empowerment, skills transfer and the building of institutional capabilities, with the cooperation maturing over the last 20 years into a partnership focused on climate change and energy, HIV/Aids prevention and good governance.
PayPal is entering 10 new countries including Nigeria and providing online payment alternatives for consumers via mobile phones or PCs in markets often blighted by financial fraud. The expansion will bring the number of countries it serves to 203. Consumers in Nigeria, which has 60 million users and has Africa's largest population, along with nine other markets in sub-Saharan Africa, Eastern Europe and Latin America, will be able to make payments through PayPal. Once the services go live, customers in the 10 countries with access to the Web and a bank card authorized for Internet transactions will be able to register for a PayPal account and make payments to millions of sites worldwide. Initially, PayPal is only offering "send money" services for consumers to pay for goods and services at PayPal-enabled merchant sites while safeguarding their financial details. This is free to consumers and covered by fees it charges merchants. PayPal does not yet cover peer-to-peer transactions, which allow consumers to send money to other consumers. It has not yet enabled local merchants in the new markets to receive payments, nor is it offering other forms of banking services. A total of 80 million Internet users stand to gain access to PayPal global services this week, including those in five European markets - Belarus, Macedonia, Moldova, Monaco and Montenegro, four in the African nations of Nigeria, Cameroon, Ivory Coast, and Zimbabwe, as well as Paraguay. PayPal counts 148 million active accounts worldwide. PayPal has operated in 190 markets since 2007 and added three countries - Egypt, Georgia and Serbia last year. Roughly a quarter of the $52 billion in payment volumes PayPal reported in the first quarter of 2014 were for cross-border transactions. PayPal reported $1.8 billion in revenue during the period.
University attendance for black South Africans remains low, Statistics South Africa (Stats SA) said. Conducted by Stats SA between January and December 2013, the survey found that 73.5% of people aged 5 to 24 were attending educational institutions which is about the same as in 2002 when the attendance rate was 73.6%. The survey estimates that 740 893 students were enrolled at higher education institutions in 2013. Of this, almost two-thirds (66.4%) of these students were black African while 22.3% were white; 6.7% were coloured and 4.7% were Indian (Asian). Even though most students were black African, the student participation rate of this population group remained proportionally low in comparison with the Indian (Asian) and white population, the survey noted. According to the survey, approximately 84.8% of students paid R4000 or more per year in tuition fees and 7% reportedly did not pay fees. Only 18% off students benefitted from bursaries or fee reductions. The report found that the percentage of people aged 18 to 29 attending university by population group was at 3.2% in 2013 compared to 2.8% in 2002, while 3.1% of coloureds attended university. Additionally 18.7% of whites were attending university in 2013 while 9.2% of Indians (Asians) were attending university. Meanwhile, the number of people aged 5 to 24 stated a lack a money for fees as the primary reason for not studying.
Gibela Transport, a joint venture 61% owned by French company Alstom, has begun manufacturing the 600 state-of-the-art passenger trains, comprising 3 600 coaches, that are set to revitalise South African rail transport while giving a major boost to the industrialisation of the economy. Gibela signed the US$5.1-billion (R51-billion) contract to supply the trains - the largest deal ever struck by Alstom, and one of the biggest in rail transport worldwide - with the Passenger Rail Agency of South Africa (Prasa) in October 2013. Gibela's 10-year contract represents the first phase of a 20-year fleet renewal programme in which Prasa will procure approximately 7 224 new rolling stock with a projected investment of R123-billion. The first 20 trains are being manufactured at Alstom's plant in Lapa, Brazil, with the remaining 580 to be manufactured at a new plant to be built near Nigel, east of Johannesburg. Gibela will spend R1-billion on the 600 000 square metre manufacturing facility, which will incorporate an engineering centre and training facility.
Denel Aerostructures, a subsidiary of the state-owned Denel Group, has won its fourth contract to manufacture parts for the Airbus A400M military transport aircraft, the company announced this week. South Africa is one of seven countries working on European aircraft manufacturer Airbus's A400M programme. Denel Aerostructures, the only tier 1 supplier of parts for the A400M outside of Europe, is already responsible for the design, engineering and fabrication of the giant airlifter's wing-to-fuselage fairings and fuselage top-shells, as well as for the manufacture of the ribs, spars and swords that make up the inside structure of the A400M's distinctive tail section. Under the new, six-year contract, worth more than R260-million, Denel Aerostructures will manufacture ISO locks for the A400M's cargo hold. Denel Group chief executive Riaz Saloojee said in a statement that the new work package confirmed Denel Aerostructures' reputation as an emerging player in the global aerospace environment. "It is a vote of confidence in the South African engineering and high-tech manufacturing sectors."
Barclays Plc’s African investment bank plans to hire more staff as it expands across the continent and sees a pick up in advisory work. Investment banking was helped after markets stabilized in the second quarter, said Van Coller, who took over the unit in 2010 and manages more than 2,500 staff in South Africa and 10 other countries on the continent, and capital raising and mergers and acquisitions are picking up. Barclays Africa Group Ltd. (BGA)’s investment bank is ranked second after Morgan Stanley (MS) in equity issuance this year and third for debt, according to data compiled by Bloomberg. Van Coller said in May that Africa won’t be affected by Barclays’s plan to cut staff at its investment bank. Antony Jenkins, who took over as CEO from Bob Diamond in 2012, said Barclays will place more focus on the continent as one of the British bank’s less capital-intensive businesses. Barclays, which bought a controlling stake in what was Absa Group Ltd. in 2005, last year sold the bulk of its African operations to its South African business and increased its stake to 62.3 percent. Access to the technology, including e-commerce, trading and treasury systems, of its London-based parent makes the bank more competitive on the continent against Citigroup Inc., Standard Chartered Plc and Standard Bank Group Ltd. (SBK). Barclays Africa shares have gained 22 percent this year, making it the best performer on the seven-member FTSE/JSE Africa Banks Index.
Luanda in Angola is the world’s most expensive city to live in for the second year in a row followed by Chad’s capital N’Djamena and Hong Kong, according to Mercer’s 2014 Cost of Living survey. The rankings showed that London was the 12th costliest place up 13 places from last year. Other UK cities also made the list with Birmingham in 90th place up 45 places, Aberdeen in 94th position up 34 spots and Glasgow at 108 up 49. Belfast was the least pricey in 120th place but it was still up 38 places from last year. European and Asian cities also continue to dominate the rankings as the costliest cities with Hong Kong in third place, followed by Singapore. Zurich jumped three places to rank 5th, followed by Geneva in 6th. Tokyo dropped four spots to rank 7th. The survey covers 211 cities across five continents and measures the comparative cost of over 200 items in each location including housing, transportation, food, clothing, household goods and entertainment. Rankings in many regions were affected by recent world events, including economic and political upheavals, which resulted in currency fluctuations, cost inflation for goods and services, and volatility in accommodation prices. While Luanda and N’Djamena are relatively inexpensive cities, they are quite costly for expatriates since imported goods come at a premium. In addition, finding secure living accommodations that meet the standards of expatriates can be challenging and quite costly as well. More cities appearing in the top 10 of Mercer’s costliest cities for expatriates are Bern, Moscow, and Shanghai. Karachi, ranked 211, is the world’s least expensive city for expatriates, and the survey found that Luanda is more than three times as costly as Karachi.
African Union leaders have solidified their commitment to transforming Africa’s agriculture sector by improving upon the 2003 Maputo Declaration, under which they committed to spending at least 10% of their national budgets on agriculture. The Malabo Declaration, coming out of the 23rd AU Summit of Heads of State and Government in Equatorial Guinea, commits member states to implement a number of essential policy reforms toward ending hunger and cutting poverty in Africa in half by 2025. To meet these goals, African leaders re-affirmed their intention to devote 10% of their national budgets to agricultural development and agreed to targets such as doubling agricultural productivity, halving post-harvest loss, and bringing stunting down to 10% across Africa. During this official AU Year of Agriculture and Food Security, the new declaration prioritizes the operationalization of the African Investment Bank, responsible private sector investment, increased support for intra-regional trade, adoption of climate-resilient farming strategies, youth inclusion and employment targets, and mutual accountability for results.
The University of Djibouti has implemented a sophisticated software system to help it achieve its ambition to deliver tertiary education to students in countries on the horn of Africa. Sponsored by the Ministry of Higher Education, the University of Djibouti e-campus was unveiled at a ceremony attended by the Djiboutian President Ismaïl Omar Guelleh and students from the university. Dr Nabil Mohamed Ahmed, Minister of Higher Education and Research, said that the Peoplesoft system will entrench global best practices in delivering and managing higher education and that modern technology is a key requirement to advance education in Djibouti and beyond. The long-term goal of the university is to provide degree and post-graduate courses to students in surrounding countries, a service the university believes will be supported by the system. The University of Djibouti today offers its more than 5,000 students 29 distinct educational channels comprising four faculties: Faculty of Letters, Languages and Social Sciences; Faculty of Law, Economics and Management; Faculty of Sciences, and the Institute of Technology.
The South African government remains committed to developing and growing South Africa's automotive sector, President Jacob Zuma said at the unveiling of Chinese company First Automotive Works' new truck manufacturing plant outside Port Elizabeth. The R600-million factory, based in the Coega industrial development zone, will produce 5 000 trucks a year once it is running at full capacity, and 3 500 cars a year following a second phase of development. Zuma said the government's Vision 2020 strategy for the automotive industry aimed at doubling local vehicle production and extending and deepening component manufacture by 2020. Part of this involved positioning South Africa as a destination of choice for the assembly of truck and buses, he said, and to further this objective the Department of Trade and Industry (DTI) had completed preparatory work on a new investment support scheme for manufacturers. The DTI recently published, for public comment, guidelines on the Automotive Investment Scheme for Medium and Heavy Commercial Vehicles - an extension of similar schemes already in place for passenger vehicle and minibus taxi manufacturers. The East African Community (EAC), Common Market for Eastern and Central Africa (COMESA) and Southern African Development Community (SADC) are in the process of negotiating a free trade area that will bring together 26 countries with a combined population of 600-million and an overall GDP of approximately US$2-trillion.
The World Bank Group has announced it spent US15.3-billion on development projects in sub-Saharan Africa during the financial year from July 2013 to June 2014 – a new record – most of it in zero-interest credits and grants from the International Development Association (IDA), the bank's fund for the poorest countries. The bank contributed $10.6-billion in new lending to 160 projects over the year, including $10.2-billion in zero-interest credits and grants from the International Development Association (IDA) – the largest sum the IDA has delivered in any region in the World Bank's history. The work of the bank's International Finance Corporation (IFC) in the African private sector focused on building infrastructure and introducing new business approaches to help drive growth and job creation. During the year the IFC invested more than $4.2-billion in the continent: $3-billion went to IDA countries and some $800-million to fragile and conflict-ridden states. The IFC also spent $55-million on advisory service programmes in the region, 96% of it in the poorest countries. The Multilateral Investment Guarantee Agency (Miga), also part of the World Bank Group, issued guarantees of $515-million to projects developing oil and gas, power, services, and telecommunications. The agency also teamed up with the Overseas Private Investment Corporation to establish a $350-million political risk facility to support planned investments in sustainable agribusiness in some 13 sub-Saharan African countries. In collaboration with individual countries, the bank focused on regional projects in sustainable energy, irrigation, water management, and food security, as well as in job training programmes for the youth, the prevention of malaria and other tropical diseases, and social protection for poor families. During the year, the World Bank responded to the crisis in Central African Republic, delivering over US$70-million to help restore government services and support food distribution and healthcare. Major regional initiatives by the bank also tackled fragility and conflict. In November 2013, World Bank Group president Jim Yong Kim pledged $1.5-billion to boost economic growth and lift the people of Africa's Sahel Region out of devastating poverty. Boosting access to affordable, reliable, and sustainable energy is a primary objective of the bank's work in Africa. During the 2013-2014 financial year, its projects focused on developing hydropower potential and providing new forms of sustainable power. The bank supported the 80-megawatt Regional Rusumo Falls Hydroelectric Project in Burundi, Rwanda, and Tanzania, and provided a $100-million grant to Burundi for the Jiji-Mulembwe hydropower project. Both projects are set to link millions of people to the power grid. The World Bank also supports countries' individual efforts to improve agricultural productivity by linking farmers to markets and reducing risk and vulnerability, as well as increasing rural employment, and making agriculture more environmentally sustainable. Higher education plays a key role in promoting economic growth and development especially for Africa's fastest growing population group, the youth. The World Bank is one of the largest financiers of higher education on the continent. Its new $150-million Africa Higher Education Centres of Excellence project is funding 19 university-based institutions for advanced education in West and Central Africa. This will support regional specialisation among participating universities in mathematics, science, engineering and ICT.
More than 100,000 smallholder farmers in Tanzania will benefit from US$4.25 million in projects to strengthen agricultural productivity in the country. The funding from the Alliance for a Green Revolution in Africa (AGRA) aims to improve incomes, productivity and access to markets for farmers in the southern highlands – Tanzania’s main breadbasket region and a region covered by the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) initiative. Availability of quality seed and inputs as well as poor market access and difficulty securing finance are major inhibitors to agricultural productivity in Tanzania, and most of sub-Sahara Africa. To overcome these challenges AGRA, with partners including Netherlands Development Organization (SNV), Rural Urban Development Initiative (RUDI), Women in Social Entrepreneurship (WISE) and, Dunduliza Network of Savings And Credit Co-operatives (SACCOs) have worked together to design a series of three year projects to directly tackle these issues. To enhance farmers’ access to improved seed and inputs, the project will facilitate the training of agro-dealers to increase their knowledge and confidence on the improved technologies. The project will also link agro-dealers and farmers to micro-financiers to make these improved technologies more accessible. The use of better inputs go hand in hand with improved management practices, and through the project over 90,000 farmers will be trained on practices such as Integrated Soil Fertility Management (ISFM). ISFM can increase cereal crops yield by up to 300 per cent and legume crop yields by 100 per cent, and involves the use of the strategic use of fertilizers combined with organic soil enhancers. Farmers use fertilizers efficiently and in combination with organic soil ameliorating inputs. To ensure gains made from improved seed and management are not lost when trying to sell the produce, the projects will result in providing farmers with training in post-harvest loss management, access to storage facilities and access to structured markets for rice, maize, beans and soybeans.
Kenyans are transacting Sh6.2 billion daily through mobile phones, Central Bank of Kenya has said. This is a rise from an average of Sh5.2 billion last year, underlining growing confidence in mobile money and cashless transactions. Data from CBK shows that Sh543 billion changed hands in 206 million transactions conducted through mobile phones in the first three months of the year, compared to Sh417 billion transacted in 158 million deals last year. Banks have been interfacing their systems with mobile money operators to allow their customers to move cash from one platform to another seamlessly. Utility service providers such as pay TV, electricity and water agencies are accept mobile payments.
South Korean electronics and technology giant Samsung is set to invest US$20-million in a new television factory at the Dube TradePort in South Africa's KwaZulu-Natal province, in order to take advantage of rising demand for consumer goods in Africa. The company plans to start construction in the latter half of the year and anticipates completion in 2018. The Dube TradePort is an air-freight logistics hub located alongside King Shaka International Airport, 30 kilometres north of Durban. It is poised to become one of the special economic zones that South Africa is setting up in order to boost investment in the country. The South African factory will be Samsung's second in Africa. The first, located in Beni Suef, Egypt, began production in September 2013.
Zimbabweans in the Diaspora have remitted US$1.4 billion in the past two years and the figure could be higher if non-formal remittances are included. Statistics from the Reserve Bank of Zimbabwe show that in 2012, total remittances, including those of industrial organisations, amounted to US$2.1 billion, while in 2013 remittances totalled US$1.8 billion. The Bank says that the amount could be higher given that a substantial amount of diaspora remittances continued to be transmitted through informal channels and while the total remittances may show a decline, there was actually an upsurge in terms of individual remittances. Of the US$2.1 billion recorded in 2012, US$655 million were individual remittances by Zimbabweans, while US$764 million was part of the US$1.8 billion recorded last year. In 2012, individual remittances were US$655 million and last year the figure was US$764 million. At least 50 percent of remittances came through informal channels and the central bank is in the process of devising strategies to ensure that a larger chunk of remittances came through formal banking channels. Zimbabwe has a strong skilled and non-skilled Diaspora population mainly in South Africa, the United Kingdom, Canada, Australia and the United States, who regularly send money back home to sustain their families. Although it is difficult to verify the full statistics of remittances and other contributions, the RBZ said it was exploring other suitable facilities to effectively harness Diaspora savings for the development of the economy. The central bank said the total decline in total remittance recorded last year was not a fair barometer in judging the Diaspora contributions as these were mainly from non-governmental and international organisations which could have been affected by a number of factors that include the global economic slow-down, subdued inflows from foreign investment, offshore credit lines and foreign aid. In his 2014 Budget Statement, Finance Minister Cde Patrick Chinamasa said there were plans by the Government to introduce a Diaspora bond to tap into the market. According to the World Bank, African Diaspora savings, at US$53 billion every year, exceed annual remittances to the continent and are mostly invested abroad.
For the second year in a row, South African telecommunications giant, MTN, has been named the country's top brand, beating out rival Vodacom, and energy producer Sasol. The announcement was made at the release of the Brand Finance South Africa Top 50 survey by Brand South Africa. Brand Finance South Africa is part of the international Brand Finance group, which helps companies measure the value of, and manage their brands. According to the survey, MTN's brand value has grown by 31% over the last year thanks to its increasing international exposure. This is also due to how MTN conducts business in each country it enters: it collects knowledge of that country and respects its customs. The survey shows MTN has widened the gap between itself and its competitors by posting a brand value of R56.3-million, over R30-million more than Sasol and Vodacom. Sasol had overtaken Vodacom to claim second spot this year after its value increased by 13%. This is largely thanks to ventures in 38 countries and the weaker rand. Investec moved from 18th in 2013 to 9th this year. Its brand value increased by 67% and according to the survey, could rival South Africa's big four banks in coming years. Brand Finance Africa says the brands selected in the survey help in telling the South African story. The evaluators used the royalty relief method, which estimates the likely future sales of a brand and the royalty rate that would be charged for the use of the brand.
South Africa stands to gain significantly from the Economic Partnership Agreement recently concluded between a subgroup of the Southern African Development Community (SADC) and the European Union (EU), says Trade and Industry Minister Rob Davies. The new trade pact gives South Africa marked benefits over the existing bilateral Trade, Development and Co-operation Agreement with the EU. The benefits included improved market access for 32 agricultural products, with a significant improvement in access to the EU market for wine (110-million litres duty-free), sugar (150 000 tons duty-free) and ethanol (80 000 tons duty-free). There is also improved access to EU markets for South African exports of flowers, and of some dairy, fruit and fruit products. After 10 years of preparation and negotiation, the deal has been initialled by the EU, the five members of the Southern African Customs Union - South Africa, Namibia, Botswana, Lesotho and Swaziland - as well as Mozambique and Angola. The EU is the SADC's largest trading partner, with South Africa accounting for the largest share of the SADC's trade with the EU.
Africa is now the big prize for foreign investors registered in Mauritius. In the past, the island was a major conduit for investment into India and high-growth Asian nations, but Africa is now much more popular, according to management firm Imara Trust Company (Mauritius). A significant driver of the firm’s business volumes, says CEO Preetam Prayag, is the growing wave of investors eager to establish Mauritian-registered investment holding companies as their preferred channel for African investment. South Africa, China, India and Malaysia, – in that order – are the largest developing-country sources of foreign direct investment (FDI) into Africa. The changing level of investment flows through Mauritius into Africa and Asia can be assessed from official statistics. In 2010, Asia was the target for 14.45% of all investment flows through Mauritius. By 2013, this was down to 13.33%. In contrast, the level of Africa-targeted investment via Mauritius grew from 40.12% of investment flows in 2010 to 54.43% three years later. Low Mauritian taxes, business-friendly policies, double taxation agreements (DTAs) and Investment Promotion and Protection Agreements (IPPAs) with numerous countries explain the popularity of Mauritian structures as a channel for corporate investment. Mauritius has DTAs with 14 African states. A typical effect is to reduce tax exposure. The island also has IPPAs with 17 African nations. These bilateral arrangements ensure free repatriation of capital and returns while safeguarding against political policy risk and the risk of riot or unrest. But Prayag says the network of DTAs and IPPAs should not skew investment flows in Africa’s favour as Mauritius has similar agreements across Asia, yet Africa investment flows are four times bigger. Investors looking for African opportunities tend to focus on the banking, mining, retail, manufacturing and tele-communication sectors. The top five targeted countries are Nigeria, South Africa, Ghana, Congo and Algeria, with Kenya and Mozambique not far behind.
The challenges facing oil & gas companies operating in Africa continue to be diverse and numerous fuelled by fraud, corruption, theft, poor infrastructure and a lack of skilled resources, among others. Regulatory uncertainty and delays in passing laws are severely inhibiting sector development in many countries around the continent. PwC’s ‘Africa oil & gas review’ analyses what has happened in the last 12 months in the oil & gas industry within the major African markets. The survey draws upon the valuable experience and views of industry players in Africa, including international oil companies operating on the continent, national oil companies, services companies, independent oil organisations and industry commentators, to provide insight into the latest developments affecting the industry. The Review shows that the oil & gas industry in Africa continues to show substantial growth, with new hydrocarbon provinces developing at a significant pace. “Large gas finds in Mozambique and Tanzania have caused the world to take note of East Africa as an emerging player in the global industry,’ says Bredenhann. Africa has proven natural gas reserves of 502 trillion cubic feet (Tcf) with 90% of the continent’s annual natural gas production of 6.5Tcf coming from Nigeria, Libya, Algeria and Egypt. The major challenges identified by organisations in the oil & gas industry have remained largely unchanged with the top three issues of uncertain regulatory framework, corruption and poor physical infrastructure also identified as the biggest challenges in 2010 and 2012. The mandate for local skills development has become a concern for businesses operating in the oil & gas sector throughout Africa. In 2012, the survey showed that 25% of the total workforce at respondents’ companies comprised expatriates. This year, the proportion of expatriates has dropped significantly – down to a mere 10.6% of the workforce surveyed. Fortunately, most companies have been able to fill middle to senior management as well as specialist technical roles with locals from their host nations. Over 70% of companies acknowledged that skills, people training and development are among their top-five strategic priorities over the next five years, showing the importance the industry is placing on local content initiatives and the significance that skills development has on executive-level agendas. Governments and national oil companies play a significant role in sustaining growth and development in Africa’s oil & gas sector.
For the second year in a roll, Accra, Ghana’s capital city has been voted as the city with the best inclusive growth potential in Africa. In a report released by MasterCard, the multinational financial services corporation headquartered in the United States dubbed the “MasterCard African Cities Growth Index” (ACGI), Accra ranked highest of all African cities included in this study, with an overall score of 50.9. According to the report “Accra is the African city with the greatest promise of inclusive growth and a better material life for its population in the years ahead.” Accra, a growing industrial and services center, consistently ranked well across the ACGI’s assessment criteria and is among the highest in governance rankings. The MasterCard African Cities Growth Index (ACGI) maps the future success of Africa from the perspective of inclusive versus exclusive urbanization, and by implication the economic outlook of the continent. The 2014 report is the second to be released by MasterCard as part of what the company terms “a portfolio of insight reports that examine the economic landscape and potential for growth in Africa.” The 2014 Index, which analyzes 74 African cities, a jump from the 19 cities analyzed in 2013, ranks them according to their inclusive growth potential and serves as a valuable resource for governments, investors, and the business community to map the continent’s future success from the perspective of inclusive urbanization. “In the category of inclusive growth potential are cities with legislation, policy and resources in place to increase economic inclusivity among their citizens” the ACGI states. “These cities, despite some persistent barriers to inclusive growth, have sufficient forward momentum to ensure that more of their residents participate in the mainstream economy, and share the benefits of growth over the next five years. Accra stands out as the only African city in this category, and therefore as the city in Africa with the greatest promise of inclusive economic growth” it further asserts.
According to a report by Agusto & Co, Nigeria’s boom in its real estate sector has raised the valuation of the market to $41 billion (6.4 trillion), larger than country’s national budget for 2014. This reflects the large portfolio investments in both housing and commercial property markets, with Lagos, Nigeria’s commercial capital and one of Africa’s leading economic hubs, accounting for more than 40 percent, along with cities such as Abuja and Port Harcourt. The country’s property investment portfolio includes projects such as the $6 billion Eko Atlantic beach front city and the $18 billion Centenary Cities, a green city project located in the suburbs of the capital, Abuja.
The African Innovation Foundation (AIF)) is calling on all African innovators to submit their entries for the fourth edition of the Innovation Prize for Africa (IPA) competition. The IPA is presented annually, enabling and encouraging African pioneers to develop creative ideas and techniques to overcome some of the challenges faced by the continent and support sustainable development. The IPA is becoming integral to facilitating ground-breaking thinking, creativity and driving awareness to the outstanding work being done in Africa by Africans. IPA 2013 winner, AgriProtein went on to raise $11 million to build its first two commercial farms in Cape Town. All innovations are evaluated based on the following criteria: originality, marketability, scalability, social impact and scientific/technical aspects. The best submission will be awarded a grand prize of USD 100 000. The second prize of USD 25 000 will be awarded to an innovator with an innovation which has the best commercial and business potential. An additional award is a special prize granted to the innovator whose innovation has the best social impact in the community. The IPA encourages entries in five key categories: Agriculture and Agribusiness, Environment, Energy and Water, Health and Wellbeing, ICT applications, and Manufacturing and Services Industries. Recognising home grown innovative ingenuity, the prize contributes to increased funding of start-ups, adoption of new and emerging technologies and accelerated growth of the private sector. With ever changing economic and social environments, it is critical that proposed solutions tackle issues affecting African lives, and that they are effective and are different from the existing ones. The IPA also beckons all investors, governments and other stakeholders interested in evaluating, investing and maximising the continent’s resources to participate in this innovative and empowering initiative and make a significant change through generous contributions that will accelerate the Africa’s economic growth. The deadline for submitting applications for IPA 2015 is 31 October 2014 at 24h00 GMT. For more information on competition categories, conditions of entry, and submission details, please visit: http://innovationprizeforafrica.org/.
PwC has announced it is increasing its investment in Africa and building closer links between PwC UK and PwC Africa, to meet increased demand for professional services as trade activity between the two regions grows. The investment is part of PwC’s ongoing strategy to develop high potential markets, and follows the UK firm’s successful investment in Central and Eastern Europe. As part of the investment, Paul Cleal, PwC UK partner and chair of its Africa Business Group, will be seconded to the African Leadership team and based on the continent. PwC teams from the UK and Africa have a strong track record of working together to support businesses, governments and NGOs in nations such as Ghana, Kenya, Nigeria, Rwanda and Zambia with expertise in fields such as economic development, climate change, education, infrastructure, natural resources, and power and utilities.
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