Posts tagged ‘emerging’

African consumer market attracts investments, creates jobs

(Business Day Online ) Africa’s consumer-facing industries are expected to grow by more than $400 billion by 2020, which would account for more than half the total revenue increase that all businesses are expected to generate in Africa by the end of the decade.

 

It means more foreign investments and jobs in Africa. FMCG majors are trying to get a slice of the African markets, while creating opportunities for careers in Africa. Africa Recruitment Agencies will compete to find the best of the local and international talent to fill in vacancies in Africa in the consumer services.

 

One of the trends driving this consumer surge is the booming African population, of which Nigeria’s 167 million people is a major market. As Africa’s working-age population increases more jobs need to be created and if there are more vacancies in Africa for the youth, the continent is expected to experience a dramatic decline in its dependency ratio and an increase in its GDP

 

Africa also has the world’s youngest population. Better education levels and increasing brand consciousness means major change in consumption habits and demands for consumer products.

 

 

What does Africa expect from Obama?

Experts are optimistic that the re-elected US president Barack Obama will focus on boosting US-Africa trade relations and work towards re-directing private investments and jobs to Africa.

 

Obamas father was Kenyan; he is half- African. Somewhere, Africa feels that an Obama-led America is well-positioned and equipped to help them on their path to economic and social progress by deepening US-Africa trade ties and creating jobs in Africa for the millions of unemployed.

 

In his first-term Obama made only one, cursory trip to sub-Saharan Africa during his first term and made no remarkable efforts like his predecessors to increase US-Africa relations although he defended the African Growth and opportunities Act (AGOA), initiated by President Bill Clinton, to offer African goods unfettered market access into the US.

 

The US was Africa’s biggest trading partner until China beat it to top position. Many US multinationals are already present in the continent and have created many jobs in Africa. When talent is not available locally Africa recruitment agencies are assigned to find skilled professionals looking for careers in Africa to fill up vacancies created in Africa by the US majors.

 

The US could take a cue from China. Chinese run companies are one of the biggest employers in Africa and have created many permanent jobs and contract jobs in Africa. The US must try to beat China and renew its trade ties with the continent. This will be a win-win situation for both continents, as both American and Africa jobs will be created.

 

It is Africa’s hope now that Obama in his Second-term will have Africa on his priority list, will focus on  establishing stronger trading relations like China, establishing more partnerships in sectors like Information Technology (IT), health, education and agriculture that can help economic and social progress and provide jobs in Africa.

 

Cooperatives Create Jobs in Africa

(allafrica.com) Creating job in Africa is essential and Cooperatives can be used as a business model to effectively empower communities. Experts feel they are a good and successful model and can create jobs in Africa and eradicate poverty due to their ability to create a captive market.

 

They are established by community members for social and economic progress of the society and to assist them improve their lives. In Africa cooperatives have mobilised the marginalised sections of the society, created jobs in Africa and bring them into the mainstream economy.

 

Providing training for members of cooperatives will help small enterprises succeed, help the economy and create more jobs in Africa.

 

Small time entrepreneurs have been able to learn skills like tendering for projects. running the cooperative like a business, applying for finance, as well as financial and business planning and ultimately open up productive well paying vacancies in Africa for unemployed youth.

Kenyan entrepreneurs

(BBC News) Nairobi attracts Kenyans looking for opportunities. The city is full of energy in spite of the poverty.

 

6 Kenyans in very different social circumstances share their dreams.

 

Wambui Gitonga is a stay-at-home mum who turned the school run into a business opportunity.

 

Ferrying her two boys to and from school every day, she found more and more parents looking for a solution to their own school run problem.

 

Knowing they were willing to pay her to transport their children, she hired a seven-seater minibus and started a company.

 

Ms Gitonga earns about $800 (£500) a month now.

 

Since starting the business five years ago, she has teamed up with a group of like-minded parents. Together they now operate eight different minibuses, and have expanded the business from buses to executive taxis as well.

 

Gachao Kiuna is CEO and managing director of one of Kenya’s biggest investment firms, Trans Century.

 

He’s responsible for investing millions of dollars in Kenya’s infrastructure, with a vision to help boost Kenya’s economic development.

 

He was a co-author of Kenya’s economic development plan for the next 25 years – Vision 2030. He earns about $20,000 (£12,350) a month.

 

He is responsible for many different companies and thrives on the opportunity in front of him – an opportunity to transform Kenya’s economy. This could also make him a very rich man.

 

Roseline Awino does so many jobs to get by, that she doesn’t know quite how to describe herself.

 

She is one of hundreds of thousands poor living in Nairobi’s slums. She’s a cleaner, a cook and a shopkeeper, with several jobs needed just to get by.

 

Her life is tough. She usually earns between $40 and 50 (£25 to £30) a month.

 

She dreams of working in an office one day and being happy, very happy. She knows she can earn a lot in the office. She would like to earn enough to pay someone to look after her in the future.

 

An industrial chemist, Steve Okiri has had to sacrifice time with his family to do the job that he loves.

 

His job pays him around $1,700 (£1,050) a month. He is passionate about it and is working in a field that he is an expert in.

 

He works in a remote place two hours drive from his home in Nairobi on a badly maintained road, so he spends the week at the plant and the weekends in town.

 

The consolation for missing his wife and young daughter, is that the company provides facilities, and a sense of community

 

Dr Edward Kariuki is a vet with the Kenya Wildlife Service since 11 years.

 

His job as a vet with the Kenya Wildlife Service is unpredictable and rewarding, including operating on orphaned lions.

 

He loves his job, is committed and passionate about it. He is always on call and – to treat injured animals or working out how to restock a national park with game for the predators. For this, he is paid about $1,600 (£990) a month.

 

His retirement plans include passing his knowledge onto the next generation of wildlife vets and of research.

 

Fundi Frank is one of Kenya’s foremost fashion designers, designing for pop stars and politicians and a one-man brand.

 

Running his own business means Mr Frank has had to become expert at many things over the years, from needlework to marketing.

 

He earns about $1,500 (£930) a month. Mr Frank is obsessed with fashion and has a clear ambition to promote his fashion ideas well beyond Kenya.

 

 

Why Africa is attractive?

(The Economic Times) Africa has survived the global downturn. New companies are now beginning to invest and those already present are expanding. Investment here gives good returns and creates jobs for thousands.

 

Why Africa?

 

  • The continent’s GDP of $1.5 trillion is similar to that of Brazil, India or Russia, and is expected to grow faster than most non-BRIC emerging markets.

 

  • Overall political situation has diminished and the emergence of trading blocs has dramatically improved the business environment.

 

  • Consumption spending per capita matches India or China. The rapidly increasing middle-class with disposable incomes means more consumers. That total consumer spending is expected to double by 2020.

 

  • Growth opportunities are massive for companies that can overcome hurdles like poor infrastructure and a talent shortage.

 

Another challenge: the opportunities are quickly attracting competitors, who are enjoying strong profitability. Global leaders face emerging market competitors such as Singapore’s Olam and Saudi Arabia’s Savola Foods and India’s Marico, Godrej Consumer ProductsBSE -0.69 % and DaburBSE -0.12 %.

Africa is not complaining though. It is attracting FDI and people are getting jobs.

Zimbabwe to set up $2 billion Refinery

(Ventures Africa) Zimbabwe’s largest platinum producer, Zimplats has invested $30 million for the feasibility study of its proposed mega project – a base metal refinery which is expected to create jobs and more revenue in the country.  According to experts, at least $2 billion is required to set up the refinery.

 

The mining sector directly employs just over 45, 000 workers. The local government is pushing for the domestic processing of the mineral to plug revenue leakages and create more jobs

 

Also, as production by the mines increases, South Africa, which is currently processing the metal, would run out of capacity to benefit the platinum group of metals. The local Platinum Producers’ Association, a group representing major platinum miners — Mimosa, Unki and Zimplats — were committed to setting up the new facility and decentralising the process.

 

Nigeria attracts major Investments

VENTURES AFRICA – The Nigerian economy has done appreciably well in spite of the global financial crisis and created jobs for the people.

 

It has attracted investments worth 6.8 trillion naira ($42.6 billion) in nine months, with Gross Domestic Product (GDP) growing at an average of 7.1 percent, driven mainly by non-oil sector.

 

Nigeria has begun concerted efforts to diversify its oil-based economy following the neglect and stagnation of vibrant sectors after it recorded oil boom.

 

Under the government, economic reforms have been initiated to encourage and foster private participation. The Investment Climate Reform Programme is a big success. It (Nigeria) is ranked first in the top five host economies for Foreign Direct Investment (FDI) in Africa, accounting for over 20 percent of total FDI flows into the continent.

 

 

Can Africa learn from China?

(china.org.in) China has taken only 30 plus years to become the world’s second largest economy and create jobs and wealth for its people. Could China’s development path provide lessons to Sub-Saharan Africa – help it grow, increase trade, create jobs?

 

Beginning from a war-torn agrarian economy and high poverty levels China embarked on a reform process that has facilitated more than 30 years of rapid economic and social development growth in the industrial sector fuelled by foreign investment, trade liberalization and expansion.

 

Unlike in most of Africa, the Chinese government has been and is still actively involved in business and playing a critical role in facilitating its economic growth.

 

China has shown that public enterprises can engage in business side by side with the private sector and still remain profitable. Offshore state owned Chinese enterprises are competitively engaged in businesses ranging from oil, road construction to telecommunications in Africa and creating thousands of jobs.

 

 

 

Franchises create jobs in Africa

(ahramonline) In Africa, the franchising industry employs around 500,000 people directly. Nearly 700 brands operate franchises, including KFC and McDonald’s, and home-grown businesses such as Nando’s, a chicken restaurant.

 

International franchises are making inroads into Africa, tapping into consumers’ hunger for their brands as developed markets stagnate and the African middle class grows.

 

Franchising creates opportunities for African entrepreneurs and provides jobs in the formal sector, while for brands it is a chance to enter a new market at a lower cost and with a business partner who is familiar with the terrain.

 

However, weak judicial systems, corruption and poor infrastructure are still deterrents for potential franchisors. The repatriation of profits from some African countries can also be difficult and there are concerns about the protection of intellectual property.

 

On a positive note, many franchisors are now encouraged by legal and economic reforms and governments keen to spur the growth of small businesses and establishment of franchise associations, which can provide a code of ethics and standards and also assist in disputes.

 

 

Where Africa works to build its future

 

 

Under construction: Like much of Kampala, Uganda’s start-up ecosystem is growing from the ground up, with the help of flourishing co-working spaces and technology hubs across the city

 

(BBC News) Thomas Ssemakula is an impressive young man.

 

A young entrepreneur with a dream to build multinational agribusiness that helps east African farmers build profitable and sustainable businesses and create jobs for Africans.

 

 

Thomas Ssemakula aims to move his company into it’s own Kampala office block within two years

 

The first step was to find somewhere to work from. Setting up on your own in east Africa isn’t cheap for an ordinary Ugandan. There’s rent, furniture, utilities and the internet connection.

 

So instead Mr Ssemakula decided to become a member of the Mara Launchpad, one of a new breed of home-grown co-working spaces and innovation hubs in Kampala.

 

Community property

 

The Mara Launchpad is on the third floor of an office block, above a Tusky’s supermarket, just across the road from Makere University.

 

Working from an office makes people trust you and take your seriously. Launchpad wants to give technology and non-technology companies credibility in the eyes of potential clients or partners.

 

There’s a large open plan room filled with desks, with wifi connectivity, as well as various meeting rooms.

 

Business incubation and mentorship is available, as well as a six week acceleration program that runs twice a year.

 

Ideas exchange

 

For emerging economies,  tech hubs and other co-working spaces the services and advice they offer can have even more impact than in the developed world and they are spreading rapidly across the African continent.

 

The Hive CoLab was opened to give the technology scene in Uganda a space that they could call their own and come and collaborate, says Barbara Birungi

 

In Hive CoLab in Kampala, “It’s not about strict business. It’s also about coming here to share your ideas, and collaborate. Because out of sharing and collaborating come ideas.

 

Kampala’s newest space is Outbox, a co-working space and technology start-up incubator and accelerator that counts Google among its partners.

 

The Outbox hub is a co-working space for a diverse group of people and a technology incubator and accelerator

 

As well as regular events and Mobile Monday innovation sessions, the incubator offers mentoring and support finding investors, helping them to protect their intellectual property

 

The space specializes in mobile and web start-ups, and Outbox is already home to at least one award-winning business.

 

Smooth transitions

 

Sure, there are ideas generated within those tech hubs, but they don’t know how to scale those businesses. They have the business acumen and the passion, but they don’t know how to go through setting up that business, or writing that business plan.

 

There are bright reviews though. For Mr Ssemakula, coming to the Mara Launchpad was the right thing to do and he is glad he did.