Posts tagged ‘investment’

Boom time for African start ups

 

 

2017 was the best year as far as the Africa tech revolution was concerned, as investment in tech start-ups topped US$195 million over the course of the year.

 

The number of tech starts ups that received funding has increase from 125 in 2015 to 146 in 2016 and 159 in 2017; this means Investor confidence and willingness to back African tech ventures is increasing.

 

The total funding raised by these companies – US$195,060,845 – also marks a 51% rise on the previous year’s figures, taking investment into African start-ups to an all-time record high. This proves that the speculation on African tech starts ups is real and not just hype and is impacting all aspects of daily life and service delivery.

 

Tech starts up are coming in all fields from healthcare to home cleaning; but it is the fintech companies that received the best funding as seen since last 3 years. A few other sectors also saw success in 2017. Ecommerce for example grew 350% on the previous year to collect over US$16 million in investment over the course of the year.

 

Agriculture and farming being big in Africa, there has been investment in agri-tech space, with growth of 203% in 2017. Agri-tech and e-health being are also interesting for investors due to the scope and need  of innovative new solutions, and the substantial impact element of ventures operating in these areas, these investments offer both sizeable returns and impact.

 

South Africa, Nigeria and Kenya continued to solidify their position as the top three investment destinations in Africa, but there was also interest in Egypt, Ghana, Uganda and Morocco.

 

Africa’s tech ecosystem is bound to create a trend which will continue to develop as the continent carries on presenting high quality innovations and businesses, tackling Africa’s challenges, but also scalable across the world.

 

Talent is a top priority for all start-up founders and executives. Starts up need to hire recruitment agencies with executive search teams who know the hiring needs of an entrepreneurial venture. Start-ups should recruit highly motivated, self-starting, hardworking candidates, quick thinking candidates with good execution skills who share a common vision and are interested in a job in a start-up.

 

source : forbes.com

 

Kenya roots for Japanese Investments

 

(CNBCAfrica)

East Africa’s economic powerhouse, Kenya is aiming to increase its influence in the Japanese markets and believes that, that the mooted direct flights between Japan and Kenya would see the volume of trade improving as per experts.

 

The establishment of direct routes will also cut flying hours that can best be invested in trade and direct trade transactions between the two countries and be an advantage to Kenya’s horticulture industry and make business more cost effective.

 

Japanese market was very conscious of quality and if Kenya followed the market requirement and produced the on demand products it could close the trade imbalance gap. Also working on value addition of Kenyan products will see promotion of jobs in Kenya. .

 

Kenya could add value to its products through joint venture investments which will help service the market more effectively. It needs improved focus when preparing to meet potential markets and also draw on the highly skilled Kenyan diaspora in Japan when making propositions. Cutting costs such as transport, power and logistics would make the east African economy more competitive.

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.

China doing enough to create jobs in Africa?

(By Peter Eigen, Special to CNN) China- Africa trade is growing and affecting both China and Africa. Chinese investments have created jobs in Africa and created vacancies in Africa which were not there earlier.

 

Many Africa recruitment agencies are getting assignments from Chinese run companies to find candidates looking for a career in Africa and to fill vacancies in Africa. But is this booming relationship good or bad for Africa?

 

China is accused of not creating enough jobs in Africa for the locals and not doing enough to transfer skills and technology. And when Africans are employed, working conditions are sometimes substandard.

 

Critics accuse China of being self- centred and exploiting and stealing Africa’s precious mineral resources. China’s supporters say that it is strictly neutral and business-oriented and contributing to Africa’s economic growth, both in terms of trade and with building infrastructure.

 

But some 90 percent of Sino-African trade is still based around natural resources – oil, ores, and minerals. First, oil and mining do not employ many people and they do not necessarily create many jobs in Africa.

 

The crushing competition from Chinese sellers in local African markets means job loss for the locals. So what else could Africa and China do so that Africa benefits more from its growing relationship with China?

 

African countries could diversify their economies as much as possible away from supplying unprocessed natural resources to China. This will make them less dependent on the vagaries of both the Chinese economy and the ups and downs of global commodity prices. African nations should also prepare for the day when they no longer have natural resources to sell.

 

African countries need to focus on skill development for the local workforce, encourage Chinese investment into more labour intensive sectors and make way for creation of more jobs in Africa. No jobs in Africa for the growing workforce is likely to create a large and growing population of frustrated, jobless youth.

 

There is hope! Rising Chinese wages in the manufacturing sector may lead Chinese manufacturers to export jobs to African countries where labour prices are lower. Chinese companies have created jobs and exports in countries like Zambia and Ethiopia.

 

Dangote Group on another job creating venture

(The Guardian Nigeria) Aliko Dangote has been instrumental in creating jobs in Africa. The multi-sector Dangote group is one of the biggest employers in Africa and has helped many Africans and expatriates make their careers in Africa.

 

While the group aims to create jobs in Africa for the locals, Africa recruitment agencies are directed to hire expatriates to fill vacancies in Africa where required skills are not available locally.

 

Sephaku Cement, a subsidiary of Dangote Cement and an indigenous player in South Africa’s cement industry will become a leading cement producer in South Africa, enabling significant job creation with wider economic benefits.

 

It  has signed $222 million (N34.85 billion) of domestic debt funding for its $390 million (N62.4 billion) cement and clinker plant projects spanning two provinces in the continent’s biggest economy.

 

This deal indicates a strong, new commitment to industrial development and working to match the need for growing housing and infrastructure requirements building in South Africa. Through new infrastructure establishment and the resulting local job creation, the investment benefit will extend to provincial and community development.

 

Industrial development zones : Creating jobs in Africa

 (Business Day) Executive search firms have their hands full filling vacancies in Africa, looking for skilled professionals interested in a career in Africa.

 

Yet, lack of jobs in Africa is a burning issue. Is lack of skills a culprit? In South Africa for example, many industries such as the TDM, suffer from skills erosion and a critical shortage of artisans and engineers and a lack of jobs.

 

Industrial development zones (IDZs) have attracted foreign investment and created jobs in Africa, but more needs to be done. Partnerships between the government and private business could accelerate the economic development and help many build their Careers in Africa.

 

Projects like Nelson Mandela Bay by the  Coega IDZ recognised the need for private investment-driven development and job creation.  A joint venture between the municipality and CDC – its aim:  built with the aim and potential to attract investment and employment creation in the various strategic areas.

 

There have been 3,770 jobs created at Coega by investors, including Acoustex, bizworks, Benteler, Cape Concrete and Dynamic Commodities.

 

Discovery Health opened a call centre at Coega creating jobs for 336 people and is expected to have 400 more vacancies by the end of this year. Coega is also taking steps to provide jobs for trainees in the IDZ.

 

But will the IDZs create jobs fast enough for the thousands of jobless youth?:

It is China- time in Africa!

What does China mean to Uganda?      It has brought job opportunities, rapid modernization  economic growth, better infrastructure, goods and services to the average Ugandan and helped lift the country out of poverty.

 

More than 10,000 Chinese have been involved in bringing different business activities and create jobs by hiring the locals to work for them. Many Chinese employers believe that creating jobs for the locals is a key to success.  Many of them find working with locals easy and want to hold onto and also attract loyal employees.

 

More than 260 Chinese companies have opened in the country, across different sectors, and have created 30,000 local jobs in Africa. Local workers praise the training they have been given by their Chinese employers. Working with the Chinese makes them experienced and helps them grow professionally.

 

The Chinese built $476 million project Kampala-Entebbe Expressway is crucial for the local economy: it will create many jobs directly and indirectly. 90 percent of the employees on the project will be Ugandan, with some expected to take up important management positions.

 

Placement agencies are recruiting expert and skilled professionals to work in these projects. In case of specific skills not available locally, suitable Expatriates have opportunities to make their career in Africa. Recruitment services find that Uganda is an attractive destination for people looking take up challenging, well paying jobs in Africa.

Africa : China under attack

(The Globe and Mail) Illegal mining has proved a disaster for both China and Ghana. China has protested against the killing of a 16-year-old Chinese during a raid by the Ghanaian authorities at a mine in Ghana.

 

 

Chinese run mines face environmental issues; poor and unsafe working conditions, low salaries and child labour problems because they use Ghanaian children.

 

Ghana is attractive for its gold and entrepreneurial Chinese miners are playing a growing role because of their access to imported Chinese machinery that enables them to extract gold from riverbeds more efficiently.

 

Ghana has deported and imprisoned Chinese miners to curb illegal mining. Beijing feels that he Ghana government should start from the source of the issue, crack down severely on the middlemen, the traffickers and the illegal miners, and curb their illegal activities instead of just arresting victim Chinese citizens.