30 posts tagged april2012
30 posts tagged april2012
Lagos State Government is planning to float a two-fold Information and Communications Technology (ICT) Innovation Fund for the economic development of the state.
This Fund, which would cater for the populace and post-secondary institutions in the state, would be supported and administered by the Lagos State Government to nurture an environment that would aid research and development, enterprise promotion and innovation in the state.
At a briefing in Lagos, the Commissioner for Science and Technology, Mr Adebiyi Mabadeje, said the the Fund will stimulate and encourage creativity and innovation in the populace in addressing critical areas of development in the state, in addition to poverty reduction and job creation.
These are exciting times to be in Africa. We are witnessing a unique moment in Africa’s political and economic development, standing on the cusp of what many of us believe is the African Century. It is a century structured around hope and crucially, about conviction, the conviction that we can, at last, leverage the macroeconomic fundamentals and competitive advantages with which we have been endowed as we move toward 2040 — the year by which Africa will become home to the world’s largest and fastest-growing working-age population.
This transformation is being led by a new generation of can-do leaders in business, government and civil society who are reshaping Africa into an economic powerhouse.
Tony Elumelu has spoken out about the value of what he calls Africapitalism, underlining the importance of Africans leading the development of the continent. At Citadel Capital we echo this sentiment. We believe this is Africa’s primetime.
Six of the ten fastest-growing economies globally in the 10 years to 2010 were in Africa, and seven of the ten fastest-growing economies in the five years to 2016 will also be on our continent. Dynamic and heterogeneous, Africa is long on opportunity, but short on capital and management expertise — two things that private equity is uniquely positioned to bring to the table. Governments face rising public expectations and constrained balance sheets, a development that has seen them open previously hands-off industries to the private sector. Couple that with enduring investment fundamentals structured around deregulation / government pullback, infrastructure with PE returns, natural advantages and resources, and a fast-growing consumer population and you have a recipe for generating outstanding returns while simultaneously helping governments meet the aspirations of their citizens.
The re-launch of the Africa Venture Capital Association this week in Accra demonstrates the increasing sophistication and scale of the PE industry on the continent and the need for a respected industry body to provide leadership and structure to a sector playing a transformational role in catalyzing growth in Africa.
UK companies need to do more to take advantages of opportunities to win customers among the growing African middle classes, according to a new report.
A Barclays survey of UK companies currently exporting to Africa found that the vast majority – 92 per cent - believe there is opportunity for UK businesses to win business in Africa today.
The biggest opportunity for firms come from the reputation of British goods and services, followed by growing investment in infrastructure across the continent and an expanding middle class with greater disposable income.
Michael Hartig, director of Barclays Corporate Banking in Manchester, said: “This is a ‘ground floor’ moment in many Africa economies, in which UK suppliers have the opportunity to build their brand in Africa at a time when a growing middle class is beginning to make long term brand decisions. “The UK should not be missing out.”
“We believe that Africa’s markets present significant opportunities for development due to a combination of strong economic growth, rising demand for the region’s vast natural resources, and a growing consumer market,” said Mobius.
“Africa is expected to grow more than 7 per cent annually in the next 20 years, due to an improving investment environment, better economic management and developed as well as emerging markets’ rising demand for the continent’s resources, all of which offer a compelling proposition to global investors.”
THE diverse nature of the African consumer requires that businesses heading into Africa adopt a local approach rather than just a continental approach, a new study shows.
A recent report by Nielsen titled The Diverse People of Africa aims to shed light on the different African consumers and how best to reach them. Nielsen’s business leader for strategy development in Africa, Graham Marshall , says most companies have a continental-wide strategy for Africa.
But the local level of execution was even more important than this.
“What works in Kenya won’t necessarily work in Ethiopia,” he says. Consumer spending and shopping patterns differ widely across countries, the study finds.
“Nigerians spend the most on consumer packaged products whereas Ethiopia, Uganda and Kenya spend least. In Ethiopia, only daily essentials like tea, coffee and cooking oil have high penetration and consumers are likely to shop for products on discount.”
The study shows that Tanzania has the highest number of categories with penetration above 75%, and consumers are likely to keep up with the newest trends in fashion and technology.
While the opportunity for growth is massive for companies that can overcome Africa’s specific obstacles (see “Lessons from Africa’s pioneers”), the continent is brimming with competitors that have the same idea. More than 70% of the top 50 global consumer packaged goods makers are already tapping Africa’s rapidly expanding consumer market. For 20% of this top 50, Africa already represents more than 5% of their global sales—as much as 14% for Diageo and 10% for Parmalat— and most in that group also enjoy strong profitability.
In addition to the leading global players, a new species of consumer products competitors is quickly rising from the ranks of emerging market champions. Companies like Singapore’s Olam, Saudi Arabia’s Savola Foods and India’s Marico or Godrej Consumer Products are also aggressively going after the growing African consumer market.
The African Cotton and Textile Industries Federation, (ACTIF) the voice of the textile industry in Africa, brings “Origin Africa” — a four-day event showcasing the best in Africa fashion, textiles, and accessories.
Its objective is to put Africa on the map as a preferred place to do business in the international textile and apparel industry.
Ethiopia is the heart of Origin Africa - celebrating the spirit, style and innovation that is modern Africa. Now in its third year, Origin Africa 2012 will feature one of the largest and most comprehensive trade expos in Africa, with more than 60 exhibitors from Africa, the U.S, Europe,India and China covering the entire fiber/textile/apparel supply chain as well as the home decor and fashion accessories sector.
The Trade Expo is complemented by a world-class seminar series as well as the Origin Africa Designer Showcase, which features the best in African design talent. The event will roll out from 24 - 27 April at the Sheraton Addis and the African Union Conference Center.
“We are thrilled to launch our first Origin Africa Trade Expo in Ethiopia,” says Skander Negasi of Trade and Fairs East Africa, the official representative of global trade fair giant Messe Frankfurt.
“Ethiopiais a dynamic market for the textile and apparel industry. The Trade Expo offers a forum for buyers and sellers to come together under one roof to do business.”
Recognizing the important economic role that the fiber/ textile/apparel sector plays in the region, the Origin Africa Designer Showcase will be held in the new African Union Conference Center- the first of its kind commercial event in this world-class facility.