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African Business 2020 edition

  • Text
  • Agenda
  • Business
  • Invest
  • Union
  • Industry
  • Sustainable
  • Development
  • Regions
  • Trends
  • Sectors
  • Afcfta
  • Trade
  • Investment
  • Africa
  • Global
  • Continent
  • Projects
  • Economic
  • Infrastructure
  • Countries
A unique guide to business and investment in Africa. Global Africa Network is proud to launch this inaugural edition of African Business 2020 at a time of energetic planning for a prosperous future for the continent. The African Union’s Agenda 2063 is much more than a document about a hoped-for future, it contains concrete goals and deliverables. The Programme for Infrastructure Development in Africa (PIDA) and the development finance institution, the African Development Bank (AfDB) are already rolling out valuable projects that are changing the reality on the ground in vital areas of the African economy. Perhaps the most significant event of recent times is the signing by African leaders of the African Continental Free Trade Area agreement (AfCFTA) which will bring together all 55 member states of the African Union and cover a market of more than 1.2-billion people. African Business 2020 has articles on all of these recent trends, plus overviews of the key economic sectors and regional and country profiles. In 2019 Ethiopian Prime Minister Abiy Ahmed received the Nobel Peace Prize for peace-making efforts in his region. The economic dividends of peace are beginning to be felt. In 2020 South African President Cyril Ramaphosa assumed the mantle of AU Chairperson. He brings to the role considerable experience in conflict management, constitution-writing and seeking consensus. Global Africa Network is a proudly African company which has been producing region-specific business and investment guides since 2004, including South African Business and Nigerian Business, in addition to its online investment promotion platform


OVERVIEW Tourism Hoteliers are attracted by high rates of return. African tourism has weathered its fair share of knocks recently, but it has emerged stronger and is poised for strong growth. In 2017, tourism arrivals in Africa grew by 11.5% and hotel construction is booming. Travel and tourism grew in Africa at 5.6% in 2018, according to the World Travel & Tourism Council (WTTC). The global average was 3.9% in the same period. Accra, Cape Town, Lusaka and Lagos are among the cities that have shown the best occupancy growth. Lagos grew off a low base because of the recession of 2016 and Cape Town had its own challenges in that a severe drought brought it into the world spotlight. As it turned out, tourists continued to visit and entered into the spirit of water-saving. The Ebola health scare of 2013-2016 was more difficult to deal with, especially as some potential visitors failed to distinguish between regions where the virus was present and where it was not. The West African tourist market is showing good signs of recovery with a number of projects underway. This mirrors the continental trend. In 2019 Hotelier Middle East quoted an official from STR, a travel research company, saying, “There are now just seven countries in Africa with no internationally branded properties present, compared to 18 just six years ago. Accor and Marriott continue to lead the way in Africa, not just in terms of supply, but also pipeline.” French group Accor had 24 512 rooms across the continent Sector Insight Almost every African country has welcomed international hotel brands. in July 2019, while Marriott International had 24 508 rooms. The groups were developing a further estimated 35 000 rooms. In terms of individual brands, Hilton that has the most rooms, at 8 617, with Protea Hotels by Marriott second with 8 374 rooms. Marriott International expects to add 40 properties and over 8 000 rooms across the continent by the end of 2023. Neal Jones, Chief Sales and Marketing Officer, Middle East and Africa, says, “Egypt and South Africa continue to be our two key markets, but AFRICAN BUSINESS 2020 60

OVERVIEW we are also seeing a lot of traction for our brands in West and East Africa. “While strengthening our footprint in existing countries, Marriott International is entering new countries like Benin, Cape Verde, Ivory Coast, Liberia, Mozambique and Senegal. In 2018 we opened our first hotel in Mali, Sheraton Bamako (pictured), and the Marriott Hotel in Accra, Ghana,” added Jones. Jones says that the rate of return on foreign investment in Africa is higher than in any other developing region. He believes that African governments are prioritising tourism to help them achieve their development agendas. Says Jones, “Africa is embracing nature and wildlife tourism, international brands and technological changes, giving a much-needed impetus to inbound tourism.” Areas with potential for growth in the tourism sector include Tunisia, Zimbabwe (with a focus on ecotourism) and Tanzania, where the African Development Bank says there is “immense development potential”. Countries emerging from conflict such as South Sudan are obviously coming off a low base, but the potential is high. Several countries are prioritising tourism as a means to grow their economies and create jobs. The Meetings, Incentives, Conferences and Exhibitions (MICE) market is growing quickly in Africa, as much as 40% between 2008 and 2018, according to the International Congress and Convention Association (ICCA). The top three destinations are South Africa, Morocco and Rwanda but a Kenyan venue, the Kenyatta International Convention Centre in Nairobi, which used to host 12 events a year, is now hosting more than 20. Air access A key challenge facing African tourism is accessibility. As Jones remarks, “You can build the best hotels and tourism infrastructure in the most beautiful setting, but if travellers cannot get to these places then there is little you have achieved. Connectivity and accessibility are key drivers of tourism.” A great deal can be achieved by good policy. An open-skies agreement between Morocco and the European Union in 2006 led to a 51% increase in seats by 2010. The Western Cape’s Air Access programme has been spectacularly successful in attracting new direct flights to Cape Town. A collaborative programme between city, province, state and private-sector actors, the initiative has led to 15 new routes being established. The creation by the African Union (AU) of the Africa Visa Openness Index acknowledges the importance of relatively free movement to the economies of the continent. HVS, in its Hotel Valuation Index (HVI), notes that countries such as Mozambique, Senegal and Uganda offer visas on arrival. Recent projects Hyatt Hotels & Resorts has six new hotels in development, in Morocco and Tanzania (where it already has properties) and in Algeria, Cameroon and Senegal. The company is further considering investing in Ghana, Uganda, Ivory Coast, Rwanda, Kenya and Mozambique. Eleven new hotels are being launched by Bon Hotels International, which will take the number of hotels managed by the group in Nigeria to 25. Transcorp Hotels is building a 25-storey hotel in Lagos, Nigeria. StayEasy Maputo, a 125-room Tsogo Sun property, will be the group’s third in Mozambique and 11th in Africa outside South Africa. A new 199-suite hotel is being developed close to the Mosi-oa-Tunya National Park and the Zambezi National Park in Zimbabwe. Mbano Manor Hotel is just 4km from Victoria Falls. ■ Online Resources Africa Tourism African Tourism Board: African Travel & Tourism Association: World Travel & Tourism Council: 61 AFRICAN BUSINESS 2020

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