10 months ago

African Business 2022 Q1

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  • Africa
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  • Geoscience
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A unique guide to business and investment in Africa. The third issue of African Business marks a departure for this respected guide to business and investment on the continent. The first two journals were published in 2020 and 2021 but as of 2022, African Business is a quarterly journal. Every edition will carry editorial copy that will cover the following general topics, with a wide range of subjects within the broader economic sector: energy; mining and exploration; trade; finance; technology and tourism. In addition to this, special features on topical matters will be published periodically, along with country profiles.


NEWS FROM ALL AROUND AFRICA Recent investments, expansions and milestones. An artist’s impression of what a hybrid power plant utilising both renewable energy and conventional energy sources might look like. Wärtsilä is one of very few companies that can deliver both types of energy. WÄRTSILÄ REACHES 7GW INSTALLED POWER CAPACITY MILESTONE IN AFRICA The technology group Wärtsilä first began its Africa operations in Tanzania back in 1975. Another first, the KivuWatt power plant in Rwanda, is the first-ever power plant to use the Since then, the group has delivered more than 600 installations, supplied power plants in 46 naturally occurring methane from lake Kivu to generate electricity and reduce the environmental countries, generating 25% of the national electricity supply in over 25 countries. Total installed risks associated with such high concentrations of gas. Today’s power output is 25MW but future capacity now exceeds 7.4GW of which one-third is covered by operation and maintenance planned expansions to this project will increase capacity by an additional 75MW. contracts. Today, Wärtsilä is the undisputed leader in the medium-speed power engine market Wärtsilä’s reciprocating gas engine technology and innovative energy management systems in Africa. This strong track record, built up over decades, has its roots in a dedicated local play an important role in response to Africa’s growing demand for flexible and reliable presence combined with the capability to bring together international expertise to build electricity. Small to medium-size projects can be used to establish microgrids in remote groundbreaking energy solutions. regions. Their flexibility means that they can work hand in hand with renewable energy With more than 650 employees and service hubs located in Kenya, South Africa and Senegal, resources. Output can be ramped up at the same rate as wind or solar output fluctuates. Wärtsilä is proud to have contributed to many industry firsts. These include Africa’s largest One example is the 15MWp hybrid engine-solar PV power plant for the Essakane gold mine gas engine power plant on the Kribi coast of Cameroon with 216MW capacity, as well as in Burkina Faso. The combination of low-cost renewables with flexible engine solutions Africa’s highest installation, the 175MW power plant in Sasolburg, South Africa, sitting at enables energy intensive industries to enter an era of more cost efficient and climate- 1 700m above sea level. friendly operations. CARRICK WEALTH EXPANDS ITS AFRICA FOOTPRINT Carrick Wealth has added two African jurisdictions to its international footprint. Pending final approval of licences, Carrick will be opening offices in Kenya and Zambia in 2022 as well has reengaging its licence in Botswana. Carrick has an established presence in South Africa, Mauritius, Malawi and Zimbabwe. The company intends the new offices to affirm the company’s status as a bold and optimistic pioneer in the African market and plans to open more offices on the African continent. Carrick believes that international financial services providers view customers on the African continent, especially outside of South Africa, as easy sources of revenue who can be charged high premiums for services because their countries lack sophisticated and formalised financial sectors. Swiss banks, especially, charge high fees to African clients wishing to transact and invest, and rarely offer much in the way of wealth management services. By contrast, Carrick wishes to fill the gap in the African market for truly global financial advisers that assist clients to safeguard and grow their wealth. The African continent is the world’s true economic frontier, home to the billionaires of tomorrow. Increasingly, wealthy African clients are demanding better outcomes from their financial services providers. This entails sound and holistic advice about global investments, discretionary investment management, and the wrapping of their portfolios in proper fiduciary support including jurisdiction-specific wills and estates planning and trust administration. Accordingly, clients are looking to safely invest and grow their wealth in international jurisdictions, mitigating the risk of living and earning in Africa. This keeps skilled persons and entrepreneurs at home within risk parameters that are tolerable to them and their families, helping to reverse the skills and capital drain that plagues African economies. In addition to fulfilling those needs for its clients, Carrick is working hard to form partnerships with local banks, insurers, large employers and trust managers to provide complete and holistic financial management services for clients. 4

Professional investors are forecasting strong growth in the value of Africa’s Internet economy with mobile phones central to the expansion. This is revealed in research done for blockchainbased mobile network operator World Mobile. The study of professional investors responsible for around 0-billion assets under management by independent research company PureProfile found one in four (25%) expect the value of Africa’s Internet economy to more than double over the next three years from the current estimated 5-billion. More than half (51%) expect it to be worth more than 0-billion by 2025. Increased use of mobile phones will be central to the growth which will be further enhanced by improved affordability, the study among investors in the US, Germany, the UK, Hong Kong, India, Japan, Nigeria and Switzerland found. INVESTORS EXPECT AFRICAN INTERNET BOOM Around 71% of investors expect affordability of mobile phones in Africa to improve over the next three years – currently it is estimated they account for around 6.8% of monthly incomes on average – while nearly all professional investors (97%) believe the Covid-19 pandemic has accelerated demand for mobile devices. Professional investors questioned believe healthcare is the sector which will see the most benefit from increased connectivity. Around 53% highlighted the opportunities for healthcare ahead of e-commerce on 42% and media and entertainment on 40%. Education was chosen by 33% of professional investors questioned alongside finance which was selected by 34%. NEWS World Mobile is launching its unique hybrid mobile network supported by low-altitude platform balloons in Zanzibar and plans to roll it out throughout the continent. AFRICAN TECH STARTUPS BOOSTED BY ORACLE INVESTMENT Early in 2022, cloud computing company Oracle announced that it would spend R15-million to help tech startups in Africa accelerate their digital initiatives with the latest cloud technologies and business resources. Led by Oracle for Startups, the company will provide extra resources and support to technology startups across Africa over the next two years In addition, these businesses will also have access to hands-on technical support, executive mentoring, go-to-market resources and customer engagements. “At Oracle for Startups, we help new businesses grow from grassroots through scaling. So far, enrolments from South African startups have grown by 91%, while enrolments from new businesses in over 13 other African countries have grown by 39% within the last year – all of which is evidence that Africa is at the forefront of the digital economy,” said Jason Williamson, Vice President, Oracle for Startups. “This R15-million investment will further boost the efforts of tech entrepreneurs in Africa to utilise the latest digital technologies for the success of their startups.” Photo: Supplied A recent report from the IDC, which highlighted the importance of corporations supporting startups to help further spur innovation, reported on Oracle for Startups, “Highly valuable to the startup community. Not only do they provide technology support, but they also provide benefits aligned in business areas such as marketing, market access, business knowledge, and expertise.” This programme follows Oracle’s recent announcement of its first cloud region in Africa to meet the rapidly growing demand for enterprise cloud services on the continent. The Oracle Cloud Johannesburg Region will boost cloud adoption across Africa while helping businesses achieve better performance and drive continuous innovation. The opening marks Oracle’s 37th cloud region worldwide, with plans to have at least 44 cloud regions by the end of 2022, continuing one of the fastest expansions of any major cloud provider. KINGSLEY HOLGATE’S TRANSCONTINENTAL EXPEDITION HELPS FIGHT MALARIA While the world was focusing on fighting Covid-19, malaria made a comeback on the African from malaria, of which 264 864 were children under the age of five. Between the 2020 and 2021 continent. The World Health Organization’s research reveals that the death rate among spray seasons, Goodbye Malaria reached 98% in indoor residual spraying protection coverage, children from malaria in Sub-Saharan Africa has doubled in two years and that a child now exceeding the WHO’s mandate of 85%. dies from malaria every minute on the African continent, compared to every two minutes as “This expedition promises to be one of our most challenging and significantly humanitarian previously reported, before the pandemic. journeys to date, and it wouldn’t be possible without the support we’ve received from Goodbye Malaria and the Kingsley Holgate Foundation are continuing their fight against Goodbye Malaria,” says Kingsley Holgate, South African explorer and humanitarian. “We’re malaria, setting out on a world-first, 30 000km Land Rover Defender transcontinental grateful to have partners like these, as well as the countless volunteers, friends and expedition to take the tools to fight the disease to communities across the African continent communities who have helped our work grow from strength to strength while touching The first ever “Hot Cape to Cold Cape” expedition, departing from Cape Agulhas on the millions of lives over the years.” southern tip of the African continent to Nordkapp in Norway’s Arctic Circle, will cross 30 countries in Africa and Europe over some of the roughest and most demanding terrains. The expedition’s partnership with Goodbye Malaria will allow the team to distribute effective, long-lasting, insecticide-treated mosquito nets to pregnant women and mothers with young children, along with teaching communities how to prevent the disease. It will also support the successful Goodbye Malaria indoor residual spraying programme in Mozambique. As with all Kingsley Holgate expeditions, the principle of ‘using adventure to improve and save lives’ will be a strong focus of this journey which aims to assist 300 000 people with malaria prevention, eye tests and reading glasses, water purification systems, encouraging the conservation and protection of Africa’s wildlife and habitats, nutritional food packs and ECD teaching material to children and teachers and Spekboom-thicket and tree planting to offset the expedition’s carbon footprint. In 2021, Goodbye Malaria ramped up its efforts to realise a malaria-free Africa by spraying 18 districts across southern Mozambique, protecting over two-million people 5

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