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The Journal of African Business Issue 7

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Welcome to The Journal of African Business, a unique guide to business and investment in Africa. Since the inaugural issue was published as an annual in 2020, the quarterly format has been adopted, giving our team more opportunities to bring to readers up-to-date information and opinions and offer our clients increased exposure at specific times of the year. We cover a broad range of topics, ranging from energy and mining to tourism and skills development. A wide-ranging interview in this issue with a visionary entrepreneur gives a welcome insight into how the private sector can be deployed to solve issues that go to the heart of social problems, in this instance, affordable housing. Related to urban development is the article that lays out the vision of one of the continent’s great cities to create a smarter city. Special Economic Zones have been in Africa since 1970 but there has been a great deal of new thinking about the role that these zones can play in bolstering economic growth and promoting exports. An article explores the chief motivations for the growth of this particular policy intervention and notes that more zones and organisations representing these zones are aiming to work together, not only on a continental level but through the United Nations as well. Executive education can boost the earnings of graduates of Master of Business Administration courses, but can those post-graduate programmes also respond to and equip students with the tools to tackle African challenges? The importance of being properly covered by insurance for extreme weather conditions is the subject of two case studies by the African Risk Capacity Limited, a financial affiliate of the African Risk Capacity Group, a specialised agency of the African Union. And much more... Global African Network is a proudly African company which has been producing region-specific business and investment guides since 2004.


NEWS FROM ALL AROUND AFRICA Recent investments, expansions and milestones. Credit: Volkswagen AG VOLKSWAGEN IS MOVING ON Volkswagen has started assembling cars in Ghana. When Volkswagen took over the responsibilities of the assembly facility in early 2023 from its licensed importer, Universal Motors Limited, the company officially launched its fourth African site, after South Africa, Rwanda and Kenya. The T-Cross model is fully assembled in Ghana. Volkswagen has a presence in 17 countries in Sub-Saharan Africa where it sells passenger and commercial vehicles through licensed importers. Innovation has been the name of the game in Rwanda, where car ownership figures are low. In response to that reality, the company has put its focus into ride-sharing with a difference through Move by Volkswagen. Within that branding, Move Ride offers the conventional app-based service for individuals but Move Share is designed as a form of fleet management for businesses. A company can sign up and have access to a managed fleet of Volkswagen vehicles. In addition, Volkswagen has won a tender to operate at the Kigali International Airport, a lucrative market. Previously, one taxi association had been the only provider of services to and from the airport. Another innovation has seen Volkswagen work with Siemens in introducing electric vehicles to Rwanda through the Move by Volkswagen fleet. In May 2023, Martina Biene, Chairperson and Managing Director of Volkswagen Group South Africa, commented, “Rwanda has been the success story of our growth plans in Sub-Saharan Africa. It is also the innovation hub of our sustainable mobility lighthouse projects on the continent. Our mobility solutions services business, which includes ride hailing and corporate car sharing, broke even last year. Rwanda was also the first country in Sub-Saharan Africa to launch a Volkswagen electric vehicle with the e-Golfs.” DUBAI INTERNATIONAL CHAMBER OPENS FIFTH AFRICAN OFFICE Dubai International Chamber has opened an office in Johannesburg. Five of the chamber’s 21 international offices are in Africa. The Dubai International Chamber is one of the three chambers operating under Dubai Chambers which seeks to promote trade to and from the United Arab Emirates (UAE). The South African office follows the establishment of offices in Kenya, Ethiopia, Mozambique and Ghana. The total value of non-oil trade between South Africa and Dubai achieved year-on-year growth of 11.5% in 2022, reaching AED22.3-billion. The UAE dirham, or AED, is the currency of the UAE and is equivalent to roughly US 27 cents. The UAE is the largest trading country and top host of foreign direct investment (FDI) in the MENA region, while South Africa is the UAE’s top trading partner on the African continent and the second-largest FDI host in Sub-Saharan Africa. The initiative supports Dubai Chambers’ strategic goals of attracting international business and investment to Dubai and driving the global expansion of its members. The new office is set to strengthen the already robust commercial relationship between the UAE and South Africa by identifying and capitalising on new trade and investment opportunities across a range of key sectors including precious stones and metals, agriculture, logistics and mining. Dubai’s strategic location and world-class logistics facilities position make it an attractive destination as a trade hub for African companies with global ambitions. 6

NEWS TATA INTERNATIONAL AFRICA EXPANDS ITS FOOTPRINT At a groundbreaking ceremony at Kibaha near Dar es Salaam in April 2023, the first steps were taken towards the creation of a multi-purpose venue that will stretch over five hectares of land. Facilities will include a shop floor for tractor assembly, a bonded warehouse for commercial vehicles, agricultural and construction equipment, a facility for commercial vehicle body building, pre-delivery inspection areas and a wash bay for the vehicles. The Kibaha project site is in the Kibaha-Pwani Region at Machinjioni Mtaa, Tangini Ward, in the TAMCO Industrial Estate of the National Development Corporation (NDC). Scheduled to be completed by October 2024, the project is expected to create new business opportunities and stimulate economic growth in the region. The event was attended by the High Commissioner of India in Tanzania, Hon Binaya Srikanta Pradhan, and the Director Strategic Projects, NDC, Alfred Mapunda, who were the guests of honour. Len Brand, CEO of Tata International Africa, said at the event: “The groundbreaking ceremony is an example of a long and productive partnership between Tata International Africa and the Tanzanian National Development Corporation in the Kibaha area.” The Tata Group, which first started operating in Africa in 1977 as Tata Zambia, now has a presence in 12 African countries. COCA‐COLA BEVERAGES AFRICA (CCBA) LISTING ON HOLD Plans announced in 2021 by The Coca‐Cola Company to sell a portion of its shareholding in Coca‐Cola Beverages Africa (CCBA) via an initial public offering have been put on hold. “Macroeconomic conditions” were behind the decision to delay the IPO, but the company is still intending to create an Africafocused bottler trading as an independent public company. A press release from the company explained the reason for selling its shares in CCBA as follows: “The decision is in line with The Coca‐Cola Company’s objective of focusing its resources on building consumer-loved brands and innovation.” CCBA is the eighth-largest Coca‐Cola bottling partner in the world by revenue and the largest on the continent. It accounts for over 40% of all Coca‐Cola products sold in Africa by volume. With over 17 000 employees in Africa, CCBA services more than 600 000 customers with many international and local brands. The group was formed in July 2016 after the successful combination of the southern and east Africa bottling operations of the non-alcoholic ready-to-drink beverages businesses of The Coca‐Cola Company, SABMiller plc and Gutsche Family Investments. CCBA shareholders are currently: The Coca‐Cola Company 66.5% and Gutsche Family Investments 33.5%. CCBA operates in 14 countries, including its six key markets of South Africa, Kenya, Ethiopia, Uganda, Mozambique and Namibia, as well as Tanzania, Botswana, Ghana, Zambia, the islands of Comoros and Mayotte, Eswatini and Lesotho. RAIN is The Coca‐Cola Foundation’s flagship African community programme contributing to helping Africa achieve the United Nations’ Sustainable Development Goals on clean water and sanitation access. Managed by the Global Environment & Technology Foundation, RAIN aims to improve the lives of people in Africa through Water, Sanitation and Hygiene (WASH) programmes and other water-based initiatives. Since 2009, RAIN has worked to address specific community needs – deploying a vast network of partners including governments, the private sector and civil society. The global Water Stewardship Strategy is carried out in South Africa by CCBA through a variety of community programmes, pictured, which deliver concrete results and make a practical difference. THE INAUGURAL AUSTRALIA AFRICA BUSINESS SUMMIT IS TO BE HELD IN 2023 Melbourne will host the first Australia Africa Business Summit from 10-12 October 2023. Presented by the Australia Africa Chamber of Commerce (AACC), speakers will include Senator the Hon Don Farrell, Minister for Trade and Tourism, and Wamkele Keabetswe Mene, Secretary General, Africa Continental Free Trade Area. Under the heading “New bridges. Creating connections”, the summit aims to bring Africa to the forefront of the Australian trade and investment focus. The two-day event will take place at the Melbourne Convention and Exhibition Centre where delegates will have access to C-suite decision-makers, senior executives and international trade experts from a wide range of sectors including agribusiness, energy, education, technology, healthcare, mining and mining equipment, technology and services (METS) sector. President of the AACC, Mr Duncan Harris said that by inviting business leaders, governments, policymakers, investors and entrepreneurs from both continents, the summit is designed to facilitate in-depth discussion about opportunities relating to bilateral and multilateral trade to provide practical pathways for others seeking to enter these markets. “The theme of the summit is to build new bridges and create connections between Australia and African government and businesses with significant economic benefits for both regions,” said Mr Harris. Website: Credit: Ayush Jain on Unsplash 7

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