Africa Weekly - February 28, 2014

As the week comes to a close, we bring you our latest Africa Weekly with new opportunities and positive developments from around the African continent.

Before we get into it, we promised you the ability to sign up for the Africa Weekly via email. With our website revamp completed, we now have this option up and running. Simply visit Res Rei’s website and sign up using the form at the bottom of the page. Alternatively, you can visit our Africa Weekly page directly to sign up. For the time being we will continue to provide the Africa Weekly via our blog as well.

1. Efficient Tax and VAT Systems on the Way for Africa - The Investment Climate Facility for Africa (ICF) has been working with different countries across Africa to reduce the number of days to process imports and exports through customs. Additionally, they have been successfully reducing costs associated with customs clearance in countries like Kenya. These activities will help open up trade further, while expediting the import and export of goods.

2. Hotel Sector Set to Create 320,000 New Jobs in Africa - As the regional economies continue to grow and opportunities for both business and tourism increase, hotels have been popping up. Last week, we discussed Hilton’s plans to be in every major city of Africa within the next five to ten years, which further supports this need.

3. Nissan Eyes Big Play in Africa - Recently, we brought you news about Ford targeting Africa for expansion. Now, this week Nissan has announced plans to leverage its business model in India using the Datsun brand to make a major play into African markets. As more auto manufacturers establish plants on the continent, we will likely see price reductions in vehicles and a swoon of new jobs, which will help further raise economic prospects across the continent.

4. Shoprite Looks to Africa for Growth - South Africa’s largest grocer looks to sub-Saharan Africa for growth on the back of a continuing slump in South Africa’s economy. Shoprite has experienced a 28% growth in sales at its non-South African stores further highlighting the opportunities for Shoprite outside of South Africa.

5. Energy a Major Business Opportunity in Rwanda, Says U.S. Official - According to the President of the Overseas Private Investment Corporation, a US State Department entity tasked with helping US businesses invest overseas, the shortage of electricity in Rwanda is the number one challenge and number one opportunity for investors. She goes on to state that the Government of Rwanda is interested in increasing their electricity production using renewable energy sources, opening up opportunities for businesses within this sector. Rwanda is not the only country in Africa looking to increase power production utilizing more renewable energy sources.

6. Kenya: Ecobank Announces Plans to Set Up an Investment Banking Unit By June - The West-African medium sized bank intends to have their investment banking unit setup by June to focus on infrastructural development activities in Kenya. They are specifically targeting energy, agribusiness, manufacturing, and other sectors.

We continue to see opportunities in energy, manufacturing, and agribusiness pop up around the continent. For those business leaders within these markets, Africa presents a myriad of possibilities. Interested, but not sure how to get started? Contact Us to see how we can help your organization evaluate these opportunities and help you expand into the continent.

From everyone at Res Rei, enjoy your weekend, and remember to start your next week off thinking about how you can grow your company further.

Res Rei

Connect. Expand.

www.resrei.org

Africa Weekly - February 21, 2014

Welcome back to this week's Africa Weekly, where we bring you different stories from around Africa about the positive changes for business and social enterprises across the continent. This week takes a look at returning innovators, where money is being invested, and other signals of opportunities around Africa.

1. Uganda Attracting Significant Funds as Investors look Outside Asia for Growth - With investors that target frontier markets searching outside of Asia for new opportunities, Africa finds itself attracting significant funds in many sectors. In specific, Uganda's recent business and investment reforms have created an environment that is very attractive for those looking to invest in growing economies.

2. Malawi has Large-Scale Agricultural Opportunities across Eight Sectors - With access to solid transportation networks for regional and international economies, Malawi presents excellent opportunities for agribusinesses involved in cotton, tea, macadamia nuts, Arabica coffee, soya beans, cut flowers and fruit and sesame processing.

3. IBM Tech Innovator Returns to Africa - After twenty years of living abroad, Uyi Stewart returns to Africa to run the IBM research lab in Nairobi, Kenya. He is calling on other innovators to return to Africa, reduce the brain drain, and work to create innovative solutions to the continent's problems.

4. Hilton & Legacy Hotels Eye sub-Saharan Africa - Marc Schumacher, the new general manager of the Hilton International in Cape Town stated that Hilton planned to expand from its existing 11 country portfolio to be in every major city in Africa within the next 5 to 10 years. He is quoted as saying “We believe in Africa. The growth in its prosperity is fantastic.” Legacy Hotels, a Hilton partner is also planning to grow its 16 hotel portfolio, recently adding a hotel in Gabon.

5. Cameroon Seeks to Create First Commodities Exchange in French-Speaking Africa - The Cameroon Minister of Trade and the International Cocoa Organisation announced a feasibility study to explore the creation of French-Speaking Africa's first agricultural commodities exchange. The hope is to improve the sales platform for cocoa in the region.

6. China's Economic Slump Unlikely to Stem sub-Saharan Africa's 6% Growth - Good news for those concerned that sub-Saharan Africa's growth depended on the Chinese Economy. The African Development Bank stated that sub-Saharan Africa will likely achieve more than 6% growth this year in spite of slow downs in China's economy; however, their outlook for North Africa is as positive. Thanks to economic diversification over the last few years, the slump in commodity prices, thanks to the Chinese slow-down, the various economies will still be able to grow. According to the African Development Bank, commodities only account for about one-third of what is going on in sub-Saharan Africa these days. Overall, this is good news going forward.

As you can see, even with the slow downs in the Chinese economy, growth is expected to continue across sub-Saharan Africa. If your organization wants to find new growth markets, consider Africa and its many opportunities. Need a hand setting your strategy, learning how to manage the associated risks, or ensuring security is in place? Contact Us to see how we can help your organization evaluate these opportunities and help you expand into the continent.

From everyone at Res Rei, enjoy your weekends and start your next week off thinking about how you can grow your company further.

Res Rei

Connect. Expand.

www.resrei.org

Africa Weekly: The Valentine's Day 2014 Edition

Welcome back to our latest Africa Weekly on Valentine's Day. This week we see more opportunity growing across the continent with McDonald's targeting Africa as their future growth strategy.

Before we get into it, earlier this week, a discussion broke out with us about the ongoing violence in different parts of the region and what our thoughts are about what this means for business. We feel a quick comment about the question is appropriate here. In a future piece, we will delve into it in more detail.

We do not deny that many countries in Africa have a sordid past, and that a few continue to struggle with these problems. In that light, we will draw a quick comparison between many of the countries in Africa and the United States. In its foundation, the United States had to shed an imperial power to gain its independence. Likewise, many of the countries in Africa have gained independence from an imperial power, and it only occurred late in the 20th century. After gaining its independence, the United States underwent internal conflict and a civil war, which is something we are seeing or have seen relatively recently in different African nations. Even after both of these events, the United States did not immediately emerge as a world super power in either economics or influence. We had to undergo a period of rebuilding and an industrial revolution prior to these events occurring. In both cases, our own growing pains were not without bloodshed and sordid acts as we moved forward and figured out who we were and who we wanted to be as a nation.

The difference here is that United States went through the bloodiest parts of its history as a growing nation long enough ago that it is not prevalent in our minds; however, with today's ever streaming media, we see many of these events in real time within many of the growing African nations. By no means are we condoning the violence, but we are saying that in the context of things, these countries are making a journey, not unlike many of our own in the Western Hemisphere.

As we advocate businesses look to Africa for future growth opportunities, we are not advising anyone to consider war torn countries as their next blue ocean. Yes, there are companies that make medical or other aid products that could help many of those affected by these events, but for the vast majority of businesses, these countries provide far more risk than reward. What we do advise is that Africa is home to a host of emerging economies growing at rates that are double or near double that of most of the Western Economies, and as these economies transition from third world to second world economies, like the United States did, there will be opportunities for new products and services. Likewise, as these economies transition from second world to first world economies, the opportunities will continue to grow. Lastly, we advise entering these stabilizing, transitioning economies as a strategic move that will allow access to some of the more unstable countries as they emerge from their internal strife and look to transition into second and first world economies.

With that, let's get into this week's positive happenings around the continent.

1. McDonald's Targets Africa for Expansion - This week McDonald's CEO, Don Thompson, announced that the corporation is exploring the opportunities that Africa has to offer, and clearly Nigeria is a large country with opportunity. Citing the economic growth of sub-Saharan Africa, which is projected to be double that of the rest of the world's, as part of its rationale, McDonald's will be working to expand it's small footprint in North Africa, Mauritius, and South Africa into parts of sub-Saharan Africa.

2. Africa Urged to Prioritize Agricultural Transformation - During a meeting in Addis Ababa this week, it was stressed that for Africa to sustain agricultural growth a successful agricultural transformation is necessary. "Agriculture transformation should still be high on the agenda and efforts should be exerted to include production and productivity to provide livelihood, raise income and create jobs and wealth.” For innovative agricultural companies, opportunities to help shape this transformation abound and are likely to increase in both the near and long-term.

3. Zimbabwe Given $23M USD Infrastructure Grant from China - According to China's Finance and Economic Development Minister, Patrick Chinamasa, these funds are earmarked for clinics, primary and secondary schools in resettled areas, and other items like meteorological equipment. This is another installment in China's help towards reaching the country's 5 year economic goal of achieving 7% growth.

4. Africa Focus of Future Development for Germany - German Development Minister, Gerd Muller, stated this week that for Germany, Africa is the land of opportunities. He stated that the continent will remain a development focus for the country that he would like to see more German businesses get involved. To this end, he also announced that Germany is working with Ethiopia to create a bamboo processing industry in the country. It is a public-private partnership working towards beginning export of bamboo from Ethiopia. He was quoted as saying "For us, Africa is the continent of opportunities, and we have to get the point across in Germany and Europe that this continent, which is 100 times bigger than Germany, is enormously dynamic."

5. Ford creates Middle East & Africa Business Unit - In an effort to stay ahead of the competition, Ford announced that it has created a Middle East & Africa Business Unit. Ford's CFO, Bob Shanks, said “We really want to get in on the earlier stages of that development compared to some of the other regions in the world.”

6. Africa - Where the Next Big Business Opportunities Lie, but Improved Healthcare still Needed - Many foreign investors are reporting that their ROI from Africa is higher than any other emerging region. With that, Africa still sees challenges in terms of health, which is another sector where transformation is needed. Helping to create solutions for healthcare can help bolster continued economic growth. Opportunities in healthcare present both social and business possibilities for companies to create long-term value.

As always, these stories represent only a small portion of the progress being made across the continent daily. We hope they help to illuminate the good going on across Africa. If your organization wants to blaze a new trail, consider Africa and its many opportunities. Need a hand setting your strategy or learning how to manage the associated risks? Contact Us to see how we can help your organization evaluate these opportunities and create your entrance strategy.

From everyone at Res Rei, we hope you have a great Valentine's Day. Enjoy your weekend and start your next week off thinking about how you can grow your company further.

www.resrei.org

Screw Corporate News as Usual

As part of our refocus, we decided to take a more unconventional approach to the updated news section of our website.

You will not find any press releases or boring, text-heavy self-promotion masking as news. I mean, does anyone really read those anymore?

Instead, you will find tidbits of information about what’s going on around Res Rei, what we’re up to and what we’re thinking, because it’s probably not what most people would expect from a consulting company.

We hope to bring engaging information to you, not the bore you to tears, when will they get to the point company news floating around the internet. If we end up with the latter, we hope you will tell us so that we can revise it before too many people become exposed.

If you need to, use the comment box at the bottom, drop us a line using the contact tab at the bottom of every page on our website, or call us and suggest how we can improve the piece.

Africa Weekly News & Opportunities February 7, 2014

Welcome back to our latest Africa Weekly. This week takes a look at some upcoming events, countries working to improve economic inclusiveness as well as some infrastructure improvements that are on the way.

1. The IMF and Mozambique to Host the Africa Rising Conference on Economic Successes and Challenges in Sub-Saharan Africa - The conference will take a look at Sub-Saharan Africa's continuing strong economic performance and some of the continuing regional challenges. We fully expect to hear more about the agricultural needs of the region and the desire of many countries to see increased investments int this sector.

2. Kenya Replacing Traffic Police with CCTV Cameras in Nairobi - Kenya continues to tackle traffic congestion and security concerns in Nairobi by utilizing CCTV's to help monitor and control traffic, while freeing up the traffic police for other duties. This program holds potential for improving both security and logistics issues in the city.

3. Guinea to receive €140M for infrastructure and other development projects - The European Commission is providing Guinea with the money to help promote good governance, protect human rights, and improve the countries mobility and road infrastructure. With the countries recent peaceful elections, The potential high for Guinea to start down the economic growth path, which will bring more opportunities into the region.

4. Lesotho Taking Steps to Strengthen Inclusive Growth - Lesotho has seen economic growth average just over 5% for the last two years, in spite of some agricultural setbacks and internal policy problems. IN a effort to continue that growth pattern, Lesotho, with the agreement of the IMF, see it as the time to strike a balance between policies for economic stability and inclusive growth. With different strategies in mind, the country hopes to increase investment spending. As the policies shape up, Lesotho could soon be offering many opportunities for growth and investment.

5. Online Payment Solutions Coming to the Hospitality Industry in East & Central Africa - 3g Direct Pay, one of the region's leading online payment providers, is partnering with Slujan Events to offer online payment options for the 2nd Kenya Hospitality Trade Fair & Hotel Summit East Africa. As popularity with the payment solution rises, one can anticipate more travel related businesses accepting online payments in the region after the Summit. If it takes hold, this could drastically improve the ease of organizing travel arrangements into the regions while abroad.

6. The African Construction Industry Growing Rapidly - Urbanization, strong economic growth, and a growing middle class is creating waves in the African construction industry, causing projects to get larger and more complex. With the increased competition in financing these projects, it is requiring project owners to seek out alternatives to the traditional financing options. It is also creating the need for more cross collaboration, which is creating opportunities for both local and foreign firms in this growing space.

As always, these stories represent only a small portion of the progress being made across the continent daily. We hope they help to illuminate the good going on across Africa. If your organization wants to blaze a new trail, consider Africa and its many opportunities. Need a hand setting your strategy or learning how to manage the associated risks? Contact Us to see how we can help your organization evaluate these opportunities and create your entrance strategy.

From everyone at Res Rei, enjoy your weekends and start your next week off thinking about how you can grow your company further.

www.resrei.org

Africa: Weekly News and Opportunities - January 31, 2014

Coming out of Davos, a lot of interesting stories and opportunities developed this week. We see sanctions being lifted, possibilities of cashless economies and investments into potentially high yield industries surfacing across the continent.

1. Could Zimbabwe become Africa's First Cashless Economy? - This week, Econet Wireless, the country's largest mobile telephone provider unveiled plans to bring a mobile-money solution to the currency-troubled country. Called EcoCash, the telecom provider, hopes to take the Safaricom M-PESA styled mobile-money solution one step further and completely replace cash as the primary form of payment system. The implications of a system that includes the cash-trapped, bankless consumer reach far and wide for the greater economy.

2. Dutch Firm Wins Advisory Contract on Tanzania's Rapid Transit System - Tanzania's Dar Es Salaam Rapid Transit (DART) system is due to begin operations at the end of this year. The DART is hoped to reduce the traffic congestion that has troubled the country's capital for some time. The Dutch firm, The Rebel Group, won a $1 million operations management advisory contract. Improvement to the transportation system in Dar Es Salaam is likely to foster improvements in other business and governmental sectors across the city.

3. In Ethiopia, Government Industry Zones Attract Major Foreign Companies - Ethiopia has 20 major Multi-National Corporations committed to building factories and other manufacturing operations in its first government industrial zone on the outskirts of Addis Ababa. Ethiopia plans more of these industrial zones around the country and are offering different incentives for companies looking to move operations there.

4. Rwanda Receives $240,000 for Milk Logistics - The Land o Lakes International Development, with donated funds from USAID, provided Rwanda $240,000 to boost food security and improve the income of Rwanda' small dairy farmers. The granted funds have been earmarked for infrastructure improvements across the country's milk supply chain.

5. African Union Lifts Madagascar's Suspension - After the installment of a democratically elected leader, the African Union ended its suspension of Madagascar that has been in effect since the 2009 coup. As political stability continues to grow across the continent, the opportunities will continue to grow as political stability ushers in economic stability and growth.

6. Giant Telescope Array Could Usher in Astronomy & Economic Development - The world's largest radio observatory is being built in Africa across eight different countries. Experts believe that this array will lead to an astronomy renaissance across Africa, and that the ensuing interest and tourism will create extensive economic development across the continent. One thing is certain. The array itself will bring opportunities in everything from hospitality to restaurants to education, and other supporting industries as the volume of travel to the array's different locations increases.

As always, these stories represent only a small portion of the progress being made across the continent daily. We hope they help to illuminate the good going on across Africa. If your organization wants to blaze a new trail, consider Africa and its many opportunities. Need a hand setting your strategy or learning how to manage the associated risks? Contact Us to see how we can help your organization evaluate these opportunities and create your entrance strategy.

Lastly, in the previous week's update we mentioned the creation of a weekly newsletter. We are still working through the design elements, and we endeavor to have this online within the next couple of weeks so that you are able to simply sign up and receive the updates by mail, if you so wish.

From everyone at Res Rei, enjoy your weekends and start your next week off thinking about how you can grow your company further.

www.resrei.org

Africa: The Weekly Roundup - January 25, 2014

Davos occurred this week, and many areas of improvement across the continent were discussed. In this week's selection of stories, renewable energy, market potential, agribusiness and global investors are in the headlines. Everyday the opportunities across Africa are growing.

Also, because of the growing popularity of these weekly roundups, we are designing an email newsletter that will provide these stories weekly. This will allow you to sign up and receive the stories on a weekly basis. We will also continue to offer them here.

1. Africa Accelerating Investments for an Agribusiness Revolution - During the AGCO Africa Summit in Berlin, the focus was on technology and the application of science to overcome agricultural challenges across the continent. To that end, investments in the sector are accelerating, and AGCO believes that Africa lies at the heart of a new agribusiness revolution.

2. Mauritius Offering Business Facilitation Services - For businesses looking for a soft entry onto the African continent, Mauritius is offering incentives and facilitation services to utilize the country as a jumping off point. Various benefits and entrance options are available.

3. Africa Remains Attractive For Global Investors - In spite of the labor strife, sub-Saharan Africa is still ticking boxes for global investors as a go to area. "The largesse from coming investment in infrastructure projects alone is enough to make even the most conservative asset manager choke on his or her morning coffee."

4. Africa Rewards, Risks Offer Huge Business Opportunities - Conflict, famine and political instability have been receding across Africa, while economic activity has surged. For those businesses willing to tackle the remaining challenges, the rewards can be very large.

5. Africa to Build Largest Solar Plant in the Western Region - In another boost to the continent's clean, renewable energy efforts, a 155MW Peak solar plant is to be constructed in Ghana. The recent passage of the country's renewable energy law has paved the way for this and many more similar projects.

6. The Government of Kenya to Expand Water Services in Nairobi - The GoK has taken out an 11 Billion Kenyan Schilling loan to increase the water services offered throughout the city of Nairobi

These stories are only a small representation of the progress being made across the continent daily. We hope they help to illuminate the good going on across the continent. If your organization wants to blaze a new trail, consider Africa. Need a hand setting your strategy? Contact Us to see how we can help your organization evaluate these opportunities and create your entrance strategy.