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.

Africa: Week in Review - January 17, 2014

This week, more good news can be seen across the African continent. From growth in the banking sector to opportunities in tourism and hospitality, Africa is showing promise across numerous industries. The selected headlines below should provide a good idea of the environment.

1. Big Opportunities for Tourism Investors - As the many economies across Africa continue to grow, the demand for hotel accommodation is increasing as well. Investors are seeing increases in both leisure and business travel, and as the demand grows, the opportunities for both hoteliers and support businesses will continue to rise. If your organization is in the tourism and hospitality business, or in one of the supporting industries, Africa warrants a look as a place to grow.

2. Zimbabwe's Economy to Grow by 4.2% This Year - While softening commodity prices required Zimbabwe to slightly reduce its growth forecasts, the country is still expecting positive economic growth. This is nearly double what the U.S. projects for growth in 2014. Of additional interest is that the Government of Zimbabwe estimates approximately 13 million people now run their own business. Will this growth lead to opportunities for consumer packaged and/or durable goods in the near future?

3. Investment Opportunities in Renewable Energy Throughout Southern Africa - Large scale wind and solar projects valued between 8 to 10 million South African Rand ($700k to $1M USD) are looking for investments. Renewable Energy is growing across the continent and investment opportunities like these show the pace and growth of the sector.

4. Africa Banking Sector Continues Growth Spurt - As the African Banks are working to implement best practices from around the world, both the local and foreign banks are continuing to grow their footprints across the continent. This level of growth within the banking sector shows promise for access to capital and funding projects in both the near and long-term future.

5. Tullow Finds More Oil in Kenya - Tullow doubled its estimates of the crude oil to more than 600 million barrels. As a result of this find, Kenya could become the first East African oil exporter by 2016. This type of find promises further economic growth and the creation of new opportunities for other sectors in Kenya.

6. Africa Sees Increase in Demand for Mobile Apps - As the consumer demand continues to grow for mobile phone applications, businesses are looking at ways to create their own corporate apps. Many of these apps are currently being produced locally and integrate well with the solid mobile hardware that is being manufactured locally as well. Here we are showing that growth in Africa is not limited to the tourism and banking sectors. Demand is growing for high quality mobile apps and locally produced hardware. These are big market segments showing tremendous potential across Africa.

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.

Res Rei Development: Corporate Change Underway

We recently completed an in-depth review of our core business and performance. This analysis of our business revealed that the majority of our engagements focus on specific areas. Consequently, we decided to refocus the company into these areas. Our website will be updated to reflect this new focus.

The company will reorganize into two units: consulting services and supply chain support services. Our consulting expertise includes Security & Risk Management, Global Supply Chain, and Business Development. Our contracting expertise includes Physical & Personnel Security and Global Supply Chain support.

The reorganization builds upon our expertise, past performance and geographic expertise in Africa, South Asia, and Central Asia. Our engagements focused on projects in these regions, and we plan to leverage this expertise more fully for current and future clients.

Africa: More Good News For Those Considering Its Many Markets

If one believes the U.S. mainstream media's current stories originating in Africa, you might think that the entire continent is simply one big war zone. We have not done any quantitative analysis to prove it, but our off the cuff theory is that if you were to receive only the same types of stories from the United States, you might also conclude it is one giant war zone. The point is that there is a lot more good and a lot of opportunities across Africa for savvy businesses looking for new markets. We have provided a few of these stories for you here.

1. Japan's PM to Pledge $14B to Africa - During his week long visit to Africa, PM Shinzo Abe is expected to pledge $14 billion in various aid and trade deals. Types of funding include a geo-thermal plant in Ethiopia, investments into Mozambique's recently discovered oil and gas discoveries, and some undisclosed projects in Cote d'Ivoire. Last Year PM Abe pledged $32B in aid, as he believes Africa to be the source of global economic growth in the coming years. That is a big statement - the source of global economic growth in the coming year.

2. Sub-Saharan Business Titans Take on the World - While foreign and even South African companies drag their feet at entering sub-Saharan markets, local businesses have thrived. Some have grown from humble beginnings into large conglomerates. These businesses were able to grow because many competitors felt the markets were and still are too risky. Take a look at the picture that shows the number and size of these local conglomerates and really reconsider the stigma about the risks. There are still plenty of opportunities for those willing to get beyond the stereotypes.

3. Water Companies Investing in Africa - Danish companies Grundfos and Kamstrup, consider to be the most sophisticated water technology companies in the world, continue to invest and grow in what they believe to be one of the faster growing regions on the planet - Africa. Both companies state their are committed to being in Africa and investing heavily. These investments hold the potential to further increase the infrastructure stability across the continent. Overall, these two companies are showcasing the potential for companies that are willing to go local in Africa.

4. Emerging Middle Class Spurs Retail Growth in Ghana - The development of shopping malls will begin to take center stage in Ghana as retailers see a boon in the middle class. Demand has created an increase in the retail markets with the expectation that demand for modern retail space will double over the next two years. Presently, South African retailers are expected to see the largest growth as a result. Growing retail demand should open up additional opportunities for companies to find new markets or increase their market reach.

5. African Oil Servicing Industry to See Over $200B Increase in Spending - For companies that provide service to oil rigs, ships, and other equipment, spending in these areas is expected to rise by over $200B through 2018. Needless to say, that is a big market opportunity in Africa for the numerous companies in this industry.

6. 2013 Saw Dramatic Decrease in Somali Pirate Attacks - Recent anti-piracy measures have been responsible for the number of attacks to plummet along one of Africa's most vital sea lanes. Providing security measures do not lax, this will open up even bigger opportunities for both goods and services providers.

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. If you need a hand, Contact Us to see how we can help your organization evaluate these opportunities.

Africa: This Week's Growth & Development Insights

Take a look at some of the interesting movement in different areas of Africa that showcase the potential for growth in the budding and swooning economies across the continent.

1. A $145M Africa Venture Capital Fund seeks solid companies to invest $20 to $30 million within the communication infrastructure markets. They are interested in companies within Kenya, the Democratic Republic of the Congo (DRC, Rwanda, South Sudan, and others. This could present an opportunity for your organization to step into the market or grow further if this is your organization's market-sphere. For those in different markets, the coming improvements to the communication infrastructure could signify a solid time to make additional investments or to seriously consider the viability of these markets.

2. A power super-grid could be on the way for Sub-Saharan Africa. The Eskom CEO called upon Sub-Saharan African countries to work together in the establishment of a power super-grid that would boost the electricity supply to the region; more good news for apprehensive companies considering the risk-reward tradeoff for the area.

3. Ethiopia aims to create new generation of entrepreneurs through the state-run entrepreneur training program called the Entrepreneurship Development Programme (EDP). The Ethiopian government hopes this UN sponsored initiative will boost the economy. The success of the program further highlights the growing economic position of many of the countries in East Africa and the increasing desire to foster business growth around the continent.

4. Tanzania opens access to capital for start-ups through a new Dar es Salaam stock exchange platform designed to introduce smaller businesses to potential investors. The hope is that this new program will cater to start-ups and other SME's that get left behind in the funding world by larger institutional investors, such as commercial banks. The increase in access to funding could result in further economic booms in an area of Africa that has been experiencing growing amounts of consumer disposable income.

5. Ethiopia's experiencing a renewable energy revolution. Ethiopia has been leading Africa in the use of renewable energy, and on November 30, 2013, the government of Ethiopia announced new deals to increase the amount of electricity generated from renewable sources. This is yet another area where countries in Africa are making great strides that still go unnoticed by foreign businesses.

6. IBM opened its first African technology research laboratory in Kenya back in November 2013. Take a look inside. This is another great example of forward looking companies that see the market potential on the continent.

All in all, these are only a small snippet of the strides being made all around Africa. Numerous opportunities exist for companies that make the choice to explore them. Yes, the main stream media can make it sound like a scary place, but your organization does not have to do it alone. Contact Us if you want to see how we can help your organization seize the opportunity.