FS
Development
Pedalling progress The African Agenda for Bicycles (AAB) has been formed as a task-force team of civil society organisations and individuals from more than 15 sub-Saharan countries – teaming up with the component manufacturer Shimano, with the aim of reducing the price of new bicycles in Africa. They advocate the slashing of import duties and taxes on bicycle parts, and the setting up of local bicycle assembly plants. They see cycling as a highly desirable socioeconomic tool for economic development. Patrick Kayemba, managing director of the First African Bicycle Information Organisation in Uganda, says that if you have a bicycle in Africa, you have access to income, clean water, social services, different places of work and a means to carry goods. “It is not for leisure, it is not for reducing weight,” he insists. “Here, a bike is life.”
Similar messages are heard from Malawi, Zambia, Ghana, Kenya, Tanzania, Botswana and Zimbabwe. Bicycles have a cost-saving, lifeenhancing and poverty-reducing impact.
81%Ownershipofcarsand motorbikes in Ghana has risen by 81% in the five years since 2006
Business P&G eyes African markets With growth stalling in its traditional markets of the US, Japan and Europe, the giant multinational consumer goods corporation, Procter & Gamble, has identified Africa as one of the company’s prime frontier markets. By 2015, it aims to win 1bn new consumers around the globe, many in developing countries, including the continent of Africa with its 53 countries and a rapidly growing population making it a key part of the most ambitious international expansion plan in the company’s history.
42GW South Africa has about 42GW of power generation installed, for roughly 55m people. That is about the same as for the rest of the continent for 950m people.
Shareholders will want to see the company maintaining its historic worldwide sales growth of about 5% each year. Hundreds of millions of African consumers offer a tantalising prospect and capturing just 10% of the continent’s potential sales would, according to analysts, add nearly $6bn in new sales in five years. Markets such Nigeria, India, South America and Russia already account for 34%, or $27bn a year, of Proctor & Gamble’s annual sales.
DirkHoke,chiefexecutive
(AfricaRegion)Siemens
Others 10%
Natural Resources 15%
Oil & Gas 21%
Mining & Metals
23.5%
nvestment CDC boosts Africa returns The Commonwealth Development Corporation
(CDC) increased returns on its Africa portfolio by 12% last year. In total, CDC’s 2010 returns from its emerging market portfolio totalled $430m, up 30% on 2009. CDC, with investments in 930 businesses across 70 countries, currently has an African portfolio worth $1.4bn. It is currently mooting plans to commit at least 50% of its new investment to the sub-Saharan region.
Top sectors that will offer the greatest potential in the next two years.
CDC’s new capital commitments are likely to be directed into business, as opposed to the fund-of-fund structure, following pressure from the UK government to change its investment model. The firm has also been under severe media criticism for the activities and remuneration of CDC senior executives, but Richard Laing, CDC’s chief executive, says: “CDC has
Snippets Around Africa THISMONTH
Rwanda Thousands of people, including Rwandan President Paul Kagame (right) held the annual Kwita Izina – a naming ceremony for gorillas. This year, 22 baby gorillas were named, including two sets of twins.
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Cameroon Cameroon plans to boost cocoa production by some 300,000 tons a year by 2015, by training farmers to clean farms to ensure parasites are eliminated and old pods that can cause disease disposed of.
Rest of the World
US
23.5%
Benin Pirates attacked a chemical tanker anchored off the port city of Cotonou in June. The International Maritime Bureau said the pirates hijacked the ship and forced its captain to sail the vessel to an unknown location. They then stole property from the ship before escaping. ANGOLA A delegation of Russian parliamentarians, led by the parliament’s speaker, Nadiejda Guerassimova, has visited Angola to strengthen cooperation between the two parliaments. Talks ended with the signing of a cooperation protocol. Eritrea Sunridge Gold says drill results from the Emba Derho copper-zinc-gold deposit have extended its known mineralisation. The 5,000m diamond drill programme has provided new assay data, additional geo-technical data, and metallurgical samples.
South Korea
Russia
Japan
France
13.1%
South Korea
Japan Russia
12.4% 7.2% 4.7%
France
US
African Business | July 2011
