Africa Business Intelligence issue 42 June Jul 1 PDF

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2018

Africa Business Intelligence Know The Latest Each Month - Be Ahead Of The Game in 2018

Issue 42

Dr. Harnet Bokrezion www.africajumpstart.com

This is Africa Business Intelligence ! Hi there, Thanks for downloading Africa Business Intelligence, which I will send you free of charge each month covering the latest market opportunities of the previous month and showing you what they mean for your business. The Internet has now become a reliable source for business and industry news on Africa, but much of it are news reports on large-scale investments or projects making it difficult to apply the information to your own venture. When I started to build my Africa business it was hard to get information that was relevant to start or grow my own business. I decided to fill that gap. As you may have read on my website, my main objective building Africa Business Jumpstart is to assist and guide those who want to start businesses or invest in Africa, and part of that is how to minimize obstacles and identify upward trending opportunities. I want answer your 'how to' - questions. In my view some of the obstacles many of us face doing business in Africa is a lack of perspective, relevant information, guidance, and time! So here you get insights into rare opportunities, neatly packaged! My monthly Africa Business Intelligence will provide you with a compact overview of the latest market developments that happened over the last few weeks in Africa and that are relevant to entrepreneurs and investors. You are then in a position to turn information into knowledge that has significance in your decision making processes. Reading these intelligence summaries on a monthly basis will also enable you to get a better understanding of the dynamics on the ground in a way that is relevant to your own undertakings, so you can make informed decisions faster and more confidently. But be aware it's only ONE of the tools I offer to inform and support you on your journey to success in Africa. Watch out for all the other unique opportunities and guidance I provide, so you can finally make real PROGRESS! Here is Africa Business Intelligence June-July 2018 issue summarizing key insights of the last month. I hope you will find it useful! Warm regards, Dr. Harnet

Tropical African island seeks your investment

The Seychelles Investment Board is actively promoting investments in activities within those sectors.

We often think Nigeria, Kenya, Zambia when we looking to do business or invest in Africa. But one of the best places for ‘ease of doing business’ in Africa is the tropical island of the Seychelles. Why not combine a paradise with your business success?

The chief executive said, "Opportunities also abound in peripheral activities within the tourism industry such as adventure tourism, medical tourism and entertainment. We need to engage holidaymakers to spend more rather than just staying in a hotel."

Foreign Direct Investment in Seychelles for the January to March period topped $35 million, an increase of 26 percent compared to the same period last year, said a top official of the Investment Board. The chief executive of the Seychelles Investment Board, Cindy Vidot, said this result shows confidence in a small but growing economy whereby investors are showing more willingness to invest in Seychelles. The increase is the highest performance for the first three months since 2016, following the introduction of a moratorium on large hotel developments in Seychelles. The moratorium on large hotel projects except those already approved by the government was announced by Seychelles' former President James Michel during the Independence Day celebrations on June 29, 2015. However, Vidot said that there are several investment opportunities where investors can put their money ranging from the traditional sectors such as tourism and fisheries to technology and financial services.

Earlier this year, the Board completed an exercise whereby it mapped out all sectors needing foreign and local investment. These investment opportunities include application development, zip lining, scuba diving, eco hotels, ice plants, fish processing to name a few. The Board's deputy chief, Lenny Gabriel, told SNA that "consultations have been made with different departments and a list of business opportunities has been shortlisted for promotion. Such business activities are readily in demand and open for investment." Seychelles is ranked 95th among 190 economies in the ease of doing business, according to the latest World Bank annual ratings, and Vidot said that the Board is conducting market research to identify barriers to investments in the island nation. The research will cover access to finance, access to information, land, infrastructure development, relook at procedures, investment policies amongst others indices said Vidot. She said Seychelles, an archipelago in the western Indian Ocean, is a very safe place to invest. She added that the island nation "has a stable political environment, a modern tax regime, a high environmental standard, a good climate, no foreign exchange restrictions, and is a world-class financial centre."

[source: allafrica.com]

Relevance for you business: Opportunity exists across the African continent, but Africa’s islands have some of the best business & investment regulations and are often overlooked. Business opportunities can be easily identified and operating in a small island makes navigation for newcomers extremely easy.

Start a Social Media Agency for businesses in Africa Social media plays a big role in Africa and the utilization of various platforms is still growing fast. More and more businesses are depending on social media to reach potential customers and clients – but there is a lack of knowledge of how to use social media and advertising properly for monetization. This is where you come in!

information, ideas, career, business etc. via virtual communities and networks. Some social media web and apps include Facebook, Instagram, Twitter, LinkedIn, Pinterest, WhatsApp etc. Every one of these social media web and apps are unique and applicable in their own ways to small businesses. There are billions of people on social media web and apps every day and small businesses can take advantage of this. Facebook and Instagram currently have an approximately, combined 30million active users in Nigeria. Let's establish that this is a free platform with the potential of 30million people to showcase your business to.

Social media has become an imperative business tool for small businesses in Nigeria. Starting up a small business usually means limitation to working capital. As such, there would be none or very limited funds for a physical location, marketing and adverts, analytic tools and possibly an interactive website. All these can be coined by optimizing social media platforms. They are websites and applications that facilitate the creation and sharing of

With a minimal $10 budget, your advert could typically reach hundreds of people. Also, social media users typically share posts on products/services and generally, things they love to friends and followers on these social media platforms. This could create more visibility for a business. In a small business, funds may be limited to create websites to display products and services or even having a physical location. Lots of businesses have benefitted from using social media as a marketplace, showcasing products or services directly

to potential customers and easily having conversations and negotiations with these potential customers using only social media tools.

[Source: The Guardian Nigeria]

Relevance for your business:

This is an amazing time for you to start a digital marketing company for small and medium sized businesses based on the continent. If you can help African companies to make more sales online or via an app, you will have a business that is set to become very profitable.

New investment trend for you: Put your money into ‘climatesmart’ agriculture The wealthiest investors in Africa have turned their interest towards agricultural investments – it will be Africa’s next big thing. If you are interested in investing into African agriculture, you can be ahead of the game when you actually choose agricultural investments that are ‘climate smart’

When Ugandan farmer Eveline Aryemo first tried the NABE 15 improved bean variety, she did not know that this seed contained superior abilities to not only tolerate drought conditions and diseases common in her farm but also triple yields.

The seed was promoted by the International Center for Tropical Agriculture (CIAT) and Uganda’s National Agricultural Research Organisation (NARO) together with partners. A truly “climate -smart” technology, the drought tolerant variety has helped Eveline meet market demands and to farm in challenging climate conditions. NABE15 cooks faster than most of the other commercial varieties and thus requires less firewood, reducing greenhouse gas emissions and saves time for women to engage in other activities. When grown in droughtstressed environments it is more productive compared to other varieties, which assures women farmers of a surplus for sale and hence income for home expenses such as purchase of other food items to diversify the family meals. Farmers in Africa - big and small - know they need to get climate-smart in this way. Hunger still stalks the continent, and climate change is a key culprit for low productivity. Africa’s ability to feed itself hinges on investment in adapting to these conditions, and minimizing agriculture’s own contribution to climate change, as Eveline has done.

A new climate for business opportunities In addition to on-farm interventions like Eveline’s super bean, options exist to make entire food systems more climatesmart and profitable at the same time. Take the dairy industry, for example. As temperatures rise, quality sources of animal feed decline. But scientists have found that improved feed, such as the drought-tolerant brachiaria grass have an additional benefit of boosting milk production by up to 40 per cent. When animals are more productive, the carbon emissions associated with their

production of a unit of meat and milk go down. The business of producing brachiaria grass in South America is worth US$ 600 million. We are now working towards bringing commercial production of the grass to Africa, starting in Zambia. This will not only provide a huge economic opportunity, but also contribute to food security and climate change targets. The provision of services such as weather information and insurance programs are also being shown to pay off. [Source: allafrica.com]

Relevance for your business: 

If you are interested in investing in African agriculture then the investment in climate-smart production is a powerful and sustainable strategy for you and Africa!

Smart timing: Start a tourismrelated project in Zimbabwe now. Following the change of government and policy in Zimbabwe, the country's hotels experience a rare and sudden increase in business travelers & tourists. The numbers are set to grow even higher after the elections. Starting a tourist related project, product, service, or investment at this time is a great strategy for success.

Occupancy rates for Zimbabwean hotels have risen significantly since beginning of the year on the back of growing confidence in Zimbabwe after President Mnangagwa was sworn into office in November last year. This comes amid growing number of foreign investors stampeding for a "front row seat" to explore opportunities in various sectors of Zimbabwe's economy, encouraged by President Mnangagwa's "Zimbabwe is open for business" mantra since his administration took over the reins late last year. President Mnangagwa told delegates gathered for the official opening of Davipel's new snacks plant in Ruwa last week that most domestic hotels were recording their highest occupancy levels in a long period, since the inception of the new dispensation. "Owing to our '(Zimbabwe) open for business' mantra our hotels are filled to

capacity due to the growing number of investors who are lining up to do business with us. "Since the inception of the new dispensation, investors are visiting our beautiful country every day. Be it in Harare, Victoria Falls or Bulawayo investors continue to come in the country," said President Mnangagwa. There certainly has been significant change in sentiment and indeed, confidence in the tourism sector has improved significantly, which has also transcended to other sectors of the economy, notably mining. The growth in investor interest has already seen the country recording more than $16 billion in foreign direct investment commitments in just about six months of the new dispensation. A number of hotel operations that had closed are re-opening, while several hotels and lodges are sprucing up their products or planning to renew and even expand. One of the factors that is driving current investors' confidence under the new administration is the promise and commitment by President Mnangagwa that Zimbabwe will hold free, fair and credible polls, which observers from all parts of the globe are free to monitor. President Mnangagwa's assertion tallies with Hospitality Association of Zimbabwe vice-president Clive Chinwada's recent remarks that the tourism industry was on a growth path following years of stagnation. "We can, as an industry, state with some degree of confidence that occupancies and tourist arrivals, especially in Victoria Falls and the main cities like Harare and Bulawayo, have been on a growth path.

"We, however, have also to state that planning horizons for international tourists are usually one year or more ahead so the full benefits of the new dispensation and any (political/economic) reforms are yet to be felt. "We reckon that if the political environment remains positive, 2019 could turn out to be an even better year for the tourism and hospitality industry. By then, Zimbabwe will be featuring more prominently as a destination on the packages offered by international buyers," he said. He said the current state of affairs was a cause for delight to the industry and this needed to be maintained after elections, which are scheduled for July 30, 2018. Removal of police roadblocks, one of the biggest factors that frustrated travellers and negatively impacted on the Zimbabwe brand, on which every tourism industry rides, has been a major boost for the sector. Self-drive tourism has also benefited immensely as police roadblocks were synonymous with harassment of travellers, both local and foreign. One of Zimbabwe's leading hotels, Meikles, has enjoyed significant growth in bookings by visitors, including a wide range of incoming business travellers. The hotel company reported that occupancy levels increased by 5 percent compared to the same period last year. Several other domestic hotels are reportedly recording a positive increase and significant improvements are expected to be recorded after elections.

Relevance for your business: The factor 'right timing' is a crucial factor for any successful business. Right now, tourism and investments are growing fast in Zimbabwe following improved governance.

Provide cyber security training, consultancy, and solutions. From South Africa to Nigeria to Kenya, the story is the same: A repeated and desperate call for action to save businesses, government, and individuals from cyber attacks.

number of cybercrime victims anywhere in the world. It also suffers more attacks than any other African country. South African consumers are losing about R2.2 billion a year to cyber attacks. Such is the extent of the problem that organisations like the shortterm loan provider Wonga are taking steps to try and protect their customers, with the lender producing its own guide to help its customers identify which messages are genuine and which are fakes. The true extent of the problem

It's true that cybercrime is a worldwide problem, but recent research has shown that South Africa has the third most cybercrime victims of any country. It's certainly true that cybercrime is a worldwide problem, but recent research has shown that South African consumers are bearing the brunt disproportionately, with the country reportedly having the third highest

Although the research makes damning enough reading as it is, the worry is that the real level of cybercrime could be far worse as it's not compulsory to report cybercrime in South Africa. Of the attacks that were reported, it was found that one in every 214 emails sent in the country was actually a spear phishing attack, which is the fraudulent practice of sending emails purporting to be from a known or trusted sender. The report also found that one-in-three businesses had been the victim of a cybercrime, with a lack of awareness of the threats the predominant reason for their success. [Source: Guardian]

Relevance for you business: 

This is a venture you can start across Africa, and if you are not a cyber security expert yourself, you can still start a training company employing others. There is also an opportunity to sell related software to protect devices. The situation has reached crisis point in many countries and the demand for related training is growing making it a great venture.

Africa's largest telecom operator goes public in Ghana - YOU can still buy some shares! Why not invest your money in one of Africa's largest companies. Right now, you can buy some shares.

MTN, Africa’s largest telecoms operator, is going public in Ghana - it's third largest market in Africa. The initial public offering (IPO) is doubly historic: it is the largest ever undertaken in Ghana and it is also the first time shares of a major corporation can be purchased using mobile money accounts as Ghanaians will be able to buy shares using Momo Wallet, MTN’s local mobile money platform with 6.2 million users. The IPO will run from May 31 till July 31. The IPO launch is part of an agreement with Ghanaian authorities as a condition for MTN’s 4G network license as the telecoms operator doubles down in a market it currently dominates. MTN, which is headquartered in Johannesburg, has over 230 million customers across Africa with a market cap of $17.8 billion. [Source:African Business Central]

Build a tech or insurance solution for African farmers Agriculture is going to be one of the fastest growing sectors across the continent and there will be an increased demand for tech and insurance solutions to cut down the risk in production. You can build one!

insurance program in sub-Saharan Africa. ACRE’s offers a wide range of products, including insurance linked to agricultural credit from Micro-Finance Institutions (MFIs), and a product that links insurance to a replanting guarantee by a seed company. The insurance premium is incorporated into the price of a bag of maize seed. Each bag contains a scratch card with a code that is texted to ACRE at planting time to start coverage against drought.

ACRE (Agriculture and Climate Risk Enterprise) is the largest agricultural

Each farm is monitored using satellite imagery for 21 days. If the index is triggered, farmers are automatically paid via the M-Pesa mobile phone platform. The indexes that ACRE uses for its insurance projects are based on several data sources including solar powered automated weather stations, satellite

rainfall measurements, and government area yield statistics. ACRE has 200,000 farmer clients in Kenya, Tanzania and Rwanda. Insured farmers have invested

19 per cent more in farm productivity, resulting in 16 per cent more earnings compared to their uninsured neighbours. (Source: allafrica.com)

Relevance for your business: The agricultural sector will be one of the fastest growing sectors ...