Rand Merchant Bank’s ninth edition of ‘Where to Invest in Africa’ lists the sectors that are key to unlocking the continent’s growth potential.
This year, co-authors Celeste Fauconnier, Neville Mandimika and Nema Ramkhelawan-Bhana delve deeper into the traditional and alternative sectors driving African economies to reach ever-higher levels of economic growth. “We believe that the six sectors we’ve featured this year are key to inclusive growth across the continent,” says Fauconnier.
Contributor, Daniel Kavishe, adds that under the resources banner, “mining, energy and agriculture all offer vast opportunities for the savvy investor.” Turning to retail, Fauconnier says that it’s all about playing the long game. “While the middle class is not growing as fast as expected, the potential is still evident in the numbers.”
On the topic of finance, Ramkhelawan-Bhana stresses that, “Financial services play a critical role in securing Africa’s future. Without sustainable funding and commercial credit, project development in key areas such as infrastructure, healthcare, and energy projects remain concepts rather than reality.” She adds that, “The ICT sector and internet access in particular, long-viewed as a luxury in Africa, are fast becoming crucial to inclusive economies.”
According to Fauconnier and contributor Chris Mabanga, manufacturing is set to take centre stage as the continent, with its advantage of an abundance of natural resources, is focusing on turning its raw materials into manufactured goods to boost exports and reduce reliance on imports. And, finally, Mandimika highlights that construction activity is surging as countries attempt to bridge the funding chasm between what’s needed and what’s actually being spent.
The Top 10
“After nine years of publishing, we never fail to be both pleased and surprised by the extent of improvement in countries that are not necessarily perceived as strong investment destinations,” says co-author and Head of RMB Global Markets Research, Nema Ramkhelawan-Bhana. This year, Guinea, Mozambique and Djibouti recorded the strongest gains in the rankings, with notable advancements in their operating environments.
The rankings are as instructive on the downside, identifying countries that have either stagnated or outright deteriorated in one or more aspects of our methodology. South Africa, Ethiopia and Tanzania are among the more prominent countries to have taken a tumble. A deterioration in the ease of doing business has contributed to their relative underperformance and, in addition, South Africa is enduring a cyclical downturn.
Tanzania’s fall from grace has reshuffled the top 10 investment destinations, with Tunisia returning to the fold at number ten while Côte d’Ivoire and Ghana edge ever-closer to the top five. North Africa remains dominant with Morocco displacing South Africa in the rankings, rising to second place.
There is an even split of countries from the north, east and west within our top 10 rankings, with only South Africa representing the southern tip of the continent, as a result of its dominance in terms of market size.
Egypt: The enormity of the market paired with a sophisticated business sector relative to other countries makes Egypt the most attractive investment destination in Africa. The improvement in Egypt’s business environment, facilitated through government programmes, combined with the progressive increase in investment from the private sector has enhanced economic growth and assisted in repositioning Egypt on the global investment map.
Morocco: While only Africa’s fifth-largest market, Morocco’s expected growth rate of 4% over the medium term and its greatly-enhanced operating environment has served the country well since the Arab Spring. Its reintegration into the African Union and accession to the Economic Community of West African States (ECOWAS) have enhanced its investment appeal.
South Africa: South Africa has slipped another place in this year’s rankings, stymied by depressed levels of growth and a lack of structural reform. Yet it remains Africa’s hotspot for portfolio investment. With many countries facing severe liquidity constraints, South Africa’s financial markets and level of financial inclusion are still a cut above the rest.
Kenya: The above 5% expected growth rates, helped by favourable weather and political reconciliation after 2017’s disputed elections, has propelled Kenya one spot higher than 2019. The economy benefits from diversity as well as a sustained expansion in consumer demand, urbanisation, East African Community (EAC) integration, structural reforms and investment in infrastructure, including an oil pipeline, railways, ports and power generation.
Rwanda: Rwanda has the second-best business environment in Africa. According to the World Bank’s operating environment scoring, the country has more than doubled the efficiency of its business environment in less than a decade. The government has also invested heavily into its domestic industries, while FDI has increased over the same period, pushing Rwanda to being one of the five fastest-growing economies on the continent.
Ghana: The growth outlook is strong, concentrated around the oil and gas sector. Non-oil growth will pick up again, supported by pro-business reforms and a steady improvement in power supply. Political stability will remain underpinned by Ghana’s strong democratic credentials. Regardless of a recent deterioration in its operating environment rankings, Ghana remains one of the easier business environments in Africa.
Côte d’Ivoire: Côte d’Ivoire is one of the more diversified economies in francophone Africa. Its strong growth rates are supported by the government’s pro-business reforms and a relatively stable political context. Large infrastructure projects, particularly in transport and energy (financed by foreign investment, aid inflows and the government) also support the country’s strong position in our rankings.
Nigeria: Nigeria retains its top 10 ranking due to improved macroeconomics, supported by recovering oil prices and production. As the largest economy in Africa in nominal terms, the possibility for investment cannot be overlooked; and with the largest population on the continent, domestic demand continues to rise. Resources and favourable demographics are attracting strong flow of FDI. The liquidity crunch has subsided since 2017 as commodity prices have recovered and changes in FX regulations have been implemented.
Ethiopia: Ethiopia is the fastest-growing economy on the continent. With a population of almost 100 million people, demand for goods and services is rising significantly. The prohibition of foreign ownership in key sectors is still a constraint for investment, but this is slowly changing. The government has announced shake-ups across industries, including plans to open up the once closely-guarded telecommunications and power monopolies.
Tunisia: Tunisia re-enters within the top 10 supported by a reasonable market size and favourable operating environment. The government’s encouragement of foreign investment, through its new simplified investment code, has made the country increasingly attractive to multinational manufacturers.
For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.
Sources: [1], [2]. Image sources: [1], [2].
New Mara Group Cell Phone Factory Opening in South Africa
Efforts to revive South Africa’s sluggish economy and create much-needed employment are set to receive a major boost with the launch of Mara Phone’s first cell phone manufacturing plant in South Africa.
South African President Cyril Ramaphosa, as part of the recently launched District-Based Development Model, will later this week launch the Mara Phone Plant at Dube Trade Port in KwaZulu-Natal.
During South Africa’s inaugural Africa Investment Forum in November last year, company founder and Chief Executive Officer, Ashish Thakkar, 38, announced that his company would invest R1.5 billion in a South African business venture over the next five years. Almost 11 months later, the Rwanda-based Mara group has made good on its promise.
The modern state-of-the-art plant, with an annual production capacity of over 1.2 million handsets, is expected of manufacture two models of smartphones – the Mara X and Mara Z. The company plans to launch upgraded versions annually.
According to the company’s website, The Mara X costs $179 (approximately R2,683), and the Mara Z costs $254 (approximately R3,806). Both phones have 720x1440p HDR-capable screens utilizing Corning Gorilla Glass. The cheaper Mara X has a MediaTek MT6739 quad core processor, 1GB of RAM, and 16GB of internal storage, as well as a fingerprint reader. It runs Android Go (a lightweight version of Android). The more expensive Mara Z has a Qualcomm Snapdragon 435 processor, 3GB of RAM, and 16GB of internal storage, as well as both a fingerprint reader and facial recognition for unlocking, and runs full Android. The Mara Z is part of Google’s Android One program, which provides a manufacturer unalterable version of near-stock Android, as well as 3 years of frequent security updates, and 2 years of operating system updates.
The venture will generate hundreds of high-skilled direct jobs and thousands of indirect jobs. It will contribute to the transfer of technology and high-tech knowledge in South Africa. On its Twitter account, Mara Phones said more than 60% of the staff at the plant are women while 90% of the workforce will be youth.
Mara Z smartphone.
The production is expected to serve the domestic market as well as the regional market, especially the SADC region, contributing to strategies that position South Africa as the gateway to Africa.
Given the location of the operations, Mara Phones will be designated as a local product once production commences. Promotion will be conducted through a mix of traditional and digital/online media while utilising local platforms to influence local markets.
The phones are expected to be listed on commerce sites such as Jumia, Konga, and Amazon. The company also plans to sell the phones via retail partnerships with telecom operators Vodafone, MTN and Airtel.
Addressing reporters at the Investment Forum last year, Thakkar said his company had plans to develop the phone in plants across the continent’s five regions.
Mara Group founder and CEO Ashish Thakkar (right), with Akinwumi Adesina, President of the African Development Bank (AfDB), holding replicas of the new Mara smartphones to be produced in South Africa, during a AfDB event in 2018.
“We all know the importance of high quality and affordable smartphones and the impact this can have on the continent. Quality smartphones mean we can truly enable financial inclusion, micro-lending and micro-insurance. This can translate into better education, digital healthcare and agriculture efficiency and improve commerce.
“If this is all going to be possible… we [need] quality and affordable smartphones. Unfortunately, we have quality smartphones but they are not affordable and if it is affordable, it is not quality,” he said at the time.
For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.
Sources: [1], [2]. Image sources: [1], [2].
South African Bank FNB Opens Its Banking App to All Local Consumers
South African financial services provider, FNB has opened up its banking app for all consumers in the country. Through FNB’s AppVenture campaign, all customers regardless of who they currently bank with, will have the opportunity to explore and experience the app’s benefits and features.
Non-FNB customers can stand a chance to win one of two R1 million individual grand prizes, by simply downloading the FNB App and making use of a digital account with no monthly fees to experience the various features of the App. Existing FNB customers are similarly encouraged to experience the breadth of the bank’s technology by participating in AppVenture and can do so by performing their day-to-day banking via the App or using some of the unique features that the FNB App has to offer its customers.
“We are delighted to offer all South Africans the opportunity to experience the benefits of managing their money using our App. While FNB offers several interfaces to consumers, we find that our App is a convenient, safe and cost-effective way for customers to manage their day-to-day banking needs. We are also using this opportunity to help consumers with their savings journey by contributing to the savings goals of those who use our APP over this period,” says Raj Makanjee, Chief Executive of FNB Retail.
Amongst other features, FNB says it encourages participants to make use of functionality such as nav» Money which helps customers set and track Savings Goals. Consumers can choose a goal to save for, get a recommended personalised savings solution with the ability to track progress on savings. Users can also track their credit status and get insightful tips on how to manage and improve their credit score.
“We are confident that any consumer can get better value from banking with FNB, which is why we encourage everyone to put us to the test. For the first time in South Africa, any consumer can experience our innovative services that were only available to our customers. This includes real-time account opening, Cardless Cash Withdrawals, Bank Card Management, Geo Payments for direct payments to another FNB App user, eBucks suite of services and app-based instant messaging with our bankers,” adds Christoph Nieuwoudt, CEO of FNB Consumer.
To learn more about FNB and its banking app, visit the bank’s website by clicking here.
For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.
Sources: [1], [2]. Image sources: [1], [2].
RMB’s Top 10 Places to Invest in Africa
Rand Merchant Bank’s ninth edition of ‘Where to Invest in Africa’ lists the sectors that are key to unlocking the continent’s growth potential.
This year, co-authors Celeste Fauconnier, Neville Mandimika and Nema Ramkhelawan-Bhana delve deeper into the traditional and alternative sectors driving African economies to reach ever-higher levels of economic growth. “We believe that the six sectors we’ve featured this year are key to inclusive growth across the continent,” says Fauconnier.
Contributor, Daniel Kavishe, adds that under the resources banner, “mining, energy and agriculture all offer vast opportunities for the savvy investor.” Turning to retail, Fauconnier says that it’s all about playing the long game. “While the middle class is not growing as fast as expected, the potential is still evident in the numbers.”
On the topic of finance, Ramkhelawan-Bhana stresses that, “Financial services play a critical role in securing Africa’s future. Without sustainable funding and commercial credit, project development in key areas such as infrastructure, healthcare, and energy projects remain concepts rather than reality.” She adds that, “The ICT sector and internet access in particular, long-viewed as a luxury in Africa, are fast becoming crucial to inclusive economies.”
According to Fauconnier and contributor Chris Mabanga, manufacturing is set to take centre stage as the continent, with its advantage of an abundance of natural resources, is focusing on turning its raw materials into manufactured goods to boost exports and reduce reliance on imports. And, finally, Mandimika highlights that construction activity is surging as countries attempt to bridge the funding chasm between what’s needed and what’s actually being spent.
The Top 10
“After nine years of publishing, we never fail to be both pleased and surprised by the extent of improvement in countries that are not necessarily perceived as strong investment destinations,” says co-author and Head of RMB Global Markets Research, Nema Ramkhelawan-Bhana. This year, Guinea, Mozambique and Djibouti recorded the strongest gains in the rankings, with notable advancements in their operating environments.
The rankings are as instructive on the downside, identifying countries that have either stagnated or outright deteriorated in one or more aspects of our methodology. South Africa, Ethiopia and Tanzania are among the more prominent countries to have taken a tumble. A deterioration in the ease of doing business has contributed to their relative underperformance and, in addition, South Africa is enduring a cyclical downturn.
Tanzania’s fall from grace has reshuffled the top 10 investment destinations, with Tunisia returning to the fold at number ten while Côte d’Ivoire and Ghana edge ever-closer to the top five. North Africa remains dominant with Morocco displacing South Africa in the rankings, rising to second place.
There is an even split of countries from the north, east and west within our top 10 rankings, with only South Africa representing the southern tip of the continent, as a result of its dominance in terms of market size.
Egypt: The enormity of the market paired with a sophisticated business sector relative to other countries makes Egypt the most attractive investment destination in Africa. The improvement in Egypt’s business environment, facilitated through government programmes, combined with the progressive increase in investment from the private sector has enhanced economic growth and assisted in repositioning Egypt on the global investment map.
Morocco: While only Africa’s fifth-largest market, Morocco’s expected growth rate of 4% over the medium term and its greatly-enhanced operating environment has served the country well since the Arab Spring. Its reintegration into the African Union and accession to the Economic Community of West African States (ECOWAS) have enhanced its investment appeal.
South Africa: South Africa has slipped another place in this year’s rankings, stymied by depressed levels of growth and a lack of structural reform. Yet it remains Africa’s hotspot for portfolio investment. With many countries facing severe liquidity constraints, South Africa’s financial markets and level of financial inclusion are still a cut above the rest.
Kenya: The above 5% expected growth rates, helped by favourable weather and political reconciliation after 2017’s disputed elections, has propelled Kenya one spot higher than 2019. The economy benefits from diversity as well as a sustained expansion in consumer demand, urbanisation, East African Community (EAC) integration, structural reforms and investment in infrastructure, including an oil pipeline, railways, ports and power generation.
Rwanda: Rwanda has the second-best business environment in Africa. According to the World Bank’s operating environment scoring, the country has more than doubled the efficiency of its business environment in less than a decade. The government has also invested heavily into its domestic industries, while FDI has increased over the same period, pushing Rwanda to being one of the five fastest-growing economies on the continent.
Ghana: The growth outlook is strong, concentrated around the oil and gas sector. Non-oil growth will pick up again, supported by pro-business reforms and a steady improvement in power supply. Political stability will remain underpinned by Ghana’s strong democratic credentials. Regardless of a recent deterioration in its operating environment rankings, Ghana remains one of the easier business environments in Africa.
Côte d’Ivoire: Côte d’Ivoire is one of the more diversified economies in francophone Africa. Its strong growth rates are supported by the government’s pro-business reforms and a relatively stable political context. Large infrastructure projects, particularly in transport and energy (financed by foreign investment, aid inflows and the government) also support the country’s strong position in our rankings.
Nigeria: Nigeria retains its top 10 ranking due to improved macroeconomics, supported by recovering oil prices and production. As the largest economy in Africa in nominal terms, the possibility for investment cannot be overlooked; and with the largest population on the continent, domestic demand continues to rise. Resources and favourable demographics are attracting strong flow of FDI. The liquidity crunch has subsided since 2017 as commodity prices have recovered and changes in FX regulations have been implemented.
Ethiopia: Ethiopia is the fastest-growing economy on the continent. With a population of almost 100 million people, demand for goods and services is rising significantly. The prohibition of foreign ownership in key sectors is still a constraint for investment, but this is slowly changing. The government has announced shake-ups across industries, including plans to open up the once closely-guarded telecommunications and power monopolies.
Tunisia: Tunisia re-enters within the top 10 supported by a reasonable market size and favourable operating environment. The government’s encouragement of foreign investment, through its new simplified investment code, has made the country increasingly attractive to multinational manufacturers.
For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.
Sources: [1], [2]. Image sources: [1], [2].
Unpacking Tips to Help You Settle Easily
This article was written by Erin Strasen, and published by Vivian Chiona on Expat Nest.
You’ve done it – after weeks or months of preparation and planning, you’ve finally arrived on the other side! But now what? Although there’s a lot of helpful information out there, as well as services to help with packing, once you get to your new location, you’re pretty much on your own. Erin Strasen, an interior designer who specialises in helping expats bring simplicity and functionality to their homes, shares some unpacking tips so you can settle quicker into your new home.
Packing and actually getting to your new home is often the “easy” part of the process. There’s a formula. You know what to do. But no one offers guidance about how to deal with the stress after a move, because they assume the hard part is over. And even if you’re fortunate enough to have movers who will unpack for you on the other side, they usually just place items where there is space.
Here are some post-move tips to make your move a little less stressful.
1. Think before you unpack
Are you unpacking a box because you want to get it out of the way? Do you know where these items are going to live or are you just sick of looking at boxes? Taking a moment to be more strategic and intentional about where things go will help you in the long run. Rather than unpacking for the sake of unpacking, you’re making the best use of your time and avoiding unnecessary time spent rearranging or moving things around.
2. Imagine a blank slate
Many people set up their furniture in the same way they saw the previous tenant do it, or even in a similar way to their previous home, without thinking about their specific needs in this home. Do you want to be able to talk to your partner in the kitchen while you sip wine in the living room? Do you want a TV view or a window view? What’s the first thing you want to see when you wake up in the morning? Try to ignore past ideas about the space set-up and imagine your home as a blank slate. This helps you visualize yourself in the space and ensures that you’re placing things in a way that is personal to you. With this approach you’re more likely to be happy with the results in the long term.
3. Prioritize one space at a time
Moving is chaotic, and when you just unpack whatever box is next in the pile, nothing ever feels finished. It’s hard to feel like you’re making progress. Choose one room to focus on that can be your haven. Maybe it’s a bedroom, maybe it’s a living room… the idea is to create a calm place that you can escape to when you need a break; a space where you can take a much-needed coffee break and imagine what your home will look like when all the boxes are gone.
4. Keep a list to avoid distractions
Write down things that come up as you unpack that might distract you from the task
at hand. Whether this list is on your phone or a physical piece of paper, just make sure it’s in one place. Write down everything that comes to mind that you need to deal with later. This will free up some much needed brain space. Did you come across a broken item and you need to file a claim? Put it aside and write it down. Do you need to get nails for the artwork you just unpacked? Put them aside and write it down.
5. Break down boxes as you go
Imagine that feeling when you’re finished unpacking for the day. You let out a sigh of relief and then realize that you have a mountain of empty boxes in between you and your couch. Breaking down boxes as you go helps control the chaos and avoid that feeling of taking two steps forward and one step back.
For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.
Sources: [1], [2]. Image sources: Richard James [1], [2].