Modi may visit Africa next month to boost ties

External Affairs Ministry plans awareness programmes for African students

New Delhi, May 31:  

Prime Minister Narendra Modi will undertake his maiden visit to Africa next month in an effort to boost diplomatic and economic ties, even as the Ministry of External Affairs (MEA) is planning to initiate awareness programmes for African students in India.

The Prime Minister is expected to visit multiple countries even though his first destination is likely to be South Africa.

He might also visit Mozambique, Kenya and Ethiopia, sources told BusinessLine. Though this will be Modi's first visit to the region after he assumed office in May 2014, in October 2015, India hosted the India-Africa Forum Summit (IAFS), in which all 54 African countries participated. Bilateral ties have been growing at a blistering pace in the past 10 years. Two-way trade exceeded $70 billion last year. The focus of Modi's visit will be to strengthenpolitical and economic ties.

"The government has done a lot of work on Africa. India hosted the India-Africa Forum Summit (IAFS) last year that saw unprecedented attendance by all African heads of state. The Prime Minister's visit is likely to give a push to economic and political ties, ocean economy, security aspect and Diaspora ties. The ancient East Africa is part of India's hinterland and holds significant importance," said Nalin Surie, Director General, Indian Council of World Affairs (ICWA).

So far, India has extended concessional credit lines worth $7.4 billion for the development of the African economy, especially in sectors such as infrastructure, agriculture, industry, energy and water.

India is also engaged in more than a 100 projects across 40 African countries. It also offers a plethora of scholarships for African students to pursue higher studies here. Recently, the diplomatic ties between the two sides hit a rough patch with the killing of a Congolese student in Delhi. African envoys even threatened to stop sending their students here.

On Tuesday, External Affairs Minister Sushma Swaraj met a delegation of African students over the incident and said that the attack was not racially motivated. The Ministry is also planning to initiate programmes of awareness and sensitisation in areas that have a heavy concentration of African students.

Ansari in Morocco

Meanwhile, Vice-President Hamid Ansari who is in Morocco, as part of a two-nation tour, made efforts to build on diplomatic gains from the India-Africa Summit and lay platform for a future partnership.

Meanwhile, India said it wanted to make Morocco the hub for its economic activities in the African region as the two countries sought to inject fresh momentum in bilateral ties.

Ansari held wide-range of talks with the Moroccan Prime Minister Abdelilah Benkirane. Two MoUs on cultural cooperation and institutional training were also signed.

(This article was published on May 31, 2016)

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Source: Modi may visit Africa next month to boost ties

Malaysia – Africa’s Silent Partner

Talk about Africa's international investors and partners and Malaysia's name rarely comes up. Yet in the shadow of China's African engagement (and the attention paid to Sino-African relations), Malaysian companies and policymakers have built a sizeable presence across Africa over the past two decades. In 2011, with investments of $19 billion Malaysia was in fact Africa's most important Asian investor, ahead of China and India in terms of the size of its foreign direct investment (FDI). All of this occurred mostly unnoticed by Western observers. Significant attention is being paid to the developing South-South relations, developments in and among the BRICS states, and Sino-African relations; the African engagement of states such as Turkey, Iran, Korea, the UAE, and Malaysia has largely been ignored. However, Malaysia in particular has a special role in this group of African partners.

Malaysia's modern relations with Africa have their roots in the late 1980s and the politics of Mahathir Mohamad, Malaysia's long-time former prime minister and Asian strongman. During Mahathir's term, which lasted from 1981 until 2003, Malaysia redefined itself entirely and underwent rapid economic development, which lifted the country into the upper middle income group of countries. During this time, Malaysia's international relations were seen as primarily favoring FDI, and no one personified this more than Mahathir. His authoritative political style and nationalistic worldview put Malaysia's economic development above all else. Simultaneously, Mahathir combined his advocacy for the Third World with pragmatic commercial diplomacy in order to support Malaysia's economic development.

For Mahathir, Africa was the last frontier. In his eyes, Africa's poor, developing, and ex-communist states were an opportunity for Malaysian corporations to develop, gain valuable overseas experience, and quickly produce substantial revenues. These revenues could subsequently be used for Malaysia's domestic development. Mahathir's arguably Anglophobe worldview made African states appear even more attractive and presented themselves as a chance to enter markets that were not yet fully under the control of Western corporations. His political and diplomatic support allowed Malaysian corporations to expand internationally, develop new consumer markets, and find investment opportunities in Africa.

Petronas, Malaysia's omnipotent national oil company, is a prime example of the rapid economic development that occurred throughout the 1990s, and how closely this development was linked with Malaysian overseas engagement. Domestically successful, Petronas started its African expansion with investments in Sudan that were politically brokered by Mahathir. Since the end of Mahathir's term in 2003, Malaysian corporations have continued to engage across Africa, though arguably with less of centralized political will behind it than under Mahathir's administration.

A number of factors set Malaysia apart from other Asian investors in Africa today, some of which will become even more important in the future: Malaysian investments in Africa are highly diversified; Malaysia's emphasis on being a modern Muslim country opens up markets that are mostly closed to Chinese, Indian, and Western investors; and Malaysia exercises significant soft power across African states.

While Malaysia's investments across Africa are more diversified than Chinese investments, Malaysian corporations in fact also cover similar grounds as other Asian investors. Petronas, Malaysia's national oil company and key financier of the country's national budget, for example is engaged in up- and downstream activities across Africa. Focusing largely on Northern and Eastern African states, the African production is the most important region for Petronas' overseas production and accounted for roughly one third of the firm's international production (and ten per cent of its overall production) in 2014. According to recent media reports, Petronas is trying to divest smaller assets in Africa to concentrate on projects in China and Latin America as a result of domestic political pressure, internal restructuring, and the global commodity crisis. Yet, the full extent of these measures remains to be seen, as are the effects of the global commodity crisis on Petronas' operat ions in Africa.

Beyond crude oil, another key investment area that sets Malaysia apart from other investors is its engagement in Africa's palm oil industry. The global palm oil industry is currently worth around $50 billion a year, with significant growth projections for the next decade. Malaysia and Indonesia are the world's largest palm oil producers, together accounting for around 80 to 90 percent of global production. Malaysia in particular is rapidly expanding into Africa, which is seen as the next growth market in part because of the restrictions put on land acquisition and development in Southeast Asia itself. Malaysian multinationals such as Sime Darby, Felda Global Ventures, and IOI Global as well as Singapore-based Wilmar International are only a few examples for corporations expanding into Africa's palm oil sector.

Africa is attractive to Malaysian (and Southeast Asian) palm oil producers for a number of reasons. The oil palm is already native to West African states such as Benin, Cameroon, Liberia, Nigeria, and Sierra Leone, as well as the Democratic Republic of Congo (Nigeria is the largest among the African producers and was the fifth largest globally in 2015). Africa in total is now the world's third largest market for palm oil, behind only Indonesia and India. African produce therefore does not necessarily need to exported, but can be marketed within Africa. The lack of appropriate local regulations and restrictions across Africa might thereby be in the short-term interests of Southeast Asian investors, but is generally worrying. Similar to other industries on the continent, many African states lack standards to limit risks associated with the palm oil industry, most frequently environmental damage and limited benefit for the local population. How serious these risks are can be seen i n Malaysia and Indonesia, where the palm oil industry is at the heart of forest loss threatening thousands of species, causing extensive carbon emissions, and disenfranchising local communities.

Other than commodities, a key economic factor contributing to Malaysia's unique standing in Africa (and setting Malaysia significantly apart from other investors) is its ability to serve Islamic industries. These include the global Sukuk market (or "sharia-compliant" bonds) as well as halal goods and services. It is estimated that roughly 45 to 50 percent – or about 500 million people – of Africa's 1.1 billion-strong population are of Muslim faith.

Malaysia has two distinct advantages when it comes to African Muslims. First, ever since Mahathir's initial expansion into Africa, Malaysian external relations have used a Muslim narrative when expanding into Muslim countries. In Malaysia's external relations with Sudan for example, Muslim narratives have always played an important role and therefore now appear genuine. Malaysia has in fact been emphasizing cooperation among countries in the Ummah – the collective community of Muslims – to enhance FDI flows since the 1990s. Second, Malaysia has already been able to market and position itself not only as a global Islamic finance hub, but also as both an exporter and certifier of halal goods and services. Malaysian industries can therefore rely on existing structures when further expanding across Africa or intensifying existing linkages. Islamic faith and population growth projections for Africa underline the growing importance of Islamic industries in the relations between Africa and Malaysia. Malaysia is in a position to influence the normative dialogue across Africa in these industries and further enhance its soft power appeal. What remains to be seen is how China's economic slowdown and the global commodity crisis will have affected demand for Islamic goods and services across Africa's Muslim lower and middle classes.

Finally, Malaysia's significant soft power, as well as its cultural and political-economic attraction, set the country further apart from other Asian investors in Africa. Malaysia actively lobbies its development model within an African development narrative to the continent directly. In 2013, Malaysian Prime Minister Najib Razak wrote in a South African newspaper that Africa should try and emulate Malaysia' reforms towards open markets, the critical role of the private sector for economic development, the advantage of trade agreements and regional economic integration, and the key role of transparency and accountability. Emphasizing the success of its economy highlights that Malaysia sees itself as a role model for African development. For African policymakers on the other side, Malaysia continues to remain an example that the export of commodities (and oil in particular) can in fact be compatible with the successful export of manufactured goods. In addition, and particularly compared to China, Malaysia is easy to identify with for African policymakers. It has a relatable population size, a politically less-sensitive framework, diversified investments on the continent, and oftentimes African countries share the Muslim faith with Malaysia. Finally, Malaysia's multicultural and multi-ethnic society, its relaxed visa policy for other Muslim countries, and its affordable and high-quality higher education system makes it a particularly attractive destination for African students. Since around 2010, there has been a significant rise in African enrolment at Malaysian universities, a trend supported by education initiatives of key Malaysian corporations such as Petronas.

However, not all that glitters is gold and Malaysia also lags behind other Asian investors in Africa. Most visible are Malaysia's shortcomings in its diplomatic engagement with Africa. Of all major Asian investors, Malaysia operates the smallest number of embassies on the continent. Currently, Wisma Putra, the Malaysian Foreign Ministry, operates 13 diplomatic representations across Africa (in comparison, Indonesia: 16, India: 29, Japan: 34, China: 49). Even when compared to other 'second-tier' (non-EU, US, China) investors in Africa, Malaysia operates a small number of diplomatic representations (Turkey has 39, Korea 22). This limited diplomatic support network is sometimes criticized by Malaysian multinationals in private conversations, noting that they in fact wish for a stronger diplomatic support.

Overall, Malaysia has significant investments across Africa that are diversified and therefore not overly reliant on commodities and the extractive industries. Africa matters to Malaysia as a market for securing resources, the distribution of goods and services, and as a destination for financial investments. Particularly when compared to China and India, Malaysia comes closest to eye level as an investment partner for many African states. However, what has been missing from further Malaysian success in Africa is stronger and more active political support by the Malaysian administration. Ever since Mahathir's strong push into Africa – sometimes more or less forcing Malaysian corporations to invest on the continent – the Malaysian administration has been slow in their political and diplomatic support. Additional domestic pressure (often against all economic logic) on Malaysian state-owned enterprises and larger multinationals to invest domestically rather than in overseas mar kets will add pressure on Malaysian engagement in Africa. Malaysia is a strong and mature investor in Africa that – unlike many other Asian investors – operates in areas with significant future potential. It's role across Africa is likely to grow further in the future and it is in the best interest of other external actors to further understand Malaysia's engagement on the continent.

Tim Steinecke is a consultant and researcher specializing in Asia-Africa relations and national oil companies. Tim can be found and contacted via Twitter @TimSteinecke. The views expressed here are the author's own.

Source: Malaysia – Africa's Silent Partner

Trip Report: South Africa & Namibia April 28 – May 14

Trip Report: African Animal Adventures

South Africa & Namibia April 28 – May 14

The call of Africa. Ah yes. Like all of you, I have seen photos and movies depicting Africa for as long as I can remember. I mean just say Tarzan and an instant image of Africa pops up for those of us old enough to remember. I have also read the histories, the novels and hundreds and hundreds of National Geographic magazine articles over the years. The animals, the jungles, the savannahs, the deserts all seemed so far away and yet so familiar. I wanted to go. Africa. I felt it in Morocco, when we touched the edge of the Sahara. It gets under your skin. And it touches something primordial in us. The hot African sun.

This trip has been a long time in the planning. I did a lot of basic research 7 years ago when I first thought that it might be interesting as a destination. I looked at the typical safari options available for Africa. You go to Kenya for the Rift Valley and the sensa tional great migration, Tanzania seems ideal for the smaller and more personal experience. And of course Rwanda for the gorillas. I looked at it all and the romance of it was kindled. But as readers of my other trip reports might know by now. the tour group thing just wasn't for me. So I dismissed the idea for a while until i heard about Kruger Park in South Africa. Fodor's forum - my usual Europe info go to - has a weak Africa section but it did lead me to the SanPark forum with lots of info about Kruger. Hosted by the park system of South Africa, the forum was a goldmine of info about how to see wild Africa in a different way. Kruger allows a one on one experience without the guides, the porters and the 'get on the bus' routine. The more I read, the more I liked the idea. You see, you can self drive in Kruger. Yeah, that's right . . . rent any vehicle, bring a camera and drive yourself around amongst the wild animals in this massive park. Sounds kind of cool, right?

And once I was set on South African I started filling in the rest of the blanks. South Africa is obviously not just one big game viewing destination but it offers a host of other places to see and things to do. My long-time employer and his wife had done a trip there in recent years and I will admit I stole many ideas from them. She kindly shared their itinerary and encouraged me to go. When I saw their itinerary included a trip to Namibia, I was intrigued and the Namib desert became a permanent fixture in my itinerary plans. The mountains of the cape appealed as well offered great wines with a stunning backdrop and the finest dining in SA, so Stellenbosch and Francshhoek were added. And penguins. Are you kidding me? Who doesn't want to see penguins?

From a practical side, it required a lot of logistical planning. I never use an agent so I had to weave the flights, the rental cars and the hotels into an acceptable, doable and safe package that would work for us. I started planning thi s before we even took our last vacation. Trip Advisor reviews & the forums were the best overall resource.

The final itinerary:

Fly Canada to Amsterdam – 2 nightsFly AMS to FRA - connect to overnight flight to JNB - connect to Cape TownRental car to Franschhoek – 2 nightsDrive to Stellenbosch - 2 nightsFly Cape Town to Windhoek, NamibiaRental truck to lodge near Solitaire - 3 nightsDrive back to Windhoek - 1 nightFly SA to JNB - connect to short SA flight to Skukuza in Kruger ParkSkukuza Rest Camp - 2 nightsLower Sabie Rest Camp - 2 nightsHamilton's Tented Camp (Mluwati Concession) - 2 nightsFly from Skukuza SA to JNB – Johannesburg - 1 nightFly JNB to Cape Town - I nightFly CPT to IST – connect to Toronto

Yeah, that's a whole lotta flyin' goin' on but the distances were too vast to consider driving. And I didn't want to drop any of our destinations, so fly we did. Every flight worked and every destination lived up to expectations. Read on, and don't wo rry . . . I'll get to the penguins and much, much more . . .

It's a long report & best seen with pictures. Go to:

http://imcarthur.weebly.com/south-africa--namibia.html

Ian

Source: Trip Report: South Africa & Namibia April 28 – May 14

African envoys participate in event after assurances by India

New Delhi, May 26 (IANS) Even as African envoys in India on Thursday decided to participate in the Africa Day event, following a "constructive meeting" with top Indian officials, the Indian government said that a few isolated cases of violence against African nationals should not be generalised to portray a climate of insecurity for African students.

On Thursday, African envoys decided to review their decision of calling for postponement of the Africa Day event, which was being read as a boycott, following the killing of a Congolese national in New Delhi last week.

The review followed a meeting of the African Heads of Missions with Minister of State for External Affairs V.K. Singh and with Ministry of External Affairs Secretary (Economic Relations) Amar Sinha.

The envoys, in a statement, said that the African Group reiterated its request to the government of India "to take concrete steps to address the plight of African students in India" and also ensuring prosecution o f those involved in the murder of M.K. Olivier, a Congolese national, on May 20.

After noting that the government of India has "demonstrated a positive and warm disposition" in addressing their concerns, and also issued a "strong, public condemnation of the killing of Olivier" it decided that their decision to request a postponement of the Africa Day event "should not have been construed as a boycott" and that they will participate in the Indian Council for Cultural Relations-organised Africa Day event.

The Africa Group also underscored the importance they attach to ties with India. They also "took very seriously the firm assurances by the government of India in its determination to ensure that India continues to serve as a safe, secure and friendly destination for African students", the statement said.

In his briefing, the ministry of external affairs spokesperson Vikas Swarup said that "It would be unfortunate that a few isolated cases are generalized to portray a climate of insecurity for African students. It is also not right to characterize criminal acts as being racially motivated."

He said the CCTV footage of the attack on Oliver by some goons shows that some Indian bystanders tried to protect the Congolese national, but they in turn were also thrashed by the same goons.

"Thousands of African students continue to benefit from the Indian education system without any issues. We are committed to work closely with the African diplomatic and student communities to ensure full safety and security of all African students in India," he said.

Swarup said that External Affairs Minister Sushma Swaraj is personally monitoring the matter. "I would like to reiterate that India remains open to our brothers and sisters from Africa and there should be no cause for concern," he stated. The assurances from India came even as some Indian shops were attacked in Congo - in retaliation to the killing of the Congolese national Olivier . --IANS

rn/bg

Source: African envoys participate in event after assurances by India

Zimbabwe – Southern Africa’s future investment destination

Mthokozisi NdlovuJOHANNESBURG , ( CAJ News ) : As African countries continue to face tough and slow economic growth, Zimbabwe is set to proactively position itself as Southern Africa's investment destination, as they will be hosting the first ever Zimbabwe 2016 Conference on the 5th of July 2016 in London, United Kingdom.

The conference is expected to be attended by country's key ministers, officials, public sector, diplomatic community and policymakers who will be explaining the plans and priorities for rebuilding of the country's economy.

The conference is organised by Africa Confidential, one of Africa's largest thought leadership publications and also supported by the Government of Zimbabwe in partnership with various ministries within Zimbabwe.

As the country reopens itself to the international markets after a long absence, the focus will be on which sector can produce a rapid response as conditions improve.

As per Africa Confidential, experts from banking and other key economic sectors – including agriculture, mining and manufacturing – will point out a realistic approach of operating and what has to be done to boost growth and create jobs.

The gathering is not a 'polish-over' kind of a conference; it will be tackling the critical questions of political instability, security and investment risk as we all saw major foreign-owned companies panic after the reports that government's deadline for Indigenisation law comes to an end in March 31st this year.

Apart from Zimbabwean leaders, the gathering will feature key international partners from Europe, America and Asia to further the constructive dialogue between local and international investors.

The 'Anti-Mugabe' Countries

Lately, major multinational companies have shown their interest of doing business in Zimbabwe – including those from 'Anti-Mugabe' countries as we witnessed a visit of American business group, the Corporate Council on Africa, which represents 180 American companies – last year in Harare with intentions of strengthening, assuring and nourishing 'broken' relationship between these countries.

France was also one of European countries to dispatch a re-engagement delegation to Zimbabwe to convince officials that country is prepared to establish healthy relationships. The engagement was the first since EU and Zimbabwe's relations became bitter after Britain internationalised a bilateral dispute over the land reform programme.

The Newly Announced Bond Notes

Delegates will no doubt, question the newly announced 'Bond notes' by the Zimbabwe Central Bank Governor, John Mangudya earlier this month. The bond notes, according to governor, will be backed by $200m (£140m) support from the Africa Export-Import Bank.

The announcement, which received mixed emotions from various sectors including general commuters, businesses, financial institutions, traders and politicians, is expected to kick-start soon.

Indigenisation Law

The so called 'controversial law' will also take centre-stage as most foreign companies felt uncomfortable when the Minister Patrick Zhuwao, announces the deadline of Indigenisation and Economic Empowerment (IEE) Act – which enforces foreign-owned firms to submit their indigenisation plans as pronounced by the end of last year. The law requires these firms to only hold a 49 percent stake in the business.

The Indigenisation and Economic Empowerment Act was passed in 2008 but implementation has been slow with most foreign companies resisting to accept the Act.

The need of such engagements [Conferences] plays a vital role in boosting and rebuilding the country's investment confidence. More African countries need such 'Investor-Convincing' conferences to retain existing investors and to attract potential investors. This is no doubt that Zimbabwe [in coming years] will be among top African countries to do business with.

Mthokozisi Ndlovu is a public relations and strategic communication professional based in South Africa.

Short URL: http://cajnewsafrica.com/?p=13281

Source: Zimbabwe – Southern Africa's future investment destination

UTB hosts Rwanda tour agents

Travel 

Saturday, May 28, 2016 

GORRILA TRACKING: The efforts put towards regional tourism marketing among EAC member states are carried out under the Joint Tourism Marketing Committee through the Northern Corridor Infrastructure Project. COURTESY PHOTO

KAMPALA, UGANDA - Uganda and Rwanda tour operators have come together to promote Joint Tourism Marketing in the region.  

Uganda Wildlife Authority (UWA), Uganda Tourism Board (UTB) among other strategic partners in the Gorilla Highlands, hosted ten Rwanda tour operators to Destination Uganda familiarization trip in the spirit of promoting East Africa as a single destination.

The Tour Operators were hosted to key tourist attractions in South Western Uganda including Queen Elizabeth National Park. This particular familiarization trip with the Rwanda operators took place from the 24th – 29th May 2016.

This comes barely a week since Uganda contracted three firms from the US and Europe to represent the country in the global travel markets.  The visit by Rwanda tour operators to Uganda shows the determination by the relevant agencies and ministry of tourism in Uganda to popularize the country's tourism sector world over.   

"The benefits of promoting the region as a single destination, is the use of the single East Africa tourist visa. At only US$100, a tourist can move between Uganda, Rwanda and Kenya on a single visa valid for 90 days." said Stephen Asiimwe, CEO, UTB. 

The efforts put towards regional tourism marketing among EAC member states are carried out under the Joint Tourism Marketing Committee through the Northern Corridor Infrastructure Project.

Asiimwe said with Kigali International Airport of Rwanda just a few hours away from most of Uganda's south western tourist attraction, the western circuit to the Rwandan itinerary gives variety to visitors.

Some of the tour operators who visited Uganda include among others Wildlife Tours - Rwanda, Thousand Hills Expeditions, Primate Safaris, Amahoro Tours, Intore Expeditions and Business Tours, Rwanda Eco-tours, Songa Africa, ITT, Sunrise Eco-Tours and Jean Marie - Eagle Ride.

The East Africa Tourism Platform (EATP) is the private sector body for tourism in East Africa, working towards promoting the interest and participation of the private sector in the East African Community (EAC) integration process. 

EATP is the first regional tourism apex body put into place, able to lobby at the EAC level and at the level of national governments with the vision of creating and promote a vibrant and diverse single tourism destination is the driving force.

EATP promotes intra and inter-regional tourism though advocacy, marketing, skills development, research and information sharing, the main strategic objectives include among others provide Intermediate and reduce obstacles to intra and inter-regional tourism, Promote an intra and inter-regional tourism marketing approach, Facilitate continuous skills development in the tourism sector, Promote harmonized standards and codes of conduct of tourism facilities and services, Facilitate access to finance and risk management services and Share information and provide networking opportunities

By Sam Okwakol, Saturday, May 28th, 2016

Source: UTB hosts Rwanda tour agents

Zimbabwe – Southern Africa’s future investment destination

Mthokozisi NdlovuJOHANNESBURG , ( CAJ News ) : As African countries continue to face tough and slow economic growth, Zimbabwe is set to proactively position itself as Southern Africa's investment destination, as they will be hosting the first ever Zimbabwe 2016 Conference on the 5th of July 2016 in London, United Kingdom.

The conference is expected to be attended by country's key ministers, officials, public sector, diplomatic community and policymakers who will be explaining the plans and priorities for rebuilding of the country's economy.

The conference is organised by Africa Confidential, one of Africa's largest thought leadership publications and also supported by the Government of Zimbabwe in partnership with various ministries within Zimbabwe.

As the country reopens itself to the international markets after a long absence, the focus will be on which sector can produce a rapid response as conditions improve.

As per Africa Confidential, experts from banking and other key economic sectors – including agriculture, mining and manufacturing – will point out a realistic approach of operating and what has to be done to boost growth and create jobs.

The gathering is not a 'polish-over' kind of a conference; it will be tackling the critical questions of political instability, security and investment risk as we all saw major foreign-owned companies panic after the reports that government's deadline for Indigenisation law comes to an end in March 31st this year.

Apart from Zimbabwean leaders, the gathering will feature key international partners from Europe, America and Asia to further the constructive dialogue between local and international investors.

The 'Anti-Mugabe' Countries

Lately, major multinational companies have shown their interest of doing business in Zimbabwe – including those from 'Anti-Mugabe' countries as we witnessed a visit of American business group, the Corporate Council on Africa, which represents 180 American companies – last year in Harare with intentions of strengthening, assuring and nourishing 'broken' relationship between these countries.

France was also one of European countries to dispatch a re-engagement delegation to Zimbabwe to convince officials that country is prepared to establish healthy relationships. The engagement was the first since EU and Zimbabwe's relations became bitter after Britain internationalised a bilateral dispute over the land reform programme.

The Newly Announced Bond Notes

Delegates will no doubt, question the newly announced 'Bond notes' by the Zimbabwe Central Bank Governor, John Mangudya earlier this month. The bond notes, according to governor, will be backed by $200m (£140m) support from the Africa Export-Import Bank.

The announcement, which received mixed emotions from various sectors including general commuters, businesses, financial institutions, traders and politicians, is expected to kick-start soon.

Indigenisation Law

The so called 'controversial law' will also take centre-stage as most foreign companies felt uncomfortable when the Minister Patrick Zhuwao, announces the deadline of Indigenisation and Economic Empowerment (IEE) Act – which enforces foreign-owned firms to submit their indigenisation plans as pronounced by the end of last year. The law requires these firms to only hold a 49 percent stake in the business.

The Indigenisation and Economic Empowerment Act was passed in 2008 but implementation has been slow with most foreign companies resisting to accept the Act.

The need of such engagements [Conferences] plays a vital role in boosting and rebuilding the country's investment confidence. More African countries need such 'Investor-Convincing' conferences to retain existing investors and to attract potential investors. This is no doubt that Zimbabwe [in coming years] will be among top African countries to do business with.

Mthokozisi Ndlovu is a public relations and strategic communication professional based in South Africa.

Short URL: http://cajnewsafrica.com/?p=13281

Source: Zimbabwe – Southern Africa's future investment destination

Is Africa losing its authenticity?

Africa has been placing so much focus on luxury that it might be at risk of losing its uniqueness. So said a panel of U.S. tour operators, wholesalers and travel agency owners who were invited to a USTOA workshop in South Africa hosted by the Southern African Tourism Services Association.

"So much focus has been placed on luxury that it almost does not feel like Africa anymore," tour operators said. They urged the African trade to develop more and more varied product to appeal to the North American market.

Panelists told African suppliers to not be too overly focused on the luxury elements and rather promote to the three- and four-star market. "When one ultimately thinks about it, South Africa's three- and four-star market is in most cases seen as luxury compared to the same level of offering in other countries," one panelist said, adding t hat it is important to look beyond the 'high paying' luxury market and provide the product that makes Africa and South Africa unique.

David Marek, president at Ker & Downey Safaris, explains that loss of uniqueness is indeed a concern for Africa. He says: "Everything seems to be high-end luxury.  Some people just want a tent in the bush, but it's hard to find this traditional safari option in South Africa. I had to send a family to Botswana to get that traditional experience, and I believe there is a growing market for this."

Marek explains there is nothing more personal than being serenaded awake in the morning by the doves and francolin. He says: "You get that when you are under canvas. Most luxury experiences muffle the great cacophony of the early morning experience. There is something magical and mysterious to lie awake at night and hear an elephant eating the leaves from the tree over your tent or to hear the lions calling in the night. Those memor ies never fade."

The media is to blame for a lot of misconceptions about luxury in Africa, according to Jim Holden, president of Holden Safaris. He explains the term "luxury lodges," as used in the media, is often another way of describing the typical five-star establishment, such as a Four Seasons Hotel, in the middle of a national park or reserve.

"But," says Holden, "a seasonal tented camp, be it mobile or semipermanent, can also qualify as luxury in Africa. Imagine sitting in a tented camp, having the same experience as Teddy Roosevelt or Hemingway, but with all mod cons, including running water, flushing toilets and gourmet food."

According to Holden, even when the glossy consumer magazines write about these camps, they put the emphasis on the five-star amenities, as opposed to what really makes the experience special: the guides, the location of the camp, the knowledge and experience of the camp crew.

He says: "Unfortunately, with our ce lebrity-driven culture, we only want to think we are buying the best and going where the rich and famous go, thinking this is that five-star establishment with the chandeliers and mixologist in the bar. Little do we know that the most authentic and truly rich African safari experience is delivered by a few of the original safari operators, who are hardly ever written about in the press."

Education is key, according to stakeholders during the USTOA session, especially as the general knowledge about Africa is quite limited. Tourism stakeholders need to allocate budget and resources to destination training programs.

Holden added that only a handful of agents in North America focus enough on Africa to have the knowledge to adequately sell the experience. He says: "But that is what we, tour operators, are for: to help them understand the unique attractions of Africa and how an all-inclusive safari differs from, say, a vacation in the Carribean."

However, according to Virginia Haynes Montgomery, vice president of travel and tourism for Steinreich Communications, the idea of luxury can actually sell a destination. She said Americans are very tempted by the idea of amenities such as a spa, gym and plunge pools when booking a safari lodge, even though most of the time they will end up not using these amenities.

Said Montgomery: "Once they are in the bush and go on a game drive, that's when they really fall in love with Africa and its beautiful landscapes, sunrises and sunsets, rainbows and seeing wildlife in its natural habitat. With a good guide, they learn a lot about nature and how everything works together."

According to Montgomery, luxury will sell a destination, but it's the adventure that will create the memories.

Source: Is Africa losing its authenticity?

Ghana, Safest Investment Destination – Ambassador Smith

Lt. Gen. Joseph Henry Smith

Peace and stability, the two most important essentials every investor look out for is what Ghana is offering investors who are contemplating investing in Africa; His Excellency, Lt. Gen. Joseph Henry Smith, Ghana's Ambassador to the United States assured Business Executives and Investors in New York on Saturday, May 21, 2016.

Ambassador Smith was speaking at a two-day summit "Bridge to Africa Economic Summit" in New York to explore Investment Avenues in Africa and bring participants up to speed with the latest trends in various industries and markets on the continent.

The summit was attended by high-profile experts and business leaders from Africa and U.S.

The event brought together investors, trade experts, entrepreneurs, manufacturers and industrialists (Small and Medium Scale) to network, market their businesses and brainstorm on the way forward.

Presentations were made by His Excellency, Lt. Gen. Joseph Henry Smith, Ghana's Ambassador to US, Con gressman Eliot Engel, Ranking member of on the House Foreign Affairs Committee, Mr. Timothy H. Marshall, President/CEO of JBRC, INC, Ms. Ruth Hassell-Thompson, New York State Senate and Mayor Richard Thomas, City of Mount Vernon, New York.

Ghana, Ambassador Smith said, for 25 years, has been stable and peaceful after seven uninterrupted elections since 1992, hence the international community's recognition that the country is a model of democracy on the African continent.

He said the country is endowed with abundant natural resources which continue to attract the attention of global business magnates into all sectors of the Ghanaian economy.

He named a few as Gas and oil, hydropower, fruit and vegetable farming, food processing which including fish canning, production of agro chemicals, pharmaceuticals and IT.

Ambassador Smith said the government's on-going privatization initiatives have also opened up a number of sectors for new business partnerships and investment, notably the Banking, Finance, Insurance and Tele-communication sectors.

On energy sufficiency, he said the government is determined to make Ghana the industrial hub of the West African sub-region and hinted that Ghana would be adding 5,000 megawatts to its power distribution by the end of 2017.

This, he said, would create a sub-region self-sufficient with energy and also create a political climate considered very vital for any investor looking for investment destination in Ghana.

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Source: Ghana, Safest Investment Destination – Ambassador Smith

Trouble is brewing in banks across sub-Saharan Africa

Industry

Africa's fading economies risk taking down more lenders with them.

Renee Bonorchis, Bloomberg  |  26 May 2016&nbsp02:05

The continent was once so lauded as the next big investment destination that it lured the likes of ex-Barclays Plc Chief Executive Officer Bob Diamond, who started a business focused on buying African financial-services companies. He was following other lenders tapping into the region's young population, rising wealth and two decades of record growth. Now, Africa's fading economies risk taking down more lenders with them.

"Two years ago the 'Africa Rising' story was probably overblown," said Ronak Gadhia, a research analyst at London-based Exotix Partners LLP. "Those investors with hot money have been disappointed and are withdrawing."

Evidence of the fallout is mounting. Kenya and Zambia are each grappling with a series of bank failures, while lenders in Nigeria and Ghana are struggling with declining profit and depleted capital levels. Deals are also drying up, with initial public offerings and debt sales plummeting, when only last year bankers from Standard Chartered and Deutsche Bank to Citigroup and JPMorgan Chase were criss-crossing the continent wrapping up mandates.

"Financial stability risks have risen across sub-Saharan Africa," Adesoji Solanke, Renaissance Capital's head of research in Nigeria, said by phone on May 20.

'Most at Risk'

A slowdown in China, Africa's largest trading partner, a commodity price rout and an energy shortfall are combining to change the playing field. Add depreciating currencies and widening government budget shortfalls and the outlook dims. The International Monetary Fund cut its 2016 growth forecast for sub-Saharan Africa by 1 percentage point to 3%.

"The markets most at risk are those with highly concentrated sector loans, for example the oil and gas sector in Nigeria," said Andy Bates, head of Africa financial services for Ernst & Young in Johannesburg.

Banks exposed to the copper industry in Zambia and the Democratic Republic of the Congo are also at threat following a 25% drop in the commodity over the past year. In Ghana and Mozambique, rising government debt levels and current-account deficits will "invariably place strain on banks," he said.

Expansion Opportunities

Three Kenyan lenders have collapsed in the past year, mainly because liquidity is dominated by big lenders, and even as the government forecast gross domestic product growth of 6.1% this year. Ghana has six banks struggling to make returns, while Zambian authorities have seized three financial services firms, with another four battling to boost income.

Four Nigerian banks have been interrogated by the country's Economic and Financial Crimes Commission as part of a probe into illegal transactions, and another four have seen profit slump as the continent's biggest economy teeters on the edge of a recession.

For those willing to navigate the risks, expansion opportunities have opened up for buyers looking beyond the current economic slump, with lower valuations for some of the continent's lenders, said Robert Besseling, a Johannesburg-based executive director at business risk consultancy Exx Africa.

"We expect to see further consolidation in the Nigerian banking sector, and a much needed consolidation effort in countries like Kenya, Tanzania, and Ivory Coast," he said.

The exit of Barclays Plc from the continent, mainly to conserve cash by reducing its controlling stake in Johannesburg-based Barclays Africa, is also giving Diamond, 64, the chance to bolster his ambitions of building a pan-African banking group since leaving the London-based lender four years ago.

Diamond's Bid

Diamond has partnered US private-equity giant Carlyle Group to work on a potential bid for Barclays Africa and combine the lender's operations in 12 countries on the continent with Atlas Mara, a venture he started in 2013 and which has since made purchases to gain access to seven markets in the region.

He has yet to convince investors of the strategy and analysts have criticised Atlas Mara for overpaying for deals, with the stock halving in the two years after its initial public offering. A spokesman for London-based Atlas Mara declined to comment to e-mailed questions before the release of first-quarter earnings scheduled for release on Thursday.

Stronger Balance Sheets

"Initially, African banks with stronger balance sheets will be able to benefit, however investors from China, the Gulf, and other Asian countries such as India and Japan will certainly seek to enter new markets too," Besseling said.

The continent's larger banks aren't standing still. Morocco's Attijariwafa Bank is eyeing Kenya, Ethiopia and Nigeria. Banks from South Africa, which hold more capital than regulators require, are also looking for potential targets, with FirstRand, the continent's largest bank by market value, and Old Mutual Plc's Nedbank, both expressing interest in Kenya.

The continent's growth story isn't over, according to Exotix's Gadhia. It has a young and growing population of 1.1 billion and commodity cycles turn. The price of oil has jumped 85% from a 12-year low earlier this year.

"The dedicated money is still in Africa," Gadhia said. "The opportunity remains. It's still under-penetrated with fairly fast-growing economies. People forget what a frontier market really is. You've got to realize there are risks and structural challenges and cycles."

© 2016 Bloomberg

Source: Trouble is brewing in banks across sub-Saharan Africa

2016 BRIDES Best Honeymoons: The Top 10 Resorts in Africa and the Middle East

Photo: Courtesy of Singita Resorts

Picking the perfect honeymoon location is no easy feat — countless destinations, endless hotel options, and finding the ideal spot to suit both you and your new spouse's needs... how do you choose? Well, we've got you covered. Whether you're looking for inexpensive honeymoon ideas, ultra-romantic getaway locales, the trip of a lifetime or a combination of all three, you've come to the right spot. BRIDES teamed up with the A-list agents at Virtuouso, a network of more than 11,000 luxury-travel specialists, to find the most romantic, luxe hot spots in the world. Presenting our 2016 Honeymoon Awards — dive in to see our favorite resorts in Africa and the Middle East!

Photo: Courtesy of One&Only Resorts

1. One&Only Cape Town, South Africa Although it's set on the touristy Victoria and Alfred Waterfront, this property feels like a private retreat, with views of iconic Table Mountain, a spa on its own island, and the only Nobu restaurant in Africa. Expect to work up an appetite shopping, surfing, and cage diving with great whites. Doubles from $689; oneandonlyresorts.com

Photo: Courtesy of Royal Malewane

2. Royal Malewane, Kruger National Park, South AfricaThe key to an epic safari honeymoon? Good planning and a lot of luck. For the best chance at amazing wildlife sightings, book a top-notch lodge—preferably one in a private reserve that allows both morning and nighttime game drives, giving you around-the-clock access to lions, elephants, leopards, wildebeest, antelope, and more. Royal Malewane — located in Thornybush Private Game Reserve on the western border of South Africa's Kruger National Park — is one such ultra-exclusive resort, with just 20 guests (in six Luxury Rooms, two two-bedroom suites, and one six-bedroom villa). The lodge blends a remote African-bush experience with cosmopolitan-style spa amenities and fine dining (expect three-course lunches) — perfect for a honeymoon that's equal parts adventure and relaxation. All-inclusive doubles from $2,752 per person; royalmalewane.com.

Photo: Courtesy of Singita

3. Singita Sabi Sand, Kruger National Park, South AfricaSet in a privately owned 45,000-acre game reserve adjacent to Kruger National Park, Singita Sabi Sand's three lodges are renowned for high concentrations of big game. Ebony Lodge—Singita's first property, which opened in 1993—has stunning decor (think khaki tents, four-poster canopy beds, rattan rugs, and hand-woven baskets), while Boulders Lodge takes its design cues from the surrounding natural landscape (indoor-outdoor living is a central element, allowing guests to take in the tranquil sounds of a nearby river). Castleton, meanwhile, has a traditional African-farmhouse feel, with sprawling grounds that include a swimming pool, tennis courts, six cottages, a country-style kitchen, and in-room accents like leather-topped trunks and watercolor paintings. All-inclusive doubles from $2,450 per person; singita.com.

Photo: Courtesy of Singita

4. Singita Kruger National Park, South Africa All-inclusiveLebombo and Sweni Lodges are two more ultra-luxe Singita properties, set on 33,000 acres of private concession in a remote section of Kruger National Park near the Mozambique border. The area features pristine wilderness and rivers teeming with wildlife (expect animal sightings from your private suite). At Sweni Lodge, honeymooners can sleep under the stars on an elevated deck, surrounded by a dense canopy of trees. At Lebombo, expect to be perched even higher—the 15 loft-style suites are set on a hillside amid densely covered bush. All-inclusive doubles from $2,580 per person; singita.com.

Photo: Courtesy of One&Only Resorts

5. One&Only Royal Mirage, Dubai, UAEOne&Only specializes in five-star resorts, even in the Middle East's biggest city-slash-playground. Set on 65 acres of lush gardens and private beach overlooking Palm Island Bay, expect to spend days sailing, kayaking, windsurfing, water-skiing, and fishing — when not putting a dent on your credit card at the famed Dubai Mall, of course. Doubles from $536; oneandonlyresorts.com.

Photo: Getty Images

6. Sabi Sabi Private Game Reserve, South AfricaLooking for a traditional colonial-style lodge? Try Selati Camp. If your vibe is more one-with-Mother-Nature, there's none better than Earth Lodge. And for those in the market for purist Africa, take your pick between Bush Lodge and Little Bush Camp. The four hallmark properties within Sabi Sabi Private Game Reserve have their own specialty, but no matter where you post up, expect unbelievable game sightings on four-hour drives and delicious African barbecue for dinner. All-inclusive doubles from $575 per person; sabisabi.com.

Photo: Courtesy of Singita

7. Singita Grumeti, Serengeti National Park, TanzaniaWhether dining under stars and sleeping under tented canvas, Singita Grumeti's four Tanzanian lodges are all about being one with nature—which is exactly the point, since they're located smack-dab in the heart of the Serengeti, home to Africa's Great Migration. Choose among Serengeti House, Faru Faru Lodge, Sabora Tented Camp, or Sasakwa Lodge, each of which has its own unique (and sleek) aesthetic, but all of which are the stuff honeymoon dreams are made of. All-inclusive doubles from $1,210 per person; singita.com.

Photo: Courtesy of Amanjena Resort

8. Amanjena, Marrakech, MoroccoFew places are as romantic as Northern Africa, with its desert landscapes, bustling markets, mouth-watering cuisine (the tagines are not to be missed), and over-the-top luxury resorts. The best among them: Amanjena. Like all Aman resorts, Amanjena is a quiet slice of paradise. Each corner of the resort is planned with meticulous precision (founder Adrian Zecha has an eye for detail like none other), starting with the marble-filled entryway's traditional Arab bassin, a giant pool-like structure that was historically used by indigenous cultures to collect mountain runoff. Spend your days haggling with street vendors in the city's Djemaa el Fna square, or hang at the resort, relaxing by the pool or taking a hand-held walk through the stunning oasis, filled with date palms and olive trees once owned by a royal family. Doubles from $638; aman.com.

Photo: Courtesy of Burj Al Arab

9. Burj al Arab Jumeirah, Dubai, United Arab EmiratesYou'd be hard pressed to find a more over-the-top honeymoon destination than Dubai. And the "seven-star" Burj al Arab Jumeirah—set on a man-made island in the Arabian Gulf, with 202 rooms—is definitely the most insane (the 25th-floor Royal Suite starts at $8,900 per night). Picture a place covered in chandeliers, 24K-gold leaf, thirty different types of marble, and custom-made carpets from South Africa and India. And that's just the interior design. In terms of amenities, guests can expect four swimming pools, nine restaurants and bars, a spa and fitness center, a private beach—oh, and a helipad—if you really want to arrive in style! Doubles from $2,700; jumeirah.com.

Photo: Courtesy of Londolozi Game Reserve via Facebook

10. Londolozi Game Reserve, Kruger National Park, South AfricaFamily-run for more than 80 years, this five-lodge reserve helped pioneer responsible ecotourism on the Continent. With nearly 35,000 acres of protected bushland within Kruger National Park, expect accommodations that include modern, earth-toned suites (decorated with a Ralph Lauren-esque hand); expansive wooden decks (on which you can take your picture-perfect sundowner), and plunge pools (for a midday cool down from the steamy African heat). All-inclusive doubles from $699 per person; londolozi.com.

Subscribe now for the best wedding dresses, advice, and big-day inspiration. Or pick up the BRIDES June/July 2016 issue, on newsstands now and available for download here.

Source: 2016 BRIDES Best Honeymoons: The Top 10 Resorts in Africa and the Middle East

International Destinations That Won't Break The Bank

There are 196 countries in the world, but most travellers will only see a small fraction of them in their lifetime. It doesn't have to be this way. While international travel can be more expensive than domestic travel, a bit of research, timing and luck can help lower the cost of trips abroad, meaning your suitcase doesn't have to collect dust this year. Keep your travel dreams alive with destinations from capital cities to off-the-beaten-path locales where the Canadian dollar is holding its own. Cheapflights.ca highlights ten that won't break the bank.

South AfricaImage: Loren Kerns,V & A Waterfront, Cape Town, South Africa via Flickr CC BY 2.0

Getting to South Africa from Canada might be a long journey, but the loonie has a pretty good edge over the South African rand making it a great time to book a surprisingly budget-conscious trip to an epic destination. Discover a revitalized Johannesburg (complete with thriving arts scene), head to laid back, yet cosmopolitan Cape Town and hike or cable car your way to the top of Table Mountain, or hit the beach in Durban and make time to spot the Big Five (lion, elephant, rhino, cape buffalo, leopard) on a safari.

JapanImage: Moyan Brenn, Kyoto via Flickr CC BY 2.0

Japan is another far-flung destination where your loonie can go far. You won't be paying backpacker prices, but, if you go this year, you can stretch your travel dollar a lot further as $1 gets you around 84 yen. Japan is a multifaceted destination with so much to see and do in terms of history, culture, food, fashion and nightlife. History buffs will want to head to Kyoto for the impressive 17 UNESCO World Heritage Sites as well as numerous temples and shrines. Foodies should take note that UNESCO added Japanese cuisine to its Intangible Cultural Heritage List, an honour shared only with French cuisine. And there are plenty of places to taste the unique food on the cheap. In addition, you can bar hop and shop your way through buzzing Tokyo, hike Mount Fuji and make a visit to the island of Naoshima with its many art galleries, sculptures and public installations.

IcelandImage: Moyan Brenn, Iceland via Flickr CC BY 2.0

With the Canadian dollar currently having a lead on the krona, plus discount carrier WOW air now offering some low- (and even a few extremely low) priced seats on flights to Reykjavik, a trip to Iceland won't break the bank this year. Spend some time getting to know the country's capital with its plethora of bars, shops, restaurants and cafes, take a dip in the famed Blue Lagoon (children ages 2 - 13 are free), witness the stunning scenery in one of Iceland's three national parks, go whale watching, or get up close and personal with a glacier (Iceland has some of the largest glaciers in Europe). If you go during the right time, you might get lucky and spot the northern lights, one of Mother Nature's stunning free gifts to the world.

ArgentinaImage: Kevin Dooley, Buenos Aires street photography via Flickr CC BY 2.0

With a current exchange rate of $1 to 11 Argentine pesos, the loonie can get you far in Argentina should you be craving a South American adventure. Start in Buenos Aires for a European vibe (minus the European prices) and take a tango lesson (or just be mesmerized by a tango show), zip to Mendoza to taste some amazing wines and snap some selfies by wondrous Iguazu Falls or explore the area further via a boat tour.

Czech RepublicImage: Thomas Cat, Prague Old Town via Flickr CC BY 2.0

While the Czech Republic might be part of the EU, it doesn't use the euro. And your loonies will convert pretty favorably to the local currency, the Czech Koruna. Stick to mid-range hotels (there are plenty to choose from) or even opt to rent an affordable apartment on a site like Airbnb where you can also save money by preparing some of your meals in. Be sure to take advantage of cheap beer between checking out the awe-inspiring architecture of Prague's Old Town, castles in Moravia or laid back Plzeň, where you can sample some Pilsner Urquell beer.

PolandImage: Gabriela Fab, Warsaw via Flickr CC BY-SA 2.0

Like the Czech Republic, Poland still uses its own currency rather than the euro, and the loonie can take you farther here than in most European countries. If you've never thought about Poland as a vacation destination you might want to reconsider. Krakow and Warsaw offer a balance of rich history and a cosmopolitan pulse. Get outside these cities and you'll have your choice of mountains, lakes, beaches and forests. While it may seem like an unconventional choice, Poland has something to please almost anyone.

ThailandImage: Lubo Jurik,Tonsai Beach, Krabi, Thailand via Flickr CC BY-SA 2.0

The Canadian dollar, no matter how low it dips, always seems to go the distance in Southeast Asia, especially once you're on the ground. Thailand, in particular, is a great destination for budget-friendly travel with your biggest expense being the plane ride over. Getting around is easy and affordable. Food and beer are exceptionally easy on the wallet and accommodations come in a varied range, from hostels and guest houses to larger hotels and resorts. Bask on a beach in the south of the country, shop and eat your way through bustling Bangkok or head north to Chiang Mai and Chiang Rai for a more laid back pace and the chance to do some jungle trekking.

To read about other international destinations where the Canadian dollar goes a little farther, go here.

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Source: International Destinations That Won't Break The Bank

Relatively speaking, African growth should be robust over the next decade

by Michael Lalor  2016-05-24 05:38:34.0

SOME recent reports suggest investors have lost confidence in Africa as an investment destination. This appears to be largely as a result of the recent economic slowdown in some of the key African economies.

Indeed, the International Monetary Fund (IMF) recently revised its projected growth rate for sub-Saharan Africa for 2016 down again to 3% — a year ago it was projecting 6.1% growth for 2016. This means that the region will experience its lowest growth rate in 15 years.

The reality, too, is that economic growth across the region is likely to remain slower over the next few years. The main reasons for a relative slowdown are not unique to Africa and are the same as those weighing down the global economy: a general slowdown in emerging market economies, and, in particular, the rebalancing of China's economy; ongoing stagnation in most developed economies; lower commodity prices and higher borrowing costs.

A key word here, however, is "relative". Although growth in the region has slowed, sub-Saharan Africa will remain the second-fastest-growing region in the world for the foreseeable future, after emerging Asia. In other words, slower growth does not equate to no growth, and certainly does not signal a cyclical decline in most African economies.

Our view remains that Africa's rise over the past 15 years is real; what we have witnessed has been a structural evolution rather than cyclical change that has marked previous boom and bust periods in Africa's post-colonial history. Although exports from many African economies remain commodity-orientated, private consumption has become a key growth driver, as has investment in infrastructure. The services sector constitutes an increasingly significant proportion of most African economies, and, while still small, the role of (and investment into) manufacturing is increasing.

This process of structural evolution — as with anywhere else in history — is likely to take decades. However, most African economies are in a fundamentally better place today than they were 15 to 20 years ago, and overall growth is likely to remain robust relative to most other regions over the next decade. Structural evolution will continue, and, when conditions improve globally, much of Africa will be well positioned to accelerate the growth momentum once again.

But will the relative slowdown in many African economies negatively effect investment? Some recent reports suggest that investors have lost confidence in Africa as an investment destination. That view does not align with our own research and experience.

Despite greater levels of uncertainty, we do not anticipate that this will have a fundamental effect on the number, value or quality of foreign direct investment (FDI) projects in Africa. There are two key factors supporting our view:

• A consistent theme of our Africa attractiveness surveys since 2010 has been the wide perception gap between investors who already have operations in Africa and those who do not. Investors already doing business in Africa, who understand the real risks and opportunities, remain overwhelmingly positive about Africa's prospects and potential. Conversely, those not doing business in Africa have remained consistently and overwhelmingly negative. If anything, we would expect this perception gap to widen over the next few years (and to feed the misguided view that investors are losing confidence in Africa).

• Our analysis of FDI focuses specifically on greenfield and significant brownfield projects, which are, by their nature, focused on the long term. These are not investors chasing a quick profit; investments are generally initiated by people already doing business in Africa and who understand the business environment; they are generally investing in the longer-term potential of many African markets, and will not be swayed by shorter-term economic vagaries.

Supporting our view on Africa's longer-term investment outlook, FDI flows to Africa remained robust in 2015:

• FDI project numbers increased 7% year on year;

• The capital value of those projects was down year on year — from $88.5b in 2014 to $71.3b in 2015 — but this was still higher than the 2010 to 2014 average of $68bn.

• Similarly, jobs created as a result of these FDI projects were down year on year, but were also ahead of the average for 2010 to 2014.

Significantly, the year-on-year increase in FDI project numbers in Africa in 2015 occurred in a context in which the total number of FDI projects globally dropped 5%. In fact, Africa was one of only two regions in the world in which there was growth in the number of FDI projects over the past year.

However, from an investment perspective, the next few years may be challenging. Not because the opportunities are no longer there, but rather because these opportunities are likely to be more uneven than they have been over the past five years. Given the scale, complexity and fragmented nature of the African continent, making well informed choices about which markets to enter when, and via which mode, will be more critical than ever.

At the same time, the emphasis of most organisations with a growth strategy in Africa is likely to shift from rapid expansion to consolidation and optimisation of African operations. This should not, however, be read as a signal that investors are losing confidence in African markets; it is instead the next logical phase of growth for the many investors that are committed to and continue to believe in Africa's longer term prospects.

• Lalor is lead partner at EY's Africa business centre

Picture: ISTOCK

SOME recent reports suggest investors have lost confidence in Africa as an investment destination. This appears to be largely as a result of the recent economic slowdown in some of the key African economies.

Indeed, the International Monetary Fund (IMF) recently revised its projected growth rate for sub-Saharan Africa for 2016 down again to 3% — a year ago it was projecting 6.1% growth for 2016. This means that the region will experience its lowest growth rate in 15 years.

The reality, too, is that economic growth across the region is likely to remain slower over the next few years. The main reasons for a relative slowdown are not unique to Africa and are the same as those weighing down the global economy: a general slowdown in emerging market economies, and, in particular, the rebalancing of China's economy; ongoing stagnation in most developed economies; lower commodity prices and higher borrowing costs.

A key word here, however, is "relative". Although growth in the region has slowed, sub-Saharan Africa will remain the second-fastest-growing region in the world for the foreseeable future, after emerging Asia. In other words, slower growth does not equate to no growth, and certainly does not signal a cyclical decline in most African economies.

Our view remains that Africa's rise over the past 15 years is real; what we have witnessed has been a structural evolution rather than cyclical change that has marked previous boom and bust periods in Africa's post-colonial history. Although exports from many African economies remain commodity-orientated, private consumption has become a key growth driver, as has investment in infrastructure. The services sector constitutes an increasingly significant proportion of most African economies, and, while still small, the role of (and investment into) manufacturing is increasing.

This process of structural evolution — as with anywhere else in history — is likely to take decades. However, most African economies are in a fundamentally better place today than they were 15 to 20 years ago, and overall growth is likely to remain robust relative to most other regions over the next decade. Structural evolution will continue, and, when conditions improve globally, much of Africa will be well positioned to accelerate the growth momentum once again.

But will the relative slowdown in many African economies negatively effect investment? Some recent reports suggest that investors have lost confidence in Africa as an investment destination. That view does not align with our own research and experience.

Despite greater levels of uncertainty, we do not anticipate that this will have a fundamental effect on the number, value or quality of foreign direct investment (FDI) projects in Africa. There are two key factors supporting our view:

• A consistent theme of our Africa attractiveness surveys since 2010 has been the wide perception gap between investors who already have operations in Africa and those who do not. Investors already doing business in Africa, who understand the real risks and opportunities, remain overwhelmingly positive about Africa's prospects and potential. Conversely, those not doing business in Africa have remained consistently and overwhelmingly negative. If anything, we would expect this perception gap to widen over the next few years (and to feed the misguided view that investors are losing confidence in Africa).

• Our analysis of FDI focuses specifically on greenfield and significant brownfield projects, which are, by their nature, focused on the long term. These are not investors chasing a quick profit; investments are generally initiated by people already doing business in Africa and who understand the business environment; they are generally investing in the longer-term potential of many African markets, and will not be swayed by shorter-term economic vagaries.

Supporting our view on Africa's longer-term investment outlook, FDI flows to Africa remained robust in 2015:

• FDI project numbers increased 7% year on year;

• The capital value of those projects was down year on year — from $88.5b in 2014 to $71.3b in 2015 — but this was still higher than the 2010 to 2014 average of $68bn.

• Similarly, jobs created as a result of these FDI projects were down year on year, but were also ahead of the average for 2010 to 2014.

Significantly, the year-on-year increase in FDI project numbers in Africa in 2015 occurred in a context in which the total number of FDI projects globally dropped 5%. In fact, Africa was one of only two regions in the world in which there was growth in the number of FDI projects over the past year.

However, from an investment perspective, the next few years may be challenging. Not because the opportunities are no longer there, but rather because these opportunities are likely to be more uneven than they have been over the past five years. Given the scale, complexity and fragmented nature of the African continent, making well informed choices about which markets to enter when, and via which mode, will be more critical than ever.

At the same time, the emphasis of most organisations with a growth strategy in Africa is likely to shift from rapid expansion to consolidation and optimisation of African operations. This should not, however, be read as a signal that investors are losing confidence in African markets; it is instead the next logical phase of growth for the many investors that are committed to and continue to believe in Africa's longer term prospects.

• Lalor is lead partner at EY's Africa business centre

Source: Relatively speaking, African growth should be robust over the next decade

Uganda named one of the top tourist destinations in the world

Amid hefty aviation costs and acute corruption, Uganda is turning her tourism sector around. Uganda was recently selected as one of the top 10 International tourist destinations at the inaugural Global Tourist Destination Carnival held in Haikou,China. CNBC Africa's Arnold Segawa spoke to Stephen Asiimwe, CEO of Uganda Tourism Board about the sector's prospects.

Source: Uganda named one of the top tourist destinations in the world

Travel — Destination: South Africa

'A thrill to behold'

By Patty Peavler

We've all used the phrase, "It was the trip of a lifetime," but I've experienced a trip so informative and life-enriching I doubt I will have another as grand.

I began a journey April 12 to South Africa, Zimbabwe and Botswana with customers from Farmers Bank and several from other parts of the country. We were under the care and guidance of Ntaba African Safaris, which is the Frankfort-based company started ten years ago by Stella and Robin Mountain. Both are South African natives whose name Mountain is "Ntaba" in Zulu.

The journey began by flying from Louisville to Dulles near Washington, D.C., where we boarded a South African Airways jet for Johannesburg via Ghana. Here the  plane refueled and a fresh crew and pilots took over after seven hours coming across the Atlantic. Five hours later we were collecting our bags to go through customs, then boarding another flight which took us from Johannesburg to Cape Town. Here at the bottom of Africa where the Atlantic and Indian Oceans meet, penguins frolic in the surf and bray with a donkey-like sound as they waddle on the shore. The countryside is heavenly.

Perfect weather next day found us riding the revolving cable car up Table Mountain for a view of land and sea. What an expansive vista can be enjoyed from the top of this rock. This area is known as a biodiversity hotspot with more than 2,200 species of plants, including a large number of protea found nowhere else in the world. Next stop, a winery where we sampled an assortment of cheeses paired with different wines.

Beauty at every turn

Not being a lover of spirits, I parked myself near two ladies on a bench outside to enjoy the sun and munch a few olives purchased at the attached market. Soon several of our group joined in the olive feast as did our bench buddies, both delightful South Africans out to enjoy a day in the country. Cape Town is home to Kristenbousch  Gardens, a UNESCO World Heritage Site featuring native plants, running streams and so many birds.

Luckily we started at the top and worked our way down through twisting paths to the bottom of the garden, which is beautiful at every turn.

Next day we flew to Kapama, a 34-thousand acre private game preserve, which adjoins Kruger National Park. Here spacious, well-appointed rooms and abundant buffets provided a touch of luxury. Arising early we were on our way to see the animals. Impala by the herds greeted us first but soon we were watching a giraffe drinking from a waterhole.

In a matter of minutes three scampering hyenas arrived to play in the water. They chased each other and sniffed the ground giving no mind to the giraffe, who paid them no more attention than to our truck parked nearby. In the bush everything knows its place and those animals near the top of the food chain have no reason to fear.

Feeding time

Everyone wanted to see elephants, which proved elusive that morning.

After several hours zipping along rutted dirt tracks in our four wheel drive Toyotas, four trucks filled with our party came together for coffee, hot chocolate and snacks served by the trackers. Each truck was driven by a ranger, a young man skilled in driving and possessing loads of information about the animals and trees. Though they are keen-eyed spotters, the real stars of the safari are the trackers. These men, some not so young, perch on the front left fender of the land rover sitting on a small seat equipped with two handles. No seatbelts for them — just a good grip. Using hand signals to alert the ranger to low-hanging branches and the presence of wildlife, they are truly eagle-eyed. Speaking of eagles, we saw fish eagles that from a distance are a dead ringer for the bald eagle and an assortment of ducks, herons and storks.

About 10 a. m., we returned to the lodge where an expansive breakfast awaited. At three, we gathered for tea before starting out on our afternoon safari. This time we hit pay dirt: a leopard had taken down an impala. Our ranger said leopards usually hunt at night, so it was a rare sight in the afternoon. The leopard was eager to take the kill up a tree where he would be safe from lions and hyenas both capable of stealing the carcass.

First, he had to get past at least a hundred impalas standing in a clump and making loud grunting noises. These served as the impalas' way of showing their displeasure. More importantly, the noise might actually attract a lion or hyena who would run the leopard off and take the meat for his own. What we saw soon after was another amazing sight.

Blaze of orange and red

A group of female lions had killed a warthog. While the lioness who made the kill ate first, the others waited their turn. The big cats who had already eaten lay in a stupor. So full were they it was too much for them to do any more than open their eyes to see our vehicle before going back to sleep. We were very close but they were not concerned. Our ranger explained that as long as the nine of us stayed seated and quiet, the lions had no idea we were actually juicy tidbits.

They saw only the truck and were not interested at all. Later, we watched as a male lion ate his fill of some unfortunate creature while the females who had done the hunting waited none too patiently for him to finish so they might feed. Even the cubs could not resist joining their mothers in some growling to show their displeasure.

As the sun went down in a blaze of orange and red, our group met up at a pre-appointed place for some nibbles and drinks. It is a thrill to behold the Southern Cross and the evening star, which is Jupiter, from the darkened plains. Our trackers broke out large flashlights whose beams they swept back and forth to see what game might be near.

The tracker uses the light to find the animals but does not shine the beam at them as this will temporarily blind them. Sight is very important to keeping  ahead of predators. Back at the lodge we enjoyed a barbecue of local favorites as well as chicken, fish and many side dishes. We ate with our safari group, the ranger joining us to tell stories of recent adventures.

Fit for a queen

Leaving Kapama, we returned to Johannesburg for an overnight near the airport. Next morning we were off to Zimbabwe and the wonder that is Victoria Falls. The Zambezi river is wide and shallow and teeming with hippos, elephants and lots of birds that we enjoyed seeing on a sunset cruise. And what a sunset it was … fiery and crimson colors melted into streaks of pink and all in a few minutes.

No expanse of water I had ever seen prepared me for the wonder of Victoria Falls, with water rushing hundreds of feet into a deep gorge, one of seven the river has dug. I was thrilled to finally ride a helicopter, this one taking us along the river and falls for some wonderful views of just how massive the water is. We were fortunate enough to be at the falls for the full moon. Victoria Falls and our own Cumberland Falls are the only two places on earth to see a moon bow.

Though the night was overcast, see it we did.

On the far bank of the Zambezi sits Livingstone, Zambia, a town named for that great explorer who came to Africa as a missionary.

We were fortunate to hear a local historian tell of the extraordinary life of Dr. Livingstone who suffered from malaria many times and whose wife and several children died in Africa. Though Livingstone came to Africa to bring Christianity, his greatest contribution was to report back to England on the slave trade.

So appalling were his accounts, England banned slavery soon after Livingstone made known what was happening. Of course, Dr. Livingstone's meeting with American newspaper reporter, Henry Stanley, resulted in the famous greeting, "Dr. Livingstone, I presume."

A large statue of Livingstone stands on the bank of the river very near the falls he named for his queen.

We enjoyed seeing hippos, the "river horse," who spend most of their time in water eating grasses and staying submerged — except for those noses, eyes and ears. They don't swim rather walk on the river bottom. Though innocent-looking, many deaths each year are caused when surfacing hippos overturn small fishing boats.

Elephants too enjoy the water, spraying each other with their trunks and sometimes walking to low-lying grassy islands near the middle of the river.

Botswana was our last stop. The Chobe National Park and Chobe river are a wonder of wildlife.

Crocodiles bask open-mouthed on the river bank while zebra, impala and buffalo cautiously drink nearby.

The Chobe is shallow and so wide. Waving grasses and seas of water lilies shelter hippos. Birds are everywhere.

The river is the dividing line between Botswana and Namibia, both countries have safari lodges and riverboats taking ever more tourists to see the animals.

All too soon, we were boarding an airplane in Kasana, Botswana for a flight to Johannesburg, the first leg toward going home.

We arrived back in the U.S. at Dulles, then a connecting flight to Atlanta before our last stop in Louisville.

Though getting there is long, the time spent seeing the beauty of the land and the wonderful animals makes it a most worthwhile trip.

I still cannot believe I sat only a few feet from a grazing rhino, saw baboons swinging in the trees and watched as a cheetah lazily walked up the road in front of us, paying only a few backward glances before bounding into the bush.

Go see South Africa. You won't believe your eyes.

Patty Peavler is a Frankfort resident and retired from Farmers Bank.

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Source: Travel — Destination: South Africa

Building on growth – Temel Kotil CEO, Turkish Airlines

By Onome AmawheTemel Kotil strives to run an efficient airline company. He has been instrumental to the profitability of one of the world's leading carriers. Turkish Airlines has remained on the cutting edge in the global aviation industry as seen its emergence as ''Best airline in Europe" for the fifth consecutive year, based on the rating of Skytrax, an acknowledged name associated with air travel excellence.

As a build on to this feat, one of Kotil's key strategic priorities is to further improve the airlines' passenger satisfaction:  "We have been working tirelessly to improve on the quality of our service. And we have also been investing heavily to consolidate our place in the industry through our range of productsand further improve on our brand awareness and its value.

Investment in the brand

Temel Kotil

"Our investment in the brand in itself made us emerge as the second best top of the mind recall brand amongst airline brands for the year 2016". Kotil finds that it's one thing for an airline company to grow, but it takes a lot more to manage that growth.

His description of the growth management of Turkish Airlines is steeped in the company's consistent performance in financials and investments:  "The most important factor for growth is to make it a sustainable one.

"Our bottom line performance since 2002 has been very healthy and profitable with about 25% EBITDAR margin. And that has really empowered us to invest in new aircrafts and personnel efficiency thus helping to improve our operationalefficiency". Turkish Airlines was established in 1933 as part of the Turkish Ministry of defense with only five aircrafts. In the beginning, the carrier commenced with domestic routes. In 1947, the first international route from Ankara to Istanbul and then Athens was launched.

The ensuing years saw the company operating more international routes leading to an increase in fleets.  Today, the airline flies to more countries than any other airline and is the world's fourth largest carrier in terms of destination served. As a member of the Star Alliance, the airline company has code share agreements with about 40 other airlines.

Currently, the airline company boasts the largest and youngest of fleets in Europe actively operating 286 aircrafts (passenger and cargo) with an average of around 6.7 years.  The company's commitment to maintaining a high level of quality is the result of hard lessons from its past.  The airline's widespread network spans 289 destinations in 108 countries and is considered to operate one of the largest networks in the world with an impressive frequency rates.

Turkish Airlines commenced Nigeria operations in 2006 on the Lagos -Istanbul route.  Shortly after the debut, the company realized the need to add more frequencies then increased capacity flying three routes-Lagos, Abuja and Kano.

The airline also increased its operation offering seven daily flights from Abuja.  As with many international airlines operating on the Nigerian airspace, Nigeria is one of the most strategic routes for the company and it recently opened an outlet in Abuja making it the third local destination in Nigeria after Lagos and Kano. Port-Harcourt is the next prospect in the offing for the four star carrier.

Temel Kotil, who was named Turkey's best performing CEO for the year 2015, is clearly enthused by the fact that more than any other airline in the world Turkish Airlines offer the largest number of destination choices for its passengers: "That is why we were rated as the best European airline connecting Nigeria to world". Connecting Nigeria to the world comes with its own challenges.  Kotil explains that some of the issues the airline faces in its Nigeria operations arethose of weather conditions as well as runway closure especially in Abuja.  He adds that the weather challenge is similar to what it finds in other countries where it operates particularly on the African routes. Nevertheless, the airline is inlove with Africa as can be seen in its holistic preference for the continent in terms of destination:

"We love Africa because our operations here are by far more than those of any other non-African airlines. I mean, operating from 48 African airports in the 31 countries in our network clearly validates our claim. More than that, we offer the largest number of destination opportunities to Africa bound passengers. And we have even taken further steps to includeMauritius and Madagascar to our list of destinations. In 2015, we had about 14% capacity growth on our Africa routes, flying more than 2.5 million passengers to Africa.  Our projection for 2016 is to achieve 27% capacity growth the Africa routes.

Future destinations

"Seychelles, Luanda, Juba, Conakry, Aswan, Luxor are some of our future destinations. Currently 10% of our total revenue is from Africa.  And the continent will continue to be a major part of our network in the future". The International Air Transport Association (IATA) says Africa remains one of the only three regions to record positive year-to-date growth in 2015. According to IATA, demand is holding up despite the underperformance of Nigeria and South Africa. Analysts think that what also fuelled growth in Africa is the continent's growing middle class and low oil price.  Others are of the opinion that the African airlines sector has a lot of potential for growth but it is definitely not growing enough.

The indices are not what they expected considering IATA predictions. Kotil's own thoughts on the African aviation industry are hinged on globalization and the spread of science:  "Africa was hugely unaware of the developments that took place in Europe and America prior to the age of information technology. As soon the continent got in the groove, developments started happening and that is what led to the explosion in human potentials.   Today, African countries are able to establish their own competitive flag carriers and aviation companies.  Airlines with locational, financial and demographical benefits now utilize their competitive advantages.

"And from this point of view, it is safe to say that African airline companies have learned the know-hows through operational experience of the global aviation industry. And these kind of positive improvements make us very happy.  With Turkish Airlines having the largest network in Africa, we believe that the African market has great potentials for investment and we believe that Africa will be rising star of the new era with its fast growing economy and population. Currently, the African aviation industry is relatively small when compared to those of Europe, America and Asia. But industry forecasts tell that passenger demand to Africa  will triple  in 20 years' time".

The demand on the African route has always bred competition amongst foreign operators and because of the capital-intensive nature of the airline business, fixed costs and barriers to exit are quite high.

Support of aviation activities

Speaking on the competitiveness of Turkish Airlines on the continent, Kotil says: "With the advantage of our IST Hub and a well-fitting fleet, we connect the African continent to the highest number of destinations in the world than any other airline; thus making the continent to benefit from our competitiveness due to support of aviation activities on the continent.  And our emergence as the best airline in Europe means we offer the best product to the market more than all of the existing European carriers".

In recognition of its competitiveness amongst global airline companies, Turkish Airlines launched an impressive campaign, Widen Your World thatemphasizes the global network of the airline. In the campaign, Kobe Bryant( American basketball player)  and Lionel Messi (Argentine professional footballer)  resume their friendly rivalry by trading "selfies" from exotic locations, such as the Red Square in Moscow; The Great Wall of China; the Maldives; Bangkok; and Mount Kilimanjaro, all of which are destinations Turkish Airlines flies to.

"The campaign strategy aims to develop new applications at each phase of the travel, to offer memorable surprises to passengers and to bring them together through innovation and distinctive products and services thatmakesthem feel special and cherished", Kotil says.

BIO BRIEFS

Birth Place\ Date: Rize, Turkey, 1959Education: 1983: Graduated from the Aeronautical Engineering Department at Istanbul Technical University1986: Received Master's degree in Aircraft Engineering from the University in Ann Arbor, Michigan1987: Master's degree in Mechanical Engineering, University of Ann Arbor, Michigan1991: Doctorate in Mechanical Engineering, University of Ann Arbor, Michigan.

Source: Building on growth – Temel Kotil CEO, Turkish Airlines