Custom Search

Tag Archive | "survey"

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Morningstar Announces Findings from Third Global Fund Investor Experience Report; United States Scores the Best and South Africa the Worst

Posted on 15 May 2013 by Africa Business

About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of products and services for individuals, financial advisors, and institutions.

 

CHICAGO, May 15, 2013 /PRNewswire/ — Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, today released its Global Fund Investor Experience report, which assesses the experiences of mutual fund investors in 24 countries across North America, Europe, Asia, and Africa. Morningstar’s evaluation of investor-friendly practices in fund markets worldwide identified the United States as the best market for fund investors based on criteria such as investor protection, transparency, fees, taxation, and investment distribution, while South Africa scored the worst. This year’s report also includes first-time reviews of fund investor experiences in Korea and Denmark.

“We launched the first Global Fund Investor Experience report in 2009 to examine the treatment of mutual fund shareholders in 16 countries with the goal of advancing a dialogue about best practices worldwide. Since that time we’ve had numerous conversations with regulators and investment companies in multiple countries about their existing policies and ways to improve,” John Rekenthaler , vice president of research for Morningstar, said. “Working with our analysts around the world, we expanded our survey to 24 countries this year. We hope our survey findings will help investment companies, distributors, and regulatory bodies around the globe continue to focus on improving the environment for investors.”

Morningstar researchers evaluated countries in four categories: Regulation and Taxation, Disclosure, Fees and Expenses, and Sales and Media. Morningstar weighted the questions and answers to give greater importance to factual, empirical answers as well as the high-priority issues of fees, taxes, and transparency. Morningstar assigned countries a letter grade for each category and then added the category scores to produce an overall country grade. The report’s authors gathered information from available public data and from Morningstar analysts. Below are the overall country grades, from highest to lowest scores and then in alphabetical order:

United States:  A

Sweden: B-

Korea:  B+

Switzerland: B-

Netherlands:  B

United Kingdom: B-

Singapore:  B

Australia: C+

Taiwan:  B

Belgium: C+

Thailand:  B

Canada: C+

China:  B-

France: C+

Denmark:  B-

Italy: C+

Germany:  B-

Japan: C

India:  B-

Hong Kong: C-

Norway:  B-

New Zealand: C-

Spain:  B-

South Africa: D

The United States garnered the highest score for the third time with a top grade of A. While the United States is not a leader in the area of Regulation and Taxes, it has the world’s best disclosure and lowest expenses. South Africa, in contrast, received the lowest grade largely because of poor disclosure practices. The new countries reviewed in this year’s report—Korea and Denmark—earned grades of B+ and B-, respectively.

New Zealand showed the largest improvement from the 2011 study rising to a C- from a D- because of positive regulatory changes and an encouraging expansion of disclosure requirements. Morningstar anticipates that the New Zealand government’s ongoing review of all fund regulations will result in even more improvements and investor-friendly practices in the years to come.

Among the key findings of the study:

  • Bans on advisor commissions are spreading around the world. In the UK, the Retail Distribution Review (RDR) has already brought such a ban into effect, while similar moves are underway in Australia and the Netherlands.
  • While the U.S. and European fund markets are roughly similar in size, U.S. investors pay significantly lower fees than European investors.
  • Fund companies in most countries continue to treat the names of portfolio managers as trade secrets, leaving investors no way to determine who is responsible for a fund’s success or failure.
  • Australia and New Zealand do not require funds to publicly disclose full portfolio holdings, while France, South Africa, Korea, and the UK only disclose holdings to current owners.

To read Morningstar’s complete Global Fund Investor Experience report, click here.

SOURCE Morningstar, Inc.

Comments (0)

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

SA tooling and Manufacturing tackle revival challenge

Posted on 14 May 2013 by Africa Business

South Africa’s tooling and manufacturing sectors are aggressively tackling skills challenges, and modernising and growing their operations, with a view to taking on global manufacturing giants.

AfriMold, is the 4th annual manufacturing trade fair and conference for the design, precision engineering & machining, automotive component, tooling, tool making, production and application development sectors, and is taking place 4 – 6 June at the NASREC Expo Centre in Johannesburg.


Speaking ahead of this year’s AfriMold manufacturing trade fair from 4 – 6 June at the NASREC Expo Centre in Johannesburg, key industry players said South Africa’s manufacturing sector is experiencing a new spirit of revival, on the back of an aggressively modernising and growing tooling sector.

Dirk van Dyk, CEO of the National Tooling Initiative Programme, and representative of the Tooling Association of South Africa (TASA), noted that statistics released by ISTMA (International Specialized Tooling and Machining Association at the recent World Tooling Conference in Toronto, Canada, indicate that up to 50% of any manufactured component’s cost competiveness is governed by Tooling. However, the local TDM sector only provides approximately 20% of the local manufacturing sector’s tooling requirements. “The opportunity is there for the local TDM sector to increase this percentage significantly,” he said.

“There are more than 500 local Tool, Die and Mould manufacturing companies involved in local support of the manufacturing value chain ranging from 1st to 4th tier suppliers. The local tooling sector is gearing up for growth, presenting a positive outlook for manufacturing, and with it – job creation.”

Skills development is a key component of the tooling and manufacturing industry’s growth plans, says industry heads.

Van Dyk said the TDM Powered Pilot project, which started in 2010 as part of the turnaround strategy for the distressed tooling industry, has entered its 4th year of piloting with 408 students on Level II and Level III of the Apprenticeship Programme at 12 FET institutions in the country.

The National Skills Fund has allocated funding to Instimbi through the dti to fund another apprenticeship programme with 650 students at 12 FET institutions in the country.  It is envisaged that these students should be placed by May 2013.

In addition, enterprise development is reaching companies country wide through benchmarking exercises (based on international best practice and comparison to peers) to guide local Tool, Die and Mould manufacturing companies towards increased competiveness. Intervention projects are launched to aid companies on this journey.  A new round of benchmarking will start with 30 companies in April 2013.

Coenraad Bezuidenhout, Executive Director of Manufacturing Circle, says the Manufacturing Circle is launching two important initiatives to support government’s local procurement initiative and set an important example to the private sector, and to broaden its membership. The organisation plans to rapidly increase the approximately 200 000 manufacturing jobs that the Circle membership gives direct representation to today, and to include many more smaller and medium-sized manufacturers in the Manufacturing Circle. On 16 May, the Manufacturing Circle will launch its 2013 Q1 Manufacturing Circle Quarterly Survey on manufacturing business conditions, with a new component that will provide an indicator of the measure to which manufacturers procure locally, as well as the degree to which government’s local procurement impacts on manufacturers.

Meanwhile, the automotive sector, seen as a potentially promising growth area for local manufacturing, is seeking greater engagement with local organisations.

Roger Pitot, Executive Director of the National Association of Automotive Components and Allied Manufacturers (NAACAM) says: “We must double vehicle production volumes to over a million, and we must significantly increase local content from the present dismal 35%.”

Pitot says NAACAM members employ almost 50,000 people with a turnover last year of R57 billion. The total automotive sector, including vehicle assemblers, employs over 100,000 in manufacturing and 200,000 in sales and service operations.

“Unfortunately, the automotive trade deficit has been growing and reached an all-time high of R49 billion in 2012, mainly due to a record 72% of all cars sold in South Africa being imported. Exports in 2012 at R87 billion almost recovered to the record achieved in 2008, but the outlook for the future depends largely on the global economic situation, particularly in Europe, our biggest market.  The local auto industry has to compete globally, therefore our focus is on improving our competitiveness through efficiencies and cost reductions.”

Pitot adds: “Areas of uncompetitiveness include certain materials such as steel, wages, logistics and, increasingly, electricity. So opportunities lie in improving our efficiencies and our technological capabilities. These include manufacture of higher-level tooling, more local R&D and developing capabilities to produce the lighter and greener components that will form part of vehicles in future.”

The challenges and potential growth areas for design, precision engineering & machining, automotive component, tooling, tool making, production and application development sectors will come under the spotlight at the 4th annual AfriMold conference and trade fair. The event, a partner of the highly successful EuroMold trade fair, is endorsed by major industry bodies, as well as by the Department of Trade and Industry.

Ron MacLarty, Managing Director of AfriMold, says: “AfriMold 2013 will continue to innovate and push boundaries for the manufacturing industries’ continued growth and improved competitiveness as we strive for collaboration and cohesion on the home front.”

Bob Bond, Chairman of the Plastics Institute of South Africa (PISA) Northern Branch and AfriMold Conference Convenor, says the event’s theme, ‘Enabling For Tomorrow with a focus on precision engineering and tooling as a key enabler for the South African manufacturing sector, was chosen in light of the renewed drive for competitiveness.

Among the issues to be addressed at the conference are:

· What the SA Automotive sector expects from the local tooling industry

· Industrial Design: The Competitive Edge for Tooling and Manufacture

· Solutions for super profitable tool rooms

· How to fund equipment with IDC money

· Initiatives to boost Toolmaking Enterprises Development.

The AfriMold Trade Fair and Conference will also include the PISA/ AfriMold Student Design Presentations and PISA Member Awards.

For more information about AfriMold, visit www.afrimold.co.za or contact Terri Bernstein at Tel: +27 83 635 3539 or terri@afrimold.co.za

 

Comments (0)

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

SA ECONOMIC GROWTH HIT BY MINING SECTOR

Posted on 14 May 2013 by Africa Business

Will the Chinese purchase divested mining interests?

South Africa’s economic growth is lagging somewhat behind that of its peers in the developing world. IMF forecasts for 2013 indicate that emerging and developing economies will grow by 5,5% while SA’s GDP is expected to grow between 2,5% and 3%.

Global ranking

Country Name

GDP in Millions of US dollars (2011)

27

South Africa

408,237

39

Nigeria

243,986

60

Angola

104,332

88

Kenya

33,621

105

Zambia

19,206

One of the key reasons for slower growth is SA’s foreign trade structure and reliance on Europe. President Zuma used the opportunity at the World Economic Forum in Davos earlier this year to ensure foreign investors that South Africa is on the right track.

2012 will be remembered for the negative impact of labour unrest and resultant production stoppages in the mining sector. Mining reduced GDP by 0,5% in the first three quarters of the year. This excludes the biggest slump in the sector during the fourth quarter 2012.

Other significant features of the growth slowdown in 2012 were the slowdown in household consumption spending, poor growth in private fixed investment spending and a slump in real export growth.

South African’s inflation rate slowed to a five-month low in January 2013 after the statistics office adjusted the consumer price basket while food and fuel prices eased. In December, the inflation rate fell to 5,4% from 5,7% Statistics South Africa stated.

Government cut the price of fuel by 1,2% in January 2013, as a stronger rand in the previous month helped to curb import costs. Since then, the currency has plunged 4,8% against the dollar and fuel prices are on the rise, with prices increasing in March by a further 8%, adding to pressure on inflation.

South Africa’s strengths

· South Africa is the economic powerhouse of Africa, leading the continent in industrial output and mineral production, generating a large portion of the continent’s electricity.

· The economy of South Africa is the largest in Africa, accounting for 24% of the continent’s GDP in terms of PPP, and is ranked as an upper-middle income economy by the world bank.

· The country has abundant natural resources, well developed financial, legal and transport sectors, a stock exchange ranked amongst the top 20 in the world, as well as a modern infrastructure supporting efficient distribution of goods throughout the Southern African region.

South Africa’s weaknesses

· South Africa suffers from a relatively heavy regulation burden when compared to most developed countries.

· Increasing costs for corporates with rising wages.

· Poverty, inequalities sources of social risk mixed with high unemployment and shortage of qualified labour.

Mining

Output in the mining sector remained weak in December with total mining production down by 7,5% y-o-y after falling by a revised 3,8% (previously -4,5%) in November. On a monthly basis production rose by a seasonally adjusted 1,2% compared with 12,0% in November. Non-gold output was down by 5,0% y-o-y, while gold production slumped by 21,2% in December. For the fourth quarter, total mining production fell by a seasonally-adjusted and annualised 4,6% q-o-q as output of most minerals dropped.

For 2012 as a whole, mining volumes fell by 3,1% after contracting by 0,9% in 2011. Mineral sales were down by 15,6% y-o-y in November after falling 13,7% in October. On a monthly basis sales rose by a seasonally-adjusted 2,3% in November, but sales were down by a seasonally-adjusted 10,2% in the three months to November after declining by 6,8% in the same period to October. These figures indicate that the mining sector is still reeling from the devastating effects of widespread labour strikes in the third and early fourth quarters.

Prospects for the mining sector remain dim as the industry faces headwinds both on the global and domestic fronts. Globally, commodity prices are not likely to make significant gains as demand conditions remain relatively unfavourable. Locally, tough operating conditions persist. Rapidly rising production costs, mainly energy and labour costs, are likely to compel mining companies to scale back operations or even halt them in some cases.

This will have a negative impact on production, with any improvements coming mainly from a normalisation of output should strike activity ease. These numbers, together with other recent releases, suggest that GDP growth for the fourth quarter was around 2,0%, with overall growth of 2,5% for the year as a whole. Overall economic activity in the sector therefore remains generally sluggish while upside risks to inflation have increased due to the weaker rand.

Retail

Annual growth in retail sales slowed to 2,3% in December from 3,6% in the previous month. Over the month, sales rose by a seasonally-adjusted 1,0%, causing sales for the last quarter of 2012 to decline by 0,2% following 2,1% growth in the third quarter.

As a whole, 2012 retail sales rose by 4,3%, slightly down from 5,9% in 2011. Consumer spending is likely to moderate during 2013 as weak consumer confidence, heightened worries about job security and high debt, make consumers more cautious about spending on non-essential items. The overall economic outlook remains weak and fragile, while inflation may increase due to the weaker rand.

Manufacturing

Annual growth in manufacturing production slowed to 2,0% in December 2012 from 3,7% in the previous month, versus the consensus forecast of 2,9%. The increase in output was recorded in seven of the ten major categories. Significant contributions came from petroleum, chemical products, rubber and plastic products. Over the month, total production fell by 2,2% on a seasonally adjusted basis following a 2,6% rise in November.

On a quarterly basis, however, production improved by 1,6% in the final quarter of 2012 following two quarters of weaker growth. Both local and international economic conditions are expected to improve only moderately during 2013. A weak Eurozone will continue to hurt the large export-orientated industries.

The recent recovery in infrastructure spending by the public sector will probably support the industries producing capital goods and other inputs for local projects. But the growth rate will be contained by slower capital expenditure by the private sector in response to the bleaker economic environment both locally and internationally.

Therefore, while a moderate recovery in manufacturing production will continue in 2013, no impressive upward momentum is expected. Overall economic activity remains generally sluggish while upside risks to inflation have increased due to a weaker rand.

Infrastructure

A new economic plan, the National Development Plan (NDP), is likely to be adopted in 2013 promoting low taxation for businesses and imposing less stringent employment requirements. This a measure that the ANC is pursuing ahead of the 2014 national elections. The NDP will encourage partnerships between government and the private sector, creating opportunities in petrochemical industries, metal-working and refining, as well as development of power stations.

Construction companies are especially likely to benefit from government plans to invest $112-billion from 2013 in the expansion of infrastructure as part of the NDP. Some 18 strategic projects will be launched to expand transport, power and water, medical and educational infrastructure in some of the country’s least developed areas.

Energy companies will also benefit, following the lifting of a moratorium on licences for shale gas development. Meanwhile, there will be significant opportunities, especially for Chinese state-owned enterprises that have recently made high-profile visits to South Africa, to acquire divested assets in the platinum and gold mining sector as large mining houses withdraw from South Africa.

According to government reports, the South African government will have spent R860-billion on new infrastructure projects in South Africa between 2009 and March 2013. In the energy sector, Eskom had put in place 675 kilometers of electricity transmission lines in 2012, to connect fast-growing economic centers and also to bring power to rural areas. More than 200 000 new households were connected to the national electricity grid in 2012. Construction work is also taking place in five cities including Cape Town, Port Elizabeth, Rustenburg, Durban and Pretoria to integrate different modes of transport.

Business Climate

Due to South Africa’s well-developed and world-class business infrastructure, the country is ranked 35th out of 183 countries in the World Bank and International Finance Corporation’s Doing Business 2012 report, an annual survey that measures the time, cost and hassle for businesses to comply with legal and administrative requirements. South Africa was ranked above developed countries such as Spain (44) and Luxembourg (50), as well as major developing economies such as Mexico (53), China (91), Russia (120), India (132) and Brazil (126).

The report found South Africa ranked first for ease of obtaining credit. This was based on depth of information and a reliable legal system.

Foreign trade

SA’s trade deficit narrowed to R 2,7-billion in December from R7,9-billion in November on account of seasonal factors. The trade balance usually records a surplus in December due to a large decline in imports. Exports declined 9,8% over the month. The decrease was mainly driven by declines in the exports of base metals. Vehicles, aircraft and vessels (down R1,1-billion), machinery and electrical appliances (down R0,9-billion) and prepared foodstuffs, beverages and tobacco (down 0,8-billion). Imports dropped 15,8% m-o-m.

Declines in the imports of machinery and electrical appliances (down R3,3-billion), original equipment components; (R1,8-billion), products of the chemicals or allied industries (R1,5-billion) and base metals and articles thereof (R1,2-billion) were the main drivers of the drop.

The large trade deficit for 2012 is one of the major reasons for the deterioration in the 2012 current account deficit forecast to 6,2% of GDP from 3,3% in 2011. South Africa’s trade performance will remain weak in the coming months on the back of unfavourable global conditions and domestic supply disruptions. Weak global economic conditions will continue to influence exports and growth domestically.

Skills and education

The need to transform South Africa’s education system has become ever more urgent, especially given the service delivery issues that have plagued the system. While government continues to allocate a significant amount of its budget to education (approximately 20%), it has not been enough to transform the schooling system. Coface expects the government to continue to support this critical sector, but that an opportunistic private sector will take advantage of government inefficiencies.

South Africa’s education levels are quite low compared to other developed and developing nations. South Africa began restructuring its higher education system in 2003 to widen access to tertiary education and reset the priorities of the old apartheid-based system. Smaller universities and technikons (polytechnics) were incorporated into larger institutions to form comprehensive universities.

Debt

The total number of civil judgments recorded for debt in South Africa fell by 9,8% year on year in November 2012 to 35 268, according to data released by Statistics South Africa. The total number of civil judgments recorded for debt decreased by 15,2% in three months ended November 2012 compared with the three months ended November 2011.

The number of civil summonses issued for debt fell 23,9% year-on-year to 70 537. During November, the 35 268 civil judgments for debt amounted to R414,1-million, with the largest contributors being money lent, with R142,5-million. There was a 21,9% decrease in the total number of civil summonses issued for debt in the three months ended November last year compared with the same period in 2011. A 23,9% y-o-y decrease was recorded in November.

South Africa maintains respectable debt-to-GDP ratios, although these grew to 39% of GDP by end-2012, substantially higher than the 34% for emerging and developing economies as a whole. When Fitch downgraded SA earlier this year, it specifically mentioned concerns about SA’s rising debt-to-GDP ratio, given that the ratio is higher than the country’s peers.

South Africa is uniquely exposed to foreign investor sentiment through the deficit on the current account combined with liquid and deep fixed interest markets. SA’s widening deficit on the current account is a specific factor that concerns the rating agencies and is one of the metrics the agencies will use to assess SA’s sovereign risk in the near future. Further downgrades are the risk – potentially driven by foreign investor sentiment about political risks.

Political landscape

Persistent unemployment, inequality and the mixed results of BEE (Black Economic Empowerment) intended to favour access to economic power by the historically disadvantaged populations have led to disappointment and resentment.

Social unrest is increasing. Recent events weakened the ruling coalition which came under fire for its management of these events. Tensions could intensify in the run up to the 2014 presidential elections. South Africa has a well-developed legal system, but government inefficiency, a shortage of skilled labour, criminality and corruption are crippling the business environment. South Africa also has a high and growing youth unemployment, high levels of visible inequality and government corruption so we would keep an eye on the escalating service delivery protest trends.

Labour force

The unemployment rate fell to 24,9% in the fourth quarter of 2012 from 25,5% in the third quarter, mainly reflecting an increase in the number of discouraged work seekers. Over the quarter, a total of 68 000 jobs were lost while the number discouraged work seekers rose by 87 000. The formal non-agricultural sector lost 52 000 jobs over the quarter, while the informal sector, in contrast, employed 8 000 more people. The breakdown shows that the highest number of jobs were lost in the private households category (48 000), followed by the trade and transport sectors, which shed 41 000 and 18 000 jobs respectively.

The agricultural sector led employment creation over the quarter, adding 24 000 jobs. Both local and international economic conditions are expected to improve only moderately during 2013.

Weak confidence and high wage settlement will make firms more cautious to expand capacity and employ more people this year. Government is likely to be the main driver of employment as it rolls out its infrastructure and job creation plans. The unemployment rate will therefore remain high in the short term.

Although the reduction in the unemployment rate is good news, it mainly reflects the large number of discouraged work seekers. Overall economic activity remains generally sluggish while upside risks to inflation have increased due to a weaker rand. Coface believes that this will persuade the Monetary Policy Committee to keep policy neutral over an extended period, with interest rates remaining unchanged for most of 2013. A reversal in policy easing is likely only late in the year or even in 2014.


 


Issued by:                                                                              Sha-Izwe/CharlesSmithAssoc

ON BEHALF OF:                                                   Coface

FURTHER INFORMATION:                                  Charles Smith

Tel:          (011) 781-6190

Email: charles@csa.co.za

Web:       www.csa.co.za

Media Contact:

Michele FERREIRA /
SENIOR MANAGER: MARKETING AND COMMUNICATION
TEL. : +27 (11) 208 2551  F.: +27 (11) 208 2651   M.: +27 (83) 326 2268
michele_ferreira@cofaceza.com

 

BUILDING D, DRA MINERALS PARK, INYANGA CLOSE

SUNNINGHILL, JOHANNESBURG, SOUTH AFRICA
T. +27 (11) 208 2500 –
www.cofaceza.com

About Coface

The Coface Group, a worldwide leader in credit insurance, offers companies around the globe solutions to protect them against the risk of financial default of their clients, both on the domestic market and for export. In 2012, the Group posted a consolidated turnover of €1.6 billion. 4,400 staff in 66 countries provide a local service worldwide. Each quarter, Coface publishes its assessments of country risk for 158 countries, based on its unique knowledge of companies’ payment behaviour and on the expertise of its 350 underwriters located close to clients and their debtors. In France, Coface manages export public guarantees on behalf of the French state.

Coface is a subsidiary of Natixis. corporate, investment management and specialized financial services arm of Groupe BPCE.. In South Africa, Coface provides credit protection to clients. Coface South Africa is rated AA+ by Global Ratings.

www.cofaceza.com

Comments (0)

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

AFRICA ATTRACTIVENESS: CONTINENT’S SHARE OF GLOBAL FDI INCREASES

Posted on 13 May 2013 by Amat JENG

 

Africa’s share of global foreign direct investment (FDI) has grown over the past five years highlighting the growing interest from foreign investors, according to Ernst & Young’s third Africa Attractiveness Survey , released yesterday.

The report combines an analysis of international investment into Africa over the past five years with a 2013 survey of over 500 global business leaders about their views on the potential of the African market. The latest data shows that despite a fall in project numbers from 867 in 2011 to 764 in 2012 — in line with the global trend — project numbers are still significantly higher than anything that preceded the peak of 2008. The continent’s global share of FDI has also grown from 3.2% in 2007 to 5.6% in 2012.
Mark Otty, Ernst & Young’s EMEIA Managing Partner comments, “A process of democratization that has taken root across much of the continent; ongoing improvements to the business environment; exponential growth in trade and investment and substantial improvements in the quality of human life have provided a platform for the economic growth that a large number of African economies have experienced over the past decade.”

Despite the impact of the ongoing global economic situation, the size of the African economy has more than tripled since 2000. The outlook also appears positive, with the region as a whole expected to grow by 4% for 2013 and 4.6% for 2014. A number of African economies are predicted to remain among the fastest growing in the world for the foreseeable future.

Eighty-six percent of those with an established presence on the continent believe that Africa’s attractiveness as a place to do business will continue to improve. Those surveyed rank Africa as the second most attractive regional investment destination in the world after Asia.

Increasing investment from emerging markets

Investment in FDI projects from developed markets fell by 20%. Although FDI projects from the UK grew (by 9% year-on-year), those from the US and France — the other two leading developed market investors in Africa — were considerably down. In contrast investments from emerging markets into Africa grew again in 2012, continuing the trend over the past three years.
In the period since 2007, the rate of FDI projects from emerging markets into Africa has grown at a healthy compound rate of over 21%. In comparison investment from developed markets has grown at only 8%. The top contributors from the emerging markets are India (237), South Africa (235), the UAE (210), China (152), Kenya (113), Nigeria (78), Saudi Arabia (56) and South Korea (57) all among the top 20 investors over that period.

Intra-African investment has been particularly impressive during the same period, growing at 33% compound rate. South Africa has been at the forefront of growth in intra-African trade and broader emerging market investment – (the single largest investor in FDI projects in 2012 outside of South Africa.) Kenya and Nigeria have also invested heavily but it is expected that others such as Angola, for example, with a US$5b sovereign wealth fund, will become increasingly prominent investors across the continent over the next few years.

Ajen Sita, Ernst & Young’s Africa Managing Partner comments, “There is a growing confidence and optimism among Africans themselves about the continent’s progress and future.”

AJEN SITA

There has also been an important shift in emphasis in investment into the continent over the past few years, in terms of both destination markets and sectors. While investment into North Africa has largely stagnated, FDI projects into Sub-Saharan Africa have grown at a compound rate of 22% since 2007. Among the star performers attracting growing numbers of projects have been Ghana, Nigeria, Kenya, Tanzania, Zambia Mozambique, Mauritius and South Africa.

Perception versus reality

Our 2013 Africa Attractiveness Survey shows some progress in terms of investor perceptions since the inaugural survey in 2011. The majority of respondents are positive about the progress made and the outlook for Africa. Africa has also gained ground relative to other global regions. In 2011 Africa was only ranked ahead of two other regions, while this year it ranked ahead of five other regions (the former Soviet States, Eastern Europe, Western Europe, the Middle East and Central America).

However, there still remains a stark perception gap between those respondents who are already doing business in Africa versus those that have not yet invested in the continent. Those with an established business in Africa are overwhelmingly positive. They understand the real rather than perceived operational risks, have experienced the progress made and see the opportunities for future growth. Eight-six percent of these business leaders believe that Africa’s attractiveness as a place to do business will continue to improve, and they rank Africa as the second most attractive regional investment destination in the world after Asia.

In contrast, those with no business presence in Africa are far more negative about Africa’s progress and prospects. Only 47% of these respondents believe Africa’s attractiveness will improve over the next three years, and they rank Africa as the least attractive investment destination in the world.
The two fundamental challenges that are present for those already present or those looking to invest in Africa are transport and logistics infrastructure and anti-bribery and corruption. However, moves are being made on both accounts to help allay fears of investors.

Infrastructure gaps, particularly relating to logistics and electricity, are consistently cited as the biggest challenges by those doing business in Africa. At a macro level, too, Africa’s growth will be inherently constrained until the infrastructure deficit is bridged. The flip side of this challenge, however, is that strong growth has been occurring despite such infrastructure constraints. This indicates the potential to not only sustain, but accelerate growth as the gap is narrowed. Our analysis indicates that in 2012 there were over 800 active infrastructure projects across different sectors in Africa, with a combined value in excess of US$700b. The large majority of infrastructure projects are related to power (37%) and transport (41%).

Moving away from extractive industries

Due to volatile nature of commodity prices, an over-dependency on a few key sectors clearly raises questions about the sustainability of growth. Despite perceptions to the contrary, less than one third of Africa’s growth has come from natural resources.

The trend of growing diversification continues, with an ever increasing emphasis on services, manufacturing and infrastructure-related activities. In 2007 extractive industries represented 8% of FDI projects and 26% of capital invested in Africa; in 2012, it was a mere 2% of projects and 12% of capital. In comparison, services accounted for 70% of projects in 2012 (up from 45% in 2007), and manufacturing activities accounted for 43% of capital invested in 2012 (up from 22% in 2007).

Mining and metals is still perceived by survey respondents as the sector with the highest growth potential in Africa, but the number of respondents who believe this (26%) is down from 38% in 2012 and 44% in 2011. In contrast, interest in African infrastructure projects is clearly increasing, with 21% of respondents identifying this as growth sector versus 14% last year and only 4% in 2011. Other sectors where there has been a noticeable shift include ICT (14%, up from 8% last year), financial services (13%, up from 6% last year), and education (which has come from virtually nowhere to register 10% this year).

Mark comments, “These changing perceptions of relative sector attractiveness in Africa reflect the changing fundamentals of many Africa economies: the diversification of both sources of growth (for example, the increasing contribution of services and the growing consumer class), and of the actual FDI flowing into these economies.”

South Africa most attractive for foreign investors but others hot on its heels

The large majority of respondents view South Africa as the most attractive African country in which to do business: 41% of all respondents put South Africa in first place, while 61% included it in their top three. The primary reasons for South Africa’s popularity appear to be it relatively well developed infrastructure, a stable political environment and a relatively large domestic market. The next most popular countries were Morocco (20% placing in the top three, and 8% in first place), Nigeria (also 20% in top three, and 6% in first place), Egypt (15% top three and 5% first), and Kenya (15% top three and 4% first). In general, these rankings align with emerging regional hubs for doing business across different parts of Africa.

Looking ahead

Ajen concludes, “With an increasingly solid foundation of economic, political and social reform, together with resilient growth rates, we are confident that the continent as a whole is on a sustainable upward trajectory. This direction of travel, rather than the current destination, is what is most important.

“A critical mass of African economies will continue on this journey. Despite the fact that there will undoubtedly be bumps in the road, there is a strong probability that a number of these economies will follow the same development paths that some of the Asian and other Rapid Growth Markets have over the past 30 years. By the 2040s, we have no doubt that the likes of Nigeria, Ghana, Angola, Egypt, Kenya, Ethiopia and South Africa will be considered among the growth powerhouses of the global economy.”

Comments (0)

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

“In each market where wind energy is being developed, the state is a big player in the initial stages of industry development and is often the sponsor of pilot projects.”

Posted on 08 May 2013 by Africa Business

Exclusive interview with Dr Emelly Mutambatsere, Principal Regional Economist, African Development Bank, and a speaker at the upcoming Clean Power Africa

1) You are the co-author of a comprehensive document on Africa’s wind energy market – can we start with a short summary of how it has evolved over the years?

The harnessing of wind energy for electricity production on commercial scale started in Africa in the late 1990s. Our study shows that the first commercial scale wind farms were commissioned in 2000/2001 in Egypt, Morocco and Tunisia. This was after over a decade of pilot testing with Egypt as the trail blazer.

Between 1990 and 2010, wind energy installed capacity increased twelve fold to reach 1.1 Giga Watts in 2011. While the annual growth rate of Africa’s installed capacity was almost twice the growth of global capacity during the same period, it remains similar to the growth rate reported for global capacity when wind took-off on the global market. This growth followed a phased approach, whereby countries lacking familiarity with the technology and having limited geo-referenced data started with pilot projects, migrating to semi-commercial projects, before reaching full-fledged commercial scale. The average project size has also increased over time, while the lead time achieving commercial scale has decreased.

But overall, wind energy markets in Africa remains small in absolute terms and the importance of wind in the energy mix is limited, at less than 1 percent of continent’s total installed generation capacity. This is not expected to significantly change in the medium term given the significant concurrent development of installed capacity from conventional energy source.

2) Which structural characteristics affected the development of wind energy projects?

Taking the presence of wind energy potential as given, four key factors affect the uptake of wind energy. Firstly, the physical attributes of wind – in particular its intermittency which translates into variable electricity output – affect the role that wind can effectively play in the generation mix, and add complexity to the integration of wind-based power plants into conventional electricity grids, including the need for back-up capacity.

Secondly, the level of electrification observed in African countries with strong wind energy potential matters. Those countries that have reached high electrification rates are more amiable to adopting wind energy which they use to increase available electricity generation capacity in both peak and off-peak periods, thus improve reliability of service. On the other hand, countries trying to reach access objectives, and cannot rely solely on wind to achieve this objective given its aforementioned physical attributes, have opted for conventional energy resources which a provide a stable base-load capacity.

Third, the business environment is important. We observe that fast growing wind energy markets have benefited from strong political will, supported by strategic policy direction and an enabling business environment, including industry specific legislation. Finally, while harnessing wind energy improves the environmental footprint of African power systems, we do not see climate change benefits being an overriding driver of market development on the continent. Other factors such as achieving energy security, by improving diversity of the electricity generation mix and/or increasing use of locally available energy resources, appear to take precedence. This is because Africa still makes a meager contribution to global greenhouse gas emissions. Moreover, an underdeveloped market for carbon tips the scale against wind in simple economic and financial comparisons with conventional energy resources.

3) The paper provides the first mapping of the continent’s wind energy market – can you give us a summary of this, where are the most developed markets, which areas have most potential etc.?

A wind energy potential mapping exercise conducted by the African Development Bank in 2004 shows that coastal countries have the best wind from a wind speed perspective. This includes (in no particular order) Algeria, Egypt, Morocco, Tunisia and Mauritania in North Africa; Djibouti, Eretria, Seychelles and Somalia in the East; and South Africa, Lesotho and Madagascar in the South. Another study we reference in the paper identifies Kenya and Chad as also having large inland wind energy potential. Central and West Africa are shown to have limited potential.

We observed in conducting this study that wind energy potential is a dynamic concept which evolves with the industry’s technology advancement. It is also important in discussing this concept to clearly define the type of potential being measured: whether on-shore or off-shore, whether the physical upper limit of the energy resource or the convertible potential considering technological, structural and ecological constraints. The ranking of countries by potential follows suite. For example, a study which evaluates technical potential ranks Somalia, Sudan, Libya, Egypt, Madagascar, Kenya and Chad as being among the top 30 countries on global scale.

Looking at the developed potential at end-2011, we see strong concentration of wind energy capacity in three North African countries – Egypt, Morocco and Tunisia. Egypt held half of the continent’s total installed capacity, followed by Morocco with 40% and Tunisia with 5%. Outside of North Africa, there is commercial capacity in Cape Verde, and limited capacity in South Africa, Kenya, Mauritius, Eritrea and Mozambique.

The market’s outlook is also noteworthy. Our survey produced a comprehensive sample of about 60 ongoing and planned wind energy projects on the continent. This places South and East African markets in the lead in terms of market growth. South Africa alone is expected to contribute a third of the wind energy capacity currently under developed or planned in Africa; and Kenya is making significant strides toward developing what is poised to be the continent’s largest wind power project. This trend is attributed to increased strategic focus on wind in these regions, whilst in the North market development has been stalled by socio-economic instability.

4) What do African countries need to take into consideration when developing wind projects?

First, there is need to develop a national champion to promote the industry, offering a single focal point for regulation, financing and oversight. In Egypt, the New and Renewable Energy Agency (NREA) was specifically established to play this role. Elsewhere, the existing power utility or a division therein was used.

Second, the wind energy market is attractive to private developers provided clear legislation exists to support the market. This includes rebalancing the scale in cases where subsidies exist on fossil fuels in order to improve competitiveness of renewable technologies.  In addition to legislative support, the state should focus on kick-starting market development by supporting research and development, developing comprehensive geo-referenced datasets required for feasibility studies, and funding pilot projects.

It is important for countries to choose an industry development model which serves the country’s energy sector needs best. Country experiences have thus far been different among market leaders: while some countries opted for a state utility sponsored market development path (e.g. Egypt), others have used a blend of public and private sponsorship of projects including by industrial users (e.g. Morocco) and still others, a competitive private sector led path (e.g. South Africa). The same is true for choice of pricing model (whether a predetermined feed-in tariff, direct negotiation or price competition). The different approaches reflect different priorities and local preferences.

Finally, most African countries developing renewable energy markets are hoping for farther reaching results including industrialization and job creation. Countries pursing this secondary goal should support local linkages, including local manufacturing of turbines and turbine components, as an integral part of their wind sector strategy. Examples of best practice in the respect are still limited.

5) What did you find regarding funding of such projects?

In each market where wind energy is being developed, the state is a big player in the initial stages of industry development; and is often the sponsor of pilot projects.  Donor financing is also very visible in these initial stages. As the market matures, we see the profile of both sponsors and financiers evolving, from public entities and grant financing, to public-private / private entities and non-concessional financing. However, the market has not yet developed to the point where it can be fully funded by the private sector, therefore development finance institutions remain major players.

6) What will be your main message at Clean Power Africa?

Africa’s wind energy market has developed at a pace similar to that observed in leading markets at the early stages of their industry development. Despite this progress and the presence of significant potential on the continent, we should not expect wind to take over conventional energy resources in terms of share in the electricity generation mix, as key structural characteristics of the market affect both efficacy in addressing the energy access challenge, and competitiveness of wind, relative to non-renewable energy resources. Countries seeking to develop this market should do so deliberately and be intent on supporting early market development. However given the urgency with which most governments must address the more pressing access needs, conventional solutions will more likely be adopted ahead of, or concurrently with, wind energy.

7) What are you most looking forward to at the event in Cape Town?

I always look forward to interacting with practitioners and policy makers in these forums. It is an opportunity to learn from them how institutions such as AfDB can best serve as a partner in Africa’s development.

Comments (0)

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Africa Attractiveness Survey: Africa’s Share of Global FDI Increases Over the Last Five Years

Posted on 06 May 2013 by Africa Business

JOHANNESBURG, South-Africa, May 6, 2013/African Press Organization (APO)/

–    Global share of FDI up but project numbers down in 2012

–    African GDP expected to be 4% in 2013 and 4.6% in 2014

Africa’s share of global foreign direct investment (FDI) has grown over the past five years highlighting the growing interest from foreign investors, according to Ernst & Young’s third Africa Attractiveness Survey (http://www.ey.com/za), released today.

Download the presentation: http://www.apo-mail.org/Africa_attractiveness_2013_Low_Res.pdf

The report combines an analysis of international investment into Africa over the past five years with a 2013 survey of over 500 global business leaders about their views on the potential of the African market. The latest data shows that despite a fall in project numbers from 867 in 2011 to 764 in 2012 — in line with the global trend — project numbers are still significantly higher than anything that preceded the peak of 2008. The continent’s global share of FDI has also grown from 3.2% in 2007 to 5.6% in 2012.

Mark Otty, Ernst & Young’s EMEIA Managing Partner comments, “A process of democratization that has taken root across much of the continent; ongoing improvements to the business environment; exponential growth in trade and investment and substantial improvements in the quality of human life have provided a platform for the economic growth that a large number of African economies have experienced over the past decade.”

Despite the impact of the ongoing global economic situation, the size of the African economy has more than tripled since 2000. The outlook also appears positive, with the region as a whole expected to grow by 4% for 2013 and 4.6% for 2014. A number of African economies are predicted to remain among the fastest growing in the world for the foreseeable future.

Eighty-six percent of those with an established presence on the continent believe that Africa’s attractiveness as a place to do business will continue to improve. Those surveyed rank Africa as the second most attractive regional investment destination in the world after Asia.

Increasing investment from emerging markets

Investment in FDI projects from developed markets fell by 20%. Although FDI projects from the UK grew (by 9% year-on-year), those from the US and France — the other two leading developed market investors in Africa — were considerably down. In contrast investments from emerging markets into Africa grew again in 2012, continuing the trend over the past three years.

In the period since 2007, the rate of FDI projects from emerging markets into Africa has grown at a healthy compound rate of over 21%. In comparison investment from developed markets has grown at only 8%. The top contributors from the emerging markets are India (237), South Africa (235), the UAE (210), China (152), Kenya (113), Nigeria (78), Saudi Arabia (56) and South Korea (57) all among the top 20 investors over that period.

Intra-African investment has been particularly impressive during the same period, growing at 33% compound rate. South Africa has been at the forefront of growth in intra-African trade and broader emerging market investment – (the single largest investor in FDI projects in 2012 outside of South Africa.) Kenya and Nigeria have also invested heavily but it is expected that others such as Angola, for example, with a US$5b sovereign wealth fund, will become increasingly prominent investors across the continent over the next few years.

Ajen Sita, Ernst & Young’s Africa Managing Partner comments, “There is a growing confidence and optimism among Africans themselves about the continent’s progress and future.”

There has also been an important shift in emphasis in investment into the continent over the past few years, in terms of both destination markets and sectors. While investment into North Africa has largely stagnated, FDI projects into Sub-Saharan Africa have grown at a compound rate of 22% since 2007. Among the star performers attracting growing numbers of projects have been Ghana, Nigeria, Kenya, Tanzania, Zambia Mozambique, Mauritius and South Africa.

Perception versus reality

Our 2013 Africa Attractiveness Survey shows some progress in terms of investor perceptions since the inaugural survey in 2011. The majority of respondents are positive about the progress made and the outlook for Africa. Africa has also gained ground relative to other global regions. In 2011 Africa was only ranked ahead of two other regions, while this year it ranked ahead of five other regions (the former Soviet States, Eastern Europe, Western Europe, the Middle East and Central America).

However, there still remains a stark perception gap between those respondents who are already doing business in Africa versus those that have not yet invested in the continent. Those with an established business in Africa are overwhelmingly positive. They understand the real rather than perceived operational risks, have experienced the progress made and see the opportunities for future growth. Eight-six percent of these business leaders believe that Africa’s attractiveness as a place to do business will continue to improve, and they rank Africa as the second most attractive regional investment destination in the world after Asia.

In contrast, those with no business presence in Africa are far more negative about Africa’s progress and prospects. Only 47% of these respondents believe Africa’s attractiveness will improve over the next three years, and they rank Africa as the least attractive investment destination in the world.

The two fundamental challenges that are present for those already present or those looking to invest in Africa are transport and logistics infrastructure and anti-bribery and corruption. However, moves are being made on both accounts to help allay fears of investors.

Infrastructure gaps, particularly relating to logistics and electricity, are consistently cited as the biggest challenges by those doing business in Africa. At a macro level, too, Africa’s growth will be inherently constrained until the infrastructure deficit is bridged. The flip side of this challenge, however, is that strong growth has been occurring despite such infrastructure constraints. This indicates the potential to not only sustain, but accelerate growth as the gap is narrowed. Our analysis indicates that in 2012 there were over 800 active infrastructure projects across different sectors in Africa, with a combined value in excess of US$700b. The large majority of infrastructure projects are related to power (37%) and transport (41%).

Moving away from extractive industries

Due to volatile nature of commodity prices, an over-dependency on a few key sectors clearly raises questions about the sustainability of growth. Despite perceptions to the contrary, less than one third of Africa’s growth has come from natural resources.

The trend of growing diversification continues, with an ever increasing emphasis on services, manufacturing and infrastructure-related activities. In 2007 extractive industries represented 8% of FDI projects and 26% of capital invested in Africa; in 2012, it was a mere 2% of projects and 12% of capital. In comparison, services accounted for 70% of projects in 2012 (up from 45% in 2007), and manufacturing activities accounted for 43% of capital invested in 2012 (up from 22% in 2007).

Mining and metals is still perceived by survey respondents as the sector with the highest growth potential in Africa, but the number of respondents who believe this (26%) is down from 38% in 2012 and 44% in 2011. In contrast, interest in African infrastructure projects is clearly increasing, with 21% of respondents identifying this as growth sector versus 14% last year and only 4% in 2011. Other sectors where there has been a noticeable shift include ICT (14%, up from 8% last year), financial services (13%, up from 6% last year), and education (which has come from virtually nowhere to register 10% this year).

Mark comments, “These changing perceptions of relative sector attractiveness in Africa reflect the changing fundamentals of many Africa economies: the diversification of both sources of growth (for example, the increasing contribution of services and the growing consumer class), and of the actual FDI flowing into these economies.”

South Africa most attractive for foreign investors but others hot on its heels

The large majority of respondents view South Africa as the most attractive African country in which to do business: 41% of all respondents put South Africa in first place, while 61% included it in their top three. The primary reasons for South Africa’s popularity appear to be it relatively well developed infrastructure, a stable political environment and a relatively large domestic market. The next most popular countries were Morocco (20% placing in the top three, and 8% in first place), Nigeria (also 20% in top three, and 6% in first place), Egypt (15% top three and 5% first), and Kenya (15% top three and 4% first). In general, these rankings align with emerging regional hubs for doing business across different parts of Africa.

Looking ahead

Ajen concludes, “With an increasingly solid foundation of economic, political and social reform, together with resilient growth rates, we are confident that the continent as a whole is on a sustainable upward trajectory. This direction of travel, rather than the current destination, is what is most important.

“A critical mass of African economies will continue on this journey. Despite the fact that there will undoubtedly be bumps in the road, there is a strong probability that a number of these economies will follow the same development paths that some of the Asian and other Rapid Growth Markets have over the past 30 years. By the 2040s, we have no doubt that the likes of Nigeria, Ghana, Angola, Egypt, Kenya, Ethiopia and South Africa will be considered among the growth powerhouses of the global economy.”

 

SOURCE

Ernst & Young

Comments (0)

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

La part africaine des investissements directs à l’étranger (IDE) mondiaux augmente depuis les cinq dernières années – Africa Attractiveness Survey

Posted on 06 May 2013 by Africa Business

JOHANNESBURG, Afrique du Sud, 6 mai 2013/African Press Organization (APO)/

Part mondiale des IDE en hausse, mais baisse du nombre de projets en 2012

–    Croissance africaine prévue à 4 % en 2013 et 4,6 % en 2014

La part africaine des investissements directs à l’étranger (IDE) mondiaux a augmenté au cours des cinq dernières années, reflétant l’intérêt croissant des investisseurs étrangers, selon la troisième étude Africa Attractiveness Survey d’Ernst & Young (http://www.ey.com/za), parue aujourd’hui.

Download the presentation: http://www.apo-mail.org/Africa_attractiveness_2013_Low_Res

Ce rapport associe une analyse des investissements internationaux en Afrique au cours des cinq dernières années à une enquête menée en 2013 auprès de plus de 500 chefs d’entreprises à propos de leur opinion sur le potentiel du marché africain. Les dernières données montrent que malgré une baisse du nombre de projets, de 867 en 2011 à 764 en 2012 (ce qui correspond à la tendance mondiale), ce nombre reste nettement supérieur à ceux qui ont précédé le pic de 2008. La part mondiale des IDE dans le continent est également passée de 3,2 % en 2007 à 5,6     % en 2012.

Mark Otty, Managing Partner EMEIA chez Ernst & Young, commente : « Un processus de démocratisation qui s’enracine dans la plus grande partie du continent ; des améliorations constantes à l’environnement commerciale, une croissance exponentielle du commerce et de l’investissement ainsi que des améliorations substantielles dans la qualité de la vie humaine ont offert une plateforme à la croissance économique qu’un grand nombre d’économies africaines ont connu au cours de la dernière décennie. »

Malgré l’impact de la situation économique mondiale actuelle, la taille de l’économie africaine a plus que triplé depuis 2000. Les perspectives semblent aussi positives, avec la région dans sa globalité qui devrait connaître une croissance de 4 % en 2013 et de 4,6 % en 2014. Plusieurs économies africaines devraient conserver certaines des croissances les plus rapides au monde dans un avenir proche.

86 % des répondants qui ont une présence établie sur le continent pensent que l’attractivité de l’Afrique en tant que lieu pour faire des affaires continuera à augmenter. Ils ont classé l’Afrique seconde destination d’investissement la plus attractive après l’Asie.

Des investissements croissants des marchés émergents

L’investissement des pays développés dans des projets d’IDE a chuté de 20 %. Bien que les projets d’IDE du Royaume-Uni aient augmenté (de 9 % par année), ceux des États-Unis et de la France (les deux autres grands marchés développés investisseurs en Afrique) ont considérablement diminué. En revanche, l’investissement des marchés émergents en Afrique a encore augmenté en 2012, poursuivant la tendance des trois dernières années.

Depuis 2007, les projets d’IDE des marchés émergents en Afrique ont augmenté à un taux cumulé conséquent de plus de 21 %. En comparaison, l’investissement des marchés développés n’a augmenté que de 8 %. Les plus grands contributeurs des marchés émergents sont l’Inde (237), l’Afrique du Sud (235), les EAU (210), la Chine (152), le Kenya (113), le Nigeria (78), l’Arabie Saoudite (56) et la Corée du Sud (57), tous classés parmi les 20 plus grands investisseurs sur cette période.

L’investissement intra-africain a été particulièrement impressionnant pendant cette même période, avec un taux de croissance cumulé de 33 %. L’Afrique du Sud a été en première ligne de la croissance du commerce intra-africain et des investissements accrus des marchés émergents (le plus grand investisseur en projets d’IDE hors d’Afrique du Sud). Le Kenya et le Nigeria ont également fortement investi mais on prévoit que d’autres, à l’instar de l’Angola, avec un fonds souverain de 5 milliards de dollars, deviendront des investisseurs de plus en plus présents sur le continent au cours des prochaines années.

Ajen Sita, Managing Partner Afrique chez Ernst & Young, explique : « Il y a une confiance et un optimisme croissant chez les Africains eux-mêmes au sujet des progrès et de l’avenir du continent. »

Un important changement s’est également produit dans l’investissement sur le continent ces dernières années, tant en termes de marchés de destination que de secteurs. Tandis que l’investissement en Afrique du Nord a largement stagné, les projets d’IDE en Afrique sub-saharienne ont augmenté à un taux de croissance cumulé de 22 % depuis 2007. Parmi les pays « stars » attirant un nombre croissant de projets, on compte le Ghana, le Nigeria, le Kenya, la Tanzanie, la Zambie, le Mozambique, l’île Maurice et l’Afrique du Sud.

Perception contre réalité

Notre édition 2013 d’Africa Attractiveness Survey montre des progrès en termes de perception des investisseurs depuis la première édition de 2011. La majorité des répondants a une vision positive des progrès réalisés et des perspectives pour l’Afrique. L’Afrique a également gagné du terrain par rapport aux autres régions du monde. En 2011, l’Afrique était seulement classée au-dessus de deux autres régions, tandis que cette année, elle surclasse cinq autres régions (les anciens États soviétiques, l’Europe de l’Est, l’Europe de l’Ouest, le Moyen-Orient et l’Amérique centrale).

Cependant, il reste toujours un fossé de perceptions entre les répondants qui opèrent déjà en Afrique et ceux qui n’ont pas encore investi dans le continent. Ceux qui ont une activité établie en Afrique sont extrêmement positifs. Ils comprennent les risques opérationnels réels plutôt que ceux perçus, connaissent les progrès réalisés et voient les opportunités de croissance future. 86 % de ces chefs d’entreprise pensent que l’attractivité de l’Afrique en tant que lieu où faire des affaires continuera à augmenter, et ils classent l’Afrique seconde destination d’investissement la plus attractive au monde après l’Asie.

En revanche, ceux qui ne sont pas présents en Afrique sont bien plus négatifs en ce qui concerne les progrès et les prospects de l’Afrique. Seuls 47 % de ces répondants pensent que l’attractivité de l’Afrique augmentera dans les trois prochaines années, et ils classent l’Afrique destination d’investissement la moins attractive au monde.

Les deux défis fondamentaux qui existent pour ceux qui sont déjà présents ou qui cherchent à investir en Afrique sont les infrastructures de transport et de logistique, ainsi que la corruption et les pots-de-vin. Toutefois, des mesures sont prises sur ces deux plans pour dissiper les craintes des investisseurs.

Les manques d’infrastructures, particulièrement en matière de logistique et d’électricité, sont constamment cités comme plus gros problèmes par ceux qui font des affaires en Afrique. Au niveau macro-économique également, la croissance africaine sera forcément limitée tant que le déficit d’infrastructure ne sera pas comblé. Le côté positif de ce problème, cependant, est qu’une croissance forte a lieu malgré ces contraintes infrastructurelles. Cela augure un potentiel pour non seulement maintenir, mais accélérer la croissance lorsque ce manque sera réduit. Nos analyses indiquent qu’en 2012 il y avait plus de 800 projets d’infrastructure actifs dans différents secteurs en Afrique, avec une valeur combinée dépassant les 700 milliards de dollars. La grande majorité des projets d’infrastructure sont liés à l’électricité (37 %) et aux transports (41 %).

S’éloigner des industries extractives

En raison de la nature volatile des prix des matières premières, une sur-dépendance à quelques secteurs clés soulève des questions sur la pérennisation de la croissance. Malgré les perceptions contraires, moins d’un tiers de la croissance africaine provient de ressources naturelles.

La tendance à la diversification se poursuit, avec une emphase toujours plus grande sur les services, la fabrication et les activités liées aux infrastructures. En 2007, les industries extractives représentaient 8 % des projets d’IDE et 26 % des capitaux investis en Afrique ; en 2012, elles représentaient 2 % des projets et 12 % du capital. En comparaison, les services comptaient pour 70 % des projets en 2012 (contre 45 % en 2007), et les activités de fabrication comptaient pour 43 % du capital investi en 2012 (contre 22 % en 2007).

Le secteur minier et des métaux est toujours perçu par les répondants à l’enquête comme celui présentant le plus grand potentiel de croissance en Afrique, mais le nombre de répondants qui pensent cela (26 %) a diminué, puisqu’il était de 38 % en 2012 et de 44 % en 2011. En revanche, l’intérêt pour les projets d’infrastructure en Afrique augmente nettement, avec 21 % des répondants les identifiant comme un secteur de croissance contre 14 % l’année dernière et seulement 4 % en 2011. Les autres secteurs où un changement notable s’est produit sont les technologies de l’information et de la communication (14 %, contre 8 % l’année dernière), les services financiers (13 %, contre 6 % l’an dernier), et l’éducation (qui est partie de pratiquement rien pour arriver à 10 % cette année).

M. Otty commente : « Ces perceptions changeantes de l’attractivité relative des secteurs en Afrique reflètent l’évolution des fondamentaux de nombreuses économies africaines : la diversification à la fois des sources de croissance (par exemple, la contribution croissante des services et une classe de consommateurs croissante), et des IDE entrant dans ces économies. »

L’Afrique du Sud plus attractive pour les investisseurs étrangers, suivie par d’autres pays en grande forme

La grande majorité des répondants considère l’Afrique du Sud comme le pays africain le plus attractif pour faire des affaires : 41 % de tous les répondants ont placé l’Afrique du Sud en première place, et 61 % dans leur top 3. Les principales raisons de la popularité de l’Afrique du Sud semblent être ses infrastructures relativement bien développées, un environnement politique stable et un marché intérieur relativement important. Les pays suivants en ordre de popularité sont le Maroc (20 % le plaçant dans leur top 3, et 8 % en première place), le Nigeria (également 20 % dans le top 3, et 6 % à la première place), l’Égypte (15 % dans le top 3 et 5 % en première place) et le Kenya (15 % dans les trois premiers et 4 % à la première place). En général, ces classements correspondent aux centres régionaux émergents pour les affaires dans différentes régions d’Afrique.

Se tourner vers l’avenir

M. Sita conclut : « Avec un contexte de plus en plus solide de réformes économiques, politiques et sociales, associés à des taux de croissance résilients, nous sommes convaincus que le continent dans son ensemble est sur une trajectoire de croissance durable. Cette direction, plutôt que la destination actuelle, est ce qui compte le plus.

Une masse cruciale d’économies africaines continuera ce parcours. Malgré le fait qu’il y aura forcément des obstacles sur la route, il est fort probable que plusieurs de ces économies suivront le même développement que certains des marchés asiatiques et autres marchés à croissance rapide au cours des 30 dernières années. D’ici les années 2040, nous sommes sûrs que des pays tels que le Nigeria, le Ghana, l’Angola, l’Égypte, l’Éthiopie et l’Afrique du Sud seront considérés comme des moteurs de croissance de l’économie mondiale. »

 

SOURCE

Ernst & Young

Comments (0)

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

African Development Bank Economist to present report on continent’s wind energy market at Clean Power Africa this month

Posted on 06 May 2013 by Africa Business

Some 5000 power professionals to gather in Cape Town

In each market where wind energy is being developed, the state is a big player in the initial stages of industry development; and is often the sponsor of pilot projects according to Dr Emelly Mutambatsere, Principal Regional Economist, African Development Bank.  As co-author of a comprehensive study for the AdB on the Development of Wind Energy in Africa, Dr Mutambatsere is a speaker on the topic at the  upcoming Clean Power Africa that is taking place in Cape Town from 14-15 May.

Clean Power Africa is Africa’s leading event where major stakeholders from the renewable energy sector get together and explore clean generation as a feasible solution to fulfil Africa’s electricity needs.  The event is co-located with the 13th annual African Utility Week which is attended by some 5 000 power & water professionals from all over the continent and  Eskom CE Brian Dames will once again deliver the keynote address.

60 ongoing and planned wind projects
Dr Mutambatsere says in the initial stages of the wind market development, donor financing is very visible and as the market matures, both sponsors and financiers enter the market, from public entities and grant financing, to public-private/private entities and non-concessional financing. “However,”, she says, “the market has not yet developed to the point where it can be fully funded by the private sector, therefore development finance institutions remain major players.”

By the end of 2011 the developed potential on the continent saw a strong concentration of wind energy capacity in three North African countries, Egypt, Morocco and Tunisia.  Says Dr Mutambatsere:  “Egypt held half of the continent’s total installed capacity, followed by Morocco with 40% and Tunisia with 5%. Outside of North Africa, there is commercial capacity in Cape Verde, and limited capacity in South Africa, Kenya, Mauritius, Eritrea and Mozambique.”

She continues:  “the market’s outlook is also noteworthy. Our survey produced a comprehensive sample of about 60 ongoing and planned wind energy projects on the continent. This places South and East African markets in the lead in terms of market growth. South Africa alone is expected to contribute a third of the wind energy capacity currently under developed or planned in Africa; and Kenya is making significant strides toward developing what is poised to be the continent’s largest wind power project. This trend is attributed to increased strategic focus on wind in these regions, whilst in the North market development has been stalled by socio-economic instability.”

Business environment important
According to the AdB Principal Regional Economist, Africa’s wind energy market has developed at a pace similar to that observed in leading markets at the early stages of their industry development.  She adds:  “despite this progress and the presence of significant potential on the continent, we should not expect wind to take over conventional energy resources in terms of share in the electricity generation mix, as key structural characteristics of the market affect both efficacy in addressing the energy access challenge, and competitiveness of wind, relative to non-renewable energy resources.”

The report states that the business environment is important for the development of a wind energy market. Says Dr Mutambatsere:  “we observe that fast growing wind energy markets have benefited from strong political will, supported by strategic policy direction and an enabling business environment, including industry specific legislation.”

The report reflects opinions of the authors, and not those of the African Development Bank Group’s management, Board of Directors or the countries they represent.

More Clean Power Africa speaker highlights:

· Overview of trends and policy

o Renewable energy usage in South Africa and Africa: an international comparison, Roula Inglesi-Lotz, Senior Lecturer, Department of Economics, University of Pretoria, South Africa

o A review of renewable energy policy considerations for SADC countries, Martin Manuhwa, Managing Director, ZAIDG, Zimbabwe

o Effective “Plug & Play” Grid Integration of PV Plants, Vladimir Chadliev, Director Global Grid Integration, First Solar, South Africa

· Update on the SA REIPP programme

o Status of the REIPP in South Africa, Karen Breytenbach, Department of Finance, South Africa*

o Learnings from 50 REIPP projects, Richard Doyle, Managing Director, 3E, South Africa

o Community aspects of the REIPPPP, Christiaan Bode, Director, Sidala Energy, South Africa

o Grid code compliance and renewable energy projects, Mick Barlow, Business Development Director and Technical Advisor, S&C Europe, United Kingdom

On the expo floor, free CPD-accredited technical workshops on renewable energy include:
– Tips on how to become more energy efficient in your business

– How to identify the challenges facing the building of renewable projects

– Retrofitting hydropower to South African dams
– Constructing monitoring in PV and Wind
– Compliance of Solar PV installation with the new Renewable Grid Code

Clean Power Africa and African Utility Week dates and location:

Exhibition & Conference: 14-15 May 2013
Pre-conference Workshops: 13 May 2013
Site Visits: 16 May 2013
Location:  CTICC, Cape Town, South Africa

Websites: www.african-utility-week.com ; www.clean-power-africa.com

Contact for African Utility Week:
Communications manager:  Annemarie Roodbol
Telephone:  +27 21 700 3558
mobile:  +27 82 562 7844
Email:  annemarie.roodbol@clarionevents.com

Comments (0)

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

RALF (Restoration Aquatic Life Filtration) Provides a New Solution During a Power Outage to Help the 13 Million Households with Aquariums Sustain Healthy Aquatic Life

Posted on 02 April 2013 by Africa Business

Health- Tech Sales is the first company to offer battery powered multi-stage filtration (patent pending) which can be used during power outage emergencies. RALF will make its debut at Booth G5 at the Marine Aquarium Expo at the OC Fair & Event Center in Costa Mesa, California on April 6 – 7, 2013.

Southington, CT, April 02, 2013 –(PR.com)– One of the biggest nightmares for aquarium enthusiasts is losing all their aquatic life due to a long-term power failure. During a power failure, lethal toxins quickly accumulate because current aquarium filtration is powered by AC voltage. Health- Tech Sales is the first company to offer battery powered multi-stage filtration (patent pending) which can be used during power outage emergencies. RALF will make its debut at Booth G5 at the Marine Aquarium Expo at the OC Fair & Event Center in Costa Mesa, California on April 6 – 7, 2013.

According to statistics from a National Pet Owners Survey compiled by the APPA (American Pet Products Association) there were 700,000 households with saltwater aquariums and over 11.9 Million households with freshwater from 2011 to 2012. While investment in the cost of setting up an aquarium varies, Bloomberg Rankings examined the initial setup costs for a 90 gallon saltwater aquarium to be as high as $17,334. Since power outages are becoming more frequent and longer in duration due to unprecedented super storms like “Sandy” in the Northeast, all these aquariums are vulnerable. According to the Eaton Corp’s “2012 Blackout Tracker Report,” there were 2,808 power outages in the US during 2012.

“RALF is a 12VDC Powered Multi-Stage Aquarium Filter, which means that it can be powered by a battery, solar power, car, or other source of DC voltage. It requires very little power and therefore can operate for long periods of time in the event of an AC power failure,” said inventor Marc Rosenkranz. Using a standard sealed lead acid battery (similar to those used as backup in home alarm systems or UPS), RALF can provide multi-stage filtration, aeration, and water circulation for up to 8 days on one battery.”

Rosenkranz added that the choice of a rechargeable sealed lead acid battery is both safe for indoor use and transport, as well as, cost effective. A low cost 15 hour battery can be recharged and used at a cost of approximately 1.6 cents per hour over the life of the battery.

“RALF offers an economical and practical advantage over generators, which are subject to the limitations of available fuel and space. For example, during ‘Sandy’ many New York residents had to travel to surrounding states to get gas because of station closures. Generators powered by natural gas were useless because lines were shut off to thwart fires. For people living in high rise buildings, generators are not even an option and the UPS solution doesn’t offer a long enough power life at an affordable cost.”

The product can be purchased with RALF AC Power Fail-Auto Start. RALF will automatically start in the event of an AC power failure with this option. This means that you can go on that vacation or business trip and in the event of a power failure your aquarium and its aquatic life will survive.

RALF’s unattended restoration of filtration, aeration, and water circulation will reduce the stress on your aquatic life from a lack of filtration of harmful toxins, as well as, the owners stress. It is designed for large saltwater or freshwater aquariums. All materials used are aquarium safe.

RALF can be used in an aquarium sump or tank mounted. RALF has an adjustable tank mount that will accommodate an aquarium with or without a canopy.

“RALF is cost effective and designed not to just sit on a shelf waiting for a power failure, RALF can be used with a powerful new bottom cleaning accessory that utilizes the RALF Pump Head,” added Rosenkranz. “The Director “Power Vacuum (Aquarium Bottom Cleaning Accessory – Patent Pending) does not have the pump in the handle. In its design, the RALF Pump Head & Power Source is external to the handle which provides the following benefits: a very powerful flow created compared to other aquarium bottom cleaners, as well as, interchangeable handles and a position directed suction head to reach difficult areas in the aquarium.”

Water can be returned to the tank or removed from the tank while debris and aquarium sand is stored in a special canister. The sand can be returned to the tank and the debris can be discarded by rinsing the filter media.

RALF is also designed to be used on battery or with an AC power adapter for the following routine aquarium functions; water changes, supplemental filtration, and dispersing medications and/or additives.

RALF is also ideal for maintaining large healthy aquatic life during transport for research or relocation.

For more information about RALF (Restoration Aquatic Life Filtration) visit website, www.batteryaquariumfilter.com

Comments (0)

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Madagascar needs more than $41 million to end locust plague / Half of the country infested by locusts – food production seriously at risk

Posted on 26 March 2013 by Africa Business

ROME, Italy, March 26, 2013/African Press Organization (APO)/ Madagascar needs more than $22 million of emergency funding by June to start fighting a severe locust plague that threatens the country’s next cropping seasons and the food security of more than half the country’s population, FAO said today. The agency underlined, however, that a three-year strategy is needed – requiring an additional $19 million.

 

Currently, about half the country is infested by hoppers and flying swarms – each swarm made up of billions of plant-devouring insects. FAO estimates that about two-thirds of the island country will be affected by the locust plague by September 2013 if no action is taken.

 

In view of the deteriorating situation, the Ministry of Agriculture of Madagascar declared a national disaster on 27 November 2012. In December, the Ministry of Agriculture requested technical and financial assistance from FAO to address the current locust plague, ensure the mobilization of funds as well as the coordination and implementation of an emergency response.

 

The emergency funding that has to arrive by June will allow FAO, together with the Ministry of Agriculture, to launch a full-scale spraying campaign for the first year.

 

Nearly 60 percent of the island’s more than 22 million people could be threatened by a significant worsening of hunger in a country that already has extremely high rates of food insecurity and malnutrition. In the poorest southern regions, where the plague started, around 70 percent of households are food insecure.

 

The plague now threatens 60 percent of the country’s rice production. Rice is the main staple in Madagascar, where 80 percent of the population lives on less than a dollar per day.

 

The locust swarms would also consume most green vegetation that might normally serve as pasture for livestock.

 

From start to finish

 

“We know from experience that this plague will require three years of anti-locust campaigns. We need funds now to procure supplies and to timely set-up the aerial survey and control operations,” said Annie Monard, FAO Senior Officer and Coordinator of the FAO locust response.

 

“Failure to respond now will lead to massive food aid requirements later on,” said Dominique Burgeon, Director of the FAO Emergency and Rehabilitation Division.

 

“Campaigns in past years were underfunded, and unfortunately it means that not all locust infestations were controlled,” said Monard. She compared it to not uprooting the roots of a weed, in which case even more weeds come back.

 

Current national efforts

 

The national Locust Control Centre has thus far treated 30 000 hectares of farmland since the six-month rainy season began in October 2012, but some 100 000 hectares that need to be treated haven’t been, due to the government’s limited capacity.

 

In late February, the situation was made even worse by Cyclone Haruna, which not only damaged crops and homes but also provided optimal conditions for one more generation of locusts to breed.

 

The first year of the FAO strategy to control locusts would rely on large-scale aerial operations. Some 1.5 million hectares will be treated in 2013-14, which declines to 500 000 hectares in the second year and 150 000 hectares in the third and last year of the strategy. All the operations will be implemented in respect of human health and the environment.

 

The strategy also includes:

•    establishment and training of a Locust Watch Unit inside the Plant Protection Directorate, for monitoring and analysis of the locust situation over the whole invasion area;

•    aerial and ground survey operations;

•    monitoring and mitigation of locust control operations to preserve human health and protect the environment;

•    training in pesticide and spraying operations management.

 

An impact assessment of the locust crisis on crops and pasture will be conducted each year to determine the type of support needed by farming households whose livelihoods have been affected.training in pesticide and spraying operations management.

 

SOURCE

Food and Agriculture Organization of the United Nations (FAO)

Comments (0)

AfricaBusiness.com Newsletter



Business in UAE
Copyright © 2009 - 2016. African Business Environment. All Rights Reserved. AfricaBusiness.com Business Magazine