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Lithium Market Becoming More Reliant on Batteries for Continued Strong Demand Growth

Posted on 18 May 2013 by Africa Business

Rise in Consumption and Future Demand Driven by Lithium-ion Batteries

Roskill estimates that rechargeable batteries accounted for 27% of global lithium consumption in 2012, up from 15% in 2007 and 8% in 2002. This end-use was responsible for 44% of the net increase in lithium consumption over the last ten years, and 70% over the last five years. In the base-case growth scenario it is expected to contribute 75% of the growth in forecast demand to 2017, when total demand for lithium is expected to reach slightly over 238,000t lithium carbonate equivalent (LCE).

Other end-uses, including glass-ceramics, greases and polymers, have also shown high rates of growth, but are predicted to moderate over the next five years as emerging economy growth slows. The lithium industry is therefore becoming more reliant on rechargeable batteries to sustain high rates of future demand growth. In addition, in the period to 2017 Roskill forecasts that the main market driver for lithium-ion batteries will gradually switch from portable consumer electronics to electric vehicles, especially hybrid variants.

Reflecting the concentration of lithium-ion battery manufacturers and associated cathode material producers in China, Japan and South Korea, the East Asia region has become an increasingly important consumer of lithium products over the last decade. In 2012, East Asia accounted for 60% of total global consumption with Europe accounting for a further 24% and North America 9%.

Growing Supply-side Pressure is Predicted to Stall Further Lithium Price Rises

Roskill’s analysis suggests that the price of technical-grade lithium carbonate, the main product produced and consumed in the lithium market, recovered some of its global economic downturn losses as the market tightened in 2012, averaging US$5,300/t CIF, up 15% from 2010. This is below the 2007 peak of US$6,500/t, but well above the US$2,000-3,000/t levels seen in the early 2000s.

Lithium extraction, which totalled over 168,000t LCE in 2012, is undertaken predominately in Australia, Chile, Argentina and China, with roughly half of lithium output from hard rock sources and half from brine. Production is dominated by Talison Lithium in Australia, SQM and Rockwood Lithium in Chile, and FMC in Argentina. Just over two-thirds of lithium minerals extracted in Australia are processed into downstream chemical products in China, where producers such as Tianqi Lithium (who recently acquired Talison to secure a captive supply of mineral feedstock) operate mineral conversion plants.

Galaxy Resources commissioned a new 17,000tpy LCE mineral conversion plant in China in 2012. Canada Lithium is in the process of commissioning a 20,000tpy LCE plant in Quebec and several existing Chinese mineral conversion plants are also expanding capacity. FMC has increased brine-based processing capacity by a third in Argentina, while nearby Orocobre is also constructing a new brine-based operation due to be completed in 2014. In addition, Rockwood Lithium plans to complete a 20,000tpy LCE expansion in Chile in 2014. Combined, this additional capacity totals just under 100,000tpy LCE, enough to meet forecast demand to 2017.

As the opening of new and expanded capacity is concentrated over the next two years, Roskill forecasts that the lithium market could witness increased competition and supply-side pressure on pricing, with prices for technical-grade lithium carbonate potentially falling back to around US$5,000/t CIF in 2014.

Lithium: Market Outlook to 2017 (12th edition)is available at a price of £4900 / US$7900 / €6200 from Roskill Information Services Ltd, 54 Russell Road, London SW19 1QL ENGLAND.

Tel: +44-(0)20-8417-0087. Fax +44-(0)20-8417-1308.

Email: info@roskill.co.uk Web: http://www.roskill.com/lithium

Note to editors

The report contains 426 pages, 245 tables and 99 figures. It provides a detailed review of the industry, with subsections on the activities of the leading producing companies. It also analyses consumption, trade and prices.

Table of Contents

Page

1.         Summary    1

2.         Lithium Mineralogy, Occurrences and Reserves    10

2.1        Occurrence of lithium    10

2.1.1      Lithium minerals    10

2.1.2      Lithium clays    12

2.1.3      Lithium brines    12

2.2        Lithium reserves    14

3.         Lithium mining and processing    16

3.1        Extraction and processing of lithium brines    17

3.1.1      Other methods of brine extraction    20

3.2        Mining and processing of lithium minerals    21

3.3        Processing lithium mineral concentrates to lithium compounds    23

3.4        Processing lithium bearing clays into lithium compounds    26

3.5        Lithium compounds and chemicals    27

3.6        Production costs    30

4.         Production of lithium    34

4.1        Lithium production by source    35

4.1.1      Production of Lithium Minerals    37

4.1.2      Production from Lithium Brines    39

4.1.3      Production of lithium compounds from mineral conversion    41

4.1.4      Production of downstream lithium chemicals    43

4.2        Outlook for production capacity of lithium to 2017    44

4.2.1      Outlook for production capacity of lithium minerals    45

4.2.2      Outlook for lithium production capacity from brines    48

4.2.3      Outlook on lithium compound production from mineral conversion    51

4.3        Forecast production of lithium to 2017    52

5.         Review of lithium producing countries    55

5.1        Afghanistan 55

5.2        Argentina 56

5.2.1      FMC Litihum (MineradelAltiplano S.A.)    58

5.2.2      ADY Resources    59

5.2.3      Lithium Americas    61

5.2.4      Galaxy Resources (Lithium 1)    66

5.2.4.1    Sal de Vida Project    66

5.2.4.2    James Bay Hard-rock Lithium Project    68

5.2.5      Orocobre Ltd.    69

5.2.5.1    Salar de Olaroz    71

5.2.5.2    Salinas Grandes (Cangrejillo)    74

5.2.5.3    Guayatoyoc Project    74

5.2.5.4    Cauchari Project    75

5.2.6      Rodinia Lithium Inc.    76

5.2.6.1    Rodinia Lithium USA 78

5.2.7      Marifil Mines Ltd.    78

5.2.8      International Lithium Corporation    79

5.2.9      Other prospects for Lithium Production    79

5.3        Australia 80

5.3.1      Talison Lithium    82

5.3.1.1    Resources and Reserves    82

5.3.1.2    Production    85

5.3.1.3    Products    86

5.3.2      Galaxy Resources Ltd.    87

5.3.2.1    Reserves and Resources    88

5.3.2.2    Production    90

5.3.3      Reed Resources Ltd.    91

5.3.4      Altura Mining Ltd.    92

5.3.5      Artemis Resources    93

5.3.6      Amerilithium    93

5.3.7      Reward Minerals    93

5.4        Austria 93

5.5        Belgium 94

5.6        Bolivia 96

5.6.1      Salar de Uyuni 97

5.6.2      Salar de Coipasa    99

5.6.3      New World Resource Corp.    99

5.7        Brazil 100

5.7.1      CompanhiaBrasileira de Litio    102

5.7.2      Arqueana de Minérios e Metais Ltda.    103

5.7.3      Advance Metallurgical Group (AMG)    104

5.8        Canada 104

5.8.1      Lithium resources in Canada 105

5.8.2      Canadian trade in lithium    107

5.8.3      Past producers of lithium in Canada 108

5.8.3.1    Tantalum Mining Corp. of Canada Ltd. (TANCO)    108

5.8.4      Potential new producers of lithium in Canada 109

5.8.4.1    Canada Lithium Corp.    109

5.8.4.2    Nemaska Lithium    112

5.8.4.3    Avalon Rare Metals Inc.    115

5.8.4.4    Perilya Limited    116

5.8.4.5    Rock Tech Lithium Inc.    117

5.8.4.6    Critical Elements Corporation    120

5.8.4.7    Glen Eagle Resources Inc.    120

5.8.4.8    Aben Resources Ltd.    121

5.8.4.9    Toxco Inc. Canada 122

5.8.4.10   Other Canadian Lithium Projects    122

5.9        Chile 126

5.9.1      Chilean lithium reserves    127

5.9.2      Chilean lithium production    127

5.9.3      Special Lithium Operations Contracts (CEOLs)    128

5.9.4      SociedadQuímica y Minera    129

5.9.4.1    Reserves and Resources    130

5.9.4.2    Production    131

5.9.4.3    Products    132

5.9.4.4    Markets    134

5.9.4.5    Exports    135

5.9.5      Rockwood Litihum (Salar de Atacama and La Negra Plant)    136

5.9.6      Simbalik Group    138

5.9.7      Li3 Energy Inc.    139

5.9.7.1    Maricunga Property    139

5.9.7.2    Li3 Energy Peruvian Projects    141

5.9.8      First Potash Corp.    141

5.9.9      CODELCO    142

5.9.10 Mammoth Energy Group Inc.    142

5.9.11 Lomiko Metals Inc.    143

5.9.12 Errázuriz Lithium    143

5.9.13 Exports of litihum from Chile 143

5.10       China 146

5.10.1     Chinese reserves of lithium    147

5.10.1.1   Lithium Mineral Reserves    147

5.10.1.2   Lithium Brine Reserves    148

5.10.2     Production of lithium    149

5.10.2.1   Mineral Production    150

5.10.2.2   Brine Production    151

5.10.2.3   Lithium Chemicals and Metal Production    152

5.10.3     Chinese trade in lithium    155

5.10.4     Chinese lithium brine producers    157

5.10.4.1   Tibet Lithium New Technology Development Co. Ltd.    157

5.10.4.2   Qinghai CITIC Guoan Technology Development Co. Ltd.    159

5.10.4.3   Qinghai Salt Lake Industry Co. Ltd.    160

5.10.4.4   Qinghai Lanke Lithium Industry Co. Ltd.    161

5.10.4.5   Tibet Sunrise Mining Development Ltd.    162

5.10.4.6   China MinMetals Non-Ferrous Metals Co. Ltd    163

5.10.5     Chinese lithium mineral producers    163

5.10.5.1   Fujian Huamin Import & Export Co. Ltd.    163

5.10.5.2   YichunHuili Industrial Co. Ltd.    164

5.10.5.3   GanZiRongda Lithium Co., Ltd.    164

5.10.5.4   Sichuan HidiliDexin Mineral Industry    165

5.10.5.5   Xinjiang Non-Ferrous Metals (Group) Ltd.    166

5.10.6     Chinese lithium mineral producers with mineral conversion capacity    166

5.10.6.1   Jiangxi Western Resources Lithium Industry    166

5.10.6.2   Sichuan Aba Guangsheng Lithium Co. Ltd.    167

5.10.6.3   Minfeng Lithium Co. Ltd.    167

5.10.6.4   Sichuan Ni&CoGuorun New Materials Co. Ltd.    168

5.10.7     Chinese mineral conversion plants    169

5.10.7.1   Sichuan Tianqi Lithium Shareholding Co. Ltd.    169

5.10.7.2   Galaxy Resources (Jiangsu Lithium Carbonate Plant)    171

5.10.7.3   General Lithium (Haimen) Corp.    172

5.10.7.4   China Non-Ferrous Metal Import & Export Xinjiang Corp.    173

5.10.7.5   Sichuan State Lithium Materials Co. Ltd.    174

5.10.7.6   Jiangxi Ganfeng Lithium Co. Ltd.    174

5.10.7.7   Sichuan Chenghehua Lithium Technology Co. Ltd.    176

5.10.8     Chinese lithium chemical producers    176

5.10.9     Specialist lithium bromide producers    177

5.10.10 Specialist lithium metal producers    178

5.11       Czech Republic 179

5.12       Democratic Republic of Congo (DRC)    179

5.13       Finland 180

5.13.1     KeliberOy    180

5.13.2     Nortec Minerals Corp.    181

5.13.3     Leviäkangas Deposit    182

5.13.4     Syväjärvi Deposit    182

5.14       France 182

5.15       Germany 184

5.15.1     Rockwood Lithium (Langelsheim Plant)    185

5.15.2     Helm AG    185

5.15.3     Lithium exploration in Germany 185

5.16       Greece 186

5.17       India 186

5.17.1     FMC India Private Ltd.    188

5.17.2     Rockwood Lithium    188

5.18       Ireland 189

5.19       Israel 189

5.20       Japan 190

5.21       Kazakhstan 192

5.22       Mali 193

5.23       Mexico 193

5.23.1     LitioMex S.A. de C.V. (PieroSutti S.A. de C.V.)    193

5.23.2     First Potash Corp. (Mexico)    195

5.23.3     Bacanora Minerals Ltd.    195

5.24       Mongolia 196

5.25       Mozambique 196

5.26       Namibia 197

5.27       Netherlands 198

5.28       Portugal 199

5.28.1     SociedadMineira de Pegmatites    200

5.29       Russia 200

5.29.1     Russian Lithium Reserves and Resources    201

5.29.2     Russian Lithium Production    202

5.29.2.1   JSC Chemical and Metallurgical Plant    202

5.29.2.2   JSC Novosibirsk Chemical Concentration Plant    203

5.29.3     Russian Imports and Exports of Lithium    204

5.30       Serbia    205

5.31       South Africa 206

5.32       South Korea 206

5.33       Spain 207

5.33.1     Minera Del Duero 208

5.33.2     Solid Resources Ltd.    209

5.34       Taiwan 209

5.35       Tajikistan 210

5.36       Turkey 210

5.37       UK    211

5.38       Ukraine 212

5.39       USA 212

5.39.1     Trade in lithium to/from the USA 213

5.39.2     Rockwood Lithium (Chemetall Group)    214

5.39.2.1   Silver Peak, Kings Mountain and New Johnsonville operations (USA)    215

5.39.3     FMC Corporation    216

5.39.3.1   FMC Lithium    217

5.39.3.2   Other FMC Corporation facilities    218

5.39.4     Western Lithium Corporation    219

5.39.5     Simbol Materials Corp.    222

5.39.6     Albemarle Corporation    223

5.39.7     Toxco Inc.    223

5.39.8     AusAmerican Mining Corp. Ltd.    223

5.39.9     Other USA Companies    224

5.40       Uzbekistan 226

5.41       Zimbabwe 226

5.41.1     Bikita Minerals Ltd    227

5.41.2     Zimbabwe Mining Development Corporation    228

5.41.3     Premier African Minerals    228

5.41.4     Cape Range Ltd.    229

6.         International trade in lithium    230

6.1        Trade in lithium carbonate    230

6.2        Trade in lithium hydroxide and oxides    233

6.3        Trade in lithium chloride    236

6.4        Trade in mineral concentrates    237

6.5        Trade in lithium brines    238

7.         Consumption of lithium    239

7.1        Consumption of lithium by end-use    239

7.2        Consumption of lithium by country/region    243

7.3        Consumption of lithium by product    245

7.4        Outlook for consumption of lithium by end-use    247

7.5        Outlook for lithium consumption by product    251

8.         Use of lithium in rechargeable batteries    253

8.1        Types of rechargeable batteries    253

8.1.1      Lithium-ion batteries    254

8.1.2      Lithium metal polymer batteries    256

8.1.3      Lithium-sulphur batteries    256

8.1.4      Lithium-air batteries    258

8.1.5      NiMH and NiCd batteries    258

8.2        Production of rechargeable batteries    258

8.2.1      Producers of rechargeable lithium batteries    261

8.2.2      Producers of nickel metal hydride batteries    262

8.3        Production of rechargeable lithium battery materials    262

8.3.1      Producers of rechargeable lithium battery materials    264

8.3.1.1    Cathode materials    264

8.3.1.2    Electrolyte salts    267

8.3.1.3    Anode materials    268

8.4        Consumption of rechargeable lithium batteries    268

8.4.1      Computing, communication and consumer (3C) market    269

8.4.2      Power devices and motive power    270

8.4.3      Heavy duty applications    272

8.4.4      Transportation    272

8.5        Consumption of NiMH and NiCd batteries    274

8.6        Consumption of lithium in rechargeable batteries    274

8.7        Outlook for demand for rechargeable batteries    278

8.8        Outlook for consumption of lithium in rechargeable batteries    281

9.         Use of lithium in ceramics    284

9.1        Use of lithium in ceramics    284

9.2        Production and consumption of ceramics    286

9.2.1      Ceramic tiles    287

9.2.1.1    Producers of ceramic tiles    289

9.2.2      Sanitaryware    291

9.2.2.1    Producers of sanitaryware    291

9.2.3      Tableware    293

9.2.3.1    Producers of tableware    294

9.2.4      Cookware and bakeware    295

9.3        Production and consumption of glazes and enamels    295

9.3.1      Producers of glazes and enamels    297

9.4        Outlook for ceramics production and consumption    298

9.5        Consumption of lithium in ceramics    299

9.5.1      Outlook for lithium demand in ceramics    300

10.        Use of lithium in glass-ceramics    302

10.1       Use of lithium in glass-ceramics    302

10.2       Production and consumption of glass-ceramics    304

10.2.1     Producers of glass-ceramics    305

10.3       Consumption of lithium in glass-ceramics    306

11.        Use of lithium in lubricating grease    309

11.1       Types of lubricating grease    309

11.2       Production of grease    311

11.2.1     Producers of lithium grease    314

11.3       Consumption of lithium greases    317

11.4       Consumption of lithium in greases    320

11.4.1     Outlook for demand for lithium in greases    321

12.        Use of lithium in glass    323

12.1       Use of lithium in glass    323

12.2       Production and consumption of glass    325

12.2.1     Container glass    326

12.2.2     Fibreglass    329

12.2.3     Speciality glass    330

12.3       Consumption of lithium in glass    330

12.3.1     Outlook for demand for lithium in glass    331

13.        Use of lithium in metallurgical powders    333

13.1       Continuous casting    333

13.1.1     Producers of continuous casting mould powders    334

13.1.2     Continually cast steel production    334

13.1.3     Consumption of continuous casting mould powders    335

13.1.4     Consumption of lithium in continuous casting mould powders    335

13.2       Traditional metal casting    337

13.3       Outlook for demand for lithium in casting powders    337

14.        Use of lithium in polymers    338

14.1       Types of polymers    338

14.2       Production of polymers    340

14.2.1     Producers of polymers    342

14.3       Consumption of polymers    344

14.4       Consumption of lithium in polymers    348

14.4.1     Outlook for lithium demand in polymers    348

15.        Use of lithium in air treatment    350

15.1       Absorption chillers    350

15.1.1     Production of absorption chillers    351

15.1.2     Producers of adsorption chillers    352

15.1.3     Producers of lithium bromide for absorption chillers    354

15.1.4     Consumption of lithium in absorption chillers    356

15.2       Dehumidification    357

15.2.1     Production of desiccant dehumidification systems    358

15.2.2     Producers of desiccant dehumidification systems    358

15.2.3     Consumption of lithium in desiccant dehumidifiers    359

15.3       Air purification    359

15.5       Outlook for demand for lithium in air treatment    360

16.        Use of lithium in primary batteries    362

16.1       Types of primary batteries    362

16.2       Production of lithium primary batteries    365

16.2.1     Producers of lithium primary batteries    367

16.3       Trade in primary batteries    369

16.4       Production of primary lithium battery materials    370

16.4.1     Producers of lithium primary battery anodes    371

16.5       Consumption of lithium primary batteries    373

16.5.1     Outlook for primary lithium battery consumption    374

16.6       Consumption of lithium in primary batteries    374

16.6.1     Outlook for demand for lithium in primary batteries    377

17.        Use of lithium in aluminium smelting    378

17.1       Process of aluminium smelting    378

17.2       Consumers of lithium in aluminium smelting    380

17.3       Consumption of lithium in aluminium smelting    382

17.3.1     Outlook for lithium demand in aluminium smelting    383

18.        Minor end-uses for lithium    385

18.1       Sanitization    385

18.2       Organic synthesis    386

18.3       Construction    388

18.4       Alkyd resins    388

18.5       Alloys    391

18.5.1     Aluminium-lithium alloy    391

18.5.1.1   Producers of aluminium-lithium alloys    394

18.5.1.2   Applications for aluminium-lithium alloys    395

18.5.1.3   Consumption of lithium in aluminium-lithium alloys    398

18.5.1.4   Outlook for demand for lithium in aluminium-lithium alloys    398

18.5.2     Magnesium-lithium alloy    400

18.6       Electronics    400

18.7       Analytical agents    402

18.8       Dyestuffs    402

18.9       Metallurgy    402

18.10      Photographic industry    402

18.11      Welding fluxes    402

18.12      Electrochromic glass    403

18.13      Pharmaceuticals    403

18.13.1    Producers of lithium-based pharmaceuticals    404

18.13.2    Production and consumption of lithium-based pharmaceuticals    404

18.13.3    Consumption of lithium in pharmaceuticals    405

18.14      Speciality lithium inorganics    405

19.        Prices of lithium    408

19.1       Technical-grade lithium mineral prices    409

19.2       Chemical-grade spodumene prices    412

19.3       Technical-grade lithium carbonate prices    413

19.4       Battery-grade lithium carbonate    415

19.5       Technical-grade lithium hydroxide prices    416

19.6       Battery-grade lithium hydroxide prices    418

19.7       Lithium chloride prices    419

19.8       Lithium metal prices    420

19.9       Outlook for lithium prices    421

19.9.1     Technical-grade lithium carbonate prices    421

19.9.2     Battery-grade lithium carbonate prices    424

19.9.3     Technical-grade lithium mineral prices    425

19.9.4     Chemical-grade spodumene prices    425

19.9.5     Lithium hydroxide prices    426

List of Tables

Page

Table 1: World: Forecast nominal and real prices for technical-grade lithium carbonate, 2012 to 2017     8

Table 2: Properties of lithium    10

Table 3: Significant lithium minerals    11

Table 4: Major lithium bearing smectite group members    12

Table 5: Brine concentrations at selected deposits    13

Table 6: Lithium reserves by country     15

Table 7: Composition of standard lithium concentrates     22

Table 8: Specifications for lithium carbonate produced by SQM and Rockwood Lithium     28

Table 9: Specifications for lithium carbonate produced by other suppliers     28

Table 10: Battery grade lithium hydroxide product specifications of major producers      29

Table 11: Production of lithium by country and company, 2005 to 2012     35

Table 12: Capacity and production of lithium minerals by company, 2011 to 2012     39

Table 13: Capacity and production of lithium compounds from brine-based producers, 2011 to 2012     40

Table 14: Capacity and production of lithium mineral converters, 2011 to 2012     42

Table 15: Production of lithium compounds from minerals, 2005 to 2012     43

Table 16: Planned expansions as reported by existing lithium mineral producers to 2017     46

Table 17: Potential lithium mineral producers to 2017     47

Table 18: Planned expansions by existing lithium brine producers to 2017     49

Table 19: Potential new lithium brine projects to 2017     50

Table 20: Planned expansions to production capacity for existing and potential mineral conversion plants     51

Table 21: Afghanistan: Spodumene bearing pegmatites identified in Nuristan, Badakhshan, Nangarhar, Lagman and Uruzgan provinces    55

Table 22: Argentina: Exports of lithium carbonate, 2004 to 2012     57

Table 23: Argentina: Exports of lithium chloride, 2004 to 2012     58

Table 24:FMC: Brine reserves at the Salar del Hombre Muerto    58

Table 25: FMC: Production and value of lithium carbonate and chloride at the Salta plant, Argentina 2005 to 2012     59

Table 26: ADY Resources: Salar del Rincón reserve estimation, 2007    60

Table 27: Lithium Americas: Lithium and potash resource estimation for the Cauchari-Olaroz property, July 2012 61

Table 28: Lithium Americas: Lithium and potash reserve estimation for the Cauchari-Olaroz property, July 2012 61

Table 29: Lithium Americas: Estimated capital costs for Lithium carbonate production at the Cauchari-Olaroz project, July 2012 63

Table 30: Lithium Americas: Estimated operating costs for Cauchari-Olaroz project, July 2012 65

Table 31: Galaxy Resources: Resource estimation for the Sal de Vida project, January 2012 66

Table 32: Galaxy Resources: Reserve estimate for the Sal de Vida project, April 2013 67

Table 33: Galaxy Resources: Estimated capital costs for Sal de Vida project, October 2011 68

Table 34: Orocobre: Agreements between Borax Argentina and other lithium companies    70

Table 35: Orocobre: Resource estimation for the Salar de Olaroz project, May 2011 71

Table 36: Orocobre: Assay results of first battery grade lithium carbonate product from the Orocobre pilot plant    72

Table 37: Orocobre: Capital costs for 16,400tpy LCE operation at the Salar de Olaroz, May 2011 73

Table 38: Orocobre: Operating costs for battery grade lithium carbonate for the Salar de Olaroz, May 2011 73

Table 39: Orocobre: Resource estimation for the Salinas Grande project, April 2012 74

Table 40: Orocobre: Averaged assay results from pit sampling of brine at the Guayatoyoc project    75

Table 41: Orocobre: Maiden resource estimation for the Salar de Cauchari project, October 2012 75

Table 42: Rodinia Lithium: Salar de Diablillos resource estimation, March 2011 76

Table 43: Rodinia Lithium: Estimated capital costs for the Salar de Diablillos project    77

Table 44: Rodinia Lithium: Estimated operating costs for the Salar de Diablillos project    77

Table 45: Rodinia Lithium: Other Argentine lithium projects    78

Table 46: Australia: Exports of mineral substances NES (excl. natural micaceous iron oxides) 2005 to 2012     81

Table 47: Australia: Unit value of mineral substances NES (excl. natural micaeous iron oxides) 2005 to 2011     81

Table 48: Talison Lithium: Resource estimation for the Greenbushes deposit, December 2012 83

Table 49: Talison Lithium: Lithium mineral reserve estimation for the Greenbushes deposit,  December 2012    83

Table 50: Talison Lithium: Li, K and Na content of brines, Salares 7 project saline lakes 1998, (ppm)    84

Table 51: Talison Lithium: Li, K and Na content of brines, Salares 7 project saline lakes 2009, (ppm)    84

Table 52: Talison Lithium: Production and sales of lithium mineral concentrates and ores, 2005 to 2011     85

Table 53: Talison Lithium: Standard lithium mineral concentrate product specifications    87

Table 54: Galaxy Resources: Mount Cattlin mineral resource estimate, February 2011 89

Table 55: Galaxy Resources: Mount Cattlin mineral reserve estimate, December 2011 89

Table 56: Galaxy Resources: James Bay mineral resource estimate, November 2010 89

Table 57: Galaxy Resources: Mt. Cattlin mine and plant production, Q3 2010 – Q4 2011    90

Table 58: Reed Resources : Mt Marion resource estimation, July 2011 91

Table 59: Altura: Mineral resource estimation for the Pilgangoora lithium project, October 2012 92

Table 60: Belgium: Trade is lithium carbonate, 2005 to 2012     95

Table 61: Belgium: Trade in lithium hydroxide and oxide, 2005 to 2012     96

Table 62: Salars and Lagunas in Bolivia identified by Gerencia Nacional de Recursos Evaporíticos    97

Table 63: Results of sampling campaign by Université de Liegé and Universidad Tecnica de Oruro at the Salar de Coipasa, 2002    99

Table 64: Assay data for brines intercepted during drilling at the Pastos Grandes Salar, August 2011 100

Table 65: Brazil: Lithium resource estimation by mineral type, 2009    101

Table 66: Brazil: Trade in lithium chemicals and concentrates, 2004 to 2011     102

Table 67: CBL: Production of lithium concentrates and lithium salts, 2005 to 2011    102

Table 68: Arqueana: Production of lithium concentrates, 2008 to 2011    103

Table 69: Canada: Resources estimations for Canadian lithium projects    106

Table 70: Canada: Imports and exports of lithium compounds 2005 to 2012     108

Table 71: TANCO: Spodumene concentrate production 2005 to 2011     109

Table 72: Canada Lithium: Resource estimation for the Quebec Lithium project, December 2011 109

Table 73: Canada Lithium: Reserve estimation for the Quebec Lithium project, December 2011 110

Table 74: Canada Lithium: Estimated capital expenditure for Quebec Lithium project (inc.LiOH and Na2SO4 plant costs), October 2012 111

Table 75 :Canada Lithium: Estimated operating expenditure for Quebec Lithium project, October 2012 111

Table 76: Nemaska Lithium: Resource estimation for the Whabouchi project, June 2011 113

Table 77: Nemaska Lithium: Reserve estimation for the Whabouchi project, October 2012 113

Table 78: Avalon Rare Metals: Separation Rapids NI 43-101 resource and reserve estimation, 1999    116

Table 79: Perilya Ltd: Mineral resource estimation for Moblan deposit, May 2011 117

Table 80: Rock Tech Lithium: Structure of the Georgia Lake project, November 2011 118

Table 81: Rock Tech Lithium: Updated mineral resource estimation for Georgia Lake project, July 2012 119

Table 82: Glen Eagle: Resource estimation for Authier lithium property, January 2012 121

Table 83: Canada: Lithium exploration projects in Canada with uncompleted scoping studies or PFS in October 2012 122

Table 84: Chile: Lithium carbonate, chloride and hydroxide production, 2004 to 2011     128

Table 85: Chile: Special operating licence bidders for the September 2012 auction    129

Table 86: SQM: Majority shareholders of SQM as of December 31st 2011    130

Table 87: SQM: Reserves within brines at the Salar de Atacama project    131

Table 88: SQM: Production, revenue and value per tonne of lithium compounds, 2003 to 2012    132

Table 89: SQM: Specifications for lithium carbonate     133

Table 90: SQM: Specifications for lithium hydroxide     134

Table 91: RWL: Gross tonnage, value and unit value of lithium carbonate exports, 2006 to 2012    137

Table 92: RWL: Gross tonnage, value and unit value of lithium chloride exports, 2006 to 2012    138

Table 93: Li3 Energy: Resource estimation for the Maricunga property, April 2012 140

Table 94: Chile: Exports of lithium carbonate by destination, 2004 to 2011    144

Table 95: Chile: Lithium carbonate export volume, value and unit price by company, 2005 to 2011    144

Table 96: Chile: Lithium chloride exports by destination, 2004 to 2012    145

Table 97: Chile: Lithium hydroxide exports by destination, 2004 to 2012    146

Table 98: China : Estimated resources and reserves of both lithium mineral and brine operations and projects    148

Table 99: China: Production of lithium, 2003 to 2012    149

Table 100: China: Producers of lithium minerals, 2011 to 2012    151

Table 101: China: Production and capacity of Chinese lithium brine operations, 2011    152

Table 102: China: Mineral conversion plant production and production capacity, 2012    154

Table 103: China: Producers of battery grade lithium metal, 2012    154

Table 104: China: Imports and exports of lithium carbonate, 2005 to 2012     155

Table 105: China: Imports and exports of lithium chloride, 2005 to 2012     156

Table 106: China: Imports and exports of lithium hydroxide, 2005 to 2012     157

Table 107: China: Imports and exports of lithium oxide, 2005 to 2012     157

Table 108: Tibet Lithium New Technology Development: Lithium production, 2010 to 2012    158

Table 109: Qinghai CITIC: Lithium carbonate production, 2008 to 2012     160

Table 110:  Dangxiongcuo reserve estimation from 2006 qualifying report    163

Table 111: Jiangxi Western Resources: Lithium Production, 2010    167

Table 112: Sichuan Tianqi: Production and sales of lithium products, 2010 to 2011     169

Table 113: Galaxy Resources: Battery grade lithium carbonate chemical specifications    172

Table 114: KeliberOy: Claims, reservation and mining concessions for lithium projects held by Keliber in Finland, 2012    181

Table 115: France: Imports and exports of lithium carbonate, 2005 to 2012     183

Table 116: France: Imports and exports of lithium hydroxide and oxide, 2005 to 2012     184

Table 117: Germany: Imports and exports of lithium carbonate, 2005 to 2012     184

Table 118: India: Trade in lithium hydroxide and oxides, 2005 to 2012     187

Table 119: India: Trade in lithium carbonate, 2005 to 2012     187

Table 120: India: Producers of lithium chemicals    188

Table 121: Japan: Trade in lithium carbonate, 2005 to 2012     190

Table 122: Japan: Trade in lithium hydroxide and oxide, 2005 to 2012     191

Table 123: Mexico: LitioMex S.A. concessions and resource estimations    194

Table 124: Namibia: Production of lithium minerals, 1990 to 1998     197

Table 125: Netherlands: Trade in lithium carbonate, 2005 to 2012     198

Table 126: Netherlands: Trade in lithium hydroxide and oxide, 2005 to 2012     199

Table 127: SociedadMineira de Pegmatites: Production of Lithium, 2004 to 2012     200

Table 128: Russia: Deposits of lithium    201

Table 129: Russia: Imports of lithium carbonate, 2002 to 2012     204

Table 130: Russia: Exports of lithium hydroxide, 2002 to 2012     204

Table 131: Russia: Imports of lithium hydroxide, 2002 to 2012     205

Table 132: South Korea: Trade in lithium carbonate, 2005 to 2012     207

Table 133: South Korea: Trade in lithium hydroxide, 2005 to 2012     207

Table 134: Spain: Imports of lithium compounds, 2005 to 2012     208

Table 135: Minera Del Duero: Production of lepidolite in Spain, 2003 to 2011     208

Table 136: Inferred mineral resource estimation for the Doade-Presquerias project, October 2011 209

Table 137: Taiwan: Imports of lithium carbonate, 2005 to 2012     210

Table 138: UK: Imports of lithium carbonate and lithium hydroxides and oxides 2005 to 2012     211

Table 139: USA: Imports and exports of lithium carbonate 2005 to 2012     213

Table 140: USA: Imports and exports of lithium oxide and hydroxide 2005 to 2012     214

Table 141: FMC: Product range    218

Table 142: WLC: Resource estimation for the Kings Valley project, January 2012 219

Table 143: WLC: Reserve estimation for the Kings Valley project, December 2011 220

Table 144: WLC: Estimated operating and capital costs for ‘Case 1′ and ‘Case 2′ scenarios at the Kings Valley project.    221

Table 145: USA: Lithium exploration projects yet to reach scoping study or PFS stage in development    224

Table 146: Zimbabwe: South African imports of mineral substances from Zimbabwe, 2005 to 2012     227

Table 147: Bikita Minerals: Mine production and lithium content 2003 to 2011    228

Table 148: World: Total exports of lithium carbonate, 2005 to 2012     230

Table 149: World: Total imports of lithium carbonate, 2005 to 2012     232

Table 150: World: Total exports of lithium hydroxide and oxide, 2005 to 2012     234

Table 151: World: Total imports of lithium hydroxide and oxide, 2005 to 2012     236

Table 152: World: Major importers and exporters of lithium chloride, 2005 to 2012     237

Table 153: World: Exports of lithium minerals by major lithium mineral producing nations (excl. China), 2005 to 2012     238

Table 154: Chile: Exports of lithium chloride brine1 by SQM to China, 2005 to 2012     238

Table 155: World: Consumption of lithium by end-use, 2002, 2007 and 2012    240

Table 156: World: Estimated consumption of lithium by country/region, 2002, 2007 and 2012     244

Table 157: World: Consumption of lithium by end-use, by product, 2012    246

Table 158: World: Forecast consumption of lithium by end-use, 2012 to 2017     248

Table 159: Japan: Producers of lithium-ion battery cathode materials, 2012    265

Table 160: South Korea: Producers of lithium-ion battery cathode materials, 2012    265

Table 161: China: Producers of lithium-ion battery cathode materials, 2012    266

Table 162: World: Producers of lithium salts for electrolytes, 2012    267

Table 163: World: Lithium battery consumption in 3C products, 2012    269

Table 164: World: Lithium battery consumption in power devices and motive power, 2012    271

Table 165: World: Lithium battery consumption in heavy duty applications, 2012    272

Table 166: World: Lithium battery consumption in transport applications, 2012    274

Table 167: World: Lithium consumption in rechargeable lithium batteries end-use, 2012    275

Table 168: World: Lithium consumption in NiMH and NiCd batteries, 2012    275

Table 169: World: Consumption of lithium in rechargeable batteries by type, 2007 to 2012     277

Table 170: Japan: Consumption of lithium in rechargeable batteries, 2007 to 2012     277

Table 171: World: Consumption of lithium in rechargeable batteries by country, 2007 to 2012     278

Table 172: World: Rechargeable lithium battery demand by market, 2012 and 2017    278

Table 173: World: Comparison of EV production estimates in 2017 by industry consultant    280

Table 174: World: Forecast rechargeable battery consumption in EVs, 2017    281

Table 175: World: Lithium consumption in rechargeable lithium batteries by end-use, 2017    281

Table 176: World: Forecast demand for lithium in rechargeable lithium batteries, 2012 to 2017     282

Table 177: World: Forecast demand for lithium in rechargeable batteries by battery type, 2012 to 2017     282

Table 178: World: Forecast demand for lithium in rechargeable batteries by product type, 2007 to 2012     283

Table 179: Typical whiteware body compositions     285

Table 180: World: Production of ceramic tiles by leading country, 2007 to 2012     287

Table 181: World: Consumption of ceramic tiles by leading countries, 2007 to 2011     289

Table 182: World: Leading ceramic tile manufacturing companies, 2010    290

Table 183: World: Leading sanitaryware manufacturing companies, 2010    292

Table 184: World: Consumption of lithium in ceramics, 2012    300

Table 185: World: Consumption of lithium in ceramics, 2007 to 2012     300

Table 186: World: Forecast demand for lithium in ceramics, 2012 to 2017     301

Table 187: Glass-ceramic matrices    302

Table 188: Compositions of commercial glass-ceramics    303

Table 189: Japan: Consumption of lithium carbonate in glass-ceramics, 2007 to 2012     306

Table 190: World: Consumption of lithium in glass-ceramics by end-use and product type, 2012     307

Table 191: World: Consumption of lithium in glass-ceramics, 2007 to 2012     307

Table 192: World: Forecast demand for lithium in glass-ceramics, 2012 to 2017     308

Table 193: Properties of commercial greases    311

Table 194: World: Producers of lubricating grease    315

Table 195: World: Forecast demand for lithium in greases, 2012 to 2017    322

Table 196: Typical batch compositions for glass by type     323

Table 197: Main sources of lithium used in glass    324

Table 198: EU: Production of glass by type, 1998 to 2012     328

Table 199: USA: Production of container glass, 1999 to 2008    328

Table 200: Typical chemical composition of types of textile-grade fibreglass     329

Table 201: World: Estimated consumption of lithium in glass, 2012     331

Table 202: World: Consumption of lithium in glass, 2007 to 2012     331

Table 203: World: Forecast demand for lithium in glass, 2012 to 2017     332

Table 204: World: Consumption of lithium in continuous casting mould powders, 2007 to 2012     336

Table 205: Japan: Consumption of lithium in fluxes, 2007 to 2012     336

Table 206: World: Forecast demand for lithium in casting powders, 2012 to 2017     337

Table 207: Microstructure of different types of polybutadienes    339

Table 208: World: Producers of SSBR, BR and SBC, 2012    343

Table 209: World: Planned new/expanded SBR, BR and SBC plants    344

Table 210: World: Forecast demand for lithium in synthetic rubber and thermoplastics, 2011 to 2017    349

Table 211: World: Capacity for lithium bromide production, end-2012     355

Table 212: Japan: Consumption of lithium bromide, 2007 to 2012    356

Table 213: World: Forecast demand for lithium in air treatment, 2012 to 2017    361

Table 214: Characteristics of primary lithium batteries    363

Table 215: Japan: Production of primary batteries by type, 1998 to 2012     367

Table 216: World: Trade in lithium primary batteries, 2007 to 2011     369

Table 217: Primary lithium batteries and their material compositions    371

Table 218: Specifications for battery-grade lithium metal     371

Table 219: World: Producers of battery-grade lithium metal, end-2012    372

Table 220: Japan: Consumption of lithium in primary lithium batteries, 2007 to 2012    375

Table 221: Japan: Unit consumption of lithium in primary batteries, 2007 to 2012    375

Table 222: World: Imports of battery-grade lithium metal, 2007 to 2012    376

Table 223: World: Forecast demand for lithium in primary batteries, 2012 to 2017    377

Table 224: Effects of additives and temperatures on properties of molten cryolite    379

Table 225: World: Aluminium smelters using Söderberg technology, end-2012    381

Table 226: World: Forecast demand for lithium in aluminium smelting, 2012 to 2017     384

Table 227: World: Consumption of lithium in other end-uses, 2007, 2012 and 2017     385

Table 228: Examples of uses for lithium in organic synthesis    387

Table 229: Physical properties of Al-Li alloys    392

Table 230: Chemical composition of Al-Li alloys     393

Table 231: Use of Al-Li alloys in selected aircraft    397

Table 232: World: Forecast demand for lithium in aluminium-lithium alloys, 2012 to 2017    399

Table 233: Properties of lithium niobate and lithium tantalite    401

Table 234: Applications for SAW components    401

Table 235: Applications for speciality inorganic lithium compounds    406

Table 236: Prices of lithium minerals, 2000-2013     410

Table 237: Comparison of prices for lithium minerals and carbonate, 2004 to 2012    411

Table 238: Comparison of prices for chemical-grade spodumene concentrate and lithium carbonate, 2004 to 2012    412

Table 239: Comparison of technical- and battery- grade lithium carbonate prices, 2004 to 2012     416

Table 240: Average values of exports/imports of lithium oxides and hydroxides by leading exporting/importing country, 2004 to 2012     417

Table 241: Average values of exports of lithium chloride by leading producing country, 2004 to 2012    420

Table 242: Average values of exports of lithium metal by leading producing country, 2004 to 2012    421

Table 243: World: Forecast nominal and real prices for technical-grade lithium carbonate, 2012 to 2017     423

Table 244: World: Forecast nominal prices for technical-grade lithium carbonate and chemical-grade lithium minerals, 2012 to 2017     425

Table 245: World: Forecast nominal prices for technical-grade lithium carbonate and technical-grade lithium hydroxide, 2012 to 2017     426

List of Figures

Figure 1: Lithium product flow chart and main end-uses, 2012     1

Figure 2: Consumption of lithium by end-use, 2000 to 2012     2

Figure 3: Production of lithium by country, 2000 to 2012     4

Figure 4: Price history of lithium carbonate, 1990 to 2012    6

Figure 5: World: Forecast real prices for technical-grade lithium carbonate, 2012 to 2017     9

Figure 6: Overview of lithium production    16

Figure 7: Extraction and processing of brines from the Salar de Atacama, Chile and Silver Peak, Nevada by Rockwood Lithium    18

Figure 8: Flow sheet showing the processing of brines at Salar de Carmen by SQM    19

Figure 9: Simplified flow sheet of the Li SX™ method patented by Bateman Lithium Projects    21

Figure 10: Simplified mineral concentrate production flow sheet for a typical hard rock lithium operation    22

Figure 11: Simplified flow sheet for lithium carbonate production from spodumene mineral concentrate using the acid-roast method    24

Figure 12: Simplified flow sheet for lithium hydroxide and lithium hydroxide monohydrate production from spodumene mineral concentrate using the lime-roast method    25

Figure 13: Simplified flow sheet for lithium carbonate production from hectorite clay developed by Western Lithium    27

Figure 14: Mining and milling costs for hard rock lithium mineral operations/projects    31

Figure 15: Lithium carbonate cash operating costs, 2012    32

Figure 16:  Potential new producers production costs    33

Figure 17: World: Production of lithium by country, 2000 to 2012     34

Figure 18: Production of lithium from mineral and brine sources, 2005 to 2012     37

Figure 19: Production of lithium minerals by company, 2012     38

Figure 20: Production of lithium from brines by country, 2005 to 2012     40

Figure 21: Planned production capacity and consumption for lithium, 2012 to 2017     45

Figure 22: Forecast production and consumption of lithium, 2012 to 2017     54

Figure 23: Pilot plant flow sheet developed for Lithium Americas at SGS Mineral Services    62

Figure 24: Brazil: Production of Lithium products 2005 to 2010     101

Figure 25: SQM: Lithium sales by destination 2011, 2009, 2007 and 2005     135

Figure 26: SQM: Destination of lithium carbonate exports, 2006 to 2011     136

Figure 27: China: Location of mineral conversion and lithium chemical/metal plants in China, 2012    153

Figure 28: Japan: Imports of lithium carbonate, hydroxide & oxide and combined LCE, 2005 to 2012     191

Figure 29: World: Leading exporters of lithium carbonate, 2006, 2008, 2010 and 2012    231

Figure 30: World: Leading importers of lithium carbonate, 2006, 2008, 2010 and 2012    233

Figure 31: World: Leading exporters of lithium hydroxide and oxides, 2006, 2008, 2010 and 2012    235

Figure 32: World: Growth in consumption of lithium, 2000 to 2012    239

Figure 33: World: Consumption of lithium by end-use, 2012    240

Figure 34: World: Consumption of lithium by end-use, 2000 to 2012     241

Figure 35: World: Consumption of lithium by end-use, 2000 to 2012     241

Figure 36: World: Estimated consumption of lithium by country/region, 2002, 2007 and 2012     244

Figure 37: World: Consumption of lithium by product, 2012     245

Figure 38: World: Consumption of lithium by type, 2000 to 2012     247

Figure 39: World: Historical and forecast consumption of lithium by end-use, 2007 to 2017     248

Figure 40: World: Forecast consumption of lithium by form, 2007, 2012 and 2017     252

Figure 41: Specific energy and energy density of rechargeable batteries    253

Figure 42: Lithium-ion battery schematic    254

Figure 43: Lithium metal polymer battery schematic    256

Figure 44: Lithium-sulphur cell schematic    257

Figure 45: Lithium-air cell schematic    258

Figure 46: World: Production of rechargeable batteries1, 1995 to 2012     259

Figure 47: World: Production of rechargeable batteries1, 1995 to 2012     260

Figure 48: World: Rechargeable lithium battery production by country, 2000 to 2012     260

Figure 49: Lithium-ion battery materials value chain    263

Figure 50: World: Production of lithium cathode materials by type, 2000 to 2012    264

Figure 51: World: Market for rechargeable lithium batteries by end-use, 2002, 2007 and 2012     268

Figure 52: World: Market for rechargeable lithium batteries by end-use, 2012     269

Figure 53: World: Production of rechargeable batteries and consumption of lithium, 2000 to 2012    276

Figure 54: World: Market for rechargeable lithium batteries by end-use, 2002 to 2017     279

Figure 55: World: Ceramic tile production by region, 2007 and 2012     288

Figure 56: World: Sanitaryware production by region/country, 2010    291

Figure 57: World: Production of tableware by country/region, 2008    293

Figure 58: USA: Shipments of cookware, bakeware and kitchenware, 2001 to 2010    295

Figure 59: World: Shipments of white goods by region, 2000 to 2020    296

Figure 60: World: Year-on-year growth in construction spending and GDP, 2000 to 2017    298

Figure 61: World: Production of lubricating grease by additive type, 2011     312

Figure 62: World: Production of lubricating grease by type, 2000 to 2012    313

Figure 63: World: Production of lithium grease by region/country and by type,  2000 and 2011     314

Figure 64: World: Output of automobiles by region, 2000 to 2012    318

Figure 65: World: Deliveries of commercial aircraft, 2000 to 2012    318

Figure 66: World: Shipbuilding deliveries, 2000 to 2012    319

Figure 67: World: Relative industrial and transport output and lithium grease production, 2002 to 2011    320

Figure 68: World: Production of grease and consumption of lithium, 2000 to 2012    321

Figure 69: World: Estimated production of glass by type, 2012    326

Figure 70: World: Production of container glass by region/country, 2012    326

Figure 71: World: Consumption of glass packaging by region, 2011    327

Figure 72: World: Production of continuously cast steel by region, 1998 to 2012     335

Figure 73: World: Capacity for synthetic rubber production by country/region, 2012    340

Figure 74: World: Capacity for BR, ESBR and SSBR rubber by country/region, end-2011    341

Figure 75: World: SBC capacity by region/country, end-2010    341

Figure 76: World: Production of synthetic rubber by region, 1996 to 2011     342

Figure 77: World: Consumption of synthetic rubber by type, 2012    345

Figure 78: World: consumption of BR by end-use, 2010    346

Figure 79: World: Consumption of SBC by region/country, 2010    347

Figure 80: Consumption of SBC by end-use, 2007    347

Figure 81: World: Production of absorption chillers, 2003 to 2012    352

Figure 82: World: Consumption of lithium bromide in air treatment, 2001 to 2012    356

Figure 83: Specific energy and energy density of primary batteries    362

Figure 84: Primary and secondary battery gravimetric energy density    365

Figure 85: World: Production of primary lithium batteries by country, 1998 to 2012     366

Figure 86: Primary lithium battery schematics    370

Figure 87: World: Demand for lithium metal in primary batteries, 2000 to 2012    376

Figure 88: World: Aluminium output by type and lithium consumption, 2000 to 2012    383

Figure 89: World: Consumption of alkyd-based paints and coatings, 2010    390

Figure 90: Development of Al-Li alloys    392

Figure 91: World: Deliveries of commercial aircraft and lithium consumption, 2007 to 2019    399

Figure 92: Price history of lithium carbonate, 1990 to 2012    408

Figure 93: Compound annual prices of lithium minerals, 2000 to 2013     411

Figure 94: Prices for technical-grade lithium carbonate, 1999 to 2012     414

Figure 95: Prices for battery-grade lithium carbonate, 1999 to 2012     415

Figure 96: Comparison of lithium hydroxide and lithium carbonate prices, 2000 to 2012     418

Figure 97: Japan: Quarterly average import value of lithium hydroxide from the USA, 2008 to 2012     419

Figure 98: World: Forecast nominal prices for technical-grade lithium carbonate, 2012 to 2017     423

Figure 99: World: Forecast real prices for technical-grade lithium carbonate, 2012 to 2017     424

For further information on this report, please contact Robert Baylis (rbaylis@roskill.co.uk).

SOURCE Roskill Information Services

 

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GSMA Establishes Office In Nairobi To Support Burgeoning African Telecoms Market

Posted on 15 May 2013 by Africa Business

Mobile Connections in Sub-Saharan Africa Increase 20 Per Cent to 500 Million in 2013 and Are Expected to Increase by an Additional 50 Per Cent by 2018

iHub is Nairobi‘s Innovation Hub for the technology community, which is an open space for the technologists, investors, tech companies and hackers in the area. This space is a tech community facility with a focus on young entrepreneurs, web and mobile phone programmers, designers and researchers. It is part open community workspace (co-working), part vector for investors and VCs and part incubator. More information can be found here: http://www.ihub.co.ke/about

About the GSMA
The GSMA represents the interests of mobile operators worldwide. Spanning more than 220 countries, the GSMA unites nearly 800 of the world’s mobile operators with more than 230 companies in the broader mobile ecosystem, including handset makers, software companies, equipment providers and Internet companies, as well as organisations in industry sectors such as financial services, healthcare, media, transport and utilities. The GSMA also produces industry-leading events such as the Mobile World Congress and Mobile Asia Expo.


NAIROBI, Kenya, May 15, 2013 /PRNewswire/ – The GSMA today announced that it has opened a permanent office in Nairobi, Kenya. The office will be based in the heart of Nairobi‘s Innovation Hub (iHub) for the technology community and will enable the GSMA to work even more closely with its members and other industry stakeholders to extend the reach and socio-economic benefits of mobile throughout Africa.

“It is an exciting time to launch our new office in Africa, as the region is an increasingly vibrant and critical market for the mobile industry, representing over 10 per cent of the global market,” said Anne Bouverot , Director General, GSMA. “The rapid pace of mobile adoption has delivered an explosion of innovation and huge economic benefits in the region, directly contributing US$ 32 billion to the Sub-Saharan African economy, or 4.4 per cent of GDP. With necessary spectrum allocations and transparent regulation, the mobile industry could also fuel the creation of 14.9 million new jobs in the region between 2015 and 2020.”

According to the latest GSMA’s Wireless Intelligence data, total mobile connections in Sub-Saharan Africa passed the 500 million mark in Q1 2013, increasing by about 20 per cent year-on-year. Connections are expected to grow by a further 50 per cent, or 250 million connections, over the next five years which requires greater regulatory certainty to foster investment and release of additional harmonised spectrum for mobile.

The region currently accounts for about two-thirds of connections in Africa but the amount of spectrum allocated to mobile services in Africa is among the lowest worldwide. Governments in Sub-Saharan Africa risk undermining their broadband and development goals unless more spectrum is made available. In particular, the release of the Digital Dividend spectrum – which has the ideal characteristics for delivering mobile broadband, particularly to rural populations – should be a priority.

The region also has some of the highest levels of mobile internet usage globally. In Zimbabwe and Nigeria, mobile accounts for over half of all web traffic at 58.1 per cent and 57.9 per cent respectively, compared to a 10 per cent global average. 3G penetration levels are forecast to reach a quarter of the population in Sub-Saharan Africa by 2017 (from six per cent in 2012) as the use of mobile-specific services develops.

However, despite the high number of connections, rapid growth and mobile internet usage, mobile penetration among individuals remains relatively low. Fewer than 250 million people had subscribed to a mobile service in the region, putting unique subscriber penetration at 30 per cent, meaning that more than two-thirds of the population have yet to acquire their first mobile phone. Clearly, there is an important opportunity for the mobile industry to bring connectivity, access to information and services to the people in this region.

The mobile industry contributes approximately 3.5 million full-time jobs in the region. This has also spurred a wave of technology and content innovation with more than 50 ‘innovation hubs’ created to develop local skills and content in the field of ICT services, including the Limbe Labs in Cameroon, the iHub in Kenya and Hive Colab in Uganda.

Of particular note is the role of Kenya as the global leader in mobile money transfer services via M-PESA, a service launched by the country’s largest mobile operator Safaricom in 2007. What started as a simple way to extend banking services to the unbanked citizens of Kenya has now evolved into a mobile payment system based on accounts held by the operator, with transactions authorised and recorded in real time using secure SMS. Since its launch, M-PESA has grown to reach 15 million registered users and contributes 18 per cent of Safaricom’s total revenue.

To support this huge increase in innovation, the mobile industry has invested around US$ 16.5 billion over the past five years (US$ 2.8 billion in 2011 alone) across the five key countries in the region, mainly directed towards the expansion of network capacity. At the same time, given the exponential growth, Sub-Saharan Africa faces a looming ‘capacity and coverage crunch’ in terms of available mobile spectrum and the GSMA is working with operators and governments to address this critical issue.

GSMA research has found that by releasing the Digital Dividend and 2.6GHz spectrum by 2015, the governments of Sub-Saharan Africa could increase annual GDP by US$82 billion by 2025 and annual government tax revenues by US$18 billion and add up to 27 million jobs by 2025. In many Sub-Saharan African countries, mobile broadband is the only possible route to deliver the Internet to citizens and the current spectrum allocations across the region generally lag behind those of other countries.

“A positive and supportive regulatory environment and sufficient spectrum allocation is critical to the further growth of mobile in Africa,” continued Ms. Bouverot. “I am confident that now that we have a physical presence in Africa, we will be able to work together with our members to put the conditions in place that will facilitate the expansion of mobile, bringing important connectivity and services to all in the region.”

For more information, please visit the GSMA corporate website at www.gsma.com or Mobile World Live, the online portal for the mobile communications industry, at www.mobileworldlive.com.

SOURCE GSMA

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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

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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.”

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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

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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

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Multi-faceted consumer car market bucks economic trend, says Standard Bank South Africa

Posted on 06 May 2013 by Africa Business

The South African new car market is bucking the economic trend with sales increasing by 4.1% to 163 092 units during the first three months of 2013 when compared to the same period last year. This is despite tough economic conditions, with the South African Reserve Bank expecting GDP to grow by only 2.7% during 2013.

Sydney Soundy, head of Vehicle and Asset Finance at Standard Bank South Africa, says that the prosperity within the market is notable when compared to other sectors, which were feeling the brunt of reduced consumer spending and the cost pressure caused by higher inflation and fuel prices, among other factors.

“Consumers seem to be taking advantage of the low interest rate environment and clearly still have an appetite for secured credit,” Mr Soundy says.

Vehicle sales continue to be driven by passenger vehicles and individual purchases. As at February 2013 total vehicle instalment debtors and leases were made up largely by individuals, who made up 72% of the instalment and leases book.

Looking at the South African buyer reveals several interesting facts.

“The majority of people applying for vehicle finance are between the ages of 18 and 45, constituting 62.4% of the market. These consumers display the highest level of awareness about technical changes to vehicles taking place in the industry, the brand offerings available, the legislation and the financial offerings available to buyers,” Mr Soundy says.

He notes that manufacturers have reacted to this knowledgeable sector of the market by ensuring that their offerings are competitively priced and offer the features demanded. One of the results is a diversified market in which about 70 brands of passenger vehicle are available, offering customers a choice of around 2 500 variants.

“About 65% of consumers are purchasing cars that cost less than R200 000. Toyota, Hyundai and Volkswagen are some of the manufacturers that have met the need for buying economical vehicles, capturing 50% of the new car market in this segment,” he said. Smaller engine vehicles (<1.7 litres) have seen the biggest sales growth in recent times, growing by just under 12% in 2012 from 2011, compared to growth of 9% and 1% for medium (1.8 to 3 litres) and large (>3 litres) engine vehicles respectively.

Consumers have been addressing the monthly affordability of repayments for their vehicles of choice in different ways, including through financing vehicles over a longer period, using the Residual Value option on their finance deals, and varying the extent of deposits offered.

The advent of the National Credit Act has also seen finance contracts taken over longer terms, with the average contract for new vehicles now being just over 60 months. “The average settlement period for new vehicles however, is just over 40 months,” Mr Soundy says.

Applications with a residual value request have increased, with the overall percentage of applications received with residual values at around 13% in the first quarter of 2013, from just over 11% in 2012. Consumers are seeing the benefit of this finance option, in which the monthly installments are reduced due to a residual value.

In the first quarter of this year, Standard Bank South Africa has seen an increase in the number of vehicle finance applications; however the percentage of applications with deposits have declined, with more consumers seeking to finance vehicles without a deposit.

Mr. Soundy also notes that although the traditional installment sale agreement remains very popular, consideration for alternative financing options, such as rental and leasing options, is gaining traction.

“Astute consumers are well aware that a vehicle cannot be deemed an asset. They are shifting the risk of vehicle ownership and residual values, and the responsibility of disposing the vehicle at the end of the contract, to the financier.”

Looking ahead, Mr Soundy notes that certain factors this year may work against growth in new vehicles sales. These include the Rand exchange rate which could put pressure on vehicle prices, continuing high levels of consumer household debt, and the high level of households with impaired credit records. Increases in food prices, energy prices (both fuel and electricity), and transport costs, including toll fees, will also impact on consumers’ disposable income. Inflation will be under pressure to remain below the target of 6% in 2013, impacted largely by the depreciation of the Rand and higher fuel prices.

“The Rand is likely to remain sensitive to both domestic and global developments. This could have a negative knock-on effect on vehicle prices,” he says. “However, the effect of the exchange rate has not yet reflected in car sales. Last year, vehicle prices rose by only 2.2% year-on-year.”

Mr Soundy believes that the continuing current low interest rate environment and the competitive nature of the South African motor industry will provide potential boost for growth in the market.

He says that Standard Bank South Africa’s financing activities will continue to be based on responsible lending that takes into account cash flow optimisation for both personal and commercial customers.

“Regardless of the economic situation, we will continue to assist customers by developing and providing financial services that make the acquisition of vehicles, whether for private or corporate use, as easy as possible.”

Source: StandardBank.com

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Kenya’s Newest Payments Innovation: Equity and Google launch Electronic Payments

Posted on 30 April 2013 by Africa Business

Consumers can enjoy quick and easy cashless bus ticketing with BebaPay: convenient for

passengers and operators

www.beba.co.ke

About BebaCard

BebaPay is an Equity product regulated by CBK, powered using technology by Google, a global leader in technology who bring their expertise in mobile and Near Field Communication (NFC) technology.

About Equity Bank

Equity Bank commenced business in Kenya on registration in 1984.It has evolved from a small Building Society, a Microfinance Institution; to currently the all-inclusive financial services provider which is listed on the Nairobi Securities Exchange and Uganda Securities Exchange.

Equity Bank Group is one of the region’s leading banks whose purpose is to transform the lives and livelihoods of the people of Africa socially and economically by availing them modern, inclusive financial services that maximize their opportunities. While the Equity brand is associated with empowerment of un-banked & the poorly banked segment of population, the Bank has evolved to become an all-inclusive bank for all. With nearly 8 million accounts, Equity Bank is the largest bank in the region in terms of customer base. The Bank has operations in Kenya, Uganda, South Sudan, Rwanda, and Tanzania. www.equitybankgroup.com

About Google Inc.

Google’s innovative search technologies connect millions of people around the world with information every day. Founded in 1998 by Stanford Ph.D. students Larry Page and Sergey Brin,Google today is a top web property in all major global markets. Google’s targeted advertising program provides businesses of all sizes with measurable results, while enhancing the overall web experience for users. Google is headquartered in Silicon Valley with offices throughout the Americas, Europe, Africa and Asia. For more information, visit http://www.google.com/africa and our Google Africa Blog: google-africa.blogspot.com.  You can also follow Google’s Africa team on Twitter: twitter.com/googleafrica

 

 

Nairobi, 30th May 2013: Equity and Google today announced BebaPay, Kenya’s newest cashless innovation to make payments easy and more convenient for consumers and merchants. With BebaPay, bus passengers can sign up for a card and top up for free at Equity agents. Customers can also top up their cards via mobile money. BebaPay helps to overcome the problem of using cash and receiving the correct change when paying for public transport on the bus or “matatu”.  BebaPay is the first payments system of its kind for Kenya.

BebaPay makes it easy to pay for your bus fare and helps you budget and track your spending.  All you do is swipe your card on the card reader in order to pay. You also get free SMS receipts and the BebaPay website makes it easy to budget and manage your expenses on your mobile or computer.  You can get a BebaPay card for yourself, family members or co-workers.  Bus conductors can use BebaPay on a Near Field Communication (NFC)-enabled Android phone to accept payments from BebaPay smart cards.

Dr James Mwangi, CEO, Equity Bank, says that “The BebaPay card is a first for Kenya and will change the transport industry when it comes to payment. It is a convenient local payment solution that makes it easy to budget and manage one’s expenses on a mobile phone or computer”.

“Research showed that technology could help bus operators and passengers to ease the process of ticketing, so we’re pleased that Nairobi commuters can now enjoy the advantages of BebaPay”, says Joe Mucheru, Google Kenya Country Manager.  “Using NFC is part of Google’s efforts to improve transactions for both businesses and consumers. NFC makes it easier for people to pay for goods and services, and gives merchants extra ways to connect with their customers using technology and the Internet”.

Lucia Atieno, a daily commuter who has been using BebaPay card for over 6 months, said “I now spend less on bus fares, since I can plan in advance how much money I need for a particular period of time. The conductors never leave with my change, which used to happen a lot if I forgot to as ask for it.  Greatest of all, no more chunks of paper in my handbag in the name of receipts!

Equity Bank and Google will be using affordable NFC-enabled Android devices that are available in Kenya and can be used for BebaPay.  Currently BebaPay is only available at key bus stops such as Kencom House. Equity Bank is working on rolling out BebaPay to more locations over time.

Note: Android is a trademark of Google Inc.

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Renforcement du partenariat entre l’Allemand Krone et la Centrale d’équipements et de carrosserie industrielle (C.E.C.I.)

Posted on 29 April 2013 by Africa Business

Les marchés maghrébin et subsaharien en ligne de mire.

Un an et demi après le démarrage de leur coopération, l’entreprise allemande Krone – un des leaders mondiaux de la carrosserie pour semi-remorques – et la Centrale d’équipements et de carrosserie industrielle (C.E.C.I.) passent à la vitesse supérieure. Les deux partenaires viennent d’annoncer vendredi dernier lors de la conférence et exposition organisés par C.E.C.I. le 26 Avril 2013 à Tanger, l’entame d’une seconde phase devant aboutir la mise en place de nouveaux produits KRONE adaptés aux besoins du marché marocain et maghrébin.

Le succès de C.E.C.I. concernant la commercialisation de 200 semi-remorques Krone de la gamme Cool Liner, Dry Liner et Profi Liner au Maroc, en une année au Maroc, a encouragé le constructeur allemand à aller plus loin dans le partenariat. Gero SCHULZE ISFORT, Directeur Général du groupe KRONE, a exprimé à l’occasion de la conférence de presse, a témoigné la gratitude de son groupe à Madjid BAZGONEH, Directeur Général de C.E.C.I. « C’est un résultat formidable qui se base sur une collaboration épatante et qui confirme notre décision d’établir nos produits sur le continent nord-africain »,affirme Gero SCHULZE ISFORT. Il rajoute « KRONE se prépare à investir dorénavant dans le développement des produits adaptés aux besoins du marché marocain et maghrébin avec son partenaire C.E.C.I. qui dispose au-delà de toutes les capacités techniques et humaines ainsi que du savoir-faire nécessaires afin de pouvoir fournir un excellent service aux clients ». M. SCHULZE ISFORT et M. BAZGONEH insistent donc ensemble sur ce partenariat parfait qui vise à répondre aux exigences des clients marocains.

En même temps, M. SCHULZE ISFORT profite de l’occasion afin de remercier les nombreux clients pour la confiance qu’ils vouent à la marque KRONE. « En Europe, KRONE est depuis des décennies l’un des leaders du marché des véhicules utilitaires. L’idée que de plus en plus d‘entreprises marocaines misent sur nos produits est une preuve de l’excellente qualité de la marque KRONE, ce qui nous réjouit », dit M. SCHULZE ISFORT. En outre, il souligne que KRONE voit beaucoup de potentiel non seulement au Maroc, mais aussi dans les pays voisins. A ce titre, C.E.C.I. et KRONE étudient actuellement le projet d’une collaboration commune en Algérie. De ce fait, le montage local, le service ainsi que la mise à disposition de pièces de rechange sont des facteurs de succès prépondérants que les deux entreprises ciblent. « L’intérêt que portent les clients sur les semi-remorques de toute la gamme KRONE est sans doute positif », confirme Madjid BAZGONEH. C’est pourquoi C.E.C.I. est optimiste concernant le fait que les parts du marché KRONE s’amélioreront encore considérablement au Maroc.

Le partenariat avec C.E.C.I est à forte valeur ajoutée pour Krone qui ambitionne de se développer en Afrique. C.EC.I a un pied déjà posé en Afrique subsaharienne notamment au Sénégal.

Vision stratégique de la société C.E.C.I.

«Après la consolidation de sa place de leader dans le secteur de la fabrication de tous types de carrosseries légères isothermes et multiservices et toute solution d’intégration, la société C.E.C.I s’est lancée dans la vente de semi-remorques de tous type en partenariat exclusif avec la société KRONE Allemagne » rappel M. Madjid BAZGONEH. La vision stratégique des dirigeants de la société C.E.C.I est de se doter de tous les moyens financiers, techniques, humains et de savoir-faire pour participer à la mise à niveau du secteur de la carrosserie légère et lourde au Maroc et mettre en place une vraie industrie avec tous ce que cela implique.« Grâce à sa proximité des opérateurs économiques marocains dans le domaine du transport, ses relations quotidiennes avec les autorités et services qui veillent au respect des réglementations en vigueur et sa parfaite connaissance du marché local et régional, la société C.E.C.I. a pu se forger une idée très claire des attentes du Maroc dans le domaine. » rajoute M. BAZGONEH. L’idée que véhicule les dirigeants de C.E.C.I est de participer à fournir au Maroc les moyens de réussir toutes ses réformes concernant le secteur de la logistique dans son volet de transport de produits alimentaires et non alimentaires et ce dans le respect des normes internationales en matières de transport et de sécurité.

A propos de KRONE

KRONE est une entreprise allemande, un des leaders mondiaux de l’industrie des semi-remorques. Elle dispose, à ce jour de plusieurs sites de production industrielle dont 4 en Europe et 1 en Turquie. Sa gamme de produits est très diversifiée et est composée de semi-remorques frigorifiques, fourgon, bâchées, porte-container et de semi-remorques spéciales porte-bobines acier / papier. KRONE se distingue par la qualité exceptionnelle de ses produits qui intègrent des notions d’innovation, de qualité en respectant les contraintes énergétiques et de coûts.

Pour plus d’informations, consultez le site www.krone-trailer.com

A propos de C.E.C.I.

La Centrale d’Equipement & Carrosserie Industrielle est une entreprise marocaine spécialisée dans le domaine de la carrosserie industrielle et la distribution d’accessoires et d’équipements (pour camions légers et semi-remorques). La société C.E.C.I SARL a réalisé en 9 années d’activité dans le secteur de la carrosserie industrielle au Maroc un développement très important. Elle a pu se positionner dans un temps très brefs comme le Leader de la profession et un élément incontournable dans le développement du métier de la carrosserie industrielle au vu des changements opérés au niveau des législations et des nouvelles réglementations mises en place depuis 2 ans par les autorités marocaines.

Pour plus d’informations, consultez le site www.C.E.C.I..ma

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Partenariat KRONE – C.E.C.I. : L’allemand Krone, un des leaders mondiaux de l’industrie des semi-remorques, renforce sa présence au Maroc

Posted on 27 April 2013 by Africa Business

L’allemand Krone, un des leaders mondiaux de l’industrie des semi-remorques, renforce sa présence au Maroc grâce à la Consolidation de son partenariat avec l’entreprise marocaine la Centrale d’Equipement & Carrosserie Industrielle (C.EC.I). Les deux partenaires viennent de passer à la vitesse supérieure avec l’entame d’une seconde phase devant aboutir la mise en place de nouveaux produits KRONE adaptés aux besoins du marché marocain et maghrébin.

Se consolider sur le Marché marocain et faire du Royaume un hub régional. Tel est l’ambition de Krone qui peut se réjouir d’avoir trouvé le partenaire idéal, C.E.C.I. La première phase de la collaboration entre Krone et C.E.C.I. entamé il y a près de deux ans a porté ses fruits et encourager l’entreprise allemande à aller plus loin.

Le Directeur Général du groupe KRONE, Gero SCHULZE ISFORT, remercie le Directeur Général de C.E.C.I., Madjid BAZGONEH, pour l’excellent démarrage de la commercialisation des semi-remorques KRONE sur le marché marocain. Depuis le début du partenariat il y a un an et demi, la société C.E.C.I. a commercialisé déjà environ 200 véhicules KRONE de la gamme Cool Liner, Dry Liner et Profi Liner au Maroc.

« C’est un résultat formidable qui se base sur une collaboration épatante et qui confirme notre décision d’établir nos produits sur le continent nord-africain », affirme Gero SCHULZE ISFORT dans son allocution lors de la conférence et exposition organisés par C.E.C.I. le 26 Avril 2013 à Tanger. Il rajoute « KRONE se prépare à investir dorénavant dans le développement des produits adaptés aux besoins du marché marocain et maghrébin avec son partenaire C.E.C.I. qui dispose au-delà de toutes les capacités techniques et humaines ainsi que du savoir-faire nécessaires afin de pouvoir fournir un excellent service aux clients ». M. SCHULZE ISFORT et M. BAZGONEH insistent donc ensemble sur ce partenariat parfait qui vise à répondre aux exigences des clients marocains.

En même temps, M. SCHULZE ISFORT profite de l’occasion afin de remercier les nombreux clients pour la confiance qu’ils vouent à la marque KRONE. « En Europe, KRONE est depuis des décennies l’un des leaders du marché des véhicules utilitaires. L’idée que de plus en plus d‘entreprises marocaines misent sur nos produits est une preuve de l’excellente qualité de la marque KRONE, ce qui nous réjouit », dit M. SCHULZE ISFORT. En outre, il souligne que KRONE voit beaucoup de potentiel non seulement au Maroc, mais aussi dans les pays voisins. A ce titre, C.E.C.I. et KRONE étudient actuellement le projet d’une collaboration commune en Algérie. De ce fait, le montage local, le service ainsi que la mise à disposition de pièces de rechange sont des facteurs de succès prépondérants que les deux entreprises ciblent. « L’intérêt que portent les clients sur les semi-remorques de toute la gamme KRONE est sans doute positif », confirme Madjid BAZGONEH. C’est pourquoi C.E.C.I. est optimiste concernant le fait que les parts du marché KRONE s’amélioreront encore considérablement au Maroc.

Vision stratégique de la société C.E.C.I.

«Après la consolidation de sa place de leader dans le secteur de la fabrication de tous types de carrosseries légères isothermes et multiservices et toute solution d’intégration, la société C.E.C.I s’est lancée dans la vente de semi-remorques de tous type en partenariat exclusif avec la société KRONE Allemagne » rappel M. Madjid BAZGONEH. La vision stratégique des dirigeants de la société C.E.C.I est de se doter de tous les moyens financiers, techniques, humains et de savoir-faire pour participer à la mise à niveau du secteur de la carrosserie légère et lourde au Maroc et mettre en place une vraie industrie avec tous ce que cela implique. « Grâce à sa proximité des opérateurs économiques marocains dans le domaine du transport, ses relations quotidiennes avec les autorités et services qui veillent au respect des réglementations en vigueur et sa parfaite connaissance du marché local et régional, la société C.E.C.I. a pu se forger une idée très claire des attentes du Maroc dans le domaine. » rajoute M. BAZGONEH. L’idée que véhicule les dirigeants de C.E.C.I est de participer à fournir au Maroc les moyens de réussir toutes ses réformes concernant le secteur de la logistique dans son volet de transport de produits alimentaires et non alimentaires et ce dans le respect des normes internationales en matières de transport et de sécurité.

A propos de KRONE

KRONE est une entreprise allemande, un des leaders mondiaux de l’industrie des semi-remorques. Elle dispose, à ce jour de plusieurs sites de production industrielle dont 4 en Europe et 1 en Turquie. Sa gamme de produits est très diversifiée et est composée de semi-remorques frigorifiques, fourgon, bâchées, porte-container et de semi-remorques spéciales porte-bobines acier / papier. KRONE se distingue par la qualité exceptionnelle de ses produits qui intègrent des notions d’innovation, de qualité en respectant les contraintes énergétiques et de coûts.

Pour plus d’informations, consultez le site www.krone-trailer.com

A propos de C.E.C.I.

La Centrale d’Equipement & Carrosserie Industrielle est une entreprise marocaine spécialisée dans le domaine de la carrosserie industrielle et la distribution d’accessoires et d’équipements (pour camions légers et semi-remorques). La société C.E.C.I SARL a réalisé en 9 années d’activité dans le secteur de la carrosserie industrielle au Maroc un développement très important. Elle a pu se positionner dans un temps très brefs comme le Leader de la profession et un élément incontournable dans le développement du métier de la carrosserie industrielle au vu des changements opérés au niveau des législations et des nouvelles réglementations mises en place depuis 2 ans par les autorités marocaines.

Pour plus d’informations, consultez le site www.C.E.C.I..ma

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