Business: Latest News
Dana Sanchez, 10:32 am
Faced with an escalating price war at home in India, Bharti Airtel is looking to its African operations to reduce debt. India is one of the most competitive telecom markets in the world. The company lost $91 million in Africa in Q3 of 2016. Airtel has 22.14 percent market share in Nigeria and 34.1 million customers. Market observers in Nigeria say lack of access to foreign exchange for operators, falling revenue per user and customers’ lack of disposable income are hurting telecom operators in the country.
Peter Pedroncelli, 7:00 am AFKI Original
Last week Davos 2017 took place in Switzerland, with the annual week-long World Economic Forum meeting bringing together the world’s economic elite to discuss global issues and solutions to challenges that face the world at large. Africa plays a key part in these discussions, with politicians, business people and others with an interest in Africa’s economic future making their way to the gathering in order to contribute to various discussions. Here are 12 insightful quotes from African representatives who were present at Davos 2017.
Dana Sanchez, 3:21 pm AFKI Original
There are not a lot of hotels near Cape Town International Airport. Most business and leisure travelers are in a hurry to get to Cape Town, or reluctant to leave, and understandably so, given the city’s many attractions. That’s why the 145-room Hotel Verde, a three-minute drive to Cape Town International Airport, feels like such a game changer. I stayed there on a trip to Cape Town and it felt like a glimpse into the future of the hotel industry. General Manager Samantha Annandale told me the hotel got at least $2.6M in free publicity just for being green.
Global Law Firms Bypass South African Alliances And Set Up Independent Offices For African ExpansionBy Dana Sanchez, 2:20 pm
When apartheid ended, local law firms had unprecedented growth as SA re-entered the global economy. Leading law firms came calling and formed local alliances. “South African firms had to decide whether they wanted to be South African, African or global,” a stakeholder said. More recently, international firms have bypassed local ones, opening their own offices. SA is a jumping-off point for building networks of offices throughout the continent. Don’t expect the SA influx of international firms to end anytime soon, stakeholders say.
Dana Sanchez, 11:22 am
Islamic finance is in its early stages in Africa but the potential is getting huge attention from financiers on the continent, due in part to the demographic realities of Africa. Muslims account for 40 percent or more of the population in nearly half the countries in Africa. Africa’s infrastructure deficit needs around $90 billion in investment each year for the next 10 years, according to consulting firm EY. Sukuk could be an affordable way for African governments to fill the gap.
Dana Sanchez, 2:13 pm
After oil prices crashed, Angola could no longer service its US$25 billion debt to China. Since the loans were supposed to be paid in oil, most of Angola’s crude production now goes to debt repayment, leaving little to finance economic development. Spending has decreased by 40 percent and cuts to water sanitation and waste collection helped put Angola sixth-to-last on World Bank’s index of inequality. Unlike Angola, Mozambique’s foreign debt and accompanying economic problems cannot be traced back to Chinese loans. Instead they are the result of Chinese illegal fishing in its waters.
Tom Jackson, 9:51 am AFKI Original
In 2017, expect more African reverse innovations that address local challenges and have global applications. Expect more drones. More Africans connected to the internet. Expect the calls for faster, cheaper internet to grow louder in 2017. Four key players in the African tech space talked to AFKInsider about what they know for sure and what they’re looking forward to in 2017: BRCK co-founder Erik Hersman, project Isizwe founder Alan Knott-Craig, Jumia co-CEO Jeremy Hodara and Ovum analyst Danson Njue.
Staff, 5:31 pm
In KwaZulu-Natal the strongest activity is along the North Coast from Durban to Ballito — popular among investors. Residential development in upscale areas such as uMhlanga and Sibaya is enormous, prompting converns of oversupply, but home prices are expected to increase. Durban’s North and South Beach areas, including The Point, have increased as popular residential areas, thanks in part to the general upgrade to the Promenade.
Dana Sanchez, 11:09 am
ECOWAS is credited with persuading Gambian dictator Yahya Jammeh to give up power. If there’s a lesson to be learned, it’s that it takes some external persuasion to remove a dictator. “Forget Trump,” a commentator said. “We in Africa were watching the Gambia and the drama there as African leadership for once, stood up to a tyrant and insisted he respect the outcome of an election.” This regional intervention represents a paradigm shift in African governance, an exiled Zimbabwean judge said. It’s no longer dictatorship as usual in Africa.
Staff, 1:00 am
An investment fund that describes itself as “the first cross-border fund between Africa and France” wants to help French companies expand in Africa and African companies expand into France and other E.U. markets. Investments will be in the form of equity participation, generally through minority stakes. The fund’s capital will targeted towards African startups displaying a high growth potential. Investors include Orange, Bpifrance, Société Générale and Proparco.
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