Monday, March 26, 2018

On your trademark, get set up, Africa!

In the face of a shrinking world market and a lack of prospects in the West, Africa is increasingly like a place to do business.

Africa, with its history of anxiety and chaos and social turmoil, has demonstrated our amazing resilience and sense of survival.

The International Monetary Fund predicts that overall emerging economies, especially Africa, will grow by 4.5% this year and by 4.8% in 2013. The index of interest is the value of residential properties, which rose by an average of 8% in 2011. (AFDB statistics) Since the economic recession in some parts of the world, economic growth is expected to continue.

Although there are income gaps across Africa, the real middle class is evolving. It is estimated that 60 million African families earn more than 3,000 U.S. dollars a year at market exchange rates. By 2015, this figure is expected to reach 100 million.

Urbanization drives demand for various real estate: office space, retail complexes, and housing. Infrastructure projects have great growth and potential. This also brought a positive turn for the workforce.

It can be said that South African companies are scrambling. Recently, Resilient is known for its continuous and successful development of non-metropolitan shopping centers outside the main nodes of the city. They expressed their dissatisfaction with the local festival and revealed that they will build 10 shopping centers in Nigeria and spend more than 1 billion rand. In the next three years, the capital cities of Abuja and Lagos will become the main commercial centers. These exhibition halls cover an area of ​​10,000 square meters and cover an area of ​​15,000 square meters. Shoprite, the largest food retailer in Africa, will become the main tenant.

Massmart, owned by Wal-Mart last month, said it will invest in Africa's growth and increase its food retail business from approximately US$7 billion to approximately US$20 billion over the next five years. But its South African food retailers, Shoprite and Pick n Pay, are all firmly established in Africa. Pick n Pay has used US$400 million to increase African growth through the sale of Franklin in Australia.

Shoprite has only about 123 stores in Africa and about 1,730 local stores, and will add 174 stores in Africa next year. On the other hand, salaries were extended to Malawi and the Democratic Republic of the Congo during the year. The food retailer has more than 93 stores in Africa north of South Africa. Zambia and Zimbabwe are expanding. Woolworths unwillingly opened 14 stores through its corporate development programs in Nigeria, Uganda, Zambia, Kenya, Mauritius, Tanzania, and Mozambique. Woolworths currently has branches in 12 countries and nearly 60 stores in Africa (except South Africa).

Further investment in the competitive environment in Africa may take the form of the purchase of South African food retailers by Tesco, Carrefour and Metro. Walmart's consumption of Massmart has been widely publicized.

Slightly different, Do not Waste Services (DWS), the largest on-site waste management company in South Africa, announced their intention to open subsidiaries in Botswana, Kenya, Zambia, Mauritius and Swaziland. The company - active in the mining, retail, hospitality, healthcare and large industrial markets, currently provides its customers with more than 300 companies with minimal waste services. Recently expanded to Mauritius, the company is keen to replicate their successful models in other African countries.

In real estate, JHI Real Estate Zimbabwe has added more than 15 real estate investment portfolios, more than 50, as it is managing the Ascendant Property Fund (APF), an unlisted real estate investment fund. JHI has expanded from its home base in South Africa to Zambia, Ghana, Namibia, Botswana, Lesotho and Nigeria. With the significant growth of the retail market in Zimbabwe, it increased by approximately 9% year-on-year and further expanded. APF CEO Kura Chihota expects Zimbabwe to actively promote growth. "Zimbabwe expects the economic growth rate to reach 9% per year and the prospects are good." Chihota said recently.

JHI Properties has also been named the leasing agent of Joina City, Joina City is an emerging high-end city "has incorporated four-story retail and 18-story offices in Harare. The main tenants include South Africa's big names Spar and Edgars. [19659002] Take us to Bigan, Pegan bought us at the Mombela Stadium in Nelspruit, Olievehotbosch Ministerial Housing Project, Oliver Tambo International Terminal Project and ESKOM Coal Hauleage Road Repair, are negotiating with Ghana Real Estate Company, Economically affordable housing for the poor and middle-income groups

The Ghanaian housing gap is about 1.5 million units, Bitan believes that it has the ability to provide and help reduce Ghana's housing deficit, according to their experience in South Africa, in Bikaner's Emmanuel Kere. It is believed that companies can not only "support the (housing) sector in Ghana, but also support the development of the entire infrastructure.

Bitan claims to build 30,000 homes in South Africa, and many provide Ghanaian companies. Dr. Iraj Abedian, chairman of Bigen Africa, said that due to the country's stable political environment and friendly business climate, the company was attracted by Ghana. Bitan will not apologize and it intends to use Ghana as a springboard for launching operations in Senegal, Liberia, Nigeria and Sierra Leone.

The South African government is also unable to play an active role in the fight for Africa. Public investment companies (PICs) representing civil servants are Looking for potential private equity partners, Public Investment Company (PIC) is looking for potential private equity partners that manage more than Rmb1,000bn for civil servants, accounting for 10% of the company's JSE market value. 10% of the portfolio will be Investing outside South Africa, Rs 50 billion is set aside for investment in Africa According to PIC CEO Elias Masila, in an interview with Reuters, 60% of the funds will be about 30 billion euros for private equity He said that prior informed consent may be a participant in infrastructure investment. Roads, dams, hospitals and power stations are being built for countries in the African continent

Standard banks operating in 18 African countries attach importance to infrastructure.Sim Tshabalala, vice president of Standard Bank Group, interviewed by Goldman Sachs Hugo Scott-Gall Says: "In most sub-Saharan Africa, infrastructure has almost collapsed or is limited. Many infrastructures will be refurbished, mainly due to the support of Brazilians and Chinese. Our relationship with the Industrial and Commercial Bank of China also helps us identify opportunities and implement them. ICBC is a 20% shareholder.

As a member of the African market in South Africa, Standard Bank has positioned itself as a channel or channel between other BRIC partners who want to connect with the African continent. For example, Standard Bank has a cooperation agreement to identify Chinese companies and state-owned enterprises (state-owned enterprises) that are looking for opportunities in the Mainland.

Since it is estimated that Africa needs about US$90 billion annually to handle its backlog of infrastructure, it is currently raising about US$70 billion, so Standard Bank has used it as a work of foreign intermediary agencies. This comes from a series of sources: taxes, the banking system, and a large amount of venture capital from the outside. The banking systems of individual countries in Africa are unable to finance all necessary infrastructure activities and will therefore rely on international capital markets and the international banking system.

Standard Bank's business in Africa is not isolated. ABSA has obtained approval from regulatory authorities. Launching a greenfield insurance business in Zambia, the number of sub-Saharan African countries that have Barclays Bank's insurance business reaches four. First National Bank (FNB) has announced plans to invest nearly $2 billion in the next 12 months as South Africa's third largest bank (in terms of number of customers) to expand its footprint in South Africa and Africa. It is believed that the acquisition is being considered in Nigeria and a reconnaissance mission has been dispatched to Ghana. The bank operates in eight countries in Africa, including South Africa, with about 7 million subscribers in SA and about 1.1 million subscribers in Africa. FNB Tanzania is its latest increase, and its Zambian sector has announced plans to establish a nationwide branch network by 2016.

There is no doubt that some South African companies are looking at Africa more urgently. The EU's fiscal problems reveal South Africa's vulnerability to European issues. More than 25% of bilateral trade in South Africa comes from the European Union. If the European GDP declines, it indicates that the goods shipped from Africa have decreased. This is not a good sign for South Africa. Expanding and investing in Africa can expand South Africa's horizons without mentioning its vulnerability.

But in the words of Standard Bank's Sim Tshabalala: "As a South African, I would love to believe that the sustainability of the country's competitive advantage as an entry point to the African continent, for example, has not passed through South Africa because these countries are Building the necessary hard infrastructure and the necessary financial and legal infrastructure."

Therefore, it seems that South Africa's competitive advantage is weakening because other parts of the continent are developed. At the same time, many companies are seeing the gap and entering the war. It now appears that the future is true.




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