Unlocking African markets for South African stakeholders

Despite Africa’s market and political challenges, local property developers, contractors and investors are still delivering projects successfully throughout the continent.

How South African companies manage to do this will be one of the topics in the spotlight at the 8th annual Africa Property Investment (API) Summit & Expo (www.APIsummit.co.za), taking place at the Sandton Convention Centre this week (Thursday 24th and Friday 25th August 2017).

One of the core focus discussions will be on managing project delivery risk in Africa. While emerging African markets are filled with long-term growth and investment opportunities, conventional insurers and financiers remain hesitant about covering local property stakeholders wanting to do business in African markets.

Mandisi Nkuhlu, COO of the Export Credit Insurance Corporation of South Africa (ECIC), believes the reliability of the income stream, on a project, is one of the most notable challenges property financiers and investors must deal with.

Nkuhlu says: “In financing a property transaction, for instance a mall or office space, it is important to get a reliable anchor tenant who is willing and able to commit to a long-term lease. Whilst there is a strong market practice on the continent of paying large up-front lease payments, the reliability of the income stream over the debt repayment period and contractual lock-in arrangements remain crucial. The financing tends to be provided in hard currency, whereas the tenants may be generating local revenue streams, so the currency mismatch is one of the risks that have to be mitigated.”

As the African property landscape shifts and investors and developers increase their focus on delivering projects on time and within budget, Nkuhlu believes there is a growing need for proper planning around managing in-country and Africa specific risk.

He adds: “There are quite a few projects that struggle to reach construction completion on time and on schedule. Sorting out the construction risk is quite important. In this regard, choosing the right contractor with the relevant experience for the size and complexity of the project is critical. The contractual arrangements and risk allocation, such as penalties for delays or poor workmanship, needs to ensure that the construction company has sufficient incentives to perform and avoid the contractual breaches. Locking in key and sufficient tenants before financial close is another useful risk mitigation of the commercial risk.”

Nkuhlu, Greg Pearson, Director of GRIT Mauritius, Zo Hlongwane, COO of G5 Properties and Nick Allan, Group Chief Executive Officer of Control Risks, South Africa will go deeper into this topic at the summit sharing an experts’ guide to successful development and risk mitigation in Africa.

This discussion is just one of many for this year’s API Summit & Expo, which will see participation from over 35 countries, with 600 delegates and 250 companies attending, offering a programme aimed at providing a wide range of key insights and infinite networking opportunities.

Commenting on the importance of this discussion Kfir Rusin, Managing Director for API Events says: “Hosting a discussion around managing project delivery risk in Africa and sharing on the ground experiences, knowledge and risk mitigating tactics from companies like ECIC is of utmost importance and will help in ensuring better project delivery for all African property stakeholders going forward.”

For more information and to book to attend, visit www.APISummit.co.za.

API Events welcomes media to attend and report on the API Summit and the compelling story of African Property Investment. All media wanting an invitation to attend the API Summit or to arrange interviews should please contact Anne Lovell: Anne@MarketingConcepts.co.za or +27 11 783 0700.

Distributed by APO on behalf of Africa Property Investment (API) Summit & Expo.

Media contact:
Kfir Rusin, Managing Director
Tel: 011 205 2260
www.APIevents.com

Source:: Unlocking African markets for South African stakeholders

      

Categories: AFRICA, African Economics | Tags:

Nigeria : Dangote signs $450million jumbo sugar production MoU with Niger State

In another bold move for self-sufficiency in sugar production through the government’s backward integration policy, the Pan African Conglomerate, Dangote Group (www.Dangote.com) today in Minna, Niger State signed a Memorandum of Understanding (MoU) with the State Government for the establishment of a jumbo $450million state-of–art and fully integrated sugar complex.

On completion, according to the President of the Group Aliko Dangote, the project will generate over 15,000 jobs in the state and bring about a complete economic turn-around for the state.

The $450million pact which was signed in the government house will see the company producing raw sugarcane on 16,000 hectares of land at Lavun Local Government through an out-grower scheme.

The company, which is currently operating out-grower scheme in rice production in a number of states, has Africa’s largest sugar refinery in Lagos and a sugar cane plantation in Numan, Adamawa State.

Mr. Dangote said his investment was informed by his Company’s firm belief in the potentials of the Nigerian economy, adding that the new outlay will add value and create jobs for Nigerians.

He commended the state Governor, Alh. Abubakar Sani Bello for his foresight and efforts to woo investors to Niger State noting “the Dangote’s Integrated Sugar Project in Niger State will also include the establishment of integrated sugar mills, generate power, produce molasses, ethanol fuel, biomass and produce animal feeds.”

In his remarks, Governor Bello said the deal will revolutionize agriculture in his state and Nigeria. Expressing joy that the MoU was signed during his own administration, he described Dangote as the liberator of the Nigerian economy and a dependable partner.

The Governor then urged Dangote Group to explore other investment opportunities available in the state, just as he announced that the state was opened for multi-sectoral investments.

Representative of the Minister of Industry, Trade and Investment, Alhaji Aminu Bisala said Dangote is the biggest private sector supporter of the Nigerian economy, and Federal Government policies.

He said the Federal Government was comfortable with the numerous investments efforts of the Dangote Group.

Also speaking, Chairman of the Niger State Traditional Council Etsu Nupe, Alhaji Abubakar Yahyah said he was elated about the huge investment coming to the state, while praying God to bless the Dangote Group more.

Just last week, the conglomerate had sponsored an investment summit in the State, which was attended by former Presidents Abdulsalami Abubakar, Olusegun Obasanjo and the then Acting President, Yemi Osinbajo, who described the private sector as key to the country’s economic development.

Group Managing Director of Dangote Sugar Plc, Engr. Abdullahi Sule stated that the MoU would be a game changer for Niger State economy and Nigeria as a whole.

He said the integrated sugar mills will have the capacity to produce 160,000MT of raw sugar, pointing out that has been in the fore front of support for government industrialization programmes through backward integration policy in agriculture.

According to him, the Dangote Sugar Refinery is developing a sugar backward integration plan through the production of 1.5MT/PA in ten years in: Nasarawa, Adamawa, Kogi, Kwara, Taraba and Niger states respectively.

The Group’s Executive Director Stakeholders’ Management and Corporate Communication Ahmed Mansur had also announced that the Group was investing over $1billion in the agricultural sector in the country, specifically in rice, sugar, tomato and dairy productions.

Niger State Commissioner for Investment, Commerce and Industry Rahmatu Muhammad Yar’Adua said that the deal with Dangote Group will help grow the agricultural sector and create direct and indirect jobs in the state.

It would be recalled that the Group’s foray into sugar business began in 1981. It has injected over $104million into the Savannah Sugar Company Limited it acquired from government in 2003. Savannah Sugar this year alone, produced 20,000MT of raw sugar from its plantation.

Distributed by APO on behalf of Dangote Group.

Media Contact:
Francis Awowole-Browne
Francis.Awowole@Dangote.com
+234 806 630 4898

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Source:: Dangote signs $450million jumbo sugar production Memorandum of Understanding (MoU) with Niger State

      

Categories: AFRICA, African Environmental Issues, Nigeria | Tags: , ,

South Africa : U.S. Mission Supports Community Journalism at MMX17

With the support of a grant from the U.S. Consulate General in Johannesburg, media practitioners from community radio stations in Gauteng had the opportunity to attend the Menell Media Exchange 2017 conference (MMX17) in Bryanston August 11-12, 2017.

Reporters and presenters from Mamelodi’s community radio station Mams FM and Alexandra Township’s Alex FM joined hundreds of reporters, producers, journalists, and presenters from commercial and public service media at the conference. The Consulate General’s grant to U.S.-based Duke University also enabled the Children’s Radio Foundation (CRF) to share their expertise on best practices for community media, including a pop-up studio where the young reporters were able to interview leaders in the media industry.

Ntebo Mohlala, a reporter from Mams FM said: “I’ve gained so much as a young reporter from attending this conference. I’m grateful for the opportunity I got to learn from experienced people and the confidence I gained interviewing some of them.” Alex FM presenter Neo “Cappuccino” Dithloiso echoed Mohlala’s sentiments: “My highlights were networking with the big players and interviewing influential people through the CRF pop-up studio. I’m really glad I got this opportunity.”

U.S. Consul General Mike McCarthy reaffirmed the United States’ commitment to media development, noting that “community radio plays a critical role in disseminating information on everything from health care to politics across the country. Community radio’s importance to South Africans cannot be underestimated and we are delighted to have helped MMX17 extend the reach of its programming to South African reporters who might otherwise not have benefited. We are especially pleased to have done this in partnership with such an esteemed American university as Duke.”

The conference was one of several academic exchange and professional development programs supported by the U.S. Mission throughout the year. These programs, sponsored by the U.S. Department of State, promote dialogue and encourage mutual understanding between Americans and South Africans.

Distributed by APO on behalf of U.S. Embassy Pretoria, South Africa.

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Source:: U.S. Mission Supports Community Journalism at MMX17

      

Categories: AFRICA, South Africa | Tags:

Tanzania : Handover of buildings: Living and working for the protection of the Serengeti

On Tuesday, the German Ambassador in Tanzania, H.E. Dr. Detlef Wächter, presented newly constructed office and staff buildings in Fort Ikoma to Professor Jumanne Maghembe, the Tanzanian Minister of Natural Resources and Tourism.

The buildings were constructed in the framework of the Serengeti Ecosystem Development and Conservation Project, which is financed by KfW Development Bank on behalf of the Government of the Federal Republic of Germany and implemented by Tanzania National Parks. Additional financing and implementation support is provided by Frankfurt Zoological Society.

“These new buildings greatly strengthen the park authorities’ presence in the Serengeti and we appreciate this contribution of our German partners to the protection of the ecosystem,” said Minister Maghembe. Serengeti National Park has moved most staff out of the National Park to reduce the human footprint in the natural landscape. The new houses are located in Fort Ikoma on the north-western boundary of the National Park.

“Tanzania and Germany can look back on a long and successful partnership in protecting the Serengeti. These new buildings are another manifestation of our commitment to further strengthen this partnership and to conserve this ecosystem,” said the German Ambassador Dr. Detlef Wächter.

Germany made funding available through its development bank KfW in the context of the ‘Serengeti Ecosystem Development and Conservation Project’ (SEDCP), which has a total volume of EUR 24 million (approximately TSH 58 billion). The project aims at the effective conservation and sustainable use of natural resources as well as at rural development in selected districts adjacent to the Serengeti to ensure that the globally significant ecosystem remains intact. Community-based conservation and benefit-sharing play a major role in the project. Tanzania National Parks (TANAPA) is implementing the project with support from Frankfurt Zoological Society (FZS) and in close collaboration with the Tanzanian Ministry of Natural Resources and Tourism and the Serengeti and Ngorongoro Districts.

Construction of the three office and four residential buildings was commissioned by FZS. The office buildings will provide quality working space for up to twenty park management and outreach staff. The residential houses can accommodate up to seven employees and will help to reduce the housing shortages of the park outreach staff. The cost of construction was about EUR 580,000, (approximately TSH 1.4 billion). The construction began in June 2016 and was completed in July 2017.Within the SEDCP project, it is planned to construct 25 more housing units for 50 rangers over the next three years.

The houses were built using hydraform bricks, a cost-effective and environmentally friendly construction material. Hydraform machines use hydraulic pressure to form blocks out of a mixture of soil, sand and about ten percent cement. The bricks dry in the sun without the need of burning, as is the case in traditional brick-making. They are interlocking and can be used without mortar.

Distributed by APO on behalf of Embassy of the Federal Republic of Germany – Tanzania.

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Source:: Handover of buildings: Living and working for the protection of the Serengeti

      

Categories: AFRICA, Tanzania | Tags: ,