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Browse our Business Opportunities listings to find exciting business and investment
opportunities in Africa.
Looking to grow your business in Africa? Promote your companys Distribution, Franchise and
general Business Opportunities to How we made it in Africas 100,000 monthly visitors.
Click here for more information about listing an opportunity.
Madison
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Type of Opportunity: Distributor / Agent / Reseller
Overview of Opportunity:
MADISON The Heart of New York is a leading footwear brand inspired by the fashion capital of
the world. MADISON is positioned as one of South Africas most successful footwear brands and is
expanding to seek distribution opportunities throughout the African continent.
MADISON was established by Shane and Pauline McEvoy in 2009. The team developed a range of
shoes for women who have a fearless approach to fashion.
Each collection has energetic injections of colour and detail for the sophisticated women who love
the MADISON lifestyle. From sandals and wedges to glamorous statement heels,MADISON has
every trend covered.
MADISON is looking for importers all over Africa who would like to offer stylish, quality footwear that
delivers beyond expectation in terms of price in their respective markets. This can be as a
wholesaler where you will distribute to retailers within your respective market or as an e-commerce
partner focusing solely on online retail. With millions of people accessing the internet via laptops,
tablet devices and mobile phones an opportunity exists for selected MADISON partners in different
countries to exploit this market it is surely an area that offers massive growth potential and profit
for a partnering company marketing MADISONs exclusive range of female footwear.
MADISONs Africa Head Office, based in Cape Town, South Africa, will arrange for orders received
to be shipped, either from MADISONs warehouses in South Africa or direct
from MADISONs international factories.
MADISON actively markets its footwear by:
Point of Sale: Supporting retail stores with visual merchandise material and in store brand
activations.
Digital Community Management: Engage with internet users on Facebook, Pinterest, Twitter,
Youtube and Instagram.
Media Strategy: Product placement features in magazines, fashion blogs, radio and TV.
Brand Ambassadors: Establishing relationships with influential celebrities to wear MADISON and
share their passion for the brand.
Strategic Partnerships: Through Miles for Style, an

exclusive online community marketing and promoting premium aspirational brands from a select
community of supply partners to the general public and, in particular, members of Voyager, South
African Airways loyalty programme.
Corporate Social Investment: Giving back to the community via collections and donations to charity
partners.
We will provide twice yearly seasonal marketing campaign collateral to beautifully showcase
summer and winter trends. This powerful imagery builds brand identity and is a key marketing tool.
Images can be used at a nominal fee.
With our experience in global ladies fashion footwear market and your local country and footwear
knowledge, together we can become Africas leading brand offering great quality, trendy, fashionable
designs and affordable ladies fashion footwear across the African continent.
Should you wish to join the MADISON team and bring this leading ladies fashion footwear brand to
your market, please contact us for more information.
Business Name: Madison
Email: info@madisonheartofnewyork.com
Phone Number: +27 21 510 4510
Fax: +27 86 606 4742

Website: www.madisonheartofnewyork.com
Sector(s): Consumer Goods & Retail
Affordable housing
Transport services
African Land Investments eyeing malls

in key markets across the continent
BY DINFIN MULUPI | 7 APRIL 2014 AT 11:26
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The expansion of international and regional retailers into emerging markets in Africa is
fuelling a wave of the construction of modern shopping centres. Africas fast-growing cities
are home to a growing middle class whose heightened appetite for quality goods and
convenience is changing the retail business.
African Land Investments CE Kevin Teeroovengadum
African retail brands including Kenyas Nakumatt supermarket chain and South Africas Famous
Brands, Woolworths, Pick n Pay and the Foschini Group are expanding to other parts of the
continent, targeting the emerging middle class. Most of these brands are anchor tenants of new
malls planned for, or under construction in countries such as Kenya, Nigeria and Ghana.
Real estate investment company African Land Investments (ALI) is seeking to buy shopping malls in
growing markets in the continent. Established last year, ALI provides an exit option for individual
developers and private equity funds which own shopping malls in the continent.
ALI owns the US$140m Manda Hill Mall in Zambias capital Lusaka. The 44,000m mall is the
biggest in sub-Saharan Africa, outside South Africa.
ALI CE Kevin Teeroovengadum says the firm intends to grow its portfolio to $500m in the next three
years. He explains that the increasing number of malls under construction in Africa is testament to
the continents changing economic environment and its growing appeal to investors.
Speaking to How we made it in Africa on the sidelines of the recent East Africa Property Investment
Summit in Nairobi, Teeroovengadum said ALI is eyeing high quality malls in defensive locations and
good catchment areas.
Our strategy in the next two years is to go and find big defensive shopping malls that we can buy
and grow our portfolio to half a billion US dollars.
Teeroovengadum notes that in the markets ALI is eyeing, it is expecting fair returns.
Given that we have bought in Lusaka we are going to be looking at other opportunities in Zambia,
but there you have got limited opportunity because it is not a big market. We are going to be
focusing on West Africa; we are very keen to get into the Nigerian market. In East Africa we are
looking at the region as opposed to a single country but we still need to be in Kenya. Nairobi is
going to be an important market for us to look at.
Teeroovengadum says its South African shareholders are seeking passive income in high-growth
economies. ALI is owned by Johannesburg Stock Exchange-listed property firms Hyprop (87%) and
Attacq, previously Atterbury Investment (12.4%).
In the rest of Africa we can buy income producing assets in a growing market. In South Africa the
economy is not growing that well [about] 2.5% GDP growth, whilst in markets like Kenya and
Nigeria you are talking about 6%-8%.
He notes that there are not many malls up for purchase in most countries but this is likely to change
over the next year.
It is only in the last couple of years that we have seen private equity funds developing these malls.
Its very limited opportunities, but on the other hand there are very few buyers who have got funding
like we do to go and do those deals. We estimate in the next year or so you are going to have at
least two or three assets per country that will be available for sale.
Diversifying against risk
One challenge ALI is likely to face as it purchases property in different countries is how to get
minimum tax leakages.
Its very easy to look at Africa and think all the countries are the same but the reality is they have
got different tax regimes, different governments [and] different rules when it comes to ownership.
Each country has its own specificities and I think that is what is challenging. That is also why it does
take time to do deals. You need lots of hard work to make deals happen.
The threat of terrorism will also be a major concern especially in high risk countries like Kenya
andNigeria. Last Septembers attack on the Westgate shopping mall in Nairobi in which 67 people
were killed has ignited debate on safety in malls which host thousands of people at any given time.
In the aftermath of the attack hundreds of people have lost their jobs and business owners are still
counting the losses. The damaged mall remains closed.
To cushion itself from the effects of such an event, the ALI boss says the firm will diversify its
portfolio across various countries and cities.
There are countries and cities where you have higher risk. In Zambia we have got no risk of
terrorism at all. If we buy in Nigeria we will probably look at Lagos and Abuja but not further up north
[where Boko Haram attacks are frequent]. What we are hoping is that when we have a $500m
portfolio, a mall in Nairobi will only represent maybe 20% of that so that if something happens it
doesnt impact the whole portfolio.
Five things you can learn from Kenyas

top businesspeople
BY STAFF WRITER | 31 MARCH 2014 AT 14:54
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Over the past years How we made it in Africa has interviewed many of Kenyas most successful
businesspeople and entrepreneurs. They have all overcome numerous hurdles to get to where they
are today. Below are some insights to help you get ahead in your own endeavours.
Seven Seas Technologies CEO Mike Macharia says businesspeople should consider the opportunities across the continent.
1. Be patient and dont give up too quickly

Gina Din-Kariuki, founder of one of Kenyasmost successful PR companies Gina Din Corporate
Communications, says entrepreneurs shouldnt give up on their ideas too quickly.
Every time I have wanted to quit and there have been a few [times] its at that point that [I was
at] the very verge of greatness that moment after is when its your next leap of success. Its really
interesting, she says. What I would say to people starting their businesses now is hang in there.
The journey of an entrepreneur is never straight. There are potholes on the way but we have to
stay in there for the long haul.
Bob Collymore, CEO of mobile telecommunications giant Safaricom, agrees, saying businesspeople
and entrepreneurs need to be patient. Success is a long journey whose path is wrought with
missteps, wrong decisions, discouragement, skewed plans and sometimes, failure. Be flexible; if
something doesnt work out, learn from the situation and move on.
2. Get involved in what you know
Pete Muraya has had many failures in business before finding success in property development.
The CEO of Suraya Property Group advises other entrepreneurs not to make the mistakes he made
by investing in businesses they know nothing about. Real estate has attracted a lot of investors in
recent years due to its potential high returns, but Muraya urges entrepreneurs to exercise caution.
Real estate is good business, there is good money but one needs to be careful. If you want to go
into real estate, dont do it because you heard Muraya is making money, [otherwise] you are going to
burn like crazy. Spend time researching it. By the time you get into it, you should have a good
understanding about what it involves.
3. Listen to the advice of others
Entrepreneurs shouldnt have a know-it-all approach, says Joanne Mwangi, founder of marketing
company PMS Group. She adds that listening to advice and criticism, especially from outsiders, can
be eye opening.
You must accept that you are not perfect because for a lot of entrepreneurs that is our greatest
weakness, me being one. Someone else might just tell you something that will completely
revolutionise your business. There is nothing as important as an outside perspective. Somebody
looking from outward-in will see things you dont see.
4. Turn challenges into opportunities

I have no time to think about challenges, says Njeri Rionge, tech entrepreneur and founder of
Wananchi Online. Even when they come I try to solve them so quickly and get over with it. Because
I convert them, they stop being challenges. I have been at many points where I knew the cookie was
about to crumble, but my focus was [that] it cannot crumble, therefore I focus on the upward
movement.
5. Think beyond your home market
Many African countries are currently experiencing strong economic growth. While numerous
challenges remain, industrialist Manu Chandaria says people should grab hold of the opportunities
on the continent.
When [the] iron is hot, you hit it, you shape it. This is the time that Africa has all the possibilities and
whoever misses it will miss [out] for good, notes Chandaria.
Mike Macharia, CEO of Seven Seas Technologies, agrees that businesspeople should consider the
potential in other parts of the continent outside of their home markets.
My vision has expanded on a radically global scale. I dont sit down and think about Kenya only, as
was previously the case. I have re-energised my passion and consider myself an African
entrepreneur, says Macharia.
Africa has plenty of innovative, like-minded entrepreneurs who, he says, need to start looking at the
region as a whole and creating partnerships to drive the African agenda globally.
The Chinese look at Africa from this continent-wide perspective with a view to consolidating
opportunities and combining resources. We need to stop compartmentalising countries and looking
at Kenya on its own, Uganda on its own, and so on. It would be significantly value adding all-round
to find solutions that address African problems as a whole, advises Macharia.
Tenacity required to survive in real

estate industry, says Ghanaian
developer
BY JACO MARITZ | 26 SEPTEMBER 2013 AT 14:09
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When Harry Quartey started his Ghana-based real estate development business, Emerald
Properties, more than a decade ago, business was much tougher than it is today.
Harry Quartey, CEO of Emerald Properties
I went through a lot of difficulties trying to get buyers. Even though I reduced [the prices] of my units
drastically, I still had a bit of a challenge. But it is expected. In this part of the world we are in a
market where so many people have been disappointed so many times. If you are new, they dont
really want to take any chance on you, Quartey says of the early years.
He describes his first sale as a mixed feeling due to the fact that he sold the unit for a much lower
price than originally planned.
Educated in the US, Quartey returned to his country of birth towards the end of the 1990s. After
working for a local mortgage bank for a couple of years, he decided to take the plunge and in 2001
started his own property development company, specialising in apartment complexes in Accras top
neighbourhoods.
To date Emerald has developed a number of apartment blocks across Ghanas capital.
Growing demand for apartments
Over the last decade Accra has seen an increase in demand for apartments, as opposed to freestanding houses.
The demand for apartments is very high. It has been this way for the last 10 years. Weve seen a
steady growth and interest in apartments The cost of land has gone up about more than 10 times
over the last 10 years People would rather invest in what they can afford, which is apartments,
Quartey explains.
According to Quartey, the majority of buyers of Emeralds properties are Ghanaians. Most of these
properties are bought for investment purposes and then rented to expats. He is however, seeing an
increasing number of buyers also occupying these properties.
He says Ghanas nascent oil industry has pushed up demand for accommodation. Ghana started
with offshore oil production in 2011, and the industry has been responsible for much of the countrys
rapid economic growth over the past two years.
We dont just sell the units, but we also manage the units that we build, so we have a fairly good
idea about the clientele who is coming in for rentals. We are definitely seeing an increase in
companies providing services for the oil companies, as well as the oil companies themselves have
taken up some of our units, says Quartey.
Honesty and perseverance required
Quartey notes that financing is one of the biggest challenges of operating in Ghanas property
industry. In many instances, banks are hesitant to provide long-term funding.
Emerald has attracted investment from SME-focused private equity firm Jacana Partners. Quartey
says Emeralds track record and the fact that it has a private equity firm on board, make is slightly
easier to access financing.
He says honesty is essential to make it in Ghanas real estate market. You have to be honest. This
market is full of individuals who always try to cut corners, to make more money off the customer. In
this business, as well as any other business, I think honesty is key.
When you take a long term view of whatever you are doing, you dont just take a look at the profits
that you make on one house, you look at what you make on the subsequent 200 homes. If you are
honest and the customer believes in you, the word gets out there, and the customers will come in.
Quartey adds that those looking for success in the property industry need to have the capacity to
persevere through the various challenges. You need to have a lot of perseverance, because it is not
easy raising funding, and getting a lot of these permits that you need to get your projects going. It
requires a lot of tenacity to survive, and so you really need to be prepared to work hard and
persevere under these sorts of circumstances.
From losing almost everything to

becoming a property tycoon Pete
Murayas story
BY DINFIN MULUPI | 26 JULY 2013 AT 15:44
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Property tycoon Pete Muraya has made many mistakes in business before finding success in
property development.
Pete Muraya
The CEO of Suraya Property Group, one of the most successful real estate businesses in Kenya,
has endured one failed business after another, but kept trying because he
believedentrepreneurship was what he was cut out for.
I had a restaurant, it failed. I had a disco in town, it failed. I had a [truck], it failed Muraya toldHow
we made it in Africa.
The trained architect recounted how in the mid-1990s he decided to organise a concert in Nairobi.
He flew in a US musician with the hopes of making significant profits from the show.
Do you know it wiped me out? I lost everything I had in just one show. I spent US$235,000 and after
the show I had made $35,000 in sales. The place was full but there was no money. Guys stole the
tickets no one was watching the gate, he recounted.
Before organising the show, Muraya and his wife had several cars, including a Range Rover and a
BMW. They also owned three properties.
From that day my best friends were auctioneers It took me six years to recover fully, he said,
adding that he eventually managed to salvage just one car and one property.
The only business Muraya managed to sustain for a long period was an architecture consultancy he
started in 1987. Although business was good, it had its own downsides.
The problem with consultancy is that it is very personal. The client must like you, not necessarily
your work. The personal relationship is very critical. You spend a lot of time chasing people and
trying to befriend people so that they can give you work, he noted.
After Kenyas 1997 presidential elections, the government decided to freeze all projects being
undertaken by state-owned corporations, which were Murayas primary clients.
We thought it was temporary but it became five years of no work. A lot of firms closed down. I had
an office of 12 employees and ended up firing everyone expect the receptionist and a technician. It
was a very difficult time, he said.
Tasting success
After reading Robert Kiyosakis Rich Dad Poor Dad, Muraya began aggressively working towards
getting into the property development business. The only problem was that he had no money, no
assets and no banks were willing to lend to him.
He then partnered with a friend who had the capital to put up their first project of 16 apartments.
Muraya went on to pioneer partnerships between land owners and developers, and he cites
innovation as one of the reasons why his property development business has been successful.
Yes, we are making money. Yes, we are big. But our drive comes from the desire to impact as
many people as possible. We have introduced new concepts and pioneered innovative products in
the market that have changed the industry, he said.
Suraya Property Group has been involved in a number of large projects, and the company has
recently also entered the low cost residential market.
Muraya said his goal is to have customers come to his office and have a choice between a $12,000
apartment or a $705,000 penthouse, and anything in between.
Some of the challenges the property group faces is the cost of land and archaic laws.
It is very difficult to find land. It is very expensive in this country. Land is appreciating at rate that is
illogical, he said.
Never lose faith
After losing so much money and failing again and again, why did Muraya decide to give it another
shot?
I always believed that I could make it happen. But I didnt understand that one needs a very clear
direction of where you want to be. I was always getting into businesses, not because I knew what
they were, but because people told me there was money in it, he explained.
He also admitted that his wife, who is the managing director of Suraya, has been very supportive.
His failed attempts in business have taught him never to lose faith. The day you stop believing that
something good is going to happen, you are basically dead. My wife and I always had a positive vibe
about things.
Muraya said he hopes other entrepreneurs do not make the mistake he made investing in
businesses they know nothing about. Real estate has attracted a lot of investors in recent days due
to its high returns, but Muraya urges entrepreneurs to exercise caution.
Real estate is good business, there is good money but one needs to be careful. If you want to go
into real estate, dont do it because you heard Muraya is making money, [otherwise] you are going to
burn like crazy. Spend time researching it. By the time you get into it, you should have a good
understanding about what it involves.
He advises aspiring property investors to read widely about the industry, speak to experts in the field
and seek advice from successful property developers.
Property entrepreneur Hamed Ehsani

talks about his business journey
BY DINFIN MULUPI | 18 JUNE 2013 AT 10:38
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When Iran-born entrepreneur Hamed Ehsani arrived in Kenya shortly after the 1979 Iranian
Revolution, business was the last thing on his mind. Ehsani and his family were visiting his
brother, a lecturer at the University of Nairobi, after which they planned to travel to Australia.
Their Australian visas delayed, they fell in love with Kenya and decided to stay.
Hamed Ehsani
Today Ehsani is managing director of The Village Market, a large shopping centre located in Gigiri,
one of Nairobis top neighbourhoods. The shopping centre neighbours the UN headquarters in
Africa, the US embassy and a host of other diplomatic missions.
In 1992, as Ehsani and his brother Mehraz drove to a golf course through Gigiri, which he tells me
was then under a coffee plantation, the idea of constructing a shopping and recreation facility in the
area hit them.
Having grown up in the Middle East and studied in the US, Ehsani had been exposed to large
shopping centres and malls, a concept that was fairly new in Kenya at the time.
One of the arts of entrepreneurship is to see an idea and try and adapt it for a different
environment, said Ehsani.
When we started there were one or two shopping centres already build, but they were very I could
say rough. They met the requirements and they are still ongoing and they are doing beautifully
well, but we felt there was room to add a little more style and a little more beauty and texture, he
recalled.
The Ehsani brothers instructed architects to come up with 30 shops and a small supermarket.
We needed US$1.5 million to start the project. The land was bought at a very nominal cost. At that
time it was cheap. We went out to a bank and we borrowed three quarters of that amount, said
Ehsani.
The Village Market has since expanded and now has 150 shops, and the 137-room luxury Tribe
Hotel. The Village Market is currently under expansion that will see an additional 70 shops
constructed. A $1.5 million budget hotel will also be established to capture increasing demand.
According to Ehsani, this is the fifth expansion since the establishment of the shopping centre.
The expansion is going to be quite large. It is a $50 million expansion to make room for retail
brands. We have bookings and enquiries from European and American [companies], said Ehsani.
Dealing with the sceptics
In 1992, not everyone was optimistic about the prospects of a shopping centre in a secluded, far-off
part of town.
We met huge resistance at the beginning and scepticism from many people; this is not going to
work, its too far, who is going to go there and all that, said Ehasani. People didnt understand it.
But, we could see that the area would grow. We kept at it, refined the concept and we expanded it.
The whole idea was that we didnt give up.
When the US embassy came into the area, other diplomatic missions followed transforming the
neighbourhood into a diplomatic zone. The Village Market became the to go place for Nairobis
diplomatic community, tourists and the middle class for high-end shopping and entertainment.
Demand for shopping centres on the rise
The Village Market managing director explained that external and internal forces are driving demand
for more shopping malls in Nairobi and other urban centres in Kenya.
Internally, the development of the middle class in Kenya has been a major force. Maybe about ten,
fifteen years ago, out of an office of 20, only two of my staff drove a car. Today out of twenty, 18
have cars. It has completely changed, he said. With that mobility now they can eat in different
places, shop in different places, visit different people.
Five ways to profit from property in

Mauritius
BY SANDEE TEEROOVENGADUM | 14 AUGUST 2012 AT 09:46
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Sandee Teeroovengadum, operations and business development manager at real estate agency
Davyland Properties, looks at five areas that hold potential for property investors in Mauritius.
Port Louis, the capital city of Mauritius
1. Niche opportunity in tourism

With its amazing beaches, Mauritius is well known as a holiday destination. The island catered for
950,000 tourists in 2011. Although the number of hotels amount to 109 with net room capacity of
11,925, we still observe a niche opportunity for 3-star and boutique hotels.
Mauritius has always been perceived as a luxury destination and the prevailing hospitality service
has shaped itself to serve such demand. Today 66% of the room distribution is based in hotels of 4star and above.
However, with the global economic trend, tourists have become more cost vs quality conscious, and
seek for a more personalised and friendly service at reasonable cost. There are therefore
opportunities to develop new smaller boutique hotels with less investment on the cost of
infrastructure and less manpower, but with a most competitive price positioning.
2. Allying coastal apartments with hospitality
Further to boutique hotel development, we also note another trend for tourists to stay outside the
usual all inclusive resorts and who too often find themselves bounded by the operational rules of the
resort rather than freely enjoying their holidays. Around 28% of tourists arriving in the country reside
in rented bungalows and at friends and families. This new trend creates another opportunity for the
real estate sector to develop coastal apartment communities, inclusive of hospitality services such
as housekeeping, laundry, and food and beverages.
The beachfront apartments are commonly based on leasehold land with the lease being evenly
distributed amongst all the apartment owners. Given the demand, the developer can create its own
management and rental company or partner with an existing company. Occupancy is estimated at
55% with a return of US$60,000 yearly. These beachfront apartments, though few existing ones in
Mauritius, are being sold at an average of $517,000 for a decent size of 180 m2, i.e. ranging from
$2,700 to $2,900 per m2. Backed by their return on rental of 8% per annum, these all inclusive
beachfront apartments are an attractive real estate investment.
3. High growth in city apartments
Over the past five years, city apartments have become a common trend in Mauritius. Being an
agricultural-based country, the population is mostly land driven, however, the new generation is
geared towards modern architecture, interior decoration and technologically driven properties. This
generation seeks ready-made accommodation units such as apartments with facilities like
restaurants, gym, swimming pool, resident caretaker, etc.
The city apartments are a choice of living for some and a choice of investment for others. Indeed,
the value of these apartments has significantly gone up in the last three years, with an asset
appreciation of 15% per year. Investors also leverage on the rental, which adds a 5% return over
twelve months.
4. Living in communities
In terms of residential, we also note a trend amongst the population to live in communities. During a
quantitative survey undertaken with around 900 respondents, we found that generally Mauritians
prefer the purchase of a property within a community to that of standalone plots. In our survey, we
also noted that the population is geared towards gated communities mainly for the additional security
and leisure parks. The gated community concept also allows residents to have a grip on the
aesthetic display and maintenance of their surrounding environment, which positively affects the
value of their property. At the end of 2011, two major gated community projects with a net sales
value of $50m were sold out within three months of its launching, which again proves the welcoming
of such projects by the Mauritian community.
5. Offices as a new trend
We also note a new mode of investment in the real estate sector, being office spaces. In 2001, the
government embarked on the decentralisation of the CBD Port Louis by identifying new areas for
business parks and establishing a new road network. In line with its vision to make Mauritius
a financialand services hub, the government also undertook major reforms such as the Business
Facilitation Act, which eases the implementation of offshore companies. There is also the double
taxation treaty with India, which encourages Indian companies to establish part of their operations in
Mauritius to avoid tax on their investments. These measures have led to the creation of new
business districts in the north and the centre of the island. Offices are now being looked upon as a
new investment product in the real estate sector with a return on rental of 10% per year.
The Africa Property Investment Summit, the biggest event on the African real estate calendar, is fast
approaching with limited bookings available. The two-day event, taking place in Johannesburg from
4-5 September, will be held at the beautiful Sandton Sun Hotel. The conference package
(R6,750/US$845) includes all lunches and refreshments, an invitation to the gala dinner, parking and
full access to all research, presentations and documentations. For booking information
visit www.apisummit.co.za. Special offer for How we made it in Africa readers: 10% discount for
the first 20 readers to register. To take advantage of this special offer email Marie Coetsee
on marie@apisummit.co.za or +27 11 408
Africas real estate and construction

opportunities cannot be ignored
BY IMARA AFRICA SECURITIES TEAM | 11 MAY 2012 AT 12:29
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Wal-Mart Stores Inc (through South Africas Massmart) has indicated that it will be
strengthening its existing operations in Africa.
Massmart is currently located in 12 markets so thats our focus. Building our business in the
markets that we are currently in is our primary focus, said Doug McMillon, head of international
businesses during an interview with Reuters. We are excited about the region. We have a long-term
view, he added.
Massmart already has a handful of stores outside South Africa, giving it a foothold in markets such
as Ghana, Nigeria and Uganda. According to the Massmart chief executive, Nigeria alone has scope
for up to 20 stores.
An interesting highlight is that strategy to grow to the rest of Africa is not only being implemented
by fast-moving consumer goods companies. This theme has dawned to a number of South African
companies in various sectors as sub-Saharan African continues to exhibit exciting growth prospects.
We recently came across an interesting article in the Financial Mail that has it that Resilient Property
Income Fund has partnered with Shoprite Holdings in building 10 shopping malls in Nigeria at an
estimated cost of about US$ 125 million. Resilient is a South African real-estate investment
company.
The malls will be built over the next three years in the political capital, Abuja, and economic hub,
Lagos. Shoprite will be the major tenant while Standard Bank Group and construction company
Group Five are also partners in the deal.
Speaking of real estate and construction activity, we note South Africas Group Five has geared up
its strategy of focusing on cross border opportunities with the aim of securing higher margin
business. In fact, Group Five continues to prioritise geographical diversification away from South
Africa as a strategic imperative having set a target of generating 40% of all group revenues from
cross-border markets.
It is very clear that there is an infrastructure backlog in Africa, and therefore the region presents a
massive opportunity for construction groups in terms of new public-private partnership (PPP)
opportunities. Further, Group Five is focusing on accessing more of the mining capital spending in
Africa through the delivery of multi-disciplinary solutions to mining companies operating in remote
locations. In this regard, the group has provided mine construction, housing and infrastructure works
in the DRC, Zambia and west Africa.
In its recent results publication, the company also indicated that it had successfully secured a $206
million contract financed by the Development Bank of Southern Africa (DBSA) for the master
planning, design, construction and operation of the first phase of a new road transport network for
the Zimbabwean National Roads Authority (ZINARA).
Feedback from our colleagues who recently attended the 2012 Ethiopia Investment Summit in Addis
Ababa is that there is massive construction activity happening in that east African country.
In conclusion, while we are strongly convinced by the fact that sub-Saharan Africa exhibits a
compelling consumer story, we believe the opportunities in real estate and construction cannot be
overlooked.
Imara is an investment banking and asset management group renowned for its knowledge of African
markets.
Pam Golding chief shares his thoughts

on Africas real estate market
BY JACO MARITZ | 29 JUNE 2011 AT 12:36
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How we made it in Africa interviews Dr Andrew Golding, chief executive of South African real estate
agency Pam Golding.
Dr Andrew Golding
Give us a brief overview of Pam Goldings business in the rest of the continent (outside
South Africa).
We have for a number of years had representative offices in the Southern African Development
Community (SADC) region,
including Namibia, Mozambique, Zimbabwe,Lesotho, Swaziland, Zambia and Botswana.
Furthermore, we have active businesses in the Seychelles andMauritius and most recently, we
have concluded arrangements to open offices in Nairobi, Kenya that will commence operations on 1
September.
How has business in the rest of Africa been going in recent years? Are you seeing an
improvement in the overall business environment in these countries?
Business appears to have been less affected by the economic downturn in the rest of the world and
more directly affected by the growth in real estate demand caused by increased international
investment, especially the Chinese-led interest in Africa.
How does the real estate industry in a country like Zambia, for example, differ from your
home market South Africa?
Less efficient markets due to less available market information. There is generally not the level of
information on transactions as is generated by the Deeds Registries via Lightstone and others. Also,
South Africas sophisticated Deeds Registries enable certainty on ownership, which in turn enables a
mortgage based lending system in which property ownership facilitates wealth creation through
efficient gearing of equity in property. Mortgage origination is absent. Suburban branch networks are
few and far between. Agents travel far and cover larger areas.
Pam Golding is also active in Zimbabwe; describe your outlook for the country?
Whilst we are not able to comment on the political outlook for Zim, the real estate market has on the
whole, remained remarkably resilient as a tangible store of wealth and a hedge against the huge
inflation experienced until dollarisation.
Are you planning expansion into other African countries?
Yes, we are looking at the entire East Africa at present. Angola, Nigeria and Ghana have also been
closely monitored over the past four years.
It has been a year since the 2010 World Cup; how did the event impact South Africas
property market?
Our sense is that the World Cup re-focussed attention on South Africa and provided a number of
people with a reason to visit the country over the past year, or in the next year or two. Foreign
buyers begin as tourists to South Africa, so that was a positive result of the World Cup, in that we
can expect the usual ratio of conversion of tourists into South Africa to property owners. The
negatives remain a strong rand, which has seen a lot of the foreign buyer interest placed on hold
pending a weakening in the rand and weaker international asset positions.
Zambia to build 12,000 houses through

public-private partnership
BY STAFF WRITER | 13 NOVEMBER 2010 AT 14:48
inShare0
The Zambian government has announced a programme to build a minimum of 12,000 housing
units across the country.
The Zambia Daily Mail this week reported that Finance and National Planning Deputy Minister
Chileshe Kapwepwe said the 12,000 units will comprise 6,000 low-cost houses, 4,500 aimed at
middle-income earners and 1,500 high-cost homes.
Kapwepwe was speaking at the Affordable Housing and Development in Zambiaconference

organised by the public-private partnership (PPP) unit of her ministry in the capital Lusaka.
She said that in addition to housing, complementary infrastructure such as clinics, schools and
markets will also be constructed.
Kapwepwe added that PPP investors are expected to use local skills and materials.
The newspaper further reported that Secretary to the Treasury Likolo Ndalamei invited the private
sector to take advantage of the housing deficit and come up with products that will be profitable and
at the same time affordable to the general public.
Potential for low-cost housing projects

in Uganda
BY JACO MARITZ | 15 JUNE 2010 AT 01:02
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Ugandas property sector holds considerable potential. Jaco Maritz spoke to the general manager of
Kensington Real Estate about her companys current projects and where the opportunities lie in
Ugandas property market.
An example of the four-bedroom houses of the Kensington Luxury Heights development in Kampala, Uganda.
Give us a brief overview of Kensingtons major projects in Uganda to date
Kensington Real Estate is a key player in Ugandas real estate scene. It is an international
corporation with offices in Kampala, Dubai and London, [and] with sister concerns in Ghana and
India. Our first development in Uganda was the Sunset View Homes. We then developed
Kensington Signature Homes comprising only eight spacious four-bedroom homes of about 250 m2.
Kensington Luxury Heights is our current and biggest development to date with 149 houses ranging
from two- to five-bedroom homes. We offer homes for the different stages in life, from the single
occupant to a family household. The complex will provide residents with a private lifestyle offering a
fully serviced commercial centre, recreational area, nursery school, sports facilities and a lot more.
All of these projects are situated in the capital, Kampala.
It looks as if Kensington is mainly involved in providing housing for the upper-end of the
market. Are there any plans to develop low-cost housing estates?
Our developments differ. Sunset View Homes and Kensington Signature Homes were built for the
upper-end. Our current development, Kensington Luxury Heights, situated in Kisaasi, is not
specifically designed for an exclusive class of people. Our home owners are quite diverse and
anybody who has a high standard lifestyle and a dream of owning a home can do so. Yes, we do
have plans for low-cost houses in the future.
How well developed is Ugandas mortgage industry? Is it easy for Ugandans to get mortgage
facilities?
The mortgage market is still at the primary level. Given the high mortgage interest rates, it would
take a while before the market reaches a fully fledged secondary level. Property prices for both
rentals and sales are quite high, and not proportionate to salary levels. While a number of banks are
providing mortgage financing, houses on the market today are still out of reach for the majority of
Ugandans who would want to own a home.
Where are the major opportunities in Ugandas property sector?
Low-cost homes. Currently most developers have targeted the middle- to upper-income bracket. The
current housing estates are located about eight kilometres out of [Kampala's] city centre. The
government needs to assist developers by constructing good roads, like the recently opened
northern bypass. Traffic jams are a discouragement for people who want to reside out of the city
centre.
With a population of about 26 million people and one city, there is definitely room for expansion.
Developing satellite towns with adequate facilities on the outskirts of Kampala will be most ideal and
also see some development in other small towns.
We have [also] seen a rise in the development of commercial buildings of international standard.
What is your message to foreign property developers looking to invest in Ugandas market?
I would advise developers to study the market, once you choose your segment then build
accordingly. Property development still has great open potential in Uganda. There is a serious
shortage of housing especially for the lower-end [of the market] although the land prices can be
prohibitive. Slowly the concept of cluster houses is being accepted. Kensington Africa Limited is one
of the pioneers in housing estate [developments] and has been instrumental in changing the attitude
of people towards cluster living.
Upward trend in South African house

price growth continues
BY STAFF WRITER | 7 JUNE 2010 AT 17:11
inShare0
Middle-segment home values in South Africa increased further in May 2010 according to
Absa Group Ltd., the countrys biggest mortgage lender.

The average nominal value of small, medium and large houses for which Absa approved mortgage
finance, was up by a weighted 15,2% year-on-year (y/y) in May this year, resulting in an average
house price of about R1,081,400 (US$139,000) in the middle segment.
Revised nominal price growth of 14% y/y was recorded in April.
The average real value of homes in the middle segment of the market, i.e. after adjustment for the
effect of inflation, was up by 8,8% y/y in April compared with a growth rate of 6,7% y/y in March.
Base effects have contributed to these growth trends as house prices were declining on a year-onyear basis in all three categories of housing 12 months ago in nominal as well as in real terms.
Small houses
The average nominal value of small houses (80m-140m) posted some further strong growth of
29,2% y/y in May 2010 after rising by a revised 24,4% y/y in April. This brought the average nominal
price of homes in this category to about R843,700 ($108,000) in May. In real terms the average real
value was up by 18,7% y/y in April, after rising by 12,9% y/y in March.
The continued strong growth in the average value of smaller and more affordable housing is
believed to be related to affordability issues. After a marked improvement in the affordability of
housing over the past two years on the back of house price and interest rate trends during this
period, housing affordability appeared to have turned around in late 2009. This is based on a slight
increase in the ratios of house prices and mortgage repayments on new loans to household
disposable income in the fourth quarter of last year, while rising property rates and taxes as well as
electricity and water tariff hikes are impacting on the cost and affordability of running a property.
Medium-sized houses
The average nominal value of medium-sized houses (141m-220m) increased by 9% y/y in May,
after rising by a revised 7,2% y/y in April. This brought the average price of a home in this segment
to around R998,600 ($128,000) in May.
The average real value of medium-sized houses was up by 2,3% y/y in April, after rising by 0,3% y/y
in March.
Large houses
In the category of large houses (221m-400m), the average nominal value was up by 6,4% y/y in
May, which was marginally down on the revised growth rate of 6,5% y/y registered in April. Base
effects have probably caused the May figure to be slightly lower compared with April, as year-onyear price deflation in the large segment was slowing down rapidly between April and June last year
before price growth resumed again in July. The average nominal value of a large house was about
R1,464,900 ($188,000) in May this year. In real terms the average value of a home in the large
segment was up by 1,6% y/y in April, after rising by 0,9% y/y in March.
Consumer price inflation (CPI) dropped below 5% in April this year, with double-digit wage increases
and administered price inflation posing some upside risks to headline CPI over the medium term.
Against this background, interest rates are forecast to be kept unchanged at current levels until the
first half of 2011, when a rate hike can expected as a result of gradually rising consumer price
inflation.
After bottoming around mid-2009, house prices have picked up markedly on the back of the
economic recovery, low interest rates and banks selective relaxation of lending criteria in respect of
mortgage finance. However, year-on-year house price growth may taper off somewhat in the second
half of the year due to base effects, with house prices deflating in the first half of 2009 and price
growth resuming again on an annual basis from around August last year.
MINING
A diamond in the rough: Adding value

to Botswanas minerals
BY ROMAN GRYNBERG | 4 MARCH 2014 AT 16:41
inShare7
Pages: 1 2
Should African countries be condemned to digging holes in the ground and exporting
unprocessed oil, gold, iron and other natural resources?
Botswanas government and mining giant De Beers have agreed on two ways to add value to the countrys diamonds.
For the better part of a decade, the international community has advised African countries not to add
value to their raw minerals, a process better known as beneficiation. But most African policymakers
have refused to accept that this development model is sustainable.
The World Bank has put considerable resources and research into trying to convince Botswana not
to beneficiate its diamonds, Zambia its copper or South Africa its gold, chromium, platinum and other
minerals. Along with the OECD, an intergovernmental think-tank based in Paris, and other
opponents of beneficiation in Africa, the World Bank offers two main alternatives.
Their first and favoured proposal is to forego forging forward linkages with the mining sector through
the beneficiation of unprocessed minerals. Instead, African countries should emulate Australia and
Canada, mining-intensive economies that have developed strong backward linkages with
engineering, services and higher education.
Backward linkages are channels through which a company or an entire sector connects with its
suppliers and creates economic interdependence. Forward linkages, by contrast, are distribution
channels that connect a producer with its customers.
The backward-linkages alternative has one serious flaw, however. Most smaller African countries do
not possess the resources or the economies of scale to cultivate the networks found in those mining
titans.
The second alternative is that countries should diversify their economic base through sovereign
wealth funds and earn high returns on their investments.
Neither forward nor backward linkages will work, according to this argument. Small African
economies will never compete with mining giants when it comes to developing backward linkages,
nor with processing behemoths, such as China, when it comes to beneficiation. Globalisation has
eliminated any possibility of these mineral-based economies undergoing a traditional transformation.
Faced with these constraints, where do most African countries go? Unfortunately the answer is
neither backwards nor forwards nor outwards, but downwards. African countries are currently
making ever-deeper holes in the ground, with the extracted minerals and their monetary fruits being
used more or less prudently depending on a countrys internal political management.
The example of Botswana
Botswana, the worlds largest producer of diamonds by value, has in the past several years moved
on two fronts to reap the precious stones economic benefits. In a 2011 marketing agreement,
Botswanas government and De Beers the worlds leading diamond company, of which Botswana
is 15% owner agreed on two ways to add value to the gems.
The first was for De Beers to move its supply and sale of diamonds from its offices in London to
Gaborone, Botswanas capital, a transfer that was completed in December 2013. As a result, about
160 positions have relocated to Botswana, industry insiders estimate. Half of the new jobs have
gone to locals.
The second part of the 2011 agreement called for Botswana to supply some US$500m worth of
rough diamonds a year to local cutters and polishers, with the explicitly written expectation that this
would grow to some $800m by 2014.
About 3,400 people worked in Botswanas cutting and polishing industry in 2012, according to
President Ian Khamas state-of-the-nation address last year. These workers polished some 257,000
carats, according to Botswanas Central Statistics Office, or a little more than 1% of Botswanas
estimated 2012 production Kimberley Process of 23m carats, according to the website.
Still, the value of the exports was some $600m, making diamond cutting by far the countrys largest
industrial sector. For a small country of 2m people, such a new and non-traditional export can be
considered an overall success. Challenging questions remain, though. The first concerns the
sectors sustainability.
How Botswana is positioning itself as

a major diamond hub
BY JACO MARITZ | 7 NOVEMBER 2013 AT 15:02
inShare21
11
The gravity of the diamond world is shifting towards Botswana due to a new development in
which mining company De Beers is moving its sales activities to the Southern African
country.
Mokgethi Magapa, Botswana country manager for DHL Express
Diamonds account for about 30% of Botswanas GDP. Debswana a 50-50 joint venture between
De Beers and the Botswana government claims to be the worlds largest diamond producer by
value. Debswanas Jwaneng open-pitmine is the worlds richest diamond mine.
Relocating diamond sales from London to Gaborone
The Diamond Trading Company (DTC) is a subsidiary of De Beers and is the companys chief gem
distribution arm. Its activities are focused on the sorting, valuing and sales of rough diamonds,
including diamond beneficiation.
In 1888, De Beers was established at South Africas world famous Kimberley diamond fields
following the merger of the mining assets held by two young entrepreneurs: Cecil Rhodes and
Barney Barnato. Within two years, De Beers had signed an agreement with a group of 10 Londonbased diamond dealers to sell its entire output. From this point and for the next 120 years, London
became a global focus of De Beers sales operations.
However, this is changing. De Beers has signed an agreement with the Botswana government that
will see the DTC relocate its London-based sales activities to Botswana by the end of 2013.
Diamonds from all De Beers mines in Botswana, Namibia, South Africa and Canada will now be
brought to Botswana. Sales to sightholders a select group of buyers picked by De Beers to buy
rough gems will take place in Gaborone. The worlds most influential diamond traders will fly to the
Botswana capital 10 times a year from major centres such as Antwerp, Tel Aviv and New York to
buy diamonds from De Beers, reportsBusiness Day.
It is expected that over US$6bn worth of diamonds will flow through Botswana every year.
As part of the agreement, De Beers will also make rough diamonds available for sale in Botswana.
The idea is that in-country jewellery manufacturers will make use of this opportunity.
One person who is enthusiastic about the relocation of the DTC is Mokgethi Magapa, country
manager of DHL Express in Botswana. From an economic point of view this is probably the biggest
development inBotswana in a long time. It is significant to the country as more value will now be
extracted locally, and hopefully it shall have a multiplier effect on the economy.
De Beers already started with worldwide diamond aggregation in Botswana last year, which is the
first phase of the migration of all its sales activities to Botswana.
The process of aggregation involves the mixing of like-for-like diamonds from De Beers global
production.
Opportunities for local companies
Magapa says there has been an influx of diamond cutting and polishing companies from countries
such as India, Israel and the US into Botswana. These companies are providing employment
opportunities for the local population. The DTC relocation in itself also comes with job opportunities.
According to Magapa, the influx of top diamond buyers to Botswana, as well as other related
businesses setting up shop in the country will create a need for numerous services, from hotels and
restaurants to telecommunications and banking.
He says Botswana is already experiencing a boost in economic activity and highlights the newly
established Diamond Technology Park property development, which plans to house companies
involved in the diamond industry, as evidence of anticipated future activity.
We are expecting an influx of foreign nationals either by way of relocations or contract employment
as well as regular sightholders who will come from time to time.
He says the full benefits of the DTC relocation will, however, only be felt in the medium to long term,
based on government programmes to ensure Botswana benefits from this development.
He says DHL itself is also poised to continue benefiting from the diamond industry. Companies
setting up operations in Botswana as well as the regular sightholders coming into Gaborone expect
a world-class service, and DHL is geared for that. DHL Express Botswana operates on the same
global standard operating procedures as its sister companies in Belgium, UK, Canada, etc and as
such will be in a position to provide world-class service. We have a good number of clients within the
diamond industry and they expect the same service that they get anywhere else in the world.
Driving consumer engagement in

Africa
BY DEREK BOUWER | 13 OCTOBER 2014 AT 20:01
inShare27
The figures are well known and the sentiment even more so Africa is enjoying significant
growth of the middle class; GDP growth exceeds population growth, so access to disposable
income is on the rise and this is expected to grow even further as we edge towards a
working-age population of close to 1.3bn people by 2050. We also have a significant skew to
youth, with close to two-thirds of Africas population being 25 and younger.
With this, the awareness and desire for branded goods is growing. Consumer goods companies all
want a piece of the action, but the African consumer is both well-informed and extremely selective.
Selecting the right brands and products to take to market and establishing the best way for their
brands to engage with consumers will be critical to the long-term success of these consumer goods
companies.
Our experience has shown us that there are four key considerations that brands and brand owners
will need to take into account in the future if they are to successfully drive consumer engagement in
Africa:
1. Keeping the promise
If a brand is a promise, brand owners need to ensure that they can deliver on that promise and
provide their customers with a consistent experience. This relates as much to how customers
experience the product as it relates to how customers experience the brand and the brand owners.
Features and benefits are table-stakes. Customers expect brand owners to deliver the right product
at the right price but, equally, customers expect the brand and the brand owner to behave in a
familiar way to do what they say and to say what they do. Consistently.
Whether it is delivering a particular level of quality at a particular price-point or whether it is the
language that you use (both visual and verbal), consistency builds familiarity, familiarity builds trust
and trust builds brands.
2. A purposeful brand
However, in todays world, just keeping the promise is not enough. Customers today want to know
that a brand and its owner serve a purpose higher than profit. Why are you doing what are you
doing, and why does it matter? The Edelman goodpurpose 2012 survey reports that consumers in
emerging markets respond considerably more favourably to purposeful brands than do their
counterparts in developed markets.
That much better if it is a purpose that they, as consumers, can identify with.
In their 2013 white paper Doing Business on Purpose: how meaning will transform your
businessYellowwood offered their advice on how to get purpose right. They identified four key
actions to be taken in determining, articulating and activating your purpose as a business:
Assessment: Understand the needs, aspirations, values of your customer and establish what kind of
difference you want to make in relation to these needs.
Alignment: Establish where these needs intersect with, or are solved by what you do best from a
business perspective and what you hold dear as an organisation: your heritage, beliefs, strengths
and behaviours as this will assure that you can identify a purpose statement that you can activate in
an authentic and sustainable way.
Activation: Execute your chosen purpose idea across the most important employee and customer
touchpoints, partnerships, and communication platforms.
Engagement: Listen, respond, and facilitate real interaction, experiences and relationship-building
activities with stakeholders around your purpose idea.
3. Relevance
As important as promise and purpose may be, so is the relevance of your message. To enable the
creation of a message that truly connects with the right audience, and that elicits the desired
response, it is critical to understand fully
Who your target market is
How, where and when they use your product or service
Where and when customers are most receptive to your message

In an increasingly complex environment, it is essential to get close to consumers. To become
immersed in their lives and to have the type of conversations with them that will enable you to
understand what drives them.
Armed with the insights derived out of these ongoing consumer conversations, you will be wellpositioned to deliver the most relevant content to your customer in the most relevant context. Using
language, visual cues and platforms that resonate with them.
Depending upon the platform that you use, you can even customise the message or the experience
for individual mind-sets and common interest communities. The mobile device, whether smartphone
or feature phone, has become the personal computer of Africa. Ever-present, it provides brands and
brand owners with a powerful platform to engage with customers directly. But, take care the highly
personal nature of the mobile device means that you can easily alienate customers if you impose
yourself on their world. Using (permission-based) SMS or more complex platforms like mobile
applications, brands and brand owners can serve up appropriate content that customers and
potential customers are receptive to, and can to engage with at a time and place that is most
relevant to them.
Other platforms remain just as important. Whether as drivers of awareness or a call to action, the
right message delivered at an appropriate time in a relevant traditional medium can elicit an equally
valuable response.
4. Creativity
As consumer markets in Africa grow, so does the volume of messaging to those consumers. To the
point that we begin to find ourselves consumed by marketing communication clutter. In such a world,
the relevance of ones message alone will not be enough to break through.
Four years ago, the UKs Institute of Practitioners in Advertising conducted a study of advertising
case studies from the preceding eight years that demonstrated, objectively, that creatively
recognised advertising campaigns were eleven times more effective that those that were not
creatively recognised. Albeit that the findings relate to the developed market, they are as relevant to
Africa as they are to the developed market. Media channels in Africa are proliferating, and African
audiences have the same level of choice as to how, where and when they consume information as
do their developed market counterparts. In a world like this, a compelling story creatively told will
give you the edge.
After all, Africa is a continent of storytellers. We revere good stories and storytellers. As audience,
we engage with the story we contribute and build to something that is memorable and enduring.
By tapping into this tradition of storytelling, and by leveraging on creativity to build their brand
stories, brands and brand owners will be able to engage their audience and tell brand stories that
gain and hold the attention of their audience. And, in so doing, shut out the clutter.
As is the case in the rest of the world, the balance of power has shifted in favour of the consumer.
The more that brands and brand owners operating in Africa are able to understand consumers and
engage with them around these four guiding principles, the more likely it is that those consumers will
come to trust them and align with them. And, as trust and alignment becomes advocacy, so brands
will be built, customers will be attracted and brand owners will be capable of achieving their desired
long-term success.
How Jennifer Barassa built one of

Africas top advertising agencies
BY DINFIN MULUPI | 8 AUGUST 2013 AT 17:12
inShare9
Pages: 1 2
Kenyan-born Jennifer Barassa had a comfortable life working at some of East Africas largest
corporations, such as Johnson & Johnson and Sterling Health, to name a few. Quitting to
launch her own business was the last thing on her mind.
Jennifer Barassa
It all started in the mid-1990s. At the time Barassa was group account director at an advertising
agency. One of her clients was a major East African brewery company. The brewer was worried
about the entry of canned beer into the market, a type of packaging their company was yet to
introduce.
Barassa told How we made it in Africa that for Kenyans, who were used to bottled beer at the time,
cans seemed classy and was a novelty. Her client was concerned they would lose ground in
supermarkets to their competitors who were selling beer in cans.
Barassa advised her client to have merchandisers at outlets to protect its shelf space and to fight off
competition. The beer manufacturer needed someone with the skills and expertise to execute this
proposal.
Barassa decided to quit her job.
I wrote my ideas on [a piece of paper] and went to a cyber caf where they typed it for me. I spent
about 30 shillings (US$0.3) to print and make photocopies and I hit the road. The first place I went to
was the brewery company, because I knew they had a need. It was a very easy sale, she said.
From her less than a dollar investment in 1995, Barassa has built her company, Top Image, to be
one of the regions most successful below-the-line advertising agencies. Below-the-line advertising
strategies generally promote products in ways other than through the television, radio and print
media.
Growing the business
In those early days, Barassa operated from her living room and had to do everything herself.
She used her network of contacts to land a contract with Standard Chartered bank, which wanted to
run a campaign that would help decongest its banking halls and encourage people to use automatic
teller machines (ATMs).
Barassa quickly got more contracts because many of her former colleagues worked with companies
that needed her services.
Within one year, my turnover was already one million shillings, said Barassa.
Barassa needed pushing to go into entrepreneurship. Although her friends and colleagues always
encouraged her to venture into business, she was just not ready. Taking that first step in 1995, she
said, marked a new beginning.
It was from there then that the entrepreneurial spirit [in me] was awakened. I started and I have
never looked back.
Surviving in a cut-throat industry
The market has changed significantly since Barassa launched Top Image. Back then, she said,
there were only five below-the-line advertising agencies. Today she estimates there are about 60.
We have fly-by-night agencies [and] briefcase agencies. There is cut-throat competition in the
business.
According to Barassa, Top Image stands out because it is results-oriented and delivers a quality
service.
We are not cheap. I am the Mercedes-Benz of the industry. I am expensive, I charge more than
other people charge, but I give you results. I rarely go out to look for business; business comes
looking for me, said Barassa.
Kenyas outdoor advertising industry

is booming, thanks to brand
competition and elections
BY DINFIN MULUPI | 30 JANUARY 2013 AT 15:44
inShare0
It is a season of good business for outdoor advertising companies in Kenya as campaign fever
sweeps across the country ahead of the March 4 general elections. Billboards have been erected
across the country, as politicians make last minute efforts to sell themselves to the people. How we
made it in Africas Dinfin Mulupi caught up Stanley Kinyanjui, founder and CEO of Kenyan outdoor
advertising company Magnate Ventures, to find out more about the opportunities, challenges and
trends in this booming industry.
Increasing competition among brands is boosting the outdoor advertising industry.
What is driving growth in the outdoor advertising segment?

The major reason is the robust growth within the economy. This business also booms when there is
competition among brands. We are finding it very interesting moving forward, especially in the
alcohol and beverages market. It looks like East Africa Breweries Limited (EABL) and SABMiller are
set for battle. Other players like Keroche Breweries and Distell seem to want a bigger share of the
market and PepsiCo has just come in. As brands compete and the economy grows, we should see
increased spending in outdoor advertising.
Right now, it is all about campaigns ahead of the March 4 elections. There are some counties that
are so competitive such that from last October the majority of the sites had been paid for. While
brands target people with spending power, thus opting for locations in up-market areas, politics is
about numbers with locations in low income areas being popular. About 30% of our holding is
currently leased for election related communication.
Describe some of the challenges you face in running this business.
Kenya will have 47 counties after the elections, which poses a regulatory challenge for us. Each of
these counties will have different regulations and tariffs. Recruitment and retention of staff is also
challenge. At one point, after training and networking with authorities and customers, employees will
want to run their own businesses because the bar of entry in the industry is not very high. In Kenya,
the entrepreneurial spirit is very high. This is, however, not a bad thing because that way the
economy grows.
We are seeing more foreign companies entering the outdoor advertising space. What are
your thoughts on this?
Kenya is becoming the hub for business in East and Central Africa hence attracting a lot of foreign
businesses, which then improves growth in our industry. Kenya is uniquely positioned because of
goodinfrastructure, massive foreign investment, favourable climatic conditions and good schools,
which attract expatriates.
Besides outdoor advertising, which other sectors does Magnate Ventures find attractive?
We want the company to grow in its core business, but also diversify into other growth areas. In the
last three years, we have also been investing in opportunities in real estate. We have formed a
division that has been doing property acquisition. For the next fifty years, infrastructure will be big in
Africa. We have a created a division that deals with infrastructure to exploit the opportunities within
that sector. There are a lot of opportunities in infrastructure that we want to tap into, because it is a
growth area.
What advice would you give to other budding entrepreneurs?
What matters most is your idea and energy. Capital is never really an issue. Somehow you will
always be able to get the money. Have the energy, discipline and resilience to see it through. In
terms of management, I run this business with my younger brother and co-founder Robert, and when
decisions need to be made we do not have a lot of bureaucracy. We have also strengthened our
managers to take care of the business day to day. We give the managers support in strategy, vision
and execution when they face challenges.
Whats next on the horizon?
We want to grow our business in Rwanda, Uganda, the DRC, Ethiopia and Burundi. Ethiopia is
interesting because they have a lot of regulations that dont allow foreigners to invest in advertising.
There is a memorandum of understanding that was signed between Ethiopia and Kenya and it is
providing us with an opportunity to enter that market. It has growth potential because it has a 100
million population. We are also looking to make acquisitions in these new markets.
South Africa's economy: key sectors

inShare
South Africa's economy was traditionally rooted in the primary sectors - the result of a wealth of mineral
resources and favourable agricultural conditions. But recent decades have seen a structural shift in output.
Since the early 1990s, economic growth has been driven mainly by the tertiary sector - which includes
wholesale and retail trade, tourism and communications. Now South Africa is moving towards becoming a
knowledge-based economy, with a greater focus on technology, e-commerce and financial and other
services.
Among the key sectors that contribute to the gross domestic product and keep the economic engine running
are manufacturing, retail, financial services, communications, mining, agriculture and tourism.
Sections in this article:
Manufacturing
Mining
Agriculture
Communications
Tourism
Wholesale and retail trade
Finance and business services
Investment incentives
Useful links
Source: Statistics South Africa
Manufacturing
The bottling section of South African

Breweries plant in Alrode, Johannesburg.
(Image: Chris Kirchhoff,
MediaClubSouthAfrica.com. For more free
photos, visit the image library.)
South Africa has developed an established, diversified manufacturing base that has shown its resilience and
potential to compete in the global economy.
The manufacturing sector provides a locus for stimulating the growth of other activities, such as services, and
achieving specific outcomes, such as employment creation and economic empowerment. The sector
contributed 15.2% to South Africa's GDP in 2013, making it the third-largest contributor to the nation's
economy.
Manufacturing is dominated by industries such as agro-processing, automotive, chemicals, information and
communication technology, electronics, metals, textiles, clothing and footwear.
Underpinning this sector is the Department of Trade and Industrys (DTI) Industrial Policy Action Plan (Ipap),
which aims to achieve structural development and to increase competitiveness of South African
manufacturing.
Agro-processing
South Africa exhibits a wide range of climates - from semi-arid and dry, to sub-tropical. As a result, a variety
of crops, livestock and fish are to be found.
This industry spans the processing of freshwater aquaculture and mariculture, exotic and indigenous meats,
nuts, herbs and fruit. It also involves the production and export of deciduous fruit; production of wines for
the local and export market; confectionary manufacturing and export; and the processing of natural fibres
from cotton, hemp, sisal, kenaf and pineapple.
World-class infrastructure, counter-seasonality to Europe, vast biodiversity and marine resources, and
competitive input costs make the country a major player on the world's markets.
In 2013, Trade and Industry minister Rob Davies said the agro-processing sector is worth R49-billion and has
created as many as 207 893 jobs in the third quarter of that year. It is also significant in sustaining the
environment and growing the economy. He added that since 2008, food processing grew by over 2% more
than the manufacturing sector as a whole.
The government's New Growth Path (NGP) and National Development Plan (NDP) had both identified agroprocessing as a sector with high growth potential, despite the challenges of imports competition, loss of
market and the unstable currency and exchange rate.
Automotive
The automotive industry is one of South Africa's most important sectors, with many of the major
multinationals using South Africa to source components and assemble vehicles for both the local and
international markets.
South Africa's automotive industry is a global, turbo-charged engine for the manufacture and export of
vehicles and components. The sector accounts for about 12% of South Africa's manufacturing exports,
making it a crucial cog in the economy.
The automotive and components industry is perfectly placed for investment opportunities. Vehicle
manufacturers such as BMW, Ford, Volkswagen, Daimler-Chrysler and Toyota have production plants in the
country, while component manufacturers (Arvin Exhaust, Bloxwitch, Corning, Senior Flexonics) have
established production bases here.
The industry is largely located in two provinces, the Eastern Cape (coastal) and Gauteng (inland). Companies
with production plants in South Africa are placed to take advantage of the low production costs, coupled with
access to new markets as a result of trade agreements with the European Union and the Southern African
Development Community free trade area. Opportunities also lie in the production of materials (automotive
steel and components).
In 2013, the DTI introduced the Automotive Production Development Programme (APDP) with the intention
of increasing the volume of cars manufactured in South Africa to 1.2-million annually by 2020 as well as to
diversify the automotive components chain. The APDP is a migration from the Motor Industry Development
Programme, which has affected second and third tier suppliers, and original equipment manufacturers.
The National Association of Automobile Manufacturers (NAAM) said production, particularly those of light
motor vehicles, will rise from 2014 onward because of the APDP.
According to NAAM, average industry employment figures rose by 441 jobs in the third quarter of 2013,
therefore bringing the total to 30 344 positions within the industry. New car sales also rose to 125 189 units,
more than 6.4% more than in the corresponding quarter in 2012.
The local industrys largest export market remains Europe, despite the effects the recession is having on the
Euro zone. In 2012, 66 929 vehicles were sold to Europe, 6 000 more than is sold in Africa. However, the
recession resulted in a 12.7% drop to 58 403 vehicles.
Chemicals
The chemicals industry has been shaped by the political and regulatory environment that created a
philosophy of isolationism and protectionism during the apartheid years. This tended to foster an inward
approach and a focus on import replacement in the local market. It also encouraged the building of smallscale plants with capacities geared to local demand, which tended to be uneconomic.
Through isolation of the industry from international competition and high raw material prices as a result of
import tariffs, locally processed goods have generally been less than competitive in export markets. Now that
South Africa is once more fully part of the global community, South African chemical companies are focusing
on the need to be internationally competitive and the industry is reshaping itself accordingly.
The South African chemicals sector has two noticeable characteristics. Firstly, while its upstream sector is
concentrated and well developed, the downstream sector - although diverse - remains underdeveloped.
Secondly, the synthetic coal and natural gas-based liquid fuels and petrochemicals industry is prominent,
with South Africa being the world leader in coal-based synthesis and gas-to-liquids technologies.
The industry is the largest of its kind in Africa. It is highly complex and widely diversified, with end products
often being composed of a number of chemicals that have been combined in some way.
The primary and secondary sectors are dominated by Sasol (through Sasol Chemical Industries and Sasol
Polymers), AECI and Dow Sentrachem. These companies have recently diversified and expanded their
interests in tertiary products, especially those with export potential.
In 2013, the sector was South Africas fourth-largest employer with 200 000 jobs and contributed about 5%
to the countrys GDP.
The Global Business Report says Africa is quickly becoming a significant chemical consumer and that if South
Africa increases trade with its neighbours, the industry could be ignited.
Information and communications technology
The South African information and communication technologies (ICT) sector is the largest and most advanced
in Africa, and is characterised by technology leadership, particularly in the field of mobile software and
electronic banking services.
With a network that is 99.9% digital and includes the latest in wireless and satellite communication, the
country has the most developed telecoms network in Africa.
South African companies are global leaders in pre-payment, revenue management and fraud prevention
systems, and in the manufacture of set-top boxes, all of which are exported successfully to the rest of the
world.
Export growth and internationalisation of South African companies is supported by the Department of Trade
and Industry via the South African Electrotechnical Export Council (SAEEC).
According to the SAECC, the South African ICT market is estimated at US$ 42.6-billion (R468.4-billion) in 2013
with IT accounting for US$ 15.08-billion (R164-billion) and communications US$ 27.18-billion (R297.4-billion).
The sector contributes approximately 8.2% to South Africas GDP.
Several international corporates, recognised as leaders in the IT sector, operate subsidiaries from South
Africa, including IBM, Unisys, Microsoft, Intel, Systems Application Protocol (SAP), Dell, Novell and Compaq.
Testing and piloting systems and applications are growing businesses in South Africa, with the diversity of the
local market, first world know-how in business and a developing country environment making it an ideal test
lab for new innovations.
Export growth and internationalisation of South African companies is supported by the Department of Trade
and Industry via the Electrotechnical Export Council (SAEEC).
The electronics industry has repeatedly demonstrated world-class innovation and production. The industry is
characterised by a handful of generalist companies with strong capabilities in professional electronics, while
small to medium companies specialise in security systems and electricity pre-payment meters.
Investment opportunities lie in the development of access control systems and security equipment,
automotive electronic subsystems, systems and software development in the banking and financial services
sector, silicon processing for fibre optics, integrated circuits and solar cells. There are also significant
opportunities for the export of hardware and associated services, as well as software and peripherals.
Metals
South Africa's large, well-developed metals industry, with vast natural resources and a supportive
infrastructure, represents roughly a third of all South Africa's manufacturing.
It comprises basic iron ore and steel, basic non-ferrous metals and metal products. The basic industries
involve the manufacture of primary iron and steel products from smelting to semi-finished stages.
Primary steel products and semi-finished products include billets, blooms, slabs, forgings, reinforcing bars,
railway track material, wire rod, seamless tubes and plates.
The primary steel industry is a significant contributor to the economy and earns considerable amounts of
valuable foreign exchange.
ArcelorMittal SA, formerly Iscor and now part of global steel company ArcelorMittal, is South Africa's largest
steel producer. Other industry players are Scaw Metals, Cape Gate, Columbus Stainless Steel, Highveld Steel
and Vanadium and Cisco.
South Africa ranks 21st among the crude-steel producing countries in the world - producing in the region of
1% of the world's crude steel. South Africa is also the largest steel producer in Africa: it is responsible for
more than half of the total crude steel production of the continent. South Africas steel production bucked
the global trend in 2013, increasing by 4.1%, from 6.9-millioon tonnes a year to 7.2-million tonnes. Of that
amount, the South African Iron and Steel Institute stated that 1.74-million tonnes of primary steel products
were exported.
The international and local steel industry has changed dramatically over the past two years. Several steel
companies have fallen away and protectionism has increased.
To survive in these harsh conditions, the South African primary steel industry has taken major steps to
become more efficient and competitive. Many local steelworks have engaged in restructuring and
productivity improvements.
South Africa's non-ferrous metal industries comprise aluminium and other metals (including copper, brass,
lead, zinc and tin). Aluminium is the largest sector but, as South Africa has no commercially exploitable
deposits, feedstock is imported. South Africa is ranked eighth in world production of aluminium. Key players
include Billiton (with smelters in Richards Bay) and Hulett Aluminium.
Other non-ferrous metals have a lesser role, but are still important for exports and foreign exchange
earnings. Although the country's copper, brass and bronze industries have declined, it is hoped that new
mining and reclamation technologies will allow the exploitation of previously unviable deposits.
Textiles, clothing and footwear
The South African textile and clothing industry aims to use all the natural, human and technological resources
at its disposal to make it the preferred international supplier. Though the textile and apparel industry is small,
it is well placed to make this vision a reality.
In 2013, textiles and clothing accounted for about 14% of manufacturing employment and represented South
Africa's second largest source of tax revenue. The textile industry is the most cost-effective way of creating
jobs.
Owing to technological developments, local textile production has evolved into a capital-intensive industry,
producing synthetic fibres in ever-increasing proportions. The apparel industry has also undergone significant
technological change and has benefited from the country's sophisticated transport and communications
infrastructure.
The South African market demand increasingly reflects the sophistication of First World markets and the local
clothing and textile industry has grown accordingly to offer the full range of services - from natural and
synthetic fibre production to non-wovens, spinning, weaving, tufting, knitting, dyeing and finishing.
With the US African Growth and Opportunity Act (Agoa) set to be renewed in 2015, the textile industry is set
to benefit even more than before. When US Congress first approved Agoa in 2000, textile manufacturers
were expected to benefit the most. Though it is not the case 14 years on the motor industry is the greatest
beneficiary textile exports to the US increased by 62%.
In spite of this, the industry remains vulnerable to cheap imports. Chinas inclusion in the World Trade
Organisation in 2001 rocked local manufacturers as South African businesses began importing cheaper
textiles and clothing from the Asian country. Additionally, a relatively strong rand from 2003 onwards led to
the industrys decline.
As a result, the number of jobs decreased. According to Enrique Crouse, chief executive of Prilla 2000, a
textile mill in Pietermaritzburg, 181 000 people were employed in the local textile industry in 2002. In 2013
there were only 80 000. However, he said the governments rescue plan for the textile and clothing industry,
which was outlined in 2009, has done exceptionally well to recover the industry in recent years and is in the
best position it has been in a last decade.
Despite this setback, Paul Geldenhuys, general manager of Mozimax, a textile company in Tongaat, is certain
the local industry is on the mend. He said that though many economists say the weaker rand negatively
affects the economy, it can also make imports more expensive, which would inevitably force suppliers to buy
from local manufacturers.
Mining
The massive Sishen open-cast iron-ore

mine in the Northern Cape.
(Image: Graeme Williams,
The country is renowned for an abundance of mineral resources, accounting for a significant proportion of
both world production and reserves, and South African mining companies dominate many sectors in the
global industry. Mining and quarrying contributed 4.9% to GDP in 2013.
South Africa is the world's biggest producer of gold and platinum and one of the leading producers of base
metals and coal.
The country's diamond industry is the fourth-largest in the world, with only Botswana, Canada and Russia
producing more diamonds each year.
Although well over a century old, South Africa's mining industry is far from fully tapped. The country is a
treasure trove, with mineral deposits only matched by some countries of the former Soviet Union.
South Africa - while holding the world's largest reserves of gold, platinum-group metals and manganese ore has considerable potential for the discovery of other world-class deposits in areas yet to be exhaustively
explored.
The country produces 10% of the world's gold, and has 40% of the world's known resources. It is estimated
that 36 000 tons of undeveloped resources about one third of the world's unmined gold still remains.
The sector spans the full spectrum of the five major mineral categories - namely precious metals and
minerals, energy minerals, non-ferrous metals and minerals, ferrous minerals and industrial minerals.
Apart from its prolific mineral reserves, South Africa's strengths include a high level of technical and
production expertise, and comprehensive research and development activities.
The country has world-scale primary processing facilities covering carbon steel, stainless steel and aluminium
- in addition to gold and platinum.
With the growth of South Africa's secondary and tertiary industries, as well as a decline in gold production,
mining's contribution to South Africa's gross domestic product (GDP) has declined over the past few decades.
However, this may be offset by an increase in the downstream or beneficiated minerals industry, which the
government has targeted as a growth sector.
Lucrative opportunities exist for downstream processing and adding value locally to iron, carbon steel,
stainless steel, aluminium, platinum group metals and gold.
A wide range of materials is available for jewellery - including gold, platinum, diamonds, tiger's eye and a
variety of other semi-precious stones.
The Mineral and Petroleum Resources Development Act of 2002 has opened the doors to meaningful
participation of black people in the exploration and exploitation of mineral resources. The Act enshrines
equal access to mineral resources, irrespective of race, gender or creed. When the Act was passed, there was
only one junior mining company. By mid-2008, there were 21.
South Africa's mining industry is continually expanding and adapting to changing local and international
world conditions, and remains a cornerstone of the economy, making a significant contribution to economic
activity, job creation and foreign exchange earnings.
Agriculture
A maize field under centre-pivot irrigation

near Hoedspruit, Mpumalanga.
Agriculture as a percentage of GDP has decreased over past four decades. This implies that the economy has
gradually become more advanced. In 1960, agriculture constituted 9,1% of the total economy; this has
decreased to only 2,2% in 2013. Though this decrease would seem to be a negative trend from a farmer's
perspective, it signals that the South African economy is reaching maturity as the secondary and tertiary
sectors become more important.
Maize is most widely grown - followed by wheat, oats, sugar cane and sunflowers. The government has been
developing programmes to promote small-scale farming and to boost job creation. Citrus and deciduous
fruits are exported, as are locally produced wines and flowers.
South Africa has both well-developed commercial farming and more subsistence-based production in the
deep rural areas.
Covering 1.2-million square kilometres of land, South Africa is one-eighth the size of the United States and
has seven climatic regions, from Mediterranean to subtropical to semi-desert.
This biodiversity, together with a coastline 3 000 kilometres long and served by seven commercial ports,
favours the cultivation of a wide range of marine and agricultural products - from deciduous, citrus and
subtropical fruit, to grain, wool, cut flowers, livestock and game.
Agricultural activities range from intensive crop production and mixed farming in winter rainfall and high
summer rainfall areas, to cattle ranching in the bushveld and sheep farming in the arid regions.
While 13% of South Africa's land can be used for crop production, only 22% of this is high-potential arable
land. The greatest limitation is the availability of water. Rainfall is distributed unevenly across the country,
with some areas prone to drought. Almost 50% of water is used for agriculture, with about 1.3-million
hectares under irrigation.
South Africa is not only self-sufficient in virtually all major agricultural products, but is also a net food
exporter. Farming remains vitally important to the economy and the development of the southern African
region.
Communications
Telkoms microwave communications

tower on Naval Hill in Bloemfontein, Free
State.
The communications sector - which, together with transport and storage, accounted for almost 10% of GDP
in 2006 - has been one of the fastest growing of the South African economy, reflecting the rapid expansion of
mobile telephony across the country.
Fixed line penetration is estimated at 10%, while mobile penetration is significantly higher at around 93%,
according to figures from the Department of Trade and Industry.
The estimated revenue generated in the telecommunications sector during 2007 was R126-billion, and
telecommunications (hardware and software) contributed an estimated additional R27-billion.
Telkom, a listed company in which the government is the biggest shareholder, was until recently the only
licensed provider of public fixed-line telecommunications services. Telkom is also a key player in an optical
fibre undersea cable project that will cater for Africa's growing telecommunications needs for the next 25
years.
In late 2006, the government awarded Neotel a licence to become the second fixed-line operator. The new
company, which is expected to challenge Telkom with competitive prices, has been gradually rolling out its
services during 2007.
A court ruling in 2009 had added impetus, allowing value added network service providers - of which there
are about 300 in South Africa - to build their own networks. A second transatlantic cable, Seacom, is expected
to land in mid-2009.
South Africa's cellular phone market has grown phenomenally since its inception in 1994. It is also the fourth
fastest growing Groupe Speciale Mobile (GSM) market in the world.
Cellular services are provided by three licensed operators: Vodacom, MTN and Cell C. In June 2006 a virtual
cellular service provider, Virgin Mobile, was brought to life in partnership with Cell C.
The country has more than 33 million mobile phones. The introduction of number portability in November
2006 has increased the flexibility of the mobile service industry and is expected to bolster competition
between various providers.
South Africa is also the largest Internet market in South Africa, with an estimated 4.6- to 5.4-million users.
There are still around 700 000 dial-up users, while there were 1.35-million broadband connections at the end
of 2008. Research firm World Wide Worx predicts that South Africa will show steady Internet user growth
over the next few years, reaching 8.5-million Internet users in 2013 and 9-million users in 2014.
According to the Economist Intelligence Unit's Information Industry Competitiveness Index 2008, South Africa
ranks 37th out of 66 countries reviewed, owing to well-established business and legal sectors.
Tourism
Camps Bay in Cape Town, the South

African city most favoured by international
travellers.
Tourism is regarded as a modern-day engine of growth and is one of the largest industries globally. One of
the advantages of tourism as an export earner is that it is less volatile than the commodity sector.
Tourism has been earmarked as a growth industry in South Africa, as the industry is ideally suited to adding
value to the country's many natural, cultural and other resources.
According to the World Travel and Tourism Council, tourism directly and indirectly constitutes approximately
7% of GDP and employment in South Africa.
Some 74% of all visitors in 2006 were from mainland Africa and about 26% from overseas. About 7.9 million
of the 8.5 million foreign travellers (92%) visited the country for a holiday and approximately 196 951 (2.3%)
for business in 2006.
According to the World Tourism Organisation , sub-Saharan Africa attracted 2.9% of the world's tourists in
2005. Of this percentage, South Africa has about 20.5% of market share. South Africa's international tourism
receipts amounted to $7.3-billion in 2005. Its share of total African tourist arrivals and tourism receipts was
over 34% in 2005.
The outlook for the future of the industry is positive, especially considering the 2010 Fifa World Cup. The
build-up to the event, as well as the exposure that South Africa will receive before and after the event, will no
doubt result in aggressive growth in foreign tourism. This has been a proven fact in every country where the
event has been held.
It is projected that in 2010 the South African tourism industry will employ more than 1.2 million people either
directly or indirectly.
Wholesale and retail trade
Maponya Mall in Soweto is just one of the

many shopping malls springing up in
townships across South Africa.
Statistics SA produces a monthly survey of the retail trade industry, covering various retail trade enterprises.
The survey generally covers retailers in specialised food, beverages, tobacco, pharmaceutical and medical
goods, cosmetics and toiletries, general dealers, textiles, clothing, footwear, leather goods, household
furniture, appliances and equipment, hardware, paint and glass, as well as various other dealers in
miscellaneous goods.
Retail trade sales at constant (2000) prices, for the year 2006, showed an increase of 9.7% from 2005.
According to Statistics SA, this is the largest increase, together with the 2004 increase, which was also 9.7%,
for any year since 2000.
According to the survey, general dealers, other retailers and retailers in textiles, clothing, footwear and
leather goods were the major contributors to the increase in retail trade sales.
Real retail sales' growth decreased in the fourth quarter from the third quarter of 2006 from 10.7% to 9.1%
year-on-year. The deceleration follows from the 200 basis point hike in interest rates during the second part
of 2006, making overall economic conditions somewhat tougher.
Among the major retailing groups are Edcon, Massmart, Pick 'n Pay, Shoprite Checkers, Mr Price Group,
Foschini Group, JD Group and Ellerines Holdings.
Finance and business services
The Absa Bank contact centre in Auckland

Park, Johannesburg.
South Africa, despite its "emerging market" status, has a sophisticated financial sector. With the country's reintegration into the global sphere in 1994, corporate governance rules, disclosure, transparency and
accountability have become an integral part of doing business in South Africa.
Consequently, regulations governing the financial sector, and particularly risk management, have undergone
considerable refinement to align them to internationally recognised standards and best practice.
The financial, real estate and business service sector accounted for 22% of the country's real value added
(value of total production) in 2006 and, together with other services sectors, has proved to be a pillar of the
country's economic growth over the years.
The sector boasts dozens of domestic and foreign institutions providing a full range of services - commercial,
retail and merchant banking, mortgage lending, insurance and investment.
South Africa's banking sector compares favourably with those of industrialised countries. Foreign banks are
well represented and electronic banking facilities are extensive, with a nationwide network of automatic
teller machines (ATMs). Internet banking is also available.
The Financial Services Board oversees the regulation of financial markets and institutions - including insurers,
fund managers and broking operations, but excluding banks, which fall under the South African Reserve Bank.
The South African banking system is well developed and effectively regulated, comprising a central bank, a
few large, financially strong banks and investment institutions, and a number of smaller banks.
Many foreign banks and investment institutions have set up operations in South Africa over the past decade.
The Banks Act is based on similar legislation in the United Kingdom, Australia and Canada.
Although no formal agreements have established a consistent international position in the area of banking
regulation, there have been amendments to exchange controls as well as financial market legislation, making
South Africa an attractive investment prospect.
The National Payment System Act of 1998 was introduced to bring the South African financial settlement
system in line with international practice. The Act confers greater powers and duties on the SA Reserve Bank
in respect of providing clearing and settlement facilities.
The Payment Association of South Africa, under the supervision of the Reserve Bank, has facilitated the
introduction of payment clearing house agreements. It has also introduced agreements pertaining to
settlement, clearing and netting agreements, and rules to create certainty and reduce systemic and other
risks in inter-bank settlement. These developments have brought South Africa in line with international interbank settlement practice.
Investment and merchant banking remains the most competitive front in the industry, while the country's
"big four" banks - Absa, Standard Bank, Nedbank and FNB - continue to consolidate their grip on the retail
market.
Reserve Bank
An office headed by the Registrar of Banks, operating as part of the Reserve Bank, is responsible for
registering institutions as banks or mutual banks, and for enforcing the legislation.
The registrar acts with relative autonomy in executing his duties, but has to report annually on his activities
to the Minister of Finance, who in turn has to table this report in Parliament. The extent of supervision entails
the establishment of certain capital and liquidity requirements and the continuous monitoring of institutions'
adherence to legal requirements and other guidelines.
The performance of an individual institution is also monitored against developments in the relevant sector as
a whole. If deemed necessary, inspectors can be appointed to inspect the affairs of any bank, or any
institution or person not registered as a bank if there is reason to suspect that such an institution or person is
carrying on the business of banking.
Financial Services Board
The Financial Services Board is an independent institution established by statute to oversee South Africa's
non-banking financial services industry.
The board's mission is to promote sound and efficient financial institutions and services, together with
mechanisms for investor protection.
Major financial institutions regulated by the board include the country's exchanges and insurers, both short
term-and long-term.
Investment incentives
South Africa offers various attractive investment incentives, targeted at specific sectors or types of business
activities. These are:
The Enterprise Investment Programme manufacturing programme
The EIP (manufacturing) is a cash grant for locally based manufacturers who wish to establish a new
production facility, expand an existing facility, or upgrade an existing facility in manufacturing industries.
The Enterprise Investment Programme tourism support programme
The EIP (tourism) is an investment incentive grant, payable over a period of two to three years, to support
the development of tourism enterprises, and in so doing, stimulate job creation and encourage the
geographical spread of tourism investment throughout South Africa.
Tourism-related activities supported by the grant include the following:
Accommodation services
Passenger transport services
Tour operators
Cultural services
Recreational and entertainment services
Foreign investment grant

This grant seeks to compensate qualifying foreign investors for the cost of moving qualifying new machinery
and equipment from abroad to South Africa.
Critical infrastructure
The critical infrastructure fund is a cash grant for projects designed to improve critical infrastructure in South
Africa, including the following:
Transport systems - road and rail systems

Electricity transmission and distribution systems - power flow and regulation systems
Telecommunications networks - cabling and signal transmission systems
Sewage systems - network and purification
Waste storage, disposal and treatment systems
Fuel supply systems - piping for liquid, gas, and solid fuel conveyer transportation
Industrial development zones

IDZs are purpose-built industrial estates linked to international ports that leverage fixed direct investments in
value-added and export-oriented manufacturing industries.
These zones provide the following benefits:
Quality infrastructure
Expedited customs procedures
Duty-free operating environments
The location film and television production incentive

This incentive programme consists of a Large Budget Film and Television Production Rebate Scheme,
whereby foreign-owned qualifying producers are rebated a maximum of R10-million for the production of
large budget films and television productions.
The South African Film and Television Production and Co-Production Incentive Financial assistance to South
African feature films, tele-movies, television drama series, documentaries andanimation. The objective is to
contribute to the local film industry. Production budgets are required to be more than R10-million, with the
rebate being 35%, capped at R10-million.
Export marketing and investment assistance
The EMIA scheme partially compensates exporters in respect of activities aimed at developing export
markets for South African products and services, and to recruit new FDI into South Africa.
The scheme provides assistance in the form of:
Air travel expenses

Subsistence allowances
Freight-forwarding of display materials
Exhibition space and booth rental costs.
The business process outsourcing and offshoring investment incentive

The BPO&O investment incentive comprises an investment grant, and a training support grant, towards costs
of company-specific training.
The incentive is offered to local and foreign investors establishing projects that aim primarily to serve
offshore clients.
Automotive production and development programme
This programme has four key elements:
Tariff reduction freeze from 2013 until 2020

Local assembly allowance
Production incentives
Automotive investment allowance
Useful links
Department of Trade and Industry

Southern African Development Community
Absa Economic Research team

Standard Bank
Nedbank
FNB
Bureau for Economic Research (Stellenbosch University)
Reserve Bank
National Treasury
Read more: http://www.mediaclubsouthafrica.com/economy/37-economy/economy-bg/111-sa-economykey-sectors#ixzz3HpZYBZOh
Manufacturing key to unlocking

Africas industrialisation potential
BY STAFF WRITER | 19 JUNE 2014 AT 12:19
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Growing the manufacturing sectors on the continent has a huge potential role to play in
promoting economic and inclusive growth in African economies due to its labour-intensive
and export-focused nature. Though, for Africas industrialisation potential to come to fruition
it will be dependent chiefly on affordable and accessible energy, improved infrastructure and
growing skills capabilities.
Anthony Thunstrom, chief operating officer for KPMGs Global Africa Practice
According to Jeff Dobbs, global chair for industrial manufacturing with KPMG in the US: Very few
countries are able to grow and accumulate wealth without investing in theirmanufacturing sectors
and, a strong and thriving manufacturing sector usually precipitates industrialisation. In fact, there is
a direct correlation between exportation levels and the economic success of a country where
domestic manufacturing improves external accounts by both decreasing imports and diversifying
exports.
Currently, many African economies are reliant on raw commodity exports for growth, however, this
makes them highly susceptible to global price movements and in most cases the general population
does not directly benefit from the countrys natural resources. However, producing goods to supply
the domestic market has a positive impact on the structure of the trade balance and, manufactured
exports have a much wider scope and more stable demand than commodities exports making the
manufacturing sector ideal for sustainable growth.
A strong manufacturing sector contributes to the development of the private sector where this not
only increases the economys resilience to external shocks, but also creates opportunities to grow
other service industries in-and-around the manufacturing sector and in so doing, create more
jobs, adds Dobbs.
African manufacturing is still in its infancy and is curtailed by a number of structural shortcomings,
including;
Lack of quality transport infrastructure and electricity supplies
Low levels of productivity
Shortage of skilled labour and innovative entrepreneurs
Insufficient savings that are needed to make large capital investments, necessary for the
establishment of manufacturing enterprises.
Despite these shortcomings, manufacturing sectors around the continent are showing signs of
expanding, driven by strong growth demand, improving infrastructure and increased openness to
foreign investment, says Anthony Thunstrom, chief operating officer for KPMG Africa. However, for
manufacturing sectors to flourish on the continent, we need to establish frameworks that will promote
world-class productivity, shared innovation and transparent and collaborative supply chains.
Over the last decade Africa has notably benefited from investments from developed and emerging
economies, alike, in seek of natural resources. While mining and extractive activities in Africa will
continue to see large sums of investment, there are also signs of investor reorientation towards the
burgeoning African consumer market, as some of the most attractive sectors during the past decade
have been consumer-related manufacturing industries, continues Thunstrom.
And there are a rising number of success stories of manufacturing foreign direct investment in
Africa that are not directly related to extractive industries, including in the automotive sector in South
Africa, the leather industry in Ethiopia, the garment business in Lesotho and pharmaceuticals
across East Africa.

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