RISING FORTUNES P16 Will the Continent Be the World’S Next Big Growth Market?

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RISING FORTUNES P16 Will the Continent Be the World’S Next Big Growth Market? ATR Dec 18 - Jan 19 Cover_Layout 1 10/12/2018 13:52 Page 1 www.africanreview.com Europe €10, Ghana C1.8, Kenya Ksh200, Nigeria N330, South Africa R25, UK £7, USA $12 GOVERNANCE FINANCE POWER CONSTRUCTION Progress is lagging behind Overall regional outlook from 2019 Innovation at centre of meeting Using 4D modelling in expectations of population P15 and beyond P18 energy demand P28 design projects P39 DECEMBER 2018 / JANUARY 2019 African Review of Business and Technology of African Review RISING FORTUNES P16 Will the continent be the world’s next big growth market? P28 December 20182019 / January LAGOS TO BOOST ENERGY SECURITY The state in talks to acquire a FSRU to deliver off-grid power TOP TECH FIRMS TO PITCH AT MINING INDABA P44 Four start-ups invited to present innovative solutions Volume 54 Number 11 54 Volume P14 www.africanreview.com YEARS “Major Ugandan enterprises are expected to come to market by early 2019” 54 SERVING BUSINESS IN Kwasi Kwarteng, Head Africa Regions, AFRICA SINCE 1964 Debt Capital Markets, Standard Bank S01 ATR Dec 18 - Jan 19 Start_ATR - New Master Template 2016 07/12/2018 14:15 Page 2 S01 ATR Dec 18 - Jan 19 Start_ATR - New Master Template 2016 10/12/2018 14:59 Page 3 Audit Bureau of Circulations - Business Magazines Editor’s Note elcome to our final edition of 2018. It has been an eventful and action-packed year, with all Wsectors continuing to go from strength to strength. The region in 2019, in fact, will be revealed as the world’s next growth market according to a new book by McKinsey & Company, (page 16). This is in spite of the economic and political uncertainties surrounding two of the continent's major economies; Nigeria and South Africa. Interestingly, Lagos State is in talks with Golar LNG to acquire a FSRU to meet the city's power needs, which could kick-start the deregulation of the Nigerian Power sector, (page 28). The formwork and scaffolding industry continues to respond to a lively construction sector in many markets, especially with landmark projects, such as The Pinnacle in Nairobi, which will be the tallest building in Africa when it is completed by 2020, (page 36). Finally, a quiet revolution is taking place across the continent thanks to the marvel of mobile finance which is lifting thousands of people out of poverty. To find out more, turn to page 50. Cover picture: African finance © Adobe Stock Cover Inset: Kwasi Kwarteng, Head Africa Regions, Season’s greetings and a happy new year! Debt Capital Markets, Standard Bank © Standard Bank Samantha Payne, Editor Editor: Samantha Payne Email: [email protected] Editorial and Design team: Prashanth AP, Fyna Ashwath, Hiriyti Bairu, Miriam Brtkova, Manojkumar, Nonalynka Nongrum, Praveen CP, Deblina Roy Rhonita Patnaik, Rahul Puthenveedu and Louise Waters Managing editor: Georgia Lewis Contributing editor: Martin Clark Contents Publisher: Nick Fordham Sales Director: Michael Ferridge Magazine Manager: Serenella Ferraro Profile Tel: +44 207 834 7676 Fax: +44 207 973 0076 14 Kwasi Kwarteng, Head Africa Regions, Debt Capital Markets Email: [email protected] for Standard Bank, explains why the continent’s debt India TANMAY MISHRA capital markets are expected to sustain the region’s ability Tel: +91 80 65684483 to import capital and manage debt. Email: [email protected] Nigeria BOLA OLOWO Tel: +234 80 34349299 Governance Email: [email protected] 15 The 2018 Ibrahim Index of African Governance has UAE MURSHID MUSTAFA P14 Tel: +971 4 448 9260 Fax: +971 4 448 9261 highlighted that public governance progress in Africa is Email: [email protected] lagging behind the expectations of a growing young UK MICHAEL FERRIDGE population. Tel: +44 20 7834 7676 Fax: +44 20 7973 0076 Email: [email protected] USA MICHAEL TOMASHEFSKY Finance Tel: +1 203 226 2882 Fax: +1 203 226 7447 18 Economist Moin Siddiqi looks at the opportunities and Email: [email protected] challenges facing African economies in 2019 and beyond. Head Office: Alain Charles Publishing Ltd, University House, 11-13 Lower Grosvenor Place, London SW1W 0EX, United Kingdom Tel: +44 (0)20 7834 7676, Fax: +44 (0)20 7973 0076 Onsite power Middle East Regional Office: Alain Charles Middle East FZ-LLC, 26 Portable power remains an important part of the Office L2-112, Loft Office 2, Entrance B, P26 PO Box 502207, Dubai Media City, UAE, continent’s energy mix. From small businesses to giant Tel: +971 4 448 9260, Fax: +971 4 448 9261 offshore rigs, it is vital to maintain safe and stable Production: Srinidhi Chikkars, Nelly Mendes and Infant Prakash operations. E-mail: [email protected] Chairman: Derek Fordham Gas-to-power Printed by: Buxton Press 28 Printed in: December 2018 Wale Oluwo, Lagos State commissioner for energy and mineral resources is in negotiations with Golar LNG to ISSN: 0954 6782 acquire a FSRU in order to help meet the region’s power needs. SUBSCRIPTIONS: P28 Rates for one year (11 issues): Europe €107, Kenya KSh3400, Nigeria N6600, South Africa R460, Construction United Kingdom £77, US$140 36 How major formwork and scaffolding providers are To subscribe: visit www.africanreview.com/subscribe responding to the demand of projects in the lively For any other enquiry email [email protected] construction sector. Mining 44 Four emerging tech companies will have the opportunity to pitch their solutions at Investing in Mining Indaba on 4-7 February. Serving the world of business P36 S02 ATR Dec 18 - Jan 19 News_ATR - New Master Template 2016 07/12/2018 13:48 Page 4 NEWS | NORTH Morocco joins South Africa as leading WORLD OIL, GAS AND investment destinations SOLAR REVIEW RELEASED Morocco, South Africa, Kenya, Nigeria Eni has released the second volume of the and Ethiopia were the dominant anchor World Oil, Gas and Renewables Review, economies within their respective following the first edition published on the regions, collectively accounting for 40 oil market and the refining industry. It per cent of the continent’s total FDI provides data and statistics on natural gas, projects, according to EY’s latest Africa biofuels and renewable energy sources that Attractiveness report. are acquiring an important role in the The Turning Tides report stated that energy landscape by leading the transition to overall these four major sub-regions a less carbon intensive and more sustainable each attract similar FDI when measured energy system. by project numbers. For the first time In 2017, world gas reserves decreased ever, East Africa became the single slightly, by -0.2 per cent. Russia remains the largest beneficiary of FDI with 197 top holder of gas reserves, with 25 per cent projects (27 per cent of total projects). of the world’s total. Among the top ten, Southern Africa, by contrast, fared seven are OPEC countries with 44 per cent of lowest of the four major regions, at 162 Adobe Stock Image Credit: the world’s total. Morocco was one of five economies that collectively accounted projects (23 per cent). for 40 per cent of the continent’s total FDI projects. World gas production increased by 3.6 per The 2017 data shows that Africa cent, the highest y-o-y increase since 2010. attracted 718 FDI projects which is up six per cent from the previous year. This was in line with a Pushed by new LNG plants, Australia’s recovery in the continent’s economic growth, following a difficult preceding year. The higher project production jumped by 21 per cent and ranks numbers were driven by interest in ‘next generation’ sectors, namely manufacturing, infrastructure and as the world eighth producer and sixth power generation. Despite the rise in FDI, project numbers remain below the 10-year average of 784 exporter. The output of Russia, the second projects (per annum). gas producer, strongly increased by 7.7 per The report also highlights the countries with the strongest FDI gains, with Ethiopia, Kenya and cent, but the USA is still the world’s largest Zimbabwe experiencing a major uptick in FDI during the 2017 year. By contrast, South Africa, Egypt, natural gas producer production, with an Mozambique and Côte d’Ivoire experienced declines in FDI projects in the same year. increase of 0.7 per cent. Ajen Sita, EY Africa CEO, says, “2017 was in many respects a major year for the continent. We saw In Africa, Egypt overtook Nigeria as the multiple changes in leadership across a number of countries, including South Africa, Zimbabwe and second continental producer after Algeria Angola. In addition, Kenya’s election was drawn out which created uncertainty at the time. Changes in with a steep increase of 23 per cent thanks to leadership have in turn led to a renewed urgency to implement fresh policies as new administrations the Zohr field start-up. In Europe, Norway’s move to address slow economic growth.” production hit record levels growing by 5.8 per cent, outpacing the big drop in UN WELCOMES MOVE TOWARDS EQUAL RIGHTS Netherlands, a decline of 12.8 per cent due to Groningen field reduction. UN High Commissioner for Human Rights Michelle Bachelet said the Tunisian Cabinet’s approval of a draft World gas demand has been strong in 2017 law that provides for equal inheritance rights for women is a significant step towards gender equality in the increasing by 3.3 per cent, growing in regions country, and sets an example for the region. except in America where the USA, the first The Council of Ministers in Tunisia has sent a draft law to parliament that would give male and female global consumer, saw levels decrease by 2.7 heirs equality, unless the deceased person had registered an explicit objection before a bailiff during his or per cent.
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