Opportunities for equipment suppliers as SSA looks to step up manufacturing capacity
Countries across sub-Saharan Africa are actively seeking to reduce their dependence on food imports and grow local manufacturing, pointing to future demand for food and beverage processing machinery and equipment across the continent. The need to step up local production has become more pressing as the current crisis grounds international flights, constrains air cargo capacity and potentially increases the cost of imports.
This is according to Liz Whitehouse, MD of African market researchers Africa House.
African food imports, expected to top $110 billion annually by 2025, are seen as increasingly unsustainable. Bolstering local production capacity is regarded as key to economic growth as the continent’s population booms and rapid urbanisation takes place. The growth of urban middle-class consumers in Africa could lead to $645 billion in growth in consumer spending between 2015 and 2025 – $167 billion in food and beverages, McKinsey reports.
“Across sub-Saharan Africa, we see a trend for governments to want to move away from food imports, and incentivise improved agriculture, agro-processing and food and beverage manufacturing locally,” she says. Cameroon’s Ministry of Commerce recently announced plans to suspend the importation of about 50 products, Angola’s Produção Nacional, Diversificação das Exportações e Substituição das Importações (Program to Enhance Production, Diversify Exports and Substitute Imports; PRODESI) seeks to replace imports with locally manufactured goods and diversify exports, and last year Nigeria clamped down on funding for food imports. “We expect to see moves along the same lines in countries like Mozambique and Tanzania, so there will be opportunities to supply manufacturing machinery and equipment into these markets, as entrepreneurs start entering the manufacturing arena,” says Whitehouse.
South Africa, despite its sophisticated food manufacturing sector and strong consumer market, is currently facing slow domestic economic growth. Manufacturers are now challenged in controlling production costs while still meeting consumer demand, which has remained steady. This could see more investment in advanced technologies to boost efficiencies and help manufacturers control costs.
South African food manufacturers are also increasingly looking to the export market, meaning they will likely focus more on technologies that support product consistency and quality to meet global food standards.
The South African government is prioritising the sector: food and beverages is the biggest component of South Africa’s manufacturing industry, with the government actively encouraging further development of agriculture and the agro processing sector. South Africa’s Department of Trade and Industry has in the last three years funded the food-processing sector to the value of R736 million in incentives, while its Enterprise Investment Programme (EIP) incentive has disbursed funds of R636 million and facilitated investments of R3.7 billion in the sector, and a Co-operative Incentive Scheme has disbursed more than R100 million in support of agro-processing. In addition, two major projects in food-processing benefited from tax incentives to the value of R1.1 billion.
Imported machinery, equipment needed for growth
While efforts are underway to stimulate agro-processing and manufacturing capacity, most of the necessary manufacturing machinery and equipment is not produced locally.
Whitehouse notes that most machinery and equipment for the manufacture of food and drink in South Africa is imported. As South Africa is a key gateway into the rest of the region, this equipment is also sold out of South Africa into sub-Saharan Africa. “Companies in Southern Africa would look to South Africa as their source of foreign machines and equipment, and demand is likely to pick up as their manufacturing capacity grows,” she says. “In 2019, South Africa’s imports of Machinery for the industrial preparation or manufacture of food or drink (HS8438) amounted to R1.8 billion. Importantly this reflects a 64% increase in value over a five year period from 2015. Exports from South Africa of machinery in this tariff heading to SADC amounted to R407 million in 2019.”
SA a gateway to sub-Saharan Africa
South Africa remains a strategic gateway between sub-Saharan Africa and the rest of the world, which is why delegates from across the continent converge in South Africa at international exhibitions and conferences such as food & drink technology (fdt) Africa. fdt Africa 2019, which was co-located with IFAT Africa and analytica Lab Africa, attracted over 8,000 visitors from across the continent to assess products and services from 65 exhibitors from 13 countries and view country pavilions hosted by China, India and Germany.
“There is keen mutual interest in boosting trade between global and southern African businesses. food & drink technology (fdt) Africa, which covers the entire food and drink value chain including processing, packaging, filling and logistics, is proving to be a key networking opportunity and product showcase for African decision makers,” says Whitehouse.
food & drink technology (fdt) Africa, the biennial trade fair for the pan-African food & beverage sector, will be back in Johannesburg, South Africa, in 2021. The fourth edition of this successful exhibition will be held from July 13-15, 2021, at the world class Gallagher Convention Centre.
The trade fair and its accompanying programme, including a high-quality exhibitor forum, is the third successful offset of Messe München’s drinktec, the world’s leading trade fair in the beverage and liquid food industry. It is the ideal platform to present food and drink technologies to a high calibre audience of trade professionals and decision makers from across Africa.
Radisson Individuals makes its African debut with hotel signing in Ghana, to open its doors in October 2021
Image Source: Radisson Hotel Group
Radisson Hotel Group is proud to announce its first Radisson Individuals property in Africa, with the signing of Earl Heights Suites Hotel, a member of Radisson Individuals, Accra, Ghana. Due to open by the end of 2021, this new addition places the Group firmly on track to achieving its objective of reaching 150 hotels in operation and under development by 2025.
Located in Dzorwulu, the property is currently undergoing a full renovation and is on schedule to open within this year. Just 5km from Kotoka International Airport (KIA), the main access point by air for domestic and international visitors, the serviced apartment property is conveniently located near shopping malls, restaurants, as well as the University of Ghana, situated north of the district. Also within reach, is the tranquil Legon Botanical Gardens, with its canopy walk, rope courses, canoeing and rich birdlife.
Due to its strategic geographical location, ease of access, and aviation facilities and connections, Accra has become a conference and aviation hub for West Africa. It is also dominated by local and international business activities, making the city one of the most attractive African cities to do business.
The 58-serviced apartments property will comprise of modern studios as well as spacious and elegant one- and two-bedroom suites. Creating a true destination for its guests, the property will offer culinary options in the restaurant, The Society, which will include outdoor seating as well as in the hotel bar. The property will also feature a spa, gym, pool, convenience store, and business centre, providing the perfect base for both business and leisure.
Radisson Individuals is a conversion brand that offers independent hotels and local, regional chains the opportunity to be part of the global Radisson Hotel Group platform, benefit from the Group’s international awareness and experience, with the freedom to maintain their own uniqueness and identity. Radisson Hotel Group plans to more than double its serviced apartments portfolio within the next 5 years across EMEA. Today, serviced apartments represent around 10% of the Group’s EMEA portfolio with 45 properties and more than 5,400 units in operation and under development.
Erwan Garnier, Senior Director, Development, Africa, Radisson Hotel Group, said: “We have identified Ghana as a key focus country in our five-year development plan and, Accra as a focus and primary city. The signing of the property, which compliments the Radisson Hotel & Apartments Accra announced last year and scheduled to open in 2023, is also aligned with our current conversion-focused growth strategy, which will remain a priority, especially post-pandemic. We are therefore proud the Radisson Individuals African debut, will be on Ghanaian soil, carving the path for the new brand to continue its expansion across the continent. In proud partnership with Earlbeam Group of Companies, we are thrilled to be contributing to the country’s tourism industry, a key pillar of the national economy.”
Alfred Danso Darkwah, CEO of the hotel’s owning company, Earlbeam Group of Companies, said: “The Earl Heights Suites Hotel partnership is an exciting opportunity – it brings together the union of Radisson Hotel Group and The Earlbeam Group Of Companies, two well-seasoned brands from the hospitality and real estate sector respectively. This will be the first branded apart hotel in Ghana, completely unique, providing each guest a boutique home-away-from home experience. In addition, it delivers partner confidence, guarantee of service standards, and assured safety and security, leaving a positive mark on Ghana’s hospitality sector. We believe this Radisson Individuals hotel will inject much-needed life within the local hospitality industry and pave the way for upcoming projects between Radisson Hotel Group and The Earlbeam Group of Companies.”
Image Source: Radisson Hotel Group
Herewith the link to the renders of the hotel, which is on track to open its doors in October this year Radisson Individuals
Radisson Hotel Group operates to high standards of performance and advocates socially and environmentally sustainable business practices. More than ever, Radisson Hotel Group’s highest priorities remain the health and safety of its guests and employees. The Group partnered with SGS, the world’s leading inspection and certification company, to implement the Radisson Hotels Safety Protocol, which ensures the highest hygiene standards and strengthens the Group’s existing rigorous sanitation guidelines. In the run-up to the opening of Earl Heights Suites Hotel, a member of Radisson Individuals the hotel will implement the Radisson Hotel Group brand standards including the Radisson Hotels Safety Protocol related to safety and security.
TuneCore Launches Operations in Africa, Appoints Two Female Regional Executives
TuneCore Jade Leaf and Chioma Onuchukwu
TuneCore, the leading digital music distribution and publishing administration company for independent artists, has launched operations in Africa. Jade Leaf has been hired as Head of TuneCore for Southern Africa and will share responsibility for key countries in East Africa with Chioma Onuchukwu, who has been hired as Head of TuneCore for West Africa. Both Leaf and Onuchukwu will report to Faryal Khan-Thompson, Vice President, International, TuneCore.
Onuchukwu will be based in Nigeria and oversee countries in West Africa including Nigeria, Ghana, Liberia, Sierra Leone and The Gambia. She will also look after Tanzania and Ethiopia in East Africa. Leaf’s territory encompasses Southern Africa, including South Africa, where she will be based, as well as Namibia, Botswana, Zimbabwe, Zambia, Malawi and Lesotho. Leaf will also manage TuneCore operations in East African countries Kenya and Uganda.
Said Onuchukwu, “I am elated to be joining a renowned, independent music distribution powerhouse, especially in an incredible era for music creators in Africa at a time when we are gaining global recognition and increasing momentum. I look forward to collaborating with and supporting local artists.”
Before joining TuneCore, Onuchukwu was Marketing Manager at uduX Music, a music streaming platform in Nigeria. There she worked directly with popular African artists such as Davido, Yemi Alade, Patoranking, Kizz Daniel and more.
Commented Leaf, “I am incredibly excited to join the team in a time where the global conversation is around independence and ownership. TuneCore opens up a world of potential for independent artists at every level of their careers. Africa is home to a diverse range of artists who are seeking a reliable distribution service who understands their local needs and can ultimately give them the opportunity to turn their art into commercial success.”
Previously, Leaf worked at Africa’s largest Pay TV operator, Multichoice as the Marketing Manager for Youth & Music Channels, where she led brand re-imaging and marketing efforts for Music TV giant Channel O. Before that, she worked at Sony Music Entertainment Africa, focusing on African artists and content, as well as numerous marketing campaigns & projects for local and international artists.
There has been a meteoric rise in the uptake of streaming services in Africa, the growth has been attributed to several factors such as an increase in internet penetration via smartphones, the entrance of international and local streaming platforms in key territories and its youth population – More than 60% of African’s are under the age of 25.
In 2020, TuneCore saw an increase in music releases globally, with many African artists opting to use the DIY Distributor – DJ Spinall and Small Doctor in Nigeria, Spoegwolf in South Africa, Mpho Sebina in Botswana and Fena Gitu in Kenya to name a few.
Stated Khan-Thompson, “Africa is an extremely exciting music market with a lot of potential for growth. By hiring Jade and Chioma to lead our efforts, TuneCore is well positioned to maximize opportunities for independent artists across the continent. Both Chioma and Jade bring a wealth of experience and genuine interest in helping artists make their dreams come true. I couldn’t be more thrilled to have two incredible women representing the TuneCore brand in the continent”
IFC Invest in Liquid Telecom Bond to Support Broadband Connectivity in Africa
IFC, a member of the World Bank Group, invested in Thursday’s bond issued by a subsidiary of Liquid Telecommunications Holdings Ltd., which will allow the telecoms and technology solutions company to expand access to broadband Internet and digital and cloud services across Africa, further facilitating the growth of the continent’s digital economy.
Proceeds from the bond issued by Liquid Telecommunications Financing PLC, a wholly-owned subsidiary of Liquid Telecommunications Holdings Ltd, will enable the company to refinance existing debt and free up funds to expand its digital infrastructure network across Africa, including in markets with low broadband penetration.
By developing digital infrastructure, Liquid Telecommunications, Africa’s largest independent fiber, data center and cloud technology provider, aims to increase digital connectivity and inclusion in Africa and support the region’s growing digital ecosystem.
IFC played an anchor role and subscribed to 16 percent of the bond, equivalent to $100 million, which was listed on Euronext Dublin, Ireland’s main stock exchange, on February 25, 2021. The issuance raised $620 million.
Internet access in Africa relies largely on mobile networks, many of which are enabled by wholesale connectivity providers such as Liquid Telecommunications. Broadband penetration is low across the continent, with a mobile broadband penetration rate of 34 percent and fixed broadband penetration of less than five percent in most countries across sub-Saharan Africa, excluding South Africa.
“We are delighted that IFC has taken a significant anchor position in our new bond. In the countries in which we operate there are great opportunities to address under developed telecommunications and Internet access, as well as to accelerate the adoption of digital and Cloud-based services. Our refinance enables us to continue to invest in the African digital eco-system including driving penetration of digital and Cloud-based services to businesses who may not previously have had the resources to benefit from them, helping to bridge the connectivity divide, which is more crucial than ever in our current circumstances,” said Nic Rudnick, Liquid Telecom Group Chief Executive Officer.
“Our best chance at ensuring much-needed internet access for everyone in Africa, from large corporates and small businesses to individuals, is to invest in digital infrastructure. Our investment in the Liquid Telecom bond will help the company free up capital to further expand broadband access across Africa, laying a solid foundation for a faster, more resilient recovery,” said Stephanie von Friedeburg, Interim Managing Director and Executive Vice President, and Chief Operating Officer of IFC.
To support Africa’s digital economy, which could be worth $180 billion by 2025, IFC provides financing to mobile network operators, independent tower operators, data centers and broadband connectivity providers. IFC also provides capital to help entrepreneurs and innovative businesses grow and works with financial institutions and telecommunications companies to speed the adoption of digital payments and lending to expand financial inclusion.
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