Why South African companies prefer to invest in Nigeria

Featured Image

VENTURES AFRICA – Despite the diplomatic strain on Nigeria and South Africa’s bilateral relationship due to recent xenophobic attacks, South African companies are merging to expand investment to oust local competition in the country. Popular supermarket chain Shoprite and Retail clothing store, PEP store are spreading their outlets in major areas of Africa’s most populous black nation.

To meet the needs of over 170 million inhabitants of Nigeria, Shoprite will be constructing 10 other shopping centers in Nigeria. Whitey Basson’s Shoprite which launched into the Nigerian Market in 1995 entered a joint venture with Resilient Africa, a property development and investment company. The $85 million deal involves two other big South African finance and investment organizations: Standard Bank and Group Five.

“The risk in South Africa is up but returns are down. It is time to explore fresh markets,” said the Managing Director of Resilient, Mr. Des de Beer, who is known for spotting growth opportunities. He also believes that Nigeria offers better potential returns than South Africa, where opportunities for new retail developments have become few.

South African based company Pepkor Ltd, owners of PEP stores in Nigeria have also been bought by Steinhoff International Holdings. To increase its presence in Nigeria, the middle income clothing, footwears and accessories retail store will have 31 stores in operation by July this year.

Deon Conradie, the Nigeria’s manager of PEP store recently disclosed that the development is in line with the company’s desire to readily meet the growing market in Nigeria for other goods aside from food. He also confirmed that company’s expansion plan will see to the opening of 10 stores per year till 2018.

 

By Tobi Eyinade

 

 

Source: New feed23

Struggling Ivorian telco may be saved by Nigerian billionaire

Featured Image

VENTURES AFRICA – Mike Adenuga, Nigeria’s second richest man, has moved to buy Ivorian mobile telecoms operator Comium Cote d’Ivoire. According to multiple reports, Globacom, a Nigerian mobile telecoms operator owned by Adenuga, has lodged a $600 million takeover bid for the operator.
The move is perceived by many to be a strategic one where Globacom will see gains by way of an increased presence in the West African region. Already, the Nigerian mobile telecoms giant operates in Ghana and Benin Republic, in addition to its home country and will seek to invest over $1 billion in upgrading Comium-CI’s network over the next three years. Officials of both companies are yet to confirm the bid.
Comium CI has more than 900,000 mobile subscribers according to L’Autorite de Regulation des Telecommunications and is a subsidiary of the Comium Group, a Lebanon-based telecommunications company. The group operates as a multi-service provider on four continents, specializing in Wireless Data Networks, GSM communications, Internet service provision and VoIP.
Comium CI is cash-strapped and heavily indebted to the tune of over $25 million; it’s been given till May 15 to pay off or risk being placed into receivership, a situation which leaves it with no better option than to sell to Adenuga.
According to Ventures Africa’s The Richest People in Africa, Mike Adenuga, 63, is the 2nd richest man in Nigeria with a fortune currently estimated at $8 billion. Most of his fortune comes from his ownership of the Nigerian mobile telecoms outfit Globacom, and Conoil Producing, a Nigerian oil exploration firm that operates about 6 oil blocks in the Niger Delta region of the country. His venture into entrepreneurship started with the sales of lace materials and sodas in the 1970s, he later became the first Nigerian to strike oil in commercial quantities.

Source: New feed23

How to keep pace with Africa’s rapidly rising tourism sector

Featured Image

VENTURES AFRICA – Fuelled by political cooperation, social change, and modern technology, tourism in Africa is finally speeding to growth. The past few years have seen the emergence of new exciting trends in the continent’s tourism industry. Thanks to deepening internet penetration , over 300 million Africans now have every information they need at their fingertips, including about the best tourist destinations and the best guides. This presents a huge opportunity for tourism companies to leverage on technology and effective marketing strategies to win over customers.

Tourism is gradually being shaped by price assessment and combination technology- development of new applications for mobile phones that offer a wide range of opportunities; social networks are emerging within a more transparent market in which citizens work as a team. There are also changes in the concept of the value chain as it regards producing new business models. Change is becoming more apparent and incessant, just like the opportunities being created. Companies and destinations are tasked with reviewing their strategies-innovating through processes, promotion, improving facilities and infrastructure.

For African tourism to remain on the path leading to the next level, two key areas for developing the tourism industry need to be considered. Selling tourism products and services online has changed from being just price-conscious to becoming an inspiration to the viewer. As the online user absorbs information from a variety of sources, it is usually the site or information source that can best stimulate the viewer to travel.

The average traveler visits about 22 travel-related sites prior to booking a vacation. Search Engine Marketing, Digital Marketing, Mobile and Location Based Marketing, and a variety of other channels exist today for reaching the prospective traveler. However, it is the appeal of the content, combined with the right pricing that will ultimately attract the user to your business.

Secondly, the infrastructure of the organization determines the readiness to respond to customer requirements. As more travelers expect personalized products and services to meet their demands, it is important for tourism businesses to have tools that can collect and monitor information in order to meet the individual needs of their clients. The better you know your customer, the more likely you will retain. Visitors are keen to follow in the footsteps of history; attracted by an authentic site, they would like to view a place where history was made. Visitors are prepared to pay for this, but at the same time expect a high level of service quality. Customer relationship management and other fundamental information management systems are essential for businesses to scale-up.

Jovago.com, Africa’s No.1 online hotel booking portal believes that the African tourism &travel industry is rapidly assuming a third “T” –Technology, as technology serves the needs of travelers, companies and destinations, thereby taking the industry to a next level. Jovago has partnered with Ventures Africa, Africa’s leading Pan-African business magazine to ensure that the African travellers can stay updated on happenings around Africa while also getting the best available hotel deals out of over 200,000 hotels. It is important to generate a continuous and productive debate on technology, innovation and participation in the world of tourism across platforms, Africa must continue to work on integrating new technologies in daily management of tourism businesses and destinations.

 

By Chinelo Ngene

Source: New feed26

How to fight poverty without aid

Featured Image

VENTURES AFRICA- Non-profit global venture fund, Acumen has announced its expansion to support social entrepreneurship in Latin America. The impact investor will be headquartered in Bogotá and will invest in innovative entrepreneurs and establishments in Colombia and Peru.

Despite the rapid growth of Colombia’s economy over the years, inequality still persists in the country. While urban areas have flourished, lives in the rural areas have not improved. But Acumen is set to help better the lives of people in Latin America.

The company’s Latin America Country Director, Virgilio Barco believes that there is a strong pipeline of investment opportunities, particularly in the agriculture sector. He also explained that the organisation is focused on creating opportunities that alleviate potential poverty for generations to come, rather than short-term interventions which only generate sustainable incomes for households.

About a quarter of the country’s population who live in rural areas have been exposed to conflict and violence, thereby hindering development. Agriculture has been are held back by certain factors such as- financial services or technical assistance, land and irrigation. The lack of infrastructure prevents them from competing with other global markets, further aggravating the barriers to progress.

Although extreme poverty in Latin America has dropped by half, over 80 million people still live on $4 a day and more than 200 million suffer the risk of returning to their previous status. This launch to tackle poverty will ensure that income challenges of small holder farmers are addressed while tacking rural challenges such as water, energy and health.

Acumen CEO Jacqueline Novogratz explained that rather than rely on markets or aid alone, turning charitable donations into financial capital is also wise. “Acumen can enable Latin American businesses to grow and ultimately bring large-scale, sustainable solutions poverty.”

Source: New feed23

Ankara Street Style Edition: The Angola Trench Jacket

Featured Image
Good day beautiful people
With winter finally gone
Spring comes baring beautiful outfits for me to share. Despite the fact I’m a December baby I despise the cold weather and I’m not a fan of boots and scarfs. Which explains my seasonal hiatus from blogging.  So stay tuned for a lot of colors and bold patterns.

I wanted a printed trench coat that had lots of colors which allowed me to dress it up or down.
While shopping for fabric, this number really stuck out to me.
 After posting a sneak peak I was told this material was originally from from the country of 
Angola. Since then I’ve seen lots of different styles from different fashion enthusiasts and how they styled this beautiful fabric.

Top: Zara| Pants: Target| Shoes: Forever 21| Jacket: Designed by me 
Photos by Harry Ondoa

Source: 16

Arsenal will cost Dangote just 5% of his fortune

Featured Image

VENTURES AFRICA – Africa’s richest man Aliko Dangote is still interested in investing in English Premier League side Arsenal FC after a failed bid in 2010. Although he denied he was interested in buying a stake in the club at the time, he has now signified interest and claims he has a strategy for investing in the North London club.

Like most fans, Dangote believes the club needs a new direction and would like manager Arsene Wenger “to change his style a bit”. He is not just another businessman who wants more money, but also a passionate fan of the club. Thus, if he makes a move to buy, Arsenal fans are likely to support him. Independent polls have already shown that majority of the club’s supporters think Arsenal need new investment.

Dang

source: Mirror Football

However, the richest black man is not going to invest in Arsenal just yet. “I still hope, one day at the right price, that I’ll buy the team,” he said in an interview.

“I might buy it, not at a ridiculous price but a price that the owners won’t want to resist. I know my strategy.”

Dangote will only consider buying Arsenal after he is able to take his company to desired level. As his short-term growth plan, his Group has investments worth $16 billion planned for the next few years.

If Dangote will stand a chance of taking up the ownership status at the Emirates Stadium, he will need to convince Stan Kroenke who holds 66.64 percent stake in Arsenal and 29.11 percent held by Uzbek billionaire Alisher Usmanov and London-based financier Farhad Moshiri through Red and White Sec Limited.

If the Nigerian convinces current owners of the club to sell, he will only be parting with 5.1 percent of his fortune as Arsenal is worth $1.3 billion. While a good offer may be welcomed by Red and White, it is unlikely that Kroenke will be swayed by Dangote’s offer. The American entrepreneur has a two-decade-old interest in sports business. The sports mogul bought his first team in 1995 through his Kroenke Sports Enterprises. He owns six professional franchises, including the National Football League’s St. Louis Rams, NBA’s Denver Nuggets and NHL’s Colorado Avalanche.

Same cannot be said about Dangote, who is known for interests in cement, sugar and flour. He is also investing $11 billion in an oil refinery to be located near Lagos. But his multi-billion dollar investments globally focuses on consumer goods, oil and gas and construction. None of his assets is sports-related. Kroenke’s business is sports and it is the only thing he has more than the African billionaire whose fortune quadruples his own.

Whether Kroenke will give up his stake for a good sum remains to be seen, but like Dangote said, he knows his strategy. He will offer “a price that the owners won’t want to resist”.

 

Source: New feed25

Aliko Dangote Still Keen On Buying Premier League Club

Featured Image

The richest man in Africa Aliko Dangote is still interested in  buying English Premier League side Arsenal.

Aliko Dangote has an estimated fortune of about £10 Billion, the Nigerian has been keen to take control of the Gunners for a number of years and was linked with a stake in the club when former director Lady Nina Bracewell-Smith was selling her shares in 2010.

Majority shareholder at Arsenal Stan Kroenke remains committed to Arsenal for the long-term while Uzbekistan magnate Alisher Usmanov, who controls around 30 per cent of the club, has also expressed no desire in selling any of his stock.

But Dangote is refusing to rule out taking charge of the Londoners in the future.

Dangote, 58, who was speaking to Bloomberg, he said:

“I still hope, one day at the right price, that I will buy the team. I might buy it, not at a ridiculous price but a price that the owners won’t want to resist. I know my strategy.”

However, the 58-year-old was quick to point out that, despite the interest, no bid for the Premier League side ‘is in the pipeline’.

Dangote however had this to say about Arsenal and Arsene Wenger.

“Wenger needs to change his style a bit,” he said. “They need new direction.”

image

Source: 25