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FINANCE
LOGISTICS
POWER
CONSTRUCTION
Developing solutions to simplify access to trade finance P18
Ports expand to attract major shipping lines P24
Solar farms to boost access to energy P28
Latest loaders on the market P38
Editor’s Note
MAY 2018
BUILDING THE FUTURE
P34
Major infrastructure projects shaping the continent
TRENDS IN MINING
P47
Countries shining a positive light on the sector SPECIAL KENYA REPORT P20 East Africa’s largest economy on the move
“The solution may lie in regionalisation. Kenya and Ethiopia arguably need to forge closer links with their regional partners,”
53
Christian Toben, regional head, Africa at Commerzbank
YEARS
SERVING BUSINESS IN AFRICA SINCE 1964
P16
Cover picture: An artist’s impression of Konza Tech City in Kenya. © www.konzacity.go.ke/resource-center/gallery/ Cover Inset: Christian Toben, regional head, Africa at Commerzbank. © Commerzbank Editor: Samantha Payne Email: samantha.payne@alaincharles.com Editorial and Design team: Prashanth AP, Hiriyti Bairu, Miriam Brtkova, Praveen CP, Ebin GheeVarghese, Pranav Kiran, Deblina Roy, Rhonita Patnaik, Rahul Puthenveedu, Nicky Valsamakis and Louise Waters Managing editor: Georgia Lewis Contributing editor: Martin Clark Publisher: Nick Fordham
W
elcome to the May issue of African Review. Our cover story this month is part of a special series we are running on infrastructure developments, which are expected to dramatically reshape the continent’s future (pages 34-36). Konza Tech City in Kenya is one such project. To be built over 5,000 acres outside Nairobi by 2030, it is already being labelled the ‘African Silicon Savannah’ and aims to position Kenya as Africa’s ICT hub. As Harihuko Knoda, former president of the Asian Development Bank, aptly says, “without appropriate infrastructure, countless millions of people will lack access to jobs, markets, hospitals and schools”. With experts saying at least US$120-140bn is needed to cover the current cost of infrastructure backlogs, let’s hope investors in years to come dig deep and take advantage of the ample opportunities that exist to give Africa the proper infrastructure systems that it deserves. With a month to go until the 20th Africa Energy Forum in Mauritius, renewable energy will feature high on the agenda with delegates discussing how renewable energy projects, including biomassgenerated electricity, could be alternative solutions to contributing to the national grid (page 30). Elsewhere in the issue we look at some of the best wheel loaders and backhoe loaders for sale in the African market (page 38).
Samantha Payne, Editor
Contents
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Profile
20
Special report: Kenya
24
Logistics
P16
28
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 Middle East Regional Office: Alain Charles Middle East FZ-LLC, Office L2-112, Loft Office 2, Entrance B, PO Box 502207, Dubai Media City, UAE, Tel: +971 4 448 9260, Fax: +971 4 448 9261
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P24
Production: Srinidhi Chikkars, Nelly Mendes, Infant Prakash and Rakshith Shivakumar E-mail: production@alaincharles.com
34
Chairman: Derek Fordham Printed by: Buxton Press Printed in: April 2018 ISSN: 0954 6782 SUBSCRIPTIONS:
P38
Rates for one year (11 issues): Europe €107, Kenya KSh3400, Nigeria N6600, South Africa R460, United Kingdom £77, US$140 To subscribe: visit www.africanreview.com/subscribe For any other enquiry email circulation@alaincharles.com
Serving the world of business
P46
Christian Toben, regional head, Africa at Commerzbank explains why regionalisation is crucial to East Africa.
After a difficult election period, Kenya is emerging as a powerful economic force, with major sectors looking significantly healthier in 2018.
East African ports continue to expand to attract major freight shipping lines into Kenya and other regions, and in West Africa, container handling company DP World has announced it will be investing in the Port of Banana.
Power Solar Farms are being built across Africa to meet electricity needs. One of which already established is Africa’s largest solar farm in Burkina Faso. The massive 33MW plant joins Africa’s other largest photovoltaic facilities in South Africa and Morocco.
Infrastructure Economist Moin Siddiqi examines the major infrastructure projects in the pipeline that will define Africa over the coming years.
38
Construction
46
Mining
A look at the latest wheel loaders and backhoe loaders on sale for African markets.
Examining the trends in mining and seeing which countries are hoping to move into the sector.