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AFRICA MICRO

KEY SECTOR TRENDS AND OUTLOOK

Coast, Madagascar, Mauritania, Senegal, and South Africa. Credit Agricole is in Algeria, Libya, South Africa and Tunisia.

Kenya, Nigeria, Tanzania, South Africa, Uganda and Zambia.

COMMUNICATIONS AND TECHNOLOGY British banks are active in the former UK colonies. Barclays for example has operations in Botswana, Egypt, Ghana, Kenya, Mauritius, Nigeria, Seychelles, South Africa, Tanzania, Uganda, Zambia and Zimbabwe. In 2005, it bought a majority stake in ABSA Bank of South Africa, the largest consumer bank in the country which has a presence in Mozambique, Namibia, Tanzania, Angola and Zimbabwe. RBS is in Egypt and South Africa. Initially, HSBC has a presence in South Africa, Nigeria, Angola, and Kenya followed by Angola, Ivory Coast, Ghana, Mozambique, and Uganda through its acquisition of Equator bank in 2003. Standard Chartered is in Botswana, Cameroon, Gambia, Ghana, the Ivory Coast, Kenya, Nigeria, Sierra Leone, South Africa, Tanzania, Uganda, and Zambia. Portuguese and Brazilian banks have operations in Mozambique and Angola. The State Bank of India operates in Mauritius and South Africa and Bank of Baroda (India) has branches in Mauritius, South Africa and Seychelles, subsidiaries in Botswana, Ghana, Kenya, Tanzania and Uganda and a joint venture in Zambia. South African banks are making a major push into the African market. In December 2008, Nedbank entered into a strategic partnership with Ecobank Transnational Incorporated, the parent company of the Ecobank Group. Their goal is “to provide customers access to a combined Pan - African banking network covering 30 countries (including South Africa) with over 1,000 branches and banking outlets across the continent.” Standard Bank has operations in Ghana, Kenya, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Nigeria, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe. First Rand Bank through its ownership of First National Bank has offices in Swaziland, Mozambique, Botswana, Namibia and Zambia.

Cell Phones There has been explosive growth in cell phone usage in Africa. In Nigeria for example, the number of cell phone subscribers surged from 30,000 in 2000 to 87.3 million in 2010 while in Kenya, it leaped from 127,404 to almost 25 million and in Tanzania, it increased to 21 million from 110,518. As of 2010, there were just 12 million land phone lines in Sub-Saharan Africa (SSA) but there were 360 million mobile cellular subscribers. Although the use of cell phones has grown rapidly, it still remains low when compared to other areas of the world, thus suggesting the market is not in jeopardy of reaching a saturation point which would slow sales. In SSA, there are 45.2 mobile phones per 100 people while in Asia and the Pacific, there are 69.2 per 100 people and in Europe there are 117.7. There are many African nations where mobile phone use still remains small. In the Central Africa Republic, for example, there are just 3.8 mobile phone subscribers per 100 people, in Ethiopia there are 4.9 and in the Democratic Republic of the Congo, there are 15.4. According to the World Bank, just 56% of the population of SSA is covered by a mobile phone network. Among the major cellular phone companies operating in Africa are Portugal Telecom, MTN (Mobile Telecommunications Network, South Africa), Emirates Telecommunications Corp, French Telecom, Bharti Airtel (India), Maroc Telecom (Morocco), Orascom Telecom (Egypt), Millicom International Cellular (Luxembourg), Waird Telecom (Abu Dhabi), ZTE (China), Vodfone (UK), Telekom Malaysia and CeLimitedom (Israel).

Largest Banks in Africa by Assets (USDbn) Bank

Country

Standard Bank ABSA

South Africa South Africa

Assets 80.6 96.8

Earnings Deposits 4.2 2.9

103.6 47.3

Nedbank FirstRand

South Africa South Africa

76.9 76.2

2.2 1.6

63.3 57.6

National Bank of Egypt Attijariwafa Bank

Egypt Morocco

40.1 36.4

2.0 1.7

31.0 24.4

Banque Exterieure D' Algerie Gumhouria

Algeria Libya

30.0 26.1

0.5 0.5

22.7 2.5

Credit Populaire du Maroc Banque Maroc Du Commerce

Morocco Morocco

26.1 15.9

1.1 0.5

20.3 12.1

Source: Joab’s Technologies and Research. Capital Joab’s Technologies and Research.

2010 Data At an African Investment Summit sponsored by Reuters on March 7, 2011, J.P. Morgan Chase indicated that it would open representative offices in Ghana and Kenya this year and a full branch in Nigeria by next year. Citibank has branches in Egypt,

Source: Joab’s Technologies and Research. Capital Joab’s Technologies and Research.

Computers, Internet and Broadband Use Computer, internet penetration, and broadband use in Africa is very low when compared to the major industrial countries. This

Equity Research in Africa, Like an Electric Train Africa is picking up, a True Emerging Market  

Economic analysis of Africa as a whole, as well as of particular countries and sectors, with special regard to their potential as investment...

Equity Research in Africa, Like an Electric Train Africa is picking up, a True Emerging Market  

Economic analysis of Africa as a whole, as well as of particular countries and sectors, with special regard to their potential as investment...

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