New Business Africa Online Magazine Olympics 2012

New Business Africa 1

2 New Business Africa

EDITORIAL New Business Africa 45 Midland Terrace North Acton London NW10 6LH Tel: +44 2030867604 Fax: +44 2071923604 Email: info@newbusinessafrica.com Web: www.newbusinessafrica.com Publishers Rob Edward Colin Evans Publishing Editor/CEO: Dr. Tunde Aworinde R. Ajani Associate Editor (Switzerland): Taiwo Danjuma Associate Editor (Caribbean): David F. Roberts Head London Desk: Paul Watton Head USA Desk: Kazim Malik Head German Desk: Thomas Hartwich Head South African Desk: Dr. Sam Usadolo Head Asian Desk: Sahar Said Head Middle East: Zabi Mohammed Marketing Director: Femi Philips Demola Koyejo Creative Director: Alan - Tee Jnr Design & Layout: MindQwest Studios Uk Ltd Editorial Advisory Board: Dr. Uwe Boving Klaus Leger Sabine Brown Corporate Directors: Prince A. Adeniji- Adele Chief Bode Oyewole Pastor Abimbola Adewole Matthew Johnson Yomi Rhodes Guest Consultants: Professor Peter Lam (UK) Dr Ikechukwu Adimora (Nigeria) Professor Kwesi Sarpong (Ghana) Professor K. White (USA)

EDITOR’S NOTE

H

ere at New Business Africa, we like to think of ourselves as being reflective, approachable and open – an independent media organization that likes to do things in a new way. That’s why in this edition we go back in time and imagine ourselves in Africa of the 1980s. Then, hardly was there a serious democratic state as most countries were under the military dictatorships. The continent was ravaged with conflicts and famine. The general horror picture was of doom and gloom. To counter the sometimes exaggerated Western media coverage of the continent at the time, Africans shouted themselves hoarse to defend the sometimes indefensible human tragedy. In that era, an editorial of this nature would have been unimaginable and a business magazine of this kind, inconceivable.

But in year 2012, Africa’s democratic credentials have improved tremendously and the impressive economic efforts and achievements across the continent can not be overlooked. This is a relief to Africans and good news for global investors.

According to forecasts by Standard Chartered, over the next five years it will be the African economies that begin to edge ahead and even outpace the Asian pacesetters. Indeed, the IMF expects African countries to occupy 7 of the top 10 positions of the fastest growth rates over the next five years.

For all practical purposes therefore, what does the use of the phrase ‘Africa’s decade’ mean? This is a phrase that has often become a buzz word that means everything and signifies nothing. In our special report, New Business Africa takes an in-depth look at the continent’s balance sheet of success. The report shows that Sub-Sahara Africa will be one of the fastest growing regions in the world this year, thanks to a surge in demand both from home (fuelled by urbanization and consumerism) and from abroad predominantly from China and India.

While NBA presents the faces of African athletes to look out for at London Olympic Games, we also profile notable personalities who are leading the Africa’s renaissance, prominent among them is the finance guru Adebayo Ogunlesi that bought the London Gatwick airport.

Elsewhere, we spotlight Nigeria, Africa’s most populous nation with immense natural resources and manpower. Few will disagree that there is definitely money to be made in the Nigerian domestic market with about 160 million people.

In the same breath, in our special report, we present Ogun State in Nigeria, whose Governor, Ibikunle Amosun is set to bring back its past glory. Yet Amosun-led administration strives to make his state a haven for global investors. So far, it’s been a success story.

We equally report on a new African city that is emerging from the bed of the Atlantic ocean in Lagos, called Eko Atlantic – It will most likely be a new gateway to Africa in the 21st century. Simultaneously, in our exclusive advertorial, Cadwell, a real estate developer in Lagos is redefining the meaning of luxury living in Nigeria.

Also in this edition, the world richest black person, Aliko Dangote explains why Nigeria is the place to be for highest returns on investment. While in our Business Tip, the British billionaire, Sir Richard Branson- the lion heart- advises, that the best time to start up business is in the recession time. Our EXPERT gives reasons why glossies are still relevant for your brand awareness.

With the necessary economic fundamentals in place, Africa is well positioned to become the investment hub of the world, and an even more significant player in the global economy. In our Analysis feature we note that, America’s economy is starting to show real signs of recovering from global financial crisis, and the contributions of emerging economies are not negligible, which may give President Barack Obama’s re-election campaign an edge. But what does Africa stand to gain, if Democrats return to power?

I do hope that with this edition, NBA has captured your attention and met your expectations.

The information contained in this publication has been obtained from sources the proprietors believe to be correct. However, no legal liability can be acceptedfor any errors. No part of the publication may be reproduced without prior consent of the Publishers. Submissions to the magazine are sent at the owners’ risk.

Publishing Editor/CEO Dr. Tunde Aworinde R. Ajani

New Business Africa 3

CONTENT

SPECIAL REPORT AFRICA ECONOMIC SUCCESS GOOD NEWS FOR INVESTORS

AFRICAN DIASPORA BRINGS MODERNITY AS AFRICAN EXPATRIATES RETURN HOME

NGOZI OKONJO-IWEALA THE SHINING EXAMPLE OF AFRICAN RETURNEES

AFRICA’S RENAISSANCE PROFILES OF NOTABLE LEADERS IN BUSINESS

OLYMPIC ENDEAVOUR AFRICAN CHAMPIONS IN PICTURES

COUNTRY FOCUS NIGERIA THE GIANT OF AFRICA STRIDES OUT, NIGERIA HAS WHAT INVESTORS WANT OVERVIEW OF INVESTMENT OPPORTUNITIES IN NIGERIA NIGERIAN BANKS READY FOR CASHLESS SOCIETY THE NEW KID ON THE BLOCK, ISLAMIC BANKING IN NIGERIA

4 New Business Africa

06 11 12 15 22 26

OPINION WORLD RICHEST BLACK PERSON ALIKO DANGOTE SAYS NIGERIA IS THE PLACE TO BE FOR RETURNS ON INVESTMENTS

CADWELL A REAL ESTATE DEVELOPER IN LAGOS IS REDEFINING THE MEANING OF LUXURY LIVING IN NIGERIA.

LOCATION PROFILE OGUN THE GATEWAY STATE OPENS ITS DOOR TO INVESTORS

EKO ATLANTIC CITY A MODERN CITY BUILT ON A LAND RECLAIMED FROM THE ATLANTIC OCEAN

BUSINESS TIPS BRITISH SIR RICHARD BRANSON –THE LIONHEART – SAYS THE BEST TIME TO START UP BUSINESS IS IN RECESSION TIME

28 34 36 40 50

New Business Africa 5

AFRICA SPECIAL REPORT

AFRICA

ECONOMIC SUCCESS GOOD NEWS

FOR INVESTORS

A

s the countries of northern Africa go through the convulsions of rebellion, repression and war, this is a good time to take stocks and consider the prospects for Africa.

Africa that was for decades thought would come only through development aid is now in sight, thanks to the profit motive.

The varied regimes of Africa also dramatise one of the defining questions of the twenty fist century namely, the nature of capitalism that will emerge. For all their problems with corruption Nigeria and Kenya, for example, are attempting to establish a model founded on free speech, open markets and

being provided and improved.

Progress will also require a healthier and more literate population. The absence of governments with national authority in some countries means that ethnic and religious conflicts still flare up into civil war. Also, the distressing poverty in some parts of Africa still mocks the colossal opportunities that are on the horizon.

For the avoidance of doubt, Africa is already an unheralded success story. Real GDP across the whole continent rose by 5% per annum in the decade from 2000, more than twice the pace of the 1980s and 1990s. Africa’s collective GDP is now equal to that of Brazil “For all their problems with corruption or Russia. One third of Africa’s Nigeria and Kenya, for example, are growth comes from the boom in commodity prices; the other attempting to establish a model founded two third comes from growth in on free speech, open markets and telecommunications, banking, retailing and construction.

By and large, the time in which Africa seemed like a basket case of despair and tragedy has passed. Ten percent of the world’s reserves of oil, 40 % of its gold, and 80 to 90 % of the chromium and platinum are to be found in Africa. Now is the chance, through investment, political systems that are responsive to for Africa to capitalize on some Since African governments have of this natural abundance. The an increasingly wealthy middle class.” mostly progressively privatized opportunity exists for many state-owned enterprises, nations in Africa to partake in increased the openness of trade, the prosperity that has benefited lowered corporate taxes and strengthened political systems that are responsive to an other parts of the world. There is also the their regulatory and legal systems, private increasingly wealthy middle class. opportunity for New Business Africa NBA investment has started to flow in. The annual to be the proper gateway to this economic Africa is still bedeviled and blighted by flow of Foreign Direct Investment (FDI) into success. some old problems. Effective government Africa is seven times greater today than it was is still rare. But investors are increasingly That mutual benefit is the function of this in 2000. The rate of return on this investment gaining confidence that contracts are being edition of New Business Africa London is higher than in any other developing enforced and that national infrastructure are Olympics Edition. region. The yearning for a prosperous

6 New Business Africa

AFRICA SPECIAL REPORT

Africa seeks Partners to Handle Challenges Not since the period of decolonisation has the continent experienced a sense of momentum and an upbeat assessment of Africa’s prospects. Africa is awake and on the move. From Lagos to Lusaka, Cape Town to Cairo, from the beaches of Indian Ocean to the oil-rich Atlantic, a billion people, hardworking and hustling, are changing the face of a vast continent.

The pictures in 1980s of a continent in crisis are still fresh in the minds and they still resonate. According to United Nations Organisation’s statistics, one in four Africans goes hungry each night. One in five children dies of a curable disease before the age of five. Management capacity is still weak, bureaucracy proliferates, corruption is pervasive and ruling elite is authoritarian.

The African market is still fragmented and integration is slow. Water is scarce in East and Southern Africa; religious and ethnic tensions lie below the surface of many nations; across the continent urbanization outpaces city planners; sleaze saps business and climate change derails development plans.

Africa is looking for partners to tackle these threats, just as it looks for partners to develop its huge assets, from oil to arable land and from precious minerals to tourist destinations. The world should look afresh at relations with a continent that is at last starting to realise its potential.

The breaking news in africa today is growing prosperity Skyscrapers emerge in Addis Ababa; a “new Manhattan” takes shape on Victoria Island in Lagos. There are film festivals in Mali, fashion shows in Johannesburg, and concerts in Kinshasa. African novelists flourish, African art is booming, property prices soar and mobile phones are everywhere. And the New Business Africa NBA is enthusiastically welcoming change in a continent determined to throw off the shackle of conflict and poverty.

This recovery in Africa is fuelled by the continent’s high economic growth, by a global search for the commodities that Africa has in abundance and by an unprecedented level of foreign investment. The path leading to this new Africa has been rough, mistakes have been made and there is still a long way to go.

Usually, when experts talk about the parts of the world experiencing strong growth, they focus on the BRIC economies of Brazil, Russia, India and China. But the often unnoticed African economies have been growing at an equally impressive pace.

Across the continent GDP has grown on average, and more than double the rate of the developed world over the past ten years.

The collective GDP of Africa now amounts to 1.6 trillion dollars that is equal to that of Brazil or Russia. Consumer spending is now growing at more than twice the rate of OECD countries.

But in order to continue with the pace of growth, banks both local and international have a crucial role to play in helping to further develop economies in Africa. The global economic experience shows that as businesses grow, people and their governments need access to capital markets. They need to hedge foreign exchange or commodity volatility so that they can concentrate on growing their

businesses, creating spreading prosperity.

employment

and

Africa is a continent of extremes; from its beautiful landscapes and varied wildlife to massive reserves of natural resources and entrepreneurial spirit to the reality of extreme poverty. The opportunities for engagement are enormous, but New Business Africa focuses on what we know best; helping to promote economic growth by presenting investment opportunities to global investors.

Lagos jumps, urban life epitomises a booming african

metropolis On a typical sunny day in Lagos, the streets are choked with traffic. Lorries, trucks, 4x4s, limousines and battered taxis inch across, belching great clouds of exhaust fumes. On the humid street, hawkers sell everything from mobile phones to bottles of water.

Everywhere you look; there are teaming crowd, beautiful houses, shops, clubs and luxuries, even in the midst of all too glaring inequalities. Lagos, the Nigeria’s commercial centre and home to some 18 million people is hot, busy and bustling. It is equally energetic, exciting and definitely booming. By 2020, it will be the world’s third largest city. It already

New Business Africa 7

AFRICA SPECIAL REPORT has Africa’s highest concentration of dollar billionaires.

Lagos is a microcosm of the entire continent.

In Ethiopia’s capital Addis Ababa, in contrast to the image of famine of the 1980s, visitors will be astonished to find an airport to rival Dubai and a skyline of skyscrapers taking shape. The same applies to Angola which until recently enjoyed the highest growth rates in the world. There, colonial railways into the rich copper belts of Zambia and Congo are being rehabilitated, ports constructed and roads repaired. The capital, Luanda, is

as Donald Kaberuka, president of the African Development Bank, puts it, “Africa is ready to optimize its potential. Opportunities abound and the time is ripe”

Democracy is improving in sub-sharan africa and economic fundamentals

not been matched in the troubled North.

Though, there are still pockets of autocratic and dynastic leaders in half a dozen or so countries, notably Zimbabwe, Equatorial Guinea and Eritrea. And there is a collection of fragile post-conflict states like the Democratic Republic of Congo, Liberia and Sierra Leone, all struggling to join the development bandwagon. But, on the whole, the region is experiencing dramatic growth. And investors’ interest in the region is growing by the day.

The outlook is more favourable now than at any time since decolonization. Africa is hosting more than half of the world’s top ten fastest growing economies, with Ghana, Kenya, Uganda, Rwanda, Nigeria, Angola, Zambia and Mozambique among the stellar

awash with new shopping malls, hotels and casinos.

The trend is clear and unlikely to be reversed.

The African economy is predicted to grow at an average rate of 7 per cent over the next two decades, that’s faster than China. As a result, the GDP of the largest 11 African countries will be bigger than those of Russia and China by 2020. Some 100 African companies have revenues greater than $1 billion. Sub-Saharan Africa accounts for just 2.4 per cent of global GDP, but that offers huge potential for growth. Overall, though, GDP per capital is fast approaching $700 compared with about $400 just a decade ago.

Less well known is that the rate of return on foreign investment is greater than in any other developing region.

The causes of change are myriad: a commodities boom, driven by China and India; new trade routes; new technologies and of course, the can-do attitude of the new Africans. There will be set setbacks, but

8 New Business Africa

are right for investment The contrast between the turmoil sweeping North Africa and the relative calm of most sub-Saharan African countries is no accident.

Africa south of the Sahara has made huge progress over the past two decades in boosting its democratic credentials and improving the way it governs itself. That has

performers. And most governments in the region are making serious efforts to make themselves investor-friendly.

Central to the revival of fortunes is the general improved governance. Investors usually have a check-list of factors before deciding where and when to invest. Corporations want to ensure that regulations will be applied fairly, not arbitrarily, that judges are impartial and that public administration is effective and honest. Increasingly, companies are finding this to be the case. Also strong, open and

AFRICA SPECIAL REPORT accountable political institutions that allow citizens to influence the decisions that affect their daily lives are powerful guarantors of environment needed for a flourishing private sector.

This welcoming investor-friendly democratic atmosphere seems a world away from the all too familiar “Africa of chaos”. No doubt, Africa’s problems abound, of that there can be no debate, but the continent’s potential is being realized before our own very eyes. It’s an exciting time in Africa.

Intra African Trade makes a Great Leap Forward.

While most of the talk about African trade concentrates on how its growth has outstripped that of the rest of the world since 2002 and its share of world trade has doubled year on year, or on how trade between Africa and the BRIC countries (Brazil, India and China) is expanding, Africa’s trade with itself has expanded by 20 per cent each year since 2001.

The cumulative exports of individual African countries into the rest of Africa have increased by an average rate of 11 .5 per cent each year since 1990. More recently, exports from one African nation to another increased from $11.7bn in 2000 to a cyclical peak of $45bn in 2008. Intra African exports amounted to $40bn in 2010, but should surpass the previous peak in 2012.

Southern and West Africa are each the origin for one-third of Africa’s internally traded goods - a share that has remained broadly consistent since 1980. North Africa, while accounting for around half that amount, has also kept its share constant. In contrast, East Africa has seen its relative share fall from 20 per cent in the early 1980s to 14 per cent in recent years. East Africa’s relative decline has come as Central Africa, where exports into the rest of Africa have grown the most rapidly, has increased its share from merely 3 per cent in 1980 to close to 10 per cent in 2010.

South Africa has the most hegemonic influence, accounting for 80 per cent of Southern Africa’s internal exports. In fact, South Africa is the only African country to export more than $1bn worth of goods into the rest of Africa. The most balanced region is East Africa, where Kenya accounted for $1.6bn of near $6bn exports in 2010.

West and Southern Africa accounted for the majority of the continent’s internal exports, and Central Africa had experienced an increase in its relative share over the past two decades.

In terms of imports, the regional balance is somewhat more even: Southern (25 per cent), East (25 per cent) and West (23 per cent) Africa accounts for the majority of African demand for African goods. Once again, East Africa is the most dependent on African supply: in 2010 one fifth of East Africa’s imports originated from inside Africa, whilst 15 per cent of West African, 12 per cent of Southern African and 10 per cent of Central African imports come from inside Africa. The least inwardly orientated region, as in the case of exports, is North Africa.

Though in absolute terms mineral fuels dominate African exports, in terms of internal African trade, they account for only 40 per cent of total annual intra-African trade. Latest figures show that just five countries import around 80 per cent of Africa’s internal mineral fuel exports: Nigeria (40 per cent), Algeria (15 per cent), Cote d’Ivoire (10 per cent), South Africa (9 per cent) and Egypt (5 per cent). However, the role of mineral fuel in intra-African trade is smaller than in Africa’s total exports.

The evidence suggests that crude exports primarily heading to advanced nations and some emerging markets offshore, dominate Africa’s absolute trade, undermining the level of regional integration. Nevertheless, the internal trade of machinery and mechanical appliances, transport equipment, chemical products and prepared foodstuffs were close to $4bn in 2010.

More importantly, with the exception of mineral fuels, pearls and precious metals, hides and skins, and textiles, the representation of African exports within each product group is relatively higher.

Noticeably more African nations imported more than $1 bn from other African nations in 2010 compared to those that exported that amount. Africa offers a more level playing field than other markets, making it easier for African exporters to find a market for their goods, but it is comparatively harder to produce the goods as, simply put, the producers are few while the buyers are many.

As expected, given the dearth of African manufacturing and the demand for manufactured goods across the continent, African production makes up a small share of African total imports. Explicitly, across the entire spectrum of goods, Africa looks to external sources of production, using revenues generated from commodity exports to import the goods required to feed, shelter and develop it.

Such a situation could only be gradually reversed if Africa starts prioritising economic diversification and regional markets. At the heart of this diversification is the need to shift to industrial production and to diversify Africa’s export base.

Moreover, deepening domestic manufacturing capabilities will significantly enhance regional integration, providing a boom to intra-African trade flows and increasing the continent’s economic resilience.

In practice, however, significant obstacles remain to accessing Africa’s markets. First, an agreement for the removal of nontariff barriers is still missing. In addition, the mechanisms are not in place to successfully monitor implementation. Customs procedures are far from harmonised. Then, an overwhelming stress point for both foreign and locally-owned businesses and governments pertains to human capital bottlenecks. Along the entire supply chain and within a cross-section of institutions, African economies face shortages of skills.

Many of these skills are critical precursors to creating more diversified economies.

Remedying this will take time.

Most profoundly, structural weaknesses, notably inadequate transport infrastructure, also hamper intraregional trade. Due to its poor infrastructure, Africa also has the highest transport costs in the world (almost double the world average).

Landlocked countries face even greater constraints, with transport costs up to 50% higher than those of coastal countries.

Furthermore, a poor road infrastructure has the ability to depress business productivity by up to 40 per cent.

Africa needs to invest around $100bn a year to upgrade, maintain and expand roads, railways, ports and other core infrastructure to create channels vital to enhance connectivity and diversification, which in turn will drive the development of secondary infrastructure connections.

Successful negotiation of the challenges outlined above will reshape Africa’s global economic and political identity in the 21st century.

Improving Africa’s infrastructure will provide a boom to regionalism, improve the investment climate, stimulate economic diversification and bolster economic resilience across regional economic communities.

Reports by Sam Usadolo (South Africa) and Taiwo Danjuma (Switzerland)

New Business Africa 9

10 New Business Africa

AFRICAN DIASPORA

DIASPORA BRINGS MODERNITY AS AFRICAN EXPATRIATES RETURN HOME A few decades ago, as Africa was torn by wars and ravaged by hunger with dwindling opportunities, Africans were scattered all over the globe as refugees, but also as academics and professionals. It was the period of the so-called brain drain of Africa.

It is correct to say that, it is not only foreign corporations that have been attracted by positive developmental trends we are now witnessing. The African Diaspora has played a key role in driving the region’s revival. In particular its entrepreneurs and professionals have made immense contributions.

Recruitment agencies report a surge in demand for African professionals, and have turned to the Diaspora to meet the demand, especially in IT, banking and finance sectors.

But the question remains, will African Diaspora perform the same feat as the Jewish Diaspora did in the modern State of Israel - bring Africa into modernity? The world is watching with keen interest.

New Business Africa 11

PERSONALITY

Ngozi Okonjo-Iweala (African expatriate returnee) Finance Minister of Nigeria

Ngozi Okonjo-Iweala The shining example of African Returnees Ngozi Okonjo-Iweala was appointed in July 2011 as the new Minister of Finance for the Federal Republic of Nigeria. Prior to this appointment, she was the Managing Director of World Bank (October 2007 - July 2011) and has also held the position of a Finance Minister and Foreign Minister of Nigeria, between 2003 and 2006. She is notable for being the first woman to hold either of those positions. She served as finance minister from July 2003 until her appointment as foreign minister in June 2006, and as foreign minister until her resignation in August 2006. In 2007, Okonjo-Iweala was considered as a possible replacement for former World Bank President Paul Wolfowitz, Dr. Ngozi Okonjo-Iweala was educated at Harvard University, graduating magna cum laude with an A.B. in 1977, and earned her Ph.D. in regional economic development from the Massachusetts Institute of Technology (MIT) in 1981.

Prior to her ministerial career in Nigeria, Okonjo-Iweala was vicepresident and corporate secretary of the World Bank Group. She left it in 2003 after she was appointed to President Obasanjo’s cabinet as Finance Minister on 15 July 2003.

In October 2005, she led the Nigerian team that struck a deal with the Paris Club, a group of bilateral creditors, to pay a portion of Nigeria’s external debt (US $12 billion) in return for an $18 billion debt write-off.

12 New Business Africa

Prior to the partial debt payment and write-off, Nigeria spent roughly US $1 billion every year on debt servicing, without making a dent in the principal owed.

Okonjo-Iweala also introduced the practice of publishing each state’s monthly financial allocation from the federal government in the newspapers. She was instrumental in helping Nigeria obtain its first ever sovereign credit rating (of BB minus) from Fitch and Standard & Poor’s. Nigeria is considered to have defaulted on its foreign debt in 1983 (debt rescheduling is considered a type of default by rating agencies).

She resigned as Nigeria’s Foreign Minister on August 3, 2006 following her sudden removal as head of Nigeria’s Economic Team by former President Olusegun Obasanjo. She left that administration at the end of August 2006.

On October 4, 2007, World Bank President Robert Zoellick appointed her to the post of Managing Director, effective December 1, 2007.

In 2011, Okonjo-Iweala was reappointed as the Coordinating Minister for the Economy and Minister of Finance by President Goodluck Jonathan.

During her confirmation as a Minister, she stressed the need to re-

PERSONALITY duce the country’s recurrent expenditure which is presently 74% of the National Budget and embark on capital projects which could improve the 14% unemployment rate in the country. In her role as the Coordinating Minister for the Economy and Minister of Finance, she has extensive influence to shape the direction of the Jonathan Goodluck’s economic team and the transformation agenda.

In 2007, Okonjo-Iweala’s NGO, NOI Global Consulting, partnered with the Gallup Organization to introduce an opinion poll, the NOI poll, into the Nigerian polity. She is a fellow at the Brookings Institution. Okonjo-Iweala also serves on the Advisory Board of Global Financial Integrity and on the Board of Directors of the World Resources Institute. She has received many awards and obtained about five honorary doctorate degrees. One of the books she wrote is The Debt Trap in Nigeria: Towards a Sustainable Debt Strategy (2003)

From Right; Minister of Finance, Dr. Ngozi Okonjo-Iweala, National President Joint National Association of persons with disabilities (JONAPWD), Barrister Danlami Bashirand SEC-Gen JONAPWD, Mr. Dandison Nwankpa Hart during a courtesy visit to the Coordinating Minister of the Economic Team in Abuja.

Okonjo-Iweala has not expressed interest to contest political office in Nigeria. However, from her vast expertise in World Economic circles and with a keen understanding of economic realities in developing countries (having served as a distinguished Minister in the Nigerian government), she has been vocal in her denunciation of the manner in which the country is currently accumulating huge debts.

Just like the Jewish Diaspora after acquiring Western knowledge and skills returned to build the State of modern Israel, Ngozi Okonjo-Iweala is an example of impacts that African Diaspora can make in African development.

Former US Treasury Secretary Larry Summers, World Bank Managing Director Ngozi Okonjo-Iweala, JPMorgan Chase International Chairman Jacob Frenkel and Singaporean Finance Minister Tharman Shanmugaratnam

World Bank’s Ngozi Okonjo-Iweala and Sanjay Pradhan discuss what’s needed to promote additional South-South learning initiatives at the South-South Experience Exchange Facility (SEETF) showcase at the World Bank Annual Meetings in Istanbul, October 4, 2009.

AYOUB MZEE with Dr Okonjo Iweala at the Africa union headquarters

New Business Africa 13

14 New Business Africa

AFRICA’S RENAISSANCE

We profile a few among many notable people in business who are leading Africa’s renaissance.

Sanusi Lamido Sanusi Governor of Central Bank of Nigeria

stockbrokers to boost share prices.

Sanusi, dubbed by some as the “Sanusi tsunami” once defended the extensive reforms he had initiated since taking office. He noted that there was no choice but to attack the many powerful and interrelated vested interests who were exploiting the financial system.

In January 2010, Sanusi said that banks will only want to give credit to Nigeria’s Small and Medium Enterprises (SMEs) if the government gives adequate attention to the provision of infrastructure.

At a February 2010 conference on banking in Nigeria, Sanusi described his blueprint for reforming the Nigerian financial system:

Mallam Sanusi Lamido Sanusi was appointed Governor of the Central Bank of Nigeria on 3 June 2009. He is a career banker and a respected Islamic scholar.

The renowned global financial magazine, The Banker, published by the Financial Times, has conferred on him two awards.

He has also been recognised with the global award for Central Bank Governor of the Year, as well as for Central Bank Governor of the Year for Africa. The TIME magazine listed Sanusi in its list of 100 most influential people of 2011, and Forbes Magazine once chose him as person of the year and named him “A Banker Unafraid” on its front cover.

Sanusi is recognised in the banking industry for his contribution towards developing a Risk Management Culture in the Nigerian banking sector.

In August 2009 at the time of global financial crisis, Sanusi led Central Bank of Nigeria to bail out Afribank, Intercontinental Bank, Union Bank, Oceanic Bank and Finbank with 400 billion naira of public money, and dismissed their chief executives. He said “We had to move in to send a strong signal that such recklessness on the part of bank executives will no longer be tolerated.” Sixteen senior bank officials faced charges that included fraud, lending to fake companies, giving loans to companies they had a personal interest in and conspiring with

It’s built around four pillars of enhancing the quality of banks, establishing financial stability, enabling healthy financial sector evolution and ensuring that the financial sector contributes to the real economy.

The Banker unanimously recognised him as the Central Bank Governor of the Year 2010 citing his radical anticorruption campaign aimed at saving 24 banks on the brink of collapse and pressing for the managers involved in the most blatant cases of corruption to be charged and, in the case of two senior bankers, imprisoned.

As Governor of the Nigerian Central Bank, he was in favour of removing the fuel subsidy in January 2012 and cited as reasons; the high level of corruption engendered by the practice, the inefficiency of subsidizing consumption instead of production leading to slower economic growth, and the fact that the government borrows money to finance the subsidy, in effect taxing future generations of Nigerians so that current Nigerians can consume more fuel. He also noted the fact that subsidy is heavily biased in favour of the small middle- and upper-class who use most of the fuel.

He added that, some people purchase the subsidized gas in Nigeria to resell it in other West African countries. He is deeply involved in the campaign and process of inviting investors to Nigeria.

Simply put: Sanusi is his own man when it comes to foresightedness in the realm of banking and finance.

New Business Africa 15

AFRICA’S RENAISSANCE

Mohamed Ibrahim

Telecoms entrepreneur (Sudan)

Chartered Accountants CA (GH).

Dr. Mohamed “Mo” Ibrahim is a SudaneseBritish mobile communications entrepreneur and billionaire. He worked for several other telecommunications companies before founding Celtel, which had over 24 million mobile phone subscribers in 14 African countries. He made his money when he sold Celtel to Zain in 2005 for $3.4 billion and later set up the Mo Ibrahim Foundation to encourage better governance in Africa, as well as creating the Mo Ibrahim Index, to evaluate nations’ performance. He is also a member of the Africa Regional Advisory Board of London Business School.

He has extensive experience in managing businesses through excellent customer relations, strategic and tactical business planning as well as strategic partnerships.

He was voted the most respected chief executive in 2010 by Ghana’s Business and Financial Times. At the beginning of 2011, the bank sought foreign partners who would be willing to take 20 per cent stake, but Mr. Amoabeng insisted that he will not sell a majority stake and that the bank will remain a Ghanaian bank. UT Bank has loaned businesses in Nigeria and Germany, and is looking at options in South Africa, Zambia and Sierra Leone.

Founder of Econet Wireless (Zimbabwe)

CEO of Prudential (Ivory Coast)

Prince Kofi Amoabeng

CEO of UT Bank (Ghana)

16 New Business Africa

Strive Masiyiwa

Tidjane Thiam

In 2007 he initiated the Mo Ibrahim Prize for Achievement in African Leadership, which awards a $5 million initial payment, and a $200,000 annual payment for life to African heads of state who deliver security, health, education and economic development to their constituents and democratically transfer power to their successors. Since 2010 he has supported the Broadband Commission for Digital Development, a UN initiative to spread the benefits of broadband services.

Prince Kofi Amoabeng is the Chief Executive Officer of UT Bank and the UT Group. He is a retired military officer (Captain) and an investment consultant. He graduated from the premier Business School in GhanaUniversity of Ghana Business School with a B.Sc Admin (Accounting). He is a fellow of the Chartered Institute Management Accountants (CIMA-UK) and a member of

mathematics and physics in France before joining the management consultants McKinsey & Company in 1986, where he worked until 1994. From 1994 to 1999 he worked in Côte d’Ivoire first as Chief Executive of the National Bureau for Technical Studies (BNETD), reporting directly to the Prime Minister and the President, and from 1998 as both Chairman of the BNETD and Minister of Planning and Development. Following the Ivorian coup of 1999, he resumed a private sector career and rejoined McKinsey in Paris from 2000 to 2002, then worked as a senior executive for Aviva before being recruited

by Prudential. When appointed the chief executive of Prudential in 2009, he became the first black person to lead a FTSE 100 company. Mr Thiam is a member of the Africa Progress Panel, an independent authority on Africa that aims to focus world leaders’ attention on delivering their commitments to the continent.

Tidjane Thiam is an Ivorian businessman and former politician. He is the most influential African in the City of London, he became the first black chief executive of a leading British corporation in 2009 - Prudential plc, the UK-based insurance group.

Born in Côte d’Ivoire, he studied advanced

Strive Masiyiwa is a Zimbabwean born businessman and cell phone pioneer, founding Econet Wireless.

He is also Zimbabwe’s first Billionaire, at an estimated Net Worth of just over US $1.4 Billion, making him one of Africa’s richest Business men.

His flagship business, South African based Econet Wireless (www.econetwireless. com) is now a global telecommunications group with operations, investments and offices in Nigeria, South Africa, Lesotho, Kenya, Burundi, New Zealand and the UK - his was the first African telecoms

AFRICA’S RENAISSANCE company to be given a full telecoms licence by the British Government.

Strive’s company activities include mobile cellular telephony, fixed networks, enterprise networks, fibre optic cables, and satellite services. They also provide payment solutions to banks across Africa.

In 1995 Strive was appointed by American President Bill Clinton to a Board Member of the Southern African Enterprise Development Fund (SAEDF) which is chaired by Ambassador Andrew Young.

Aside from Econet, Strive is a trustee of the Rockefeller Foundation and a board member of the Alliance for a Green Revolution in Africa, which is funded by both the Rockefeller Foundation and the Bill & Melinda Gates Foundation and chaired by Kofi Annan. Also, through Econet’s subsidiaries the Group funds one of the largest orphan care programs in Africa, run by Capernaum Trust. Established in 1999, initially as the social investment arm of Econet Wireless Zimbabwe, the Trust is currently responsible for over 26,000 orphans.

In 1999, he was named by Junior Chamber International (JCI) as one of the “Ten Most Outstanding Young Persons of the World”.

In 2002 he was named to Time Magazine’s Global Business Influential’s List.

Wale Tinubu

CEO Oando Group (Nigeria) Mr. Wale Tinubu is the co-founder and CEO of Oando Group; an oil conglomerate with operations across Africa.

He graduated with a law degree from University of Liverpool in 1988 and later obtained an LLM from The London School

of Economics where he specialized in International Finance and Shipping. He started his career with his family’s law firm, K.O Tinubu & Co, where he focused on corporate and petroleum law. In 1994, Wale and two of his friends (Mofe & Jite Okoloko) founded a company called Ocean & Oil Limited that focused on the supply and marketing of petroleum products.

Ndaba Allan Ntsele CEO Pamodzi Investment Holdings (South Africa)

He started out with a second-hand oil tanker and now heads one of Africa’s largest energy companies. He once said that Africa is the most interesting frontier market right now: “There is really no other frontier that compares to Africa, from the perspective of the population, the resources that are available, the demand for them and the fact that over 60 per cent of that population is under the age of 20” Wale’s company started out providing transportation services for major Oil Companies before they began selling petroleum products. In 2000, they purchased a 30% stake in Unipetrol and the following year acquired 60% of Agip Nigeria Plc. Later on, the company name was changed to what we now know as Oando Plc. Today, the company has branched into offshore oil exploration and has expanded to countries like South Africa, Togo and Ghana (Oando has about 500 gas stations). Oando became the first Nigerian company to be listed in the Johannesburg Stock Exchange.

He is also the Chairman of Gaslink Nigeria Ltd and Tilca Nigeria and equally serves on the Board of Stallion Properties, Oando Plc – Sierra Leone, Togo, and Ghana, West African Refinery Company (WARCO) Sierra Leone, Ocean and Oil Services, and Econet Wireless Nigeria.

For latest news on investment opportunities www.newbusinessafrica.com

Ntsele is a property developer who teamed up with other black entrepreneurs during South Africa’s apartheid period to establish the investment group Pamodzi Resources Fund, which is now Africa’s largest private equity. His investments cut across all major industries in South Africa. Amongst his many achievements, Ndaba is also the South African winner of the Ernst & Young Entrepreneur Of The Year Award for 2008.

Nduka Obaigbena

Publisher and businessman (Nigeria)

Nduka Obaigbena is the chairman and founder of Nigerian newspaper THISDAY, one of the largest and most influential media brands in Africa, and the visionary behind Africa Rising concerts, a series of music, art and fashion concerts held in major cities

New Business Africa 17

18 New Business Africa

AFRICA’S RENAISSANCE across the world to promote African talent.

After working on Time and Newsweek’s special sections on sub-Saharan Africa, he founded THISWEEK as a weekly publication in 1987, which grew to become the daily THISDAY newspaper. Obaigbena is easily Nigeria’s most visible newspaper publisher.

It’s because of Obaigbena that for three years running, a dizzying constellation of stars – Rihanna, Jay-Z, Beyoncé, Shakira, Usher, P. Diddy, Mary J Blige, to name a few – have hopped on flights bound for Lagos, Nigeria, many of them performing in Africa for their first time.

Obaigbena’s indefatigable drive to promote Africa by show casing the best of Africa underlies the message that Africa needs investment, not aid.

His message about Africa is concise and direct: Contrary to what international media would have you believe, there is good news coming out of the continent and much to celebrate. Africans, and people of African descent around the world, have not only achieved landmark successes in fields as varied as music, fashion, business and politics – they have

Diaspora Obaigbena advises, “There is a lot of money in Nigeria right now.”

“This is the time of opportunity.” He says, “Nigerians are entrepreneurial.

Once they have the resources, they can grow their ideas into businesses. The second therapy is long-term: education.

Invest in education, especially technical education. Invest in people.”

Founder of IPP Group(Tanzania)

Donald Kaberuka

President of the African Development Bank (Rwanda) A chartered accountant by training, Reginald Mengi created the IPP business conglomerate in the mid 1990s after serving as Chairman and Managing Partner of Coopers & Lybrand in Tanzania.

Citing is native country Nigeria as an example, he put it succinctly:

In an obvious appeal to Nigerians in

Reginald Mengi

Every year since 2000, the newspaper has gathered nominations from readers for government officials and business leaders who exemplify accountability, transparency and abidance by the rule of law. Recent THISDAY award winners have included Bukola Saraki, a governor who invited persecuted Zimbabwean farmers to resettle in Nigeria, and Nuhu Ribadu, head of the Economic and Financial Crimes commission.

formulated and spearheaded solutions to Africa’s many challenges.

With the largest population in Africa (146 million), an adult literacy rate of nearly 70 per cent and the 10th largest oil reserves in the world, Nigeria should by rights be an economic powerhouse. But after colonialism, nearly three decades of military autocracy and the looting of public funds to the order of US$380 billion, Nigeria was beset by the problems facing too many Africans – a paucity of employment and healthcare, tragically short life expectancy (47) and high infant mortality rate. Yet Nigeria has, in the last decade, achieved what many would have considered the impossible. In 1999 voters chose their first democratically elected leader since 1983, President Olusegun Obasanjo. In short order, the Nigerian government instituted sweeping economic reforms and inaugurated the Economic and Financial Crimes Commission, which went on to secure over 200 convictions for corruption, some against senators and a former chief of police.

has been tipped by some to be the first African head of the World Bank.

Donald Kaberuka is a Rwandan economist and the current president of the African Development Bank. He was educated at universities in Tanzania and the United Kingdom where he received a PhD degree in economics from the University of Glasgow He worked in banking and international trade for over a decade among them are London investment houses Morgan, Grenfell & Co and Rayner International. In October 1997 he was appointed minister of finance and economic planning in Rwanda. Kaberuka is credited with helping to stabilize the Rwandan economy from the effects of genocidal conflicts.

Kaberuka leads an institution whose financial standing has been restored from the near collapse of 1995. He

Mengi’s IPP Group started as a small scale hand-operated ball point assembly plant in Dar es Salaam, and has expanded and diversified to become one of the largest industrial groups in East Africa. IPP other activities include a Financial Consulting firm (IPP Consulting), a soft drink bottling company in a joint venture with Coca-Cola, Tanzania’s leading manufacturer of soaps, detergents, and toothpaste (IPP Bodycare Ltd), as well as a media unit made up of eleven newspapers, three radio stations, and two television channels, one of which operates in each of Tanzania, Kenya and Uganda (IPP Media).

Reginald is a member of the board of management of the Commonwealth Business Council and a strong promoter of good business governance in Africa.

He has been a long-time advocate of promoting good governance in Africa as well as enhancing technical and managerial skills in the private sector, as key mechanisms for improving the business environment and attracting foreign direct investment to the continent. He has also called on the African press not to follow the international media’s inclination to portray only the negative aspects and constraints of doing business in Africa, since these only reinforce certain stereotypes, overshadow the business opportunities that exist in the continent, and have a detrimental effect on potential foreign investors.

New Business Africa 19

AFRICA’S RENAISSANCE

Gordon and Gloria Wavamunno Founder of the Spear Group and fashion designer (Uganda)

Ndidi Nwuneli is the Nigerian founder and managing partner of LEAP Africa, a leadership training and coaching organization which is committed to empowering, inspiring and equipping a new cadre of leaders in Africa.

Thomas Kagiso Mmusi Chairman of Pula Holdings Group (Botswana)

Following her early years as a management consultant with McKinsey & Company, Ndidi returned to Nigeria to launch LEAP Africa, and NIA in 2002 and 2003 respectively.

NIA empowers female university students to achieve their highest potential in life, while LEAP Africa provides leadership, ethics and management training and coaching for youth, business owners, social entrepreneurs and the public sector.

Mr. Wavamunno is one of Africa’s best known entrepreneurs who has built a massive business empire in fields that include transport, manufacturing, tourism, insurance and banking, farming and the media.

In 2003 Ndidi was recognized as a Global Leader of Tomorrow and Young Global Leader by the World Economic Forum in Davos, Switzerland. She has also received a National Honour, Member of the Federal Republic of Nigeria and an Excellence Award from the Africa Business Club at Harvard Business School in 2007. Ndidi says of her community;

“Everyday I step out of my door and I am confronted with the poverty and decadence in my community, I am more compelled and more inspired to take on the challenges associated with LEAP’s work in Nigeria. The most fulfilling part of His daughter Gloria Wavamunno is making her name in the world of fashion, showcasing my work is seeing changes take place in the attitudes, character, behaviour and her works at Africa Fashion Week- South actions of our participants. Sometimes this Africa, London Fashion Week and Africa transformation is quick, but more often it is Fashion Week New York. Her collection slow, but enduring. In 20 years, I hope to included bold statements on white T-shirts live in a middle-income and truly democratic campaigning for trade and against aid. country. One in which the masses of people

Ndidi Nwuneli

Founder of LEAP Africa (Nigeria)

Jon Gosier

Serial IT Entrepreneur (Uganda)

a) enjoy the basic amenities, b) live in a clean, secure and peaceful environment c) believe that they can achieve their highest potential, while upholding high ethical and moral values...”

For latest news on investment opportunities www.newbusinessafrica.com

20 New Business Africa

Kagiso is the Executive Chairman of Botswana-based Pula Holdings Group, a diversified company with assets of more than $20 million. Mr. Mmusi went from operating a single petrol station to building Pula Holdings which now has more than 20 subsidiaries and its portfolio includes business operations in distribution of LPG for domestic and industrial usages, trading, media, financial services and an extensive real estate.

Jon D. Gosier is a designer, software developer, blogger, investor, and entrepreneur. He currently serves as Director of Product for SwiftRiver at Ushahidi, on a platform for making sense of streams of

AFRICA’S RENAISSANCE realtime data. He founded the East-African incubator and blog Appfrica, a software consultancy in Uganda that mentors, incubates and invests in East African tech talent. He has acted as CTO of QuestionBox, a service that allowed people with no access to the Internet to ask questions and get timely, vetted answers. He been described as an “African technology guru”

Magatte Wade-Marchand

Serial entrepreneur (Senegal)

Herman Mashaba

Cosmetics Entrepreneur/ CEO Lephatsi Investments (South Africa)

His blog Appfrica.net was one of the widest-read blogs about the emerging African technology sector, and one of the most trafficked blogs on the continent

Moky Makura

Publisher of Nollybooks (Nigeria)

Magatte Wade-Marchand came up with the idea to found a beverage company Adina when she visited her native Senegal and found that Western drinks had replaced traditional hibiscus drinks. Adina World Beverages is to a multi-million dollar Drinks Company that sells a variety of beverages based on drinks from around the world in 14 fluid ounce bottles.

Moky Makura was born in Nigeria, but now lives in Johannesburg, South Africa.

She is a TV presenter and writer.

From 2001 to 2006, Moky Makura was the African Anchor presenter and field reporter for South Africa’s award winning news and actuality show Carte Blanche. She has presented numerous field reports on the Nigerian Film industry; Zimbabwean farmers in Kwara State, People trafficking in Edo State, Child soldiers in the DRC and Democracy in Zimbabwe. In 2004, Moky presented an hour long interview format show called African Pioneers which was syndicated to commercial stations in Nigeria, Tanzania, Zambia and Malawi.

She recently completed a book; ‘Africa’s Greatest Entrepreneurs’ which features the success stories of the top entrepreneurs on the continent. As part of her passion to present a positive image of Africa and showcase its heroes and achievements, she has started a website where visitors can contribute to creating a repository of all the positive aspects about Africa.

Adina is partnered with several organizations that share their goals, including Agribusiness in Sustainable Natural African Plant Products (ASNAPP), which works to reduce poverty in Africa; Association Education Santé (AES), which works to help hibiscus farmers in the global market; the ECO-AGRI Research Foundation, a non-profit organization centered in India seeking to improve the lives of rural farmers; as well as other co-ops and financers in third-world countries.

Mr. Mashaba started his business career by selling goods from his car boot. In 1985 he launched his hair products company “Black Like Me.” Twelve years later he sold it to Colgate Palmolive and then bought it back in 1999. In 2001 he launched his products in the United Kingdom and then resigned as chief executive in 2004, but remained a major shareholder. He has invested in aviation, IT, security, real estate, mining and construction. Herman leads black economic empowerment initiatives for cosmetic industry in South Africa.

By Paul Watton

Subscribe to New Business Africa Magazine www.newbusinessafrica.com New Business Africa 21

LONDON 2012 PHOTO PANORAMA OF AFRICAN CHAMPIONS

With just weeks to go before the curtain rises on the Olympics, we wrap up our list of the leading African Champions who may climb the podium. At the game itself, there are 24 men’s events and 23 women’s events - women do not compete in a 50km walk - and the target number of athletes for the Games is 2,000. Nations are able to enter up to three athletes per event provided they have achieved the A standard and one athlete per event if they have achieved the B standard.

Nigerian Dream Team

Jelimo bounces back Unstoppable South with Kenyan record African Semenya

The Nigerian Team for London 2012 includes some of the best sprinters in the country. Ogho-Oghene Eqwero and Peter Emelieze have proven to be the country’s top sprinters in the men’s 100m. Amaechi Morton goes in the 400m hurdles while Tosin Oke aims to make his mark in the Triple Jump. Blessing Okagbare made the grade in the 100m and 200m sprint double as well as the long jump where she won a bronze medal in 2008.

Kenya’s reigning Olympic 800m champion, Pamela Jelimo, put three years of pain behind her to return to elite class with a commanding performance to win the World 800m gold medal with a Kenyan record of 1.58.83, the fastest time in the world so far this year. The 22-year-old Beijing 2008 champion is the one to watch.

Another hopeful is Oludamola Osayomi, who can also double up in the sprints. She could be a threat to the best if she can recapture the form she showed in the AllAfrican Games in Maputo. Doreen Amata in the high jump is the final athlete so far to make the ‘A’ standard.

“For me, I am happy,” said Jelimo after the race.

“These last three years, with my injury, were a disaster for me. Injuries have a great impact on top athletes. But I did not give up and my coach motivated me a lot. It feels great to be a world champion; it is great to be at the top again.”

South African 800m star Caster Semenya, and a gold and silver medallist over 800m at the last two world championships. Semenya said she was pleased with her early build-up to the London Games in July.

Great Britain sprinter Jeanette Kwakye

The 100m & 200m sprinter Jeanette, born to Ghanaian parents, will be one of Europe’s biggest female sprint hope at the Olympics this summer. She started her athletics career at the age of 15, landing her first national title at the 1997 English Schools’ Championships.

She went on to study politics and economics at Loughborough University, amassing several national and international medals during this period. In 2007 she became the British 100m champion, a title she defended in 2008. Jeanette is currently the fastest woman in British sprint athletics.

South African Mulaudzi eyeing Olympic gold

Kenyan long-distance ace Vivian Cheruiyot

Charismatic South African Oscar Pistorius

Having come off a superb season in 2009, in which he set a 1:42.86 career best in Rieti and won the world title in Berlin, Mulaudzi hopes to bounce back at the London Games in July.

Vivian Jepkemoi Cheruiyot specialises in long distance running. She represented Kenya at the 2000 Summer Olympics and the 2008 Summer Olympics. Cheruiyot won a silver medal in the 5000 metres at the 2007 World Championships in Athletics and became the world champion in the event at the 2009 edition.

Oscar Leonard Carl Pistorius is a South African sprint runner. Known as the “Blade Runner” and “the fastest man on no legs,” Pistorius is a double amputee who had to go to court to be eligible to run against able-bodied. Oscar reached the 400 metres semi-finals at last summer’s World Championships and won silver as part of the relay team. Oscar is the world record holder in the 100, 200 and 400 metres (sport class T44) events and runs with the aid of Cheetah Flex-Foot carbon fibre transtibial artificial limbs.

The silver medallist at the Athens Games in 2004, the veteran middle-distance star failed to reach the final in Beijing four years ago, but expects to be at his best form in the English capital. “The most important thing this season is to try and get on the podium in London.” “…I am truly honoured to be part of an event which represents my culture and my people again. GUBA highlights the achievements of the growing number of successful Ghanaians in the UK and it is indeed a pleasure to be recognised by the committee.” said the 29- year-old track star.

After taking a silver at the 2010 IAAF World Indoor Championships, she won a number of outdoor titles that year, becoming African champion, Commonwealth Games champion and IAAF Continental Cup champion, as well as winning the 2010 IAAF Diamond League title. She holds the Kenyan record and Commonwealth record for the 5000 m with her best time of 14:20.89, which was set at the DN Galan in 2011. Vivian is the star to watch.

COUNTRY FOCUS

MANAGEMENT OF SMALL SCALE INDUSTRIES ON YOUR BEHALF

E-MAIL: goldtracks2001@yahoo.com TELEPHONE: +2347033070527 +2348028159175 +234 (08) 99860770 24 New Business Africa

COUNTRY FOCUS

Overview of Investment Opportunities in Nigeria Nigeria’s local sugar suppliers cannot meet the demand for the commodity. The government has imposed tariffs on imported white sugar and levies on imported raw sugar to guarantee a ready market for potential sugar processing investors.

Oyo State The Oyo state government is looking for investors to set up cable and wire manufacturing plants. Expanded production will particularly benefit the rural electrification program in Nigeria.

Plateau State Proposed film facilities could be Africa’s production mecca. The Plateau State Government is seeking investors to develop a Film City, which will host production studios, tourist hotels, shopping malls, and upmarket residential estates.

Cross River State

Minister of Trade and Investment, Mr. Olusegun Aganga

Lagos State With more than 100 km of coastline, Lagos waterways are part of the solution to the city’s heavy traffic jams. Investors have the opportunity to get involved in the development and operation of water transport services.

Harvest and process aquatic plants in Lagos State. Investors have the opportunity to get involved in the harvesting and processing of water hyacinth in Lagos State.

Bauchi State seeks investors for recreation facility Bauchi state, commonly referred to as a Nigeria’s ‘pearl of tourism’, has a wealth of tourism sites that are very popular. The state administration is seeking investment for a proposed recreation centre in Bauchi City.

Sugar production: sweet deal for investors

Nigeria aims to be self-sufficient in cement production and is encouraging local and foreign investors to establish more plants.

Cross River state has the required raw materials for cement plants and is open for investment.

Anambra State seeks investor for mixed-use development The state government is seeking investors for a mixed-use development project under a Public Private Partnership arrangement.

The project is aimed at boosting the state’s tourism and industry sectors.

Kwara State

Truck terminal planned for Ilorin A large number of trucks and buses that travel between the north and south of Nigeria pass through Kwara State. The State Government is looking to partner with investors for the construction of a truck terminal near the Ilorin International Airport.

Investors with sound transport credentials have the opportunity to operate a bus transport service in Kwara State.

New Business Africa 25

COUNTRY FOCUS

THE GIANT OF AFRICA STRIDES OUT, NIGERIA HAS WHAT INVESTORS WANT

You could never have predicted that Nigeria would be recognized as the fastest growing economy in West Africa. A decade ago, Nigeria was only just finding its feet. Freed from years of Military rape and devastation after the successful transition to democratic rule in 1999, the country whipped into overdrive in response to the call to liberalise its economy. Something drastic had to be done to increase investment and put the nation on the market map. The first eight years of civilian rule was a stellar period for the Nigerian economy.

Today Nigeria is one of Africa’s leading investment locations, and has been so for years. Companies that have already invested in Nigeria see it as a country that offers educated workforce, stable and low labour costs and the largest domestic market on the African market.

The Nigerian government has taken extra steps to ensure that international businesses find Nigeria to be a place that is favourable for long-term investments.

Since March 2006 the government has established the Nigerian Investment Promotion Commission (NIPC) as a one-stop shop for investors in order to serve investors who are new to Nigeria and also for Nigerians who want to start up business. This saves investors the troubles of the old bureaucratic bottle-neck by allowing them to deal with one agency for all their licenses, permits and other requirements.

The BB – foreign credit ratings that the country obtained from Fitch Ratings and Standard & Poor’s rating services mean that Nigeria has embraced global best practices and are credit-worthy on a par with countries like Turkey.

High ethical standards are established together with active anti-corruption measures, which now make it increasingly difficult to secure orders and contracts through bribery and fraud. But handsome profits are being earned

26 New Business Africa

by organizations with integrity that are prepared to make long-term commitment to Nigeria.

Tax holidays are enjoyed by companies with “pioneer” status, while a range of other tax incentives depend on whether the industry is marked for development, location or other reasons. In addition, there are allowances for capital investments and tax-free loans.

Companies that export more than 60 percent of their production get a 10 percent reduction.

Also, there are tax relieves for firms that carry out training, while organizations that conduct their research and development in Nigeria can claim a generous 120 percent of their expenses.

Today one of the biggest investors in Nigeria is China, particularly the Chinese National Offshore Oil Corp which invested $2.3 billion in 2006 for a stake in Nigeria’s Akpo oil and gas field. The British government through the United Nations Children’s Fund (UNICEF) invested £25 million in the development of children’s education, particularly at the primary school level in the 16 northern states of the country.

But Nigeria is also inviting investors to develop its electricity generating capacity, and oil resources in areas other than Delta. No doubt, the country major success story is telecoms. The amount of inward investment the telecom sector soared from $50 million in 1999 to over $10 billion by December 2005 and has since tripled in 2011.

Another growing sector, in terms of investment, is agriculture. It currently accounts for 7 percent of the GDB and it is hope to be upgraded to 10 percent. If this happens, it would put agriculture almost on the same par with the oil sector. The country hopes to see more investment in manufacturing sector.

In the coming years, Nigeria plans to continue to focus on attracting investors to oil and gas, tourism, solid minerals exploration,

COUNTRY FOCUS manufacturing, agriculture, telecoms and financial services as well as education and health sectors.

But, much unlike in the past, a substantial part of manufactured goods consumed in Nigeria are locally made rather than imported.

The key reasons why investors come to Nigeria are basically the size of the population, which provides ready market.

Secondly, Nigeria has very good prospects: Goldman Sachs outlined a scenario in which Nigeria grows to become the World’s twelfth largest economy by 2050. And this speaks volumes. Nigeria of today is flexible and open to suggestions from investors in terms of how to improve its services.

President Goodluck Jonathan and President Barack Obama USA

New Business Africa 27

COUNTRY FOCUS

Nigeria is really the best place to invest. It is the best kept secret actually in terms of investment With an estimated current net worth of around US$ 13.8 billion, according to Forbes magazine, he is clearly the richest person of African descent in the world, surpassing Mohammed Al Amoudi ($12.3 billion) and Oprah Winfrey ($2.7 billion.)

Aliko Dangote born on April 10, 1957 is the ‘golden child’ of Nigerian business circles. The Dangote consortium spans across many sectors of the Nigerian economy. The Dangote Group provides cements, sugar, salt, flour, rice, spaghettis, textile etc. at competitive prices. As a commodity merchant and serial entrepreneur his products are in most homes across the country. His group of companies known as Dangote Group is into export, import, manufacturing, real estate and philanthropy.

This nonpartisan detribalized Nigerian billionaire provides

employment to both elite graduates as well as young school leavers from different ethnic and social backgrounds. This is commendable, in terms of reducing the level of crime by offering youths employment in the area of transportation, packaging, security amongst others.

Business activities This broad-minded unassuming billionaire industrialist sits atop Africa’s largest conglomerates called Dangote Group which is involved in diverse forms of manufacturing with high turnover.

Dangote textile and the Nigeria Textiles Mills Plc, which it acquired, produce over 120,000 meters of finished textiles daily. The group has a ginnery in Kankawa, Katsina State with a capacity of 30,000 MT of seeded cotton annually. The sugar refinery at Apapa port, Lagos is the largest in Africa and in size the third largest in the world with an annual capacity of 700,000 tonnes of refined sugar. It also has another 100,000 tonne-capacity sugar mill at Hadeja in Jigawa State.

Apart from having substantial investment in the National Salt Company of Nigeria at Ota, Ogun State, the group has salt factories at Apapa and Calabar, a polypropylene bagging factory which produces required bags for its products, over 600 trailers for efficient distribution network and goods meant for export can also efficiently be transported to the ports.

A vehicle leasing unit with over 100 fully air-conditioned commuter buses is also part of the Dangote Group. It is also into real estate with luxury flats and high rise complexes in Ikoyi, Victoria Island, Abuja and Kano. Dangote Foundation is the philanthropic arm of the group where yearly he spends millions for worthy causes such as contributions to educational and healthcare institutions, sinking of boreholes and giving of scholarships. The Dangote Group has nationwide staff strength of 12,000 but on completion of on-going projects, it is expected to hit 22,000.

The total capitalization of the Dangote Group on the floor of the Nigerian Stock Exchange accounts for over 42% of the market capitalization (as at the time of going to the press), thereby making him the biggest individual player on the exchange.

Dangote states unambiguously:

“If you give me today $5 billion, I will not invest any abroad; I will invest everything here in Nigeria. Let us put heads together and work.”

28 New Business Africa

COUNTRY FOCUS

Beginning

Purpose

With an initial loan of N500,000 (approximately $3,500 today) from his uncle in 1977 to start his own business, Aliko Dangote was also given a deadline of three years to repay the loan but he repaid the loan in three months.

Another lesson we picked from Aliko Dangote is the power of a life purpose. Aliko said in an interview he granted:

Aliko Dangote started business by trading in commodities such as sugar, rice, salt, pasta, cotton, millet, vegetable oil, cocoa and textile. One of Aliko’s business strategies for succeeding in the commodity market was to develop a strong distribution network and make the delivery of his goods faster than that of his competitors. After gaining a strong hold on the commodities market, Aliko Dangote ventured into manufacturing and producing the same commodities he was importing. He confirmed this in an interview that leaping from importation to manufacturing was his greatest business move.

Dangote Group controls over 13 other companies with most of them acquired through strategic mergers and acquisitions.

In celebration of his 50th birthday anniversary in 2007, he commissioned a one billion dollar factory (Obajana Cement Factory), which happens to be the largest cement factory in Africa.

Recently, he boosted his philanthropic activities with the launch of his foundation, Dangote Foundation.

“After my death, I want to be remembered as Africa’s greatest industrialist.” – Dangote

Strategy Dangote developed a strategic plan that will set him apart from his competitors. The first strategy he implemented was to create a strong brand “Dangote Group;” a brand that signifies quality. The second was to develop a strong distribution network throughout the country, which in turn resulted in his ability to deliver his goods faster than his competitors. The third strategy was to sell his products nationwide at uniform price.

Persistence For 30years, he was committed and persistent to the entrepreneurial process of building a formidable business. Nothing happens overnight, success requires hard work and persistence.a

Dangote is respected in the business circle for his ability to buy and revive moribund companies. He is also known for his strong belief in Nigeria and he proved it by investing 100% in Nigeria. According to him:

“Nigeria is the best place to invest your money.”

The managerial skill of this man must surely be the envy of economic professors. Instead of stashing his funds in foreign accounts, a common practice of some of his fellow citizens, Dangote invests wisely in the productive sector of the Nigerian economy. And his monopoly over some of the commodities in the Nigerian market is undeniable. Recently he and other notable Nigerians announced their desire to float a private sector mega company with the name Transnational Corporation of Nigeria (TCN), which amongst other things may acquire government-owned refinery, operate strategic stateowned companies and pioneer status in Agriculture and IT. New Business Africa gleans out business lessons to be learnt from entrepreneurial principles of Aliko Dangote.

Determination and Passion Aliko says “Passion is what drives me forward. Passion is what makes me go to bed at 2am and wake up at 6 am.”

Without passion, forget about building a business.

The power of a strong mission

Aliko Dangote was able to become a billionaire because he has a very simple, yet a very strong mission statement and that is; “To provide the basic needs of over 150 million Nigerians“

Aliko Dangote was able to become a billionaire because he has a simple, yet a very strong mission statement “... to provide the basic needs of over 150 million Nigerians“

New Business Africa 29

COUNTRY FOCUS

NIGERIAN BANKS READYFOR CASHLESS SOCIETY The Central Bank of Nigeria CBN has introduced a policy of cashless society, essentially to reduce crime rate in the society and because the cost of printing Naira by the CBN is high, and partly because Nigerian currency is very dirty compare to other developed world.

The Chartered Institute of Bankers of Nigeria (CIBN) however, has called on the Central Bank of Nigeria (CBN) to intensify the public sensitisation campaign on its cashless policy.

The banks believe that more needed to be done in the area of mass enlightenment as many Nigerians were yet to be adequately informed about the initiative.

“You need to let them (people) know the implications of their actions because out of ignorance, some of them will still come forward and make withdrawals of more than N150, 000” the CIBN officials say

The organisation added: “If there are genuine activities in the banks, (they hope that) it will translate into growth for the economy and everyone will benefit immensely from it, if Nigerians allow the policy to work the way it has been envisaged by the Central Bank of Nigeria.” Nigerian banks say they are prepared in terms of infrastructure to commence implementation of the policy.

A top Nigerian bank official says “The banks are well prepared for it. We have the infrastructure in place, we have the capability we also have the capacity.

“The challenge we envisage is that of knowledge gap because of the short time between when the policy was introduced and when the policy is supposed to take effect.

The bankers urge Nigerians to embrace the policy, saying the long term benefits would positively impact on the economy in spite of the present challenges.

Meanwhile, mixed reactions have continued to greet the cashless policy, with Nigerians stressing the importance of putting in place efficient and reliable electronic payment channels, and curbing cyber crimes.

With this policy in place, the bankers believe, that citizens don’t need to travel with cash; if robbers know that people are not going to carry cash, their activities will be limited.

Nigerians fear also that some ignorant traders may start keeping huge amounts of money at home or farms rather than in banks for quick access to raw cash and this may attract armed robbery.

Majority of people will use cards to transact their businesses and that will also allow business transactions to be faster than before while allowing the banking system to do real banking because they will have the opportunity of dealing more with the customers than before.

Generally, Nigerians say it is a welcome development as it eliminates the risks involved in dealing with bulk cash and reduces the dangers of counterfeiting, which is associated with cash business.

30 New Business Africa

Mainstreet Bank Limited (MBL) Regroup, Resilient and Reliable With over 200 branches across the country and strong partnership with some of the world’s biggest Money Transfer brands, MAINSTREET BANK with its team of operators are working tirelessly more than ever before to meet their clients’ foreign and local currencies demands. Their wealth of experience in International Money Transfer services is also giving them the edge in the market.

Similarly, the Mainstreet’s Finance Facility helps clients lift the heavy burden of importers’ cash flow, while freeing their working capital to invest in growing their businesses.

The bespoke Import Finance Facility is designed to serve the Nigerian market by enabling clients to draw up on their expertise and specialist support to sustain customers’ cash flow. With Mainstreet bank customers also benefit from the bank’s Cashlite Solutions Mainstreet Bank Limited (MBL), also referred to as Mainstreet Bank, is a commercial bank and a large financial services provider in Nigeria. It was formed in August 2011 by taking over the assets and some of the liablities of the now defunct Afribank Plc. MBL delivers world class products to its esteemed customers

MainStreet Bank 94, Broad Street, Lagos, Nigeria Postal Address P.M.B. 12621, Lagos Telephone: (234) 01 2641566,2645132 Fax No: (234) 01 2666327,2664890 Website: mainstreetbanklimited.com Email info@afribank.net

COAVIATION

Adebayo Ogunlesi (Nigeria) Chairman Global Infrastructure Partners

Meet the Nigerian Finance Guru that bought Gatwick Airport London Adebayo Ogunlesi is a Nigerian businessman with a formidable resume. He is a graduate of Harvard Law School, Harvard Business School and Oxford University.

Ogunlesi has been a lecturer at Harvard Law School and the Yale School of Organization and Management, where he taught a course on transnational investment projects in emerging countries. Ogunlesi was once in charge of Global Investment Banking at Credit Suisse First Boston (CSFB) in New York. He is currently Chairman and Managing Partner of Global Infrastructure Partners (GIP), a $5.64 billion joint venture formed by Credit Suisse and General Electric.

Under his chairmanship, GIP acquired the London Gatwick Airport in a deal worth £1.455 billion and subsequently bought Edingburgh Airport at £800 million.

A standing ovation at his first staff meeting at CSFB in February 2002 did not deter Ogunlesi from delivering a sobering message.

He would have to “break some glass” to control spiraling costs.

Within weeks CSFB laid off 300 bankers, or 14% of Ogunlesi’s division. The survivors with guaranteed contracts were asked by Ogunlesi to accept pay cuts. He pushed the bankers out of limousines and required them to hail taxis. And he freed 12 top revenue producers of daily management responsibilities so they could spend more time generating business.

Ogunlesi, whose father was the first Nigerian-born medical professor, was once a clerk of the US Supreme Court Justice Thurgood Marshall--who, unable to pronounce his name, dubbed him “Obeedoogee.” He has lived in New York City for over 20 years and traveling to emerging markets. Ogunlesi is active in volunteer work, and also cultivates his ties to Africa. He informally advises the Nigerian government on privatization. Adebayo’s opinion is well respected in International Financial Services.

New Business Africa 33

Designed

toInspire Seni Oguntoyinbo

Cadwell Executive director & COO Cadwell Director

Muyiwa Owoturo Cadwell Director

Cadwells’ Directors, Olaseni Oguntoyinbo and Olumuyiwa Owoturo explain the unique appeal of their homes in Nigeria, West Africa.

An exclusive development of properties, with architectural significance providing large scale accommodation. Each has been styled with meticulous attention to detail and constructed to the very highest of standards using quality materials and traditional craftsmanship, incorporating a specification synonymous with the marquee.

Every Cadwell residence has its own distinctive appearance, seamlessly blending classic style with contemporary features both inside and out. The Company is very proud of its products and has worked hard to build a reputation for creating spacious, light and dazzling homes that have been designed to the highest specifications with outstanding attention to detail. The maximization of daylight and space are key design themes throughout all their homes.

You notice this as you approach each of Cadwell’s building, with an infinity view right through the house.

Enter through any of their usually imposing entrance and you will discover breathtaking massive interior which stretches the height of the ground and you will appreciate how naturally their buildings flow.

Olaseni Oguntoyinbo, Cadwell’s Executive Director and Chief Operating Officer, an alumnus of North Middlesex University, London and West Los Angeles College in California, comments: “Our focus is on property development, marketing and sale of real estate products and services with special skills in facility maintenance. We specialize in developing innovative and unparalleled luxury apartments, residences, homes and commercial outlets to serve our growing high-end clientele.” Olaseni, an avid antique collector, concludes “we finish very well because we get involved personally.”

Cadwell Limited, an independent real estate company located in Lagos suburb of Nigeria, West Africa, was incorporated in October 2001 as a wholly indigenous real estate firm, has over the years built a strong

34 New Business Africa

reputation for providing some of the best real estate in Nigeria.

One visit to Cadwell’s CESCA MANOR, a stunning archetypal built home, situated in a gated landscaped setting, with substantial living space and fine views, you are immediately struck by the contemporary living experienced by the company’s esteemed clients with its multifunctional spaces, best-in-class interior decoration found throughout the residence. Ascend the sweeping staircase incorporating glass and ornamental wood, to the open first floor gallery where you are greeted by the opulent master bedroom suite, complete with fabulous walk in dressing room and luxurious bathroom in the apartment. You will understand why this Company is known as the grand master of the ART in the development of Luxury living.

THINKING, BEYOND THE PRESENT

Cadwell’s Director Olumuyiwa Owoturo continues where the Chief Operating Officer stops: “We have till date embarked on numerous luxury lifestyle projects and have an impressive property portfolio all of which are located in Ikoyi and Victoria Island, Lagos, Nigeria.

We understand the business of luxury and believe that while maximizing return on investment, we do not encourage the overcrowding of space in order to stick to our tradition of an exclusive premium brand.” As a trailblazer in real estate industry, Olumuyiwa stated that “Cadwell occupies a market space where our clients are our only competitors which is why we have remained undoubtedly committed to fulfilling our client expectations. We are constantly innovating new ways we can offer various investment options to our clients, we think for the long term.”

In all Cadwell’s buildings, each home offers a stunning galleried entrance hall with remarkable space and benefit from impressive leather, glass or walnut staircase and at least two elevators giving access to the floors above. A unique attribute and feature which is in keeping with the reputation of a Cadwell home, is its renowned creation of space and light.

Its features large windows and several roof lanterns, ensure that the maximum of light is enjoyed throughout. Also noted are the vast use of natural stones and brick cladding to adorn all their buildings together with crushed marble balustrades.

Inside all the homes are generous bedrooms – all en-suite featuring fulllength glazed windows, Porcelanosa sanitary ware, and a fabulous walk in dressing room where the sense of quality

and luxury enwrap you. No expense is spared by Cadwell when designing their stunning homes, with thoughtfullydesigned luxury fitted kitchens with an extensive range of Bosch appliances.

They offer a truly indulgent lifestyle that would not fail to impress from the moment you step through the door.

Outside Cadwell’s homes are delightful landscaped gardens set in a private gated development providing a safe and peaceful community to live in. All their homes have fantastic links to Marina and Broad Street in central Lagos. Cadwell’s projects have all been a huge success.

Olumuyiwa Owoturo shares the secret of this success and the Company’s operating philosophy: “Over the years we have learnt to know what we believe and to believe what we know. We are thankful for the rare freedom to do the things that we do and feel obligated never to rest on our past success but to remain challenged by the higher standards we have imposed on ourselves.

Our total devotion to extreme elegant lifestyles for our clients motivates us to seek new ways in which to fulfill their dreams, thus making us pioneers in our industry. We are therefore committed to creating hospitality and products that reflect individual taste and passion. We derive special satisfaction from seeing our dreams, ideas and hard work become reality. This is why we have firmly decided to always “FINISH WELL”.

New Business Africa 35

thinking about building your

dream home?

Turn that dream home into reality through the bespoke SPHERE, the ultimate exclusive luxury homes and apartments The grand master of the ART of Luxury homes, apartments and lifestyle, Cadwell has once again developed a master piece that will add charming colours to one of the most sought after streets in Victoria Island, Kofo Abayomi Street, Lagos.

Cadwell’s latest development that is uniquely named Sphere, is an elegant residential development on several floors with a unique shape; it is fashioned in a contemporary style that comfortably complements the lifestyle of the upwardly mobile executive and family.

If

you desire true lush living or a high yield with moderate risk investment, the Sphere is a veritable avenue to satisfy the craving as it is well placed in the serene side of Victoria Island, Nigeria’s most prestigious district to live and work.

This ingenuous architectural master piece combines safety, services and functionality with state-of- the- art finishes equally backed with distinct facilities like none other worldwide.

These magnificent apartments provide everything one would expect from a luxury home; spacious and flexible living accommodation arranged over two floors.

Sphere is mainly 3-bedroom apartments and 4 bedroom penthouses on 2 levels with attached TV rooms, Maid rooms and garage size storage rooms. The block comes with standard features such as spacious living areas, extra-large windows, and high ceilings, luxurious all-ensuite bedrooms with exceptional fixtures and fully fitted kitchens with Bosch appliances. Also there is the never-seen before ‘leisure level’ where the inspiring experience is at its best with the use of residents’ only gym, salon, massage rooms, en-suite office, board room, meet and greet lounge. Other basic facilities such as the swimming pool, facility management, 24 hour power and water treatment plant. However, it is no doubt finishing touches such as the outstanding security system with sophisticated alarm and manned security with CCTV cameras which truly sets these homes apart.

An attraction is its payment terms of Minimum deposit 20% - 25% as sign-on commitment fee and the balance in 10 Equal quarterly Installments to span through-out the construction to completion period - estimated at 33 months

36 New Business Africa

Now is the time to buy, and it is best to invest where there are over 18million people (Lagos–Nigeria) with a population growth of 6%.

Investment thrives where there are people. Cadwell’s reputation speaks for itself, the company has over a decade demonstrated unbeatable record for producing and maintaining the finest real assets in Nigeria. Buying a property off plan at the Sphere offers unique benefits of decent capital appreciation, short pay-back period and guaranteed annuity income from Cadwell solid clientele base.

The Sphere will add to Cadwell’s legacy of building luxury residential developments in the High brow areas. The scheme is a perfect combination of homes suitable for any purchaser and in such a prime location.

For a rare opportunity to acquire an exceptional apartment, incorporating contemporary living accommodation and featuring an extremely high specification from a niche developer of prestigious homes like Cadwell,

Cadwell Limited 45, Saka Tinubu Street, Victoria Island, Lagos Tel: +234 1 2705262, 2702263 Mobile: +234 704 5115562, +234 704 5115564 E-mail:info@cadwellltd.com Website: www.cadwellltd.com www.facebook.com/CadwellLimited Twitter: follow @CadwellLimited

Westfoster harbour number one choice for visitors to Nigeria

The epitome of exclusivity, this mansion is full of innovative design features. This bespoke luxury dwelling with a panoramic view of the lagoon is a truly magnificent place to lodge in. With its stunning architecture, stylish accommodation and thoughtful innovation, Westfoster Harbour, as said, is an elegant waterfront residences catering to the sophisticated individual and corporate clientele with a passion for unique home away from home feel.

WORLD CLASS SERVICE

You are provided with a glorious welcome by warm and friendly staff as you step into the foyer which extends upwards over three stories, completed by a vast lantern lightening which allows light to flood the abode.

Westfoster Harbour is a home away from home, defined by sophisticated style and sumptuous furnishings but equipped with impeccable service delivered by the Harbours’ friendly staff.

You will find out that the suites in this mansion are designed to encompass the vagaries of day-to-day living in the 21st Century; they are not the normal collection of rooms merely strung together. It’s variety of suites are reminiscent of the neoclassical era with regally decorated parquet floors, high ceilings, deluxe bathroom, kitchenette with additional staff accommodation.

WestFoster Harbours’ appeal reaches far beyond the business world. Its lavish residences amenities make it an ideal choice in lodging for both short and long leisure and business guests visiting the area. With facilities that include Pool, Pool Bar, Gym, Restaurant, Bar, Laundry, Conference and board room and 24 hour security.

Beyond this, all guests are respected as confidential.

New Business Africa 37

PRIME LOCATION Westfoster Harbour is located overlooking Five Cowry Creek in the prestigious residential neighborhood of SouthEast Ikoyi on Lagos Island close to the bustling business districts of Victoria Island and Central Lagos with their many attractions such as shopping, entertainment and sports.

The Harbour is situated 22km (approximately) from Murtala Muhammed International Airport and just 2km away from the nearest helipad, which is located just across the creek on Victoria Island. Guests may choose to be transported from the airport by helicopter and also brought by boat directly to their exclusive jetty at the Harbour. The Harbour is also just minutes away from the Lagos Polo Club and an 18-hole golf course at the renowned Ikoyi Club.

The Westfoster Harbour provides its guests with a first class service that culminates in the most relaxing guest experience possible anywhere in the world.

To discover your own heavenly retreat, in the peaceful exclusive area of Lagos Island, yet a stone throw from the city, Please contact:

WestFoster Harbour 70, Queen Drive Ikoyi, Lagos Tel: +234 1 4484100-3, +234 704 4404671, 7045115562 E-mail: enquiries@westfosterharbour.com reservations@westfosterharbour.com Website: www.westfosterharbour.com 38 New Business Africa

Ronald Chagoury Executive Chairman Eko Atlantic

Eko Atlantic City The New Gateway To Africa in The 21st Century A Postmodern Metropolis of Lagos, Nigeria designed for sustainable living, visiting, commerce, business as well as protecting the natural coastline from erosion The new of Eko Atlantic will be a new home to 250,000 people and the workplace of another 150,000. The nine square kilometre development will have waterfront areas, tree-lined streets, efficient transport systems and mixed-use plots that combine residential areas with leisure facilities, offices and shops.

This impressive and elegant city once described by Wole Soyinka, Nobel prize for literature in NEWSWEEK March 2011 as “rising like Aphrodite from the foam of the Atlantic” will enhance the status of Lagos and create a new and stronger financial hub for the whole of West Africa. If you visit Lagos today, the pressure on space is obvious. The delightful new city will be a best-in-class model of urban planning. The Executive Chairman of Eko Atlantic Mr. Ronald Chagoury says

be permitted. Instead of the claustrophobic city environment of Lagos, Eko Atlantic will provide dramatic views over the Atlantic Ocean, clear, tree-lined streets and open spaces. Each district of the new city will have a well-designed mix of residential developments, offices and commercial buildings, shops, bars and restaurants. Facilities for socialising for business or pleasure will always be just around the corner, creating a safe atmosphere for people to live, work and play.

The Visonary City This new Nigerian city will rise from what was in existence over a hundred years ago. Land reclamation work is already on track to create solid foundations extending over nine square kilometres. This will support a new urban development the size of the Manhattan district of New York City.

The Clinton Global Initiative (CGI) applauded this ambitious development and in 2009 recognised Eko Atlantic as:

“the objective (of the project) is to create real class international city, to show the world that Nigeria is land of opportunity and Lagos is an economic power house in Africa”

“An environmentally conscious city, built with nature to restore an original coastline and to protect Victoria Island, Lagos, from the severe risk of ocean surge and flooding...”

The new city offers millions of square metres of prime development land, available to acquire now, for African and international investors to help build a truly remarkable new city, where traffic will flow freely, even in commuter rush hours, because ad hoc street parking will not

Eko Atlantic will change the face of Africa and will transform Lagos into a successful mega city-state. This state will provide space for the 25 million people expected to live and work in the region by the year 2015. Lagos and Eko Atlantic are expected to become the new

40 New Business Africa

financial epicentre of West Africa by the year 2020. By that time, Nigeria will be one of the world’s 20 largest economies.

Eko Atlantic is evolving rapidly from a visionary design concept into reality. The reclaimed land of Bar Beach on Victoria Island, Lagos, is providing much needed

Harbour and Ocean Views: A careful blend of commercial and residential developments will shape the character of this highend waterfront area that looks across the wide entrance to Lagos Harbour and the Atlantic Ocean to create an international appeal.

The four-lane main access route will keep traffic moving and nearby tram and ferry networks will offer a relaxing alternative to driving in the city.

recreational space for the people of Lagos and their families at weekends. Children are playing on sand which would have been

The Business District: The most impressive feature of the Business District will be a spectacular central boulevard that will be about

under metres of ocean just a year ago. The Great Wall of Lagos is already protecting the newly reclaimed land for the Business District.

2 kilometres long and 60 metres wide. It will be similar in size to the Champs Elysees in Paris or Fifth Avenue in New York. The whole Business District will be spread over some 700,000 square metres of signature development opportunities. As the centre for finance in Eko Atlantic, the Business District will also feature the keynote addition of Eko Mall, a luxury-class outlet for retail and commercial use. With its coastal location and abundant natural resources, Lagos is ideally positioned to take a leadership role in the African economy and become a major global force.

From Concept to Reality

Thanks to the development of Eko Atlantic, today the highway is clear from flooding and well protected. The former Governor of Lagos State Asiwaju Bola Tinubu acknowledges this effort “An ocean that is threatening the whole of Lagos is being challenged” by the project that is backed by Nigeria and international banks The present Governor of Lagos State Babatunde Raji Fahola confirms that this new development “enables government to rise to the challenge of nature.”

Districts of the golden city Eko Atlantic The Ocean Front district of Eko Atlantic will stretch along the Nigerian coastline with breath-taking views over the Atlantic Ocean. This mainly residential area will have an open, modern feel and will have many facilities and attractions for tourists visiting the new city The Coastal Promenade will sweep along the entire waterfront with bold landscaping, tree-lined streets and lush green gardens. With tourists and visitors to Nigeria in mind, the area will also have a range of leisure facilities, including a water park, cinemas, theatres and shopping centres. A spectacular tram ride along the entire length of Ocean Front by day or night will be an unforgettable experience for all to enjoy in Eko Atlantic.

Underground Parking and Transport: The arrangements for parking and keeping the streets through Ocean Front clear from congestion will centre on underground parking.

Above all, Eko Atlantic with its world class iconic buildings and towers like Manhattan in New York will be the ultimate tourists’ destination in Nigeria. Its Executive Chairman, Ronald Chagoury reiterates “Its very high-tech, very modern, very sophisticated and very rich” CNN correspondent Brent Sadler agrees “Eko Atlantic is truly one of a kind.”

Investment Opportunities Eko Atlantic is creating a wealth of new investment opportunities for individuals, companies and organisations who want to invest in Africa. A wide choice of plots and property development options are available.

David Frame, Managing Director of South Energyx, Lagos, Nigeria, says: “There is unlimited investment potential across every aspect of creating this city. We are not looking for people coming in to build single-storey structures – we are looking at selling plots where high-rise buildings would be constructed with such facilities as hotels, office and residential complexes, shopping malls and entertainment areas.”

Harbour Lights: The exclusive Harbour Lights district lies at the western end of the development and its buildings will enjoy relaxed views over the entrance to the Port of Lagos, especially at sunset.

New Business Africa 41

Tribute to the Late President Mills of Ghana

John Atta Mills during his inauguration

G

hana’s President John Atta Mills, who won international praise for presiding over a stable model democracy in Africa, died suddenly on Tuesday July 24, 2012.

Mills’ unexpected death came months before he was due to stand for re-election in December as head of the world’s No. 2 cocoa grower, which is also a major African gold producer.

challenging global circumstances and strengthened Ghana’s strong tradition of democracy ... He was also a strong advocate for human rights and for the fair treatment of all Ghanaians,” Obama said in a statement from the White House.

Trained as a lawyer and taxation expert, Mills had overseen Ghana’s emergence as one of Africa’s newest oil producers two years ago,

In line with Ghana’s constitution, Vice-President John Dramani Mahama, who is 53, took the oath of office as head of state before a sombre parliament hours after the announcement of Mills’ death. Mahama will serve as caretaker president until the elections at the end of the year.

Analysts hailed this as a sign that the country’s political institutions were solid and working smoothly.

“With Ghana’s reputation for stability, having seen two peaceful transitions in government following elections in 2000 and 2008, the strength of Ghana’s institutions are likely to see the country in good stead,” said Razia Khan, head of Africa research at Standard Chartered.

“As such, market volatility related to near-term uncertainty is likely to be limited,” she added.

Ghana’s election commission said December’s presidential and parliamentary elections would go ahead as planned.

OBAMA PAYS TRIBUTE U.S. President Barack Obama, who had received Mills in the Oval Office in March and praised him and his country as “a good-news story” in Africa.

“He helped promote economic growth in Ghana in the midst of

42 New Business Africa

Late President John Atta Mills and US President Obama earning respect at home and abroad for his economic policies and commitment to democracy and good governance.

Ghana has seen democratic elections decide its leadership no fewer than four times since the last military coup in 1981, a rare feat in a region where power is still just as often determined by the bullet as by the ballot. But late President Mills will continue to live in the memory of his people.

INTERNATIONAL AFFAIRS

CAN THE US ECONOMY SAVE OBAMA’S ELECTION HOPES With the first hints of an American economic revival evident, and the contributions of the emerging economies to US economy recognised, what does Africa stand to gain if Democrats return to power?

The giant US economy finally seems to be gaining traction.

And, with the contest for the White House already heating up, the continuance of that growth is likely to be one of the most defining factors in this year’s presidential election. Needless to say, that both the Democrats and the Republicans are well aware that the economy is crucial to their election prospects.

In the balance sheet of the first quarter, a flurry of statistics came out suggesting that, instead of heading for a doubledip recession, America’s economy is back on an upward trend. More than 200,000 jobs have been created each month since December 2011, pushing unemployment to its lowest level in three years. The overall unemployment rate has fallen close to the 8% mark that President Obama targeted when he unleashed his first multi-billion-dollar stimulus package.

And with the Federal Reserve saying interest rates would stay at record low for two more years, stock markets surged through levels last seen before the 2008 financial crisis.

Howard Gleicher of Aristotle Capital Management agrees “certainly, the economy appears to be improving” “If you look at practically any indicator – employment, consumer confidence, bank lending – things have been improving, while inflation is running below expectations.” Even the longmoribund housing market is looking more resilient, while construction spending rose to the highest level since 2009.

Gleicher says “corporate profits have been relatively strong, though to date this has been more the result of cost-cutting than revenue growth. However, there could be significant headwinds from geopolitical or macroeconomic events.

“Tensions in the Middle East could trigger an oil-price spike large enough to stall economic growth, while the ongoing European debt crisis is feeding volatility into the market.”

But the US economy is probably better insulated than most – partly because of the size of its domestic market, but also because the authorities have been so accommodating,

44 New Business Africa

“Quantitative easing has been helpful,” says Gleicher, noting that “after 1929 the Federal Reserve’s contracting money supply only exacerbated the downturn. Ben Bernanke (Chairman of the US Federal Reserve) is a specialist on that era and is determined not to repeat the same mistakes” It helps, of course, that the US authorities can take timely and decisive action in a way that European institutions patently cannot, and that the US dollar is perceived as a safe haven. While such an accommodating stance might be good for US growth, some warn of a ‘bond bubble’. Certainly, the returns on US Treasuries are not attractive to international investors seeking more than safety.

All of which makes US equities the more attractive option. Gleicher notes that “corporate profits are growing at near 6% and we expect them to produce high single- or double-digit gains over the next couple of years. Moreover, they offer an average yield of around 3%, which is a far better return than fixed income.”

With US growth likely to be between 2% and 3% this year, Gleicher sees better returns over the long run coming from US multinationals exposed to faster-growing emerging economies.

“If you look at the S&P 500,” he observes, “about 60% of those companies’ revenues are generated outside the United States.

“Increasingly, these are global businesses able to use cash cows from US or European sources to grow elsewhere.

We see that as attractive over the long term.”

However the election turns out, historically speaking, US presidents usually devote the second term to foreign affairs and global issues of humanity like poverty – it is usually a question of goodwill for posterity. But with recognisable business advantages being derived from emerging economies like Africa, can President Obama, if he wins a second term, use the presidential bully pulpit to contribute more to fostering trade and investment in Africa? The President can, but will Obama do it?

By Jonathan Gregson

THE EXPERT

The information you need from the people who know…

We all know that there so many avenues for placing advertisements in a multi media world but did you realise that glossies can help you target more effectively and sell more efficiently. Our expert explains:

Why You Need To Advertise in Magazines We live today in fast-paced post modern world. As such, businesses are hardpressed to find consumers willing to slow down long enough to hear what they have to say. And that’s exactly what most of them need—new customers who will stop and not just consume their message, but digest it. That’s what marketing is all about. Fortunately for advertisers, in a world of high-speed media there is still one place consumers turn to in order to chew more slowly over stimuli: Magazines.

In spite the proliferation of content on the internet, PDAs and mobile media, people still like to sit on their couch and flip leisurely through magazines.

Research shows that this is a good thing for small businesses because: 1. Consumers expect and even enjoy ads when they’re in magazines.

2. Half of readers take action on magazine ads.

3. Magazines let advertisers target niche markets more efficiently.

4.

Magazines reach a more

46 New Business Africa

affluent demographic.

5. Magazines are passed along and read multiple times, offering advertisers added, long-term exposure.

Narrow your options When it comes to magazines, the options are endless. There are trade magazines, with which you can reach just about any special interest niche you desire, and consumer magazines, which allow you to reach a broader demographic of general interest readers. There are national magazines, regional magazines and even local magazines. Consider your goals and budget and choose wisely.

There are thousands of magazines on the market in which you can reach new customers. All you have to do is find them.

Pay attention to readership Magazines’ greatest advantage is their ability to connect you with your ideal

consumer—someone of a particular age, race, income or gender, or someone with a particular interest or hobby. Before you purchase ad space with a title, first, study its circulation in order to make sure that its readers are also your customers.

A magazine advertiser’s Bible is the media kit. Ask magazines in which you’re considering buying an ad to send you theirs. It includes detailed circulation figures, reader demographics, advertising rates and more.

Design for attractiveness Many consumers who buy magazines don’t necessarily read them; instead, they just look at them. It’s important, then, to create an eye-catching, imageoriented ad with both good copy and pretty pictures. Use bold colours and an interesting layout to make the most of your marketing investment. Readers and publishers alike expect high-quality ads from magazine advertisers, so consider

THE EXPERT hiring a professional agency or graphic designer to create your ad. Doing so might mean spending more money, but it could easily mean making more money, too.

Consider bells and whistles Magazines offer advertisers a unique opportunity to make their ads more creative, more engaging and more persuasive with special, though admittedly expensive, enhancements. Instead of running a small, two-dimensional advertisement, businesses with the budget and desire can buy inserts, business reply cards and gatefolds, and can sometimes even arrange to include small product samples.

Negotiate placement Magazines are built carefully, designed with deliberate real estate for editorial and advertising alike. The front and back of the book typically contain shorter articles, regular departments and product endorsements while the middle of the book—the feature well—usually includes the magazine’s longer articles. Examine

a few issues of a magazine to decide where your ad most makes sense and try to negotiate appropriate placement.

your product or write about it, which translates into free magazine advertising in the form of legitimate editorial content.

Keep your eye on Return On Investment (ROI)

The greatest disadvantage to magazine advertising is its high cost. Magazines, however, typically offer advertisers onetime, three-time, six-time or 12-time annual rates. Buying ads at higher frequency is more effective and can save you money.

Magazine ads have been proven to improve marketing ROI across a broad range of product categories. Avoid investing in a magazine ad unless you are ready and able to measure its success.

Magazine ads tend to improve a company’s image; the higher-quality production and paper often lends your product and brand more credibility in consumers’ eyes.

Few suggestions on how to improve the performance of your magazine ads Magazines are often produced several months before they’re published. As such, be prepared to create and purchase your ad early with substantial lead-time.

If you sell an especially cool product, or a really unique service, consider sending a sample with a press release to relevant magazines. They may decide to feature

Many national magazines offer regional advertising sections; purchasing a regional ad often costs less but still gives readers the impression that you paid for a national advertisement.

If your ad budget is small, consider purchasing a direct response ad, one of the small ads that magazines often reserve space for in the back of the book. These are typically small black-and-white ads in which advertisers can make targeted sales pitches to readers who are looking for them. These ads are less expensive and offer businesses a way to reach consumers who are using the magazine to shop.

New Business Africa 47

BUSINESS TIPS

Sir Richard Branson The Lionheart With his archetypal ‘David and Goliath’ approach to business and tackling competition, for over 40 years, Richard has inspired countless thousands – probably millions- of entrepreneurs the World over. He has launched over 400 diverse businesses, from health clubs to his airline and from mobile phones to his (coming soon) space travel for the masses. Richard represents convincing proof for aspiring business owners that it’s not necessarily what you do; it’s how you do it.

to believe in business because l believe that business is a force for good. By that l mean that doing good is good for business.” NBA couldn’t agree more, hence the publication of his opinion which is edited for relevance to our readership.

Clearly, Richard’s business acumen is as powerful as his galactic throttles, but he conducts himself with grace and humanity. This is a theme which flows into his most recent book, ‘Screw Business as Usual’.

Building a dynamic entrepreneurial culture is one of the key characteristics of a healthy economy. A society which encourages new business and recognizes the importance of start-ups and small firms will be successful on the global stage.

“My message is a simple one”, says Sir Richard. “Business as usual isn’t working. Infact, business as usual is wrecking this planet.

Resources are being used up; the air, the sea, the land are all heavily polluted. The poor are getting poorer. I think business can help fix things and create a more prosperous world for everyone. I happen

Start-ups and small firms are the engine of the economy and account for nearly 60pc of private sector jobs. To allow them to flourish, we must ensure we create an economy where it is easier for new companies and innovations to develop.

48 New Business Africa

Recession? Get Over It And Start Making More Of New Opportunities

BUSINESS TIPS Frustratingly for those looking for an easy answer or formula to securing entrepreneurial growth, there isn’t one. Governments can make it simpler for people to do business; banks can make it easier for companies to access money and regulators can ensure competition is encouraged.

However, there is no substitute for actually running a business and that is a risky game where one needs to be brave, focused and sometimes lucky. Throughout my career l have made decisions using my instinct, but l have also worked hard at making decisions work. As l look back, a few key patterns keep re-emerging.

You need to surround yourself with trusted and talented people.

Setting up businesses takes an enormous amount of time and energy.

It is easier to make the big commitments when you are surrounded by people you trust and like. Keeping my good chief executives and managing directors happy – and finding new ones to start the next

opportunities exist today in manufacturing, leisure, recruitment, renewable energy and even space.

People often blame economic conditions or lack of finance from the banks as the key reasons for the failure of small businesses. Sure, banks need to keep credit flowing and governments need to hold down the bureaucracy and red tape but entrepreneurs also need to take responsibility and keep driving their businesses on.

Many would-be entrepreneurs give up too soon. You have to overcome early adversity. The inaugural flight of Virgin Atlantic almost brought the group down. We had worked like mad for six months to get the first flight off from London to Newark and it had been a resounding success – fuelled in part by 70 creates of champagne.

On my return to London, l was met by our bank manager sitting on the steps of my house. He had come to tell me that my bank was not able to extend my overdraft as l had asked, to help finance the

Timing is also important. If l could start again, l would set up more businesses during recessions ventures – is one of my full-time jobs.

Our leaders should have the character to make tough decisions and the passions and ability to inspire staff and carry them through difficult times. Our best CEOs tend to be unconcerned about the size of their office or the thickness of the carpet.

You must ensure your business or idea has a place in the market and a product and service that is different enough to attract customers.

At virgin we stick to a simple checklist. Our businesses need to be innovative, maintain a certain quality, be value for money and have a sense of fun. We also focus on customer service – we like to be the customer’s champion, bringing simplicity and transparency to many businesses. Timing is also important. If l could start again, l would set up more businesses during recessions, when almost everything cost 50pc to 90pc less than during good times. Often a lot of highly skilled staff are on the market and the competition have their eyes on their own operations and issues. Such a climate is perfect for young, enthusiastic and nimble companies to set up and thrive. This is one of those times.

During the recession of the 1970s we expanded Virgin Records. In the early 1990s we expanded Virgin Atlantic, as established rival airlines were recovering from recession and the Gulf war. Similar

new airline.

Instead if we went over our overdraft limit of £3m, the bank would have bounced our cheques. This was doom for an airline. As soon as people heard that we had no credit, they would stop supplying food and fuel. Passengers wouldn’t buy tickets. I had to move fast.

Over the weekend l pulled in money from our overseas businesses to shore up the bank account and, as soon as l could, l changed banks.

It was a sobering lesson. It taught me a good entrepreneur looks for solutions, not excuses. We’ve been doing that ever since. You always have to protect the downside of your ventures.

So get out there and start up those businesses.

New Business Africa 49

TOURISM

Osun Oshogbo

a destination for every traveller looking for spirituality, a hospitable culture and a vibrant festival

Osun Oshogbo Sacred Grove designated by UNESCO as World Heritage Site in 2005 is a major part of Nigeria’s rich heritage and traditions treasures in Africa.

The Osun State of Nigeria – where Osun Oshogbo Grove is located – is noted for its spectacular festivals, arts and crafts, dances, home videos, heritage sites, museums and monuments. Osun Oshogbo Sacred Grove is a hidden jewel ready for massive tourism and also yearning for investment.

Today, the grove is the only remaining sacred grove of its size and biodiversity in South Western Nigeria. It is a sanctuary where different shrines, sculptures and art works have been erected to honour, celebrate and remember Osun – the goddess of fertility – and other Yoruba mythical deities.

The annual festival which is held every August in Oshogbo to honour Osun draws both local and international tourists in their thousands to the Osun-Oshogbo Grove.

The uniqueness of this heritage site is not only a testimony of long standing tradition and culture, it is also a prominent mechanism to

50 New Business Africa

attract more tourists to the site and promote tourism in Osun State Some of the works done in Osun-Oshogbo is the result of an Austrian woman, Susanne wenger who arrived in the 1950s and was accepted into the local community. She assisted locals in rebuilding many of the shrines, and in erecting new ones. Ultimately she was made an Olorisha, a priestess of the region.

The nearby towns of Osogbo are known for their hospitality and many of the locals make foreigners who wish to steep themselves more in traditional music and arts feel welcome.

Osun state has the unique feature of being a state with the highest number of historic town and natural artefacts in Nigeria, some dating back to the creation of human race. The historical significance of the state lies in the fact that the cradle of human race is believed to be located in the state (Ile-Ife) and one of the most culturally endowed groves in the state is located at the state’s capital (Osogbo).

A direct impact on Osun-Osogbo festival is the dredging and channelization of River-Osun tributaries by the administration which now makes the Osun River neater and cleaner.

TOURISM The administration of Aregbesola has re-invented tourism in Osun state by upgrading the grove infrastructure, develop attractive social and cultural events around the Osun Osogbo festival and improve artefacts and cultural items designed to showcase the cultural heritage of Osun-Osogbo festival.

Apart from the Osun Grove, the state is also home to many indigenous towns and villages that boast the existence of more than 500 years. Indeed, many of the town and villages are more than 1,000 years old. In all, there are about seven other tourist centres across the state such as: Kiriji War Sites at Igbajo/Imesi Ile; Jalumi War Site; Oranmiyan Staff in Ile-Ife and Olumirin waterfall at Erin-Ijesha and Warm water spring at Okini.

The exhibition of excavated antiquities of the 17th century during 2011 Osun festival added more glamour to the festival than it used to be. Those antiquities discovered at the Osun grove which included beads of 17th century and 300 years old cowries bear testimony to the artistic ingenuity of the forebears of Osogbo people. Any tourist visiting the grove will feel the presence of the gods and the intensity of the forest located on the outskirts of the city of Oshogbo.

Regarded as the abode of the goddess of fertility, Osun is one of the pantheons of Yoruba gods. The landscape of the grove and its meandering river is dotted with sanctuaries and shrines, sculptures and art works in honour of Osun and other deities.

Osun Grove can be described as one of the largest and perhaps the only remaining example of a once widespread phenomenon that used to characterise every Yoruba settlement.

Celebration of Osun is a strong expression of Yoruba divinatory systems; its annual festival is a living, thriving and evolving response to Yoruba beliefs in the bond between the people, their ruler and the Osun goddess whose domicile is in the grove.

stocktaking and assemblage of all sons and daughters of Osogboland and most especially Yoruba speaking people both in Nigeria and Diaspora.

The cultural celebration tagged Osun Osogbo Festival is a two-week programme of events, starting with the spiritual cleansing of the town. This is generally known as Ìwòpòpò, followed by Olójúmérìndínlógún which is the lightening of the centuries old 16-points lamp three days later. Ìboríadé – the assemblage of all the crowns of past rulers (Ataojas) for blessings follows some four days later.

The Festival’s Grand Finale showcases the cultural procession of the people to the Osun Grove.

Despite the influence of western civilization, education and religion, the Festival has endured and to a very large extent it still manifests its originality, authenticity and acceptability among the Yorubas both at home and in the Diaspora.

Osun Grove is waiting for investment For non-oil producing state like Oyo, a deliberate government’s involvement plan and corporate investment could develop Osun Oshogbo’s site to the standard of Obudu Mountain Resort in Cross River State.

Then Osun Oshogbo can now be counted as one of the top African destinations and can be added to the list of ‘Places to Visit in Africa before You Die’ or ‘Twelve Mustvisit African Destinations’.

Just like the Masai Mara in Kenya, Victoria Falls on the Zimbabwe -Zambia border, Pyramids of Giza in Egypt, Nigeria can now rank as one of the tourist destinations that make it into the travel advisories for the continent. Osun Oshogbo is waiting for such a time.

Osun is the Yoruba personification of the ‘waters of life’ and the spiritual mother of the Osogbo Township.

The month of August of every year is the month of celebration, traditional cleansing of the city and cultural reunion of the people with their ancestors and founders of the Osogbo Kingdom. The celebration of Osun Osogbo Festival is a period of

New Business Africa 51

ROTIMI MAKINDE

A New Breed of Nigerian in the Service of his People

Hon.Rotimi Makinde, a member of the Nigerian House of Representatives

Empowering his constituents by creating employment opportunities Young Rotimi Makinde started from a very humble background and the search for knowledge took him through every system of Nigerian education before he finally acquired a university degree.

Having once lost election, He contested again and won the election for the House of Representatives in 2011 to represent Ife Federal Constituency on the ticket of Action Congress of Nigeria Today, Honourable Rotimi Makinde a man of many parts and a member of the Federal House of Representatives of the Federal Republic of Nigeria. A very active member of the 7th Assembly, Deputy Chairman Human Rights, Member House Committee on Culture, Art and Tourism among many others.

Beyond the call of his duty as a legislature, Makinde reaches out to his constituency by providing simple, yet essential means of livelihood to members of his political constituency.

Rotimi, who regards Ogbeni Rauf Aregbesola, the Governor of Osun State in Nigeria as his mentor, holds a master degree in Finance at Ladoke Akintola University, Ogbomosho, Oyo State and joined the Nigerian National Petroleum Corporation (NNPC) in 1991 and served the Corporation for twenty (20) years before he voluntarily retired to answer to the communal call of his people.

In the course of his career, Makinde also cut a niche for himself in the Nigerian film industry – Noollywood – as a producer of 13 films and an actor in over 200 films.

The philanthropist nature in Rotimi Makinde coupled with his love for his people and many other activities still propel him to want to do everything within the framework of his present office to lift the lots of his people, and all these have now positioned him for future greater responsibility.

New Business Africa 53

LOCATION PROFILES

OGUN STATE

The Gateway State opens for Investors

In its bid to make Ogun State an investment haven, Governor Ibikunle Amosunled administration’s policy of rapid industrialization is yielding dividends as investors are now taking advantage of the huge potential in various sectors of the state’s economy Ogun State shares an international boundary with the Republic of Benin to the west, in the south it is bounded by Lagos State and the Atlantic Ocean, on the east by Ondo State and in the north by Oyo State – hence the nickname “the Gateway State of Nigeria.”

Strategic Location No doubt, with this strategic location, Ogun State is a compelling investment destination in its own right. The state boasts of 16,000 square kilometers of land suitable for agriculture and forestry and a climate ideal for both cash crops such as cocoa, oil palm, rice, kola nut, cassava, vegetables, cocoyam and cotton

Mineral Resources More importantly the Ogun State’s industrial potentials are immense, it’s vast natural resources, as well as its large quantities of mineral deposits have made the state an investment destination to many business concerns.

In practically all the local government areas are mineral resources in commercial quantity, making them potential commercial hubs.

54 New Business Africa

For instance, in the Obafemi-Owode Local Government (LG) of the state, mineral resources such

LOCATION PROFILES

as kaolin tic clay, ball clay and laterite abound in large quantity. The kaolin tic clay is a veritable source of alumina in cement production, ceramic and enamel production, filter in paper industry as well as in medicine; while ball clay is used to process ceramics; and laterite, which is an additive in cement production, is also used in civil and construction works. Many LGs in the are blessed with soft sand, which is used for construction purpose, while glass sand, useful in the production of bottles, is available in commercial quantity in Ifo and Yewa South LGs. Both Ijebu-East and Ogun Waterside have thick forest with mahogany, oak and other types of wood for industrial needs. The areas are noted for food production and agro-based industries.

in the production of beer, bicycle tyres, carpets and clothing materials.

Equally, its extensive limestone deposits in Ewekoro and Yewa South LG, estimated to last for some five hundred years according to scientists, is a major raw material for the cement industry. Recently, Aliko Dangote, Africa’s foremost industrialist, opened a one-billion-dollar cement industry in Ibese in Ogun State, which is the largest in West Africa. This is in addition to the already existing cement factory Lafarge WAPCO Plc in Ewekoro and Purechem Industries cement plants in Sango Ota both of which have made the state their home.

Taking Agric from Farm to Industry

The Ogun waterside has an export processing zone and deep seaport infrastructural development. The state has another deep seaport at the Olokola Free Trade Zone, with a land area of about 7,000 hectares, which is a public private partnership (PPP) venture between Ogun and Ondo states in conjunction with Nigeria National Petroleum Corporation (NNPC), Chevron, British Gas and Shell Corporation. The project, according to the owners, “is a giant stride towards industrialization of the states which will create an environment conducive for industrial development and the expansion of commerce”

Current Investors

However, agriculture, with its range of primary products, is the main driving economic force of the state. It is the highest employer of labour and a major revenue earner of the state. Agricultural Production and Industrialisation is one of the Five Cardinal Programmes of the present administration. The Governor of Ogun State, Senator Ibikunle Amosun stresses that: “ Agriculture will be more or less a pivot on which all of our programmes will rest on… we realized agriculture was the most potent of all that we could use to actually generate the most needed revenue. Ogun has the land, we are gifted”

Investment in Education

Little wonder companies like Coca-Cola Nigeria Limited, Unilever Nigeria Plc, Nestle Nigeria Plc and Multi-Trex Integrated Foods have made Ogun State their operational base. This state also has industries already involved

In as much as the government is leveraging on agriculture, Ibikune Amosun’s administration has also identified education as one of the key areas open for investment. The desire of the administration is to restore the state to its past glory as the cornerstone of education in Nigeria. Nostalgising about

New Business Africa 55

LOCATION PROFILES

the state’s enviable record of the past, Governor Amosun said matter-offactly: “Education to us is the key. People should not forget that Ogun State happens to be what l will call the premier state in Nigeria, when we talk about education. If you remove Ogun State from Nigeria, a significant part of Nigeria would have been removed in terms of human resources and intellect” Going down the memory lane, the governor explained further that, Ogun State is the home of all the known names that totally devoted their lives to education. Indeed, the state parades the enviable record of producing the first account-general, the first medical doctor, the first lawyer, the first woman to drive a car, the first African to win a Nobel prize in Literature, and many more. Amosun hopes the investors will leverage on these opportunities and potential.

Investment in Construction and Road Rehabilitation

land for commercial purposes such as tank farms, real estate, as well as logistics will also be given a discount of 40 per cent.”

The Making an Investment Haven Realising that Ogun State is not an oil-producing state, Governor Amosun,

Ogun State also has investment in construction and rehabilitation of roads.

The state likes to partner with the private sector to build roads in every nook and corner of the state. Under the Ministry of works and Infrastructure, investors are welcomed to the Vehicle Inspection Unit to supply vehicle and invest in vehicle inspection station infrastructure such as patrol cars, motorcycles, communication gadgets, to mention a few. Investors are also required to upgrade and refurbish the Material Testing Laboratory.

Investment in Health Sector Furthermore, the Ogun State government is also willing to partner with investors to upgrade the health sector. Those who are involved in the manufacturing of drugs; supply of medical equipment, support services providers and all other sundry stakeholders in the health sector have opportunities in invest in the state.

Investment in Power Supply

a top notch chattered account and a man of few words, but full of works, initiated policies and programmes to promote the growth of micro, small and medium enterprises (MSMEs) and also to promote indigenous

The Gateway State has also flung its doors open to investors committed to the provision of adequate and reliable electricity supply. To make all this work, the state has set in motion various initiatives to encourage interested investors to take advantage of the opportunities that abound in the power sector.

Prime destination for investment There is now a pallet of incentives for prospective investors. In place is a “One-Stop Shop” which allows prospective investors to have a single point of contact for their dealings with the various ministries, departments and agencies (MDAs) of the state. The point here is to checkmate bureaucracy and slow processing of documents. The government has also announced discounts on purchase of land.

Governor Amosun revealed that: “For investors in agriculture, the state government is willing to give a discount of 80 per cent on land purchase, while land for manufacturing attracts a discount of 60 per cent. Any investors desirous of acquiring

56 New Business Africa

entrepreneurship to jumpstart the state’s economy.

Industrialisation of the state is one of the five cardinal programmes of the Amosun administration and this explains why the administration through its Ministry of Commerce and Industry is identifying with MSMEs in terms of financial, technical and training assistance. The ministry, which is the bedrock of industrial and commercial activities, has the responsibility of ensuring that a conducive business environment is created to drive economic development.

LOCATION PROFILES

Now, the number of industries that have now found a home in the state within this period is encouraging. Stakeholders in Ogun State contend that never in the history of the state has such level investment been witnessed.

And this is rightly so.

In his first year alone, Governor Amosun has brought President of Nigeria, Jonathan Goodluck to Ogun State a record three times; first on June 27, 2011 for the inauguration of May & Baker Nigeria Plc’s world-class pharmaceutical facility, then December 20, 2011 also witnessed another milestone in the industrialization as WAPCO Plc, manufacturers of Lafarge Cement, inaugurated its Ewekoro 11 plant with an accompanying 90 megawatts power generating plant; and by February 9, 2012 President Goodluck made the third trip to Ogun State for the inauguration of Dangote Cement Plant in Ibese.

Other industries already inaugurated in the governor’s first year include but not limited to the smelting plant of Metal Recycling Industries Limited in Ogijo; African Foundries Limited’s 100 per cent export-oriented steel manufacturing project also in Ogjo, among others.

Operators of MSMEs in the state also have a reason to rejoice. In partnership with the Bank of Industry (BoI), the administration has floated a N 1 billion about $625,000.00 (both parties contributing N500 million each) counterpart funding to implement the Industrial Development Fund, a loan scheme strictly for this group of entrepreneurs. This, the government hopes, will help in achieving the objectives of generating employment, wealth creation, and poverty alleviation, with the aim of enhancing industrialization.

According to Ogun State Commissioner for Commerce and Industry, Otunba Bimbo Ashiru, this loan facility is open to artisans, industrialists in processing and production, cooperative societies of farmers, block makers, saw millers/ furniture makers, makers of local fabrics adire/kampala, limited liability companies and enterprising unemployed graduates.

So far, 13 cooperatives comprising 117 individuals have benefitted from this scheme.

To drive the development of industrial clusters and as a mark of commitment of his administration to industrialization, Governor Amosun has completed the reconstruction of the 700 metres access road to the industrial area at Onijanganjangan along Kilometre 9, Abeokuta-Lagos Road. The road, which was built a cost N45 million about $300,000 through direct labour, has opened up the state’s technology incubation centre, industrial park and industrial services centre. Two additional industrial parks have also been approved to be located in Ogun West and Ogun East senatorial districts which will compliment the park in Abeokuta. The necessary infrastructure in these parks will be provided under the publicprivate partnership (PPP) venture.

sectors, including the establishment of world-class shopping malls, steel manufacturing, cement, agriculture and food processing.

Ashiru say’s, “We have over 14 companies that are waiting for lands to start their own projects too. We went to Malaysia and Philippines to talk to potential investors. They are all coming into the state. They are waiting for us to give them the necessary lands to invest. They want to site the largest shopping complex in Africa here in Ogun State. We also spoke to a company in Dubai, they are the largest manufacturer of ceramics and they want to come and replicate what they have in Dubai. They are the ones who supply Terminal 5 in Britain and we have seen what they are doing in Dubai. So, we are hungry to accommodate genuine Investors.”

From the start go, the people of Ogun State have high hopes and expect Governor Amosun to lift the state from the neglect and decay in which the previous administration left it.

Yusuph Olaniyonu, the state commissioner for information, says: “He (Amosun) has promised them (the people) he would rebuild the state. He is on a rebuilding mission. They want him to actualize his vision, push through his mission and then move the state forward.”

At the moment, the Amosun administration is encouraging five potential cement investors to come to the state, even as it strives to identify new mineral deposits. To this end, last April, the Mineral Resources and Environmental Management Committee was inaugurated and mandated to mange the mineral development facilitation, acquisition of land for foreign investors and mineral matters and geological exploration of mineral deposits in the state.

Above all, Commissioner Ashiru spells out their mission clearly: “What we are trying to do is to bring back what the first generation, our forefathers, did. Before the advent of oil, commerce was used to drive the economy of the old Western Region …We want to tell people that without crude oil, Ogun State would be turned around and then we can create employment through agriculture and commerce.”

Indeed, these incredible and laudable achievements in just one year of the Amosun administration have set the tone for the emergence of Ogun State as the investment haven on the West African coast.

For further information contact:

Attention: Nike Aboderin (Mrs) Snr. Special Assistant, Trade & Investment +234 805 807 8300 nike.aboderin@ogunstate.gov.ng In order to attract investors to the state and to further pursue the dream of Kayode Olusanya industrialization, the administration in March this year, held the state’s first- Email:tradeinvestments@gmail.com Special Assistant, Trade & Investment Website: www.ogunstate.gov.ng +234 802 358 2805 ever investors’ forum tagged ‘Ogun State Open for Business’ The outcome olukayode.olusanya@ogunstate.gov.ng of the forum has further endeared the state to the business world going by the plethora of requests which the state has received from intending investors. As a result of the forum, 30 genuine investing companies have expressed interest in investing in the state. This cut across various

Investors’ Forum

Dept. of Trade & InvestmentState Secretariat Block D, Room 113-116 Oke Mosan Abeokuta

New Business Africa 57

PERSONALITY

Kayode Aworinde Doing Business and Touching Lives

Chief Kayode Aworinde receiving a fellowship award

Raymond Kayode Aworinde sits atop a diversified business organisation in Nigeria with a hard-earned reputation for excellent business practices and good corporate social responsibility. His company, Aworinde Investments Liimited has its operational headquarters is in the bustling metropolis of Lagos, Nigeria.

From a very humble beginning as an importer of cars from Europe, precisely Germany, Kayode has developed Aworinde Investments into a viable chain of investments across Nigeria, which include Hotel, Nightclub, Agriculture, Imports & Exports, Transportation and Haulage, Real Estate and General Contractors.

Since inception, Aworinde Investments Limited has experienced phenomenal growth on account of quality of its goods and the delivery of its services, its focus on long term profitable investments Limited and efficiency of its human capital. Today, Aworinde Investments Limited is a multi-million Naira company and the portfolio is still growing.

His Business The core business focus of Aworinde Investments Limited is construction of hotels and real estate with new projects underway in the oil and gas, industrial farming, multi purpose hall, night club and the 100 bedrooms hotel that is nearing completition in Ile-Ife in Nigeria, all of Kayode’s projects 58 New Business Africa

are geared toward generating employment and provision of services for the people, prevention of capital flight and provision of locally produced goods for Nigerians.

Recognition for Touch Lives Aworinde Investments Limited is fully involved in Corporate Social Responsibility activities. Scholarships are being given to brilliant students from poor background, vocational training are offered to youths to take them off the streets and give them a meaningful future, donations are made to universities and other higher institutions across the country to support academic learning. As a result of all these activities several chieftaincy titles were given to Chief Raymond Kayode Aworinde, The Agbakin of Ibadan Land and Fellow of a Federal Polytechnic in Nigeria This young and dynamic entrepreneur is a shining example of how business can help create a prosperous and more equitable world for everyone.

Aworinde Investments Ltd (RC 387657) 106 Obafemi Awolowo Way Ikeja, Lagos, Nigeria www.aworindeinvestments.com info@aworindeinvestments.com

New Business Africa 59

UP CLOSE AND PERSONAL

Pierre Vandebeeck foremost agro-business magnate and chairman of SIAT Group and Presco Plc speaks on the business climate in Nigeria Excerpts: With all the cry of insecurity and related challenges in the country, what keeps your faith in the Nigerian economy so strong? How come even when Nigerians and other investors are sceptical about investing in Nigeria, you have continued to invest in the country?

‘Nigeria is investment destination of choice’

For me, if you want to be in Africa, you have to be in Nigeria. First of all, Nigeria is fast developing; the GDP growth of 6 – 7 per cent per annum is almost near to the Asian tigers some years ago, governance is also improving.

It is not yet perfect but improving. And the power of Nigeria lies in its market. Today you have overall: about a hundred and sixty million people and tomorrow, maybe about two hundred and fifty million or more.

Nigerians are hard working people, contrary to what most people all over the world think about them. They are loyal and therefore I have always believed that Nigeria is the place to be.

And I believe today more than ever before, that is why I keep on investing.

You know that in Nigeria, we are investing about two to three billion naira annually. Now, we are growing faster and faster.

Nigeria is an investor-friendly country and legislations are ok. If you can stay away as far as you can from politics and you co-operate with government; you do your Corporate Social Responsibility properly, you will have no problem both with the government and with your neighbours.

That is why I feel that our investments are safe in Nigeria.

I must say that over the past ten years, I have discovered the virtues of Nigeria. I have also been to Ghana, Cote De’voire, Gabon, now to Cambodia, and other places, I have come to the conclusion that you have to be in Nigeria, that’s the place where you can make money and that is the place where you can grow and have an impact. I believe in Nigeria.

by Onukwube Ofoelue

60 New Business Africa

14

20

10

8

15 19

26

6

4

21

13

2

23

15

2

11

2

4

2

11

12

2

2

4

23

6

4

11

2

21

12

13

15

23

4

10 4 2 CODEWORD PUZZLE

22

CODEWORD In PUZZLE this4 puzzle each number represents a different letter of the alphabet. Your 6 In this 4 puzzle 15 13 25 12a different 2 9 letter 22 of 4the alphabet.

21 each23number represents Your

challenge is number to workstands out which number stands for which letter. We have given you challenge is to work out which for which letter.

We have given you to start Once you have the code,tofill in the 203 to start23you off. 315 15 16 22 Once youyou haveoff. cracked the code, fillcracked in 7the box below, spell out box below, to spell out the name of the mystery person or organisation.

All the letters of the alphabet the name of the mystery person or organisation. All the letters of the alphabet 10have 8 been 2 included.

15 have 11 3 included.

22 2 6 15 12 13 4 been 14 3 21 6

15

110

13 22

12

15

1

2

10

24

10 11 3 11

12

15

12410 24

10 10

12 11

4

54

13

15

11

34

12

6 15

12 10

123

5

2

4

12 15 2

12

5 24214

152 12

20

15

10

4

4

11 11 11

12 1123 6

21

5

412

2

4

©Crosswords for 17 Fun 2012 – www.crosswordsforfun.com.au 20 20 13 1 20 10 20

1

2

2

12

23

3

4

4

20

5

2

12

6

17

21

25

4

14

1514

16

20

10

178

15

__ 23

19

2

__ 22

12

15 11

__ 14

6 20

26

18 2

11

8

21

22

20

14

20

10

15

21

15

2

4

11

4

4

23

23

6

11

11

21 10

222

13

2 S

8

3

12

2

6

__ 12 23 22 4

9

13

2

2

4

10

4 2

4

13

15

23

415

15

16

23

224

11

20

3

23 22

2

615

15

10

2611

10

810

2

12 15

11

21

12

5

14

12

10

3

20 11

2

15

2

12

1214

1

2

25

13

23

4

2

3

4

5©Crosswords 6 7 8

14

15

16

17

18

1 14

__ 23

__ 2

__ 1

__ 24

__ 23

19

2

20

15

__ 22

__ 2

3 16

23

11

2

12

2

1215 13

__ 4

9

4 16

4 22

1110 11

13

10

6

15

4 12

2

20

2

18

12

4

21

12 15

23

22

4

__ 6

4

__ 2

__ 15

21

7 12

21

3

21

1

22

2

6 10

4

2

__ 2 21 1

4

11

2

©Crosswords for Fun 201221– www.crosswordsforfun.com.au 22 12 5 12 1

3

C

4

13 7 25

3

13

4 12

20

26

21

12

6

6

2 15

4

18

244

21

__ __ 10 9 12232 22224

10

1

25 11 2

O

__ 22 131625

2

14

20 21

19

22

23

10

19 4

23

__ 15 24

14

48

4

6

4

2

723

12

20

5

13

4

4 11

11

4

11 12 13 for 9Fun 10 2012 O – www.crosswordsforfun.com.au C

21

4

22

23

S

5

17

18

__ 16

__ 23

__ 1

6

24

19

__ 22

__ 24

25

8

20

21

__ 1

__ 22

26

7

__ 16

9

10

22

23

S

__ 4

__ 23

11

12

13

24

25

26

O

__ 6

__ 2

__ 22

C

__ 15

__ 1

__ 4

__ 6

__ 2

__ 15

The solution to the above crossword will be in the next issue. The lucky winner will a have weekend treat in a Nigerian Five Star Hotel.

Email your finished crossword to info@newbusinessafrica.com

New Business Africa 61

62 New Business Africa

New Business Africa 63