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Angola, South Africa, Zimbabwe...

Is this change we can believe in?

João Lourenço, Cyril Ramaphosa, and Emmerson Mnangagwa

Bright Ghana

How the country finally turned the lights on

N ° 9 7 • F E B R U A R Y 2 018

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AFRICAN COMPANIES A glimmer of hope JEUNE AFRIQUE MEDIA GROUP INTERNATIONAL EDITION

Algeria 550 DA • Belgium €5.90 • Canada CA$ 7.95 • DR Congo US$ 9 • Denmark 60 DK • DOM 8 € • Ethiopia 130 Birr • France €5.90 • Germany €5.90 • Ghana GH¢ 10 • Italy €5.90 • Kenya KES 410 • Morocco 40 DH • Netherlands €5.90 • Nigeria 800 NGN • Norway NK 70 • Portugal €5.90 • Rwanda RWF 6,000 • Sierra Leone LE 15,000 • South Africa R40 (tax incl.) • Spain €5.90 • Sweden SEK 70 • Switzerland 9.90 FS Tanzania TZS 10,000 • Tunisia 5.4 DT • Uganda UGX 10,000 • UK £4.50 • United States US$ 6.95 • Zambia 48 ZMW • Zimbabwe US$ 4 • CFA Countries 3,500 F CFA • Euro Zone €5.90

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Angola, South Affrrica, Zimbabwe...

Is this change we can believe in?

João Lourenço, Cyril Ramaphosa, and Emmerson Mnangagwa

3

Bright Ghana

Hoow w the country fi finally turned the t lights on

N ° 97 • F E B R U A R Y 2 018

w w w.t he af r i c a r ep o r t . c om

THE AFRICA REPORT # 97 - FEBRUARY 2018

AFRICAN COMPANIES JEUNE AFRIQUE MEDIA GROUP

A glimmer of hope

INTERNATIONAL EDITION

Algeria 550 DA • Belgium €5.90 • Canada CA$ 7.95 • DR Congo US$ 9 • Denmark 60 DK • DOM 8 € • Ethiopia 130 Birr • France €5.90 • Germany €5.90 • Ghana GH¢ 10 • Italy €5.90 • Kenya KES 410 • Morocco 40 DH • Netherlands €5.90 • Nigeria 800 NGN • Norway NK 70 • Portugal €5.90 • Rwanda RWF 6,000 • Sierra Leone LE 15,000 • South Africa R40 (tax incl.) • Spain €5.90 • Sweden SEK 70 • Switzerland 9.90 FS Tanzania TZS 10,000 • Tunisia 5.4 DT • Uganda UGX 10,000 • UK £4.50 • United States US$ 6.95 • Zambia 48 ZMW • Zimbabwe US$ 4 • CFA Countries 3,500 F CFA • Euro Zone €5.90

BUSINESS

06 EDITORIAL No man is an island

58 TOP 500 COMPANIES Time to tighten up With the reversal of fortunes in the commodity markets, and rejuvenated trade partners, things are looking up for African companies. A perfect time for serious reform

08 LETTERS 10 THE QUESTION

BRIEFING 12 SIGNPOSTS 14 PEOPLE Khalifa Haftar, head of the Libyan National Army 16 INTERNATIONAL

18

74 OIL & GAS Rolling with it as the barrel bobs 76 AGRICULTURE Weathering the weather

17 CALENDAR

39

FRONTLINE

COVER CREDITS: FOTOLIA; GEERT VANDEN WIJNGAERT/AP/SIPA; SIPHIWE SIBEKO/REUTERS; CHEN YAQIN/XINHUA-REA

18 SWEEPING CHANGE Southern Africa shows a different face While ‘Liberation-era’ parties have been harangued for failing to deliver prosperity to citizens, serious change is afoot in the south of the continent

TOP

30 LIBERIA Where there’s a will...

36 ANANSI Of bromance and betrayal

COUNTRY FOCUS 39 GHANA Power madness After decades of dumsor the lights are on. Now the new government faces the bill THE AFRICA REPORT

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79 LOGISTICS High flyers and long haulers

ART & LIFE

26 ETHIOPIA Targeting the Tigray Once the kings of the political federation of post-Derg Ethiopia, the Tigrayans are now making do with being the king-makers in an increasingly Oromodominated political scene

34 INTERVIEW Kashim Shettima, Governor, Borno State, Nigeria

78 MINING Bouncing back from the bottom

80 OPINION Can ‘Made in Nigeria’ be financed by foreign investors?

POLITICS

32 SOUTH AFRICA Can he deliver?

77 TELECOMS Data duels

COMPANIES

58

After a bad year for African corporates, it’s the moment to heed calls for ground-up corporate governance reform

82 MUSIC Legends of J-Town From humble beginnings, a mighty music empire has been built, making Jos the epicentre of the Naija sound so popular around the continent, and birthing stars like 2face Idibia and P-Square 86 FILM Reel surreal 87 MUSIC Sista Becky: The only way is up 88 LIFESTYLE Ghanaian author and novelist Ayesha Harruna Attah 89 TRAVEL Gisenyi, Rwanda 90 DAY IN THE LIFE Johannesburg chef Vusumuzi Ndlovu

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THE AFRICA REPORT A Jeune Afrique Media Group publication

BY PATRICK SMITH

57‑BIS, RUE D’AUTEUIL – 75016 PARIS – FRANCE TEL: (33) 1 44 30 19 60 – FAX: (33) 1 44 30 19 30 www.theafricareport.com

No man is an island

T

hat great English poet John Donne, unlike Russia’s Alexander Pushkin, did not have African blood coursing through his veins, as far as we know. Yet his elegiac ‘No Man is an Island’ is a wonderful expression of the Zulu idea of Umuntu ngumuntu ngabantu, meaning that a person is a person through other people.

The short form Ubuntu, meaning ‘I am because you are’, has come to encapsulate a central tenet in South African philosophy.

Donne ends his meditation in a similar vein: ‘Any man’s death diminishes me, because I am involved in mankind. And therefore never send to know for whom the bell tolls; it tolls for thee.’ These parallels between Zulu concepts and European poetry point to a universality in the belief in community and cooperation.

At the same time, it is part of the answer to the vulgar xenophobia and narrow nationalism on display in the US presidency and in the wave of fascist movements in Europe. Not only did the recent White House outburst prompt the African Union to demand an apology, but it led to diplomatic protests from more than 20 African states. It also provoked a strongly worded open letter to the White House from 78 of Washington’s former ambassadors pointing out Africa’s historical and contemporary contributions, as well as the interdependence of all peoples. It is a measure of the current political climate that such a point needs to be made publicly to a US president.

Other liberal commentators pushed back against the latest nationalist myth-making, citing the official data showing that 41% of African migrants to the US have a bachelor’s degree or

CHA I R M A N A ND F O UND E R BÉCHIR BEN YAHMED P UB L I S HE R DANIELLE BEN YAHMED publisher@theafricareport.com E X E CUT I VE P UB L I S HE R JÉRÔME MILLAN

higher – compared with 28% of US citizens as a whole.

Apart from confirming that some of Africa’s best and brightest minds are key to the West’s, and increasingly Asia’s, productive and creative economies, these figures tell a starker story about socioeconomic realities on the continent. Much more will have to be done, not just on the policy level but also in terms of nurturing creativity and innovation.

Two decades ago, the late Claude Ake, one of Nigeria’s foremost political scientists, wrote: ‘The assumption so readily made Much that there has been a failure of development more will is misleading.’ Instead have to his conclusion was: be done ‘The problem is not so much that developto nurture ment has failed as that creativity it was never really on the agenda in the first and place.’ He would, howinnovation ever, be heartened to see that development – industrial policy and leapfrog technologies – is today very much on the continental agenda.

Apart from the effort, particularly in commodity-dependent economies, to diversify and industrialise, negotiations for Africa’s Continental Free Trade Area have moved into the technical stage. A summit to sign the agreement should occur before the end of March. With manufactured goods accounting for 41% of intra-African trade, according to UN data for 2014, a wider free trade area could give a fillip to diversification efforts.

Africa may benefit from opening its trade, just as some regions seek to put up new barriers. Ubuntu.

THE AFRICA REPORT

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M A R K E T I NG & D E VE L O P M E NT ALISON KINGSLEY‑HALL E D I T O R I N CHI E F PATRICK SMITH M A NA G I NG E D I T O R NICHOLAS NORBROOK editorial@theafricareport.com A S S O CI AT E E D I T O R MARSHALL VAN VALEN B US I NE S S E D I T O R MARK ANDERSON R E S E A R CH & P R O D UCT I O N OHENEBA AMA NTI OSEI RE G IO NA L E D I T O R CRYSTAL ORDERSON (SOUTHERN AFRICA) A RT & LI FE ED I T O R BILLIE ADWOA MCTERNAN S UB - E D I T O R S ALISON CULLIFORD ERIN CONROY P R O O F R E A D I NG KATHLEEN GRAY A RT DI R E CT O R MARC TRENSON DESIGN VALÉRIE OLIVIER (LEAD DESIGNER) SYDONIE GHAYEB CHRISTOPHE CHAUVIN (INFOGRAPHICS) CAMILLE CHAUVIN R E S E A R CH SYLVIE FOURNIER P HO T O G R A P HY XAVIER ROUSSEAU SAMUEL BOUAROUA SALES SANDRA DROUET Tel: (33) 1 44 30 18 07 – Fax: (33) 1 45 20 09 67 sales@theafricareport.com CONTACT FOR SUBSCRIPTION: Webscribe Ltd Unit 4 College Road Business Park College Road North Aston Clinton HP22 5EZ United Kingdom Tel: + 44 (0) 1442 820580 Fax: + 44 (0) 1442 827912 Email: subs@webscribe.co.uk ExpressMag 8275 Avenue Marco Polo Montréal, QC H1E 7K1, Canada T : +1 514 355 3333 1 year subscription (10 issues): All destinations: €39 ‑ $60 ‑ £35 TO ORDER ONLINE: www.theafricareportstore.com A D VE RT I S I NG D I F CO M INTERNATIONAL ADVERTISING AND COMMUNICATION AGENCY 57‑BIS, RUE D’AUTEUIL 75016 PARIS ‑ FRANCE Tel: (33) 1 44 30 19‑60 – Fax: (33) 1 44 30 18 34 advertising@theafricareport.com PRINTER: SIEP 77 ‑ FRANCE N° DE COMMISSION PARITAIRE : 0720 I 86885 Dépôt légal à parution / ISSN 1950‑4810 THE AFRICA REPORT is published by GROUPE JEUNE AFRIQUE

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DRIVERS OF VIOLENT EXTREMISM ARE MULTIPLE AND COMPLEX

People to watch, key data and analysis to guide you through the political and economic year ahead

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reports 54 country N ° 9 6 • D E C E M B E R 2 017 - J A N U A R Y 2 0 18

Double issue

E

xploring the narrative from northern Nigeria and Morocco, the two writers [‘Interview: Mahi Binebine & Elnathan John’, TAR96 Dec/ Jan 2018] identify poverty, marginalisation, lack Africa in of education, and hopelessness among the youth as the driving forces of violent extremism in the two regions. Indeed, the drivers and enablers of violent extremism are multiple, complex, context-specific, and have religious, ideological, political, economic and historical dimensions. This is further confirmed by UN Development Programme’s recent report on the ‘Journey to Extremism in Africans’. With few economic prospects or outlets for meaningful civic participation, and little trust in the state to provide services or respect human rights, the study suggests, such an individual could, upon witnessing or experiencing perceived abuse of power by the state, be tipped over the edge into extremism.

Siddharth Chatterjee, UN Resident Coordinator, Kenya

2018

JEUNE AFRIQUE MEDIA GROUP

INTERNATIONAL EDITION

Algeria 550 DA • Belgium €5.90 • Canada CA$ 7.95 • DR Congo US$ 9 • Denmark 60 DK • DOM 8 € • Ethiopia 90 Birr • France €5.90 • Germany €5.90 • Ghana GH¢ 10 • Italy €5.90 • Kenya KES 410 • Morocco 40 DH • Netherlands €5.90 • Nigeria 800 NGN • Norway NK 70 • Portugal €5.90 • Rwanda RWF 6,000 • Sierra Leone LE 15,000 • South Africa R40 (tax incl.) • Spain €5.90 • Sweden SEK 70 • Switzerland 9.90 FS Tanzania TZS 10,000 • Tunisia 5.4 DT • Uganda UGX 10,000 • UK £4.50 • United States US$ 6.95 • Zambia 48 ZMW • Zimbabwe US$ 4 • CFA Countries 3,500 F CFA • Euro Zone €5.90

IS VODAFONE BRACING ITSELF FOR EXPANSION? Vodafone Group’s transfer of 35% of its indirect shareholding in Safaricom to its sub-Saharan African subsidiary Vodacom Group […] increased its ownership in Vodacom from 65% to 70% [‘Vodacom’s eastern pivot’, TAR95 Nov 2017]. With this move, Vodafone Group has consolidated its operations in sub-Saharan Africa into a single entity, with Vodafone Ghana remaining its only standalone business. Is the move simply in line with structuring and simplifying management of the Group’s sub-Saharan African holdings?

Or is this a first step towards

strategically positioning Vodacom as the entity through which it plans to explore possible acquisition opportunities across the continent?

There may be interesting times ahead for the telecom industry.

trading. Currently subject to limited regulation and even fewer reporting requirements, companies engaged in physical commodity trading of oil, gas and minerals should be required to publicly report on their transactions with government entities. The good news is that in 2015, Swiss trading giant Trafigura broke ranks with its secretive peers, and published data on $4.3bn in payments to governments. Others, including Gunvor and Glencore, need to follow suit. Otherwise we will keep waiting for investigative journalists to break scandal after scandal. And we will keep tallying the lost billions, years too late for the citizens of Congo and other developing nations.

Elisa Peter, Executive Director, Publish What You Pay

DRAWING A NEW PERCEPTION OF BLACK

As a ‘black’ artist, it was important to join artists from around the world and add my voice to the Twitter hashtag #DrawingWhileBlack [‘Digital Devine Kofiloto, Arts: Uncaped Crusaders’, TAR95 Nov Freelance telecoms analyst 2017]. It actually makes the world know [Africa], where art was born, although as Africans we don’t get to make as much money out of it as our Western COMMODITY TRADING counterparts. It also helps to send SHROUDED IN OPACITY a message to the world showing what Your article on Gunvor in the Republic black artists are capable of. Now people of Congo [‘Gunvor, the Kremlin, oil will at least know that black people and corruption’, TAR95 Nov 2017] don’t only fight, but they can draw too. is a sharp reminder of the opacity that That’s positive enough for me.

Nana Yaw Pencil, Artist, Ghana characterises international commodity

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To respond to this month’s Question, visit www.theafricareport.com. You can also find The Africa Report on Facebook and on Twitter @theafricareport. Comments, suggestions and queries can also be sent to: The Editor, The Africa Report, 57bis Rue d’Auteuil, Paris 75016, France or editorial@theafricareport.com

#dtmh (don’t touch my hair) became a rallying cry when Lupita Nyong’o and Solange Knowles called out the press for digitally altering their natural hair and braids. But are people reading too much into our hairstyles?

Has natural hair become too politicised?

Yes VICTORIA E. B. WOOD Student, Benjamin N. Cardozo Law School, US

We live in a culture where hair, black hair for that matter, has been unnecessarily overpoliticised and laden with social undertones and subtexts. A few years ago, Olympic gold medalist Gabby Douglas was the subject of online criticism because her hair was ‘in need of a perm’ during the competition. To even think that her hairstyle would be the subject of contention, when a young 16-year-old was competing globally at such a high level, was quite disappointing.

Moreover, many people assume that a black woman who wears her hair naturally is rebelling against the system. While I do not dispute that this has been the case in the past, especially during the civil rights movement, I think that this is no longer true for most black women wearing their natural hair. Personally, my decision to go natural five years ago had nothing to do with a revolution or a desire to make any statement whatsoever, it was more a journey of self-discovery and self-love. Many women today are going natural simply because they are enjoying their natural hair and learning to embrace it. The worth of a woman is not determined by the texture of her hair. She should not be confined to the straitjacket of society’s dictates of what ‘good hair’ looks like.

No YEJIDE ORUNMILA President, African National Women’s Organi­ sation

It’s not too political; it’s popular. While popularity is not necessarily a bad thing, I believe the political connotations are lost behind the frivolity of achieving length or doing the perfect twist hairstyle. In the 1960s, African hairstyles became incredibly political as African people showed their pride and unity with the struggle for black power/decolonisation.

We decolonised the way we looked; opting for afros, African-inspired braiding styles, African clothing and African names. We did all of this as a form of protest and reclamation. Today, for the most part, wearing natural hair is just a healthy styling choice and does not represent any political unity with the African freedom struggle. With that said, I do believe that the verve toward wearing African hair naturally is good. It shows that African women are becoming more comfortable with their natural curl pattern and are learning to prefer it more than chemical straightening. It is unfortunate, however, that a few become evangelists and shame other women who choose to straighten their hair or wear weaves. Obviously, this is counterproductive. What we should understand by now, is that how we choose to wear our hair is an extension of how we feel about ourselves. For some women, weaves and relaxers make them feel good and for others natural hair makes them feel good – and that’s okay. As for me, I prefer to wear my hair naturally as a form of decolonisation.

Not at all. If anything, more needs to be done to change perceptions of beauty and to address the stereotype that natural hair is burdensome and unattractive! @kapere No matter what black women and girls choose to do with our hair, it will always be political. In the decades since the American civil rights and Black Power movements, where black women and girls proudly began to embrace their natural, textured, tightly curled hair, we still face constant scrutiny and criticism for asserting our identities through our hair.

Those who claim that black hair has become too political fail to recognise the constancy of the culture of white supremacy.

Syreeta McFadden Black hair is scrutinised, no matter the style – unless it is ‘Europeanized’: fried, died, laid to the side or removed completely. Our hair [is] antennae to the cosmos.

That connection’s severance is strongly encouraged with fades, ceasars, conks, wigs, extensions (of dubious origins), weaves, lacefronts glued on with chemicals, bleached and toxified.

Michael Nicklette Wearing your hair natural is an affirmation of how God created you.

Naomi Patricia Franklin

THE AFRICA REPORT

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NIGERIA

Atiku re-enters the fray

T

he year ahead promises There is little love lost between the two a gradual ramp-up into a men after time spent together in fully-fledged political maelstrom Olusegun Obasanjo’s administration. as the 2019 elections heave into view.

Atiku has tried to score points With President Muhammadu Buhari against Buhari by pronouncing on likely to run for a second term, the issues such as the violent clashes other big beasts within his party, the between nomads and pastoralists in the All Progressives Congress (APC), have Middle Belt, and the push for stark choices: shelve their ambitions, independence by groups in the Niger fight from within or leave. For Atiku Delta. But he has also been making Abubakar, a former member and many unforced errors, claiming, for financier of the People’s Democratic example, that Buhari was a radical Party (PDP), the choice was exit.

Islamist and was not allowed in the Atiku’s great political strength United States – a claim easily refuted. used to be the grassroots networks that surrounded He will face tough opposition the late president Musa for the privilege of facing Buhari Yar’Adua. Now, these in elections as PDP flag-bearer have been gathered up

by Buhari. And so, lacking Buhari’s strong northern vote base Likewise, his falling out with his – despite being from Adamawa business partner Gabriele Volpi State – Atiku opted to rejoin the allowed the government to attack the PDP in late 2017. sweetheart deal their company has in His reputed wealth has helped ease the energy sector. He also failed to win the turnaround. Although some predict over Bola Tinubu to his cause. Tinubu ‘disgrace and humiliation’ for him is now betting that, with Atiku’s within the PDP, few in the party can defection, the APC pond has become match his national organisation. a little smaller for the big fish that he is.

He will face tough opposition for the But while Atiku’s chances seem slim privilege of facing Buhari in the today – slimmer still if heavyweight elections as PDP flag-bearer. When northern politician Aliyu Gusau Buhari finally releases his attack decides to stand – what if Buhari hounds against Atiku, you can be sure stumbles? What if, for example, Buhari that the current Kaduna State governor, is taken ill? All bets will be off. And the Nasir El-Rufai, will be in the lead. maelstrom will deepen.

In conjunction with GeoPoll, The Africa Report asked 100 Kenyans the question: Is Kenya winning the war in Somalia?

I don’t know 1122.8% Noo 1188.3%

SOURCE: GEOPOLL

Yes Y 68.8% 6

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CONGLOMERATES

$10bn It started with a show of bravura.

Christo Wiese – the billionaire behind the sorry fall of Steinhoff – announced a new Africa-wide retail company that would amalgamate his holdings into yet another formation, Steinhoff Africa Retail. Perhaps it was merely a smokescreen to hide the real woes of Steinhoff, a global furniture and retail giant. South African pension funds and global investors are licking their wounds.

After the KPMG revelations, this fresh accounting scandal in South Africa confirms there is rot in the system.

And that we have not reached the bottom. Naspers, for example, is reputed to have the same business practices as Steinhoff, as well as a link to the Gupta family via MultiChoice.

THE AFRICA REPORT

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SOURCE: BLOOMBERG

ALL RIGHTS RESERVED

WIPED OFF THE VALUE OF STEINHOFF HOLDINGS

LUIS TATO/BLOOMBERG/GETTY

13

PICTURE OF THE MONTH A Kenyan bitcoin miner at the coal face. Despite warnings of a bubble by Kenya’s Central Bank, and most

recently by Citibank, Kenyans have accumulated holdings of bitcoins that some estimate to be worth over Sh160bn, some 2.3% of the nation’s GDP.

“Even

RESOURCE GALLOP A NEW COMMODITY CYCLE? World’s fastest-growing economies in 2018 Real GDP, % change, year on year

2.0

4.0

6.0

India Bhutan Ethiopia Cambodia Bangladesh Guinea Ghana

Myanmar Côte d’Ivoire China, which is set to grow at almost 6% in 2018, has been dogged by rumourrs about massaging its statistics. The province of Inner Mongolia even admitted in January that it inflated industrial data by 40% in 2016. Now, China’s great Asian rival, India, tops the list of fast-growing economies. However, the fact that both these commodity--hungry economies are due to have strong years is good news for resource-rich Africa an countries, while resource-poor Ethiopia’s ranking in third position tells its own n story.

THE AFRICA REPORT

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GWENN DUBOURTHOUMIEU FOR R JA

SOURCE: EIU

Libya

during Mobutu’s era, the army or police never fired close-range shots or threw tear gas in a church. It is unacceptable! ” Vital Kamerh he, a DRC opposition leader, denounced the 31 Decem mber crackown on antiKabila protestters.

14

SPOTLIGHT

Khalifa Haftar From his fiefdom in Benghazi the commander of the LNA is gearing up to follow other strongmen in the region by turning his military successes into political power as he calls for elections to be held soon HAFTAR ON A HIGH 1943 Born in Ajdabiya, Libya 1969 Participated in the coup that brought Colonel Gaddafi to power 1990 Released from prison in Chad in a deal with the US, where he lives for the next two decades 2011 Returned to Libya from exile to take part in the civil war 2017 Announced his intention to run for the presidency

COME SITTLER/SIPA

MARSHAL KHALIFA HAFTAR is not easy to read, agree foes and observers alike. Mocked as an African Don Quixote after he took charge of a small band of fighters following the ousting of Muammar Gaddafi, he has since gained far greater acceptance at the head of the Libyan National Army. Many wonder if, age 74, he is seeking to follow the well-trodden path to dictatorship.

He regularly contrasts the order in the southern and eastern regions of Libya, which he controls from Benghazi, with the militia-ridden anarchy of Tripoli. This is a way of undermining his opponent in the capital, Fayez al-Serraj, the prime minister recognised by the United Nations. “We are doing our best to cooperate with Mr Sarraj,” says Haftar.

“But he is hostage to the militias in Tripoli. It is hard for him to make decisions, let alone execute them.”

On 17 December, a two-year political accord signed in Morocco – which bound together east and west, and recognised Serraj as prime minister – expired. “All the structures that were created by this accord automatically lose all legitimacy,” argues Haftar, while quietly announcing he will be running for the

presidency. “We have to have elections before those elected can decide on a constitution. They have to be held quickly, transparently, and the vote must be obligatory.” And he says that the army – his army – is indispensable to guarantee security for the vote.

Could a new strong man emerge in North Africa? Haftar has had a long military career, he regularly delivers

speeches on security, has a deep hatred for the Muslim Brotherhood and he talks about his conviction that he has been called by the people to save the country. So there are big parallels with his neighbour and ally Abdel Fattah al-Sisi, who has ruled Egypt with an iron fist since 2013.

Promoted to the rank of marshal – like Sisi two years earlier – by the

“This isn’t about chasing people, it’s about fixing situations that proved to be harmful to the public interest ”

“If the country has been returned to a one-party state, we should be told so”

Angolan president João Lourenço defends his decision to remove Isabel dos Santos as the head of state oil company Sonangol amidst a spate of sackings.

Tanzanian bishop Zachariah Kakobe criticises the ruling party from the pulpit, provoking threats to revoke church licences.

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Sometimes a step back is a step forward. Tsvangirai recently said: “We must recognise the imperative that new hands, with the full blessing of the people, must take this struggle and this country forward.”

ASISAT OSHOALA Winning once was not enough for Nigerian Asisat Oshoala, who was named African Women’s Player of the Year for the third time at the Confederation of African Football awards in Ghana.

Uganda opposition leader Kizza Besigye calls for resistance to Museveni’s life presidency after parliament lifts the age limit.

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The South Sudanese government has declared former army chief of staff Gen. Malong to be a rebel, accusing him of being behind a series of recent attacks. Malong has been under house arrest since May.

MORGAN TSVANGIRAI

“You cannot use fraud to achieve good; we now have a worthless constitution” THE AFRICA REPORT

GENERAL PAUL MALONG

SISIKU JULIUS AYUK TABE The president of the selfproclaimed Federal Republic of Ambazonia, along with nine other member of the anglophone Cameroon separatist movement, is said to have been arrested in the Nigerian capital, Abuja.

JASON PATINKIN/AP/SIPA; CAPTURE YOUTUBE; NO CREDIT

JIRO OSE/REDUX-REA

Laurent de Saint Périer in Benghazi for Jeune Afrique

LUNGISA FUZILE Fuzile, a respected director general of the national treasury, has stepped up to fill the shoes of Sim Tshabalala at Standard Bank South Africa, after the latter was announced sole CEO of the banking group.

WALDO SWIEGERS/BLOOMBERG/GETTY; PAULO FILGUEIRAS/UN; TGSPHOTO/SHUTTERSTOCK/SIPA

government in Tobruk, Haftar is now one of the most central figures in the country’s future. Western dignitaries now treat him with respect. In July 2017, France’s President Emmanuel Macron saluted him as commander of the Libyan National Army, supporting the idea that his armed group is not simply one among many Libyan militias. Haftar and Macron appear to get along. “With Macron, things are easier than with [former president François] Hollande,” says Haftar.

Personal security is one of Haftar’s top concerns. He rarely appears in Benghazi, preferring his fortified hilltop camp in Rajmah, some 30km from the city. Access is strictly limited and troops take away all electronics from visitors. He has reasons for his carefulness. In 2014, a car bomb planted by Islamists killed four people at his residence. He also has a bounty on his head worth tens of millions of dollars.

Haftar’s diplomatic alliances in the region include other countries opposed to the Muslim Brotherhood and other Islamist groups. “[They] are responsible for the arrival of terrorists into Libya,” says Haftar.

His allies include Egypt, the United Arab Emirates and, to a lesser extent, Saudi Arabia. Sudan, Turkey and Qatar are considered opponents.

Within sub-Saharan Africa, Haftar relies on Chad and its relatively efficient army, which has supported him for several decades.

More cautious – and neutral – are Algeria and Italy, both of which fear that a military operation by Haftar in western Libya would quickly bring chaos to their front doors.

His recent trips to Moscow have also raised eyebrows.

ALEXANDRE DJOUHRI The Franco-Algerian tycoon suspected of funnelling money from Libya to Nicolas Sarkozy’s 2007 presidential campaign was arrested and released on bail in London. A formal extradition hearing is set for April.

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UNITED STATES

$105.1bn

Jeff Bezos, the founder of e-commerce company Amazon, had a net worth higher than the gross domestic product of Morocco in early January. Online shopping ahead of Christmas made Bezos the richest man ever after Amazon’s stock rose 57% in a year.

4

The United States’ relationship with Karachi hit a new low in January, when President Donald Trump began the year with a Twitter rant against Pakistan.

Trump accused the country of harbouring terrorists wanted by the US; Pakistani officials said Washington was looking for a scapegoat for its failures in Afghanistan.

When the State Department announced that aid – which could amount to $1.3bn this year – would be cut, Pakistan responded with threats to shut down intelligence-sharing and other forms of cooperation. US officials have since sought to row back on Trump’s comments.

STR/AFP

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IRAN

Raging into the new year

Huge anti-government protests swept across Iran, beginning on 28 December and carrying over into January 2018. Mostly young people took to the streets with myriad complaints: President Hassan Rouhani’s failure to deliver on the reforms he campaigned on last year, the country’s economic difficulties and the role of Supreme Leader Ayatollah Ali Khamenei and his hardliner allies in stymieing a political opening. An estimated 25 people were killed in the protests and the government arrested 4,000 protesters.

Analysts say that Rouhani wants to become supreme leader and so is trying not to alienate all of the regime’s Islamist hardliners. He voiced support for the right to protest, but the government is now left grasping for explanations about several young men who died in police custody.

While the government has sought to maintain a somewhat united front in international negotiations on its nuclear programme, the new crisis could see ee internal tensions flare. Should the US decide to withdraw from the nucleear deal signed in 2015 it would most likely play into the hands of the clericss.

NORTH KOREA

Double-axel détente After its missile tests and belligerent tone raised the prospects of war, th he regime in Pyongyang launched a diplomatic offensive in January to lowe er tensions on the Korean Peninsula. This led to the first face-to-face talks between the governments of North and South Korea in two years. Kim Jong-un’s government agreed to send a delegation of figure skaters to the Winter Olympics set to take place in South Korea in February. So far,, the subject of North Korea’s nuclear ambitions has been off the table.

5

CHINA

“If they

are roads, they cannot be one-way ” France’s Presiden nt Emmanuel Macrron dampens concern ns over Bejing’s ‘One Belt, One Road’ programme e, by pointing out infrastructure brings mutual benefits

JACQUES WITT/SIPA

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PAKISTAN

Twitter war

Police let off smoke grenades at student protests

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FEBRUARY

TOTAL AFRICAN NATIONS CHAMPIONSHIP (CHAN 2018) 13 Jan. – 4 Feb.

AFRICA TECH SUMMIT KIGALI 14-15 Feb.

MOROCCO Biennial football tournament organised by the Confederation of African Football. cafonline.com

KIGALI | RWANDA The Rwandan capital hosts startups, angels, strategic partners, and hopefully a few unicorns, in a two-day event. africatechsummit.com

CIAN AFRICA FORUM 2 Feb. PARIS | FRANCE Annual gathering of French investors in Africa. cian-afrique.org

WOMEN IN ENERGY CONFERENCE 19 Feb. JOHANNESBURG | SOUTH AFRICA In its third year, a one-day event ahead of the Africa Energy Indaba. africaenergyindaba.com/womenenergy-conference

INVESTING IN AFRICAN MINING INDABA 5-8 Feb.

NIGERIA INTERNATIONAL PETROLEUM SUMMIT 19-23 Feb.

MARCH

ABUJA | NIGERIA nigeriapetroleumsummit.com

HARVARD BUSINESS SCHOOL AFRICA BUSINESS CONFERENCE 2-4 Mar.

AID & DEVELOPMENT AFRICA SUMMIT 27-28 Feb.

BOSTON | US The theme for this year’s event is ‘Values and Value Chains: Africa in a New Global Era’. africabusinessconference.com

NAIROBI | KENYA Innovation is the focus of debate, with high-level reps from all the major aid agencies giving their input. africa.aidforum.org

POWERING AFRICA SUMMIT 28 Feb. – 2 Mar. WASHINGTON DC | US poweringafrica-summit.com

AFRICA CEO FORUM 26-27 Mar. ABIDJAN | CÔTE D’IVOIRE CEOs meet to discuss ‘Shaping the future of Africa’. theafricaceoforum.com

CAPE TOWN | SOUTH AFRICA www.miningindaba.com

LAGOS | NIGERIA West African international petroleum expo/conference. waipec.com

EGYPT PETROLEUM SHOW 12-14 Feb. CAIRO | EGYPT egyps.com

SIERRA LEONE PRESIDENTIAL ELECTIONS 7 March After a decade in office marked by the crippling economic impact of Ebola, President Ernest Bai Koroma will step down as leader after what is expected to be a hotly contested race. The three major candidates vying for the top post are the current foreign minister, Samura Kamara, who beat over 20 political aspirants to win the flag-bearer position of the ruling All People’s Congress (APC) party; Julius Maada Bio of the main opposition Sierra Leone People’s Party (SLPP), who led a military junta government in 1996; and Kandeh Yumkella of the newly formed National Grand Coalition (NGC), a former UN diplomat who stands a strong chance as the face of a new political force in Sierra Leone.

FANAF 12-15 Feb. KIGALI | RWANDA Annual meeting of the African federation of insurance companies. fanaf.com THE AFRICA REPORT

Bowing out: President Ernest Bai Koroma

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WAIPEC 7-8 Feb.

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Sweeping change Th ruling The li liberation lib ti movements t off th the S Southern th African region have stark choices in this confluence of historic moments: reform governance and fight corruption, or risk losing power and provoking the ire of a new generation of activists

Southern Africa The next revolutionary movement

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ike a series of political detonations across the region, the liberation-movement regimes of Southern Africa are changing their leaders, their credos and their identities. Afflicted by crashing economies and sharpening clashes between the elites and grassroots, as well as between generations, these regimes are dealing with the crises by dropping their malevolent pilots.

Three key states in the region – Angola, South Africa and Zimbabwe – start 2018 with bold plans for national renewal, to refloat their economies and change relations between the rulers and the ruled.

They pose a conundrum: can a liberation party reform itself without surrendering power? Mozambique, whose ruling party blocked a bid by Armando Guebuza for

a third term, has been fighting a losing battle over reform for a couple of years.

The scourge these countries face is summed up by the South African term ‘state capture’. It was coined as an explanation of how a group of companies controlled by the Gupta brothers, Ajay, Atul and Rajesh, was able – in league with multinational entities, such as consultants McKinsey, auditors KPMG and IT specialists SAP – to win privileged access to state contracts through political ties.

On 16 January, South Africa’s National Prosecuting Authority announced it was seeking to recover some R50bn ($4bn) from the Guptas and their international partners. Two years ago, Zimbabwe’s former president Robert Mugabe announced his country had lost more than $12bn in diamond revenue.

These are the tip of a steep and jagged iceberg that has gouged billions from budgets for health, education and housing. The wilful destruction of state institutions, such as the South African Revenue Service, and the undermining of judicial and investigative agencies have immediate political and social consequences.

With remarkable resilience, independent spirits in these organisations and in wider society have been fighting back. Figures such as Thuli Madonsela, South Africa’s former public protector, and Rafael Marques, Angola’s foremost investigative journalist, have taken on their countries’ ruling classes in the face of the direst personal threats. Opposition politicians in Zimbabwe earned the unhappy distinction of being one of

WIKUS DE WET/AFP

In South Africa, as in Angola and Zimbabwe, a wind of change has come

20 FRONTLINE | SWEEPING CHANGE

2,440

second-biggest bank, Mnangagwa can be said to ‘get business’. Critics say he gets it too much.

Historically close to Beijing, where he and General Constantino Chiwenga met prior to launching the military action to oustMugabelastNovember,Mnangagwa is gambling on winning enough Asian backing, along with cash from grudging Western governments, to lift the economy before national elections this year.

Brought up under the economic nationalism ofRhodesiangovernments and with military training in China, Chiwenga and Mnangagwa have political instincts that suggest an awkward but authoritarian marriage of ideas. Mnangagwa has been big on promising jobs and attracting foreign investment but has much less to say about political rights and free elections. Talk of reconciliation after the violence used by ZANU-PF against dissidents, let alone atonement or recompense, is off the official agenda.

This is where both Angola and Zimbabwe could benefit from the Ramaphosa effect and its hoped-for boost to civil society and campaigners against state capture. The synchronicity of political change in all three countries will spill across national boundaries. If the ANC’s reformers can consolidate, 2018 could prove to be the year when South Africa resumed its role as regional, if not continental locomotive.

Patrick Smith in Johannesburg

A smiling Ramaphosa snaps back as photographers capture his reaction to winning the ANC vote

MUJAHID SAFODIEN/AFP

need to confront the corrupt networks that have taken over party structures.

To do that, Ramaphosa will be buoyed by a wave of collective goodwill, un­ equalled since Madiba’s ascendancy.

For the new presidents of Angola and Zimbabwe, Lourenço and Emmerson Mnangagwa, the footing is less sure.

Lourenço took over the presidency from José Eduardo dos Santos with almost monumentally low expectations. “His greatest achievement MORAL FORCE would be not being Dos Under the tutelage of Santos,” mused an Angolan Mandela and the African official. Since then ‘JLo’ or National Congress (ANC)‘the Terminator’ (see page led government, South 24) has confounded those Africa built a world-class modest hopes. His anti­ graft campaign has won set of institutions – to run the country, but, above all, credibility as he moves Number of delegate to overcome the searing to free the economy from votes Cyril inequities and injustices the grip of Dos Santos’s Ramaphosa won to be of apartheid and colonipatronage networks. elected the new leader alism. From the liberation Unclear for now is how of the ruling African of Africa’s most modern much structural change National Congress, economy should have Lourenço plans. Angola narrowly beating flowed a new era of freeis decidedly a freer place Nkosazana DlaminiZuma’s 2,261 votes dom and development. these days but the execuFor several years, free tive presidency remains South Africa’s moral force resounded all-powerful, particularly as it enjoys the unquestioning support of a purged across the continent, with Madiba security system. Lourenço’s allies say calling out dictators, such as Nigeria’s much more change is coming, initially Sani Abacha, as well as Western double standards. Meanwhile, deputy president aimed mainly at economic efficiency.

Thabo Mbeki worked with his peers to Fixing the economy and opening build a network of pan-African instituit to business are also the mantras of tions to promote economic and political Mnangagwa’s ZANU-PF Mark II. One integration as well as accountability. of Zimbabwe’s richest men and a South Africa’s new ethos, grounded leading shareholder in the country’s in its own painstakingly negotiated transition out of racial dictatorship, found relevance in polities as diverse as Northern Ireland and Palestine.

That the new leader of the ANC (see page 32), Cyril Ramaphosa, led negotiations for his country’s transition and the writing of its progressive constitution offers a hopeful sign. Confidants of Ramaphosa insist he was never reconciled to a business career, despite the millions of dollars it brought him. “Not for a moment did he stop following the political news,” a colleague said. “On one level, I think he found business and companies rather boring.”

Ramaphosa’s next move will be anything but boring. As new president of the ANC, he must lead efforts to remake the party and government, knitting together its rival factions. That push for unity has to be balanced against the SOURCE: ELECTORAL COMMISSION OF SOUTH AFRICA

the most persecuted – physically, psychologically and economically – dissident movements in the world.

That these campaigners and activists now sense a moment of change, even revolution, is hugely significant. The last great inflection point for Southern Africa was Nelson Mandela’s swearing-in as his country’s first democratically elected president in May 1994. “Let freedom reign” was his celebrated call to the continent.

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Zimbabwe You say you want a revolution

The forces that replaced Mugabe have yet to show they can turn around the economy, or a desire to strengthen democracy

W

PHILIMON BULAWAYO/REUTERS

hen tens of thousands of Zimbabweans, cheered on by the army, marched for political change last November, it seemed like a rebirth of the country. Days later, Robert Mugabe resigned after 37 years in power, prompting mass jubilation and all-night street parties. But in the cold light of the new year and amid rumbling economic hardships, Zimbabweans are debating know this is a critical moment in our the prospects for palpable change. national history, but equally we know it Was the exit of Mugabe and the was about settling internal politics withcoronation of Emmerson Mnangagwa in ZANU-PF.” With a bible on his desk, an elite pact? Or just a coup d’état Chamisa seizes an analogy: “The Red dressed up in the handy euphemism of a ‘military-assisted transition’? It was Sea has parted, but we have not crossed the River Jordan to reach Canaan.” neither, according to Chris Mutsvangwa, special adviser to President Untroubled that his parMnangagwa and former ty was not offered any posts in the new government, leader of the liberation-era Chamisa is focusing on war veterans, who piloted the mobilisation against elections: “We want them Mugabe. “We are revoluto go ahead with elections as scheduled between 22 tionaries, and this was a July and 22 August, but we revolutionary moment,” want parliament to pass he tells The Africa Report. all the reforms agreed in “It was a counter-coup to defeat a bid to hijack our the constitution,” he says. movement.” With an inFREE AND FAIR VOTE triguing blend of Marxism Amount former and free-market economChief among these is a law president Robert ics, Mutsvangwa argues guaranteeing the indeMugabe is set to pendence of the electoral thatMugabe’sdysfunctionreceive as part of al regime and nationalist commission. The MDC a government-funded posturing were handing also wants an extended retirement package the country to multinationand free electoral registrafor former leaders. tion to produce a credible al corporations on a platter.

Other perks include 20 staff, a car fleet Mnangagwa’s pledge of and verifiable voters’ roll. and private air travel. “a new democratic era” at Just as important will his inauguration faces a be the role of the police critical test with the holding of elections and army in the elections. Opposition in August. The deputy president of the concerns were piqued by Mnangagwa’s opposition Movement for Democratic appointment of General Engelbert Rugeje as ZANU-PF’s national election Change (MDC), Nelson Chamisa, says commissar. Rugeje was one of the top his party hopes for change but harbours no illusions about the new order: “We officers who ran ZANU-PF’s bloody SOURCE: GOVERNMENT OF ZIMBABWE

$10m

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Laughing out loud: Mnangagwa (R) and Chiwenga (L)

fightback after Morgan Tsvangirai beat Mugabe in the first round of the presidential elections in 2008. According to Ibbo Mandaza, chairman of the SAPES Trust think tank, “that’s when the real military coup happened […]. After that, Mugabe was a prisoner of the military.

They kept him in power and both sides knew it. It was pretty clear that the army’s action against Mugabe in November had been planned long in advance.”

That could mean a strong role for the military in the elections. According to a leaked report from the Central Intelligence Organisation (CIO) seen

by Reuters news agency: “The generals have tasted power and are not willing to let it go. They want to enjoy the fruits of removing Mugabe from power.”

After General Constantino Chiwenga rolled up at the ZANU-PF congress with a 10-vehicle convoy in December, he was named vice-president. Mnangagwa appointed another three top military officers as cabinet ministers. “The generals want Mnangagwa to run for one or two terms before handing over to Chiwenga,” the CIO report concluded.

That plan assumes that President Mnangagwa can keep it all under control, revive the economy and sail through elections. For now, that is a leap of faith, according to a veteran ZANU-PF activist: “Politics in Zimbabwe can still spring plenty of surprises.”

Patrick Smith in Harare

22 FRONTLINE | SWEEPING CHANGE

A T. Magaisa Alex

Lec cturer in law, former adviser to Morgan Tsvangirai @wamagaisa

With Mugabe gone, now comes the hard part for the MDC

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imbabwe’s main opposition party, the Movement for Democratic Change (MDC), faces a stern test when the country holds a general election later this year.

During the past two decades, the MDC has faced rigged elections, political violence and two big splits that have threatened its existence.

But the party has survived under the guidance of its iconic leader, Morgan Tsvangirai. It remains the biggest threat to the ruling Zimbabwe African National Union-Patriotic Front (ZANU-PF).

Things have changed since the early days of promise and hope for change at the beginning of the century. Frustration and fatigue had set in after controversial defeats to ZANU-PF. Now, the MDC has to deal with a new ZANU-PF under the leadership of President Emmerson Mnangagwa.

For optimists within the opposition, this is a moment to seize with both hands. The street has felt its power in helping to eject former president Robert Mugabe. Support for Mnangagwa is low, compared to Morgan Tsvangirai, who has won national elections in the past. And a recent conference held in Bulawayo on the Matabeleland massacres of 1983-1987 drew in tens of thousands of viewers on a Facebook live stream – something unheard of while Mugabe was in power.

But the newly ‘rejuvenated’ ZANU-PF poses several problems to the opposition. First, the departure of Mugabe does not mean democratic space has suddenly expanded – small conferences notwithstanding. Mugabe was replaced by a cabal of politicians and securocrats who were effectively the power behind Mugabe. By many accounts, this was the very same cabal that stopped Tsvangirai and the MDC from taking power in the election of 2008, when a wave of violence was unleashed against the opposition.

If they stood in the MDC’s way in 2008, what will stop them from doing the same in 2018? Perhaps the need for international capital and the reform movement under way that stretches from Angola through South Africa and into Zimbabwe. But many

doubt that the new administration that grabbed power from Mugabe can seriously entertain a transfer of power anytime soon. How can people who grabbed power in such a blatant fashion be prepared to give it away just nine months later?

Secondly, there are signs that the state has become ever more militarised since the new administration took over. Mnangagwa’s cabinet has a deep military hue, with more army men than any of Mugabe’s cabinets. Among the new entrants is the former commander who led the military action against Mugabe, General (retired) Constantino Chiwenga. He is one of the two vice-presidents, and critics argue that the government is a military regime with a civilian façade.

Finally, while many Zimbabweans welcomed the departure of Mugabe, the method that was used also compromised Zimbabwe’s democratic system

If this cabal stood in the MDC’s way in 2008, what will stop them doing the same in 2018? because it involved subversion of the constitution.

That genie is now out of the bottle and a precedent was created that will haunt future governments.

Beyond external challenges, the MDC also must deal with its financial viability. In the early years, there was much goodwill and the party was awash with funds. Now, the party is in a weak financial position. Funds were misused, and there has been donor fatigue. Some in the international community have begun to look at a reformed ZANU-PF as a better horse to bet on.

More serious still is Tsvangirai’s chronic illness.

The veteran MDC leader is suffering from colon cancer. Recent photos of Tsvangirai show that the cancer and the treatment regime have taken a toll on his physical state. He is not the same man, and there are serious doubts that he can withstand the rigours of an election campaign in his current state.

The sensible thing is for him to take a break in order to concentrate on his recovery. However, this THE AFRICA REPORT

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has also deprived the party of leadership and thrown it into chaos as subordinates position themselves to succeed him. Unless these succession battles are handled carefully, they could lead to another split in the party that could weaken it further.

GLEZ

It is important for the MDC to accept the reality of its leader’s illness and that he might not be available as its candidate. Some loyalists fear that losing Tsvangirai’s leadership would be fatal to the party’s prospects. They regard him as the ‘face of the struggle’ or ‘the brand’ without which the party would crumble. They forget that the brand needs Tsvangirai alive, fit and healthy.

The irony is that a party that promised change from ZANU-PF politics is now mired in the same old ZANU-PF politics of the ‘indispensable’ leader.

Nevertheless, there are slight opportunities.

The party remains popular in its traditional strongholds. Like Mugabe, Tsvangirai has become something of a cult figure among his supporters. The succession battle must be carefully handled to avoid another debilitating split.

In the absence of a strong opposition, the economy continues to pose the greatest challenge to ZANU-PF. There was much hope after Mugabe left office, but this is dissipating as the economy continues on a downward spiral. This means the MDC still has a platform upon which to sell itself as a credible alternative.

The party that promised change is now mired in the politics of the ‘indispensable’ leader The biggest opportunity, however, is that the Mnangagwa administration is in desperate need of legitimacy. After grabbing power, it is keen to get a proper mandate. The goodwill it has locally and internationally will be easily lost if it resorts to Mugabe’s old tactics.

Mnangagwa seems to understand the need to create grounds for legitimacy. His recent visit to see the ill Tsvangirai and offer him his pension from his days as prime minister in the government of national unity earned him a lot of credit.

State media have started to show tolerance to the opposition leader and his party. It is unclear whether this newfound tolerance is genuine, or it is because the traditional opposition is no longer seen as a serious threat? Nevertheless, the opposition could use this desperate search for legitimacy by pushing for democratic reforms.

Finally, it remains strategic for the opposition parties to be united under the leadership of Tsvangirai’s MDC. Tsvangirai had managed to cobble together a loose but potentially formidable coalition with his old comrades Welshman Ncube and Tendai Biti, who had previously split from the party. However, if Tsvangirai were to leave, this alliance could be threatened unless his replacement supports it.

Thokozani Khupe, Tsvangirai’s elected deputy, has openly rebelled on the unity issue. This almost split the party last year. She sees herself as the political godmother in Matabeleland and does not believe there is reason to allocate seats to Ncube’s group in the region. The sooner they confront this question, the better. ZANU-PF might call an early election while the MDC is dithering over the leadership question.

24 FRONTLINE | SWEEPING CHANGE

Once in the driving seat, Lourenço soon showed that he meant business

Angola How far will Lourenço’s new broom sweep?

In his first six months in the presidency, João Lourenço has stamped his authority on the country’s leadership with his intent to eradicate corruption and monopolies

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nown as ‘the Terminator’ for his relentless sackings of old-regime figures since his election last August, President João Lourenço has captured people’s imagination with the hope that he can move the country on after three decades of war and economic depredation. Lourenço’s November 2017 sacking of Isabel dos Santos as chair of Sonangol, the state oil company, has been his most popular move so far. But this was a job and an industry in which Isabel never had interest. It was yet another position handed to her by her father, former president José Eduardo dos Santos. When Dos Santos stepped down and Lourenço came to power, removing Isabel was a key decision for the new president to take control of the

economy and to show the electorate he meant business. It worked.

Lourenço insists there is no witch hunt, casting the other sackings and reshuffles as part of a wider reform strategy. “This isn’t about chasing people,” he told journalists in Luanda on 8 January. “It’s about fixing situations thatproved tobeharmful to the public interest.”

For many Angolans, the former first family, particularly Isabel – Africa’s richest woman, with a fortune estimated at $2.4bn – personifies the problem. She controls Unitel, Angola’s biggest cellphone company, owns substantial shares in Angolan and Portuguese banks, has stakes in cement companies, supermarkets and Portugal’s Galp Energia, to name but a few of her holdings. When asked

GEERT VANDEN WIJNGAERT/AP/SIPA

SOURCE: BLOOMBERG, BANCO NACIONAL DE ANGOLA

Expensive peg Official kwanza exchange rate (R) Angola’s net reserves on 30/11/17 (L) US dollars (billion)

Kwanzas per US dollar

30

160 140

25

120

20

100 15 2015

2016

2017

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about her sacking, she told reporters that it was a normal decision: “I think there was a change in vision of where to take the country […]. I’m not a politician, and my focus is on building businesses.”

For now, Isabel’s business role is secure.Sheisnotbeinginvestigatedandher personal funds have not been frozen. On Instagram, she posts family snaps from the Bahamas, nightlife pics from Lisbon and thoughts like: “What makes you rich is not the money you have in your bank account, but the joy and peace that you have in your heart.”

According to a senior official in the new government, Isabel has few supporters at home: “I think she’s lost it a bit. She’s a bit misguided. […] She’s second-guessing the president, behaving like a spoilt brat.”

Neither does that official think Lourenço is just playing to the gallery. “I don’t think it’s about nothing. Politicians will have a test of that through the budget approval process in parliament […]. The opinions shared will be a good indication whether this is populism or real change about the way business is done.”

Already,there has beensome criticism, the official says, about budget allocations.

The Casa de Segurança (presidential security department) still gets a large share when compared to health and education. In fact, Casa de Segurança, with its corps of engineers and a city cleaning company, has been turned into a state within the state.

ON WITH THE PLAN

Another big test of Lourenço’s intentions will be priorities in the Plano Desenvolvimento, the five-year developmentplanthatofficialsarenowputting together. “You have a [returning central bank governor José de Lima] Massano and a Ricardo [Viegas D’Abreu, secretary to the presidency for economic affairs] who are worried about inflation and THE AFRICA REPORT

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NEW FREEDOMS

Along with the rejigging of state companies and contracts, there has been an opening up: Angola’s ‘glasnost’. People are freer to speak out about the former president, and it shows Lourenço is willing to risk allowing more public debate.

That could be smart politics, another Luanda official says. “If [Lourenço] allows this to happen, he will get more people who were disenfranchised, unhappy, dissatisfied with the former regime and [they] will be more supportive of him.”

Few are clear on where all this will lead politically. Last year, former president Dos Santos said he would retire from activepoliticsin2018–meaninghewould give up being leader of the ruling party.

Asked about that timetable, Lourenço seemed fairly relaxed in January: “It’s up to him [Dos Santos] to say if he will fulfill that commitment. I don’t think we have reasons to be impatient.”

It is unclear whether Lourenço wants to be leader of the ruling party as well as president, or whether the two roles would be split. Meanwhile, his ‘senhor normal’ image – queuing to use a cash machine, cutting down on motorcades and talking to people on the streets – is tremendously popular. But that will only last if the new government’s style translates quickly into more and better jobs, schools and clinics.

Honoré Banda

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Mozambique Haunted by Guebuza’s legacy President Nyusi has not yet used his presidency to move on from the worst practices of his predecessor

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he winds of change blowing across Southern Africa seem to have left Mozambique untouched – for now. The ruling Frente de Libertação de Moçambique (Frelimo) party offers a classic narrative in a region packed with liberation-era parties: there was an independence struggle and war against a colonial power, there was an initially promising beginning that curdled into civil war, and an eventual return to peace, though one mired with ever-morecorrupt leaders.

Frelimo has not, however, taken the next step towards renewal while in power that optimists are seeing in Angola, South Africa and Zimbabwe, even if political allies of respected former president Joaquim Chissano were able to prevent a third presidential term for Armando Guebuza in 2014.

At the end of Guebuza’s term, the government signed three dubious loans that totalled more than $2bn.

That debt will cripple Mozambique’s political and economic future for years to come. President Filipe Nyusi was defence minister at the time, and one of the loans was used by

Unlike Lourenço, Filipe Nyusi has not bitten the hand that anointed him

intelligence services to buy arms.

Though Guebuza’s influence has been lessened, many of his lieutenants are still around.

Nyusi’s decision to sack four ministers in December may show signs of his resolve. One of those ejected – agriculture minister José Pacheco – was reputed to have been involved in unsavoury logging practices.

But, equally, the reshuffle may not point in a positive direction. Former energy minister Letícia Klemens, responsible for a bright spot in the economy – the huge gas finds off the coast – was said to be a competent technocrat and keen to work in the national, rather than the party, interest.

Her predecessor, Pedro Conceição Couto, with a reputation for being incorruptible, lasted only a year and was sacked just a month before Italian oil giant Eni signed a contract worth tens of billions of dollars. The discovery of 85trn cubic feet of gas in 2009 – enough to power Britain, Germany and France for two decades – is perhaps one reason why political reforms have been so hard to come by.

Nicholas Norbrook

MAURO VOMBE/XINHUA-REA

relationships with foreign banks and allowing oil companies to access hard currency for investments. But they need equally capable minds in the development sector,” adds the official.

Lourenço has also made promises about opening up the telecoms industry.

Thiswouldcreatecompetitionfor Isabel’s Unitel and reduce prices. The test will be in the management of the tenders and which Angolan partners are picked.

The January firing of José Filomeno ‘Zenú’ dos Santos, another presidential scion, from his job running the sovereign wealth fund was hardly surprising, given accusations about the mismanagement of the $5bn fund. The government has appointed a supervisory committee to run the fund after a consultant’s report produced a detailed critique of it. The government is yet to say what action, if any, it will take against Jean-Claude Bastos de Morais, a Swiss-Angolan entrepreneur and friend of Zenú, whose firm Quantum Global made millions of dollars from handling the fund’s assets.

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ETHIOPIA

Targeting the

The next generation of the Tigrayan People’s Liberation Front faces a less certain future

Tigray

27

T

The party of former premier Meles Zenawi is under unprecedented pressure as the country’s largest ethnic groups begin to bristle under Tigrayan dominance

ORHAN KARSLI/ANADOLU AGENCY/AFP

By Tom Gardner in Addis Ababa and Mekelle

he stern face of Meles followed, interethnic clashes broke out Zenawi bears down from a between Oromos and Somalis, killing at least 61 people. giant billboard on a hillside overlooking Mekelle, the Even in Tigray, where politics lofty cobble-stoned capital since 1991 has been most quiescent, of Tigray Province in northern Ethiopia. anti-government noises are growing Meles, a former prime minister who died louder. Like elsewhere in the counin 2012, is a giant in his home region, and try, locals in Mekelle complain of his portrait – emblazoned on buildings, government corruption, criticise the buses and billboards – can be spied heavy-handedness of the security almost everywhere. forces and the state’s intolerance of It is an apt symbol. For almost three dissent, and demand greater regional decades, Tigray has been “dominated by autonomy. “The magic of Meles is being the thinking of one man,” says Mahari questioned,” an academic at Mekelle Yohannes, a prominent local intellectual.

University tells The Africa Report under Ever since Meles and his battle-hardened condition of anonymity. “With that man comrades in the Tigrayan People’s gone, Pandora’s box was opened.”

Liberation Front (TPLF) swept to pow‘UNCHARTED WATERS’ er in 1991, overthrowing the Marxist The EPRDF now finds itself at perhaps regime known as the Derg, his influence the most critical juncture in its 30-year over the politics of the region – and the country – has been titanic. history. Relations between the TPLF and its sister parties – the Amhara National The TPLF assumed the role of vanDemocratic Movement (ANDM), the guard party in the Leninist-style multiethnic coalition known as the Ethiopian OromoPeople’sDemocraticOrganisation People’sRevolutionaryDemocraticFront (OPDO)andSouthernEthiopianPeople’s (EPRDF) that took over the country. By DemocraticMovement–haveneverbeen the early 2000s, all power flowed from more fractious. “These are uncharted waters,” says Hallelujah Lulie, a political Meles. After a hotly contested election analyst in Addis Ababa. in 2005 – in which the opposition made significant gains – political space was At some – still unconfirmed – point closed ever more tightly, while Meles this year, the four will convene in consolidated ever greater control in his Mekelle for the EPRDF congress, more own hands. After his sudden death from than two-and-a-half years after the last cancer, Meles was replaced byHailemariamDesalegn,a The OPDO, which has long southerner from one of the been seen as TPLF’s puppet, TPLF’s coalition partners. has reinvented itself However, the centre of power never really shifted. The one. They are aiming to resolve their TPLF elite still occupies key positions in differences, and the TPLF hopes to the military and the intelligence services, holds great sway over party doctrine and maintain its grip on power. owns significant chunks of the economy.

Its trickiest relationship is now with But this is slowly changing. Ethiopian the OPDO, which has long been seen as politics has been in turmoil ever since the TPLF’s puppet but which under new anti-government protests erupted in leadership last year reinvented itself as something almost akin to an opposition 2014, culminating in the imposition of party. In late 2016, the OPDO elected a nine-month state of emergency in late 2016 after hundreds of protesters were its own leaders for the first time, rather than accepting those handpicked by killed by security forces and thousands the central government. This resulted more were arrested. Last year, demonstrations resumed in towns across in the elevation of a relative unknown, Oromia, home to the country’s largest Lemma Megersa, to the posts of party ethnic group, the Oromo, who have long chairman and regional president. seen themselves as marginalised by the The vote was seen by many as a viccentral government. At the same time, tory for the ethnonationalist wing of ethnic violence – especially between the party, and Lemma has proceeded Oromos and Ethiopian Somalis – escalatto become something of a folk hero ed sharply. The military killed at least 16 among the Oromo, championing popuOromo people during anti-government list policies and winning the support of protests on 14 December. In the days that prominent anti-EPRDF activists

Lemma Megersa

Leader, the Oromo People’s Democratic Organisation

Organising the Oromo

U

ntil recently, few people Lemma and his team have worked outside of Oromia, Ethiopia’s hard to reform the OPDO and the largest and most populous regional administration. He promised region, had heard of Lemma an “Oromo economic revolution”, Megersa. But by the beginning of 2018, picked fights with foreign investors, the clamour around the 47-year-old replaced more than 8,000 regional had turned him into a household name. officials and embarked on a campaign He is now one the most popular against smugglers and “rent seekers”.

Ethiopian politicians since the Sceptical activists, especially among governing Ethiopian People’s the vocal Oromo diaspora, have been Revolutionary Democratic Front largely won over. OPride, an influential (EPRDF) came to power 26 years ago.

Oromo website based in the US, argued After the central government at the end of 2017 that “Lemma declared a state of emergency in is already looking like Ethiopia’s new response to mass protests in October leader. He has the charisma. He has 2016, the then little-known speaker the eloquence. He has the base.” of the Oromia State Assembly was elected chairman of the regional ruling He also won admirers in other party and president of the Oromia regions, especially Amhara, where National Regional State. on a recent visit he ditched the polarising This moment’s significance was language of Oromo nationalism underappreciated at the time: for a more inclusive pan-Ethiopianism, the Oromo People’s Democratic declaring that a united Ethiopia Organisation (OPDO), one of the was to him an “addiction, like crack”. four parties that make up the EPRDF, By the end of 2017, Lemma had had for the first time in its history “unprecedented control” over the chosen its own leadership without OPDO, according to Hallelujah Lulie, outside interference. a political analyst. Many are now talking Young, articulate and confident, Lemma burst Many outside of Oromia blame onto the national Lemma for an uptick in political scene in 2017 harassment of non-Oromos by distancing himself from his coalition partners and adopting the rhetoric about him as a potential successor of street protesters from to Hailemariam Desalegn, the embattled his home state. “Why persist with costly prime minister. That would make him street protests when we have made Ethiopia’s first Oromo national leader. your demands our own?” he said in Despite the widespread goodwill a recent speech. “If we failed to deliver in Oromia, many in other regions blame using existing legal and institutional him for the recent uptick in harassment mechanisms, I and all of us here will of non-Oromos. “We don’t trust him,” join you in the protests.” says Kindeya G. Hiwot, dean of Mekelle Such words raised the hackles University in Tigray Region. of some observers, who noted that Lemma’s challenges will include Lemma was by no means a political stabilising Oromia and allaying the fears outsider. He had been part of the of those in other regions. “Ethiopian region’s security apparatus for more people are always looking for a hero,” than a decade, inside the regional says Aregawi Berhe, a former leader government since the 1990s of the Tigrayan People’s Liberation and a member of the EPRDF for Front. “But it doesn’t last long.”

T.G. his entire political career.

JONATHAN FONTAINE

28 POLITICS

in the diaspora. After the military killed 16 Oromo protesters in December, Lemma was quick to condemn those in command: “We do not know who ordered the deployment of the military.

This illegal act should be punished.”

Lemma appeared to win his first significant concession from his EPRDF coalition partners on 3 January, when Prime Minister Hailemariam delivered the surprise, though highly equivocal, announcement that political leaders in prison would soon be released and pardoned. That is at least a partial acquiescencetodemandsofOromoprotesters.

The OPDO has also been jockeying for a greater share of power inside the EPRDF. “The EPRDF cannot control the country without the OPDO,” says Shimelis Abdissa, regional minister of urban development and a young member of the new OPDO leadership, from his office in Addis Ababa, the federal capital. “Without the Oromo, there is no Ethiopia. We have to play a proper role.”

In November, he and other OPDO leaders – including Lemma – visited the city of Bahir Dar in the Amhara region for a historic meeting with their counterparts in the ANDM. This was an unprecedented demonstration of unity between Ethiopia’s two largest ethnic groups as well as a flexing of political muscle. For much of their history, the groups have not always seen eye to eye.

Together, they make up over two-thirds of the population; the Tigrayans comprise little more than 6%. “It certainly has got the TPLF worried – very,” says a government adviser in Addis Ababa. “[The meeting] was clearly aimed at the Tigrayans.”

SEATS AT THE TABLE

Shimelis insists that the OPDO is not seeking specific positions in the federal government or in the EPRDF executive. But Oromo activists, as well as ordinary Oromo citizens, make it clear that they expect an Oromo to succeed Hailemariam as prime minister – sooner rather than later. They also want the TPLF to cede control of the security forces, by replacing senior Tigrayan military and intelligence officers with Oromos.

Meanwhile, OPDO leaders have suggested that the make-up of the 36-member EPRDF politburo should be proportional to the size of each region’s population – rather than nine members for each party, as it is now.

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between 1991 and 2001. “We don’t see any agenda of change.”

Getachew Reda, one of the newly elected members of the committee and a former federal minister of communication, also cautions against overoptimistic interpretations. “Reform is too strong a word,” he tells The Africa Report over breakfast in a Mekelle hotel. “We don’t have a problem with policies. First and foremost, we aim to bring TPLF back to its progressive roots. This required a shake-up within the leadership.”

ZACHARIAS ABUBEKER/AFP

SPATE OF ATTACKS

Demonstrations resumed in

SOURCE: ETHIOPIA GOVERNMENT

senior Ethiopian political analyst and towns across Oromia last year, as ethnic violence escalated consultant for a foreign embassy. “It’s all about having their guys in Arat Kilo Some, such as Zeray Hailemariam, an [the seat of federal government], and Addis Ababa-based political analyst and they think this is their time.”

The big question is how the TPLF, as former journalist with good connections well as the other member parties, will to the TPLF, welcome the changes. “This respond to these demands. “The others is transformative,” he says. “It is the most are worried. We are pushing all the significant reform for years.” He and parties to follow us – or move against us,” othershopeaunitedTPLFleadershipcan recover from the bickering and factionsays Shimelis, who argues that the TPLF alism that characterised the years since has been forced to change internally in response to pressure from the newly Meles’s death, and shore up the party’s position at the head of the coalition. independent and assertive OPDO. “We forced them to look to themselves.”

Critics, however, are less sanguine.

Indeed, the TPLF executive committee “Things will continue as businessspenttwomonthsinamarathonmeeting as-usual,” says Gebru Asrat, a former in Mekelle late last year, engaged in member of the TPLF executive comwhat was described as a process of ‘deep mittee and regional president of Tigray renewal’, culminating in the overhaul of its own leadership in early December.

Ethnically based regional Most significant was the ejection states of Ethiopia from the politburo of Azeb Mesfin, Tigray Meles’s wife, in what was widely seen as a victory for the reformist wing of Benishangul Gumuz the party over the more conservative Afar custodians of Meles’s legacy. Abay Dire Dawa Woldu, the party chairman, was reAmhara Addis placed by Debretsion Gebremichael, Ababa Harar a steely and soft-spoken technocrat considered by many to be the most Somali Oromia powerful TPLF figure in the federal government today. In a candid, Gambella remarkably self-flagellating statement released by the new politburo SNNPR after the meeting, Meles’s name was (Southern Nations, Nationalities mentioned only once. and Peoples’ Regional States) THE AFRICA REPORT

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Getachew says the TPLF is relaxed about the prospect of an ascendant OPDO and would be happy to see an Oromo prime minister. Like many Tigrayans, however, he disputes the notion that the TPLF has any more power than the other coalition parties and notes that the OPDO today has the most government ministers.

Other TPLF supporters have expressed reservations about the new OPDO leadership, with some calling openly for Lemma and his colleagues to be replaced. A spate of attacks against non-Oromos, especially Tigrayans, living in Oromia and on university campuses has inflamed suspicions further. “I don’t think [TPLF] activists will be comfortable with the idea of an Oromo prime minister,” says Dawit Kebede, a journalist, adding that activists tend to say openly what TPLF leaders are thinking privately.

“If the Oromos do not change their rhetoric, how can they be leaders for all?” says Meressa Tsehaye, a professor of political science at Mekelle University, about the anti-Tigrayan sentiment.

Over the next month or so, all four members of the coalition will hold conferences in their respective regional capitals before meeting in Mekelle for the big congress. Some suggest that Hailemariam, widely regarded as an ineffective prime minister, might be ousted and replaced – or, alternatively, that the coalition might break apart.

Whatever happens, this will most likely be a make-or-break year for the EPRDF. Regional governments are growing stronger and demanding full realisation of the autonomy promised by the federal constitution but largely ignored by Meles. “The constitution was on pause for 26 years,” says Fetsum Berhane, a political analyst and former government adviser. “The regional states are only now realising how powerful they are.”

30 POLITICS

LIBERIA

Where there’s a will…

After losing out in the 2005 and 2012 elections, former footballer George Weah is now president, and shaking up politics with his young support base and big promises

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eorge Weah’s victory in the second round of Liberia’s presidential elections on 26 December upended an old certainty: the candidate of the ruling party always wins, guaranteeing continuity and a sense of stability. A former international soccer star, Weah has been a prominent figure in the political landscape since he created the Congress for Democratic Change (CDC) to contest Liberia’s first postwar elections in 2005.

Sworn in on 22 January, Weah left many Liberians wondering how the populist politician with just a few years experience as a senator would deliver on his campaign promises to create hundreds of thousands of jobs, fight poverty, bust up corrupt networks and launch an agricultural revolution.

Since winning, Weah has been trying to temper expectations. On 2 January, Weah told journalists that he will be surrounding himself with an experienced team of advisers, including prominent economists, to “put us on track.” He added: “They will look at what is in the coffers and then work out how to move forward.” He avoided tying himself to specific policies and said his government will prioritise agricultural programmes so that Liberians are “able to grow their own food”.

students in school uniforms waited in the sprawling compound in the hope that Weahwouldcomeandhandthemmoney for their school fees. This was triggered by his vague populism: he had promised Liberians free education without spelling out how his government would pay for it.

Other politicians are sounding alarm bells. In a radio interview, Amos Sawyer, thechairoftheGovernanceCommission, warned that though Weah’s youthful supporters “have every right to have expectations”, he needs to manage those expectations quickly “because if people expect that there will be more jobs, that prices will come down, then there should be a programme in place to meet those expectations.” The underlying anxiety is justified: inDecember 2011,thousandsof

students rioted in Monrovia, destroying government vehicles, offices and schools because of the mismanagement of a vacationjob schemerunbytheMonrovia City Corporation to employ students.

Until his presidential win, Weah’s peers widely viewed him as an outsider.

Since crushing Robert Sirleaf, son of the former president, in a senatorial by-election in December 2014, Weah had been an unremarkable senator, with no major speeches or legislation credited to his name. During the campaign, Weah shunned many political conventions, failing both to issue a detailed manifesto and to participate in two debates.

Aaron Weah, the Liberia country director for peace organisation Search for Common Ground and a longstanding

HANGING ON PROMISES

But the youth enthusiasm that Weah’s campaign tapped into risks boiling over.

Thousandsofyoungpeopleshowedupto the CDC party headquarters when Weah said he was looking for 2,000 volunteers to help out in cleaning up Monrovia.

Some of those who showed up said that they were expecting to be paid, while others said they heard that Weah would halve the price of staple foods like rice.

And in the months when the Supreme Court was evaluating claims of fraud in the running of the first round of the presidential vote last year, hundreds of Weah (C) and vice president Jewel Taylor (R) acknowledge their election triumph THE AFRICA REPORT

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HEROES AND VILLAINS

CHONGYOON NAH/ANADOLU AGENCY/AFP

These supporters are mostly young people, who constitute the overwhelming majority of Liberia’s voters. Their votes delivered Weah the presidency, winning 61.5% and trouncing former vicepresident Joseph Boakai, the governing Unity Party’s candidate – the first time in 140yearsthatanoppositionpoliticiandefeated the incumbent party’s candidate.

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surprised many in September 2016 by joining the LPDP. Gibson, a prominent lawyer who previously worked for the United Nations (UN), is the rule of law focal point on Weah’s transition team.

While Weah took a majority of the vote in the presidential race, his coalition won only 21 seats in the 73-member house of representatives. The lower house of the legislature showed early signs of support by selecting the coalition’s Bhofal Chambers as speaker on 15 January. The disparate constituencies in parliament could be an obstacle for the new government’s legislative agenda if team Weah is not able to keep his allies on-side.

Liberia is not the fully renewed nation with reordered social systems that Ellen Johnson Sirleaf promised after she became president of the war-ravaged country in January 2006. Much less is it an economically buoyant one that can pay for ambitious populist programmes.

Corruption is still common and other problems dissuade investors. The legislature stymied Johnson Sirleaf’s attempts to implement land reform, and the government has not been spending much on infrastructure, as civil servant salaries and other recurrent spending account for more than two thirds of the national budget.

The Monrovia government relies heavily on foreign donors, and there are worries that aid commitments will drop as Liberia is removed from the global crisis map and the 14-year-old UN mission in the country withdraws in April 2018. With estimated economic growth of just 2.5% in 2017, Weah’s campaign-trail bravado – “Everything I do, everything I touch is successful” – will rapidly be put to the test.

Lans Gberie in Monrovia

Inside team Weah

NIC BOTHMA/EPA/MAXPPP

Weah’s winning strategy involved political and transitional justice activist, tells The Africa Report: “His work in the forming a controversial coalition with Senate offers no clue because that work is the National Patriotic Party of war crimiunknown […]. Weah was still associated nal and former president Charles Taylor, with soccer, which the elite think is for and the Liberia People Democratic Party dropouts. There are people who believe (LPDP), formed by ex-speaker Alex Tyler, who is facing criminal charges. quite strongly that Weah’s rise in politics is something of a disgrace for Liberia, In the inner circle of the new presAfrica’s oldest republic. This is why, for ident are some respected old hands, however. Two of the most prominent many of his supporters, Weah’s victory are Toga McIntosh and Charles Gibson. will forever be considered a crowning McIntosh, a former foreign minister, achievement whether he is able to deliver on his promises or not. He has been able to humble For many, Weah’s victory is the book people who have the achievement, whether he disenfranchised them and can deliver on promises or not kept Liberia poor.”

Jewel Howard Taylor

Weah’s vice-president (pictured above) is reputed to be competent, ambitious, articulate and pragmatic.

He may seek to limit her influence due to her ambition and unwavering loyalty to her jailed ex-husband, the convicted war criminal Charles Taylor. Many thought that connection would preclude the ticket’s electoral success.

Alex Tyler

Though still facing criminal charges related to the Sable Mining corruption case, the Liberian People Democratic Party (LPDP) leader is a forceful and powerful personality inside the governing Coalition for Democratic Change. He became speaker of the House of Representatives in 2007, though he was eventually pushed out in 2016.

Toga McIntosh

The former Unity Party member was the chairman of Weah’s successful 2017 presidential campaign. McIntosh is generally well respected and a solid performer with good connections within Liberia’s elite and in the West Africa region, having served as vicepresident for the Economic Community of West African States.

He had hoped to be flag-bearer for the Unity Party before dropping out of the party to join Alex Tyler’s LPDP.

Nathaniel McGill

The chairman of the CDC has the tough task of ensuring that the alliance’s three parties do not fall out over the divvying up of ministerial and other posts in the new government. He also claims the CDC will form a small but efficient government, despite the pressures of finding jobs for everyone.

L.G.

32 POLITICS

president given the factionalism. “It will not be an easy presidency. He is going to be detached from Luthuli House.”

The Eastern Cape was one of the first provinces to come out in support for the Ramaphosa presidency. However, the province was marred by controversy that threatened to destroy one of the ANC’s bases of support. In December, the Grahamstown high court dismissed a bid to nullify the outcome of the provincial elective conference (PEC). Several ANC members from the OR Tambo and Amathole regions had sought to set aside the decisions of the PEC, including the selection of Ramaphosa ally and provincial chair Oscar Mabuyane, after violence broke out and some 46% of delegates walked out.

Ramaphosa told thousands at the Buffalo City Stadium in East London: “Structures have been weakened, and the confidence of the people in the ANC has been eroded. There’s been the social

SOUTH AFRICA

Can he deliver?

Reformer candidate Ramaphosa’s success in the ANC leadership race has opened up a period of awkward cohabitation with troubled president Jacob Zuma

FINDING ZUMA’S EXIT RAMP

Ace Magashule, the newly elected ANC secretary general, told The Africa Report in East London: “With 16 months to the [national] election, as the ANC we want to be a campaigning organisation […].

We want to be in touch with the people.

We will heighten the campaign, as we need to reconnect with the people.”

Activists, however, differ over how to treat Zuma, who was booed several times during the party rally. Many called for Zuma’s immediate removal as national president to allow Ramaphosa to take over and remake the ANC government ahead of elections in 2019. Magashule dismissed a newspaper report that Zuma was trying to negotiate a deal with his ex-wife, whose bid for the ANC presidency failed in December. “There is no substance to the rumour of Zuma wanting Nkosazana Dlamini-Zuma to be president. We are not going to respond to rumours and speculations. Let’s engage and not have fake news.”

Yet the Congress of South African Trade Unions (Cosatu) is demanding Zuma’s early exit. “We don’t trust JZ,

and he will complicate the Ramaphosa presidency. JZ can do a lot of damage.

Ramaphosa needs to act decisively and needs to show he is in power,” says Cosatu activist Castro Ngubane.

A veteran tactician, Ramaphosa is treading carefully, trying to bring the party together and reinvigorate it. “It’s important to remember the ANC is not only a political party, it’s a movement for the people of South Africa,” said Ramaphosa in early January. “[The ANC] has become deeply divided through factionalism, patronage, corruption and competition for resources A veteran tactician, Ramaphosa […]. At the centre of our is treading carefully, trying efforts this year is unity." to bring the party together RamaphosawontheANC presidency, running against distance between elected leaders and Dlamini-Zuma, by just 170 votes. But his candidate for the deputy presidency, [this] has damaged the bond between Lindiwe Sisulu, lost to the canny prethe ANC and the people.”

The ANC wants to rebuild its support. mier of Mpumalanga province, David Secretary general Magashule added: Mabuza. The ANC’s powerful national “The ANC has to modernise the way we executive committee (NEC) remains function as a liberation movement and packed with Zuma allies such as Jessie political party. We need to bring together Duarte, Lindiwe Zulu and Pule Mabe. business, labour and community.”

Two Zuma allies, Magashule and Duarte, Ramaphosa has a long list of agenda will be running the party’s headquarters at Luthuli House in Johannesburg. pointsthathissupporterswantaddressed urgently. First on the list is a cabinet Political analyst Benedict Dube says reshuffle, and they want to see Malusi Ramaphosa could struggle as party Gigaba vacate the finance ministry with immediate effect. They are also keen for intelligence minister Bongani Bongo, water affairs minister Nomvula Mokonyane, social development minister Bathabile Dlamini, mining minister Mosebenzi Zwane, public enterprise minister Lynne Brown and energy minister David Mahlobo to be replaced.

Cosatu’s Ngubeni explained: “The ANC has to make changes. We cannot see the current cabinet delivering. If we are going to clean up government and its incompetence, there has to be a deliberate effort from Ramaphosa and the new NEC.” Cosatu president S’dumo Dlamini, who campaigned for a The Guptas still have allies on Ramaphosa presidency said: “Our hopes the NEC, weakening Ramaphosa are high that we shall be able to deal KEVIN SUTHERLAND/SUNDAY TIMES/GALLO IMAGES/GETTY

H

er T-shirt emblazoned with the yellow, green and black of the African National Congress (ANC), activist Eviwe Mavuso says there is a newfound pride and hope in the party in the wake of Cyril Ramaphosa’s victory in the leadership elections in mid-December 2017. With almost 100,000 others, she travelled to East London to celebrate the governing party’s 106th anniversary in January.

Her favourite among the party anthems booming out was ‘Jiki Zinto’, which means “turn things around” and is a tribute to Ramaphosa. Buoyed by the historical power of holding the conference in the Eastern Cape – the birthplace of luminaries such as Oliver Tambo, Govan Mbeki, Nelson Mandela and Walter Sisulu – activists talked about a rebirth of the party after the depredations under Jacob Zuma’s (JZ) leadership.

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At the ANC 106th anniversary rally, activists said it was time for the party to get back in touch with the people

with the challenges of unemployment that is at 36% and the more than 50% of people who only have one meal a day.

We need to hear from the president that the ANC is ready to deliver and we shall give you 66% of the vote.”

RAMAPHOSA ‘COMPROMISED’

Not all are so hopeful. The South African Federation of Trade Unions (SAFTU) – led by ZwelinzimaVavi, a former Cosatu general secretary – said in December 2017 that it does not trust Ramaphosa.

It described him as a “deeply compromised capitalist billionaire, with hands stained with the blood of the 34 victims of Marikana who were shot in cold blood by the state to shield monopoly capital.”

SAFTUaddedthatthereisalsonohope for any economic shift with Ramaphosa at the helm: “The radical-sounding resolutions passed by the ANC at Nasrec THE AFRICA REPORT

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are just like those passed at Polokwane in 2007 and Mangaung in 2012, and are sure to remain as dead in the water as those were.”

Political analyst Oscar van Heerden wants to see other changes under the new ANC leadership: “There must also be a complete overhaul of the intelligence services, and the entire top brass of the police must be requested to resign before the general elections. This will go some way in restoring the public’s confidence in the security services.”

ANC insiders say Ramaphosa wants to ensure the support of the entire NEC before he makes dramatic changes, but that he wants the law enforcement agencies to do their jobs and stay out of factional battles. In January, he said: “Strong and efficient law-enforcement agencies are critical to the fight against corruption and crime generally – and

to the restoration of the integrity and legitimacy of the state.”

Promises to tackle crime, corruption and state capture were music to the ears of several ANC supporters in East London. A Free State ANC member told The Africa Report: “Ramaphosa is giving us hope again. We need unity, so we are taking our cue from the leadership and everyone including the pro-Zuma people must follow it.”

Dancing to the words of the praise singer and poet Mzwakhe Mbuli – “Comrades now is the time, unity, unity” – Zimkitha from Stutterheim in the Eastern Cape did not want to give her surname.Butshesaidshehasconfidence in the new ANC leadership. “We must now work on addressing unemployment and root out corruption, and I think Ramaphosa can do it,” she said.

Crystal Orderson in East London

MUJAHID SAFODIEN/AFP

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34 POLITICS

Kashim Shettima

Governor, Borno State, Nigeria

Boko Haram have branded us as infidels The Borno State governor talks to The Africa Report about fostering tolerance, rebuilding communities and why he is focusing on the next generation of young people

W

ith little more villages. Shettima and others hope than a year that the extra $1bn that the federal before he steps governmentisgivingtothemilitary down – and he forthecounterinsurgencywillhave has promised a significant impact on the ground in Borno in the months to come. not to run for a national office in 2019 – Borno State governor TAR: What is your government Kashim Shettima wants to leave improved education and agriculdoing to deradicalise both Boko ture as his legacies in the state Haramfightersandtheirvictims? on the front line of the Nigerian KASHIM SHETTIMA: The Boko Haram crisis has created 54,911 government’s fightback against widows and 52,311 orphans. I the Boko Haram Islamist rebels. have always said that it is in our Shettima, a member of the governing All Progressives Congress, interest to take care of these widsays that Borno State will “rise ows and orphans. If we fail to take care of them, they will become again” thanks to the millions of like Frankenstein monsters and dollars going into agriculture, wipe us off the face of the earth. construction and education.

Boko Haram is weakened but is Our efforts are largely geared still athreat, and launchedadeadly towards education, education suicide attack near the state capital, “I will provide first-world Maiduguri, in late infrastructure in a December. More third-world setting” than a million people still live in camps for the internally displaced and education, especially towards in Borno, and Shettima has set a girls’ education and gender emnew deadline of 29 May 2018 for powerment because women and children bore the brunt of this the camps to close and for people to be resettled. The continued madness. A good example of this is presence of Boko Haram in the the partnership we have with the Dangote Foundation in which we Mandara Mountains, Lake Chad, have built over 200 houses. And and the Sambisa Forest, means that many civilians will be resettled we are going to give those houses in towns rather than their home to widows. All we are waiting for

BIG ON BORNO 2 September 1966 Born in Maiduguri 1991 Earned a Master’s degree in agricultural economics from the University of Ibadan 2001 Appointed deputy manager of the Zenith Bank office in Maiduguri 2007 Became commissioner of the Borno State finance and economic development ministry April 2011 Elected governor of Borno State

is the completion of the school project because we want it tied to the education of the orphans. In an African setting, the concept of an orphanage is not really acceptable. We have to make provisions for the orphans to be absorbed into the extended family system. […] And from January we are going to feed children one meal per day for every primary school pupil.

School feeding programmes have not gone well in other parts of northern Nigeria. How will you avoid the mistakes of your counterparts?

In certain instances, some governors are putting the cart before the horse […]. In cases where primary school teachers are not being paid, in situations where infrastructure is derelict, it is an exercise in futility to embark on such grandiose public projects […]. In some schools there are no toilets, in others children are sitting on the floor. So, this is why I delayed the issue of school feeding until there was adequate infrastructure.

Why is your government building more than 20 mosques in Maiduguri?

As much as religion is a thing of the private realm, we also need to drive the narrative away from negativity, the demonisation of others, and intolerance. Boko Haram have branded us as infidels and people like me as non-Muslim. So, we really want to drive the process and see to it that a much more tolerant and inclusive version of Islam, the Islam we inherited from our forefathers, is imparted to the upcoming generation. And in that spirit of inclusivity, we are not only building mosques but also churches and other places of worship that were destroyed

by Boko Haram.

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AFOLABI SOTUNDE/REUTERS

Nigeria, there are fewer than 100 combine harvesters. We have 50 of them in Borno.

How important is it for you to use local talent in the rebuilding of Borno?

The beauty of local talent, which we have in abundance, is that [it] will bring […] local content and aspiration. And they drive us forward as an inspiration for us to do good.

There is a group of young men who were educated in some of the best universities in the Western world who are pregnant with ideas, but they were never given the platform to actualise their dreams. So, I gave them carte blanche to do whatever they think is good, and believe me they are adding value. Go to any of the schools that those young men THE AFRICA REPORT

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are supervising the construction of and you will be amazed. I want to provide first-world infrastructure in a third-world setting [...].

You say that you want to launch an agricultural revolution. Who will lead it?

Abatcha Ali. I call him my inhouse genius. He is dangerously brilliant […]. We are setting up the biggest greenhouse in subSaharan Africa. We are investing in the whole agricultural value chain. With all sense of modesty, there is no state in Nigeria that has invested even half of what we have in agriculture. In all of

What is your government doing to help resettle internally displaced people (IDP)?

I am determined, regardless of the cost, to close down all the IDP camps by 29 May 2018. I set an earlier milestone that I could not reach, but I will continue setting milestones because you have to work with a target in mind. Our IDP camps are pregnant with problems such as child marriages, prostitution, drug abuse and other challenges. And this issue of entitlement complex is creeping in, with some people believing they need to be fed, clothed and taken care of without working for it. We need to restore their human dignity by taking them back to their communities, especially communities where relative peace has been re-established. It is not for the United Nations (UN) or the International Organisation for Migration (IOM) or anybody else to dictate to us how we should run the show. We are an independent nation, and nobody loves our people more than us.

Some international non-governm ental or ganis ations (INGOs) have criticised your government’s response to the humanitarian crisis.

Our relationship with them is mainly good. The UN is doing a wonderful job […]. Among the INGOs, the ICRC [International Committee of the Red Cross] is the best, asfar as I am concerned. They are not only assisting us in meeting our short-term needs, they have gone beyond that and are investing in long-term projects such as the Alambiri water project. But, there are quite a number of INGOs that are smiling their way to the bank on the back of our people. But a few bad apples should not stop us appreciating the commitment and the sacrifice of the genuine ones.

Interview by Rosie Collyer in Maiduguri

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Of bromance and betrayal

A

cross the continent, heads of state dream of pulling off the perfect election. Gazing out the windows of their lavish mansions, they lose themselves in the fantasy of orchestrating a sublime mix of loyal legislators, puny electoral officials and credible-yet-weak political opponents.

This is much harder than it seems in dreams. Carefully chosen electoral monitors must rubber-stamp the validity of the process. Pesky oppositionists have to stand aside when the outcome is declared.

And, perhaps most crucially, the general public needs to buy the result.

Last year’s drawn-out electoral process in Kenya was shaky at times, but it has blossomed into a dream come true for President Uhuru Kenyatta. He can now be seen skipping through the gardens of Nairobi’s State House. On 5 January, before he appointed half of his new cabinet, Kenyatta gushed with joy as he savoured the start of his second term in office. “In the following weeks, I will be announcing the names of men and women who will join me in delivering our promises to Kenyans,” he said, smiling widely.

Kenyatta was not always this happy. His campaign last year hit some major snags.

Most notably, the Supreme Court annulled the first election, held on 8 August, over the failure of the Independent Electoral and Boundaries Commission to open the servers of their electoral database. In a now-infamous response to that ruling, a tired and emotional Kenyatta appeared on Kenyan televisions, slamming the judiciary as “wakora” – Kiswahili for thieves.

Kenya’s perennial opposition candidate, Raila Odinga, had also threatened to be a nuisance. Odinga’s National Super Alliance coalition boycotted the repeat election on 26 October, which Kenyatta won with 98% of the vote. That has left the incumbent facing a lingering crisis of legitimacy. As The Africa Report went to press Odinga was threatening to swear himself in as president on 30 January and lead a campaign of civil disobedience.

But the person who is really taking the jam out of Kenyatta’s doughnut is deputy president William Ruto. When

Kenyatta unveiled half of his new cabinet on 5 January, he did so without consulting Ruto. Under Kenya’s constitution, the president has no obligation to have the approval of his deputy, but this year’s ceremony was starkly different from that of 2013, when Kenyatta and Ruto dressed in matching outfits.

Ruto, a Kalenjin who had the foresight to join a winning political alliance with Kenyatta’s Kikuyus, was nowhere to be seen during Kenyatta’s first round of appointments. Ruto has also made no secret of his presidential ambitions.

The Kikuyu power brokers are suspected of having accepted Rumour goes the offer of Kalenjin support to that Kenyatta boost Kenyatta’s chances. But when a Kalenjin candidate is on knew a lack the ballot, many expect Kikuyus of women to shun the alliance.

These days, the chatter in nominations Kenya’s corridors of power is of a would be looming battle between Kenyatta and his deputy. A lack of women unacceptable. in Kenyatta’s first round of nomiHe gave Ruto nations was evident. The rumour his choice goes that Kenyatta knew this would be unacceptable in Kenya, of appointees, a country where gender equality knowing he by 2030 is a development goal.

Kenyatta then apologised to Ruto had no close and offered him his choice of apfemale allies pointees, knowing full well that Ruto has no close female allies.

Ever the political pro, Ruto brushed aside theories that his bromance with Kenyatta was over. “Kenyans, more so Jubilee, should avoid useless political debates about positions – including 2022 – and focus single-mindedly on delivering our manifesto voted for by the people, while allowing the President the space to perform his constitutional duty to assemble the team for us,” Ruto said.

Hushed whispers say the latest knife twist in Kenya’s political saga is designed to leave Kenyatta’s allies, most notably Ruto’s rival Gideon Moi, a senator from Baringo, better positioned ahead of the 2022 election. Maybe then, someone will finally realise the perfect election.

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39

Ghana

MELANIE STETSON FREEMAN/CHRISTIAN SCIENCE MONITOR/GETTY IMAGES

The Akosombo dam, once Ghana’s only source of electricity, is still its largest

Power madness Ghana’s lights are back on, but the chaos is not over. President Akufo-Addo’s government must address a legacy of emergency power plant commissions and costly over-production if it is to embrace the opportunities for growth

By Nana Yaa Mensah and Patrick Smith in Accra

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A

year into his presidency, Nana Akufo-Addo exudes optimism about the prospects of turning the country around. A day after marking 25 years of multiparty politics on Republic Day at Independence Square in central Accra, Akufo-Addo told The Africa Report: “We are on course. We’re delivering free secondary education as promised […]. We have in place a really strong economic team, and we’ve got the lights back on.”

40 COUNTRY FOCUS | GHANA

SCRAMBLE FOR JOBS

Fixing those economic structures, in effect reforming the colonial economy, was a central promise in Akufo-Addo’s election campaign. To be met, many of his pledges – on education, a factory in each district and a massive job creation programme – demand reliable electricity. Fixing that, at least in the short-term, has been a tangible achievement of the government’s first year. Yet questions linger over how durable the fix is. Have Ghanaians finally cracked a problem

that has haunted them for decades, or simply deferred the pain?

In sub-Saharan Africa, Ghana remains second only to South Africa for power provision to the population: 80% of Ghanaians have access to electricity.

But the longest-standing players – the Electricity Company of Ghana (ECG), the principal distributor, and Volta River Authority (VRA), the main generator – have failed to manage mountains of debt.

The VRA alone was said by late 2016 to owe crude oil suppliers $170m, suppliers of Nigerian natural gas $180m, and GhanaNationalGasCompanymorethan $600m.Governmentdepartments,which routinely ignore their bills, owed more than $650m to the ECG and producers, and $500m to bulk oil distributors.

The 2012-2015 energy crisis was not the country’s first. In 1997, after a prolonged drought, water levels in the Akosombo Dam fell perilously low. The then NDC government of Jerry Rawlings announced nationwide ‘load shedding’.

For the first time since the 1950s, when colonial administrators commissioned diesel plants to light up the cities, the whole country plunged into darkness.

In 1998, the country lacked 300MW of the 1,100MW it required. The biggest single consumer of electricity, the Volta

Aluminium Company (Valco) smelter in Tema, curtailed operations by 70%, freeing up 100MW. A second crisis in 2006 and 2007 under John Kufuor’s NPP government was described by the World Bank as ‘avoidable’.

Again, Ghana was forced to shed 30% of its regular supply, now 1,500MW. Rainfall eased the strain but not in time to save the NPP, which lost the 2008 election to John Atta Mills’s NDC. Paradoxically, the 2006-2007 crisis coincided with the discovery of commercial quantities of oil, which soon came to be seen as the only potential plug for Ghana’s power deficit.

The electricity sector failed to keep pace with demand as governments

Ghana’s electricity generation mix from 2006 to 2016 80%

Generation Mix (%)

Hydro

60%

Thermal

40% 20%

Renewable 0% 2006

2008

2010

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SOURCE: CENTRE FOR GLOBAL DEVELOPMENT

True, the economy is growing strongly again and the free secondary education policy is wildly popular, even if there are gripes about how it is being managed on the ground and questions about how to finance it (see page 54).

Akufo-Addo concedes that his government’s task was more daunting than expected: “The sheer volume of meetings, social interventions that the president is expected to make across the board […]. That’s something of a shock […], even for someone like me, who has been a minister on the campaign trail.”

For the previous seven hours, AkufoAddo had been locked in a meeting with the top leaders of the governing New Patriotic Party (NPP). They are determined to consolidate their hefty victory in the December 2016 elections.

To do so, they have to keep morale high, they need resources, and, above all, they need a message that resonates.

After a brief respite early last year, politics in Ghana has returned to its former partisan intensity. The opposition National Democratic Congress (NDC) is trying to regroup after its defeat, vowing to defend its former ministers from charges of grand corruption and throwing the same accusations at the new NPP government.

In the first week of 2018, the immigration service advertised for 500 recruits to join its training scheme. Within hours, a queue hundreds of metres long had formed, with as many as 50,000 applicants waiting in the sun to submit forms to the recruiting centre at El Wak stadium. This dramatic rush for jobs quickly became the new year story on radio and television. It was a wake-up call to both politicians and business people of the relentless pressure posed on an economy whose structural reliance on commodity exports is out of kilter with rapid urbanisation and demand for higher living standards.

GHANA | COUNTRY FOCUS 41

Public Utilities Regulatory Commission (PURC) for failing to set boundaries for the sector.

Despite a $3bn Chinese loan to develop the Atuabo gas plant in the Western Region, there was no sign of Ghana being able to leverage direct investment so that legacy plants could get needed maintenance and upgrades.

The high cost of keeping the lights on

ALL RIGHTS RESERVED

The bright lights of Accra, no longer dimmed by the power outages known as dumsor

invested little in expanding provision beyond the 400MW Bui Dam, a project first mooted in the 1920s and revived in 2008. Yet the trigger for the 20122015 crisis was an accident. An anchor severed the West African Gas Pipeline, which carries Nigerian natural gas to Ghana, shutting down the privately owned Sunon Asogli plant in Greater Accra and wiping 200MW off the grid.

It also left the VRA’s own Takoradi and Tema thermal plants hamstrung, forcing them to fall back on expensive crude oil to keep the turbines turning. Ghana was obliged to shed more than 600MW from a system then generating a dependable 1,800MW. Ordinary Ghanaians bore the full brunt of dumsor (‘off and on’).

This time the effects were far more severe. Manufacturing shrank by 8% in the fourth quarter of 2014 as the lights went out. A 2013 World Bank report estimated ‘Ghana needs to invest over $4bn in the next 10 years to make up for the past investment deficit and upgrade its powersector infrastructure’ and called for the restructuring of state-owned interests.

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NYANI QUARMYNE/PANOS-REA

MAHAMA’S MEASURES

Small businesses, from barber shops to beer bars, folded. A new middle class had come to expect reliable power; these people were unable to work without electricity to charge their phones and fire up their tools, and current fluctuations damaged valuable equipment.

The government, by then led by the NDC’s John Mahama, scrambled to pass the 2015 Energy Sector Levy Act, raising taxes on fuel to address the power utilities’ debts. It also concluded several emergency power purchase agreements (PPAs), with a heavy emphasis on thermal plants.

In the past 10 months, the Akufo-Addo government has announced ambitious plans for growth. Finance minister Ken Ofori-Atta has emphasised that he sees gas, rather than oil, as the main source of power for agriculture projects and other programmes. Indeed, many of the government’s other projects are linked to gas or wholly dependent on it: a petro­ chemicals hub in the Western Region, an integrated aluminium industry linking Kyebi and Awaso, and a liquefied natural gas (LNG) plant in Tema.

Though power supply failed to match growth in the early 2010s, the emergency measures that Mahama introduced have bought Ghana breathing space – at a price. Agreements actioned by the last government added 1,400MW to supply, taking provision from under just 3,000MW in 2015 to the present glut of 4,400MW. Usual peak domestic demand hovers between 2,100MW and 2,200MW, which leaves a generous reserve of almost 50% to manage the grid. Another 1,000MW is expected to come on-stream in the next two years.

Electricity remains expensive because of Ghana’s dependence on thermal plants for roughly 1,700MW, which are running at way below the optimum 80% capacity. The new political leaders are exploring ways of slowing the stream of contracts entered into by the past government. In June, energy minister Boakye Agyarko (see

THE AMERI PROJECT The ‘build, own, operate and transfer’ deal with a Dubai-based provider for a 250MW gas-fired plant at Takoradi was whisked through parliament in 2015 and cost $510m. Critics say it was overpriced by $150m.

THE KARPOWER DEAL In 2015 ECG signed a 10-year power purchase agreement with Turkey’s Karpower for 450MW via a floating heavy fuel oil-powered station, convertible to gas. Ghana’s first ‘powership’, with a 235MW installed capacity, arrived in Tema harbour in November 2015, to be replaced by a second ship generating the full 450MW in August 2017. A junior minister reported that it costs Ghana $10m a month to service the payments. The energy think tank ACEP has said the Karpower deal is ‘even worse than Ameri’. Others chafe at the fact that at the end of its 10-year service the barge will sail away into the sunset.

THE ‘T2’ DEAL Expansion of the existing Takoradi thermal power plant by the 90% Abu Dhabi-owned Takoradi International Company (TICO). The “T2” deal, including maintenance of the original plant, cost $440m and added 110MW to the existing 220MW. The turbine began supplying the grid in 2015.

OYANDZE SOLAR PLANT Built by Chinese-owned BXC, Ghana’s largest solar plant added 20MW to the grid for $30m in 2016.

42 COUNTRY FOCUS | GHANA

box), announced that he had reviewed up to 30 PPAs; the government was seeking to avoid additional capacity charges of $700m that it would incur if all 30 projects were to come online.

More problematically, the government announced in September that it had cancelled a contract with Quantum Energy to build a plant to process imports of LNG in favour of a supply and construction deal with Russia’s Gazprom. Although Energy Minister Agyarko claims this would produce savings of $1bn, the Gazprom deal outlined in the memorandum of understanding with the government doesn’t cover the estimated $300m-$400m cost of building a special jetty to offload the LNG. Subregional power-sharing continues, with sales of electricity to neighbouring Togo, Benin and Burkina Faso, as well as import/export power trading with Côte d’Ivoire.

WEAK GOVERNANCE

Kweku Awotwi, the VRA’s board chairman, describes the authority’s stewardship of its hydro plants as still “world-class” but concedes: “For whatever reason, we’ve not been able to replicate that standard for thermal assets.” He attributes this to Ghana having launched thermal technology without investing sufficient care in acquiring the vital expertise, unlike with Akosombo. But he blames the power sector’s systemic problems largely on financial irresponsibility by producers and consumers alike, the high costs of gas, operational inefficiencies of up to 40% and weak governance. At a lecture late last year, he noted that the VRA had lost 574m on the 5,746GWh of electricity it supplied to the ECG in 2016. The bulk generation tariff set by the PURC is roughly 10 pesewas per unit lower than production cost.

The regulator, argues Awotwi, has been far too inclined to bow to political pressures to keep energy prices low.

Ghanaian consumers will have to adjust to realistic pricing, he says: “Up until 1997/98 when the VRA began to run thermal plants, it was a very solvent institution, making profits of up to $30m to $50m a year. We didn’t have to buy crude oil, so cash wasn’t a problem.” But the World Bank warns that government revenues from oil and gas are likely to peak in 2020 and tail away. The game may already be up for investing in the great white hope of thermal energy.

Boakye Agyarko Energy minister, Ghana

From can’t-do to can-do

E

nergy minister Boakye In late 2017, the financial Agyarko is scathing about community was highly critical of the past chaos in the electricity NPP government’s attempts to clear sector, but bullish about debts owed to state-owned the future. “As far back as 2009, companies in the energy sector. The the alarm was raised that the system former Bank of New York man offers would grind to a halt by 2020 a counterintuitive response to press if nothing was done to address claims that the 2017 bond offer shrinking capacity. Yet the NDC through an Energy Sector Levy Act government sat idle and did nothing.” (ESLA) special-purpose vehicle failed He continues: “There was no money to raise the target ¢6bn ($1.4bn) […]. The government hadn’t settled because it did not carry a government its insurance credits, so the power guarantee. “Although Ghana’s energy plants couldn’t run beyond narrow debt wasn’t the prettiest thing on operating hours. These restrictions the market, we had a sense of room meant that the plants couldn’t do for manoeuvre. We made allowance scheduled maintenance, which led for up to 20%, and the ¢4.86bn to repeated breakdowns.” He says we achieved at 19.5% was enough that created a negative spiral: to cover our immediate requirements.”

“So began the wholesale rush to commission emergency plants.

Agyarko recommends an It took them two years to draw up incrementalist approach for the ruinous plans to increase capacity. government’s goal of raising ¢10bn They made 40 power purchase to pay off those debts : “We’ve carved agreements, contracting the country the debt problem into segments, to buy in 11,000MW [...] when for each of which we will seek specific we needed 4,800MW.” funding and will come back to the He says the current government market, possibly at a lower rate,” has been making progress in the minister says. maximising utilisation of installed “The critics want plain vanilla,” capacity: “Through the NPP Agyarko continues. “The presence government’s efforts, we have of a sovereign guarantee for a managed to raise the available capacity from “We’ve carved the debt into under 1,900MW to segments, for each of which 2,620MW, using the we will seek specific funding” same equipment.”

Agyarko, an economist with a quirky taste for bond is the surest indicator of debt bow ties, says the administration of the riskiest sort. ESLA is a has improved supply partly by parliament-backed debt, which “infusing the sector with a new guarantees flows. And its put-anddynamism. Independent suppliers call option agreements in fact of crude oil had given up on working allow for a higher rate of investment with the government. Yet these interest. The investors of yesteryear are the very groups that understand may see Africa as a basket case. every aspect of the problem we face.” The investors of tomorrow, on the He says: “We engaged with them. other hand, are prepared to back It brought about a total change the basket and understand that of psychology, from can’t-do to it is good business.”

Interview by Nana Yaa Mensah can-do. Then we moved to return in Accra to the markets and restore trust.”

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PEOPLE TO WATCH The business leaders who are ahead of the curve FREDA DUPLAN

NESTLÉ

Clouds with chocolate linings Nestlé’s managing director for Ghana, Liberia and Sierra Leone faces a comparatively smoother ride this year as a rebound in consumer confidence and economic growth in Ghana is set to raise demand. Appointed in April 2015 as the first Ghanaian to run Nestlé’s Ghanaian operations, Duplan has had the difficult task of guiding the company through Ghana’s turbulent economic times. Switzerland’s Nestlé will have to step up its marketing campaigns to convince consumers from switching to relatively cheaper substitutes that have recently flooded the Ghanaian market. On the positive side, the government’s focus on agriculture and industrialisation could also help to strengthen the company’s raw material base and to reduce its operational costs.

JOSEPH BOAHEN AIDOO Crafty cocoa chief The recent fall in the cocoa price has been a challenge for the Cocobod chief. He is looking to secure a deal with Côte d’Ivoire to see if the two countries can influence prices through strategic interventions.

Aidoo has also made clear that he does not see smuggling from Côte d’Ivoire as much of a challenge, insisting that border controls will stop any influx into Ghana. He is also finalising a $750m loan to fund the board’s rehabilitation, mass spraying and artificial pollination.

KWABENA DUFFUOR II In 2017, Duffuor became chief executive of UniBank after four years as chief operating officer. Duffuor, son of a former finance minister, previously worked for Ghana International Bank and Standard Chartered. In 2015, UniBank was Ghana’s sixth-largest bank by assets. It is expected to attain a capital base of close to 1bn ($221.5m) before new minimum capital requirements take effect in December.

ERNEST ADDISON

Streamlining the banking sector Central bank governor Addison is keeping a watchful eye over the financial sector. In his first year, he has initiated an internal reorganisation of the bank, closing six out of 26 departments. Following the collapse of UT Bank and Capital Bank, Addison says he will issue a whistleblowing policy to encourage transparency and accountability.

The two banks are to be integrated into Ghana Commercial Bank in the coming months, and analysts foresee further mergers.

ALL RIGHTS RESERVED

Banking boss

ALL RIGHTS RESERVED

44

PATRICK AKORLI

Fending off the smugglers

GhanaOilCompanymanagingdirector Patrick Akorli is looking to boost revenue while keeping expenditures low as dwindling margins and fuel smuggling threaten the company’s growth agenda. The measures are needed to keep the company’s revenue growth on the strong trajectory of 2015 and 2016. Information gleaned from 2017 quarterly results points to a slowdown.

Smuggling is estimated to have slowed growth in the downstream petroleum subsector by about 10% and costs the country close to $100m per month.

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COMPANIES

Power is back on, but much more is needed Economic growth is now on an uptick, but reforms are needed to make the Ghanaian economy and its companies more dynamic

G

hana'sprivatesectorisbreathing easier. According to the World Bank, the economy is expected to grow 8.3% in 2018, owing largely to an improved energy outlook and increased production in oil and gas.

The crippling power crisis of 20122015 that hamstrung business has significantly abated, with the government now ensuring a stable and reliable power supply. This has resulted in a 14% price cut in electricity tariffs for non-residential consumers as of January this year, a major boost to businesses. But that does not mean that Ghana has fixed its business environment, however: it dropped 12 places to reach 120th position – out of 190 – in the latest World Bank Doing Business report.

And while headline figures are good, they mask a slide in the real economy.

According to the consultants at PwC Ghana, non-oil sector growth decreased from 5% in 2016 to 4.8% in 2017, “largely due to the subdued private sector credit growth and a front-loaded fiscal consolidation that led to a significant cut in capital expenditure”.

Reviving sectors such as agriculture and manufacturing will be crucial. Statebacked initiatives such as the one district, one factory programme (see page 56) and the Akufo-Addo Programme for Economic Transformation are currently facing tough economic realities.

In October 2017, Ghana's communications regulator approved the merger of Airtel Ghana and Millicom Ghana (Tigo), resulting in an entity – AirtelTigo – that is now the country's second-largest mobile network operator. The government has also shortlisted three airlines to help relaunch a Ghanaian national carrier. Discoveries of lithium – a key component in batteries – in commercial quantities will also make it an interesting year for the mining sector.

Oheneba Ama Nti Osei

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Top 20 Banks INSTITUTION

TOTAL ASSETS ($m)

NET BANKING INCOME ($m)

NET PROFIT ($m)

Ecobank Ghana

1 888 611

282 852

72 944

2016

Ghana Commercial Bank

1 423 931

251 066

70 768

2016

Unibank Ghana

1 346 261

92 106

9 338

2016

Barclays Bank of Ghana

1 239 752

167 599

67 747

2016

Standard Chartered Bank Ghana

1 025 207

107 884

49 945

2016

Fidelity Bank Ghana

978 334

108 112

3 273

2016

United Bank for Africa Ghana

881 459

0

31 672

2016

Cal Bank

848 297

86 070

2 271

2016

Zenith Bank Ghana

805 165

0

28 727

2016

Universal Merchant Bank

653 990

46 023

-4 548

2016

Access Bank Ghana

628 181

63 910

9 332

2016

National Investment Bank

586 989

57 070

26 441

2015

Société Générale Ghana

574 032

76 992

14 215

2016

Agricultural Development Bank

555 326

71 058

-18 806

2015

HFC Bank (Ghana)

444 806

47 257

-10 596

2016

Prudential Bank

397 276

38 849

2 380

2016

YEAR OF RESULTS

Guaranty Trust Bank Ghana

362 242

48 506

16 404

2016

First Atlantic Bank

338 497

38 584

3 531

2016

Bank of Africa - Ghana

268 278

26 340

5 376

2016

88 749

2 085

-424

2016

Energy Bank (Ghana) Top 20 Companies

NET TURNOVER PROFIT ($m) ($m)

YEAR OF RESULTS

COMPANY

ACTIVITY

MTN Ghana

ICT/Telecoms

Gold Fields - Tarkwa Mines

Mining

708 900 116 900

2016

SSNIT

Financial services

673 574 359 807

2015

Tullow Ghana

Oil & Gas

666 600

0

2016

Volta River Authority

Utilities

662 887 -340 594

2015

Ghana Oil Co.

Oil & Gas

620 118

7 455

2016

Produce Buying Co.

Agribusiness

443 348

-3 694

2016

Perseus Mining Ghana

Mining

348 018

-35 569

2016

Total Petroleum Ghana

Oil & Gas

273 360

5 401

2016

Chirano Gold Mine

Mining

258 500

0

2016

Golden Star Resources

Mining

221 290

-41 763

2016

Abosso Goldfields - Damang Mining

183 400

-4 500

2016

GRIDCo

Utilities

157 953

16 205

2016

Tigo Ghana

ICT/Telecoms

142 000

0

2016

GNPC

Oil & Gas

141 479

11 547

2015

Guinness Ghana Breweries

Agribusiness

132 748

-1 800

2016

Airtel Ghana

ICT/Telecoms

131 625

-60 108

2016

Unilever Ghana

Manufacturing

116 339

9 153

2016

Fan Milk

Agribusiness

90 576

15 501

2016

Enterprise Group

Financial services

87 700

15 940

2016

746 921

0

2016

WAPCo’s REGULATING AND METERING STATION, TAKORADI GHANA.

WAPCo repositioning

to meet changes in sub-regional energy markets

T

he West African Gas Pipeline Company Limited (WAPCo), owner and operator of the West African Gas Pipeline (WAGP) is repositioning its operations to respond to the changing energy market dynamics within the countries of its operations.

WAGP was originally built to transport natural gas from Nigeria to Benin, Togo and Ghana. However, in recognition of the changes in the sub-regional energy market, WAPCo has begun undertaking a number of actions in order to fulfil the aspirations of its initiator; ECOWAS. That is, to provide a sub-regional infrastructure that will help promote sub-regional energy integration and development by transporting gas from areas where there was abundance to other areas of need.

The first major step was to make WAGP an “open access” system to allow other shippers to use the pipeline to transport gas to any of the three WAGP states. The original arrangement was for WAGP to have a single shipper for at least a decade. This changed on July 1st 2012, when WAGP was declared open to other shippers. This means that any suitably qualified entity can apply to become a “shipper” on the system with a view to entering into gas transportation contracts. Charges for using the system (“tariffs”) must be agreed by WAPCo and its regulator and approved by the WAGP

states. WAPCo has recently admitted two new shippers on the WAGP and is working with them to develop new agreements for gas transportation.

National Petroleum Corporation and the Ghana National Gas Company to establish an interconnection at Takoradi (Aboadze) with WAGP.

WAGP’s very unique position of being a gas transmission system to help promote economic development in the sub-region requires flexibility and adaptability to developments within the energy sector of the participating countries. These developments since WAPCo began commercial operations in March 2011 include continued rapid growth in demand for power, the discovery of oil and gas in Ghana and the emergence of independent production companies in Nigeria. These changes have created new opportunities for increase in gas supply and WAPCo is working assiduously to meet market requirements in an efficient and cost effective way.

The TTIP Engineering works has reached an advanced stage and is expected to be delivered in the third quarter of 2018. This project when completed will achieve the following:

WAPCo recently completed an upgrade of its Tema Regulating and Metering station from an initial capacity of 70MMSCFD to 140MMSCFD to meet the emerging demands of its current and prospective customers.

The Takoradi-Tema Interconnection Project (TTIP) Also, WAPCo, under the Takoradi-Tema Interconnection Project (TTIP) is collaborating with the Government of Ghana and key energy stakeholders including Eni, Ghana

● Upgrade WAPCo’s Takoradi Regulating & Metering station from 128mmscfd to 225mmscfd and that of its Tema Station from 140mmscfd to 345mmscfd. ● Enable the WAGP to be used for the reverse flow of natural gas from Takoradi to Tema, thereby supporting Ghana’s gas supply flexibility to evacuate gas from the western fields in Takoradi to the Eastern part of the country (Tema) while at the same time continue to supply gas from Nigeria.

WAPCo is committed to ensuring a secure infrastructure that is responsive to the changing energy needs of Ghana, Togo, Benin and Nigeria. As a testimony to this commitment WAPCo has reliably operated its pipeline network over the past years without any lost time and managed its assets integrity in line with world class operational excellence management system to achieve this enviable availability record.

WAPCo is committed to transporting gas from sources where there is abundance to other areas of need.

ADVERTORIAL

WAPCo’s REGULATING AND METERING STATION, TEMA, GHANA.

Brief history of WAGP

WAPCo profile

1982

Economic Community of West African States (ECOWAS) proposes a Natural Gas Pipeline across West Africa as a key Regional Economic Goal

1992

World Bank Study confirms viability of a Natural Gas Pipeline based on ample reserves of Nigerian Natural Gas, and Regional Energy Needs

■ The West African Gas Pipeline Company Limited (WAPCo) is a limited liability company that owns and operates the West African Gas Pipeline (WAGP).

2000

Leaders of Benin, Ghana, Nigeria and Togo sign Agreement for the Development of the West African Gas Pipeline (WAGP) based on Private Investment and Commercial Principles The four Nations sign Intergovernmental Agreement for Harmonized Fiscal and Regulatory Regime for the Development, Construction and Operation of the Pipeline

August 2002

Preliminary Commercial Structure established, including Volta River Authority’s Takoradi Power Plant as foundation customer

January 2003

Benin, Ghana, Nigeria and Togo sign West African Gas Pipeline (WAGP) Treaty

May 2003

Formation of WAPCo to build, own and operate WAGP

May 2003

Signing of International Project Agreement (IPA) by WAPCo and the Governments of Benin, Ghana, Nigeria and Togo with ECOWAS Secretariat as Witness

October 2004

Ratification of WAGP Treaty by the 4 Project countries

April 2008

Commissioning of onshore and offshore pipeline begins with the opening of valves at Itoki inlet

December 2008

First natural gas supply through WAGP arrives in Takoradi, Ghana

April 2009

Ghana’s Volta River Authority generates electricity with natural gas from WAGP

August 2010

Volta River Authority receives gas atTema Regulating &Metering Station the first time

December 2010

WAPCo starts full commissioning of WAGP system

January 2011

First natural gas delivered through WAGP to Togo

February 2011

Compressed gas transported on WAGP for the first time

March 2011

Commercial operations declared

July 1, 2012

Pipeline open to all shippers

■ WAPCo is a joint venture between public and private sector companies from Nigeria, Benin, Togo and Ghana.

■ The company’s main mandate is to transport natural gas from Nigeria to customers in Benin, Togo and Ghana in a safe, responsible and reliable manner, at prices competitive with other fuel alternatives.

■ WAPCo is owned by Chevron West African Gas Pipeline Ltd (36.9%); Nigerian National Petroleum Corporation (24.9%); Shell Overseas Holdings Limited (17.9%); and Takoradi Power Company Limited (16.3%), Societe Togolaise de Gaz (2%) and Societe BenGaz S.A. (2%).

■ The West African Gas Pipeline Authority based in Abuja is the regulatory body for WAGP.

FOR FURTHER INFORMATION CONTACT

The General Manager Corporate Affairs West African Gas Pipeline Company Codemm House Nii Nortei Nyanchi Street, West Airport P.O. Box OS 458, Accra, Ghana Tel. +233 302 740 190 Fax. +233 302 768 905 / 780 503 E-mail: info@wagpco.com

DIFCOM/DF - PHOTOS: © STEVE ABABIO

1995

■ The company has its headquarters in Accra, Ghana, with an office in Badagry, Nigeria, and field offices in Cotonou - Benin, Lome - Togo, Tema and Takoradi, both in Ghana.

48 COUNTRY FOCUS | GHANA

Ken Ofori-Atta Finance minister, Ghana

We met a situation which was quite dire At the centre of President Akufo-Addo’s plan to modernise the economy and launch universal free secondary education is his team at the Treasury.

Leading the charge is finance minister Ken Ofori-Atta, who talks through the strategy with The Africa Report

F

or a man assigned the daunting task of turning Ghana’s economy around from its lowest growth and highest debt levels in 25 years, finance minister Ken Ofori-Atta is remarkably composed. Holding court in his shiny new office – renovated at his personal expense, he quickly points out – Ofori-Atta argues the new government has been able to pull the economy back from the brink over the past year.

Few dispute there has been substantive progress. By the end of the new government’s first year, growth had tripled, helped by higher oil production and better prices, and the debt burden had been eased and elongated. Yet the government has still found the money to launch universal free secondary education: that is, no fees, and free books, uniforms and food.

Quietly spoken and fond of understatement – but given to frequent biblical allusions – OforiAtta is a no-drama minister. So when he compared raising a $2.25bn bond on the international markets in early 2017 to walking

on water, it was surprising and unsurprising at the same time.

Opposition politicians immediately attacked the bond as a bad deal put together by Ofori-Atta’s banking associates in New York. In December 2017, the Commission for Human Rights and Administrative Justice released a 141-page report on the bond issue, finding no evidence of collusion or insider dealing.

However, it found some of the rules for bond issuances had been breached. It also called for parliamentary scrutiny over such transactions.

Questions remain about how such debt-sale proceeds can be used to support diversification of the economy and how that usage is monitored. By stretching out the repayments on domestic debt, the bond will give the finance ministry more flexibility on the budget. But with local companies reluctant to invest in production when they are paying more than 30% on loans, the next challenge for Ofori-Atta’s team will be developing the financing strategies to support AkufoAddo’s pledge of a new factory in each of Ghana’s 216 districts.

THE FRONTIER FINANCIER 1959 Born in Kibi, in the Eastern Region 1984 BA in Economics from Columbia University, US 1988 BMA from Yale School of Management 1990 Co-founded Databank, which became the pace-setting private sector bank in Ghana May 2017 Becomes Ghana’s finance minister

TAR: What was the state of the economy when you took over last year, and how did that affect your strategy?

KENOFORIATTA:Wewereswept into government. In a sense, it was way beyond our [election] promises […], just a deep, organic tiredness of the Ghanaian people, frustration at the directionless way things were going on all levels […]: the running of the economy, the social interventions and the corruption. Growth was the lowest for two decades, our fiscal deficit was 9.4%, inflation 15.4%, a negative primary balance, public debts at 73.1% of GDP, reserves were low, the exchange rate had gone down by more than 10%.

You’re on an International Monetary Fund (IMF) programme, but there are mixed signals from the government about that. Why? We had the IMF like a trusted adviser and partner to work with.

Once I saw the numbers, it struck me as odd that we needed the IMF to move forward. Because it was clear to me that all the things they were doing, any responsible government should be doing them. Of

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ALL RIGHTS RESERVED

49

course, deep down within us is the issue of sovereign independence […], that one should be able to do things without some other institution. Some people wanted us out [of the IMF programme] immediately and we said, well, let’s see what happens this year.

Come December 2018, we should be out and we are on road to that.

Is your strategy working?

We have done reasonably well with growth. We moved from 3.7% to 6.6% in the first quarter, 9.3% in the second quarter, 9% in the third quarter – an average of 8.3% for the year. We had a boost from oil [exports]. Beyond that, it’s a gradual climb of real growth. So we’re beginning to see the impact of what we are doing. Get our macroeconomy stabilised, get back to agricultureandthenuseagriculture as a means for the industrialisation that the President has envisioned.

You have some big new spending commitments, such as free secondary education.

The key is priorities […] understanding what we have to do and then tackling the issue of value for money. For example, the auditor THE AFRICA REPORT

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general went through the arrears.

Out of 11bn ($2.4bn), he was able to certify only 5.6bn […]. So we are beginning to see a lot more care for the public purse.

After the cuts, how are you boosting revenue?

We have a different sense of how to tackle revenue. The IMF’s immediatereactionwastoincrease the [tax] rate. We have a formal sector working force of about five million people, but individuals paying taxes are 1.3 million people.

Thecountry’staxrevenuetoGDPis about 16%; comparable countries are doing about 20–25%.

“All the things [the IMF] were doing, any responsible government should be doing” Akufo-Addo talks about Ghana moving beyond aid. How does that shape your strategy?

Everybody now knows the marching orders. He’s asking me to diversify the economy, to examine how Ghana can be the regional hub, a financial services centre. There is a huge gap between my savings capacity and

F E B R UA R Y 2 018

the investments I need […]. So, if I’m able to strengthen the financial services sector – capital markets, venture capital, the banking system, insurance – then I’m providing the capital to support agriculture and industrialisation.

You have been talking about cutting the cost of government.

How does that work when you have 110 ministers?

I have three deputy ministers.

And with the type of work that we are doing, I’m happy that I have threeofthem.Thearithmeticreally is not that daunting because 75% of these guys are already in the legislature, and so it was really a marginal top-up of resources.

You’re saying you can have more ministers but still spend less on administration?

As a country, we are very inefficient. In the ministry of finance, there is no way I cannot find three offices for three deputies.

So the civil service is 650,000 or something? The wage bill is still something that we need to tackle.

It is not about the level of salaries because salaries are not that high.

It is not about staff layoffs because

50 COUNTRY FOCUS | GHANA

you have a lot of unemployment. So it really comes to deploying people to work more efficiently.

The opposition has strongly criticised your sale of $2.25bn of bonds on the international markets.

What’s your response?

We met a situation which was quite dire with regard to the interest we were paying. We needed somehow to elongate the maturities on our domestic debt. We were able to have $2.25bn raised, which created a certain stability. I think the opposition was shocked that we were able to attain the credibility to do that. So they filed something with the Commission for Human Rights and Administrative Justice (CHRAJ) about conflict of interest. The CHRAJ report in a sense dismissed those critical issues of conflict of interest or corruption or insider trading.

The report found no conflict of interest,butwascriticalofprocess.

It was. I read the report and was asking myself whether CHRAJ had gone beyond the mandate and even its competence. But the fundamental issue is that the ministry’s integrity has not been impugned.

But now if we want to look at the way in which we issue bonds, that’s a different exercise.

As a banker, you would argue that there is no problem with your having done business with some of the fund managers that the government is using?

That question is a universal issue.

Look at the number of US treasury secretaries coming from Goldman Sachs. We are becoming a country in which you are having citizens who have worked in these areas and you are deploying them in relevant ministries. Anybody can say: ‘You knew him or you knew her.’

There is a reason why I’m here. I know these people […] therefore the magicofwithintwotothreemonthsof being able to attract $2.25bn is about 20 years of relationships. And that’s what Africa is going to have to do to bring in these trillions of dollars that wehavetalkedabout.Ifthat’sgoingto be dismissed as insider trading, then we have some problems.

Interview by Patrick Smith in Accra

Yofi Grant

Chief executive, Ghana Investment Promotion Centre

1D1F has won some interest

F

rom his headquarters in central There are plenty of obstacles Accra next to the key to his goal of making Ghana the most ministries, Yofi Grant runs the attractive and competitive destination Ghana Investment Promotion in Africa. Last year, Ghana fell 12 Centre (GIPC). As the body’s economic places to 120th out of 190 countries ambassador-in-chief his role is to in the World Bank’s Doing Business back the government’s modernisation rankings. Undaunted, Grant says that strategy. Having brought in some many of the new government’s reforms $5.6bn in new investments – $4.4bn were registered after the assessments from overseas – in construction, ended and that they will push the logistics, timber, mining and country sharply up the table this year. information technology (IT) in the first nine months of 2017, Grant can claim Like many top officials in some early success. Much more is Akufo-Addo’s government, Grant in prospect as he sets out a grand plan has a strong business background. for three new rail projects costed A co-founder of real estate company at around $9bn, linking mines and Coldwell Banker Ghana and investment factories in the east and west with the advisory firm Praxis Fortune Calibre, coast, as well as a new central railway he also chaired Ghana Telecom up to the border with Burkina Faso. and advocated its privatisation.

With finance minister Ken Ofori-Atta His responsibilities at the GIPC about to embark on an Asian tour straddle a seat on the foreign ministry’s to talk to investors and pave the way advisory board and working with for President Nana Akufo-Addo’s state vice-president Bawumia on economic visit to China in April, Grant sees a coordination: “The economic sustained uptick of investment coming management team is run from from that region. “On our trip to China last “By the third quarter, we saw year with the vicea lot of the foreign investment president Mahamudu skewed toward manufacturing” Bawumia, we signed memorandums of understanding to the tune of $19bn,” the vice-president’s office and takes a Grant tells The Africa Report. broader look at the macro, the business “Last year we targeted strategic sector and the investment climate.” areas of energy, infrastructure, Grant reports directly to Akufo-Addo, agriculture and agro-processing, both as an adviser on business and tourism and IT,” says Grant. to flag policy issues raised by investors.

“But interestingly, by the third quarter The bigger question is how the we saw a lot of the foreign investments headlong rush for investors meshes skewed in favour of manufacturing […]. with the government’s strategy to Our one district, one factory policy create a modern economy, joining seems to have won some interest.” the agricultural centres in the north Most of the proposals for new with a wave of new processing centres. factories were coming from India Part of the answer may lie in the and China, and many were looking research into long-term policy needs for partnerships with local firms done by the National Development in the hope that would help them Planning Commission. One point navigate the markets as well as of agreement is that there will be the local bureaucracy. Untangling no let up in the demand for productive that bureaucracy is one of Grant’s investment in the foreseeable future.

Interview by P.S. in Accra most important tasks.

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GOVERNANCE

‘Winner-takes-all’ politics blocks development Critics want to come up with solutions to the cycle of electioneering and unkept promises that the era of multiparty politics has created

SOURCE: GOVT OF GHANA

$7.4bn

CHRISTIAN SCIENCE MONITOR/GETTY IMAGES

A

s Ghanaians gathered to celebrate 25 years of multiparty politics on Republic Day, and to hear a succession of upbeat speeches about the country’s prospects, there were some cautionary voices. As Emmanuel Gyimah-Boadi’s Ghana Center for Democratic Development (CDD) put it: “Public corruption remains pervasive; progress of the constitutionally mandated political, administrative and fiscal decentralisationhasstalled;theeconomy remains characterised by jobless growth; income and spatial inequality are on the rise in spite of poverty reduction.”

But it was the CDD’s last barb against politicians that hit the hardest: “The nation’s two main political parties, which have alternated in power in the Fourth Republic, have taken on the features of rival cults whose primary purpose seemingly is to win elections, achieve of Martin Amidu, attorney general un‘state capture’ and practise ‘winnerder the former National Democratic takes-all’ politics.”

This raises critical issues for Ghana’s Congress (NDC) government until he fell political economy a year after the New out with it, as the first special prosecutor Patriotic Party (NPP) won power with was politically savvy. Amidu relentlessly pursued businessman Alfred Agbesi an ambitious programme to modernise and industrialise the economy. Those Woyome, who was accused of contracteconomic policy ideas will require ing favourable financial deals with both the main political parties. sweeping political change.

At the heart of President Amidu will have to move quickly to convince the Nana Akufo-Addo’s plan to sceptics. There is a raft of move Ghana “beyond aid” is the implication that govmuch-criticised energy ernment would be much deals (see page 41) that the more accountable to tax government said it would renegotiate. But few details payers. Akufo-Addo has have emerged about the fired some warning shots new terms and whether in that direction with his calls for greater scrutiny any former officials are to External reserves by the legislature. “Our be prosecuted. available to Ghana as parliament should be able of 24 November 2017 to exercise full authority COOPERATION over our public finances,” he said in Civic activists also want to see a tougher regime governing disclosure of assets June. “It will be necessary to amend by public office-holders, as well as the the constitution. If this were done, it would enhance significantlyparliament’s passing of the Right to Information Bill, oversight capacity.” which has been held up in parliament At the start of the year, Akufo-Addo for 17 years. signed into law a bill to establish a speTo restructure the economy, argues cial prosecutor’s office, which is meant formerfinanceminister Kwesi Botchwey, there would need to be far greater coto have the authority to pursue cases of operation on medium-term policies. corruption. Akufo-Addo’s appointment

Does multiparty democracy get Ghana any closer to the Republic’s founding ideals?

Governments from both parties get locked into the electoral cycle, allowing spending to spin out of control in the run-up to voting, he tells The Africa Report. Incoming governments are often so preoccupied with fixing immediate fiscal crises that they have little time to implement longer-term strategies. “ Mayb e I’ m ideal istic,” says Botchwey, “but it should be possible to get some kind of all-party consensus on fundamental economic issues, fiscal stability laws and so on.” After piloting Ghana through a succession of structural adjustment programmes in the 1980s and 1990s, Botchwey was then appointed chairman of the National Development Planning Commission, which recently produced a 40-year road map for economic change.

A senior official in the NDC, Botchwey has stepped down from the commission but hopes there will be a constructive dialogue with the NPP’s policy team on the plan. But the currently intensely partisan climate – with regular Twitter fights – does not favour reasoned discussion, according to Botchwey.

Patrick Smith in Accra

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JONMOORE’S YEAR 2017 IN RETROSPECT

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2

3

4

5

Jonmoore International Limited (JMI) is an indigenous Ghanaian Company established in 1998 and specializing in Transport and Project Logistics.

1. Transporting of knocked down Liebherr 9250 excavator. 2. Transporting a complete Liebherr 9250 excavator (275T) with our modular trailer and MAN 8 x 4 600 HP tractor. 3. 400 T Crawler Crane on a barge offshore. 4. 5. Transport of 3 x 8 meter diameter ball mills from Ghana to Guinea.

offers a wide range of services meeting International Standards and always exceeds the expectations of our Clients in the Mining, Construction, Energy, Food Processing as well as the Oil and Gas Sectors within Ghana and the West African Sub-Region.

JMI’s services include:

• Transport and Logistics • Expert Project Handling • Cranes and Heavy Lift • International Freight Forwarding • Customs Clearance • Warehousing and Storage

JMI is an asset owned company and all Trucks, Trailers, Cranes, Forklifts, Telehandlers; Cherry Pickers are owned and operated by us. JMI also has its own Customs House Agents License which ensures that all import, export and transit customs clearance are done by our in-house team.

Through our Global network of Freight Forwarders, we are able to co-ordinate sea and air freight shipments from various locations all over the world. JMI provides advice and guidance in all aspects of international freight forwarding by incorporating clients’ preferences as an integral part of our service.

On 5th January 2017, JMI was contracted by African Mining Services Ghana ADVERTORIAL

(AMS) to transport a Liebherr 9250 excavator with a pay load of approximately 275 metric tons over a distance of 15 kilometer within the Iduapriem Mine in Tarkwa, Ghana. This transport was carried out using a 14 axle- line Scheuerle Kamag - K25 H modular trailer and a MAN 8 x 4 600 HP tractor unit out of JMI’s owned fleet. (2) This was the first time a Liebherr 9250 excavator had been transported in one whole piece.

AMS commended JMI stating “It was time saving and a very Safe operation.

Takes away all the risks associated with dismantling and assembling.”

over-dimensional cargo with a diameter of 8 meters and delivered safely with no incidents on September 22nd 2017.

JMI is currently supplying cranes on a Power Generation project in Kpone, Greater Accra Region (Ghana). This project is a 350MW-combined cycle Gas Turbine with multiple fuels.

In November 2016, JMI was also awarded the Oil and Gas Service Company of the Year (Lifting) at the Ghana Oil and Gas Awards.

!

I n J u n e 20 17, J M I wa s awa rd e d t h e Pro j e c t / Heavylift Forwarder of the year at the maiden Ghana Shippers Award.

!

JMI over a period supplied 400T Crawler (the biggest crawler crane in Ghana), 160T mobile crane, 100Ton crane and a 50T crane. The supply of equipment was very essential for the on-time completion of this project.

JMI is also offering forklift rental services to a Client in the Oil and Gas Sector which include 16 ton, 7ton, 3ton forklifts, 3ton teletruck and warehouse forklifts.

In August 2017, JMI customs cleared and transported 3 ball mills from the Takoradi Port of Ghana to Siguiri Mines, Guinea (4-5). This was an exceptional

No. 1 A publishing road P.O. Box co 614 - Tema, Ghana Tel: + 233 (0) 20 139 6339 / 20 226 7919 Email: solutions@jonmoore.com.gh Website: www.jonmoore.com.gh Facebook: www.facebook.com/ jonmooreinternationallimited Linkedin address: www.linkedin.com/ in/jonmoore-international-limited-608405125

DIFCOM/DF- PHOTOS:DR.

JMI

54 COUNTRY FOCUS | GHANA

Ko obina Ankomah-Graham Writer, academic and culturist, Ghana W

When education yearns to be free

L

ooking back at the 2017 election, it is hard to tell if the New Patriotic Party’s (NPP) victory was a vote of no-confidence in the National Democratic Congress or an endorsement of the NPP’s populist ‘free senior high school (SHS)’ campaign.

Introduced in its 2012 manifesto, free SHS failed to swing that year’s election. In now-president Akufo-Addo’s own words, it was considered “a vote-buying gimmick”. His opponents had thrown their weight behind the free and compulsory universal basic education (FCUBE) programme. The government introduced FCUBE in 1995 with the promise of providing universal access to primary and junior high school within a decade. By 2012, however, UNESCO estimated that only half of Ghanaian women and a third of Ghanainian men between the ages of 15 to 29 years who had completed six years of basic education could read a single sentence.

In 1987, I was in my penultimate year ofprimaryschool.Myparentswerealready wary of the impending pivot from the British ordinary and advanced (O and A) level system towards a new secondary school system. The government had good intentions: replace an old system designed to create civil servants good at obeying (colonial) commands with a more affordable one which would teach students to do and make things useful to Ghana’s new economy.

It was only after the first students graduated that we saw the extent to which the new system failed them. Complaints were so widespread that it prompted calls for extending secondary education from six years to seven. Tellingly, many officials responsible for these decisions sent their children to expensive private schools to sit O and A levels.

‘Quality versus quantity’ is the problem that free SHS cannot shake: what good is universal free education if the quality is questionable? Like many lecturers, I am disheartened by how much miseducation my colleagues and I unravel among students we receive from public schools.

Finance has always been a part of the problem.

The government says that free SHS will be funded from the proceeds of Ghana’s natural resources. One think tank estimates the cost of the new system at $600m per year.

But could government ensure quality free universal education if it rethought the funding of boarding schools? Most of Ghana’s schools offer day and boarding options, both funded by government.

In his speech launching free SHS, President Akufo-Addo praised several countries for leading the way with free education. None of these far wealthier countries rely primarily on boarding schools: they create national policy around day schools, leaving boarding to those who can afford it. This forces parents to actually raise their children, instead of dumping them on underpaid, overworked teachers at schools struggling to fit five times the number of students into the same halls that their parents once comfortably occupied. It cannot come as a surprise that our boarding schools become petri dishes, not just for many types of group-think that hold Ghana back, but apparently for a recent outbreak of swine flu.

Writer Ama Ata Aidoo tried to get Jerry John Rawlings’s administration to rethink the boarding issue during her brief stint as education minister from 1982-1983, but sentiment clouded the issue.

Ghanaians are deeply attached to boarding schools: where the rest of the world uses the term alma mater to describe the universities they attended, we use it to describe our schools.

Akufo-Addo linked free SHS to national development, but – as the activist Kinna Likimani pointed out – Ghana’s coat of arms bears the motto: ‘freedom and justice’. Beyond development – and wherever its funding comes from – the success or failure of free SHS will be measured by just how much freedom it gives Ghanaians.

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Golden Exotics Limited,

Leader of the production of bananas in Ghana.

● ●

●

65,000 t. of conventional bananas (2017) Developing organic bananas (320 ha, end of 2017) 12,000 t. capacity 2,400 jobs.

Full commitment for the respect of Ghanaian and International social and environmental regulations with constant dedication to HR and responsible farming practices (GlobalGap® certification).

Marketing the fruits all over Europe thanks to the Ghana-EU Interim Economic Partnership Agreement.

Regular shipping route to Europe with two weekly calls at Tema Port for the best shelf-life and quality of the fruits.

Subsidiary company of

56 COUNTRY FOCUS | GHANA

JANE HAHN/PANOS-REA

Pineapples grown for export will now be processed into juice for the domestic market

wehaveonefactorythatistakingbetween one to one and half years to establish, then you can imagine how many years it will take to establish 216 factories.”

The 1D1F programme was a key plank of Nana Akufo-Addo and his New Patriotic Party’s 2016 election campaign.

They argue it is Ghana’s best bet to reverse the fortunes of the industrial sector. Growth in industry was just 0.3% in 2015 and 1.4% in 2016.

TAX BREAKS

Since January 2017, when the new government was inaugurated, more than 400 investors have applied to the trade AGRICULTURE and industry ministry to set up factories under the 1D1F policy, according to the secretariat. 1D1F promises tax holidays and other incentives for private investors, as the government is counting on private firms to set up the factories rather than getting involved directly itself.

The government’s 1D1F project promises a factory Critics complain that many local investors lack the funds to get involved in each of Ghana’s 216 districts, but it depends on in the sort of projects that 1D1F calls enticing investors, and will take time, money and effort for. However, the Association of Ghana Industries (AGI) is finalising a financing The Ekumfi factory, which needs an arrangement with the China National newand much-hyped pineapple initial investment of $7.7m, is expected Building Material Company to provide farm and plant at Ekumfi in the low-cost funds to members interested in Central Region will help to show to process about 80tn of pineapple each if the government’s ‘one district, one day. Ghana Export and Import Bank is investing. Seth Twum-Akwaboah, AGI’s factory’ (1D1F) plan can revolutionise chief executive, says a memorandum of providing the initial finance, but, despite the excitement about the launch of the understanding has been signed, paving Ghana’s agro-processing industry and for the way for members to access $2bn project in August 2017, there hasnot been manufacturing base. The country now much to see on the ground. in loans. He says: “This spends about $2.2bn each year on imis project money and it porting food, especially rice and wheat, Construction of the plant so building new processing plants is has started, but outgrowers is possible that we will key to saving money and creating jobs. who have been commisexhaust it within a short sioned to feed the factory However, the time needed to launch the time or not be able to Ekumfi project demonstrates that 1D1F areyettocommencecultivautilise all. It all depends will not be a quick fix for the develoption, as soil testing and other on the capacity.” ment of Ghana’s 216 districts. studies are ongoing. Sam, Although the 1D1F who insists the project is on Kow Sam, a consultant on the 1D1F policy targets all sectors schedule, says the first test programme, complains about the lack of the economy, it seeks run is expected in October, of development in Ghana’s agribusiness to first strengthen areas The 1D1F programme sector: “This is very, very, very shamewithcommercialproduction where the country has a is expected to create ful for a country that has 12 months of due to start in December. competitive advantage. between 7,000 and Agro-processing is one of Withpreviousexperiences sunlight and over nine months of rain.”

15,000 jobs in each of Ghana’s 216 districts in mind, many critics are those subsectors. And in He stresses that, as the maiden project by the end of 2020. sceptical about the potenJanuary, the government of 1D1F, the Ekumfi plant is vital to the announced that three successofthepolicy:“AcountrylikeCosta tial of the 1D1F initiative. other agribusinesses were in their early Rica has taken over [in juice production], Mahama Iddrisu of EEAR Private Equity but we are all in the same zone. So, the Management says the challenges with stages through the 1D1F programme. the pioneer factory feed the perception They include cassava farms and proquestion is: why don’t we churn Ekumfi pineapple out, churn out other fruits and that the policy is a pipe dream. He says: cessing plants in Brong Ahafo Region, food industries to be able to have that “These things should have been done Eastern Region and Volta Region.

Maxwell Adombila in Accra import substitution and be competitive?” within the shortest possible time. But if

Factory scheme will bear fruit in the end, say officials

SOURCE: GOVERNMENT OF GHANA

A

7,000

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58

Time to tighten up

After another bad year for African corporates, it’s the moment to heed calls for ground-up corporate governance reform in order to attract the heavyweight capital flows that the continent urgently needs

F

or the fourth year running, the turnover of Africa’s 500 largest companies fell in our exclusive rankings. And though the drop was less steep – 6.7% for the companies’ 2016 financial year results compared to 12.6% the previous year – it means turnover is back to where it was in 2008. Back then,Africa’scorporatetitansmade $566.9bn. After a neat parabola of African corporate rise and fall, the 2016 turnover was $569.2bn.

This certainly puts a gloss on the enthusiasm of recent years.

Even after the 2008 financial crash, Africa’s top firms only paused before regaining their stride.

And while in 2013 and the first half of 2014 some of the losses could be ascribed to weakening currencies – our Top 500 ranking is based on United States dollar values – after that more nefarious factors kicked in.

The dramatic impact of the slump in commodity prices, the

collapse in public finances and the hike in financing rates have played their part. And, more recently, sliding local currencies, like in Egypt and Nigeria, also complicated access to foreign exchange for corporates dependent on importing inputs.

Glass-half-full folk will point to a far greater resilience across the continent. Yes, overall economic growth declined rapidly in 2016 but hit 1.6% on average, rather than tipping wildly into negative rates. Those big economies that did go into the red – Nigeria and South Africa – have pulled themselves back into modest growth rates this year.

Those worried about the management of the heavy hitters at the top of the corporate pile in Africa are seeing fewer reasons to cheer.

In Algeria, for example, our number one company of the Top 500, the national oil firm Sonatrach (#1), has seen a spectacular collapse in its turnover, which dropped from $61.9bn in 2014 to $33.2bn in 2015 and to $30.2bn in

FOTOLIA

By Nicholas Norbrook

60 BUSINESS TOP 500 COMPANIES

2016. It remains, by far, the largest company in our rankings.

Shareholders are also nervously following the travails of Steinhoff (#2), the South African retail conglomerate engulfed in a major accounting scandal. They have seen thevalueoftheirholdingsplummet by 80% since the beginning of December2017,when thetroubles were announced. The shredding of the reputation of KPMG’s South Africa operations, alongside the Steinhoff debacle, suggest that fixing the ways accountants work would go a long way to improving African capitalism. Those will be some of the key themes of the annual Africa CEO Forum to be held inAbidjanon26-27Marchthisyear.

Indeed, given that South African companies represent 152 of our Top500companiesandfullyhalfof the global turnover of the ranking, issues of corporate governance in South Africa rank near the top of the list of things that would usefully boostcompanyperformanceinthe years ahead, regardless of market conditions and global demand.

THE WAY TO RECOVERY

But to reassure those who are not holding their breath over activist-backed improvements to issues of corporate governance, globalmarketconditionsareneverthelessbecomingmoreclement.All of Africa’s main trading partners in Asia and the West are experiencing coordinated growth, which experts at the Organisation for Economic Cooperation and Development (OECD) and International Monetary Fund predict will last a few years, at least – and this providesachangetotheunpredictable headwinds of recent years.

In 2017, the global economy had its best year since 2010: the Dow Jones Industrial Average in the US grew 25%, eurozone GDP growth outpaced the US – at 2.3% – while buoyant consumers in the West kept Asia’s factories spinning. That, in turn, is having an impact on commodity prices, a reliable proxy for economic growth in Africa.

Certain industries are already feeling a spring in their step today. While the oil and gas sector shrank as a share of our rankings,

Sector by sector Number of companies

ICT/Telecoms $64.2bn

Transport $27.7bn

Financial services $33.7 bn

24 4.9%

52

5.9%

11.3%

Mining

$43.2bn 50

Total 2016 turnover

7.6%

39

Other*** $28.9bn

5.1%

500

5.2% 13.9% Oil & gas $78.8bn

51

Utilities $35.0bn

29

commodity prices strengthened through 2017 and should continue to do so in 2018 (see page 78).

Industrial metal prices were up 24% in 2017 and should continue to rise according to Goldman Sachs, whose December 2017 research note also predicted a higher oil price, at around $62 per barrel, for the year ahead.

That will stabilise government spending in resource-dependent economies like Nigeria, Angola and South Africa. This, in turn, improves the outlook for many large corporates, given the significant role government spending plays in so many economies.

Given the backward-facing nature of our corporate data, which

Combined turnover of Top 500 companies ($bn) 711.6 689.9

586.9 566.9

74

23 38

Retail

$54.1bn 29 ** Includes food & drink, agro-food industry *** Includes media, healthcare, tourism, audit & consulting

* Includes paper, steelmaking, electrical equipment, textiles, automobile, chemicals & plastics

736.8

Construction $29.4bn

9.5% 6.2%

50

Agribusiness** $51.2bn

9%

Number of companies

10.5%

Manufacturing* $62.9bn

11.1%

$569.2bn

Diversified $59.5bn

41

728.7 698.2

610.4 569.2

2008 2009 2010 2011 2012 2013 2014 2015 2016

charts the 2016 financial year, these changes will not show up in our rankings for some time.

But the sobering curve shown over these past years gives pause for thought for the boosters of Africa’s economic success over the past decade.

Huge structural reforms are necessary to put the continent’s firms on a sounder footing. There are $36.9trn in OECD-country pension funds that will not invest in African companies without serious improvements to the ways companies operate. To attract a greater share of global investment, Africa could take a leaf out of Asia’s book: over the past two decades, Asian companies drastically improved their governance.

Investors responded, creating a fundamentalrealignmentinglobal trade and launching the ‘Asian century’. In 2016, Singapore alone attractedalmostasmuchinforeign direct investment as 54 African countries. If African countries take the same path as their counterparts in Asia, the rewards could be huge: small and medium-sized enterprises could increase their access to the continent’s liquid banks; big corporates could attract global pension funds; and private equity could find ready exits from their investments.

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TOP 500 COMPANIES BUSINESS 61

Top climbers Company

Country

Alliances Dév. Immobilier (#315)________

Turnover $000

% turnover change

Morocco____________ 349,679______

Jumia Nigeria (#358)__________________ Nigeria_____________ 292,183______

268% 98%

Steinhoff International Holdings (#2)______ South Africa_________ 17,304,461____ 98% Rössing Uranium Mine (#430)___________ Namibia____________ 224,571______

88%

Oando (#83)________________________

85%

Nigeria ____________ 1,481,176_____

Top fallers Company

Country

Turnover $000

% turnover change

_ Qalaa Holdings (#262)________________

Egypt______________ 430,899______

-59%

EgyptAir Airlines (#152)________________

Egypt______________ 745,365______

-59%

EgyptAir Holdings (#121)_______________

Egypt______________ 949,641_______ -58%

Seplat Petroleum Development Co.(#396)__ Nigeria_____________ 254,217_______ -55% Orange Egypt (#189)________________

But it is is not just African companies that need to put their shoulders to the wheel. Governments across the continent are responsible for bringing down the costs of getting goods from point A to point B, reducing the cost of powering factoriesandprovidingaworkforce that is up to the job.

PRICE OF DOING BUSINESS

Compare, for example, how two countries are exploiting their gas resources. Mozambique has chosen an export strategy, planning to sell its gas on global markets.

Tanzania, on the other hand, is developing the gas to build an industrial corridor around the Dar es Salaamareainadditiontoliquefied natural gas plants for exports. “Dar es Salaam is going to be one of the supercities of this century,” says AndrewMoorfieldofExotixCapital,

Egypt______________ 647,349_______ -55%

which recently financed the acquisition of PanAfrican Energy by Tanzania’s Swala, a locally listed oil and gas company. “There are pipes into the various factories.

They are developing clusters with economies of scale, moving the country away from agriculture and tourism,” Moorfield adds.

Cement production – which largely relies on a cheap power source, such as natural gas – is also a bellwether. Tanzania’s price per tonne is among the cheapest, at $75. Kenya pays $95, Nigeria pays $120, Ghana pays $125 and Angola $205. The development of gas-to-power plants and other cheap sources of electricity leads to lower costs cascading through the economy, raising the competitiveness of nearly all companies.

Another country working hard to push the price of doing

$75

Price per tonne of cement in Tanzania SOURCE: EXOTIX

business down is Ethiopia, where cement is $85 per tonne. Chinese telecom company Transsion, which has made several fortunes selling handsets to markets across Asia and Africa, is building a factory in Addis Ababa. Transsion, which sells under the Itel brand of handsets, will still be shipping phones from Chinese factories to consumers in West Africa.

But for the eastern side of the continent, Ethiopia will become a production and distribution hub for the company. And while Ethiopia has competitive power and logistics costs thanks to new hydroelectric dams and train tracks to the port in Djibouti, “don’t forget of course Ethiopian Airlines, which can connect you to any African market,” says Arif Chowdhury, group vice-president for Transsion.

Another area of growth potential for the continent is agribusiness (see page 76), argues Mo Dewji, chief executive officer of MeTL Group. In particular, there are many opportunities to add value to raw materials. “Our tariffs protect manufacturers in the country. So, if you want to bring in finished goods, it is 25% tax.

[But] if you bring in raw materials, it’s 0% tax. Look for any natural resources that you can value add to, like for example go into juice or tinning tomatoes.” He is currently in the process of setting up a pasta factory in partnership with a company from the United States.

Ultimately, government and businesswillneedtoworktogether to turn around corporate performance on the continent. Attracting heavyweight investors, who can bring the strong capital flows that Africa needs, depends on it.

Methodology THIS YEAR, MORE THAN 1,119 COMPANIES responded to our questionnaire. After cross-checks and verification, we established a ranking of Africa’s top 1,444 companies, which includes responses from previous years. The top-ranking 500 are published. To allow for comparison, we apply the same rules to all our data: THE AFRICA REPORT

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1) All financial data must have a clearly defined source, generally communicated to us by the companies themselves, and must refer to the year 2016 (in some cases 2016/2017); 2) If presented in the local currency we convert the data into US dollar amounts according to the rate on 31 December 2016; 3) We include all companies that

fall under legal jurisdiction of at least one of the 54 countries in Africa, which is why a holding company and a subsidiary can both feature in the list; and 4) Where we cannot obtain up-to-date figures, we use those of the previous year (marked with an asterisk and italics). After two years of silence, a company is struck off the rankings.

“The refinery is the largest single line in Africa. It will meet our total domestic requirement and save on foreign exchange.”

62 BUSINESS TOP 500 COMPANIES

Aliko Dangote President of Dangote Group (#39)

RANKINGS 1-50 Rank Rank 2016 2015 Diff.

Company

Country

Turnover (2016)

Turnover change

Net profits

1

1

Petroleum

Algeria

30 242 200

-9%

184 230

2

7

+5 Steinhoff International Holdings

Wood and paper

Algeria

17 304 461

98%

1 517 917

3

2

-1 Sonangol

Petroleum

South Africa

14 711 363

-15%

79 690

4

3

-1 The Bidvest Group*

Diversified

Angola

13 290 847

NA

399 497

5

5

Utilities

South Africa

12 856 531

21%

64 451

6

4

-2 Sasol

Chemicals

South Africa

12 552 130

4%

1 090 660

7

6

-1 MTN Group

ICT/Telecoms

South Africa

10 736 034

13%

(225 216)

8

8

Retail

South Africa

9 437 432

28%

351 795

9

10

Diversified

South Africa

8 626 060

24%

232 837

10

9

11

22

12

15

13

13

- Sonatrach

Sector

- Eskom

- ShopRite Holdings +1 Imperial Holdings -1 Bidfood (ex BidCorp)*

Agribusiness

South Africa

7 561 953

NA

257 139

Retail

South Africa

6 693 836

39%

131 733

Retail

South Africa

6 645 780

21%

95 994

- The Bidvest Group South Africa

Diversified

South Africa

6 554 152

16%

5 929 485

Insurance

South Africa

6 292 323

14%

767 751

Media

South Africa

6 098 000

3%

2 808 000

+11 SPAR Group +3 Massmart Holdings

14

14

- Sanlam

15

12

-3 Naspers

16

11

-5 Datatec

Media

South Africa

6 083 383

-6%

3 038

17

20

+3 Vodacom Group

ICT/Telecoms

South Africa

5 899 157

14%

952 685

18

23

+5 Pick n Pay Stores Group

Retail

South Africa

5 742 370

20%

90 253

19

-

Petroleum

South Africa

5 503 959

NA

245 974

20

16

-4 Suez Canal Authority*

Ports

Egypt

5 175 600

NA

-

21

17

-4 Sappi

Wood and paper

South Africa

5 141 000

-5%

319 000

22

32

Retail

South Africa

4 861 263

29%

315 941

23

27

+4 Barloworld

Diversified

South Africa

4 829 981

19%

143 636

24

28

+4 Transnet

Transports

South Africa

4 752 393

18%

200 684

- Engen Petroleum

+10 Woolworths Holdings

25

18

-7 Vodacom South Africa

ICT/Telecoms

South Africa

4 698 031

16%

-

26

30

+4 Anglo American Platinum Corporation

Mining

South Africa

4 498 218

18%

50 516

27

26

-1 AngloGold Ashanti

Mining

South Africa

4 254 000

2%

80 000

28

24

-4 Office Chérifien des Phosphates

Mining

Morocco

4 173 200

-13%

371 325

+94 Orascom Construction Industries

53 000

29

123

30

25

31

43

-5 SABMiller South Africa* +12 Old Mutual Life Assurance Company

Construction

Egypt

4 033 100

NA

Food and drink

South Africa

3 804 000

NA

-

Insurance

South Africa

3 645 258

29%

581 656 550 059

32

38

+6 Groupe Maroc Telecom

ICT/Telecoms

Morocco

3 463 862

10%

33

35

+2 MTN Nigeria

ICT/Telecoms

Nigeria

3 420 115

2%

-

34

40

+6 Mediclinic Corporation

Healthcare

South Africa

3 381 710

8%

298 929

35

36

+1 ONEE

Utilities

Morocco

3 361 687

3%

77 644

36

33

-3 Société Nationale d’Investissement

Diversified

Morocco

3 291 346

-2%

435 253 (88 689)

37

29

-8 Sonelgaz

Utilities

Algeria

3 198 616

5%

38

31

-7 Naftal*

Petroleum services

Algeria

3 132 588

NA

-

39

-

Diversified

Nigeria

3 100 000

NA

1 120 000

- Dangote Group*

40

48

+8 MTN South Africa

ICT/Telecoms

South Africa

3 042 699

17%

-

41

34

-7 Liberty Group

Insurance

South Africa

2 996 683

18%

179 853

42

44

+2 Telkom

ICT/Telecoms

South Africa

2 973 603

23%

279 723

43

41

-2 Global Telecom Holding

ICT/Telecoms

Egypt

2 955 500

2%

193 900 808 832

44

56

+12 Kumba Iron Ore

Mining

South Africa

2 914 450

24%

45

55

+10 Transnet Freight Rail

Air transport

South Africa

2 838 894

18%

-

46

42

-4 Gold Fields

Mining

South Africa

2 749 500

8%

173 700

47

51

+4 Impala Platinum Holdings

Mining

South Africa

2 607 945

24%

(3 121)

48

49

+1 Aspen Pharmacare Holdings

Pharmaceuticals

South Africa

2 583 848

10%

312 094

49

61

+12 Network Healthcare Holdings

Healthcare

South Africa

2 452 914

12%

76 064

50

37

-13 Aveng

Diversified

South Africa

2 449 938

-23%

(4 718)

2016 results in thousands of US dollars; *in italics 2015 results; NA: not available

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71.9% RANKINGS 51-100 Rank Rank 2016 2015 Diff.

Company

63

Share of Kenya’s 41 million mobile subscribers controlled by Safaricom (#62).

The company is planning a regional expansion starting in 2018.

Sector

Country

Turnover (2016)

Turnover change

Net profits

51

57

+6 Ethiopian Airlines

Air transport

Ethiopia

2 416 678

5%

52

73

+21 Discovery Health

Insurance

South Africa

2 400 511

34%

270 723

53

66

+13 ArcelorMittal South Africa

Metals

South Africa

2 376 051

18%

(341 561)

Retail

South Africa

2 304 277

20%

-

Agribusiness

South Africa

2 303 544

12%

284 804

54

54

- Masscash

55

64

+9 Tiger Brands

56

95

+39 Sibanye Gold

57

60

58

74

59

59

+3 Wilson Bayly Holmes - Ovcon +16 MMI Holdings - Cevital

272 061

Mining

South Africa

2 267 450

54%

237 409

Construction

South Africa

2 224 599

16%

52 392

Insurance

South Africa

2 102 715

18%

-

Agribusiness

Algeria

2 098 754

-6%

161 944 -

60

65

+5 Maroc Telecom

ICT/Telecoms

Morocco

2 087 435

2%

61

63

+2 Soc. Tunisienne des Industries de Raffinage*

Petroleum services

Tunisia

2 084 017

NA

-

62

68

+6 Safaricom

ICT/Telecoms

Kenya

2 039 486

9%

464 055

63

46

-17 JD Group*

Retail

South Africa

2 033 750

NA

(149 308)

64

81

+17 Remgro

Diversified

South Africa

2 010 248

21%

395 779

65

71

+6 The Arab Contractors

Construction

Egypt

2 000 238

NA

22 623

66

53

-13 Dangote Cement

Construction

Nigeria

1 999 085

-18%

606 528

67

50

-17 Edgars Consolidated Stores

Retail

South Africa

1 990 507

5%

1 555 027

68

88

+20 Foschini

Retail

South Africa

1 917 099

24%

170 744

69

77

+8 Blue Label Telecoms

ICT/Telecoms

South Africa

1 909 716

12%

57 118

70

69

-1 Masswarehouse

Retail

South Africa

1 906 698

24%

-

71

39

Construction

South Africa

1 897 822

-4%

54 653

-32 Murray & Roberts Holdings

72

106

73

82

74

93

+19 Clicks Group

75

78

+3 RCL Foods

76

76

77

67

78

109

79

91

80

+34 Super Group +9 Santam

- Flour Mills of Nigeria -10 Soc. Tunisienne de l’électricité et du Gaz

Auto industry

South Africa

1 883 379

47%

91 360

Insurance

South Africa

1 880 475

19%

53 637

Retail

South Africa

1 853 038

23%

79 393

Food and drink

South Africa

1 816 326

20%

16 446

Agribusiness

Nigeria

1 704 509

0%

28 718

Utilities

Tunisia

1 610 025

-14%

(151 875) 111 192

+31 Distell Group

Food and drink

South Africa

1 558 301

23%

+12 Middle East Oil Refineries*

Petroleum services

Egypt

1 526 245

NA

99 893

115

+35 Exxaro Resources

Mining

South Africa

1 516 704

28%

413 053

+30 Pioneer Foods Group

122 675

81

111

82

87

Food and drink

South Africa

1 495 126

23%

Retail

South Africa

1 491 120

18%

83

154

-

+71 Oando

Petroleum services

Nigeria

1 481 177

85%

11 356

84 85

101

+17 Cosider

Construction

Algeria

1 463 160

11%

277 182

94

+9 Sonatel

ICT/Telecoms

Senegal

1 457 543

1%

347 567

Mining

Zambia

1 449 000

10%

-

Retail

South Africa

1 434 399

11%

164 249 (21 919)

86

79

87

103

88

75

89

-

90

90

+5 Massdiscounters

-7 Kansanshi Mining +16 Mr Price Group -13 Allied Electronics Corporation

Electrical equipment South Africa

1 431 060

-17%

- Ethio Telecom

ICT/Telecoms

Ethiopia

1 420 480

NA

-

- Royal Air Maroc

Air transport

Morocco

1 417 144

5%

22 698

+30 Nampak

Wood and paper

South Africa

1 389 101

24%

107 295

-45 Elsewedy Electric

Electrical equipment Egypt

1 352 993

-48%

21 725

91

121

92

47

93

113

+20 AECI

Chemicals

South Africa

1 349 698

13%

-

94

114

+20 Harmony Gold Mining Company

Mining

South Africa

1 330 682

42%

68 878

+30 Tongaat Hulett Group

Food and drink

South Africa

1 300 271

20%

79 330

-34 Ezz Steel Company

Metals

Egypt

1 273 091

-40%

8 919

95

125

96

62

97

108

+11 Mohammed Enterprises Tanzania

Diversified

Tanzania

1 256 464

-2%

-

98

126

+28 Truworths International

Retail

South Africa

1 208 747

65%

204 458

99

137

+38 Life Healthcare Group

Healthcare

South Africa

1 190 602

25%

142 983

100

124

+24 Omnia Holdings

Chemicals

South Africa

1 180 804

9%

42 967

2016 results in thousands of US dollars; *in italics 2015 results; NA: not available

THE AFRICA REPORT

•

N ° 97

•

F E B R UA R Y 2 018

64 BUSINESS TOP 500 COMPANIES

Shares of South African miner Lonmin (#104) jumped more than 20% on the news, announced in December, of a £285m ($385.6m) takeover by Sibanye-Stillwater.

RANKINGS 101-150 Rank Rank 2016 2015 Diff.

Company

Sector

Country

Turnover (2016)

Turnover change

Net profits

101

129

+28 Kap International Holdings

Diversified

South Africa

1 178 119

16%

86 588

102

131

+29 Adcorp Holdings

Services

South Africa

1 166 575

15%

(11 636)

103

151

+48 Poulina Group Holding

Diversified

Tunisia

1 119 814

41%

38 880

104

105

Mining

South Africa

1 118 000

-14%

(400 000)

+1 Lonmin

105

191

+86 Condor Electronics

Electrical equipment Algeria

1 106 000

62%

50 000

106

133

+27 Hosken Consolidated Investments

Diversified

1 076 337

10%

237 662

South Africa

107

144

+37 RMI Holdings

Insurance

South Africa

1 070 845

21%

240 022

108

128

+20 Saham Finances

Insurance

Morocco

1 051 600

2%

74 786

109

86

-23 Marjane Holding*

Retail

Morocco

1 049 004

NA

-

110

104

Insurance

South Africa

1 047 257

25%

243 070

111

116

+5 Optimum Telecom Algeria

ICT/Telecoms

Algeria

1 040 000

-12%

-

112

97

-15 Société Nationale des Hydrocarbures

Petroleum

Cameroon

1 031 685

-24%

8 593

113

96

-17 Nigerian Breweries

Food and drink

Nigeria

1 019 665

-30%

92 355

114

122

+8 Kenya Airways

Air transport

Kenya

1 018 134

-9%

(97 783)

115

140

33 169

116

110

117

150

-6 PSG Group

+25 Group Five Holdings -6 Ooredoo Algeria +33 KenolKobil

Construction

South Africa

999 689

11%

ICT/Telecoms

Algeria

998 580

-3%

-

Petroleum

Kenya

991 472

19%

23 119

118

132

+14 Société Nationale de Raffinage*

Refining

Cameroon

977 087

NA

(86 902)

119

155

+36 Tsogo Sun Holdings

Tourism

South Africa

959 653

20%

221 296

120

130

+10 Olam Group Côte d’Ivoire

Agribusiness

Côte d’Ivoire

955 276

-6%

(6 642)

121

58

-63 EgyptAir Holdings

Diversified

Egypt

949 641

-58%

-

122

161

+39 Compagnie Ivoirienne d’Électricité

Utilities

Côte d’Ivoire

949 313

14%

17 356

123

102

-21 Total Nigeria

Petroleum services

Nigeria

945 596

-9%

48 091

124

208

+84 EOH Holdings

ICT/Telecoms

South Africa

926 252

47%

67 526

125

139

+14 Massbuild

Construction

South Africa

920 830

18%

-

126

173

+47 Anglovaal Industries

Food and drink

South Africa

884 670

21%

107 506

+63 Sun International

Tourism

South Africa

884 460

29%

65 249

Utilities

Tanzania

880 990

NA

(56 730) 27 000

127

190

128

-

- Tanzania Electric Supply Company*

129

172

+43 Astral Foods

Agribusiness

South Africa

867 621

19%

130

147

+17 Illovo Sugar*

Agribusiness

South Africa

854 200

NA

43 618

131

70

-61 Total Kenya

Petroleum services

Kenya

853 204

-26%

21 405

132

148

+16 Novignis*

Insurance

Nigeria

839 276

NA

15 609

133

83

-50 Ghabbour Auto

Auto industry

Egypt

839 183

-46%

(54 341)

134

186

+52 Invicta Holdings

Auto industry

South Africa

836 693

21%

4 440

135

169

+34 Kenya Power and Lighting

Utilities

Kenya

834 234

12%

72 388

136

156

+20 IBL Group (ex GML)

Diversified

Mauritius

828 224

5%

42 045

137

197

+60 Transnet Port Terminals

Transport

South Africa

809 267

22%

-

138

236

+98 LafargeHolcim Maroc (ex Lafarge Ciments)

Construction

Morocco

803 079

54%

191 705

139

252

Electrical equipment South Africa

796 140

54%

27 697

140

183

+43 Rand Water

Financial services

South Africa

794 816

25%

157 133

+113 Pinnacle Technology Holdings

141

240

+99 Taqa Morocco

Utilities

Morocco

790 932

-12%

96 146

142

112

-30 Total Maroc

Petroleum services

Morocco

789 523

-25%

88 094

143

184

+41 Orange Côte d’Ivoire

ICT/Telecoms

Côte d’Ivoire

777 341

11%

77 895

144

85

-59 Telecom Egypt

ICT/Telecoms

Egypt

775 906

-50%

146 726

145

265 +120 Compagnie Sucrière Marocaine de Raffinage

146

-

- PGI Holding - Amengroup

Agribusiness

Morocco

772 844

10%

91 745

Diversified

Tunisia

770 062

-11%

79 554 -

147

164

+17 Holding Marocaine Commerciale et Financière

Diversified

Morocco

767 607

1%

148

178

+30 Transnet National Ports Authority

Transport

South Africa

753 308

5%

-

149

84

-65 PetroSA

Petroleum services

South Africa

751 717

-26%

(101 581)

150

167

+17 Anouar Invest*

Diversified

Morocco

750 259

NA

19 044

2016 results in thousands of US dollars; *in italics 2015 results; NA: not available

THE AFRICA REPORT

•

N ° 97

•

F E B R UA R Y 2 018

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66 BUSINESS TOP 500 COMPANIES

Botswanan multinational Choppies Enterprises (#178) jumped 70 places in this year’s ranking of theTop 500 Companies, climbing from #248 last year.

RANKINGS 151-200 Rank Rank 2016 2015 Diff.

151

Company

258 +107 MTN Ghana

152

72

153

141

154

89

155

163

156

-

157

189

+32 Label’ Vie

158

182

+24 CMH Group

159

98

160

218

-80 EgyptAir Airlines

Turnover (2016)

Turnover change

Net profits

Sector

Country

ICT/Telecoms

Ghana

746 921

46%

-

Air transport

Egypt

745 365

-59%

(70 253)

-12 Mota-Engil Africa

Construction

South Africa

745 208

-17%

-

-65 Total Gabon

Petroleum services

Gabon

745 097

-11%

6 468

Construction

South Africa

743 400

-3%

-

ICT/Telecoms

Nigeria

742 950

NA

-

Retail

Morocco

742 551

8%

16 213

Auto industry

South Africa

742 123

4%

14 326

+8 Aurecon - 9mobile (ex Etisalat Nigeria)

-61 Al Ezz Dekheila Steel Company

Metals

Egypt

741 754

-45%

-

+58 Zeder Investments

Agribusiness

South Africa

740 969

23%

(53 854)

161

180

+19 Groupe SIFCA

Agribusiness

Côte d’Ivoire

733 252

2%

15 483

162

237

+75 Hulamin

Metals

South Africa

733 011

35%

27 938

163

170

Wood and paper

South Africa

732 956

18%

28 800

164

176

+12 IHS Towers Group*

ICT/Telecoms

Mauritius

723 100

NA

-

165

203

+38 Wafa Assurance

Insurance

Morocco

718 674

11%

82 637

166

99

167

221

+7 Mpact

-67 Lafarge Africa

Construction

Nigeria

714 071

-46%

54 921

+54 Clover Holdings

Food and drink

South Africa

712 642

19%

25 469

168

-

ICT/Telecoms

Sudan

709 000

-1%

91 000

169

192

+23 Tarkwa Mines

- Zain Sudan

Mining

Ghana

708 900

4%

116 900

170

262

+92 Growthpoint Properties

Construction

South Africa

708 671

41%

433 085

171

222

+51 Pretoria Portland Cement Company

Construction

South Africa

699 744

17%

1 960

172

160

-12 Douja Promotion

Construction

Morocco

699 241

-2%

110 221

173

153

-20 Lyonnaise des Eaux de Casablanca

Utilities

Morocco

698 039

0%

15 722

174

117

-57 African Rainbow Minerals

Mining

South Africa

696 768

5%

(54 943)

+18 Driefontein Mine

Mining

South Africa

682 332

28%

126 616

Rail transport

South Africa

680 800

-2%

(272 683)

175

193

176

185

177

220

+43 Trencor

Sea transport

South Africa

680 292

13%

+70 Choppies Enterprises

Retail

Botswana

677 801

29%

9 649

Insurance

Ghana

673 574

NA

359 807

Food and drink

Morocco

670 526

-1%

5 797

Petroleum

Ghana

666 600

-23%

-

Construction

South Africa

664 078

5%

(10 872) (340 594)

+9 Transnet Rail Engineering

178

248

179

-

180

159

181

-

182

207

+25 Stefanutti Stocks Holdings

- Social Security and National Insurance Trust* -21 Centrale Danone - Tullow Ghana

183

196

+13 Volta River Authority*

Utilities

Ghana

662 887

NA

184

149

-35 Société Nationale Burkinabé d’Hydrocarbures

Petroleum services

Burkina Faso

656 697

-22%

17 822

185

198

+13 Grindrod

Transport

South Africa

655 543

-1%

133 547 100 202

186

187

Insurance

Nigeria

653 664

-5%

187

256

+69 Raubex

+1 African Reinsurance Corporation

Construction

South Africa

653 630

27%

29 747

188

263

+75 Metair Investments

Auto industry

South Africa

649 860

30%

33 972

189

92

-97 Orange Egypt

ICT/Telecoms

Egypt

647 349

-55%

(140 187)

190

201

+11 Kloof Gold Mining Company

Mining

South Africa

645 302

49%

117 202

191

205

+14 Société Maghrebine de Génie Civil de Guinea Eq.* Construction

Eq. Guinea

641 259

NA

-

192

162

-30 Société Africaine de Raffinage

Refining

Senegal

630 962

-18%

19 840

193

266

+73 Cashbuild

Construction

South Africa

629 243

26%

32 081

194

194

Air transport

South Africa

628 078

17%

148 361

- Airports Company South Africa

195

175

-20 Mondi Group South Africa

Wood and paper

South Africa

625 272

-12%

-

196

206

+10 Econet Wireless

ICT/Telecoms

Zimbabwe

621 705

-3%

36 188 7 455

197

238

+41 Ghana Oil Company

Petroleum services

Ghana

620 118

14%

198

260

+62 Sanam Agro

Agribusiness

Morocco

619 655

21%

-

199

241

+42 Reunert

Electrical equipment South Africa

617 728

15%

69 895

200

250

+50 East African Breweries Kenya

Food and drink

616 350

21%

-

Kenya

2016 results in thousands of US dollars; *in italics 2015 results; NA: not available

THE AFRICA REPORT

•

N ° 97

•

F E B R UA R Y 2 018

“Product supply challenges are expected, and management focus will be on securing adequate products to sustain operations. ” Alex Siyavora CEO of OK Zimbabwe (#243)

RANKINGS 201-250 Rank Rank 2016 2015 Diff.

Company

Sector

Country

Turnover (2016)

Turnover change

Net profits

201

213

+12 East African Breweries Group

Food and drink

Kenya

616 207

0%

98 394

202

-

- Nigerian Bottling Company

Food and drink

Nigeria

615 495

NA

-

203

-

- Renault Retail Maroc*

Auto industry

Morocco

611 828

NA

-

204

251

Insurance

Tunisia

606 084

17%

99 126

205

-

+47 Caisse des Dépôts et Consignations Gestion - Société Nationale Industrielle et Minière

206

315 +109 Oceana Group

Mining

Mauritania

603 647

69%

4 505

Agribusiness

South Africa

598 349

50%

69 553 7 199

207

145

-62 Soc. Nat. de Distribution des Pétroles AGIL

Petroleum services

Tunisia

596 442

NA

208

219

+11 Catoca Sociedade Mineira

Mining

Angola

593 617

2%

-

209

165

-44 Nestlé Nigeria

Food and drink

Nigeria

591 211

-21%

25 756

210

166

-44 Rainbow Chicken*

Food and drink

South Africa

588 767

NA

36 249

211

152

-59 Innscor Africa

Agribusiness

Zimbabwe

586 911

-28%

28 223

212

224

+12 Pharmacie Centrale de Tunisie*

Healthcare

Tunisia

584 753

NA

28 706

213

291

+78 Compagnie Minière de l’Ogooué (Comilog)

Mining

Gabon

579 600

32%

11 785

214

232

+18 RMA (ex RMA Watanya)

Insurance

Morocco

575 804

3%

-

215

234

+19 Johannesburg Water

Utilities

South Africa

573 658

21%

51 780

216

255

+39 Axian Group

Diversified

Madagascar

571 000

11%

-

217

257

+40 RMB Holdings

Insurance

South Africa

557 197

9%

548 632

218

261

+43 Dangote Sugar Refinery

219

204

220 221

Agribusiness

Nigeria

551 606

10%

46 787

-15 South African Broadcasting Corporation

Media

South Africa

546 179

6%

(70 900)

209

-11 Inwi*

ICT/Telecoms

Morocco

544 104

NA

-

272

+51 Total Côte d’Ivoire*

Petroleum services

Côte d’Ivoire

541 546

NA

9 043

222

284

+62 Société Nationale d’Électricité

223

225

Utilities

Senegal

540 229

2%

49 115

+2 SA des Brasseries du Cameroun

Food and drink

Cameroon

538 867

-8%

21 413

-8 Orange Maroc (ex Médi Télécom)*

-

224

216

ICT/Telecoms

Morocco

535 695

NA

225

247

+22 Orange Mali

ICT/Telecoms

Mali

527 597

8%

-

226

243

+17 Air Mauritius

Air transport

Mauritius

524 712

-2%

29 041 292 484

227

273

+46 Société des Mines de Loulo

Mining

Mali

524 358

29%

228

301

+73 MTN Côte d’Ivoire

ICT/Telecoms

Côte d’Ivoire

520 834

25%

-

229

312

+83 Biopharm

Pharmaceuticals

Algeria

519 454

29%

51 015

230

-

Auto industry

Morocco

502 591

NA

-

231

288

+57 Auto Hall

- Soc. Marocaine de Constructions Automobiles*

Auto industry

Morocco

497 553

12%

18 826 31 581

232

286

+54 Ciel Group

Diversified

Mauritius

495 190

10%

233

287

+54 Metropolitan Life

Insurance

South Africa

494 705

10%

-

234

300

+66 Essakane Gold Mine*

Mining

Burkina Faso

487 100

NA

2 900

235

223

-12 Pétrole du Maghreb*

Petroleum services

Morocco

484 656

NA

-

236

253

+17 Eneo Cameroon

Utilities

Cameroon

484 302

2%

4 071

237

-

238

242

239

212

240

- Société Tunisienne de l’Air

Air transport

Tunisia

483 029

-1%

(82 567)

Food and drink

Zimbabwe

482 968

-10%

69 885

-27 Forte Oil

Petroleum

Nigeria

482 967

-22%

9 394

308

+68 Redefine Properties

Construction

South Africa

475 275

16%

334 664 46 975

+4 Delta Corporation

241

293

+52 Sudatel Telecom Group

ICT/Telecoms

Sudan

475 175

9%

242

158

-84 Total Sénégal

Petroleum services

Senegal

472 601

-21%

(78)

243

292

+49 OK Zimbabwe

Retail

Zimbabwe

472 405

8%

6 057

244

309

+65 Zimplats Holdings

Mining

Zimbabwe

471 778

16%

7 327

245

174

-71 Tunisie Telecom

ICT/Telecoms

Tunisia

469 337

-12%

-

246

364 +118 North Mara Gold Mine

Mining

Tanzania

469 293

40%

-

247

264

+17 Tanzania Breweries

Food and drink

Tanzania

468 505

-6%

72 648

248

275

+27 Holding Al Omrane*

Construction

Morocco

467 046

NA

-

249

277

+28 CTP Holdings

Media

South Africa

464 875

14%

33 100

250

302

+52 Northam Platinum

Mining

South Africa

464 849

16%

(4 229)

2016 results in thousands of US dollars; *in italics 2015 results; NA: not available

THE AFRICA REPORT

•

N ° 97

•

F E B R UA R Y 2 018

67

68 BUSINESS TOP 500 COMPANIES

40%

RANKINGS 251-300 Rank Rank 2016 2015 Diff.

Company

Egyptian financial services firm Pioneers Holding (#296) will list 40% of its Rooya Real Estate shares on the Egyptian stock market in the first half of 2018.

Sector

Country

Turnover (2016)

Turnover change

Net profits

251

305

+54 Meikles Africa

Diversified

Zimbabwe

457 626

1%

(746)

252

195

-57 Julius Berger Nigeria

Construction

Nigeria

451 730

-32%

(12 405)

253

285

+32 Abu Qir Fertilizers & Chemical Industries*

Chemicals

Egypt

451 253

NA

114 990

254

328

+74 MTN Cameroon

ICT/Telecoms

Cameroon

449 198

19%

-

255

322

+67 Produce Buying Company

Agribusiness

Ghana

443 348

16%

(3 694)

256

339

+83 Zalar Holding

Agribusiness

Morocco

442 544

21%

9 606

257

271

+14 Vivo Energy Côte d’Ivoire

Petroleum

Côte d’Ivoire

436 324

-5%

7 066

258

321

+63 Bell Equipment

Auto industry

South Africa

435 650

14%

2 803

259

-

ICT/Telecoms

Tanzania

433 230

NA

2 976

260

324

Air transport

South Africa

432 546

13%

13 986

Vodacom Tanzania +64 Comair

261

327

+66 Saham Assurance Maroc

Insurance

Morocco

431 558

14%

27 709

262

127

-135 Qalaa Holdings

Diversified

Egypt

430 899

-59%

(225 447)

263

299

+36 Groupe Managem

Mining

Morocco

430 074

-1%

28 348

264

210

-54 Ooredoo Tunisia

ICT/Telecoms

Tunisia

429 397

-10%

-

265

319

+54 Beatrix Gold Mine

Mining

South Africa

427 053

37%

55 161

266

280

+14 Société Magasin Général

Retail

Tunisia

425 683

-8%

2 478

267

269

Agribusiness

Burkina Faso

423 976

-4%

6 151

268

333

+65 CECA-GADIS Group

Retail

Gabon

421 176

13%

3 542

269

211

-58 Aveng Steel (ex Aveng Trident Steel)

Metals

South Africa

420 964

-3%

-

270

267

Petroleum services

Cameroon

420 378

-18%

14 046

-128 Eastern Company

Agribusiness

Egypt

417 959

-53%

81 029

- Vodacom DRC

ICT/Telecoms

DRC

415 593

NA

(57 411) 38 644

271

143

272

-

273

388

274

-

275

352

+2 Société Burkinabé des Fibres Textiles

-3 Tradex

+115 Merafe Resources - CDG Développement +77 Kaap Agri Limited - Electricidade de Moçambique

Mining

South Africa

413 820

44%

Services

Morocco

410 629

20%

-

Agribusiness

South Africa

410 283

18%

15 272

276

-

277

331

Utilities

Mozambique

405 966

NA

(13 709)

Retail

South Africa

405 875

8%

278

-

25 984

Insurance

South Africa

403 479

NA

279

342

91 754

Pharmaceuticals

South Africa

402 500

12%

13 002

280

346

281

361

+66 African Oxygen

Chemicals

South Africa

401 875

13%

43 548

+80 Hudaco Industries

Auto industry

South Africa

401 675

18%

282

-

29 976

Insurance

South Africa

400 006

NA

283

282

-

Agribusiness

Côte d’Ivoire

398 919

-13%

2 818

284

365

285

120

-165 Entreprise Tunisienne d’Activités Pétrolières

ICT/Telecoms

Uganda

396 650

19%

-

Petroleum services

Tunisia

395 254

-34%

8 330

286

314

+28 Lesieur Cristal

Food and drink

Morocco

287

362

+75 Sefalana Holding Company

Food and drink

Botswana

395 211

-2%

16 856

393 032

16%

288

303

+15 Eclosia Group

Food and drink

Mauritius

11 532

391 742

5%

289

276

-13 Société de Fabrication des Boissons de Tunisie Food and drink

19 158

Tunisia

391 581

-8%

290

278

-12 Axa Assurance Maroc

61 170

Insurance

Morocco

385 973

-16%

291

358

+67 Mustek

9 498

Media

South Africa

383 686

11%

292

5 730

412 +120 Famous Brands

Tourism

South Africa

382 523

37%

33 010

293

188

Agribusiness

Egypt

380 571

-45%

16 896

294

325

+31 Ciments du Maroc

Construction

Morocco

379 875

1%

(13 401)

295

349

+54 Prosuma Group

Retail

Côte d’Ivoire

378 902

9%

1 778

296

231

-65 Pioneers Holding

Insurance

Egypt

377 722

-33%

38 665

+54 Lewis Group - Hollard Insurance +63 Adcock Ingram Holdings

- Munich Reinsurance Company of Africa -1 SAF-Cacao +81 MTN Uganda

-105 Egyptian Sugar and Integrated Industries Co.

297

177

-120 Al Ezz Rolling Mills

Metals

Egypt

377 547

-48%

-

298

168

-130 Oriental Weavers Company

Textile

Egypt

372 177

-50%

29 039

299

344

+45 Basil Read Holdings

Construction

South Africa

372 051

4%

(3 894)

300

403 +103 Namibian Power Corporation

Utilities

Namibia

366 088

26%

(20 925)

2016 results in thousands of US dollars; *in italics 2015 results; NA: not available

THE AFRICA REPORT

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F E B R UA R Y 2 018

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70 BUSINESS TOP 500 COMPANIES

Uganda’s electricity distributor Umeme (#311) recorded a USh47.5bn ($13m) net loss during the first half of 2017, down from USh54.4bn net profit during the same period in 2016.

RANKINGS 301-350 Rank Rank 2016 2015 Diff.

Company

Sector

Country

Turnover (2016)

Turnover change

Net profits

301

229

-72 Aveng Mining

Mining

South Africa

364 787

-6%

-

302

329

+27 Bamburi Cement

Construction

Kenya

364 366

-3%

56 426

303

307

+4 Groupe CFAO Congo*

Diversified

Rep. of Congo

363 445

NA

-

304

378

+74 Bulyanhulu Gold Mine

Mining

Tanzania

360 928

13%

-

305

157

-148 Talaat Moustafa Group

Construction

Egypt

359 600

-54%

45 511

306

467 +161 South Deep Gold Mine

Mining

South Africa

358 200

54%

13 000

307

374

+67 Société des Mines de Gounkoto

Mining

Mali

357 171

12%

189 166

308

367

+59 ENL Group

Diversified

Mauritius

357 067

8%

23 378

309

295

-14 MRS Oil

Petroleum services

Nigeria

356 314

-18%

4 764

310

214

-96 Copperbelt Energy Corporation

Utilities

Zambia

354 626

-42%

(112 570)

311

363

+52 Umeme

Utilities

Uganda

354 407

5%

26 932

312

298

-14 Seven-Up Bottling Company

Food and drink

Nigeria

351 900

-17%

(35 024)

313

359

314

318

315

375

316

-

+46 Egypt Kuwait Holding Company +4 Afriquia Gaz +60 Alliances Développement Immobilier - Perseus Mining Ghana

Diversified

Egypt

351 221

3%

62 543

Gas

Morocco

349 993

2%

47 037

Construction

Morocco

349 679

268%

14 184

Mining

Ghana

348 018

NA

(35 569) 4 802

317

281

-36 Eterna Oil & Gas

Chemicals

Nigeria

347 385

-24%

318

345

+27 Tigo Tanzania

ICT/Telecoms

Tanzania

347 000

-3%

-

319

-

- Waco International

Construction

South Africa

345 222

NA

32 830

320

460 +140 Dangote Flour Mills

Agribusiness

Nigeria

343 737

44%

34 350

321

179

Construction

Egypt

337 402

-53%

(28 965) (46 182)

-142 Suez Cement Company

322

317

Rail transport

Morocco

337 327

-14%

323

343

+20 Société d’Énergie et d’Eau du Gabon

Utilities

Gabon

336 968

0%

9 806

324

370

+46 Office National des Aéroports

Air transport

Morocco

334 175

3%

47 624

325

-

-5 Office National des Chemins de Fer du Maroc

Electrical equipment South Africa

333 941

-38%

-

326

473 +147 MTN Sudan

ICT/Telecoms

Sudan

332 779

48%

-

327

366

+39 Société Générale des Travaux du Maroc*

Construction

Morocco

332 164

NA

-

328

259

-69 Guinness Nigeria

Food and drink

Nigeria

331 412

-44%

(6 552)

+53 National Foods Holdings

Food and drink

Zimbabwe

330 642

5%

14 273

Petroleum services

Morocco

330 640

NA

-

Services

South Africa

329 416

9%

(70 999) 28 516

329

382

330

335

331

296

- Powertech

+5 Petromin Oils* -35 South African Post Office

332

471 +139 Consolidated Infrastructure Group

Construction

South Africa

328 906

41%

333

417

Utilities

Morocco

328 437

NA

-

334

-

Diversified

Côte d’Ivoire

327 614

-7%

13 923

335

228

336

410

+74 Puma Energy Zambia

337

337

- Sania Compagnie

338

351

339

406

+67 Société des Mines de Tongon

340

402

+62 Kibali Gold Mine +44 Maghrébail

Insurance

Morocco

Petroleum

South Africa

Wood and paper

South Africa

+84 Redal Veolia Services* - NSIA Participations -107 Salam Gaz

+13 Délice Holding

Petroleum services

Morocco

326 856

-7%

27 290

Petroleum

Zambia

325 301

15%

6 868

Agribusiness

Côte d’Ivoire

323 742

-13%

6 274

Agribusiness

Tunisia

320 077

-9%

15 820

Mining

Côte d’Ivoire

319 249

40%

121 847

Mining

DRC

319 217

-5%

130 995

316 319

8%

8 560

316 086

32%

-

312 999

16%

18 641

341

385

342

459

343

425

+82 Novus Holdings

344

226

-118 Raya Holding for Financial Investment (ex RHCTT)

Diversified

Egypt

312 879

-45%

6 484

345

386

+41 Distribution & Warehousing Network

Retail

South Africa

312 157

-4%

34 027

346

230

-116 Business Connexion Group*

Media

South Africa

311 977

NA

8 562

347

434

+87 Soc. de Limonaderies et Brasseries d’Afrique

Food and drink

Côte d’Ivoire

308 220

18%

44 376

+117 Transnet Pipelines

348

377

+29 11 (ex Mobil Oil Nigeria)

Petroleum

Nigeria

305 850

-4%

26 501

349

391

+42 Côte d’Ivoire Telecom*

ICT/Telecoms

Côte d’Ivoire

304 718

NA

11 501

350

279

-71 Palm Hills Development Company

Construction

Egypt

304 588

-34%

43 111

2016 results in thousands of US dollars; *in italics 2015 results; NA: not available

THE AFRICA REPORT

•

N ° 97

•

F E B R UA R Y 2 018

A 2017 bill introducing lower taxes for beers using at least 50% local raw materials will boost Cervejas de Moçambique (#353), whose ‘Impala’ brand uses local cassava.

RANKINGS 351-400 Rank Rank 2016 2015 Diff.

351

-

352

423

353

-

Company

- Rhodes Food Group Holdings +71 SEMAFO Burkina Faso - Cervejas de Moçambique* +1 Société Nationale de Sidérurgie

Turnover (2016)

Turnover change

Net profits

Sector

Country

Food and drink

South Africa

300 910

53%

Mining

Burkina Faso

300 483

0%

-

Food and drink

Mozambique

297 485

NA

43 797

21 036

354

355

Metals

Morocco

295 763

-14%

(4 520)

355

395

+40 Santova Logistics

Transport

South Africa

295 681

20%

4 690

356

341

-15 Societe Marocaine de Carburants - ZIZ*

Petroleum services

Morocco

294 719

NA

-

357

435

+78 Coronation Fund Managers

Financial services

South Africa

293 659

2%

114 241 89 058

358

-

- Jumia Nigeria

Retail

Nigeria

292 183

98%

359

-

- MTN Benin

ICT/Telecoms

Benin

291 191

24%

-

360

420

Diversified

South Africa

285 457

NA

114 241

+60 Alexander Forbes

361

-

- Misr Insurance Company

Insurance

Egypt

284 266

NA

55 363

362

-

- Ascendis Health

Healthcare

South Africa

284 078

55%

13 790

363

390

Food and drink

South Africa

284 011

26%

6 630

364

-

Utilities

Kenya

283 027

15%

64 603

365

439

+74 Bidvest Namibia

Diversified

Namibia

282 179

9%

17 194

366

376

+10 Groupe Benamor

Food and drink

Algeria

281 765

0%

9 371

367

422

+55 Ciel Textile

Textile

Mauritius

281 281

3%

15

368

431

+63 Mauritius Telecom

ICT/Telecoms

Mauritius

279 714

5%

33 050

+27 Quantum Foods Holdings - Kenya Electricity Generating Company

369

274

-95 Orascom Telecom Media & Technologies*

Insurance

Egypt

279 564

NA

(491 172)

370

455

+85 Airtel Uganda

ICT/Telecoms

Uganda

278 989

14%

43 322

371

383

+12 Alf Sahel*

Food and drink

Morocco

278 584

NA

-

372

306

-66 Conoil

Petroleum services

Nigeria

276 327

-33%

9 223

373

348

-25 Maridive & Oil Services

Petroleum services

Egypt

275 540

-21%

19 081

374

340

-34 UAC of Nigeria

Diversified

Nigeria

274 971

-24%

18 416

375

254

-121 Total Petroleum Ghana

Petroleum services

Ghana

273 360

-41%

5 401

376

215

-161 Maurel & Prom Gabon*

Petroleum

Gabon

272 261

NA

-

377

430

+53 Delta Holding

Diversified

Morocco

272 149

1%

19 531

378

424

+46 Centrale Automobile Chérifienne*

Auto industry

Morocco

270 948

NA

-

379

239

-140 Juhayna Food Industries

Food and drink

Egypt

270 265

-50%

2 938

380

-

- Groupe CFAO Côte d’Ivoire*

Diversified

Côte d’Ivoire

268 189

NA

-

381

-

- Amni International Petroleum Development Co.* Petroleum

Nigeria

267 318

NA

(46 720)

382

463

Petroleum

Algeria

267 053

14%

23 068

383

380

+81 ENGTP -3 Industrial Promotion Services West Africa

Diversified

Côte d’Ivoire

266 661

-16%

6 308

384

393

+9 Groupe CFAO Cameroun*

Diversified

Cameroon

265 662

NA

-

385

371

-14 Airtel DRC

ICT/Telecoms

DRC

265 140

-6%

330 721

386

433

+47 Groupe Industriel des Productions Laitières*

Food and drink

Algeria

263 678

NA

10 721

387

408

+21 Press Corporation

Diversified

Malawi

262 511

6%

23 927

388

437

+49 Office du Commerce de la Tunisie*

Retail

Tunisia

261 699

NA

(4 401)

389

-

Petroleum

DRC

261 017

-31%

7 697

390

354

Cosmetics industry

Nigeria

258 798

-25%

11 981 -

- Engen DRC -36 PZ Cussons Nigeria

391

-

- Peermont Global

Tourism

South Africa

258 501

16%

392

-

- Chirano Gold Mine

Mining

Ghana

258 500

NA

-

393

480

+87 Jubilee Holdings

Insurance

Kenya

257 775

17%

35 216 (26 667)

394

446

+52 New Mauritius Hotels

Tourism

Mauritius

256 539

1%

395

357

-38 Times Media Group*

Media

South Africa

255 938

NA

-

396

227

-169 Seplat Petroleum Development Company

Petroleum

Nigeria

254 217

-55%

(166 094)

397

458

+61 Office National des Telecommunications

ICT/Telecoms

Burkina Faso

253 530

5%

38 710

398

477

+79 Soc. d’Exploitation des Ports - Marsa Maroc

Transport

Morocco

252 233

15%

56 991

399

432

+33 Ciments de l’Atlas

Construction

Morocco

252 011

-6%

53 894

400

-

- Zambia Sugar

Agribusiness

Zambia

250 637

37%

(6 075)

2016 results in thousands of US dollars; *in italics 2015 results; NA: not available

THE AFRICA REPORT

•

N ° 97

•

F E B R UA R Y 2 018

71

“Our assets are situated on one of the world’s most prolific gold belts, the Ashanti, in a very favorable mining jurisdiction.”

72 BUSINESS TOP 500 COMPANIES

Sam Coetzer President and CEO of Golden Star Resources (#433)

RANKINGS 401-450 Rank Rank 2016 2015 Diff.

401

450

402

-

403

461

404

-

405

485

Turnover (2016)

Turnover change

Company

Sector

Country

+49 Energie du Mali

Utilities

Mali

247 392

7%

Agribusiness

Mauritius

246 652

23%

- Princes Tuna +58 One Tech Holding

Net profits (42 446)

Electrical equipment Tunisia

245 831

7%

- MTN Congo

ICT/Telecoms

Rep. of Congo

245 466

21%

-

+80 Orange Guinée

ICT/Telecoms

Guinea

245 042

3%

-

Mining

South Africa

244 028

NA

(142 061)

Construction

Morocco

243 868

NA

-

Services

South Africa

243 368

39%

27 428

- Cooke Mine

13 054

406

-

407

235

408

-

409

421

+12 Vivo Energy Mauritius

Petroleum services

Mauritius

243 336

-11%

9 910

410

372

-38 Royal Bafokeng Platinum

Mining

South Africa

242 577

23%

19 067 -

-172 Autoroutes du Maroc* - ADvTech Group

411

-

- Société Minière de Dinguiraye

Mining

Guinea

242 044

NA

412

-

- Tullow Gabon

Petroleum

Gabon

241 300

-15%

-

413

413

- SNMVT Monoprix

Retail

Tunisia

241 296

-11%

1 200

Textiles

Egypt

240 877

-11%

6 574

Petroleum

Egypt

240 220

NA

23 904

414

426

415

142

+12 Al Arafa for Invmt. in Garments Manufacturing

416

443

+27 Société Nationale d’Assurances

Insurance

Algeria

240 032

-6%

27 786

417

449

+32 Congelcam*

Retail

Cameroon

237 140

NA

3 095

418

-

Auto industry

Morocco

236 648

30%

3 781

419

451

+32 Brasseries du Maroc

Food and drink

Morocco

235 762

3%

32 704

420

448

+28 Compagnie Centrale de Réassurance*

Insurance

Algeria

235 344

NA

26 718

421

440

+19 Airtel Tanzania

ICT/Telecoms

Tanzania

234 667

-9%

(17 775)

422

468

+46 Compagnie de Distribution de Côte d’Ivoire

Retail

Côte d’Ivoire

233 091

-1%

(3 714)

423

270

-153 Middle & West Delta Flour Mills

Food and drink

Egypt

233 091

-51%

15 162 (29 551)

-273 Alexandria Minerals Oils Company

- SCAMA

424

457

+33 Société Nationale Burkinabé d’Électricité*

Utilities

Burkina Faso

232 918

NA

425

384

-41 Bissa Gold

Mining

Burkina Faso

230 400

-16%

-

426

-

Mining

DRC

228 346

NA

(50 932)

Chemicals

Nigeria

226 775

-23%

9 984

Construction

South Africa

224 998

NA

(5 008)

427

397

429

202

- Banro Congo Mining -30 Unilever Nigeria -227 Aveng Grinaker-LTA (ex Grinaker-LTA)

428

387

-41 Bryte Insurance Co. (ex Zurich Insurance Co. SA)

Insurance

South Africa

224 998

-28%

-

430

492

+62 Rössing Uranium Mine

Mining

Namibia

224 571

88%

7 832

431

487

+56 Buzwagi Gold Mine

Mining

Tanzania

223 311

5%

-

432

-

ICT/Telecoms

Mozambique

222 022

NA

9 218

Mining

Ghana

221 290

-13%

(41 763)

Food and drink

Zambia

219 404

0%

14 531

Metals

Morocco

218 886

NA

-

Diversified

Mauritius

218 222

13%

23 781

433

442

434

482

435

444

436

-

437

400

438

-

- Vodacom Moçambique +9 Golden Star Resources +48 Zambeef +9 Maghreb Steel* - Rogers & Company -37 Aveng Manufacturing - La Marocaine des Jeux et des Sports

Construction

South Africa

217 740

2%

-

Tourism

Morocco

216 860

17%

33 900

439

-

- Royal Swaziland Sugar Corporation

Agribusiness

Swaziland

216 290

16%

29 334

440

-

- Eqstra Holdings

Auto industry

South Africa

215 127

18%

(33 605)

441

490

+49 Airtel Zambia

ICT/Telecoms

Zambia

214 072

21%

23 178

442

452

+10 Assore

Mining

South Africa

213 461

-2%

108 699

443

-

444

469

445

-

446

-

447

-

448

497

449

-

450

-

Diversified

Mauritius

213 055

6%

3 619

Mining

Mauritania

213 000

-26%

-

- SOPRIAM*

Auto industry

Morocco

212 760

NA

-

- Alteo (ex-Deep River Beau Champ)

Agribusiness

Mauritius

209 758

15%

21 388

- Leal Group +25 Guelb Moghrein Copper-Gold Mine

- Tasiast Mauritanie

Mining

Mauritania

208 000

NA

-

Food and drink

Côte d’Ivoire

207 548

-9%

1 742

- Orange Tunisie*

ICT/Telecoms

Tunisia

204 267

NA

-

- Résidences Dar Saada

Construction

Morocco

203 934

16%

46 003

+49 Nestlé Côte d’Ivoire

2016 results in thousands of US dollars; *in italics 2015 results; NA: not available

THE AFRICA REPORT

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F E B R UA R Y 2 018

$2.1m RANKINGS 451-500 Rank Rank 2016 2015 Diff.

Company

73

Cost of a new coastal depot (N$26m) Namibia Breweries (#490) is constructing in Walvis Bay, expected to be completed before the end of 2018.

Sector

Country

Turnover (2016)

Turnover change

Net profits

451

-

- Société Centrale de Réassurance

Insurance

Morocco

203 005

NA

25 253

452

-

- Compagnie Algérienne des Assurances

Insurance

Algeria

201 280

2%

20 806

453

489

Food and drink

Zambia

199 554

29%

12 957

454

-

Construction

Morocco

198 120

NA

7 137

455

453

Diversified

Nigeria

197 815

NA

-

456

-

- Axia Corporation

Retail

Zimbabwe

197 506

NA

14 459

- RADEEMA*

Utilities

Morocco

197 114

NA

1 720

ICT/Telecoms

Zambia

196 547

-3%

-

Petroleum

Botswana

195 997

NA

9 678

457

-

458

404

459

-

460

-

461

483

462

-

463

499

+36 Zambian Breweries - Societe de Travaux Agricoles Marocaine* -2 Groupe CFAO Nigeria*

-54 MTN Zambia - Engen Botswana* - Avbob Industries +22 Botswana Insurance Holdings - Britam Holdings (ex British American Inv. Co.) +36 Transnational Corporation of Nigeria

Insurance

South Africa

195 829

31%

36 480

Insurance

Botswana

195 270

-11%

43 719

Insurance

Kenya

194 396

3%

7 517

Diversified

Nigeria

193 130

-5%

(19 267) 36 173

464

-

- Phosphates de Boucraa*

Mining

Morocco

191 948

NA

465

-

- Sechaba Brewery Holdings*

Food and drink

Botswana

190 973

NA

17 819

466

-

- Cie d’Assurances et de Réassurances Atlanta

Insurance

Morocco

190 570

7%

15 784 40 565

467

486

Agribusiness

Kenya

190 162

-11%

468

-

- Société Centrale de Boissons Gazeuses*

Food and drink

Morocco

189 599

NA

-

469

-

- Unga Group

Food and drink

Kenya

189 143

5%

4 874

470

-

- Entreprise Nationale de Géophysique*

Petroleum

Algeria

188 829

NA

61 054

471

-

- Old Mutual Zimbabwe

Insurance

Zimbabwe

188 797

NA

91 833

- Nu World Holdings

Transport

South Africa

188 012

34%

5 781

Petroleum

Egypt

187 865

-47%

78 371 6 777

472

-

473

347

+19 British American Tobacco Kenya

-126 Sidi Kerir Petrochemicals Company

474

494

+20 eMedia Holdings (ex Seardel Investment Corp.)

Media

South Africa

187 455

19%

475

290

-185 Groupe CFAO Algérie*

Diversified

Algeria

186 565

NA

-

476

-

Insurance

Kenya

185 770

NA

7 911

- UAP Holdings

477

-

- Palm-Ci

Agribusiness

Côte d’Ivoire

185 353

-6%

6 654

478

-

- Langer Heinrich Uranium

Mining

Namibia

184 900

-4%

(83 100)

479

-

- Al Ezz Flat Steel

Metals

Egypt

184 739

27%

-

480

-

- Abosso Goldfieds – Damang Mining

Mining

Ghana

183 400

-6%

(4 500)

481

-

- Société Africaine de Plantations d’Hévéas

Agribusiness

Côte d’Ivoire

181 872

12%

1 884

482

-

- Fiat Chrysler Automobiles Morocco*

Auto industry

Morocco

180 280

NA

(13 406)

483

-

484

488

485

-

486

-

487 488

- Groupe Acima*

Retail

Morocco

180 210

NA

-

Services

Cameroon

179 465

-7%

-

- Orange Burkina Faso (ex Airtel Burkina Faso)*

ICT/Telecoms

Burkina Faso

179 371

NA

28 126

- Peregrine Holdings

Diversified

South Africa

179 198

1%

36 424

-

- Airports of Mauritius

Air transport

Mauritius

178 783

NA

-

-

- Value Group

Transport

South Africa

178 022

33%

6 068

+4 FEICOM

489

-

- Disway

Electrical equipment Morocco

177 752

7%

6 485

490

-

- Namibia Breweries

Food and drink

177 405

12%

27 239

491

-

492

495

- Gabon Telecom*

493

-

494

399

495

-

- Deneb Investments*

496

-

- Saham Angola Seguros (ex GA Angola Seguros)* Insurance

497

447

-50 Honeywell Flour Mills -84 BSI Steel

+3 Eqdom - DRDgold -95 TAQA Arabia

Namibia

ICT/Telecoms

Gabon

177 110

NA

60 860

Insurance

Morocco

176 983

-1%

14 408

Mining

South Africa

176 592

29%

4 495

Petroleum services

Egypt

176 476

-40%

1 587

Insurance

South Africa

176 136

NA

3 679

Angola

173 000

NA

-

Agribusiness

Nigeria

172 991

-32%

13 991 4 080

498

414

Metals

South Africa

172 510

0%

499

-

- Illovo Malawi

Agribusiness

Malawi

172 409

13%

9 841

500

-

- Compagnie d’Assurances Sanad

Financial services

Morocco

172 014

3%

7 572

2016 results in thousands of US dollars; *in italics 2015 results; NA: not available

THE AFRICA REPORT

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F E B R UA R Y 2 018

74 BUSINESS TOP 500 COMPANIES

OIL & GAS

1 Sonatrach

Algeria

30.2

3 Sonangol

Angola

14.7

Rank in Top 500

Country

Turnover in $bn

Top 10 oil & gas companies

Rolling with it as the barrel bobs

19 Engen Petroleum

South Africa

38 Naftal*

Algeria

3.1

61 STIR*

Tunisia

2.1

79 Middle East Oil Refineries*

Egypt

1.5

83 Oando

Nigeria

A

late oil price rally in 2017 – prices of around $68 per barrel as The Africa Report went to press – suggested that a prediction of $62 per barrel for the coming year from Goldman Sachs may not be off the mark.

Tensions between Saudi Arabia and Iran, sustained global growth and robust expansion in demand over the past 24 months provide a floor to the price – and fast-reacting US shale-gas operators provide a ceiling.

Surging commodity prices may mask the challenges caused by the slump of 2014. Over the past few years, Africa’s energy sector development has ground to a halt. Investors have delayed

Sonatrach’s Hassi Messaoud oil field, Africa’s largest

$62

1.5

Cameroon

1

117 KenolKobil

Kenya

1

118 SONARA*

Cameroon

1

2016 results; *in italics 2015 results

Predicted crude oil price in 2018 SOURCE: GOLDMAN SACHS

decisions over projects such as the huge gas liquefaction plants in Mozambique. Exploitation of some of Ghana’s oil deposits was put on hold. But in June 2017, Italy’s Eni finally announced it was going ahead in Mozambique, while Tullow said it is pursuing the expansion of its Tweneboa, Enyenra and Ntomme fields, after the resolution of a maritime border dispute with Cote d’Ivoire.

BAD TIMING

5.5

112 SNH

ULRICH LEBEUF/M.Y.O.P

Figures from 2016 show the effects of investor stagnation and servicing expensive debts, but the future looks brighter

Company

Operators in Nigeria’s burgeoning indigenous oil sector were hit by the whiplash of purchasing assets from international oil majors at the peak of the business cycle and then having to service their

debts in a low-price environment.

Companies like Seplat (#396) and Oando (#83) have weathered the storm, albeit in battered fashion: Oando, for example, had to sell off stakes in downstream assets to both Vitol and Helios to stay lean operationally. Oando is not out of the woods yet. A forensic audit is underway after Ansbury and Alhaji Dahiru Mangal filed a petition against the company in May 2017.

A helping hand was given to Seplat by the resumption of the Trans Forcados Pipeline that had been damaged by militants in the Niger Delta. The stock gained 57% over the course of 2017, according to analysts Proshare.

Elsewhere, Shoreline Energy International, run by chief executive Kola Karim (see page 75), has also been forced to pivot, securing a $300m deal with Shell for gas distribution in Lagos.

The larger challenges brought to light by the oil price slump are still being processed by the institutions they struck hardest. In an attempt to fix things, leading company Sonatrach (#1) is now run by Abdelmoumen Ould Kaddour.

He was thrown in prison in 2007 by elements of the security services who did not appreciate his rigid application of governance rules.

During the boom years, the ruling elites leaned on the national oil company to finance all kinds of personal and political projects.

Sonatrach has had nearly a dozen chief executives over 15 years, an insight into how problematic

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TOP 500 COMPANIES BUSINESS 75

management has become at this behemoth. It has 120,000 employees, 154 subsidiaries and a turnover of $30.2bn in 2016.

Similarly, in Angola, national oil company Sonangol (#3) is facing a shake-up. Incoming national president João Lourenço dismissed Sonangol’s chairwoman, Isabel dos Santos. The sacking of the daughter of the previous president appears to be an attempt to clean up the sector. She has been replaced by veteran technocrat Carlos Saturnino, who previously was secretary of state for oil. Six other board members were swept aside in the clear-out in late 2017.

LOCAL CONTENT

Many of the large state-run companies that dominate the sector’s top 10 hope that 2018 will bring a surge of investment. But what of smaller companies? In Nigeria, local content legislation has provided a boost to firms that provide engineering, construction, subsea and maintenance services to the larger oil companies. Oilserv, for example, is now managing the Nigerian National Petroleum Corporation’s gas pipeline between Delta and Edo states.

Refiners tend to struggle when the oil price rises – and not all of them made hay while the oil price was low. Engen (#19), 74% owned by Malaysia’s state oil company Petronas, has done better than most. Its strategy has been to exit the retail side of the market and focus on higher-value corporate customers. In 2016, the company won a contract to supply fuel and lubricants to the Husab uranium mine in Namibia. And in December 2017, Engen agreed to sell 300 petrol stations across nine African countries.

After long speculation over whether or not the Egyptian government was going to privatise Middle East Oil Refineries (MIDOR, #79), it appears that massive government investment is the preferred route. MIDOR should see a second expansion of its facilities, to boost refining capacity from 115,000 to 175,000 barrels per day.

Nicholas Norbrook

THE AFRICA REPORT

•

N ° 97

•

Kola Karim

Chief executive, Shoreline Energy International

Proving the critics wrong

S

uccess in the oil and gas reasons. Is this a way of proving business can be as cyclical the critics wrong? as the oil price itself. When Not only is this proving the critics Kola Karim partnered with wrong, this new domestic market is Tony Buckingham’s Heritage Oil in 2012, also acting as a natural hedge for us.

Nigeria’s independent indigenous oil The domestic market is ever growing. sector looked set to take on the majors And that market has got the customers who had run the industry for decades. that need the gas. So it only makes By 2016, Shoreline Energy International sense to send the gas into a market was forced to halt planned eurobond that needs it. And the price is not sales and to cut 35% of its workforce. cyclical but rather very balanced.

Oil had hit $30 per barrel. Many local companies in Nigeria were reeling, Gas export markets always appear having bought onshore assets with to pay more, what has changed? great fanfare from Shell, Eni, Total Government has realised that you and ConocoPhillips. need proper pricing for gas. So at $3/ But a new deal, this time with the Shell standard cubic foot, which at today’s Petroleum Development Company of relative terms is more expensive than Nigeria – to deliver gas to one of Africa’s the United States, it is a very attractive largest urban areas – may well prove price and helping to build the local to be just what the company needs market, making it energy sufficient. to diversify and stabilise its operations.

It follows Shell’s own strategic pivot Do you have the expertise for what to gas development in the country. you now have to undertake or are Nigeria has the world’s ninth-largest gas you going to outsource much of the reserves, estimated to be around 187trn technical work? cubic feet. Many Lagosians, meanwhile, Shaping up to the challenge means say that it is about time that the partnering with the likes of Shell, who economic capital feels the benefit – I’m sure you know – transformed Shell from the country’s natural resources.

“This new domestic market

is a natural hedge for us, and it’s that’s ever growing”

TAR: What will this a market new partnership with Shell bring to Lagos?

Kola Karim: It’s a transformational deal for Lagos, the commercial hub of Nigeria. It is going to entail building a 125km gas ring around Lagos Island in the south. This is a magnificent change for the energy efficiency of Lagos. It’s clean energy, making a difference to climate change. For us as a company, it is amazing balancing for us. It puts us in a different space, in a different business – in monetising our gas molecules and taking it end-to-end to the market.

For the past few years, many people have been down on the indigenous oil sector in Nigeria, for a slew of

F E B R UA R Y 2 018

into more of a gas company. So that expertise is phenomenally important in the partnership with Shoreline in actualising this project.

What other changes are we likely to see in Nigeria’s energy sector in 2018?

I think the reality is that the population is there, the deficit is known globally, so it makes it a natural fit for businesses and entrepreneurs looking at investing in a market that has got very good potential and good returns. We are always working. We have an amazing pipeline of transformational projects arriving.

Interview by N.N.

76 BUSINESS TOP 500 COMPANIES

AGRICULTURE Weathering the weather In 2016, droughts and floods hurt crop production, raising prices and profits for Africa’s top agribusinesses

W

eather extremes provoked by El Niño dealt Africa’s agriculture sector a tough hand in 2015 and 2016, butrecoveryisnowunderway.The FoodandAgricultureOrganisation says food prices were up more than 8% in 2017, which will have a knock-on effect on the local input bills for agribusiness, and could support farmers.

The 74 agribusiness and food and drink firms included in this year’s ranking earned $51.2bn in revenue in 2016. Profits more than doubled to reach $2.5bn, the

Company

10 Bidfood (ex BidCorp)*

South Africa

7.6

30 SABMiller South Africa*

South Africa

3.8

55 Tiger Brands

South Africa

2.3

59 Cevital

Algeria

2.1

75 RCL Foods

South Africa

1.8

76 Flour Mills of Nigeria

Nigeria

1.7

78 Distell Group

South Africa

1.6

81 Pioneer Foods Group

South Africa

1.5

95 Tongaat Hulett Group

South Africa

1.3

113 Nigerian Breweries

$1.1bn recorded in 2015 showing the slump due to the effects of El Niño. Despite the continent’s huge agriculture potential, the sector makes up just 9% of the $569.2bn in Top 500 turnover, underscoring the lack of strong companies.

South African names continue to predominate, with seven firms in our Top 10 sectoral ranking.

Bidfood (#10) topped the group in earnings for the fourth time in a row, though based on 2015 results.

In mid-2017, a bird flu outbreak killed more than two million birds in the Western Cape, affecting

The Africa CEO Forum

26-27 March, Abidjan

JACQUES TORREGANO/CEO FORUM FOR JA

Rising to the challenge of competitiveness

1,500 participants are expected in Abidjan in 2017. From rationalising the cost of inputs and aggregating crops from local cooperatives, to seed improvement, storage and intelligent agriculture,

Nigeria

1

2016 results; *in italics 2015 results

EVENT

WITH AFRICA’S FOOD IMPORT bill amounting to more than $35bn annually, there is huge opportunity for the continent’s agribusiness companies to find markets at home.

That will take work from both the public and private sectors right through the value chain, but when done, it will bear fruit. In Nigeria, for example, the amount of rice imported from Thailand has fallen from over 1.2m tonnes in 2014 to under 25,000tn

Country

Turnover in $bn

Rank in Top 500

Top 10 agribusiness companies

what should governments and companies be doing to reduce their nations’ food bill? Sign up for this year’s Africa CEO Forum and join in the debate.

poultry producers RCL Foods (#75) and Astral Foods (#129).

RCL announced losses of about $2m due to the culling of birds in 2017, and had already sold off 13 farms as it struggles to compete with cheap chicken from Brazil.

SWEET AND SOUR

Algerian conglomerate Cevital (#59) is the only North African company in the Top 10. Cevital will need to look for new clients, after the Algerian subsidiary of CocaCola decided to start purchasing sugar from domestic rival La Belle.

Meanwhile, the four Egyptian agribusiness firms in the Top 500 – Eastern Co. (#271), Egyptian Sugar and Integrated Industries Co. (#293), Juhayna Food Industries (#379) and Middle & West Delta Flour Mills (#423) – recorded the biggest downswings, due largely to the depreciation of the Egyptian pound.

Things are looking sweeter elsewhere. Dangote Sugar Refinery (#218), was the best-performing stock on the Nigeria Stock Exchange in January, with a year-on-year return of 227.3%.

The company is rehabilitating infrastructure at its Adamawabased subsidiary Savannah Sugar Company and is working on expanding its cane fields in 2018.

AB-InBev-controlledSABMiller South Africa (#30) is also in development mode. It announced last year that it will invest R2.8bn ($225.8m) into expanding its two Gauteng breweries.

Oheneba Ama Nti Osei

THE AFRICA REPORT

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TOP 500 COMPANIES BUSINESS 77

TELECOMS

Company

7 MTN Group

Data duels

South Africa

10.7

17 Vodacom Group

South Africa

5.9

25 Vodacom South Africa

South Africa

4.7

32 Groupe Maroc Telecom

Morocco

3.5

33 MTN Nigeria

Nigeria

3.4

40 MTN South Africa

South Africa

42 Telkom

South Africa

3

43 Global Telecom Holding

Egypt

3

60 Maroc Telecom

Morocco

62 Safaricom

Kenya

A

frica’s telecoms sector is the second biggest on the continent by turnover, according to this year’s ranking of the Top 500 companies. The 52 largest telecoms companies raked in a combined $64bn in revenue in 2016, an amount second only to the continent’s energy sector.

South African telecoms giants MTN Group (#7) and Vodacom Group (#17) continue to battle over the sector’s top spot. MTN’s most profitable business, MTN Nigeria (#33), gained two places in this year’s ranking, demon­ strating a successful turnaround after settling a $1.1bn fine with regulators. Rob Shuter, MTN’s new CEO, says MTN Nigeria will list on the Lagos stock exchange in the first quarter of 2018.

Vodacom is searching for new markets in its quest to compete THE AFRICA REPORT

•

N ° 97

•

With fast and cheap 4G, telcoms are out to sell data plans

with MTN outside of South Africa.

Vodacom South Africa (#25) out­ performed MTN South Africa (#40) in this year’s rankings, des­ pite falling seven places. Amid a downturn at home, Vodacom is looking to develop new markets.

MAROC SHOWS ITS FIBRE

$2.6bn Amount (R34.6bn) paid

by Vodacom Group in August 2017 to acquire a 35% stake in Kenya’s Safaricom SOURCE: VODACOM

F E B R UA R Y 2 018

North African firms continue to be well-represented at the top of the rankings. Groupe Maroc Telecom (#32), which has 56 million subscribers in 10 coun­ tries, is investing in upgrades in its domestic market as well as in a cable project that will provide fast internet as far away as Burkina Faso. Egypt’s Global Telecom Holding (#43), formerly known as Orascom Telecom, fell two spots in this year’s ranking.

In East Africa, Kenya’s biggest operator, Safaricom (#62), is

3

2.1 2 2016 results

SVEN TORFINN/PANOS-REA

Africa’s mobile operators are enjoying a subscriber boom. Next up: turning demand for data into bigger profits

Country

Turnover in $bn

Rank in Top 500

Top 10 telecom companies

expected to begin its long-awaited regional expansion. A Kenyafocused company under its previous management structure, Safaricom has now been given the green light to look for new opportunities abroad. Ethiopia, where state-run Ethio Telecom (#89) is struggling to keep up with its surging subscriber base, is rumoured to be Safaricom’s primary target for expansion.

Bharti Airtel is turning to stra­ tegic partnerships to bolster its businesses. Its best-performing African companies are towards the bottom of our ranking: Airtel Uganda (#370), Airtel DRC (#385), Airtel Tanzania (#421), AirtelZambia(#441) andOrange Burkina Faso (#485), formerly Airtel Burkina Faso. The company is interested in pursuing oppor­ tunities in Kenya, Rwanda and Tanzania. In December, it signed a deal with Millicom to buy its Rwandanbusiness,whichboosted its market share in the country.

Demand for data services is expected to grow. Last year, Bharti Airtel said its data traffic grew by 80-90% year on year. This industry-wide trend is expected to continue. In more developed markets, most notably South Africa and Morocco, the rise of mobile broadband will create more earnings for the biggest tel­ ecoms companies. South Africa’s Telkom said the number of its mobile broadband subscribers had jumped by 44.6% in the year ending 31 July 2017.

Mark Anderson

78 BUSINESS TOP 500 COMPANIES

MINING Bouncing back from the bottom Miners began producing better results in 2016 due to improved prices, and that trend is due to carry over into 2018

Company

Country

Turnover in $bn

Rank in Top 500

Top 10 mining companies

26 Amplats

South Africa

27 AngloGold Ashanti

South Africa

4.5 4.3

28 OCP

Morocco

4.2

44 Kumba Iron Ore

South Africa

2.9

46 Gold Fields

South Africa

2.7

47 Impala Platinum Holdings

South Africa

2.6

56 Sibanye Gold

South Africa

2.3

80 Exxaro Resources

South Africa

1.5

86 Kansanshi Mining

Zambia

1.4

94 Harmony Gold Mining

South Africa

1.3 2016 results

INVESTOR WORRIES

Gold prices have been down from their heights of 2013, and did not reach $1,400 in either 2016 or 2017.

South Africa’s AngloGold Ashanti (#27) is now diversifying away from its home base so that it can invest in international projects.

There were reports in 2017 that AngloGold might spin off its South

PHILIP MOSTERT

M

any mining companies have been recovering from the price crash of 2015, and the sector reported a 7.4% rise in revenue in the 2016 financial reporting year in our Top 500 companies ranking. Total sector revenue from mining houses in the Top 500 went from $40.3bn in 2015 to $43.3bn in 2016. Prices for several mining commodities rose in 2017, and financiers, including Goldman Sachs, predict that they will continue to increase in 2018.

Platinum prices spiked to more than $1,100/oz in 2016, helping the bottom line of Anglo American Platinum Corporation (Amplats, #26). The price slipped below $1,000 in 2017, and the company has been cutting costs and selling off some of its properties.

Analysts are bearish about the long-term trend in platinum prices due to the rise of electric cars, as platinum is used in internal combustion engines. Amplats sold off its Rustenburg property in November 2016, agreed to unload the Amandelbult deposit to Northam Platinum and got rid of its stake in the Pandora joint venture in December 2017.

At Twangiza mine in the DRC, Banro (#426) has its own own power plant

14% Gold prices jumped more than 14% in 2017, but failed to reach the $1,400 mark in both 2016 and 2017.

SOURCE: BLOOMBERG

African gold mining assets. That took place against the backdrop of investor worries about the political and economic direction that the South African government has been taking. In the meantime, the gold mining company reported production of 997,000oz in the thirdquarterof2017,up11%onthe same period in 2016. AngloGold sold its South Africa-based Moab Khotsong mine to Harmony Gold Mining (#94) and the Kopanang mine to Chinese investors.

AngloGold is keen to restart operations at the Obuasi mine in Ghana, which was shut down due to security concerns. Chief executive Srinivasan Venkatakrishnan told media in November 2017: “You have to be patient in terms of negotiations with government.”

Sibanye Gold (#56) was the biggest mining climber in this

year’s ranking. The company began operations in 2013, when Gold Fields (#46) spun off most of its South Africa assets, and is showing an increasing appetite for geographical and mineral diversification. Sibanye purchased US-based platinum-group metals miner Stillwater for $2.2bn in May 2017 and then agreed to purchase troubled miner Lonmin (#104) for $382m in December 2017, which will help to make Sibanye Gold one of the world’s top producers of platinum.

Goldman’s predictions are for additional improvements in the iron ore and copper mining sectors. Kumba Iron Ore (#44), which is 70% owned by Anglo American, was on pace to produce between 42m and 44m tonnes of iron ore in 2017.

THE AFRICA REPORT

Honoré Banda

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TOP 500 COMPANIES BUSINESS 79

LOGISTICS High flyers and long haulers The downturn in commodity prices did not have a big impact on most of Africa's giants in the transportation sector

W

ith a few glaring exceptions, Africa’s largest port and air transport companies continued to perform well in 2016. The major players in transport have benefited from a renewed push to improve intra-African trade corridors and remove barriers to trade. But African airlines are also being forced to compete with foreign carriers for routes to the continent.

The sector’s 24 biggest companies by revenue contributed $27.7bn of earnings to this year’s ranking, making the sector the eighth-largest on the continent.

That is a slight rise from our previous ranking, which showed the biggest transport companies earning $27.4bn.

The continent’s port and cargo companies have been doing well. Although the Suez Canal Authority (SCA, #20), a port operator, slipped four places in this year’s ranking after the Egyptian economy performed badly during the reporting period, the SCA remained the biggest transport company on the continent by revenue, earning $5.2bn in 2016.

EAST AFRICA ENTRIES

SouthAfrica’sstate-ownedlogistics company Transnet (#24), which operates rail, ports and pipelines, managed to navigate difficult economic conditions and gained four places this year. Transnet is now closing in on the SCA to take the top spot in the transport rankings.

South African cargo services company Super Group (#72) earned THE AFRICA REPORT

•

N ° 97

•

$5.2bn Suez Canal Authority was Africa’s largest transport company by revenue

Company

Country

Turnover in $bn

Rank in Top 500

Top 10 logistics companies

20 Suez Canal Authority*

Egypt

24 Transnet

South Africa

5.2 4.8

45 Transnet Freight Rail

South Africa

2.8

51 Ethiopian Airlines

Ethiopia

2.4

72 Super Group

South Africa

1.9

90 Royal Air Maroc

Morocco

1.4

114 Kenya Airways

Kenya

1.0

137 Transnet Port Terminals

South Africa

0.8

148 Transnet Nat. Ports Authority South Africa

0.7

152 Egyptair Airlines

0.7

Egypt

2016 results; *in italics 2015 results

$1.9bn in 2016 off the back of strong results outside its home market. In August, the company signed a contract with Kenya’s government to ship vehicles, its first entry into East Africa.

A tale of two airlines has recently emerged. The skyward success of Ethiopian Airlines (#51) continues, as Africa’s most profitable airline expands to new routes in each corner oftheworld,including São Paulo, Los Angeles and Tokyo.

Royal Air Maroc (#90), Africa’s second-biggest airline by revenue, has new routes to East Africa.

Kenya Airways (#114) climbed eight spots in this year’s ranking.

Its turnaround strategy has been taken over by recently appointed chief executive officer Sebastian Mikosz (see box).

South African sea cargo firm Trencor (#177) climbed 43 places. But in April 2017, the company said that its results would be hit by the global shipping container industry’s poor performance. The company has also been hurt by the bankruptcy of Chinese logistics firm Hanjin Shipping, one of its main clients. Mark Anderson

Sebastian Mikosz Chief executive officer, Kenya Airways

The turnaround specialist WHEN SEBASTIAN MIKOSZ LEFT Poland’s state-owned carrier LOT Polish Airlines and took up the role of chief executive officer of Kenya Airways (#114) in June 2017, he faced the daunting task of restructuring more than $2bn of debt. Mikosz, who gained notoriety by saving LOT from the brink of bankruptcy, has turned to Kenya’s government for help. In November, the airline announced

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a debt-for-equity swap with the government and 11 local banks. Under the new ownership structure, the government raised its stake from 29.8% to 48.9%. As a result, nearly $400m of debt was converted into equity. “Kenya Airways is a strategic national asset and plays an important role in the economy,” Henry Rotich, Kenya’s finance minister, said at the time.

Experts agree that Kenya Airways has turned a corner

by stabilising its balance sheet, but now the focus must shift to success at the operational level.

In his first six months, Mikosz slashed staff numbers by nearly a third and launched new routes to popular destinations.

He has hired five senior executives from his former company as consultants on a three-month basis with the goal of cutting costs and raising revenue.

Mark Anderson in Nairobi

80 BUSINESS TOP 500 COMPANIES

F Funmi Adebayo Fina ancial analyst

Can ‘Made in Nigeria’ be financed by foreign investors?

P

resident Muhammadu Buhari made it clear when he came into office: “We will no longer allow our markets to be flooded with things we can produce ourselves. We must believe in our system. Whenever you need my intervention at any time, please come to me.”

Manufacturing and industrialisation were to be the bedrock of the country’s resurgence. Buhari went on to talk about improving infrastructure and encouraging entrepreneurship. That triggered Twitter-influenced movements such as #BuyNaijaToGrowTheNaira and #BuyNigerian.

There was a feeling that Nigerians, led by the sternfaced President Buhari, could return to yesteryear: a strong naira, self-reliance and self-respect.

Fast-forward to today and the President of #MadeInNigeria has become the President of #FinanceInDollars. That strong naira? We would prefer to borrow in foreign money, please, is the message from Abuja.

How the government handles its debt and new borrowing will determine if it gets out of its current economic troubles. Abuja is already spending more than it wants to repay its old debt. Nigeria’s debt-service-to-revenue ratio reached around 66% in 2017, although it fell down to 45% as of early December. Even finance minister Kemi Adeosun admits this is still too high, and it certainly does not give much room for expenditure on infrastructure.

The International Monetary Fund (IMF), ever the friendly chorus, says much the same thing.

But the real telling fact, however, is how much this administration has been relying on foreign debt.

Nigeria reached an unprecedented high of $15.4bn in debt in the third quarter of 2017. To put this into context, foreign exchange (FX) reserves also reached $37.9bn, meaning external debt accounted for more than 40% of dollar reserves.

In August 2017, Adeosun directly displayed a preference for external debt over local debt by refinancing $3bn worth of naira debt with dollars instead, citing lowering the cost of servicing. As a

headline, this does appear to make sense. But it does not take into account anything but the best-case scenario. This is not the full picture and ignores realistic concerns about likely threats.

By relying on foreign debt, the administration risks an adverse move in FX, ballooning the cost of servicing and negatively impacting affordability.

Our friendly chorus at the IMF released a report in April last year stating that it considered the naira overvalued by 10-20%; this means there is still a risk of significant depreciation, particularly if there are any shocks to the dollar reserves. This would then hit the central bank’s ability to defend the value of the naira. Maintaining the current external debt-servicing burden is also heavily dependent on dollar revenue, which is still a proxy play on oil.

That strong naira? We’d prefer to borrow in foreign money is Abuja’s message Now, oil revenue in Nigeria has in fact been on a positive trajectory, with output averaging 2.2m barrels per day (bpd) in 2017. The oil price improved significantly last year, from around $52 to $64. And the Organisation of Petroleum Exporting Countries (OPEC) extended Nigeria’s exemption from its fixed output figure of 1.8m bpd, with the next group review due in June.

But the risks to this are oil prices falling and OPEC deciding to restrict Nigeria’s output in June.

There could also be a resurgence in militant attacks in the Niger Delta, which would hit production again. Nigeria is largely in the hands of the global markets concerning the oil price. And with so much of government revenue going towards servicing, there is not much room to make the appropriate investments in infrastructure to withstand any shocks and to diversify away from oil.

The government does not seem to be paying attention to these risks. The debt management office made it explicitly clear when presenting the 2018 budget. The strategy is to rely even more on foreign debt, rather than local debt, with plans to THE AFRICA REPORT

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increase external debt to 40% by the end of 2019.

Does this not run contrary to the call for Nigerian citizens to focus on domestic resilience? Does this not fly in the face of the Made in Nigeria spirit?

There is also a wider moral question. With debt servicing accounting for nearly half of revenue and plans to borrow even more, isn’t the administration risking piling debt on a generation that may not be able to afford the burden? Is this a fair gamble to make?

One hopes that the administration will make good on its promise to

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spend the money appropriately. Infrastructure projects require additional financing, not to mention their complexity and long-term nature, before any real tangible benefits are felt.

The promise of moving Nigeria’s reliance away from oil and into non-oil revenue has long been unfulfilled. And if the administration still relies on citing the oil price to benchmark its budget and using oil as the main tool for being able to afford this debt pile-on, then it does not instil much confidence.

There has been some progress on government revenue with the introduction of the Voluntary Assets and Income Declaration Scheme and its use in widening the tax base by softly encouraging Nigerians to declare taxable income without threat of criminal charges. But in an economy that has only recently recovered from a recession and saw a fuel scarcity epidemic over December, can we really expect the average Nigerian to have enough confidence in the system to voluntarily declare any additional income they are making? Is it even fair to increase the tax burden in such an environment?

And with an election cycle around the corner, are what we prudishly called ‘vested interests’ truly aligned with the progressive Nigeria project?

In my opinion, the bottom line is that debt is debt. Tapping the markets for debt is cheap now, so the temptation and the rationale make sense. It makes sense to get it at this price while the government can, along with every other emerging market. The problem is what will the administration do if, and when, the tide turns? Is it even preparing for such an eventuality? Are the risks being adequately calculated and hedged for? Or are we risking finding ourselves exposed again in a few years, and this time without nearly as much available in our sovereign wealth fund or external crude account?

Also, are we not again putting ourselves in the hands of global markets and “foreigners”, and not spending enough time focusing on the domestic inefficiencies and encouraging banks to actually loan to small businesses to stimulate organic domestic growth?

The Made In Nigeria philosophy could work, but if the administration is not serious about it itself, it cannot expect citizens to have confidence in it either. That is where the true failure lies.

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Choc City stars’ 2015 compilation album: The Indestructible Choc Boi Nation

Music Legends of

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By Eromo Egbejule in Jos

T

hey call it J-Town or Tin City. Jos, a city of just over a million souls, is situated at the heart of Nigeria’s Middle Belt. For decades work here has been in mining, steel, biscuits, cereals, brewing – and tourism, as its high-altitude climate brings relief from the heat of Lagos.

Jos also has a remarkable roll call of musical talents who have once called it home, including heavyweights 2face Idibia and Asa, regarded as two of the best to ever hold a microphone, and P-Square, the identical-twin singing and dancing duo. Rapper and producer Jesse Jagz, his elder brother Jude ‘MI’ Abaga and close associates Ice Prince, Chopstix, Endia, Yung L, E-Kelly and Ruby Gyang also hail from the city.

In Nollywood, too, actors Desmond Elliot and Saint Obi are among several who lived in the town long before their ascent to stardom.

But just how did a relatively small city far from Lagos or Abuja, known mostly for its mining ores, come to be a cradle of talent for the entertainment industry? The album cover of Jesse Jagz’s Odysseus (pictured overleaf ), showing a sepia image of three white children sitting on a picnic rug with an older black girl, offers some insight.

In 1966, the year in which two bloody coups heralded a 30-month-long civil war that shattered the young independent nation’s fragile harmony, two missionary families from the Sudan United Mission-Christian Reformed Church arrived in the state of Gongola (now known as Taraba), an eight-hour drive away from Jos.

Sometimes it just takes a spark to ignite a musical generation.

This is the story of Jos, the Plateau State city that birthed a galaxy of stars for the Nigerian recording industry

ALL RIGHTS RESERVED

J-Town

GOSPEL ROOTS

The missionaries were William Evenhouse, a Dutch-American musician and teacher, and Reverend Jan Boer, a Dutch-Canadian preacher.

Both men eventually resettled in Jos a few years down the line. The cover photo of Odysseus was taken in the grounds of Boer’s idyllic Jos home. It shows his three biological children with their adopted sister Lydia Abaga – the daughter of a local Junkun preacher and future mother to Jesse Jagz and MI. As a young, passionate musician and producer Evenhouse set up a studio in the mid-80s with help from a young man called Panam Percy Paul,

BILL EVENHOUSE ALL RIGHTS RESERVED

84 ART & LIFE

who would go on to become one of Nigeria’s most popular gospel musicians. The studio provided the backdrop for many of the young children born to the clergymen and their converts in the city to launch a music platform under Panam’s guidance. When Evenhouse left mission employment in Nigeria to take up a role at the American University in Cairo, Egypt, he sold the equipment to Panam, who relocated it to Tafawa Balewa Street and created the record label Panam Music World. He has also set up a music college in the city.

“The Evenhouse studio is where Panam used to do all his work,” reminisces Jesse Jagz. “[He] is a demigod.

I used to record albums as a producer for a lot of artistes. There’s nobody below the age of fifty that did not grow

up listening to Panam’s music, there’s nobody that doesn’t know him. He was what everybody who was the musician’s musician listened to. There’s no artiste in the north, whether in church or not, that has not been influenced by Panam.”

Panam still leads congregations in the city. From his church he reflects on how far the young musicians he watched growing up have come: “All these boys are my children,” he says with pride. “P-Square used to record demos at my studio. Jeremiah [Gyang] would come around a lot and those Abaga boys produced albums for people there too. Their parents are my good friends. It’s a thing of joy to see them progress and become top musicians.”

Panam’s concerts were the first major introduction to the showman life for

Sounds of the suburbs FOR MANY, THE TOWN OF TEMA in Ghana represents infrastructure and development, with its harbour, oil refinery and urban-planned communities.

But for those in the know Tema is also a hotbed of musical talent. Singers Becca, Nana Boroo, Criss Waddle, R2Bees, rappers Sarkodie and Yaa Pono, and dancehall artist Stonebwoy, all cut their teeth in this suburb of Accra.

In the early 2000s, hiplife was catching on as a brand

new music genre styled

by Reggie Rockstone, blending hip-hop with the traditional highlife sounds.

But by early 2006, a funkier version of the new sound was emerging from the suburb, spearheaded by new age producers like the now famous producer Killbeatz, who keyed into new sounds from Nigeria.

There was a tectonic shift, and the area formerly known for its factories now chalked up popular musicians to its list of exports.

the young, impressionable kids of Jos. “Panam was the everything in Jos, in terms of music,” Lydia Abaga tells The Africa Report from her sitting room.

“The whole town would shelve every programme and attend his concert.

[He] would go to churches and sing and we would also take the boys to Hill Station Hotel, where he held most of the concerts. Jude would go to sit so close to the stage so that he could see Panam very well and almost touch him.”

LABELS ARE BORN

Also at those concerts were children of other pastors and fellow Christians including Jeremiah Gyang, the son of a local pastor. In 2004, the vocalist, songwriter and multi-instrumentalist was the first artist signed to the Chocolate

GHANA Accra

Tema

Ace broadcaster Isaac ‘Doctor Duncan’ Williams aided the shift. As a radio personality on Adom 106.3 FM, he anchored rap freestyle battles on his Saturday night show Kasahare Level, named for the Twi word for rap.

This unearthed artists like Sarkodie, Yaa Pono, Stonebwoy and Guru, whose single ‘Alkayida’ popularised a dance that went viral.

Doctor Duncan was Sarkodie’s first manager, signing the bearded tongue-twister to his Duncwills Entertainment label in 2009.

Continuing its musical legacy, Tema now has a school of the arts helping cultivate new performers in the visual arts, music and theatre.

E.E.

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EROMO EGBEJULE

Below: Jesse Jagz pays homage to his home on the album cover of Odysseus

City record label, co-founded by Audu Maikori and Paul Okeugo, two graduates of the University of Jos. Chocolate City grew from a regular evening hangout, the Guild of Artists and Poets, with young intellectuals and creative folks from the university and its environs, and went on to become one of the country’s most dominant labels to date.

Around the same time, there was another Jos clergyman also inclined to music. Bola Adebisi was at least 10 years older than the eldest of the young musicians but they all trooped to see him. Younger – and trendier – than the orthodox ministers and more liberal, he sported dreadlocks, danced on stage, and, as a youngster, had been part of a two-man gospel band that performed at various secondary schools across town.

Circa 2003, when he was leaving for the United States, he paid the rent on his three-bedroom bungalow and handed it over to the Abaga boys to use as a studio. Jude, whom he had met first, was designated studio manager and Jesse, who had produced a couple of albums for him, was the studio engineer. The rest of the kids began to frequent the place, with some moving in fully, and thus Loopy Music, an alternative hip-hop music collective THE AFRICA REPORT

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Above, L-R: A young Panam Percy Paul in the studio with William Evenhouse; Jesse Jagz; Jos-born Endia, one of the new generation musicians now based in Lagos Right: Bola Adebisi’s bungalow, where Loopy Music began

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popular throughout the 2000s and a breeding ground for several of Nigeria’s superstars, was born.

Almost 15 years later the landscape has changed. Hidden in one of the crevices off Lamingo Dam Road, the bungalow where Loopy Music began lies abandoned. As their popularity grew, the Abaga brothers, like many other musicians, left Jos for the bright lights and big city of Lagos. Today MI is the CEO of Chocolate City Music, now relocated to Lagos, which merged with Loopy Music in 2015. In the aftermath of their exodus, a new line of artists filled the vacuum left behind.

But some, like sultry singer-songwriter Bella Alubo and popular audio engineer Suka Sounds, are also joining the conveyor belt out of Jos.

Gyang has returned home with his young family to tend to his strawberry farm. But despite his move into agriculture he has still found time to release his third studio album, holding the fort in the absence of his missing comrades.

“Lagos wants to dilute your sound and control things. I make music that I’m comfortable with and not for a crowd,” Gyang says. “Have you seen how me and the Zumutan Mata (women’s fellowship choir) go around performing? That’s the distinct music I want to be known for, not what Lagos thinks I should do.”

For young would-be stars coming up in Jos the allure of Lagos and Abuja will still draw them in, but though the town’s heyday as a musical melting pot may have passed, Nigeria owes much of its musical reputation to J-Town.

Shaitan, from Surreal 16’s trio of films based on lucid dreams ALL RIGHTS RESERVED

Film Reel surreal With a tongue-in-cheek manifesto, a collective of young Lagos filmmakers are taking Nigerian film off-piste

R

omantic melodramas, slapstick comedies and endless sequels fill the Nigerian film space. Tired of the formulaic scripts that characterise suchfilms,directorsAbbaT.Makama,C.J. ‘Fiery’ObasiandMichaelOmonuajoined forces in 2017 to form the film collective Surreal 16, with the desire to expand the vocabulary of Nigerian cinema.

“Besides Kenneth Gyang’s Confusion Na Wa, I really hadn’t seen any Nigerian film that I identified with from an artistic point of view, or entertainment-wise,” Makama says. “I saw that in Mike and C.J.’s work.”

Inspired by the Danish collective Dogme 95 and French New Wave cinema, last November the collective released their first project, ‘Visions’. Based

on the idea of lucid dreams, ‘Visions’ is an anthology of three short films written and directed by each of the members.

The films star the same actor taking on different roles that meander from somewhat abstract dialogue (Shaitan) and soliloquising on lost love (Brood) to contorting witches around a bonfire (Bruja). Just like the Dogme 95 directors, Surreal 16 share a guiding manifesto.

They prohibit themselves from making the types of films that currently fill the industry and, importantly, all films must feature an element of surrealism. Though the trio say the manifesto is somewhat tongue-in-cheek, it is in many ways a subversion of the Nollywood ethos. But why the choice of Surrealist cinema as a founding aesthetic and principle?

“If you look at the African terrain you will realise that we are baptised in surrealism even if we don’t admit it, no matter how much of a sceptic you are,” Obasi explains. “For example, where someone shakes your hand, you are wondering if your privates are missing. It is just the way we see things. If we are going to explore those narratives that are unique to Africa in a way that hasn’t been explored before, then I think surrealism would be the best term to encapsulate that idea.”

As Nigeria is experiencing a growing cinema culture, the monthly film club Film Sundays, founded by film editor Chuka Ejorh and his wife Olamide, also adds to the flourishing alternative film movement in Lagos.

As the movement gains momentum, Obasi’s adaptation of award-winning writer Nnedi Okorafor’s short story Hello, Moto is set to kick off its festival run later in the year. Makama is working on a feature about a masquerade, and Omonua on everyday corruption in Lagos.

Wana Udobang in Lagos

ALBUM REVIEW

Lagos Nawa!

Olamide

YBNL Nation Six years after his debut, RápSóDì, dropped, Nigerian rapper Olamide has released Lagos Nawa!, his seventh studio album created in his usual fashion of singing and rapping in his native Yoruba.

Save ‘Shine’, produced by Olamide himself, the album is exclusively produced by his

long-time collaborator and wunderkind Young John.

This studio LP, subtitled Wobey Sound, baptises Olamide’s recent mid-tempo music in which he leans into hiphop and fuji music in equal measure. Add his nostalgic descriptions of Lagos working-class suburbs and grimy tales about cannabis, alcohol, sex workers and other paraphernalia of thug life and what you have are

songs that often demand dance while retaining their street relevance. Although some songs sound like iterations of his older songs, this album thrives because

it embodies the spirit of Lagos, going straight into the core of our modern realities of propositions, sex and the pursuit of money. However, hip-hop heads should manage their expectations when listening to Lagos Nawa!, which is yet another commercial singing break from rap by Olamide. Glory, still hot from its 2016 release, will surely tide them over until he gets into the booth again.

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Music Sista Becky: The only way is up

ABIDJAN | COTE D’IVOIRE ‘What is left of our love?’ presents a range of paintings and photo-collages by the artist Vincent Michéa. cecilefakhoury.com

Nominated in two categories at the 2017 Africa Hip-Hop Awards, the DRC rapper is setting her sights on the continent

JUST LIKE US: CONSTELLATIONS Until 15 Feb.

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JOHANNESBURG | SOUTH AFRICA Ghanaian photographer Eric Gyamfi’s exhibition at the Goethe Institut builds on his ongoing portrait of queer life in Ghana. goethe.de/ins/za/en

1:54 ART FAIR 24-25 Feb. MARRAKECH | MOROCCO La Mamounia in Marrakech plays host to the 1:54 Art Fair for its first edition on the African continent since the event was first launched five years ago.

1-54.com/marrakech

SB ENTERTAINMENT

ista Becky sits near the pool at one of Kinshasa’s trendiest bars, wearing large golden hoop earrings, a sleeveless, dark-blue lumberjack shirt and a denim jacket, hanging from the shoulders as if an afterthought. The look is completed with her thick, chunky braids, which have become her signature.

“The hair is one of my references […] one of my little touches that people know me for,” she explains, answering questions energetically between sips of a virgin mojito. She says she wants people to think of her as a “beautiful woman, 100% feminine,” but one who “will give you a good fistful of rap and rage.”

She has just come from a studio session with veteran Congolese rapper Lexxus Legal, recording a song that aims to fight against the stigmatisation of HIV victims.

SistaBeckybeganrapping in French at an early age, competinginrapbattlesand freestyling at school parties since she was 10 years old.

Inspired by French rapper Diam’s sophisticated lyrics, she worked hard to refine her vocabulary and used to practise rapping with a pen stuck between her lips like a horse’s bit to improve her diction. She soon found that rap had a grip on her, becoming almost compulsive.

QUE RESTE T-IL DE NOS AMOURS? Until 10 Feb.

Sista Becky is experimenting with different styles, including afrobeats, dancehall and kwaito

“It felt like a spirit was haunting me and wouldn’t leave me alone,” she recalls.

This gave her the idea for her 2016 debut single, ‘Monsieur Le Rap’, in which she describes rap as a force “stronger than everything, above everything”.

Not content with her early successes in the DRC hiphopscene,sheisnowsetting her sights on other African markets. Having already performed in Uganda and Senegal, she is planning to travel across the continent, experimentingwithdifferent styles, including afrobeats, dancehall and kwaito, to find a sound that appeals to F E B R UA R Y 2 018

new audiences: “I’m going to blend rap with music that talks to people.” Underlying this is a strong awareness of the commercial reality of the music industry. “I write rap that is engaged and conscientious,” she says, “but with a commercial style.

Because it needs to sell!”

In the DRC, where discrimination against women is pervasive and deep-rooted, succeeding as a female rapper and entrepreneur is a testament to Sista Becky’s restless ambition. “Nothing will stop me from reaching the summit, unless the devil interferes,” she insists.

Andrew Panton

IN POKUA’S PLACE Until 2 Mar. ACCRA | GHANA In his first solo exhibition Gideon Appah’s mixed-media artwork pays tribute to his grandmother, invoking sentiments of memory, place, legacy and childhood. nubukefoundation.org

TRANSVANGARDE Until 3 Mar. LONDON | UK The October Gallery’s annual exhibition of the trans-cultural avant-garde, bringing together work by artists including El Anatsui, Romuald Hazoumè and Eddy Kamuanga Ilunga. octobergallery.co.uk

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TWITTER TRENDS #ANC54

Ayesha Harruna Attah

As South Africa’s African National Congress (ANC) voted for Jacob Zuma’s successor as its president, Twitter waited on the edge of the keyboard for the results

The Ghanaian author's much-anticipated third novel, The Hundred Wells of Salaga, will be published in May

uBaba Wama Celebs @TheEdgeSearch

#ANC54: Cyril Ramaphosa elected new ANC President The Rand:

What was the last novel you read that made you see things differently?

Akwaeke Emezi’s brilliant debut, Freshwater. I can’t get it out of my head. Never have I felt such conflicting emotions about a book. The writing is fresh and raw and examines spirituality and mental illness in a way I have never read before.

Where’s the best place you’ve vacationed?

TWITTER

My sister and I first visited Saint-Louis in Senegal in 2008. When we arrived, after a gruelling, bone-shaking drive, we fell asleep for 12 hours straight. It was as if the place knew we needed comforting.

Mention three things you find beautiful in nature?

The eternal crashing of waves; flocks of birds assembling into perfect geometric shapes; and how, always, there’s that one bird straggling behind, dancing to its own song.

Ndlovukazi @2uli

We need younger people kwi ANC ...

If you could sing or play only one song for the rest of your life, which would it be?

Afikile Lugunya @afikile_lugunya

D’Angelo’s ‘When We Get By’.

The ANC is making things that cannot make the results be announced. The singing is starting to depress me now #ANC54

What is your greatest extravagance?

Ice-cream and chocolate.

What are you and your friends discussing around the dinner table?

Motherhood. How to get more sleep.

Moses Chikwanda @MosesChikMos

Zora Neale Hurston, Bob Marley, Eartha Kitt, and James Baldwin.

Who are you listening to?

Nneka Nwosu’s podcast ‘Boss Bitches’.

What are you reading?

J.J. Bola’s No Place to Call Home.

Where do you feel most at home?

Any place close to the sea.

Shayera Dark

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Which famous deceased people would you invite to your birthday party?

The ANC should release an album. They are wasting their music talent. #ANC54 Billboard Of Mercy @NontoNkosi

The ANC is not serious about the gender balance issue. It has never been about women and never will.

Women, you're on your own! #ANC54

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TOMMY TRENCHARD/PANOS-REA

TRAVEL RWANDA

The aquatic garden Flanking the border of the DRC and the north shore of Lake Kivu, Gisenyi flaunts its rippling countryside and still, bluish waters

W

e are on a journey to Gisenyi with our Kigali host, Bonfils Mugisha, sipping on the picturesque views of the country of a thousand hills as we go. On the way, driving through the small town of Ruhengeri – or Musanze as it is also known – you can just about see the two peaks of the Virunga Mountains hiding in fog. It is the only area in Rwanda where mountain gorillas live. The animals are protected by the Virunga National Park reserve, which stretches into Congo, but a guided tour to see the mountain gorillas will cost you a whopping $700.

Gisenyi by day is a splattering of bungalows, bright orchards and multi-coloured flowers growing on scenic hills, like an aquatic garden.

Located in the north of the country, in the Rubavu district, it is a three-and-ahalf-hour drive from the capital.

Arriving in the evening it is cold.

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RWANDA Gisenyi

town. Close to the lake, fish h is a popular dish here. A supper per of grilled tilapia and potatoes or a plate of sambaza – a small fish – is recommended. For meat-eaters try the brochettes, pili pili, a chilli sauce, cabbage and amashaza urusenda, a delicious dish of green beans eaten with rice.

A walk along the shore of the lake after dusk is lit by Goma’s twinkling lights on the horizon. The lake breeze is chilly but fresh. The night is still young so we head over to a local bar to bump our heads to some Kinyarwanda hip hop. From there we zig zag around town, hugging the nightlife till midnight. If hip hop isn’t your thing, have a beer at the open-air bar La Bamba or try the Cotton Club for a night of music and dance.

POWER FROM THE DEEP

Thenextmorningthelake’sflower-strewn surroundings are a kaleidoscope of colours. Birds chirp morning songs. Tiny islands poke their heads out of water.

Lake Kivu is surrounded by resorts and

three sandy waterfront beaches. Thearea is also Kigali popular for watersports.

Kayaks can be seen plyi its clear waters. ing Lake Kivu produces metthane which builds up b at its bed.

The Rwandan government has constructed a methane extraction platform here, a $200m project called KivuWatt, which produces 26MW of electricity for the national grid.

On the way back to town we pass by the Bralirwa – the only brewery in Rwanda – which manufactures various local beers and branded soft drinks.

It was already running on the lake’s methane before KivuWatt was built.

In downtown Gisenyi, an Egypt Expo is in full flow. Vendors hawk fabric, rugs and perfumes in shops and on stands; in recent years Rwanda has become one of the continent’s go-to destinations for trade fairs. You can also buy Rwandan traditional fabric and Masai-styled slippers and shoes at the Gisenyi market.

Before heading back to Kigali, see if you can spot the Nyiragongo volcano in the Virunga Mountains. On a clear night, you can see the red smoke smouldering out of its peak.

Nkiacha Atemnkeng in Gisenyi

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Chef's table

Vusumuzi Ndlovu’s determination to “kick ass” takes the 28-year-old chef to Italy in June, representing the continent at the San Pellegrino Young Chef Awards

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ne of the earliest memories for me and all those that I grew up with is my cousin’s butternut soup. The whole family would get together and feast on an impressive spread. I remember being in the kitchen helping with scones and just watching the soup being made. What blew my mind is how such a simple act made everyone at the table feel.

Growing up, my aunts and cousins made yummy food and everyone loved it. They would be the most popular people at the family gatherings; everyone knew that if you got on their bad side you would be getting a small portion or nothing at all.

After I matriculated in 2009 there was an idea to study engineering but I wasn’t too keen for it. So I just applied for a bunch of jobs, the Sheraton Hotel in Pretoria called and I thought I’d give it a bash.

Since then I’ve worked at Greenhouse at The CellarsHohenort (Cape Town), Five Hundred (Johannesburg), In De Wulf (Belgium), and now at The Pot Luck Club pop-up at The Marabi Club in Johannesburg.

When I first started working, it was far from love at first bite. In a nutshell, it was a “deer in the headlights” kind of feeling. Everyone was speaking in code and

shouting at me to go faster. I remember ending my first shift and just watching chef videos on YouTube.

I was determined to kick ass the next day.

Right now, my routine varies. On a normal day, we come in, greet the guys, and tackle the most time-consuming jobs and the technical stuff: making sure the guys are on track, calling a supplier who promised to send something but didn’t, and so on. There’ll also be a meeting about something so I sit in on that. Then as the day winds down we make it a point to have our guys sit down for a bit. In our kitchen the senior guys will be in trenches so I’ll push on with service then end the day with a gin and tonic.

People would be surprised by the intensity that goes into preparing something seemingly simple.

The trial and error we go through before a dish is put on the menu is also crazy. But the emotions you can evoke with food always excite me. Also, the people you get to meet are surreal; you make friends for life in this world. I always pay respects to Peter Tempelhoff, David Higgs, Kobe Desramaults, and Luke Dale-Roberts. The things I’ve learnt from these great chefs vary but these are lessons I’d never trade for anything. So I make it a point to thank them.

Anyone who knows me can confirm that I hate waking up in the morning, that’s a major personal challenge. But the ability to continue to evolve is something I welcome. We can go on about knife skills and the like, but I think your mentality and attitude need to be on point to do well. Everything else follows after that.

Interview by Eugene Yiga THE AFRICA REPORT

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