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Business Opportunities

Browse our Business Opportunities listings to find exciting business and investment

opportunities in Africa.Looking to grow your business in Africa? Promote your companys Distribution, Franchise and

general Business Opportunities to How we made it in Africas 100,000 monthly visitors.

Clickherefor more information about listing an opportunity.

Madison

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Type of Opportunity: Distributor / Agent / Reseller

Overview of Opportunity:

MADISONThe Heart of New Yorkis a leading footwear brand inspired by the fashion capital of

the world. MADISONis positioned as one of South Africas most successful footwear brands and is
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expanding to seek distribution opportunities throughout the African continent.

MADISONwas established by Shane and Pauline McEvoy in 2009. The team developed a range of

shoes for women who have a fearless approach to fashion.

Each collection has energetic injections of colour and detail for the sophisticated women who love

the MADISONlifestyle. From sandals and wedges to glamorous statement heels,MADISONhas

every trend covered.MADISONis looking for importers all over Africa who would like to offer stylish, quality footwear that

delivers beyond expectation in terms of price in their respective markets. This can be as a

wholesaler where you will distribute to retailers within your respective market or as an e-commerce

partner focusing solely on online retail. With millions of people accessing the internet via laptops,

tablet devices and mobile phones an opportunity exists for selected MADISONpartners in different

countries to exploit this marketit is surely an area that offers massive growth potential and profit

for a partnering company marketing MADISONsexclusive range of female footwear.

MADISONsAfrica Head Office, based in Cape Town, South Africa, will arrange for orders received

to be shipped, either from MADISONswarehouses in South Africa or directfrom MADISONsinternational factories.

MADISON actively markets its footwear by:

Point of Sale:Supporting retail stores with visual merchandise material and in store brand

activations.

Digital Community Management:Engage with internet users on Facebook, Pinterest, Twitter,

Youtube and Instagram.
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Media Strategy: Product placement features in magazines, fashion blogs, radio and TV.

Brand Ambassadors:Establishing relationships with influential celebrities to wear MADISONand

share their passion for the brand.

Strategic Partnerships:Through Miles for Style, an

exclusive online community marketing and promoting premium aspirational brands from a select

community of supply partners to the general public and, in particular, members of Voyager, South

African Airways loyalty programme.

Corporate Social Investment:Giving back to the community via collections and donations to charity

partners.

We will provide twice yearly seasonal marketing campaign collateral to beautifully showcase

summer and winter trends. This powerful imagery builds brand identity and is a key marketing tool.

Images can be used at a nominal fee.

With our experience in global ladies fashion footwear market and your local country and footwear

knowledge, together we can become Africas leading brand offering great quality, trendy, fashionable

designs and affordable ladies fashion footwear across the African continent.

Should you wish to join the MADISONteam and bring this leading ladies fashion footwear brand to

your market, please contact us for more information.

Business Name:Madison

Email:[email protected]

Phone Number: +27 21 510 4510
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Fax: +27 86 606 4742

Website:www.madisonheartofnewyork.com

Sector(s):Consumer Goods & Retail

Affordable housing

Transport services

African Land Investments eyeing mallsin key markets across the continentBYDINFIN MULUPI| 7 APRIL 2014 AT 11:26

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The expansion of international and regional retailers into emerging markets in Africa is

fuelling a wave of the construction of modern shopping centres. Africas fast-growing cities

are home to a growing middle class whose heightened appetite for quality goods and

convenience is changing the retail business.

African Land Investments CE Kevin Teeroovengadum
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African retail brands including Kenyas Nakumattsupermarket chain and South Africas Famous

Brands, Woolworths, Pick n Pay and the Foschini Group are expanding to other parts of the

continent, targeting the emerging middle class. Most of these brands are anchor tenants of new

malls planned for, or under construction in countries such as Kenya, Nigeria andGhana.

Real estate investment company African Land Investments (ALI) is seeking to buy shopping malls ingrowing markets in the continent. Established last year, ALI provides an exit option for individual

developers and private equity funds which own shopping malls in the continent.

ALI owns the US$140m Manda Hill Mall inZambiascapital Lusaka. The 44,000m mall is the

biggest in sub-Saharan Africa, outside South Africa.

ALI CE Kevin Teeroovengadum says the firm intends to grow its portfolio to $500m in the next three

years. He explains that the increasing number of malls under construction in Africa is testament to

the continents changing economic environment and its growing appeal to investors.

Speaking to How we made it in Africaon the sidelines of the recent East Africa Property Investment

Summit in Nairobi, Teeroovengadum said ALI is eyeing high quality malls in defensive locations andgood catchment areas.

Our strategy in the next two years is to go and find big defensive shopping malls that we can buy

and grow our portfolio to half a billion US dollars.

Teeroovengadum notes that in the markets ALI is eyeing, it is expecting fair returns.

Given that we have bought in Lusaka we are going to be looking at other opportunities in Zambia,

but there you have got limited opportunity because it is not a big market. We are going to be

focusing on West Africa; we are very keen to get into the Nigerian market. In East Africa we are

looking at the region as opposed to a single country but we still need to be inKenya.Nairobi is

going to be an important market for us to look at.

Teeroovengadum says its South African shareholders are seeking passive income in high-growth

economies. ALI is owned by Johannesburg Stock Exchange-listed property firms Hyprop (87%) and

Attacq, previously Atterbury Investment (12.4%).

In the rest of Africa we can buy income producing assets in a growing market. InSouth Africathe

economy is not growing that well [about] 2.5% GDP growth, whilst in markets like Kenya and

Nigeria you are talking about 6%-8%.

He notes that there are not many malls up for purchase in most countries but this is likely to change

over the next year.

It is only in the last couple of years that we have seen private equity funds developing these malls.

Its very limited opportunities, but on the other hand there are very few buyers who have got funding

like we do to go and do those deals. We estimate in the next year or so you are going to have at

least two or three assets per country that will be available for sale.

Diversifying against risk

One challenge ALI is likely to face as it purchasespropertyin different countries is how to get

minimum tax leakages.
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Its very easy to look at Africa and think all the countries are the same but the reality is they have

got different tax regimes, different governments [and] different rules when it comes to ownership.

Each country has its own specificities and I think that is what is challenging. That is also why it does

take time to do deals. You need lots of hard work to make deals happen.

The threat of terrorism will also be a major concern especially in high risk countries like KenyaandNigeria.Last Septembers attack on the Westgate shopping mall in Nairobi in which 67 people

were killed has ignited debate on safety in malls which host thousands of people at any given time.

In the aftermath of the attack hundreds of people have lost their jobs and business owners are still

counting the losses. The damaged mall remains closed.

To cushion itself from the effects of such an event, the ALI boss says the firm will diversify its

portfolio across various countries and cities.

There arecountries and cities where you have higher risk. In Zambia we have got no risk of

terrorism at all. If we buy in Nigeria we will probably look at Lagos and Abuja but not further up north

[where Boko Haram attacks are frequent]. What we are hoping is that when we have a $500mportfolio, a mall in Nairobi will only represent maybe 20% of that so that if something happens it

doesnt impact the whole portfolio.

Five things you can learn from Kenyastop businesspeopleBYSTAFF WRITER| 31 MARCH 2014 AT 14:54

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Over the past years How we made it in Africahas interviewed many of Kenyas most successful

businesspeople and entrepreneurs. They have all overcome numerous hurdles to get to where theyare today. Below are some insights to help you get ahead in your own endeavours.
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Seven Seas Technologies CEO Mike Macharia says businesspeople should consider the opportunities across the continent.

1. Be patient and dont give up too quickly

Gina Din-Kariuki, founder of one ofKenyasmost successful PR companies Gina Din Corporate

Communications,saysentrepreneurs shouldnt give up on their ideas too quickly.

Every time I have wanted to quit and there have been a few [times]its at that point that [I was

at] the very verge of greatness that moment after is when its your next leap of success. Its really

interesting, she says. What I would say topeople starting their businesses now is hang in there.

The journey of an entrepreneur is never straight. There are potholes on the way but we have to

stay in there for the long haul.

Bob Collymore, CEO of mobile telecommunications giant Safaricom, agrees,sayingbusinesspeople

andentrepreneursneed to be patient. Success is a long journey whose path is wrought with

missteps, wrong decisions, discouragement, skewed plans and sometimes, failure. Be flexible; if

something doesnt work out, learn from the situation and move on.

2. Get involved in what you know

Pete Muraya has had many failures in business before finding success in propertydevelopment.

The CEO of Suraya Property Groupadvisesother entrepreneurs not to make the mistakes he made

by investing in businesses they know nothing about. Real estate has attracted a lot of investors in

recent years due to its potential high returns, but Muraya urges entrepreneurs to exercise caution.

Real estate is good business, there is good money but one needs to be careful. If you want to go

into real estate, dont do it because you heard Muraya is making money, [otherwise] you are going to

burn like crazy. Spend time researching it. By the time you get into it, you should have a good

understanding about what it involves.

3. Listen to the advice of others

Entrepreneurs shouldnt have a know-it-all approach,saysJoanne Mwangi, founder of marketing

company PMS Group. She adds that listening to advice and criticism, especially from outsiders, can

be eye opening.

You must accept that you are not perfect because for a lot of entrepreneurs that is our greatest

weakness, me being one. Someone else might just tell you something that will completely

revolutionise your business. There is nothing as important as an outside perspective. Somebody

looking from outward-in will see things you dont see.
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4. Turn challenges into opportunities

I have no time to think about challenges,saysNjeri Rionge, tech entrepreneur and founder of

Wananchi Online. Even when they come I try to solve them so quickly and get over with it. Because

I convert them, they stop being challenges. I have been at many points where I knew the cookie was

about to crumble, but my focus was [that] it cannot crumble, therefore I focus on the upwardmovement.

5. Think beyond your home market

Many African countries are currently experiencing strong economic growth. While numerous

challenges remain, industrialist Manu Chandariasayspeople should grab hold of the opportunities

on the continent.

When [the] iron is hot, you hit it, you shape it. This is the time that Africa has all the possibilities and

whoever misses it will miss [out] for good, notes Chandaria.

Mike Macharia, CEO of Seven Seas Technologies, agrees that businesspeople should consider the

potential in other parts of the continent outside of their home markets.My vision has expanded on a radically global scale. I dont sit down and think about Kenya only, as

was previously the case. I have re-energised my passion and consider myself an African

entrepreneur, says Macharia.

Africa has plenty of innovative, like-minded entrepreneurs who, hesays,need to start looking at the

region as a whole and creating partnerships to drive the African agenda globally.

The Chinese look at Africa from thiscontinent-wide perspective with a view to consolidating

opportunities and combining resources. We need to stop compartmentalising countries and looking

at Kenya on its own,Ugandaon its own, and so on. It would be significantly value adding all-round

to find solutions that address African problems as a whole, advises Macharia.

Tenacity required to survive in realestate industry, says GhanaiandeveloperBYJACO MARITZ| 26 SEPTEMBER 2013 AT 14:09

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?

When Harry Quartey started his Ghana-based real estate development business, Emerald

Properties, more than a decade ago, business was much tougher than it is today .

Harry Quartey, CEO of Emerald Properties

I went through a lot of difficulties trying to get buyers. Even though I reduced [the prices] of my units

drastically, I still had a bit of a challenge. But it is expected. In this part of the world we are in a

market where so many people have been disappointed so many times. If you are new, they dont

really want to take any chance on you, Quartey says of the early years.

He describes his first sale as a mixed feeling due to the fact that he sold the unit for a much lower

price than originally planned.

Educated in the US, Quartey returned to his country of birth towards the end of the 1990s. After

working for a local mortgage bank for a couple of years, he decided to take the plunge and in 2001

started his ownpropertydevelopment company, specialising in apartment complexes in Accras top

neighbourhoods.

To date Emerald has developed a number of apartment blocks across Ghanas capital.

Growing demand for apartments

Over the last decade Accra has seen an increase in demand for apartments, as opposed to free-

standing houses.

The demand for apartments is very high. It has been this way for the last 10 years. Weve seen a

steady growth and interest in apartments The cost of land has gone up about more than 10 times

over the last 10 years People would rather invest in what they can afford, which is apartments,

Quartey explains.

According to Quartey, the majority of buyers of Emeralds properties are Ghanaians. Most of these

properties are bought for investment purposes and then rented to expats. He is however, seeing an

increasing number of buyers also occupying these properties.
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He says Ghanas nascent oil industry has pushed up demand for accommodation.Ghanastarted

with offshoreoilproduction in 2011, and the industry has been responsible for much of the countrys

rapid economic growth over the past two years.

We dont just sell the units, but we also manage the units that we build, so we have a fairly good

idea about the clientele who is coming in for rentals. We are definitely seeing an increase incompanies providing services for the oil companies, as well as the oil companies themselves have

taken up some of our units, says Quartey.

Honesty and perseverance required

Quartey notes thatfinancingis one of the biggest challenges of operating in Ghanas property

industry. In many instances, banks are hesitant to provide long-term funding.

Emerald has attracted investment from SME-focused private equity firm Jacana Partners. Quartey

says Emeralds track record and the fact that it has a private equity firm on board, make is slightly

easier to access financing.

He says honesty is essential to make it in Ghanas real estate market. You have to be honest. Thismarket is full of individuals who always try to cut corners, to make more money off the customer. In

this business, as well as any other business, I think honesty is key.

When you take a long term view of whatever you are doing, you dont just take a look at the profits

that you make on one house, you look at what you make on the subsequent 200 homes. If you are

honest and the customer believes in you, the word gets out there, and the customers will come in.

Quartey adds that those looking for success in the property industry need to have the capacity to

persevere through the various challenges. You need to have a lot of perseverance, because it is not

easy raising funding, and getting a lot of these permits that you need to get your projects going. It

requires a lot of tenacity to survive, and so you really need to be prepared to work hard and

persevere under these sorts of circumstances.

From losing almost everything tobecoming a property tycoonPeteMurayas storyBYDINFIN MULUPI| 26 JULY 2013 AT 15:44

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Property tycoon Pete Muraya has made many mistakes in business before finding success in

property development.

Pete Muraya

The CEO of Suraya Property Group, one of the most successful real estate businesses inKenya,

has endured one failed business after another, but kept trying because he

believedentrepreneurshipwas what he was cut out for.

I had a restaurant, it failed. I had a disco in town, it failed. I had a [truck], it failed Muraya toldHow

we made it in Africa.

The trained architect recounted how in the mid-1990s he decided to organise a concert in Nairobi.

He flew in a US musician with the hopes of making significant profits from the show.

Do you know it wiped me out? I lost everything I had in just one show. I spent US$235,000 and after

the show I had made $35,000 in sales. The place was full but there was no money. Guys stole the

tickets no one was watching the gate, he recounted.

Before organising the show, Muraya and his wife had several cars, including a Range Rover and a

BMW. They also owned three properties.

From that day my best friends were auctioneers It took me six years to recover fully, he said,

adding that he eventually managed to salvage just one car and one property.

The only business Muraya managed to sustain for a long period was an architecture consultancy he

started in 1987. Although business was good, it had its own downsides.

The problem with consultancy is that it is very personal. The client must like you, not necessarily

your work. The personal relationship is very critical. You spend a lot of time chasing people and

trying to befriend people so that they can give you work, he noted.

After Kenyas 1997 presidential elections, the government decided to freeze all projects being

undertaken by state-owned corporations, which were Murayas primary clients.
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We thought it was temporary but it became five years of no work. A lot of firms closed down. I had

an office of 12 employees and ended up firing everyone expect the receptionist and a technician. It

was a very difficult time, he said.

Tasting success

After reading Robert KiyosakisRich Dad Poor Dad,Muraya began aggressively working towardsgetting into thepropertydevelopment business. The only problem was that he had no money, no

assets and no banks were willing to lend to him.

He then partnered with a friend who had the capital to put up their first project of 16 apartments.

Muraya went on to pioneer partnerships between land owners and developers, and he cites

innovation as one of the reasons why his property development business has been successful.

Yes, we are making money. Yes, we are big. But our drive comes from the desire to impact as

many people as possible. We have introduced new concepts and pioneered innovative products in

the market that have changed the industry, he said.

Suraya Property Group has been involved in a number of large projects, and the company hasrecently also entered the low cost residential market.

Muraya said his goal is to have customers come to his office and have a choice between a $12,000

apartment or a $705,000 penthouse, and anything in between.

Some of the challenges the property group faces is the cost of land and archaic laws.

It is very difficult to findland. It is very expensive in this country. Land is appreciating at rate that is

illogical, he said.

Never lose faith

After losing so much money and failing again and again, why did Muraya decide to give it another

shot?

I always believed that I couldmake it happen. But I didnt understand that one needs a very clear

direction of where you want to be. I was always getting into businesses, not because I knew what

they were, but because people told me there was money in it, he explained.

He also admitted that his wife, who is the managing director of Suraya, has been very supportive.

His failed attempts in business have taught him never to lose faith. The day you stop believing that

something good is going to happen, you are basically dead. My wife and I always had a positive vibe

about things.

Muraya said he hopes other entrepreneurs do not make the mistake he madeinvesting in

businesses they know nothing about. Real estate has attracted a lot of investors in recent days due

to its high returns, but Muraya urges entrepreneurs to exercise caution.

Real estate is good business, there is good money but one needs to be careful. If you want to go

into real estate, dont do it because you heard Muraya is making money, [otherwise] you are going to

burn like crazy. Spend time researching it. By the time you get into it, you should have a good

understanding about what it involves.
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He advises aspiring property investors to read widely about the industry, speak to experts in the field

and seek advice from successful property developers.

Property entrepreneur Hamed Ehsani

talks about his business journeyBYDINFIN MULUPI| 18 JUNE 2013 AT 10:38

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Pages: 12

When Iran-born entrepreneur Hamed Ehsani arrived in Kenya shortly after the 1979 Iranian

Revolution, business was the last thing on his mind. Ehsani and his family were visiting his

brother, a lecturer at the University of Nairobi, after which they planned to travel to Australia.

Their Australian visas delayed, they fell in love with Kenya and decided to stay.

Hamed Ehsani

Today Ehsani is managing director of The Village Market, a large shopping centre located in Gigiri,

one of Nairobis top neighbourhoods. The shopping centre neighbours the UNheadquarters in

Africa, the US embassy and a host of other diplomatic missions.

In 1992, as Ehsani and his brother Mehraz drove to a golf course through Gigiri, which he tells me

was then under a coffee plantation, the idea of constructing a shopping and recreation facility in the

area hit them.
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Having grown up in the Middle East and studied in the US, Ehsani had been exposed to large

shopping centres and malls, a concept that was fairly new inKenyaat the time.

One of the arts ofentrepreneurshipis to see an idea and try and adapt it for a different

environment, said Ehsani.

When we started there were one or two shopping centres already build, but they were very I couldsayrough. They met the requirements and they are still ongoing and they are doing beautifully

well, but we felt there was room to add a little more style and a little more beauty and texture, he

recalled.

The Ehsani brothers instructed architects to come up with 30 shops and a small supermarket.

We needed US$1.5 million to start the project. The land was bought at a very nominal cost. At that

time it was cheap. We went out to abankand we borrowed three quarters of that amount, said

Ehsani.

The Village Market has since expanded and now has 150 shops, and the 137-room luxury Tribe

Hotel. The Village Market is currently under expansion that will see an additional 70 shopsconstructed. A $1.5 million budget hotel will also be established to capture increasing demand.

According to Ehsani, this is the fifth expansion since the establishment of the shopping centre.

The expansion is going to be quite large. It is a $50 million expansion to make room for retail

brands. We have bookings and enquiries from European and American [companies], said Ehsani.

Dealing with the sceptics

In 1992, not everyone was optimistic about the prospects of a shopping centre in a secluded, far-off

part of town.

We met huge resistance at the beginning and scepticism from many people; this is not going to

work, its too far, who is going to go there and all that, said Ehasani. People didnt understand it.

But, we could see that the area would grow. We kept at it, refined the concept and we expanded it.

The whole idea was that we didnt give up.

When the US embassy came into the area, other diplomatic missions followed transforming the

neighbourhood into a diplomatic zone. The Village Market became the to go place for Nairobis

diplomatic community,touristsand the middle class for high-end shopping and entertainment.

Demand for shopping centres on the rise

The Village Market managing director explained that external and internal forces are driving demand

for more shopping malls in Nairobi and other urban centres in Kenya.

Internally, the development of the middle class in Kenya has been a major force. Maybe about ten,

fifteen years ago, out of an office of 20, only two of my staff drove a car. Today out of twenty, 18

have cars. It has completely changed, he said. With that mobility now they can eat in different

places, shop in different places, visit different people.
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Five ways to profit from property inMauritiusBYSANDEE TEEROOVENGADUM| 14 AUGUST 2012 AT 09:46

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Sandee Teeroovengadum, operations and business development manager at real estate agencyDavyland Properties, looks at five areas that hold potential for property investors in Mauritius.

Port Louis, the capital city of Mauritius

1. Niche opportunity in tourism

With its amazing beaches, Mauritius is well known as a holiday destination. The island catered for

950,000 tourists in 2011. Although the number of hotels amount to 109 with net room capacity of

11,925, we still observe a niche opportunity for 3-star and boutique hotels.

Mauritius has always been perceived as a luxury destination and the prevailing hospitality service

has shaped itself to serve such demand. Today 66% of the room distribution is based in hotels of 4-star and above.

However, with the global economic trend, tourists have become more cost vs quality conscious, and

seek for a more personalised and friendly service at reasonable cost. There are therefore

opportunities to develop new smaller boutique hotels with less investment on the cost of

infrastructure and less manpower, but with a most competitive price positioning.

2. Allying coastal apartments with hospitality
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Facilitation Act, which eases the implementation of offshore companies. There is also the double

taxation treaty with India, which encourages Indian companies to establish part of their operations in

Mauritius to avoid tax on their investments. These measures have led to the creation of new

business districts in the north and the centre of the island. Offices are now being looked upon as a

new investment product in the real estate sector with a return on rental of 10% per year.The Africa Property Investment Summit, the biggest event on the African real estate calendar, is fast

approaching with limited bookings available. The two-day event, taking place in Johannesburg from

4-5 September, will be held at the beautiful Sandton Sun Hotel. The conference package

(R6,750/US$845) includes all lunches and refreshments, an invitation to the gala dinner, parking and

full access to all research, presentations and documentations. For booking information

visitwww.apisummit.co.za.Special offer for How we made it in Africa readers: 10% discount for

the first 20 readers to register. To take advantage of this special offer email Marie Coetsee

[email protected] +27 11 408

Africas real estate and constructionopportunities cannot be ignoredBYIMARA AFRICA SECURITIES TEAM| 11 MAY 2012 AT 12:29

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Wal-Mart Stores Inc (through South Africas Massmart) has indicated that it will be

strengthening its existing operations in Africa.

Massmart is currently located in 12 markets so thats our focus. Building our business in the

markets that we are currently in is our primary focus, said Doug McMillon, head of international

businesses during an interview with Reuters. We are excited about the region. We have a long-termview, he added.

Massmart already has a handful of stores outside South Africa, giving it a foothold in markets such

as Ghana, Nigeria and Uganda. According to the Massmart chief executive, Nigeria alone has scope

for up to 20 stores.
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An interesting highlight is that strategy to grow to the rest of Africa is not only being implemented

by fast-moving consumer goods companies. This theme has dawned to a number of South African

companies in various sectors as sub-Saharan African continues to exhibit exciting growth prospects.

We recently came across an interesting article in the Financial Mailthat has it that Resilient Property

Income Fund has partnered with Shoprite Holdings in building 10 shopping malls in Nigeria at anestimated cost of about US$ 125 million. Resilient is a South African real-estate investment

company.

The malls will be built over the next three years in the political capital, Abuja, and economic hub,

Lagos. Shoprite will be the major tenant while Standard Bank Group and construction company

Group Five are also partners in the deal.

Speaking of real estate and construction activity, we note South Africa s Group Five has geared up

its strategy of focusing on cross border opportunities with the aim of securing higher margin

business. In fact, Group Five continues to prioritise geographical diversification away from South

Africa as a strategic imperative having set a target of generating 40% of all group revenues fromcross-border markets.

It is very clear that there is an infrastructure backlog in Africa, and therefore the region presents a

massive opportunity for construction groups in terms of new public-private partnership (PPP)

opportunities. Further, Group Five is focusing on accessing more of the mining capital spending in

Africa through the delivery of multi-disciplinary solutions to mining companies operating in remote

locations. In this regard, the group has provided mine construction, housing and infrastructure works

in the DRC, Zambia and west Africa.

In its recent results publication, the company also indicated that it had successfully secured a $206

million contract financed by the Development Bank of Southern Africa (DBSA) for the master

planning, design, construction and operation of the first phase of a new road transport network for

the Zimbabwean National Roads Authority (ZINARA).

Feedback from our colleagues who recently attended the 2012 Ethiopia Investment Summit in Addis

Ababa is that there is massive construction activity happening in that east African country.

In conclusion, while we are strongly convinced by the fact that sub-Saharan Africa exhibits a

compelling consumer story, we believe the opportunities in real estate and construction cannot be

overlooked.

Imara is an investment banking and asset management group renowned for its knowledge of African

markets.

Pam Golding chief shares his thoughtson Africas real estate marketBYJACO MARITZ| 29 JUNE 2011 AT 12:36
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How we made it in Africainterviews Dr Andrew Golding, chief executive of South African real estate

agency Pam Golding.

Dr Andrew Golding

Give us a brief overview of Pam Goldings business in the rest of the continent (outside

South Africa).

We have for a number of years had representative offices in the Southern African Development

Community (SADC) region,

includingNamibia,Mozambique,Zimbabwe,Lesotho,Swaziland,ZambiaandBotswana.

Furthermore, we have active businesses in the Seychelles andMauritiusand most recently, we

have concluded arrangements to open offices in Nairobi,Kenyathat will commence operations on 1

September.

How has business in the rest of Africa been going in recent years? Are you seeing an

improvement in the overall business environment in these countries?

Business appears to have been less affected by the economic downturn in the rest of the world andmore directly affected by the growth in real estate demand caused by increased international

investment, especially the Chinese-led interest in Africa.

How does the real estate industry in a country like Zambia, for example, differ from your

home market South Africa?

Less efficient markets due to less available market information. There is generally not the level of

information on transactions as is generated by the Deeds Registries via Lightstone and others. Also,
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South Africas sophisticated Deeds Registries enable certainty on ownership, which in turn enables a

mortgage based lending system in which property ownership facilitates wealth creation through

efficient gearing of equity in property. Mortgage origination is absent. Suburban branch networks are

few and far between. Agents travel far and cover larger areas.

Pam Golding is also active in Zimbabwe; describe your outlook for the country? Whilst we are not able to comment on the political outlook for Zim, the real estate market has on the

whole, remained remarkably resilient as a tangible store of wealth and a hedge against the huge

inflation experienced until dollarisation.

Are you planning expansion into other African countries?

Yes, we are looking at the entire East Africa at present. Angola, Nigeria and Ghana have also been

closely monitored over the past four years.

It has been a year since the 2010 World Cup; how did the event impact South Africas

property market?

Our sense is that the World Cup re-focussed attention on South Africa and provided a number ofpeople with a reason to visit the country over the past year, or in the next year or two. Foreign

buyers begin as tourists to South Africa, so that was a positive result of the World Cup, in that we

can expect the usual ratio of conversion of tourists into South Africa to property owners. The

negatives remain a strong rand, which has seen a lot of the foreign buyer interest placed on hold

pending a weakening in the rand and weaker international asset positions.

Zambia to build 12,000 houses throughpublic-private partnershipBYSTAFF WRITER| 13 NOVEMBER 2010 AT 14:48

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The Zambian government has announced a programme to build a minimum of 12,000 housing

units across the country.

TheZambia Daily Mailthis week reported that Finance and National Planning Deputy Minister

Chileshe Kapwepwe said the 12,000 units will comprise 6,000 low-cost houses, 4,500 aimed at

middle-income earners and 1,500 high-cost homes.
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Kapwepwe was speaking at the Affordable Housing and Development inZambiaconference

organised by the public-private partnership (PPP) unit of her ministry in the capital Lusaka.

She said that in addition to housing, complementaryinfrastructuresuch as clinics, schools and

markets will also be constructed.

Kapwepwe added that PPP investors are expected to use local skills and materials.The newspaper further reported that Secretary to the Treasury Likolo Ndalamei invited the private

sector to take advantage of the housing deficit and come up with products that will be profitable and

at the same time affordable to the general public.

Potential for low-cost housing projectsin UgandaBYJACO MARITZ| 15 JUNE 2010 AT 01:02

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Ugandasproperty sector holds considerable potential. Jaco Maritzspoke to the general manager of

Kensington Real Estate about her companys current projects and where the opportunities lie in

Ugandas property market.

An example of the four-bedroom houses of the Kensington Luxury Heights development in Kampala, Uganda.

Give us a brief overview of Kensingtons major projects in Uganda to date
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Kensington Real Estate is a key player in Ugandas real estate scene. It is an international

corporation with offices in Kampala, Dubai and London, [and] with sister concerns in Ghanaand

India. Our first development in Uganda was the Sunset View Homes. We then developed

Kensington Signature Homes comprising only eight spacious four-bedroom homes of about 250 m 2.

Kensington Luxury Heights is our current and biggest development to date with 149 houses rangingfrom two- to five-bedroom homes. We offer homes for the different stages in life, from the single

occupant to a family household. The complex will provide residents with a private lifestyle offering a

fully serviced commercial centre, recreational area, nursery school, sports facilities and a lot more.

All of these projects are situated in the capital, Kampala.

It looks as if Kensington is mainly involved in providing housing for the upper-end of the

market. Are there any plans to develop low-cost housing estates?

Our developments differ. Sunset View Homes and Kensington Signature Homes were built for the

upper-end. Our current development, Kensington Luxury Heights, situated in Kisaasi, is not

specifically designed for an exclusive class of people. Our home owners are quite diverse andanybody who has a high standard lifestyle and a dream of owning a home can do so. Yes, we do

have plans for low-cost houses in the future.

How well developed is Ugandas mortgage industry? Is it easy for Ugandans to get mortgage

facilities?

The mortgage market is still at the primary level. Given the high mortgage interest rates, it would

take a while before the market reaches a fully fledged secondary level. Property prices for both

rentals and sales are quite high, and not proportionate to salary levels. While a number of banks are

providing mortgage financing, houses on the market today are still out of reach for the majority of

Ugandans who would want to own a home.

Where are the majoropportunitiesin Ugandas property sector?

Low-cost homes. Currently most developers have targeted the middle- to upper-income bracket. The

current housing estates are located about eight kilometres out of [Kampala's] city centre. The

government needs to assist developers by constructing good roads, like the recently opened

northern bypass. Traffic jams are a discouragement for people who want to reside out of the city

centre.

With a population of about 26 million people and one city, there is definitely room for expansion.

Developing satellite towns with adequate facilities on the outskirts of Kampala will be most ideal and

also see some development in other small towns.

We have [also] seen a rise in the development of commercial buildings of international standard.

What is your message to foreign property developers looking to invest in Ugandas market?

I would advise developers to study the market, once you choose your segment then build

accordingly. Property development still has great open potential in Uganda. There is a serious

shortage of housing especially for the lower-end [of the market] although the land prices can be

prohibitive. Slowly the concept of cluster houses is being accepted. Kensington Africa Limited is one
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of the pioneers in housing estate [developments] and has been instrumental in changing the attitude

of people towards cluster living.

Upward trend in South African houseprice growth continuesBYSTAFF WRITER| 7 JUNE 2010 AT 17:11

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Middle-segment home values inSouth Africaincreased further in May 2010 according to

Absa Group Ltd., the countrys biggest mortgage lender.

The average nominal value of small, medium and large houses for which Absa approved mortgage

finance, was up by a weighted 15,2% year-on-year (y/y) in May this year, resulting in an average

house price of about R1,081,400 (US$139,000) in the middle segment.

Revised nominal price growth of 14% y/y was recorded in April.

The average real value of homes in the middle segment of the market, i.e. after adjustment for the

effect of inflation, was up by 8,8% y/y in April compared with a growth rate of 6,7% y/y in March.

Base effects have contributed to these growth trends as house prices were declining on a year-on-

year basis in all three categories of housing 12 months ago in nominal as well as in real terms.

Small houses

The average nominal value of small houses (80m-140m) posted some further strong growth of

29,2% y/y in May 2010 after rising by a revised 24,4% y/y in April. This brought the average nominal

price of homes in this category to about R843,700 ($108,000) in May. In real terms the average real

value was up by 18,7% y/y in April, after rising by 12,9% y/y in March.
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The continued strong growth in the average value of smaller and more affordable housing is

believed to be related to affordability issues. After a marked improvement in the affordability of

housing over the past two years on the back of house price and interest rate trends during this

period, housing affordability appeared to have turned around in late 2009. This is based on a slight

increase in the ratios of house prices and mortgage repayments on new loans to householddisposable income in the fourth quarter of last year, while rising propertyrates and taxes as well as

electricity and water tariff hikes are impacting on the cost and affordability of running a property.

Medium-sized houses

The average nominal value of medium-sized houses (141m-220m) increased by 9% y/y in May,

after rising by a revised 7,2% y/y in April. This brought the average price of a home in this segment

to around R998,600 ($128,000) in May.

The average real value of medium-sized houses was up by 2,3% y/y in April, after rising by 0,3% y/y

in March.

Large housesIn the category of large houses (221m-400m), the average nominal value was up by 6,4% y/y in

May, which was marginally down on the revised growth rate of 6,5% y/y registered in April. Base

effects have probably caused the May figure to be slightly lower compared with April, as year-on-

year price deflation in the large segment was slowing down rapidly between April and June last year

before price growth resumed again in July. The average nominal value of a large house was about

R1,464,900 ($188,000) in May this year. In real terms the average value of a home in the large

segment was up by 1,6% y/y in April, after rising by 0,9% y/y in March.

Consumer price inflation (CPI) dropped below 5% in April this year, with double-digit wage increases

and administered price inflation posing some upside risks to headline CPI over the medium term.

Against this background, interest rates are forecast to be kept unchanged at current levels until the

first half of 2011, when a rate hike can expected as a result of gradually rising consumer price

inflation.

After bottoming around mid-2009, house prices have picked up markedly on the back of the

economic recovery, low interest rates and banks selective relaxation of lending criteria in respect of

mortgage finance. However, year-on-year house price growth may taper off somewhat in the second

half of the year due to base effects, with house prices deflating in the first half of 2009 and price

growth resuming again on an annual basis from around August last year.

MINING

A diamond in the rough: Adding valueto Botswanas mineralsBYROMAN GRYNBERG|4 MARCH 2014 AT 16:41
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Pages: 12

Should African countries be condemned to digging holes in the ground and exporting

unprocessed oil, gold, iron and other natural resources?

Botswanas government and mining giant De Beers have agreed on two ways to add value to the countrys diamonds.

For the better part of a decade, the international community has advised African countries not to add

value to their raw minerals, a process better known as beneficiation. But most African policymakers

have refused to accept that this development model is sustainable.

The World Bank has put considerable resources and research into trying to convinceBotswananot

to beneficiate its diamonds, Zambia its copper or South Africa its gold, chromium, platinum and other

minerals. Along with the OECD, an intergovernmental think-tank based in Paris, and other

opponents of beneficiation in Africa, the World Bank offers two main alternatives.

Their first and favoured proposal is to forego forging forward linkages with the mining sector through

the beneficiation of unprocessed minerals. Instead, African countries should emulate Australia andCanada, mining-intensive economies that have developed strong backward linkages with

engineering, services and higher education.

Backward linkages are channels through which a company or an entire sector connects with its

suppliers and creates economic interdependence. Forward linkages, by contrast, are distribution

channels that connect a producer with its customers.
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The backward-linkages alternative has one serious flaw, however. Most smaller African countries do

not possess the resources or the economies of scale to cultivate the networks found in those mining

titans.

The second alternative is that countries should diversify their economic base through sovereign

wealth funds and earn high returns on their investments.Neither forward nor backward linkages will work, according to this argument. Small African

economies will never compete with mining giants when it comes to developing backward linkages,

nor with processing behemoths, such as China, when it comes to beneficiation. Globalisation has

eliminated any possibility of these mineral-based economies undergoing a traditional transformation.

Faced with these constraints, where do most African countries go? Unfortunately the answer is

neither backwards nor forwards nor outwards, but downwards. African countries are currently

making ever-deeper holes in the ground, with the extracted minerals and their monetary fruits being

used more or less prudently depending on a countrys internal political management.

The example of BotswanaBotswana, the worlds largest producer of diamonds by value, has in the past several years moved

on two fronts to reap the precious stones economic benefits. In a 2011 marketing agreement,

Botswanas government and De Beers the worlds leading diamond company, of which Botswana

is 15% owneragreed on two ways to add value to the gems.

The first was for De Beers to move its supply and sale of diamonds from its offices in London to

Gaborone, Botswanas capital, a transfer that was completed in December 2013. As a result, about

160 positions have relocated to Botswana, industry insiders estimate. Half of the new jobs have

gone to locals.

The second part of the 2011 agreement called for Botswana to supply some US$500m worth of

rough diamonds a year to local cutters and polishers, with the explicitly written expectation that this

would grow to some $800m by 2014.

About 3,400 people worked in Botswanas cutting and polishing industry in 2012, according to

President Ian Khamas state-of-the-nation address last year. These workers polished some 257,000

carats, according to Botswanas Central Statistics Office, or a little more than 1% of Botswanas

estimated 2012 production Kimberley Process of 23m carats, according to the website.

Still, the value of the exports was some $600m, making diamond cutting by far the countrys largest

industrial sector. For a small country of 2m people, such a new and non-traditional export can be

considered an overall success. Challenging questions remain, though. The first concerns the

sectors sustainability.

How Botswana is positioning itself asa major diamond hub


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BYJACO MARITZ| 7 NOVEMBER 2013 AT 15:02

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The gravity of the diamond world is shifting towards Botswana due to a new development in

which mining company De Beers is moving its sales activities to the Southern African

country.

Mokgethi Magapa, Botswana country manager for DHL Express

Diamonds account for about 30% of Botswanas GDP. Debswana a 50-50 joint venture between

De Beers and the Botswana governmentclaims to be the worlds largest diamond producer by

value. Debswanas Jwaneng open-pitmineis the worlds richest diamond mine.

Relocating diamond sales from London to Gaborone

The Diamond Trading Company (DTC) is a subsidiary of De Beers and is the companys chief gem

distribution arm. Its activities are focused on the sorting, valuing and sales of rough diamonds,

including diamond beneficiation.

In 1888, De Beers was established at South Africas world famous Kimberley diamond fields

following the merger of the mining assets held by two young entrepreneurs: Cecil Rhodes and

Barney Barnato. Within two years, De Beers had signed an agreement with a group of 10 London-

based diamond dealers to sell its entire output. From this point and for the next 120 years, London

became a global focus of De Beers sales operations.

However, this is changing. De Beers has signed an agreement with the Botswana government that

will see the DTC relocate its London-based sales activities to Botswana by the end of 2013.
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Diamonds from all De Beers mines in Botswana,Namibia,South Africaand Canada will now be

brought to Botswana. Sales to sightholdersa select group of buyers picked by De Beers to buy

rough gemswill take place in Gaborone. The worlds most influential diamond traders will fly to the

Botswana capital 10 times a year from major centres such as Antwerp, Tel Aviv and New York to

buy diamonds from De Beers,reportsBusiness Day.It is expected that over US$6bn worth of diamonds will flow through Botswana every year.

As part of the agreement, De Beers will also make rough diamonds available for sale in Botswana.

The idea is that in-country jewellery manufacturers will make use of this opportunity.

One person who is enthusiastic about the relocation of the DTC is Mokgethi Magapa, country

manager of DHL Express in Botswana. From an economic point of view this is probably the biggest

development inBotswanain a long time. It is significant to the country as more value will now be

extracted locally, and hopefully it shall have a multiplier effect on the economy.

De Beers already started with worldwide diamond aggregation in Botswana last year, which is the

first phase of the migration of all its sales activities to Botswana.The process of aggregation involves the mixing of like-for-like diamonds from De Beers global

production.

Opportunities for local companies

Magapa says there has been an influx of diamond cutting and polishing companies from countries

such as India, Israel and the US into Botswana. These companies are providing employment

opportunities for the local population. The DTC relocation in itself also comes with job opportunities.

According to Magapa, the influx of top diamond buyers to Botswana, as well as other related

businesses setting up shop in the country will create a need for numerous services, from hotels and

restaurants to telecommunications and banking.

He says Botswana is already experiencing a boost in economic activity and highlights the newly

established Diamond Technology Park property development, which plans to house companies

involved in the diamond industry, as evidence of anticipated future activity.

We are expecting an influx of foreign nationals either by way of relocations or contract employment

as well as regular sightholders who will come from time to time.

He says the full benefits of the DTC relocation will, however, only be felt in the medium to long term,

based on government programmes to ensure Botswana benefits from this development.

He says DHL itself is also poised to continue benefiting from the diamond industry. Companies

setting up operations in Botswana as well as the regular sightholders coming into Gaborone expect

a world-class service, and DHL is geared for that. DHL Express Botswana operates on the same

global standard operating procedures as its sister companies in Belgium, UK, Canada, etc and as

such will be in a position to provide world-class service. We have a good number of clients within the

diamond industry and they expect the same service that they get anywhere else in the world.
http://www.howwemadeitinafrica.com/category/countries/namibiahttp://www.howwemadeitinafrica.com/category/countries/namibiahttp://www.howwemadeitinafrica.com/category/countries/namibiahttp://www.howwemadeitinafrica.com/category/countries/south-africa/http://www.howwemadeitinafrica.com/category/countries/south-africa/http://www.howwemadeitinafrica.com/category/countries/south-africa/http://www.bdlive.co.za/africa/africanbusiness/2013/07/29/de-beers-move-will-put-gaborone-in-spotlighthttp://www.bdlive.co.za/africa/africanbusiness/2013/07/29/de-beers-move-will-put-gaborone-in-spotlighthttp://www.howwemadeitinafrica.com/category/countries/botswana/http://www.howwemadeitinafrica.com/category/countries/botswana/http://www.howwemadeitinafrica.com/category/countries/botswana/http://www.howwemadeitinafrica.com/category/countries/botswana/http://www.bdlive.co.za/africa/africanbusiness/2013/07/29/de-beers-move-will-put-gaborone-in-spotlighthttp://www.howwemadeitinafrica.com/category/countries/south-africa/http://www.howwemadeitinafrica.com/category/countries/namibia


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Driving consumer engagement inAfricaBYDEREK BOUWER| 13 OCTOBER 2014 AT 20:01

inShare27


8

The figures are well known and the sentiment even more soAfrica is enjoying significantgrowth of the middle class; GDP growth exceeds population growth, so access to disposable

income is on the rise and this is expected to grow even further as we edge towards a

working-age population of close to 1.3bn people by 2050. We also have a significant skew to

youth, with close to two-thirds of Africas population being 25 and younger.

With this, the awareness and desire for branded goods is growing. Consumer goods companies all

want a piece of the action, but the African consumer is both well-informed and extremely selective.

Selecting the right brands and products to take to market and establishing the best way for their

brands to engage with consumers will be critical to the long-term success of these consumer goods

companies.Our experience has shown us that there are four key considerations that brands and brand owners

will need to take into account in the future if they are to successfully drive consumer engagement in

Africa:

1. Keeping the promise

If a brand is a promise, brand owners need to ensure that they can deliver on that promise and

provide their customers with a consistent experience. This relates as much to how customers

experience the product as it relates to how customers experience the brand and the brand owners.

Features and benefits are table-stakes. Customers expect brand owners to deliver the right pr

business opportunities vip

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