WINTER ISSUE 2020
AfroInvestors THE FUTURE OF AFRICA
Africa: Unlocking Potentials
Info@splashworldpark.com | +234 809 774 8833
Friends,
Welcome to 2020- the start of a great decade.
I am an optimist and I totally believe that Africa could skip its current development gap and catch up with other continents in innovation, in creativity, and in all aspects of technological advancement such
AfroInvestors Editorial Team: Publisher Olutoyin Oyelade
as nanotechnology, internet of things, Archi-tech, infra-tech, sustainability, artificial intelligence, and smart infrastructure such as smart
Graphic Designer & Editor
grids, smart-house, and smart rail networks. This belief is one of the
Ife Oyelade
reasons that Afro investors partners continue to report on the strides and progress of African economies. A few people might ask, how is it possible for African countries to take their rightful place amongst the Comity of Nations? Or how can Africa position itself for advancement and to becoming the future of tech, similar to the depiction of the award-winning movie BLACK PANTHER, and Wakanda forever?
Supervising Editor Rizalyn Vale Contributors: Ade Akintayo
However, I recall to-mind the amazing words of Nelson Mandela
Olutoyin Oyelade
which says “It always seems impossible, until it’s done”. Although, it
OWIT-Toronto
seems the height of naivety to hold such lofty beliefs when you look
Justine Namara
at the state of Infrastructure development in most African states, we
H.E Souriya Otmani
at
CasaFoundation Research Team
Afro investors believe in the possibility of an advanced, digitally
engaged, and economically empowered Africa - where the innovations, inventions, agility of services, creativity of start-ups, efficiency of governments, and such like becomes the norm, the order of things, and an every-day experience.
You have heard the adage “…charity begins at home…”. This adage is often inferred to suggest that to change or improve a thing, be it a process, a system, an entity, or a nation, you must be part of it.
AfroInvestors Research Team Communications Sue Coqueiro Designers Arc Designers
While this is largely true, sometimes the changes must start from the
Sue Coqueiro
outside, for no man can truly or effectively change what they are com-
Karim Farhat
fortable with. Our comfort zones is often a thief of destiny... (Jim Collins). We must therefore Learn, unlearn, and Relearn our most treasured beliefs: (Alvin Toffler). Our belief is that if you want to change, improve, or build a sustainable economical structure, then the underlying institutions must change. The foundation set up for a 1 storey building is incapable to hold-up a 50-floor skyscraper.
The story of Africa will be incomplete without a mention of the populated African nations like Nigeria which has 20% of the continent’s population or Egypt, Sudan, and Congo. All these people will require new land, housing, water, food, power, education, and health care facilities, sewage and waste disposal, transportation, and yes, job, jobs! The population is very youthful with 43% between 0-14 years old; 53% between 15-65 years and 4% over 65 years. That young population will need a pension too.
This is the Future of Africa! Friends, in this Afroinvestors winter edition, do take a few moments to study the reports on new developments in Morocco, Nigeria, and other African Nations. Your comments are most welcome. Olutoyin Oyelade
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CONTENTS PAGE
6 PAGE AFRICANS NEED TO THINK BIG AGAIN
PAGE
12
5 Trusted Ways Women Can Get into Upper Echelons of Leadership
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18 MOROCCO: IN THE EYE OF THE WORLD
PAGE
22
RISE OF THE PHOENIX
PAGE
32
YEAR END REFLECTION FROM BUSINESS OWNERS
PAGE
36 CASAFOUNDATION IN PICTURES
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5
INFRASTRUCTURE
AFRICANS NEED TO THINK BIG AGAIN By Adekunle Akintayo
“Thirdly is the poor “Mr Corruption” and his close cousin “Ms Nepotism” who are blamed for every vice across Africa from poor health to failing crops and poor air safety standards.”
I am sure you have read that article, the one about how civilization started in Africa. The pyramids in Egypt, civilization in Ethiopia and the sophistication with which the Mahdi in Sudan resisted the British, the Songhai Empire, etc. It got me thinking, how did Africans of ages past dream big dreams but we cannot today. How come there was a train line connecting Mombasa to the Cape in the 19th century but nothing links Lagos to Johannesburg today? Whatever happened to the bridge that was supposed to connect through horn of Africa to the mid-East via Djibouti or the Trans-Sahara gas lines linking the gas fields of Nigeria, Algeria and Libya, bringing gas to Europe? Across other developing nations of Latin American and Asia, what we see is development. The tallest buildings competing for records, high speed trains, factories, shopping malls and glittering hotels. Twenty years ago, only Saudi Arabia could be reckoned with in the Gulf States. Although, the GCC countries all had Oil & Gas, they needed a vision to transform themselves. Step forward; HRH Al Nahyan of the UAE brought leadership and vision to change the UAE, Emir Al Thani quickly followed in tow. I think back to the devastation of Lebanon and efforts of then Prime Minister Hafik Hariri to re-build the “Paris of the Mid East”, Beirut.
Understanding the Problem Ask the average person on the street on why Africa is still under-developed in the 21st Century and there will be good, rational excuses provided. Slavery took the best Africans away for the best part of five centuries, then came years of colonization and the plague years of dictatorships and “big-man” African leaders. Then there is the common scapegoat called “Corruption”. However, these good excuses do not explain why Nigeria had better GNP numbers than South Korea in the late 1960s. Africans cannot really say that Malaysia, Indonesia, Thailand or Singapore had a better head start up at independence
8 | afroinvestors.com
from their colonial masters. These Asia Tigers and most
chance of a Clinton vs Bush election in the US in 2016; it is
independent African countries started on equal footing in
the ‘old boys’ network everywhere but this has not stopped
the 1960s as they rubbed shoulders at the Non-Aligned
these countries from working.
Movement conferences. What was different was that the
What am I saying? It is possible to develop in the midst
Asia Tigers had long-term planning and stuck to it whereas
of “corruption”. As far as I am concerned, corruption and
Africa nations changed one poor dictator for another on
nepotism is yet another excuse that people give for the
an ongoing basis for about 35 years.
under-development of Africa. It is not all dark and gloom
I have deciphered that the first problem militating against African development is a lack of long term goals, a defining
Yet it is not all darkness and gloom. I am quoting copiously
vision. Dubai has set up to be a global aviation hub, tour-
from Mehdi Hasan of Al-Jezeera here: On gender equity
ism destination and financial centre. Qatar is the leading
Africa is doing great. Rwanda has the highest proportion of
producer of LNG gas supplying liquefied gas to the ener-
female parliamentarians in the world; purportedly 64% of
gy-hungry markets of Japan, China, India and South Korea.
the legislators are women. There have been 7 female pres-
African nations have no such dreams or at least refuse to
idents across the continent in the last 5 years and a strong
articulate such a dream.
female Vice president in Zimbabwe while Nigeria recently
Richard Branson’s efforts to make Lagos an aviation hub
appointed 3 women to head some of their largest banks.
between Europe and America failed. Nigeria was the larg-
The GDP ratios are also very good, it is said that four (4)
est producer of LNG at some point, with the NLNG plant
of the ten (10) fastest growing economies in the world are
at Bonny in the Niger Delta supplying 10% of global output
African economies, that one (1) of three (3) Africans are
as recently as 2003/4. Since then, both Qatar at 80MTPA
middle class. It is also one of the fastest growing markets
and Australia at 81MTPA have overtaken Nigeria who still
for telecoms and mobile telephony.
produces at a capacity of 30MTPA it had achieved almost
Contrary to general perception, Western aid represents
20 years ago.
only 2% of GDP across Africa whereas African in Diaspora
Closely associated to lack of vision is a short-termism that
sent in a whopping $52billion back home in 2014.
is unparalleled across the globe. They use to say “…and Asians can’t play football”. Then came the J-league with a
Forward Plans
100-year plan to revamp football in Japan. In less than 20
Thus, the building blocks are already in place to move the
years, they had achieved their goals. South Korea’s three
Nations of Africa forward. I ask myself often, what will it
ship builders, HHI, SHI and DSME were conceived in the
cost to build a decent train service direct from Lagos to
1970s to compete with European and American builders in
Port Harcourt, $2 billion? Well a minister in Nigeria was
20 years. These Korean companies have now obliterated
said to have stolen or misappropriated $6 billion. A train
the competition.
from Lagos to Port Harcourt will pay for itself in a year in
Most African nations used to have the 5-year develop-
revenues generated and in life-saving of one of the most
ment plans; these 5-year plans were discarded in the early
dangerous motoring routes in the world.
1980s because they were inadequate but the plans were
Think bigger, how about linking Lagos to Johannesburg, the
not replaced by anything at all. We replaced “the inade-
2 largest economies in Sub-Saharan Africa. Business can
quate” with “the NOTHING”.
open between Lagos, Luanda, Libreville, Lusaka and Johannesburg. Such a train service can be built in stages and by
Thirdly is the poor “Mr Corruption” and his close cousin
concession to private businesses in each country along the
“Ms Nepotism” who are blamed for every vice across Af-
line. This line can bring Oil from Nigeria, Equatorial Guinea,
rica from poor health to failing crops and poor air safety
Cabinda, Angola & the Congos to the huge market of South
standards. I dare say that Africans are not any more cor-
Africa. It can bring all the minerals of Congo to the various
rupt than other people. There is huge corruption in China,
markets and take Copper from Zambia up north to Nige-
in Brazil, in Russia and in India, yet we celebrate the BRICS.
ria. Manufacturers between these countries can source
Nepotism is very strong amongst the Korea Chaebol com-
raw materials amongst themselves but most importantly,
panies, Saudi, UAE and Qatar royal establishments. All
food shortages, shortage of workers and immigration can
British Prime Ministers are said to have graduated from
be solved in one single move.
Oxford except one, who went to Cambridge while almost
How about a simple flight service between Dakar and
all French leaders and captains of industries graduated
Lagos? There are no direct flights between the 2 biggest
from the Ecole de Polytechnic de Paris and there is a good
economies in West Africa. Why do I need to go to Paris first
afroinvestors.com |
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Contrary to general perception, Western aid represents only 2% of GDP across Africa whereas African in Diaspora sent in a whopping $52billion back home in 2014. rather than go directly to Dakar from Lagos or Accra?
About The Author:
No other people can help African right their history. The
Ade holds an MBA from Manchester Business School, an
Arabs, Asians, Latin Americans took their destinies in their
M.Sc. in Mechatronics, Kings College, London, and a B.Eng.
hands and re-wrote their stories. Today, the leading air-
in Mechanical Engineering from University of Lagos. He was
lines are in the Middle-east, the biggest heavy industries
part of the team that executed the Gordon LNG A$50b project
in Japan and Korea, the Asian Tigers revamped their econ-
in Western Australia gathering even greater experience in
omies. African nations similarly need bold ideas again in
procurements, contracts and supply chain management. He
health, education, military, agriculture, industrialization,
joined Global E&P company total Upstream (TUPNI) for the
transport and logistics among other endeavours of life.
Egina Project offshore West Africa and is now at Total, South Korea where he holds package management responsibilities for
Think Africa, think big again!
LLI and Engineering functions.
The Culbeat Foundation for Social Development Celebrating ordinary but exemplary Nigerians at
Reward Nigeria
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11
LEADERSHIP
The journey of leadership began from an era when wom-
Please tell us about yourself- vis-Ă -vis your cultural,
en were either absent or invisible in leadership positions
social and educational background.
to this time where a change in the demographic, following various calls for gender diversity, is sweeping through gov-
My name is Olutoyin Oyelade. I am a Nigerian-Canadian
ernments and conglomerates across the globe. However,
with a birthday of 15th of January. I am the 2nd of five
women still face the biggest barrier of getting into higher
children, married to Olusola Oyelade, and we are blessed
echelons of private and public sectors. In the same vein,
with three young Entrepreneurs. I have garnered 25 years
those women who strive to get to that upper chamber of
cognate experience from vertical industry sectors includ-
leadership are most times whisked out before the expira-
ing banking and finance, real estate management, private
tion of their tenure.
equity, and non-profit management.
In an exclusive interview with AfroInvestors Magazine re-
I obtained my first Bachelors degree at the age of 19 in
search team, Dr Olutoyin Oyelade, Founding Partner/CEO
Philosophy from Ondo State University, Ado Ekiti, Nigeria.
of InVcap, an African-focused private equity firm in Nige-
In 1999, I received an MBA from Nigeria’s University of Ife
ria and Canada, highlighted and disccussed 5 practicable
(now Obafemi Awolowo University). This academic back-
ways women can break through diverse barriers to get into
ground, in addition to the various management trainings I
upper echelons of leadership.
had received in my career journey marked my career path, facilitated my career progression, and led to the develop-
12 | afroinvestors.com
5 TRUSTED WAYS WOMEN CAN GET INTO UPPER ECHELONS OF LEADERSHIP By Olutoyin Oyelade
ment of a team of dynamic managers that worked with me.
I followed my dream to research into female advancement
These professionals were trained to serve clients, redesign
issues. To this end, I enrolled for a Doctoral degree in Man-
processes, policies, and practices across the various indus-
agement (with focus on Leadership) in 2012. By 2016, I had
try sectors where I had gained some experience. As my
graduated as a Doctor of Management (D.MGT) from the
team grew, it became imperative to retrain and get more
University of Maryland, University College, Maryland, USA.
skills in my industry.
You have a track record in Africa’s Investment sector which spans over 25 years’ experience.
I embarked on a self-development program, which culminated in a series of training, from 2005 – 2008. Of par-
Kindly tell us about your career journey and some of
ticular note was my enrolment for executive education
your accomplishments and successes.
programs based on the support of my former employers Intercontinental Bank. In 2005, I completed a Senior
I started a career in Banking in 1992 with the Nigerian In-
Management program at Lagos Business School; in 2006
tercontinental Merchant Bank (NIMBL) – Nigeria. At vari-
I completed my Business marketing program at IMD, Lau-
ous times I worked in client services, treasury operations,
sanne, in Geneva; and in 2008 I graduated from Wharton
finance and administration, and investment management
School’s (USA) advanced management program. These ex-
services. The Bank later became Intercontinental Bank
ecutive studies launched the start of new ideas in my ca-
Group (IBG, now merged with Access Bank). I was trained
reer path. Following a successful career in Banking in 2010,
under the guidance of some of the most qualified and
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13
skilled professionals in the industry and as you can imagine, I learnt a great deal, and soon progressed to become the Head of Treasury in 2002. I am really thankful to God for the experience and opportunity. By 2005, I became the Group Treasurer for the Group. As Group Treasurer, I had responsibility for Funds, Treasury, and Marketing for the Group covering the bank’s 12 Regional Treasury subsidiaries in Nigeria, London, and Ghana. As Group Treasurer at IBG I was part of the team that successfully raised $1.3bn in debts and equity from the global markets to prepare for IBG’s local and international expansion back then. I later became Group Head of Investment Banking with responsibility for treasury and investment management portfolio of $8bn. Shortly after this, the Bank was appointed as one of the indigenous Banks to manage Nigeria’s foreign reserves. On account of this, I was seconded to train with BNP Paribas, Paris and London. As a management intern with BNP Paribas, I gained more understanding of investment management and asset trading and got an opportunity to interact with the global financial markets, the players and their sectors. (These opportunities prepared me to start the Friends of Africa, Summit in 2011 and InVcap, the Investment firm in 2013). Between 2005 and 2009, I was a member of the National Executive Committee of the Money Market Association, an organization responsible for supervision, certification, and regulation of Treasury dealers in the Nigerian markets. Although, I actively operate in the international Markets as a member of Emerging Markets Investors Association (EMIA), I monitor developments in the local markets and remain a senior member of the Chartered Institute of Bankers in Nigeria. Some of my Key accomplishments incudes: InVcap Managers launched in 2013; In 2016 InVcap recorded its first major investment deal, SplashWorldpark.com Waterparks, Ikogosi, Nigeria—reputed to be the first full Waterparks in the West African Region. The first Phase of the project has been completed and opened in 2016; In 2017, InVcap recorded its 2nd Investment deal, EntrepreneursPoint.com, the Newest Co-working and executive business offices. Entrepreneurs Point offers private offices, virtual services, Business Membership, Training and Events to local and international clients. The centre is located in Toronto, Canada; In 2017, I released the Book- Advancing Beyond the Ceiling following my doctoral research into women’s advancement journey and based on my career experiences in the corporate sector. The Book is available
The fragile economic recovery was predicated on rising commodity prices, boost in oil production and oil policy reforms. However, the policy re-
on Olutoyinoyelade.com
forms scarcely addressed
In the non-profit sector, you serve with the African Expert Network, and
the perennial cases of
charity boards, such as Culbeat Foundation, Friends of Africa, and Casa Foundation, which are all efforts towards fostering economic growth and sustainability in Nigeria, and Africa at large. Please share with us some of the success story in this regard. I founded Casa Foundation in 2011 as a social impact organisation to meet the needs of youths, women and Children in underserved communities and in line with our commitment to support the basic tenets
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shortages in fuel, power, and energy.
of the UN sponsored sustainable development goals (SDGs) contribute. We focus on providing support in the area of healthcare, immigrant training, and education to women, emerging leaders, and Youths. Our Partners at InVcap have continued to support our non-profit initiatives as it closely aligns with our Impact investment objectives. We serve with the African Expert Network because of its focus to provide expertise, advisory, and services that could facilitate the required deal flow for Africa to thrive. Some of the Key accomplishments are as follows: •
Casa Foundation sponsors Casa Scholarship for International
students in Canada. Our group of Entrepreneur mentors have actively taught Entrepreneurship to 7 Cohorts over the last 2 years through the Entrepreneur EXChange program. •
Our Friends of Africa platform (an economic development
summit) has hosted senior public and private sector officials to actively engage with stakeholders in the economy including CEOs, Ministers, Governors, and Parliamentarians from West Africa and Canada in the last 7 years. The Summit has produced several business and economic initiatives, including new businesses Launched and Project executed in Africa. FOA continues to issue recommendations to participating governments on additional resources and initiatives on their developmental agenda to impact prosperity of African Nations. •
The annual Friends of Africa Summit has received a letter of
Commendation from the Premier and Government of Ontario, Canada as an initiative of great Impact for Africa’s Development. The World Bank forecasts that economic growth in Nigeria would edge up to at least 2.5 per cent in 2018, from the estimated 0.8% growth recorded in 2017. What is your take on this? The World Bank projection is a welcome development particularly to buoy investors’ confidence following the news of a recession. Recall that some investors were alarmed by the sudden declaration of a recession after two decades of economic stability and major investments from the private and Investment sector in Nigeria. As you can imagine, the slowdown ground most meaningful investments activities to a halt and the moderate economic recovery expected in 2017 did very little to boost investment confidence as new investors cautiously explored the Nigerian opportunity. This is particularly so because the fragile economic recovery was predicated on rising commodity prices, boost in oil production and oil policy reforms. However, the policy reforms scarcely addressed the perennial cases of shortages in fuel, power, and energy. Moreover, the FOREX challenge remains—its availability, stability, and flow. For World Bank’s projection of 2.5% growth to become real in Nigeria, I would expect the Experts in charge of the Treasury to effectively implement, monitor, and manage, policy reforms, and introduce measures to buoy confidence in Naira by increase FOREX availability, stability, and consistency of supply etc. These managers will do well to mitigate potential risks to structural reforms, stability of FOREX rates, while creating additional functional and
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15
reliable agencies to monitor, address, and limit other possible downside risks to the economy. Despite the entry of women into leadership across all climes, women still face the challenge of getting into higher echelons of leadership in private and public sectors; while those women who have risen to that level of leadership are most times whisked out before the expiration of their tenure. Please share with us, some of your experiences in breaking through these diverse barriers. I follow many principles and have some values and virtues. I will share a few… Get over-Qualified: First, women need to get a good set of Qualifications. The simple truth is that, If you are going to get noticed you need to do a lot more than the dominant players. If out of a 100%, we hold a measly 4.2% CEO positions, then how can we stand out from the crowd? I found that a small percentage of women might not require too many qualifications to become rich, or get to certain C- suite levels or other positions in life by virtue of birth, heritage, marriage, location, or affiliations etc. Despite these privileged few, the number of top Women bosses remains 4.2% in F500s, and perhaps less than 35% of women lead on Boards, non-profits, and in Governments. It therefore becomes imperative that women gain all the possible advantages that qualifications, skills, competencies, kindness, professionalism, and mental capacity can offer to reach their careers goals. In my career, I was only required to hold a Bachelors degree; I went ahead to get an MBA. I later attended the best 3 Business Schools in the 3 continents where I worked– Lagos Business School, IMD Lausanne- Geneva and Wharton, USA. Again, don’t get me wrong. Women don’t need to go overboard with paper certificates or the best schools, but they may get as many as possible, if the opportunity exists, to break free from the crowds. I tell ladies everywhere I go—whatever it takes stand out, dare to be different, get the best credentials. Its hard work but it might help in the journey of life. Be Diligent and Skilled: I was never a 9-5pm person. You would certainly find me at work 2-3 hours after others had left—and I was really working (even as a mid-level officer). It never mattered that a boss was there or not- I just had to be there to finish up the day’s work and get ready for the next day.
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It was my training (I earned some names including Thatcher). I learnt as much as possible on the job and this helped me to be more effective. I did not know that my bosses noticed this until I got transferred to lead different units. I must have led a dozen different units and this helped me to hone my skills in different departments from Operation, to Treasury, Administration, to Marketing, Investments, Branch management, Events Planning etc. I led these teams and was either head of one committee or the other planning events for large groups of clients. In one of the organizations, we had almost a million clients and almost 20k workforce). It was a great number to learn life lessons and management from. Moreover, diligence is the hallmark of successful leaders and when combined with the right skills, it becomes a virtue that could prepare one to shoulder greater responsibilities that could never be imagined in the future. Diligence can also be very rewarding. For instance, I do remember that my previous organization trained her staff abroad based on performance. I was privileged to get a lot of training opportunities because of this policy. Resilience: Women need to be resilient and never give up on their God given dreams–no matter the challenges, adversity, reproach, relegating strategies, burdens, and innuendoes they face at work. Purpose and Passion: Women must first find their Purpose, and then pursue it with passion. It is difficult to find fulfilment at what you are not passionate about. Your purpose will ignite your passion and attract resources (partners, mentors, sponsors) to you— your resources will attract brutal Adversities to you, but you will Keep Winning If you Faint not in adversity. Values and Principles: These might vary but must be well aligned. As discerning leader I try to define and keep refining these principles. I try to maintain the values I uphold and tick off the list from time to time to self-check…Women leaders need to constantly ask some burning questions. • Methods: What are my methods? What am I known for? What would I never do? What Style, standards, and principles do I maintain? • Mentorship: Who DO I really lead? Who Leads ME? Who checks me? • Accountability: Who Am I Accountable to? 1 person, 2 or a group?
to help people like us- who had no hope. I finally earned • Management: What is my Style? How do I manage
and graduated from a Doctorate degree within 3 years (be-
people? By standards, by processes, by favouritism, by
tween 2012-2016) by following some of these principles. I
loyalty? Or by emotions?
have become an Investor and a serial Entrepreneur in the last few years of starting an Investment firm with my Part-
• Actions: What do I say/ do when certain people are
ners in a new Country.
there or not there? • Friends: Which type of people do I attract? A+, B+, C+, D+? A combination or one category? What benefits do they bring? • Impact: How do I harness the gifts within the groups above to help? • Growth: How can I learn, unlearn, and relearn from more successful and knowledgeable people? How do l earn their respect? • Adversity: How do I maintain my composure outside my comfort zone? About The Author:
• Mentorship: True values of great leaders emerge from constantly self-checking, questioning actions,
Olutoyin is the Founding Partner/CEO at InVcap Corpora-
emotions, and decisions. I learnt to answer these set
tion-An Investment advisory firm with partners in Nigeria and
of questions as I was raised. My mother was a great in-
Canada. InVcap recently completed an
fluence on me and imbued in us great principles of life.
deal- in Nigeria- Phase 1 of SplashWorld- a WaterPark, locat-
My siblings are very supportive and I learn a lot from
ed at Ikogosi Ekiti, Southwest Nigeria. InVcap is Lead Inves-
my mentors and leaders th at I have studied and ben-
tor at EntrepreneursPoint-a Co-work Incubator in Canada.
Investment Advisory
efited from over the years. I believe that these support eco systems are a great way to grow, learn life lessons and make significant progress in the rough journey that life could sometimes bring. Be Thankful: I am very thankful to God for His many graces. I have had to deal with serious issues, situations, and people but God, my Father, has always sent help to me somehow, somewhere, and He continues
afroinvestors.com |
17
COUNTRY DEVELOPMENT
MORROCO:
IN THE EYE 0F THE WORLD By H.E Souriya Otmani
A Visionary King and Great Strategist, The King Mohammed VI’, upon the accession to the throne, since 1999, drew up a roadmap for the country’sdevelopment, focusing on Strengthening the competitiveness and attractiveness of the national economy. In thisrespect, the MoroccanGovernment has prioritizedeconomic diversification and the development of traderelationships, alongsidean accelerated process of political, economic and social reforms. So far, the reforms have yielded good results and as a testament to the country’s economic potential, several multinational companies have moved all or part of their production to Morocco. In 2012, Renault opened the biggest car factory in North Africa, in the region of Tangier, producing cars for emerging markets;PSA Peugeot Citroen’s followed the path with an investment of USD 615 million, making Morocco the leading car manufacturer in Africa and a key supplier for European auto factories. Other international corporations including Bombardier, Boeing, Airbus, Delphi, Dell, GDF Suez etc…have followed suit and undertaken major investments in Morocco. Reasons for this include low cost of production, qualification of HR, banking benefits encouraging companies to do business in Morocco, including a relaxation of the strict convertibility regime of the Dirham for foreign investors,low tax rates and additional incentives, such as 0% tax for the first five years of operation, big reductions on VAT and customs duties, an access to a market of nearly 1 billion consumers thanks to free trade agreements (FTAs) with the European Union, USA, Turkey, etc., and a business climate that is continuously improving as the government aims to make investment even easier. Furthermore, the World Bank’s latest “Doing Business 2020” report on the business climate ranks Morocco 53th out of 190 countries in the world. Last but not least, Morocco is also known for its transport infrastructure that is rated the best in Africa by the World Economic Forum, which includes world class roads, airports, ,and the Moroccan high-speed railway, first of its kind in Africa. In addition to its port facilities in Casablanca, Morocco boasts a world-class facility, Tangier Med Port,which is still being expanded. The second and final phase of this mega-hub‘’Tangier-Med 2’’ has opened in June 2019, becoming the largest transshipment hub in the Mediterranean and Africa and one of the 20 largest ports in the world, with the ability to handle up to 9 million containers. The port currently has links to nearly 186 ports in the world in 77 countries, it now ranks 17th in the United Nations Conference on Trade and Development (UNCTAD) shipping connectivity index.
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On the level of trade and investment-facilitating measures, Morocco has a new one-stop-shop for investors and exporters: The Moroccan Investment and Export Development Agency (AMDIE), which is responsible for promoting national and foreign investment, as well as the export of goods and services, and is committed to supporting all economic actors throughout their projects’life cycle. One last thing to remember is that Morocco has initiated a diversification strategy targeted at developing high added value sectorssuch as the automotive and aeronautical sectors. As part of this initiative Morocco has integrated industrial platforms (P2I) providing accesses to infrastructure likethe Nouaceur industrial zone on the outskirts of Casablanca. This is basically a free-trade zone for the purpose of facilitating the establishment of new businesses by offering a preferred taxation framework, not to mention a great number of adapted services. That is how Bombardier Aerospace took full advantage of this status. Renewableenergyisalso one of the key sectors that have been prioritized for foreign investment. Morocco is currently one of the fastest growing renewable energy markets in Africa as the country has launched one of the world’s largest and most ambitious solar energy plan with investment US$9 billion by 2020. By 2030, Morocco aims to be generating 52% of its electricity from renewable energy, mainly solar, wind and hydroelectric power. In this field, Morocco has buildNoor Concentrated Solar Power (CSP) Plant, the largest solar complex of its kind in the world. The economic and trade relations between Morocco and Canada have seen steady rise and today many Canadian corporations have established successful business in Morocco. However, I believe that the current volume of trade- which totaled over 896 $CAD million in 2018 does not reflect our two countries’ real potential as trade partners. Morocco mostly imports cereals, fertilizers, machinery and mechanical appliances from Canada while exporting citrus fruits and nuts, fertilizers, articles of apparel and clothing accessories and seafood. The Kingdom of Morocco welcomes the Canadian private sector to take advantage of the investment and trade opportunities in Morocco and benefit from the facilitating measures adopted by the Government, bearing in mind that Morocco can be Canada’s getaway into Africa, where Moroccan companies and businessmen are already playing a leading role. I sincerely think that my country offers a platform for Canadian businesses willing to expand in Africa, and we offer a stable place to do business, especially as Morocco’s largest city, Casablanca, is increasingly recognized as an important African Financial center.In fact, Casablanca Finance City, which was officially launched in December 2010 as a financial and economic hub, from which to drive investment into Africa, ranks since 2015 first in Africa in terms of the competitiveness index for financial hubs.
About The Author: H.E Souriya Otmani is Ambassador of His Majesty the King of Morocco and graduated from the Faculty of Law at the University of Muhammed V. in Rabat. She worked for the Department of School Education and for the Department of Foreign Affairs and Cooperation. She then became a head of the Organization for the Integration of Women in Development. She the Vice President of African Diplomatic Women Forum and a recipient of many National Awards..
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FINANCE & ECONOMY
RISE OF THE PHOENIX By Olutoyin Oyelade
Africa is rising again. Descried as the last big emerging market with a compound 6% annual economic growth rate, from oil sands, to pyramids, mineral deposits and gold mines, the gaps that stalled Africa’s integration into the larger comity of nations are now closing. Whether its seen as a country or continent, the story of Africa is no longer about the aids received but its growing rate of successful infrastructure investments facilitated by Private sector partnerships. Increasing government reforms across the top 10 reformist nations that contribute 76% of its GDP (including South Africa, Nigeria, Ghana, Egypt, Angola), now mark the face of Africa. The states that contribute to this positive index and an enabling environment created by increasing capital inflows of $84b p.a (excludes remittances, aids), reducing inflation, and a rising young population are some of the growth drivers in the continent. Reducing rate of conflicts across the region has also engendered confidence for business continuity. How did Africa get here? It is no longer news that opportunities have developed wings. The big returns are no longer where we used to find them. The predicted global market recovery has failed to rally the markets, returns are not the way they used to be in the developed world and the truth is the BRICs are no longer at ease. As the cheese thins out, so is the shine lost to the new kids on the block-the N-11 countries. Amongst the Next 11 are the earlier listed
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reformist African nations, growing at an annual 3% average, single digit inflation, reducing conflicts and employing labor. Most now outpace some developed and BRIC nations on the Emerging market index. The “Doing-Business-Index (see Table in Appendix) was developed by the World Bank and the IFC based on the factors including: Ease of obtaining credit, length of time to register a business or to close a business down, level of protection for investors, how enforceable are contracts, payment of taxes etc. The index is telling as it describes the level of red tape that an investor may encounter in each country. 2009 report show South Africa and Nigeria in the lead the economic index with a PPP (purchasing power parity) of $524b and $378 respectively. Nigeria leads in terms of potential market size but South Africa and Botswana lead on the business environment argument, “Doing-business-index”. Africa’s low facility density is by itself the opportunities that discerning investors have explored for growth over the years. Many investors find a veritable source of investment opportunity in telecoms, roads, housing development, and transport sectors and have reaped good returns therefrom. The UNCTAD (2011) reports that average returns on FDIs into Africa peaked at 29% since early 2000 and can only improve. For instance internet density is put at less than 1 in 10 or 80-1000, rail network density at 50/1000 when compared to 200/1000 in Europe, power costs at $0.14cent per/kwh (about $5cents in US), mobile telephony at $12 per month when compared to $8 in other developed nations and a road network density of 50/million (except in SA and Botswana that boasts of 400/mille). Europe for instance enjoys a road density of 200-1000. Less than 40% of the continent’s population has access to electricity; about a third of the rural population has access to all season roads (AfDB, 2012). As a result of these gaps, most African markets remain highly unregulated with pricing disparity across sectors. You are likely to see an IBIS hotel charge $200-$250 in places like Lagos, Nigeria while a night stay at Radisson could range between $400-$600 when compared to the $40-$100 in developed countries. In the financial markets, the recent loss in value of major stock markets worldwide has led HNIs (high net worth individuals) and institutional investors’ to turn their focus back to PEs. This change is driven by the potentially significant returns and the agility with which private funds sniff out the deals. With a good turn around time, the value addition is clear. With the current slide in returns in developed markets EMs (emerging markets) such as Africa represent a viable market for economic rent
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“ My heart is a part of the decision making process, but i have given myself freedom to lead from the heart”
A previous trend of stifled growth and low facility density is now paving way for developmental opportunities for relevance in a globally depreciating economy. particularly in locations where the risks can be successfully managed. A previous trend of stifled growth and low facility density is now paving way for developmental opportunities for relevance in a globally depreciating economy. Although its relatively low infrastructure points to the existence of untapped productive potential, synergies between DFIs, investors and private sector participants are finding ways to unlock Africa’s developmental potential through scaling up investments in high growth sectors of real estate, telecoms, energy, and finance. It is evident that Africa can no longer ignore the central role of infrastructure in creating competitive advantages and, other avenues for global integration and trade. The potential value addition of human development and improved social amenities and better productivity outcomes that improved infrastructure promises, will no doubt support the continent’s efforts to attain increased economic growth.
The question is ‘where are the opportunities in Africa’? And Who is on the Boat? Africans economies are looking to restructure and a robust private sector is developing in many of these economies. Family-run Companies are increasingly looking at inviting institutional investors, venture capitalists, and private equity funds to become shareholders given the challenges that many of these family-run businesses have in raising capital
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through debts.
road project (9 highways of 56,683km), being developed by
Similarly, governments across the continent are be-
a collaboration of the AfDB, AU and UNECA (United nations
ginning to realize the potential of the private sector in
Economic Commission on Africa), is another.
increasing the Country’s tax (revenue) base. These gov-
In energy, Angola and Uganda’s emergency Power Solution
ernments now view institutional investors as long - term
that targeted 1,000 megawatts within its first phase relying
investors who bring professionalism and accountability
on emergency power plants, which later evolved into IPPs
coupled with the ability to expand market opportunities
(independent Power projects) demonstrates some efforts to
through the use of their marketing networks, they are
address these deficits. With an Infrastructure development
therefore more acceptable than large multi-national cor-
fund from China Development bank, Angola seems to be
porations who are encumbered in some of these coun-
leading the cohort of African nations in developing the en-
tries by reputations of exploitation. These challenges are
ergy, real estate and industrial sectors. Recently, IFC (2013)
not unmitigatable with a top-down approach to invest-
announced an investment of $1.5 b in Nigeria’s power infra-
ment, and several investors who have taken a plunge
structure and is working on the Energy Business Plan with
have some impressive successful stories.
the government to address the epileptic power supply in Africa’s most populous nation.
In telecoms, there is Airtel from the Middle East, MTN and Econet from South Africa who took a bet on the Nigeria
But China particularly appears to maximize investments op-
and West Africa mobile-phony markets since 2000.
portunities in Africa. It investments have increased in recent
In the food chain is Shoprite, Nandos from Africa; KFC and Dominos from the United States; spreading across Africa. Hotel franchises such as the Protea of South Africa, Radisson, Intercontinental, IBIS and Holiday Inn chains are settling for a bigger share of the local markets in most regions of Africa. In roads: private sector participation is fast increasing. Before 1999, private investments in roads was about USD1.4 billion, this has been scaled up to about $25b through PPPs (public and private partnerships) and direct investment initiatives of DFIs. The Lekki- Epe toll-road in Lagos, Nigeria is one of such projects put at about $400. The Trans-African corridor, a network of transcontinental
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years, rising from only USD 1 billion in 2001 to about USD 7.5 billion in 2006 (AfDB, 2010). A total of 35 African countries have particularly benefited, with about 16% of the resources flowing into infrastructure. Average allocations of these flows over the 2001 - 2007 period show that the electricity and transport sub-sectors have benefited most (Figure 7 & 8). “It is also noted that the largest recipients of Chinese FDI into African infrastructure are Nigeria, Angola, Sudan and Ethiopia. China has also invested in the transport sub-sector in Nigeria, Gabon and Mauritania” (World Bank, 2009). These companies, supported by various investment vehicles have latched on to the “good wind’ blowing into Africa. They are not only on ground leveraging opportunities for robust returns; they are impacting lives by creating employment and developing basic amenities to change the face of Africa. Their significant revenues have in more cases than one, transformed their organizations from continental players to global brands now represented across other continents of Africa, Asia and the Middle East. Doing Business In Africa It is no longer in doubt that Africa is now seeking partners to turn its lack of capacity and deficient infrastructure to catapult and re-invent itself as giant of reckon through its reformist programs across diverse sectors. In pursuit of a sustainable development agenda, PEs, DFIs and other Institutions appear to have benefitted from their leap of faith drawing from
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the positive investment testimonials. They await others to join and learn from their progenitors. The ultimate goal is to fast track the infrastructure development process and provide sustainable small and medium businesses that create employment for the young population of Africa currently … but estimated at 42% of the world in the next 25 years (World Bank, 2012). Africa should not only industrialize its continent, but also position itself as a viable destination for future economic investments by private Institutions, and improve its positive index/credibility as a “first choice” PE continent. Given the very high growth rate of these economies and its immense potential opportunities, it can no longer be ignored by private funding sources. African governments are now pursuing the same agenda of private financing and new partnerships to increase their tax benefits and to scale up financing from various sources to close its facility deficit on a sustainable basis. The inadequacy of public funds to support Africa’s infrastructure gap, currently put at an annual $93b till year 2020 (AfDB, 2010), is daunting. However, the case studies of the few countries that have initiated some policy action to address these challenges indicate a light at the end of the tunnel.
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AfroInve
THE FUTURE OF
Connecting Businesses to Investment Opportunities. Distribution: 62% Financial Services Professionals; 23% Global Business Decision Makers; 15% Investors in Emerging Markets who are active High Net Worth investors, working in Global Markets. 64% of our Readers have invested for at least 10 years. Download a free copy at AfroInvestors.com; View copies at Embassies and Chambers of Commerce in Canada, Ghana and Nigeria.
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INTERNATIONAL DEVELOPMENT
ORGANIZATION OF WOMEN IN INTERNATIONAL TRADE (OWIT): REFLECTION FROM BUSINESS OWNERS By Jusine JustineNamara Namara
OWIT-Toronto celebrated the end of 2019 in December with a festive networking and holiday reception hosted by Bennett Jones. This inspiring event provided the platform for OWIT-Toronto members, key stakeholders and decision makers in international trade to network and celebrate all things trade. Three successful women exporters had podium time to shine a light on their journey in building their businesses, accessing and expanding into global markets. The session was moderated by OWIT-Toronto Board Member, Aylin Lusi. Myra Sable, President of Sable and Rosenfield and recipient of OWIT-Toronto’s Woman Exporter of the Year award (2019), kicked off the discussion, explaining how her 50-year food business was founded in her kitchen while she worked as a part-time restaurant reviewer in Toronto. She highlighted her incredible journey from St. Lawrence Market to getting a business plan, and to her first scoping mission to Europe, in Paris and Brussels, where she collected various samples of beautifully packaged and designed gourmet products for inspiration. Initially, starting with a home recipe for Russian Mustard, which sold out in six weeks, she meticulously grew the product line into what it is today, specializing in gourmet appetizers and condiments, sauces and cocktail garnishes.
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Kathy Smith, VP Operations of Sable and Rosenfield, com-
2020. Toronto Business Development Centre (TBDC)’s
plemented Myra’s story and elaborated on the niche mar-
Neha Bahl announced plans to provide a customized free
kets that they had targeted which required making differ-
one-day advisory event for OWIT-Toronto members look-
ent unique gourmet product lines, for instance, no alcohol
ing to build and scale new businesses and network with
ingredients for the Dubai market. She also highlighted
TBDC’s international clients that are part of the Start-up
some of the challenges faced along their entrepreneuri-
Visa program, TBDC’s mentors, national and international
al journey including supplier delays, buyer challenges and
trade partners.
logistical issues. On addressing challenges like language
To crown off the evening, OWIT-Toronto President Helen
barriers, Myra recalled how she turned this into an opportunity to learn a new language - French - to be able to fully expand her business in France and Brussels. Giving examples of their San Francisco and New York food show experiences, she also noted the importance of trade shows which helped to identify what retailers were seeking. If the packaging was appealing to the buyers, they would buy the products on site and order more. She also said that the ‘Made in Canada’ label was a key marketing tool as it stood for authenticity. Barb Wilmer, Director of Sales for Racer Machinery International, shared glimpses of her experiences in Cuba as a young girl, through to moving to Canada as an immigrant at an early age, studying and working to finally achieving top salesperson award in the steel industry in Canada. Her snippets of wisdom in becoming a successful steel industry entrepreneur included staying up to date with the latest technology, keeping in communication loops, networking and having strong perseverance. She noted the turbulent times that have rocked the steel industry with the initiation of the US steel and aluminum tariffs that caused an increase in the cost of raw materials and big reservations on spending, greatly impacting the industry. She welcomed the news of the conclusion of the re-negotiated NAFTA.
Hemmingsen recognized Susan Baka, one of OWIT-Toronto’s founders. As a Board Member, a true OWIT-Toronto and OWIT-International champion, Susan has been instrumental in pioneering women in international trade both in Canada and abroad for over 20 years. It was an evening of festive celebrations, celebrating the trailblazing women in international trade, their great achievements, and the unique platform that brings all these women at the table to support each other and share many lessons learned along the way. To spice it up further, Sable and Rosenfeld provided a token memento for everyone to taste and remember the occasion. A wide selection of beautiful jars of gourmet products from cocktail garnishes, appetizers, condiments and sauces, many of which were all-natural, Non-GMO certified, gluten free and Kosher, were provided to the participants to take home to appreciate a truly made in Canada experience. The evening event was preceded by OWIT-Toronto 20th Annual General Meeting (AGM) marking the end of the year and a 20-year operational period. The 2020 OWIT-Toronto Board was reconstituted, with Board directors reelected and new directors coming on board forming a quorum.
Barb also recommended participating in trade missions. She joined OWIT-Toronto’s trade mission in February 2019 to Monterrey, Mexico which provided her with a variety of networking opportunities and connections to different businesses. She subsequently took an independent follow-up business trip to Monterrey in September 2019 to continue the business engagements. Her ability to communicate fluently in Spanish is key in facilitating doing business in Mexico. The evening included brief presentations by OWIT-Toronto partners including EntrepreneursPoint’s Olutoyin Oyelade who announced that their women entrepreneurship incubator development program is available to OWIT-Toronto members at a 10% discount. World Trade Center Trade Accelerator Program’s Frances Guo invited members who meet the criteria to a Women-specific cohort in January
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Olutoyin Oyelade Pre-Order your Copy Today from:
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For too long the subject of a glass ceiling on women’s careers has dominated corporate sector debates and engaged practitioners’ attention. Scholars ascribe the many travails of females’ aspiring to top level roles to invisible barriers and hurdles that senior leaders failed to acknowledge, yet corporations have been known to suffer dire financial consequences for shutting women out of the corner office. Interactions with supervisors and juniors indicate that there are recurring limitations that could negate the core ethics of the workplace. While stakeholders in the public and private sectors continue to propose solutions and advocate for palliative and remedial steps to address the visible and invisible ceilings on female career progress, the number of female CEOs remain significantly unchanged. The question is why are only a few corporations pushing an agenda that seems to be the panacea to firm performance and sustainability? And why have the early warning signals of gender inequality remained in corporate corridors— 40 years after the glass ceiling was identified? Advancing Beyond the Ceiling deviates from the traditional approach of limiting the gender barrier dilemma to societal, natural, and organizational practices. The book researches into other imposed limitations, including issues of self-esteem, character traits, and male dominance that could stall women’s advancement. The author proposes reasons for females to spearhead their advancement through scholarship, partnership, mentorship, and sponsorship, amongst other practices in their quest to crack the glass ceiling. As a C-level executive in the banking sector till 2010, and now the Founder of an investment firm post-2010, the author explores the struggles, setbacks, and stockades that limit senior to middle female officers in their career trajectory…
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CASA FOUNDATION IN PICTURES
CASA FOUNDATION SOCIAL IMPACT Mother and Child Medical Support Program- Agege Local Govt. Lagos, Nigeria
Gathering at EMPEA (Emerging markets Private Equity Investors discussing Africa)
SOCIAL IMPACT CASA FOUNDATION IN PICTURES
CASA FOUNDATION FRIENDS OF AFRICA 2019
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Minister of Presidency of Republic of Ghana, welcoming Premier of Ontario Representative, MPP Han Dong
Left to Right
M Mme Dr. Jean Augustine - 1st Black member - Honorary of Parliament & Federal Minister in Canada - Dr. Olutoyin Oyelade - President: Casa Foundation Team & Partner Invcap - H.E Souriya Otmani - Ambassador & Rep. of His Majesty King of Morocco
Other guests at the inaugural Healthcare intervention- Equipment Donation to Teaching Hospitals.
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DESIGN
BUILD
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Friends of Africa (FOA) An Economic Development Summit The Friends of Africa (FOA) offers a platform to facilitate collaboration and investment partnerships between infrastructure providers and investors in North America and Africa. The FOA Economic Development Summit hosts participants from the public and private sectors. Through Roundtable discussions, breakfast and informal meetings, the relevant authorities in these sectors are brought together to discuss and proffer solutions to challenges in the real sector of these economies, while providing a robust platform for business ideas and opportunities. The Breakfast and Roundtable Sessions focus on: -Economic and Infrastructure Development discussions -Promoting strong networks and creating partnership opportunities for Entrepreneurs -Facilitating Business mentoring. The Infrastructure and Business Leadership Sessions: Improve knowledge sharing, networking, learning exchanges between business leaders across various verticals. These sessions also provide an opportunity to explore available funding options for business expansion and the growth of the private sector. It offers presentation of development ideas at the One on One sessions with Investors and global decision makers. Business Development Initiatives include: -Steps to Starting new businesses for young entrepreneurs -Discussions with business leaders in the private/public sectors across various professions -Networking event for Emerging leaders: discussing small business development systems -Connects to available funding options to support SME business development initiatives. For additional Information on Speaking, Sponsoring, and Partnership opportunities at Friends of Africa Conferences visit casafoundation.ca/Friends-of-Africa or send an email to FOA@casafoundation.ca
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Friends of Africa Economic Development Summit 2020
let’s talk about growth Inclusive growth! Join the convo!
Friends of Africa 2020: Reigniting Africa
Save the Date: OCT 2020
