New Africa Reports m 3

7/27/2019 New Africa Reports m 3

1/32

The new AfricAEmErging opportunitiEs for businEss and africa

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The new AfricAEmErging opportunitiEs

for businEss and africa

02

T

hene

wAfricA

EmErgingopport

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Essand

africa

FOREWORDThe world is waking up to a new africa. The predominant theme inthe emerging narrative is no longer war, famine and disease but ratherstrong economic performance. The resources industry has played animportant role in this shift but economic diversication is coming tomany African countries, where an expanding consumer base is fuellinggrowth in other sectors. And measurable improvements in governanceand human development suggest that these changes will be lasting.

Investors are realising that africa is good for business. Strong

economic growth, business friendly reforms, mature nancialinstitutions and some large economies (South Africa, Nigeria and Egyptamong them) add up to an enticing proposition. It is no wonder thatforeign investment in Africa is showing strong growth and that returnson investment in Africa, both foreign and domestic, are among thehighest in the world.

Increased investor interest is having a benecial impact on manyAfrican countries: business is good for africa. Investment iscreating jobs which have a wide ripple effect. And foreign companiesare helping to develop domestic industries through the transfer of skills

and technology and by generating demand for extended supply chains.A sharper investor appetite for African opportunities is sparking avirtuous circle of developments. As companies wake up to Africaspotential, they are making investments which develop local industries.As those economies grow, they present yet more opportunities toinvestors and spur governments to make their business environmentmore attractive to investors.

Africa has turned a new page. The prospects look bright and this is onlythe start of the story.

Zad Torres-Ramandebe a a

Mcael LalorpeE & Y sh a


3/3203

pht:Wrlbk

CONTENTS

Aas pospts a mpovg 04

sylv sl, p me, d be,iel fe c / the Wl bk g 07

ny dbe, He reeh, E gvee

pe idasa he ie dey a 09

Aa s good o bsss 11

cyh cll, che Exeve oe, al ae l 18

gey dve, che fl oe, cdc g l 20

V. shk, cEo Ee, he mle E, a he ae,s chee l 22

Bsss s good o Aa 24

gh mky, che Exeve oe, sabmlle l 25

pe Eh Ke, insEad ch pll Ey V fellw, cee gll devele 27

ital colsos: Tkg Dtly 29


4/3204



AFRiCAS pROSpECTS

ARE iMpROviNgthee ew a ve ee.f ee, ll a hly ee ye ee; e , llly, e , vey, e ee e key hee h ve.Hweve, he e he cl W ke eve h a e. th

h w ve e y le-ee ll, e elye hw e he 1990.ae eely,v he

elve ly eqe e wh evele. i w h

e l, e e ee ee, e-we eeeve, ely lel yeehee, y a eewee ee el e.

thee l he hve hele ee eve y a e

h h ve ke ee, ely ve e vee. fhee, weee, ehe wh ey vee ll vee, he e ,lly ee level lee, , lyevel ey e, e ll

e le wh h a.

bey he el, hee w vee y h evee hvew, e h he e e evelel e ahve ve ely ve he ee h a lele e wh jey:

a e h e hle ve he ee. i ee Wl E olk e (al2011), he imf e 5.5 e e gdpwh s-sh a 2011 6e e 2012, wh wh e e lke gh, Key, Eh,al, bw, tz, u ne1.

1 IMF, World Economic Outlook: Tensions from the Two-Speed Recovery, April 2011.

African economic outputhas more than doubledover the past decade

ph

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5/3205



a ve h wh h eehe ee y, ee y

he a hhey e. Hweve, he eey h hele ehe ehe. rewe e, pl clle,e he le wh lkely he wely ee. fe vee el ex wll e vee he e level (e whe exle a ve elykw -l e), h h wllhve ly ve a

e wh2.

Hweve, wh h ly ee ee he y . mya ee e vey eyee, wh vey hh wh level e h ele,l eve e .s, lk w, he imf,

gwh ... exee e e.de e exee e he el e e ve l vee.

ue he w e e he h a l ve1 ll ele e elywelhe. E & Y ly e wh e ve he 15ye hw wh he leke e e

le e. We e h he wh e wll elee vehe ex 15 ye, ve y ,l wh e eevele. r e e eve-ee eve, w-a e he eve y he ee he e e exee ve lle ee he ee eleve a y.

i hl eh e heh he wh e y vla e hve ee eve e. a eeh e y theEconomis, 6 a e hve ee he 10 e w ee he wl ve he ee; 7 ae e e e he 10e w ee ve he ex veye (ne, Eh mzqe

2 See Paul Collier, The Plundered Planet: Why We Must and How We Can Manage Nature For Global Prosperity, New York:Oxford U.P., 2010; and The case for investing in Africa, McKinsey Quarterly, June 2010.

fg1:gdp wh a

fg 2:aewh e

Africas population ofover 1 billion people isbecoming increasinglywealthier

africas prospects

are improving

9000

$

sure:Wrlbk

8000

7000

6000

5000

4000

3000

2000

1000

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

0

sure:ogido

,Ert&Yuly

20,000,000

0.0%0

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

05000

nhuehl(2010) g

rowthrate(1995-2010)

5000

10000

10000

15000

15000

20000

20000

25000

25000

30000

30000

35000

35000

40000

40000

45000

45000+


6/32



06

africas prospects

are improving

3 The Ibrahim Index provides a comprehensive ranking of African countries according to the quality of governance in its broadest

sense. It uses 84 outcomes-based criteria across 4 main categories (and 13 sub-categories): a) Safety and Rule of Law; b)Participation and Human Rights; c) Sustainable Economic Opportunity; and d) Human Development.4 The World Bank, Africas Future and the World Banks Role in It.5 In their paper, African Poverty is Falling, Xavier Sala-i-Martin and Maxim Pinkovskiy reveal that there has been a sharpreduction in poverty and income inequality since 1995, and that, further, this trend has been widespread right across thecontinent. Alwyn Young, in The African Growth Miracle, shows that African household consumption has grown 3 times fasterthan what is generally reported in international data sources.

e h l). fhe, the Economise h ve he ex ve ye, hevee a ey wll w eh a e.

Hweve, he ely h lee wh he -ll v. a hee why hee h ee h eve

e e ve he 15 ye he h hee h l ee ll l e. the ely h a e hve e e w e y ey. i 2011, le

17 a e e hele hve

l e ele, lbe, u, ch, m, Z,ce, he drc, Le, g, ,eh ly, he eelylee ne ele; ele heye, we w he eee shes ekly hly eelly; vl ey y ae h ee ely ve, he l ehe exe he h he a. clly , he ih iex a gvee3, whh ve eheve ly he qly vee he e, hw ey vee ve he ee.th ee ele e ee lllel.

ale he ele ewh ll e, hee h l

ee vee e he hevele . a heWl bk, e he mlledevele gl h ee ely h y e (h mlw,gh Eh) e lkely eh he l, y 2015 he heee. a vey e w ll e eee ye, 59 ee 1995 50 e e 2005. chlly e e el; HiV/aids

lz; y le ee e a h ywheeele.4 tw he ee lyl ek he vew h a vey e eqly ll ly, h,veely, el hehl ly 5.

fg 3:oee aee

fg 4:te ihiex e

wolds t astst gog ooms

al vee gdp wh %

gdp wh, wehe l vee, %20012010

al 11.1

ch 10.5

my 10.3

ne 8.9

Eh 8.4

Kzkh 8.2

ch 7.9

mzqe 7.9

c 7.7

rw 7.6

1970s

2

3

4

5

6

1980s 1990s 2000s 201115

Sources:TheEconomist;IMF

Source:MoIbrahimF

oundation

2010 estimate Forecast

Asa ots

Aa ots

* Excluding countries less than 10M populationand Iraq and Afghanistan

20112015

ch 9.5

i 8.2

Eh 8.1

mzqe 7.7

tz 7.2

Ve 7.2

c 7.0

gh 7.0

Z 6.9

ne 6.8

2000/2001

dj tz al ne c-Kh a vee

2001/2002 2002/ 2003 2003/ 2004 2004/ 2005 2005/2006 2006/2007 2007/20080.0

10.0

20.0

30.0

40.0

50.0

60.0


7/32



07

SYLViA SOLf/ INTERVIEW

SYLViA SOLfp me, d be, fl pve se devele Ve peey,iel fe c, the Wl bk g.Wh llee, Davd Bdgma, rel me, ivee cle, ivee cleavy seve a, Wl bk g, Mlssa Jos, se pve sedevele sel, ivee cle re avy, Wl bk g

S t la o Dog Bsss6, at

av yo s as t majo tds Aa?

pee a ve. m, exle, ke 20h llly heee e, llwe y sha (34h), bw (52), rw(58h), gh (67h). o he he h,9 he 10 ee ke lwe e s-sh a. o vee, he ell k 137h he wl. th eh ll ee ve a

ll ee

e ee leey heh hee. bhe e weeve ee.

Whle elvelylle w

he s-

sh a ele , he e ely e h ke he e. i 2004, ly 38 e e e he e leee eel e. ove he 3 ye, vee 60 e e e . s-sh a h h he ee ee ely e vy ll e

lw e.the jy e ly e- ee, ey e

ee le . ill hee e, e leee e

ely e h y he e.plly e l weee e y el e e.te ve e ely wh el h he she a cu hk eh e e ll ee . oheel e hw. f exle, hevee e e he eell 62 45 y, 233 ee 95.4 e e e e . thevee e ex, le llhe le he wl, h lle y week hk ee h ele ehe ye m,ml tz, ee ely be. s he e he ve, he el heeee e e. f exle, y s-sh a h 10 ee e ex e

wh ee ex y 4.7 e e, ee h wl e hee .

rely e h he e key d be e l vee e le. f h eeve, e ee e a.

w ots stad ot as oms?

a he 30 ee llly hve he ely eve e he ve he ve

Regulatory reformscan send a strongsignal of governmentscommitment to soundinstitutions and policies.It is becoming easier to

do business in Africa

6. The Doing Business project analyzes regulations that apply to an economys businesses during their life cycle, including start-up and operations, trading across borders, paying taxes, and closing a business. Through the indicators the project is able totrack changes in those areas across the world.


8/32



08

ye, h e s-sh abk f, gh, m, mlw,ml, m, mzqe, ne,

rw,

seel, se Lee.L ye,rw, ceVee, Z wee he 10eewlwe h vehe ee e ll .

sh e ee eelly llw le-e e e e heevee he ee.be el e e h e ve lle e. se2005, rw, exle, h leee22 e el e he eee y doing business. t ve j

e exle e he el, e eqe e ee 223 ee e e 2005.ty, ke w ee heey 8.9 e e e e. rw l e ellel l ew y lw,lvey lw, ee lw, ll e ehe ve ey h e.

m he hhe ke ey he e ke 20h 183 llly, h e ke he ee e elv he , vehl heey ey, lee ewlvey .

wat s t vd tat t oms yo

glgt Dog Bsss av ad a

mpat?

Wh e e e, ely ee hve ee ee. gvee ely e hee . a eeee h e e vy he l e hh e je he wy eevey.

se 2007, e h 20 a veehve e d be ewk ly e. they hve e he

eee ey e ely e, e e lle vee, e. se hve e e:rw e he 100 llly;seel e he 10 a.Lee eh y e heel l he .

c-y ly h l hwh ely e ee

eeeeh e, ehe vy ll e wh. a eeevew ely e lla ee ke ee ve50,000 ew l j he hee yee hw ee ke ee e ele e.

a ex evele ve he le ye h ee e ye ee-le. d ee-le eve

m rw, e vee eeeve 10-15 ee exhe kwlee ee heely e e. m, rw, bw e he e k hele.

...reformers recognise thatbringing more economicactivity to the formalsector through businessand job creation is themost promising way to

reduce poverty

SYLViA SOLf/ INTERVIEW


9/32



09

7 Graham, Paul. (2010). Strengthening Cooperation Between Europe and Africa on Democratic Reform, Challenges and politicsof supporting democratization processes in Africa setting the scene, 11 October 2010. Paul Graham is the Executive Director ofIdasa.

nAncY DuBOSSeHe reeh, E gvee pe idasa heie dey a

wat s t td gova ad

a t sss stos?

peh he ee k l ele whh e e ee e el le he e. 2011 ye a;14 e wll hl eel ele.sevel hve ley ke le, ly he eee, whh le he sh s, eelele u ne. sll e e ce, he derel c, Ey, Le.

o he he h, hee e he exh e Zwe, Eql ge,

swzl . b hee ee ee le.a heee -gh, whee vey lelyeeele w

ee y ll e; Key whh he k vlee 2007 w

h lee elly ee; he e Leh evl e w he l y.f ee l, eh hey e ee eqe he e. Whee y h ehh he e , he eee h e hee. dee elely he le ey he le wh ey7.

a ze hve w e hee he lv he

e e vlle hee. a aeel vey (2008) mzqe,e-h ee he lv ly vey . fy-w e e

sh a eleve h he e he y e h we e welve h . Eve hee el ee a el ve l eve,whh, , ee lewh. ree eve t, ale, Ey hve hw h lye wh l ze ee he wele e l llly.

ho dos dmoat gova otbt

to sstaabl soooom got ad

dvlopmt?

clely, le le evele ke lewh ey; eqlly eh ee lwy ke hee e ly he. b eeh exeee e h -ee e le he e e, whle ee hve eey el e ve e. fhee,he le e vee ve -e wh evele y e ee weh ey ze.

i eelly ee h ee ly ee; h , he well-ewe e e e

he e whe e -eevele . the vey lly

2011 is a big year forAfrica; 14 countries willhold presidential elections

nAncY DuBOSSe / INTERVIEW


10/32



10

e ee, lk ly, leeh v.de vee ee h

y e ye whh llw heeee e lze eqlee. iee he y hea che hve e vee e he ele h h he e wy ee h a eewee e qly e evey e he lve.

ho a t pvat sto otbt to

good gova?

oe hl eee he exe whh a e ellyee. thee e xely 14el e e, wh a e el le 2.tz, exle, ee heE a cy (Eac), he shea devele cy (sadc), hec mke Ee shea (comEsa), he a u (au).

thee e l -el e e e lke he E

pehaeeee eweevlae he Eu.

thee e, heee, eve eew ll vle jee. a he e e, ee e we he ee -el vey hllee e ey vl e. f e ze ll y e e vee l. th e he e whyi e vey ly he e exle, le ee l -e le h l e le

y a e le.

ce e he evelwl hl hee e he ewee h e e le. oe

he he plh Wh Y py (pWYp), ll ewk vl ey ll ey evee he exve e. thepWYp w h e h 600 ee.

ahe he Exve ietey ive (Eiti), l ee , whh eek eevee he exve e evel e y e he

ll l y ye vee evee. twey- ehve heve Eiti e , xee whh e a e lce, de rel c,g, ml Z. fy he wlle l, e velye he Eiti e. the Eitih l w he ve 80 llvee .

thee e l e l elyh e eke he e whh hey e. E heexl ll ee . cl ll e ee lz ex he e w lke hee e hhe he hl ve .

oe ee vke ee, eek. i vl he y--y ey; llyhe ve e. se e lly e he le e ee, veee, , l eexee, eve elvey. theve e hl ve whee hey e ye. the ee h wll ly ee e e ly ee ew eqle

ll ly.

The private sector shouldadvocate where they canfor transparent systems

nAncY DuBOSSe / INTERVIEW


11/32



11

8 Brazil, Russia, India and China9 How Exciting is Africas Potential, Goldman Sachs Strategy Series, October 2010.

AFRiCA iS

gOOD FOR buSiNESS

te, vee e e ll e he ew a wh

ve.thee e eeh el e

a h hee he wl.a hee

e vey el hllee, le whh he hee ze vey he e. i e l le, a e: ll ch, he

ue se,i, Ee,ae, newZel l whhe ae. theee ve 50 e hee; whle he e

wee, y e, vely y ll we, lveey jelly e.a e ll he l llly, ehlly elly vee ek ele le. Hweve, le e, a whle y vl a e evey vly wh he Ee devel ke e.

oe e h e eeee h ee ae ly ll e. Hweve,sh a he 26h le ey he wl, (he e Ea, mle Ee, L ae Ee ee) e ly, he 10h le ee-ye ey,ly eh he bric8, mex, ie,

pl, tkey, s a. Ey ne e eevely he 40h 41 le ee he wl (he he qle), lly ehmly, he he lke iel,iel, chle, ll he E celEe e (exe pl), newZel Ve. bh ne

Ey (ehe wh he lke ie, mex tkey) e l le y

gl sh nex119 e, wh hh

el e,le hebric, hewl le

ee he21 ey. ohe

a eelke ale, he

wl 48hle ey, m, 59h,

e zle (he h he

le ee he wl), whle e

a ee,l al, gh, tz, he

c, mzqe, Eh, ch, rw, Z e ll w

Africa as a whole andmany individual Africancountries compare veryfavourably with otherEmerging and Developingmarket regions

Lilongwe

SUDAN

NIGERIA

NAMIBIA

LIBYA

CHAD

SOUTHAFRICA

UNITED REPUBLIC OF

TANZANIA

MORO

CCO

ZAMBIA

CENTRALAFRICAN REPUBLIC

TUNISIA

UGANDA

CTE-D'IVOIRE

LIBERIA

SIERRALEONE

BURKINA FASOGAMBIA

CAMEROON

WesternSahara

ERITREA

CONGO

NIGER

DEMOCRATICREPUBLIC

OF THECONGO

GABON

MALI

MAURITANIA

BOTSWANA

SWAZILAND

LESOTHO

MALAWI

BURUNDI

RWANDA

ZIMBABWE

DJIBOUTI

KENYA

MOZ

AM

BIQ

UE

M

ADAG

ASCAR

ANGOLA

ALGERIA

SENEGAL

GUINEBISSAU

A-GUINEA

EGYPT

ETHIOPIAGHAN

A

BENI

N

T

OGO

SO

MAL

IA

Le

2 Le

4h Le5h Le

3 Le

fg 5:the elveze aee y

africa is

good for business


12/32



12

e e, e e

wll e e ll e.a key ele wh veeh ee he e e elye. i he l ye, exle,gh, Ey, Key, bw, bk

f, seel,Le,ce Vee,Z rw (h, 10 ae)hve llee he

Wl bk 10 e ee l, he ee e e e e lee e elyle.

th e l elyv ee y y ae he Wl bk Ee

d be k. i , 8

a e (m, sh a,bw, t, rw, gh, n, Z) e he he hhe kebric y (ch); l 19 ae e he i.

the hhe ke a y,m, k he he lke gey, fe, bel, swzel,he nehel, a, iel, mly tw. sh a, he ex hheke a y, he levey he ee-ye ke exethl, mly e he celEe bl e, wy he y he bric e, well helke s, ily, he uaE tkey.

slly, e fl mkedevele ( he elve y l l ke e ely key ve), e he Wl E f

gll ceve iex, 4 a e(sh a, m, n Key)e ke he he ue se.sh a, , ke 9h vell, he evey le eeke exe mly, well fe,he uK, he us, gey, J. thele elw ve e le e he e e -ke he vell ll fl mkedevele he lle he .th ele ee e ee he e (h, e,we h) e ll w e e e ely e e wh, ll e he qle e he wl h e l elve ve e ele.

Lilongwe

SUDAN

NIGERIA

NAMIBIA

LIBYA

CHAD

SOUTHAFRICA

UNITED REPUBLIC OF

TANZANIA

MORO

CCO

ZAMBIA


TUNISIA

UGANDA

CTE-D'IVOIRE

LIBERIA

SIERRALEONE

BURKINA FASOGAMBIA

CAMEROON

WesternSahara

ERITREA

CON

GO

NIGER

DEMOCRATICREPUBLIC

OF THECONGO

GABON

MALI

MAURITANIA

BOTSWANA

SWAZILAND

LESOTHO

MALAWI

BURUNDI

RWANDA

ZIMBABWE

DJIBOUTI

KENYA

MOZ

AM

BIQ

UE

M

AD

AG

ASCAR

ANGOLA

ALGERIA

SENEGAL

GUINEA-BISSAU GUINEA

EGYPT

ETHIOPIAGHAN

A

BENI

N

TOGO

SO

MALI

A

114

165

152146

176

179

143

177

156

155

181

169

67 169

17

173

137

183

154

122

128

126

138

118

140

157

34

182

153

163

154

17568

180

158

98

68

76

52

55

94

fg 6:relve Ee d be ace, relveWl rk

africa is

good for business

A key enabler of growthand investment has beenthe trend of businessfriendly reform


13/32



13

s, a h ll he k ell vee lee, e l

wh,llye,

lyveve whh ve e.i hl

eh e he h e vee a e hehhe ( he hhe) he wl. i

, h ly ee e. oe he key l 1999 ue nceee te devele(unctad) e10 w h he 1990ly fdi a w hheh he h e he wl.a he exle e w he e

us fdi a, whh vee e e 29 e e ewee 1990 1997,lly hhe h y he e he e e.

th e hh vee e a e y evel eee e11, l ee bcl g y 40 ae ( hey ll he achllee). a us$100 vee

SOuThAfricA

MAuriTiuS

GhAnA

rwAnDA

nAMiBiA

TuniSiA

rel ee exhe

seh e

Ey e

se k

Lel h ex

pe y hehle ee

avlly l eve

f hh ll eqy ke

seh ve e

re l w

tl x e

be le fdi

1 28h

1 11h

2 3 21

6h 16h

6h 39h 20h

6h 16h 42 14h 11h

7h

7h 38h 25h

10h 12h 33 27h

8h

17h 42

8h 6h

Relative World Rankings

africa is

good for business

...during the 1990s

protability from FDI intoAfrica was higher than inmost other host regionsin the world

10 UNCTAD, Foreign Direct Investment in Africa: Performance and Potential, 1999.11 These include Boston Consulting Group, The African Challengers: Global competitors emerge from the overlooked conti-nent; Collier and Warnholz, Nows the Time to Invest in Africa, Harvard Business Review, Feb 2009; Warnholz, Is Investmentin Africa low despite high prots?Working Paper, Centre for Study of African Economics, 2008; McKinsey Global Institute, Lionson the move: The progress and potential of African economies, June 2010.

sure:Wrl

Efruc

ettveeitr


14/32



14

l ex he 40 eleea e nvee 2000 wlhve w y 25 e e cagr hh2009, ve 11.8 e e he msciEe mke ex evee he s&p 500.

ahe el y y Je-LWhlz he cee he sy a Ee ox uvey

ve evee hh e a hee ee eeve. He,, e l l 7000 le

e,ve ll a elee a(ch, i,Ve,bleh,

ie) Lae

(bzl, ae, pe, chle, cl,uy, p py) e.a hee key vee ee, ely , roE roc, he a elly e he a L ae e.

nex, Whlz, e he Wl

bk rel p Eee

devele (rpEd) vee hee le le e le vyze he (hee he e 15 e s sh a, 8 sh ae well bleh, i Ve). the lle eee hee hve le ve elyee, hele ely ve 500. a, he hw l (ve20 e e) roc ae.

flly, Wlz lye jee ee s-sh ak ke ne, gh, Key,n bw. ove he 5 ye 2002-2007, el e heeke wee le 30 e e, lle h s&p 500 e.

africa is

good for business

Again, the data showssubstantial prot margins(above 20 per cent) for

most African countries

fg 7:iexeee he bcg a

chllee

2000

T-ya total saold ts

2001 2002 2003 2004 2005 2006 2007 2008 2009

1000

800

600

400

200

0

nvee1999

(nvee1999100)

nvee2009

se: bl; th ree; bcg ly.ne: sk iexe e e he j l k exhe: tsr he a hllee e wehe y ke l.the llw e e le hve vlle tsr : sh, ona g, al Ezz g, oe chee ephhe, Ey, Elewey cle, cevl, ryl a m, sabmll, ge Ell b a e ivee.1d vlle ly e fey 2005.

a chllee

msci

Ee mkes&p a1

cagr19992009

(%)

24.8

11.823.6

-0.8-5.8s&p 500

tx

ph

t:Wrlbk


15/32



15

ove he 2 ee,sh a bewee(sab) ew l

sh a e,

y he wle le ewe(w sabmlle)

75 e xe, ely70,000 ele. sabmlle

e e 1 2 ve 90 e e he ke whhhey ee lch (e 1), i (2),e 1 ll 6 ehey ee Lae, Ee(ly E), usa (2), he a ke

hey ee . gwh s-sh aw he ee h

ll wh ey, y a ve h sabmllee. a e key he whe, ve $1.5 l exee hee vee hee ve he ye.

sabmiller

mtn

i he e 15 ye,mtn ew

e he le yl he Jhesk Exhe. f sh a , yee 21 e a he mleE. i 2009 ( 15hye exee), mtne he 100 lle ke. mtn

e 1 2 19 he21 ke whh hey

ee, l sha (e 2, wh 32e e ke he);ne (e 1, 50 ee); gh (e 1, 55e e); i (e 1 2, 40 e e). neh ee lly e y mtn.f q 1 4

lee 2001, hey hvew he e

e 35 ll (ve50 e e he eke), l yeeee ve us$1 evee ne( 61 e e Ebitda).

Some African

Growth Stories

africa is

good for business

If there was more of Africa,wed be investing in it

Gaam Makay, SABMiller CEO.


16/32



16

africa is

good for business

bharti airtel

bh ael e ew ee ee ke ve a. the iele y,wh ve 150 ll lee i, hZ a e l

ye $10.7, wh eee vee 16 ae (bk f,ch, c bzzvlle,de rel c, g, gh, Key,m, mlw, ne,

ne, seyhelle, seLee, tz, u Z). o he k h q, wl e h ibmwl e wh bh le he eeit eve he16 a e ee it ye

veee he ee ll he l, eee, eve, e ek eve. th wllly ex he ibmeee a well.

Africa is a huge continent and will remain a very important new

market. My focus for the next one to two years is to execute thebusiness model and strategy in these 16 countries and maybelook at other markets after that. As a continent, this will havebigger potential than even India.

MAnOJ KOhLi, HEad of bHarti airtELs intErnationaL opErations

Lilongwe

SUDAN

NIGERIA

NAMIBIA

LIBYA

CHAD

SOUTH

AFRICA

UNITED REPUBLIC OF

TANZANIA

MORO

CCO

ZAMBIA


TUNISIA

UGANDA

CTE-D'IVOIRE

LIBERIA

SIERRALEONE

BURKINA FASOGAMBIA

CAMEROON

WesternSahara

ERITREA

CON

GO

NIGER

DEMOCRATICREPUBLIC

OF THECONGO

GABON

MALI

MAURITANIA

BOTSWANA

SWAZILAND

LESOTHO

MALAWI

BURUNDI

RWANDA

ZIMBABWE

DJIBOUTI

KENYA

MOZ

AM

BIQ

UE

M

AD

AG

ASCAR

ANGOLA

ALGERIA

SENEGAL

GUIN EA-BISSAU GUINEA

EGYPT

ETHIOPIAGHAN

A

BEN

I

N

TO

GO

SO

MALI

A

Standard Chartered

SABMiller

MTN

Shoprite

Bharti Airtel

Tullow Oil


17/32



17

africa is

good for business

standard chartered

s chee hee a. they w e 1969 hh ee w k, e whh,the s bk bh sh a, w

e sh a

1862, y he 1960 hexee she, cel, E We a. ty, schee ee 14 s-sh ae, wh ne e

he le ke,

wh wh e ke,l Key, gh Z. i he 2010 lye, he a eelvee lewh 9 e e

l g ee x.

tullow oil

tllw, ftsE 100 ywh ih , he leeee l y

a. the y e a y 1986 seel, wh vee

ewk l el. i w 2004, wh he q he sh a y,Eey a, h tllwelly e le a e. thq h wh vea l e

e h le hel eeve. se he,tllw h ely w

a eee, w e ew he wh, wh le Jleeel gh hee el vee u.

We started in Africa, Tullow is anAfrican business, its where wehave made our money, its where

we see our future and in verysimple terms, we like it!

AiDAn heAVeY, tuLLoW oiL cEo

shoprite

she h evlve eh-e, vl

e 1979

wh y he le ele he ae (ew 130 e 16 a e, ely 88 000 ele he e). Wh qe ee she h

he e a he

elvely we ehlve. the eyh eelly ee ehe evelly wh lleee. th h llweee ehe vly hevee eh ke.

We have taken a rm decision thatAfrica is where our future lies andwhence a substantial part of ourgrowth will come from

chriSTO wieSe, sHopritE cHair.


18/32



18

cYnThiA cArrOLLche Exeve oe, al ae l

As a log-stadg vsto Aa, at

attatos do yo s t ott?

a e e e.i he e, wh ll eee e, a eee he le. i h 30 ee llel ee e e h60 el el , ll, l el (pgm),e, kel, , l,, ee, h, xe l.

Ad at kps yo vstg t?

al ae h 93 ye hy sh a. We e-le L ke

ve llke ve 40e e ee sh a we e

lewh h.thee 7

e (l, e hel l) w key e( ee) ee sh a. thee e ll lllyeve ee we e ve he: $20 cex sh a vehe l 10 ye e wh ele l $15.

wat do yo look o vstg?

a e well-ele ke whee wekw he le e elle . i he y, le-e e l weee e le l le 10-20ye he wh ee. thee h e e wh vee l.

tey he key ee. a y we e e lhwh we y. i sh a we ex evee he vee $1.2ll, he hhe sha xye. i e we w kw he e e veew he y ke e

he e-k e. n ye lee l e. bvee e ee e e l .

We l w ee he l vleye. Wh ey e hey w? oe wh j ye, jh e wh ee ey, hh wele h elyee ll e; l ve

y h wll e le well hee; hw e he eve.We he h ely vee a wll eek he ewhh wh ey we le.

We w e ve e whhhve eee je.thee ee l e heel kele h h l lel ye whh hl he le

lw ee wh ll he ee.

Three of our 7 mainbusiness groups operateout of South Africa. Theseare all globally competitivebusinesses and we are

investing behind them

cYnThiA cArrOLL / INTERVIEW


19/32



19

We w e le w helhy well-ee wke. We veve 100,000 e j sh a. We

e ly e elyeehelh evele h he

eee eey HiV/aidse.b weeeh he we

hlleeh eee

eh wh he lvee.

Lly we l w ee e v e. a veve eve e ee l,we wele e y vee le he hee l ele we. i he

y, l ly e le we ee lk elve v l-ve eh.

peh he key w. We ee

kw h we wll e wk ehe he e l e, e h he l.

wat do yo s as t pmay otbto

tat bsss s as yos a mak

toads Aas dvlopmt?

the e y h he we ke el eee llev el vey e wy.f exle al ae, we e$10.4 lly eve, hee qe h

evel e. a j 1 ee ee vee lle eql 125 e e ll vee e. the hwe e eh ye ee ee ke ee le he e he uK, fe gey he ey ve evele y. b h j e e hee he

y-l, he e j ll ee he v e le vee ewk whh h ll ke le.

...just 1 per cent of ourprocurement diverted tolocal spend is equal to125 per cent of our annual

social investment budget

cYnThiA cArrOLL/ INTERVIEW

pht:Wrlb

k


20/32



20

GODfreY DAVieSche fl oe, cdc g l

ho m o yo vstmt s osd o

Aa ad y?

a evele e (dfi),cdc e e wh evel e y ve

ee. se e 1948 cdc h ee l vee a, he e cdc vee ly

ke 75e e ewvee lw-ee 50 ee ew

vee -sh a. i heee, h 44 e e cdc vee l a, wh e vle 877.

ho old yo dsb t ovall

pospts o Aa?

the e a e vey . thee whle h ejye wh 5 e e vee ve he l ee,whh vey e, he e ve he wh. ck e h a he ll gdpwll e 4 e e 2010 7 e e 2030 wll eh 12 e e y 2050.

thee ee wlle veel level llw he vee ke e h weeevly eeve he e-we l e . the Wl

bk Ee d be re lke le h el eve he ee h ve hee el

ee ly a. f exle,gh e e le he eek, ce ve le, rw 12le u w eve le.

wat a t ky dvs ad abls ogot Aa?

cdc ee ve key ve wh a.f, ely e e h lweh, l eve vee lk el a eey e l e he h eeeel vl.f exle, seel l hee llw e ee he l

e, e welh vee.se, e e a hl e eee. a w ly l wll ee e e , hee ee ll e eve ve wh lle fmcg el ee.

th, he l a y

w. n ly e h ve ely vlle, eve le, a le ee y he e wh e l.E ee ee e le he h el.

fh, l w e v wh a. th le fdi, whh e hk he ew wee a vee e. n e eee, hweve, e d

ee whh e le vle hfdi. a he Wl bk 2010ee exeee us$20 e lleee 2009 e he ll l

Good returns are possiblefrom making responsibleinvestments in Africa

GODfreY DAVieS/ INTERVIEW


21/32



21

. ree e l le vllee l hey lly e ee e ey heh ee fdi e. fhee

ee y a whee fdi wllevelly ex he e.

flly, y e hve lee hey e e we e wh.

wl cDc as a dvlopmtal objtv,

yo xpt a t om yo vstmts.

wat kd o ts a yo sg om

yo vstmts Aa?

a -- ve cdc wk wh71 e he wl h vee l whh ee ewee 5 e e 20 e eee he e, e ve he , ehe wh he qly vee ey he eee.

a cdc we eleve h k eh e e he ehy

e he vee el evele e. ceh ke w e le. fhee, dfi

e cdcjeve ee elve h ee le kelevee a.

plee e

ee . f exle, 2010cdc l e ve us$3 ll xe ve j l800,000 ele. fhee, e 2004

cdc h e ve 1.6. thh ee evee evel e cdc l vee a

w wh ve 877 le ve 400e.

wat do yo s as t pmayotbto o t pvat sto to Aas

dvlopmt?

the el v h he vee ke elye. i he e j ve le, whhle e, eee xe .o eql e, hweve, hw vee j ve ee el . pve e eee wke wh e elye

, whh ee vley ly. fl elyel ee l he ye e whh e ee el k , e v,e, l e v .cely, 70 e e ae vy he l e.the ve e wll ke h h.

wat s yo mssag to ayo osdg

vstmt Aa?

fly, a le h y vehl e vey ely ee he vee e e hee. sely, hweve, hle h ve a ey.a v e ve 50 e,eh whh ee h w

e hllee. Ye he elle ve e he e. bee l hehe e , e heke y ee he el ee vle. flly, a lewhee exy e e leee e l he ly lk. ive a l exy h vee.

Africa is a place that anyinvestor should considervery seriously because

the factors for investmentsuccess are gatheringmomentum

GODfreY DAVieS/ INTERVIEW


22/32



22

V. ShAnKArcEo Ee, he mle E, a he ae, schee l

As a bak t a dp-ootd stoy aosst ott, o av yo s Aavolv as a vstmt dstato?

a vey ex veee. the k h ee k

a, w e, ll e, e lew wh , 146 ye. We vey heleve he a y.

thkllyhe ely h he vjy e - ve ey heel

ee a e wlwh eeveee. thee, elvellly eveeeee e he e

ee ke e ey a.b he ew a h e he, whh ley le h qe he e gdp.a s chee, we ee eel wh hh ew l e, le

e. the le h a vee le helly he he ee.

wat mo ds to b do to talat aptal os ad oomgot?

the y ee h he vee llwe ll ee le

a ee. Wheeve h h eellwe, a ee hve ee.g e h ee ee e a e ey e e, eh vee ey. Hweve, e e ee e e y a he ve level ly el el e e e. a ve vee le, he lel

The new Africa isabout much more thancommodities, which

already accountfor less than a quarter ofthe continents GDP. AtStandard Chartered, wesee enormous potentialfor growth throughnancing a new class of

consumers, agricultureand infrastructure

V. ShAnKAr/ INTERVIEW

pht:strchrtere


23/32



23

ye ee e e h llee wh ee ee.

a he e ele wh e wh a el: , ll e eee. thee ly j le ee wh, well lye vey, v e e e l . mhe ee e e y vee he ve e ll ee,le he wh l ey.

Stadad catd as dtd small admdm tpss as a poty bsssaa a yo say mo abot y?

th e ke he l-he e lely. s chee hlyee he smE e el y e hey eee ey he ee h ee

j wh. p

eqe ly,lyeqe l-e.

o eyly eh el

k whelve,le el

le. a we e el ewk, eve ve e he h h he ll l e he e ele wh ee vve l hee le, l ll ey e ey he.

the e e wh smE e.

a, he e eee exel y. smE ley ewee 30 60 e e

a gdp we e h hee wll e he ve lee wh a ve he ex 10ye. the k eve ve h e ve y elexee le ee llkwlee. s smE le ll e. ce ely eqee he eve h he . the el eve

whee he k he ee vle e a. i ehe y, el wh y e, e he ke.

wat s yo v o t s o Asa, adpatlaly cs, vstmt Aa?

We ee ee he ee cheeeee a, l h hea ve lke i Ke. the eel h a vee

h h a e elee: a le ee elve eee he wle. ive eleve ch iwh; hey eleve wh h e e e, ch ely i ee wh ae. th h hele e he hevl a e. a hy h e h e:l ye s chee e he$10 ll lk q y ile ele y, bh ael, Z a e ev 42 lle 15 e a.

s a vee, le he wh he ve e le ve , ll e eee wll el evee ex e ll hee he e.

Small and mediumenterprises alreadyaccount for between 30to 60 per cent of AfricanGDP and we forecast thatthe sector will be themain driver of sustainable

economic growth in Africaover the next 10 years

V. ShAnKAr/ INTERVIEW


24/32



24

12 Ernst & Young research, as part of their Africa Attractiveness Study.

buSiNESS iS

gOOD FOR AFRiCA

be ve e levele. a he Wl bk sylv sl,evewe h re, y, a vve e wh ve e

j key wh exe

eveye,llyhe . a ewye , heWl bke vey heeeve ele he

wl, Ve he p.the w eeve wy vey

e wee e j ex .

the e le h e ke aevele y e:

e j e e,ehe wh ew eve. fede ivee ee 1.7 ll j12 a ewee 2003 2010.

Le l hve hh he e heyee hh he vle h le . by e ey wh e ke, ehly l, ve hel l hey evee ll .the vle e ee, l

he x evee, e le le h he e ee. i eel, he he hve hh he ee e exee he hey hve hh he l,hlh e l elye.

thee w y evee

e h y. f exle, peEh Ke, whe evew eeele h se, h ee hele ve h e hve y e. the ly l h h vee w levee heevele e, hey hl e he el eve e hve.

bey h, hee h ee w

ee lve e el ee el h e h le l hve ehe evele ,hh e ele e,elyee, le . theely evee e e eee, l e ew whke e ee ly h. thel h el e hee yhe e h he he l lle el h wekee he

vee le whh, , leh he e l veehl e kl hee leek. ahe e e, e ee eexee wh vve eh h hel le heee h y h ely e k, l he y ele ehe e ee.

s whle a e e

e, e l e e a.

A vibrant private sectorwith rms investing andcreating jobs is key topromoting growth andexpanding opportunitiesfor everyone, particularlythe poor

business is

good for africa

pht:sabmllerl


25/32



25

GrAhAM MAcKAYche Exeve oe, sabmlle l

Yo av agd tat bsss s llg got

Aa. wat do yo bas ts agmt o?

se 2000, whe the Economis leele Hele a, he e he exe; ele h ye, the

Economis y wh he hele a ehel e he le a w e he wl e-w e.E wh h elee 27 a

30 leee.the e eh lle 22 e e he 1990 8

e e e2000. bewee2000 2008,

a gdp ew y 4.9 e e ye, eh he ll vee 3.8 e e. by 2008 h ehe $1.6 ll. fe e h lle 82 e e gdp 59 e e, whlee e hve hk 4.6 e e gdp 1.8 e e. flly, a w he lye a whh gdp lly e he 2009 ll ee.

th eve e wh, eellyve he e e he heey. a h wh h ee vey e , y e vee, (lely) y evee eee l he l ee e h hee he y he eevele. E evele eqewelh e ee, he ly ee h e. gvee ee he welh e, hey ke he.

has ts oom got odd t

asd vd o bsss atvty?

the evee e ly h awh h ee elle y vee. bewee2000 2008, e e vee a

ee $10 ll $88 ll eely we he level ol develeae. d h e, j e e h pe & gle i t m hve ee v hee. a he e e, a h we w eee, w 20 he-we wh evee e h $3 ll.

se h ele, k, e h. se 2000, exle, ele a hve e e h 316 ll ew le hee e h he ee l he usa. a e 1998, he evee a500 le e (exl k) hvew vee 8.3 e e ye.

thee hw h he wl wk a el. i ve wh we sabmlle hve kw y ye ely,h a e e e e.

i at ays dos bsss otbt to Aasdvlopmt?

Le e e he e sabmlle exle.o a ee e hhe h he we ly. i 2008 weke pe Eh Ke insEad lle he e e u. He le h 2007, nlebewee elyee ely elyeee $92 ll e vle. He l h evey j ely e nle

bewee, he he wke e,, ele eee he

It is business thathas been the primarycontributor to the

continents development

GrAhAM MAcKAY/ INTERVIEW


26/32



26

y e he lvelh. thhly 44,000 j he ey whle j le y.

o he ll ey

y h he e, . i ee we heewheeyyk ve e he weee

ee. Wel ve e y ll

ele. o Kks hee eeeeeh e kll ve 18 35-ye l. i he 16 yee e, Kks hve e e h 3,200 ll ee.

sabmlle e l ehevehelhe e kl eee h HiV/a, tb l.thee lly e eve welyee, w exe ly h he we y. We l ee hele lv e ewee hve e we ee. We e ve, , e e kle lhl e.

ca bsss also av a mpat at apoly lvl?

a y lke sabmlle le exeee e vee e y e ehlly, e ele hh . my elyee he j he l ve e, eee vee he he exee.

We hve l e vee ly he ely e. i e

h Leh, mlw, u, swzl Z, we hve ee he l evel l lhl le. i tz sh a, we e wk wh he vee

we ly. al sh a, we hele e e ll e he e ele 1994.

me eely we e eve veee he

eee she s, hv evlyhele he vee elh eyh wkle exe ly. i ll heewy, we e ely kll ee vee e a.

is t mo tat a b do to optms t

otbto tat bsss a mak?

gwh l e e ll vee,

l, wee e ve e he h. thee e hee e lwhee vee l e. f, ve a h e, h , eve h we we. Lk h k ee e he e le aevele.

se, ve he -lle e. th ve e hke ee e vee,

he le lw, e el, ey h, ve vee le,ee , e-ely ee e lk .

a lly, we wl lke ee veek e el e eee.dee e ee vee, -ee wh a e lwe, le e ee h y he e.a e e ll he hhe he wl vee, 50 e e hhe h

he L ae a. mh l eheve y e e ee-e e k ex eee wk ee.

the e h ee sabmlle i h sabmlle h ee a. a ive e , hee w e a, we ve . Wh we ee, e hyh, he h e vee ele ee welh ae wh. i vee ee heele h e, a ee h. Lke ch 30 ye i 20ye , he e l e he e l-.

What we need, morethan anything, is theright infrastructure andsupport from governmentsto enable us to continue

creating wealth andcontributing to Africaseconomic growth

GrAhAM MAcKAY/ INTERVIEW


27/32



27

PrOfeSSOr eThAn KAPSTeininsEad ch pll Ey V fellw,cee gll devele

Yo av pblsd a mb o stds o

t mpat o bsss Aa. wy do yo

s ts stds as mpotat?

a 15 ye , i e wh Hvbe shl pe he e w k he e evee evel e, h e e wee wll -eh e e he e ele h ye ly. i ve h k je l uleve ke e

y he e sh a,

lhe 2008.tllyhee hveee vey ewewll lkely h he he

lk v eyhe csr e. i h ee, ulevee l ve.

se he, i hve wke wh e ee lk he ,l sabmlle u schee gh. my he h hee e wll v he e lk e ely e he . thee e l

h h ee e evele, hey hve lly

e j k he e e he l wh he .

wat s dvg bsss tst

masg t mpat?

f he e h i hve wke wh,evel e e elee he e wh he wh he e e he wh heeke. ue he hee ee heee he e ey, he ve.

wat av b yo ma dgs?

the ee e vewhelly ve he e i hve e .Lk he e e hee e vee, heee elye , vey vle he ey ( e le, xe ).

i 2005, uleve sh a elyee wee ely elyele ee e h r32 ll , he e, xely 100,000 jhh he sh a ey. the h evey j ely e uleve sh a, he 22 wkeeee he y e he lvelh. i l h eee 0.8e e l sh a elye.the ly hw h uleve vle e hh heey e r12.5 ll 2005 -

0.9 e e he y gdp. ce e xe, well he xe

There are a lot ofimportant things that

businesses contributeto development, but theyhave traditionally done abad job of making theircase and engaging thepublic with the data

eThAn KAPSTein / INTERVIEW


28/32



28

y he le, uleve sh aw ele ee r4 ll, 0.9 e e l vee x evee.

sabmlle u y, nlebewee, w ely elyele ee vle e us$92 (l us$55 xe) xely 44,000 j hh heu ey 2007 xely100 j e wke weee evey j ely e nlebewee. i 2009, e 8,000 eee le 70 e e he e

y w

h nle bewee.bewee 2002 2007,e eeeeve-l.nle beweevee

wh ee e he

h, v he wh e ly he e y e vlly.

i he e s chee gh, 2009, ve gh ee,e vee ee whely us$900 ll , e hy he ve el k e he y. th le eeeus$400 ll vle-e he

ey, eqvle 2.6 e e gdp.mewhle, he k ve hele 156,000 j gh, eql 1.5 e e he ve wke.

wat a bsss do to t a

t mpat?

i eh e i hve lke , i eee h e ke ee he . f e, e

he wel y

hve hh he he ke le. Eh ll ,

hel le vehe vy level h hey eeve hve vey le ee he ey. me ly, e ee e e eeh ehehe he .

wat a govmts do to a t

postv mpats o bsss?

ave ll, vee ve e

el -a e.bey h, vee ee ly eve h e vee vee, ehe he ee e ve he wh ll e eee. Whh, e wll e le eeee wh ee vey,eqly, elye.

One of the most powerfulimpacts a companycan have is through thepurchases it makes fromsuppliers

eThAnKAPSTein/ INTERVIEW

pht:Wrlbk


29/32



29

initiaL concLusions:ThiNkiNg DiFFERENTLy

a he ve ee ae k v le evele he e. a ewke a el, hey e kvee whh evel ll e.a he ee w, hey eeye e e ve vee ke he e

eve

e ve ve.the elek heelve:e vee a e

he hhe he wl, whe e ke hve ee e.

b a ll e e.sze he ee l lk: l l ch, he uese, i, Ee, ae newZel. a 50-l e hee whh wee, y e,ve ly y ll we.meve, a e ll h ellly, ehlly elly vee ek e le le.

s whee ?

We eleve ve le e eel y a wh ey:

1. Bld tal mass.

my a e e w hewl ll vee he ee e eh ee hh bzl r, le h i. by e e lle a e, ve

he ze ke hey e ee. ive evel e e l evle k, h ll ly.

2. fos o t oppotts bt tk abot

t log tm.

a gdp wh ee exeehe ll vee le he ex ewye. se vl a e ehev le wh. ce e

vey hee e ll ve l ee. a y lle ely eevele h ely ly h.ce whh ve ely e hl he wl ex ee e.

3. Sl t makt dtly.

Whe e le he whey, he e e e. We e, e,

kle vew he ke el.rel e ze e ly ely le ee. u e, y2025 he un e h ely 50 e e a wll lve y, y hell e-ze. i lh h e,y e elly he eve; ywe kew ee ke el.the w e l e e: vlly , lke y e ee eke e ve e hlle w he ee ele .

4. fos o t damtals.

cdc g l kwlee he le ly a ehele y, heel le ve e he e.bee l

Companies which investearly can get a foothold inthe worlds next emergingregion

thinKing

differentlY


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he he e ,e he ke y eehe el e e vle.

5. Tk dtly abot o to sv t

makt.

the vee el y e hee a y he e hewy he el e le hl

eehve ellleleve.f exle,eewhh le

e le a eke ke vel wy.

i e n wh, heve ell he we y he q heh y he e e ew kee he e he y.ce e l el h whee hve vey le lee, he he ewee eelye ewee eelyee . bee l y a vee, j he e wheehe e e l; h w hee

wve v -llelve e el h hve elly el wy ee ele e, le . f he e h eey ve eve he ee a e, he ke el he. a wh h e he y he he ele a wh evele e.

thinKing

differentlY

For those companies that

are ready to innovate toserve the needs of Africanconsumers, the marketpotential is huge

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