A long-established African firm went global, only to find the fastest-growing market was on its doorstep ... ON A Friday evening in Onitsha, as the beer market is closing, a man carefully straps six cases of Hero lager and two cases of Pepsi to the pannier of his moped. Another rolls away his purchases by wheelbarrow. Coaches parked nearby will soon be filled with day-trippers and their cases of booze. Each day a vast quantity of beer is sold from this closely packed warren of stores. It is part of a sprawl of specialist markets in the city, a commercial hub on the Niger river, which draws in traders from across southern Nigeria. ... It was the bustle of Onitsha that persuaded SABMiller, the world’s second-largest beer company, to set up a brewery here. The market takes a slice of SAB’s local production and sells it on to small traders who are otherwise hard to reach. The company had been late in coming to Nigeria. First it acquired a rundown brewery in Port Harcourt in 2009 and then another in Ilesha before it built a brand-new plant in Onitsha in 2012. Already, its capacity is being increased, to slake locals’ ever-growing thirst. ... What might other consumer firms looking to Africa learn from SAB? It is not an easy place to do business and the results are not uniform. Lager sales are booming in Nigeria and Ghana but shrinking in Zimbabwe and South Sudan. And there are few reliable sources of business information: firms have to learn as they go along. ... South African businessfolk have a phrase for it: paying your school fees.
As the Somali piracy blockbuster Captain Phillips raked in $26 million in its opening weekend on U.S. screens, Mohamed Abdi Hassan, better known as "Afweyne," was on a flight to Belgium with gainful plans to sell a very different story about East African marauders. Expecting to consult on a movie based on his life as a seafaring bandit, Afweyne and his associate were instead arrested by Belgian police and charged with the crimes of piracy and hostage taking. The two men had fallen for a hard-to-believe, reverse-Argo ruse -- a months-long sting operation set in motion to catch the mastermind behind the 2009 hijacking and ransom of the Belgian-owned dredging vessel Pompei. … Though his hopes of being immortalized on the big screen have been dashed, Afweyne, more than any other pirate, is responsible for making Somali piracy into an organized, multi-million-dollar industry. … Beginning in 2003, the former civil servant was plying investors with a self-described "very good business idea" and headhunting veteran pirates from Puntland to train his own "Somali Marines." The result was the birth of modern Somali piracy: organized bands of skiffs and supporting motherships hunting hundreds of miles from shore for commercial vessels that would deliver multi-million-dollar ransoms.
The demographic and macroeconomic backdrop in sub-Saharan Africa resembles that of East Asia in the early 1980s, says Arnold Dubin-Green. How many astute investors among us would love to say they invested in Asia when the Tigers were cubs? … “The hopeless continent.” This was the Economist’s front-page reference to Africa in May 2000. Hopeless Africa; asphyxiated by civil war, corruption and political instability. … Investors ran a mile at the mere mention of Ghana, Kenya or Rwanda. Today, returns in more expensive developed markets threaten to be low for years to come. Slow global growth and low yields are the norm. Jumping off the US fiscal cliff and euro crisis, these headlines motivate investors to seek markets with higher yields and stronger fundamentals. … Fundamentals are better placed than in many developed markets. Africa is now the continent on their lips; a market that is a significant and growing part of the global economy with plenty of room for productivity gains, favourable demographics, commodity richness and recent history of fiscal and monetary reforms.
The interior of Madagascar is ringed by razor-sharp rock, impenetrable jungle, and invisible perils that even seasoned explorers dread. No wonder more men have been to the moon. ... "This place is almost completely inaccessible, an actual no-man's-land!" Simon Donato was explaining over the telephone. He was going on an expedition to this remote spot halfway around the world, a chunk of rocky forest near Madagascar's west central coast called the Tsingy de Bemaraha Strict Nature Reserve, and I was hoping to join him. "Right now, we probably know more about what isn't in there than what is. No trails. No infrastructure. It isn't really visible even on Google Maps, because of its tree cover." ... now that the chief qualification to climb Everest is a large checking account balance, and luxury cruisegoers to Antarctica can snap penguin-packed selfies without having to miss their predinner cocktails. Africa is probably the continent most mysterious to North Americans. Madagascar, the massive island nation sometimes called the Eighth Continent because of the uniqueness and diversity of its flora and fauna, is Africa's Africa — an even less-known place. Which makes the Tsingy, as Winston Churchill once said of another strange land, a riddle wrapped in a mystery inside an enigma.
A Ghanaian entrepreneur thinks he has the answer to Africa’s fake medicine problem ... Drug Lane runs through a market in the heart of Accra, Ghana. It’s past the office towers going up to the east of the central business district, past the pushy vendors with fake Louis Vuitton luggage, and past the women selling trays of raw beef under the midday sun. The alley bristles with signboards for pills, powders, and other substances. One store is packed to the rafters with boxes of painkillers and antibiotics. On the wall are two posters: One is for Coartem, a malaria treatment made by the Swiss drug company Novartis, and the other advertises something called Recharger, supposedly made from the male silkworm moth. ... Like 85 percent of the people selling medicine in Ghana, he isn’t a pharmacist. Most of his stock comes from China, India, and Malaysia, imported by Ghanaian distributors who supply everyone from “licensed chemical sellers” like him to actual pharmacies and hospitals. It’s a system so porous that as many as one in three medicines sold on Drug Lane could be counterfeit, according to the U.S. Centers for Disease Control and Prevention, compared with about 1 percent in the U.S. and Europe. The fake drugs often have no active ingredient at all, or just enough to pass quality-control tests, and visually they can be indistinguishable from the real thing. ... MPedigree sells software that manufacturers use to label individual packs of medication with a random 12-digit code hidden under a scratch-off panel on the packaging. When a person buys medicine, she can text the code to MPedigree for free and get an instant reply telling her whether the product is authentic.
The English colonial legacy bequeathed a serious tea habit to Kenya. A super-sweet brew boiled up in milk rather than water, tea is the drink of choice at home and in government offices. As the world’s leading black tea exporter, Kenya brings in about $1bn a year from its production, which totalled 450,000 tonnes last year, nearly 10 times as much as coffee production. But the up-and-coming consumer is plumping for coffee, across the city and into its fringes. ... Suleiman says he goes for coffee because “big men” drink it. Mahiti concurs: “We’ve always had tea, but coffee is something that wasn’t there before: it’s like a sign of success when you drink coffee.” ... “If you want to be identified as someone who’s on an upward track, where better to do that than in a public space where you’re spending only a buck and a half to have a cup of coffee and say ‘I’ve made it, I’ve arrived,’” says Ashley, who explains the company deliberately never hurries customers from tables, even if they nurse their cup for hours to eke out time and free WiFi. “It’s a very inexpensive way to demonstrate your rise up in society.”
In recent years, a growing number of African governments have issued Eurobonds, diversifying away from traditional sources of finance such as concessional debt and foreign direct investment. Taking the lead in October 2007, when it issued a $750 million Eurobond with an 8.5% coupon rate, Ghana earned the distinction of being the first Sub-Saharan country – other than South Africa – to issue bonds in 30 years. ... This debut Sub-Saharan issue, which was four times oversubscribed, sparked a sovereign borrowing spree in the region. Nine other countries – Gabon, the Democratic Republic of the Congo, Côte d’Ivoire, Senegal, Angola, Nigeria, Namibia, Zambia, and Tanzania – followed suit. By February 2013, these ten African economies had collectively raised $8.1 billion from their maiden sovereign-bond issues, with an average maturity of 11.2 years and an average coupon rate of 6.2%.
Bir Tawil is the last truly unclaimed land on earth: a tiny sliver of Africa ruled by no state, inhabited by no permanent residents and governed by no laws. To get there, you have two choices. ... The first is to fly to the Sudanese capital Khartoum, charter a jeep, and follow the Shendi road hundreds of miles up to Abu Hamed, a settlement that dates back to the ancient kingdom of Kush. Today it serves as the region’s final permanent human outpost before the vast Nubian desert, twice the size of mainland Britain and almost completely barren, begins unfolding to the north. ... The second option is to approach from Egypt, setting off from the country’s southernmost city of Aswan, down through the arid expanse that lies between Lake Nasser to the west and the Red Sea to the east. Much of it has been declared a restricted zone by the Egyptian army, and no one can get near the border without first obtaining their permission. ... Both nations have renounced any claim to it, and no other government has any jurisdiction over it.
Thomas Kelly, the American ambassador here, likes to say that Djibouti today feels like what Casablanca must have felt like in 1940. “All the different nationalities elbowing into each other,” he says. “All the intrigue.” ... About 4,000 soldiers and contractors live here, and they include commandos from Joint Special Operations Command, the team that undertakes the military’s most sensitive counterterrorism operations. After the 2012 attack on the diplomatic mission in Benghazi, Libya, a 150-member rapid response team was established at Camp Lemonnier, assigned to handle future threats to diplomatic personnel abroad. Djibouti is also the U.S. military’s regional hub for drones, and it sends thousands of Predators and Reapers across the region each year.
Uganda, in East Africa, is home to 37 million people and one of the poorest countries in the world. It’s perhaps best known for the dictator Idi Amin, who came to power in 1971 and murdered 300,000 of his countrymen during an eight-year reign. Although the country borders tumultuous South Sudan and the Democratic Republic of the Congo (DRC), Uganda today is an island of relative political stability. The economy hums. Shopping malls bloom around the capital. Its people, to generalize, are deeply religious, family-oriented, and averse to profanity. Winston Churchill dubbed Uganda the Pearl of Africa in part for its friendly people. ... It’s also one of the leading providers of mercenaries—or “private military contractors,” as the security industry prefers to call them. They are at once everywhere and nowhere. On TV, a company called Middle East Consultants runs advertisements looking for able-bodied young men to send to Dubai. Talk to taxi drivers as you bump along dirt roads in the capital, Kampala, and each has a friend or cousin or neighbor who raves about the fortune he’s made guarding some embassy or joining the war in Iraq. But official numbers and interviews with the kind of multinational companies that go to countries such as Uganda to find soldiers are hard to come by. ... A decade ago, after con men began running employment frauds on mercenary hopefuls, the Ministry of Gender, Labour, and Social Development created the External Employment Unit, an agency meant to track men leaving to serve abroad. ... Mercenary remittances surpassed coffee exports in 2009, according to the Ministry of Gender, Labour, and Social Development. Interpol’s Kampala bureau conducts roughly 1,000 background checks on Ugandans heading abroad for security jobs every month
There was no future, no jobs, said my companion. Corruption flourishes, he went on, so-called tenderpreneurs thrived, a breed who use inside knowledge to make a mockery of the tender process, inflating costs while lowering standards. ... A teacher-turned-trader, part-time entrepreneur and occasional taxi-driver, he owns a plot on which he grows maize — although not for his family: the crop is sent to relatives in the countryside. Reversing the traditional direction of trade, workers in the city are now feeding the farmers. The drought, the worst for three decades and embracing much of southern Africa, is taking its toll. ... Zimbabwe is far from “dead”. The country is free of religious divisions — although cursed by ethnic and clan tensions — and still has supportive neighbours, a battered but surviving infrastructure, a broad English-speaking skills base and a talented diaspora longing to return home. And above all, the military are still — for now — in the barracks.
Congo is one of the last frontiers in a global scramble for the world’s best-tasting coffee. The rise in demand for specialty coffee, which accounts for one of every two cups sold in the U.S., has encouraged exporters, roasters and retailers to go places where the potential is huge—and so are the risks. ... The many challenges of doing business in Congo include death threats, kidnapping and extortion. Government officials often concoct new taxes on the spot or forge documents to demand more money than what is owed. Last year, at least 175 foreigners and Congolese, many working for aid organizations, were abducted and held for ransom, according to Human Rights Watch. ... Most of the kidnappings happened in areas near where specialty coffee is grown, though no Western coffee prospectors have been abducted. ... Specialty coffee is a fast-growing segment of the approximately $175 billion-a-year world-wide coffee market. Specialty coffee is made from the highest-quality arabica beans, sells at a premium and has gone from the fringe to mainstream. In the U.S., 31% of adults drink specialty coffee every day, up from 16% in 2006, the National Coffee Association trade group estimates. ... Congo’s best beans regularly get at least an 85 and fetch a wholesale price of about $3 a pound, about double the price on the ICE Futures U.S. exchange in New York.
For every flight departing Dubai, as cabin crew head to their airplanes, the last room they traverse is a hall with mirrors on one side and windows to the tarmac on the other. The space allows workers to inspect themselves for perfection against a backdrop of government-owned taxiways thick with Emirates jets. That’s the airline, in one image: glamour and ambition in a framework of absolute control. ... Out in the desert, a half-hour drive from the coast’s skyscrapers and malls, the government is building a $32 billion, five-runway megahub precisely to Emirates’ specifications. Its ambitions are consonant with its name: Dubai World Central. The project will have a capacity of 220 million passengers per year, four times the number that New York’s John F. Kennedy International Airport serves today. ... the airline is at risk if those emerging markets don’t, in fact, emerge. Emirates in May reported its first-ever annual revenue decline and is cutting some of its plans for growth amid slackening demand from sub-Saharan Africa, Turkey, and Brazil. The slump has industry analysts wondering how Emirates will fill the staggering number of planes it has on order. ... From a fuel and flight-time perspective, the Persian Gulf is the most efficient place on the planet to connect Europe with Southeast Asia and Australia, and the U.S. with India. Strikes and protests aren't an issue—unions are banned, and rights to free speech and assembly are severely limited.
Investments into a vast network of harbours across the globe have made Chinese port operators the world leaders. Its shipping companies carry more cargo than those of any other nation — five of the top 10 container ports in the world are in mainland China with another in Hong Kong. Its coastguard has the globe’s largest maritime law enforcement fleet, its navy is the world’s fastest growing among major powers and its fishing armada numbers some 200,000 seagoing vessels. ... The emergence of China as a maritime superpower is set to challenge a US command of the seas that has underwritten a crucial element of Pax Americana, the relative period of peace enjoyed in the west since the second world war. ... China understands maritime influence in the same way as Alfred Thayer Mahan, the 19th century American strategist. “Control of the sea,” Mr Mahan wrote, “by maritime commerce and naval supremacy, means predominant influence in the world; because, however great the wealth of the land, nothing facilitates the necessary exchanges as does the sea.” ... The five big Chinese carriers together controlled 18 per cent of all container shipping handled by the world’s top 20 companies in 2015 ... The total size of these investments is difficult to calculate because of sketchy disclosure. But since 2010, Chinese and Hong Kong companies have completed or announced deals involving at least 40 port projects worth a total of about $45.6bn
The capital of the Kunene region, Opuwo lies in the heartland of the Himba people, a semi-nomadic people who spend their days herding cattle. Long after many of the world’s other indigenous populations had begun to migrate to cities, the Himba had mostly avoided contact with modern culture, quietly continuing their traditional life. But that is slowly changing, with younger generations feeling the draw of Opuwo, where they will encounter cars, brick buildings, and writing for the first time. ... How does the human mind cope with all those novelties and new sensations? By studying people like the Himba, at the start of their journey into modernity, scientists are now hoping to understand the ways that modern life may have altered all of our minds. ... Like an irregular lens, our modern, urban brains distort the images hitting our retina, magnifying some parts of the scene and shrinking others.
Driven by economics (a hunger for resources and new markets) and politics (a longing for strategic allies), Chinese companies and workers have rushed into all parts of the world. In 2000, only five countries counted China as their largest trading partner; today, more than 100 countries do, from Australia to the United States. The drumbeat of proposed projects never stops: a military operating base, China’s first overseas, in Djibouti; an $8 billion high-speed railway through Nigeria; an almost-fantastical canal across Nicaragua expected to cost $50 billion. Even as China’s boom slows down, its most ambitious scheme is still ramping up: With the “One Belt, One Road” initiative — its name a reference to trade routes — President Xi Jinping has spoken of putting $1.6 trillion over the next decade into infrastructure and development throughout Asia, Africa and the Middle East. The scheme would dwarf the United States’ post-World War II Marshall Plan for Europe. ... China’s relationship with Africa goes back to the 1960s, when Chairman Mao Zedong promoted solidarity with the developing world — “Ya Fei La,” as he called it, using the first syllables for Asia, Africa and Latin America. Though it was poor and mired in the chaos of the Cultural Revolution, China won new allies in Africa by finishing, in 1976, a 1,156-mile railroad through the bush from Tanzania to Zambia. Aid continued to trickle in, but there were no other big projects for nearly 30 years
There are about as many people living without electricity today as there were when Thomas Edison lit his first light bulb. More than half are in sub-Saharan Africa. Europe and the Americas are almost fully electrified, and Asia is quickly catching up, but the absolute number of Africans without power remains steady. A World Bank report, released in May, predicted that, given current trends, there could still be half a billion people in sub-Saharan Africa without power by 2040. Even those with electricity can’t rely on it: the report noted that in Tanzania power outages were so common in 2013 that they cost businesses fifteen per cent of their annual sales. Ghanaians call their flickering power dum/sor, or “off/on.” Vivian Tsadzi, a businesswoman who lives not far from the Akosombo Dam, which provides about a third of the nation’s power, said that most of the time “it’s dum dum dum dum.” The dam’s head of hydropower generation, Kwesi Amoako, who retired last year, told me that he is proud of the structure, which created the world’s largest man-made lake. But there isn’t an easy way to increase the country’s hydropower capacity, and drought, caused by climate change, has made the system inconsistent, meaning that Ghana will have to look elsewhere for electricity. “I’ve always had the feeling that one of the main thrusts should be domestic solar,” Amoako said. “And I think we should put the off-grid stuff first, because the consumer wants it so badly.” ... Electrifying Africa is one of the largest development challenges on earth. Until recently, most people assumed that the continent would electrify in the same manner as the rest of the globe. ... Solar electricity, on the other hand, has become inexpensive, in part because the price of solar panels has fallen at the same time that the efficiency of light bulbs and appliances has dramatically increased. ... It will be years before it makes financial sense for solar companies to expand to the most remote and challenging regions of the continent.
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