“Commitment to the national constructive dialogue has enabled meaningful progress towards the settlement of differences and building an effective, lasting and sustainable peace which provides the necessary environment for the strengthening of national unity, reconciliation and resumption of the country’s economic growth.” President Filipe Nyusi
Mozambique’s economy is on the rebound; within the first half of 2018, it grew at the rate of 3.2%, inducing declines in interest rates and the stabilisation of its currency. “The medium-and long-term prospects for the Mozambican economy are excellent,” states Dr Rogério Zandamela, Governor of the Bank of Mozambique. “We have already calibrated our instruments to ensure macroeconomic and financial system stability to provide greater predictability to economic agents in their decisions to save and invest.” The International Monetary Fund (IMF) has also stated that in 2019, the Mozambican economy could grow between 4% and 4.7% (higher than the 3.5% forecast for 2018). The main reasons for this are the government’s focus on peace, as well as its relaxation of monetary policy and fiscal consolidation resulting in improved ease of doing business.
Hydrocarbon research and production underway in the north of Mozambique are also key to the nation’s transformation and growth. The recent discovery of enormous reserves of hydrocarbons is set to position Mozambique as one of the world’s leading liquefied natural gas (LNG) exporters. The Mozambique LNG Project is Mozambique’s first ever onshore LNG development and, according to Omar Mithá, Chairman and CEO of ENH, “is an integrated project: upstream and mainstream, two trains, with a 5.6 million capacity each to produce 12 million tonnes per annum.” The Project will also initially supply volumes of approximately 100 million cubic feet per day of natural gas for domestic use in Mozambique, and is expected to have a future expansion of up to 50 million tonnes per annum. “Our major goal is then to construct both the offshore developments and the two onshore LNG processing trains and associated facilities safely, on time and on budget,” explains Steve Wilson, Anadarko’s Vice President & Country Manager. The South Coral Project and the Rovuma LNG Project is the first project in the development of the (approximately) 450 billion cubic metres of gas in Rovuma Basin’s Area 4. The Plan of Development foresees the drilling and completion of six subsea wells and the construction of the FLNG. It is also the first Project Finance ever arranged in the world for a liquefaction floater. Alessandro Nanotti, General Manager Upstream of Mozambique Rovuma Venture S.p.A., explains; “The insurance on the project is the largest ever done on the whole value of the vessel, in which partners will invest seven billion dollars. The project-financing is the largest ever ensured in Africa and we believe that we will contribute to the economic recovery of the country.”
Abundant natural resource wealth and the nation’s fertile, arable land, has placed Mozambique on the foreign direct investment (FDI) map. “Mozambique has vast unexploited mineral resources, large areas of arable land with ample ground water, 2400 kilometres of coastline with underexploited marine resources and pristine beaches as potential leisure destinations,” explains Jose Parayanken, President of Mozambique Holdings Limited. Mozambique’s Economic and Social Plan (PES) 2019, reveals that the nation’s commitment to diversification and inclusive growth will ensure strong performances in mining, fisheries and agricultural sectors. Its potential in energy generation though renewables and EDM’s introduction of new technologies aims to electrify the whole nation by 2025, while improved exchange control, local content law and Nacala Logistics Corridor are encouraging domestic production, generating jobs and enhancing income potential. MD Ramesh, President and Head of Olam in south and east Africa, states: “We are trying to ensure that farming communities do well and create wealth for themselves so that they can decide how they can use that wealth.”
With a favourable trading environment and current investment in infrastructure, Mozambique is ready to live up to its full potential at last. “Mozambique has competitive advantages in terms of position, resources and our people are very determined and work hard,” declares Samuel Samo Gudo, President of Escopil. “We are now building strong government institutions which is making Mozambique more sustainable in the long-run.”
IWG GROWTH IN AFRICA – FRANCHISE OPPORTUNITIES
Flexible working is growing rapidly, with IWG’s continued expansion across its operating brands, seeing another 156 new locations opening in 34 countries around the globe
The company has established 156 locations across 34 countries across its operating brands, since the turn of the year, continuing its mission to service a flex working revolution. Add to this the expansion of their franchising model into the African continent and they are on track to reach their target of increasing their presence in the 1,000 cities and towns where they already operate.
Flexible working, sometimes known as co-working, refers to office space, meeting rooms and co-working areas that can be rented by individual workers or corporates from one hour to several years.
A report by consultancy firm The Instant Group found demand for flexible workspace globally increased by 19% last year, stating that the growth in the supply of flexible space was ‘the number one story’ in commercial property markets around the world.
John Williams, head of marketing at The Instant Group, put the growth down to two factors, a change in how large companies were operating – specifically in relation to flexible working practices – and changes to the nature of the workforce itself.
A reluctance by major companies to sign long-term lease agreements in order to stay financially flexible was also a driver according to Williams.
“Market demand is growing by as much as 30% each year in some global markets and it is our understanding that the majority of companies are still not aware of their options in flex space, they are still learning about the types of space they can access and the costs involved,” Williams says.
Two major brands that have used Regus to grow in Africa are Google and P&G. Google has 50 employees with Regus in Kenya, and P&G has 100 employees in the country.
Though they have the finances and resources to build their own offices, startup costs can be expensive, and getting an office up to spec with high-speed broadband, useable meeting rooms and desk space can take up valuable time.
Plus, using flexible office space reduces the commitment for these big organisations, many of whom are still testing the water in new African cities.
A report on the Future of Work in Africa released by the World Bank, shows that access to digital technologies could set Africa on a different path to the rest of the world.
While there is globally a focus on new and old sectors, in Africa digital transformation will predominantly enable advances in productivity and efficiency in current sectors.
IWG is currently seeking driven landlords, private equity firms, multi-brand franchise operators and high net-worth individuals to partner with to buy into the lucrative flexible working market at attractive returns.
With the first franchise centre already open in Angola and new centres opening in Guinea and Djibouti in September, the company is determinedly targeting the African continent for development and investment opportunities for early adopters of the franchising model.
Eligible franchisees will commit to opening a prescribed number of centres within a period of 5 years, have a proven track-record in business, property or investment and will work closely with Regus to find and design ideal locations and uphold IWG’s strict operating standards.
In return, franchisees buy into an established global brand that provides multiple revenue streams including monthly memberships and referral fees; leverage their highly effective marketing strategy and global sales platform, which generates 100,000+ enquiries every month; have access to IWG’s entire network of world-class operational support; and diversify their investment portfolio to include an industry that will have created 30 million jobs across 16 of the world’s countries by 2030.
Nigeria’s Manufacturing Power Couple On The Future Of Manufacturing In Nigeria
Chief Razak Okoya: Chairman Eleganza Group And Rao Property Investment Company
Chief Razak Okoya is an industrialist who has managed to transform a small trading company into one of the largest conglomerates and indigenous manufacturers of household products in Nigeria.
As founder of Eleganza Group and leading property investment company RAO Property, he employs about 5000 people across Nigeria. In his interview with Forbes Africa, he discusses the trends that will influence the competitive Nigerian Manufacturing sector in the next decade.
Chief Folashade Noimat Okoya: Managing Director, Eleganza Industrial City
Chief Mrs. Folashade Okoya has been at the helm of affairs of the Eleganza Group and RAO Property Investment for the past decade using her strong entrepreneurial drive to further strengthen the goodwill of both organizations and its corporate positioning in Nigeria.
Under her watch, Eleganza Group has risen to new heights strengthening its position as a leading indigenous brand in Nigeria as well as one of the benchmark manufacturing companies in the country.
She talks about the stigma of women in manufacturing and the need for greater automation in the manufacturing process in Nigeria.
Nigeria’s Biggest Corporations: A Pan-Nigerian View To The World
At the beginning of the Japanese Economic Miracle, were the likes of
Akio Morita – Co-founder of Sony. In setting a Mission for Sony, Morita had
resolved to set for Sony Corporations the Mission to make Japan known for quality at a time the country was known for cheap-copycat product. It is indeed in this vision, that True Nigerian Experience was founded with a mission to showcase the Best of Nigeria.
According to the International Monetary Fund in 2018, Nigeria is regarded as the biggest economy in Africa with a Gross Domestic Product of about $400 Billion Dollars – Leading the entire 54 African Economies both in Population of over 180 Million people and GDP.
The Nigerian Economy is ranked the 30th largest Economy in the World. To mention a few, Nigeria’s Nominal GDP is bigger than the Republic of Ireland (US $373 Billion), Israel (US $370 Billion), Hong Kong (US $363 Billion), Singapore (US $361 Billion), Malaysia (US $354 Billion), Denmark (US $351 Billion), Colombia (US $333 Billion), Philippines (US $331 Billion), Chile (US $298 Billion), Finland (US $275 Billion), Czech Republic (US $242 Billion), Romania (US $ 240 Billion), Portugal (US $239 Billion, Peru (US $225 Billion), Greece (US $219 Billion), New Zealand (US $203 Billion) and over a hundred other countries’ economies in the World.
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