Photo by: Kelechi Amadi-Obi (www.kelechiamadiobi.com)

Africa’s Mr Development

In the end there was only one way in and one way out of the besieged city of Sarajevo during the final months of the 1990s Bosnian War, after the air traffic had finally surrendered to the small arms fire peppering aircraft fuselages and the unnerving radar locks of surface-to-air missiles.
The era of the easy route to war for journalists was over. They could no longer hitch a ride on humanitarian dawn flights, from Italy and Germany (boarding conditional on bringing your own flak jacket), to arrive for a late breakfast at Sarajevo’s Holiday Inn near Sniper Alley.
The only route for diplomats, aid workers and journalists to the city was a contour road, more like a goat track, traversing Mount Igman’s precipitous ravines and regarded as one of the world’s most dangerous. The final 60 kilometers to Sarajevo was under the sights of Serbian artillery and mortars; the last 25-kilometer stretch was exposed to heavy machine gun fire.
News cameraman Brian Green and a Danish colleague ran the gauntlet in 1995, with no military escort in an armoured Chevrolet Blazer weighing three or four tons. They traveled under the cover of night, without headlights, along the rain-slicked road.
Deep in the danger zone, a wheel sunk into the road’s soft mud; the two dug themselves out desperately, engine revving and wheels spinning, amid the fear of alerting Serbian forces. Arriving on the city’s outskirts at 4AM, caked in mud and knowing the journey was almost done, they were left stranded in no-man’s land for a couple of hours before the French foreign legionnaires, deployed under UN auspices, allowed entry. This was to be Green’s final war assignment.
“It was a little bit crazy. I was supposed to go for a week and ended up being there for 21 days and you basically lose control when you go into that type of environment. I thought maybe it was a bit silly with a young wife and kid,” says Green.
Sarajevo hosted the 1984 Winter Olympics and eight years later the ski slopes were used as gun emplacements to pound the city with artillery; the ski chalets commandeered for barracks. During the 44-month siege the city averaged 329 daily shell impacts, with every building in the city damaged and 35,000 reduced to rubble.
The Serbian snipers provided the unremitting terror, perching in the foothills to hunt for their victims in the streets below. All residents were fair game, including journalists.
Despite the risks, it was a difficult job to walk away from.
“I loved the element of danger, recording history. It was just absolutely fantastic,” says Green.
In 1992, between covering Middle East wars and the death throes of South Africa’s apartheid state, Green and his wife Lulu bought a house in Johannesburg’s old eastern inner city suburb, Bezuidenhout Valley.
“We bought it for R40,000 ($2,800), fixed it up for R40,000 and sold it for R130,000 ($9,100) a couple of years later.”
Green had at first viewed the renovation through the lens of a fast yield, but it was the process that he found most rewarding. With hindsight he realizes the satisfaction was “to breathe new life into old buildings, giving them modernity and dignity.”
However, he brushes off any common ground between war reporting and property development, as he enters one of the rehabilitated buildings on a 30,000-square-meter piece of previous Lorentzville urban decay, several hundred meters from his property investment 25 years earlier.
<div id="attachment_35122" style="width: 510px" class="wp-caption aligncenter"><img aria-describedby="caption-attachment-35122" decoding="async" loading="lazy" class=" wp-image-35122" src="https://www.forbesafrica.com/wp-content/uploads/2018/01/Victoria-Yards-16-300x200.jpg" alt="Victoria Yards" width="500" height="333" />Victoria Yards (Photo by Guy Oliver)</div>
His latest venture, Victoria Yards, was once the site for the steam washing of the soiled cloth nappies of the city’s middle class offspring. Among the development’s shareholders are Green and his partner Mark Batchelor, and the Enthoven and Brozin families behind Hollard Insurance and the international peri-peri chicken chain Nando’s.
The walls of Green’s Victoria Yards’ “office for now” are draped with signed limited edition prints by Thomas Pakenham, author of the critically acclaimed chronicle of Africa’s colonization, The Scramble for Africa, who in later life went off script to publish his haunting and evocative photographic portraits of trees.
<a href="http://www.forbesafrica.com/entreprenuers/2017/10/10/weworks-20-billion-office-party-crazy-bet-change-world-business/" target="_blank" rel="noopener">READ MORE: WeWork&#8217;s $20 Billion Office Party: The Crazy Bet That Could Change How The World Does Business</a>
Green is inspecting a collection of rusted iron horse shoes found at the site with the same delight as a conchologist, while sitting amid regimented rows of industrial light shades imported from India and awaiting installation. He speaks of Mogadishu’s colonial-era Italian classical buildings, Sarajevo’s Islamic architecture, Johannesburg’s “homogenized” mall culture disfiguring and vandalizing the city scapes and a holiday in the Mozambique capital during its civil war.
“I always saw potential in dereliction. I remember going to Maputo in 1989 with my wife and finding a f***ed-up house. And all we could see was how beautiful it was and how we would so love to fix it.”
<div id="attachment_35123" style="width: 510px" class="wp-caption aligncenter"><img aria-describedby="caption-attachment-35123" decoding="async" loading="lazy" class=" wp-image-35123" src="https://www.forbesafrica.com/wp-content/uploads/2018/01/Victoria-Yards-44-300x225.jpg" alt="Victoria Yards Brian Green" width="500" height="375" />Victoria Yards (Photo by Guy Oliver)</div>
The disposable nappy ended the reusable cloth nappy cleansing era and when Green and his shareholders acquired the property, in 2016, there were an array of small businesses operating; from chop-shops to carpenters and a film set company responsible for the props of the Oscar-nominated South African sci-fi movie District 9.
Green has eschewed replicating the success of his 44 Stanley mixed use development of restaurants, bars and boutiques, that emerged from a western Johannesburg suburban no-man’s land or pandering to the artist and creatives’ colonies in the adjacent inner city suburbs of Troyeville, Bezuidenhout Valley and Doornfontein.
“There has been a massive interest from the art world… But we want artisans. Cobblers, embroiders, potters, tattoo artists, glass blowers, knife makers, those kind of guys.”
There are exceptions to the Victoria Yards’ ideal. The South African artist Ayanda Mabulu, whose explicit sexual metaphors of Jacob Zuma’s South African presidency has drawn ire and praise in equal measure, is taking up residence, along with former teenage delinquent and armed robber Blessing Ngobeni, who reinvented himself to become an acclaimed surrealist artist.
Victoria Yards “needs to look at other ways of resurrecting the place… the area is very poor. There would be a backlash towards gentrification, because what you do is come here, make a nice place and then eject the locals. That’s not cool,” says Green.
<div id="attachment_35124" style="width: 510px" class="wp-caption aligncenter"><img aria-describedby="caption-attachment-35124" decoding="async" loading="lazy" class=" wp-image-35124" src="https://www.forbesafrica.com/wp-content/uploads/2018/01/Victoria-Yards-15-300x200.jpg" alt="Victoria Yards Brian Green" width="500" height="333" />Victoria Yards (Photo by Guy Oliver)</div>
However, the development is not to be confused with philanthropy.
“We are businessmen. We have to make a profit and if we don’t make a profit, I don’t want to be here. We have to make a percentage yield from our investment. But I also think we can improve people’s lives.”
The sprawling property feels too limited for Green’s eclectic designs.
“We want an ecosystem where people can feed off each other”.
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There is talk of a foundry where the film set building operation once was.
“The Cuban ballet school was looking at the place.”
Urban farming is a given, with orchards and food gardens, cooking schools, test kitchens, a tool hire shop renting work tables on short term leases.
“We want a baker, a coffee roaster, a framer, metalworkers.”
Green’s free-wheeling vision might be confused with a hipster on hashish, but there are sound business fundamentals of the value chain underlying it, coupled with the want to provide opportunity for artisans.
Neighboring Victoria Yards is Nando&#8217;s global head office. By 2025, the purveyor of spicy chicken will have 2,100 outlets worldwide. Every six years the stores are refurbished, with the proviso that franchisees source 75% of their interior decor from South African artisans and artists.
“It’s a hungry machine,” says Green, and the Victoria Yards’ tenants will be ideally positioned to feed it. &#8211; Written by Guy Oliver

The War Cameraman Who Saw Gold In Shells

It is a hot, windy summer’s day in Road Port, Harare. A Coca-Cola can blows merrily down the street. The can has freedom many others here envy. This place is seized by an oppressive gloom. It is filled by a crowd of people pushing, shoving, shouting, buying and selling. There is dirty water flowing down the street and litter fills the potholes. Yet, this grubby place is seeing more trade than Zimbabwe’s biggest banks. Here, the black market is king and the new bond notes are pawns that can be sacrificed.
“The bond notes came recently and we are business people so we have already seen an opportunity to make a bit of money. We don’t see bond notes as having any sort of value, if you have 100 bond notes, I will give you US$70,” says Tapiwa Makoni, an informal money trader.
The Reserve Bank may say bond notes are 1:1 to the US dollar; the free market says no.
“People are already getting desperate for US dollars, especially when they are traveling out of the country. They are happy to get any real currency from us at whatever rate,” he says.
It all began in May, when the Reserve Bank Governor, John Mangudya, announced the bond note. Mangudya argued the notes would ease the cash crisis that saw the US dollar become scarce. It was going to come in gradually.
“The Reserve Bank has established a US$200 million foreign exchange and export incentive facility which is supported by the African Export-Import Bank to provide cushion on the high demand for foreign exchange and to provide an incentive facility of 5 percent on all foreign exchange receipts, including tobacco and gold sale proceeds,” says Mangudya.
The bond notes don’t seem to be helping much; as they too are restricted. The withdrawal limit of bond notes is $50 per day and a $150 per week.
Despite the introduction of the bond notes – that were touted by authorities as a solution to the liquidity crisis – there seems to be little improvement.
“There is a shortage of bond notes and there seems to be less US dollars on the streets. We used to get US$100 a day, but now my bank gave me only US$50 and 25 bond notes. The money is not enough because I need cash for my buying and selling business,” says a Harare trader who refused to be named.
Neville Mandimika, Africa Strategist at Rand Merchant Bank, says the bond notes are non-convertible.
“It is by decree that it is 1:1. The problem we are facing now is that because of the misunderstanding, fear and mistrust currently circulating in the economy, the US dollar is beginning to trade against itself because actual cash is more valuable than money in the bank because of the cash shortages. So [1:1] is of theoretical value but on the street, the market is saying otherwise,” says Mandimika.
According to Mandimika, the panic and kneejerk reaction has seen people holding on to their US dollars and moving it out of the country, which mitigates against the cash crisis being eased.
“That’s why the campaign by the authorities has been to reassure the market that this is not a fully-fledged return of the Zimbabwe dollar… The bond notes will spur inflation but not hyperinflation; at least we are not there yet… Everyone is trying to adjust.”
People have to adjust to it. If you have banked money in US dollars, you may get it in bond notes. This is not a currency and can’t be traded for another currency. Mandimika says Zimbabwe is likely to continue decelerating on a multi-quarter basis because of the debilitating liquidity crisis that continues to grip it.
“The continuation of the liquidity crunch has fueled the rise of the parallel market (US dollars are trading at a premium to the bond notes) which will likely add to the inflationary pressures. Although the latest inflation prints (November 2016), shows the year-on-year figure is still negative but month-on-month numbers suggests renewed inflationary pressure. This will likely be the trend for this year in the absence of a more permanent solution to the liquidity crisis,” he says.
It means the bond notes have been met with mounting anger and questions of legality. The city is full of protest banners mounted on brick walls, advertising billboards have #NoToBondNotes plastered all over them. Peaceful protesters are thrown into jail. One of them was Fadzayi Mahere, an advocate of the High Court and Supreme Court of Zimbabwe.
“Peaceful demonstrations are a constitutional right under Section 59. A demonstration had been organized by another entity, we believed in the cause. Unfortunately the organizers got abducted so the demonstration couldn’t happen,” says Mahere.
Once Mahere and her friends got news of the abduction, they decided to sit peacefully in the park. A handful of police came and ordered her and seven others into police vehicles.
“[Our rights weren’t read to us] in fact, we weren’t informed of the charges we were facing at that time. As citizens we are required by the law not to resist arrest so we went with them to the police station&#8230; We weren’t told about what charges we were facing until later on in the evening. We were asked to pay an admission of guilt fine and as a matter of principle, I was not prepared to admit guilt… the charges we were faced with were unfounded and trumped up,” says Mahere.
This meant spending the night in a filthy cell at the Harare Central Police Station. The tiny cell is cold and dark. There are no mattresses and blankets are infested with insects. The toilet is broken and water and urine floods the floor where some have to sleep, and no sanitary towels available.
“This is degrading to anyone. No one should be subjected to such conditions, even if you are held in cells pending trial. It was a long night. I am grateful I was in a group so there were moments of humour,” she says.
Mahere says, as unlawful as their arrest was, so are the bond notes. She says the term “bond note” is not defined anywhere in the Reserve Bank Act or the Banking Act.
“Bond note is not a term of conventional economics but an invention on the part of the Governor. It is clear that the law does not empower the Governor to create this, with respect, fictitious money,” says Mahere.
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However, Patrick Chinamasa, Minister of Finance and Economic Development, argues, in a statement, that under existing legislation, the Reserve Bank of Zimbabwe has the power to issue bond notes.
“I need to highlight that under existing legislation the Reserve Bank of Zimbabwe has power to issue Bond Notes in terms of the provisions of Section 7 of the Reserve Bank of Zimbabwe Act Chapter (22:15). The Export Incentive Scheme could also have been introduced through Section 2 of the Exchange Control Act (Chapter 22:05) which empowers the President to make regulations relating directly or indirectly to exchange transactions and the control of imports into and exports from Zimbabwe, and payments,” says Chinamasa.
Mahere, however, argues that the Reserve Bank Act authorizes issuing Reserve Bank vouchers, not bond notes, when there is a shortage of currency of any denomination to pay civil servants or employees of the state.
“The shortage must be shown to require urgent action in the interests of public order or the economic interests of the state. The justification given by the Governor for the creation of bond notes is, therefore, inconsistent with section 42B of the Reserve Bank Act. The Governor’s justification for the curious move relates to foreign exchange stabilization and an unsatisfactory attempt to ease the cash crisis.”
“Within a few months, because we are such an import driven economy, when people are trying to replenish their stock, we will see what happens, we will see what our government does when it has the scope of printing money. We have seen that in 2008,” she says.
Mahere adds that her problem is not the bond note itself but the refusal by government to address issues at their root and attend to the fundamental causes to economic problems in Zimbabwe.
According to the Reserve Bank, the Retailers Association of Zimbabwe, fuel companies, representatives of the various business associations and the Consumer Council of Zimbabwe agreed on the use of bond notes as a medium of exchange in the country. Most traders are accepting the bond notes but worry about their future.
“I hope this will not be a repeat of 2008 where government will start printing money that is actually worthless. I have to buy my stock in South Africa because no company makes the hardware I sell here. I heard some petrol stations are already rejecting it,” says Clive Moyo, a cabinet and coffin handle trader.
The argument goes on. What is clear is people are buying and selling pieces of paper they aren’t sure about.

It Is Bond Belief

At’s a regular weekday in Kigali’s lively central business district where single-storied shop tenements, with tables heaving with African artefacts, jostle with gleaming commercial towers. On the arterial street by the high-rise Bank of Kigali, vendors hawk cheap clothing, and shops smelling of dust and sweat sell colorful jewelry and bric-a-brac. Most have a cash-only policy, a far cry from the bank next door, which, in its sprawling air-conditioned halls, doles out digital payment solutions for Rwanda’s consumers.
<div id="attachment_28650" style="width: 616px" class="wp-caption aligncenter"><img aria-describedby="caption-attachment-28650" decoding="async" loading="lazy" class="wp-image-28650 size-full" src="http://www.forbesafrica.com/wp-content/uploads/2017/05/Daniel-Monehin-Division-President-MasterCard-Sub-Saharan-Africa.jpg" alt="" width="606" height="902" srcset="https://cms.forbesafrica.com/wp-content/uploads/2017/05/Daniel-Monehin-Division-President-MasterCard-Sub-Saharan-Africa.jpg 606w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/Daniel-Monehin-Division-President-MasterCard-Sub-Saharan-Africa-300x447.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/Daniel-Monehin-Division-President-MasterCard-Sub-Saharan-Africa-600x893.jpg 600w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/Daniel-Monehin-Division-President-MasterCard-Sub-Saharan-Africa-202x300.jpg 202w" sizes="(max-width: 606px) 100vw, 606px" />Daniel Monehin Division President MasterCard Sub-Saharan Africa</div>
But the services-savvy Rwanda is proving it’s ahead of most African countries on innovations, not just in the financial space, but in general. As laid out in its Vision 2020 strategy, it aims to include 90% of its citizens in the financial mainstream. ‘Cashless Rwanda’ are the new buzzwords in the corridors of power.
At the World Economic Forum held here in May, Rwanda’s government signed a deal with Mastercard, the technology company in the global payments industry, to promote the move to a cashless economy. High on Rwanda’s agenda is digitization of school fees and national healthcare claim payments.
At the announcement, Francis Gatare, CEO of Rwanda Development Board (RDB), had said: “We are confident Rwanda’s partnership with Mastercard will be beneficial to the country and its citizens as we are implementing our vision of becoming a knowledge-based service-oriented economy. I believe this can only be achieved as we embrace the fourth industrial revolution.”
The MasterCard Center for Inclusive Growth has committed up to $1 million over the next three years to advance economic growth and financial inclusion in the land of a thousand hills.
The country, which famously triumphed over tragedy since the genocide against the Tutsi in 1994, is now up for the challenge of embracing technology to overcome concerns like financial literacy and inclusion of the rural poor, who are mostly still reliant on cash.
How big is the cash economy in Africa?
“According to a recent McKinsey report, two billion people remain outside of the formal economy. Various studies confirm over 90% of retail transactions in sub-Saharan Africa are in cash,” says Daniel Monehin, who leads Mastercard’s business across sub-Saharan Africa as Division President.
“In Rwanda, only 42% of adults own a financial account, whether formal or informal… We know that government cannot achieve financial inclusion alone, and neither can the private sector – we need to work together.”
In September, Bank of Kigali, RwandaOnline and Mastercard launched Irembo – an online payment solution to make online payments safer, simpler and smarter.
RwandaOnline developed Irembo, including six government engines, allowing Rwandans to make online payments to any of these government entities through the use of debit, credit or prepaid payment cards. Residents can pay for driver’s licenses, birth certificates, and identity cards. The portal also allows travelers to Rwanda to apply and pay for travel visas.
<div id="attachment_28649" style="width: 760px" class="wp-caption alignnone"><img aria-describedby="caption-attachment-28649" decoding="async" loading="lazy" class="wp-image-28649 size-full" src="http://www.forbesafrica.com/wp-content/uploads/2017/05/Raghu-Malhotra-MM.jpg" alt="" width="750" height="499" srcset="https://cms.forbesafrica.com/wp-content/uploads/2017/05/Raghu-Malhotra-MM.jpg 750w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/Raghu-Malhotra-MM-300x200.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/Raghu-Malhotra-MM-600x399.jpg 600w" sizes="(max-width: 750px) 100vw, 750px" />Raghu Malhotra</div>
“At Mastercard, we don’t limit our thinking to ‘traditional’ versus  ‘new’ – we explore what is going to meet the needs of a market and its citizens as there is not one solution that can meet all needs. Rather our focus is on creating a ‘world beyond cash’, developed through partnerships and driven by advances in technology,” says Monehin.
Indeed, Rwanda’s aim for a cashless culture is good news for the city’s new innovators and entrepreneurs.
Afshon Wallace, the 26-year-old founder of 250 Taxi, a web-based transport solutions provider connecting riders and taxi drivers using a mobile app and website, launched earlier this year, says it’s encouraging. Wallace says he caters mostly to expatriates and is witnessing growth of up to 100%.
“The cashless payments ecosystem in Rwanda is still in its infancy. The government’s push for paperless payments through the smart Rwanda master plan has been a great boost and great sensitization programs are being carried out by many players,” says Wallace.
But there are myriad challenges.
“The population lacks the adequate financial awareness on cashless payments. We have had less than three percent of our users asking whether they can use cards.”
Wallace says compared to the M-Pesa service in neighboring Kenya that has seen great success, locally, mobile money is still to catch up.
Yet, products such as Tap&amp;Go (smart cards enabling cashless payments) on Kigali’s public buses are becoming popular.
“We have huge government support when it comes to e-payments,” says Patrick Buchana, the 26-year-old CEO of AC Group, who started Tap&amp;Go in 2015.
David Karuletwa, the Rwandan-Canadian COO of RSwitch, a financial interoperable solutions company, whose passion is financial inclusion using fintech, says Rwanda is primed to be a hub for financial services.
In 2010, RSwitch launched Rwanda’s first debit card issued by banks in Rwanda and later rebranded it to SmartCash card.
“Rwanda and the entire pan-African market are paving the way for financial inclusion using mobile banking and payment solutions,” says Karuletwa.
From paper to e-payments, cash to cashless, Rwanda’s bank notes are moving out of the wallet into the world of www.

From Wallet To www

Once an epitome of slums, chaos and erosion, Lagos is now home to a new breed of entrepreneurs, creative netizens and socially responsive leaders. They’re dealing with the demons of development, placing their bets on the commercial magic of the city and fomenting plans to benefit from the spasms of a city in search of its soul and a smart future.
With roughly 20 million people, Lagos is Africa’s most congested city, and the gateway to the continent’s biggest economy. Arguably one of the reasons why Nigeria is Africa’s most populous nation, the city and its environs represent the most economically significant aspects of life in Nigeria. According to the UN, Lagos will be the world’s third largest city by 2025, with 25 million people, and will need to provide shelter for 77 million by the end of the century.
Its excruciating population, coastal location and complex political economy, makes it a perfect melting pot, a bazaar of pain and pleasure, an investor’s haven. For a city which welcomes a new arrival almost every minute, Lagos is literally a pressure cooker, an addiction, a habitat for struggling software gurus and literary Lilliputians, a testament to human resilience and surely, its proclivity for concocting fame, fortune, disaster, adventure and adversity.
“Lagos is without a doubt the engine of Nigeria’s economy,” says Niji Adelagun, CEO of IQ Systems Solutions. “The place has always been driven and defined by its constantly evolving demographics, ambition and the quest for identity.”
Lagos is largely responsible for the nation’s burgeoning “lifestyle economy”: the proliferation of leisure and entertainment establishments, art galleries, music dens like Fela Kuti’s Africa Shrine, and Freedom Park, once a colonial jail house and now an open space where art and literary cognoscenti converge for shows, recitals and festivals.
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The gods of the marketplace also like Lagos. Its fabled open-air markets (in Badagry, Balogun, Oke-Arin, Oyingbo and Mile 12) continue to receive bargain hunters from as far as Bouaké in Côte d’Ivoire, Bobo-Dioulasso in Burkina Faso, Banjul in Gambia and Bamako in Mali. Telecoms operators Airtel, Etisalat, Glo, MTN and new entrant NTel all have their head offices in Lagos. The Lagos-based Nigerian Stock Exchange and the activities of financial institutions fuel commerce, manufacturing and job security nationwide.
Among the array of enterprising citizens in this space are Olaide Agboola and Obinna Onunkwo, two ex-bankers who quit their comfy jobs a few years ago to set up Purple Capital Partners Ltd, an investment, private equity and real estate firm. Still in their thirties, they are by no means the wealthiest or most prominent players in their field. They however represent an emerging class of risk taking, empire-building citizenry; a potent can-do spirit so abundant in Lagos.
The Purple Capital duo are helping to reshape the state’s retail, entertainment and lifestyle sectors: financing and developing a boutique hotel, bespoke residential apartments and malls across the state, in the process creating new jobs and rejuvenating the state’s agro-allied, construction, information technology, out-of-home advertising and logistics industries.
Partnering with Stanbic IBTC Bank and AXA Mansard Investments, their flagship project, the Maryland Mall, located in the Maryland district of the state will open later this year. Built at a cost of about $25 million, the development will possibly be the largest investment in retail infrastructure in Lagos by a private firm after Nigeria’s 2015 general elections.
Maryland Mall will have the largest outdoor LED screen in West Africa, cementing the mall’s status as a landmark with a remarkable outdoor character and atmosphere in tandem with world-renowned locations like Times Square in New York, and Piccadilly Circus in London.
Official government data shows that Nigeria attracted over $1.3 billion in investments into its formal retail sector over the last four years. Yet modern malls represent only around 3% of Nigeria’s retail space. As Lagosians welcome the stress-free shopping experience that modern markets represent, affinity to traditional African open-air markets, a cultural inertia to the glitz and glamour of shopping malls, remains strong.
Private, public sector partnerships, improved public administration of state resources and efficient tax administration has given Lagos a healthy balance sheet. It generates up to 67% of its income from within, with monthly revenues growing from $4 million in 1999 to more than $100 million presently.
<img decoding="async" loading="lazy" class="alignleft size-medium wp-image-4902" src="/wp-content/uploads/2017/05/shutterstock_244994926-300x200.jpg" alt="" width="300" height="200" />
The state has the best record for internally generated revenue and is also the largest debtor among Nigeria’s 36 states, with total domestic obligations of N268 billion (about $1.3 billion) as at December 2014, according to the Debt Management Office.
Citizens benefit from this deft management of public resources. A better lit, neater, better managed, safer and friendlier Lagos is emerging. Crime in Lagos in 2015 dropped with police recording 220 murders, 44 armed robbery and 25 kidnap cases. In 2012, state authorities set up Lagos Traffic Radio, Nigeria’s first radio station dedicated to traffic management.
The pervading poverty in the land however competes for space with an urban jungle of mansions, private jets, yacht clubs and an ever-growing presence of sleek automobiles. This contrasting visage is mostly visible in the Ikoyi, Victoria Island and Lekki peninsula areas of the state.
In the foreseeable future, new urban landscapes will rise out of the bowels of the old city. A new airport, petroleum refinery and port will bring life to the Lekki Free Trade Zone in the east of Lagos. And the Eko Atlantic Economic City, a Dubai-style development on land reclaimed from the Atlantic Ocean, will become a reality – concrete evidence of the state’s mega-city status.
With a new marina and 10 million square meters of prime real estate, Lagos’ position as West Africa’s financial capital is secure.
<h1>Barcelona to kick off in lagos?</h1>
In a bid to jumpstart local innovation and boost the productivity of citizens, the Lagos State authorities plan to provide loans to artisans, young entrepreneurs and start-ups via an Employment Trust Fund worth N25 billion (about $125 million).
The city hosted its first marathon in 30 years last February and soon Spain’s Barcelona FC will open a youth academy in Lagos.
“These developments showcase a paradigm shift in the governance of the state. Investors and the entire world are taking note,” says Steve Ayorinde, the state’s Commissioner for Information and Strategy.  He says Lagos State governor Akinwunmi Ambode’s priorities include “expanding the waterways to move more people, working on completing the light rail projects, and engaging the youths through the arts, entertainment, tourism and sports”.
“Lagos has a vibe, you just can’t put your finger on it, imagine I’m still in heavy traffic at 10PM!” says Peju Adebajo, CEO of Lafarge Africa’s cement subsidiary. “It’s everything from the attitude of Lagosians to entrepreneurs, to the unpredictability of the place and the succession of improving governance also means that more and more goods and services are attracted to Lagos despite the high cost, so housing and infrastructure has to develop around it.”
LafargeHolcim, parent company of Lafarge Africa, is working with government agencies and real estate developers to roll out mass housing schemes on the outskirts of Lagos, which technically are in nearby Ogun State. The authorities in Ogun State are keen to leverage their proximity to Lagos, using the New York-New Jersey model as its reference.
“We can’t continue to do mass housing on a bespoke basis anymore, we need to build modern, structured communities; that’s the only way we will begin to plug the huge gap in the housing sector,” says Adebajo.

Where Commerce,  Concrete  And  Culture Collide

South Africa needs a solid plan to deal with the more than $245 billion of backlogged infrastructure that is curbing industrial growth and social development.
A toxic cocktail of events and cruel circumstances continues to damage a hitherto world class industry that is vital for any planned economic revival.
The construction industry is suffering like never before. It is still shrinking from its 2008/9 peak, shedding several hundred thousand jobs, margins plunging to around 2% and little sign of relief.
The reality is that, despite political hot air, very little of the backlog of crucial infrastructure, needed to attract foreign and domestic industrial development, is being dealt with. As inaction continues, the capacity to deliver this crucial infrastructure is being destroyed, potentially leaving South Africa at the mercy of foreign influence.
The political influence that black business has in demanding an end to perceived white dominance of the sector, as well as the ratcheting of transformation demands and targets for black empowerment and black industrialization, drives a relentless, but necessary, agenda at a difficult time of negative growth.
In addition, many of the local construction groups have suffered reputational damage and have been heavily financially penalized by government for reported competition infringements.
The industry has suffered massive losses on major projects in South Africa, Africa and Australia, many of which are public sector projects which were poorly engineered and badly managed by both government and contractor.
Share prices have plummeted in recent years and skilled people have been eagerly sucked up by banks, consulting firms, mining and industrial companies.
The public view is negative, and notwithstanding the understandable loss of trust, the government has paid little attention to the damage to the South African economic revival that we all hope for.
The localization of the nuclear program and the infrastructure embedded in the National Development Plan are wishful thinking.
There is a new group of transformational CEOs appointed into many of the large construction groups. We realized a massive wake-up was required. The old guard had gone and we had to deal with the fallout and culture change required to root out historic anti-competitive behaviors and racist tendencies. We found we were not close enough to government and black business and we were not listening to the messages nor understood the outrage directed at the industry.
A few of us traveled a lonely journey trying to facilitate a new beginning and open dialogue between a diverse and relatively untransformed industry peer group leadership and the fragmented approach from four ministries that purported to have control or influence over the industry.
It was not until the chasm between traditional business and government claimed its first victims, through the heavy fines imposed by the Competition Commission and the threat of further action, that the attitudes of some of the diehard leadership among the peer group changed.
They had finally realized it could not be business as usual. Their anger was misplaced. Government and black business action was not about a perceived vendetta, it was fueled by the perceived exclusion of black business and broken trust in the construction leadership’s apparent lack of commitment to transformation and clean business.
After five years, the unproven remnants of the competition matter remains disputed. The Construction Industry Development Board (CIDB), the industry’s regulatory body, continues to threaten to impose blacklisting sanctions and state-owned corporations charged with implementing the major infrastructure works remain short of capacity and technical skills to be able to manage the projected infrastructure projects worth R4 trillion ($245 billion).
Yet the economy is screaming for the infrastructure to be built to attract regional and international trade and investment.
Construction leaders have fast tracked the inclusion of black business interests, cleaned house and retained capacity at great cost to support the national infrastructure agenda. Yet government remains distant and unengaged, while some black business structures continue to bark demands with self interest in mind.
It is suspected that tenders for much needed infrastructure are being withheld pending a resolution of the trust and empowerment issues. It also appears that cabinet is unsure of which politically acceptable route to follow. This is very worrying and is preventing the country’s progress.

Inaction And Ineptitude

Heavy construction in Africa is not for sissies. A myriad of risks have to be dealt with, but it all boils down to three objectives: on time; on budget and on specification.
The route to success is dependent on three more critical aspects for the contractor: good people, good equipment and positive cash flow.
Getting the ‘Three by Three’’ right in Africa’s remotest locations means getting to grips with the risks that can include gun toting taxmen; more of that later.
Take the people: it takes a special breed to leave family behind and spend one to two years away from home, living in basic conditions, working on hot, wet and humid sites where communication is scarce and disease lies in wait.
Many sites are manned by a multicultural workforce. Providing traditional foods, ethnic, cultural and religious harmony is essential, and it happens all over Africa every day.
It’s the mosquitoes that get our people though – much of Africa is stricken by malaria and the good people we send to sites sometimes come home sick. It never really leaves your body and repeat infections are common. No amount of spraying work sites, medication, nets, creams, counseling and behavioral discipline guarantees immunity. In addition, if you are HIV positive, malaria is a death sentence – we voluntarily screened our workforce for HIV. The counseling was the tough part. Medical evacuation in severe malaria cases, and for other life threatening ailments, is a critical service that gives peace of mind to families back home. It’s the people that make for successful projects – mind the mozzies!
That said, construction leaders in Africa are a special breed and relish the exotic destinations they call home for a year or two. They love the freedom to operate, the responsibility they have and the life-changing challenges they experience daily.
Border posts are also a problem. Getting equipment across Africa is tough. No amount of planning and preparation is enough; you have to have the right paperwork and physically shepherd heavy plant equipment through Africa.
In my years in African infrastructure, getting plants to site and getting it home again without losing time, or being asked to pay exorbitant unofficial border duties, was rare. Ports can also simply let goods lie for weeks or even months, which piles stress onto projects.
Transport routes become toll roads as communities set up roadblocks and press for toll fees to allow heavy equipment to pass. Building a power line in Nigeria – a nightmare as the line passed through many communities, each of whom was promised work by the elders – meaning we had to divvy it all up and employ a military guard for each pylon to prevent sabotage.
We even hired nearby mobile police or ‘Mopol’ to ensure people and equipment got to the sites.
It’s a tricky situation which forces you to manage this risk; avoid compromising good governance, yet keeping the project moving.
Avoid all of the above and the taxman can still get you on cash flow and margin. Onerous tax regimes are fueled by hungry economies, fiefdoms masquerading as tax collection centers, corruption and western aid. Efficient tax collection systems are developed to lessen their future aid burden – a costly recipe for great creativity and duress.
No amount of technical competence, good governance, good people and good equipment on site can prevent the unexpected!
In the early years, in one large country struggling to emerge from its war-torn past, where we constructed many successful projects, the tax base was the primary source of regional government income. The published national tax code was the easy part – it’s the governor or taxman who you had to be wary of! The tax assessors would arrive in military trucks, with AK47s, to encourage payment of some creative assessments of the PAYE and company tax. Needless to say, we learned how to deal with this, never paid under duress, but tax clearance can run for years after the jobs were built and that’s an unexpected cost to the company.
Building in Africa? Sounds easy? If you are looking for rewarding challenges, seeing the world, excitement, personal growth and building something permanent –
try it!

Beware Of Taxmen Carrying AK47s

Every year, South Africa celebrates Women’s Month in August, commemorating the 1956 protest against pass laws that saw 20,000 women march to the grounds of the Union Buildings in the country’s capital Pretoria.
In the run-up to Women’s Month, it was fitting that the African Union (AU) summit in June was held in Johannesburg around the theme, ‘Women’s Empowerment and Development Towards Africa’s Agenda 2063’. The AU has declared 2015 as the year of women’s empowerment.
At the opening ceremony of the summit, Robert Mugabe, President of Zimbabwe and current Chairperson of the AU, lauded the African woman.
“Whenever I think of the virtues and the indomitable spirit that epitomizes the African woman, I am reminded of the heroines across the African continent who stood up against the forces of colonialism and occupation,” he said.
In an exclusive interview with FORBES WOMAN AFRICA after the summit, Nkosazana Dlamini-Zuma, the first female chairperson of the AU Commission, also a former South African home affairs minister, spoke about a new campaign.  She wants to replace the hoe (implement used in agriculture) with a motorized tiller.
“The women on this continent are unique in many ways. They really are the drivers of communities, of families, they are the curators of our culture… During our consultations to put together Agenda 2063 [a 50-year vision for Africa] and especially the first 10-year plan, we were told by women farmers that Agenda 2063 will mean nothing to them if they have to continue using the hoe. And it threw a big challenge to us; the more we looked at how women worked with the hoe, we realized it is actually like a symbol of poverty and symbol of submission too. We thought ‘they are right, how have we let it go for so long?’&#8230; So we decided to start this campaign to drive the hoe away, into the museum really, until there is no woman forced to use it.”
At the summit, the AU handed out tillers to each of the 54 African countries present “just to show it can be done”.
“But we think it will actually bring a different dynamic to agriculture because young people were not willing to go into agriculture. But once they see it is technology they can use, and they can use working upright, standing tall and proud, I think the tillers will restore the dignity of African women and change the image of African women farmers,” says Dlamini-Zuma.
Next on the cards for the AU is developing Africa’s blue economy. Dlamini-Zuma says water is a hugely ignored resource.
“Africa has actually neglected the fact that it’s almost like a big island with smaller islands – 32 of the 54 countries are either coastal or island states. We need to now develop the blue economy as part of the broader economy. We have developed the first maritime strategy.”
On July 25, in Addis Ababa, the AU launched the 2015-2025 Decade of African Seas and Oceans. Plans are on to build capacity and impart training in this sector.
“We want to look at maritime transport and see if it can have shipping vessels that fly African flags from African countries, and [in] time, see that the people employed are also from Africa. Because we are a continent with lots of young people, this is the one industry we can open and create jobs for our young people over the next 10 years, besides the revenue it can bring. We are also looking at aquaculture that can create jobs and food for the continent, but from the onset, we want to look at the environment and make sure we keep our oceans clean as we try and develop the industry.”
Tourism, both coastal and floating (cruise liners), will also be a big component of the blue economy.

The Woman To Put  Poverty Into Museums

Getting Africa out of the development woods will require more than technology and telecommunications. After decades of lost trading opportunities, Africa needs a new trading lens. Personal and institutional initiatives to close the lacuna between ‘extant realities’ and development ideals is desperately needed.
New advanced technologies, progressive policies and new investment models to integrate economic and political systems would certainly help. Africa must open up its markets to African customers. We need to build new factories, generate energy solutions and open up trade corridors across the vast continent.
Intra-Africa tourism barely exists and intra-Africa trade is low, between 10 and 12% of total trade. Trade within Africa needs to surpass trade between Africa and the rest of the world. West Africa now accounts for 40% of the total African, Caribbean and Pacific trade with the European Union.
The Southern African Development Community (SADC) region accounts for about 45% of Africa’s trade with the rest of the world. In East Africa, Kenya’s top 10 export markets are Uganda, Tanzania, Netherlands, the United States (US), Britain, Pakistan, the Democratic Republic of Congo, UAE, South Sudan and Egypt. The five African countries here account for more than 30% of Kenya’s total exports. Kenya’s tea makers are yet to make a serious push into Nigeria, Africa’s largest market.
Ethiopia, Rwanda and Burundi produce excellent Arabica coffee. Most of it ends up in North America and Europe. You will search very hard to find East African produce in stores between Dakar and Douala. European coffee brands however abound.
Africa is largely disconnected from itself due to its poor infrastructure, restrictive immigration policies, corruption, failure to formalize informal trade, and unclear customs and immigration rules. Fresh facts emerging, however, suggest it is improving slightly. Data for 2013/14 shows that intra-African finance is a significant source of foreign investment in low and middle-income countries such as Burundi (79%), Namibia (42%), Rwanda (62%), South Sudan (64%) and Uganda (45%).
National and regional policy frameworks need to be strengthened and harmonized. This is a job for governments, companies and citizens alike.
Easing trade barriers would help. Building on a current system which allows citizens visa-free access to other West African countries for 90 days, the 15-member Economic Community of West African States (ECOWAS) is planning to launch a biometric identity card in 2016. It will be a digital identification card, travel document, and residence and work permit. This biometric passport is expected to resolve the regulatory bottlenecks that penalize local businesses at the expense of their international competitors.
Similar integration plans in other regional economic blocs also exist, aimed at reducing the expense and stress of traveling and trading across Africa.
Kinshasa and Brazzaville are only divided by the Congo River, yet a return ferry ticket cost the equivalent of $40, more than 40% of the average monthly wage for a Kinshasa resident. It costs less to move a container of maize from the flood plains of the Mississippi, US, to Dakar in Senegal, than it is to take the same harvest from Dakar to Tema in southern Ghana.
An ongoing diplomatic détente between Accra and Nairobi seems poised to attenuate these issues.
Puzzled by the poor levels of trade between Ghana and Kenya, Leah Nduati Lee, a Kenyan married to a Ghanaian, organized the very first Kenya Trade Expo in the Ghanaian capital last November. The three-day event smoothed trade relations between the two regional giants, building on the seven agreements signed in 2014 by President John Dramani Mahama and President Uhuru Kenyatta, to consolidate existing economic and trade ties, and deepen institutional cooperation in the energy, ICT, trade, tourism, transport, agriculture and education sectors.
According to Kenya’s Export Promotion Council, the country’s exports to Ghana were worth KSh479 million (around $4.7 million) in 2014, while imports from Ghana were worth KSh369 million ($3.6 million).
During the expo, Kenya’s envoy to West Africa, Ambassador Tom Amolo, said that consensus building between Africa governments to tackle integration issues is beginning to happen.
“Kenya is fully open for business,” says Amolo. “Our investment promotion frameworks continue to foment long lasting networks and commercial alliances between the business communities in East and West Africa… Deepening and broadening integration is essential for Africa’s inclusive development.”
The momentum between the gateway economies across Africa needs to be sustained.

TRADE WINDS  MusT Blow

They must have sat bewildered as the van drove them out of the city. The Johannesburg skyline petered to bush too quickly. For the six teenagers, and their football hopes, Ghana was a distant memory. The red dusty fields of Thohoyandou, in South Africa’s Limpopo province, a distant uncertainty.
They flew thousands of miles south from Accra on a false promise, at their parents’ expense, to become lost boys of the broken world of African football. They arrived in South Africa thinking they were on their way to the moneyed Premier League grounds of England. But they were not and the agent who promised them this has disappeared along with their parents’ money. The South African coach they’ve been dumped on is trying to find their parents back in Ghana in a bid to send them home. This is the ugly side of the beautiful game in Africa where the youth are being misled through a murky world.
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It was the weak word of agent Francis Nkrumah that took these youngsters far from home. They heard him on the radio calling for trials in the coastal town of Cape Coast, three hours west of Accra. Out of 50 footballers, only seven made the cut. Skinny and dark in complexion; 15-year-old Richard Sogbadzi-Eddo was one of them. The midfielder says that he merely glimpsed Nkrumah during the trials. Most of the communication between the agent and family was over the phone.
“He was very dark and tall but he only talked to my brother on the phone,” explains Sogbadzi-Eddo.
The footballers, between the ages of 13 and 18, were told they would get a trial in South Africa leading to another with a Premier League club in England. They arrived in Thohoyandou, a small town in northern South Africa, with little idea where they were or what they were supposed to be doing. Nkrumah made big promises, says 17-year-old David Lawson.
“He said it would be a better place to play football and in three months we’ll go to Europe and we’ll probably be rich.”
Each family paid Nkrumah a little under $2,000 for their son’s chance for a brighter future. For all, the money was hard to come by.
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“My mother is not a government worker, she’s a trader in the market. So she had to take a loan for the money,” says Sogbadzi-Eddo.
The family lost their father five years ago and his mother has been supporting him and his four brothers with meagre earnings. Nkrumah’s promised them a way out of poverty. Lawson’s mother, a headmistress, borrowed money from her church to pay for her son’s passage.
This is part of the growing trade in young footballers between Africa and Europe that often ends in broken families and shattered dreams. South Africa is becoming a way station within this strange and exploitative system, says Dan McDougall, an investigative journalist, who has covered what he calls the trafficking of West African players to Europe.
McDougall has met many young Ghanaians like Lawson and Sogbadzi-Eddo, lured from home and stranded in Europe. He believes that the nature of the industry encourages many to prey on promising young players from impoverished families in West Africa.
“This is an industry that stinks from top to bottom.”
Agents, like Nkrumah, often run informal football academies across West Africa with hopes of supplying the wealthy clubs of Europe with another Didier Drogba or Michael Essien. In Ghana, players as young as 10 are sent abroad in the hope of securing trials. Others take illegal routes to Europe huddled on boats in search of a better life. The journey is dangerous and often deadly. In 2009, the Nazar, a fishing vessel carrying hundreds of African migrants capsized off Tripoli, killing 300. Fifteen of its passengers were believed to be young players on their way to the pitches
of Europe.
Reaching the shores of Europe doesn’t guarantee a future.
“This is a deadly business, families are being extorted and most of the time these kids don’t have the ability to make it,” insists McDougall.
Unlike the Ghanaians in Limpopo who at least have a roof over their head, many football hopefuls who make it to Europe from West Africa are forced to survive in ghettos and back alleys. Bernard Bass, a young player from Equatorial Guinea, whom McDougall met, made his way to France from Ghana. Living in the Paris ghetto of Clichy-sous-Bois, he was threatened with the police by the club he hoped to try out for, Metz in eastern France, because they didn’t know who he was. He stayed on in France illegally, sleeping on the floor of a friend’s apartment.
Back in Thohoyandou, the youngsters from Ghana have landed on the doorstep of unwitting former English professional footballer, Bally Smart. The former midfielder for Norwich City, who returned to Polokwane – the city of his birth – to set up his dream football academy is now lumbered with six  youths abandoned in South Africa who were merely given his address.
“He didn’t know anything [about Nkrumah]. But he asked us to stay and take the time to learn football. He said everything would be fine,” Sogbadzi-Eddo recalls.
It isn’t fine. Smart is trying to contact their parents back in Ghana and is at a loss. The agent has disappeared and could not be reached by the boys or by FORBES AFRICA. The boy’s visas expire in less than a year and they are running out of time.
“It’s frustrating to have them here because I am footing all the costs. I am just trying to make sure that they’re OK,” says Smart, who has never met Nkrumah.
Despite grim realities in Europe, the Ghanaian boys in Thohoyandou are hopeful.
“In West Africa, there are no chances. It is difficult to make it,” says young Sogbadzi-Eddo, who still has his sights set on Europe. “I am still positive that it will happen.”
This is just one of the problems on Smart’s plate. His dusty pitch has become a microcosm of the problems and divisions in African football. His academy, Polokwane United – where the Ghanaian boys live, learn and play – is facing a five-year suspension allegedly imposed by the Limpopo arm of the South African Schools Football Association (SASFA) which regulates the sport’s academies in the province. The academy has been barred from all competition. Smart insists that the suspension has no basis and that it was delivered unofficially. In early September, he filed an official complaint. FORBES AFRICA obtained a copy.
“It is clear that our strong teams and style of play is a thorn to the soccer politics in the district (Vhembe) and as a result our school has been targeted to be sabotaged (sic) and unfairly sidelined in an unscrupulous and corrupt manner,” Smart wrote in his complaint.
SASFA were unavailable for comment.
The suspension was a kick in the guts for all at Polokwane United – South Africans and Ghanaians alike.
Veteran football journalist, Mark Gleeson, believes that this is endemic in South African football.
“South Africa is notoriously bad for not promoting young football players,” he says.
“We need to understand how a society works as far as football is concerned. The Dutch and the German way of doing things reflects their society. We need to understand how African society works for the development of African football.”
It is not for a lack of money. South Africa has some of the most moneyed leagues on the African continent but these teams depend heavily on patronage. Smart has had no sponsors since he started his football academy two years ago. He’s been running the school from his own pocket unlike the other teams and academies around him which are owned largely by businessmen with political ties.
Smart and his boys have many challenges ahead. But he remains optimistic. One of his protégés is preparing for genuine trials in Britain in late September. As for his Ghanaian wards, although let down by the game they love, they are glad they landed on his doorstep.
“We eat three times daily here. I am happy here, everything will be OK,” says Sogbadzi-Eddo.
Unfortunately, optimism alone is not enough to cover the miles to the trials in Europe.
&nbsp;

The Bewildered Chasing A Broken Dream

There are millions of children playing football around the world, but only a fraction will ever make it to the professional ranks.
Ability is an obvious factor, you either have the talent or you don’t, but while technique and tactical awareness can be taught to a certain extent, there are a whole range of other issues that come into play.
One of the keys in developing players for the modern professional game is to get them into structured academies at the earliest possible age.
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In Europe and South America, it is common for youngsters to be linked to academies by the time they are at the age of seven or eight. The reason for this is simple, it is the best age to start teaching them the fundamentals of the game and set them on the correct path to a professional career.
In Africa there are millions of children playing the game; a handful of them are attached to clubs while the rest play at schools or on the streets.
The lack of structured coaching at a young age prevents them from taking the step up from street football. The few lucky individuals that attract interest from professional clubs are held back because they have already picked up bad habits that are difficult to dislodge.
A 17-year-old should have the basics of the game ingrained in them. They should not need to be taught how to pass, cross and shoot. Today, the sad reality is that a lot of players do not have these skills due to a lack of coaching in their formative years.
I look across the leagues of Africa and I see professional players who struggle with the basics.
The academies at Barcelona and Ajax Amsterdam are renowned for producing some of the world’s most talented stars. When one of their players reaches the age of 17, he has probably spent 10 years in the academy and will be more technically advanced than players from Africa. He will also know exactly what his role is in the side and where to position himself at any given moment in the game.
This is often the biggest criticism of players from Africa who move to Europe. Yes, they are skillful and have good physical attributes, but they lack the feel for the game that can only come with years of consistent and methodical coaching.
It is a huge challenge for our continent, not just to open academies to harness young talent, but to do it in the right way with expert coaching.
Those academies do exist in Africa, but they are few and far between and until we can get that right our players will always be at a disadvantage, relying solely on raw ability.
Some of the most successful players from our continent in the last two decades, such as Samuel Eto’o, Yaya Toure and Emmanuel Adebayor, were teenagers when they went to Europe and had the privilege of training at top academies. Had they only been spotted later in life, it’s doubtful they would have had anywhere near the success they have enjoyed.
Beyond the honing of skills at an early age, there are other factors that determine success.
Attitude is a major one. Players need the hunger to become a professional player and must be willing to put in hard work. Another factor is professionalism. There are hundreds of cases of footballers from all over the world – this is not only an African issue – who have looked world-class as teenagers but failed to live up to the promise because of factors outside of the game.
Think back to when you were 18. You probably felt invincible and perhaps even a little rebellious. For every player that manages to get past that phase of their life with dedication, there are others who fall by the wayside.
These days, we have players who are multi-millionaires by the age of 21, with more friends than they have ever had in their lives and lots of time on their hands to spend that money.
The temptations are huge and perhaps more so for African players who come from impoverished backgrounds and now have more money than they could ever dream of.
Today, clubs and agents provide much more support, in terms of counseling and financial guidance, but the player has to be a willing participant.
Africa has ability in abundance but the power to successfully harness it is very much a work in progress. It is why, to my mind, there are not a lot more African players in the top five leagues in Europe. The demands of the modern game are moving away from the purely physical attributes, which presents a problem for us.
Where is the next Eto’o, Didier Drogba or Michael Essien going to coming from? There aren’t any obvious superstars emerging from the continent. We have good young players floating around, but no great ones. They are not competing on an even keel with players from Europe and South America.
Our great challenge for the decades to come is to give them that opportunity and raise the standard of the development work we do so that the trickle of top players from Africa becomes a flood.

Where Are The  Messis Of  Africa

You started as a schoolteacher. How did you get into development work?
South Africans of my generation were born into a situation that required us to take a stand. Some of us were lucky to be in communities where there were opportunities for us to be involved in charity and development work. The organization that gave me the first insight about my community was the YWCA, because my mother was a member. She was my role model as she was involved in community work. A lot of women were quietly making a difference. They were ordinary women doing extraordinary things during the apartheid days. They were filling the gap to provide services the system was not providing in black townships. Many of them worked in communities to get women to grasp the fact that spacing children will give them the freedom to be productive citizens, further their education and take time to become leaders.
How much of a challenge is reproductive health today in Africa?
Reproductive health continues to be one of the biggest issues of our time. Many of the girls start their journey to poverty at a very early age. It is usually because of unmet needs of reproductive health, and lack of access to services and in some cases, the challenge of reproductive rights that are violated: it could be rape and denial of services, therefore at an early age, they end up having children they cannot afford to look after. And as soon as that happens, they have signed a contract with poverty forever. They have also introduced poverty in the next generation, as it is most likely that the children they have will also be poor.
At another level is the prevalence of early marriages, one of the biggest challenges we have in the 21st century. They are sanctioned by parents and traditional leaders and we have inadequate response and action by governments. Many of the children who have early marriages are never going to take full advantage of their potential. A young girl who has the capacity to be a great scientist loses all of it, because at age 12, she is married to a 40-year-old. In many situations, the girls are married off to people they don’t know. So their emotional wellbeing is completely ignored.
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What about the missing Nigerian girls?
What has happened to the girls in Nigeria is in many ways a reflection of this crisis. What we are experiencing is modern-day slavery – the trafficking of young girls abducted in their communities. We are doing it to ourselves as Africans, we are taking our own children and abducting them and selling them and all of us who condemn slavery as nations of the world are not there to make sure this practice is not allowed to thrive on our continent or anywhere in the world. We have to find a way of making this a global responsibility, and not just the responsibility of the nation where it happens.
We are establishing a partnership with African Development Bank and will be working in post-conflict countries to support the recovery of women so they have the means to rebuild their lives and the community. The majority of women in Africa work in agriculture. Statistics [reveal] that if we show the same amount of support to women in agriculture, it will positively impact 150 million people on the continent.
What about issues of public health?
In some countries [in Africa], mothers and children die under circumstances that are preventable. Public education and access to public health is growing on the continent, there are many good stories of economic opportunities for women in ecotourism, sustainable development and the knowledge economy. For all these decisions to become public norms, you need all of society to buy into the changing circumstances. You need the man to be a part and parcel of this. For International Women’s Day 2014, our program ‘He For She’ called for men to come out and share their views on why gender equality is important and what they can do about it, in their companies and communities.
What is the global perception
of Africa?
It is by and large negative. We are not hearing enough about women who are breaking the glass ceiling and are change-agents. We don’t hear enough about Rwanda, where the parliament has the highest female participation. There are an outstanding number of women who are passing laws in Nigeria.
More should be done to ensure girls do not stay out of school. The education is also about curriculum, and to produce teachers who do not propagate stereotypes. And [the need] is to have a labor market that has equal pay for men and women.
You have been SA’s Deputy President. Would you ever be keen on making it as its first female President?
There are a lot more capable women.
When it happens, it will be a great day for South Africa and I will be cheering and supporting them.
&#8211; Interviewed by Methil Renuka

‘Take Time To  Become Leaders’

When Majida Nantanda – the coach of the Ugandan national women’s football team – was growing up, her four brothers treated her as an equal in their matches. She thought that was the way it was supposed to be.
When she went to school, she realized girls were not expected to run around kicking a ball. Nantanda’s opportunities to play the game were far fewer than those of her brothers. She knew that was not the way it was supposed to be.
Nantanda defied the odds, endured the jeers and forged a career in sport. Her determination and talent saw her play for the Ugandan national women’s football team for nine years. When she was done, she turned her attention to coaching and football development, with a twist.
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In 2009, Nantanda joined Tackle Africa, an organization that uses football for HIV/AIDS awareness among the youth. Her rationale was simple: “I committed to developing a grassroots football program to empower more girls and women in sports. But I also use football to address issues like health and education. Considering that football is by far the most popular sport in Uganda, if more coaches can be trained on how to provide HIV/AIDS education, it will have an important impact among the youth,” says Nantanda.
Nantanda offers something slightly different than her male counterparts, because she targets women’s education.
“For girls, it is about knowing their own rights, how to stand up for them and taking ownership of their bodies, something they learn through female coaches. Our female coaches teach girls to be strong, to speak up and make decisions. They work on empowering women to have free choice, particularly around their sex lives in an often male-dominated society,” says Tom Colborne, head of business development at Tackle Africa.
She is also a role model for young boys, who do not have the opportunity to meet many women in elevated positions within their societies. The female coaches are seen as figures of knowledge, confidence and authority, according to Colborne.
But it is not as simple as it sounds.
“I had many challenges in bringing a group of boys together to play organized football, and at the same time talk about an HIV topic related to the drill. Some parents discouraged their children when they heard I am speaking about condoms, but I did not lose hope. I explained to the parents, what, why and how football and life skills link together,” says Evelyn Achieng, a Tackle Africa coach in Kenya.
“I love the drills, we do them once a week. After we learn it, we practice and play it over and over until we remember it. Some drills show exactly what is happening in our bodies, so it is fun, but it is also important to learn. These games have really helped in my education. I am active, I listen and I concentrate. Here we all know each other and we help each other learn about discipline, HIV, life and making friends,” says Juma Christine, a beneficiary of Tackle Africa’s Kenyan project when he was younger.
Tackle Africa has 8,000 girls on their books, and 200 female coaches working in six countries across southern and East Africa. It is also working with the Tanzanian sports ministry to train 120 female coaches. Juliana Mokiwa is one of them and has already seen the dividends of her work pay off both in her personal life and in football.
“In Africa it is true that many women have no say with their husbands. Now, I have the knowledge about how I can make decisions. I have also learned different skills about football, which I will teach other coaches and players,” she says.
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Tackle Africa has seen the confidence and ability of female players grow, however footballing infrastructure remains a challenge, admits Colborne.
“There’s still a long way to go before there’s a women’s professional game in any of the countries we work in. Even the top division male players are rarely able to earn a decent living through the game. But, we see women’s national teams beginning to spring up and there are numerous organizations running women’s leagues,” he says.
Despite all that, Tackle Africa is not looking to unearth the next Nantanda, instead it is hoping to keep young people playing football, so they can reap the benefits associated with the program.
“We help female coaches to be better at coaching, so that they can develop players – not because we care about making better footballers, but because we know in order for our sessions to work, the coach must be credible [and only then will it have] young people coming back. With good female coaches, they can ensure girls attend their sessions as regularly as boys, and learn as much about football as they do about life.”

One Shot For GOAL Another At Life

The exponential growth of Africa’s middle class has been heralded as a key driver of economic prosperity by many analysts. Their spending capacity and disposable funds are cause for optimism among investors keen to cash in on Africa’s economic momentum. But while the super-rich can splash out on palatial homes and properties, the underbelly of Africa’s middle class (many of them state employees such as teachers, police officers and health care workers), struggle to become homeowners. Their dilemma: they earn too little for banks to risk providing them with credit, but too much to qualify for state assistance.
This applies to countries such as South Africa, where the government provides assistance that enables people to enter the mortgage market. But one company, International Housing Solutions (IHS), has turned this cris-is into an investment opportunity. A member of the Emerging Markets Private Equity Association, IHS is the only private equity company that focuses on affordable housing in Africa. It partners with financial institutions, real estate developers and local government authorities to provide equity finance for housing projects.
“I have always believed that one can do good business while also doing good,” says IHS managing partner Soula Proxenos.
A self-styled ambassador for Africa, Proxenos has been in the affordable housing industry and development sector for 18 years. She believes that if you want the “big dollars” to roll in, you need to find a profitable business. Although she hails from South Africa, Proxenos is based in Washington DC, close to her investors.
As a woman in the mortgage and development sector, she is candid about prevailing attitudes towards her gender. She says the sector is “pretty male-dominated”.
“One is not invited into the room, while at the same time one is not exc-luded from the room,” she explains.
While many women are involved in the non-governmental sector in housing, Proxenos believes they are selling themselves short if they only work for non-profit institutions. “Women still say: ‘we didn’t do this for the money’.” They need to get over this, she urges, arguing that charity, while noble, is not always sustainable.
Her company is a pioneer in recognizing the potential of affordable housing (so-called gap housing) in developing markets. It has opened up a valuable new sector for investors. Simulta-neously, IHS helps thousands of families afford a home and start the journey to wealth creation through property ownership, the bedrock of sustainable middle classes the world over.
IHS’s first fund, the South African Workforce Housing Fund, has committed more than $230 million to providing affordable housing in emerging markets, while also generating superior risk-adjusted returns. Buoyed by the success of her South African venture, Proxenos is now venturing into the rest of Africa.
The International Finance Corp-oration (IFC) and South Africa’s National Housing Finance Corporation (NHFC) have also recently announced investments of more than $63 million in IHS’s second fund. IHS Fund II will support the development of affordable housing in South Africa and sub-Saharan Africa. The financial commitments are timely, and come as IHS prepares to expand its footprint.
“With our second fund, our thesis remains the same&#8230; Because of urbanization and the growth of the middle class in Africa, the need for housing across the continent vastly outstrips supply, especially in the category of affordable housing.
“In countries with a functioning mortgage market, that need translates into market demand. This offers investors the opportunity to achieve superior risk-adjusted returns.”
She says the second fund will consist of two sleeves. One will invest in South Africa and the other will invest in Ghana while also targeting other sub-Saharan countries.
“Demand outstrips supply in many markets in Africa, and where the right conditions exist, the sub-Saharan sleeve of Fund II will invest in some of these markets. Our main focus will remain South Africa, but the sub-
Saharan sleeve will start to proactively source deals in Ghana, Botswana,  Namibia and Mauritius,” she says.
“There are many great opportunities for affordable housing investments across Africa, and we’re optimistic that Fund II will deliver excellent returns for investors, as our first fund is showing.”
However, operating in Africa is never hassle free. Nigeria, the second-largest economy on the continent, presents particular challenges for the mortgage market. These include sec-urity of tenure and ambiguity around title deeds, which makes investors risk-averse, Proxenos points out.
Prior to the removal of Mohammed Morsi in Egypt, that country had to spend millions building out its systems, trying to rationalize land and property that had to be titled.
“In Egypt there is a 12 percent tax to have your property re-titled!” she exclaims. And in Nigeria, under former president Olusegun Obasanjo, some measures were introduced but they did not yield the required dividends, she says.
However, the opportunities in Ghana leave her optimistic. While much of the land is traditionally owned, it is also clearly titled. Ghana is stable and the rule of law is entrenched and respected, which makes it an ideal growth opportunity.
“We are excited about Ghana. In Ghana, 5.7 million rooms need to be added to existing homes. There is a robust mortgage market in many countries on the continent. Namibia, Botswana and Mauritius are all examples and Ghana is taking the same direction,” Proxenos says.
Quality housing is a key deliverable for many African governments, which are tying their infrastructure rollout programs to economic growth. But without private sector buy-in, governments cannot deliver on their promises.
Saleem Karimjee, the IFC’s senior manager for Southern Africa, says: “Providing affordable basic services, such as access to quality housing, is a priority for IFC in Africa. IHS Fund II offers an attractive opportunity for private investors to gain access to a fast-growing market with significant positive social impact. IFC’s commitment will stimulate investment growth and job creation in sub-
Saharan Africa, demonstrating that our support can help catalyze additional fundraising.”
So far IFC has committed $25 million to the fund.
On the South African front, where housing remains a challenge almost 20 years into democracy, the IHS Fund II could not have come at a more opportune time. The general elections are just around the corner and the country’s public and private sectors have come to the housing party, enabling thousands to share in the joys of homeownership.
Samson Moraba, who heads up the NHFC, says the corporation is committed to ensuring that all South African households within the affordable housing market have greater access to appropriate homes, in terms of both size and location.
“Our goal is to enhance the well-being and quality of life of the low- to middle-income households with the security of a home, as well as an opportunity to create wealth. We firmly believe that our deliberate strategic partnership with IHS will unlock the delivery of housing at scale, and ultimately lead to the creation of sustainable and attractive communities, where people can live, play and pray.
“We are delighted with this investment because not only will it accelerate delivery of housing, but it will also contribute toward foreign direct and private sector investment, as well as job creation,” he says.
Among global investors, the narrative about Africa’s middle class is one of optimism. Proxenos says there is a buzz about the continent in the world’s capitals, including London, where many investors are based. She is adamant that countries such as South Africa, where the market is “huge”, need to get the fundamentals right.
“Don’t score own goals! We need to put a united foot forward that includes the government and the priv-ate sector. The trust deficit needs to be overcome.”
Proxenos singles out South African ambassador to the US, Ebrahim Rasool, praising his efforts to get investors excited about Africa. Because, ultimately, she says, “you can’t close the deal without an investor”.

Filling the gap in the housing market

For many years, property has been a safe haven. It is an asset that guarantees appreciation over time. However, due to the investment amount required, many middle-class buyers are able to own only one property at a time – at most. More affluent people have the privilege of investing in more than one property, sometimes in several cities.
But thanks to the stock market, individuals are licensed to buy real estate shares, which are far more reasonable. However, there is a certain amount of risk attached, depending on the cycle of the property market.
Before I go into the real estate sector of the stock market, I want to look at property in Africa in general. Property can range from a house to an office, from retail to commercial space.
As African countries develop at a phenomenal rate, due to resource exploration, the need for property infrastructure has escalated. Africa, which was once a continent that investors shied away from, has become a rough diamond. More and more investors are attracted to the sub-Saharan reg-ion’s Gross Domestic Product (GDP) growth of more than 5%.
According to real estate agency RE/MAX: “There has been a massive shift towards encouraging foreign investment in Africa and the continent is on the move. Large businesses are seeing the potential that the continent is currently yielding and are eager to expand into the region and take full advantage of the opportunities.”
Furthermore, a McKinsey report states that the continent’s consumer-facing industries are expected to grow to $400 billion by 2020‚ representing Africa’s largest business opportunity. The rapid urbanization and the blossoming middle class in Africa are contributing to the success factors for retail. Modern shopping malls and office complexes are being built across sub-Saharan Africa.
Property investment is growing rapidly, particularly in Nigeria, Ghana, Kenya, Mozambique, Uganda and Zambia. It is attracting a lot of property developers, private equity funds and high-profile global investors. As a result, shopping malls are mushrooming in Nigeria, Kenya and Zambia.
South African retailers are also exploring the potential in the rest of Africa, with MTN, Shoprite, Woolworths, Game, Standard Bank and Pick n Pay moving north to expand their businesses.
Shoprite, which aims to have bet-ween 600 and 800 stores in Nigeria, partnered with the Resilient Property Income Fund to build 10 shopping malls in the West African nation in 2010. The deal was worth more than R1 billion ($100 million) and also involved Standard Bank and construction giant Group Five Holdings. Shoprite has also opened stores in Maputo, Matola, Chimoio and Beira in Mozambique.
Other retailers like Walmart-backed Massmart‚ Pick n Pay‚ Woolworths‚ Mr. Price‚ Foschini Group and Famous Brands are also expanding into Africa. Pick n Pay set the ball rolling after opening stores in Mozambique in 2011, and another five in Zambia.
Woolworths has a mixture of franchise, joint-venture and wholly owned stores in Africa. The company is negotiating to buy its franchise business in Botswana, which comprises 22 stores. Currently, Woolworths has a presence in 12 African countries, including South Africa.
As the hospitality sector reaches maturity in South Africa, many hotel groups are eyeing the rest of the continent, which seems to have a lack of quality hotels. Protea Hotels recently signed a deal that will see it moving into Rwanda. It is also building new hotels in Zambia, Ghana, Nigeria and Uganda at a total cost of more than $100 million. Protea is planning to expand into at least three more countries within the next couple of years.
Research conducted in 2013 by the W Hospitality Group consultancy has reported that the companies leading the way are Hilton Worldwide, with 6,230 rooms in its African pipeline; Carlson Rezidor with 5,947 rooms; Accor with 5,165, and Marriott with 3,900.
Housing in Africa is a necessity, but nowadays the type of house takes precedence. Property owners are becoming more lavish and certain areas in the continent’s cities are appreciating exponentially.
Some of the properties in Lagos, Nig-
eria, which has a population of about 20 million people, are among the most expensive in the world. Two-bedroom flats cost more than $1 million in upmarket areas.
The most popular units fall within a price bracket of N20 million – N35 million ($124,000 – $218,000). Nigeria’s middle class, which makes up about 23% of the population, earns about N80,000 – N100,000 ($500 –$620) a month, according to a report by investment bank Renaissance Capital.
In addition, Nigeria’s construction and real estate sectors are growing at more than 10% and 12%, respectively, which is a big winner for local companies.
In Kenya, the economic recovery that started in 2003 influenced a
revival of real estate prices. At first, only the luxury market capital values were rising, but recent indicators show a resurgence in the lower middle-income segment.
After five years of stability, house prices are increasing significantly. According to real estate company Knight Frank, the Nairobi sales market can be divided into two. The first consists of the owner-occupier buyers, which dominate the KSh10 million – KSh20 million ($115,000 – $230,000) market, which is where most of the transactions occur. The second is the investors and speculators that operate above KSh20 million ($230,000), and are mostly wealthy individuals and institutions. Foreigners in Kenya can freely buy ‘commercial class’ land, which is land for income or revenue-making purposes.
JHI Real Estate has had to open several branches in Mozambique as the country experienced a strong demand for retail that reached the masses. It has other projects on the cards, including plans to transform downtown Maputo. The 380,000m² FACIM (Maputo International Trade Fair) development is located on prime land and will include retail stores, hotels, offices and a residential component.
With its picturesque islands, private investors are looking at buying residential properties in Mozambique as second homes. Prices range from $275,000 to $1 million, depending on the ocean view.
Now that I have given a brief outline on how development in Africa is becoming opulent, let us look at the property real estate shares on the stock market. Not forgetting the construction companies, for without them, there would be no property development.
When applying my technical analysis expertise and looking at property in the longer term, the construction sector, as I said recently on CNBC Africa, is my “new black”.
The Construction Index lost almost 60% of its value in the 2008 crash and has been struggling to replicate the same bullish momentum it had before. Instead, it has traded sideways over a five-year period. How-ever, recently, the index has breached the major resistance trend line that has kept the bear trend at bay for the past five years.
This is a significant move, which seems to have warmed the hearts of many investors who were reluctant at first to dabble in an industry marred by negativity and recurring bad earnings.
With the construction sector showing some green shoots, we expect the index to recover its previous losses and possibly repeat the bullish years of 2003 to 2008. In other words, current levels are very attractive, and this bullish call is a one- to five-year forecast – a buy-and-hold investment.
This call applies to the Real Estate Index as well. I have analyzed a few construction shares listed on the Johannesburg Stock Exchange (JSE) below, which I find to be good long-term investments.
Group Five Holdings broke out of a five-year bear trend. I expect upside above 4,650cps to add further gains to the 6,200cps highs of 2008. However, a short-term retracement may be on the cards, thus presenting another buying/reloading opportunity.
Murray &amp; Roberts Holdings has recently broken out of a four-year bearish base, with potential upside to the prior high of 6,000cps.
Basil Read is gradually clawing back its previous losses. A move above 1,035cps looks attractive, with potential gains to 1,370cps. Upside beyond that level would end the five-year bear channel, with the target set at 1,830cps.
Besides the property and construction shares listed on the JSE, this industry is rebounding in Africa in general, driven by demand locally and internationally.
Property prices all over the world are bouncing back from lows and are likely to retest previous 2008 highs. It seems as if the burst of the real estate and construction bubble in 2008 is patching up and reflating, but hopefully in a more gradual and practical manner. Investors have hopefully learned from their previous mistakes.

Tag: Development

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