EXPANDING INTO AFRICA

1 in 10 business who expect growth in the next two years are considering expanding outside South Africa - growing to almost 1 in 5 Commercial customers.

Standard Bank Fact Sheet

1 in 10 business who expect growth in the next two years are considering expanding outside South Africa - growing to almost 1 in 5 Commercial customers.

Standard Bank Fact Sheet

1% considering North Africa

Standard Bank Fact Sheet

1% considering North Africa

Standard Bank Fact Sheet

14% considering Global Regions outside of Africa

Standard Bank Fact Sheet

14% considering Global Regions outside of Africa

Standard Bank Fact Sheet

30% considering West Africa

Standard Bank Fact Sheet

30% considering West Africa

Standard Bank Fact Sheet

37% considering East Africa

Standard Bank Fact Sheet

37% considering East Africa

Standard Bank Fact Sheet

48% considering Southern Africa

Standard Bank Fact Sheet

48% considering Southern Africa

Standard Bank Fact Sheet

About Nikiwe Bikitsha

About Nikiwe Bikitsha

Follow Nikiwe

Nikiwe Bikitsha is one of South Africa’s leading journalists and broadcasters. She’s enjoyed an illustrious 20-year career as one of the most trusted news and current affairs presenters and talk show hosts in radio and television.

She’s worked for broadcasters like Primedia, SABC and eNCA.

Previous awards include the Sanlam financial journalism award in the TV category in 2010
Women in media rising star in 2006
Mondi creative writing category for her column in the Mail & Guardian in 2010

Nikiwe is also a highly sought after Programme director of events and moderator of panel discussions.

She’s passionate about Africa’s economic development and believes that women should be at the forefront of these efforts.
To that end, she’s the co-founder of Amargi Media, a content company which aims to tell African stories in a compelling way.
Nikiwe holds a B.A honours degree in Journalism and media studies from Wits University and is completing her M.A at the same institution.
She’s a previous recipient of the Fulbright Hubert Humphrey fellowship to the Walter Cronkite School of Journalism in the U.S 2012 - 2013

702 CROSSINGS


COUNTRIES

UNPACKING GHANA

Sector Contributions to GDP

Industry, 19.80%
Services, 51.20%
Agriculture, 29.00%
Standard Bank, Ghana Fact Sheet 2016

Inflation and real GDP growth

Inflation

2014, % 15.8
2015, % 17.1
2016(f), % 17.3
2017(f), % 13.3

Real GDP Growth

2014, % 4.0
2015, % 3.9
2016(f), % 4.5
2017(f), % 6.0
African Markets Revealed, September 2016 – Standard Bank

Top import products

Mineral fuels, oils, distillation products (18.8%)

Machinery, nuclear reactors, boilers (9.4%)

Electrical and electronic equipment (7.1%)

Standard Bank, Ghana Fact Sheet 2016

Top export products

Mineral fuels, oils, distillation products (33.4%)

Cocoa (25.7%)

Pearls, preciousstone, metals and coins (20.1%)

Standard Bank, Ghana Fact Sheet 2016

SOCIAL

Population: – 28 million in 2016

Languages: English (official), Twi, Ewe, Fante, Asante, Ga and Hausa.

African Markets Revealed, September 2016 – Standard Bank
GHANA FACT SHEET 2016 – STANDARD BANK

TECHNOLOGY

Mobile money is growing slowly in Ghana.

There is opportunity for expansion in the 3G mobile broadband services market.

Standard Bank, Ghana Fact Sheet 2016

POLITICAL/LEGAL

Ghana is a democratic country which gained its independence in 1957.

Standard Bank, Ghana Fact Sheet 2016

CHALLENGES

The energy crisis threatens the productivity of power-intensive businesses and also pushes up production costs. However, progress was made in 2016 with additional power supply coming online and the situation should ease further in 2017 after the Cenpower Kpone Independent Power Plant is completed.

Establishing a business in Ghana is a lengthy process. Applicants have to comply with the regulations and procedures of at least five government agencies.

While persistent oil price drops threaten economic growth prospects, higher oil production and export may increase FX earnings that could result in higher government and private sector consumption spending.

Inflation is a serious concern, but is likely to continue falling towards the 13% handle over the next 12 months and further lower towards 11% by end 2017.

Electricity and water tariffs have gone up, as have gasoline prices.

Standard Bank, Ghana Fact Sheet 2016

OPPORTUNITIES

The investment climate in Ghana caters forforeign investment.

The country has a well-established democracy, political stability, ample natural resources, a favourable demographic profile and a relatively accommodative business environment.

Food processing, downstream oil, gas and minerals processing have been identified as sectors with potential for growth.

The country’s drive to privatise its energy sector is positive from an FDI perspective. This provides opportunities for companies within renewable energy.

E-commerce in Ghana is expected to increase, as internet penetration rates have increased sharply in recent years.

Standard Bank, Ghana Fact Sheet 2016

NIKIWE IN GHANA View Gallery

UNPACKING KENYA

Sector Contributions to GDP

Standard Bank, African Markets Revealed, September 2016

Inflation and real GDP growth

Inflation

2014, % 6.9
2015, % 6.4
2016(f), % 5.2
2017(f), % 4.8
2018(f), % 4.5

Real GDP Growth

2014, % 5.3
2015, % 5.4
2016(f), % 5.5
2017(f), % 6.0
2018(f), % 6.3
Standard Bank, African Markets Revealed, September 2016

Top import products

Mineral fuels, oils, distillation products (21.0%)

Machinery, nuclear reactors, boilers etc. (8.6%)

Vehicles other than railway, tramway (7.8%)

Standard Bank, African Markets Revealed, September 2016

Top export products

Coffee, tea, meat and spices (18.8%)

Live trees, plants, bulbs, roots, cut flowers etc. (12.6%)

Mineral fuels, oils, distillation products (12.6%)

Central Bank of Kenya; National Bureau of Statistics; Ministry of Finance; Reuters; Bloomberg; Standard Bank Research

SOCIAL

Population: 45.5 million, Diverse and young population

Languages: English and Swahili

Development challenges: Poverty and inequality, Economy vulnerable to internal and external shocks, High unemployment

Standard Bank, African Markets Revealed, September 2016

TECHNOLOGY

Plans to become Africa’s ICT hub by 2017

Pioneered a mobile technology economy pointing to future trends worldwide

36.1 million mobile subscribers - 83.9% penetration rate

Increased internet penetration and smartphone uptake to drive increased data and mobile money transfer use

Standard Bank, African Markets Revealed, September 2016

POLITICAL/LEGAL

The Constitution of Kenya is a decentralised system with two distinct levels of government: County and National

Security outlook remains a serious challenge with the main threat being posed by al-Shabaab, a Somalia-based extremist group

Standard Bank, African Markets Revealed, September 2016

OPPORTUNITIES

The Medium-Term Plan (2013-2017) to achieve a 10% GDP growth prioritises Tourism; Agriculture, Livestock and Fisheries; Wholesale and Retail trade; Manufacturing; IT enabled services; Financial Services; and Oil & Gas.

The Lamu Port-South Sudan-Ethiopia-Transport and Economic Development project.

The Power Africa project aims to help provide electricity to two thirds of the 800 million people in sub-Saharan Africa without electricity, add 10 gigawatts of electricity generation capacity through cooperation between US government agencies and the private sector.

Standard Bank, African Markets Revealed, September 2016

OPPORTUNITIES

In the ICT domain, the biggest construction opportunity is the IT business hub Konza City, known as Africa’s Silicon Savannah, valued at US$14.5 billion

The population is expected to grow by 27.6% by 2024, this provides sustainable opportunities in the wholesale & retail trade sector

US$ 62.4 billion worth of rare earth deposits have been found in Kenya making it a leader of such reserves

Standard Bank, African Markets Revealed, September 2016

NIKIWE IN KENYA View Gallery

UNPACKING MOZAMBIQUE

Sector Contributions to GDP

Industry, 21.70%
Services, 27.10%
Agriculture, 51.40%
Standard Bank, African Markets Revealed, September 2016

Inflation and real GDP growth

Inflation

2014, % 2.6
2015(f), % 2.8
2016(f), % 3.2
2017(f), % 3.6
2018(f), % 4.6

Real GDP Growth

2014, % 7.4
2015, % 6.2
2016(f), % 5.6
2017(f), % 6.0
2018(f), % 7.0
Standard Bank, African Markets Revealed, September 2016

Top import products

Mineral fuels, oils, distillation products (19.50%)

Machinery, nuclear reactors, boilers (12.98%)

Vehicles other than railway (9.84%)

Standard Bank, African Markets Revealed, September 2016

Top export products

Mineral fuels, oils, distillation products (30.04%)

Aluminium and articles thereof (29.92%)

Miscellaneous chemical products (9.38%)

Standard Bank, African Markets Revealed, September 2016

SOCIAL

Population: 25.3 million, Diverse and young population

Languages: Portuguese

Development challenges: High Poverty Levels, Low Education Standard

Standard Bank, African Markets Revealed, September 2016

TECHNOLOGY

Low penetration levels in large mobile market

Mozambique has one of the smallest fixed-line markets in Southern Africa

The country’s internet sector depends more on wireless access technologies

Mobile operators in the country are attracting data users to their mobile broadband networks.

Standard Bank, African Markets Revealed, September 2016

POLITICAL/LEGAL

The ruling president, President Filipe Jacinto Nyussi, was elected on 15 January 2015.

Mozambique’s legal system represents a mixed system of Portuguese civil law and customary law. Islamic law may, however, be applied in rural, predominantly Muslim villages with no formal legal systems.

Standard Bank, African Markets Revealed, September 2016

ENVIRONMENT

A long civil war and recurrent droughts have resulted in more people migrating to urban and coastal areas, with adverse environmental consequences.

Natural hazards: Severe droughts; devastating cyclones and floods in central and southern provinces.

Standard Bank, African Markets Revealed, September 2016

OPPORTUNITIES

Mozambique presents many investment opportunities, especially in terms of exploitation of the country’s vast natural resources and infrastructure development.

The Mozambican government generally welcomes foreign investors and encourages foreign direct investment in almost all sectors of the economy.

Foreign ownership or control of companies is not restricted. Foreign businesses and mostly operate without too much intervention from authorities.

Standard Bank, African Markets Revealed, September 2016

OPPORTUNITIES

The government has created a number of incentives for foreign investors, such as industrial free zones, tax breaks and a stable currency.

The region’s strong economic growth bodes well for telecommunications services. The economic development in Mozambique offers very good telecommunications development opportunities.

Standard Bank, African Markets Revealed, September 2016

CHALLENGES

A rigid local labour market with a largely unskilled domestic population and strict restrictions on hiring migrant workers is a significant deterrent.

Despite several incentives to foreign investors, there are a number of high tax rates that make operating in the country less viable.

Standard Bank, African Markets Revealed, September 2016

CHALLENGES

The country’s legal system recognises and protects property rights to buildings and movable property BUT private ownership of land is not allowed in the country. Land continues to be owned by the state.

Foreign investors may need a local equity partner who is familiar with the Portuguese language and the bureaucracy at national, provincial, and district levels if they are not familiar with the country.

Standard Bank, African Markets Revealed, September 2016

NIKIWE IN MOZAMBIQUE

UNPACKING CôTE D' IVOIRE

Sector Contributions to GDP

Industry, 22%
Services, 52%
Agriculture, 26%
Standard Bank, African Markets Revealed, September 2016

Inflation and real GDP growth

Inflation

2015, % 1.3
2016(f), % 1.2
2017(f), % 1.9
2018(f), % 2.1
2019(f), % 1.6

Real GDP Growth

2015, % 9.0
2016(f), % 8.5
2017(f), % 7.9
2018(f), % 8.1
2019(f), % 7.8
Standard Bank, African Markets Revealed, September 2016

SOCIAL

Population: 22 967 636 people in 2016

Côte d’Ivoire is classified as a lower-middle income developing country with a GDP per capita of USD1 495 (2015 estimate)

The unemployment rate has dropped over time to reach 4% in 2015

Languages: Portuguese

* French (official), Senoufo, Yacouba, Agni, Attié, Guéré, Bété, Dioula, Abé, Mahou, Wobé, Lobi

Standard Bank, African Markets Revealed, September 2016

TECHNOLOGY

The country has one of the most diverse mobile markets in the region, with relatively healthy levels of competition.

Focus will be placed on advanced services, such as 3G, 4G and mobile money, with mobile services leading the market as fixed investment and uptake remain low.

Côte d'Ivoire's internet sector, like many others in the region, remains underserved.

Standard Bank, African Markets Revealed, September 2016

POLITICAL/LEGAL

Côte d’Ivoire became an independent state in 1960 after gaining its independence from France.

President Alassane Ouattara has been the president since December 2010.

Political stability is needed for Côte d’Ivoire to achieve its goal of becoming an emerging nation by 2020.

Standard Bank, African Markets Revealed, September 2016

ENVIRONMENT

Côte d'Ivoire has suffered severe deforestation due to uncontrolled fires, logging for tropical woods (once the country’s largest export by volume); and water pollution from sewage, and industrial and agricultural effluents.

The coast has heavy surf and no natural harbours.

During the rainy season, torrential flooding is possible.

Standard Bank, African Markets Revealed, September 2016

OPPORTUNITIES

President Ouattara has improved the operational environment, cutting red tape and making it easier for firms to do business in the country.

Low and stable price growth and a coherent monetary policy from the regional central bank will make Côte d'Ivoire an increasingly attractive investment proposition.

The country is benefitting from a boom in infrastructure investments, which is spurring robust economic growth and demand for new vehicles, particularly heavy vehicles.

Standard Bank, African Markets Revealed, September 2016

OPPORTUNITIES

The country offers a relatively diversified portfolio of export and import partners, thereby lowering the risk of changes in supply and demand from individual countries.

Support measures tailored to small and medium-sized enterprises (SMEs) will be strengthened to enhance their contribution to GDP and boost the creation of jobs for young people.

Standard Bank, African Markets Revealed, September 2016

CHALLENGES

Côte d'Ivoire is still, for now, a net oil exporter. Therefore, any decline in prices is a disadvantage to the country, especially as production continues to decline

The country has a diversified export base and is fairly resource rich, but the lack of domestic manufacturing capacity leaves it highly reliant on imports of both capital and consumer goods.

Standard Bank, African Markets Revealed, September 2016

CHALLENGES

The government's inability to create real reconciliation in the wake of Côte d’Ivoire’s 2010–2011 political crisis indicates that political risk will remain high.

Foreign firms may experience difficulties in effectively competing with local and major French firms, which control a significant portion of strategic economic sectors.

Standard Bank, African Markets Revealed, September 2016

Nikiwe in CôTE D' IVOIRE

UNPACKING NIGERIA SOON...

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