conference report - africa 2016 - Business for Africa Forum

CONFERENCE REPORT AFRICA 2016

BUSINESS FOR AFRICA, EGYPT AND THE WORLD Sharm el-Sheikh, 20-21 February 2016

Contents 4 Executive Summary 6 Setting the Scene 8 Main Themes and Issues 10 Official Opening 12 Presidential Roundtable 13 Egypt: A K ey Partner for Business with Africa 13 The Africa Rising Story 14 Business: Succeeding in the African Marketplace 15 Special Address: Akinwumi Adesina, President, AfDB 16 New Partnerships for African Growth 20 Insights: A Conversation with Carlos Lopes 18 Insights: A Conversation with M-Kopa's Jesse Moor and Miguel Azevedo 19 Success Story: Qalaa Holdings 20 Sector Stream Highlights 24 Keynote Address: His Highness the Aga Khan 25 Science and Technology: A Conversation with H.E. Cheikh Modibo Diarra 26 Agreements Signed at Africa 2016

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EXECUTIVE SUMMARY

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frica 2016, an event held in Egypt under the high patronage of Egyptian President H.E. Abdel Fattah el Sisi, brought together a wide range of delegates from Africa and elsewhere to discuss business, political and economic issues relevant to one of the world’s fastest growing frontiers. The first Africa-to-Africa business and investment forum was attended by 1,800 participants from the public and private sectors. The primary objective of the Forum was to accelerate private sector engagement and investment within Africa, to help develop new ties and partnerships, and to highlight the African opportunity. The event, held in the resort town of Sharm el-Sheikh, provided a much-needed platform for the public and private sector to network, discuss, and advance African business projects. The host, Egypt’s President Abdel Fattah el Sisi, welcomed delegates, saying Africa 2016 was a landmark platform that brought together a wide range of the foremost political and business leaders in Africa and across the world to discuss ways of enhancing pan-African international trade and investment and promote business, with a major focus on the role of the private sector. “The theme of the forum is business in Africa, whether we speak of African business in Africa, international business in Africa or international business through Egypt in Africa.” The leaders outlined their challenges in the current environment of low oil prices but also highlighted the opportunities that were emerging as their economies diversified. Other luminaries who attended were: Akinwumi Adesina, President of the African Development Bank; Heba Salama, Director of the COMESA Regional Investment Agency and Ambassador Hazem Fahmy, Secretary General of the Egyptian Agency of Partnership (EAPD), Cheikh Modibo Diarra, former Prime Minister of Mali, and Dr Benedict Oramah, President of Afreximbank. Delegates were drawn from a range of governmental, non-government and private sector or-

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ganisations. They included international business leaders with current and potential investments in Africa, financiers, international organisations and multilateral agencies, thought leaders, consultants, analysts, economists, legal experts, academics, risk professionals, advisors as well as leading local and international media. The conversations and debates reflected a changing Africa, which continues to grow and surprise. But it also highlighted the challenges that many countries face and the headwinds that are causing

Five Heads of State joined President el Sisi in Sharm elSheikh. They were: H.E. Teodoro Obiang, President of Equatorial Guinea; H.E. Hailemariam Desalegn, Prime Minister of the Federal Republic of Ethiopia; H.E. Ali Bongo Ondimba, President of the Gabonese Republic; H.E. Muhammadu Buhari, President of the Federal Republic of Nigeria; H.E. Omar al-Bashir, President of the Republic of Sudan.

growth projections to be lowered, governments to be more focused and prudent and companies to be more resilient. The Africa 2016 Forum called for greater trust and cooperation, between government and the private sector but also between African countries to encourage their companies to look beyond national borders for partners and opportunities. Akinwumi Adesina, President, African Development Bank, called for Africans to be realistic, not pessimistic, about the state of the continent. “We must not believe the narrative of doom and gloom

on Africa. Just look at the facts: while the global economy is projected by the IMF and the OECD to grow at 3% this year, Africa is projected to grow at 4.4% in 2016 and strengthen further to 5% in 2017. That is good news. African economies are not unravelling – they are resilient. Africa is still the best place to invest." But he conceded that Africa still faced challenges related to financing its development and cautioned against the rising debt profile of many countries that had raised finance on international capital markets. “The message and lesson are clear: African countries should accelerate their pace of growth and development. Africa must think big, act big, and deliver big. We must never have low aspirations for Africa.” His Highness the Aga Khan, Chairman of the Aga Khan Development Network, opened day two of the Africa 2016 Forum with a keynote address that highlighted the African opportunity as well as the need to build layers of trust. “My enthusiasm today is especially strong because of the message which is at the heart of this Forum. And that message is, quite simply, that Africa’s moment has come,” he said. However, he called on delegates to recognise the importance of unity. “We need to address a problem that has long plagued the human race. I refer to the fear we so often have that our environment will be controlled by others, to the point where we distance ourselves from potential worthy partners; a difference that can lead to the fragmentation of society.” During a frank interview, United National Economic Commission for Africa (Uneca) Executive

Egyptian President H.E. Abdel Fattah el Sisi at the Forum

Secretary Carlos Lopes noted that the Africa Rising story is not an African construct but a foreign narrative based on a few successful trends that do not take into account the lack of transformation of Africa’s economies. He stated that Africans have to concentrate on what matters and what matters is structural transformation, what he calls growth with quality – and this transformation requires concentrating on several pillars: improving agricultural productivity and building manufacturing capacity as well as growing the formal economy and tax base. Throughout the Forum, it was agreed that Africa’s long-term success is underpinned by strong demographics, rapid urbanisation and the digital revolution. Breakaway sessions were held on a wide range of issues and topics. These included ICT, health, industrialisation, entrepreneurship, finance, logistics and infrastructure, agriculture and energy. In these interactive sessions, panellists and delegates took a closer look at the issues and recommended ways the performance of these sectors could be improved. The wealth of opportunities in Africa reflect the fact that there is a lot that still needs to be done to boost Africa’s development. The leadership needed to take responsibility and change the continent is no longer about heads of state alone. Increasingly a broad-based leadership is coming to the fore to address Africa’s challenges. This leadership in Africa is not just about a few individuals, nor is it just about politics: it includes the private sector, civil society, individuals in academia, as well as innovators, among others. 2 0 1 6

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SETTING THE SCENE

food, IT, tourism, financial services and retail. Regional integration and favourable trade agreements between African countries continue to be critical to this process. The landmark tripartite agreement between COMESA, SADC and the EAC, which was launched in Sharm el-Sheikh in June 2015, will create the largest trading bloc in Africa, with 26 countries, a combined GDP nearing $1.2 trillion, and a market of close to 620 million consumers. With interest in the continent growing exponentially, some of today’s newest business players are originating from non-traditional regions such as South America, Eastern Europe, the Gulf, and Africa itself. Well-established and new partners from Europe, North America, and Asia continue to be valued. Egypt is positioned at the crossroads

The Forum was broken into various different types of session offering delegates the following:

Landia sini doluptas iliqui dus simi, et abor sum ius nis debis archicilique cuptur, occus as eliamusa net que volorehenes et et

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he continent has a GDP in excess of $2 trillion; a growing middle class of more than 313 million consumers; consumer spending breaking through the one trillion dollar mark and projected to reach $1.4 trillion by 2020; a labour force estimated at 382 million people and expected to grow to over 500 million by 2020; and the youngest population in the world, which tomorrow will yield the lowest dependents-to-workers ratio in the world. Traditional sectors of growth and investment are giving way to newer sectors, the growth of which reflect the changes taking place on the continent. They include

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Plenary sessions featuring world-renowned personalities shaping the future of business in Africa and the world; One-to-one and one-to-two discussions where highly influential industry professionals shared their African experience and business know-how; Keynote speeches, in both plenary and parallel session formats, and case studies by business and government leaders as well as dignitaries; Parallel sessions presenting public and private sector experts who shared case studies, new projects, and insights needed to move forward in specific sectors in Africa and the world;

The venue for Africa 2016: Jolie Ville Golf & Resort in Sharm el-Sheikh, Egypt

The ‘Invest in Africa Space’ where representatives of African countries showcased their current opportunities and answered specific questions regarding doing business in their home nations; The B2B ‘Meeting Space’ for securing important meetings with public and private sector decision-makers; A large array of executive-level impromptu networking occasions at the venue’s salons, as well as during coffee breaks, and lunches; An exclusive gala dinner.

AFRICA 2016 SOUGHT TO DEMYSTIFY ISSUES ABOUT INVESTING IN AFRICA AND LOOKED AT SOME OF THE OPPORTUNITIES AND CHALLENGES INVOLVED. of Europe, the Gulf, Asia, and Africa, where trade, investment and cultures have been taking place and crossing paths for over 7,000 years. With 8% of global seaborne trade between the East and the West passing through the Suez Canal – a number which is expected to grow with the new Suez Canal Regional Development Project – it is easy to comprehend Egypt’s ever-growing business potential. Opening the Forum, Egyptian president, H.E. Abdel Fattah el Sisi, said, “It is an honour to host the Africa 2016 Forum, a landmark platform that will bring together a wide range of the foremost political and business leaders in Africa and across the world to discuss ways of enhancing pan-African international trade and investment and promote business, with a major focus on the role of the private sector.” President el Sisi said Africa 2016 would turn a spotlight on the success stories of the continent, draw on lessons from the past and showcase key achievements while looking forward to the future. Africa 2016 aimed to enlighten delegates about the different business cultures in Africa. While business is flourishing on the continent, newcomers have yet to grasp that investing in Africa is not like investing in the Gulf, Europe, or Asia; the way of doing business differs from not only region to region but from country to country. Even those with deep roots on the continent are facing new realities. Africa 2016 sought to demystify issues about investing in Africa and looked at some of the opportunities and challenges through debates, case studies and breakaway sessions looking at specific topics. 2 0 1 6

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MAIN THEMES AND ISSUES

R E G I O N A L I N T E G R AT I O N The topic of regional integration was woven through the two days of discussions and presentations. The Tripartite Free Trade Area, covering COMESA, the Southern African Development Community (SADC) and the East African Community (EAC), has been launched and negotiations are under way to deal with the many complex issues involved in integration. The value of and need for intra-African trade is well recognised. But with intra-regional trade at between 12% and 16% – the lowest in the world – the process needs to be speeded up. Without integration, African economies will not be able to address many of their challenges. Apart from trade-specific issues, there are other areas that need to be looked at, such as how to formalise African business and trade. Currently, the largest proportion of trade across African borders is informal so it is not captured in the figures, nor do governments generate revenue from it. This highlights a bigger issue – the fact that Africans do not want to pay taxes. Africa’s average tax-to-GDP ratio is about 17% – half of the global average. In terms of sophisticated areas of transactions such as in financial services and telecoms, the regulators are often not up to speed with technological developments and fail to capture many transactions.

A number of key issues were raised and debated at the Forum.

NEW CHALLENGES The headwinds Africa is currently facing was a key thread running through presentations and discussions. The reasons include the widespread low growth environment in key markets such as Europe; a slowdown in demand for commodities from China; interest rate hikes in the US, which are drawing emerging market funds out of Africa; immigration and security problems in Europe; and low oil and commodity prices. Presidents of Africa’s petro-states outlined the issues they are facing in a downward oil price cycle and the balance of payments crisis that has resulted from this. Many are also oil importers as a result of inadequate refining capacity for the oil they do produce, such as Egypt and Nigeria. This, together with a more general import dependence as a result of declining or low industrial capacity, has created serious fiscal and currency pressures that are causing countries to look at diversification. It is easy for Africans to get despondent about the continent’s performance not measuring up to the ‘Africa Rising’ story but it is important to remember this is not an African construct but a narrative invented by western financial media. It emerged at a time when opportunities on the continent were seen as being driven by the rise of the middle class, the commodity super cycle and high demand for African resources from emerging markets. The story was boosted by the fact that the continent was growing faster than any other region. But even with new challenges emerging, it is not a time for pessimism; it is rather a time to face the reality that many of the problems countries face internally are because they have not transformed their inherited colonial constructs into broad-based economies. The focus now has to be on that transformation through industrialisation, innovation and maximising Africa’s competitive advantages.

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development and growth was a key topic of discussion. There are a number of new avenues for funding that have emerged over the past decade. The capital markets are starting to play an important role in financing Africa’s economic growth. With capital markets, companies have a new source of funding other than traditional banks. In 2015, Egypt's capital market contributed more than 15 billion Egyptian pounds to finance listed companies; an increase of about EP5 billion compared to 2014. Market capitalisation in 2013-2105 exceeded $1 trillion. According to the African Development Bank, the assets of sovereign wealth funds under management in Africa have risen from $114 billion in 2009 to $162 billion in 2014. Pension funds currently stand at $334 billion. And Africa today generates about $500 billion in domestic taxes. Remittances to Africa rose from $11 billion in 2000 to more than $62 billion in 2014 – a figure that far exceeds Official Development Assistance inflows. The trend of Africans investing in Africa is increasing the confidence of international partners to come to the table and help to finance development, particularly high-cost infrastructure funding.

T R A N S F O R M AT I O N

RISING DEBT LEVELS To address mounting problems at home, African governments have turned to Eurobonds and other forms of dollar-denominated debt to plug fiscal gaps and stimulate growth. Between 2006 and 2014, African nations issued Eurobonds of about $26 billion. But the challenge now for these nations is the rising cost of financing the foreign currency denominated debt, particularly as currencies weaken. Although debt is still low by international standards at about 37% of African GDP, most economies are not robust enough to manage it and there is a rising potential of countries falling into a debt trap and defaults should they continue to borrow heavily on global markets. Rather, countries should seek to fund their economies through locally generated resources.

AFRICA’S ABILITY TO RAISE ITS OWN FINANCING TO FUND DEVELOPMENT AND GROWTH WAS A SIGNIFICANT TOPIC OF DISCUSSION.

African countries have failed to transform their economies from the colonial structures they inherited, which were raw material driven, into modern broad-based economies capable of uplifting their citizens and building sustainable, quality growth. There are several key sectors that are integral to this transformation. ICT is a tool for the kind of development Africa needs, one where longstanding challenges can be solved by innovation, improved efficiencies and productivity and leapfrogging traditional methods in the search for African solutions to specific problems. It is also a way for solutions to be found to address challenges in communities far from urban growth. In this regard, technology can find solutions for pressing issues, including around agricultural productivity and the value chain, energy supply for low-income groups, manufacturing as well as health and education. The fact that about 720 million people use mobile phones on a continent of roughly a billion people means that technology solutions can easily be filtered down to the populace. The growth of agriculture is critical on a continent that remains a net food importer despite its vast resources. Manufacturing is another plank in the transformation of economies. Africans need to move more quickly up the value chain but instead many countries are seeing a trend of deindustrialisation. 2 0 1 6

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OFFICIAL OPENING

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pening the Forum, Egyptian president, H.E. Abdel Fattah el Sisi, highlighted the positive growth story in Africa. “Africa’s economic prospects are bright and growing. Africa 2016 presents an invaluable opportunity to explore new ways to leverage its growth potential and to engage in rich discussions, productive meetings and enlightening sessions on how to accelerate investments, create more jobs and sustain development,” he said. Egypt’s strong links with the rest of the world and access to a large pool of capital make it an attractive gateway for businesses wanting to access large African markets and private sector investors looking for growth partners. Egypt’s membership of COMESA since 1999, and being part of the Free Trade Area since 2000, makes it a strong partner for the rest of Africa. Africa 2016 reaffirmed the country’s commitment to participating actively in Africa’s renaissance and to strengthening partnerships and promoting cross-border private sector engagement. The volume of foreign direct investment into Africa has increased fivefold over the past 10 years, which indicates the richness of the continent in terms of natural, human and economic resources. The volume of trade between Egypt and the rest of Africa has increased by $5 billion and the ambition is to increase this again significantly over the next five years. Egyptian companies have invested more than $8 billion into the continent and have been a source of jobs and opportunity. “It is indeed a source of pride for us, what we have achieved in Egypt in applying the principles of African integration,” noted the president. He said the increasing interest in Africa from other regions means it is important to update economic and legislative structures to keep up with the accelerating pace of development and investment into the continent. Africa has shown great resilience to the successive crises that have shaken world

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economies, shown by the number of countries that have continued to have high growth rates. In a special address, H.E. Dr. Hailemariam Desalegn, Prime Minister of the Federal Democratic Republic of Ethiopia, said that Africa is no longer “the dark continent” of strife. It is now home to some of the world’s fastest-growing economies, one of which is Ethiopia. Africa still has many opportunities for local and foreign investors, he said. “Today, in our globalised world, no country can achieve development in isolation,” Hon. Desalegn said, adding that Ethiopia was consolidating economic ties in the Horn of Africa by pursuing power, road and railway links with its neighbouring countries such as Djibouti, Sudan and Kenya. Ethiopia The ‘Succeeding in the African Landia sini doluptas Marketplace’ iliqui dus simi, et business abor sumpanel. ius nisL to r: Thebe Ikalafeng, debis archicilique Brand cuptur,Africa; occusDianna as Games; Kirubi, eliamusaChris net que Haco Tiger Brands; volorehenes et et and Sahbi Othmani, Rouiba. Below right: H.E. Dr. Hailemariam Desalegn, Ethiopia’s PM, delivering his Keynote Address

is committed to the development and sustainable utilisation of the Nile Basin, for the mutual benefit of countries connected to it. The Prime Minister said Ethiopia was determined to play a critical role in regional integration to attract foreign direct investment. Heba Salama, Director of COMESA Regional Investment Agency, the official partner of Africa 2016, said: “We have awakened, we will not sleep anymore”, quoting former Ghanaian president, Kwame Nkrumah. She added that Africa is the growth story of this century. African countries had successfully attracted $128 billion worth of foreign investment in 2015, an increase of 36% compared to 2014. “African investors contributed some 30% of those investments. The total size of African countries’ economies is expected to record $4 trillion by 2020, versus $2.4 trillion in 2016.” Hazem Fahmy, Secretary General, Egyptian Agency of Partnership for Development (Ministry of Foreign Affairs), closed the session with these words: “One hand alone cannot clap”, stressing the necessity for African countries to work closely together. He called for Africa 2016 to become a regular event. 2 0 1 6

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Egypt: A key partner for business and trade with Africa

PRESIDENTIAL ROUNDTABLE

THE FIVE LEADERS SPOKE ABOUT THE CHALLENGES BROUGHT ABOUT AS A RESULT OF THE LONG CYCLE OF LOW OIL PRICES.

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n the second Plenary Session on day one, five African leaders spoke about their challenges in an interactive session. H.E. Teodoro Obiang, President of Equatorial Guinea, H.E. Bongo Ondimba, President of the Gabonese Republic; H.E. Muhammadu Buhari, President of the Federal Republic of Nigeria; and H.E. Omar alBashir, President of the Republic of Sudan spoke about the challenges brought about as a result of the long cycle of low oil prices. The countries are battling with fiscal crises that are a result of challenges brought about by the dependence on one main sector – oil and gas. Rev-

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enues and export proceeds have plummeted and the governments are now looking at other sectors of the economy for long-term growth. This includes wide economic diversification and enhancing more traditional economic activities such as fishing, agriculture and agribusiness, mining, and services. The panel expressed optimism about the opportunities available, such as in agriculture and solid minerals, infrastructure development and increased trade between countries. They also called for greater local beneficiation of raw materials and increased industrialisation to reduce the high cost of imports, which was eroding foreign currency reserves.

.E. Sameh Shoukry, Minister of Foreign Affairs, Arab Republic of Egypt, said Egypt is committed to the African continent, politically and economically, and to building relationships it sees as being mutually beneficial. The country was well positioned to take advantage of South-South cooperation. Africans need to take advantage of the resources at their disposal, including a young population and natural resources. H.E. Ashraf Salman, Minister of Investment, Arab Republic of Egypt, said the government had realised that in order to attract investment, the country had to focus on improving its infrastructure. In this regard, it had done a lot in the past 18 months in terms of power generation, renewable energy and road building, adding 25% to the existing road network. It is also building more low income houses and improving sanitation. The government is furthermore working on removing unnecessary bureaucracy and changing the mind-set within government to attract investment. Karim Awad, Group CEO, EFG Hermes, Egypt, said as investors look at Egypt and Africa at large, there is a need to simplify the bureaucracy to make it easier to do deals and set up businesses. Karim Sadek, Director, Rift Valley Railways, Kenya, asked about opportunities in Africa, said there was no doubt transport infrastructure was needed as well as energy. Developing these two sectors would make Africa more competitive. Also needed in the mix was access to finance. He said there are sizeable pockets of net worth in Africa at a private and national level. For example, Nigeria’s state pension fund had $15 billion with a mandate to invest a portion of that across Africa. A similar situation existed in South Africa. Currently much private wealth goes offshore or is invested into real estate, which he maintained is a very unproductive place to put it. It is important to close the finance gap and ensure that investments are used in a smart way with a high return. Eng. Ahmed El Sewedy, President and CEO, Elsewedy Electric, Egypt, said the company’s main markets are Europe, the Gulf and Africa. In Africa, the focus is on energy generation and distribution. Without energy, there is no industry. He said the company sees the market as a long-term play and it is not in a hurry.

The Africa Rising story: Where does the continent really stand? Africa Rising is not just a slogan to be bandied about. There are concrete trends being witnessed across the continent to support the narrative. Africa’s challenges are being solved with local solutions, spurred by a youthful population tired of waiting for help from the West. Governments are also catching on to the change in attitude. This was summed up by Ali Faramawy, Corporate Vice President, Middle East and Africa President, Microsoft, Middle East and Africa, who said that once, leaders would ask companies to hire hundreds more people locally and increase their footprint to benefit the local economy. Now they are asking foreign companies to empower the local enterprises so that those entrepreneurs could hire hundreds of people. Governments and investors are using common local technology platforms to build local value with the potential for creating the local Uber, the local AirBnb, using different styles. Both in government and the private sector, ICT is driving growth. New business models such as Uber and Youtube show that it is not only creators of services that need to own companies; models are changing to allow entrepreneurs to become empowered links in these business chains. All the ingredients are there. There’s a young population that is not looking for jobs but is creating them. This is a historic opportunity Africa cannot miss. The private sector has to tap into this to develop their unlimited potential. The service sector has a huge role in shaping today’s economies and governments needing to diversify should pay attention. Policies and measures must be put in place to enable the better working of value chains' function across borders. There’s a need for improved understanding of how global economies operate. How we produce, trade and consume has changed fundamentally. A stronger African Union has had its benefits for the African continent. There have been fewer coups, a thawing of hostilities between governments, private sector and civil society players. The governments have then been clear in their regulatory role, providing a better environment for the private sector to thrive. According to H.E. Sindiso Ngwenya, COMESA Secretary General, improving connectivity between countries has been a positive step, not just transport and infrastructure but institutional connectivity between regional, local and global banks, for example. Africa can wean itself from dependence on commodity trade, if the experience of Côte d’Ivoire, now a leading cocoa processor with the help of Afreximbank, is followed.

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Special Address: Akinwumi Adesina, President, African Development Bank

BUSINESS: SUCCEEDING IN THE AFRICAN MARKETPLACE

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ocal partnerships are key in business success in new markets because local partners have a better understanding of the environment and soft issues that influence it. Kenya ranks highly on the scale of countries in which it is easy to do business, according to Chris Kirubi, CEO, Haco Tiger Brands, Kenya. When expanding markets and developing partnerships, it is important to do due diligence on potential partners – find out their long-term goals, corporate responsibility commitments and whether or not the region has enabling financial rules. He said Nigeria ranks as one of the most difficult places to work in without local partners who understand the soft issues on the business front. According to Mr Kirubi, it is also important to know which other regional markets are available to you in the new area of doing business. Regional bodies such as COMESA, EAC and SADC offer member states easy access to markets and are worth considering before expansion elsewhere. While investors need a favourable environment for their business to thrive, this cannot be achieved without the involvement of government. Investors have a responsibility to engage the government of the day by pointing out negative factors that are slowing down business and offering possible solutions. Mr Kirubi said organised business in Kenya has regular structured meetings with high-level government officials. Sahbi Othmani, CEO, Rouiba, Algeria, noted how it was cheaper to get raw materials from South America than source them locally because the high costs of doing business made local products uncompetitive unless inputs could be sourced cheaply. Mr Kirubi said expanding companies should find creative ways to source inputs from the markets where they wanted to invest in order to create official and

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Chris Kirubi, CEO, Haco Tiger Brands, Kenya, says the country is one of the easiest places to do business

THE PANELLISTS AGREED THAT AFRICAN COUNTRIES MUST LEARN TO TRADE WITH EACH OTHER INSTEAD OF ALWAYS LOOKING OUTWARDS. consumer buy-in and improve the purchasing power of more consumers. To succeed in intra-African trade and investment, investors must have an understanding of the market, the legal frameworks and ease of doing business in the chosen countries and sectors. In the consumer goods business, it is not enough to produce good quality products; it is also essential to develop models for distribution that maximise available markets. Dianna Games, CEO of Africa

@ Work, said domestic or regional brand visibility is not sufficient when trying to break into new countries or regions; it is essential to rebuild brand awareness and not assume anything about customers’ knowledge of or exposure to your brand. Panellists agreed that Africa does not have a problem of money; it has a problem of understanding each other and coming to trust each other. Africans have to share information and support each other’s businesses. African countries have to learn to trade with each other instead of always looking outwards. There is a growing youth population on the continent; they have to be engaged at and by all levels of business, including leadership, to utilise their fresh ideas and positive energy. African markets are growing fast, but there is also potential in exporting business abroad.

Akinwumi Adesina (pictured below) said the ‘Africa rising’ story was not over, despite media reports to the contrary. “Yes, African economies face economic headwinds from the significant decline in the price of commodities, be it oil, minerals and metals or agricultural commodities. The slowed-down demand from China, whose economy accounted for a large part of the trade with Africa, has compounded the current account situation and domestic fiscal imbalances for many countries. “But we must not believe the narrative of doom and gloom on Africa. Just look at the facts: while the global economy is projected by the IMF and the OECD to grow at 3% this year, Africa is projected to grow at 4.4% in 2016 and strengthen further to 5% in 2017. That is good news. African economies are not unravelling – they are resilient. Africa is still the best place to invest.” But he conceded that Africa still faced challenges related to financing its development and cautioned against the rising debt profile of many countries that had raised finance on international capital markets. Between 2006 and 2014, African nations issued Eurobonds of about $26 billion. But the challenge now for these nations is the rising cost of financing the foreign currency denominated debt, he said. “Africa must not fall again into the debt trap. To avoid it, there is need to urgently focus on macroeconomic stabilisation and fiscal consolidation, and rapidly diversify African economies, broaden the export market destinations, and expand the export mix. And most importantly, Africa must shift its focus to domestic resource mobilisation for the capital formation for sustained growth.” This was starting to happen, he said. The value of sovereign wealth funds assets under management in Africa has risen from $114 billion in 2009 to $162 billion in 2014. Pension funds currently stand at $334 billion. And Africa today generates about $500 billion in domestic taxes. With remittances to Africa rising from $11 billion in 2000 to more than $62 billion in 2014 – a figure that far exceeds Official Development Assistance inflows – Mr Adesina said countries should tap into and securitise remittances for development. “Africans investing in Africa sends a powerful signal.” Mr Adesina said that some challenges need to be tackled in order to unlock the enormous potential of African countries. “We call them the High Fives for Africa: Light Up and Power Africa; Feed Africa; Industrialise Africa; Integrate Africa; and Improve the Quality of Life for Africans. “The message and lesson are clear: African countries should accelerate their pace of growth and development. Africa must think big, act big, and deliver big. We must never have low aspirations for Africa.” 2 0 1 6

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Insights: A conversation with Carlos Lopes,

NEW PARTNERSHIPS FOR AFRICA’S GROWTH

Executive Secretary, United Nations Economic Commission for Africa

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t. Hon. Mark Simmonds (right), Former Foreign and Commonwealth Minister for Africa, the Caribbean, Conflict Prevention and International Energy in the UK, asked whether the UK felt displaced by China in its engagement with Africa, said international relations was not a zero sum game and different countries, companies and other players decided on engagement depending on the different circumstances. London, he added, was increasingly becoming a hub for financial transactions and business deals within Africa for countries around the globe. Rt. Hon. Simmonds said the UK continued to view Africa as a strategic partner and a fast-growing continent with a high return on investment. It was exciting to see the level of ambition and competition that exists among African countries to be leaders on the continent, which was helping to drive change on the continent. Hon. Felix Mutati, MP, Republic of Zambia, said Africans are increasingly hostile to the policy often employed by their governments with China, of swapping commodities for infrastructure and are now calling for proper transactions in this regard. He also said China needed to work harder to narrow the cultural gap between Chinese and African workers in their projects on the continent. Mutati outlined the difficulties Zambia was having economically at present, saying this had led the government to shift its foreign policy focus from one of diplomacy to one of economic engagement. China remained key in this regard because it was able to respond more quickly to Zambia’s needs. Hisham El Khazindar, Co-Founder and Managing Director of Qalaa Holdings, when asked if Egyptian companies regarded themselves as being African, said Egyptian companies had strong ties with the region and saw it as a natural area of expansion for them given the geographical connec-

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“THE UK CONTINUES TO VIEW AFRICA AS A FAST-GROWING CONTINENT WITH A HIGH RETURN ON INVESTMENT”

Rt. Hon. Mark Simmonds

tion. He said President El Sisi was driving a stronger engagement with Africa but Egyptian companies, in particular Qalaa Holdings, had deep ties with the continent that preceded this new diplomatic drive. On the future, he said African governments had a responsibility to create an environment that would keep Africans at home to pursue their fortune and their dreams, rather than lose them to foreign countries where they sought success. Prakash Lohia, Chairman of Indorama in India, said the company operated in 3 African countries out of 24 worldwide. One of these was Nigeria, where it was able to execute a large project on time and on budget. What enabled this to happen was connecting with a wide range of local stakeholders and taking them along on the project.

Dr Carlos Lopes explained that it is easy for Africans to get despondent about the continent’s performance not measuring up to the “Africa Rising” story but it is important to remember this is not an African construct but a narrative invented by Western financial media. It is a narrative that emerged at a time when opportunities on the continent were seen as being driven by the rise of the middle class, the commodity super cycle and high demand for African resources from emerging markets. The story was boosted by the fact that the continent was growing faster than any other region. Now there is pessimism because of the mounting challenges in African economies and questions are asked about whether the ‘Africa Rising’ narrative was misplaced. It is not a time for pessimism but rather a time to face the reality that many of the challenges countries are facing internally are because they have not transformed the colonial constructs they inherited into broad-based economies. “Africans have to concentrate on what matters. What matters is structural transformation – growth with quality,” he added. Mr Lopes said it is easy to be pessimistic about the slide in the price of some commodities but this does not affect all commodities. Some that are important for African producers are quite strong – gold, platinum, cocoa and coffee, for example. He said although there are concerns about rising debt in Africa, it still only averages about 37% of GDP, which is low by international standards. Africans must maintain perspective about their challenges. Regional integration is moving too slowly despite negotiations towards larger free trade areas. Intraregional trade stands at 16% – by far the lowest in the world. A large amount of African trade is informal and evades customs. This highlights a bigger issue – the fact that Africans do not want to pay taxes. Africa’s average tax-to-GDP ratio is about 17% – half the global average. In terms of sophisticated areas of transactions such as financial services and telecommunications, the regulators are often not up to speed with the development of the technology and fail to capture many transactions. There are many reasons for optimism. Africa’s long-term economic story is generally positive despite the structural issues. The continent has three main things in its favour: demographics, including urbanisation; agriculture and the potential to feed Africa and the world; and the potential to develop the green economy. Change is starting to happen. For the first time, the discussion about leadership is not just about heads of state; it is about many other areas of leadership including civil society, academia, innovators and business. 2 0 1 6

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Insights: A conversation with Jesse Moore, Founder and CEO, M-Kopa, Kenya, and Miguel Azevedo, Head of Investment Banking Africa, Citigroup

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lthough Africa is facing serious headwinds currently, there is still interest in investing on the continent, particularly in larger markets such as Nigeria, Côte d’Ivoire, Ghana, Egypt and East African countries. Sectors of interest are financial services, agribusiness and consumer goods. However, given the challenges, it is important for investors to take a long-term view of the continent’s potential. An example of a company that has done so is Coca Cola, which recently bought a 40% stake in Nigerian fruit juice and dairy company Chi Limited despite the significant challenges this oil-producing nation currently faces. There is also interest from international investors in technology start-ups that have the potential to be scaled up. An example is M-Kopa, the global leader of “pay-as-you-go” energy for off-grid customers using solar power products. Since its launch in October 2012, M-Kopa has connected more than 280,000 homes in Kenya, Tanzania and Uganda to solar power, and is now adding over 500 new homes each day. M-Kopa’s Founder and CEO, Jesse Moore, said significant investment has been raised for the M-Kopa project – $30 million in just four years – mostly from investors in developed countries, including Silicon Valley in the US, who have shown an appetite for African innovation. However, African investors, who could play a leading role in the sector, have not come to the party. Although African venture capital and equity funds are less mature than their US and European counterparts, they have an opportunity to play a leading role in the sector. “The opportunity is there for local venture capital funds to build a new Silicon Valley,” said Jesse Moore. Miguel Azevedo of Citigroup said it was important for Africans to invest in listings of African

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Left: Ahmed Heikal, Chairman and Founder of Qalaa Holdings. Above: Qalaa is an investor in Rift Valley Rail, which is rehabilitating 2,352km of rail, from Mombasa port to Nairobi and on to Uganda

Success story: Qalaa Holdings

Right: Jesse Moore, Founder and CEO, M-Kopa. Above: A company representative spreading the word about M-Kopa's products

companies, to show their confidence in the enterprises by putting their money down. An example is the listing of Nigerian oil and gas company Seplat on the London and Lagos stock exchanges in 2014, which raised $500 million. Half of this came from Nigerians.

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r Ahmed Heikal, Chairman and Founder of Qalaa Holdings in Egypt, said Qalaa Investments includes two large projects in its activities. The $3.7 billion refinery project in Egypt, driven and partly funded by Qalaa, is scheduled to go on stream by the end of 2016. The facility will result in a 60% reduction in diesel imports, saving vital foreign exchange. It is funded by both debt and equity from local and international

lenders and has no state guarantees. This is the type of deal that should be replicated elsewhere in Africa. Qalaa is also an investor in Rift Valley Rail, which is rehabilitating and building 2,352km of rail from the port of Mombasa to Nairobi and onward to Uganda. The company is looking at monetising oil finds in Uganda by moving oil along the line to the port and compressed natural gas from Mombasa to a proposed natural gas network to provide energy to Nairobi, in addition to other cargo hauls. Mr Heikal said energy and transport deficits are among the challenges that also present opportunities for Africa. Only 24% of Africans have access to reliable power. This is an opportunity that could partly be filled by solar and gas power resources, which are abundant in Africa. He said there is great potential in Africa. Despite challenges, many opportunities remain. The growth fundamentals are still in place – the demographic dividend, rich resource base, improving policy and governance as well as a reverse brain drain, which is a net benefit to the continent. But he cautioned that governments should be wary of increasing debt in order to address financial challenges. To avoid this situation, governments need to move out of the way and let the private sector, in association with large international lenders, drive infrastructure projects. Bureaucracy and regulation is holding back infrastructure delivery and investment in the sector. 2 0 1 6

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SECTOR STREAM HIGHLIGHTS

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The parallel sessions focused on a number of key strategic sectors. Here are the main points that came out of the discussions.

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A G R I C U LT U R E – K e y P o i n t s

ICT – Key Points • ICT has brought a new dimension of opportunity to Africa across all sectors, and it has the potential to make the continent self-sustaining. • Technology has started helping people to transform their lives – Africans are now spending less time on tasks that used to take up most of their daily energy and are becoming more productive as a result. • Despite the potential, ICT growth has not addressed unemployment levels or created jobs to expected levels because innovations are not being scaled up significantly. The digital dividend is not yet being felt. • For every 10% increase in access to broadband, GDP has the potential to increase by 1%. • Growth in ICT is not just a question of access but affordability and “last mile” solutions • Governments are not patronising local innovations sufficiently, preferring international suppliers. This is not helping the sector to grow. • However, Egypt provides an example of what could be done. H.E. Yasser Elkady, Minister of ICT, says technology is starting to transform the way the government delivers services and interacts with the citizenship. It is building infrastructure and a supportive ecosystem, including the establishment of innovation centres, and has invited investment funds to start engaging with local innovators. • It is key to have innovation driven by Africa’s specific needs and challenges to ensure products are well patronised. M-Pesa is a case in point. But it is not enough to create a product, it must also be well marketed and potential users educated 2 0

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mix of large corporations/states and small entrepreneurial companies. Technology allows Africa to leapfrog fibre/cable and go to new systems that are easier and cheaper to implement. This includes solutions such as micro grids and solar power. Kenyan company MKopa has brought power to thousands of homes in East Africa using solar powered batteries. The amount of financing required for energy projects means that African financial institutions can’t meet the costs. Renewable energy must be the future for Africa. The supply uncertainties can be bridged with good technology, resources and networking. Africa has the important role of meeting obligations under COP 21. The lack of infrastructure in Africa is an opportunity for the continent to be the world leader in innovation and create a standard for the rest of the world to follow.

The Forum generated intense media interest

about its benefits. This underlies the success of M-Pesa. • More capacity and partnerships need to be created between small and large ICT companies so the former can benefit from proven expertise. Huawei is an example of what technology can achieve. It had grown from a small company with a few employees in the 1980s to become a $60 billion company with 30,000 employees across the world. Successful strategies included annual investment of profits in research and development and forming partnerships with global suppliers to access best practice.

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E N E RGY – Key Po i n t s • Fixing the energy ‘conundrum’ is key for infrastructure and development projects in Africa to succeed. • The current supply of energy on the African continent is way below demand. • Out of the 600 million Africans who lack power, most come from low income and rural areas.

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Those off the grid spend approximately $20 billion a year on different energy sources, for example kerosene, which they buy on a daily basis. There is also still dependence on a few energy sources. For example Zambia is currently experiencing serious power shortages because its main hydropower source, Kariba Dam, is at record low levels. The solution requires a combination of wise energy consumption, energy protection and finding new sources of energy. Renewable energy sources are becoming more affordable as they are scaled up. Kenya is now almost meeting energy requirements after creating a framework for power generation and allowing for private sector involvement. There is now a standard Power Purchase Agreement and the sector has its own regulator. Kenya is a positive example of a country that is also benefiting from diversifying its sources of power: it has shifted from a more than 80% reliance on hydropower down to a mix of 48% hydropower and 40% geothermal power. Energy provision/solutions can involve a

• ICT can play an important role for growth in agriculture. With ICT, farmers and buyers can connect, reducing barriers in the market chain. • Africa can solve its own food problems with its available resources: vast amounts of arable land and available water resources across large parts of the continent. • ICT has enabled greater sharing of information among farmers while providing insights on seed variety, soils, and expertise to be shared virtually. Over a hundred ICT applications are available for farmers; they need to be harnessed for increased productivity. • Governments have a vital role to play in boosting growth in agriculture. Incentives can go a long way to spurring agricultural investment. • There is a need to harness the power of the growing youth population, which can provide not just the labour needed in agriculture but the potential for creating solutions to improve the sector. • According to Jamila Abass, Co-Founder, MFarm, Kenya, “Africa is not food insecure, it is [agriculture] infrastructure insecure. We’re in a tech era where we can know for sure using satellite technology how much maize we are growing. It is shameful for such a big and rich continent to be discussing food insecurity.” • Accurate, reliable, actionable information is the most important tool for agriculture in the present day. Citing the example of M-Farm, Jamila Abass said the mobile phone technology has enabled farmers to plan ahead for their operational needs, check demand for farm products and make decisions on when to sell. 2 0 1 6

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H E A LT H C A R E / PHARMACEUTICALS – Key Points • In the past two decades the health landscape in Africa has undergone transformation and made remarkable progress, but the continent still has the lowest life expectancy of all the world’s regions, according to the World Health Organisation: 54 years compared to the global average of 66 years. • At less than 1%, Africa’s per capita health expenditure is the lowest in the world. It is estimated that 80 to 85% of healthcare in Africa is provided by the government, while in India, 85% of healthcare is private, which provides efficiency. • Women and children carry the highest share of Africa’s heavy disease burden, with 4.8 million children dying annually, mostly from preventable diseases. • Some recent achievements in the health field: there was an 84% reduction in the estimated number of measles deaths between 2000 and 2011; in 2012, 15 African countries were on track to reduce child deaths by two thirds between 1990 and 2015, compared with five in 2008; 17 countries reduced their maternal mortality ratio by more than 50% from 1990 to 2010; and 46 countries are implementing integrated strategies and plans to improve maternal, newborn, child, adolescent and reproductive health • Collaboration with international research teams is the only way to produce good quality health products for affordable prices and help countries manage their own populations’ particular medicine access challenges. • African and international pharmaceuticals companies, universities and regulatory agencies need to work together to grow regional expertise in medicines development. • Insufficient sustainable financial resources. • Distribution channels for medical equipment and pharmaceutical products are fragmented • There is inadequate community involvement and empowerment in finding health solutions in Africa. • There is a shortage of pharmacists to conduct clinical research and develop new medicines.

FINANCE – Key Points • Capital markets are a major source of financing for African companies. In Egypt alone, the capital markets contributed by more than 15 billion Egyptian pounds in 2015 to finance listed companies; an increase of about five billion from 2014. • Market capitalisation in Africa currently exceeds 2 2

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• The right model for Africa is not just signing the cheque but also giving the necessary support for companies to transform and become regional players. • There is future interest in private equity investment in Africa through co-investment with existing private equity funds, or by setting up, directly, new funds for investors. • Players in the trade insurance sectors have products aimed at boosting business within the African continent. Such products include: political risk insurance, trade credit insurance, and export risk insurance. • Banks with international ownership such as African Export Import Bank have the purpose of financing, promoting and expanding intraAfrican and extra-African trade. This bank has identified infrastructure as an impediment to trade between countries and is focusing on financing sectors like energy (especially renewable energy) and aviation. • SMEs are growing in Africa. They have different funding sources including private equity, the capital markets and conventional lenders such as banks. • Since 2003, the African Trade Insurance Agency has supported more than $17 billion worth of trade and investments across the continent, secured an investment grade rating of 'A' from Standard & Poor's, and expanded membership with plans to attract even more African member countries and international financial institutions in the near term.


POLITICAL WILL AND REGIONAL CO-ORDINATION OF PROJECTS IS KEY TO MAKING THEM SUCCESSFUL.

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• Opening Press Conference: Amb. Hazem Fahmy in the main frame is the Director General of the EAPD, one of the main conveners of Africa 2016

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1 trillion dollars and provided the highest rate of return on investment in the period 2013-2015. African stock exchanges are working on harmonising listing requirements and other operational structures to attract more capital, increase the investment portfolio available, enable movement of capital across African countries and ensure transparency in the stock exchange market. The Africa Stock Exchange Association is now looking into exploiting second tier markets such as SMEs. Private equity is increasing in popularity among families aiming to expand businesses who are looking at other avenues away from conventional borrowing facilities offered by banks. African markets can be supported by private equity. In 2015 alone, about $4 billion worth of new funds were made available in private equity.

LOGISTICS AND INFRASTRUCTURE – Key Points • Some key success factors in the Suez Canal widening project include a legal framework with a lot of autonomy for implementers and being flexible about partnerships and models within a sound regulatory system. • Djibouti’s large port expansion plans have been criticised for being over-ambitious but the fact is that the east coast of Africa is under-served, with just a few ports serving a large hinterland of more than 100 million people. • Financing for infrastructure projects is not a problem. The main issues are the lack of bankable projects and the long time to finalisation, which are deterring investors. • Multinational companies looking at doing business in Africa do not always know how to get their goods in and out of the continent and are seeking expertise in this area. • Political will and regional co-ordination of projects is key to making them successful. 2 0 1 6

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KEYNOTE ADDRESS HIS HIGHNESS THE AGA KHAN, CHAIRMAN, AGA KHAN DEVELOPMENT NETWORK

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is Highness the Aga Khan, in his keynote address to the Africa 2016 Forum, extolled Africa's resilience, economic progress and new willingness to accept diversity. “What I see emerging today is a refreshingly balanced confidence in Africa – a spirit that takes encouragement from past progress, while also seeking new answers to new challenges,” he said. While the Aga Khan noted the upbeat spirit about Africa's economic future that emanated from the speeches of African leaders taking part in the conference, he cautioned that Africa still faces formidable challenges, including high unemployment levels among the continent's young people. But, he said, “The story of Africa's progress and potential is also impressive – whether we talk about growing GDP and foreign direct investment, whether we look at economic diversification and national resiliency, whether we chart the rise of a vital middle class – and the expansion of consumer spending – now breaking through the one trillion dollar mark.” He noted that the experience of the Aga Khan Development Network, which is active in 13 African

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His Highness the Aga Khan delivers his keynote address at the Africa 2016 Forum

INSIGHT THE POWER OF SCIENCE AND TECHNOLOGY countries and works in sectors including health, education, culture and economic development, supports the positive picture. He observed that fragmentation has long been one of the continent's main weaknesses, in terms of different ethnic groups, political parties, nations, and the private and public sector. And yet, he said, Africa was showing a new willingness to embrace diversity and he emphasised the importance of civil society in creating an enabling environment for progress, noting that it has often been underappreciated, marginalised or even dismissed. “But, in fact, it is often the quality of civil society that is the ‘difference-maker’. It not only complements the work of the private and public sectors, it can often help complete that work,” he noted. “In sum, I believe that social progress will require quality inputs from all three sectors – public, private and civil society. Sustainable progress will build on a three-legged stool,” he said, arguing that “cooperating across traditional lines of division does not mean erasing our proud, independent identities. But it does mean finding additional, enriching identities as members of larger communities – and ultimately, as people who share a common humanity. It means

A conversation with H.E. Cheikh Modibo Diarra (pictured above), former Prime Minister of Mali, and UNESCO Goodwill Ambassador for Science, Technology and Enterprise.

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.E. Cheikh Modibo Diarra outlined that African countries do not have the budgets to exploit the learning and application of science and technology effectively. In order to build scale in this important area, they need to collaborate by setting up centres of excellence to house their best scientific minds. These can be linked to universities and to the private sector to help them become more competitive. To properly exploit the expertise, countries need to ensure scientific minds are applied to advancing the continent’s competitive advantages, such as agriculture, and find ways to solve problems and build capacity and expertise. Governments could consider tax breaks for training and funding sci-

ence facilities. “Africa has great scientists. We are just not well structured to take advantage of this. In the same way we are working to make African [countries] integrate politically, so we need to find a way to integrate the continent at the level of science and technology," he said. The brain-drain of great minds is not the biggest problem Africa has; it is building the opportunities to use those brains once they have been trained abroad. “Let’s bring our brains back only when we are ready to use them,” he said. “We live in a time when a single small idea can be transformed into a multi-million-dollar business that can improve the lives of communities. We need to let children know what science can do to deliver their dreams.” 2 0 1 6

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AGREEMENTS SIGNED AT AFRICA 2016

THE AFRICAN HEALTH DATA AND DISEASE CONTROL HUB, LAUNCHED AT AFRICA 2016, WILL SERVE AS A DATA, INFORMATION AND COMMUNICATION PORTAL FOR CITIZENS, GOVERNMENTS AND INSTITUTIONS.

A panoply of agreements were signed at the Forum. Here are a few.

Memoranda of Understanding: Rift Valley Railways

The first MoU will make Rift Valley Railways the Official Inland Transportation Carrier for Egyptian Exporters of Chemicals and Fertilizers and will soon materialise into transportation and logistics service agreements for members of the Egyptian export council for chemicals and fertilizers. The second MOU will help promote RVR’s services at local and international trade exhibitions through Expo One, a company that manages and organises local and international trade fairs. Framework Partnership Agreement Signature: Benchmark Power International and Abraaj Holdings. A $2 billion framework Partnership Agreement signed between BPI Standard Energy Limited, a wholly owned subsidiary of Benchmark Power International, and Abraaj Holdings, with the presence of the African Development Bank, the supporting financing institution of the project. The agreement covers the first module known as BPI-1 (of a capacity of 1200 MW CCGT) of Benchmark Power Complex in Egypt, in addition to Benchmark Power Plant in Nigeria known as Geregu 3 (of a capacity of 450 MW SC).

Right: Titus Naikuni, Chairman of Rift Valley Railways signing the MOU with Khaled Makarem, Chairman of the Export Council

Launch of the African Disease Control Hub

The African Health Data and Disease Control Hub (AHDCH), launched at Africa 2016, will

MICROSOFT AND THE GOVERNMENT OF EGYPT LAUNCHED A NEW PLATFORM THAT WILL PREDICT AND CONTROL THE OUTBREAK OF EPIDEMICS 2 6

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serve as a data, information and communication portal for African citizens, governments and institutions. The Hub was initiated by the Government of Egypt through the Egyptian Agency of Partnership for Development (EAPD), with the Association of Friends of the National Cancer-free Initiative (AFNCI) as its implementing partner, and Microsoft is providing technology support in developing the platform. Signature of a Memorandum of Understanding: Children's Cancer Hospital and Ministries of Health from Mozambique, Rwanda and Togo

The vision of the Children’s Cancer Hospital Egypt 57357 is to be the unique worldwide icon of change towards a cancer-free childhood by building a sustainable foundation to prevent and combat cancer through research, smart education and quality healthcare provided with passion and justice in order to alleviate the suffering of children with cancer and their families free of charge. Signature of a Memorandum of Understanding: Ethiopia's East African Holding Company (EAHC) and the Egyptian Company for Solid Waste Recycling (ECARU); Announcement of a 5-year contract with Messebo

The Egyptian Company for Solid Waste Recycling (ECARU), a subsidiary of Qalaa Holdings’ Tawazon Solid Waste Management, signed a five-year contract to supply Ethiopia’s Messebo Cement Company with Waste to Thermal Energy Solution, an environmentally-friendly and cost-efficient alternative solid fuel that will gradually replace coal. Additionally, a joint venture will be formed to operate a biomass management business in Ethiopia and neighbouring countries. 2 0 1 6

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