Millionaires in Nigeria, Kenya and Angola will more than double by 2030, boosting the prospects for private banking in Africa, according to research firm New World Wealth.
Millionaires in Nigeria, Africa’s biggest oil producer, will rise 174% to 43,000 from 15,700 this year, the UK-based company said, after using a sample of high-net-worth individuals and World Bank data to compile a report.
That television news report by the BBC’s Michael Buerk in 1984 framed Ethiopia for a generation as a place of famine and in need of salvation.
Almost 30 years later the country is hailed by pundits as an “African lion” after a decade of stellar economic growth.
Now further evidence of its turnaround has arrived with research showing that Ethiopia is creating millionaires at a faster rate than any other country on the continent.
The number of dollar millionaires in the east African nation rose from 1,300 in 2007 to 2,700 by September this year, according to New World Wealth, a consultancy based in the UK and South Africa.
That figure puts the country well ahead of Angola, up by 68 per cent, and Tanzania, which had a 51pc increase. Zambia and Ghana completed the top five.
On apartheid rule:
“We are extricating ourselves from a system that insulted our common humanity by dividing us from one another on the basis of race and setting us against each other an oppressed and oppressor. That system committed a crime against humanity.” — Speech in Pretoria upon receipt of a report from the Truth & Reconciliation Commission, which investigated apartheid-era atrocities. Oct. 29, 1998
“Racism is a blight on the human conscience. The idea that any people can be inferior to another, to the point where those who consider themselves superior define and treat the rest as sub-human, denies the humanity even of those who elevate themselves to the status of gods.” — Address to the UK’s Joint Houses of Parliament, July 11, 1996.
On his opposition to apartheid:
“During my lifetime I have dedicated myself to this struggle of the African people. I have fought against white domination, and I have fought against black domination. I have cherished the ideal of a democratic and free society in which all persons live together in harmony and with equal opportunities. It is an ideal which I hope to live for and to achieve. But if needs be, it is an ideal for which I am prepared to die.” — Statement at the opening of his defense in the Rivonia treason trial, April 20, 1964.
On human solidarity:
“As the years progress one increasingly realizes the importance of friendship and human solidarity. And if a ninety-year-old may offer some unsolicited advice on this occasion, it would be that you, irrespective of your age, should place human solidarity, the concern for the other, at the centre of the values by which you live. ” — Lecture in Kliptown, Soweto on July 12, 2008.
“Overcoming poverty is not a gesture of charity. It is an act of justice. It is the protection of a fundamental human right, the right to dignity and a decent life. While poverty persists, there is no true freedom.” — Speech delivered in Johannesburg, July 2, 2005.
We will not be posting today in the memory of Nelson Mandela. May he become immortal.
West African Ceramics Ltd. (WACL), a leading local manufacturer of standard ceramic tiles, has announced plans to invest over $50 million in the establishment of a state-of-art ceramic tile factory in Ogun State, western Nigeria.
The plan to establish a ceramic tile plant in the nearest future was necessitated by the rising demand for European standard quality tiles in Nigeria and across the sub-Saharan West African region, said WACL’s Group Executive Director, Alhaji Lawal Idirisu. According to Idirisu,
“The market demand for quality tiles as obtainable in European countries such as Spain and Italy is rising on an alarming rate owing to the trends in the home, property, and real estate industry.”
“Although the company’s factory in Ajaokuta, Kogi State is fully operational to capacity, meeting both domestic demands and export to the West African market; the company has been proactive based on consumer and industry insight, and research to establish another production plant,” he added.
Africa has been described as having an entrepreneurial spirit. However, many of these entrepreneurs have difficulty accessing investors willing to or capable of funding their ventures.
According to John Causey, an Africa investment and business specialist, a lack of local investors means many startups are turning to the international investment scene for funding.
Causey, who was previously an associate at Morgan Stanley in the US before taking up a position at African-focused investment advisory firm Clifftop Colony Capital Partners, said investing in African startups is not always attractive to international investors.
He explained that it is important to understand the deterrents through the eyes of international investors who are looking for a high return on investment, not just a social impact.
“You are not going to be able to solve the problem until you see what the problems actually are,” he told an audience at AfricaCom in Cape Town, South Africa last month.
1. Exchange controls
Capital controls are enforced to keep money in a country and in South Africa, for example, strong exchange controls make it difficult and expensive for investors to move money out of the country.
2. Understanding requires time and resources
Adequate understanding and investment in an African company requires on-the-ground assistance and time, and Causey said this can be expensive to achieve.
3. Small markets
South Africa’s GDP is roughly the same size as the US state of North Carolina’s GDP, according to Causey. “Even if they say your idea is going to dominate the South African market share, [and] even if you do, you are dominating a relatively small market on the international stage.”
4. Proven track record and few assets
Another problem, he added, is that there have not been many examples of large exits in Africa.
“People treat the Fundamo exit as if it’s a big deal but internationally it’s not a huge transaction. I think it was a $110m exit, which is nice, but you need to have a lot more of those to really attract investors.”
"These two plants will be our first production ventures outside Nigeria as we aim to become Africa’s leading supplier of cement,” Edwin said.
He stated that in Ethiopia, work was well underway to build a 2.5 mta plant at Mugher, with production expected early in 2015.
In Tanzania, Dangote Cement has begun work on a 3mta gas-fired plant at Mtwara that is expected to be operational in October 2015.
In Zambia, work is underway on a 1.5mta plant at Ndola, with cement production expected in mid-2014.
Building work is progressing with a 1.5mta grinding plant in Cameroon, with completion expected in the first half of 2014.
In Congo, Dangote will build an integrated plant of 1.5mta expected to begin production in the second quarter of 2016.
Edwin said the company would also build a 1.5mta plant in South Sudan, to become operational in 2016, as well as a 1.5mta integrated facility in Kenya.
Along the coast of West Africa, Edwin said the group had concluded plans to build import facilities to receive and bag bulk cement produced in Nigeria and Senegal, and that work has begun on import facilities in Sierra Leone, with operations expected to begin towards the end of 2013 or in early 2014.