In the past eight years alone, foreign direct investment (FDI) has helped create 1.6 million new jobs in Africa. Capital investments are projected to reach $150 billion in 2015.
But the picture was not this rosy just a decade ago.
The Economist in an edition in 2000 described Africa as a hopeless continent. Eleven years later, in 2011, the same magazine reversed itself. The cover of its December edition of that year featured an illustration of a boy flying a rainbow-coloured kite the shape of the continent, with the title “Africa rising”.
This sums up just a little of the transformation taking place in Africa. The story of Africa as a fast moving continent could only be better told by Africans themselves.
With the perception of Africa as doomed, the continent could certainly not be left in the hands of traducers.
Dangote Group zeroes in
This is the main reason Dangote Group steps out to lead in the efforts at projecting the good happening in Africa through partnership and sponsorship of Market Place Africa on the Cable News Network (CNN).
Dangote Industries has taken up the sponsorship of ‘Facetime’ on CNN that offers a unique window into African business.
The programme, which debuted on September 19, features Dangote advertising campaign showcasing the company’s expansion on the continent.
‘Facetime’ is a high-profile segment within CNN Marketplace Africa, where each week a major player from the continent’s business community is interviewed. CNN Marketplace Africa is the destination for access to movers and shakers at the forefront of African business.
The show goes beyond the numbers to bring viewers the new business solutions and industry trends redefining African business. On-air content is complemented by distinctive online editorial at a CNN Marketplace Africa microsite, where popular and innovative content is shared across a range of social channels.
Vice President, Regional Ad Sales, EMEA, CNN International Antonio Canto, said “We are delighted that Dangote Industries Limited is working with CNN to promote its brand internationally in a TV sponsorship across all CNN International global feeds.
“The ‘Facetime’ segment in CNN Marketplace Africa is an important programming strand to be associated with because the content reflects the dynamic nature of African business. Dangote’s expansion, underpinned by this bespoke advertising campaign with CNN, is a brand-builder for African business as a whole.”
Dangote Group President and Chief Executive Officer, Aliko Dangote, said the company supports the programme because there is a lot of misconception about Africa. Besides, the lack of information on Africa is holding back foreign investment.
Africa’s high rate of return
Said he: “Africa also offers one of the highest rates of return on investment in the world, a fact that discerning foreign investors have since acknowledged. Indeed, Africa has turned the corner and is now catching up with the rest of the world in the race for development.
“Dangote Industries Limited is delighted to sponsor the ‘Facetime’ segment in CNN’s Marketplace Africa because it tells compelling success stories about Africa. Such content can ultimately position Africa as an attractive investment destination and foster development that lifts communities and nations into prosperity. This is Africa’s time.”
Some investors still have stereotypical images of Africa etched on their minds. But a new Africa is emerging from the ashes of its dark past, and is fast rising and gaining accelerated speed in all indices of human development.
Many appear to have taken little notice of this silent revolution sweeping across Africa like a tornado. Nonetheless, there is growing optimism everywhere about Africa on a scale never before imagined.
Dangote added: “For instance, Rwanda, which was only two decades ago, devastated by war, is one of the success stories of this African renaissance. Rwanda is fast becoming Africa’s investors’ delight, and currently ranks 45th in the World Bank’s ease of doing business.
“Similarly, the economy of Ethiopia, once a global metaphor for famine, has been growing at a double-digit for the past five years. This growth has attracted Ethiopians abroad, who are coming home with expertise and capital to develop their country currently ranked the 10th largest livestock producer in the world.
Dangote said there is growth in the middle class, with increased purchasing power, across Africa. This has provided an incentive for fast moving consumer goods (FMCGs) companies, which are scrambling to invest in Africa.
The increase in population growth of Africa (currently estimated at one billion), abundance of natural resources, and clement weather, also make it a viable proposition for investors.
Investment flow
The Chinese, who have been smart to move in early enough, are reaping the fruits, especially in the construction industry, in which they possess considerable expertise. They are building factories, roads and railway lines across Africa.
Determined not to be outdone by the Chinese, Western companies are now taking more interest in Africa. General Electric (GE), the world’s largest infrastructure company, recently declared its intention to invest in Africa.
African companies are not sitting back idly as they are behind a growing percentage of FDI, which has been going to sectors such as manufacturing and services in recent years.
South African big retail shops, like Shoprite, Massmart and Spar; and telecommunication company, MTN Group; Etisalat of the Middle East; and Airtel of India; have all gained a foothold in Nigeria.
The country has witnessed growth in subscribers from 500,000 fixed lines in 2001 to 98.4 million mobile lines in October 2011.
This growth is the fastest anywhere in the world! African markets must re-position themselves to key into this economic revolution.
In 2010, the Boston Consulting Group (BCG) of the United States named 40 African companies with potential to rival Fortune 500 companies based on their size, geographical spread and turnover.
Dangote Group is one of them. It is the only Nigerian company on Forbes Global 2000 companies.
Dangotes said the group has in the past few years invested about $4 billion in various projects across Africa.
It is setting up new cement plants in Senegal, Zambia, Tanzania, South Africa, Republic of Congo, Ethiopia, Cameroon, and Benin Republic; and developing import terminals in Ghana, Sierra Leone, Liberia, Cote D’Ivoire, Benin Republic, Togo, and Guinea (Conakry).
“All these projects, which are largely driven by huge deficit in local supply of cement in the countries listed, are at different stages of progress, and will be completed between 2012 and 2014.
“Our ultimate goal is to rank among the top eight cement producers in the world by 2014. Our aspiration to be the leading cement producer in Africa is a logical step after we have achieved domestic dominance and have become self-sufficient in cement production as a nation.”
Up against reality
In Nigeria, Dangote cement accounts for more than 60 per cent of market share. It plans to export cement to Liberia, Sierra Leone and Cote D’ voire from this year.
The key to doing business successfully in Africa lies in understanding the environment. There are peculiar challenges associated with doing business in Africa.
Some of these challenges include multiple taxations, low level of infrastructural development, and insecurity.
They are part of the reality. Western firms continue to invest in the oil and gas industry in crisis-prone countries of the world because they understand how to do business in such volatile environments.
Corporate governance is increasingly receiving greater attention in Africa with initiatives such as the Ibrahim Index of African Governance, designed to curb corruption, and to promote accountability among African leaders.
A new crop of African entrepreneurs have emerged and are changing the stereotypes about Africa and Africans. Some of them are on the prestigious Forbes list of global billionaires.
Dangote said his company’s partnership with CNN will help change the perception about the economic status of Africa, and “this is part of our own contribution to the rising African continent.”