teemana eteläinen afrikka
TRANSCRIPT
Teemana Eteläinen Afrikka Heta Pyhälahti, Finpro Southern Africa1.9.2015
Southern Africa
Finland has special status
International mining investments as driver
Oil country starting to develop
Developing with new gas and coal resources.
Developed manufacturing country in BRICS.
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Diamonds a goodbase for theeconomy
Southern African Countries3
Country Botswana Namibia Zambia Angola Mozambique South Africa
Numbers arerounded!
Diamonds agood base for the economy.
Finland has special status.
International mining investments as driver.
Oil countrystarting to develop.
Developing with new gas and coal resources.
Developed manufacturingcountry in BRICS.
Population, million, 2014
2.0 2.3 15.0 22.1 26.5 54.0
GDP, billioncurrent USD, 2014 (rounded)
16 13 27 131 16 350
GDP (PPP) per capita, currentintl. USD, 2014
17 500 9 900 4 100 7 900 1 200 13 000
GDP growth,annual %, 2015estimate
4.2 5.6 6.7 4.5 6.5 2.0
Mobile celluralsubscriptionsper 100 people, 2014
167 114 67 63 70 150
Doing Businessranking, 2015
74 88 111 181 127 43
Source: World Bank. Doing Business ranking: 1 = best, 189 = worst. GDP growth estimates by IMF, April 2015.
Miten Afrikan markkinoilla voi menestyä?
Heta Pyhälahti, Finpro Southern Africa31.8.2015
Africa’s attractiveness5
2015 real GDP growth estimates
Source: IMF World Economic Outlook (April 2015)
Atractiveness of Africa for investors- More you know more attractive it is!
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Africa’s relative attractiveness
Private capital flows to sub-Saharan Africa reached 67 billion USD in 2012 and overtook official development aid (42.5 billion USD).
How to success in Africa-Strategies, Time and Resources
– Market strategy for each country and/ or market individually – There is 54 countries in Africa – It’s not one market place.– Market development and environment are different in each
country/ market. – Don’t assume – find out.
– Reserve enough time.– Thinks take time – longer than you expect – applies specially to
decision making.
– Reserve enough resources. – Doing business in Africa is not cheap. Get to know local costs ,
local risks.– Financing options also for clients are valuable. (knowledge ,
contacts, support)
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How to success in Africa- Get Connected and Stay Committed
– Relationships are crucial – Contacts, networks and relationships are crucial - people do the
business. – Reach the decision makers. – Learn to understand the drivers and targets in decision making.
Personal , connected to business environment and network.
– Commitment in several levels is needed– The whole company should be committed to chosen strategies in
African countries. One sales person without real support from the top has it very difficult.
– Know your partners, build up the trust and commitment with local partners.
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How to success in Africa- Quality, Financing and Pricing
– Good quality of technology is competitive advance especially in Africa – Tested - good quality solutions are desired
Clients are not looking for products made for Africa
– Financing options are often game changer – Provide to your clients business opportunities - new earning models
– Know you target market for setting the price– Price competition (e.g. Chinese are there)– Know the local pricing structure (e.g. reserve double margin in
Angola) – Know local currency situations
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How to reach the markets in Africa – experiences from Finnish companies in ICT
– Finding right people to talk to . Distance to target market is a challenge. Finding right people in decision making level. Identification of needs.
– Commercial rules in target countries need to be understood, laws to follow, juridical issues.
– Understanding
– structure of the market and sector , players and roles
– business ethics in the country and local way to operate
– corruption in the country
– local culture and unwritten rules in behaviour
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Strong Urbanization Trend– Large housing projects in all countries – Water management – Sanitation – Waste management – Growing traffic challenges
with growing amount of cars – Internet connectivity
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HousingDevelopment for GrowingMiddle Class
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Growing Middle Class – Consumer Business
– Large amount of new shopping malls in Namibia, Botswana, Zambia and Angola - as well as South Africa
– Large retail chains from South Africa are strong in investing to neighboring countries: Shoprite, Pick’n Pay , Woolworths
– e.g over 130 shops in 16 countries – International and local fast food chains
– South African franchising chains
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Upper EndConsumers
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Growing Middle Class - Health Care
– High level private services available in South Africa >> Health tourism from Other Southern African countries – Lacking facilities >> Building new hospitals (e.g. PPP, Chinese financing )
– Upgrading medical equipment, also information systems– Lacking services in rural areas >> new health posts, eHealt, mHealth– Lacking educated people >> Education hospitals– Lacking laboratory services
– Fitness business and health consciousness is growing
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Developing Agriculture and Food Processing
– South Africa has export quality agricultural sector – strong food producing sector
– Developing food processing is a target in Namibia and Botswana
– Developing larger scale agriculture is one focus areas in Zambia and Mozambique. Now mostly small scale family activities, but also larger producers.
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Mining Sectoras a Driver
– Several countries have renewed the mining laws to attract new investments , but also
to ensure the local income
– South Africa is one of leading mining countries globally
– Automation, underground mining, energy efficiency, water efficiency
– Targeting to create beneficiation of minerals in South Africa
– Notice: Mining Growth program for Finnish compenies
– Finnish Pavillion in Mining Indaba in February 2016 in Cape Town
– Botswana looks for diversification with new mines specially large coal resources
– Zambia has attracted several international mining investments. Not only a mine with
new technology , but building up infrastructure, mining villages, services etc.
– Namibia is opening some new mines.
– International mining companies have strong influence in development in the country
(e.g. Rio Tinto in Mozambique, Chinese companies )
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Infrastructure development inSouthern Africa
– Economical growth, growth in import and export, growing investments specially in mining create great need for better road and rail infrastructure.
– South Africa has good infrastructure all over the country, but remarkable investments are going on
– In Zambia and Mozambique strong role of China and mining companies in infrastructure projects
– Bringing investments, engineering, technology, local and foreign workforce in use
– In land locked Botswana mining investments depend on new infrastructure – Port investments in several cities: Luanda, Walvis Bay, Durban, Saldanha
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Energy production in Southern Africa Country Access to
electricity,% (2012)
Total electricitynet generation, TWh (2012)
Renewableelectricity net generation, TWh (2012)
Fossil fuelselectricity net generation,TWh (2012)
Nuclear electricity net generation,TWh (2012)
Crude oilproductionbbl/d (2014)
Gross natural gas production,Bcf (2013)
Refined petroleum products, bbl/d (2012)
Angola 15 5,48 3,94 1,54 - 1741616 380 40001
Botswana 66 0,24 0 0,24 - - - -
Lesotho 28 0,49 0,49 0,00 - - - -
Mozambique 39 15,01 14,99 0,02 - - 152 -
Namibia 30 1,80 1,59 0,21 - - - -
South Africa 85 238,95 2,42 225,17 12,38 3000 41 456523
Swaziland 27 0,43 0,13 0,30 - - - -
Zambia 26 11,73 11,70 0,03 - - - 14753
Zimbabwe 40 7,74 5,40 2,34 - - - -
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Source: IEA World Energy Outlook 2014, EIA International Energy Statistics
1530 132 80 2436 508
44559
149 1888 20380
10000
20000
30000
40000
50000
Angola Botswana Lesotho Mozambique Namibia South Africa Swaziland Zambia Zimbabwe
Total electricity capacity, MW (2012)
Energy sector developmentin Southern Africa
– South Africa is in national energy crisis
– Delayed production start of two large coal power plants (10 GW) with urgent
maintenance demand in many existing power plants
– Successful Independent Power Producer (IPP) programs for renewable energy
continuing . Now agreements for over 5 GW from Solar and Wind.
– New IPP cogeneration bidding for Bioenergy and Waste to Energy in 2015
– Bioeconomy Growth Program to support Finnish companies also in South Africa
starting 2015
– Additionally efforts in energy efficiency and smart grids.
– In Botswana and Namibia target to build own generation: clean coal and gas power plants
– Zambia plans to build new hydropower, solar power tendering process has started and 2
bn USD electricity grid investments still in next 2 years.
– In Mozambique large investments in globally remarkable new gas and coal sources (LNG
port etc.) . They are also constructing new power plants and transmission lines
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Manufacturing in Southern Africa
– Job creation is high priority in the political agendas
– South Africa is most developed manufacturing country in Sub-Saharan Africa
– Car manufacturers are there: BMW, Mercedes Benz, Toyota…
– Large infrastructure investment program: rail, ports..
– Creates train manufacturing, component manufacturing
– Energy sector investments – Demand for local content creates
manufacturing
– Skill development needed, lack of professionals
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Digital Africa• Telecommunication and IT services are booming in Africa • Africa has now 67 million smartphones >> in 2025 about 600 million. • Cyber security issues growing – need for special solutions• High potential with digitalization in Banking , Retail, Health Care,
Education, Government
• Growth Program supporting Finnish ITC sector Companies in Southern , Western and Eastern Africa starting in 2015
• AfricaCom is the biggest ITC conference in Africa. A good opportunity to meet all key players in the African telecommunication market. Next AfricaCom 17th – 19th of November 2015 in Cape Town, South Africa http://africa.comworldseries.com/
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Thank you !
For more information, please contact:
Heta Pyhälahti
Commercial Councellor
Finpro Southern Africa
Mobile: +27 72 661 1287
Office : +27 11 881 5530
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