The JSE listing of SA billionaire Patrice Motsepe’s African Rainbow Capital Investments (ARC Investments) reflects the progress of transformation in the financial services sector, a JSE spokesperson said on Thursday.

ARC Investments made its debut on the South African bourse at 09:00 on Thursday, with the share opening trade at R8.68.

Speaking on the significance of the listing, director of capital markets at the JSE Donna Nemer said creative ways such as this are needed to enable economic transformation. “We need to find creative ways to accelerate economic transformation.

“Using capital markets to do that is the best you could hope for. That allows direct membership of individuals with assets that can be invested towards transformation.”

In his address, Motsepe said this listing comes after a 17-year journey. “I put aside R200m about 15 years ago. It was part of a strategy to diversify and get into financial services,” he explained.

At the time Sanlam CEO Johan van Zyl and Motsepe decided to work together to help build investment and equity in Sanlam, which was going through a difficult time, as well as a “world class” financial services company. “We had to compete not just against the best in South Africa, but against the best in the world.”

Motsepe also expressed his gratitude to the board which helped make the listing possible. “Black and white South Africans can work together, not just to build world class companies but also to create jobs and express our confidence in the economy.

“Despite our political challenges, this country has got the most wonderful people, the most caring, entrepreneurial, hardworking people. That gives us confidence.”

ARC Investments is a capital raising and investment entity incorporated in Mauritius. Investors will have the opportunity to invest in a permanently broad-based black controlled company with a diversified portfolio of investments.

African Rainbow Capital Proprietary Limited (ARC) will remain the majority shareholder of ARC Investments. Shareholders will invest alongside ARC in the initial portfolio, which is made up of 16 investments in the financial services sector and 17 non-financial services investments.

Financial services include interests in Alexander Forbes Limited, Alexander Forbes Group Limited, Indwe Broker Holdings, Senayo Securities and Santam. The portfolio includes investments in agriculture and food production, building and construction, energy, information technology and communications, investment holding companies and real estate businesses. Investments in telecommunications are most significant.

ARM results

Motsepe’s African Rainbow Minerals annual results for the year ended June 30 were also released on Thursday. Headline earnings increased 204% to R3.19bn, with headline earnings per share at 1684c compared to the 494c reported previously.

ARM declared its highest dividend to date at 650c per share, up 189%.

Source: Fin24

By Nuusita Ashipala

Oshakati — Former mayor of Oshakati Ben Kathindi spent three hours on Friday chained to a pole in scorching heat, protesting silently against the Ministry of Works and Transport which he accuses of not caring about local engineers, quantity surveyors and architects.

He protested outside the Namibian Broadcasting Corporation (NBC) northern offices.

The director of Ben Kathindi Architects, on a poster tied around his neck, indicated that other professions are next in the line of sale by government ministries.

The poster read: “Slaves for hire/for sale. The Namibian House is selling its professionals: architects, engineers, and quantity surveyors.”

Kathindi’s protest follows several other interventions in an attempt to halt the Ministry of Works and Transport from extending the expired memorandum of understanding (MoU) between Namibia and Zimbabwe for another five years.

In recent weeks, the Minister of Works and Transport Alpheus !Naruseb exempted 29 Zimbabweans from certain professional registration, allowing Zimbabwean quantity surveyors and architects to work in the country for another five years.

Cabinet has since ordered the ministry to review the process.

Also making a stop at NBC where Kathindi was protesting was a local engineer Tuli Nashidengo of Archetype Project Consultants, who said he equally feels the pinch of being disadvantaged, unappreciated and seemingly not being prioritised when opportunities arise.

“I fully understand his plight – the message is clear and what he is trying to convey is quite obvious, and he knows what he is talking about,” said Nashidengo. Not knowing until when the silent master planned to stretch the protest, Nashidengo said there was need to show solidarity for the good of everyone.

Kathindi’s liberator for the day was Johannes Kandobo, formerly a chief regional officer of Oshana Regional Council, who freed him from the chain. He said the situation is an embarrassment to the country and the world at large.

Without giving further details, Kandobo said the message was clear to everyone and that it was time for him to return home.

After Kathindi refused to talk to him several times, Kandobo body searched him but found no keys.

He left the spot and returned minutes later with a bunch of keys of which one eventually opened the lock, much to the excitement of the silent protestor who without saying a word raised his arms wide up, signalling victory.

Job seekers who gathered opposite the corporation said Kathindi pitched up at nine in the morning and had not said a word to anyone, including police officers, who pitched up in four vans.

Kathindi in 2011 also chained himself at the National Housing Enterprise head office in Windhoek demanding payment for work his architecture company has done for the enterprise.

By Bilal Derso

Ethiopia’s trade and investment relation with Gulf countries/Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates/ has though shown progress since recent years, there is a huge imbalance compared with country’s untapped economic opportunities and latter’s enormous capital.

Most of the Gulf countries have plentiful petroleum resources that have enabled them to be among world economic powers with immense potential for Foreign Direct Investment (FDI).

The price fluctuation of oil in global market has, however, posed a challenge and reduced energy exporting nations’ revenue from the sector. As a result, there is a growing demand among Gulf countries to lower their dependence on oil revenue and diversify their economies.

On the other hand, Ethiopia has offered wide investment opportunities for Gulf countries in the areas of agriculture, energy, health care, tourism and hospitality sectors which are crucial for the latter to achieve their goals of economic diversification.

In an exclusive interview with The Ethiopian Herald, Ministry of Foreign Affairs Middle East Affairs Director- General Ambassador Suleiman Dedefo says the previous government’s failure to adopt investment friendly polices coupled with the Arabs’ limited investment mentality had limited the active economic ties of the two.

Ambassador Suleiman further notes that the historical mystification of denying Ethiopia’s membership in the Middle East community and repudiating the fact that its peoples share similar cultural and religious identities with the Arabs were also hampered the two sides from making a meaningful economic engagement.

He says: “Some individuals held wrong perception towards Ethiopia and trying to portray the country as the enemy of Arabs working to block Islamization and Arabization in East Africa. In fact, our previous leaders had a tendency of accepting this mystification.”

An important milestone in boosting economic ties was Ethiopia’s adoption of Foreign Affairs and National Security Policy and Strategy that attaches due emphasis to mutual economic benefits. In this regard, relation with the Gulf countries is deeply focused to attract FDI and to make them destinations for agricultural exports, Ambassador Suleiman notes.

The Foreign Policy redefined poverty, not countries, as a threat for country’s survival and gave emphasis for peaceful co-existence. In this regard, the Policy has registered remarkable success in correcting the wrong preconceptions and built the trust of Arab leaders giving guarantees for their investors to do business in Ethiopia.

Ambassador Suleiman says the signing of Agreement for Promotion and Protection of Investment and Avoidance of Double Taxation with some Gulf countries would also play pivotal role to attract more investment from the region to Ethiopia.

In its endeavor to make Ethiopia attractive to FDI globally, the government has also been hugely investing to improve infrastructural networks and set policies that create favorable investment climate. The efforts have borne fruits by attracting large-scale Gulf companies including Sheikh Mohammed Hussein Ali Al Amoudi’s multi-sector corporate MIDROC and UAE-based companies like Julphar Gulf Pharmaceutical Industry and Al Ghurair Group’s Aluminum Factory.

Information obtained from the Ethiopian Investment Commission indicated that during the past six years, Saudi Arabia and UAE have been the leading investing countries from the region spending seven billion Birr and 360 million Birr respectively.

While Saudi Arabia remains the 4th largest foreign investor in Ethiopia, Derba MIDROC Cement Factory and Saudi Star Agricultural Development Plc. are among its flagship projects. Julphar Pharmaceuticals and Maaza Mango Bottling plants which both set up in joint venture with local firms, are among UAE investment.

The Director-General states that Gulf investors have shown a growing desire to involve in Ethiopia’s agriculture sector and re-export produces to their own markets so as to support their countries goal of ensuring food self-sufficiency through overseas investment.

Accordingly, Gulf leaders set various platforms including King Abdullah’s Initiative for Saudi Agricultural Investment Abroad and Abu Dhabi Fund for Development to encourage investors engaged in the sector while eyeing Africa as a primary destination.

Suleiman says: “Currently many Gulf investors came to Ethiopia to conduct feasibility studies in the agriculture, hospitality, energy and pharmaceutical industries and some of them obtained investment licenses. In addition, some business persons got plots to build star designated hotels and we expect greater inflow among Gulf investors in few years to come.’

Concerning trade, Gulf countries have been among Ethiopia’s main destinations for its agricultural exports such as live animals, meat, cereals, fruits, vegetables and flowers among others.

The Director General says Ethiopian missions in the Gulf have played a leading role in fostering economic partnership through promoting country’s investment opportunities, seeking markets for its agricultural exports and linking the two sides business people.

Ministry of Trade discloses that Ethiopia obtained 326.5 million USD from exporting agricultural commodities to the Gulf in 2016/17 fiscal year. Saudi Arabia and UAE are the largest export destinations to Ethiopia importing 196.5 million USD and 120.7 million USD worth produces respectively.

“Starting from nearly non-existent economic platform, the current government has changed the intangible suspicion with Gulf countries to the tangible trade and investment relations,” Ambassador Suleiman stresses.

The economic expert, Zemedeneh Negatu, agrees on Suleiman’s idea. He says among other things, the decision Dubai Chamber of Commerce and Industry /DCCI/ made to open its first International Branch Office in Addis Ababa showcased the development.

Zemedeneh notes that a few months back Ezdan Holding Group, one of the biggest companies in Qatar, came to Ethiopia to invest in the real estate business and its representatives conducted discussions with high level public officials.

Yet, this is insignificant when compared with Ethiopia’s untapped investment opportunities and the desire Gulf countries have shown for investing in the former.

Zemedeneh stresses that identifying region’s objective reality is so crucial to benefit more from the economic engagement. In this regard, he advises the government and other stakeholders to give attention for agricultural sector so as to take the advantage of Gulf countries’ reliance in food importation.

He says: “Supporting by high soil fertility, the amenability of its climate towards the cultivation of diverse range of crops and the comparative abundance of water, Ethiopia could be one of the major sources of food for the Gulf countries.”

Economic analyst at the Embassy of the United Arab Emirates to Ethiopia, Dr. Fikru Deksisa agrees with Zemedeneh. He states agriculture should be the primary target for Ethiopia in doing business with the Gulf where farming is more difficult and expensive due to harsh climate and low water supply.

Dr. Fikru notes that keeping quality standards has an indispensable role to narrow the gap between Ethiopia’s potential for agricultural export and its actual performance in the Gulf food market. He further states exporting quality items would also enable Ethiopia to take over the dominant share countries far away from the region have enjoyed in Gulf’s agricultural market.

He says: “Export quality gaps hinder Ethiopia’s competitiveness in the Gulf food markets and if we able to supply commodities with the desired quality level and appealing packages, they have no reason to go far away to buy agricultural products.”

Zemedeneh on his part advises stakes to do more investment promotion activities that would boost the business community’s awareness and to lure additional investment from the private sector and the state owned companies of the Gulf.

The economic expert says Ethiopian missions are expected to partnering with relevant bodies of the respective countries to aware Gulf investors to deploying their huge capital in Ethiopia’s manufacturing, energy, hospitality and other key sectors and benefit more.

Dr. Fikru agrees with Zemedeneh, he states Ethiopian embassies and consulate generals in the region need to extending trade missions that would have a role to aware Gulf investors country’s untapped investment opportunities. The trade missions would also pivotal to Ethiopia find new markets for its exports and initiate business people to invest in the respective countries.

Signing investment protection and promotion agreements, promoting country’s investment opportunities and improving agricultural exports quality are measures the government should strengthen to create the much desired synergy between Ethiopia’s economic opportunities and the Gulf’s huge capital, the experts underscore.

The Bulawayo City Council has set aside land for infrastructural development as well as coming up with a number of incentives to lure potential investors following the city’s designation as a Special Economic Zone (SEZ).

Government recently set up an 11 -member Special Economic Zones (SEZs) board which is expected to stimulate investment flows from domestic and international markets into strategic sectors of the economy.

Because of the region’s economic strength in livestock production, Bulawayo has been designated as a leather and textile special economic zone.

Speaking at a recent SEZ stakeholder’s consultative meeting in the city, Bulawayo City Council economic development officer, Brain Hlongwane, said council had set aside land for infrastructural development in an effort to attract investors.

“Council has so far identified four sites for the establishment of SEZ. The identified place has got 256 stands ranging in size from 3 000 to 8 000 square metres with an overall size of 188, 64 hectares.

“The area is also served by three rail lines to Victoria Falls and Zambia as well as Harare and Beitbridge. The place is also partially serviced with roads,” said Hlongwane.

He said the city council has made available 127 stands in Kelvin East ranging from 1 000 to 3 000 square metres.

“Another option will be the vacant idle closed factories as stand -alone SEZ units quick wins readily available fully serviced with electricity as well while another option will be the area around the airport which is ideal for electronics,” said Hlongwane.

Apart from availing land, Hlongwane said the local authority had also introduced flexible conditions and payment terms for prospective land developers as well as coming up with an inter-departmental committee that interrogates business proposals to eliminate bureaucracy.

Hlongwane said the local authority was also offering a 50 percent rates payments reduction to companies which employ more than 100 people while offering 100 percent rebate for development effected within the first year for five years with the offer cascading to 20 percent for one year for an investor carrying out development within five years.

Dar es Salaam City is lined up for three major sewage treatment plants estimated at 600m US dollars (about 1.320trl/-).

The ambitious plans will enable the country’s commercial capital to boost its capacity of treating sewage from 10 per cent to 30 per cent by 2020.

What is more, the pipeline currently discharging the unwanted liquid into the Indian Ocean will be diverted to a plant to be set up at Jangwani area, according to Acting Chief Executive Officer of Dar es Salaam Water and Sewerage Authority (DAWASA), Eng Romanus Mwang’ingo.

The Acting CEO explained that the treatment dams would be constructed at Jangwani, Kurasini and Mbezi Beach.

They will be designed in a way that they will generate their own power through biomass to operate the plants.

“Treated water from the plants will be used for other purposes such as cooling of industrial parts and irrigation while the remainder will be used as manure for agriculture and gardens in the city,” the DAWASA boss said during a news conference at the Tanzania Information Services (Maelezo) auditorium.

The Jangwani plant, to be constructed at a cost of 90m US dollars (about 198bn/-), will have the capacity to treat 200,000 cubic metres per day and it will include a pipeline network running from Ubungo to Jangwani.

Eng Mwang’ingo said the network would branch off to Kinondoni, Mwananyamala, Msasani, Ilala and the central business district.

First phase of the project will have a plant with the capacity to treat 25,000 cubic metres per day, covering a pipeline network of 17.43 kilometres from Magomeni to Jangwani.

“During this phase, the pipeline discharging sewerage in the ocean will be diverted to the plant.

The project is being funded by the government of Korea through Exim Bank and the funds have been availed already,” he explained.

At Mbezi Beach, the treatment plant will be set up at Kilongawima area and will be able to process 16,000 cubic metres of sewerage per day, it will consist a network of 97 kilometres covering Mbezi Beach, Kawe, Tegeta and surrounding areas.

“This project is designed to cost 65m US dollars (approximately 143bn/-) and funded by the World Bank. We are now awaiting a permit from the bank to start inviting contractors to implement the project,” he explained.

The Kurasini plant will cover a network of 90 kilometres from Keko, Chang’ombe, Kurasini, Temeke and National Stadium and will have a capacity of treating 11,000 cubic metres per day.

The costs of the project are still being analysed but it will be financed by French Development Agency (AFD).