How Logicalis is Driving Digital Transformation for South African Businesses

Morne Laubscher, CTO of Logicalis

International IT solutions and managed services provider, Logicalis has announced the availability of its globally renowned Cisco integration expertise in South Africa. This move speaks to how the group has added another string to its bow as the company evolves towards a new brand positioning, as Architects of Change.

Morne Laubscher, CTO of Logicalis

In this interview, ITNA’s Jenna Delport chatted to Morne Laubscher, CTO of Logicalis, about how Logicalis and the tech industry as a whole is shifting to achieve digital transformation , excerpts:

Read also : https://afrikanheroes.com/2020/07/09/moroccan-fintech-startup-onepay-raises-409k-from-maroc-numeric-fund-ii/

Logicalis is said to be positioning the company as an architect of change – what exactly does becoming an architect of change mean, especially in such a fast-paced industry?

With this fourth industrial revolution, we find ourselves in the exponential growth of innovation and digital services across Hyper Scaler Cloud Providers and in the Customer Datacentre. it’s important to have a heterogeneous approach to business requirements.

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Modernizing and improving the way our customers work with their customers, deliver services and run their business starts with the Use Case and is typically addressed by digital transformation solutions of a multi-technology and service nature. We pride our selves in being the Architects of Change that can envisage and built these modern digital solutions for our customers.

How is Logicalis working towards achieving world-class digital transformation in South Africa given the current market conditions?

Logicalis South Africa started as an offshore centre of excellence for the Logicalis group. Our expert engineering teams support customers across the globe this allows us to give local customers access to these resources in our shared service centre which bring international experience and lessons learned to the South African market.

Read also: https://afrikanheroes.com/2020/07/07/africa-and-south-africa-must-embrace-4ir-to-compete-in-the-global-economic-race/

What does achieving the Cisco Global Gold certification mean for Logicalis?

The Global Gold Certification is held by only a hand full of organizations worldwide. It speaks towards our success and capability in the Cisco technology space across all our global regions.

Logicalis won 20+ awards at Cisco Live last year one of which was a global award. We have 250 gold certifications across the group and our Cisco partnership is 20+ years old.

What commercial benefits can local businesses expect from Logicalis and Cisco’s partnership?

Logicalis South Africa is setup to procure and import as a direct Cisco Partner. This allows customers in South Africa to enjoy direct procurement pricing without any middle man uplifts ensuring we can put some of the most competitive prices on the table in South Africa.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Multichoice Raises the Bar With Showmax Live-streaming Service in Kenya, Nigeria

The race for livestreaming video platforms will get more competitive in Nigeria and some African countries as Showmax launches its new live streaming service – Showmax Pro – which will initially roll out in Nigeria and Kenya. The service will bundle the existing Showmax entertainment service with music channels, news and live sport streaming from SuperSport.

Niclas Ekdahl, CEO of the Connected Video division of MultiChoice
Niclas Ekdahl, CEO of the Connected Video division of MultiChoice

Showmax Pro features all Premier League, Serie A, La Liga and PSL games, as well as a wide range of other live sport events. Showmax Pro offers channels such as movies, kids’ shows, documentaries, IAAF Athletics, pro boxing, major international marathons, & more. It also has music channels such as Trace Urban, Trace Gospel, with news channels like Africa News, Euronews, Newzroom Afrika. In football, it offers all Premier League, Serie A, PSL and La Liga games. And in all, it can run a number of concurrent streams on smartphone and tablet apps, Smart TV, laptop, Android TV, Apple TV apps all in maximum video resolution, high definition, and standard definition.

Read also:https://afrikanheroes.com/2020/06/13/what-nigeria-s-new-broadcast-media-regulation-means-for-media-startups/

It supports smart TVs: Samsung Tizen (2017-2020), LG WebOS (2014-2020) Showmax originally launched in August 2015 and is available across sub-Saharan Africa. In June 2019, Showmax began testing sport live-streaming, and the new Showmax Pro service is based on the results of this.

According to Niclas Ekdahl, CEO of the Connected Video division of MultiChoice, says “the live sport test we ran on Showmax in conjunction with SuperSport has been well received, so that’s forming an integral part of our new Showmax Pro service.”Another key development for African markets has been adapting the service for the data connectivity constraints on the continent and focusing on the most-used viewing devices.

In November last year, Showmax launched a mobile-only service for smartphones and tablets featuring all of the Showmax content but at half the cost of the standard Showmax service and consuming less data. This service has also proven popular, so in addition to the standard version of Showmax Pro there will also be a mobile-only version at half the price.

Talking about the role of a mobile-only option, Ekdahl asks “what else have we learned about operating an internet video service in Africa? Mobile usage is mainstream, so having a one-size-fits-all big screen service may not be the best solution here. With the mobile-only version of Showmax Pro, anyone with a smartphone in sub-Saharan Africa will be able to get the best African content, the best of Hollywood, and all of the best sporting action. This is something no other service is doing and we think it’s a game-changer.” Showmax Pro will begin to roll out in Kenya and Nigeria from 7 July. Additional countries will go live in the following weeks. The entire process is expected to be completed within 6-8 weeks with coverage across sub-Saharan Africa.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Rural Traders and Producers in Tanzania Witness Tripled Incomes

African Startups

Small and medium scale business people across Africa will not be able to break even unless issues relating to poor market infrastructure are addressed. This prompted the establishment of a special purpose vehicle by the African Development Bank to help create access to markets for these MSME’s. It is through the fund that the Bank made available the sum of $56.8 million spread across 32 districts with a population of 6.1 million in 1.2 million households in Tanzania. And the results have been encouraging, according to a report released by the project team. The project, rolled out in the country between 2012 and 2017 increased the incomes of rural producers and traders threefold.

With $56.8 million in funding from the African Development Bank, the programme was undertaken in 32 districts with a population of 6.1 million in 1.2 million households. Approximately 78% of beneficiaries reported improved incomes, rising from an average of $41 in 2012 to $133 in 2017.

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“This increase is attributable to the sale of value-added products, improved access to markets, increased productivity, the use of improved techniques (including the System of Rice Intensification and the use of fertilizer and improved seed) and enhanced capacity to negotiate better prices,” explained project team lead Salum Ramadhan. Small producers and traders also gained greater access to agricultural markets, which cut their post-harvest losses of staple crops. One beneficiary, the Meru Dairy Company, recorded a nearly-85% spike in production: establishment of a cold room boosted the company’s milk-production capacity from 400 to 2200 litres.

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Transportation costs on all refurbished roads dropped by an average of 20% to 50%. For example, the cost of transporting a bag of onions on the renovated road to Mang’ola market in Karatu fell from $1.30 to $0.22. Transport times for produce harvested have fallen from an average of three-and-a-half hours to 56 minutes. Downstream, the use of the programme’s warehouses has led to a sharp decline in post-harvest losses, from 57% to 15% overall.

“Despite challenges in terms of coverage, the programme has worked well thanks to the efficiency of communication with the district and regional liaison officers, and to the good relationships established with district and regional political and administrative structures,” according to the project completion report.

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The successful implementation of the project is thought to have helped rural poverty reduction and economic growth, by improving incomes and food security. The project also complemented the work of government agencies by boosting access to markets and increasing the quantity of value-added agricultural products.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Abbot Laboratories Face Class Action Suit in Africa

NJ Ayuk, Executive Chairman of the African Energy Chamber, CEO of pan-African corporate law conglomerate Centurion Law Group

Government and nongovernmental organization across Africa are suing American multinational pharmaceutical firm Abbot Laboratories for failure to keep to its term of the contract in delivering Covid-19 Tests Kits. With this development Abbot Laboratories faces multimillion-dollar lawsuit over contract compliance with African Covid-19 Test Kits due to its inability to execute orders and to deliver came at the expense of African companies causing financial loss and damage to their reputations.

NJ Ayuk, Executive Chairman of the African Energy Chamber, CEO of pan-African corporate law conglomerate Centurion Law Group
NJ Ayuk, Executive Chairman of the African Energy Chamber, CEO of pan-African corporate law conglomerate Centurion Law Group

According to Centurion Law Group which has been engaged to institute the legal action against Abbott Laboratories, the multinational company willfully undersupplying African suppliers of COVID-19 test kits even when the African parties made orders first, delivery was effected last or not at all.

 “Abbott Laboratories should have known better and their handling of orders of COVID-19 test kits have caused serious health and financial damages to many Africans,” stated NJ Ayuk, CEO of Centurion Law Group. “We do not take this case lightly. These are trying times, and though a corporation is big and powerful, it does not give it the right to undermine the rights of African companies and governments who placed orders of COVID-19 test products,” added Mr. Ayuk.

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Abbott Laboratories has been expanding on the continent and pushing for a lot of new business.  Many African suppliers and governments were proactive in their response to the pandemic and placed timely orders with Abbott Laboratories.  The inability of Abbott Laboratories to execute orders and to deliver came at the expense of African companies causing financial loss and damage to their reputations.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Algerian Stock Market Commission Accepts IPO Applications From Two Algerian SMEs

At a time when the coronavirus has wreaked havoc around the world and businesses are increasingly searching for liquidity to survive the attendant economic crunch, the Algiers Stock Exchange has opened its doors to small scale businesses (SMEs) and startups to list their stocks for public subscription. If successful, this would be the first ever listing by a small scale business on any stock exchange in Algeria, although a legal framework to that effect had been put in place way back in 2012. 

president of the Commission for Organization and Supervision of Stock Exchange Operations (Cosob), Algeria’s financial market regulatory authority.
Abdelhakim Berrah, president of the Commission for Organization and Supervision of Stock Exchange Operations (Cosob), Algeria’s financial market regulatory authority.

“To be admitted to the Algiers Stock Exchange, the company must have made profits during the financial year preceding its application for admission. But for the year 2020, we are going to set up a derogation so that the health crisis is not a brake for the IPO, provided that the fall in turnover is directly linked to the pandemic and not to other reasons,” said Abdelhakim Berrah, president of the Commission for Organization and Supervision of Stock Exchange Operations (Cosob), Algeria’s financial market regulatory authority.

Here Is What You Need To Know

  • The Commission said it received in 2020 two new requests for listing on the Algiers Stock Exchange.
  • These are two SMEs (small and medium-sized enterprises) which have officially submitted their applications to Cosob in order to make their entry on the Algiers Stock Exchange, which had opened a dedicated compartment exclusively to this type of business in 2012, according to Berrah.
  • The first request concerns a company active in the agro-food sector which aspires to raise funds in the order of one (1) billion dinars ($7.7 million).
  • Also submitted by an SME active in the tourism sector, the second request concerns an operation to issue equity securities for a total amount of 10 billion dinars ($77.5 million), over a period of three years in one or more installments, as needed.

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  • In 2019, Cosob launched a survey with the aim of identifying the SMEs eligible for IPOs.  
  • The work resulted in the identification of a dozen companies, “many of which have officially expressed their intention to begin their IPO process,” said Berrah. 
  • Algeria is following the example of neighbouring Morocco, often quoted as an example of SME integration within the financial market in Africa.
  • The Moroccan government and the BVC have introduced several mechanisms to improve SME financing, such as tax incentives with up to a 50 percent exemption on corporate tax on the three first years of listing.

What Is an IPO?

An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance. Public share issuance allows a company to raise capital from public investors. The transition from a private to a public company can be an important time for private investors to fully realize gains from their investment as it typically includes share premiums for current private investors. Meanwhile, it also allows public investors to participate in the offering. A company planning an IPO will typically select an underwriter or underwriters. They will also choose an exchange in which the shares will be issued and subsequently traded publicly.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.

Africa and South Africa must embrace 4IR to compete in the global economic race

Professor Tshilidzi Marwala

By Tshilidzi Marwala

Research on the impact of artificial intelligence in 12 developed economies reveals that AI could double annual economic growth rates by 2035 and could increase labour productivity by up to 40%, increasing efficiency.

As many South Africans continue to feel the pinch of the economic crisis, there seems to be a pervasive sense of resignation as to whether the country will ever pull itself out of this crisis. In 1982, US author Chalmers Johnson proposed the concept of a developmental state. This, Johnson explained in his book MTI and the Japanese Miracle, is a state that focuses on the growth and development of the economy, using interventionist policy measures. In Japan, this has led to sustained, rapid industrialisation and long-term economic development.

Professor Tshilidzi Marwala

Asian countries such as Japan, South Korea, Vietnam and Singapore are effective case studies of developmental states that have seen substantial economic growth. The lessons we learn from these countries is that emerging economies should leapfrog in order to become transformational. Leapfrogging is the quick jump in economic development by harnessing technology with consensus achieved by governments, the private sector and citizens – thus enabling development. This is what ignited the boom in Asian countries that opted to tap into manufacturing. The fears of automation already pervade different sectors of society, economy and politics.

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Identifying optimal solutions to the expected job displacements requires a rethinking of education, science, technology and innovation systems. Inequities and inequalities of communities can be eliminated through flattening the playing field so that technology does not become a new discriminatory barrier. Though poor and technologically deprived countries can rewrite their own stories and catch up (or even lead) technologically, accounts of late developers managing to do this are a rarity. China (in present terms), Singapore and South Korea in the late 20th century, as well as Japan in the early 20th century, stand out for a reason.

It is worth noting that these nations also did not engineer their economic miracles alone. The “flying geese” theory is a metaphor of how foreign direct investment (FDI) moved from North America to Japan, and then to the other Asian countries, leading to economic miracles in its wake. This theory explains how a country can rapidly develop by focusing on labour-intensive industries which then become the basis for exports to more developed countries as the level of quality improves, ultimately leading to exponential economic development.

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As we navigate the Fourth Industrial Revolution (4IR), the argument for a developmental state once again has come to the fore. Characterised by advances in technology such as the Internet of Things (IoT), artificial intelligence, blockchain technology and big data, the 4IR is changing the way individuals and entire societies work, live and interact. In his State of the Nation Address last year, President Cyril Ramaphosa said that leveraging the 4IR is the key to improving education and health, fostering economic transformation and job creation and developing a capable, ethical and developmental state. As he put it, “this is what I believe can help us advance our priorities to speed our transformation. We need to focus on the growth in the South Africa we want.”

The economic benefits of the 4IR are vast. Accenture research on the impact of AI in 12 developed economies reveals that AI could double annual economic growth rates by 2035 and could increase labour productivity by up to 40%, increasing efficiency. Similarly, a report from PwC estimates that AI advances will increase global gross domestic product (GDP) by up to 14% by 2030, the equivalent of an additional $15.7-trillion contribution to the world’s economy.

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In his Supplementary Budget speech last month, Finance Minister Tito Mboweni could not have put it better. He said, “[We must] not merely return our economy to where it was before the coronavirus, but forge a new economy in a new global reality”. 

According to the report, increased consumer demand for AI-enhanced offerings will overtake productivity gains and result in an additional $9.1-trillion of GDP growth by 2030. All of this, however, is expected to have a lesser impact on Africa. According to PwC, Africa, Oceania, and some less-developed Asian markets will see $1.2-trillion or 5.6% GDP growth. This is significantly less when compared to China, which is expected to see the most significant economic gains from AI with a $7-trillion or 26% boost in GDP growth, or North America, which is expected to see financial benefits of $3.7-trillion or 14.5% of GDP growth by 2030.

Added to this, we now find ourselves in a vastly different context from last year’s State of the Nation Address. The economy has taken a substantial hit in recent years. News sites were awash with headlines this week of a deepening recession following the release of the GDP figures for the first three months of the year. According to Statistics SA, GDP growth for this period was -2%, making it the third quarter of decline. Importantly, this data represents the state of the economy before the nationwide lockdown necessitated by the coronavirus pandemic was implemented. Forecasts indicate that the fallout from the pandemic in South Africa will be akin to the Great Depression almost a century ago.

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In his Supplementary Budget speech last month, Finance Minister Tito Mboweni could not have put it better. He said, “[We must] not merely return our economy to where it was before the coronavirus, but forge a new economy in a new global reality”. 

This brings us back to the conversation around undoing the deindustrialisation that has occurred in the last few years. There have been successful instances of industrialisation in Africa in countries such as Rwanda, Ethiopia and Tanzania. These countries have implemented policies that focus on local manufacturing industries and investor-friendly policies. Yet, as we look to the technologies of the 4IR for alternatives, there are some factors to consider.

According to the International Labour Organisation, the unemployment rate in the sub-Saharan region is only around 6% – but this is because most available work is low-skilled or unskilled. This, in large part, is because of the lack of access to higher education. Of course, this means that a vast portion of the population is not skilled enough to work with and embrace the technologies of the 4IR. Our readiness is another hurdle. According to the World Economic Forum, all 15 African countries assessed for production readiness fall into the “nascent” category. According to Deloitte, when we compare Africa to the rest of the world, the adoption of 4IR is low.

Nonetheless, this is increasingly being acknowledged as important by economic and political leaders, mainly because of the impact that smart technologies can make at a socioeconomic level. The greatest challenges in Africa identified by Deloitte are digital skills, accessibility and connectivity. Out of the 15 African countries ranked, only South Africa fell within the top 50 countries for two subdivisions. Since the 1980s, South Africa’s manufacturing share of GDP has decreased from 25% to around 13% today. Nevertheless, the country still has the most substantial structure of production on the continent. Across the drivers of the production component, South Africa’s performance is mixed.

Overall, in the South African manufacturing industry, the adoption of smart technologies that accelerate 4IR remains at the foundation stage, with some sector differences.

On the one hand, the ability to innovate is one of South Africa’s greatest strengths, because the country has a strong innovation culture and formal entrepreneurial activity supported by a sophisticated financial sector. On the other hand, human capital remains the most pressing challenge in preparing for the future of production, because there remains a shortage of engineers and scientists, as well as digital skills. South Africa needs to improve its institutional framework in order to respond to change, offer a stable policy environment and direct innovation effectively.

We have seen the shift in recent years towards investment in Sub-Saharan Africa. According to the World Bank, between 2000 and 2013, FDI flows into the region increased six-fold to $45-billion, particularly in the manufacturing sectors. This showed a significant shift from the previous emphasis on the continent’s natural resources, which saw investment flow into the extractive sectors. According to Accenture, harnessing digital technologies can generate R5-trillion in value for South African industries over the next decade, particularly in agriculture, infrastructures, manufacturing and financial services.

Overall, in the South African manufacturing industry, the adoption of smart technologies that accelerate 4IR remains at the foundation stage, with some sector differences. There is an appreciation for advanced analytics within the automation and automotive sectors, but manufacturers have not yet explored the real opportunities for advanced analytics. The adoption of Cloud solutions is primarily driven more by consumers than businesses, the main concerns being the fear of cybercrime and privacy issues. Advanced sensor technologies are, with some exceptions – such as in the automotive industry – also still at a foundation stage.

There is, however, interest among manufacturers to take advantage of the potential for better monitoring, controlling and tracking. The use of robotics is mostly at an automated stage and not yet at a smart or advanced stage, with no widespread adoption of additive manufacturing or 3D printing which builds materials through a layering process in South Africa, even though the significance and the potential of this technology are increasingly acknowledged.

Perhaps a critical step will be for African economies to harness digital trade through the African Continental Free Trade Area (AfCFTA) that came into effect in 2019. The agreement brings together all 55 member states of the African Union (AU), with a combined population of 1.2 billion people, including a growing middle class, and a GDP of approximately $3.4-trillion. Already, the possibility of new markets presents new avenues for tech startups and e-businesses. The key, of course, is to continue to harness this potential.

Importantly, we need to be prepared for the shift the 4IR brings so that we can adopt technology that is beneficial to all sectors of our society. Science and innovation have the potential to enable development and are the drivers that will tackle global challenges such as water shortages, climate change, food insecurity and deep inequities. There are solutions that can be posited especially by emerging economies. There is a need to harmonise across both private and public sectors to build the scientific capacity of our country. Universities can unlock deadlocks that may develop directly or indirectly due to the 4IR.

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We have to redirect research to explore meaningful and innovative solutions to real-world African problems and tackle the problems of inequality, poverty, health, and development.

Professor Tshilidzi Marwala is the Vice-Chancellor and Principal of the University of Johannesburg. He is the Deputy Chair of the Presidential Commission on the Fourth Industrial Revolution.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

World Bank Declares Tanzania as Middle Income Country

John Magufuli, Tanzanian president

President John Magufuli has commended his government and the people of Tanzania for their support and accepting hard choices aimed at setting the economy of the country on the right pedestal for long term growth. This came following the upgrading of the country as a Middle Income economy by the World Bank Group. Tanzania was categorised a lower middle-income country by the World Bank effective July 1, a development which was notably celebrated by authorities and a cross-section of Tanzanians.

John Magufuli, Tanzanian president

According to the World Bank, Tanzania is among seven countries that moved to a higher category this month, while three others went down in their economic status for 2019.  Economists said getting into middle-income status is “a step forward” in the national development process, but added that this had both advantage and disadvantages. “The categorisation reflects improvement in poverty reduction, and is a step forward in the country’s development,” said Prof Delphin Rwegasira of the University of Dar es Salaam’s Economics Department. Adding that “for a country, moving into lower middle-income status boosts its credit worthiness, and that is good for Tanzania, which has ambitious growth plans.”

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The World Bank assigns the world’s economies to four income groups–low, lower-middle, upper-middle, and high-income countries. The classifications are updated each year on July 1, and are based on gross national income (GNI) per capita – the total amount of money earned by a nation’s people and businesses divided by its population. GNI includes the nation’s gross domestic product plus the income it receives from overseas sources. Dr Abel Kinyondo, a lecturer at the University of Dar es Salaam, said individuals need to cautiously celebrate as they may not see any changes. “The problem with averages is that they can sometimes be misleading by generalising the income of every Tanzanian, while actually the gap between rich and poor is very huge,” he said.

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Tanzania qualified for the status of lower middle-income after its GNI per capita increased to $1,080 in 2019 up from $1,020 in 2018, according to the updated list. Lower-middle income countries have their GNI per capita ranging between $1,036 and $4,045. “For a country, this is a milestone because it attracts favourable credit as well as foreign investors due to the impression that living standard and consumption has improved,” said Prof Honest Ngowi of Mzumbe University.

“On the negative side, Tanzania will now be considered to have matured and therefore cannot access some grants and some concessional loans it received as a low-income country,” he said. According to him, the categorisation is more advantageous to the country than individual citizens who will not see significant changes in their lives.

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President John Magufuli expressed his excitement following the new categorisation by the World Bank, thanking Tanzanians for the achievement. “I congratulate all my compatriots on this historic achievement. We had envisaged achieving this status by 2025 but with strong determination, this has been possible in 2020. God bless Tanzania,” Dr Magufuli posted on Twitter. But economists believe Tanzania has a long journey to reach the peak of the status. “Tanzania has done well in the last fifteen years but needs to accelerate the growth to 8-10 percent. I believe the current infrastructure investment and improving business environment will enhance development,” said Prof Rwegasira.

Others say Tanzania is supposed to reduce inequalities so that growth of the economy is shared across the board, without leaving others out.”We need an inclusive economy where not only a few sectors will dominate the economic growth. That way, people will see improvement in their lives,” said Dr Kinyondo. Confederation of Tanzania Industries (CTI) director of policy and advocacy Akida Mnyenyelwa said the entry into middle-income status was good news for industrialists who, he added, were part of the success.

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“This means that our country’s credit worthiness will improve and industrial investors will get an opportunity to borrow externally. I believe more lenders will trust us, and Tanzania will attract more investors,” he said

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Why African Countries Are Reopening Airspaces

World Health Organization’s Africa chief, Matshidiso Moeti

Many African countries are reopening their airspaces inspite of the rising cases of COVID-19 cases across the continent. This according to observers is part of efforts to save their economies from total collapse with the regional recession starring them on the face. Of all the countries in Africa, the island nation of Seychelles seems to be making headway in tackling the pandemic. As at this week, the country has gone 70-plus straight days without a single infection. Yet it is delaying reopening its airspace, waiting till August 1, because that was how the virus made a landfall in the country.

World Health Organization’s Africa chief, Matshidiso Moeti

Countries across the continent are facing very difficult choices with rising infection rate. They are in a dilemma to either welcome the international flights that originally brought COVID-19 to the continent, or further hurt their economies and restrict a lifeline for badly needed humanitarian aid. “This is a very important moment,” the World Health Organization’s Africa chief, Matshidiso Moeti, told reporters on Thursday, a day after Egypt reopened its airports for the first time in more than three months.

Africa had more than 463,000 confirmed virus cases as of Sunday (July 5) and South Africa, its most developed economy, already struggles to care for COVID-19 patients. But Africa’s economies are sick, too, its officials say. The continent faces its first recession in a quarter-century and has lost nearly $55 billion in the travel and tourism sectors in the past three months, the African Union says. Airlines alone have lost about $8 billion and some might not survive.

Most of Africa’s 54 countries closed their airspace to ward off the pandemic. That bought time to prepare, but it also hurt efforts to deliver life-saving medical supplies such as vaccines against other diseases. Shipments of personal protective gear and coronavirus testing materials, both in short supply, have been delayed. “Many governments have decided travel needs to resume,” the WHO’s Africa chief said.

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Africa has seen far fewer flights than other regions during the pandemic. Sometimes the entire West and Central African region saw just a single daily departure, according to International Civil Aviation Organization data.

While Asia, Europe and North America averaged several hundred departures a day from international airports, the African continent averaged a couple or few score daily. Last week, the number of global flights jumped significantly. In the three-day period between June 30 and July 2, the daily number of departures increased from 3,960 to 6,508 as countries loosened restrictions, the data show.

African nations want to join the crowd. Senegal’s president has said international flights will begin on July 15. The 15-member Economic Community of West African States is expected to reopen its airspace on July 21. Nigeria has said domestic flights resume on July 8 and Rwanda on Aug. 1.

Kenya Airways wants to resume international flights. South Africa and Somalia are open for domestic ones, and Cameroon, Equatorial Guinea, Tanzania and Zambia now have commercial flights. Tanzania opened its skies weeks ago, hoping for a tourism boost despite widespread concern it’s hiding the extent of infections. It hasn’t updated case numbers since April.

“It’s good to be back!” Africa’s largest carrier, Ethiopian Airlines, declared late last month. After scrambling to revamp its services for cargo and repatriation flights in the past few months, it now wants to play a leading role in “the new normal.”

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That means face masks are mandatory on board. But the WHO’s Africa chief hopes to see all airlines do more. “Physical distancing should be encouraged by leaving seats vacant,” Moeti said. And she suggested that “when we see a flare-up that is unacceptable” in virus cases, the loosening of travel restrictions could be reversed.

The WHO recommends that countries look at whether the need to fight widespread virus transmission outweighs the economic benefits of opening borders. “It is also crucial to determine whether the health system can cope with a spike in imported cases,” it says.

Regional leaders of the International Air Transport Association and Airports Council International are ready to go. In an open letter to African ministers last month, they welcomed global guidelines developed by the ICAO for the return to travel after the aviation industry’s “biggest challenge of its history.”

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They also urged African countries to “identify every opportunity where travel restrictions could be lifted … as soon as the epidemiological situation allows for it.”

As the continent slowly takes flight, some European nations and others are limiting entry to people from countries they feel are doing a good job of containing the virus. African nations can seize the moment and do more tourism at home, Amani Abou-Zeid, AU commissioner for infrastructure and energy, told reporters last week.

“This is an opportunity to encourage Africans to see Africa,” she said. Not always. The 70 recently infected people in the Seychelles, all crew members from West African countries meant to work on tuna fishing vessels, were isolated on boats in a special quarantine zone in the harbor in the capital.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

BUA to Construct Ultramodern Cement Plant, 50mw Power Plant

Abdul Samad Rabiu, Chairman of BUA Group

The Chairman of BUA Group has revealed that the power challenges which has been the bane of industrialization in Nigeria has forced his organization to venture into electric power production with the expansion of its operations by building a new cement factory and power plant in Adamawa State of Nigeria. According to the Chairman, Abdul Samad Rabiu who led the BUA Cement Management team on a courtesy call to the Adamawa State Governor, Ahmadu Umaru Fintiri, the company is set to establish a three million metric tonnes cement plant and 50 megawatts power plant in Guyuk and Lamurde local governments of Adamawa state in the North Eastern region of Nigeria. This was revealed when the Chairman of BUA, Abdul Samad Rabiu led the BUA Cement Management team on a courtesy call to the Adamawa State Governor, Ahmadu Umaru Fintiri in the Government House, Yola.

Abdul Samad Rabiu, Chairman of BUA Group
Abdul Samad Rabiu, Chairman of BUA Group

Speaking during the visit, Abdul Samad Rabiu said preliminary findings show that the two local governments of Guyuk and Lamurde are reputed to have good quality of limestone deposits and BUA Cement is ready to begin the investment in the state. He added that the BUA will use new technologies to supply power to the proposed cement plant and communities of Guyuk and Lamurde in addition to providing three thousand direct and five thousand indirect jobs.

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The Chairman stressed that the Guyuk Cement Plant will be the major investment in the North East by BUA and solicited the support of Governor Umaru Fintiri to set up the factory in Guyuk. Rabiu said the company made a decision to source its raw materials locally and it has invested billions of dollars in various sectors across Nigeria and therefore urged the state government to support BUA to actualize the Guyuk Cement project. In addition, he praised the commitment of the governor within one year in office in many sectors of development despite the economic challenges in Adamawa.

Responding, Governor Ahmadu Umaru Fintiri said his administration’s effort in exploring local contents has started yielding results and thanked BUA for showing interest in establishing the cement plant in Guyuk. He further assured the management team of BUA that the government will make whatever is needed and provide the necessary support which will create an enabling environment so that the BUA Cement company in Guyuk will become a reality.

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He also expressed readiness of the government to protect the investment once it is established and told them that his administration will maintain the good relationship with the company for the benefit of the state.

BUA is Nigeria’s second largest Cement Producer by volume with cement plants in Sokoto and Edo States. The Company’s newest plant in Sokoto is expected to be operational in 2021. When completed, the Guyuk Cement Plant will bring BUA’s total capacity to 14million metric tonnes per annum.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Atlas Petroleum Resumes Development of OML109 in Nigeria

Prince Arthur Eze, Executive Chairman or Atlas Oranto

Business within the Nigerian petroleum sector picked up over the weekend as Atlas Petroleum International resumed work over activities and well interventions on OML 109 in Nigeria in order to enhance production from the Ejulebe marginal field. Awarded to Atlas Petroleum International in 1991, the block entered into production through the development of the Ejubele discovery in September 1998. OML 109 comprises 14 identified and mapped prospects and leads, and un-risked resource potential in excess of 500 million barrels of oil equivalent. Its low-cost operating environment in shallow water and proximity to existing oil and gas infrastructure such as the Escravos Terminal makes it one of the most attractive assets in the Niger Delta, with significant untapped and under-explored hydrocarbons potential.

Prince Arthur Eze, Executive Chairman or Atlas Oranto
Prince Arthur Eze, Executive Chairman or Atlas Oranto

“The renewed development of OML109 will bring a boost to local content development in Nigeria, and support the industry’s recovery following the Covid-19 crisis. As Nigeria multiplies efforts to build domestic capacity and develop the Nigerian content, we intend to live up to expectations as one of the country’s major indigenous players”, declared Prince Arthur Eze, Executive Chairman or Atlas Oranto. “We expect the ongoing wells interventions on OML 109 to deliver quick wins on the recovery and enhancement of production from the field, and express our thanks to the Department of Petroleum Resources for facilitating all permits,” he concluded.

Atlas Petroleum International and Oranto Petroleum represent one of Africa’s largest Nigerian and privately-held exploration and production group. The companies currently have an extensive footprint across the African continent, holding 22 oil and gas licenses in 12 jurisdictions.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry