Every week, we review the best Africa-related business and finance news across the web and deliver to you the top 10 pieces of the week!
Week of July 13th
Ten Young African Millionaires To WatchForbes discusses the successes and struggles of 10 entrepreneurial millionaires from across Africa including Jason Njoku, creator of the world’s largest distributor of African movies, and Mike Macharia, founder of Seven Seas Technology, "East Africa’s most reputable IT services firm."
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Nigeria's Cabinet Approves Bill to Overhaul Oil SectorNigeria’s Petroleum Industry Bill, five years in the making, has been sent to President Goodluck Jonathan for approval. This bill, if passed, would partially privatize Nigeria’s state oil company and impose new taxes on foreign oil corporations, in addition to implementing other reforms.
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Emerging Investors in Africa: AfricansWhile foreign investment in Africa has had stops and starts, the Wall Street Journal notes that local African companies have mounted a steady expansion drive. According to a recent United Nations report, starting at modest levels, investment between African states has almost doubled in the past five years.
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Source: The Wall Street Journal
FDI Into Africa to Double by 2014While foreign direct investment inflows into Africa fell slightly in 2011 due to political unrest in the North African region, the U.N. recently predicted that ongoing reforms and strong, stable growth will cause FDI in Africa to rise to $75-$100 billion by 2014, a doubling of current FDI levels. Read More »
Source: Business Day (Nigeria)
Kenya’s Deepwater Debut Heralds East Africa’s First Oil: EnergyThe first deepwater oil well off of Kenya is scheduled to be drilled next month by Houston-based Apache Corporation (APA). East Africa has recently become one of the world’s most active oil and gas exploration areas. Read More »
Tax Relief on the Cards for South African Business Throughout the ContinentAs part of the Taxation Laws Amendment Bill, South Africa is expected to pass a set of reforms that will lighten tax burdens on South African multinational companies doing business throughout the rest of Africa. Billy Joubert, a tax director at Deloitte, states in the article that “relief for these companies is essential if economic recovery [in South Africa] is to occur.” Read More »
Source: Business Day (South Africa)
How to Manage Risk in Sub-Saharan AfricaPeter Schmid of Actis, the pan-emerging markets private equity specialist, details the myths and realities of risk when investing in Africa, focusing on the need to build a talented local team, and the difficulties this poses. Read More »
Mirage in the Desert: The Myth of Africa's Land GrabCNN addresses the ongoing debate on whether foreign investment in African agriculture is decreasing or increasing global hunger. The publication argues that, while more non-ideology driven research is needed, “the land grab phenomenon in Sudan and in many (though not all) African countries increasingly resembles… a mirage in the desert which completely distorts the object on which it is based.” Read More »
Africa a Mecca for MultinationalsMultinational corporations, in sectors such as retail, fast-food, and telecommunications, give their perspectives on recent investment in Africa, stating that the driving force behind recent success in Africa is the “increasing pace of urbanization and consumerization,” which is expected to accelerate in the coming years. Read More »
Source: Business Live (South Africa)
Foreign Direct Investment into Zimbabwe DoublesDespite political uncertainty, the Southern African nation of Zimbabwe still benefited strongly in 2011-2012, riding sub-Saharan African investment trends to double foreign direct investment in various sectors throughout the local economy. Read More »
Source: The Standard (Zimbabwe)