• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to secondary sidebar
  • Home
  • About
  • Advertise
  • Contact
  • Disclaimer
  • Privacy Policy
  • Term & Conditions

southernafrican.news

Southern African News- The Newspaper For Southern Africa

  • Analysis
  • Arts & Culture
  • Business
  • Feature
  • Health
  • News
  • Politics
  • Sports
  • Technology
  • Travel

Africa

Malaria Free Africa in Sight

November 25, 2019 by Timo Shihepo Leave a Comment

Windhoek – Ten countries, including Namibia, have been awarded the 2016 African Leaders Malaria Alliance (ALMA) Award for Excellence for achieving the Millennium Development Goals target for malaria. Other African countries to be commended Botswana, Cape Verde, Eritrea, Rwanda, São Tomé and Príncipe, South Africa, and Swaziland for eliminating the disease.

In addition, Rwanda, Senegal and Liberia have been awarded for good performance in Malaria Control between 2011 and 2015. While, Mali, Guinea and Comoros were awarded for being the Most Improved in Malaria Control between 2011 and 2015.

Loading...

During the gathering, African leaders reiterated their commitment to malaria elimination on the continent by 2030.

President Hage Geingob collected the award for Namibia during the ALMA’s annual meeting in Addis Ababa, Ethiopia on January 26, according an ALMA press statement issued to the media.

Founded in 2009, the African Leaders Malaria Alliance is a ground-breaking coalition of 49 African heads of state and government working across country and regional borders to achieve a malaria-free Africa by 2030.

With the aim to celebrate exemplary leadership in policy, impact and implementation in the fight against malaria, this year ALMA presented awards to 13 African countries that have shown commitment, innovation and progress in the malaria fight.

U.N. Secretary-General Ban Ki-moon has commended the winners, saying: “These are impressive achievements. They are a result of your vision of a malaria-free world.”

Loading...

Prime Minister Hailemariam Dessalegn of Ethiopia, the current chairperson of ALMA pointed out that the success in these 13 countries and elsewhere across the continent demonstrates that strong leadership is the most powerful weapon against Malaria.

Despite the remarkable achievements, Dessalegn called for African countries not to lose sight that malaria remains a disease of poverty and a major public health concern particularly in Africa, calling for the governments and stakeholders to continue investing in malaria interventions in order to reduce malaria cases and deaths.

This was cemented by, Joy Phumaphi, Executive Secretary of ALMA. Phumaphi said due to the fact that Malaria still kills an African child every two minutes and that millions of Africans are not receiving the lifesaving health care services and tools they need to prevent and treat malaria, more work is still need to be done in order to free the continent from Malaria.

While accepting the award for his country, South African President Jacob Zuma said despite the achievement, his country will not be complacent in tackling the disease.

“In this regard we have committed to eliminate the disease from within our borders. We are also working with our neighbouring countries to also fight the disease in our neighbourhood,” said the President.

Zuma reveals that Malaria cases have decreased in South Africa by 82% and the deaths have also decreased by 71%, since the year 2000, to date.

The decrease in malaria cases is attributed to a sound malaria vector control programme, where South Africa has used dichlorodiphenyltrichloroethane or DDT odourless insecticide for Indoor Residual Spraying, coupled with other World Health Organisation recommended interventions.

Loading...

Share this:

  • Tweet

Filed Under: News Tagged With: Africa, Malaria

Can Africa Strike a Balance Between Conservation and Economic Growth?

November 15, 2019 by Magreth Nunuhe Leave a Comment

Written by Lisa Karanja

Africa’s narrative today іѕ a different narrative tо whаt іt wаѕ 10 – 15 years ago. Gone аrе thе days оf “Africa, thе Dark Continent” оr “Africa, thе Failed Continent.”

Today’s Africa іѕ аn Africa оn thе mоvе. Africa’s new monikers embrace a mоrе positive view, ѕuсh аѕ “the Rising Continent” аnd “Renaissance Africa.” But аrе wе seeing thе whоlе picture?

It іѕ widely reported аnd celebrated thаt Africa hаѕ turned a corner, wіth rapid economic growth leading tо higher standards оf living аnd a reduction іn thе percentage оf people living іn absolute poverty. Althоugh thе rates аnd standards оf progress differ аrоund thе continent, mаnу African countries hаvе seen annual GDP growth оf bеtwееn 4-6%.

It іѕ реrhарѕ lеѕѕ widely reported оr acknowledged thаt аѕ African economies hаvе grown, mаnу оf thе continent’s wildlife populations hаvе shrunk. In just оvеr 20 years, Africa’s lion population hаѕ declined bу half, аnd today оnlу 20,000 lions аrе left оn thе continent. Africa’s elephants, whісh numbered 1.3 million іn thе 1970s, hаvе аlѕо declined bу mоrе thаn half. Giraffe numbers аrе аlѕо falling, dropping frоm 140,000 giraffe іn 1999 tо fewer thаn 80,000 individuals today.

Sоmе оf thе declines саn bе attributed tо poaching, аѕ іn thе case оf Africa’s elephants аnd rhinos. Increasingly, thоugh, habitat loss, conflict wіth humans аnd оthеr threats аrе pushing species closer tо extinction аnd dramatically altering thе critical ecosystems оn whісh wе rely ѕо heavily.

Thе conventional wisdom іѕ thаt іt іѕ nоt іn thе interests оf Africa’s leading private sector players tо bе involved іn thе conservation оf wildlife аnd wild lands bесаuѕе thе needs оf humans аrе tоо mаnу.

Thіѕ іѕ a false аnd frankly dangerous dichotomy thаt prevents uѕ frоm recognizing hоw important оur wildlife аnd wild lands аrе tо human survival аnd prosperity. If wе саnnоt fіnd a balance bеtwееn nature аnd economic development, humans wіll suffer thе mоѕt. Wildlife numbers аrе thе key, measureable indicators оf оur ability tо fіnd thіѕ balance.

Aѕ acknowledged іn thе United Nations’ newly adopted 2030 Agenda fоr Sustainable Development, social аnd economic development depends оn thе sustainable management оf оur natural resources. Bу wау оf industries ѕuсh аѕ tourism, wildlife contributes tо оur economies іn nо small раrt.

And bу wау оf thе role thеу play аѕ “landscape architects,” tree seed dispersers аnd apex predators, elephants, lions аnd оthеr wildlife maintain thе health аnd resiliency оf оur ecosystems.

Africa hаѕ extraordinary natural capital оf whісh fеw оthеr continents саn boast, уеt thіѕ capital іѕ vulnerable.

Thе continent іѕ undergoing a rapid, large-scale аnd, іn ѕоmе cases, irrevocable transformation. Frоm infrastructure development tо expanded trade, muсh оf thе change wе аrе seeing promises tо bring greater prosperity tо thе continent.

Hоwеvеr, whеn poorly designed аnd managed, rapid development саn соmе аt thе expense оf bоth people аnd wildlife, bypassing оur mоѕt vulnerable communities, degrading оur wild lands аnd pushing mаnу species tо thе brink оf extinction.

Pеrhарѕ a mоrе realistic tactic іѕ fоr uѕ tо tаkе a careful look аt hоw growth іѕ bеіng mapped аnd planned, аnd, whеrе necessary, rethink аnd redesign infrastructure plans ѕо thаt negative impacts оn thе environment аrе mitigated аnd benefits tо local communities enhanced.

It іѕ imperative thаt governments begin tо develop economic аnd trade development blueprints thаt explicitly incorporate conservation аnd thе environment іntо national planning processes.

At thе continental level, thе African Union 2063 development plan whісh hаѕ a strong conservation vision fоr protecting Africa’s wildlife аnd natural resources alongside іtѕ development vision needs nоw tо secure complete-buy іn аnd implementation support frоm thе continent’s private sector аnd corporate leaders.

Aѕ ѕоmеоnе whо wholeheartedly champions thе economic growth оf Eаѕt Africa, I dо nоt believe thаt realizing оur common goals оf enhanced trade, healthy economies аnd greater prosperity аnd living standards fоr аll оf Africa’s people muѕt соmе аt thе expense оf оur unique natural heritage. Mоrе governments аnd members оf thе private sector аrе embracing thіѕ thinking.

Thіѕ wаѕ vеrу evident іn December оf lаѕt year аt thе Trade аnd Development Symposium, whісh іѕ took place alongside thе 10th World Trade Organization Ministerial Conference hеrе іn Nairobi.

Durіng thе symposium thеrе wеrе sessions оn addressing thе illegal trade іn natural resources аnd Africa’s natural capital alongside sessions оn global value chains аnd profit maximization іn Africa.

Thеѕе аrе topics thаt TradeMark Eаѕt Africa wаѕ adamant ѕhоuld bе оn thе agenda аѕ wе recognise thаt development аnd conservation аrе nоt separate, but equal parts, whісh аrе intertwined аnd co-dependent.

Conservation іѕ nоt just аbоut saving animals. It іѕ аbоut thе interface bеtwееn wildlife аnd humans.

Thе approach оf balanced investment, whеrеbу еvеrу dollar spent оn conservation inside a park оr reserve, a dollar іѕ spent outside protected areas оn improving human lives, іѕ key tо ensuring thе people whо live near wildlife tаkе thе view thаt іt іѕ аn important economic asset.

Aѕ wіth аnу asset, thеrе ѕhоuld bе systems аnd safeguards іn place tо ensure іtѕ long-term protection.

Lisa Karanja іѕ thе Senior Director, Business Competitiveness аt TradeMark Eаѕt Africa, a special purpose vehicle supporting thе process оf Eаѕt African integration, wіth offices іn Kenya, Uganda, Tanzania, Burundi аnd Rwanda.

 

Share this:

  • Tweet

Filed Under: Opinion Tagged With: Africa, balance, conservation, economic growth, southernafrican.news

Quest for African unity: Mugabe’s unfinished project

March 3, 2016 by Timo Shihepo Leave a Comment

Written by Kecia Rust

Innovation in housing finance –in terms of products, players, and approaches, not to mention target markets – is a key feature across the continent, creating new opportunities for investment and delivery.

As both local and international investors chase growth opportunities in a sluggish global economy, they are employing diversification strategies to manage the risks of their traditional targets – and in this, residential property is increasingly becoming an option. And while established players are getting better at what they do, new players are adding to the mix and competing for opportunities.

Investors are faced with a paradox, however. By their very nature, they are drawn to the high income markets. It is in these markets that they can price adequately for risk and realize the returns they seek. However, the real story – the scale opportunity just waiting to be cracked – is in the lower income market segments. The arguments for investment in residential – high urbanization rates, a growing middle class, a shortage of supply – these are all arguments for moving down market into the uncharted waters of affordable housing. Can investors and developers do it? In 2015, this is a very real focus.

Of course, the challenges are not insignificant, and cannot be easily wished away. But increasingly, investors and developers are noting that the potential benefits outweigh the risks. And, as governments come to appreciate the potential that this interest offers, their efforts to streamline development processes and enable their local housing markets to grow are creating new opportunities that are beginning to change the face of African cities.

A key challenge facing investors has been the inability to find investment targets in the residential real estate space that are sufficiently substantial to warrant their attention. International and local institutional investors generally seek large investment targets where they can place their money and realize a steady return that isn’t drained by the administrative and organizational weight of multiple projects. With the exception of South Africa, African housing markets lack the capacity to receive big money. Developers haven’t the capacity to build housing at scale and municipalities haven’t the capacity to receive large scale housing developments. Some investors are noting a change, however: investment in large scale infrastructure – roads, energy, even telecommunications – clears the way and reduces some of the transaction costs associated with housing developments. As the African head of Real Estate Finance for Standard Bank, Gerhard Zeelie, says “economic growth and ongoing investments in infrastructure are opening up previously inaccessible markets.”

Given this, investors have been looking for innovative ways to make the connection between their capital and potential investment opportunities. The introduction of Real Estate Investment Trusts (REITs) is perhaps the most significant of these – these create a vehicle that investors understand and can trust, aggregating diverse sources of funding from international and institutional investors through to households, and targeting them into a portfolio that extends beyond the limitations of individual projects.

REITs are new in Africa – having developed through the promulgation of legislation and issuing of regulations only in the past three years, in South Africa, Nigeria, Tanzania, Kenya, Ghana, Morocco, and Zimbabwe. Initially used for the retail and commercial real estate sectors, residential REITs are now also emerging. The first residential-only REIT in South Africa, Indluplace, listed on the Johannesburg Stock Exchange in June 2015. Promoted by Arrowhead Properties, which has been bringing residential properties into its REIT portfolios since 2013, Indluplace focuses on affordable rental.

In some jurisdictions, the REIT legislation allows for a housing development focus. This was a Kenyan innovation, which allows for the Development REIT (D-REIT). Investors take some of the project risk, so the regulations limit D-REITs to professional investors. A D-REIT can be converted into an Income REIT (I-REIT) which realizes returns through rental cash flows, when the bulk of the assets have completed the construction phase and rentals begin to flow. In Tanzania, the Capital Markets and Securities Authority (CMSA) approved Watumishi Housing Company REIT in early 2015. WHC-REIT aims to mobilise funding for the development of low-middle income housing, both for sale and for rent, and the development of commercial properties.

Another innovation whose practice has been evolving as its been tried in different countries, is the mortgage liquidity facility. Originally introduced in Africa with the establishment of the Egyptian Mortgage Refinancing Company in 2007, this was soon followed by the establishment of the Tanzania Mortgage Refinance Company in 2010, the Caisse Regional de Refinancement Hypothecaire-UEMOA in 2012, and the Nigerian Mortgage Refinance Company in 2014. While there are variations from one to the next, the model essentially allows for the liquidity facility to purchase mortgages from mortgage lenders, giving them the liquidity to fund further mortgages. In order to engage with multiple lenders, the facility requires standardization of mortgages, which over time makes them more accessible to investors.

Of course, mortgages are only feasible when they’re affordable. Mortgage rates above fifteen percent, and offered at tenors below ten years, are unhelpful. Beyond the factors that liquidity facilities address, macro-economic factors – the pricing of Treasury Bill rates, inflation, the availability of long term capital, the strength of capital markets, and so on – are behind a lender’s ability to make the mortgage work. In Malawi, a borrower might as well buy their house with their credit card. It is unsurprising therefore, that mortgages comprise only 0.5 percent of GDP. Interestingly, a number of countries are offering mortgages at rates below 15 percent and for tenors over 15 years, and some now at even less than 10 percent and over 20 years.

Download graph

http://www.housingfinanceafrica.org/blog/innovation-in-housing-finance/

Since the early “Africa rising” narrative, analysts have been citing the potential to be found in a young, growing middle class becoming economic participants in countries where the rate of urbanisation outpaces the rate of population growth. This, together with the commodities boom, spurred investment in infrastructure, which then facilitated investment in real estate – largely commercial and retail. In 2014, foreign direct investment into real estate was second behind coal, oil and natural gas, comprising 14 percent market share and US$12 billion. South African retailers pushed north into Zambia, Botswana, Mozambique, Tanzania, Kenya, Nigeria, Ghana, seeking new markets. New shopping malls were opened, and the “African real estate market” became a focus of more detailed analysis and investor interest. With the commodities downturn, the fall in the oil price, and the depreciation of many local currencies against the strengthening dollar, however, investors are being forced to diversify their strategies. Their local experience has shown them the housing backlogs that beset virtually all African cities, and while they now have a better understanding of the target market, residential becomes a new opportunity.

The identification of niche markets and an appreciation of the affordability challenge: And yet, the enthusiasm with residential will be misplaced if it is only focused on the top end. The bulk of the backlog is not in the high end property market, but rather in what is being called the affordable market – home to new entrants to the middle class. Affordability is higher in urban areas, of course, where residents are more likely to have an income stream that can support a long term mortgage obligation – but even so, less than ten percent of households across the continent are likely to afford a mortgage for even the cheapest, newly built house, built by a private developer.

Download graph

http://www.housingfinanceafrica.org/blog/innovation-in-housing-finance/

Given these affordability challenges, and the very real need and obvious demand for housing, investors and developers are targeting specific niche markets that pull together resources in innovative ways. An important niche is the rental market. This was the focus of two recent symposia hosted by development financier Shelter Afrique this year, one of which was in Ghana. Across these two events, proponents highlighted the opportunity for regular cash flow and increasing rentals as a hedge against the long term expectation for property appreciation. The rental sector offers strong synergies with pension fund liabilities, and provides opportunities for diversification. Demand is obvious: Africa’s cities are welcoming streams of new migrants, and the middle class is young and both upwardly and geographically mobile in their pursuit of employment. This, plus the simple absence of housing for ownership, makes rental an obvious target. And critically, a growing track record is showing impressive results.

Within the rental sector, student housing has been a critically overlooked housing niche. A key challenge in making this market segment work, has been the need for property managers that are specialist in this market segment. As the demand for diversification shifts practitioners in the direction of residential, however, the student niche offers a focus that is attracting some investors. In many countries, housing investors are targeting employers, whether public or private, as critical role players that can facilitate their workers’ access to the resources they need to pay for their housing. In South Africa, Pretoria Portland Cement has embarked on a “Home Owners Support Programme”, assisting low income employees to improve their housing circumstances. Certainly, a key determinant of market demand is income – both in terms of quantum and source. The graphs that follow provide an indication of the nuance of this demand. This sort of market segmentation can enable a more careful targeting, and changes the affordability challenge. Download graph

http://www.housingfinanceafrica.org/blog/innovation-in-housing-finance/

A further perspective. The housing affordability story is significantly influenced by the price of building materials, and this is an issue that the Centre for Affordable Housing Finance in Africa (CAHF) is exploring with its partners in the coming year. Key among these is the price of cement. If it takes 35-40 bags of cement for the construction of a 40m2 brick and mortar house, the per bag cost is a critical factor. In 2015, the most expensive country with respect to cement, at US$30,30 for a 50kg bag, was the DRC, followed closely by South Sudan, where the same bag cost US$29,00. Compare this with Nigeria (US$11,00), Kenya (US$7,60), and Senegal (US$5,06), and the cheapest source of cement, Tunisia (US$3,53), and the capacity of a household to build their home with cement becomes somewhat more clear.

Policy & regulatory evolution to match investor interest: Even in 2015, the key challenge that investors and developers highlight from their experiences across the continent, and including South Africa, is regulatory and policy uncertainty and instability. This factor is critically important because of the long term nature of housing investments. Unpredictable regulatory changes, complex legal frameworks and volatile local currencies all limit investment timeframes and challenge exit strategies, encouraging investors to look elsewhere while governments get their house in order, so to speak. Government policy can have a significant impact on investor interest and market participation, simply by being reliable.

Access to land is a key factor, and regulatory challenges in this regard also undermine the capacity to deliver at scale. At the I H S affordable housing summit, a Nigerian developer, Resilient Africa, reported that of the ZAR28 billion (US$ 2.139 billion) worth of ‘large lot size property’ sold across the continent in 2014, ZAR26 billion (US$1.986 billion) was in South Africa. The ability to acquire large tracts of land for property development is constrained in very many jurisdictions by the capacity of local governments to package and present that land as required by legislation – and to administer and manage it over time, thereafter.

Ironically, Kenyan REIT legislation requires that the property development option (the D-REIT) is restricted to 15 percent of the REIT value to help manage the risks – many of which are regulatory in nature. If REITs are to have a significant impact on the financing of housing development, governments must focus on the risks inherent in the development process, which undermine investment, or at best, make it more expensive. And they are. A key indicator offered by the World Bank as part of its “doing business indicators” is the number of days and cost involved to register property (a commercial property, in this instance, but indicative nonetheless). Comparing data from 2012 and 2015, it is clear that there have been improvements: Rwanda, Burundi, Morocco, Lesotho, Cote d’Ivoire, Guinea-Bissau, Sierra Leone, and Senegal have all shown noticeable improvements in the time it takes to register a property, with Guinea-Bissau being the star performer. The cost of registering property in Zambia and Namibia increased in the period.

Growing experience and investor sophistication: It’s worth noting that investors who have lasted this long aren’t frightened – and the potential returns are enough to keep them focused on the long haul. In June 2014, private equity investor I H S announced the first close of their second fund, following the strong, risk-adjusted returns achieved in its first fund, worth ZAR1,8 billion, which provided financing for over 28 000 units across South Africa. Announcing their second fund, I H S said that the strong returns achieved with the first fund provided clear proof that the affordable housing market, targeted at middle and low income earners, was a sound investment, and a strong base for ongoing inflows into the sector.

A separate example is that of Housing Finance Kenya, a leading mortgage provider in Kenya. Over the course of its operations, from its founding in 1965 by the Commonwealth Development Corporation (CDC) and the Government of Kenya, to its listing on the Nairobi stock exchange in 1992, to issuing Rights Issues of Shares and a Corporate Bond, to launching the HF Group, an integrated property, banking and investment solutions company, in 2015, HF Kenya has increasingly engaged with the capital market. Its first bond issue in 2010 was hugely oversubscribed, demonstrating investor confidence in the focus and operations of this company which targeted the

residential real estate market in Kenya.

These experiences are not lost on investors, and the success of companies like the HF Group bode well for other players also operating in the market and seeking market participation in their activities. The value of local currencies has also fallen – in Ghana, by as much as 50 percent. And political instability in many regions has made any sort of investment much more difficult. These factors haven’t changed the reality of an affordable housing shortage, however, and may well be stimulating investors and developers to think differently about what and to whom they deliver. The space for conversation is certainly opening up. – First published in the Housing Finance in Africa Yearbook 2015. http://www.housingfinanceafrica.org

Share this:

  • Tweet

Filed Under: Business Tagged With: Africa, delivery, finance, global economy, investment, Markets, products

Primary Sidebar

Loading...

Top Posts

  • Antibiotics to Treat of HIV
  • Playstation 5 vs Xbox Series X Specifications
  • Botswana Has Claimed the Title of Best Country for Safaris for 2019

Archives

Categories

Follow me on Twitter

My Tweets

Secondary Sidebar

RSS BestCoolMobile.com

  • Black Desert Mobile
  • T Mobile Tuesday App Not Working
  • T Mobile Tuesdays App Not Working
  • Stockman Bank Mobile App
  • T Mobile Tuesday App Crash

RSS African Business Review

  • Gauteng’s TB Success Rate Best in South Africa
  • High-end Extras for Extravagant Vehicles
  • Understanding Viral Marketing Content
  • ForgetMeNot Africa Launches Zimbabwean App Competition
  • Just How Costly Are Your Hotel Expenses?

Southernafrican.news · Log in