Inspiring stories from the
African continent
Fixed -line
assets
Kenya
Botswana
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Africa
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INDIAN
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$40 million fund
for new
vehicles
06 22
Ghana
Nigeria
is calling
Strength in
numbers
Nigeria
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30˚E
40˚E
50˚E
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Uganda
Fixed -line
assets
08
Kenya
04
DRC
32
34
02
20
24
Zambia
Switched on
solutions
Tanzania
Thinking out of the box
Malawi
28
12
Seeds of
security
Power deals
Zimbabwe
Builder of hope
Botswana
Lessons for Africa
Namibia
Small change, big change
South Africa
16
Natural profits
Mozambique
A class act
Contents
10
26
Lesotho’s
promise
Creating local
solutions
Lesotho
Swaziland
14
Mauritius
Africa’s
new hub
From
Botswana
Lessons
for Africa
Africa has the world’s lowest savings rate and financial
literacy levels – a recent survey completed in seven
African countries (Botswana, Kenya, Namibia, South
Africa, Tanzania, Uganda and Zambia)1 showed an
average of 49% of adults in these countries do not
use financial products at all, not even informal ones.
“Africa is seeing a growth in new financial products,
like mobile banking” commented the UK’s
International Development Secretary, Douglas
Alexander, “but it’s no good having competition if
consumers don’t understand the services available to
them. Financial education can help poor consumers
and businesses recognise the benefits of bank
accounts and in doing so promote a better business
climate in poor countries”.
With the help of Stanbic Bank, Botswana’s Ministry of
Education and the Botswana National Library Services
(BNLS) are taking steps to ensure that the population
of the country becomes financially literate at a
very young age by introducing a series of financial
literacy textbooks, based on Stanbic Bank material, to
secondary school students as part of their curriculum.
Botswana’s education system is often held up as an
example to other African countries (81,2% of people
over the age of 15 are literate), but like many other
countries with high literacy levels, the government
has noticed there is a vast gap between a literate and
a financially savvy population.2
As part of its effort to empower the nation, Stanbic Bank
has donated four financial literacy modules (in the form
of booklets) to the Botswana Ministry of Education, and
1 800 modules valued at P50 000 to BNLS.
02
The booklets, titled Money and Banking, Saving and Investing, Personal Finance and
Introduction to Business Finance have received the approval of the Ministry of Education
and the Bank of Botswana governor Linah Mohohlo.
Each booklet is informative, easy to read and no longer than 45 pages. In order to
make financial terms easier to digest, and keep the reader’s attention, the booklets are
illustrated with step-by-step guides and examples that make the information easy to
follow.
The first module, Personal Finance, deals with how to open a bank account, banking
procedures, electronic banking, managing banking fees, household budgets and an
introduction to taxes. Money and Banking tackles the importance of banking services
and products, like the advantages of having a cheque account, the difference between a
stop order and a debit order, banking responsibilities and the economic cycle and flow of
money.
The third module, Saving and Investing, is a guide to making money grow, insurance,
budgeting, investing and the costs involved with borrowing money, while the fourth
module, Introduction to Business Finance is all about the smart way to start a business and
what you need to know in order to do it successfully.
Dennis Kennedy, MD of Stanbic Bank Botswana, says the idea to introduce the modules
to the Botswana population started when he noticed people were taking out micro
financing [from furniture, cash loans lenders or clothing shops] and paying excessive
interest rates and charges, out of ignorance.
Dennis realised one of the ways to ensure Stanbic Bank had an informed customer base
and could play an important role in Botswana to build knowledge in order to build wealth,
one which would be able to help the people to manage their debts, was to introduce a
literacy programme that would be accessible to everyone, particularly the youth.
Dennis believes introducing financial literacy at a young age will help give Botswana
children a solid start in financial matters like budgeting and saving and, in the future, will
help them avoid financial pitfalls.
The financial literacy modules were initially used in neighbouring South Africa, where
Standard Bank entered into a partnership with that country’s Department of Education in
an effort to introduce economics and management science to the school curriculum.3
In order to be relevant to the local market in Botswana, the four modules had to be
adapted and translated. The information was localised by several students from the
University of Botswana, who through the Kellogg’s Foundation, worked on bank-related
projects during school holidays and were familiar with banking terms, local market
conditions, and Setswana, the country’s official language. One of the tasks involved in
localising the booklets was adding a glossary of terms in English and Setswana.
The new booklets were first rolled out to libraries through the BNLS, which has 23
libraries, 67 reading villages and supplies reading material to 300 primary schools. Once
editing is completed on the secondary school modules, they will also be rolled out to
learners across the country.
03
Dennis realised one of the
ways to ensure Stanbic Bank
had an informed customer
base and could play an
important role in Botswana
to build knowledge in order
to build wealth, one which
would be able to help the
people to manage their debts,
was to introduce a literacy
programme that would be
accessible to everyone,
particularly the youth.
From
DRC
Thinking
out of
the box
By any measure, the Democratic Republic of the
Congo (DRC) is a country of extremes, it is the thirdlargest country in Africa, covering an area the size
of western Europe; it has the second-largest rain
forest on earth (the country is home to almost half
of all of Africa’s forests1); and if correctly harnessed,
the Congo river – second in volume only to the
Amazon – could produce enough electricity to power
industrialisation across the whole of Africa.
The DRC also has significant mineral resources, for
example there are large deposits of cobalt, gold,
copper as well as diamonds and fuel.
If the country’s potential seems overwhelming its
numbers are, inversely, more so. Decades of political
upheaval, mismanagement and conflict have seen this
country’s Gross Domestic Product (GDP) per capita
drop to one of the lowest in the world. The country
is ranked 168th out of 177 nations on the United
Nation’s Human Development Index (HDI)2; and
Jane’s Country Risk ranks the DRC as the 9th most
unstable entity in the world3 – a risk profile that has
seen little change in the past few years, despite the
country’s largely successful democratic elections (the
first in 40 years) held in 2006.
The DRC’s situation remains fragile in the eyes of
the international community, and the largest United
Nations (UN) peacekeeping force in the world is
stationed in the country (known as MONUC, standing
at about 18 000 uniformed personnel).
04
As a Department For International Development (DFID) report on the DRC comments, the
possibilities are “breathtaking. But the development challenges are huge.”4 With support
from international institutions, economic, financial and structural reforms are helping:
hyperinflation levels, peaking at 511% in 2000, were reduced to rates of about 18%5.
Sectoral reforms have seen increases in private investment to the country, and it is
hoped real GDP growth will rise substantially through improvements in mining and
manufacturing6. In addition to political stability and internal security, the consolidation of
macroeconomic stability and promotion of economic growth have been identified as “pillars”
of the country’s Poverty Reduction Strategy, approved by the government in 2006.
In May 2008, Stanbic Bank opened its first branch outside the DRC capital of Kinshasa,
about 1 500km away in the mining city of Lubumbashi, the hub of the country’s copper
mining belt. The 500m2 full-service bank was constructed in just two months, after
clearing customs; the entire structure (except for the concrete foundation) was prefabricated in South Africa, and delivered to the DRC in a set of five shipping containers.
It is the first time Standard Bank Group’s “Bank in a Box” concept has been implemented
outside of South Africa. Traditionally, these banks are used to test new markets,
particularly in areas with limited infrastructure, but Stanbic DRC’s Deputy MD and
country Head of CIB, Jean Rey, is quick to point out the bank’s presence in Lubumbashi is
“not temporary. It was simply the best solution for the location.”
“The ‘Bank in a Box’ is quicker to build, but it’s not cheaper,” Jean explains. “In
Lubumbashi it was all about how quickly we could start serving our customers.”
The successful deployment of the prefabricated building and lessons learned from
teething problems will see a similarly built branch constructed in nearby Kolwezi, about
300km from Lubumbashi, before the end of the year, and this could provide a solution to
Stanbic IBTC Bank’s rapid branch expansion in Nigeria.
The unit, which inside looks exactly like any branch of Standard Bank or Stanbic anywhere
in the continent, is fully self-contained, from a satellite network link (to the country head
office) to a generator that provides electricity.
With the opening of the Lubumbashi branch, Stanbic is now ideally situated to service the
region’s growing economy. Local operations include mid-tier South African-based mining
company Metorex, who own 80% of the copper and cobalt mining facility at nearby
Ruashi; Anvil Mining, the leading copper producer in the DRC, with three operations in
Katanga; and the Tenke Fungurume Mining Project – working one of the world’s largest
known copper-cobalt resources.
Lubumbashi itself is home to a growing number of processing plants, an estimated 50%
of which are owned by Chinese investors7. This project is not the only Chinese investment
in the region: in 2007 the DRC government announced an agreement with the Chinese
authorities that, The Economist reported, will see [Chinese] state-owned firms “build or
refurbish various railways, roads and mines around the country at a cost of [US]$12 billion,
in exchange for the right to mine copper ore of an equivalent value”.8 The new rail links
will start in Lubumbashi and end in Matadi, the country’s main port.
05
The 500m2 full-service
bank was constructed in
just two months, after
clearing customs; the
entire structure
(except for the concrete
foundation) was
pre-fabricated in
South Africa.
From
Ghana
$40
million fund
for new
vehicles
A US$40 million revolving fund for Ghana’s largest
transport union, the Ghana Private Roads Transport
Union (GPRTU), will see up to 1 000 new public
transport vehicles on the country’s roads, as well as
significant investment in refurbishing vehicle terminals
around the country, making public transport safer and
easier for Ghana’s millions of daily commuters.
Modern Ghana has one of the best performing
economies in Africa – poverty declined from 52%
in 1998 to 28% in 2006, putting the country on
course to exceed its 2015 Millennium Development
Goals (MDG) of halving her poverty1. Gross Domestic
Product (GDP) growth has remained steady at about
6% since 2005 and Ghana’s external debt, which
stood at US$6 billion in 2001, is almost written
off following the successful Heavily Indebted Poor
Countries (HIPC) debt relief effort in 20042.
But Ghana’s economy is hampered by inadequate
transportation networks. The transport sector
contributes 5% to the country’s annual GDP.3
In 2006 the Ghanaian Transport Ministry reported
potential investors were frustrated by the gaps
in Ghana’s transport infrastructure.4 The majority
of Ghana’s rural population live more than two
kilometres from the nearest road facility, because
55% of the landscape is inaccessible to modern means
of transport. This has led to an increase of up to 50%
in the final price of foodstuffs transported from farms
to urban areas5.
06
In 2002 Ghana had about 39 940km of roads, of which only 9 346km was paved.6
Currently, Ghana’s major roads are being improved with funding from the World Bank, which
has committed more than US$200 million to Ghana’s Road Sector Development Program.
To date 125 feeder road projects have been completed and 25 are ongoing, under the
auspices of the Ghanaian Department of Feeder Roads.7
It is against this backdrop that the GPRTU operates. Made up of drivers, owners and
vendors, the GPRTU is Ghana’s largest transport union with more than 800 000 members
and a network of 5 000 terminals spread throughout Ghana. The GPRTU has a 95%
controlling stake of the road public transport sector. Economists estimate that between
12 million and 15 million Ghanaians use public transport every month.
The most frequent users of public transport are traders, who criss-cross Ghana and
neighbouring countries selling agricultural produce. It is common knowledge that these
traders, many of whom are women, carry significant amounts of cash (from the sale of
their goods), especially when they are travelling long distances. This has resulted in a
sharp increase in the number of violent armed robberies on Ghana’s highways.
Besides the scourge of crime, there has also been an increase in the number of fatal road
accidents that, the Transport Ministry believes, is a direct result of the number of
non-roadworthy vehicles on the roads. It is not an uncommon sight to see abandoned,
broken-down vehicles on the side of the road in Accra and other major cities.
In order to boost the road transport industry and make travelling by public transport a
safer and more comfortable, convenient experience for commuters, Stanbic Bank Ghana
partnered with the GPRTU to establish a US$40 million loan facility in 2007.
Ghana’s public transport vehicles consist of four-door sedan metred taxis, buses and
“Tro tro’s”, known as minibus taxis in other parts of the continent.
Under the loan agreement, GPRTU members will acquire new vehicles at a discounted
rate from six leading automobile companies based in Ghana. The agreement also
includes service packages and discounts on parts in order to ensure affordable vehicle
maintenance and avoid the current trend of dilapidated public transport vehicles. To
kickstart the project, 20 vehicles have already been presented to the union, and 86
buses have been financed so far.
The long-term vision of the project is an overhaul of all the vehicles owned by GPRTU,
and to move away from small capacity vehicles to vehicles with a capacity for 40
passengers or more. Stanbic is also in the process of negotiating bulk purchase fuel
discounts for GPRTU members, from major local oil companies.
Equally important will be GPRTU and Stanbic’s work in refurbishing vehicle terminals
across the country. Stanbic will set up banking facilities at key GPRTU terminals in high
density areas and commercial centres, enabling drivers and traders to deposit monies
at their point of departure, and withdraw them at their destination. This will reduce the
numbers of in-transit armed robberies for passengers. Stanbic will also help the GPRTU
to establish or upgrade stopovers and rest stops, filling stations and workshops on the
major highways across the country.
07
Stanbic will set up banking
facilities at key GPRTU
terminals in high density
areas and commercial
centres, enabling drivers
and traders to deposit
monies at their point of
departure, and withdraw
them at their destination.
From
Kenya
Fixed-line
assets
As Africa’s booming telecommunications industry
continues to attract foreign investment, commercial
banks have targeted the sector as an opportunity
to grow their lending businesses, at the same time,
facilitating significant improvements in telecoms
infrastructure and expansion of services.
In 2007, Kenya’s state-owned telecoms agency,
Telkom, received a much-needed “shot in the arm”,
when a syndicate of banks arranged bridging finance
of KSh5,85 billion (about US$83 million) to prepare
the parastatal for privatisation. Stanbic Bank Kenya
was one of four mandated lead arrangers, and the
facility agent of the deal.
In the last two years, Kenya’s government has made
significant improvement to the telecoms sector –
developing a national Information and Communication
Technology (ICT) policy, liberalising the ICT sector and
lowering local and global telephony costs by over 80%1.
The privatisation of Telkom Kenya was key to the
country’s ICT goals – as the East Africa country’s
sole fixed-line service operator, Telkom Kenya is
the country’s Internet gateway and sole broadband
Internet resource.
However, falling revenues and increasing debts meant
there were insufficient service and infrastructure
resources for Telkom to even consolidate, never mind
grow, its position.
Like many fixed-line operators on the continent,
Telkom Kenya had been negatively affected by the
rapid growth of mobile phone networks. In 1999,
there were only about 15 000 mobile networks
subscribers in Kenya and today, Kenya’s mobile
subscriptions stand at about ten million. A United
08
Nations Conference on Trade and Development (UNCTAD) report indicated that, by
2006, mobile teledensity had increase to 18,5 subscribers per 100 people.2
About 94% of Telkom’s current subscribers (it has an estimated customer base of
300 000 people) are based in urban areas; however, 64,8% of Kenya’s population live
in rural areas, and only 40% of these live above the poverty line. Both of Kenya’s major
mobile networks, Safaricom and Celtel, cover wider geographical areas than Telkom
Kenya, and offer cheaper connection and call charges.
In 2004 the Kenyan government opened up the telecoms market, introducing three new
types of licences: network facilities providers, applications service providers and content
service providers, which directly threatened Telkom Kenya’s monopoly.
Since 2003, Telkom Kenya’s turnover had been declining at an annual rate of 10,5%. In 2006
the company posted a turnover of only KSh16,3 billion, down from KSh20,9 billion in 2003.3
Falling revenues meant Telkom Kenya could not service its financial obligations, the
largest of which were pension and tax liabilities.4
These factors coupled with the growth of the mobile phone market prompted the
government to announce privatisation plans for the parastatal.
Before it could sell off its shares, however, Telkom Kenya first had to get its affairs
in order. As part of the pre-privatisation preparatory work, Telkom Kenya needed to
reduce its workforce, from more than 17 000 workers in February 20075 to about 3 150
employees by early 2008, the largest corporate retrenchment in Kenya in an eight-month
period6. To finance this restructuring, Telkom Kenya had to resort to external borrowing.
Because of the company’s cash flow challenges and balance sheet problems, Telkom
Kenya was not “bankable” on a conventional basis, and so an imaginative loan structure
was brokered.
Telkom Kenya had one advantage – a 60% stake in Safaricom, Kenya’s leading mobile
operator with a subscription base of five million. Telkom Kenya’s stake in the company
was valued at US$1,2 billion.
As the 100% owner of Telkom Kenya, the Kenyan government wrote a call option of 9%
of the shares of Safaricom Kenya Limited to the syndicate lenders.
The financing gave time to both the government and Telkom Kenya to clear Telkom’s
balance sheet, which was achieved through the sale of Telkom Kenya’s stake in Safaricom
to the government. This sale cleared, among others, the KSh5,85 billion loan from the
banks and KSh36,3 billion in tax arrears to the Kenya Revenue Authority.7
In December 2007 France Telecom (in consortium with Dubai-based Alcazar Capital
Limited, who subscribed to a 15% stake) successfully purchased a 51% stake in Telkom
Kenya for KSh26,1 billion (about US$390 million) – KSh6 billion above what the
International Finance Corporation had put forward as the corporation’s market value.
In April 2008, France Telecom announced that it would begin offering GSM services to
Kenyans through Telkom Kenya’s existing CDMA technology.
09
As the 100% owner
of Telkom Kenya, the
Kenyan government
wrote a call option of 9%
of the shares of Safaricom
Kenya Limited to the
syndicate lenders.
From
Lesotho
Lesotho’s
promise
The biggest diamond of the century – and the 15th
largest gem-quality rough diamond ever found – was
discovered in one of the world’s smallest countries,
Lesotho.
The tiny mountain kingdom is perhaps best known for
its textiles industry (Lesotho is the largest sub-Saharan
exporter of garments to the US under the Africa
Growth and Opportunity Act or AGOA1) and exporting
water (for hydro-electric power) to South Africa.
However its mining and minerals industry has become
an increasingly important contributor to the country’s
Gross Domestic Product (GDP), particularly with the
re-opening of the Letseng diamond mine in 2004.
Letseng came to international attention in the midSixties, when it recovered the 601-carat Lesotho
Brown (the 16th largest rough diamond in the
world). In August 2006, it topped that feat with the
discovery of the 603-carat Lesotho Promise. Thirteen
months later the mine produced the world’s 18th
largest diamond, the Letseng Legacy, which tipped
the scales at 494 carats.
Letseng is the world’s highest diamond mine, situated
in the kingdom’s Maluti Mountains 3 100m above sea
level.
Approximately 14% of the stones produced at
Letseng weigh more than 10,8 carats, an industry
record. The mine also has the highest dollar-to-carat
ratio of any mine in the world. The international
standard price for diamonds ranges between US$74
and US$90 a carat. The average price per carat for a
Letseng diamond is US$1 997.2
Besides being renowned for their size, Letseng
diamonds are also celebrated for their quality. About
90% of diamonds recovered from Letseng are gem
10
quality, with a significant portion graded as “D” colour, which means they are absolutely
colourless (and therefore highly valuable).
In January 2007, Letseng produced a 215-carat “D” colour diamond, which was sold on
tender for US$8,3 million. The Lesotho Promise and Letseng Legacy fetched
US$12,4 million and US$10 million respectively. Due to the high quality of Letseng’s
stones, prestigious international jewellery houses like Laurence Graff, Harry Winston and
Ehud Laniado are regular buyers.3
Diamonds were first discovered at Letseng in 1957. Between 1960 and 1970, Letseng’s
diamond pipes were divided into small claims that were mined by artisan diggers.4
In 1977 De Beers Consolidated Mines took over, producing 280 000 carats between
1977 and 1982, when operations were closed down.5 The closure of Letseng under De
Beers was driven by a dispute with the Lesotho government over prices and taxing, and
a crippling diamond mine recession.6 Letseng was by no means uneconomical but, by De
Beers’ standards, it was a small mine.
Letseng’s remaining resources after the closure included 12 million tons of kimberlite at
the satellite pit, 50 million tons of ore in the old main pipe and five million tons of lowgrade stockpiled ore.7
Letseng lay fallow for almost two decades until it was bought by a South African
consortium made up of JCI and black economic empowerment (BEE) company Matodzi
Resources. The Lesotho government retained a 24% stake and earned 7% royalties on
the mine’s gross revenue, in addition to a 35% tax rate.8
In September 2006, JCI and Matodzi sold 76% of Letseng to Gem Diamonds for
US$143 million, and the Lesotho government increased their stake to 30%.
In February 2007, when Gem Diamonds was listed on the London Stock Exchange, the
valuation of Letseng had risen by 43% to US$205 million.9
Letseng’s current processing capacity is 2,6 million tons per annum. This figure is
expected to double by mid-2008 after commissioning of the second treatment
plant is completed. This measure will optimise the mine’s life to 33 years. It will also
elevate Letseng’s status to the seventh largest diamond mine in the world in terms of
throughput, and the 11th biggest earner.
Since 1999, Letseng has worked closely with Standard Lesotho Bank’s Dave Rose; the
bank “provides Letseng with an infrastructure, and facilitates access to the sophisticated
foreign products we need to trade profitably,” explains Financial Manager Jon Tully.
Letseng is an important contributor to the Lesotho economy. The mine employs 700
people, 90% of whom are local Basotho. The mine also creates up to 800 jobs in indirect
employment.10
Lesotho’s economy depends heavily on inflows of workers’ remittances and receipts
from the Southern African Customs Union (SACU). The other major source of income is
the royalties it receives from sale of water to South Africa, through the country’s major
hydropower facility.
11
Letseng is an important
contributor to the
Lesotho economy.
The mine employs 700
people, 90% of whom
are local Basotho.
The mine also creates up
to 800 jobs in indirect
employment.
From
Malawi
Seeds
of security
In Malawi, the “hungry season” arrives in January or
February – towards the end of the rainy season, when
old crops have been exhausted and the new crop isn’t
yet ready to eat.
In 2005 it came early. Above-average rainfalls the
previous December had led to hopes of a good
harvest. But, at a critical time, when the maize crop
was at the stage of cob formation and pollination,
the rains failed. In addition, the heavy rainfalls of the
earlier months had caused flooding in some areas,
destroying crops.
Maize production dropped to the lowest levels in a
decade. It was estimated over 34% of the population
(about 4,2 million people) would have insufficient
harvests or income to meet their minimum food
requirements. Crop assessments indicated an
expected food gap of 400 000 tons2.
With few exploitable mineral resources, Malawi’s
economy is heavily dependent on agriculture. The
sector represents about 80% of the country’s
exports3 and employs 85% of the country’s working
population, the majority of whom are subsistence
farmers4. This leaves most households vulnerable to
drought and floods – and, in shortfall years, to volatile
international prices.
About 800km south of Malawi, South Africa had
experienced a bumper harvest and was sitting on a
surplus of five million metric tons of maize. Under
normal market conditions, this would have been out
of reach for Malawi’s government. Market prices had
been driven up after Hurricane Katrina forced the
Japanese to secure maize from South Africa instead
12
of its usual US sources; the poor road network between South Africa and Malawi added a
further premium for transport.
Donor and food aid agencies were mobilised and international appeals were issued, but it
would take months before any maize reached Malawi through these schemes.
At the same time, the Standard Bank Group had hedged significant stores of maize on
behalf of a neighbouring country – the scheme featured a buy-back option, and the
country didn’t need to buy the maize back. This meant cheaper maize could be offered to
Malawi; in September 2005, the government of Malawi signed an options contract with
Standard Bank – “giving it the right, but not the obligation, to buy additional maize at
a [fixed] price”.5 The contract covered a maximum of 60 000 tons of maize at a cost of
approximately US$18 million, “enough to meet the food gap if donor and private sector
commercial imports did not reach anticipated levels”6.
The contract was structured as an “over the counter” call option, which meant the
cost included delivery to Malawi, reducing the impact of transport prices. The deal
represented “one of the first-ever instances of macro level hedging by an African
government”7, and provided the government with the means to “trigger additional
imports at short notice, put a price cap on the cost of maize from South Africa and
[provide] protection against the risk that prices would move higher.”8
In the following months, as prices increased and the food shortage grew more severe,
the government exercised the call option; the majority of the maize was allocated to
humanitarian operations. The International Development Association (IDA) concluded
that maize purchased through the option contract had a better delivery performance
than most other procurement procedures9. During the delivery period, spot prices of
maize rose by between US$50 and US$90 [per metric ton] above the ceiling price of
the contract.
One of the factors that contributed to the severity of the 2005/6 food crisis was the
lack of seeds and fertiliser for Malawi’s bottom-end and subsistence farmers. Previous
agricultural subsidies had been cut in response to international pressure (hoping to
stimulate competition and a viable private market). Over a three-year period, maize
production fell by over a million metric tons.
Towards the end of 2005 government re-established its subsidy programme, using a
coupon system entitling each farming household to two bags of fertiliser and enough
maize seed to plant half an acre. In 2006 Malawi enjoyed its biggest ever harvest, about
2,6 million metric tons of maize, a surplus of over half-a-million tons.
Standard Bank has now structured a fertiliser programme for the government. For various
reasons, some of the fertiliser ordered through the subsidy scheme arrives late, after
the growing season. To keep the fertiliser on the ground, the scheme effectively sees
Standard Bank “purchase” a portion of the fertiliser (this year the group is securing
50 000 metric tons), with a compulsory option for the government to buy back the same
stock at the same [set] price the next planting season.
Standard Bank is now looking at developing fuel schemes for Malawi.
13
One of the factors that had
contributed to the severity
of the 2005/6 food crisis
was the lack of seeds
and fertiliser for Malawi’s
bottom-end and subsistence
farmers.
From
Mauritius
Africa’s
new hub
The “paradise island” of Mauritius – perhaps , best
known for its sugar plantations and package holidays,
– is fast becoming the region’s hub for African-Asian
commerce.
With its strategic Indian Ocean location (the island
is a four-hour flight from Johannesburg, and six
hours from Mumbai), investors have been drawn to
Mauritius by the nation’s favourable tax treaties,
strong economy and stable political infrastructure.
As a result, a large number of global multi-nationals
are using Mauritius as a hub for many of their
financing needs for their operations spread around
the globe.
Mauritius has one of the fastest-growing economies
in Africa, with a real Gross Domestic Product (GDP)
growth rate of 5,6% (2007)1 and has attracted more
than 32 000 offshore entitites to date, many aimed
at commerce in India, South Africa and China.2 Early
in 2008, it was reported that Mauritius had become
the largest source of foreign investments in India3
(together with Singapore4).
A number of multi-national African companies,
including MTN, South African Breweries (SAB) and
Group Five, have also set up treasury offices on the
island.
Once reliant on agriculture, (sugar cane is grown on
about 90% of cultivated land and accounts for about
15% of the country’s export earnings.5) Mauritius’
economy diversified in the 1980s and 1990s, and the
services sector, dominated by tourism and financial
services, has emerged as the most important sector
for the economy6, accounting for more than 70% of
the GDP in 20077. Investment in the banking sector
alone has reached more than US$1 billion8.
14
The island’s strong textile manufacturing sector has come under pressure as liberalisation
of the market and the dismantling of earlier preferential (developing country) trade
agreements saw Mauritius competing with larger low-cost developing countries such as
India, China and Thailand. However, the island is well positioned to take advantage of the
African Growth and Opportunities Act (AGOA), which should increase exports particularly
to the United States.
Textiles and apparel imports from Mauritius [to the US] under AGOA in 2007 were
US$108 million9.
The government of Mauritius has also declared its intention to transform Mauritius
into a regional information hub, a “cyber island”,10 where, it is hoped, Information
and Communications Technology (ICT) will become the fifth “pillar” of the country’s
economy, alongside sugar, textiles, tourism and financial services.
Seacom, a Mauritius-based company, is constructing a submarine cable network that will
link east Africa, the only part of the world without submarine cables connectivity,11 with
South Africa, Europe and Asia.
Mauritius is also “engaged in the creation of a seafood hub”. 12 The country’s Exclusive
Economic Zone (EEZ) stretches for 200 nautical miles, covering an area of more than
1,8 million square kilometres, and presents numerous opportunities “for lagoon-based
intensive farming and high seas intensive farming using modern, high-tech floating cages
technology.
More importantly, Port Louis is now ready to act as a platform for fish landing, processing
and re-shipment.”13 An interim trade agreement between the European Union (EU) and
Mauritius was initialled in December 2007, which included provisions on fisheries and
other issues.
“As an African bank with global reach, we are ideally positioned to capture the crossborder flows that pass through this region,” states Standard Bank Mauritius MD Chris
Clarkson. In the past year or so, the bank has grown from just 12 to 104 employees.
Since launching commercial banking services, Standard Bank has facilitated a number of
key deals and transactions on the island.
In 2007, Standard Bank imported all of Mauritius’ fuel (the island has no fossil fuel
resources), via the State Trading Corporation (STC). In July 2007, the STC signed an
agreement worth US$2 billion with India-based Mangalore Refinery & Petrochemicals Ltd
(MRPL) to import one million tonnes of fuel per annum over a three year period. MRPL
has added that it is now looking to Mauritius as a base for exporting fuel into Africa14.
Standard Bank also financed national carrier Air Mauritius’ purchase of two new airbuses
– tourism is still the largest contributor to the island’s foreign exchange earnings, and
Mauritius aims to boost its tourism numbers by about 10% each year in order to reach a
target of two million visitors (from 907 000 in 2007) by 2015.
In the textile sector, Standard Bank has started a relationship with the second largest
textile manufacturer in Mauritius, the Star Knitwear Group, when the bank assisted the
group in constructing a new shopping centre in the capital, Port Louis.
15
“As an African bank
with global reach, we
are ideally positioned to
capture the cross-border
flows that pass through
this region,” states
Standard Bank Mauritius
MD Chris Clarkson.
From
Mozambique
A class
act
Along with Afghanistan, Chad, Ethiopia, Mali and
Niger, Mozambique has one of the lowest literacy
rates in the world (about 47,8%). It also has a
strikingly young population1, with nearly half the
country’s population of 20 million people under the
age of 152.
Education is a luxury, not many Mozambicans can
afford it – an estimated 70% of the population still
live below the poverty line.3
Between 1975 and 1992, Mozambique was gripped
by civil war and much of its basic infrastructure like
schools and colleges were crippled or destroyed.
While there have been enormous strides in
Mozambique’s political and economic development,
education is still struggling to catch up with the
population’s needs. One of the side effects of low
literacy and education levels is that Mozambique’s
population is one of the least banked in Africa.
Ten years ago only 1,7 million children attended
primary school and the network of lower primary
schools was only 6 114.4 By 2003 the number of
primary school children enrolled had risen to 2,8
million, while the network of primary schools had
increased to 8 077.5
Like many states around the continent Mozambique
has a shortage of qualified teaching staff. Teachers
face the multiple challenges of low wages, lack of
teaching material and peer support. This has led to
overcrowded classrooms and high student-to-teacher
ratios as high as 100 students to one teacher in some
parts of the country.
Mozambique’s high HIV/Aids rate is also taking its toll
on the limited teaching fraternity. The prevalence of
HIV amongst the economically active population (15
to 45 years old) in Mozambique is estimated at 16%6.
16
Children whose parents have been affected by HIV/Aids are more likely to drop out of
school if their parents die or fall ill.
For many children access to basic education is further hampered by poverty, gender,
location and in some cases, the educational background of the head of the household.
Reports indicate that children with an uneducated parent or guardian have a greater
chance of being uneducated than children who are raised in a family where the head of
the household has some kind of education.7
In Mozambique the literacy rate among women in particular is very low, and there are
disparities between the ratio of boys and girls registered at schools across the country.8
This has been attributed to poverty and infrastructure. UNICEF says that many families
keeping their daughters away from school is a survival tactic because they dispatch them
to work as domestic workers so they can contribute an income to the household.
In other cases, especially in rural areas, schools are far and with no means of transport
young girls have to walk, which leaves them vulnerable to abuse. UNICEF, together with
other partners, is working with the Mozambique Ministry of Education and Culture to try
and improve the situation.
Recently the government introduced the Child Friendly School initiative (CFS). The aim
of the CFS programme is to create a safe, supportive teaching and learning environment
in schools.
The initiative also involves providing life skills, programmes on HIV prevention, safety
programmes for girls, teaching material, community support programmes and education
drives that highlight the importance of education. The programme further provides
educators with school management and basic governance courses.
Standard Bank Mozambique has identified education as a key focus area in their
corporate social investment (CSI) programme, and has been rolling out a number of key
initiatives that will empower Mozambique’s students.
In 2006, the bank donated 2 000 books to the Matola High School library as part of the
Mozambican government’s Um Olhar de Esperance (A look of hope) campaign.
In June 2006, executive members from the bank participated in the construction of two
classrooms at ADPP, a technical college in the fishing village of Costa de Sol, and donated
eight scholarships to students.
In November the same year, the bank began their most important initiative, helping
impoverished schools jump into the technology arena with the donation of computer
equipment. A high school in the Nampula district, with a population of 5 800 students,
received a new computer room equipped with 25 computers and a printer. The computer
lab will also service 11 000 students from neighbouring high schools.
In May and November 2007, in the Manica and Tete regions respectively, the bank
donated two more computer rooms, equipped with 25 computers and a printer, to each
of the local high schools.
To facilitate the study of English language in schools, the bank also sponsored the
printing of 2 000 English Teacher Tool Kits in March 2007.
17
Standard Bank
Mozambique has
identified education
as a key focus area in
their corporate social
investment (CSI) program.
Elephants feeding in Amboseli National Park, Kenya
From Eyes Over Africa by Michael Poliza
(available at www.amazon.com)
“If you go through the high
grass where the elephant
has already gone through,
you don’t get soaked with
the dew.”
- African Proverb
From
Namibia
Small
change,
big change
In his first year as MD of Standard Bank Namibia,
South African-born Mpumzi Pupuma doubled the
bank’s profits after tax – to over N$270 million. He
attributes this feat to a “change of mindset” in the
bank, achieved through a series of intensive change
management and motivational workshops conducted
countrywide.
Mpumzi, a larger-than-life character, is no stranger
to big challenges: growing up in rural Eastern Cape,
South Africa, his first job (in 1975) was as a bank
clerk, “licking envelopes and manually doing stop
orders.” Twenty-six years later he returned to the
Eastern Cape – this time as Provincial Director for
Standard Bank, having completed his undergraduate
and post-graduate studies; in 2005, he took over as
Provincial Director of KwaZulu-Natal.
When Mpumzi arrived in Namibia in 2007, he spent
a month meeting staff – and then went to his
executives with a proposal: “What we need is a big,
audacious goal,” he announced. The goal, of course,
was to double 2006’s profit of N$122,5 million. It was
a brave statement not just for a new MD, but also for
a bank that, the previous year, had declared a drop in
profits from banking services.
Mpumzi’s strategy involved giving his Exco (Executive
Committee) more recognition – and mandate – as
a decision-making body, and creating “Mancos”,
or management committees, which would be
represented by their executives. He also linked
performance directly with rewards, by making
20
his Exco responsible for performance appraisals. These principles of enablement and
ownership were extended to every single branch, and every employee in Nambia.
Mpumzi acknowledges two influential individuals in this implementation: Jonathan Black,
who worked with Mpumzi to developed a game plan for each department, using the
CAPS programme; and Anton van der Post, veteran “change agent”, consultant and selfdevelopment facilitator, who conducted approximately 180 two-day workshops with staff
across the country.
“The first thing Mpumzi did was he turned a belief system into a success story,” says
Anton. “He held roadshows, and told his staff: ‘We are going to be really successful’.”
“My job was to listen to the staff and work out what were the things that were holding
them back.”
Anton’s role enabled staff to develop solutions to the problems they had identified – and
to work with Mpumzi to find answers to the questions they couldn’t resolve alone.
“Often, management doesn’t listen – a manager feels he or she should have all the
answers. But the point is, you can go and find the answers once you know the questions.”
“Anton is the bearer of bad news, for the MD,” jokes Mpumzi. “He allows the staff to
empty themselves – they trust him, because he’s an outside person, and they air their
frustrations. After each session, he calls me in and sits me down – and I try and answer or
address the issues that have been raised. Then we go back to management, and ask them
what they can do to improve it.”
“The aim of the exercise,” explains Anton, “is not to point fingers about ‘what you are
doing wrong,’ but to work out what people are doing right – and what’s holding them
back, what’s affecting their productivity.”
In a culture that recognised (and rewarded) ideas, unexpected sources soon provided
solutions: a teller came up with a brilliant idea for an ongoing operational issue. Each
month end, the bank was extremely busy and often struggled to cope with the high
volume of business. It was impractical to employ additional full-time staff (because the
bank was not as busy month-round), and not feasible to hire untrained “temps” (both for
security reasons, and because of the significant training that would be required for each
new employee). The teller identified an existing cadre of trained personnel who not only
knew the bank’s systems, but might also appreciate additional income from part-time
work – in the form of the bank’s pensioners, and women who had left the bank to be at
home with their children.
“The person who comes up with constructive questions is the kind of person the bank
looks at for management,” comments Anton, “not people who just moan.” The difference
between the two, he explains out, is that a constructive employee highlights the problem
– and then presents what he or she believes are possible solutions.
“If you want to be heard,” Anton continues, “the number one requirement is that you
produce the results. No matter where you are in the bank, if you deliver, people will
listen. Most big moaners don’t produce results. Mpumzi demands all sorts of things – but
he’s produced results.”
21
“The aim of the
exercise,” explains
Anton, “is not to point
fingers about ‘what you
are doing wrong,’
but to work out what
people are doing right –
and what’s holding them
back, what’s affecting
their productivity.”
From
Nigeria
Nigeria
is calling
In May 2001, the Mobile Telephone Networks (MTN)
group made history when it became the first GSM
network in Nigeria to make a call, following the
Nigerian Communications Commission (NCC) GSM
operating licence auction in January of that year.
MTN Nigeria marked the single biggest investment
made by the MTN group outside South Africa, and
financing for the venture was co-arranged by Stanbic
IBTC Bank Plc (formerly Stanbic Bank Nigeria) and
Nigeria International Bank Limited.
Before 2001, there were only 450 000 phone lines in
Nigeria, the continent’s most populous country, with
an estimated 138 million inhabitants1. Seven years
later, the country’s profile is completely transformed;
Nigeria is in the midst of a telecoms boom, and is now
Africa’s leading mobile phone market with 42 million
customers spread over five networks. Teledensity
[phones per 100 people] has grown from 0,4 to 24.2
Mobile phones are now an integral part of Nigerian
life and have not only helped change the lifestyles of
ordinary Nigerians but have also shifted the country’s
business landscape.
Since the emergence of GSM operators in 2001, the
telecoms sector has become a key contributor to
Nigeria’s GDP. Private sector investment in Nigeria’s
telecoms industry has grown from US$50 million
before 2001 to US$11,5 billion in 2008; in 2007 the
Federal government earned over US$2,5 billion from
Spectrum licensing fees alone.3
One million indirect employment opportunities have
mushroomed since the expansion of the telecoms
market and, to cope with the growth of the industry,
the NCC has taken steps to make sure there is enough
trained Nigerian manpower.4
22
The NCC took over running of the Digital Bridge Institute (DBI) in Abuja, which has
expanded its base and merged with Telecommunications Training Schools in Kano and
Oshidi and, recently, the NITEL Training Institute in Kano and Lagos. DBI is currently
undergoing restructuring but plans are to train 1 000 ICT professionals annually.5
The introduction of mobile networks has had a knock-on effect on the entire telecoms
industry. Nigeria now has 1,5 million active fixed wireless lines, 26 fixed line operators
and 112 Internet service providers.6
MTN Nigeria is the biggest GSM network with 14 million subscribers and a market
share of more than 44%. In 2007 the rapid growth of MTN Nigeria saw it surpass the
operations of its sister network MTN South Africa.
MTN has been the market leader in the Nigerian telecommunications revolution and the
second largest investor in the Nigerian economy, after the oil industry.2 To date MTN has
invested US$1,8 billion in telecommunications infrastructure. Since its launch in 2001,
MTN has rolled out services to 223 cities and towns, and more than 10 000 villages and
communities spanning 36 states.
“At MTN, the challenge we have set for ourselves is to help ensure that we link up every
city, village, hamlet, river and creek in Nigeria,” says CEO of MTN Nigeria, Ahmad Farroukh.9
MTN’s mission is to cover 95% or more of the Nigerian population by the end of its
licence year. To achieve their goals, the network is constructing base transceiver stations,
switches, Friendship Centres and an extensive transmission network between major
regions. MTN’s digital microwave transmission, the 3 400km Y’elloBahn, is reportedly the
most extensive digital microwave transmission infrastructure in Africa.10
Recently MTN became the first GSM network in Nigeria to adopt an additional numbering
system, 0806, having exhausted its initial subscriber numbering range 0803. MTN was
also the first network to introduce 3G products to Nigeria, in 2006.
Besides MTN’s vast investment in infrastructure, it has poured resources into training
programmes for its staff members. MTN currently employs 1 500 Nigerians on a fulltime basis. MTN has put in place a skills transfer programme that enables expatriates to
transfer useful skills and expertise to their Nigerian counterparts.
Stanbic IBTC Bank has been intimately involved in MTN Nigeria’s expansion, from the
network’s inception in 2001 when the bank, then trading under the name Stanbic Bank
Nigeria, assisted in arranging a syndicated loan that partially funded the network’s
US$285 million GSM license fee.
Working with Standard Bank Group, Stanbic IBTC Bank also arranged MTN Nigeria’s
naira bridging finance facility in 2002, as well as co-arranging a US$395 million loan the
following year. In 2004, Stanbic IBTC Bank raised a further US$200 million for MTN and,
in 2006, assisted with restructuring the company’s funding arrangements in Nigeria11.
MTN anticipates that by 2011, the Nigerian market will increase to 52 million subscribers.
To expand infrastructure network and to meet the already existing demand, Stanbic IBTC
Bank recently brokered a syndicated US$2 billion five-year funding facility that will help
finance MTN Nigeria’s plans.
23
MTN’s digital microwave
transmission, the 3 400
kilometre Y’elloBahn,
is reportedly the most
extensive digital microwave
transmission infrastructure
in Africa.
From
South Africa
Natural
profits
There are approximately 250 to 300 certified organic
farms in South Africa and 500 organic farmers, including
individual farmers from group schemes. Most of South
Africa’s small organic farms are owned by white families
but, according to Lina Keyter, CEO of South Africa’s
Agri Academy (one of Standard Bank’s social partners),
the government’s land transfer programme has helped
create an emerging black organic farming community.
This is especially evident in Limpopo where there are
several successful organic farming cooperatives and
individual farmers.
Former schoolteacher turned organic vegetable farmer
Dianah Shivambu started her career as a farmer six
years ago, on her family’s farm near Tzaneen. Her first
venture was breeding chickens that would eventually
be slaughtered offsite, for local businesses. With
the help of a neighbouring poultry farmer, Dianah
rejuvenated her farm’s existing chicken pens. Within
two years she was managing six chicken pens each
housing 1 000 chickens, and had hired two employees.
In 2005, Dianah (who, with 17 other farmers,
forms part of the Nkomamonta Organic Farmers
Association) went on organic farming training courses
funded by the government. The following year Dianah
planted her first organic vegetable crops. Since
then she has successfully harvested crops of organic
brinjals, butternut, onions, green beans, sweet
peppers and sweet corn.
Initially, she says, organic farming was a challenge
as there is more manual labour involved than with
conventional farming.
“We don’t use conventional fertilizer. We make our
own compost manually from leaves, grass, different
24
types of shrubs and manure. We also don’t spray our crops – instead we plant marigolds
that act as insect repellent. Organic farming is a very hands-on type of work,” she
explains. Her next venture is to expand her existing vegetable crop and produce lateharvest organic mangos for export.
While South Africa’s demand for organic produce is on the increase, international demand
is much greater and more lucrative. Global sales of organic food and drink increased
by 43% between 2002 and 2005 and demand is concentrated in Europe and North
America, where there is a shortage because production is not meeting demand.1
Through SA Agri Academy’s Market Access Development Programme (MDP), Dianah has been
trained to recognise sustainable markets where she can sell her products and negotiate prices.
The two-week programme arms organic farmers with knowledge about local and international
food safety standards, market research and food packaging methods – and partners local
farmers with overseas produce buyers during face-to-face ‘Agri Match’ visits.
Butternut farmer Maria Letsoalo has also gone through the MDP. Maria is a member
of the Limpopo Organic Farmers Association. All the members of the Association farm
butternuts in order to have a substantial volume and secure a lucrative share of the
market. Their biggest customer is the Spar Group.
Maria lives and works on a government-subsidised settlement with 63 other farmers.
The farmers work 4 000 hectares of land, of which 50 hectares is dedicated to organic
produce. Maria’s butternuts are not yet 100% organic, as she and the other farmers have
only recently converted to organic farming and, though they adhere to strict organic
farming methods, their seeds are not organic.
“Once we are fully organic, which should be in the next three years, we plan on selling
our produce to the international market,” says Maria. “It takes a while to get vegetables
to grow because they need to build a high resistance against disease without help from
any chemicals,” she says.
Her farm also does not have a state-of-the-art irrigation system so Maria, along with
four other labourers, waters 50 hectares of land manually at least twice a week. Maria is
planning to diversify her crop and, in future, will also farm organic beetroot and spinach.
Sophia Mlangemi has always yearned to be a farmer. Her wish came true last year when
the Department of Land Affairs gave her a grant to buy a farm. Now Sophia and her
husband own a 165-hectare farm in Tzaneen. Sophia farms mangos on 17,3 hectares of
the land and harvested her first crop in December 2007.
“I harvested 15 tons and sold them for R1 200 a ton,” she says proudly. The mangos
were sold to an atchar manufacturer. Sophia’s mangos are also not 100% organic. The
previous owner of the farm treated the mangos conventionally and Sophia has slowly
started introducing organic compost to the crop. She hopes by next year the mangos
will be certifiably organic. In addition to mangos, Sophia farms organic avocados and
vegetables. She is positive about the future, especially since she completed her training
at SA Agri Academy. “The training helped me understand so many things I hadn’t
considered before. I’m now working on becoming an international and local supplier.”
25
While South Africa’s
demand for organic
produce is on the increase,
international demand is
much greater – and more
lucrative.
From
Swaziland
Creating
local
solutions
It is impossible to tell any story about Swaziland – the
third smallest country on the African continent –
without confronting the spectre of HIV/Aids. In 2007,
the kingdom overtook Botswana as the country with
the highest HIV prevalence in the world. The 2005
estimates put the number of people living with HIV at
220 000 (a fifth of the entire population); the average
life expectancy has dropped to just shy of 32 years1.
Swaziland is generally ranked as one of the more
prosperous countries in Africa2 – it is not poor enough
to merit an IMF programme, for example – but
years of hard-won relative economic stability are
being undermined by the effect of HIV/Aids on the
country’s workforce.
This is particularly true in the subsistence agriculture
sector; about 70% of Swazis live in rural areas and
depend on subsistence farming on Swazi National
Land (owned by the Crown). Increased morbidity
and mortality related to HIV/Aids mean a direct
loss of productive labour; the diversion of resources
(including labour and cash) to caring for sick relatives;
and possible reductions in crop yields and related cash
inputs and incomes.
HIV has also created a generation of orphaned and
vulnerable children3 – as many as 108 000 youth.4
In 2006/7 drought conditions aggravated the
increasingly fragile agricultural economy; more
than a quarter of the country’s population required
emergency food aid5.
It was into this environment international development
organisation Save the Children (SC) looked to pilot a
new cash assistance programme in 2007 – in which
26
pre-identified recipient families would be eligible to receive 50% of their food basket, and
the balance in the form of cash (the equivalent of the market value of a half food basket).
“What we believe,” explains SC Swaziland’s Emergency Programme Manager Rosie
Jackson, “is that, by giving people cash, children and their families can eat a more diverse
diet [the standard food hamper includes maize, beans and oil], and are free to prioritise
other areas – such as education.”
Distributing the cash, however, posed a challenge; most of the recipients were in rural
areas, without access to formal banking structures or services. Because assistance was
calculated on a household basis – depending on the number of dependents – amounts
were also different for each beneficiary. For the pilot to work, it was essential to find a
distribution network that was secure, easy to access and manage.
Standard Bank Swaziland had already been working with the Swazi Posts and
Telecommunications Corporation (SPTC) to set up a system, using regional post office
branches, for the payment of pensioners living in rural areas. SC approached Standard
Bank who, together with SPTC, adapted the concept. Over 6 000 beneficiaries were
identified to receive cash aid – representing approximately 40 000 individuals. Each
beneficiary would receive money through a Standard Bank account, and withdrawals
could be made using either an ATM or at a designated local post office.
Before the programme could launch, SC worked closely with the Swazi government to
make sure all the programme beneficiaries had proper identity documents – to ensure a
secure and documented process, withdrawals could not be made without presentation
of an identity document, and payments could not be received on behalf of other
beneficiaries; the process was remarkably successful, thanks to government buy-in, and
was completed in just two months.
At the same time, SC conducted on-site training across all operational areas, about
savings and investments, and how to use an ATM (towards the end of the project, about
30% of participants were using the ATM network for this purpose). Post office staff
members were also trained to help recipients fill in cash withdrawal slips – to facilitate this
process, the post office was provided with a list of beneficiary names and total amounts.
The cash pilot project was launched in November 2007 – monthly payments (worked out
at the exact market equivalent to the food that would have been supplied) were E306 per
person a month, plus an additional E45 per household to cover costs such as transport.
In addition, once-off payments of E400 per household were made at the start
(November) and end (April) of the project; the lump sums were designed to provide extra
assistance during the planting and harvest seasons; many families used the money to
start small agricultural businesses – such as buying chicks, and selling eggs or poultry.
SC’s close relationship with the communities in which it operates meant instances of
abuse were very low – and were easily identified and managed.
“The system is fully reconcilable,” says Standard Bank’s Hogan Thring, Head of Global
Transactional Banking, who helped develop the custom payment solution for SC, “and
shows that it is possible to set up accountable, accessible infrastructures for the unbanked.”
27
The cash pilot project was
launched in November
2007 – monthly payments
(worked out at the exact
market equivalent to the
food that would have been
supplied) were E30 per
person per month, plus
an additional E40 per
household to cover costs
such as transport.
From
Tanzania
Switched
on
solutions
Tanzania made banking history in East Africa, when
a syndicate of local banks raised US$240 million to
fund the recovery of parastatal Tanzania Electric
Supply Company (TANESCO).
The deal was the single largest corporate financed
deal ever done for a parastatal in East Africa, as well
as being the second largest single commercial loan
ever arranged in East and Central Africa after the
Celtel Tanzania syndicated loan.
The TANESCO six-year loan amortises after 18 months,
and has a government guarantee.
“Even more significant,” wrote Joseph Mwamunyange
in Nairobi’s The East African, “is the fact that Tanzania
has circumvented the standard practice among
developing countries of borrowing from the World
Bank by relying on its own local institutions.”
Stanbic Bank was the lead mandated arranger of the
deal and was given the mandate to arrange up to
US$240 million in local currency. The TANESCO loan
marked the first time the government of Tanzania
turned to the private sector to come up with the
financing for a critical infrastructure sector – and
the syndicate had its work cut out financing and
structuring a deal of this magnitude for the troubled
parastatal, which was facing a number of challenges.
TANESCO is Tanzania’s main energy supplier,
but is struggling to meet the country’s energy
requirements. TANESCO has been in operation for
44 years and has a monopoly on the transmission and
distribution of power in the country.
28
Of Tanzania’s 39 million inhabitants, only 10% have access to a reliable electricity supply.
In the rural areas less than 2% of the population have access to electricity.1 The World
Bank says that despite the high levels of poverty in the rural areas, surveys show that a
household will spend up to 10% of its monthly income on candles, kerosene and batteries.2
The demand for power is growing across the country by more than 50MW a year, fuelled
partly by the expansion of gold and nickel mining in the north.3 Analysts estimate that
Tanzania has the capacity to produce 4 000MW of power, which can be used in local and
export markets.4
Up until 2001 hydropower supplied Tanzania’s power grid with 97,5% of its energy
requirements.5 But that changed between 2003 and 2006 when the country
experienced a drought that drastically reduced the resources of the hydropower dams,
which by 2006 could only supply 30% of the country’s electricity requirements.6
To supplement the shortfall, TANESCO bought thermal power from two independent
power producers, IPTL and Songas, who generate over 289MW of electricity combined.
In addition TANESCO had its own in-house thermal generation assets that had a capacity to
generate 110MW but, due to operational constraints, only managed to produce 50MW.
As the drought intensified and the dams were able to generate only a third of the
country’s energy requirements, TANESCO decided to institute load shedding.
By 2006 it was clear that Tanzania had a serious power crisis, driven by the shortage of
independent power suppliers and a need for additional thermal generation assets.
In 2006 TANESCO took active steps to reduce its dependence on hydropower and
increased thermal generation output to 54%. Its ambition is to increase thermal
generation output to more than 60% in 2009. In order to achieve this goal, it sought
additional funding.
Stanbic and its partners faced a number of challenges providing TANESCO with funding
approval. The state-owned entity was running at loss and had a poor service reputation.
The syndicate also had the task of raising an extraordinary large sum in shillings, in a local
banking environment that, at the time, had never seen finance deals larger US$78 million.
What helped seal the deal, explains John Ngumi, Stanbic Regional Director of Investment
Banking, was the fact that TANESCO, despite its woes, was a strategic national asset that
directly affected Tanzania’s entire economy. TANESCO also boasted a well thought-out
recovery plan, which is endorsed by the World Bank; and, ultimately, tangible shareholder
support for strategy, financing and support. The new top management team that was put in
place instilled confidence in lenders and investors that the recovery would be seen through.
TANESCO’s financial recovery plan stipulates that the power supplier will increase
revenue by seeking new clients, tapping into new markets and developing better
collection strategies – and a more customer-oriented focus.
29
Stanbic Bank was the lead
mandated arranger of the
deal and was given the
mandate to arrange up to
US$240 million in local
currency.
From
Uganda
Strength
in numbers
Uganda represents just 1,7% of Internet users on
the African continent, with an estimated 750 000
users (about 2,6% of the population)1, but this figure
could see a significant rise in the next five years as a
US$106 million partnership between the government
of Uganda and the Tropix/Founder Computer
Company is set to supply up to 300 000 laptops to
the country, mainly to civil service employees.
Uganda is considered an “early adopter” of
Information and Communication Technology (ICT) – it
was one of the first countries in sub-Saharan Africa to
get full Internet services, and liberalised its
telecommunications network in 1997. However,
access to computers and the Internet have
traditionally been limited by the high entry-level cost
of technology (a standard PC costs several times the
average monthly salary) as well as relatively expensive
Internet tariffs.
Now, by leveraging its numbers – the civil service is
the largest employer in Uganda, with more than
255 000 people2 – the Ugandan government has not
only been able to procure the laptops at a competitive
price (about US$699 a unit), it has also made them
affordable by negotiating a loan scheme with Stanbic
Bank, allowing qualifying civil servants to pay off the
computers over a period of 24 to 48 months, at an
interest rate of 20%.
April 2008 saw the arrival of the first 3 000 units,
and Stanbic Bank Uganda MD Philip Odera believes as
many as 20 000 computers could be delivered by the
end of the year.
The laptop scheme emerged out of a series of custom
loan facilities developed by Stanbic in partnership
with the government, specifically for state employees.
30
A facility of USh15 billion was created for the country’s largest military force, the UPDF
(estimated at between 50 000 and 70 000 soldiers); USh10 billion were allocated to the
Uganda Police Force (with more than 25 000 employees3). These programmes saw more
than 40 000 and 17 000 new accounts opened, respectively; and USh2 billion were
provided in loan facilities to more than 1 700 prison personnel.
In addition to a preferential interest rate – 18%, compared to a country average at the
time of about 30% (with micro-finance rates as high as 54%), Stanbic’s large branch and
ATM network (71 branches, and 128 ATMs) made it easier for citizens to access financial
services, streamlining processes such as salary payments, debt collection and offering
24-hour access to cash.
Just a few years ago, such public-private partnerships would not have been possible – in
the late Nineties, Uganda’s banking sector was labelled as “in crisis”1; several banks had
been forced to close and more were under management by the state central bank, the
Bank of Uganda.
The turning point came in 2002, with the sale of state-owned Uganda Commercial Bank
(UCB) to Stanbic. Privatisation brought stability and transformation, UCB’s 67 branches
were upgraded, networked, integrated with Stanbic’s existing infrastructure, and a
customer-focused culture was created.
During this process, Stanbic discovered the majority of public servants were simply not
banking. The lack of infrastructure and support meant banking services were either
impractical (for example, school teachers would have to take an entire day off work on
payday to collect their salaries) or entry levels (that is minimum or opening balances) were
prohibitively expensive.
The informal “formal” processes that developed as a result were highly problematic.
“For example,” explains Paul Omara, Head of Distribution PBB, “a district education
officer would open one account in the name of his district. On payday, he would carry the
district’s salaries in cash to his office; this would be used to pay the head teachers, who
would then travel back to their villages and pay the teachers.” In several instances, the
money would not make it past the head teachers.”
Similar systems used by the military and the country’s Police Force had equally
predictable results: fictitious names (“ghosts”) were used to claim salary benefits for
non-existent employees. In one instance, a former Army Commander was sentenced to
three years imprisonment for “causing the loss” of about USh60 million, used to pay
ghost “kiwani” (fake) soldiers.
“We were able to streamline the process,” says Paul, “by opening individual accounts and
using our superior IT platform to pay them electronically, in real time.”
In partnership with Stanbic, the Ministry of Finance and the Uganda People’s Defence
Force were able to access comprehensive personnel details for the first time; the army’s
payroll is now configured so that, on payday, soldiers’ salaries are credited to their
accounts with literally the touch of a button – and the money can be accessed at any
time, simply by visiting the nearest ATM. All the State employees are now required by law
to open banks accounts before salaries are paid.
31
Privatisation brought
stability – and
transformation: UCB’s
67 branches were
upgraded, networked, and
integrated with Stanbic’s
existing infrastructure and
customer-focused culture.
From
Zambia
Power
deals
On the back of rising metal prices, a series of major
finance deals have seen more than US$1,12 billion
injected into Zambia’s copper industry, revitalising a
sector that, just six years ago, was considered on the
verge of collapse.
Zambia is one of the continent’s wealthiest nations
when it comes to diverse mineral resources. Besides
being a major producer of copper and cobalt, Zambia
also mines selenium, silver, zinc, lead and small
amounts of gold and platinum.
But it is copper that continues to generate most of
Zambia’s foreign exchange revenue. Zambia is the
world’s seventh largest producer of copper, and the
second largest producer of cobalt.1 Its mining industry
generates 3,3% of the world’s copper and 19,7% of
its cobalt.2
In the first quarter of 2008 international metal prices
peaked at record highs and according to the Bank of
Zambia (BoZ), Zambia’s copper and cobalt exports
generated about $989,8 million – this despite the
fact that copper mines were operating below capacity
due to the crippling effect of flooding in some mines
in the Copper Belt.3
By 2010 economists project Zambia will be producing
between 900 000 and one million tons of copper as
new mines come into operation4 and the demand for
copper from industrial giants like China increases.
The most recent mine to come into operation in
Zambia is The Lumwana Copper Mine Project. Owned
by Australian mining house Equinox Minerals Limited,
Lumwana is based in Zambia’s impoverished North
Western Province, a region where mining is not as
common as in the established Copper Belt that lies
about 220km to the west.
32
Lumwana’s copper rich deposits were first discovered in the 1930s, but large scale mining
operations only began in April 2007, after Equinox Minerals Limited secured one of
Zambia’s biggest financing deals, involving 15 financial institutions and a total investment
of US$1 billion. The deal won several awards for the 2006 Mining Deal of the Year from
a number of finance journals including Project Finance, Project Finance International and
The Banker (FT).
Rated as Africa’s biggest open cast copper mine, Lumwana is expected to produce
roughly 20 million tons of copper ore per annum in the next 37 years.
Besides copper ore, Lumwana’s copper pit shells are also rich in uranium and Equinox
Minerals recently released positive results of their second uranium mining feasibility study.5
If the Lumwana Uranium Project’s Environmental Impact Assessment (EIA) is approved by
the Environmental Council of Zambia, and the government successfully enacts legislation
for the processing and export of uranium that is consistent with International Atomic
Energy Agency, construction of a uranium plant could begin before the end of 2008.6
Besides the contribution it makes to Zambia’s balance sheet, Lumwana has also become
the major employer in the North Western Province. When it is fully operational, Lumwana
is expected to have a staff compliment of 4 700 Zambians, most of who will be recruited
from surrounding villages.
In order to support local business and the community, Equinox Mineral Limited is running
a programme to develop infrastructure by building a new town from scratch. Thus far six
local schools, three clinics and two women’s centres have been constructed. In addition,
1 000 staff houses have almost been completed.
A second deal, the first large-scale black empowerment management buyout (MBO) in
Zambia, saw ownership of power transmission company Copperbelt Energy Corporation
(CEC) return to Zambian hands, coupled with significant investment in the company.
In April 2007 CEC announced it would spend about US$60 million in the next three
years to upgrade its systems, allowing it to increase power supply to the country’s copper
mines (including Lumwana) by 40%.
CEC is an important player in the Zambian copper industry as it currently purchases 60%
of the electricity generated by Zesco, the local energy utility, which it on sells to mining
companies in the Copperbelt.
The mines’ dedicated transmission link from CEC is critically important from a safety
perspective. Zambia has some of the deepest mines in the world, which are waterlogged
and need to be drained regularly with electrical pumps. Power failures could result in
fatalities and would also have a severe impact on the economy.
In December 2007, CEC offered 25% of its shares to the Zambian public through an
Initial Public Offering (IPO) on the Lusaka Stock Exchange. To create interest and make
the shares affordable to staff, shares were offered to CEC employees at a discounted
price. Standard Bank Group advised on the CEC MBO deal, while Stanbic Bank Zambia
acted as the receiving bank where interested future shareholders could submit their
applications.
33
The mines’ dedicated
transmission link from CEC
is critically important from a
safety perspective. Zambia
has some of the deepest
mines in the world, which
are waterlogged and need
to be drained regularly with
electrical pumps. Power
failures could result in
fatalities and would also
have a severe impact on the
economy.
From
Zimbabwe
Builder
of hope
A laminated paper drawing illustrating an island and
a bundle of sticks might seem insubstantial weapons
against HIV/Aids in Africa, but these props form the
foundation for one of the continent’s most innovative
HIV/Aids training programmes, the award-winning
Bridges of Hope (BOH).
With a few deft movements and a little imagination, two
of the sticks are transformed into a “bridge” that spans
treacherous crocodile-infested waters, reaching out to
the tiny island – the repository of each person’s life goals
and dreams.
When people try and cross the bridge alone (it’s barely
2cm wide), they often fall, and fail. Success is made
easier when a second bridge is added in parallel. The
clear message is that, without help, it’s difficult to
achieve our goals. The lesson is simple: if we identify and
use the support we need, anything is possible.
BOH founder Peter Labouchere, who is based in Victoria
Falls, Zimbabwe writes: “We naturally move towards
whatever we focus on most, and how we imagine our
future to be.”
“The best way to solve a problem, “is not to focus on
the problem, but on the outcomes we really want in our
lives […] To effect sustainable change, we must enable
people to make their own well-informed choices about
what they do, linking these choices to achieving what is
really important to them in life, their own values-based
desired future outcomes.” In BOH-speak, their own
“future islands”.
The concept for BOH came to Labouchere nearly a
decade ago when he was working for the Voluntary
Services Overseas (VSO) in London, preparing an HIV/
Aids awareness training for volunteers about to go
abroad.
34
Most awareness campaigns and material placed strong emphasis on “the problem, and how to
avoid it”; Labouchere believed that for any sustainable behaviour change to occur, programmes
needed to tap into the audience’s outcomes – their broader dreams, ambitions and goals – so
that they could create a tangible link between the message, and how it could affect their lives.
“The issues surrounding the pandemic are huge and complex,” Labouchere explains, “and these
need to be explored and their realities acknowledged and understood. However, focusing just
on the risk, consequences and prevalence of HIV/Aids often produces a ‘Fear Response’ which
ignores, rationalises or denies the reality of the problem.”
BOH takes a very different approach, exploring and addressing issues around HIV/Aids within a
context of “how to stay healthy, improve relationships, [live] longer and achieve your goals and
dreams in life”.
“As soon as we scrape the surface of the subject of HIV/Aids,” Labouchere says, “it quickly
opens up an array of issues touching all fundamental aspects of life – love, relationships, sex,
gender, culture, reproduction, religion, death, politics and economics. It cannot possibly be
addressed effectively as a purely ‘health’ issue.”
Peter moved back to Africa, and began facilitating BOH training, in addition to establishing a
support group in his area for people living with HIV/Aids.
In 2003, his work globally with Standard Chartered Bank (training peer educators to use BOH)
won the Global Business Coalition on HIV/Aids (GBC) Award for Business Excellence. As a
result, Standard Bank Group introduced BOH training for all their HIV Champions (now known
as Wellness Champions).
The BOH programme has since been used in more than 60 countries around the world, with
715 Standard Bank Wellness Champions trained through BOH.
A key feature of BOH’s success is that it is interactive and allows participants and trainers to use
the great African tradition of story telling, using visual aids and symbols to get their points across.
The simple education-through-activities approach (like the “Walking the Bridges” exercise,
mentioned earlier) makes it accessible and relevant to a wide audience. The bridges themselves
have become a powerful symbol – representing life skills, social support, safer sexual
behaviour… In a later exercise (there are 20 BOH activities, which can be done together or
individually) called “Your Future Island”, participants are given the opportunity to develop
their own positive outcomes for their life and identify the steps for starting towards this goal,
including how they will stay safe from HIV infection.
BOH trainers are able to select the activities they believe will be most effective – there’s no set
time requirement – and are able to adapt activities to almost any situation (in one instance, a
BOH trainer used a real river with real crocodiles to teach fellow funeral guests about creating
their “future islands”).
At present, 320 of Standard Bank Group’s Wellness Champions are BOH certified. This
means they have facilitated or co-facilitated a minimum of five BOH training sessions, either
in the workplace or in their community, after completing the BOH training; 125 Wellness
Champions in South Africa have also received Sector Education and Training Authority (SETA)
accreditation, an acknowledgement of prior learning, for their BOH work.
35
BOH takes a very different
approach, exploring and
addressing issues around
HIV/Aids within a context
of “how to stay healthy,
improve relationships,
[live] longer and
achieve your
goals and
dreams in life”.
Contacts
Botswana
Stanbic Botswana
Duduetsang Chappelle-Molloy
(Marketing Manager)
molloyd@stanbic.com
T +267 361 8229
DRC
Stanbic Bank DRC
Jean Rey (Deputy MD and Head of CIB)
reyj@stanbic.com
T +243 99 555 6539
Ghana
Stanbic Ghana
Mawuko Afadzinu
(Head of Marketing and Public Affairs)
AfadzinuM@stanbic.com.gh
T +233 21 6876708
Kenya
Stanbic Kenya
Victoria Ncheeri
ncheeriv@stanbic.com
T +254 020 3268 000
Lesotho
Namibia
Standard Lesotho Bank
Roger Snelgar (MD)
SnelgarR@stanbic.com
T +266 52 241 200
Standard Bank Namibia
Mpumzi Pupuma (MD)
Peniza.Prinzonsky@standardbank.com.na
T +264 6129 42629
Malawi
Nigeria
Stanbic Malawi
Margaret Kubwalo (Regional Head GIO)
Margaret.Kubwalo@standardbank.co.mw
T +265 1 770 328
Mauritius
Standard Bank
Mauritius Jerome Espitalier-Noel
(Marketing Manager)
Jerome.Espitalier-Noel@standardbank.mu
T +230 207 9600
Mozambique
Standard Bank Mozambique
Sandra Zumbire
(Acting Marketing Manager)
sandra.zumbire@standardbank.co.mz
T +258 843 984110
Tanzania
Stanbic Bank Tanzania
John Ngumi (Director,
Investment Banking: East Africa)
ngumij@stanbic.com
T +254 (0) 20 425 8254
Stanbic IBTC Bank Nigeria
Hector Okposo
(Relationship Manager, Telecoms)
OkposoH@stanbic.com
T +234-1-2709499 Ext. 374
Uganda
South Africa
Zambia
Standard Bank South Africa
Lucet Piquito (Manager Corporate
Social Investments)
Lucet.Piquito@standardbank.co.za
T +27 (0)11 636 0296
Swaziland
Standard Bank Swaziland
Hogan Thring (Head Global
Transactional Banking)
ThringH@stanbic.com
T +268 404 6587
Stanbic Bank Uganda
Paul Omara (Head of Distribution)
OmaraP@stanbic.com
T +256 772 610 296
Stanbic Bank Zambia
Irene Musonda (Marketing Manager)
Musondai@stanbic.com
T +260 1 229071 (Ext 2313)
Zimbabwe
Stanbic Bank Zimbabwe
Sydney Kahzanje
(Head of Human Resources)
KahzanjeS@stanbic.com
T +263 4 786 23400
Article notes
Botswana
1DFID report. “UK backs lessons in
banking to help Africa’s poor”. 25
January 2008
2 CIA Fact Book
3www.gov.bw Botswana Consumer
Driven.
DRC
1 DFID Country Profile
2 2007/2008 UNHDI report
3 Jane’s Country Risk March 2008
4 DFID Country Profile
52006 levels, cited by reports from the
US Department of State and the World
Bank
6 World Bank country brief
7The Economist “A ravenous dragon”
March 13 2008.
8The Economist “A ravenous dragon”
March 13 2008.
Ghana
1http://web.worldbank.org Ghana and
The World Bank: 50 Years of Reliable
Partnership,
2http://web.worldbank.org Ghana and
The World Bank: 50 Years of Reliable
Partnership
3 Kojo Aboagye-Debrah, Business
Developer, Stanbic Bank Ghana
4 w ww.thestatesmanonline.com –
Ghana’s 1st national transport policy,
Yaaba Yamikeh, 30/08/06
5 w ww.thestatesmanonline.com –
Ghana’s 1st national transport policy,
Yaaba Yamikeh, 30/08/06
6 www.nationalencyclopedia.com/
Africa/Ghana-TRANSPORTATION
7 http://web.worldbank.org Ghana and
The World Bank: 50 Years of Reliable
Partnership
Kenya
1 Kenya Broadcasting Corporation
“Formation of grand coalition to boost
investor confidence”. April 16, 2008
2 www.allAfrica.com Mobile Teledensity
On the Rise, Zachary Ochieng
3 www.allAfrica.com Telkom Kenya Sale
Likely to Fall Behind Schedule, Michael
Omondi
4 w ww.allAfrica.comTelkom Kenya Sale
Likely to Fall Behind Schedule, Michael
Omondi
5 Kenya: Telkom to Send Half of Its Workers Home. Business Daily (Nairobi).
23 January 2008 Michael Omondi
6 Kenya: Telkom to Send Half of
Its Workers Home. Business Daily
(Nairobi). 23 January 2008 Michael
Omondi
7 w ww.mybroadband.co.za Telkom Kenya
up for grabs – Joyce Joan Wangui
Malawi
2Humanitarian Practice Network:
“Tackling vulnerability to hunger in
Malawi through market-based options
contracts”
3Foreign and Commonwealth Office
Country Profile
4Foreign and Commonwealth Office
Country Profile
5Humanitarian Practice Network:
“Tackling vulnerability to hunger in
Malawi through market-based options
contracts”
6Humanitarian Practice Network:
“Tackling vulnerability to hunger in
Malawi through market-based options
contracts”
7International Development Association
Paper – “IDA Countries and Exogenous
Shocks”, October 2006
8Humanitarian Practice Network:
“Tackling vulnerability to hunger in
Malawi through market-based options
contracts”
9International Development Association
Paper – “IDA Countries and Exogenous
Shocks”, October 2006)
Mauritius
1 CIA World Factbook
2 CIA World Factbook
3 The Telegraph, Calcutta. PLAYING
OSTRICH by SL Rao, May 5 2008
4 The Times of India. “Safe haven: FDI
leaps 56% in ‘08” 3 May 2008,
5 CIA World Factbook
6 S ADC Trade, Industry and Investment
Review 2007/2008
7 CIA World Factbook, 2007 estimate
8 CIA World Factbook
9 www.agoa.info
10S ADC Trade, Industry and Investment
Review 2007/2008
11“East Africa: Submarine Network to
Lower Internet Costs” by John Odyek
in the New Vision (Kampala), 22 April
2008.
12S ADC Trade, Industry and Investment
Review 2007/2008
13S ADC Trade, Industry and Investment
Review 2007/2008
14The Hindu Business Line. “MRPL will
export fuel to Mauritius from August”.
July 07 2007.
Mozambique
Tanzania
Nigeria
Uganda
1 UNICEF Mozambique at a glance
2 CIA Fact Book
3 CIA Fact Book
4UNICEF – http://www.unicef.org/
mozambique/education_2043.html
5UNICEF - http://www.unicef.org/
mozambique/education.html
62008 UNGASS Country Progress
Report for Mozambique
7UNICEF - http://www.unicef.org/
mozambique/education.html
8UNICEF – www.unicef.org/
infobycountry/mozambique statistics
1 July 2008 estimate, CIA World Factbook
2 www.ncc.gov.ng
3 www.ncc.gov.ng
4 w ww.allAfrica.com – Private
Investment in Telecoms Hits 11.5bn –
Patrick Ugeh
5 w ww.allAfrica.com – Private
Investment in Telecoms Hits 11.5bn –
Patrick Ugeh
6 www.allAfrica.com – Private
Investment in Telecoms Hits 11.5bn –
Patrick Ugeh
7 www.mtn.com
8 www.mtnonline.com
9 www.mtnonline.com
10www.mtnonline.com
11I-net bridge. “MTN, Standard
announce huge deal”. October 2007.
South Africa
1www.ccf.org - Global Statistics of the
Organic Market
Swaziland
1 2008 estimate, from the CIA World
Factbook
2 US Department of State Background
Note: Swaziland
3 W hile “orphaned” may refer to the loss
of one or both parents, “vulnerable”
is often applied to children whose
parents (or relatives), while still living,
are ill to the extent that it has a similar
effect on the social and financial
dynamics of the household – including
children assuming the responsibilities
of ill parents, or shouldering the
burden of caring for ill parents or
relatives.
4 UNGASS Swaziland Country Report
5 CIA World Factbook
6 Swaziland’s currency, lilangeni or,
emalangeni in plural, is pegged to the
South African rand.
36
SBSA 704849-5/08
1www.bbc.co.uk , Wind of Change
Blows in Tanzania by Daniel Dickinson
2http://web.worldbank.org – Tanzania
Strives to Improve Energy Access
Rates with World Bank and Global
Environment Facility Support
3 www.bbc.co.uk, Wind of Change Blows
in Tanzania by Daniel Dickinson
4 Demand for Electricity in Tanzania
Fuelled by Industrial Growth –
Business Wire, 25 March 2008
5 www.tanesco.org.
6 www. tanesco.org
1 International Telecommunication
Union, September 2007
2 Uganda Bureau of Statistics at
www.obus.org
3 Yasjin Mugerwa “Uganda needs more
Police personnel”. Daily Monitor
Uganda, April 26 2008.
4 Andrew Meldrum “Banking sector
in crisis”. African Business February
1999.
Zambia
1 www.zambiamining.co.zm
2 www.zambiamining.co.zm
3 www. Zambia Copper Mining Ouput Up
12 percent in Q1
4 Stanbic Bank: Blue Print Zambia
February 2008, contact Yvonne
Mhango, Yvonne.Mhango@
standardbank.co.za
5 Equinox Releases Positive Lumwana
Uranium Feasibility Study, April 29
2008, www.equinoxminerals.com
6 Equinox Releases Positive Lumwana
Uranium Feasibility Study, April 29,
2008, www.equinoxminerals.com