First"cheap" airline in Africa

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Eni clears Ghana hurdle on Sankofa




Eni

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By Upstream staff
24 November 2014 11:55 GMT


Italy's Eni has concluded negotiations with Ghanaian authorities over its huge Sankofa-Gye Nyame project off the West Africa powerhouse.

The development could see the Italian operator firm up an order for a floating production, storage and offloading unit, with Upstream recently reporting that Japan's Modec was leading the race for the contract.
Ghana's government said in a statement on Monday that the conclusion of negotiations - involving the Ministry of Energy & Petroleum, the Ministry of Finance, state player Ghana National Petroleum Corporation, oil trader Vitol and Eni - opened the way for Eni to move towards production.
The $6 billion (Sankofa project) is expected to start commercial production of oil and gas by mid-2017 to augment the country’s current production capacity," the statement read.
"The next stage of the agreement will be the approval of (the) plan of development (POD) and ratification of the approval by Parliament."
The approved project would require an FPSO capable of producing up to 50,000 barrels per day of oil and 170 million cubic feet per day of gas - the level at which it is hoped the project will produce for two decades.
Eni as operator would lease the floater.
Apart from Tokyo-based Modec, other bidders for the FPSO work include Malaysia's Bumi Armada and Yinson, which recently acquired Oslo-based floater specialist Fred Olsen Production.
Upstream reported in September that Yinson signed a memorandum of agreement with tanker company Golden State Petro to buy the Samsung-built 309,000-dwt Ulreiken, which sources said would be intended for conversion into a production unit.
Eni recently switched contracting strategies on an important subsea element of the oil and gas project, after evaluating initial responses.
Sources said Eni’s original aim was to offer an engineering, procurement, construction and installation contract covering about 60 kilometres of risers, 70 kilometres of flexible flowlines, and three kilometres of jumpers.
However, Upstream reported in September that Eni has now opted for an installation-only contract, with multiple bid documents issued for the supply of flowlines and risers.
Eni’s change of heart arose during evaluation of proposals for the initial contract when it was apparent that only Technip could provide all the flowlines and risers able to meet Sankofa-Gye Nyame’s specifications, which include “quite high pressures and hydrogen sulphide,” said a source.
A project watcher claimed: “Technip could do all of it but NOV, GE, NKT and Wellstream could not.”
Accordingly, it is believed that Eni has now issued three packages, plus two options, covering the supply of flowlines and risers with each to be individually priced.
Invitations to tender for the flowlines and riser installation work are now expected to be released in October or November.
This is about six months behind Eni’s original schedule, although the Milan-based company is still said to want first oil to flow at the end of 2016.
Eni had already decided to sou rce the project’s umbilicals, plus other subsea equipment, itself. Sankofa-Gye Nyame — located in the Offshore Cape Three Points licence — will be exploited via a leased floating production, storage and offloading vessel.
Peak output from the field is expected to reach 50,000 bpd of crude plus 160 million cubic feet per day of gas, with oil flowing first.
In the initial development plan, market players said 14 wells are planned to exploit Sankofa-Gye Nyame’s oil, with its gas to be re-injected for later use.
The subsea production system in this initial stage is said to involve eight production wells, three water injectors and three gas injectors.

[Wahalla]

over the years i mentioned how difficult it is to do buinsess in Africa...so i have posted not merely positive stories but sotries of this start up company in Tanzania... Fastjet. I invested in it and am sitting on a huge loss... but profit was never my sole reason for investing but i belive that Africa needs intra Africa transport having once had to fly from Nigeria to Paris to go to Maurentania... Below is a summary of the issues and inertia that this company face... Not all enterprise is good enterprise... But this i feel is a economic multiplier.. i once wrote that it has a 90 % chance of failure.... But Fastjet hhas left a mark.. not simply the transport but the idea that there is income in Africa and there is a service buisness based in Africa with Africans as the customers....the lie of NGOs, nationalists, socialist that africa is mere poverty...


FASTJET TANZANIA CELEBRATES SECOND ANNIVERSARY OF TAKING TO THE AIR
Two years can be an eternity for a startup airline, and there are examples in East Africa that some did not survive even the first two months of operations before folding again. Not so with Fastjet Tanzania which today celebrated their second birthday after taking to the skies for the first time on November 29 with their maiden flight from Dar es Salaam to Kilimanjaro and Mwanza.
Since then Mbeya came on line as a third domestic destination served out of Dar and were four international destinations added - Johannesburg, Lusaka, Harare and Entebbe.
Yet, in spite of fleet average load factors well into the 70 percent range and on-time performances consistently in the low 90 percent range, this has still to translate into black ink on the bottom line of the company’s balance sheets, a reminder of the challenges airlines face in Africa and the deep pockets needed to turn startup losses into sustained profitability.
While Tanzanian authorities were described by company officials as “extremely helpful,” Fastjet faced an uphill struggle elsewhere, with in particular the South African authorities gathering black marks against their name as they stopped the inaugural flight on the very eve of the planned maiden service between Dar es Salaam and Johannesburg, choosing that very moment to ask for “additional documentation” to throw a spanner in the works of Fastjet and give their own national airline another few weeks of exploiting the market with high fares. Kenyan regulators in the meantime did the same and worse when they deferred Fastjet PLC’s application for an air service license to set up a franchise airline in Kenya and are equally stalling Fastjet Tanzania’s route rights between Dar es Salaam and Nairobi, a bad example of protectionism and a clear violation of the spirit and letter of aviation protocols in place for the East African Community, COMESA, and leave alone the Yamoussoukro Declaration they happily invoke when their own airlines run into similar challenges over traffic rights to other African countries.
Still, Fastjet carried nearly 900,000 passengers since its maiden flight 2 years ago in their Airbus A319 fleet, and were it not for regulatory shenanigans, could well have reached the 1 million passenger mark in time for their second birthday.
Ed Winter, the CEO of Fastjet PLC, which is based in the UK where it is listed on the London Stock Exchange, had this to say as the big day approaches: “Affordable air travel is key to the growth of economies across Africa – particularly in the business and tourism sectors. It is expensive and time-consuming to build roads to connect cities, and it is inconvenient for people to travel over land. Even if there are existing airlines connecting two cities, the flights typically involve at least one stopover. Furthermore, the exorbitant fares charged by airlines on these routes exclude the majority of a country’s citizens from enjoying the convenience and timesaving benefits of airline travel. In spite of major regulatory challenges encountered as we rolled out our international route expansion, the encouragement that we have received from the Tanzanian government has been remarkable – for which we are extremely grateful. We believe that there is great potential for the low-cost carrier model in Africa, and we are committed to working with governments across the continent to promote the benefits of competition in the aviation sector, that will in turn lead to better fares for passengers.”
To give passengers a piece of the proverbial birthday pie, Fastjet will hold a one-day special sale on December 3.
Key objectives for the third year of operations will be the establishment of Fastjet Zambia where the company has recently obtained the initial regulatory approvals and licenses and is now working towards attaining their Air Operator Certificate, prerequisite to commence flight operations and to get regulatory approvals from the Kenyan authorities to set up Fastjet Kenya, a process made deliberately difficult by multiple objections filed by competitors as well as underhanded tactics by the regulators in Nairobi. Other objectives for year 3 will be operationalizing fifth freedom rights given to them by the Ugandan Civil Aviation Authority for flights from Entebbe to Juba, Kigali, Nairobi, and Johannesburg.

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Follow upt to a post i made a year or so back...


Innoson Unveils First ‘Made-in-Nigeria’ Cars

December 2, 2014 Niyi Aderibigbe Business

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VENTURES AFRICA – When Nigeria, on October 3, 2013, announced the introduction of a new automotive policy aimed at discouraging the importation of wholly assembled automobile and encourage local manufacturing, it seemed like a tall dream, but building on recent local assembly successes by Hyundai and Nissan was indigenous company Innoson’s unveiling of its new brand of cars last week.
Innoson Vehicle Manufacturing Company Limited founded by Nigerian industrialist, Chief Innocent Chukwuma unveiled its new cars – IVM Umu, IVM Umu and IVM Uzo manufactured at the company’s Nnewi plant in Anambra State, South east Nigeria.

IVM Fox

IVM UMU

70 percent of the parts used in manufacturing the cars were locally sourced, heralding the emergence of a local car manufacturing industry that will in the nearest future serve the region. Already, the company has disclosed it plans to take its brand to neighbours in West Africa, with the Republic of Benin and Ghana on its radar. The company had earlier impressed with its trucks and buses.
The range of Innoson brands are already enjoying patronage locally, something lacking in the past, which has stifled the growth of several indigenous manufacturers. But across Africa, locally-made goods are beginning to earn respect and desired patronage through quality assurance and competitive pricing.
Former governor of Nigeria’s Anambra State where the Innoson plant is located, Dr Peter Obi had become a frequent buyer of the locally made vehicles by the time he left office. Founder of the car-making company, Chukwuma said Obi still patronizes his company.
Nigeria’s Federal Road Safety Commission (FRSC) is expected to soon take delivery of Pickups made by Innoson.

Pickups for the Nigerian Road Safety Corps

The country’s minister of trade and investment, Dr. Olusegun Aganga at the event held in Nnewi, commended Innoson Vehicles Company (IVC) for producing the first Nigeria-made vehicles. He said such an investment is necessary to expand the country’s manufacturing frontiers.
21 auto-companies have already signed commitments with technical partners to set up local assembly operations, according to Nigeria’s National Automotive Council (NAC).
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[Wahalla]

I post this here although it is not primarily about Africa buisness.... Fuel theft in Nigeria is formalised into the term illegal Bunkering... in Mexico it is the Cartels that lead it and it is seen as mere laceny... I was not aware that this was a issue in Mexico... at times it seems that it only happens in Nigeria....



Amid Mexico's Energy Reform, Fuel Theft Poses Risks

December 4, 2014 | 0900 GMT

Analysis

By Tristan Reed

Two years into Mexican President Enrique Pena Nieto's six-year term, the president has already managed to pass contentious energy reform legislation that will allow foreign energy firms to operate independently inside the country. The government will award the first of these contracts in the first half of 2015, marking the beginning of an ambitious effort to revitalize Mexico's lagging energy sector.

For foreign companies, however, 2015 will also be an introduction to Mexico's complex security environment and its shifting constellation of transnational criminal groups, commonly referred to as cartels. Mexico's state-owned energy company, Petroleos Mexicanos, or Pemex, and its various contractors are already keenly aware of the risks these groups pose. This risk has intensified in recent years as organized crime groups have sought to diversify their operations beyond trafficking and have expanded fuel theft.

The past decade has seen tens of thousands of homicides in Mexico and a degradation of overall public security in many areas. The root cause of this violence is increased competition over drug trafficking routes into the United States. Pena Nieto and his two predecessors made it a priority to reduce violence related to these turf wars by tasking Mexico’s military with leading a campaign to target the offenders. Criminal groups have reacted to this increased pressure and pressure from rival crime groups by expanding their revenue sources to both fund their wars and bribe officials. Expansion means diversification, and crime groups have increasingly turned to kidnapping, extortion, cargo theft, illegal gambling, money laundering and other operations. One especially lucrative enterprise has been the theft and resale of hydrocarbon products.

This diversification has led to major shifts. According to a 2013 Organization of American States report, revenue to maintain a crime group's operational costs can comprise 35 percent local funding, meaning activities other than trafficking illicit drugs for sale on the global market. Since 2010, hydrocarbons' role in this revenue has expanded dramatically. While small local gangs and corrupt employees have long preyed on Pemex's infrastructure, large crime groups collectively receive more than a billion dollars in profit annually from hydrocarbon theft, primarily of gasoline and diesel. And while this diversification began as a way of safeguarding drug trafficking routes, it now provides billions of dollars in revenue in and of itself. What was once a means is now an end. Criminal organizations in Mexico now compete for the right to exploit local populations and businesses. This has proliferated into smaller turf wars not directly related to drug trafficking.

A Widespread Problem

As opposed to the smaller actors previously involved, crime groups have the capacity to organize hydrocarbon theft on a massive scale across multiple regions with a high level of efficiency. Many of these operations center on drilling into underground pipelines. Illegal tapping of Pemex pipelines has cost the company 15 billion pesos ($1.2 billion) over the past year according to September statements by Pemex chief Emilio Lozoya. From January to September of 2014, 7.5 million barrels of gasoline were stolen. The rate of theft is on the rise, according to a Pemex 2013 Sustainability Report. In 2013, officials discovered 3,052 illegal taps nationwide, up from 1,749 in 2012 and 1,334 in 2011. At the moment, $1.2 billion represents a minor share of Pemex’s gross income of roughly $108.3 billion in 2013, but the rate of expansion signals more losses in coming years unless Mexico clamps down on crime groups and wholesale buyers.

Although these fuel theft operations are ongoing along virtually every pipeline route, the territories in the east have seen the greatest uptick since 2010. This area is largely within the domain of the Tamaulipas-based organized crime groups, including Los Zetas and the various Gulf cartel gangs. In 2013, at least half the illegal pipeline taps discovered were inside this territory. The theft and resale of gasoline in Tamaulipas state serves as one example highlighting potential profits for organized crime. According to a June 2014 report by Milenio, organized crime now controls approximately 15 percent of gasoline sales in Tamaulipas state and earns roughly $268 million per year. Crime groups in Tamaulipas also receive revenue from other products, including crude oil. In September, police dismantled a Guanajuato-based crime ring that had been purchasing 25,000 barrels of oil per month from a Gulf cartel gang in Tamaulipas state and reselling it to companies in Guanajuato, Jalisco and San Luis Potosi states. This represents only a small portion of the nation's hydrocarbon theft problem.

Demand has stimulated organized crime’s expansion into hydrocarbon theft and crime groups have proven particularly adept. The technical skills needed to tap into Pemex pipelines are not sophisticated, but these groups command significant resources and have a greater capacity to corrupt Pemex staff and contractors. These employees can then allow criminal organizations to operate along pipelines and around installations without oversight. They can also provide intelligence about the precise locations of pipeline routes and their current status. They can even allow criminals to steal directly from refineries. The Mexican army and federal police forces in October 2013 arrested 39 employees and nine contractors at a Pemex refinery in Salamanca, Guanajuato, for fuel theft. The problem, however, is nationwide, and organized crime groups have made heavy use of corrupt employees in many states.

Fueling Turf Wars

The financial incentives behind fuel theft have led to violent competition over the territory needed for these operations. Summer 2014 saw a turf war between Los Zetas and a yet to be identified rival in southeastern Veracruz state. In August a firefight broke out between rival groups over the right to siphon from a Pemex pipeline in Cosoleacaque, Veracruz.

While the levels of criminal violence associated with turf wars over fuel theft are far lower than those from drug trafficking, employees in Mexico’s energy sector are particularly vulnerable. Expanding fuel theft operations requires collusion with Pemex officials and workers operating along pipelines. This means employees are often targeted for coercion or bribery, as well as extortion and kidnapping. In Coatzacoalcos, Veracruz, in September authorities found the bodies of two former Pemex employees who had criminal records of fraud and hydrocarbon theft. An accompanying message indicated that the murders were related to a dispute between two crime groups. According to the Tabasco state attorney general, this violence has spread from Veracruz into the western part of that state.

The Impact of Energy Reform

Up to this point, Pemex and its contractors have been the bystanders caught in the crossfire of these turf wars. The advent of energy reform, however, means that foreign companies will be increasingly involved in tapping into Mexico’s energy resources. These new players will diversify the parties involved and will constitute more targets for organized crime to exploit.

The current level of insecurity in Mexico's energy sector will not significantly deter potential investors; multinational energy firms are accustomed to operating in far more hostile environments. On top of this, most foreign interest is centered primarily on the offshore blocks currently undergoing bidding. In time, though, foreign energy companies will move operations and employees to onshore projects and face the rising threat of hydrocarbon theft. This could not only bring about financial losses, but could also induce criminal groups to target staff with both violence and bribes. Moreover, any prospective partner organization could already have its own major corruption issues or itself be an extension of organized crime, as was the case for a Guanajuato-based crime ring operated by the owner of Petro Bajio, a company with Pemex contracts to transport hydrocarbons.

The Official Response

Homicides in Mexico have been gradually dropping since 2012. From January to October 2014, they fell to 13,129 compared to 18,337 during the same period in 2012. This is partly due to improved public safety institutions in violent hotspots but also to a shift in the internal dynamics of organized crime as a whole. This reduction has been not only a relief for the central government, but also for communities such as Ciudad Juarez, which has seen dramatic security improvements since the city’s peak drug-related violence in 2010. Criminal groups' diversification into fuel theft and other activities, however, has introduced a new challenge for authorities because it directly impacts the national economy and a sector the country is relying on for increased foreign investment.

The government's response has already started. In May the military deployed troops to Tamaulipas in response to rising criminal violence in the south. This ongoing push was designed to target the heads of the powerful Tamaulipas-based crime groups — groups that are the most active in exploiting hydrocarbon products nationwide. Thus far, a number of crime bosses have been captured or killed in these operations, including the leaders who likely had been providing stolen crude to the crime ring based in Guanajuato mentioned above. The six-month investigation that culminated in the dismantling of the crime ring, as well as the ongoing operations in Tamaulipas that are running parallel, highlight Mexico’s intent to combat both supply and demand. Meanwhile, Pemex announced in October that it would invest $228 million into improving its ability to detect illegal taps throughout its pipeline system.

Ending hydrocarbon theft is still an uphill battle for Mexico City. Mexico’s federal troops, still the primary tool in combatting organized crime, are already heavily committed to efforts at improving rule of law in multiple regions. Self-defense militias have formed in Michoacan and unrest has emerged from Mexico’s southwest over the Sept. 26disappearances of 43 students in Guerrero. Although national levels of criminal violence have dropped, states in central and southwest Mexico have seen sharp rises over the past two years in both drug-related violence and criminal activities such as kidnapping and extortion. Mexico City, as a result, has had to balance these competing security priorities.

Fuel theft will not disappear in the coming years and will instead likely expand. Any slowing of this expansion will require effective intervention from Mexican authorities. Because of competing priorities, this will be difficult. As foreign companies enter the energy sector, they will risk exposure to organized crime's hydrocarbon theft. The extent of this exposure will depend on the extent of Mexico City's efforts.

I

[Wahalla]

the work is bbeing done in Nigeria for a change...


Rivals face off for Bonga South




A general view taken on February 5, 2008 120 kms off the coast of Nigeria, south of Lagos, shows the FPSO Bonga.
JACQUES LHUILLERY

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By Iain Esau & Russell Searancke, London & Wellington
28 November 2014 00:45 GMT


Hyundai Heavy Industries and Samsung Heavy Industries sent bid documents by Shell as they fight for huge floater contract

SHELL has sent commercial biddocuments to two South Koreanrivals battling to engineer and build a mighty 225,000-barrels perday floating production, storageand offloading vessel for the $12 billion Bonga South West-Aparo project off Nigeria.
Sources said invitations to tender were delivered to Hyundai Heavy Industries and Samsung Heavy Industries, the only players Shell decided to shortlist after evaluating technical responses.
Replies are due back very quickly — the second week of next month — with the operator keen to make a final investment decision in early 2015, before Nigeria's general election in mid-February.
It is understood this quick turn-around is possible because Shell has been in talks with Hyundai and Samsung over indicative prices for some time, so all that is needed is a firm price.
This particular part of the tender procedure is also made fasterbecause Shell went through two earlier bid processes on Bonga South West-Aparo within the last 10 years so has a broad grasp of the issues.
One source in Nigeria suggested this fast-track manoeuvre could potentially see Shell selecting its preferred bidder as soon as nextmonth.
“They could pick a winner this year and there’s maybe a 30% chance they will do that.”
Placing a contract early could help put detailed local content plans in place, said one source,who cautioned that it is still unclear “whether or not a decision will be made before the end of this year or before the general election”.
Shell still has to iron out what one source called “investment and relationship” issues with the Nigerian government and Nigerian National Petroleum Corporation, the state oil company.
One project watcher said it was too early to pick a winner, pointing out that apart from price, local content will be crucial: “There’s a focus on ensuring Nigerians get work and training.”
This local content drive has been championed by the Minister of Petroleum Resources, Diezani Alison-Madueke, while the policy is being implemented by Ernest Nwapa, head of the Nigerian Content Monitoring & Development Board, who has played hard ball with overseas contractors and oil companies if they fall short of expectations.
A source said while “it’s definitely not a foregone conclusion”,
Samsung is perceived to have a light edge over Hyundai.
“I think it’s entirely possible that Samsung could win and I think that they are in a strong position. Hyundai is very aggressive and while this is an important contract for them, they have to come up with something pretty spectacular.”
Samsung’s position is largely based on its public commitment to investing in a Nigerian FPSO integration and fabrication yard with local player Ladol — a deal which underpinned its success in securing a contract last year to build another huge FPSO for Total’s Egina project.
Before losing out on Egina, Hyundai was the most successful FPSO contractor on Nigerian projects.
Whichever company wins the Bonga South West-Aparo order,FPSO integration work will have to be carried out at Ladol’s facilities in Lagos port.
The wining contractor is likely to be responsible for this integration work, although the super-major could potentially save money by dealing directly withLadol.
It is understood that Samsung would use the Lagos-based facility for some fabrication work.
Hyundai could opt to use and/or expand existing fabrication facilities — at Jagal-owned Niger-dock, for example.
It may also help to establish a new yard, perhaps in Bayelsa state but not at Brass which was part of its Egina proposal.
“Hyundai is going to have to show how they will do local fabrication, which will require investment in a local fabrication facility,” claimed a source.

[Wahalla]

an article on whisky production and consumption in Africa.... As a whiskey sipper i have expanded beyond Scotland...


Cheers! Whisky lovers discover new blends in South Africa

By Alex Court and Diane McCarthy, for CNN
December 3, 2014 -- Updated 1739 GMT (0139 HKT)

Better known for its wines, the business of spirit making is taking off in South Africa.











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South Africa's spirit makers

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STORY HIGHLIGHTS

• Climate conditions make the Western Cape well positioned to grow grain for
• South Africa once produced 55 million liters of brandy, but it has declined to less than 30 million liters
• In the year ending June 2014, Scotch exports to South Africa fell by 10%
• South African whisky made up 0.21% of global exports in 2013

CNN Marketplace Africa covers the macro trends impacting the region and also focuses on the continent's key industries and corporations.
(CNN) -- South African wines have long been appreciated by even the snobbiest of sommeliers, and now harder drinks from the country are also making a name for themselves.
Spirits from South Africa are winning awards around the world, and a little more than an hour from Cape Town, lies a region -- rich in herbs and grain -- that could explain the secret to that success.
"The Western Cape I think is the ideal place to make spirits," says Jeff Green, the process manager at the James Sedgewick Distillery, known for its Bain's Cape Mountain Whisky -- the country's first single grain whisky.
"We make whisky the same way as Scotland," explains Green, "but that is not necessarily the same throughout the world. You can get so many different flavors and styles."

Toasting South Africa's spirit business
Supplementary spirits

The taste of South Africa whiskey
And whisky isn't the only alcoholic fruit from this region. Even within the Western Cape there's a variety of tastes from the grapes and the way they are distilled.
Paarl is one area that has grown grapes for centuries, and is the home of prolific brandy makers KWV.
"We've got the 12-year old, it's one of my favorites," explains Peadar Hegarty, marketing manager at KWV. "You look at the color, it's nice and amber, it's got that nice glow to it."
Bitter brandy
Though brandy-making has been a main endeavor, the company is branching out.
"Brandy in South Africa actually carries a bit of stigma," Hegarty explains. He says that at its peak South Africa produced 55 million liters, but that has now declined to less than 30 million liters. "That volume has practically gone almost completely into whisky," says Hegarty.
We are blessed with a wonderful climate ample water here in the Western Cape so it's like a growth paradise
Independent spirits producer Roger Jorgensen



This shift is partly due to aspects of the drink that can't be tasted. Hegarty says South African consumers are looking for the image associated with high quality -- and they are willing to pay for that.
When brandy failed to take off with these drinkers, the company turned to cognac -- a bold move considering the drink can only come from France.
"Really, the only difference between cognac and brandy is the region it comes from," says Hegarty. "To be called a cognac, your grapes have to be picked in Cognac, in the western region of France, and you've got to bottle and mature in Cognac. So what we did is we formed a unique partnership with a cognac house and now we're the first South African company to brand and then sell Cognac."
But in bringing the South African touch to Cognac, KWV isn't just trying to offer new bottles and tastes. The company's CEO, Andre van der Veen, is focused on broadening their consumer base.
"You can start with a three-year old KWV brandy, but you can drink all the way up to a 30-year-old and then we got a cognac," Van der Veen explains. "We want to give people an experience for any drinking occasion," he continues. "[It is] not for every pocket, but for every occasion there should be a product which you could enjoy."
Wide whisky world
Bringing the celebrated French drink to South Africa may be one way for a South African brand to grow its market share, but some South African whisky makers are looking to other markets for growth.
"We are slowly exporting," explains Green from James Sedgewick Distillery. "In Africa, it's quite exciting for us, we see Bain's [whisky] having a huge potential there, and we also are releasing small volumes in Canada and the UK."
And there is some evidence forays into foreign territories could prove successful. The South African "Three Ships" bourbon was awarded a gold medal at this year's China Wine and Spirits competition, the first South African whisky to do so.
But if brands like these want to make a dent in the wider African market, they are going up against big competition.
According to the Scotch Whisky Association, exports of Scotch to Nigeria increased by 34% to £6.6 million ($10.3 million) in the first half of this year. But this isn't the only African country enjoying a sip of the golden nectar. Exports to Kenya in the same period jumped by 89% to £253,386 and the Senegalese market grew 68% to £326,386.
In fact, Daniel Mettyear, market analyst at International Wine & Spirit Research, describes the South African whisky market as "miniscule" in the global picture, making up just 0.21% of global exports in 2013.
"While South African whisky has been growing in recent years it has almost exclusively been taking place in South Africa," he explains. "Producers like Distell are beginning to export to the rest of sub-Saharan Africa and this may be the one region where South African whisky can enjoy some success. However ... this will be limited by competition from Scotch, U.S. and Irish Whiskey at the top and cheap but hugely successful Indian Whiskies at the bottom."
Small scale production
Yet, such questions of worldwide expansion are less of a worry for some of South Africa's enthusiastic independent producers chasing that perfect blend rather than bumper profits.
Part botanist, part foodie, Rodger Jorgensen makes gin, absinthe, vodka and more on the fringes of the Haweqwa Nature Reserve.
"We are blessed with a wonderful climate ample water here in the Western Cape so it's like a growth paradise," Jorgensen explains.
"What we try to do is to allow our products that come through our hand on process, to actually express that and we want to represent where we live...people are drawn to that and we try and keep our offering as fresh and as varied as we possibly can. And that in itself is a joy."

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Nigerian oil workers go on strike

Fuel was sold on the black market during a previous strike
Continue reading the main storyRelated Stories

• Nigeria profile
• The Nigerian female oil executives
• Nigeria devalues currency on low oil

Nigeria's two main oil workers' unions have begun a nationwide strike, threatening to hurt the output of Africa's largest oil producer.
BBC reporters say long queues have formed at many petrol stations.
The unions, Pengassan and Nupeng, said the strike would continue until the government addressed its concerns.
These include the adoption of the delayed Petroleum Industry Bill, aimed at overhauling the sector and maintenance work on oil refineries.
The unions frequently go on strike or threaten to strike.
This time, the two unions were initially demanding the reinstatement of representatives who had been dismissed by oil companies, but now their list of complaints has grown.
They are now protesting that the government has allowed Nigeria's oil refineries to fall into disrepair and that the poor state of the country's roads is hindering the transport of oil.
They are also asking for the price of petrol to be reduced and oil theft to be stopped.
"We've commenced the strike. It will affect oil production, since all operations are on strike," Pengassan chief Babatunde Oke told Reuters.
However, an oil executive said the strike was not expected to affect output, because it would require the co-operation of large numbers of workers at production sites who would be unwilling to go that far.
"It's very difficult to shut them down, and once they do, it would take them a week to get them back up. They never do it. That's the last thing anyone wants," an oil executive told Reuters.
The BBC's Will Ross in Lagos said most of the unions' demands seemed "unrealistic, especially with an election looming".
"The refineries are not suddenly going to be fixed because of this strike. Some oil industry watchers suggest the unions are simply trying to force the government to pay them off and get a hefty Christmas present," he added.
A strike in September had little impact on oil production.
Many Nigerians, whether Christian or Muslim, travel home over the Christmas and New Year holidays and so they are stocking up on fuel now, in case of shortages in the next couple of weeks, analysts say.

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Nigerian luxury handbags: making a mark overseas

By Cecile de Comarmond | AFP – Sun, Dec 14, 2014

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Mention northern Nigeria and the first thing that may spring to mind is Boko Haram. Zainab Ashadu is hoping to change that -- by selling designer handbags.
The Nigerian designer is the brains behind the Zashadu brand, whose modern, colourful creations use the ancient art of tanning and leather-dyeing from the country's north.
"I think people like the story behind the bags. They like the fact that the bag has roots and origins," the 32-year-old told AFP at her bustling workshop in a working class district of Lagos.
From the cramped premises in Festac, which buzzes with the sound of Singer sewing machines, a team of about half a dozen artisans make between 200 and 300 bags every year.
Ashadu's parents were from the north, which is these days rarely out of the news because of the Islamist insurgency that has been raging since 2009.
But the region has long been known for its high-quality leather, which the designer turns into clutch purses and handbags that sell overseas for between 150-800 euros ($180-980, 120-630 pounds).
The leather comes from the north's biggest city, Kano, goatskin from the ancient northwestern city of Sokoto as well as python skin from snake farms in the region.
- Sustainability, know-how -
Unlike European fashion houses, which import raw leather from Nigeria and then tan and dye it overseas, Ashadu decided to make use of the centuries of know-how of artisans in Kano.
"It is very important for me to work in a sustainable way," she said.
"I work with small families of tanners, the animals are traceable, we use vegetable dyes and other environmentally friendly dyes, and also the dyers work all together to save energy."
The designer gets her inspiration from hours of hunting for bargains in the maze of stalls in the huge Mushin market, in the Lagos suburbs.
The market sells Nigerian leather off-cuts and rejects, particularly from Italian fashion houses.
"It's so vibrant... there's so much leather available and sometimes the sellers have no idea of the quality of what they sell," said Ashadu.
"There's antelope -- that is very soft -- there's goatskin, sheepskin..."
From there, the material is turned into bags by her team, all of whom have been trained at a specialist school of leatherwork in the northern city of Zaria.
- Adaptability key -
Ashadu is one of an increasing number of returning Nigerians or "repats", chancing their arm in their home country after years spent overseas.
She spent her early childhood years in Lagos but was a teenager in London, where she was variously a model, actress, buyer and architecture student.
She came back in 2010 and has had to adapt to a different way of doing business.
"You need to be tough-skinned, adaptable and to have a great sense of humour," she said.
"Nigeria is a very hard place to... do anything, let's put it that way. It's definitely very hard to run a business. But it's more earthy. You feel like your feet are on the ground."
Understanding and adapting to a different style of doing business is key to getting ahead, with some overseas firms looking to invest in Nigeria put off by red tape and logistical constraints.
Power cuts that often last more than 12 hours are a major problem and force businesses to invest in huge, costly electricity generators.
At Ashadu's workshop, in a modest house belonging to her family, power comes from a small generator.
What's important is adapting as much as possible to how her employees work, rather than trying to apply to the letter what she learnt at the London College of Fashion.
- 'Made (Paris: FR0010328302 - news) in Africa' -
Zashadu bags have won a small but loyal following locally. Private sales have been held in unexpected locations such as a hotel suite with champagne and macaroons and at an upmarket yacht club.
In the last year, the brand, which is marketed online abroad, has established a presence in boutiques in London, Miami, Dublin, Johannesburg and most recently in Paris.
French designer Charlotte Ziegler, who sells Zashadu bags at the Franck et Fils department store, said she was intrigued by Ashadu's unusual profile and also its "sustainable luxury".
But she admits it was a risk.
"For 200 or 400 euros, people sometimes prefer to buy a product with a (recognised) designer label," she said.
Ashadu is confident and knows that she's tapped into a trend.
"People love Africa and Africa is something that is new in this way and people love to jump on bandwagons," she said.
"And this one ticks all the boxes: it's made in Africa, it's beautiful-looking, it's made sustainably, it's international."

[Wahalla]

they validate my opnion on this subject You are here: Home > Business 1 2 3 4 5

Fastjet fares will boost trade in Africa - Zimba

By Stuart Lisulo | Updated: 06 Jan,2015 ,11:01:55 | 1767 Views | 0 Comments[ - ] [ + ]

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FASTJET Zambia Plc says its low-cost fares will boost intra-Africa trade within the sub-region. Fastjet, a low-cost budget airline that established itself in the Tanzanian market in 2012 as Fastjet Tanzania, has seen Zambia to be its second African base this year following receipt of an Air Service Permit (ASP) from the government last year. The airline, however, is still awaiting issuance of an Air Operating Certificate (AOC) to enable full commencement of operations. Fastjet Zambia commercial manager Patricia Zimba said its low-cost fares, priced as low as US$20 for scheduled domestic routes and US$50 for international routes, have already made a significant impact for traders within the sub-region who can now afford to fly to strategic destinations. “The low-cost model is something that is new on the Zambian aviation market and what is exciting is that we are providing low-cost fares. So, for a trader in the COMESA market, this actually works for them and they don’t feel disadvantaged. The presence of us in the market is going to boost trade between any of the countries because of the low fares and type of equipment we are offering,” said Zimba. Fastjet Zambia’s business strategy is to make air travel more accessible to all Zambians through its affordable air fares as opposed to taking the market share from existing operators already servicing existing domestic and international routes. The airline expects to launch operations in Zambia during the first half of this year and intends on establishing several routes between Lusaka and respective domestic and international destinations in the sub-region, increasing first-time flyers.

- See more at: http://www.postzambia.com/news.php?i....heQIe2XM.dpuf

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first month profit!!!!!!!

Fastjet shares flying high as it announces first ever monthly profit

By Ben Marlow | Telegraph – 23 hours ago

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FJET.L	1.376	+0.326
ESYJY	99.71	-0.29

Low cost African airline boosted by jump in passenger numbers in December and falling fuel costs
The African no-frills airline started by easyjet founder Sir Stelios Haji-Ioannou has posted its first profitable month of trading more than two years after its creation.
The start-up, which harbours ambitions to become the first pan-African no-frills carrier, said strong demand over the holiday season and rapidly falling fuel costs had pushed up revenues and passenger numbers in December, helping it to post positive pre-tax earnings for the first time.
The announcement sent its shares soaring by 25% in early Monday trading to 1.1p, valuing the company at £18.3m.
Fastjet (LSE: FJET.L - news) was founded amid great fanfare in 2012 with plans to become the Easyjet (Other OTC: ESYJY - news) of Africa by offering affordable air travel in a continent where road transport can be difficult and dangerous and travel between countries often takes days. Its first flight was from Dar es Salaam to Mwanza in Tanzania.
However, heavy losses and a cash drain has left the venture struggling.
In May 2013, auditors at KPMG flagged doubts about Fastjet’s "going concern" status, warning over its £33m losses, £12m of cash spend and a heavy dependence on adding new routes and securing fresh funds.
By March 2014, the company had only £900,000 left from a £15m cash call the previous summer.
However, a month later it had raised £11m from backers including Sir Stelios, increasing his stake to 10%.
In December, fastjet operations in Tanzania carried a total of 65,653 passengers, a 75pc increase compared to the same month last year, it said. The airline also flew its one millionth passenger.
It said that the plummeting oil price would lead to a further 13pc fall in fuel costs in January and additional decreases in February and March.
Unlike most airlines, fastjet doesn't pre-purchase or 'hedge' against future fuel prices. Instead it pays current market rates for fuel and is therefore realising substantial benefits from the reduction in the cost of crude oil, the airline said.
"The announcement of our first profitable trading month is a great achievement and a huge milestone on the road to becoming the first pan-African low-cost airline. We have already proven that the low-cost model works to stimulate traffic and we have now shown that it can create a profitable business,” Ed Winter, the airline's chief executive, said.
Mr Winter, a former easyjet director, has previously stated that fastjet intends to have 24 aircraft in four bases, carrying six million passengers and making $500 million a year within four years.

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Fastjet hopes to start Kenya operations in June

Written by MARGARET WAHITO // January 26, 2015 //

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General Manager East Africa Jimmy Kibati says this is however dependent on when airline gets regulatory approvals especially the Air Service Licence (ASL) from the Kenya Civil Aviation Authority/FILE

NAIROBI, Kenya, Jan 26 – Fastjet, an international low- cost airline, is hoping to commence its operations in Kenya starting June this year.General Manager East Africa Jimmy Kibati says this is however dependent on when airline gets regulatory approvals especially the Air Service Licence (ASL) from the Kenya Civil Aviation Authority (KCAA).
“If you were to ask me, I would like to start like yesterday. But you know it’s a very engaging process because if you look at the set up structure, one needs to get the planes; we need to hire the employees, pilots and we need to get some licences checked off. Give or take, if you were to give me an approval today, I will be flying by June,” Kibati said during an interview with Capital FM Business.
The airline which applied for the ASL in August 25, 2014 hoped to start operations in December last year, but has delayed after the approval was deferred in October through a gazette notice.
This is after a number of local airlines including Kenya Airways (KQ) lodged a formal objection in terms of Licensing of Air Service Regulations, 2009, signalling rising competition in the low carrier airline business.
Kibati is however optimistic that the process will be complete this year for operations to begin “as soon as possible.”
“As per Air Service Licensing (ASL) regulation, all formal applications are gazetted and any Kenyan public organisation, individual or otherwise is provided an opportunity to object in writing at least one month before the public hearing,” Kibati says.
READ: Budget airline Fastjet flies into EA market
To comply with local airline ownership rules in Kenya, 51 percent of the equity of Fastjet Kenya should be held by a Kenyan national.
The Kenya ASL application process also required Fastjet Kenya to formally submit a detailed business plan including its proposed operation, network, aircraft specification, operational plan and commercial strategy.
“In general, in a very quick process, it should take a very short time; two to three months. The KCAA board decides after vetting all the applications and check the ones which meet the criteria. And apart from the criteria, they also vet the capability of being a genuine legal entity that fit to operate in Kenya,” he says.
The budget carrier plans to employ up to 80 employees at the initial stage which is within a period of year from initiation. Kibati says this will include pilots, cabin crew and managers, with other positions being outsourced.
“Apart from flying within Kenya, our other key market is the East African market; Uganda, Rwanda, Tanzania, Burundi and South Sudan. Going beyond, we are also looking at Zambia and South Africa which is a bit of a longer stretch for us because we are want markets that are not longer than three hours of travel,” he explained.
Fastjet kicked off its operations in Tanzania two years ago and it is also in the process of seeking separate approvals to fly into Kenya under the Bilateral Air Service Agreements.

[Wahalla]

Fastjet Tanzania notches up one million

THRILLED: Fastjet’s General Manager for East Africa, Jimmy Kibati, welcomes Grace Makazi, who was given two free tickets for being passenger one million when she arrived in Dar es Salaam from Mbeya last week

DAR ES SALAAM, Tanzania – Low-cost airline, Fastjet has announced flying over one million passengers in Africa since starting operations in Tanzania, two years ago writes LEONARD MAGOMBA.According to Fastjet, the lucky passenger who brings the number to a one million passengers is Grace Makazi. She was welcomed by Fastjet’s General Manager for East Africa, Jimmy Kibati and other staff in Dar es Salaam when she arrived from Mbeya.“Established in 2012, Fastjet has flown over 1,000,000 passengers with almost 40% being first time flyers benefitting from fares as low as $20,” Kibati said.Kibati told East African Business Week, when it was given the nod to start flight services as local airline in Tanzania, instantly Fastjet started its flights services and within the year 2014 alone, it flies over 90%.The Tanzanian-based airline has its sights set on becoming the first pan-African budget airline, so far offering international flights to Johannesburg in South Africa, Lusaka in Zambia and Harare in Zimbabwe.Locally it covers routes between Dar es Salaam, Mwanza, Kilimanjaro, Mbeya with recently South Africa’s Oliver Tambo International Airport to Zanzibar.With ambitious plans to create Africa’s first pan-continental airline, Fastjet has introduced international standards of safety, quality, security and reliability with 90% of all flights arriving on time. Low-cost is quite simply the avoidance of costly frills, offering customers the lowest possible fares in addition to pay-as-you travel extras. This affords passengers the flexibility to pay for additional services such as a bag or refreshment rather than having to pay for it regardless whether you want it or not. According to Fastjet’s Interim Results for the six months ending June 2014, the airline’s numbers are on the rise with first-half revenues growing by 96% to $19 million, after recording a 41.5% increase in the number of passengers flown.By Leonard Magomba, Sunday, February 01st, 2015

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the buisness of buisness in Africa... whpo loses the consumers..


Kenya’s approach to aviation cause for concern


10 more breaking global eTN alerts at this time

BY PROF. WOLFGANG H. THOME, PH.D., ETN AFRICA CORRESPONDENT | FEB 04, 2015





Remarks attributed to Kenya’s Deputy President Ruto, who earlier in the week opened an aviation workshop in Nairobi, have caused consternation and concern in the East African region and beyond.
Ruto was quoted to this correspondent to have said, among other things that while Kenya would welcome more airlines to fly to the country it will also not “tolerate unfair competition.”
From reactions received it is clear that both Uganda and Rwanda will seek an explanation if this could be the reason for the Kenyan aviation regulators imposing a capacity cap, after first delaying RwandAir’s fifth freedom right flights from Entebbe to Nairobi by several weeks, or if Kenya could be welshing on the approved return fare charged by RwandAir on the route.
Officials at the flight launch in Entebbe last week made clear reference to the obstacles they had to overcome, as the Kenyan aviation regulators made them jump over multiple hurdles and through a series of hoops, ostensibly to protect their own airlines, two of which fly on the route from Nairobi to Entebbe.
“They are biased in favor of their own. They are the main reason fares were so high until RwandAir came on the market. Kenya is not a fair partner, and I am beginning to see some merit in the reluctance of Tanzania to bow to pressure on demands which will only benefit Kenya,” ranted a regular aviation contributor from Entebbe.
Meanwhile in Tanzania the comment was immediately interpreted as a blanket approval by the Kenyan Deputy President to keep Fastjet out of the Kenyan skies. For nearly a year now Tanzania has designated Fastjet as their airline to fly from Dar es Salaam to Nairobi, demanding reciprocity vis-a-vis the existing Bilateral Air Services Agreement, under which presently two Kenyan airlines but only one Tanzanian airline flies on the route. “The way we were treated in Bali when we met at ICAN [International Civil Aviation Organization (ICAO) Air Services Negotiation Event] basically tells the story. They raised issues on the nationality standing of Fastjet, but there are no issues. Tanzanian individuals hold the required majority of 51 percent shares in Fastjet. The reason they keep that airline off the route is simple. They fear for a major loss of market share and that their artificially expensive pricing comes crashing down. To add salt in the wound, they are asking for more frequencies for their own, saying there is unsatisfied demand. Let Fastjet fly to Nairobi and that demand will be taken care of at prices people can actually afford,” said a Dar es Salaam-based aviation source. All eyes are now indeed on the Tanzanian regulators to see if and when retaliatory measures are imposed, a situation thought not helpful either for the talks tomorrow between the Kenyan and Tanzanian tourism delegations in Arusha.
“I hope cooler heads prevail tomorrow,” added a Nairobi-based tourism stakeholder. “We are keen to see more people from the region fly to Mombasa to help fill those empty beds, but the way things are going, we will be caught up in that air war as you described it. And like it or not, we know that our own airlines have been blocking the likes of Qatar and others to fly to Mombasa. It is time that national interest takes over from company interest, especially when that company constantly fails to put international flights to Mombasa on the market.”
Meanwhile two regular sources, close to the Transport Ministry and close to the regulators, have kept silent on questions if the Deputy President’s remarks were possibly aimed at Qatar Airways, whose CEO last month expressed continued interest to fly to Mombasa but qualified the comment when putting the ball in Kenya’s court vis-a-vis traffic rights. “Ask the DP what he meant and whom he meant and please leave me out of it,” was the curt response from one of them, understandably not willing to lock horns with the Deputy President. Time as usual will tell where this is heading and if the Kenya coast tourism stakeholders can expect some fundamental changes or will have to continue relying on non-scheduled traffic and the two foreign airlines presently permitted to fly into Mombasa, Turkish, and Ethiopian, with the latter incidentally the greatest rival of Kenya’s national airline.

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Fastjet January passenger figures up 78%

By Phil Davies |09 February 2015 at 08.22 GMT 0 Comments



African budget airline Fastjet saw January carryings rise 78% year-on-year to a total of 55,695 passengers.
The load factor rose by nine percentage points to 69% while the on-time performance was 94%.
The airline's rolling 12 month total of passengers carried to January was up by 68% to 621,656.
Interim chairman and chief executive Ed Winter said: "January is traditionally the month of the year when airlines see the lowest consumer demand.
"We are therefore very pleased with our trading figures as we build upon our market leading position in Tanzania.
"We have clearly demonstrated that our low-cost model is stimulating the market and encouraging more and more people to use our reliable and affordable flights rather than road transport."
Fastjet launched its spring flying programme last week featuring a the new route between Kilimanjaro and Mwanza.

[kia027]

fastjet is quickly going places 94% on time rate is excellent too