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Recruitment of women and overseas employees in the City has sharply increased over the past year, according to recruitment firm Astbury Marsden. Female workers in the square mile grew by nearly half, rising from 20 per cent of the workforce in 2013 to 29 per cent in 2014. The number of employees originally from Asia also rose with 5 per cent of financial sector workers now coming from China, up from 3.8 per cent last year, while 12 per cent of the workforce is Indian, up from 11 per cent last year. In comparison, only 0.7 per cent of the wider UK population are ethnically Chinese and 2.5 per cent that are Indian. The firm said that this surge in female appointments is evidence that the gender diversity programmes are making an impact. Investment banks, have schemes that target female undergraduate and graduate students, as well as return-to-work initiatives to attract experienced women back to the industry after taking they've taken a career break to bring up a family or for other reasons. In addition, researchers said that some job areas are attracting and retaining female workers with greater success than others. For example, fund services witnessed an increase in the proportion of female workers, with women accounting for 64 per cent of the workforce this year, while ratings agencies had the most gender balanced workforces. Researchers said that the employer trend for hiring people with Indian and Chinese backgrounds is partly due to the increasing importance of companies from these countries and the City’s determination to be a regional hub for those companies.
Gender equality in workplaces across the globe is unlikely to be realised until 2095, a report from the World Economic Forum (WEF) said. The ninth annual study which measures female and male equitable life chances in terms of the employment, health, education and political empowerment, revealed that the gender gap for economic participation and opportunity now stands at 60 per cent worldwide, having closed from 56 per cent in 2006. The WEF said that based on this trajectory, it will take 81 years for the world to close the gap completely. Of the 142 countries measured, not one country has closed its overall gender gap, the Global Gender Gap Report said, but Nordic nations including Finland, Norway and Sweden, continue to lead the way in gender-equality. Iceland was ranked the most “equal” country for the sixth time, while Yemen was the least equal country ahead of Pakistan and Chad. The report found that overall gains for certain countries were offset by reversals in a small number of countries. For example Nicaragua climbed four places to rank sixth with strong performance in health, education and political gaps; Rwanda entered the index for the first time in seventh place due to high economic and political participation, and the United States climbed three places to 20 after narrowing its wage gap and improving the number of women in parliamentary positions. For the first time in the report’s history, the UK has dropped out of the top 20 to 26th place after average wages for women in the workplace decreased by more than £2,000 in a year. In 2013, the average female in the UK was earning £18,000 compared to £15,400 in 2014. Male earnings remained consistent at an average of £24,800 per annum. However, there was a small increase in women attaining senior posts, up from 34 per cent to 35 per cent, and the UK now has the highest proportion of young women in further education, with 72 per cent enrolling compared to 53 per cent of men. While the gender gap was narrowest in terms of health and survival, with 35 countries having closed the gap entirely, the gap in areas of employment and wages, in particular, remains stubbornly wide across the world.
Black, Asian and ethnic minorities (BAME) are excluded from key backroom staff roles in UK football, figures from the Professional Footballers’ Association (PFA) show. According to the most recent data collected at the beginning of last year, ethnic minorities occupy fewer than 4 per cent of roles, including jobs as a physiotherapist, goalkeeping coach and technical director. Despite 30 per cent of players in the top four divisions originating from BAME backgrounds, just 2 per cent of managers are black, Asian or an ethnic minority. The Football League has historically faced criticism for the under-representation of BAME managers and coaches in the sport. However, these figures suggest the problem is more widespread than first realised. Plans include the introduction of a talent identification programme to provide increased opportunities for mentoring and professional development and help BAME coaches tackle the “closed shop” attitude in the sport. BAME candidates currently make up 18 per cent of PFA coaching courses, but Rabbatts said increasing the number of ethnic minority representatives on selection boards would help improve the numbers on the FA-run, invitation-only Pro License courses.
The next general funding round (Spring 2015) of the UK Education Endowment Foundation (EEF) fund is now open to applications. Supported by the Department for Education (DfE), the EEF fund provides grants to help bring forward innovative proposals that aim to improve performance in the most challenging schools. In the first instance funded projects should fit within one of the following four broad approaches: Testing and incubating new ideas which have a proof of concept; Bringing initiatives from other contexts to disadvantaged students and schools (this could include, for example, programmes from overseas or from the independent sector); Scaling up initiatives which have been proven to work on a modest scale; Developing projects with potential that have not, to date, been delivered or evaluated effectively. The overall objective of the programme is to break the link between family background and educational achievement, ensuring that young people from all backgrounds have the opportunity to fulfil their aspirations and make the most of their talents. Eligible applicants include: Registered charities, Not-for-profit organisations, Individual schools, Clusters of schools, Teacher groups, Universities, Colleges, Academy chains, Mutuals or any combination of the above. Applicants who are not themselves target schools must work in partnership with such schools or be able to demonstrate that their project will benefit pupils in these schools. The EEF will would not expect to fund a project which reached less than 100 students and ideally would want it to cover more than one school. The smallest grant is likely to be around £50,000 per year. The next deadline for applications is 1 April 2015 (5pm). For further information, visit the EEF website
Registered charities and social enterprises based and working in the UK have a new source of loan funding in the £30 million Third Sector Loan Fund. Launched by Social and Sustainable Capital (SASC) in partnership with Social Investment Business (SIB), Big Society Capital, and Santander, the Third Sector Loan Fund will run for 10 years. It will provide both secured and unsecured loans of between £250,000 and £3 million to registered charities and social enterprises working to improve the economic and social well-being of individuals, particularly those who are vulnerable and disadvantaged. The funding is aimed at diversified sectors such as, but not limited to, jobs, education and training, healthcare, disability services, children and families, housing, criminal justice, social and financial inclusion, community development, and ageing. The fund will finance activities which allow social ventures to scale up, increase the impact they make, and generate income to repay their loan with interest. It will aim for example to provide investment social enterprises need to expand and compete with commercial organisations to take on new contracts to deliver public services. Three different investors have joined together to create the fund. Social investment bank Big Society Capital has committed £15 million of risk capital; high street bank Santander is providing £13.5 million of senior debt with a fixed income return; and social finance company Social Investment Business (SIB) has provided a repayable grant of £1.5 million. Expressions of Interest are being accepted. There is no closing date. Full details can be found on the Social and Sustainable Capital website.
Revolutionary shifts in the way workplaces operate and what employees want from their job are predicted to have a “dramatic” effect on the global labour market in the next 15 years, a report suggests. According to findings from consulting firm CBRE and China-based property developer Genesis, up to 50 per cent of occupations today, including process work, customer work and middle management roles, will not exist by 2025 as people look to take up more creative professions. The report – Fast Forward 2030: The Future of Work and the Workplace – suggests that advances in technology and artificial intelligence will help to transform businesses and the work people do. More than 200 business leaders and young people from Asia, Europe and North America were surveyed for the report, which found that employees now seek happiness, purpose and meaning in their job role, rather than financial success. The majority of interviewees (85 per cent) said that work and life would become more integrated by 2030. As the nature of work changes, so too must the workplace in which employees operate, the CBRE said. For 77 per cent of survey respondents, the physical workplace environment will become more important, even though the ability to work virtually increases with the development of technology. The report is supported by findings from Oxford University and Deloitte, which suggests that 35 per cent of existing jobs in the UK – including office and administrative support; sales and services; transportation and construction – are at risk of being replaced by robotics.
The typical worker entering the UK labour market today will have on average nine jobs and one complete career change, across 48 years of their working life, a new report has revealed. According to insurance and pension firm LV=, current employees in the UK move roles every five years, in search of more money or to advance their career, with the majority seeing each job role as a ‘stop-gap’ rather than a significant career move. Projections estimate that 1.5 per cent of new workers will have just one job across their working lives, making the ‘job for life’ analogy “virtually extinct”. The research conducted on behalf of LV= by PCP Market Research, combined results of an online panel of 3,000 employed or retired Britons, and weighted the answers to be representative of the British working population. It revealed a sharp shift from past generations, with today’s workers facing a significantly longer working life compared to their grandparents. The average retirement age for today’s retired is 59 years. But new workers entering the UK workforce expect to work until aged 66, and 23 per cent will work until they are over 70, or will never retire. According to data from the Office for National Statistics, new workers can also expect a lower full-time starting salary than their parents, who would have received an average starting wage of £3,000, equivalent in real terms to approximately £17,000 today. Record-low real-term wages, driven down by a buoyant labour market, mean that anyone starting a job today can expect to collect an average £14,000 in their first year. While today’s young people seem to be worse off than previous generations, the research suggested that new employees are actually entering a healthier labour market overall, with unemployment levels at a record low, and annual leave entitlement almost double what it was a decade ago.
The gender pay gap is at its narrowest since official records began in 1997, according to the UK Office for National Statistics. Men now earn 9.4 per cent more than women, down from 10 per cent in 2013, which equates to about £100 a week. However, rather than women’s pay increasing, the change was due to men's wages falling faster than their female colleagues in real terms. Pay growth between 2013 and 2014 was slow, at just 0.1 per cent, well below the rate of inflation. But overall the trend has been towards increased wage equality down from 17.4 per cent in 1997, despite a relatively large increase in pay disparity between the sexes between 2012 and 2013. TUC general secretary Frances O’Grady highlighted the data showing that part-time women’s pay still lags some way behind that of their full-time colleagues. The report revealed that nearly six million women work part-time and earn £5.15 less per hour than full-time men, and that two in five of part-time women earn less than the living wage. The full-time gender pay gap may have closed for younger women but it widens dramatically for women in their 40s and 50s and far too many women still find they have to take a step down to access flexible or reduced hours once they become mothers, and their earnings never recover even when they return to full-time work, she said
The CIPD has partnered with careers advice specialists Plotr to create a virtual HR world to highlight the range of careers the function has to offer. Based on the idea of gamification, where tasks are turned into a game to encourage engagement, the world is designed for 11 to 24 year olds and showcases career stories, opportunities and advice on how to get into the profession and what qualifications will support their learning. Young people who may not have considered going into the profession can use the site to learn about opportunities across the HR industry. The site enables them to explore future career options and begin to understand what a long-term career in HR might look like. The ‘HR World’ features on Plotr’s homepage and joins existing ‘worlds’ of which there are over 30 including facilities management, energy, legal, sports and fitness and sales and marketing. The worlds are a gateway to articles, videos, in depth career and employer profiles, plus the jobs and experience finder, and provide critical career insight for users.
Almost half of UK businesses have turned to migrant workers as they struggle to find local talent, a report from British Chamber of Commerce (BCC) has found. Staff from overseas are also said to have a more positive work ethic, have little or no time off sick, and pick up new skills quickly, according to the 2,885 survey respondents across the UK. Results of the BCC’s 2014 Workforce Survey showed that 45 per cent of UK firms hire migrants from within and outside the EU. Twelve per cent of businesses said EU migrants made up more than 10 per cent of their workforce, while 4 per cent said non-EU migrants accounted for more than 10 per cent of staff. The BCC’s survey found that 92 per cent of businesses have identified a skills shortage among their workforce in at least one key area, and the catering and accommodation sectors were most likely to turn to migrant talent, with 70 per cent of these firms already doing so. Despite the perception that increased immigration would lower average wages in the UK, just 4 per cent of companies cited a reduced wage bill as motivation for employing migrant workers, the BCC found. This supports the findings of the CIPD report on migration published in September, which showed that just 12 per cent of employers said they recruited migrant workers because they have lower expectations about pay and conditions.
Around one in seven employers (16 per cent) were unable to fill all their entry-level vacancies in the last three years, despite a greater number of young people gaining qualifications since the recession, a report has revealed. While candidates first entering the labour market are reportedly more qualified, 43 per cent of employers with unfilled entry-level vacancies said too few applicants had sufficient ‘employability’ skills such as literacy, numeracy, teamwork and self-management, as well as a general positive and proactive approach to work. The report, UK labour market insights – the entry-level dilemmapublished by totaljobs.com in partnership with IPPR, suggests that there is a “serious mismatch” between the skills held by entry-level candidates and those demanded by employers. Spencer Thompson, senior economic analyst at IPPR, said an over-emphasis on recruiting students straight from university means employers miss out on a whole pool of entry-level talent, which he called “the forgotten 50 per cent”. However, Stephen Isherwood, chief executive of Association of Graduate Recruiters (AGR), said employers shouldn’t be discouraged from investing in degree-holders, and in fact 54 per cent of graduate recruiters are also active in schools. A panel of experts at the report’s launch event suggested that boosting careers advice in schools and targeting students long before university would help prepare young people for the labour market. The report said that the hospitality and leisure industry has the most widespread difficulties with entry-level recruitment. More than one in five employers in the sector report issues.
Stalled wages and the uneven distribution of employment has driven inequality across the world, according to the latest Global Wage Report from the International Labour Organization (ILO). In 2013, wage growth in real terms, adjusted for inflation, fell to 2 per cent on a global basis, compared to 2.2 per cent in 2012. It has yet to catch up to the pre-crisis rates of about 3 per cent. The modest rise in salaries was driven by emerging and developing economies, where wages increased by 6.7 per cent in 2012 and 5.9 per cent in 2013. In contrast, real wages for developed economies were flat in 2012 and 2013, growing by 0.1 per cent and 0.2 per cent, respectively. In some cases – including Greece, Ireland, Italy, Japan, Spain and the United Kingdom – average real wages in 2013 were below their 2007 level. Wage growth has slowed to almost zero for the developed economies as a group in the last two years, with actual declines in wages in some, according to the ILO. This has weighed on overall economic performance, leading to sluggish household demand in most of these economies and the increasing risk of deflation in the Eurozone. The ILO reported vast differences between regions, for example, in 2013, wages grew by 6 per cent in Asia and 5.8 per cent in Eastern Europe and Central Asia but only 0.8 per cent in Latin America and the Caribbean. According to the Low Pay Commission, British wages have fallen more sharply than at any time since records began in 1964. The research also suggested a growing gap between wages and productivity. Between 1999 and 2013, labour productivity growth in developed economies outstripped real wage growth, which has translated into a declining share of GDP going to labour while an increasing share goes to capital. Productivity has long been discussed in the UK employment market, but according to the ILO report, the UK faired relatively well in the global rankings. Despite this the rise in inequality in the UK and the United States was described as “stark.”
WesBank, a division of FirstRand Bank Limited and South Africa’s market leader in vehicle and asset finance, has signed a memorandum of understanding with the National Automotive Council of Nigeria to offer vehicle finance to retail and corporate purchasers. The agreement aims to stimulate the sale of locally assembled vehicles in Nigeria. The Nigerian government recently restructured their local economy to attract investment from vehicle manufacturers and grow the supply of locally-manufactured vehicles. The agreement with the NAC allows WesBank to work closely with the NAC to develop vehicle financing solutions specifically for those vehicles built in Nigeria with the aim to make them more affordable for the average Nigerian consumer. WesBank is already represented in other African markets including Botswana, Lesotho, Namibia, Mozambique, Swaziland, and Zambia. The move to Nigeria will extend its reach to the northern parts of the continent, presenting an opportunity to participate in some of the larger African economies where, over time, vehicles sales are expected to experience substantial growth.
Bharti Airtel African leading telecommunications service provider with operations in 20 countries across Asia and Africa has announced plans to launch a cross border money transfer product in East Africa. This is a first in market initiative across Africa and will enable Airtel Money customers to send, receive and withdraw money from their Airtel Money wallets. The pilot phase kicked off in November 2014 targeting Kenya, Uganda, Tanzania and Rwanda. This follows an approval by Central Banks of the Governments of Rwanda, Kenya, Tanzania and Uganda to launch this initiative. The next phase of this initiative will roll out the service to other Airtel operating countries within the coming year. According to the company, this is a key milestone for Airtel Money customers because a big virtual barrier has been removed and customers will be able to transact with ease, across national borders. The service will extend convenience by way of cost efficiency and reach while facilitating remittances and small trades within East Africa. The pilot project will also enable Bank of Africa (BOA) customers in Kenya and Uganda to send and receive money across the two countries. According to the East Africa Community, mobile commerce is gaining importance in the region for its huge role in speeding up transactions – saving time and money for people and businesses. The introduction of more sophisticated financial services, such as credit, savings and insurance schemes through partnerships with financial-services providers has positively changed the way businesses operate speeding up key elements of regional integration.
Bharti Airtel, a leading telecommunications services provider with operations in 20 countries across Asia and Africa, has unveiled a new training programme targeting to impart new technological skills to thousands of youth in Gabon in partnership with United Nations Educational, Scientific and Cultural Organization (UNESCO). The three-year initiative - dubbed ‘’Train My Generation: Gabon 5,000’’ - is the first of its kind that UNESCO has partnered with a private organisation in Sub-Saharan Africa. It aims at offering a scientific and entrepreneurial training to 5,000 of people (aged 18- 35 years) and high-school teachers in Gabon - through information and communication technology (ICT). Initially, cyber centres equipped with laptops and servers will be created in schools in Libreville, Port Gentil, Oyem, Franceville, Bitam and Lambaréné. The 5,000 young people targeted in the programme will receive basic training in ICT during the first phase of the project, which will also provide online training to one hundred science teachers in secondary school. Teachers will use their skills to provide online assistance to 15,000 high school students preparing for their final year examination. But in view of the access to the platform used to support this educational facility, the academic support should reach a far greater number of students. Small groups of students will learn how to develop mobile applications, manage cyber cafes and implement cooperative service centres throughout the project Train My Generation: Gabon 5000.
Kenya ranks amongst three nations perceived to be the most attractive investment destinations in Sub-Saharan Africa, a new study shows. The other countries according to the survey by global consultancy firm Ernst & Young include South Africa and Nigeria. These countries account for over 40 per cent of the total foreign direct investment (FDI) projects in the continent, according to the survey whose findings were released yesterday. Angola, which is the fourth-largest recipient of FDI projects is similarly perceived to be the fourth-most attractive investment destination. According to the report dubbed ‘2014 Africa Attractiveness’, Johannesburg is considered the most attractive city in which to do business ahead of Cape Town. Nairobi and Lagos are ranked as the third and fourth most attractive cities respectively. In North Africa, Casablanca, Cairo and Tunis are perceived as the top three cities in which to do business. According to the survey, Africa’s perceived attractiveness relative to other regions has improved over the past few years. Africa has moved from the third position in 2011 to become the second-most attractive investment destination in the world. This year, only North America ranks ahead of Africa in terms of investment attractiveness. According to the report, 60 per cent of the respondents said there had been an improvement in Africa’s investment attractiveness over the past year up four percentage points from the 2013 survey. Similarly, nearly three out of four respondents believe that Africa’s attractiveness will improve further over the next three years. According to the survey, Africa’s share of global FDI flows has been improving year on year. In 2013, Africa’s share of global FDI projects reached 5.7 per cent, its highest level in a decade.
The 2014 edition of the HSBC Expat Explorer survey spins a really good story for South Africa. Expatriate workers looking for a balance between work and a decent family life rated South Africa the second best destination in the world, after New Zealand. The annual survey measures four categories: earnings, lifestyle, raising children and the cost of living. Countries made it on to the list if, and only if, there were at least 100 respondents from each locale. South Africa did not fare that well in the economic measures, but it was close to the top in the social categories. The results are based on the subjective opinions of almost 3 000 expats. Switzerland was tops overall, South Africa 22nd, but the country outranked most others on social measures, like "great place to raise children". South Africa's cultural diversity also made it easier for expats to find their feet, and made it easier for them to find something to remind them of home.
South Africa recorded employment gains in both the formal and informal sectors whilst the unemployment rate decreased slightly and in the third quarter of 2014, according to results from Statistics South Africa (StatsSA). The Quarterly Labour Force Survey for Q3: 2014, shows 22 000 new jobs were created in South Africa between July and September 2014. The formal sector added 88 000 jobs whilst 28 000 jobs were created in the informal sector between Q2 and Q3. Compared to Q3: 2013, employment increased by 81 000, largely due to increases in the formal and the informal sectors that grew by 134 000 and 85 000 jobs respectively in Q3: 2014. Following a decrease of 122 000 jobs in Q1: 2014, employment increased by 39 000 in Q2: 2014 and by 22 000 in Q3: 2014. The quarterly increase in Q3: 2014 was 17 000 jobs lower than the increase in the previous quarter, according to the survey. The Quarterly Labour Force Survey is a household-based survey conducted by StatsSA. The survey is based on data collected on the labour market of individual South Africans aged between 15 and 64 years. Notable gains in the formal sector were observed in the construction sector which added 66 000 jobs, the trade sector which gained 48 000 jobs and the mining sector which enlarged its workforce by 23 000. In the informal sector, the largest gains in employment were observed in construction (33 000), manufacturing (14 000) and transport (10 000) industries. The gains in employment are reflected in the drop in the unemployment rate which shows a slight decrease from 25.5% in Q2: 2014 to 25.4% (0.1 of a percentage point) in Q3: 2014.
Ghana offers the best Real Estate investment opportunity in West Africa, according to a survey conducted by Clifton Homes of global property experts. 52% of the professionals interviewed believe Ghana will offer the best financial returns in the region over the next 2-3 years. The survey gathered the views of over 50 real estate professionals from across the globe including fund managers, property consultants, academics and financial analysts. The experts, from organisations such as Broll, JP Morgan, Pam Golding and the University of Lagos were questioned on the attractiveness of West African real estate as a viable investment opportunity. The Ghanaian market was judged to be the most attractive real estate investment opportunity in West Africa, expected to deliver the highest level of profits over a short term (2-3 years) or long term (10 year) horizon. With the 2012 GDP growth rate in Ghana expected to be amongst the highest in the world, the survey revealed broad consensus about the positive implications for real estate. 85% of experts interviewed expected real estate investments in Ghana to outperform the regional average over the next 5 years. Nigeria was identified as the next most attractive investment market, with one third of experts favouring real estate in West Africa’s most populous nation. Tourism related real estate development in Cote d’Ivoire was pinpointed by a third of experts as holding strong investment potential over the longer term. Notably, experts identified very few opportunities in Travel and Tourism investment in the region. 60% of experts surveyed said they would consider investing in commercial real estate in West Africa.
The Postal Corporation of Kenya has announced that it will be expanding its banking services to 470 post offices around the country. Services available include the ability to withdraw up to Sh1m, as well as making balance inquiries and pay bills including school fees and utilities. The partnership will facilitate National Bank customers to make cash deposits, cash withdrawals and account balance inquiries among other services at Posta outlets, on the Post Pesa platform. All of the Postal Corporation of Kenya’s 470 outlets in the country will be agents, NBK bank branches. The expanding banking access provided by Kenya Post underlines the role post offices can play in improving financial inclusion around the world. Global analysis issued this time last year by the Universal Postal Union said that poor and less educated people are more likely to get their financial services from a post office than a bank. Kenya Post has been providing banking services for Kenya Commercial Bank customers since March 2014. The services have been made possible by a new e-payment system the postal service launched in July 2013, PostaPesa.
GSK has launched the first call for proposals for its Africa NCD Open Lab, to support much-needed scientific research into non-communicable diseases (NCDs) in Africa. Up to £4m will be available in this first funding round, to support successful proposals from researchers in Côte d’Ivoire, Cameroon, Ghana, The Gambia, Nigeria, Kenya, Uganda and Malawi. The Africa NCD Open Lab was established by GSK earlier this year, with a commitment of £25m funding over five years, as part of a series of strategic investments in sub-Saharan Africa. In this region, and across developing countries, non-communicable diseases, such as cancer and diabetes, are becoming more prevalent, and we need to learn more about how – and why – these diseases manifest differently in this setting. The Africa NCD Open Lab aims to address this through the creation of an innovative research network that will see GSK scientists collaborate with researchers across Africa on high quality epidemiological, genetic and interventional research, from its hub at GSK’s Stevenage R&D facility in the UK. The aim is that this will specifically inform interventions for the prevention and treatment of five priority diseases - cancer, cardiovascular disease, diabetes, chronic kidney disease and chronic respiratory disease – while helping build local expertise and creating a new generation of African NCD experts. An independent external advisory group, comprising clinical and scientific experts in the field of NCDs, will review applications to the NCD Open Lab, with recommendations for funding based on scientific merit. The group will consist of a majority African membership to ensure that only locally-relevant research is funded. A second call for proposals in South Africa is planned for early in 2015 which will be launched in collaboration with the Medical Research Councils of South Africa and the UK, with a combined £5m funding. For more information, or to submit a research idea for consideration, please visit http://www.gsk.com/africa-ncd-openlab.
The latest generation of the Vodacom m-pesa electronic platform provides an ideal mechanism for employers to pay staff salaries and ad-hoc expenses via mobile phone. With m-pesa, companies have a low-cost and easy solution for making payments to all staff, even those who don’t have a bank account. Employees can use their m-pesa account as a wallet to hold their salary, and with the m-pesa Visa card they can then withdraw cash from any ATM as well as pay for goods and services using any point of sale machine. The new generation version of Vodacom m-pesa allows employers to make a large electronic funds transfer upload and then an easy bulk payment to its staff via their mobile phone numbers. Staff can transfer money via their phones to family and friends wherever they are in South Africa. m-pesa was started in Kenya and has also built up a strong user base in countries such as Tanzania and Mozambique. The m-pesa platform provides a seamless, low cost and real time disbursement system for salaries, loans and grants that is low risk and easy to audit. Vodacom is majority owned by Vodafone, one of the world’s largest mobile communications companies by revenue.
Carlyle Group, a private-equity firm, has bought a $147 million minority stake in Nigeria’s Diamond Bank, in the hopes that a new mobile banking service will help rapidly boost the lender’s customers and profits. Diamond Bank has added more than 600,000 mobile banking customers since it started offering its Y’ello bank account via mobile phone operator MTN a few months ago. The bank aims to have five million mobile banking users, doubling its existing customer base, by the end of 2015, Uzoma Dozie, its chief executive, said in an interview. The purchase of the stake through a rights issue is the fourth investment Washington-based Carlyle has made from a $698 million fund for sub-Saharan Africa, which it completed raising this year. The other investments are in agricultural supply chain company ETG; J&J Africa, a logistics company; and metals trader Traxys.
The significant rise in household income in many of Africa's key frontier economies has allowed the formation and strengthening of a substantial middle class. Standard Bank Group’s economic analysts have been examining the growth of the middle class market in Angola, Ethiopia, Ghana, Kenya, Mozambique, Nigeria, South Sudan, Sudan, Tanzania and Uganda. The team found that the number of middle-class households in these 11 sub-Saharan African countries are expected to boom in the next 16 years from today’s 15-million to over 40-million by 2030. Nigeria, which is Africa’s biggest economy and has the largest African population, is leading the growth of new middle-class households on the continent with an estimated 7.6-million to be added in the next 16 years. Nigeria's middle class grew by 600% between 2000 and 2014 giving the country 4.1-million middle-class households at present, which is 11% of its total population. Other countries are also expecting significant growth of the middle-class households by 2030, including Ghana (1.6-million), Angola (1-million) and Sudan (1-million). Many of the countries in the East African region are seeing slow growth in their middle class because the majority of those countries’ households are low-income houses. In Kenya, East Africa’s biggest economy, only 4% of households could be considered middle class. East African countries maybe expecting the most rapid population growth rates in the world but are struggling to keep pace with the income advance needed. Even with the challenges in the East African countries, we are still seeing impressive growth rate from other countries besides Nigeria. Angola has 21% of households in the middle class, while Sudan has 14% and Zambia 10%.
The Tony Elumelu Foundation has announced the launch of a $100m Pan-African entrepreneurship initiative – The Tony Elumelu Foundation Entrepreneurship Programme– a multi-year programme of training, funding, and mentoring, designed to empower the next generation of African entrepreneurs. The programme is the first initiative of its kind to be launched by an African philanthropic organisation and is the largest African sourced philanthropic gift, targeting the entrepreneurial space. The programme will identify and help grow an initial 10,000 start-ups and young businesses from across Africa over the next 10 years, targeting the creation of 1,000,000 new jobs and $10 billion in annual revenues. The Tony Elumelu Foundation Entrepreneurship Programme is inspired by three guiding principles: the inclusive economic philosophy of Africapitalism, based on the belief that a vibrant African-led private sector is the key to unlocking Africa’s economic and social potential; commitment to drive African economic growth through the empowering of African entrepreneurship; and a mission to ‘institutionalise luck’ by creating an environment where African entrepreneurs can get critical elements of support in the early stages of their business life. A Selection Committee of African business leaders will select the most promising 1,000 start-ups annually from across the continent. Successful applicants will participate in a comprehensive programme designed to equip them with the skills needed to build a successful business. The programme includes seed funding, a customized 12-week business skills training course, mentoring, an entrepreneurship ‘boot camp’, participation in the annual Elumelu Entrepreneurship Forum, membership of the Alumni Network and much more.
United Bank for Africa (UBA) has partnered with Airtel to provide mobile-based financial services across Africa through Airtel Money. Airtel Money is Bharti Airtel's mobile commerce brand that enables subscribers to carry out financial transactions directly from their mobile phones. Under the Memorandum of Understanding (MoU) signed, both companies will expand the range of innovative financial services to their customers in the 12 countries where they are both present within Africa which include Nigeria, Ghana, Burkina Faso, Sierra Leone, Gabon, Kenya, Uganda, Tanzania, Chad and Zambia, Congo Brazzaville and Congo DRC. UBA operates in 19 African countries, serving over 10 million customers while Airtel has presence in 17 African countries with over 30m registered mobile money customers. UBA and Airtel will jointly launch new mobile based financial products and services that are relevant to customers with the objective of driving convenience to their combined over 30 million registered customers. These services include International Money Transfer services, Mobile Banking, Super Agency Services, and Payment Cards for their customers. The partnership will also facilitate cardless withdrawal services at ATMs, Mobile Savings and Loans. These initiatives are geared at improving convenience for their teeming customers across the continent whilst boosting intra-Africa trade and commerce.
The mobile revolution in sub-Saharan Africa is far from over. Mobile subscribers are set to pass the half billion mark - or 49 percent of the population - by 2020, according to a new report by mobile operators industry association GSMA. The region is already the fastest-growing for mobile globally - and will continue to lead growth into the next decade. According to the report, Smartphone penetration, already on the rise, is set to increase exponentially over the next five years - rising from 13 percent in 2013 to half of all subscribers by 2020. Up until now, the mobile story in Africa has been dominated by low-cost basic phone models, which rely heavily on top-up SMS services and provide only basic internet connectivity. However, while basic 2G internet coverage of the continent is quite extensive, 3G connectivity and above - the networks needed to enable most smartphone applications to function properly - still have a way to go. Capital expenditure to expand networks is projected to reach $97bn over the next seven years, as operators scramble to invest in the infrastructure needed to support the demands of sub-Saharan Africa’s growing numbers of smartphone users - data traffic due to the uptake of smartphones is set to increase 20 fold between 2013 and 2019 - twice the global average. As of June 2014, overall mobile penetration in sub-Saharan Africa stood at 329 million unique subscribers, or 38 percent of the population. Should GSMA’s forecasts prove correct, the region will overtake Europe as the second biggest mobile market in the world, behind Asia Pacific. It will also follow Asia Pacific as runner up for most 3G mobile connections by 2020. Revenues in the sector have grown steadily at 7 percent per year 2008-2013. While that is set to drop slightly to 5.6 percent growth through 2020, the mobile revolution’s contribution to overall economic growth is only set to increase. Contribution to the sub-Saharan Africa’s GDP was 5.4 percent in 2013, but will increase to 6.2 percent by 2020 while providing some 3.5 million jobs.
The Nelson Mandela Foundation has launched a new-look, interactive portal – a visually rich, technological showpiece that incorporates new multimedia functionality to better keep Madiba's legacy alive in the 21st century, while catering for a growing global audience. The way information is housed and presented helps establish the Foundation as the trusted voice on the life and times of Nelson Mandela, and facilitates the vital advocacy platform in the promotion of social justice for all. Nelson Mandela led a monumental life, driven by the desire to see peace, equality and justice rightfully bestowed on all people of South Africa, and indeed the world. The new website acts as an online portal into the life and times of Madiba, giving the user a profound sense of how he ultimately realised his dream of a united nation, and the long journey it took to get there. Key design elements define this insight into Madiba's journey – a surface layer of stories and information; databases providing dense description of materials; linkages to actual materials, to other sites and to different layers within the site; digitised materials, from hard copy to moving images; and social media webbing around it. http://www.nelsonmandela.org/landing/life-and-times
According to an in-depth study conducted by the Economist Intelligence Unit (EIU) on behalf of DHL, approximately 40% of global SMEs (small and medium-sized enterprises) do not perceive Africa as a growth opportunity, despite the positive economic growth stories and growing middle class in the regions. The report further reveals that while many multinationals and state-owned companies are actively taking advantage of the opportunities that Africa offers, SMEs still remain apprehensive and are choosing to trade with other emerging markets instead. Charles Brewer, Managing Director of DHL Express Sub Saharan Africa, says that despite current challenges to attract global SME interest, the findings of the study highlight the untapped potential that still exists in the continent. “The fact that SMEs expect to generate up to 50% of revenues internationally by 2019 is a massive positive and highlights the vast opportunities for Africa from an investment and job creation perspective.” Brewer says that according to the study, which surveyed 480 SME executives and experts from business lobbying groups, SMEs are deterred by Africa’s low average consumer spend, cultural and infrastructure challenges, as well as inefficiencies such as corruption and political risk in the region. He explains that overcoming different market environments is the biggest hurdle. The quality of a target market’s infrastructure, the stability of its politics, administrative costs for establishing a local presence and cultural differences in doing business were all cited by the executives surveyed as factors that deterred them from entering new markets. “The unfamiliarity of foreign markets received particular attention, with 84% of respondents describing understanding a target market’s culture or language as important or very important in determining its attractiveness. This also explains why most SMEs often expand into markets that resemble their own. This is evident in Africa, as companies looking to expand into the continent, often make use of a ‘one size fits all’ approach. Due to the various cultures, languages and customs on the continent, vast amounts of research need to be done into each region, and the services and products need to be specifically tailored to each country. Africa is not one country,” says Brewer. In terms of expansion tactics, the survey shows that partnerships are an important consideration for SMEs. The study identified a number of innovative approaches in this area, such as piggybacking on another company’s existing retail network to enter the sub-Saharan market in Africa.
Airtel Money, the mobile commerce service of Bharti Airtel, the leading global telecommunications services provider with operations in 20 countries across Africa and Asia, has hit the 1 million revenue-earning customers landmark in the Democratic Republic of Congo (DRC). The achievement is significant because DRC has the largest mobile-money potential in Africa outside Nigeria and Ethiopia, according to industry statistics. With this development, DRC has emerged the only market in Africa - outside of the East African Community region and Zimbabwe - where mobile money has achieved scale. Airtel DRC has established and expanded partnerships with financial institutions to expand mobile money access resulting to a digital revolution in DRC. The size of scale and positive effect of mobile money benefit is now largely being felt by small and medium enterprises (SMES) contributing significantly to the growth of DRC’s economy. In December 2012, with the support from the DRC Government and in partnership with the Congolese Association of Banks and local banks, more than 1,100 policemen received their salaries through Airtel Money. The service has since been extended to hundreds of thousands of other civil servants including teachers and the military.
Mobile payments system, or mobile banking in Nigeria has recorded a total of 15 million transactions since the inception of the scheme in 2012 with 58 million subscribers while the total value of the transactions till date is N430 billion, according to the Head of Payment System Policy and Oversight of the Central Bank of Nigeria, Musa Itopa-Jimoh said it was made possible by the efforts of over 78,000 agents and 21 licensed mobile money operators in the country. The 21 mobile institutions, he said, returned a minimum of N14 million on monthly bases. As with many countries which have recorded successes in mobile banking, Nigeria has given approval to telecommunication companies (Telcos) to participate in agent banking and Telcos can take advantage of its outlets and credit card vendors by turning them into agents who will assist Nigerians who intend to open tier1 account. This will create a huge number of financial networks of taking banking to the unbanked in the nooks and crannies of the country, while effort is at an advance stage to take advantage of the Nigerian Postal Services Authority (NIPOST) to use their outlets across the country into mobile agents’ outlets.
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