MOCIAN2014-ANG.pdf

Foreign private sector in Africa:analysis by French investors

2014 Annual Report

Special issue - March 2014 - 25 euros

French Council of Investors in Africa

LE MOCI - Special issue - March 2014 3

LE MOCIPublication director

and Managing Director

Vincent Lalu

EDITORIAL STAFF

Chief editor

Christine Gilguy

Editorial advisor

Georges Rambaldi

Production

Delphine Miot (maquette)

English editor

Ruth Pavans

The following contributed to this issue:

Bndicte Chtel, Anne Guillaume-Gentil

(articles on propects and economic summaries

by country)

Graphic design and artwork

amarena / www.amarena.fr

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Imprimerie de Champagne

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Philippe Chebance

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Robin Loison

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CONSEIL FRANAIS

DES INVESTISSEURS EN AFRIQUE

(French council of Investors in Africa)

45, rue de la Chausse dAntin

75009 Paris

Tl. : +33 (0)1 45 62 55 76

Fax : +33 (0)1 42 56 79 33

Email : [email protected]

Site : www.cian.asso.fr

Report founder

Jean-Pierre Prouteau

Editorial committee

Anthony BouthelierAlix CamusStephen Decam

Copyright: all reproduction, even partial, of the texts

and documents published in this issue is subject to

the prior authorisation of the editorial staff.

2014 REPORT/CONTENTS

The African dream? 5Anthony Bouthelier, Executive Chairman of CIAN

Key events in 2013 6

Trade between France and Africa 8

Key figures and trends

An innovative approach to Africa 12

An interview with Henri de Cazotte, Coordinator

of the French government mission for the

post-2015 development agenda 12

Innovative change and French groups 16

2iE, beyond training, a guide to the continents development 18

Mass consumption 20

How the emergence of the middle class is a

game-changer for CFAO 20

The green click solution to rising electronic waste, by Les Ateliers du Bocage 22

Africa begins to defend its geographical indications 24

Services 26

When researchers scrutinise job markets 26

Onomo International: betting on aMade in Africa hotel chain 28

Health: how the Pasteur Institute supports researchby Africans 30

Technical products 32

Prepaid cards: Africas mobile money revolution 32

Telecommunications: user-driven innovation 34

Mobile digital solutions to strengthen democracy 36

Economic analysis by zone and country 38

The results of the 2013 CIAN survey 39

North Africa 46

West Africa 62

Central Africa 102

Southern and East Africa and the Indian Ocean 120

THE CIAN 2014 ACTIVITY REPORT

CIAN initiatives and projects



Editorial

The African dream?

This CIAN 2014 Report confirms that our companies are prospering but also pointsto an inadequacy and even a deterioration in the business environment which is hin-dering the long-awaited economic take-off.

The 5 to 6 % growth rate, much celebrated in contrast with the sluggish economiesof Northern countries, is not enough to pull Africa out of its rut. Comparison with themajor emerging countries China, India and Brazil is inappropriate as these coun-tries enjoy political unity and a single currency. The continent dreams about suchunity but let's not forget the existence of 54 countries in an area so vast that it couldhold all of China, India and Europe.

While Africa may be our new frontier and there are positive things happening here andthere the birth of a middle class, fewer armed conflicts, etc. nothing would beworse than deluding ourselves into believing that development generated by factorssuch as population increases and urbanisation will happen automatically.

Every player needs to be ready to take action; the private sector plays an essential rolein creating wealth, and in building the rule of law that will unleash entrepreneurialforces.

In a difficult African environment, French companies have a major asset experience as can be seen from the excellent results published in this Report. This compara-tive advantage needs to be exploited quickly and decisively in what is still a promisingsituation.

At the meeting held at Bercy alongside the lyse Summit for Peace and Security inAfrica on 6 and 7 December 2013, the Nigerian Minister of Finance, Mrs NgoziOkonjo-Iweala, mischievously advised us to examine examples of success and men-tioned South Korea. Who remembers that, 60 years ago, its GDP stood at 50 USDper inhabitant, whereas today it is over 20,000 USD?

Faced with a typically French wave of good ideas and unbridled conceptual thinking,this attitude of openness and attentiveness to the world was of a pragmatism thatshould make the private sector sit up and think.

In a recent colloquium, Lionel Zinsou, speaking of CIAN's evolution, noted that thecompanies investing in Africa today are no longer those from the days of colonisation.These companies are now global; their scope for action is worldwide, making themthe witnesses and even the players in successful development.

In the public-private dialogue so often evoked but so poorly put into action, the privatesector's talent lies particularly in bearing witness to practices that have been suc-cessful in the light of a results-based culture.

In short, the private sector knows what works or what doesnt work, not throughhigher intelligence but through experience in the field and Minister Ngozi Okonjo-Iweala was right to recommend the modest approach that observing the worldrequires.

Anthony Bouthelier, Executive Chairman

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6 LE MOCI - Special issue - March 2014

2013 / Key events

January Mali. Jihadists took control of the country's northern regions.

Following a request from the interim president DioncoundaTraor to Franois Hollande and UN secretary general BanKi Moon, a French military intervention began on 11 Januaryunder a UN mandate. Operation Serval, combined with AfricanUnion Forces, halted the rebel advance, enabled the Malianarmy to re-establish a foothold in the North and permitted areturn of democratic institutions.

February Guinea. The peace march organised on 27 February by the

Guinean opposition to demand free, open parliamentary elec-tions ended in confrontation (130 injured, including 68 policeofficers and gendarmes).

Tunisia. The Islamist party Ennahda announced that it wouldrelinquish its hold on the key State ministries, thereby openingthe way for the constitution of a government of national union.

Cameroon. The French Tanguy Moulin-Fournier family waskidnapped on 19 February by the Islamist group Boko Haram.The family was freed on 19 April.

March Sudan. The two halves of Sudan reached an agreement on

the issue of oil transport to Port Sudan. Central African Republic. The rebel Seleka coalition took

control of Bangui. The elected president Franois Boziz fled toneighbouring Cameroon. France reinforced its military contin-gent to ensure the safety of its citizens.

China/Africa. Chinese president Xi Jinping made his firstofficial visit to Africa (Tanzania, South Africa and Congo Braz-zaville). Beijing offered loans of 20 billion USD for the period2013-2015.

April France/Africa. The White Paper on Defence delivered to Fran-

ois Hollande placed the emphasis on Africa. French troopsshould be kept in Africa but allied involvement should be sought.

African Development Bank (ADB). Donald Kaberuka,chairman of the ADB, unveiled the new 10-year strategy(2013-2022) which places the emphasis on infrastructures,economic integration and the private sector.

May Africa. CFAO, the leading French distribution group in Africa,

joined forces with Carrefour to create 35 shopping malls in 8 countries within the next 10 years.

June Egypt. Pro and anti-Morsi demonstrators clashed violently in

Cairo and Alexandria after the Egyptian president refused tohold early elections. He was removed by the army on 3 July,marking the end of the Muslim Brotherhoods control of powerand the beginning of a new period of transition.

July United States/Africa. On a visit to South Africa, US presi-

dent Barack Obama announced his 7 billion USD plan Power

Africa aimed at facilitating access to electricity, with GeneralElectric as the central partner.

Zimbabwe. President Robert Mugabe, 89, was proclaimedwinner of the presidential election with 61 % of the votes anda two-thirds majority in the Assembly.

August Mali. Ibrahima Boubacar Keita was elected president of Mali

with 77 % of the vote against Soumaila Ciss.

September Kenya. Dozens of people in Nairobi's Westgate shopping cen-

tre were taken hostage for four days by a Somali Chabaabcommando, resulting in 67 people killed and 175 wounded.

October Africa. Growth in Africas GDP was set to reach 4.9 % in

2013 (4.2 % in 2012) and should rise further to 5.5 % in2015. (Africa Pulse, World Bank).

Central African Republic. The UN Security Council appro-ved the sending of troops to the CAR.

Madagascar. The first round of the presidential election washeld on 25 October, after four years of crisis. The secondround was held on 20 December. Hery Rajaonarimampianinawas proclaimed victor with nearly 54% of the vote on 7January 2014.

Mozambique. Renamo (the opposition party) rejected the1992 peace agreement, leading to thousands of people takingto the streets to demonstrate for peace.

November Mali. On 2 November, the RFI journalists Ghislaine Dupont

and Claude Verlon were kidnapped in Kidal and executed. Cameroon. Father Georges Vandenbeusch was kidnapped

in Cameroon on 13 November.

December Central African Republic. On 5 December, the UN Security

Council gave MISCA (increased to 3,600 men) the greenlight for a one-year intervention and six months renewable forthe French forces. Franois Hollande launched OperationSangaris (1,600 soldiers).

France. The Africa-France summit for peace and security inAfrica was held in Paris on 6 and 7 December in the presenceof some 40 Heads of State. Africa needs to be able to manageits own security and should have a rapid reaction force: 20,000African soldiers could be trained by France. Paris also wants todouble its trade with Africa over the next five years and launcha new economic partnership model with the continent, inspi-red by the main conclusions of the Vdrine mission report, pre-sented on 4 December.

South Africa. Nelson Mandela died on December 5. Over100 heads of state and government attendeda memorial to Madiba in Soweto stadium onDecember 10.

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A painful diagnosis and ageneral mobilisation In France the time has come for a gene-ral mobilisation: the country has beenlosing ground on the continent over thelast ten years, its market share falling from10.1 % in 2000 to 4.7 % in 2011, notedPierre Moscovici, the French Minister forthe Economy and Finance, at the Africa-France Economic Forum on 4 December2013, which preceded the Africa-FranceSummit of 6 and 7 December. Frenchcompanies have won few major contracts(water, energy, railways) recently, saidNicole Bricq, Minister for External Trade,regretting that Frances market share hasclearly eroded over the last 20 years incountries such as Cameroon (from 36 to 14 %) or the Ivory Coast (from 31 to13 %) and has not risen much in theEnglish-speaking countries such asKenya (1.5 %) or Nigeria (3.6 %). TheMinister could also have cited Moroccoas an example. In 2012, France was rele-gated to second in the list of suppliersto Morocco by Spain, which has workedhard to boost its exports to make up forthe crisis. Hence the call for a new eco-nomic partnership model between Africaand France, the title of the forum thatprovided the setting for the presentationof the Vdrine report on A partnershipfor the future. French president FranoisHollande has set a target of doublingtrade in both directions.

Dynamic import marketsWhile the need for investment in infra-structures is estimated by the OECD at aminimum of 50 billion euros over the nextten years, the financing is not always tobe found. However, following recenttrends in imports on the African conti-nent, according to the statistics availablein the GTIS* GTA base, a certain num-ber of countries are continuing to importin greater quantities. Here are a fewexamples of trends in 2012 and 2013:

Key figures and trends

South Africa: imports increased by 10 %in value in 2012 (79 billion), but thetrend is for a fallback this year (- 3.75 %over the first 9 months of 2013); Egypt: although there was a slowdownin 2013 (+ 0.83 % over 8 months),imports rose sharply by 17.5 % in 2012(52.5 billion); Algeria: Algerian imports are still rising:+ 12 % over the first 9 months of theyear, after + 15.5 % in 2012 (39.2 billion); Morocco: also rising with + 6.39 % in2012 (33.3 billion); Nigeria: + 5.3 % rise in imports in thefirst half of 2013 (15.7 billion), after afall of 26.4 % in 2012;

There is no doubt that 2013 was marked, in France, by an awareness at the highest levelthat it is time to relaunch economic relations with Africa and try to use innovativeapproaches. In the light of business statistics and FDI, France can certainly improve on aperformance that is not up to the level of the know-how it can offer African countries.

TRADE BETWEEN FRANCE AND AFRICA

FRENCH EXPORTS TO AFRICA

THE TOP 20 AFRICAN CLIENT COUNTRIES IN 2012 (IN EUROS)

2011 2012 2012/2011 (%)

Algeria 5 766 549 580 6 360 392 052 10.30

Morocco 4 316 483 311 4 027 964 949 - 6.68

Tunisia 3 610 885 391 3 613 629 441 0.08

South Africa 2 300 210 697 1 882 391 783 - 18.16

Egypt 1 840 588 718 1 720 917 989 - 6.50

Nigeria 1 477 078 484 1 346 052 393 - 8.87

Ivory Coast 739 575 186 999 696 249 35.17

Senegal 889 286 017 827 721 109 - 6.92

Gabon 782 589 824 769 438 394 - 1.68

Cameroon 633 824 653 672 146 173 6.05

Congo 490 644 324 588 983 587 20.04

Angola 585 072 494 543 920 820 - 7.03

Libya 227 400 964 539 999 639 137.47

Togo 249 729 601 366 623 726 46.81

Mauritius 336 661 873 344 564 537 2.35

Ghana 308 665 555 330 358 263 7.03

Mali 311 062 054 301 567 797 - 3.05

Madagascar 278 845 485 298 230 467 6.95

Benin 809 097 049 267 562 794 - 66.93

Burkina Faso 218 698 347 262 641 219 20.09

Total Africa 28 203 607 191 28 191 713 571 - 0.04

Ivory Coast: the trend for 2013 is + 21.5 % for the first 9 months of 2013(6.5 billion ), after a strong recovery (+ 57.7 %) in 2012; Kenya: the import trend was + 19.16 %in 2012 (12.4 billion); Ghana: progression in imports was 17.4 % in 2012 (10.4 billion); Mauritius: the islands imports increa-sed by 9.2 % in 2012 (4 billion).

Frances top 10 tradingpartners French customs data show very largevariations in Frances trade with the Afri-can countries between one country andanother, and even from one year to ano-

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TRADE BETWEEN FRANCE AND AFRICA

FRENCH IMPORTS FROM AFRICA

THE TOP 20 AFRICAN SUPPLIER COUNTRIES IN 2012 (IN EUROS)

2011 2012 2012/2011 (%)

Libya 1 997 454 940 4 293 255 995 114.94

Algeria 4 393 127 022 3 918 737 097 - 10.80

Tunisia 4 026 626 321 3 763 215 200 - 6.54

Nigeria 4 345 927 003 3 720 147 339 - 14.40

Morocco 3 148 145 836 3 268 815 407 3.83

Equatorial Guinea 431 716 276 1 944 120 889 350.32

Egypt 1 342 694 623 1 317 670 234 - 1.86

Ghana 1 342 884 771 945 237 524 - 29.61

Angola 1 312 110 423 933 144 517 - 28.88

Congo 527 610 931 868 611 841 64.63

South Africa 959 104 847 839 770 394 - 12.44

Ivory Coast 549 294 592 545 645 782 - 0.66

Niger 287 606 994 428 851 165 49.11

Madagascar 316 671 113 335 791 224 6.04

Mauritius 276 988 102 288 968 904 4.33

Cameroon 293 023 809 217 319 078 - 25.84

Gabon 116 513 940 172 176 034 47.77

Namibia 85 866 132 125 592 232 46.27

Mauritania 193 891 172 110 890 703 - 42.81

Seychelles 72 752 145 97 826 097 34.46

Total Africa 26 807 030 413 28 766 994 994 7.31

DIRECT INVESTMENT FLOWSFROM FRANCE TO AFRICA BYCOUNTRY (in millions of euros)

2011 2012

World 34 884 28 009

Africa 1 753 1 794

Other African 1 679 1 308countries

Countries of the - 59 723Franc Zone

Maghreb Countries 430 674

North Africa 74 486

Angola 651 709

Morocco 162 435

Congo 130 362

Algeria 241 211

Gabon 57 199

Egypt 95 183

South Africa 149 97

Cameroon -140 65

Ivory Coast 10 56

Tunisia 27 28

Kenya 27 14

Liberia - 3 9

Mali 18 2

Senegal - 67 - 3

Chad - 3 - 3

Mauritius 26 - 23

Nigeria 473 - 328

Libya - 451 - 371

Source: Banque de FranceNB: no sign = increase in FDI; (-) sign = decrease in FDI

ther (see charts opposite). This tends toconfirm the potential for real growth anda need to reinforce regular flows. The trend for the first nine months of2013 (January-December) confirms ahigh concentration of Franco-Africantrade (import-export) in the North Africancountries, the oil and gas producingcountries and West Africa: Frances top three trading partners onthe continent are in the Maghreb with, indecreasing order: Algeria (also Frances15th biggest partner worldwide), withtrade up by 11.8 % (7.7 billion); Tunisia(25th worldwide), with 5.6 billion (+ 2.45 %); Morocco (26th worldwide)with 5.3 billion (- 0.24 %), whereFrance lost its pace as leading supplier to Spain in 2012. Nigeria remains a major partner, in 4thposition (but only Frances 33rd biggestpartner worldwide) with 3.9 billion, upby 5.27 %, just ahead of Libya, wheretrade has tended to stagnate (+ 0.56 %,to 3.3 billion). There is a downward trend in trade withthe following two countries: South

Africa, Frances 6th biggest African part-ner (and 50th worldwide) with 1.9 bil-lion (- 5.6 %) and Egypt, the 7th, with1.9 billion (- 13.4 %). The Ivory Coast, with whom trade hasrecovered sharply (+ 16.1 % over ninemonths in 2013, 1.2 billion), is Frances8th biggest African partner and 3rd southof the Sahara, ahead of Angola, withwhom trade has also increased signifi-cantly (+ 20.9 %, 1.1 billion). Ghana is Frances 10th biggest Africanpartner, with trade appearing to fall back (928 million over nine months, - 6.38 %).Apart from this top 10, trends are veryvariable: while trade fell back sharply overthe first nine months of 2013 with severalcountries, such as Equatorial Guinea(- 34.1 %), the Congo (- 15.6 %) andSenegal (-15.6 %), it has increased inother countries, such as Gabon (+ 19 %)and Cameroon (+ 1.8 %).

*Global Trade Atlas (GTA) base run by Global

Trade International Services (GTIS), which

compiles official customs statistics.

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LE MOCI. Whats your view of theFrench private sectors ability to

innovate in order to meet African

challenges?

Henri de Cazotte. The African continentis in the midst of a far-reaching transfor-mation as it enters the globalised world.At the same time, development agencies,such as the FDA, have a new agendabased on sustainable development: werefighting poverty while keeping a close eyeon environmental sustainability. The chal-lenges (inclusion, solidarity, quality of life,climate change, urbanisation, etc.) aresuch that governments and their agen-cies are not enough. Today, the privatesectors role is therefore not only crucialbut also recognised and the FDA needsto support this movement. In addition, technological upheavals incommunications and information call forfurther innovations, especially as many ofthe solutions are now coming as muchfrom the South as from the North: mobilebanking, for example, is a Kenyan pro-duct. So the old recipes are no longernecessarily the best. With this in mind,were looking closely at a major partner-ship between the development agenciesand the private sector.

LE MOCI. But this partnership withthe private sector isnt new

H. de C. Thats true. Indeed, the FDA wasa pioneer in the field. We set up Pro-parco, financial instruments operated bythe development banks and focusing on

the private sector. In short, we acted asbankers. We also created a large num-ber of public-private partnerships (PPP)to finance infrastructures and provideessential services. We encouraged thefinancing of small companies.Today, were looking at the next stage:are we, together, the private sector andthe FDA, capable of taking risks on behalfof inclusive development and of facingthe environmental challenges in Africa?Weve certainly carried out a few experi-ments with a number of French compa-nies Danone, Lafarge, Total, Rougier,etc. But we still need to turn it into a realfocus. In fact, we still dont have enough incen-

After taking up her duties at the end of May 2013, the new managing director of the FrenchDevelopment Agency (FDA), Anne Paugam, asked Henry de Cazotte, coordinator of theFrench government mission for the post-2015 development agenda, to oversee the majorinnovation project at the FDA that was also requested by Pascal Canfin, deputy minister forDevelopment.

AN INNOVATIVE APPROACH TO AFRICA

tive instruments and need to work on thestructure of relations between the privatesector and the public authorities withregard to what we call inclusive deve-lopment. How do we intervene for thebenefit of a wider population living out-side the market or on its margins? In tea-ming with companies that want to be pre-sent in this area and that have the abilityto be effective, we could develop inno-vative, smart initiatives that lead to newproducts adapted to these new mar-kets. Despite its interest in this sector, the FDAhas lagged behind American and Britishinitiatives. The FDA has been very crea-tive in other areas, such as microfinance,developing innovative financial tools viainvestment funds which themselves havesupported social investment projects.One example of this is the French Glo-bal Environment Facility (FFEM), whichhas proved highly innovative in its mis-sion. But today, companies are showinggreater commitment and are asking whatelse they can do with us.

LE MOCI. What are your preferredsectors?

H. de C. City sustainability and, withinthis framework, mobility, energy efficiencyto reduce the impact of carbon emis-sions, resilient infrastructures and foodsecurity. As were used to workingdirectly with cities, were capable of des-igning new types of PPP around the ideaof the sustainable city.

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An interview with

Henri de Cazotte, Coordinator of the Frenchgovernment mission for the post-2015 development agenda

The new challenge is to ensure that this relationship with the private sector helps to create a renewal



LE MOCI. So, a French city supports

the efforts of an African city with

the support of the FDA?

H. de C. Yes, and potentially with privatepartnerships. It's something new that wecould develop. The FDA could workalongside them on the least profitableaspects: water supplies for the slums,incorporating the poorest districts into atransport project, etc. For projects linkedto rural environments, well focus onwater conservation, catchment basinmanagement, funding for environmentalservices, sustainable forest or biodiver-sity management, access to energy andto means of communication, where theprivate sector could get involved. So itsa new challenge for the public and pri-vate sectors.

LE MOCI. Its seems like the private

sector concentrates its investments

on new needs in Africa, to provide

solutions, while the FDA bases its

work on themes fixed worldwide

and tries to apply them to Africa

H. de C. Thats both true and false. Weredriven by local demand as were veryactive in the field. But there are also anumber of new worldwide commitmentsthat France supports: fairness, inclusion,sustainable development, poverty reduc-tion, which are shared by the global com-munity.

LE MOCI. In your opinion, which

areas of expertise in France offer

really innovative solutions for

Africa?

H. de C. Our companies are re-asses-sing their strategies as the internationalcompetition is coming from China, Indiaand Brazil, and our African partners arealso offering home-grown solutions. Weneed to adapt to Africas market and notjust to the emerging African market. We

need to work with the whole of Africa andpromote innovations that can be distri-buted to respond to the needs and capa-cities of populations. We need to makesome very rapid changes. Some of themajor companies understand this. Weneed to accelerate innovation, adapt ourproducts, instruments and financing toolsto ensure that we stay relevant in a fast-moving world. People are now informedabout everything and we have the impres-sion that Africa is lagging. But its not thatfar behind. The African elite live betweenNew York, Paris, Shanghai and SoPaulo, and they can see that the world ison the move. We need to move at thesame speed.

LE MOCI. Is there a new way of wor-

king at the FDA to keep up with

these changing realities in Africa?

H. de C. The FDA has considerably rene-wed its staff over the last 10 years. Ouremployees are young and highly com-mitted, often with knowledge of all theemerging countries, the result of a highlevel of mobility. We have a more openoutlook and are therefore more inclined toproduce innovation and intelligence andhelp to draw out solutions.

LE MOCI. But are your intervention

techniques new?

H. de C. The development financingindustry is a highly competitive world inwhich there are now large numbers ofprivate stakeholders rubbing shoulderswith the established institutions. In addi-tion, our partners are themselves produ-

cers of solutions and have new demands.You only have to look at the growingpower of the Southern developmentbanks. Demand is moving towards moretechnology, more know-how, creatingmore tools and increasing capacity. Ourworking methods are changing againstthis highly varied background of deve-lopment financing institutions, eventhough we still suffer from a certain slug-gishness and over-cautious managementmethods. We need to position ourselvesreally as producers of solutions. Innova-tion is audacity.The new challenge could be to ensurethat this relationship with the private sec-tor helps to create a renewal for the FDA.We can solve problems and make animpact by working through the localauthorities and without short-circuitingthe Government. The global partnershipcalled for by the United Nations Secre-tary General between cities, companiesand organised civil society is a major tur-ning point for the FDA.Supporting innovation could therefore bea strategic instrument for the FDA. Itincludes technological and financial pro-jects run by institutions and partnershipsin every field and covering every theme.Our aim is to offer a fresh look, be pre-pared to challenge certainties and prac-tices, take part in collective experiments,be part of an ambitious project thatvalues everyones contribution: in short,to be an innovative FDA facing up to thechallenge of Africa.

Interview by Bndicte Chtel andAnne Guillaume-Gentil

We need to work with 100% of Africa andpromote innovations there

One of the keys to sustainable development is innovation. Ledby the Minister of State for Development, Pascal Canfin, andin partnership with the FDA, the Ministry of Foreign Affairslaunched Forum Africa 100 innovations for sustainabledevelopment during the lyse Summit from 4 to 7 Decem-ber 2013.

The aim is to support and help the spread of innovations forsustainable development introduced by African innovators inareas such as health, environment, agriculture, food security,education, gender equality, new technologies and support forcompanies. A first.

African innovators, a preview


Innovative change and French groups

director Lorraine Vilgrain. Somdiaa reso-lutely played the local card: to have astrong brand, dedicated to promotingsugar produced and marketed in Africa.We wanted the brand, on the one hand,to reflect the idea of local production and,on the other, to represent a staple pro-duct at an acceptable cost for all consu-mers, she said recently to Jeune Africa.The groups will to reinforce their pre-sence and proximity in each of these Afri-can markets, and thereby highlight theirspecificity, can also be seen in the recentdecision by the cement producer Lafargeto appoint genuine country bosses, rele-gating to ancient history the regionalmanagement of its African markets thathad prevailed until recently.This intrinsic knowledge of the continenthas allowed another major French ope-rator to generally take a different positionfrom the rest. Bollor Africa Logistics(BAL) has been developing the corridorconcept since the early 2000s. Contai-ner terminal managers generally dont

The major French groups, present in Africa for many years, have sometimes appeared to beleft behind by fast-paced changes in certain African markets. Today, their close knowledgeof the continent has allowed them to become more reactive and develop original strategies,products and approaches, often in partnership with others, increasingly African.


have land. Their strategy ends at the port.Theyre not interested in what happensbeyond it. Our strength and its whatmakes people recognise our expertise is to work on the in-depth developmentof Africa, on opening it up, said DalilaBerritane, Director of Communicationand Sustainable Development. Wemanage corridors that we know by heartand which go right into the remotestparts of the bush. Apart from projects,the major French groups are also focu-sing heavily on African expertise. Theimportant thing for the future is to be ableto have young Africans who have trainedin Africa's leading educational institu-tions, said Benot Coquelet, Somdiaasdeputy managing director. But the diffi-culty is in finding them. For the last twoor three years, weve been publicisingthis using all the modern exchange andinformation media so well-loved by Afri-cans: internet, websites and social net-works. The group is also developing theconcept of apprenticeship and is sup-porting schools that include it, such asthe Institut Suprieur Darwin (ISD) inDouala. BAL over 80 % of whosemanagers are African is also concen-trating on training, with agreements withthe Ecole Polytechnique in Yamous-soukro and the Ecole Suprieure deCommerce in Dakar, as well as its owntraining centres for technical professions.

Total wants customers in itspetrol stations to be able tobuy their fuel and pizzas andcarry out banking operationson their mobile phones.

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Total, Lafarge, Bollor, Somdiaa Today,these major French groups close andoften historic knowledge of Africa hasallowed them to develop new strategiesat a time when competition is fierce onthe continent. They are making more andbetter use of increasingly skilled Africanhuman resources. Total, which, unlike itsrivals, is continuing to focus on the dis-tribution segment, is an example. As theonly major company to operate acrossthe whole African continent, Total is nowfacing a new form of competition that isvery agile, innovative and reactive andthat also offers high-quality service andfacilities, explained Mamadou Ngom,Sales Development Director for theAfrica/ Middle East Division of TotalsMarketing & Services branch.Hence the French groups decision toturn its petrol stations into a sort of one-stop shop. The customer can not onlybuy his fuel, wash his car, buy a hambur-ger or a pizza and withdraw money froma standard cashpoint, but can also carryout banking operations as a result of therapid rise in the use of mobile phones inAfrica. In July, Total signed a partnershipwith Orange for the distribution ofOrange Money, even in the remotestpetrol stations on the continent. In theIvory Coast, a manager explained thatpassengers from the bus station near hispetrol station transfer the money that theydont want to carry on them because ofhighway bandits on to their mobilephones. When they reach their destina-tion, they simply go to the nearest Totalpetrol station to recover their money,explained Mamadou Ngom. Its this close knowledge of the continentand the desire to stick close to the mar-ket and be closer to our consumers that,in 2009, led the French agro-industrialgroup Somdiaa to launch the PrincesseTatie brand, explained development

They are bettingheavily on Africanexpertise



Today, in West Africa, economic growthrates vary between 5 and 10-15 % fromcountry to country. In this context, com-panies have an increasing need forhuman resources skilled at an internatio-nal level, explained Sophie Rivire,consultant and office manager at 2iEParis. Were not content with simply pro-viding our students with knowledge. Wego further and encourage them to usetheir scientific and technological know-ledge to think about how they couldthemselves become providers of solu-tions.An original method put forth by an unu-sual establishment, beginning with its his-tory. 2iE was the result of the merger, in2006, of two inter-governmental esta-blishments in West and Central Africa,the Ecole dingnieurs de lquipementrural (EIER), founded in Ouagadougouin 1968, and the cole des techniciensde lhydraulique and de lquipementrural (Etsher) dating back to 1970. Closeto bankruptcy, EIER and Etsher mergedin 2001 to create the Eier-Etsher Group,which became 2iE in 2006. Its senior management was initiallyentrusted to Paul Ginis, a French engi-neer with a long career in developmentand many years in Africa. He took on thetask of proposing ways of modernisingwhat had become an obsolete model.From 2007, he began the construction ofnew buildings and embarked on an in-depth reform of the institution. The first project was a complete over-haul of the Institutes governance. Wehave four colleges today: the foundingAfrican States plus a few States thathave joined us recently; the technical andfinancial partners, including France; thescientific and academic partners; and theprivate partners, mainly companies, saidSophie Rivire. The second major project was the intro-

duction of tuition fees. That was quitedifficult to introduce, but families soonrealised that 2iE was a real alternative tomore expensive studies in Europe orelsewhere and a totally profitable invest-ment. Today, 40 % of the students areon grants and two-thirds are from themiddle class; the establishment hasnegotiated student loan options with theBank of Africa. Of the 30 nationalitiespresent here, 25 are African.The third project and certainly not theleast was the total redesigning of thecourse and concept to resemble thebusiness world as closely as possible.An increasing number of courses wereoffered in English, as well as in Chineseand Arabic. Other major innovations have been adop-ted this year. Alongside the teaching isthe Technopole, or Technology Park,which is used to support entrepreneur-ship. It includes a company incubator andnursery, backing the Institutes two sha-red research centres, which enablescompanies to validate scientific modelsand benefit from the support of tutor-researchers.

Until recently they were intended for 2iEgraduates. But, as of this year, anyonewith an innovative project can join. Thisfollows on from the international compe-tition that 2iE launched in June, the GreenStart Up Challenge, with the aim of rea-ching people who are looking to set upan innovative company in the greengrowth sector in Africa. 2iEs technical excellence and pragma-tism were further illustrated this year bythe inauguration of the Total Anac labo-ratory, a first in Sub-Saharan Africa. Inan original approach, the laboratoryconsists of a mobile container used forthe qualitative analysis of the fuels andlubricants supplied to Total petrol stationsin Africa. It is open to 2iE partner com-panies and organisations and to studentsfor their practical work.Another innovation in 2013: the Low-cost Bush Taxi training scheme. Anyonewho is looking to learn a specific skill canregister for a certificate and make up hisown training programme. These certifi-cates are short and affordable and thelearner chooses his own course, saidSophie Rivire.The founders vision was to make 2iEnot just a training centre but an instituteto support the development of a conti-nent, said the consultant.

2iE, beyond training, a guide to the continents development

2iE? In the training world, the reputation of the Institut international dIngnierie de lEauet de lEnvironnement (International Institute for Water and Environmental Engineering)is already well established. Its very different concept is now shared with some 2,000 stu-dents on its campus in Ouagadougou and 1,500 others via e-learning.

Innovative initiatives, from the Green StartUp to the Low-Cost Bush Taxi

Today, 40 % of students have grants andtwo-thirds are from the middle class.

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CFAO, the leader in distribution in Africa,has been operating on the continent forthe last 125 years. Carrefour, whichranks second in food distribution world-wide, has just celebrated its 50th birth-day. It took no less than the alliance ofthe two French groups to make the mostof the current drastic turn in theconsumption market in Africa andembark on reinforcing a genuinelymodern distribution network in Africa.Even so, the modern network's level ofpenetration averages only 5 % on thecontinent. African growth is a reality. It can be seenin the emergence of a middle class thatallows us to see a number of large coun-tries as being highly attractive, saidXavier Desjobert, recently appointedmanaging director of CFAO Retail.When we talk about distribution, andparticularly food distribution, the tradi-tional market in Africa accounts for vir-tually 100% of sales. The whole popu-lation goes to these traditional markets,apart from the 1 or 2 % of the upperclass, including expatriates, who havealways bought differently. The emer-gence of the middle class is a real game-changer! said Xavier Desjobert whowas, before he joined CFAO, the formerhead of Les 3 Suisses and Lapeyre, andalso served a period with Casinos inter-national management. And these mid-dle classes are people who are now ear-ning 150 euros a month, which enablesthem to consume in different ways.This middle class represents between12 and 20 % of African countries andis starting to adopt another way of thin-king: wanting to eat differently, taking aninterest in food safety, wanting to havea means of transport, etc. Thats whowere aiming at.To take advantage of this rapid rise,CFAO, with the benefit of its experienceof African markets, has chosen to join

How the emergence of the middle class is a game-changer for CFAO

forces with Carrefour to move quicklyand capitalise on its know-how. A wholeconcept specific to African markets hashad to be designed and produced, withthe food supermarkets or hypermarketsas the driving force behind the shoppingmalls that CFAO intends to set up inpartnership with other major chains.First of all, theres the offer in thesesupermarkets: the buying power of thesetargeted populations is increasing fastbut is still low compared to other majoremerging regions; national dietary habitsand, more widely, in general consump-tion mean that the same things can't besold in Douala as in Abidjan. On the other hand, the standards arevery similar to those used in maturecountries. Middle-class Africans occa-sionally travel to Europe. They may havefamily in France, the United Kingdom orthe United States. Through television,the Internet and mobile phones, Africanpopulations also have a fairly accurateview of whats on offer in the major deve-loped markets. Its what we want to offerthem through the one-stop shoppingconcept: standards in terms of services,food safety, cleanliness, catchment area,product ranges and merchandising thatare on a par with international standards.Other specificities of Africa: problemslinked to security which are totally dif-ferent to Europe and even Asia andthe limited size of the catchment areas.In large African cities, its often extre-mely difficult to move around, so the

catchment areas are relatively small.Weve built this into the project defini-tion and sized the shops accordingly.On a human scale, more compact,more human than in the vastness of ashopping mall like Vlizy with its300,000 m2, these shopping centreswill contain 20 to 50 shops and inevita-bly some food and drink outlets. One ofthe features specific to Africa comparedto the rest of the world is the desire forconviviality. These places which willhave to be air-conditioned, secure andmodern will clearly have to be dedica-ted to consumption, but must also beplaces where people go for pleasure, tomeet each other and talk, explained thehead of CFAO. On the food side, the two groupsclearly intend to work on building uplocal agri-food chains. At the momentwe can source between 15 and 20 %of our products locally. Eight sites have been chosen for the firststore locations Cameroon, Congo,Ivory Coast, Gabon, Ghana, Nigeria, DRCongo and Senegal with the first ope-ning planned for the Ivory Coast in 2015.Historically, CFAO knows these coun-tries very well. Theres a real strategythat ensures that our know-how whichis the very essence of the group isbased on our knowledge of the Africanworld. And it had to be shared with agroup like Carrefour. Were totally com-plementary to each other, said XavierDesjobert.

Urbanisation, the rise of the middle class and growth have led CFAO, one of the long-standing pillars of distribution in Africa, to launch into the creation of one-stop shopping malls.

MASS CONSUMPTION

CFAO has chosen to join forces with Carrefour to move quickly and capitaliseon its know-how


MASS CONSUMPTION

The green click solution to rising electronic waste, by Les Ateliers du Bocage The computer revolution in Africa is giving rise to a real electronic waste problem. LesAteliers du Bocage, a member of the Emmas community, has built up an effective and ori-ginal operation.

Somebody needed to think of it! We canall remember the thousands of plasticbags hanging from trees, polluting theAfrican landscape and killing livestock.What we have less in mind, but which ismuch more polluting, and increasing fast,is electronic waste. Everyone applaudedthe generational leap in telephony andelectronics driving Africas economicgrowth, boosting the middle classes andbringing Africa firmly into the globalisedworld. But what should be done with that mobilephone or computer when it is beyondrepair? And worse still, what should bedone with the thousands even millions of used mobiles sent in whole cargoes toAfrica to be re-used, in theory, but thatdont work? Apart from South Africa, thecontinent doesnt have any recyclingplants, which is a concern to manyplayers, particularly in the private sector,as this is bad for their image, but also topublic authorities: the Economic Com-mission for Africa has written a whole hostof reports on a key issue for Rio +20.Faced with this dilemma, Emmas cameup with an ingenious answer early on. Inthe early 2000s, the movement foundedin France by Abb Pierre in 1949 set upan Economic Support branch within itsorganisation and adopted the concept ofan integration company. The associationLes Ateliers du Bocage was one of thevery first. We started working with Africa a longtime ago and when we wanted to intro-duce some support projects, we contac-ted Burkina Faso, where wed alreadyhelped set up dispensaries, build wells,etc., explained its founder and directorBernard Arru. As one of our main activi-ties is recycling computer equipment, wesuggested supplying this equipment tostudents. There was no question, however, of thesupport organisation being likened to allthose that send ships full of so-called

used equipment, that are in reality a mixof waste and used equipment! From theproject's inception, Les Ateliers duBocage undertook to send only equip-ment in working order and to repatriatethe waste once the computers were atthe end of their life cycles, not just thosesent initially by Les Ateliers but also thosethat embassies and companies in Africawanted to throw away. Alongside ourstores and after-sales service workshopsin Deux-Svres, we set up a workshopfor dismantling computer equipment sothat we could repatriate cathode raytubes, batteries and electronic cards forwhich there was no outlet in Africa, apartfrom South Africa.The operation was repeated for themobile phone sector, in partnership withthe French operator Orange. As part ofan eco-citizen policy launched amongstgreat advertising fanfare, Orange encou-raged users, firstly in France, to discardtheir old mobile phones in an Emmas-Orange collection bin. These phones arethen sent to Les Ateliers du Bocage,whose employees give them a secondlife and send them to Africa. At present,an average of 40,000 mobile phones areprocessed every month. Five years ago,Les Ateliers du Bocage and Orange joi-ned forces to set up a similar operation

Green Click in Africa. This quiteunique operation began in Burkina Fasowith our first dismantling workshop.Today, were in Benin, Madagascar, Nigerand the Ivory Coast with Orange: we col-lect all the mobile phone waste, separateit by materials and regroup it. Then, whatcan be treated locally is treated locally,but most of the waste including pollu-ting waste (batteries, electronic cards,plastic shells and chargers) is repatria-ted to our site in Deux-Svres, which hasall the authorisations required to treatwaste and recycle it, explained BernardArru. Les Ateliers du Bocage are obviously notthe only ones doing this in Africa. Butthey were pioneers. HP and Dell havealso set up an IT waste collection, but inEast Africa. We had the idea at roughlythe same time, but they took longer toset up the legal arrangements; wed star-ted repatriating containers when theywere still at the study phase. The Chi-nese and the Indians are also very activetoday, but are only interested in wastethat contains precious metals.And Green Click results? Over 40,000tons of electronic waste was collected in2012 and, of this total, 33 tons of locallynon-treatable waste was sent to France.South-to-North trade exists too!

Green Click ispresent in BurkinaFaso, Benin,Madagascar, Nigerand the Ivory Coast.

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The appellation dorigine (AO) is notused very widely outside France. Manycountries and increasingly in Asia have preferred to opt for geographicalindication (GI). AO is now recognised byonly the 26 countries that signed the Lis-bon Arrangement in 1958, and is mana-ged by the World Intellectual PropertyOrganisation (WIPO), which is attachedto the United Nations Organisation.Not as strict as the appellation, the GIconcept was introduced in 1994 by theWorld Trade Organisation (WTO) agree-ment on the Aspects of Intellectual Pro-perty Rights linked to Trade (AIPRT). Ittherefore has worldwide scope. Its prin-ciple is simple: if an essential link is esta-blished between the qualities, characte-ristics or reputation of a product and itsgeographical origin, it will be protected.However, each State remains free todecide on which legal instruments it willuse to protect quality linked to origin. The EU protects only appellation dori-gine and geographical indications des-ignating agricultural and food products.In French-speaking Africa, however, theBangui Agreement which gave birth tothe African Intellectual Property Office(AIPO), revised in 1999 has at leastthree particularities: it protects craft pro-ducts in addition to agricultural and foodproducts; it is a uniform law that appliesin its 17 member states; and, until 2013,no product had been registered. In the last few years, Europe, and espe-cially France and Switzerland, has stron-gly supported taking practical action.Since 2010, the French DevelopmentAgency (FDA) and Cirad have workedhand-in-hand with the AIPO. Productshave been chosen by the stakeholders inevery country involved. These are pilotproducts most likely to be registered asGI as they already have a reputation andthe industry is already organised, explai-

Africa begins to defendits geographical indications

ned Delphine Marie-Vivien from Cirad.And, in 2013, the first three productswere awarded geographical indication bythe AIPO: Penja pepper in Cameroon,and Oku honey and Ziama-Macenta cof-fee in Guinea. Although the instrument has beenspread using European models, each setof specifications for each GI is based onlocal practices: the Penja pepper gro-wers want their production packed onsite; the Oku honey producers have saidthat they want to work with the other pro-ducers on the other side of the mountain.In fact, the producers define the specifi-cations in accordance with their localpractices, which sets them apart from thegeneric and globalised standards suchas Fair Trade, Rainforest, Ecolabel, etc.There may have been a bit of copyingbut, overall, each regulation is now spe-cific in each WTO country, and each GIis based on the specificities of a place,said the specialist. France has financed a number of training

sessions on GI in Africa and has helpedtowards the publication of a guide withthe FAO and the Technical Centre forAgricultural and Rural Cooperation (CTA)EU/ACP. In reality, France is keenly inte-rested in the development of this notionin Africa as its a source of added valueand therefore development, and alsobecause the more the GI or AO concept the philosophy is understood andadopted, the more European productsthat are identified in this way are protec-ted.For Europe, its also a way of promotingits concept of differentiated agriculture,which includes small sources of agricul-ture, differentiated territories and a diver-sity of production. This has deep cultu-ral roots in France and Southern Europe,said Delphine Marie-Vivien.And the concept is making its way inAfrica. Currently under study are pro-ducts as varied as Galmi Violets in Niger,Kovi rice in Togo, Pays Dogon shallots inMali, Casamance honey in Senegal,Gisovu tea in Rwanda, Mangrove rice inGuinea-Conakry, Korhogo and Fakahacloth and Katiola pottery in the IvoryCoast.

The notion of geographical indications (GI) goes back to the dawn of time. We all remem-ber myrrh from Ethiopia and the Three Kings The notion is mainly used by the coun-tries of Southern Europe, particularly by France, known for its appellations doriginecontrles (AOC). Africa is now beginning to use these labels with Frances help.

MASS CONSUMPTION

The specifications for each geographicalindication (GI) are based on local practices

Cirad

In Cameroon, Penja pepper growers wanttheir production packed on site.


330 million young Africans on the jobmarket in 2025, the equivalent of thepopulation of the United States In total,in 2050, Africa will have 600 million morepeople than the current population ofChina and will represent 2.5 times thatof Europe. It is a major challenge drawingthe attention of many African researchers from the African Union (AU), Nepad(New Partnership for the Development ofAfrica, an AU programme), the AfricanDevelopment Bank (ADB) and elsew-here, including ILO, UNPD, OECD. InFrance, its the Centre for InternationalCooperation in Agronomic Research forDevelopment (Cirad) and the FrenchDevelopment Agency (FDA). Confe-rences, debates and colloquiums followin quick succession.One of the solutions is agriculture and therural world. Ibrahim Mayaki, executivesecretary of Nepad, believes that agricul-ture is one of the major keys to growth,jobs and the reduction of poverty. Toachieve this, Nepad recommends drawingup National Agricultural Investment Plansto allocate a minimum of governmentrevenues to this vital economic sector.There are compelling reasons behind this.The agricultural sector employs 60 % ofthe working population, and up to 80 %in the Sahel countries. It is the main sec-tor of economic activity and will remainso for the next 15 years. The enduringweight of agriculture can be explainedby several factors: the lack of real indus-

When researchers scrutinise job markets

trialisation despite considerable urbandevelopment; poor development pros-pects in other business sectors in ahighly competitive international context;and widespread tension in job marketsmaking it difficult to emigrate to the deve-loped countries, noted the Frenchresearch organisation Cirad. The agencybelieves that priority should be given tofamily agriculture and subsistence sec-tors. In particular, the relationship bet-ween town and country needs to be rein-forced. In a study entitled LAfrique des villes aencore besoin de lAfrique des champs(Urban Africa still needs rural Africa),researcher Bruno Losch points to thespecial features of Africas developmentcompared to the other regions of theworld. The development economy hasbeen conceptualised in reference to thestructural transformation processesobserved historically in the differentregions of the world and characterisedby the gradual move from economiesbased on agriculture to more varied confi-gurations based on industry, then ser-vices, he explained. Sub-Saharan Africais an exception to this process. Andbecause of this exception, he believes

that industrialisation should not be consi-dered as the priority response to Africasdemographic and employment chal-lenges; preference should be given tosupporting existing activities, which aremainly based on the informal urban andinformal rural economies (). In the infor-mal rural economy, the role of the agri-cultural sector remains central and deci-sive in terms of absorbing anever-expanding rural labour force at therisk of making urban adaptation evenmore difficult as a result of an increasingexodus and accelerating the processof economic diversification.Agricultures ability to absorb a part ofthe working population depends mainlyon the viability of farms, which brings usback to questions linked to the conditionsfor accessing national and internationalmarkets, the potential for increasing theproductivity of land and labour, improve-ments in the offer of public assets, thestructuring of farming organisations andthe development of human resources,say the researchers from Iram*.

* FDA Cahiers A savoir no. 5, Demographictransition and jobs in Sub-Saharan Africa,April 2011.

Some 330 million young Africans are due to arrive on the job market between now and2025: a major concern not only for the continent but also for its European neighbours andthe world. The FDA and Cirad, among others, are participating in discussions to reachlong-term solutions.

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To get a better idea of the rural transformations that are takingplace, a joint operation between Nepad, Cirad and the FDAled to the production and publication last July of an originalatlas, Une nouvelle ruralit mergente* (A new, emergingrural community). It forms part of Nepads new Rural Futuresprogramme. Demography, urbanisation and most impor-

tantly? the development of communications have profoundlychanged the nature of rural Africa and thrown a new light onthe relationship between town and country.

*Une nouvelle ruralit mergente Regards croiss sur les trans-formations rurales africaines is available for consultation on the Ciradwebsite, www.cirad.fr, publications page.

An original atlas, the result of joint work

One of the solutions is agriculture and therural world.


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In Sub-Saharan Africa, there are still oftenfew options between the large 4 or 5-star hotels or the cheap hotel. There islittle choice for African businessmen,used to travelling abroad, and thereforeto certain standards, but dont alwayshave the means or the inclination to stayin large hotels where, when you wake up,you dont know whether youre in Shan-ghai, Paris or Dakar. There are threesociological currents in the hotel industry.Firstly, globalisation, i.e. profiles that arethe same wherever you are in the world.In contrast to that, you have profiles thatare based very much on identity, very roo-ted in local culture. Onomo has the dis-tinctive feature of being part of the thirdsociological current, which is a mix of cul-tures, explained Philippe Colleu, chair-man and founder of the Onomo Interna-tional hotel chain.When it comes to designing the hotel,

we take what interests us from bothWestern and local culture. 'Where I am'.For example, the surrounding wall of theDakar hotel is made of unbaked clay, thefurniture and fabrics are designed andmade in Dakar and the welcome pro-ducts - shampoo, shower gel, etc. arenatural and made in This, said the for-mer Managing Director Africa of theFrench Accor Group a leading interna-tional hotel professional who dreams ofsheets made of local cotton, among otherarticles, for his hotels. He also points outthat furniture made in Dakar was expor-ted to the Onomo hotels in Libreville andAbidjan. In the latter, the new mattresseswill be made of very comfortable localorganic latex. African culture in the Onomo hotels isntjust a matter of supplying local products.Its about the whole structure, the des-ign of the buildings, which illustrates Phi-lippe Colleus close knowledge of Africaand also that of his partner of the time,Christian Mure, also a former Accor exe-cutive. The French architect Arnaud Gou-jon, who designed the first two hotels,

Onomo International: betting on a Made in Africa hotel chain

was given the brief that they should bemid-way between two cultures, betweentwo worlds. Although each Onomo aims to identify asclosely as possible with its location, it stillcontains roughly the same concepts. Thehotel looks inwards, with the bedroomsoverlooking a large patio, mainly for securityreasons, but theres also an aestheticaspect. The reception hall plays a majorrole. Its a multi-purpose hall, and large incomparison with international standards forthis range of hotel. Everything is builtaround a central, multi-purpose space witha reception desk, a bar, a restaurant andwork and relaxation areas. You decide whe-ther you want to have lunch, enjoy a drink,meet someone or have a business mee-ting. Its like the village hut. In Africa, itsvery important to be able to welcome visi-tors to your hotel; Im not sure theres thesame need in Europe. Its specific to Africa.And 70 % of the hotel chains clienteleis African, mainly businessmen lookingfor a professional, secure, affordablehotel, said Philippe Colleu: prices havebeen calculated in accordance with theper diem rates practised in the region.The African market is currently the mostprofitable, said the specialist.

So, local elements combined with globalfor security, professionalism, facilities andexperience. Were doing a lot of workon globalisation and are currently signingcontracts with major operators to bringinteresting technological applications intothe bedrooms and into our payment andbooking methods. An attempt to keepup with the mobile revolution in Africa.While, 10 or 15 years ago, sophistica-tion came from elsewhere, today thetrend is changing. Some Africans stilllook outside for references, but othersare very rooted in local identity and say'Thats what we want!' In reality, Im anentrepreneur arbitrating between Europeand Africa, said the chairman. And he is very loyal to Africa. The Onomochain intends to expand, but only on thecontinent, where the group has many pro-jects. The next one is due to open inBamako by June. Then Lom and Free-town.

Following on from their experience in the Accor Group, Philippe Colleu and Christian Mureset out to develop a hotel chain designed for Africa.

Although each Onomo aims to identify asclosely as possible with its location, it stillemploys the same overall design. Opposite,the Libreville Onomo.

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The hall, it's really the village hut


Whats grey matter doing to help Africaface up to its challenges? As far as healthis concerned, France has been among theleaders! We obviously think immediatelyof the famous 15 French doctors whowere moved by the war in Biafra to foundMdecins sans Frontires in 1971. It isthe independent spirit and impertinencethat has been rewarded, said MSF chair-man Philippe Biberson about the NobelPeace Prize that the organisation wasawarded in 1999. Today, a large number of research insti-tutes are present in Africa, trying to copeas best they can with local realities, oftenusing the latest technology. This fieldpolicy is similar to the approach used bythe Pasteur Institute whose role is tomeet the expectations of the Ministries ofHealth, explained Marc Jouan, generalsecretary of the international network ofPasteur Institutes. Of the 32 institutes lis-ted worldwide, nine are in Africa, theoldest which is over 100 years old inMadagascar. The distinctive feature of the Pasteur Ins-titute, stressed the general secretary, isfirstly, that it has a group of institutes thatform part of an international network, andsecondly, that it has long-term structuresthat enable it to develop laboratories andaccommodate teams irrespective of theirorigin. One of our strengths is that weve

Health: how the Pasteur Institute supportsresearchby Africans

managed to maintain and preserve them,and to develop and modernise them.Today, in Africa, these institutes are at theheart of economic, demographic and epi-demiological evolutions and of changesto the continents ecosystems.One of the Institutes priorities today is itssupport for the emergence of an Africanscientific community. Over the last fewyears weve seen the African governmentsand universities take an interest in sup-porting this research. Its a complex issuebecause it aims to combine two often dif-ferent populations those involved inresearch and those involved in diseasemonitoring and make them even more

efficient in the face of new challengessuch as the emergence of new infectiousdiseases and epidemiological transition,i.e. the appearance on the African conti-nent of pathologies that are those of theindustrialised countries: diabetes, cardio-vascular diseases and high blood pres-sure. In 2012 the Institute designed a new pro-gramme to enable young researchers whohave completed an international-level doc-torate to return to their country or region oforigin on comfortable terms and set upindependent research groups: two resear-chers were selected in 2012 to run agroup in Africa.Another priority is to modernise and rein-force local laboratories. Two recent exam-ples of this: the Pasteur Institutes in theIvory Coast and Central Africa have beenequipped with P3 security laboratoriesthat meet international bio-security stan-dards and can carry out local analysis ofsamples suspected of containing exoticpathogenic agents. The policy was rewar-ded in 2012 by the Dedonder-ClaytonPrize awarded to two researchers from thePasteur network, one from Cameroon.

Many French institutes and research centres operating in the health sector have been wor-king for years with and in Africa, accompanying the continent through its radical changes.The Pasteur Institute is one of the oldest. It supports researchby Africans.

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French health institutes are also looking closely at the acces-sibility of drugs, a topic that is in line with World Health Orga-nisation objectives. For example, the pharmaceutical groupSanofi has worked in collaboration with the University of Ber-keley, the Institute for OneWorld Health (IOWH) and the Bill& Melinda Gates Foundation to cut the cost of drugs used tocombat malaria, one of Africas plagues, and in particular theprice of one of the components, artemisinin. It has designeda synthetic product which went into production in 2012. The

project was initiated by Sanofis Access to Drugs Depart-ment, whose aim was to supply ACT treatments (ArtemisininCombination Therapies) at cost price to populations withoutthe means to pay for them. To achieve this, we had to find abalance price that wouldnt be damaging to the sources ofartemisinin originating from traditional agriculture. The aimwas to create a balance between production and costs andavoid speculation.

Drug accessibility at Sanofi

The emergence of a scientific community


Theres a tremendous desire to consumein Africa, but the ability to do so remainslimited. Hence the success of prepay-ment for mobile phones, one of severalsegments in which Oberthur Technolo-gies (OT) has taken a position and deve-loped its offer to meet the special needsof African markets. Fifteen years ago, it was in Africa that

mobile phone operators invented pre-payment. Today, over 70 % of the conti-nent is equipped with a mobile phonewith monthly recharges by the user at acost of 7 to 15 USD, which is equivalentto several hours of calls a month, explai-ned Julien Traisnel, MoreMagic BusinessDevelopment Director at OT. First came the scratch card offers usedto recharge a prepaid account. TheFrench group then moved into electronictop-up centres. You no longer have tobuy a card and scratch it. You give yourphone number and youre sent an SMStelling you that your account has beenrecharged. This cuts the operating costsand offers a more user-friendly service. Italso meets the special needs of the Afri-can market and its appetite for specialoffers. Price/usage flexibility is very strongin these regions where you can launchclosely targeted, effective promotionalcampaigns, such as, for example, offe-ring double the number of free calls orSMS for any recharge carried out on theday of a football match sponsored by theoperator.The supplier of secure identification solu-tions has transposed the prepaymentsystem to bank cards: sold in supermar-kets, you can recharge them withouthaving a bank account: a major opportu-nity for a continent in which banking ser-vices are still available only to the weal-thiest 10 to 15 %, said the specialist. And from prepaid bank cards it was onlya short step to Mobile Money, a conceptthat was actually invented for Africa. It

Prepaid cards: Africas mobile money revolution

was launched in Kenya and then spreadacross the continent and on to Afghanis-tan, the Philippines, etc. In fact, it wasthe operators who began to take an inte-rest in this non-banking part of the popu-lation and designed a prepaid wallet, vir-tual therefore electronic, linked to amobile phone, explained Julien Traisnel.You either have a smartphone applica-tion, an SMS menu or a USSD menu.You open an account with a MobileMoney agent approved by the mobileoperator and you deposit money via thedistribution network. You can then trans-fer this money to someone who has amobile phone hosted by the same ope-rator. So you can pay your bills, tuitionfees, etc. The same operator: Oberthur Techno-logies wanted to free the African consu-mer from this restriction and createdinter-operability. Up to then, a prepaidphone or bank card could only be usedbetween clients of the same mobilephone operator. This was the closedloop or closed garden system. OT,which manufactures and supplies bankcards worldwide, designed a MobileMoney offer with a payment card thatcould be used in any network that accep-ted these cards: the Companion Card.All that remained was to transpose the

wallet idea to television. As for mobilephone prepayment and prepaid bankcard dematerialisation, OT was chosenby Canal+ Overseas last July to demate-rialise the renewal of prepaid televisionsubscriptions in Africa. In other words,Canal+ subscribers will be able to ins-tantly recharge their pay-TV account fromtheir sofa, using their mobile phone.Today, were having the greatest suc-cess with Mobile Money services in thebroader sense, i.e. dematerialised finan-cial services via a mobile, in Kenya,Uganda and Tanzania, in other words,East Africa. Its peer-to-peer: rural wor-kers sending their money via MobileMoney to their families in town. The activity is having an increasinginfluence on African economies. In return,Africa has become an increasingly impor-tant market for the French group and nowaccounts for some 10 % of its worldwideearnings.

Telephones, banking services and television for all. These targets set by Oberthur Tech-nologies, which specialises in smart card technologies, are made possible by demateria-lised prepayment. A revolution that began in Africa.

TECHNICAL PRODUCTS

Today, over 70 % of the continent isequipped with a mobile phone with monthlyrecharges.

Tota

l

The wallet idea, transposed to television


Does a group like Orange have the capa-city to meet the African market's specialneeds? Its a big subject. The Frenchtelephone operator is established in 18countries on the continent and sees themas 18 different markets The key factoris our ability to adapt our innovation coun-try by country. The priorities are often verydifferent from one country to another and,thanks to the deployment of our network,we can listen to the market and find theright innovations, even though theyresometimes small markets. It also allowsus to identify our objectives for the yearsto come, explained Arnauld Blondet,Oranges marketing director for the emer-ging countries, who also pointed out thatthe French group had just been votedtelecommunications company of theyear in Africa by Frost & Sullivan preci-sely for its use of bold growth strategies.This in-house policy is echoed by Africanconsumers' hunger for all kinds of inno-vation, which can sometimes lead tounexpected results. People have so littlethat any innovation finds a customer, ause, etc. Which is why we mustntconstruct the innovation for a single,unchangeable purpose; the innovationneeds to be placed in the users hand.When we launch a service, we see moreand more that, at the end of the day, itsused for something other than we initiallyimagined.This hunger leads to an acceleration inevolutions much greater than what isseen in mature markets like Europe. Thelow age of populations means that theyrecapable of making technological leaps:They can go from a total absence of tele-phones straight to a smartphone. Theyremoving into data more quickly than inEurope; Orange Money type services arehugely successful. So, in certain areaswere moving forward more quickly thanin Europe. The same applies to dynamismand the ability to deploy new services.

Telecommunications: user-driven innovation

And were also testing concepts in Africathat could be of interest to Europeancountries.The example of the deployment of Face-book USSD in Africa in early 2012 is ins-tructive. Its Facebook without the Inter-net! said the director, who sees it as realprogress in the spread of the Internet forall. USSD technology allows users ofbasic telephones (not smartphones), withno Internet access, to link up to the socialnetwork. In practical terms, the usersends a code to the Orange platforms,which send back a text page that lookslike a web page, but with no images orvideos. Here, too, the use of Facebookis instructive, as its a real means ofmeeting people and working together. In some African countries, clients use itin an almost professional way, severalhours a day, as a communication and pro-motional tool. So, from the same baseand the same services, were seeingreally specific uses and habits that wehadnt always identified very scientificallybefore. Oranges major success in Africathis year was the Emergency Credit.Depending on the markets, between 20and 50 % of clients are already using iton a monthly or ongoing basis. It comeseither in a prepaid version, i.e. aconsumption credit that allows you toadd credit when youre down to zero, or

in a Pay for Me version which is nothingless than the old reverse-charge call thatwas well-known in Europe once upon atime. However, the great difference andinnovation compared to the latter is thatthey are transposed to mobiles, specifi-cally for the African market. That too iswhat innovations about: re-usingconcepts but adapting them, said thedirector. What are the future themes for Orangein Africa? The Mobile Government,without a doubt, in line with what othermajor French companies are doing, suchas Gemalto and Oberthr Technologies(see our article), in partnership (or not)with Orange. While the operator sees theslowness and complexity of decision-making as the major difficulties in settingup these government programmes, theprocess is launched and the demateriali-sation of administrative documents is ine-vitable. People are already using OrangeMoney to register for universities in theIvory Coast, Mali, Senegal, Niger, Mada-gascar and Cameroon, said ArnauldBlondet. Before, you had to turn up atthe registration office with a wad of notes.In Niger, for example, theres a real beforeand an after.

In early 2011, Orange set up a Technocentre in Abidjan to identify the specificities of Afri-can markets and, in particular, to develop multimedia, even though most Africans haveentry-level mobile phones rather than smartphones.

TECHNICAL PRODUCTS

Orange is testing new concepts in Africa(here, its HQ in Douala).

F. P

argny

Deploying Facebook without Internet


Africa is on the verge of an economicboom like the one we saw in China 30years ago and India 20 years ago. All thelights are green. And in most countries, theclimate is very favourable to their moderni-sation and democratisation. And thatswhere we come in, explained Eric Billiaert,Gemaltos communications director forgovernment programmes. Democracy inAfrica? Weve been talking about it fordecades. But now somethings really hap-pening. To ensure more transparent elec-tions and strengthen democratic pro-cesses, weve been called in by a numberof African countries in the last two years towork with them before the elections to setup biometric records of the entire popula-tion in order to more clearly introduce thatsimple principle that we all know: one voice,one vote, said the director.Among other sophisticated technologies,the world leader for digital security has des-igned a sort of suitcase that is autonomousas it is battery-operated, fully equipped witha PC, light, camera and fingerprinting sys-tem, etc. These suitcases are transportedthe length and breadth of the country toregister people, check their identity andissue them with a digital document forvoting. Project management has becomean essential part of our work as it requiresregistering as was the case in BurkinaFaso 6 million people in 3 months, trai-ning 3,000 others and sending 200 t ofequipment and 3,500 registration kits. Ithas become our business. Were upagainst the best in Asia because theyreobviously on the African continent and veryaggressive; were also up against Germanand local competitors too. The suitcases are competitively priced,and specially designed for Africa to standup to the rain, tropical temperatures andconditions sometimes so Spartan thatregistration operations have to be carriedout for 8 hours at a stretch in schools, withno electricity, in remote corners of Africa.

Mobile digital solutions to strengthen democracy

South Africa has decided to turn anotherpage in its post-apartheid history by rene-wing all of its national identity cards. Havingdrawn up very precise specifications, Pre-toria decided to implement its project andGemalto, awarded the tender, delivered thenew national digital cards to South Africasnational print works so that the first cardscould be issued on 18 July last year: Nel-son Mandela was one of the first reci-pients for his 95th birthday! Apart fromthe highly symbolic aspect, these secureidentity cards open the way to the deploy-ment of a range of electronic governmentservices in the future. Other pages are turning, again with thisFrench technology that aims to be innova-tive and adapted to the African context. Forexample, Gabon has embarked on a wide-ranging social security programme, a wayfor the government, explains Eric Billiaert,to redistribute the nations resources, ema-nating mainly from oil, through social bene-fits. And one of the key elements of the spe-cifications was to ensure that these benefitswere redistributed to the right people. Theimportant thing was to identify nationalsquickly and securely and to tell the othersthat the programme was aimed only at theGabonese; and also to say that, although

the range of benefits is limited for themoment, it is available to all, starting withthe most destitute. To me, thats a sign,said the director.In Algeria, Gemalto designed a new elec-tronic health system (CHIA) in 2009. Over13,500 practitioners were identified usingtokens (USB keys fitted with a micropro-cessor) and a patient who tries to see adoctor for the fourth time in a week has hiscard frozen. So, some great leaps forward for many Afri-can countries, and even in relation toEurope, particularly France, where werestill working to dematerialise births, mar-riages and deaths, which are still in theregisters. But Africa isnt the only winner.For the French group, the continent hasbeen a very strong vector for growth sincearound 2009. Of the 80 government programmes inwhich Gemalto is or has been involved, 15% are in Africa. Each client country oftenhas one, two or even three programmes.The economic boom in Africa is encoura-ging countries to opt for this sophisticatedtechnology, concluded Eric Billiaert.

Gemalto, world leader for digital security, has found markets booming in Africa. Majortechnological leaps are underway, improving what had become reoccurring problems inAfrica: governance and citizenship.

TECHNICAL PRODUCTS

Eric Billiaert, Gemalto communicationsdirector for government programmes.

D.R

.

Digital suitcases helping towards demo-cratic elections


ECONOMIC ANALYSIS BY ZONE AND COUNTRY

ATLANTIC

O

C

EAN

IN

DIAN

OC

EAN

Rabat

Algiers

Tunis

Tripoli

Cairo

Khartoum

Juba

Asmara

MogadishuNairobi

Victoria

Djibouti

Moroni

Dodoma

Pretoria

Gaborone

Windhoek

Luanda

Cabinda

Brazzaville

Kinshasa

Libreville

Sao Tome

AccraLome

YaoundeBangui

Ndjamena

Malabo

Abuja

Porto Novo

NiameyOuagadougou

Bamako

Monrovia

Freetown

Conakry

Bissau

Banjul

Praia DakarNouakchott

Yamoussoukro

LusakaHarare

Lilongwe

Mbabane

Maputo

Maseru

Antananarivo

Port-Louis

BujumburaKigali

Kampala

Addis Ababa

ZAMBIA

MALAWI

NIGERIA

BENIN

Port-LouisMAURITIUS

ALGERIA

L IBYA

TUNISIA

EGYPT

SUDAN

SOUTH

SUDANETH IOPIA

KENYA

RWANDA

BURUNDI

TANZAN

IA

MoronCOMOROS

ANGOLA

(ANGOLA)

Mbabane

seruSWAZ ILAND

MaseruLESOTHO

NAM I BIA

BOTSWANA

DE M. RE P.

OF CONGO

CE NTRAL AFRICANRE PU BLIC

UGAN DAM

OZA

MB

IQU

E

CAM

EROON

CHAD

GABON

N IG E R

EQUATORIAL

G U I N EA

G U I N EA

BISSAU

SI E RRA

LEON E

LI BE RIA

IVORY

COAST

GH

AN

A

SAO-TOM E

AN D PRI NCI PE

maramAsmAA mE RITREA

DjiboutiDJ I BOUTI

SO

MA

LIA

ogad s u

Vic

toria

niniOS S

EYC

HE

LL

ES

MOROCCO

MALI

BU RKI NA

FASOSE N EGALGAM BIA

CABO

V E RDE

TO

GO

SO

UTH

AFRIC

A

CO

NG

O

MA

UR

ITAN

IA

GU

INE

A

MA

DA

GA

SC

AR

ZIMBABWE

North Africaincluding the AMU

Arab Maghreb Union (AMU)

Economic Communityof West African States(ECOWAS) including UEMOA

Economic and MonetaryCommunity of Central Africa (CEMAC)

Countries withinthe franc zone

East Africaand the Indian Ocean

Southern Africa DevelopmentCommunity (SADC)

Norinc

Ecoof (

AraUni

Eco

Ara

Eco

Five zones for one continent


The 2013 results of the CIAN survey

This 25th edition of the CIAN Barometer presents the business pros-pects of French companies established on the continent, for 31 Africancountries over the period 2012-2014, along with their assessment ofthe business environment. This testimony from the people in the field isa special feature of the Barometer and makes it a unique reference toolfor investors.

The CIAN Barometer is drawn up following a sur-vey carried out every summer among the heads ofsubsidiaries or companies established in Africa,who are asked to comment on a number of points,divided into two parts: the first, cyclical, focuses on the companys busi-ness prospects: earnings, investment, profitability,claims on the Government and claims on local pri-vate industry; the second, more structural, concerns anassessment of the business environment in thecountry concerned: 39 criteria spread across sevenmajor headings infrastructures, administration,the economy and finance, social, sociocultural,input costs and sustainable development.

In 2013, 514 company executives commented onthe progress of their activities across the entireAfrican continent (70 in North Africa, 183 in WestAfrica, 121 in Central Africa and 140 in Southernand Eastern Africa and the Indian Ocean).

The overall trends in the results are very much inline with previous years companies are doingprofitable business despite a difficult business envi-ronment in Africa but the analysis by region helpsto qualify this continental overview. However, onepoint emerges that is common to all four regions:

an overall deterioration in the business environmentin which investors are operating.

An assessment of company activity 2012-2014

Methodology

The survey focuses on the trends shown by fiveindicators over the financial years 2012, 2013and 2014: earnings: growth, stagnation, decline; investment: recovery, interruption, reduction; results: in profit, break-even, deficit; level of sovereign debt: high, normal, low; level of debt over the local private sector: high,normal, low.The graphs on the following page show the trendsby large geographical areas, which are then bro-ken down for each of the 31 countries assessedthis year.

Africa is a dynamic and rapidly-growing market, ascan be seen from the activities of the companiesthat have invested there. Prospects are positivefor the vast majority of them.

Their earnings have increased and should

continue to do so for the coming year: 58 % ofcompanies surveyed declared higher earnings in2012, 51 % in 2013 and 62 % in 2014. The trend in West Africa, although positive, is theleast so: 52 % in 2013 and 58 % in 2014. Fore-casts are the most encouraging in the Maghreb,where only 44 % of companies enjoyed a growthin earnings in 2013, while 20 % more (64 %) pre-dict growth for 2014.Certain countries stand out as having very clearpositive or negative prospects, highlighting thevitality of the English-speaking markets in Africa,whereas the French-speaking markets demons-trate a certain sluggishness.

ACKNOWLEDGEMENTS

The people responsible for the CIAN survey would like to thank all thecompanies that took the time to respond, along with all the organisa-tions that helped to distribute it locally: CIAN members, external tradeadvisors, local French chambers of commerce and industry, employersorganisations and French economic missions and embassies. The responses received directly from operators make this Barometer theonly genuine field survey available to investors and the stakeholders inAfrican development. It assesses only those countries for which thenumber of responses received was considered sufficient in proportion toFrench economic presence in the country.


ECONOMIC ANALYSIS BY ZONE AND COUNTRY

2012

2013

2014

2012

2013

2014

2012

2013

2014

2012

2013

2014

2012

2013

2014

49 17 34

33 2344

2764 9

43 3126

3743 20

2651 23

54 20 26

2169 10

2757 16

37 2934

37 36 27

34 42 24

27 52 21

24 53 23

26 61 13

Global trend in profit (%)

Profit Balanced Loss

Government's outstanding liabilities (%)

Global trend in turnover (%)

Global trend in investment (%)

Level of debt in the local private sector (%)

Low Normal High

Low Normal High

Recovery DeteriorationStagnation


2012

2013

2014

2012

2013

2014

2012

2013

2014

2012

2013

2014

2012

2013

2014

1763 20

2752 21

3359 8

48 33 19

49 30 21

55 28 17

2356 21

3062 8

33 1750

45 32 23

44 30 26

44 35 21

28 53 19

27 58 15

27 64 9







Low Normal High

Low Normal High



2012

2013

2014

2012

2013

2014

2012

2013

2014

2012

2013

2014

2012

2013

2014

2058 22

51 29 20

3061 9

48 29 23

49 31 20

26 1856

56 22 22

27 865

3056 14

40 34 26

40 33 27

39 39 22

25 54 21

5525 20

24 63 13







Low Normal High

Low Normal High



NorthAfrica

WestAfrica

2012

2013

2014

2012

2013

2014

2012

2013

2014

2012

2013

2014

2012

2013

2014

1868 14

20 2258

3161 8

59 1823

57 23 20

2263 15

60 21 19

2272 6

2663 11

38 30 32

36 27 37

38 33 29

17 2657

19 2952

19 62 19







Low Normal High

Low Normal High



2012

2013

2014

2012

2013

2014

2012

2013

2014

2012

2013

2014

2012

2013

2014

1868 14

20 2258

3161 8

59 1823

57 23 20

2263 15

60 21 1

Documents

MOCIAN2014-ANG.pdf