Airbnb Plans Africa Expansion

Airbnb is hoping to spread its unique brand of hospitality throughout Africa. The San Francisco company, which allows people to rent rooms in their private homes to travelers over the Internet, held an event July 27 in Johannesburg, where Airbnb Chief Executive Officer Brian Chesky walked local reporters through the company’s ambitions in the world’s second-most populous continent.

Airbnb recently hired a general manager for Middle East and Africa, Nicola D’Elia, who was the former head of international growth and partnerships at Facebook. D’Elia, based in London, will hire staff to manage the business in Africa and says he may eventually open local offices in the region. In the coming weeks, Airbnb says it will also roll out its “host guarantee” in Africa, which reimburses hosts for up to $1 million U.S. dollars if a guest damages their homes.

Many Africans had already taken to Airbnb despite the company’s lack of a physical presence there. With news spreading mainly through word of mouth, some 9,400 homes are for rent in South Africa, making it the company’s largest market on the continent. The biggest cities for Airbnb are Cape Town and Johannesburg, and the company says listings in South Africa are increasing 138 percent a year. The number of people staying in Airbnb homes in the country is growing 257 percent. “Africa is an incredibly exotic place to travel to, and this is an incredible way to experience it like a local,” says Chesky, on his first trip to the continent.

The preemptive outreach to South Africans could help Airbnb head off resistance from local regulators and businesses down the road. Another company in Silicon Valley's so-called sharing economy has received a turbulent reception in South Africa. Drivers for Uber, which was launched in Johannesburg in 2012, were recently threatened in the Sandton business district by metered taxi drivers anxious to protect their business. Uber said it served 1 million rides in South Africa in 2014.

Airbnb has experienced similar pushback from regulators in such places as New York, Paris, and San Francisco. D’Elia says the company has not started talking to housing or tourist authorities in Africa. “We’re keen to start working with local governments and to help them understand how home sharing can be beneficial to cities,” he says.
Airbnb recently hired Laurence Tosi, the former chief financial officer for Blackstone Group, as its CFO, and has been in talks to raise a round of financing that would give the six-year old company a valuation of at least $24 billion, a person familiar with the matter told Bloomberg last month. Part of the promise for investors is Airbnb’s potential to create a global travel platform, letting tourists enjoy a similar level of personalized service wherever they go in the world.

Before his trip to Johannesburg, Chesky attended the Global Entrepreneurship Summit in Nairobi, Kenya, as a guest of President Barack Obama and met with Nairobi entrepreneurs. Ahead of Airbnb’s press conference on Monday, Chesky spent time with a dozen South African hosts in the backyard of a four-bedroom Johannesburg home listed on Airbnb as “Entertainers African Dream - Bliss!” The home had a thatched roof, a pool in the spacious backyard, and the high walls and gates common in homes in the affluent neighborhoods of Johannesburg.

Nearly all the hosts at the event had first heard about the Airbnb platform only in the past few months. James McNeany, 66, says Airbnb has helped to allay his financial anxiety after he recently got pushed into retirement at an insurance firm. “I was hanging onto my previous job as long as possible. I couldn’t imagine what I’d be doing next,” he says. Now he rents out three suites on his property near Hyde Park for $463 a week, mostly on Airbnb but also on rival website Booking.com. He has a live-in housekeeper from Zimbabwe who helps him maintain the properties, and he says that in some months, bookings via Airbnb have equaled his former salary.

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Africa’s new trade zone needs insurance backing

Sun City, South Africa - The recently launched African free trade area can succeed only if it is backed by good credit insurance that covers payment risk as well as political and country risk.

This is according to Gregory Nosworthy, managing director of Euler Hermes, the credit trade insurer and subsidiary of German insurer Allianz that opened its South African office in May this year.

The Tripartite Free Trade Area (TFTA) was launched in Egypt in June this year by the Common Market for Eastern and Southern Africa, the East African Community and the Southern African Development Community. The three blocs bring together 26 countries with a population of around 625 million people and GDP of $1.6 trillion.

Nosworthy told a media briefing at the Insurance Conference: Africa Rising 2015, held at Sun City this week, that trade between African countries had increased by 300 percent over the past 10 years, albeit from a low base.

Euler Hermes underwrites $102 billion worth of trade between TFTA countries at present.

Nosworthy says the most important risk to underwrite is payment risk to ensure that an exporter of goods receives payment once the goods have reached a customer in another country.

The second risk to underwrite is country and political risk, which covers factors that could prevent a company from taking goods into or out of a country, most notably conflict or political upheaval, but also developments such as the outbreak of Ebola.

Euler Hermes currently underwrites 860 billion euros worth of global trade.

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African skills initiative receives USD 60 mln investment

IBM has invested a sum of USD 60 million over three years to develop the next generation of technical talent in Africa. As part of the initiative, IBM is expanding the Africa Technical Academy and the company’s Africa University Programme to over 20 African countries.

IBM said IT professionals across the continent are set to benefit with advanced skills in analytics, cloud and big data technologies which are crucial to the next phase of Africa’s economic and social development.

In Kenya – home to IBM’s Africa Research lab and a state-of-the-art Innovation Center – IBM is partnering with the Kenya Education Network (KENET) to deliver advanced hands-on certification courses to faculty and students of 50 Kenyan universities over KENET’s broadband network. The certification courses will develop and enhance job market readiness among university students by providing the technical expertise that both employers and entrepreneurs require in order to succeed in a fast paced growth market like Kenya. The courses are available at no cost and are facilitated by both IBM online trainers and certified faculty in the participating universities.

IBM Technical Academy runs in parallel with IBM Africa University Programme, in which 80 Universities across the continent currently participate to enhance their curriculum. These universities provide their final year students with a range of business analytics, cyber security, data management, cloud and mobile technology training via the technical role based model applied in the IBM Technical Academy. Academic staff and students are supported by IBM’s team of experts, cloud-based resources and an IBM training and information portal.

Course are currently delivered in English. This will soon expand to French and later include other African languages.

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Barclays Africa Hastens Talks to Buy Banks in Egypt, Zimbabwe

Barclays Africa Group Ltd. said talks to buy its parent company’s operations in Egypt and Zimbabwe have been accelerated following management changes at Barclays Plc.

“Our ambition is to do the acquisition of both, and the management changes have confirmed that that ambition will be realized,” Maria Ramos, chief executive officer of the Johannesburg-based lender, said Wednesday on a conference call. Barclays Executive Chairman John McFarlane “came to South Africa very shortly after his appointment and there’s very firm support for the Africa business,” she said.

McFarlane fired Barclays CEO Antony Jenkins this month and took control, saying he will boost revenue and double the share price over the next three to four years. Planned job cuts haven’t targeted the African operations, where the bank is seeking to expand in economies offering faster growth than more developed countries.

Barclays Africa is awaiting license approvals in Nigeria where it so far has a representative office for its corporate and investment bank. Expansion in Africa’s largest economy will be “organic,” Ramos said.

First-half profit climbed 9.8 percent to 6.77 billion rand ($539 million) in the six months through June after retail and business banking earnings rose, bad debts declined and it expanded African operations, the bank said in a statement on Wednesday. Earnings from the rest of the continent climbed by 22 percent, more than twice the pace of the 8 percent gain in South Africa.

Forex Probe
Diluted earnings per share excluding one-time items increased 11 percent to 7.97 rand and the bank declared an interim dividend of 4.50 rand per share, a 13 percent increase from the year before. The stock dropped 0.5 percent to 185.84 rand by 9:24 a.m. in Johannesburg. The local benchmark banking index was 0.3 percent lower.

Barclays Africa was named in May as among banks being investigated by South Africa’s Competition Commission for manipulating trading in the rand.

“We’ve had nothing from the Commission on this matter,” Ramos said, declining to comment further.

Barclays Africa is part of a group of banks working together to support loss-making South African clothing retailer Edcon Holdings Ltd., Ramos said. The lender has financial ties to Edcon through its private equity portfolio, through loans to the retailer and because of its ownership of Edcon’s 8 billion rand store-card business.

If Edcon were to fail, the card debt would become a collections book, Ramos said. Losses realized because of Edcon in the first six months weren’t “material,” she said.

In the next six months, Barclays Africa expects its net interest margin to widen “slightly” from 2014, it said in the statement. The bank foresees mid-single digit loan growth, with lending in corporate and investment banking increasing faster than retail and business banking.

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Outrage over Cecil the lion's death in Africa: Trophy hunters are chiefly Americans

A beloved lion who usually roamed within the confines of an African conservation park is dead. An American hunter has been named by Zimbabwean officials as the killer of the animal. Many people are outraged.

The death of Cecil the lion also has some asking questions about the sizable role U.S. citizens play in the controversial sport of slaying wildlife for trophies.

“Americans are among the most bloodthirsty among citizens of the world when it comes to trophy hunting, in particular lions and elephants,“ said Jeff Flocken, North American regional director for the International Fund for Animal Welfare. “It’s a small group of privileged Americans. Eighty percent or more of Americans want to see endangered species protected."

A $55,000 hunt
Cecil, a well-known lion with a distinctive black mane, was reportedly killed July 1 by crossbow just outside Zimbabwe’s Hwange National Park.

According to news reports citing Zimbabwean authorities, Walter James Palmer, a dentist from Bloomington, Minn., paid about $55,000 for the hunt. Palmer has denied any wrongdoing, saying in a written statement that to his knowledge everything about his trip “was legal and properly handled and conducted."

In March, U.S. Fish and Wildlife Service Director Dan Ashe acknowledged that U.S. citizens make up “a disproportionately large share of foreign hunters who book trophy hunts in Africa.” Ashe noted that this activity provides the host countries with a way to manage their wildlife populations and support conservation efforts.

Laury Parramore, a spokeswoman with the Fish and Wildlife Service, told the Los Angeles Times on Tuesday that, though the agency does not keep track of the number of Americans who book trophy hunting trips in Africa, it does count those who apply for permits to import their trophies. That figure, however, was not readily available, Parramore said.

An undesirable trend
Wildlife conservationists see what they describe as an undesirable trend.According to data from the International Fund for Animal Welfare, the U.S. is the world’s largest importer of African lion parts for trophies and for commercial purposes. Between 1999 and 2008, U.S. citizens claimed 64% of the international market for lion parts. The data show that number has been increasing.

Flocken said the slaying of Cecil was particularly troubling because of the sharp decline in African lion populations, which have dropped nearly 60% in the last three decades. In addition, the killing of a dominant male in a pride, like Cecil, could result in the deaths of others in the group, Flocken said. Males from other prides who might be interested in the open leadership position created by Cecil's death could attack other males, cubs and protective females.

Charges in the case
Theo Bronkhorst, the professional hunter with Bushman Safaris, which guided Palmer's safari, and Honest Trymore Ndlovu, owner of Antoinette Farm, where Cecil was shot, are both facing criminal poaching charges. Cecil's killing was illegal because neither Bronkhorst or Ndlovu had permission to kill a lion, authorities said.

As part of conservation efforts, hunting licenses often restrict the type and quantity of animals that may be killed.
The Associated Press reported Tuesday that Bronkhorst and Ndlovu were expected to appear in court Wednesday and that authorities were searching for Palmer, who also faces poaching charges.

Parramore said the U.S. Fish and Wildlife Service was “looking into the facts” of the lion’s killing and was “working with the Zimbabwean government as requested.”

'Deep regret'
Palmer has since expressed “deep regret” that his actions led to the death of Cecil, who had been found skinned and beheaded, according to AP.

In Africa, where many leaders cling to power, Obama's joke about a third term had an edge "I had no idea that the lion I took was a known, local favorite, was collared and part of a study until the end of the hunt,” he said in the statement. “I relied on the expertise of my local professional guides to ensure a legal hunt.”

This has not quieted his critics, who took to social media with attacks, including condemnation of his dental practice on Twitter, Facebook and Yelp.

An online petition asking the American Dental Assn. to suspend Palmer had more than 1,400 signatures by Tuesday afternoon, and a petition demanding justice for Cecil had more than 166,000 signatures by late Tuesday.

Palmer’s hunting practices have come under scrutiny in the past. In 2008, he pleaded guilty to one count of making material false statements in relation to a poaching case in Wisconsin. He was sentenced to one year probation, a $2,938 fine and was forced to forfeit the black bear remains to the government.

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1000 African Entrepreneurs Gather In Nigeria for Tony Elumelu Foundation Boot Camp

1000 entrepreneurs from across Africa gathered in Ota, Southwest Nigeria, between Friday and Saturday for an intensive two-day boot camp hosted by the Tony Elumelu Foundation.

The 1000 entrepreneurs were all part of the inaugural class of the Tony Elumelu Entrepreneurship Programme (TEEP), a multi-year program of training, funding, and mentoring, designed to empower the next generation of African entrepreneurs. The entrepreneurs traveled from across Africa – from Lusaka to Lomé and Cape Town to Casablanca for the event which was one of the largest gatherings of African entrepreneurs in recent times.

For the two days, the 1000 entrepreneurs who were accepted into TEEP enjoyed interactive sessions with successful entrepreneurs, business and political leaders who gave a series of speeches on business development, financial management, corporate governance and other facets of a successful enterprise. The programme culminated in an open mic session with Tony Elumelu, the Nigerian banker and philanthropist who is funding TEEP.

In 2014, Nigerian philanthropist Tony Elumelu pledged $100 million to create the Tony Elumelu Foundation Entrepreneurship Programme (TEEP). The programme plans to identify and help grow 10,000 exceptional start-ups and young businesses from across Africa over the next 10 years. These businesses are expected to create 1,000,000 new jobs and contribute $10 billion to Africa’s economy. The selected start-ups are selected from a pool of applicants across Africa and are mandated to participate in a grueling 12-week online business skills training course, mentoring, and entrepreneurship ‘boot camp.’ The Tony Elumelu Foundation provides each entrepreneur with $10,000 to support their businesses.

The 1000 Tony Elumelu entrepreneurs represented 51 African countries and territories, encompassing all regions and all major language blocs, as well as every state in Nigeria. The entrepreneurs represent a wide range of sectors, from fashion and ICT to agriculture and education to energy, fashion and ICT.

In his remarks, Elumelu told the entrepreneurs that he was investing in their success, while reiterating his belief that entrepreneurship was the way to drive Africa’s economic prosperity.

“I want to go to Zambia, when I am 80 years old and meet someone who shows me their manufacturing business or financial institution and tells me that it was built starting with $10,000 from Tony Elumelu. That is what this is about, and that is what you owe me,” he said. “The return I want from this $100 million investment is your success, because your success is Africa’s success,” he said.

Tony Elumelu, one of Nigeria’s wealthiest businessmen with a fortune in the region of $1 billion, is the chairman of Heirs Holdings, a proprietary African Investment Company.

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Ethiopia & the Czechs Taking Bilateral Ties to a New High

Ambassador Berhane Gebre-Christos, State Minister for foreign affairs, held on Monday (July 13) talks with Martin Tlapa, Deputy Minister for Foreign Affairs of the Czech Republic on the sidelines of the Third International Conference on Finance for Development in Addis Ababa. Ambassador Berhane, who noted that Ethiopia and the Czech Republic enjoy historic and excellent bilateral relations, upgrading these excellent ties will put both countries on the right path to score new achievements in mutually beneficial cooperation.

He also calls for a constant growth of bilateral cooperation in the fields of trade and investment. Martin Tlapa on his part said that his country has long-standing relations with Ethiopia, adding that Prime Minister Hailemariam Dessalegn of Ethiopia is invited to visit the Czech Republic.

The Deputy Minister for Foreign Affairs emphasized the importance of maintaining frequent high-level exchanges in order to plan for future growth of the bilateral relations of the two friendly countries. He also promised that the Government of the Czech Republic will help business persons to invest in Ethiopia with a view to expedite economic and trade cooperation. He also emphasized that the Czech Republic remains committed to work with Ethiopia in addressing the global problems such as terrorism and migration. Ambassador Berhane Gebre-Christos, who agreed that exchange of high-level visits is important to reinforce the relations of the two countries in all-rounded way, reiterated that Ethiopia is ready to cooperate with the Czech Republic so as to address issues like terrorism and migration. Ambassador Berhane pointing out that Africa is moving forward said Ethiopia is at the heart of this growth narrative. Ethiopia’s Growth and Transformation Plan II aimed at making Ethiopia a Middle Income country by 2025, the Ambassador said and improving business ties and sharing experiences with the Czech Republic will add a new vigor to the success of the goal of making Ethiopia a Middle Income country by 2025.

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