Upcoming Business Event

What : African Private Sector Forum
When: January 22 to January 23 2008

Where: Addis Ababa, Ethiopia

What: Meeting bringing together companies, investors, donor community members, and regulatory bodies for more information click here

Participation is free.

Business Opportunity- Gum Trees

Demand for Gum trees on the increase

Demand for gum trees has been on a steady increase since 2003. The trees are used for poles for the Kenya Power and Lighting and Telecom services. Currently the trees are being imported mainly from Tanzania. Farmers in Kenya are being encouraged by the Ministry of Agriculture to grow more of such fast maturing trees to meet demand.

Gain in value of African currencies against dollar- good or bad news

Several African currencies have seen a gain in value against the dollar as the green buck has taken a beating from the credit market crisis and the looming threat of recession in the US. So is it good or bad news? Well that seems to depend on what business you are undertaking. If you are an exporter you probably are feeling a pinch. But farmers, manufacturers and potential importers of machinery can take advantage of the strengthening currencies to import capital goods at cheaper rates. This is the time to import items such as fertilizer, vehicles, and chemicals and oils that would otherwise cost a whole lot more if the currencies were weaker.

A second advantage is that with currencies strengthening, the amount of money governments are paying for oil imports is lower, whether this translates into cheaper prices at the fuel pump though depends on how much the companies selling the oil are passing on the benefits to the consumer.

Leading regional bank offers businesses opportunity to open accounts online.

Ecobank, a leading independent regional banking Group in West and Central Africa is offering business people an opportunity to open bank accounts online. The bank operates in 18 African countries including Benin, Burkina Faso, Cameroon, Cape Verde, Central Africa, Côte d’Ivoire, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, Sao Tome, Senegal, Sierra Leone, Tchad and Togo. The bank has over 320 branches and offices. For more of the banks’s services click here.

Rising food prices- Risk and Opportunity

Rising food prices pose a risk but also present business opportunity to African Economies.

The prices of wheat, rice, and corn are at their highest level since 2000. High fuel prices and increased demand for cereals from India, China as well as the use of corn to produce ethanol in the US and other countries is pushing the demand and the price for cereals higher. Most African economies depend on imports to meet their grain needs, it is estimated by UN agencies that more people will find it difficult to buy what they need to eat. Tension over rising food prices has already been seen in West Africa where riots have occurred in Morocco and Senegal. But there is a business opportunity in this. The increase in demand for alternative sources of fuel means that African enterprises that position themselves to produce bio-fuels from products such as the Jatropha tree for more information click here, here and here for more information on how the business works.

Strengthening currency

Can the recent rise in value of the Kenya Shilling vs the US dollar help you?

It depends on where you stand; if you are an exporter you probably are feeling a pinch. But farmers, manufacturers and potential importers of machinery can take advantage of the strengthening shilling to import goods at cheaper rates. This is the time to import items such as fertilizer, vehicles, and chemicals and oils that would otherwise cost a whole lot more if the shilling was weaker.

Africa Capital Markets

If you are a lawyer, banker or investor in the emerging markets of Africa you may want to attend the Private Equity and Venture Capital confererence to be held next year 20-22 February in Nairobi Kenya. The event is being hosted by Regal Exchange Associates and will put you back some 1450 GBP. For more information click here.