The Africa Leads Business Report (ALBR) provides a database

of articles, interviews and profiles of decision makers,

business executives, diplomats and other leading players
that shape the future prosperity of African-Arab businesses.
2 3
 CONTENTS
Editor’s Note 06

Dallo Airlines 09 Ethiopian Airlines 12

A 26 YEARS OF GROWTH, Commanding Pan-African
V SAFETY, EFFICIENCY AND Passenger and Cargo Network
I IMPRESSIVE CORPORATE
As Africa’s oldest and one of the most energetic and profitable
A RESPONSIBILITY
airlines in the continent’s aviation industry, Ethiopian Airlines
T A household name that was commands the lion’s share of the pan-African passenger and
I featured as one of Africa’s success cargo network.
O business stories, Djibouti in 1991.
N Mr. Mohmed Yassin
CEO, Daallo Airlines Read More...
Read More...

Jubba Airways 15 Telesom 17

Steady Growth Over Two Decades
Somaliland
GIANT COMMUNICATION TE
Deriving its strength, from its young, dynamic and proactive
PROVIDER AND LEADER LE
team, Jubba Airways maintained constant growth and a robust CO
presence in both regional and domestic destinations since its IN MOBILE FINANCIAL MM
inception in 1998. SERVICES UN
As one of the leading IC
Read More.. communication service providers
AT
Mr.Abdikarim M. Eid IO
CEO, Telesom Somaliland in the Horn of Africa, N
Read More..
HORMUUD TELECOM 21
T Lifting People Out
E Dalkom 25
L
of Poverty Through Fast
E and Readily Accessible Regional Leader and Global Player in
C Next-Generation Broadband Solutions
O Broadband
M Since its incorporation in 2003, Dalkom Somalia has grown into
M A leading international money
U transfer company and a global one of today’s fastest-growing telecom companies in Africa
N player in over 120 countries, offering next-generation solutions for broadband, connectivity,
I Dahabshiil has an unparallel cloud computing, managed services, satellite services and
C internet services across all businesses.
A presence in East Africa and
T remains the biggest African
I remittance provider. Read More..
O Mr. Ahmed Yuusuf
N CEO Hormuud Telecom
Read More...

Maritime 32
Dahabshil MA
28 Africa Ports and Infrastructure RI
A GLOBAL MONEY Development—An Analysis TI
M ME
TRANSFER LEADER AND
O
FINANCIAL POWERHOUSE
N
E A leading international
Y money transfer company and a Royal Food Industries
global player in over 120 countries, 39
Mr. Abdirashid Duale A Fast Growing Food G
T CEO, Dahabshil Read More.. E
Manufacturer With Global Vision
R N
E
A Founded in 2003 as a trading enterprise of Transco Group of R
N companies, Royal Food Industries has transformed itself into A
S TAAJ Money Transfer 36
the group’s manufacturing arm in 2011 with US$100 million L
investment under the registration of Rak Investment Authority. T
F Meeting Africa’s Growing Demand R
E for Mobile Money Service Read More.. A
R D
Started in East Africa, Taaj Services rapidly grew into a fully I
N
comprehensive global money transfer service with its latest G
penetration into the North American market.
Read More..

4 5
 The rise of China as a dominant economic power based on the to real progress. This worldview would require a full understanding of
seeming oxymoron of “state capitalism” of “capitalism with Chinese globalization and how the phenomenon affects Africa. It would explain
characteristics” is based on the nation’s worldview. That view of the the real winners and losers in foreign aid. Capitalism, which is the
world which drives the thoughts and actions of the Chinese is based mode of virtually all African countries’ economies, needs to be better
on three “timeless truths” – time and space are cyclical and all things understood if it is to yield inclusive prosperity.
are interconnected, stability is to be pursued as an absolute good, and Africa needs to recognize the reality that globalization is driven largely
the clan or society, not the individual, is the basis of social organization. by innovation and technology. The countries that produce and export

A call for an African Davos

This worldview enables the Chinese to think and plan in long-term technology are therefore the real drivers and winners in the globalization
horizons. It enables the Chinese state, helped by the dominance bazaar. Our continent will truly prosper when its countries, like those of
of the Chinese Communist Party, to organize its large population East Asia, find their niche in the production value chain of globalization.

F
with discipline and a powerfully focused singularity devoid of the For now, the African countries are mostly a consumer market for the
inally, it is here: Africa Leads Business Report 2017 has arrived, and employment. They also make significant contributions to social
“distractions” that might arise by individualistic tendencies unmoored goods of globalization.
ending a long journey. Africa Leads’ mission is to communicate and humanitarian development, while being the first respondents
to a vision of the larger society. This is why China was able to adopt
the exciting opportunities and success stories within Africa. during humanitarian crisis and a lifeline for victims of drought, famine and adapt successfully to capitalist modes of economic production Capitalism is the prevailing economic philosophy around the world,
and other disasters. while maintaining a strong role for the state. but has created the real wealth of nations only in the West and parts
Enough has been said about Africa’s ills. Hackneyed expressions
such as bad leadership, pervasive corruption, tribal wars, man-made As an annual business report, Africa Leads will feature the success of Asia. Many capitalist economy countries such as those in Africa
humanitarian disasters and poverty driven migrations are the daily stories of a host of leading companies and business leaders in every The Western world’s economic prosperity, on the other hand, has been remain poor. The average GDP per capita in sub-Saharan Africa is
built on a worldview grounded on the evolution of individual human only $4,000. Why? That’s because they have practiced the capitalist
rations provided by a voyeuristic media to benumbed audiences. edition. It will also carry expert opinion articles, interviews, and analysis
rights that gave rise to independent institutions to check the exercise model of economic production without fully understanding and
on the status of the African economy as well as the continent’s
Africa Leads refuses to endorse the stereotypes of a hungry and of excess power by the state. It is also anchored on innovation, which interrogating its philosophical foundations. Capitalism requires three
prospects, business and technological innovations coming out of
famished Africa whose people fight for aid handouts and whose grew with the rise of rational thought and the decline of ecclesiastical things – capital, innovation, and property rights – in addition to strong
Africa, and Africa’s impact on the global stage.
leaders are perpetual unwanted guests at rich nations’ dinner tables, influence after the industrial revolution in the 18th century. institutions, to function well and create inclusive wealth rather than
begging for money. Africa Leads believes that it is about time to boost intra-African trade wealth for a few. And it has several variations such as entrepreneurial
and investment. It is unnatural that Africa remains the continent with There are several lessons for African countries. The first is that these capitalism, welfare capitalism, crony capitalism, and now – thanks to
Africa Leads looks at Africa as the continent with most youthful the lowest Intra-trade compared to the rest of the world. According worldviews need to be coherently developed, articulated, and used as the Chinese – state capitalism. Our political leaders and economic
population in the world. Over 40% are under the age of 15 and 20% are to African Report 2017, Africa, on average over the past decade, guiding principles for organizing societies for progress. This requires managers need to understand the implications of each and make
between the ages of 15 and 24 according to the African Development a level of introspection and intellectual work that few contemporary sensible choices based on local conditions.
has had internal trade amounting to no more than 15% compared to
Bank. With such tremendous human capital, Africa could have a great African leaders engage in. Countries like Rwanda under Paul Kagame,
Europe where 63% of Western European trade takes place with other
competitive edge if the right worldview and polices are in place to Ethiopia under the late Meles Zenawi, Bostswana and Mauritius have African countries must understand, as part of a worldview, that
European nations and North American countries where 63% of their
bring about an economic transformation. proven to be exceptions. Their leaders have demonstrated a tendency foreign aid has made the continent poorer overall. This is because
trade takes place among themselves. Freedom of movement of the for deep thinking and its application to public policy. aid has taken away the incentive for productive self-help and created
The good news is that Africa has experienced sustained and continent’s energetic and innovative young minds can also contribute a culture of dependency. It is welcome, therefore, that private capital
impressive economic growth over the last two decades and the signs to the movement of ideas and sharing of prosperity. Something that A second lesson for Africa is that worldviews are in reality subjective, flows to Africa have long overtaken the volume of foreign aid, which
imply that it will continue to do so. The private sector leads the way the business leaders featured in this report have all emphasized. and need not “keep up with the Joneses” of other worldviews. If nevertheless remains significant.
and will continue to drive the continent’s renaissance. The companies consistently and effectively applied, the chance is high that it would
Africa Leads calls for the creation of African Davos where African
featured in this report are a testament to the success of African yield societal and economic progress, or at least sustenance, for long Finally, Africa will rise only when it recognizes, with the benefit of a
thought, talent, and entrepreneurship can join hands to bring about
entrepreneurship. periods of time. Worldviews, however, may not last permanently, as we robust worldview, that the secret of the wealth of the wealthy nations lies
the much-sought African integration to fruition.
saw with the collapse of communism under the weight of its internal mainly in their ability to manufacture and export complex, value-added
Sectors such as aviation, telecommunication, money transfer and food contradictions after eighty. Thus, we have seen how diametrically products in a competitive manner. The continent, then, cannot achieve
production are responsible for the creation of the continent’s wealth The Editor opposed western and Chinese worldviews both created foundations real prosperity through national economies that rely predominantly on
for economic success and an ongoing competition for global the export of raw materials and commodities. Kicking the junkie-habit
dominance. African countries, lacking their own effective worldviews, of commodity-led growth is the logical application of this worldview.
have come under the increased influence of China (after decades of
colonialism, followed by decades as client states of the West or the No one says this will all happen in a day. But recognizing this truth
Soviet Union under the Cold War, with some remaining “non-aligned”) and acting on it by building diversified, manufacturing economies and
as part of a rising “Sinosphere”. improving intra-African trade is an essential milestone to aim for.

Africa Needs a The third lesson is that African countries once had effective global
political worldviews, but have failed to develop an economic one. They
achieved their strategic goal of political freedom from colonization in
Professor Kingsley Moghalu is the Founder and President of the
Institute for Governance and Economic Transformation and was
Deputy Governor of the Central Bank of Nigeria from 2009-2014.

Worldview to Prosper the 1950s and 1960s, an era in which their leaders were driven by a
clear worldview that colonial rule was an unnatural violation of human
rights and was to be resisted.
Professor Kingsley Moghalu is the Founder and
President of the Institute for Governance and Economic
Transformation and was Deputy Governor of the Central

in a Globalized World Against this backdrop, the challenge that African countries face is to
develop and deploy an understanding of the world that can lead them
Bank of Nigeria from 2009-2014.

Prof. Kingsley Moghalu

A
frica’s economies have emerged in the global marketplace in the The place to begin is to develop a set of fundamental understandings “Africa needs to recognize the reality that globalization is
past two decades as destinations of investment attention. What about the nature of the world, origins, destinations and how to get to
the continent’s countries lack with few exceptions, however, the latter (strategy), and guiding values. These are the elements that driven largely by innovation and technology. The countries that
and which they need if Africa is to truly rise, is a well-grounded view of make up a worldview. We can apply these understandings to practical
the world that drives the governance and economic management that challenges such as governance in African countries, the implications produce and export technology are therefore the real drivers
of globalization, capitalism, and so on.
will ultimately determine the continent’s competitiveness in the world
economy. It is precisely this kind of worldview that has powered the and winners in the globalization bazaar. Our continent will truly
We all have individual worldviews – mindsets and belief systems. But it
rise of China in the past four decades, as well as the prosperity of the
western world that has evolved over the past three centuries.
is the global worldviews that come from individuals having fundamental prosper when its countries, like those of East Asia, find their
assumptions in the context of their roles as part of a group such as
The question of worldviews might appear an abstract one from which
a nation, country or a race, and how this matters in global society,
politics and economics, that shapes the destinies of such groups.
niche in the production value chain of globalization. For now,
to discuss Africa’s place in the global political economy, but it is of
fundamental importance because ideas matter. Social, political and
Worldviews are important in the process of development because their
outcomes are hardly neutral. Rather, such worldviews, if effectively
the African countries are mostly a consumer market for the
economic activities that are not anchored on well thought-through
ideas can hardly yield progress for any society.
and consistently applied, frequently reflect in objective reality as world
orders.
goods of globalization.”

6 7
 26 Years of Growth, Safety,
Efficiency and Impressive
Corporate Responsibility
A household name that was featured as one of Africa’s success business stories, DAALLO
Airlines was established in 1991 to fill the gap left behind by the collapse of Somali Airlines
and demise of Air Djibouti in 1991.
Hiring a single wet-leased Cessna Caravan operating from Djibouti to Hargeisa, the new
Airline had become more of a life saver by doing humanitarian work for Somali people
who all of sudden found themselves isolated with no air or sea transportation
DAALLO Airlines, however, quickly expanded its operations to destinations in eastern
Africa, the Gulf region as well as Europe, while sustaining an impressive track record in
corporate responsibility.
Over the last 26 years, the airline was driven by its brand and deep understanding of the
market and customer demographics as well as operational efficiency and a stellar safety
record.
A privately owned entity which is registered and based in the Republic of Djibouti, the
Airline takes pride in its customer- centric approach, and its continued efforts to connect
with the global airline network and build strategic partnerships to leverage customer
services and stakeholder benefits.

T
alking to Africa Leads about the airline’s story, Mr. Mohamed Africa: A study of Success”. It was also featured in the documentary
Yassin, CEO of DAALLO Airlines, describes the airline as the “Africa open for business” as one of Africa’s success business stories.
flagship company of the DAALLO Group, and one of the best-
known companies in Somalia & Djibouti.

AVIATION
Starting in 1991 with a single wet-leased Cessna Caravan operating
Currently serving the East African region with flights to the Middle East, from Djibouti to Hargeisa, Somalia, DAALLO Airlines rapidly grew into
DAALLO Airlines has significant dominance in the passenger traffic to a major airline connecting three continents.
and from these countries. It also has more than 26 years experience
of operating scheduled passenger, cargo and charter flights to Africa, “We have an impressive track record in corporate responsibility,
Middle East and Europe. always supporting community projects and programs in regions where
we operates. We participated in relief and medical supply efforts in
As part of its strategy to retain customer loyalty DAALLO Airlines eastern and central Africa, while we also operates flights for Hajj and
goes the extra mile to place local staff in every destination: “Our staff Umrah pilgrimages,” says Mr. Yassin.
are local, our offices are located locally, our managements are local.
Our services and products are tailored to the demands of our ethnic Customer-centric Approach in a Competitive
customers,” he adds, describing this approach as one that enabled Market
them to sustain the loyalty of customers and the goodwill of partners
over a quarter of a century. Describing 2016 as a tough year due to stiff market competition,
economic slowdown and weak growth, Mr. Yassin explains that the
DAALLO Airlines was nominated as one of the show case success main challenge came from new airlines such as Fly Dubai, Emirates,
stories in Africa by David S. Fick in his book of “Entrepreneurship in Turkish Air and Ethiopian Airline all entering the African market.

“Our brand and

history are our
competitive edge,”
Mr. Yassin says, “I can
say DAALLO Airlines,
is a household name.
We also have a deep
understanding of our
market and customer
demographics. We
are fully aware of
the cultural and
social needs of our
customers.”

8 9
“These carriers as you know have a significant budget compared to “This incident entered into aviation books and the bravery and the skill African Union’s Seven Aspiration Vision 2063 promises an integrated “Dubai Expo2020 is the platform in which African airline businesses
us and are of course subsidized by their respective governments,” of our captain and crew earned praise and accreditation. The incident continent, politically united, based on the ideals of Pan-Africanism and should showcase their products and services to global leaders in
he says, while describing the arrival of government backed carriers was much more serious than the flight 1549 US Airways, January the vision of Africa’s Renaissance aviation and sell African air travel to the global tourism industry. It is
into the market as a positive indication of a long term African market 2009 ,15, of which Captain Sullenberger safely landed the aircraft on also a place to seek financial support and grants from international
“I believe African airlines will significantly benefit from this vision to be corporations to partner with African governments to invest in the
growth. Hudson River after the plane was disabled by strike of flock geese,”
the vehicle for economic growth and sustainability,” He adds. development of aviation infrastructure and tourism in the continent.”
he says, underlining that the airline has since then scaled up security
He adds: “ In addition to suffering from lack of credit access, African procedures and systems in all sectors. On how Africa can benefit from Dubai Expo 2020, Mr. Yassin says:
airlines also suffer from African governments’ lack of awareness about
the fundamental significance of having highly developed and effective “For example, we have increased our security checks and implemented
local airlines to the advancement of national economy and stimulation a two-point security check for all passengers before boarding both in
of inter trade within Africa.” Mogadishu, and in Hargeisa airports,” says Mr. Yassin.

“Daallo Airlines like its African counterparts watches how airlines from New Technology Transforms the Industry
outside Africa are trying to muscle them out of their markets in which
they have heavily invested for so many years. These new entrant On how new technology serves the aviation industry, Mr. Yassin notes
foreign airlines, enjoy financial and political support of their relevant that the most advanced technological development in aviation is
governments and institutions,” he says, adding that against this tough seen in Airbus’s and Boeing’s modern long-haul, %70 recyclable twin
competition, Daallo Airlines is working hard to achieve consolidation engine jets, and more so on the ground where IATA is spearheading
among African carriers and to get support from our governments and the development of a change program (StB). The aim is to transform
institutions. the entire passenger journey through the implementation of innovative
solution designed to transform business processes and practices.
On expanding the airline’s network in Africa, Mr. Yassin highlights that
“Technological advances are happening daily both in the aviation and
DAALLO Airline constantly works to increase its network, by providing
non-aviation sectors. But for the airline industry, and in DAALLO, these
additional destinations, and seamless connections. While at the
include airline products such as one-click order (online-booking), self-
same time improving its distribution and operational network, through service, and open API. Although African airlines are not there yet,
consolidations and economies of scale. this is what we aspire to achieve, to transform the entire passenger
experience into a seamless hassle free journey,” he says.
“In addition to increasing our network we are planning to enter strategic
interline agreements with international airlines,” says Mr. Yassin..
Air Transport Accelerates Africa-GCC Trade
Growth
“We have always considered our customers
On trade between Africa and GCC countries, Mr. Yassin explains that
as our top priority, and we believe that Africa and the GCC are geographically and historically inextricably
our continued efforts to connect with the interconnected through trade and culture, asserting that air transport
global airline network and to have strategic made these ties more stronger and easier.

partnerships with other airlines will have a

subsequent positive impact, both for our “The rapid development of global aviation
customers and stakeholders alike,” he adds. infrastructure in the GCC, and UAE in
particular, had a ripple effect in Africa,
On the company’s plans for expansion, Mr. Yassin highlights that mainly in East Africa where DAALLO has
the main objective of Daallo Airlines is to be effective and affordable
regional airlines, with dynamic customer service strategy. benefited significantly both in passenger
and cargo transportation,” he says.
“In the year 2018, Daallo Airlines will go under process of repositioning
and restructuring by modernizing its fleet, and automating all company
business processes to make passenger experience with Daallo Mr. Yassin believes that GCC based investment firms and governments
enjoyable and memorable,” he says, adding “It will be ‘A Business of both continents should encourage open market and open trade
Made Simple’. The plan is to minimize intermediary points and to make deals, saying: “Historically trade between GCC and Africa was driven
most flights point to point. The priorities will be to achieve high on-time by the monsoon seasonal changes in the Indian Ocean as the two
performance, service reliability and high standard onboard product regions were connected by sea. And I believe, aviation is now the key
and services.” to increasing tourism between Africa and the GCC.”
On increasing African aviation market share, Mr. Yassin highlights that
Proud Record in Safety and Operational Efficiency African airlines’ collective performance increased 7.4 per cent over the
previous year due to strong demand on Middle East and Asia routes.
Taking pride of the airline’s record in safety and operational efficiency,
Mr. Yassin described operational efficiency as the corner stone of He cautions, however, that African airlines continue to face
DAALLO Airline’s business, especially as it operates point to point infrastructural and political challenges which impede operational
expansion and affect market share growth.
services.
“African airlines, therefore, must collaborate in a continental scale, and
“Safety of our passengers is our number one priority. And we are through synergistic alliances, through the formation of Pan-African
constantly aware of the security risks found in some of the countries interline agreements specifically designed to support African owned
we serve. We, therefore, take necessary safety and security measures carriers,” he says.
to ensure that neither our crew nor passengers encounter safety
issues, during flights in and out of these places,” he says. He points out that although African air travel market, like India and
China, has been touted for significant growth in the next decade, to
“We have been operating in the two regions over 25 years with zero- unlock that potential Africa needs to invest in air transport infrastructure
and to enable accessibility and network connectivity.
accident record until February 2nd 2016 when we had one major
incident, where flight D159 3 suffered midair terror attack, of which our “Many countries in Africa are landlocked and it is up to local
highly trained captain and the crew managed to save the passengers governments and the African Union to work together to come up
and aircraft. with a plan for infrastructural development,” he says, explaining that

10 11
 spoken languages and dialects. The country has its own alphabets,
notational system and a unique 13 months calendar.
African Leader in Aviation Technology

Commanding Pan-African “Ethiopia is home to nine UNESCO world heritage sites, and this
uncommon combination of history, culture, nature and adventure
makes Ethiopia a unique, must visit destination for all travelers. Our
On Ethiopian Airlines competitive edge, Mr. Mohammed says: “We
know Africa better than anyone else because we have been serving
the continent over 70 years. As a veteran, primary African carrier, we

Passenger and Cargo

believe we know the special needs of the African customers and that
effort is focused to increase tourist inflow to Ethiopia from every corner
we are better placed to serve their needs.”
of the globe including UAE,” he says, adding that thanks to Ethiopian
Airlines’ daily three flights from Dubai together with 19 domestic flights
“We have a uniquely dedicated and highly committed work force led

Network
to the tourist attractions the number of tourist from UAE is growing
significantly. by seasoned executive management and board of Directors. We
are also self-sufficient in the training of our aviation personnel, who
Capitalizing on the growing medical travel market as part of the embody the values and spirit of Ethiopian Airlines, through our aviation
As Africa’s oldest and one of the most energetic and profitable airlines in the continent’s tourism sector and to medically connect Africa to the rest of the world, academy,” he says, adding that efficient network of connectivity based
Ethiopian Airlines collaborated with hospitals to introduce a medical on a strategically advantageous located hub, Ethiopian has positioned
aviation industry, Ethiopian Airlines commands the lion’s share of the pan-African passenger
travel package to popular medical destination worldwide including its vast Intra-Africa network better than any Airline, providing its
and cargo network. customers with the best connection in minimum layover in Addis
UAE.
Ababa.
Operating the youngest and most modern fleet to more than 100 international destinations
“Consequently we have developed a comprehensive medical travel
across five continents, the airline is a veteran but energetic carrier which is 70 plus years old. management program to coordinate a variety of medical travel On harnessing technological advances, Mr. Mohammed says that
services from basic medical consultations to full services treatments. being an aviation technology leader for over the past 70 years,
Although fully owned by the Ethiopian government, Ethiopian Airlines is run with the The package includes medical service, air travel and other ground Ethiopian has been pushing the African aviation to the next level.
leadership of aviation professionals with long and extensive experience in the industry. handling services,” he adds.
As a result, the award-winning Carrier has been successfully leading the African aviation “Ethiopian provided the first jet service in the continent in 1962, the
industry in all aspects with a profitable record over the last seven consecutive years. Consolidating Africa’s Fragmented Aviation first African B787 dream liner in 2012 and again led the way with A350
XWB,” he adds.
Mr. Ali Mohammed
Area Manager On the growth of aviation market in Africa and the role that African
governments should play to support African airlines in the face of “Ethiopian Airlines is registering remarkable progresses in the aviation
Gulf, Ethiopian Airlines industry and international fleet across the continent. The airline
stiff competition from other subsidized airlines subsidized by their

T
governments, Mr. Mohammed says Ethiopian Airlines believes that has built a huge capacity in human resource development through
Talking to Africa Leads about the company’s milestone “In 2008 Ethiopian Airlines unveiled plans to plant trees throughout cooperation among African airlines is the answer to the challenges transforming its many services to modern technologies. Therefore, it
achievements, Mr. Ali Mohammed, Area Manager Gulf, Ethiopia, during the Ethiopian Millennium year, and launched a long- they face in the market. is evident to conclude that Ethiopian’s aviation technology leadership
Ethiopian Airlines, says the airlines’ major advances include term environmental campaign known as FLY GREENER. To take this has been contributing to the African technological advancement.
opening its networks to more than 100 international destinations, initiative further, Ethiopian has pledged to plant one tree for every “The market share of African carriers is not balanced with foreign
investing significant capital on infrastructure, making it the first in passenger flown,” Mr. Mohammed says, noting that the Airlines is airlines as African airlines carry only %20 of passengers, and the “In line with its vision 2025 of becoming the most competitive and
Africa in catering, cargo and hangar facilities, as well as investing in 92 marching to %100 digitalization and paperless environment, in addition proportion is declining,” he adds, underlining that African market is leading aviation group in Africa by providing safe, market driven and
to satisfying the company’s environmental responsibility. fragmented by geography and regulation and the intra-Africa market customer focused passenger and cargo transport, aviation training,
ultramodern aircraft among others developments.
is not growing. flight catering, MRO and ground services by 2025, Ethiopian planned
“Safety is always the first priority of Ethiopian. As a veteran airlines, the addition of more than 10 more destinations in Africa, Asia, Latin
He notes that Ethiopian Airlines is a multi-award winning airline
we learned from past aviation incidents and accidents and we put “Therefore, the implementation of the Yamoussoukro Declaration (YD), America and Europe for the 2018/2017 fiscal year.”
which has recently been selected as the ‘Best African Airline’ by the
internationally accepted safety regulations in place,” he adds. which is geared towards a comprehensive reform of the air transport
SKYTRAX World Airline Award and has been presented the ‘Most
Promising Airline’ award on the first-ever Arabian Travel Awards by the industry and the unification of the fragmented African air transport On the fleet expansion, Mr. Mohammed says the Ethiopian plans to
“Ethiopian has always been the most trusted and revered brand market will help the African carriers to own more traffic rights and acquire an additional 60 aircraft between now and 2025 to add to its
Durga Das Publications.
headquartered in the turbulent east African region. The prime attention cross-border airline cooperation that can improve the market share current 92 ultramodern and environmentally friendly fleet.
given to preemptive security strategy and action has been cementing and future prospect,” he says.
Mr. Mohammed explains that the company managed to override the
the position of Ethiopian to an unshakable state of trust amongst our “Operating the youngest fleet in the industry with modern and
17-2016 economic challenges by implementing multi hub strategy,
customers.” He explains that African governments should clearly understand that comfortable customer features is one of the four pillars of Ethiopian
following cost saving strategies, and making the most out of its
competitive advantage and its highly skilled workforce as well as its aviation industry is not a luxury and national airlines are a vehicle to 15 years strategic road map, vision 2025, and the additional order
dedicated and focused management. Ethiopia: An Attractive Tourist Destination accelerate development and to meet transport need in the market. placement is one component of this strategy of sustaining the airline’s
“African governments should capitalize on the Yamoussoukro ever-expanding global network,” he says, adding that during the
On how Africa and GCC countries can exploit historical relations and Declaration which is geared towards a comprehensive reform of the 2018/2017 fiscal year, Ethiopian’s five star hotel would be finalized.
Expanding Network, Record Safety and geographical proximity to boost trade ties, Mr. Mohammed says: air transport industry and the unification of the fragmented African air The hotel will have 330 rooms, a banquet hall to accommodate 2000
Unshakable Trust “Trade between the rising Africa and Middle East is very strong, transport market,” Mr. Mohammed says.
“ African governments along with African Union, AFCAC, AFRAA and
guests, restaurants and other facilities.
specially since Dubai has emerged as a global city, a business hub
of the Middle East, and a major transport hub for passengers and all African carriers should reinforce the effective implementation of the On African participation in Dubai Expo 2020, Mr. Mohammed underlines
On the airlines’ plans concerning expanding its network in Africa
cargo. This region is very important to Ethiopian Airlines and we are declaration that aims at making Africa as one sky. This will in return that considering the strong trade between Africa and the Middle East,
and the Middle East and strengthening customer confidence, Mr.
also expecting robust air traffic and travelers between the Middle East help Ethiopian to boost its market within African more than ever,” he millions of exhibitors and shoppers are expected from Africa for the
Mohammed says: “Being a pan African carrier, we give priority in
and Africa,” adding that working aggressively to bolster the relations adds. EXPO 2020, creating a lot opportunities for African airlines.
connecting Africans with one another and we work aggressively in
Africa. We also focus on the Middle East as the center of business, between the regions in terms of economic and mutual social aspects
culture and civilization.” will help to achieve further cooperation in air transport.
“The regions should work in collaboration to attain mutual economic
“Ethiopian currently flies to and from 11 destinations in the Middle East and social benefits,” he says, “especially Dubai since it has emerged
and thrice daily from Dubai with the ultramodern aircraft; connecting as a Global City and business hub of the Middle East and a major
travelers from the Middle East to over 54 and over 100 destinations in transport hub for passengers and cargo.”
Africa and worldwide respectively. In order to strengthen Ethiopian’s Mr. Mohammed explains that in addition to the business travelers,
market in these regions, we are working to boost in areas such as the Middle East and Africa have the potential to boost leisure travel
additional capacity, more frequencies and planning to expand to all between them.
Middle East cities,” he adds.
“To improve the tourism business we have developed attractive
On the Airlines’ record in efficiency, safety and environmental inbound and outbound packages and started selling from all Africa “Ethiopian currently flies to and from 11 destinations in the Middle East and thrice daily
responsibility, Mr. Mohammed underlines that Ethiopian operates points and UAE especially for those targeting business with leisure,”
ultra-modern and environmentally friendly aircraft such as Airbus he says. from Dubai with the ultramodern aircraft; connecting travelers from the Middle East to
A350, Boeing 787 and Boeing 300-777ER with an average fleet age over 54 and over 100 destinations in Africa and worldwide respectively.”
of five years, noting that Ethiopian is the first airline in Africa to own and “When we look specifically to our hub, Ethiopia is a land of diversity,
operate these aircraft. rich with history; Ethiopia boasts 80 ethnic groups, more than 250

12 13
 Steady Growth Over
Two Decades
Deriving its strength, from its young, dynamic and proactive team, Jubba Airways maintained
constant growth and a robust presence in both regional and domestic destinations since its
inception in 1998.

It brands itself as one of the leading airlines in the region serving the COMESA region
connecting middle east.

Having a staff with 100 years combined experience has enabled Jubba Airways to succeeded
in following its vision of offering passengers flexible fare and safe travel across the countries
in the Common Market for Eastern and Southern Africa (COMESA) region.

Mr. Abdullaahi Diria,

CEO, Jubba Airways

L
ooking back at the company’s two-decade history, Mr. Abdullahi “We understand the existing security challenges and we monitor our
Diria Warsame, Managing Director of Jubba Airways, says: “Jubba operations closely with strict rules both on the ground and in air,” he
Airways was founded in April 1998 by a group of entrepreneurs to says. Jubba Airways has obtained the AMO License from Kenyan Civil
establish a reliable airline to accommodate domestic and regional air Aviation Authority and the fleets are maintained by highly qualified
transportation throughout East Africa.” engineers.

From its inaugural flight, the airline’s goal was to meet the demand for High Growth Potential for African Airlines
air travel in East Africa, particularly Somalia, Djibouti and Kenya and
established schedules with network offices in Djibouti, Somalia, Saudi On the growing trade between Africa and GCC countries, particularly
Arabia, Uganda and UAE. Offering competitive fares to its passengers, United Arab Emirates, Mr. Warsame highlights decades long trade
Jubba Airways operates both domestic, regional and international relationship between Africa and GCC will increase in the future. “We see
passenger flights. a great potential and a growing demand for African airlines especially
for direct flights to Europe and Asia,” he says. Mr. Warsame adds that
various African governments are investing in airport infrastructures as
“Our Mission is to deliver commercially sustainable world-class air
well as developments in other sectors across the region, underlining
passenger and aviation services in East Africa connecting rest of the
that such projects will pave the way for more free and easier travel
world,” Mr. Warsame says.
between countries in the African continent.
“Our vision is to meet the unique needs of our customers (internal and Future plans of Jubba Airways include lease purchase of more aircrafts
external) by tailoring each interaction to suit their needs with flexible to accommodate growing traffic volumes at both on the passenger
fare and safe travel across the countries of the Common Market of and cargo levels and branching out to offer new routes to more
East and South Africa (Comesa),” he adds, noting that the carrier’s destinations. Mr. Warsame attests: “The air travel industry is poised to
grow at a pace of %15-10 annually and we expect more passengers
passenger destinations include Mogadishu, Galkayo, Bossaso,
to utilize our domestic and regional connections efficiently.”
Hargeisa, Djibouti, Dubai, Jeddah and Nairobi.
The challenge for an airline is to be always price-competitive and be
After two decades in service, Jubba Airways takes pride in delivering passenger-friendly at the same time, says Mr. Warsame, noting that
high levels of performance and customer care and becoming one of Jubba Airways achieves this by translating its mantra of “We make it
the largest single carriers in the region. easy for you” into a culture.
On the role of technology in operations, Mr. Warsame says: “Africa
Record Safety and Security Standards is highly aware of the need for new technologies in aviation industry.
Jubba Airways has invested substantially in various software solutions
On increasing the airline’s network, Mr. Warsame explains that the and maintain agreements with world’s leaving leading suppliers in
carrier’s strength lies in its regional and domestic presence over passenger and operational services.”
the last two decades and its ability to maintain constant traffic flow:
“Currently we are consolidating our existing markets in East Africa and
we will continue to establish more regional flights, while giving priority
to under-served routes in domestic and regional sectors with hub and “Africa is highly aware of the need for new
distribution,”. technologies in aviation and Jubba Airways
With zero accident credential to its operating safety record, Jubba has invested heavily on new software
Airways is continually enforcing the highest international aviation safety solutions, while we have agreements
regulations. According to Mr. Warsame, the airline has a high standard
of safety and security due to the extensive expertise of its operations with leading global suppliers of various
team which has a combined experience of 100 years in the aviation programs offering wide range of services.”
sector.

14 15
 Giant Communication
Provider and Leader in
Mobile Financial Services
As one of the leading communication service providers in the Horn of Africa, Telesom was
Established in 2002 in Somaliland and has the widest coverage network.

It takes pride of being the first company that introduced the first GSM, Landline, ISP,
and later 3G and 4G, as well as the first mobile Money Platform (ZAAD), which has been
recognized by GSMA as one of the most successful mobile financial services in the world.

Having the highest mobile penetration in Somaliland with universal access coverage,
Telesom plays a vital role not only in curbing the digital divide but also becoming the
biggest contributor to youth employment and to Somaliland’s GDP growth.
Mr. Abdikarim M. Eid
CEO, Telesom Somaliland

T
alking to Africa Leads about the company’s competitive edge, “At the beginning we were focusing on cash-in and cash-out,
Abdikarim M. Eid, Telesom CEO, says: “Our highly skilled domestic money transfer, airtime recharge and merchant payment,
workforce, our capacity to quickly respond to customer needs, but the current offering include the Internet work transfer to other
and our ability to create an efficient communication ecosystem for our MMTs, International remittance, mobile payments (P2B – purchases
(shopping); educational institutions (school fee payments); health
community, are our unique attractions,” underlining that as the first
service providers (charge collection); utility providers (monthly bills for

TELECOMMUNICATION
mover, Telesom attaches great value to its customers and building
electricity, water, waste, TV, etc and online API enabled offerings etc)
strong shareholder confidence. and Data recharges.
Mr. Eid says: “Telesom business model is underpinned by strong
market positions in combination with some market-leading assets and
resources. This is a difficult combination for competitors to replicate, “One of the uniquely attractive services
and we are confident that our business model is sustainable. This is of ZAAD is a KAAFI, which allows the
why we continue to invest, foster innovation, maintain strong cost
efficiency, strive to deliver superior customer service, and pursue new customer to link his/her mobile money
paths to growth.” account and bank account to be able to
Telesom led the telecommunication market in going far beyond make deposits and withdrawal remotely
cellular services to financial services and data communication through without going physically to the bank. “
innovative initiatives, products and services.

“This has not only propelled us towards repositioning our vision “Bulk Disbursements is an important service we provide to the majority
and goals but it also boosted our competitiveness,” Mr. Eid says, of the employers and UN and international organizations for payroll
noting that the company’s future plans include creating opportunities payment, financial aid and grant distribution.”
for growth, by investing in Fiber broadband, Ethernet and IP voice
services as well as in the portfolio of managed service solutions. ZAAD Services is continuously improving to provide user-friendly
mobile money features for the whole community and to extend it to
“This enables us to continually improve customer experience through Telesom’s stakeholders in key financial services in a bid to transform
our ongoing investment in fault prevention, automation and self- the virtual connectivity of financial services into reality.
service tools. In turn reduces cost base significantly and increases
skills and productivity.” Commenting on how growing technological advances in Africa assist
the company’s operations, Mr. Eid says: “The technological advances
in Africa, especially our regional market has increased the adoptability
African market leader in mobile money service of the new product/services we offer to the market. For example, we
were the first to launch Mobile Money Services in Somaliland in 2009;
Telesom’s mobile money services known as ZAAD is the company’s we carried out numerous marketing campaigns to sell the services
but it was the advances of technology that made our work easy
signature service that raised Telesom’s profile as one of the first wholly
and people quickly adopted it, making the financial inclusion as the
African owned companies to provide this service. Elaborating on the highest service we have although most of the people do not have
evolution of ZAAD services and the company’s future vision for mobile Bank Accounts.”
money technology, Mr. Eid says:
“This also provides us an opportunity to expand our business and offer
“It was June 2009, when we launched the first mobile money services, latest technology since 75% of our population are under 30 years. We
ZAAD, and it instantly became a game changer in the financial know the market can handle it but the traditional low-end technologies
ecosystem. The services and products we provide have evolved from are also still relevant in the long term in Africa due to high illiteracy and
basic mobile money services to advanced digital financial services. the fact that a large number of the population still lives in rural areas.”

16 17
Giving an insight on how the company managed the market penetrate newer markets within the continent such as Somaliland.”
developments of 2016 in terms of economic slowdown, and the fall He describes the relationship between GCC and African states as
out from political developments in EU and USA, Mr. Eid points out that a historical one, based on geographical proximity, trade and socio-
in 2016, the EU and USA experienced some economic slowdown due economic ties.
to UK’s Brexit from the EU and USA elections, noting that although
the industry was somehow affected, particularly the remittance He says although traditional trade between GCC countries and Africa
sector, Telesom’s efficient marketing strategy and risk management was concentrated in North Africa, business focus recently expanded
and prevention practices helped it maintain robust business. to sub-Saharan countries. Among the most significant is DP World’s
investment of $442 million in Berbera port of Somaliland, and Rani
Demand for empowering regulations to create Investment, based in Dubai, being a key investor in Mozambique’s
tourism industry operating a number of luxury hotels. Several UAE and
dynamic industry GCC companies are also investing all kinds of business sectors in
Africa, showing a sign of growing and sustainable trade.
On the role African governments can play in enacting regulations to
address the operational concerns of the industry, Mr. Eid notes that “As a leading investment pioneer in the region, the UAE can help
the telecommunications industry and Regulations had long history establish GCC-Africa investment forum that can create a conducive
over the past decades and that there were different practices in environment for mutual investment between GCC & Africa.” Mr.Eid
different parts of the world. says.

“But now most of the industry is liberalized and privatized, leading to Commenting on Africa’s telecom sector, Mr. Eid says: “Telecom sector
technological advancements and drastic infrastructural improvements. has great opportunities in Africa, mainly due to privatization which
Therefore, African Governments should be proactive to liberalize the opened active competition for new business. During the past seven
telecom market and put and affective regulatory in order to create years, Africa’s telecommunications has been the fastest growing
level playing field for competition and creating a dynamic industry,” market especially the mobile market and there is nearly 960 million
Mr. Eid says. mobile users in the continent. Many African mobile markets grow over
100% per year.
“Regulations have their impact on the telecom industry and the
balance of its efficiency, so Telecom investors, particularly in Africa, He says Africa’s money transfer market will witness dramatic increase
require empowering regulations that can promote favorable market in market share due to technological innovations that led to lower
conditions for competition and innovation, while at the same time transfer cost.
protecting the consumer interest.”
“This is the new reality where African and Asian mobile financial
services are changing the remittance landscape,” Mr. Eid said.
Measuring success on customer satisfaction
Answering a question on how Telesom is working on increasing its Telesom’s expanding portfolios
network in Africa and strengthening consumer confidence, Mr. Eid
says: Explaining his company’s targets in 2017 and the market prospects
to help them achieve their expected growth, Mr. Eid says: “Telesom
is a growing company of a number of portfolios. Our plans for 2017
are aimed at improving our customers’ satisfaction by offering best
“We believe that the greatest impact product/services as we always try to do. We are focusing on investing
we can have on our society is to provide product / services, which the customers need most. We are currently
deploying Fiber Optic Cables to enhance our customer experience
reliable and secure networks. Getting this and build strong communication ecosystem as part of G2A (Gulf to
right is essential for us in building trust Africa) and DARE Cable (Djibouti Africa Regional Express). Both cables
will be landing in Berbera port.”
with our customers and in enhancing in
our brand value.” On SOMGAS, Telesom’s energy portfolio, Mr. Eid says it is the leading
multi-million LPG GAS provider in Somaliland which was built as
Gas Terminal in Berbera, underlining that it will lower the costs of the
“Our strategy starts with customer service and we always try to
gas and help protect the environment by preventing cutting trees for
improve the experience we provide to our customers. ‘Right first time’
charcoal.
is our key measure for customer service.
“There is also a great demand for low cost energy; therefore, through
“We also conduct our business in a way that creates shared value for all
Telesom Electric Company (TEC), we are working on delivering
relevant stakeholders. We provide the power of digital communication,
continued and low cost electric supplies to both households, small
enabling everyone to improve their lives. We bring vital infrastructure,
factors and the business sector. Our target is to increase investment in
new services and products that stimulate progress, change and
solar energy,” Mr. Eid says.
improvement. We exist to help our customers get the full benefit of
being connected and we measure our success on how passionately “We are also focusing on offering micro-finance for low-income
our customers embrace our services. customers, so that they can either expand their business or uplift their
economic performance. This will be extended through Darasalaam
“The company’s vision, mission and values express Telesom’s
Bank, one of our subsidiaries.
future and the role it will play in both transforming people’s lives and
empowering the local community to grow and progress.”
“Therefore, our market prospects are highly positive and as such, we
are continuously investing new technologies, increasing our strategic
UAE-led growing trade between Africa and partners in order to satisfy the needs of the markets we operate,” he
GCC says.

Answering a question about African participation in Dubai Expo2020,

On the trade between Africa and GCC, particularly the UAE, and
Mr. Eid notes that the event will be a good opportunity for African
how the two regions can capitalize on their geographical proximity,
business to get international exposure.
rich natural resources and human capital to achieve further economic
cooperation, Mr. Eid says: “The UAE is one of the leading exporter “It can give a powerful drive for development in the whole region.
of goods to several African countries as well as being among the top African companies will benefit from the experience of Dubai Expo2020
ten importer of goods and commodities from a number of African and it will create more investment prospects. It will also establish new
countries Therefore, Africa is fast emerging as one of the most trade channels between Asia and Africa and thus increase the trade
important markets for the UAE. The UAE has also moved fast to volume” he concluded.

18 19
 Lifting People Out of
Poverty Through Fast
and Readily Accessible
Broadband
A privately held company founded in 2002 with over 5000 Somali shareholders all over the
world, Hormuud Telecom emerged as the leading Mobile Network Operator in the south and
south central Somalia with about one million mobile connections.

Launched during the Somali civil war when connecting divided communities was vital for the
people’s survival, Hormuud is credited for bringing mobile services to ordinary Somalis with
low tariffs, and allowing more middle and lower income people to access mobile services. The
company provides an array of innovative telecommunications products and services ranging
from voice, SMS, and value added services to mobile data.

Over the years, Hormuud grew from a small company offering basic telephone services into
one of Somalia’s largest communications companies, with extensive network infrastructure and
Mr. Ahmed Yuusuf services. With over 6000 employees, Hormuud remains one of the largest employers in the
CEO Hormuud Telecom country and the largest domestic investor.

T
alking to Africa Leads about the company’s growth over the But while the service currently enables users to make payments directly
years, Mr. Ahmed Yuusuf, CEO, Hormuud Telecom, attributes to businesses and service providers, pay bills, purchase airtime and
Hormuud’s expansion to the company’s enormous investment send money to their families, the vision of the company says the CEO
in quality of service and technology and in achieving simplicity in its is to empower individuals and to support entrepreneurial creativity by
processes and organization. offering additional financial services including small loans.

“Consumers are becoming increasingly demanding: they want On strengthening customer confidence, Mr. Yuusuf notes that getting
products and services of the best quality for the best price. They the customer experience right, and improving the quality of customer
expect personal service and a reliable, secure and fault-free network. relationships, is at the heart of Hormuud’s strategy to strengthen
To meet this challenge, we have invested more than any other network consumer confidence.
in the quality of the service we give to our customers, in technology
and in our fixed and mobile networks, as well as in simplifying our “We work under the firm belief that our business success depends on
processes and our organization. We are unique in that no other delivering value to all our customers. We listen to criticisms and have
operator in Somalia has the reach, capability and reliability of our a well-developed improvement plan in place. We try to think ahead,
network,” says Mr. Yuusuf. anticipate what our customers want and develop products, services
and an overall experience that meet their needs, both as individuals
and as businesses,” says Mr. Yuusuf.

Furaha Nolosha Creating Mobile Money to Unleash

Entrepreneurial Creativity African Governments’ Role to Regulate the
Market
iyo On the company’s groundbreaking mobile money known as EVC Plus,
Mr. Yuusuf explains that exclusion from the formal financial system has
increasingly been identified as one of the barriers to a world without
poverty and more than %90 of the Somali population lack access to
Commenting on the role African governments can play to address the
operational concerns of telecom companies, Mr. Yuusuf explains that
strong, predictable and transparent commercial legal environments

Ganacsiga formal financial system due to the existing financial institutions’ limited
capability.
are critical to stimulate domestic and foreign investment.

“To operate and grow, businesses need clear rules and the ability to
enter into agreements and resolve disputes quickly and affordably.
It was to fill this financial disparity that prompted Hormuud to launch
EVC Plus service eight years ago. “Our objective was to bring financial It follows that to encourage investment, African governments need
inclusion to our community. We wanted to create accessible and to create a regulatory frameworks that is proportionate, effective,
convenient medium for the delivery of financial services that is more transparent and balanced,” he says.
reliable and transparent than traditional informal methods,” says Mr.
Yuusuf. “For the telecom sector, to continue investing and offer valuable
services, an enabling regulatory environment is critical. Having an
“With an extensive marketing campaign we saw tremendous growth enabling regulatory approach encourages competition and innovation,
in EVC Plus adoption. As a result, we have not only extended financial attracts investments and allows providers to focus on operational
services to the poor, we improved productivity of the economy efficiency and accelerates technological development. African
by increasing the efficiency and lowering the cost of transactions, Governments can help drive demand and shape policies, including
improving security, generating new employment opportunities, and a supportive regulatory environment that will help the content to
creating a platform on which other businesses can grow,” he adds, continue its technological advances,” he adds.
noting that EVC Plus has been especially successful in reaching
low-income Somalis with new data indicating that the percentage of Achieving Business Goals
Call : 141 SMS : 101 [email protected] www.hormuud.com people living on less than three dollars a day who use EVC Plus rose
significantly. On the company’s targets in 2018-2017, Mr. Yuusuf notes that

20 21
in addition to making fundamental upgrades to the network have been affected by droughts with direct food aid, drilling of wells,
infrastructure, the company’s Broadband investment remains its and construction of water reservoirs, while noting that the company
priority in 2017/2018. continues to fund road infrastructures and fire fighters in Mogadishu.”

“We believe making broadband readily and rapidly available to our “We also remain committed to our financial inclusion initiative through
community could have a significant impact on helping to lift people EVC Plus programme,” he adds,” stressing that the company
out of poverty. We have already seen the impact of mobile phones in continues to directly invest in new businesses to create jobs and to
encouraging trade and wealth creation – good Internet connectivity contribute to economic growth.
at an affordable cost would allow much further development and
knowledge sharing and spurring economic growth that will benefit
both the sector and the country in the long run,” he says.
Boosting Trade between Africa and GCC
countries
Explaining on how growing technological advances can assist
Hormuud’s operations, Mr. Yuusuf highlights that the continent’s future Commenting on the economic relations between Africa and Arab “Connecting to the world better”
prospects largely depends on investment in technology. Gulf Cooperation Countries GCC (GCC), particularly the UAE, Mr.
Yuusuf explains that trade is the most important means of raising
“Factors such as the declining cost of high-speed internet, the rise people’s incomes and reducing poverty in Africa – it creates jobs and
of smart phone use across the continent, innovations in banking and opportunities for poor people to support their families and build more
payments technology and the increasing availability of early stage stable futures.
investment funding will all play major role in our cross-border trade
with our African neighbors. Global and cross-border trade is the “The geographical proximity, ancient trade links, and other economic,
fastest contributor to growth, supports domestic trade, small and social and cultural ties make UAE an important trading partner of
medium enterprise formation and job creation,” he says. Africa. Given its impressive story of progress, the UAE and Africa
can together establish strong partnership in many fields such us
transportation, hospitality, air transport and mining,” he says.
Contributing to Community Development
“Africa remains the most promising market of the new millennium but
On Hormuud’s contribution to community development, Mr. Yuusuf
it needs a significant investment and help in infrastructure. The two
underlines that his company is proud of its record in uplifting the life of
sides should create opportunities to network and establish working
the community in which it operates:
opportunities to make the best of the many business and investments
opportunities that the continent has to offer,” he adds.
“Our community activities are themed around social development
programs, such as fighting against poverty, youth unemployment,
On African participation in Dubai Expo 2020, Mr. Yuusuf points out
health and education, climate change, infrastructure and access to
that the Expo2020 creates an opportunity for business people from
financial services.”
Africa and the UAE to interact and increase business and investment
opportunities in their respective countries.
The projects sponsored by the company include the establishment of
a university to produce new generation of engineers and innovators,
“Expo 2020 opens a window of opportunity for African businesses
the building and continued funding of a school for the blind as well as
mainly small and medium enterprises including the telecom sector to
funding hospitals and health clinics.
do business in the country. Such an event will be a great opportunity
for the two regions,” he concludes.
“On climate,” Mr. Yuusuf says, “we continue supporting people that

“For the telecom sector, to continue investing and offer valuable

services, an enabling regulatory environment is critical. Having
an enabling regulatory approach encourages competition and
innovation, attracts investments and allows providers to focus on
operational efficiency and accelerates technological development.
African Governments can help drive demand and shape policies,
including a supportive regulatory environment that will help the
content to continue its technological advances.”

Call : 141 SMS : 101 [email protected] www.hormuud.com

22 23
 Regional Leader and
Global Player in
Next-Generation Next-Generation
Broadband Solutions
Broadband Since its incorporation in 2003, Dalkom Somalia has grown into one of today’s
fastest-growing telecom companies in Africa offering next-generation solutions for
broadband, connectivity, cloud computing, managed services, satellite services and
internet services across all businesses.

As the Innovation Award winner at Global Telecoms Business and AfricaCom in 2015,

Solutions
Dalkom’s seamless network covers 30 African countries via more than 55,000km of
optical fiber serving more than 500 African locations, while its global reach extends to
100 cities in 29 countries in Europe and more than 700 cities in 70 countries globally.

In partnership with Intelsat, the world’s first Globalized Network operator and leader
in integrated satellite communications, Dalkom will deploy Full Transponder Capacity
Mr. Mohamed A. Jama which together with its Teleport will expand its broadband enterprise and direct-to-
CEO, Dalkom home (DTH) services in East and Central Africa and the Middle East.

T
alking about the company’s journey and its growth, Mr. Mohamed On Dalkom’s global expansion, he highlights that in order to sustain
A. Jama, CEO of Dalkom, explains that since its establishment and compete with the Global ICT market, the company is offering
in 2003 as a Limited liability company registered in Somalia and state-of-the-art Global network, telecom connectivity, ICT and other
United Arab Emirates, Dalkom Somalia maintains its technological Media broadcast solutions with the strategic partnership of several
advantage as one of the most reliable and fastest growing telecom major global telecom players.
companies. It offers next generation solutions of broadband and
connectivity to most government and semi-government sectors in He notes that Dalkom has made strategic investments in multiple
addition to private sectors from financial groups, large organizations, submarine cables – including the EASSy, EIG and WACS cable
as well as small and medium-sized businesses. systems – enabling it to offer cost-effective diversity propositions to
meet customer demands for a seamless resilience offering.
“A privately owned entity, funded by Somali Individuals and Investment
Companies, Dalkom’s next generation solutions include broadband,
connectivity, cloud computing, managed services, satellite services “Dalkom Somalia offers access to a
and internet services for businesses, wholesale, and consumers seamless network covering 30 African
segments,” Mr. Jama says.
countries via more than 55,000km of
Holding Equity in EASSy ( East Africa Sub-marine cable System ) and optical fiber serving more than 500
WIOCC (West Indian ocean cable company) and through WIOCC, African locations, while our international
Dalkom Somalia has equity in EIG and WACs sub-marine Cables.
The company also owns independent infrastructure that includes one reach extends to 100 cities in 29
international landing station in Mogadishu as well as the first Satellite countries in Europe and more than 700
Teleport in Somalia and one of the few in the Region, connecting the
country to the rest of the world, according to Mr. Jama.
cities in 70 countries globally,”

Regional and Global Network “We treat all our customers on a high priority with immediate response
and actively work towards their satisfaction. We also offer cost-
On the company’s African outreach, Mr. Jama says: “These gateways
effective tailored solutions to our valued customer according to their
are in turn connected to Major Cities in Somalia through City Metros
requirements with 99.9 % SLA as well as round the clock network
and National Backbone. We have connected major Cities in Kenya
support which are the key factors that strengthen customer loyalty
and Uganda via EASSy from Mombasa through strategic partnerships
with long term strong business relationship,” Mr. Jama underlines.
with related Parties. Through our Data Centers in Mogadishu, Nairobi
and Mombasa, we have supported organizations by securing their
Data.” Creating Regional Data Centers
Winning the Innovation Award at Global Telecoms Business and On the market challenges and clients, Mr. Jama notes that Dalkom’s
AfricaCom in 2015, Dalkom Somalia has recently signed an agreement top management and various technical expert teams work closely to
with Intelsat Globalized Network operator, a leader in integrated ensure an efficient supply chain across its range of products: “This
satellite communications, for provision of Full Transponder Capacity involves various factors and challenges including selection of the best
which together with its Teleport will expand its broadband enterprise hardware platform vendor, immediate availability of hardware and
and direct-to-home (DTH) services in East and Central Africa and the solution design and deployment in the African region. We, however,
Middle East, explains Mr. Jama. never compromise on quality and we always welcome customer

24 25
feedback and try to make improvements in the quality of customer 44. Identify and implement strategies that are proven to work and
experience.” conduct research where evidence is lacking. 
55. Maintain a skilled, cross-trained, and diverse prevention workforce.
Mr. Jama highlights that Dalkom Somalia is the only major player
which is connecting Somalia to the rest of the world and the main Growing African-Arab Trade Partnerships
internet exchange point for Somalia.
On African-Arab trade and future cooperation, Mr. Jama explains that
“We are also actively working on some ongoing mega Data Centers trade relations between Africa, especially the Horn of Africa and the
projects and will be offering a very huge portfolio of Network Arab World has always been very strong and dates back to the times
connectivity, hosting and Media broadcast / IPTV to all types of small, of antiquities, describing the UAE as the world re-export hub and
mid and corporate / wholesale customers,” he says.. leading trade partner of Africa.

On the company’s 2017 targets, he says: “Our targets for 2017 He says: “As the world’s largest companies move their operations to
include to setup Dalkom Enterprise Data Center/ POP in Mogadishu the UAE due to the country’s advanced infrastructure, security and
as regional African Hub as well as DATA MENA Data Center/ POP in a business environment, trade volumes between the UAE and Africa will
location to be selected in GCC to offer various cutting edge technology certainly increase as raw materials required by these companies can
in International Global Network/ Telecom connectivity, ICT and Media easily come from Africa.”
Broadcast solutions to global market. We definitely see a positive
Citing Africa’s proximity to UAE, where seaborne cargo reaches
market prospects that will help us achieve our expected growth and
within seven days only, as a great advantage in strengthening trade,
we have reserved enormous investments to setup the POPs.”
he says: “There are substantial African businesses in UAE geared
towards facilitating supply chain and logistics with companies in
Safety as a Priority Africa,” explaining that with the UAE being the country of choice for
multinationals and major brands, many African companies set up
As safety ranks high in the company’s priorities, Mr. Jama indicates shops in the UAE to establish partnerships with these entities. But
that workplace safety is fundamental to Dalkom’s success. “In fact, he cautions that “Africans need to strengthen their institutional and
safety is part of our business plans. Our safety policies and practices business environment in order to attract foreign direct investment (FDI)
are designed to provide a safe workplace for our employees, and we from the UAE. They need to work with big companies in their industries
are proud of our safety performance,” he says, pointing out that the and present the case of improving value chain and economies of
company strives for zero-incident record every day in line with their scale.”
goal of achieving world-class safety performance.
Mr. Jama sees great potential in emerging markets of the Arab region,
He enumerates the company’s answers to guarantee a safe community especially in the UAE, for Dalkom which can play a key role while
environment as: connecting various businesses at all scales not only to Africa but also
11. Design and promote affordable, accessible ICT solutions that have to the rest of the world through the company’s international network

MONEY TRANSFER
less impact on environment. and telecom carriers. “So, we are looking forward to playing a key role
22. Provide awareness about essential ICT solutions to state, tribal, to meet the rising demand for connectivity and internet broadband.”
local, and territorial Govt. and private organizations which can be
helpful improving performance and growth. He urges that African business should participate very strongly in
33. Expand and increase access to information technology and Dubai Expo2020 as this event will not only expose them to world
integrated data systems to promote cross-sector information standards but also enable them leverage Africa’s proximity to Dubai
exchange. and link with potential global business.

26 27
 Dahabshil: A Global
Money Transfer Leader and
Financial Powerhouse
A leading international money transfer company and a global player in over 120 countries,
Dahabshiil has an unparallel presence in East Africa and remains the biggest African remittance
provider. Founded in 1970 as a small business, Dahabshiil has grown over the past 47 years into
a multi-million dollar financial powerhouse with diversified business sectors including Banking,
remittances, and telecommunications sector etc.

Equally serving both individual customers and international organizations such as the United
Nations, Oxfam, Save the children, and the American Refugee Committee, Dahabshiil has
Mr. Abdirashid Duale become a trusted partner with International organizations on projects that empower the
CEO, Dahabshil communities and their businesses, creating jobs and reducing poverty.

T
Talking to Africa Leads about the company’s phenomenal rise, business opportunities available for investors and development in the
Mr. Abdirashid Duale, CEO of Dahabshiil, attributes Dahabshiil’s region. A large number of African diaspora are also present in the west
capacity to building excellent customer relationships and including in America, Europe, and the Middle East.”
providing reliable and trustworthy services to people as the company’s
competitive edge. “These immigrants have one tradition in common— to help people
who they left behind in their home countries,” Mr. Duale says, underling
“We are all about accountability, reliability, and integrity created by that “Dahabshiil developed a trustworthy network that allows people
customer loyalty. In each outlet of Dahabshiil, we hold our employees in the diaspora to help their families, friends and relatives back home.
and agents to high ethical standards, and that is what gives us a Money is sensitive, and people like to keep it in safe hands. From
competitive edge.” the beginning, Dahabshiil strengthened its consumer care system by
providing fast, reliable, and efficient services.” He went to say: “We
Focusing on underserved communities, Dahabshiil was the first in continue to consistently meet compliance of regulatory and anti-money
the private sector to introduce a Micro-finance initiative in the Somali laundering requirements within the countries in which we operate.”
region: ““Our Micro-Finance Initiative Micro-Dahab has issued products
and loans to thousands of women and youth in the region,” Mr. Duale “The number of transactions going through our outlets continue to
says, adding that: “This year, Dahabshiil is participating in the eighth increase in certain regions and as a result we have hired a substantial
annual Global Entrepreneurship Summit (GES) in Hyderabad, India in number of employees. Increased transactions and an increased
late November.” workforce are the results of our excellent service and reputation for
customer satisfaction.”
Dahabshiil builds high hopes on learning from and sharing experience
with its international counterparts during the conference to be attended On the company’s future plans, Mr. Duale explains that there is always
by high level delegations including Ivanka Trump, USA President’s room for improvement and expansion: “Africa consists of 57 countries
Advisor, who will lead the American delegation to the Summit. with an estimated population of 1.2 billion people. The majority of
the people of this continent are hardworking and are always seeking
“The Summit will highlight the theme Women First, Prosperity for All, opportunities to better their lives,” he says.
and will focus on supporting women entrepreneurs and fostering
economic growth globally. We hope the summit will enable us to “A substantial population also depends on remittances from their
further boost our projects targeting women and youth.” relatives in the diaspora as well as on the aid provided by the
international humanitarian organizations. Dahabshiil recognises this
Supporting start-ups in less advantaged communities is another zeal and determination of the African people and our goal is to not
successful Dahabshiil initiative: “We have also worked with other only provide services to this growing population but also to contribute
partners and sponsored business pitch competitions ‘Minbar’ where towards improvement of their livelihood through community projects.
potential startups in less advantaged communities are connected to “Dahabshiil’s plan for 2018 is therefore to reach many more individuals
global networks of investors, incubators and accelerators, mentors, and corporations by opening new outlets globally and to partner with
entrepreneurship programs and others who want to help. We have the international community and corporations to create more jobs and
done this is in East Africa in particular Uganda and in Minneapolis reduce poverty.”
in the US. There are plans to replicate these in other cities in Africa,
Europe and the US.” Mr. Duale says. “The banking relationship between the UAE and many
African countries is still being established and it is
Dahabshiil outlets that enable African business people
Unshakable Trust and Fast Service to transfer their funds to buy products and services in the
Dahabshiil has become the first choice for African immigrant population UAE. Therefore, I am confident to say that Dahabshiil is
who send money back home: “African countries are experiencing one of the bridges that connects African traders to UAE
growth and the cost of living is rising along. This has expanded the markets.”

28 29
Strong African Market and Technology Red Crescent . We also waived all commissions on funds sent to
alleviate the drought effects,” Mr. Duale says
On future prospects of the African market, Mr. Duale notes that
Dahabshiil is gearing up for a strong market in Africa and continues According to Mr. Duale the company’s other outreach projects include
to increase its outlets across the continent: “In the Somali region, we the support of vulnerable communities, particularly those affected by
have already launched eDahab, mobile money transfer system that the civil conflict in the East African region: “I can confidently say that
allows our customers to move money with ease. Very soon, we plan Dahabshiil has played a crucial role in improving the living conditions of
to expand further in the region. In short, we are committed to serving many communities in the East Africa where many people experience
the African communities,” he says. hardship,” he underlines.

On regulations he adds: “African money transfer companies should Connecting African Businesses to UAE
enhance collaboration between themselves and with the regulators.
They should also put into consideration the customers’ needs and
Markets
good customer service. Innovation should also be put at the core of On the trade prospects between Africa and the Gulf Cooperation
our businesses so that we can continue to offer efficient services while Countries (GCC), Mr. Duale explains that there is historic trade
keeping abreast of technological development.” between the two regions, particularly the UAE, noting that the
geographical proximity of the two regions is one reason for the strong
Describing technology and innovation as Dahabshiil’s mainstay, Mr. trade partnership that dates back centuries.
Duale says: “In today’s world, technology has become a powerful tool
that companies use to deliver their services and products as well as According to him, such strong trade has influenced the regions to
to increase the efficiency and effectiveness of business operations.” share not only common business interests, but also the development
“In Dahabshiil, we have a long tradition of using technology such as of a reliable infrastructure. “For instance, DP World recently launched
using an online system and mobile network that allows transactions an infrastructure development project that includes the Port of Berbera
to be sent in seconds. This system is supported by highly-secure, in Somaliland. Expectations are that the improving of the port and
efficient, advanced technology that offers our customers to collect the highways that lead to the port will increase the movement of
their funds in minutes. merchandise from the Horn of African to the UAE (or vice versa) by
%50.”
“We also engage with our customers on our social media platforms.
We built an effective system that helps our customers, either individual He however cautions that although the trade between the two
or corporate accounts, to send funds in minutes while blocking regions has improved, there are many things that still need to be
criminals out. This system provides for security and for the protection done. “Dahabshiil, the largest African money transfer company, has
of the integrity of our financial organization.” already put in place a system that will allow traders to transfer funds
in seconds and purchase goods they need while continuing to meet
A Leader in Community Development regulators’ expectations.”

Apart from providing its services to both individual customers He adds: “The banking relationship between the UAE and many
and international organizations, Dahabshiil is also a partner with African countries is still being established and it is Dahabshiil outlets
International organizations on projects that empower the communities that enable African business people to transfer their funds to buy
in supporting businesses, creating jobs and poverty reduction. products and services in the UAE. Therefore, I am confident to say
“We have had a long-standing tradition of contributing to the that Dahabshiil is one of the bridges that connects African traders to
communities in which we operate. We dedicate a substantial amount UAE markets.”
of our profit to humanitarian and community regeneration projects,”
Mr. Duale says, adding that it is through these initiatives that the He notes that because of the significant presence of African business
company provides funds to projects such as hospitals, schools and in the UAE, it is in the interest of both to focus on their trade and
community facilities. investment opportunities: “The United Arab Emirates is a major hub
for commerce and business in this part of the world, I believe there
“We have recently worked with the Bill and Melinda Gates foundation are now thousands of African companies present in the country. Any
to transfer funds into individual beneficiaries’ mobile phones using measure that simplifies business travel between Africa and the UAE
Dahabshiil’s mobile payment platform eDahab. This was conducted and makes it easy to carry out transactions will contribute towards
live during the ‘Goalkeepers event’ which was attended by President business growth and the opportunities.”
Obama, Prime Minister Trudeau among other dignitaries.”
On Africa’s participation in Dubai Expo 2020, Mr. Duale expresses
On relief efforts, Dahabshiil plays a crucial role in helping vulnerable his belief that many international companies including Dahabshiil will
communities: “When drought hit many Somali regions in 2016, participate in this important milestone event. “This event will no doubt
Dahabshiil donated nearly two million dollars to support internally increase the level of trade, business transactions, partnerships and
displaced people and refugees, while contributing to relief efforts opportunities. We look forward to interacting with these like-minded
spearheaded by other international organizations such as the Emirates companies during the Dubai Expo 2020,” he says.

30 31
 FDI in Africa—Past Decade that is unlikely to be surpassed for some time to come.
“During 2016, capital investment into Africa rose 31.9%. Investment
Infrastructure investment in Africa is stable but prone to fitful growth, per project averaged US$139m, against US$92.5m in 2015. This
as data provided by EY show. Investment in Africa’s economy grew surge was driven by several large, capital intensive projects in the real
at a compound average growth rate of 6.1% in the period 2007-16. estate, hospitality and construction, transport and logistics sectors.
Measured by capital investments, the flow of FDI into Africa recovered The continent’s share of global FDI capital flows increased to 11.4%,
in 2016 after a dip in 2015,according to another EY report. Not up from 9.4% in 2015. That made Africa the second-fastest growing
surprisingly, FDI in Africa peaked in 2008 at USD140 billion, a figure destination when measured by FDI capital,” it said.
by: Peter Shaw Smith, Maritime and Aviation Expert Journalist.
Table 2: FDI in Africa 2007-16

Year USD bn Growth

Africa Ports and Infrastructure 2007

2008
55.2

140.0
-

153.6%

Development—An Analysis 2009

2010
83.6

70.4
-40.3%

-15.8%

2011 67.6 -4.0%

A
t about 30.3 million square kilometres, Africa makes up about Containerisation penetration rates in Africa are less than a quarter of 2012 47.2 -30.2%
22% of the world›s total land area, according to the China- the world rate, at 96 teu per thousand people, and one seventh of the
2013 66.3 40.5%
Africa Development Fund. But Africa’s share of global container incidence in China. Only India, with its protectionist stance and tight
throughput is only 3.4%, compared to China’s 31% and Europe’s cabotage restrictions, fared worse than Africa last year, with only 10 2014 88.5 33.5%
17% shares. It is clear that there is room for improvement in African teu per thousand of the population compared to 22 in Africa.
infrastructure and logistics. 2015 71.3 -19.4%

2016 94.1 31.9%

Table 1: Global Containerisation Penetration Rates in 2016--Africa Has a Lot to Do Source: EY

Region or country Throughput Throughput Share Population teu/thousand

China 218 31.2% 1,389 157 FDI in Africa—Current followed by the Middle East. China led the way, investing USD36.1
billion, while the UAE was the next biggest country investor in Africa, at
UK 10 1.4% 65 149 USD11 billion. Italy was third-biggest, according to fDi Markets’ ‘The
African Business Report 2017 has obtained data which give a Africa Investment Report 2017,’ with USD4 billion. Estimates put the
North America 59 8.4% 482 122 breakdown of FDI in Africa by country in 2016. The data, provided by amount investment in port and logistics infrastructure in Africa as 14%
fDi Markets, shows that Asia-Pacific was the biggest investor in Africa, of the total amount invested in Africa.
Europe 121 17.3% 1,006 121

WORLD 699 100.0% 7,274 96

Table 3: Foreign Direct Investment in Africa in 2016
Latin America 42 6.0% 495 85
Region Country USD bn Share USD bn Share
Brazil 9 1.3% 206 43 Asia-Pacific 50.80 55.0%
China 36.10 39.1%
Russia 4 0.6% 144 27
Singapore 3.20 3.5%
Africa 24 3.4% 1,081 22 Japan 3.10 3.4%
Malaysia 2.50 2.7%
India 13 1.9% 1,293 10
Other 5.90 6.4%
Middle East 15.70 17.0%
Throughput=million teu; Population=est. millions; teu/thousand=Containers per thousand people
UAE 11.00 11.9%

Source: DP World 2017 Saudi Arabia 3.80 4.1%

Other 0.90 1.0%
Western Europe 12.00 13.0%
Romain Py of African Infrastructure Investment Managers said concern in Africa. According to Ernst and Young (EY), the cost of Italy 4.00 4.3%
GDP growth in sub-Saharan Africa slowed to about %3.4 in 2015 addressing its infrastructure deficit will be around USD900 billion in UK 2.30 2.5%
compared to %6 over the past decade. Major currency depreciations, the next decade, with spending needed for new investments—and Other 5.70 6.2%
rising fiscal pressures and current account deficits have not dented operations and maintenance of what is already there. “Infrastructure
Africa 8.50 9.2%
investor confidence, despite these headwinds. “Although growth in financing must look beyond aid and governments have to look at
alternative financing solutions that are economically feasible,”. said Morocco 4.80 5.2%
the region has slowed, Sub-Saharan Africa will remain the second
EY’s Bill Banks. Other 3.70 4.0%
fastest growing region in the world for the foreseeable future, after
emerging Asia,” he said. North America 3.80 4.1%
As a major player in Africa, DP World has issued warnings about the United States 3.40 3.7%
The majority of coastal nations in Africa, especially West Africa, are lack of sufficient finance to power Africa’s transformation. In 2015, Other 0.40 0.4%
served by 1-2 container terminals that handle gateway volumes it said more sophisticated financing methods were needed if Africa Emerging Europe 1.30 1.4% 1.30 1.4%
in addition to transit volumes to neighbouring, often landlocked, was to benefit from the infrastructure transformation that enable its
economies to progress at a faster rate. “To overcome infrastructure Latin America 0.02 0.0% 0.02 0.0%
countries. “Transhipment volumes are still low. The slowdown of the
global economy and more bearish economic projections lead to a deficits on the continent, as much as $93bn will be required annually Other 0.18 0.2% 0.18 0.2%
(approximately 10% of GDP), with only half of that amount currently
more conservative approach in port developments,” he said. Source: fDi
The infrastructure deficit and efforts to bridge the gap have caused available,” it said.

32 33
International port operator investment in and DP World, with 2.1 million teu. Even on an equity throughput
basis, APM Terminals was responsible for almost one-fifth (17.4%) of
DP World’s Role in Africa million in an expansion of the terminal at Berbera in Somalia, which will
give it new options on the major Colombo-Suez shipping route.
Africa the market.
DP World’s involvement in Africa began in 2000 with the signing of Chairman and CEO Sultan bin Sulayem will not rest there. As his
As expected, the other major names to appear are CMA CGM/Terminal a 20-year concession to operate the Port of Djibouti. That led to the recent tour of Senegal, Mali and Ghana indicates, DP World could
Problems in obtaining more recent data mean that 2011 is a good Link, Cosco Pacific and Hutchison Port Holdings. Interestingly, in joint-venture investment in Doraleh Container Terminal, which opened be on the verge of investing in its second landlocked country after
date to analyse the state of play with particular regard to the incidence terms of equity throughput, of the dominant international players, for business in 2008. Since then, DP has become involved a number of Rwanda. As a major Arab investor on the continent, Africa will have
of the involvement of international players in the African market. Chinese companies Cosco and Hutchison were ranked fifth and sixth, terminals all over Africa. Its latest venture has been to invest USD442 much to thank DP World for.
APM Terminals was then the biggest player in Africa, with gross teu indicating a lower rate of investment exposure at this early stage in
throughput of 7.6 million teu, followed by Bolloré, with 3.3 million teu, Africa’s port development by international players.
DP World Facilities--Africa

Table 4: Terminal Operators in Africa 2011 Country Location Type Location Capy Date Draft Concession Inv
Algeria Algiers Marine Terminal North 2009 11
Company Player Throughput Equity Tput ET%
Berbera Somaliland Marine Terminal East 2016 30+10 442
Transnet Port Terminals Domestic 4,403 4,403 18.07
Inland Container
Rwanda Kigali East 50 2016 25 35
Depot
APM Terminals International 7,640 4,236 17.39
Algeria Djen-Djen Marine Terminal North 17 30
Bolloré Africa Logistics International 3,348 1,671 6.86
Djibouti Doraleh Marine Terminal East 2000 20
DP World International 2,094 1,193 4.89 Egypt Sokhna Marine Terminal North

Port Said CCHC Domestic 922 922 3.79 Mozambique Maputo Marine Terminal South
Senegal Dakar Marine Terminal West 2008 25
Damietta CCHC Domestic 809 809 3.32
Senegal Dakar Port du Futur West
CMA CGM/Terminal Link International 1,218 661 2.71
Capy=Terminal Capacity (teu ‘000’s); Draft in m; Concession in years; Inv=Investment USDm.
Cosco Pacific International 3,247 649 2.67

Hutchison Port Holdings International 949 548 2.25 Source: Industry

Alexandria CHC Domestic 517 506 2.08

Throughput=Total Throughput ‘000 teu

Equity Tput=Equity Throughput ‘000 teu

“During 2016, capital investment into Africa rose 31.9%.
Investment per project averaged US$139m, against US$92.5m
ET%=Equity teu as % of Regional Throughput
in 2015. This surge was driven by several large, capital intensive
Source: Drewry
projects in the real estate, hospitality and construction, transport
and logistics sectors. The continent’s share of global FDI capital
Chinese Investment in Africa Economist. Information from Swiss Re Insurance Company shows
that China is planning to invest USD123 billion in African transportation flows increased to 11.4%, up from 9.4% in 2015. That made Africa
infrastructure by 2030, or 7.9% of a total global investment of USD1,557
In the past five years, Chinese investment and contracts in Africa on billion by that year. However, if China achieves this investment level, it the second-fastest growing destination when measured by FDI
transport, has doubled, from under USD9 billion in 2011, to around
USD20 billion in 2016, according to information provided by the
will mean less than USD10 billion a year to be invested over the next
13 years. capital.”

34 35
 capitalize on today’s technology and interconnectedness to further as they want to increase mutual investment with Africa,” underlining

Meeting Africa’s strengthen these historical bonds,” noting that the trade relations
between Africa and the GCC are growing rapidly and that the future
looks bright.
that there has never been a better time for African companies to setup
their business in the UAE.

Growing Demand for

Commenting on how the two regions can increase mutual investment, Explaining that South Africa was leading the growing African trade with
he says: “It is just a matter of time before we see rapid investments in the UAE, he anticipated that South Africa will be heavily participating in
all corners of Africa as it’s the fastest growing continent in the world” Dubai EXPO 2020 to further enhance trade relations with the UAE and
noting that the World Bank reports that a third of Africa’s 54 countries the rest of the middle east.

Mobile Money Service see an annual GDP growth of almost half the global world average.
“The UAE is also an ideal hub for trade between the two regions. In
2015, Dubai Chamber launched an App that gives tips on African
“I feel African business has a lot to offer to the world especially trade
in commodities and they should emulate the success of South Africa,”
markets, this shows the direction to which UAE investment is heading he concluded.
Started in East Africa, Taaj Services rapidly grew into a fully comprehensive global money
transfer service with its latest penetration into the North American market.

The expansion was guided by TAAJ’s goal of becoming the customer’s first choice by providing
easy and trouble free service and building their brand on making the trust and loyalty of clients,
both corporate and retail, grow stronger with every transaction and experience.

It extends a high degree of protection for its customers while meeting standards of existing
Mr. Mohamed Artan Roble regulatory regimes and employing the best compliance program to prevent all kinds of illicit
CEO, TAAJ Money Transfer transactions such as money laundering, terrorist financing, drugs, fraud and dishonesty.

GLOBAL
T MONEY TRANSFER
alking to Africa Leads about the company’s history, business registered mobile money accounts globally. This is remarkable when
model, and progress over the years, …CEO says: “TAAJ you consider western countries that have only recently started to push
originated in East Africa and we rapidly grew to a global towards a cashless economy such as NFC payments.”
company that provides its platform to hundreds of agents located
in every continent.” He attributes their success to putting the right “We are looking towards the undeniable growth of FinTech companies.
fundamentals in place from the start. “From strict policies to code And in TAAJ we are always on the look of the next frontier of FinTech
because we know that innovation is the future of mobile money.”
of conduct as well as service, productivity, efficiency, effectiveness,
dedication/ commitment, all run deep as part of our core strategies.”
Meeting Market Dynamics
Describing the company’s penetration to the North American market
On the company’s strategy to meet market dynamics, TAAJ CEO says:
as one of TAAJ’s most recent milestones, he says: “Most recently we
“We stay up to date with unfolding trends in the remittance industry
are proud of our strategic entrance into North America markets…
and we plan ahead to meet market challenges…In recent months,
The North American market has been one of our primary targets to
remittances to developing countries fell for the second consecutive
penetrate, we now have established our presence in more than half of
year. This is the first time such fall happens in three decades. But
the states in the US and all major cities in Canada. We recognize this
despite this situation, experts forecast the market to bounce back and
as a stepping stone to our full-scale penetration into those markets
continue its growth. I believe the market will grow as long as the world
which is part of our long-term goals.”
continues to become more interconnected.”
TAAJ’s Competitive Edge He expects remittances to developing countries to recover in 2017,
growing by an estimated 3.3% to $444 billion in 2017 according to the
On TAAJ’s competitive edge, the CEO says: “We believe that TAAJ
world bank, saying that TAAJ will push to spread its services to more
has the trust of the East African region. East African people have high
regions across the globe.
demand for rapid financial services, particularly during difficult times,
and TAAJ meets this demand by connecting African Diaspora to their
“One of our main goals in the coming years is to solidify and further
people back home.”
enhance our market share in Sub-Saharan Africa, which remains the
highest-cost region with an average cost of 9.8 percent for sending
“This is why we want to continue with our pursuit of establishing a
remittance. Hence, we are looking to cut costs in sending remittance
mobile money transfer sector in order to satisfy the demand of our
not only to increase our competitive advantage but also advance our
loyal target market. We are also confident that our customers will
corporate social responsibility,” he says.
quickly learn that sending money online is cheaper, faster, and safer.”
He maintains, considering how political and security situations have
He believes what makes TAAJ unique affected the industry in terms of regulatory developments, that
regulators are failing to embrace more efficient ways of identifying
is the mobile money transfer services it senders.
provides in East Africa which includes, “We feel there are better ways of identifying senders as opposed to the
EVC-plus, SAHAL, ZAAD, saying that the traditional way of having to make them come to one of our Partners
and provide their ID. The market developments we see constantly
company plans to extend such services to growing is the online money transfers where customers have their
credentials saved in their account, significantly reducing waiting time.
all developing countries. We are pushing to make this a viable option for our customers,” he
says.
On taking advantage of new technology, TAAJ CEO explains that
the company is always working to become more innovative: “We On African-GCC trade, TAAJ CEO says: “The Arab-African trade, Adeeg degdeg ah: Ku dirso kuna qaado lacagtaada
found that African people depend heavily on their mobile phones dates back to antiquity. Having one of the oldest relationships built not
for almost all their financial transactions, they are the global leaders
when it comes to the usage of mobile wallets with over 220 million
only on geographical proximity but also on history and ancient trade as
well as social and cultural ties, have enabled the two regions to easily
Fast and reliable money transfer

36 www.taajservices.com
37
 A Fast Growing Food
Manufacturer With
Global Vision
Founded in 2003 as a trading enterprise of Transco Group of companies, Royal Food Industries
has transformed itself into the group’s manufacturing arm in 2011 with US$100 million invest-
ment under the registration of Rak Investment Authority.

Today, from its base in Arabia, Royal Food Industries expanded its market to 27 countries,
mainly in Europe and Africa, with 70% of its export going to East and Central Africa, 10% to
North Africa, 15% to GCC and 5% to the European market.

Counting on its R&D as its competitive edge, Royal Food Industries strives to innovate new
products that meet its customer needs and capture their passion through uncompromised
quality, good packaging, and competitive price.

Mr. Roble Elmi Pursuing its strategy and confidence in the market, Royal Food Industries is planning to have its
CEO, Royal Food Industries first building premises, while adding six different new products in the near future.

T
alking to Africa Leads about the company’s progress over the something to offer. He notes that trade between the two sides on the
years, Mr. Roble Elmi, CEO of Royal Food Industries, explains food sector is growing in terms of import and export, while underlining
that the company started its journey in trade as part of the existence of a great shortage in Africa in manufacturing which
Transco Group which holds different sectors such aviation, oil & gas, creates a high demand for UAE manufactured goods.
international commodity trading and services.
He, however, describes how the high cost of manufacturing and

GENERAL TRADING
“In reality the incorporation of Royal Food Industries as the logistics make it hard for UAE-based companies like Royal Food
manufacturing sector of of Transco was by accident,” says Mr. Elmi, Industries to compete with their counterparts in the Far East such as
“That accident resulted in the valued of US$ 65 million in 2011. And Malaysia, Indonesia, and China.
today Royal Food Industry has a market share in 27 countries, mainly
in Europe and Africa.” On Growth and Challenges
“We started with an experimental product which we found was in On the type of challenges the industry faces, the fact that there
high demand with a great shortage in the market,” he says, adding are many different suppliers in the UAE enables them to sustain
that when the company supplied that first product, a beverage, it was production, underlining that this was one of the main reasons the
soon followed by more beverages and subsequently a coffee line with company decided to set up its manufacturing in UAE.
different varieties. Over the last four years the company has developed
four different product lines: coffee, flavor enhancers, milk powder, and “Some of our chains are growing faster than others because of
baby food. high demand,” he says, explaining that they usually make extensive
feasibility studies on the demand of any product before launching it.
Mr. Elmi notes that the company’s strategy for expansion is to identify He adds, “This involves a lot travelling and engaging with end users
its target customers, through participating in exhibitions or direct which gives us a lot of learning on the ground to find out whether the
business-to-business approaches where it engages directly with said new line is viable and sustainable economically and commercially.”
customers.
He describes the cost of sales as the biggest challenge that the
“Our strategy in the beginning was to start with closer markets and manufacturing industry faces, saying: “The cost to produce an item
that was East Africa. We started with three countries and today we may sometimes make you uncompetitive and we try to mitigate this in
cover the entire east African market, Central and North Africa,” Mr. different ways including undertaking a robust marketing to show how
Elmi says, adding that 70% of the company’s export goes to East and
our product stands out and meets people’s different requirements.”
Central Africa, 10% to North Africa, 15% to the GCC, and 5% to the
European market.
He says that having a 70% market share in Africa taught them that
different factors drive customers’ demand for a product in addition to
Africa’s Demand for UAE Manufactured price and quality: “People need the product to be cheap and of good
Goods quality and this is the challenge. We address this through a strategy
of no compromise to quality and good packaging but also offering a
“One of the things that encouraged us to set up a manufacturing plant competitive price. Our competitive edge is our R&D work in which we
in the UAE is the nature of advanced logistics and the growing trade always try to innovate new products. This helps us to understand what
between the Gulf and Africa,” says Mr. Elmi, adding that as a hub for our customers want and not what we want to sell to them. And this
international business, the UAE put tremendous effort to promote its is true in the 27 countries with different profiles in which we operate.”
trade with Africa.
On what Africa should do to meet the rising demand for meat and
“I think the UAE has done enough to engage Africa and it is Africa’s other food products, Mr. Elmi explains how difficult it is for Africa to
turn to reciprocate this and engage the UAE and the Middle East in sustain any product because Africa demands low-cost and higher
general,” Mr. Elmi says, highlighting that each of the two parties has quality.

38 39
 “This is the challenge we face in Africa and we work every day to brand loyal customers all over the world,” explaining that these global
address it. But if you want to have something good, especially food, brands’ acceptance comes only after client companies meet their
you should also pay the right price. You cannot have both. This is quite standards.
a challenge for a company like ours with 70% of our sales in Africa,”
he says.
Africa’s Lucrative Agro-business and Dubai
On Market Prospects and Company’s Targets
Expo2020
Mr. Elmi explains that the premise for his company is to first understand
the complexity of each market it wants to penetrate: “This allows us On Africa’s participation in Dubai Expo 2020, Mr. Elmi expresses
to pick up the right distributer which is a difficult decision because it hope that Africa will understand the significance of Dubai 2020 and
involves launching a market campaign, looking at basic requirements, realize that the investment that the continent needs so badly can
giving free of cost products, and finally picking up the right choice in come through their engagement with investors in the region and
order to maximize the awareness for our product. We have to make around the world. He adds: “On agriculture, most European and Far
our strategic partners feel that they are part of us,” he says. East companies depend on African raw material. So anyone who
understands the future of agro-business should know that Africa is
On the company’s 2017-2018 targets and market prospects, Mr. Elmi the future.”
says: “Apart from adding six new products, we are also going to have
our first own building which shows how confident we are in the future “With a population of more than one billion, a very rich agricultural land,
of market, “adding that Royal Food Industries was introducing new and the unique opportunity of not only having raw material but also
products such as tea, evaporated milk, cream with different flavors, customers for processed products in the same place, Africa should be
canned beverages carbonated and otherwise, flavored coffee, and a magnet for investors,” Mr. Elmi says, underlining that the only thing
also a paint line. that Africa needs is good governance where investors feel their money
is secure and there is rule of law to protect foreign investors.
“Our target of customers in our next phase are mainly Emiratis where “So it is up to Africa to capitalize on this opportunity and decide how
we offer co-packing products for Nestlé or Unilever products. Our they want to market their industry and sell the continent’s attractions
2018 target is therefore to approach those multinationals who have in order to win investors in Dubai 2020,” he says.

“With a population of more than one billion, a very rich agricultural

land, and the unique opportunity of not only having raw material
but also customers for processed products in the same place,
Africa should be a magnet for investors. The only thing that Africa
needs is good governance where investors feel their money is
secure and there is rule of law to protect foreign investors.”

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