Nissan South Africa To Increase Production Capacity by 2014

With approval from its parent company, Nissan Motor Company Limited, Nissan South Africa (Nissan SA) is planning to increase its Rosslyn-based plant to 100,000 units a year.

The increase which is set to begin at the later part of 2014 will feature a rise in the company production of new pick-up generation from Nissan. The production capacity has already increased at the Rosslyn plant to 50,000 from its production capacity of 25,000 in 2008.

The commencement of Nissan SA production will create approximately 800 new jobs directly and about 4 000 more through the supply chain.

 According to Nissan SA Managing Director, Mike Whitfield, the introduction of the new investment will result in a new production platform at the plant with a total investment cost of more than 1billion rand ($121 million).
The automobile company is ramping up its production market to meet consumer’s need globally by using the Rosslyn plant in South Africa as a key manufacturing player especially in light of the growth opportunities in Africa.
Meanwhile, Whitfield noted that Africa is regarded as a huge opportunity by vehicle manufacturers not only because it had about 16 percent of the world’s population, but for its credibility in accounting for more than 1 percent of total industry new vehicle volumes.

“Nissan South Africa has demonstrated its competence in key deliverables — improvements in quality, cost and productivity — and we are confident in its capability to meet anticipated demand, and increased production is expected to during financial year 2014,” stated Whitfield.

He said that growth in vehicle sales is expected to come out of North Africa and South Africa.

Experts: Stakeholders Needs To Understand Business Realities In Africa

Sotunde Oluwabusayo

Despite the prediction that several African countries will experience positive turns in their Gross Domestic Product (GDP), experts assert that realities of doing business in Africa is now at a critical point with the need for support to boost continuous development.

Experts at the sixth KPMG’s Africa Conversations Series on transacting in Africa, were of the opinion that considerable focus on infrastructure upgrade, increase in Foreign Direct Investments (FDIs), improved banking supervision and more insurance policy uptakes; may increase  Nigeria, South Africa and other African countries GDP to $2.6 trillion by 2020. While noting that, historically, multi-nationals and larger listed African companies have conducted investment into and across Africa, especially from the South; Head of Transactions and Restructuring at KPMG, John Geel said, “We are now witnessing an increasing number of smaller companies undertaking investments due to improved growth opportunities and regulatory tax regimes. This means that companies are now seeking out the right entity to transact with, negotiate details of collaboration and sign legal contracts.”

He stated that the economic analysis group had noticed improvement on the continent’s banking sector with continued consolidation and expansion appetite.
Noting reports on a survey carried out by KPMG Africa in May 2012, Geel stated that of the fourteen countries surveyed in the report, life and short-term insurance markets were relatively mature in the southern region, with few obvious merger and acquisition opportunities.
He said that it is ultra competitive, well regulated and, in all likelihood, facing ongoing challenges regarding regulation such as IFRS Phase II, Treating Customers Fairly and others.

With this development, Partner and National Head of Insurance, Gerdus Dixon, posits that other African countries are presented with new untapped markets, massive potential customer populations and burgeoning economic growth.

He stated that “While Nigeria, Ghana and Angola’s growth rates are all in excess of this. In many ways, describing these African countries as the “new frontier” is also no longer accurate, as most of the big players are already out of the blocks, so to speak, and actively positioning themselves for an African play.”

Dixon however emphasised that individual African countries should be understood and assessed each on their own merits. The incredible diversity and subtle nuances are critical in unlocking the secrets to business success.

He asserted that “Africa’s gross domestic product is expected to reach $2.6 trillion by 2020, but expanding into African countries is not a short-term growth fix, it will take deep pockets and committed sustainable long-term business plans to develop the insurance market in these African countries – particularly the much vaunted retail or individual life insurance markets.”

He believes it is important for shareholders to understand the return profile of expanding into Africa.

“The underdeveloped formal economy and infrastructure will demand that innovative solutions need to be found with regard to strategy, product design and distribution. The barriers to entry are high, but Africa is simply too big and growing too fast for insurers to ignore,” Dixon said.


Story posted from Ventures Africa

Kenya’s Selection For IBM research Facility In Africa Raises Concern For Nigeria’s ICT Growth

 By Sotunde Oluwabusayo

 Nigeria may be falling behind in Africa’s ICT development race following Kenya’s choice as International Business Machines (IBMs) new facility domain – the first in Africa.

Justification for this trepidation arouse because despite the 168 million population and $270 billion economic factor working for Nigeria, the American ICT and software company bypassed it to launch its first facility in Africa with $34 billion economy Kenya, a country about the size of Nigeria’s commercial city, Lagos.
ICT development improves productivity growth and business performance. World Bank estimated that every 10 percent of incremental broadband penetration will result in a 1.38 percent Gross Domestic Product (GDP) growth rate.

Experts however argued that the reason for Kenya’s selection is not left to chance as the country has been investing massively in ICT development over the years following its quest to be Africa’s IT hub. Progress towards this achievement is coming to bear with the country’s establishment of  its own Silicon Valley, Konza, a 5,000-acre site which will eventually be a cluster of technology companies plus a university. Kenya is also a global leader in mobile money, with its  MPESA service.

Although Nigeria also declares the desire to follow in this step, with its credibility as having the largest number of internet users in Africa (according to International Telecommunications Union data), Services strategy manager for IBM, Osamuyi Stewart, said, “Kenya is very advanced – they were ready for this in terms of know-how.”

Business Day also quoted Nigerian developer at Digital Craft Studios, Francis Onwumere, to have said that, “Kenya’s tech scene did not just explode over-night, they had it coming…they invested in competence and they are reaping the benefits.”

Nigeria’s proposed Silicon Valley, Abuja Technology Village which was conceptualised in 2004 and expected to cost $400 million to create “Africa’s preferred technology research, incubation, development, and outsourcing destination,” is only 55 percent complete some eight years later.

Meanwhile, IBM announced last week that it will be collaborating with the Kenyan Ministry of Information, Communication and Technology (ICT) to open the first of its research labs in Africa. Each party will be contributing $10 million of funding over the next five years.

IBM president Ginni Rometty met with Kenyan President Mwai Kibaki to mark the announcement.
The ICT giant’s Kenyan laboratory will seek to develop technology-assisted solutions to the problems of Africa’s fast-growing cities.

The lab will explore three key research areas, including the next generation public sector, creating smarter cities with a focus on water and transportation and the development of human capacity.

 Posted from Ventures Africa.

Lonmin Mine crisis Continues As Company Ask Workers To resume Work

 
Following the showdown at the Lonmin PLC mine last week which killed about 34 mine workers, management of the shut down Marikana mine have ordered its employees to resume work.
The London-listed company said this is the last call to return to work; else workers may lose their jobs.

However, workers have declined this warning saying they will not go back unless their needs are met. The miners are demanding for more pay.

Miners request result to violence last Thursday between the Miners union and Police leading to the death of 34 people, 78 injured people and 259 people detained. Additional 10 people have been declared dead, which raised the number of death from the mayhem to 44.
Police had claimed the act as a result of self-defence while a judicial commission has been launched to look into the issue.

South Africa’s President, Jacob Zuma, have called for a seven day national mourning to the gruesome death while the nation’s flag will fly half-mast while an official day for nationwide memorial service will be held on Thursday.

The unrest began on the 3^rd of August, this year as some 3,000 workers walked off the job over pay in what management described as an illegal strike.

Those who tried to work Saturday were attacked, management and the National Union of Mineworkers said.

Barnard O. Mokwena, an executive vice president for Lonmin, said the company continued to meet with the police regarding the violence. "Until we know why 3,000 people are under this influence to kill ... people, it's hard for us to believe this is a genuine complaint about the rights of workers," Mokwena said

Meanwhile, Lonmin’s share has dropped since the crisis. 96 percent of all Lonmin's platinum production comes from the mine.

AP Report

While Friday's walkout appeared to be about wages, the ensuing violence has been fueled by the struggles between the dominant National Union of Mineworkers and the upstart Association of Mineworkers and Construction Union. Disputes between the two unions escalated into violence earlier this year at another mine.

Mining helped give birth to modern South Africa, as prospectors and later international companies rushed to areas around Johannesburg and elsewhere looking for gold, diamonds and other precious metals. Today, South Africa remains one of the world's dominant producers of platinum, gold and chromium.

But miners long have faced low salaries and poor working conditions. Apartheid kept black African workers from more lucrative jobs offered to whites. Though the nation became truly democratic in the 1990s, the salaries of black miners remain low.

As the protest continued Tuesday, a report released by an organization monitoring international mining corporations criticized Lonmin's operation at Marikana. The Bench Marks Foundation said Lonmin workers often live in deteriorating shacks without electricity, as workers' children suffer from chronic illnesses brought on by broken pipes spilling raw sewage.

Meanwhile, prostitution, alcoholism and other problems run rampant in the mining communities.

Mokwena, the Lonmin executive vice president, declined to comment about the report's allegations. However, he criticized the timing of the report's release, saying: "It propels more violence unnecessarily."