Gauteng Finance MEC Barbara Creecy on Tuesday revealed how Africa&#8217;s wealthiest province will fund the vision <a href="http://cnbc.africa/news/southern-africa/2018/02/26/africas-richest-province-state-province-address-gauteng-premier/">Premier David Makhura outlined for Gauteng a week ago</a>.
Creecy tabled a R121.2 billion ($10bn) budget for the 2018/19 financial year in the Gauteng Provincial Legislature. The budget is up R9.1 billion, or 8% on the previous year, a significant increase in tough economic times. The province plans to raise R6 billion of its own revenue this year to compensate for cuts to it equitable share and alleviate spending pressures particularly in the social delivery departments” said the MEC
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MEC Creecy says the budget sets out how the province will fund its commitment to equity and social justice. She adds: it  outlines how the Gauteng government will use its massive procurement spend to improve public facilities, transform the economy and create work.
The biggest beneficiaries of the budget (see table 1) are:
<ul>
<li>The Departments of Health and Education. Its budget increases by R4.4 billion and Education by R3.4. billion.</li>
<li>The Department of Roads and Transport whose budget increases by R700 million this year. In 2018, this Department will begin planning Gauteng’s first new highway since the 1970s, namely the PWV 15.</li>
</ul>
Overall R31.8 billion has been set aside for infrastructure programmes over the next three years which include building new schools, rehabilitating health facilities, upgrading roads, renovating hostels to become family units and building houses and serviced stands.
TABLE 1: 2018 MTEF BUDGET ALLOCATIONS
<table width="604">
<tbody>
<tr>
<td width="268"></td>
<td colspan="3" width="336">Medium-term estimates</td>
</tr>
<tr>
<td width="268">R thousand </td>
<td width="111">2018/19</td>
<td width="103">2019/20</td>
<td width="123">2020/21</td>
</tr>
<tr>
<td width="268">Office of the Premier</td>
<td width="111">  702 694</td>
<td width="103">  695 547</td>
<td width="123">  735 712</td>
</tr>
<tr>
<td width="268">Gauteng Provincial Legislature</td>
<td width="111">  715 824</td>
<td width="103">  761 430</td>
<td width="123">  806 130</td>
</tr>
<tr>
<td width="268">Economic Development</td>
<td width="111"> 1 510 450</td>
<td width="103"> 1 587 355</td>
<td width="123"> 1 676 058</td>
</tr>
<tr>
<td width="268">Health</td>
<td width="111"> 46 429 326</td>
<td width="103"> 49 031 984</td>
<td width="123"> 52 415 712</td>
</tr>
<tr>
<td width="268">Education</td>
<td width="111"> 45 220 540</td>
<td width="103"> 47 780 764</td>
<td width="123"> 50 741 196</td>
</tr>
<tr>
<td width="268">Social Development</td>
<td width="111"> 4 983 495</td>
<td width="103"> 5 293 915</td>
<td width="123"> 5 599 412</td>
</tr>
<tr>
<td width="268">Cooperative Governance and Traditional Affairs</td>
<td width="111">  468 235</td>
<td width="103">  496 588</td>
<td width="123">  527 317</td>
</tr>
<tr>
<td width="268">Human Settlements</td>
<td width="111"> 5 888 425</td>
<td width="103"> 6 117 655</td>
<td width="123"> 6 534 918</td>
</tr>
<tr>
<td width="268">Roads and Transport</td>
<td width="111"> 7 713 818</td>
<td width="103"> 8 269 666</td>
<td width="123"> 7 954 125</td>
</tr>
<tr>
<td width="268">Community Safety</td>
<td width="111">  719 495</td>
<td width="103">  759 694</td>
<td width="123">  805 786</td>
</tr>
<tr>
<td width="268">Agriculture and Rural Development</td>
<td width="111">  957 000</td>
<td width="103"> 1 010 840</td>
<td width="123"> 1 036 994</td>
</tr>
<tr>
<td width="268">Sports, Arts, Culture and Recreation</td>
<td width="111">  942 652</td>
<td width="103">  989 706</td>
<td width="123"> 1 079 675</td>
</tr>
<tr>
<td width="268">e-Government</td>
<td width="111"> 1 273 826</td>
<td width="103"> 1 342 611</td>
<td width="123"> 1 421 333</td>
</tr>
<tr>
<td width="268">Gauteng Provincial Treasury</td>
<td width="111">  796 413</td>
<td width="103">  831 470</td>
<td width="123">  882 786</td>
</tr>
<tr>
<td width="268">Infrastructure Development</td>
<td width="111"> 3 036 964</td>
<td width="103"> 3 122 694</td>
<td width="123"> 3 261 766</td>
</tr>
<tr>
<td width="268">Total provincial estimates by Vote</td>
<td width="111"> 121 359 156</td>
<td width="103"> 128 091 920</td>
<td width="123"> 135 478 920</td>
</tr>
</tbody>
</table>
&nbsp;
“The Gauteng Government’s R42.2 billion infrastructure spend has made a major contribution to stimulating economic activity, creating employment and raising living standards in communities across our province over the last four years” said MEC Creecy
The MEC indicated that the province’s research shows that this spend contributed R26 billion to economic activity in Gauteng, increase household income by R15 billion and created or sustained 95 thousand direct and 194 thousand indirect or induced jobs over the past four years.
The MEC said that the Gauteng Provincial Government is proud of its track record in using government’s massive procurement spend to drive meaningful transformation, empowerment, job creation and economic inclusion in the mainstream economy.
“Over the last four years R57.7 billion has been spent on procuring goods and services from 12 041 firms owned by historically disadvantaged individuals. Included in this overall figure are 7488 companies owned by women, and 5539 companies owned by youth and 2145 companies owned by people living with disabilities,” MEC Creecy said.
The MEC noted that in these times of rising direct and indirect taxes, citizens have a right to know that their taxes are put to the best possible use, and that this government is not squandering them through poor financial management or ill-conceived programmes and projects.
“All Gauteng Departments and Municipalities have worked hard to ensure better financial management and greater public accountability in the use of public funds. All provincial departments and entities and all Municipalities can now boast unqualified audits with two thirds of provincial Departments getting clean audits,” said MEC Creecy.
The MEC said that the Open Tender procurement process remains Gauteng&#8217;s flagship programme to ensure systematic elimination of irregular expenditure. To date 75 projects have now progressed successfully through the system. In the coming year, all new departmental tenders will be publicly adjudicated.

How Africa’s richest province – Gauteng plans to fund its new dawn

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The content below was supplied by Standard Bank<a href="https://simplebooklet.com/publish.php?wpKey=zgomgfSUzGRbYSFc7NXVRd&amp;source=forum" target="_blank" rel="noopener"> 
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How three Kenyan social entrepreneurs turned the silkworm into a business

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This content was supplied to CNBC Africa by Standard Bank  
Everything Begins With Water
Water, the single greatest power to drive industrialisation, health and gender equality across the continent.
Water relates to all aspects of human development. 
663 million people in the world live without clean water. 
1 in 3 people don’t have a decent toilet. 
1 in 9 don’t have clean water close to home. 
Clean and safe water is essential to healthy living. 
Regardless of where you live
In Africa 
Water is a challenge.
Each part of the continent seems to face its own challenges associated with the water crisis, and the situation is far from ideal for anyone.
Rural communities 
The rural parts of Africa are probably the most seriously affected by a lack of clean drinking water. In these parts of the continent, people must walk miles every day to find any water at all, and the water they do find is usually packed with contaminants and pollution.
These communities are often hotbeds of disease because there is no sanitary way to help cure people who fall ill.
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They often don’t have access to toilets or any way to dispose of waste, so as one person becomes sick with diarrhoea it quickly spreads to the others in the community, all as a result of bad water.
Urban areas 
Many urban areas still don’t have dedicated methods of cleaning up the water supply before it is used by the population.
The lack of plumbing or waste removal option causes bacteria, parasites and other contaminants to build of quickly and damage the water supply.
Unfortunately, water strain is a big issue in these places, as massive populations place high demands on surface water sources that are slowly dwindling.
Agriculture 
Agriculture puts a huge strain on the water supply while simultaneously causing it to be even more polluted than it ordinarily would be.
The agricultural sector uses surface water much more often than ground water. This practice is contributing to the drying up of large bodies of water and rivers across the continent.
Wetlands 
From freshwater forests to saline lakes and massive floodplains, Africa’s wetlands are among the most biologically diverse ecosystems in the world.
They perform important ecological functions such as filtering water and improving air quality.
Rapid urbanisation, pollution, draining for agriculture, as well as challenges posed by climate change are threatening wetlands across the continent.
There are other areas that feel the strain of the water crisis in Africa, and it’s safe to assume that everyone and everywhere is affected by it in some way.
For the first time, a major international city will likely run out of water. 
‘Day zero’ – the day when the taps run dry.
Despite the depth and the breadth of the challenges at hand, solutions are within reach.
Innovation, technology and training are an essential part of creating sustainable solutions.
Many organisations are building sustainable, community-owned water projects to help improve the water situation in Africa.
Communities are working together to solve their water problems:
Community managed latrines 
Gravity-fed Schemes 
Hand dug wells 
Rehabbed wells 
Bore-hole wells 
Solar disinfection systems 
Hand pumps 
household sanitation 
Spring water protection 
Rain water harvesting 
Sanitation and hygiene practices 
Urban pit waste management 
Wastewater treatment 
Sand dams 
Fog harvesting 
Portable water purification
The Hippo Water Roller was developed by two South Africans, Pettie Petzer and Johan Jonker, in response to the daily struggle of rural women and children across Africa to access safe, drinkable water.
Mark Algra of Cape Town, created Aquatrap to save water, by using recycled tyres. Algra has been implementing his design at local schools.
He assists in educating children on how to save water, by providing with knowledge that they can take home and share with their families and communities.
The blend of solutions can balance competing demands on the finite resource and help to ensure that Africa is able to meet its water needs both today and in the future.
Water, the single greatest power to drive industrialisation, health and education across the continent.
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Africa has a water crisis but these innovations could fix it

This content was supplied to CNBC Africa by Chivas 
Social Entrepreneur, Khethi Ngwenya from Soweto knew from a young age of 12 that he wanted to go into business and make a positive contribution in his community. Subsequently this led to Ngwenya’s business idea when he created SchoolMedia, a platform that has opened up schools as an avenue for advertising for brands seeking to engage with the learner target audience.
His business was born out of an idea to keep learners in schools informed and engaged about brands that spoke to them, about them. Ngwenya soon realised that there were no organisations that directly marketed to the youth in a manner that resonated with them, this helped him carve his value proposition as a business.
Chivas, Win the Right Way, season 2 presenter – Gugulethu Cele sat to discuss some of Ngwenya’s entrepreneurial achievements over a glass of Chivas Regal 12-Year-Old Whiskey.
It wasn’t always smooth sailing for the young entrepreneur as he had to learn that impact is more important than profit and admits that an in-depth understanding of the market one operates in, is never a bad idea to invest time and resources in. Part of his journey to be a social entrepreneur involved being honest with himself and devoting his time to align with key individuals that would assist him in driving business growth.
Ngwenya takes note of the importance of building successful businesses and still managing to improve communities through his business solutions, this innate attainment of success to lift others captures the epitome of Chivas Regal Win the Right Way. “SchoolMedia has given us access to 9000 schools across the country that we’ve built strong relationships with and through various campaigns we have managed to help raise funds and invest back into the schools we operate in” shares Ngwenya.
Ngwenya further mentions the business has taken a strong interest in ploughing back especially through sustainability projects such as planting trees, purchasing much needed sports infrastructure and maintenance equipment, which is dire need for many schools across the country.
“Though it’s still a long journey to travel to achieve our business goals, this year, we are excited about officially launching our latest innovation – the Digital Communicator. This solution will enable us to maximise on the six million audiences we reach with even more advertising opportunities for youth brands.”
Having achieved so much at a young age, the 27-year-old entrepreneur cannot ignore the role that has been played by his family. They motivated him to grab every opportunity with both hands, run with his humility and keep grounded by his faith.
Ngwenya echoes the Chivas Regal’s principle of shared success and believes that through sharing experiences and expertise, entrepreneurs can learn from one another and avoid making the same mistakes in future.
Chivas, WinTheRightWay season 2 is a TV series that features Africa’s most inspiring social entrepreneurs who run their businesses based on profit with purpose. These entrepreneurs use their shared success to inspire other African entrepreneurs to be part of this ever-growing movement.
Chivas, Win the Right Way airs on CNBC Africa and on Dstv, channel 410. The next episode will be at 21h15 CAT, 22h00 WAT and 00h00 EAT.

Khethi Ngwenya: A social entrepreneur who learnt that impact is more important than profit

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This content was supplied to CNBC Africa by Standard Bank 
We live in exciting times where our daily lives are dominated by innovation. The education landscape is also gradually changing as new inventions and new ways of teaching become the norm. It’s worth noting that innovation does not only mean technology, but it encompasses any creative, new way of doing things. If it improves learning, processes and systems, or solves a real problem, then it is innovation.
We want to highlight some of the ways in which creativity has been applied to solve some of these plaguing educational issues, across the African continent. They include:
<ul>
<li>High and unaffordable fees.</li>
<li>Lack of access to learning material for pupils.</li>
</ul>
MATHS MEETS HIP-HOP
One of the biggest flaws in the education system is the assumption that all children learn in the same way. A single, age-old learning method of sitting behind a desk and absorbing facts and numbers is still used across the world. While this technique works for some learners, it does a disservice to others, who are left feeling academically inadequate.
A maths teacher in Cape Town is turning the traditional teaching method on its head.  He is using rap music to help learners remember their multiplication tables. Kurt Minnaar, a former hip-hop dancer and choreographer, has creatively come up with a system of turning maths concepts and numbers into hip-hop lyrics – a language that his grade 8 learners understand very well.
“There are four types of learning methodologies &#8211; kinaesthetic, visual, audible and the traditional reading and writing. Kinaesthetic learning is when pupils learn through movement; visual through sight; audible through what they hear and the traditional reading and writing method is when pupils are more independent and able to learn in the traditional sense,” the Cape Town teacher <a href="http://www.parent24.com/Learn/High-school/teachers-who-have-the-most-creative-way-of-teaching-20161122">explains</a>. “When you fuse creativity into lessons, you cater to more pupils, and more will understand because now you&#8217;re speaking their language. Whereas if I just &#8216;chalk and talk&#8217; and stand there in front of a class, it predominantly only caters to one type of pupil, who are also in the minority.”
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Minnaar used to struggle with maths in school. At the time, he thought he was incapable of grasping the complexities of the subject but later realised he needed a different way of learning. He says his students are incessantly in a cheerful mood as they come to class eager to break it down to his rhymes. The pupils’ marks have also improved, says Minnaar.
MOBILE SCHOOLS 
In some parts of Africa, the tradition of nomadic pastoralism is still alive. People move from one location to another in search of grazing lands for their livestock. For children who grow up in such families, the on-the-go lifestyle proves to be a barrier to education as they struggle to attend school regularly.
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Fortunately, for some nomadic school children in Kenya, access to education has become easier as they can now move around with their school! In 2010, the Kenyan government joined forces with UNICEF to launch mobile schools which brought education to learners whose families had to relocate frequently in order to survive. As part of the initiative, teachers now live and travel with the nomadic groups, setting up tents and temporary schools.
The mobile schools normally plan their calendar around rainfall patterns. Most of the learning takes place during the rainy seasons when children do not have a lot of household chores.
CROWDFUNDING FEES WITH FEENIX
 The #FeesMustFall protests in South Africa shone a glaring spotlight on the issue of the rising costs of education.  Many students are struggling to pay for their tertiary education. In an effort to help students, who cannot afford high university fees, crowdfunding initiatives have mushroomed. <a href="https://www.feenix.org/how-it-works">Feenix.org</a> is an online platform which allows donors to donate money to students registered on the site.
1068 Live student profiles have been uploaded onto the platform which features their biographies and fees statements.  Once a profile has been verified it, and the fees needed, becomes visible to anyone who visits the site. With the minimum donation set at R100 (US $7.5) anyone is welcome to make a donation.  85 Students have been fully funded since this initiative started.
Up to date R4.3 million has been raised by 744 funders (of which consists both individual and business funding).  Donors are also required to upload their information and go through a verification process.
E-LEARNING IS GROWING
Technology is transforming education in Africa at an unprecedented rate. With the rapid growth of mobile learning, the e-learning market is set to be worth well over US $530 million by 2018. E-learning is not only helping students learn better, but it is also giving underprivileged learners inexpensive access to educational content.
In Kenya, adoption of e-learning is happening at an impressive rate.  Schools in low-income areas are using technology to boost their learning. In Nairobi’s Kawangware area, students are using eLimu, an app for primary school learners to learn and revise for their exams. The platform contains educational content in the form of locally produced and culturally relevant videos, animations, songs, music, games and quizzes to improve learning.
One of the other successful e-learning platforms in Kenya is Kytabu, a textbook subscription platform that provides low-cost digitalised books to millions of students. Kytabu allows users to rent textbooks, chapters, and pages on a low-cost Android app and pay with M-Pesa, the successful East African mobile money transfer service.
LEARNING THROUGH ROBOTICS
Ghanaian company, Metro Institute of Innovation and Technology (MIT), offers school children training in robotics and mobile app development.  Their aim is to promote science and entrepreneurship in this way. The company applies innovative ways to introduce technology to learners and help enhance their learning.
Offering lessons to children of all ages, MIT established the National Robotics Summer School.  Attending this school, learners can take their science skills to the next level by programming robots and designing games. “We’re trying to use robotics as a tool to inspire the study of science and maths, to relate classroom theories using robots so that if we’re talking about a scientific principle, they [the learners] shouldn’t just memorise the facts,” <a href="http://www.aljazeera.com/programmes/innovate-africa/2014/11/innovate-africa-tech-teaching-2014111712128255343.html">explains</a> Ben Nortey, Founder and CEO of MIT.
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How innovation is turning education on its head in Africa   

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This content was supplied to CNBC Africa by Standard Bank
Rural areas are poised to be a significant economic driver in developing countries. According to the latest 2017 State of Food and Agriculture <a href="http://www.fao.org/3/a-I7658e.pdf">report</a> by the UN’s Food and Agriculture Organisation (FAO), the key to achieving the 2030 Agenda for Sustainable Development are transforming rural communities and promoting agriculture. “Since the 1990s, rural transformations in many countries have led to an increase of more than 750 million in the number of rural people living above the poverty line,” says FAO. “To achieve the same results in the countries that have been left behind, the report outlines a strategy that would leverage the enormous untapped potential of food systems to drive agro-industrial development, boost small-scale farmers’ productivity and incomes, and create off-farm employment in expanding segments of food supply and value chains.”
While the prospects of lifting rural communities out of poverty look good, progress is slowed down by rapid population growth. According to the report, between 2015 and 2030, the combined population of Africa and Asia is expected to rise from 5.6 billion to more than 6.6 billion. It further states that in sub-Saharan Africa, the number of people aged 15 – 24 years is projected to increase by more than 90 million by 2030, with the highest rise in rural areas. The large increases in youth population will create a challenge of unemployment in the decades to come. There is low productivity in the industrial sector and agriculture, which means new job seekers will struggle to find employment. As a result, those who migrate from rural areas to the cities will likely add to the growing numbers of the urban poor.
According to the report, rural communities are therefore likely to escape poverty if they remain in rural areas and not move to urban areas. The solution is to drive investment to rural areas and create policies that support small-scale farmers. Currently, smallholder food producers have little to no access to profitable markets and value chains, which are dominated by large producers and retailers.
To ensure small-scale farmers meet the food demand both in urban and rural areas, policies need to be introduced that “reduce the barriers limiting their access to inputs; foster the adoption of environmentally sustainable approaches and technologies; increase access to credit and markets; facilitate farm mechanisation; revitalize agricultural extension systems; strengthen land tenure rights; ensure equity in supply contracts; and strengthen small-scale producer organisations.”
While industrial development in sub-Saharan Africa has been slower than other regions, rural transformations can be done by leveraging food systems to meet the growing demand for food in urban areas. The aim is to diversify food systems and create new economic opportunities in off-farm, agriculture-related activities such as trading, processing, packaging, distribution, and storage. The increasing demand coming from urban food markets is expected to be a major driver behind rural transformations.
However, while the growing urban food demand creates a “golden opportunity” for agriculture, it may also present challenges for smallholder farmers. The extension of small pieces of farmland into larger commercial farms may lead to the exclusion of millions of smallholder farmers from taking advantage of emerging opportunities. To ensure this transformation benefits everyone, especially the most vulnerable, policy makers and governments need to understand the socio-economic links between cities, towns and rural areas and how they influence the food system.
<blockquote>“Small farmers may need support if they are to benefit fully from emerging opportunities. Their lack of access to finance, markets and transport, as well as the barriers created by standards on quality, traceability and certification, often make their participation in integrated value chains very difficult. In many countries, the ongoing fragmentation of farmland may further hinder smallholder farmers’ capacity to adopt new technologies.” &#8211; FAO.</blockquote>
As urbanisation continues to sweep across the continent, rural areas and small cities hold the key to economic growth. This is the main takeaway to policymakers, who possess the power to bring the change those living in rural areas need.
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This is why Africa needs to look to its rural areas

This content was supplied to CNBC Africa by Absa Corporate and Investment Banking 
Johannesburg, 5 February 2018 – Concern about the mining regulatory environment, a volatile currency and labour productivity issues have created an uncertain market for foreign direct investment and mergers and acquisitions in the South African mining sector, says Craig Brewer, Co-Head of Banking Africa at Absa Corporate and Investment Banking (CIB).
He says this has been worsened by political uncertainty, the two-year impasse on the Mining Charter which is currently under legal review, corruption headlines as well as credit downgrades. As a result, a perception has been created that there are increased risks of doing business in South Africa.
But this may be changing. The embattled mining industry is seen as the winner from the new leadership of the ANC. Initial views is that the new leadership will change the current confrontational relationship between Government and industry.
Brewer says this positive change is happening at a time when global miners are finding more attractive investment destinations in other countries in Africa, other than South Africa.  There is clear investment globally in mining and South Africa faces tough competition for investment and needs to radically change the way it approaches investors and this new dawn may well be the catalyst.
In recent years, Brewer says South Africa has failed to attract significant direct foreign investment in mining due to slow economic growth, policy uncertainty and higher labour costs. In 2017, the country recorded FDI inflows of over a $1 billion less than the average annual inflows ten years ago.
READ: <a href="http://cnbc.africa/news/southern-africa/2018/02/06/miningindaba2018-investors-confidence-returning-absa-corporate-investment-banking/">#MiningIndaba2018: Investors confidence is returning – Absa Corporate and Investment Banking</a>
“There is a clear need for a change in how South Africa markets itself as an investment destination facilitating inward investment. All players must engage to unlock the industry. Partnerships between mining companies, government and labour are key,” he says
Brewer says there also needs to be a refreshed approach to empowerment, a focus on retaining employment, and ensuring a fair distribution of the country’s resource wealth to all the people of South Africa, rectifying the legacy of apartheid.
“South Africa needs this investment having missed recent commodity upswings because of low investment. While mining is 8% of GDP on a direct basis, it can account for almost double that on an indirect basis and importantly, represents over 40% of exports which bring in needed foreign currency,” Brewer says.
“Mining requires significant investment with long lead times and with environmental issues will become more costly. At the same time, the global move in mining is to automation which in itself requires significant up from investment, prior to the actual returns of mechanization coming through,” he says.
With the correct strategy and a transparent mining regulatory platform, there will then be positive balance between investment into South Africa and those South African mining companies venturing offshore
“We have seen South African mining groups going offshore very successfully – the recent poster child is Sibanye-Stillwater which has been bold in its offshore ambitions. Investors will look forward to the post-merger management in bedding down these Platinum Group Minerals (PGM) acquisitions including potentially Lonmin with the expected release of synergies and a more optimally structured western limb of the platinum belt,” Brewer says.
“Others mining companies are looking at investment closer to home and just across the border. With the positive political changes in Zimbabwe, its significant resources are again being looked at. Tharisa, the platinum and chrome mining company, has publicly stated its intentions to look at Zimbabwe and has been meeting with the Zimbabwean Government,” he says. Pan Africa Resources is also looking at potentially new geographies including Zimbabwe and the DRC so the appetite for ongoing external M&amp;A continues.
Brewer says he sees increased interest in lithium and cobalt. Brewer says technological innovations, such as the electric vehicle, will materially increase the demand for battery metals. This could benefit countries such as Zimbabwe which has one of the larger deposits of lithium a key battery component, as well as the Democratic Republic of Congo, which has huge untapped cobalt reserves. This interest in lithium is such that there are now traded ETF’s focused just on lithium exposure.
Increased demand for energy will also benefit uranium producing countries, while interest in gold, will continue to be influenced by the movement of the US dollar, says Brewer. “The US dollar is a major factor with its inverse value relationship with gold, but a potential rate cycle increases in the US may negate much of the recent positive gold momentum” he says.
“Down side risk in commodities is always present” Brewer cautions,  in that possible slower than anticipated demand from China or an easing of production restrictions on China’s heavy industries will lower commodity demand from China will negatively affect iron ore prices and potentially lead, nickel and zinc, which in turn directly affects the Africa mining economy,” he says.
Commodities and mining will never remain constant and there will always be challenges and substantial opportunities. In South Africa, this has never been truer. “With the current change in sentiment, South Africa could once again be one of the leading commodity based countries in Africa,” Brewer says.
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#MiningIndaba2018: SA’s mining industry is at a turning point, this is what needs to change

This content was supplied to CNBC Africa by Absa Corporate and Investment Banking
Johannesburg, 5 February 2018 – For the first time in more than a year, there is cautious optimism that investor confidence is returning to the mining sector, giving hope for renewed investment and exploration, says Shirley Webber, the Managing Principal, Coverage Head Natural Resources at Absa Corporate and Investment Banking (CIB).
She attributes this to a combination of recovering mineral output and commodity prices and that a more positive global economic outlook will benefit the mining sector.
Latest statistics from StatsSA mining production in South Africa for November 2017 increased by 6,5% year-on-year, with the largest contributors being PGMs (12,3% and contributing 2,8 percentage points); iron ore (20,7% and contributing 2,5 percentage points); and coal (8,5% and contributing 2,1 percentage points).
Webber says this encouraging trend could continue in 2018 as mining companies consider making new investment, while others may seek funding to expand existing operations. Investor focus remains on South Africa and selected countries in sub-Saharan Africa, with miners interested in raising project finance for expansion. An important aspect is the stability of the regulatory framework in the various African countries.
She says the previous years was particularly tough for the mining industry as a result of depressed commodity prices and a reduction of demand in certain commodities.
However, she says there was a positive benefit to miners from the lull inactivity, as it allowed companies to restructure their business and operations, focusing particularly on their cost base in order to be efficient. Webber says a leaner and efficient mining business now stands to benefit from a recovery in the industry.
Tawanda Madondo an Absa CIB Coverage Banker added on to say clients are continuously considering cost efficiency strategies such as reducing their electricity costs through renewable technologies and looking to mechanise their operations. “We are beginning to see an improvement in dollar commodity prices, and we are cautiously optimistic that this trend will be maintained in the medium term,” he says.
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#MiningIndaba2018: Investors confidence is returning – Absa Corporate and Investment Banking

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Dr Ola Orekunrin, Founder of Flying Doctors Nigeria Air Ambulance, formed the regional air ambulance service after tragedy struck, she wanted to make sure that no one dies because they are at the wrong place at the wrong time. Below is the story of her journey to forming an air ambulance that operates in over ten countries across West and Central Africa.
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Flying Doctors Nigeria: An idea conceived out of tragedy

When Eugene Mbugua accidentally found himself in the entertainment industry, little did he know it would end up being his future career path and his entry into entrepreneurship.
Mbugua, an ambitious 27-year old Kenyan entrepreneur, followed his instincts and created Young Rich Television Limited which produces cutting edge TV shows for Kenya and other African regions. It is through his TV shows that he hopes to create a positive image and perception of his home country and the African continent.
The burning desire to grow in entrepreneurship came as he soon realised the gap in the TV production industry to tell inspirational and positive stories through documentaries such as Get in the Kitchen, Young Rich and Stori Yangu.
It is for this reason, that Chivas, Win the Right Way, season 2 presenter – Gugulethu Cele, met with Eugene over a glass of Chivas Regal Extra to discuss some his entrepreneurial accomplishments.
With a vision to create wealth and empower his local community, Mbugua strongly believes it can only be through steady growth and stability. While focus can’t solely be on income when it comes to business, Mbugua admits that there must be a balance between income and impact to society. Mbugua believes that the key drivers of his business, the employees and clients, must share in the success of the company. 
Mbugua didn’t simply reach lofty heights without the assistance of some crucial individuals guiding him along the way. “I owe my growth and learnings from Kenya’s leading entrepreneurs who taught me how to achieve success from steady growth to a great work-life balance and constantly delivering consistent work, of which I continue to strive to do,” shares the candid entrepreneur. This vital balancing act in business, is something Chivas Regal has aptly described as ‘Winning the Right Way’.
With Young Rich Television Limited currently consisting of 7 branches, the company plans to continue breaking new grounds with more productions and a projected growth of employing up to 300 people within the next 3 to 5 years.
Like any other business journey in its infancy, challenges are to be expected and Mbugua’s journey has been no different. As Kenya’s newly-found entrepreneur’s production company, the business has had its fair share of trials and tribulations and has managed to rise from its days of cash flow challenges and requiring assistance from financial institutions. 
The absolute drive to achieve, even during challenges is what exemplifies the attainment of success that lifts others and captures the epitome of Chivas Regal Win the Right Way. “We’ve had to put a lot into mitigating the risks by being very strategic in preserving money as well as partnering with banks to seal holes when they may arise,” shares Mbugua.
In the same breath, Mbugua, continues to dream big as he has ventured into other forms of business. “I’ve realised that innovation is the key differentiator between sustainable companies and those that go under.” Mbugua created a publishing business called My Yearbook Kenya Ltd, which publishes yearbooks for schools, companies and governments. 
It seems there’s no stopping Mbugua from climbing into new territories as the entrepreneur also ventured into opening a chain of cocktail bars called Number 7 with the first branch being launched in Nairobi and continuing to employ more people. 
Mbugua echoes the essential principle of Everyone winning, when you Win the Right Way as he attributes his success to sheer hard work, a reading culture and believing in shared growth. “I am a strong believer in shared success. Any business that I get into, I strive to ensure that I win, my investors win, our employees win and most importantly our customers do too.” 
Chivas, WinTheRightWay season 2 is a television series on CNBC Africa that follows on the success of the first season in featuring Africa’s most inspiring social entrepreneurs who run their businesses based on profit with purpose. These entrepreneurs use their shared success to inspire other African entrepreneurs to be part of this ever-growing movement. 
Chivas, Win the Right Way continues to profile African social entrepreneurs and airs on CNBC Africa and on Dstv on channel 410. The next episode of season 2 will be at 21h15 CAT, 22h00 WAT and 00h00 EAT.

Kenyan Entrepreneur Eugene Mbugua had a vision to create wealth and empower his local community, now he is building a business empire

Artificial intelligence (AI) is neither friend nor foe &#8211; It’s both!
This was the feedback received following a high level panel discussion held during the Science Forum South Africa (#SFSA2017) in Tshwane, were youth members from various African states exchanged their views and ideals as to how best they, business and government need to approach the digital age.
“There is a paralysing fear that jobs will be taken away and humans will become redundant and lazy”, said Barbara Glover of NEPAD Planning and Coordinating Agency.
Glover added that these fears need to be allayed by understanding how best AI can unlock enhanced potential for humans to deploy their skills in new ways.
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Ama Duncan of Corporate Training Solutions in Ghana agreed. “We need to educate our labour force in a different way that will allow them to grow and develop new talents and abilities to instruct AI and be the creators of the revolution.”
Education has been highlighted as a panacea to incorporate the culture of working with robotics, especially for a future job market which may see its employees changing careers at least three times.
However challenges remain as not all African’s are exposed to the same level of technology. Those who are often left behind in the skills gap and lack exposure to various technologies, are those who live in rural areas.
“Many children living in the outskirts of urban areas, only have cell phones and TV’s as their main touch points of technology and innovation we need government to investment in adequate infrastructure to ensure that members of the rural community can also compete with their urban counterparts,” said Dr Zamantungwa Khumalo of The Future Leader Youth Development Programme.
Digitalisation is not just an African problem; Admiral Joe Sestak of First Global believes that whilst developed economies have made some strides in incorporating technology in their day to day lives, emerging and frontier markets like those in Africa possess the potential to advance further than there western peers.
“There is an innate ability for Africans to innovate as they are not restricted by barometers regarding ‘how things should be done’. With the right education and development of skills African youth can be the pioneers of the digital revolution,” said Sestak.
These bold commitments were shared at the SFSA where several other government leaders were present. Deputy President of South Africa, Cyril Ramaphosa together with representatives from the African Union, The Department of Science and Technology , NEPAD Planning and Coordinating Agency, as well as Ministers from Angola, Botswana, the Democratic Republic of Congo, Jamaica, Namibia, Uganda and Swaziland, once more cemented their commitment to strengthen Pan-African cooperation in science and technology to advance regional integration, peace, social cohesion, inclusive development and global partnerships.
The next industrial revolution will certainly be an inclusive partnership that will see leaders of the science community encouraging young people to be more empowered to participate.

Artificial intelligence is neither friend nor foe for Africa- It’s both!

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This content was supplied to CNBC Africa by Standard Bank
The past year has been one of economic progress for Nigeria, with Africa’s largest economy managing to crawl back into growth territory in the second quarter of 2017.
The Nigerian government has realised that it needs to make the country as attractive and lucrative as possible for offshore investors to bring their capital, skills and business trade into the country. One way is to provide tax holidays to “pioneer companies,” who are engaged in the production of export goods, establishing new industries, or expanding production in vital sectors of the economy.
Pioneer companies that are eligible under the Industrial Development (Income Tax Relief) Act can enjoy an income &#8220;tax holiday&#8221; for a period of up to five years. In addition, pioneer companies enjoy other benefits such as the exemption from withholding tax on dividends paid out of pioneer profits.
Here’s a look at investment opportunities to consider: 
 
MANUFACTURING 
Nigeria’s population is an estimated 186 million people. This population suggests a massive potential workforce as well as a consumer base. For a manufacturer this is an ideal scenario, not only do you have potential customers, but you also have potential employees. The Nigerian government is eager to expand the manufacturing capability in the country, and to that end they are offering incentives for manufacturers that are able to locally source their raw materials, for example agro-allied manufacturers processing foodstuffs such as fruit juices and vegetable oils.
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Any manufacturing industry that provides multiplier effect solutions for the economy is also looked upon favourably. An example of this would be machine tools, flat sheet metal, and spare parts manufacturing. Finally, any investment in research institutes, especially those that focus on adaptive research and commercialisation of local inventions, is looked upon favourably by the Nigerian government.
INFORMATION AND COMMUNICATION TECHNOLOGY SERVICES 
Nigeria is one of the fastest growing internet users in the world. According to Statista, a global statistics company, there are approximately 76.2 million Nigerian internet users as of 2017. This is an increase of nearly 50 percent from the 2013 figure of 51.8 million. There are millions of Nigerians who are interested in involving themselves in Information Communications and Technology Services (ICTS). This new economy does not require someone to be in a specific location to provide the service needed, rather they can be located anywhere in the world. An organization that has seen the potential in Nigeria is US-based software trainer Andela. The company offers learning programmes for young adults who are wanting to become computer programmers. The learning programme is a 2-year practical course where the learner interacts with companies around the world and assists them in building programmes, websites, and mobile applications. After the conclusion of the programme the learner is able to provide remote programming support to companies that they have built a relationship with. By tapping into the under developed skills of the Nigerian youth, there are countless opportunities for new economy companies to develop technology leaders of the future in Nigeria and in the rest of Africa.
AGRICULTURE 
Nearly one third of all employed Nigerians find themselves working in the agricultural sector, which is one of the country’s main foreign exchange earners. The Nigerian government has set up incentives to help modernise and mechanise their agricultural industry. Not only will locally grown foodstuffs be promoted on behalf of the investor, business and enabling companies may receive the pioneer company status and qualify for tax incentives.
Subsidies on fertiliser, and zero import duties on raw materials needed to manufacture livestock feed are some of the other incentives to attract investors to this sector. Another is the release of grants from the Raw Materials Research and Development Council for research and development that leads to the greater domestic use of Nigeria’s raw materials.
PRIVATE EDUCATION 
The need for skilled trades persons, computer programmers, and agricultural workers will only increase in demand as Nigeria transforms its economy and becomes an international economic power. At present there is an opportunity for private education to offer specific programmes that are in demand in the country. Nigeria is a country with vast underemployment and by offering distance learning or night schools, there is potential for strong investment returns in for-profit education. As an example, one can look at the success of Curro in South Africa, which began as a private for profit primary and secondary schools but now even has a post-secondary offering. If a Nigerian model were created that focused on skills development, the potential returns could be very lucrative.
Nigeria is in the fortunate position to offer investment opportunities to both local and international persons and companies. The need to develop the Nigerian economy offers lucrative potential returns for those looking to invest in the above sectors, including manufacturing and private education. These areas are in some ways interconnected, and by increasing the investment and development in one area, there is tremendous potential for spillover into the other sectors.
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Nigeria’s hottest investment opportunities

Gautam Duggal is a man who has his work cut out for him – as the Regional Head of Wealth Management for Africa, the Middle East and Europe at Standard Chartered Bank it is his job to oversee strategy, business and product development for the bank across three territories. Residing in Dubai, the melting pot and commercial hub of the Middle East, Duggal also looks after advisory services offered by the bank for its investments, treasury and insurance products in the retail, private and business segments. This means he has to be exceptionally well versed in who his client base is and what their attitudes are towards investment.
<a href="https://cdn.forbesafrica.com/app/uploads/2017/11/27121437/SC-WealthManagement2018.pdf">FREE DOWNLOAD: FORBES AFRICA&#8217;S WEALTH MANAGEMENT SUPPLEMENT&nbsp;</a>
Africa is home to some of the fastest growing economies in the world and the stats show how moneyed its populations are; high-net-worth individuals, according to the World Wealth Report, grew by 8.1% in Africa last year, with overall affluence increasing by 10.7% – faster than anywhere else in the world.
“We definitely see this trend continuing far beyond 2018. There is an entrepreneurial spirit sweeping the region. As we see technology permeate all areas of the economy, individuals are using this access to start new businesses and expand beyond city centers and geographies. It’s these entrepreneurs who are creating wealth for themselves and their families,” says Duggal.
The wealth needs of Africa’s diverse, growing middle class population, estimated at 300 million people, are intricate, with most countries being emerging economies and wealth being a relatively new notion for many. The African Lions report defines the continent’s middle class as “not in poverty” and having “disposable income and discretion”. The African middle class, says the report, also has a tertiary education that has been completed or is underway; they have money to fall back on in times of emergencies and access to a computer with email and internet.
“This particular growing middle class is looking for means to save for their first home, pay for their children’s education and set money aside for retirement. In many cases, they are the first ones in their families to attain surplus wealth, so often, there is a need to care for their aging parents or other relatives,” notes Duggal.
Saving early and doing so prudentially is key, however there is a need to dispel the sentiment that a considerable amount of cash is required to start investing. Many banks cater for basic savings plans that allow for a fixed amount to be put away each month. Standard Chartered, for example, offers a vehicle where money can be invested in a diversified portfolio of globally-recognised mutual funds. In South Africa, tax-free savings plans that are comprised of unit trusts and other investment vehicles intended to bolster savings are also gaining popularity, with the likes of Allan Gray and Old Mutual offering similarly structured products.
<blockquote class="td_quote td_quote_left">THERE ARE CHALLENGES WHICH NEED TO BE ADDRESSED BUT I WOULD SAY THERE ARE FAR MORE OPPORTUNITIES THAN CHALLENGES.</blockquote>
The best place for one to start creating wealth, Duggal tells us, is to become financially literate and to understand the options available as an investor. “Of course, every investor is unique and their investing is solely dependent on their individual client risk profile and personal preferences.”
On the trends in Africa, Standard Chartered sees real estate as a favored asset class for many with developers turning to mixed-use projects as a means to boost their bottom lines. There is also a marked increase in technology start-ups with the rise of mobile devises – an IDC report shows that the African smartphone market reached an estimated 95.37 million units in 2016; although feature phones still rank number one, homegrown manufacturers such as Mint Mobile in South Africa are coming to the fore with a ‘Made in Africa’ solution to meet local smartphone and tablet demand. And while asset classes invested in Africa’s natural resources and commodities are popular, a portion of their money can also be found in offshore investments.
From the bank’s perspective, diversification across both asset classes and geographies is vital to reducing overall risk, which is unique to the individual with investment power dependent on their existing risk profile as well as personal preference. But generating wealth substantial enough to be able to invest it is not without its challenges, which includes high inflation, illiquid markets, a lack of information and credible research data however, Duggal is confident the pros outweigh the cons.
<div id="attachment_292440" style="width: 235px" class="wp-caption alignleft"><a href="https://cdn.forbesafrica.com/app/uploads/2017/11/27121437/SC-WealthManagement2018.pdf" target="_blank" rel="noopener noreferrer"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-292440" class="wp-image-292440 size-medium" src="http://cnbc.africa/wp-content/uploads/2017/11/GD-SC-WM18-225x300.png" alt="" width="225" height="300"></a>‘HERE FOR GOOD, HERE FOR AFRICA’ | Download Forbes Africa&#8217;s Wealth Management supplement</div>
“We are optimistic that many African economies will continue to grow in the long run amidst certain shocks here and there. There are challenges which need to be addressed but I would say there are far more opportunities than challenges,” he says.
<h3>MILLENNIAL MENTALITY</h3>
There is a growing consensus that the millennial generation currently has the greatest buying power – projections put this number at between 80-90 million in America alone and thus, millennials are at the core of the majority of industries today. Wealth management is no exception.
The millennial generation, in particular, has been exposed to significant global, social and economic change in relation to previous generations. Millennials are distinguished by their impatient nature and have different attitudes towards how to manage their assets. It is for this reason that Duggal believes that it is crucial to have a conversation with the bank’s younger private banking and investment clients to explain their investment profiling and look at how they can invest their money, saying that “a millennial investor has no issue with understanding the math behind a solution, yet, we lose them over a traditional paper and pencil explanation. Millennials want to understand how the advisor thinks and analyses through a screen and a dynamic tech solution. It is important to get them to see how the right kind of advisory platform can help them make an informed decision in terms of their investment.”
A key driving factor amongst millennials in their decision making is their need to change the world. According to EY, a millennial is twice as likely to invest their money in a company that is focused on social or environmental issues. This bodes well for sustainable investments, which currently represent 18% of assets under management in wealth and asset management classes.
“They need to know where their money is put, and they want to make sure that this it serves their purposes. This would require vast research and a restructuring of product offerings,” explains Duggal.
<h3>HOW DO THEY DO IT?</h3>
So what qualifies Standard Chartered to advise its clients on where to put their money?
“We have strong advisory capabilities and a specialist model, which makes us unique in the market. We also leverage on our local market knowledge. We have had a presence for over 100 years in many of the countries we operate in… We are deeply rooted in Africa and can confidently say that we are ‘Here For Good, Here For Africa’. The bank also has a global footprint. It is because of this that we are able to combine global, regional and local knowledge to best serve our customers,” says Duggal.
From within, Duggal believes in the importance of nurturing the bank’s young talent. Standard Chartered has programmes to invest in its talent across all levels of seniority – a leadership programme aimed at its senior managers and heads of business helps them grow within the business. Similar programmes are in place for junior employees with the objective of upskilling them, where they can travel on short-term assignments for up to a year to more established markets to help them to gain a better understanding of how these markets work.
As business as a whole moves into a more global space, it is more important than ever to develop programmes that aim to bring about a diverse range of skills and experience and nurture talent by encouraging mentorship at all levels – the Boyden Talent Management Trends in the Banking Industry 2017-2018 report notes that “The best talent wants to work for innovative companies that offer learning opportunities and financial institutions must win the talent war in order to succeed in their efforts to recruit and retain individuals most suited for their organisation. This flexible and focused workforce will help build an organisation that is digitally savvy and flexible enough to adapt to current and future changes. To this end, having leaders and recruiters with experience in transformational change is essential.”
With the prospects in Africa riper than ever before, we can certainly look forward to seeing Standard Chartered putting their money on the continent, along with their clients.

gautam-7020_InPixio

STANDARD CHARTERED’S GAUTAM DUGGAL ON WHY AFRICA IS A GOOD BET FOR RETURNS

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Cassava is Positively Impacting Mozambican Smallholder Farmers
Judging by its brown bottle packaging, Mozambique’s Impala beer looks just like any other beer on the market. Not until you have smelt it, will you realise it has an unmistakably mysterious taste to it. Although it is brewed like a typical beer, Impala is made from cassava, a root vegetable that grows in tropical areas. There’s a quiet cassava revolution in Africa as organisations and governments realise the plant’s impact on empowering smallholder farmers and developing rural communities.
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Mozambique is among the key players at the forefront of the growing buzz around cassava, having found a way to farm and process the plant on a large scale. At the heart of this development is the <a href="https://www.dadtco.nl/">Dutch Agriculture Development and Trading Company</a> (DADTCO). The company has developed a mobile processing factory that is able to process the crop into cake and starch flour.
Not only has DADTCO’s invention changed the perception around cassava and the way the crop is grown and processed, but it has helped empower smallholder farmers, whom the company buys cassava from. This breakthrough technology, they say, “bridges the gap between smallholder farmers and large food companies.”
With the company sourcing the starchy root from more than 7,000 smallholder farmers, DADTCO’s innovation is enhancing food security in Mozambique, while also creating far-reaching job opportunities for rural farmers. Better revenue streams are created and tens of thousands of dollars per month are injected into the local economy.
At the beginning of the initiative, farmers used to sell an average of 1.5 tonnes of cassava roots per year, but now the number has more than tripled. This indicates the benefits of a steady market for those who grow the tropical plant. Before the initiative, cassava was nothing more than a subsistence crop for many smallholder farmers. But now, with rising profits, it has turned into a cash crop.
With cassava being the second-most consumed source of carbohydrates after maize in sub-Saharan Africa, it was time the crop was commercialised. Due to it being a highly perishable product, commercialising it has always been tricky – until now. The root vegetable has a high water content and needs to be processed within 48 hours after harvesting. To solve this problem, DADTCO’s mobile factories process fresh cassava on the farm or nearby in the village, eliminating the costly need to transport it over long distances. Now, farmers only have to harvest their cassava when the Autonomous Mobile Processing Unit arrives. Once fully processed, the cassava starchy meal can last up to six months.
The market for cassava is on the rise as more uses for the crop are being discovered. In Mozambique and Ghana, DADTCO has partnered one of the world’s largest breweries, to create cassava beer. This has replaced the popular ingredient, malted barley with cassava cake. The plant can also be processed into ethanol biofuel, syrup as well as flour for bread. “Substituting expensive imports with local cassava products like wheat flour has the potential to create a stable income for millions of farmers in SSA,” says DADTCO.
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How Mozambique is at the forefront of the growing buzz around cassava

CNBC Africa has partnered with United States based Meltwater, a software company that develops and markets media monitoring and business intelligence.
CNBC Africa has been at the forefront of bringing its viewers the latest in business and financial news in Africa for over a decade. With more and more information coming to light around artificial intelligence (AI), and in particular, how it is transforming corporate decision-making on a daily basis, CNBC Africa’s Fifi Peters will interview the CEO and Founder of Meltwater Jørn Lyseggen, on Monday, November 20th from 12h30 CAT. They will discuss the impact AI is currently having on business. The interview will be followed by the South African leg of Lyseggen’s international book tour titled: <a href="https://outsideinsight.com/">Outside Insight</a> starting in Johannesburg on November 20th, followed by the Cape Town event on November 22nd.
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The interview can be accessed online through <a href="https://www.youtube.com/watch?v=bVQPHevZi7E">CNBC Africa’s live YouTube channel</a>.
At the event guests can expect insights from some of Africa’s leading technology and innovation experts, including:
Johannesburg Panellists 
<ul>
<li>TransUnion Africa CEO: Lee Naik</li>
<li>Stuff Magazine Editor-in-Chief: Toby Shapshak</li>
<li>Microtising Founder: Musa Kalenga</li>
<li>Accenture Innovation Lead: Rory Moore</li>
</ul>
Cape Town Panellists
<ul>
<li>Trend Specialist: John Sanei</li>
<li>Tech expert &amp; Siatik CEO: Brett StClair</li>
<li>Thomson Reuters Head of Innovation: Saidah Nash Carter</li>
<li>Treeshake Founder &amp; TEDx Speaker: Dave Duarte</li>
</ul>
To book your seat for either event, simply register below:
<a href="http://learn.meltwater.com/LE2017-11-20BookLaunchJHB_LandingPage.html">RSVP for Johannesburg – Mesh Club, 20th November, 18:00 – 20:00</a>
<a href="http://learn.meltwater.com/LE2017-11-22BookLaunchCPT_LandingPage.html">RSVP for Cape Town – The Cape Town Garage, 22 November, 18:00 – 20:00</a>
*Limited availability &#8211; rights of admission reserved.
<a href="https://twitter.com/cnbcafrica?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor">Tweet us on @CNBCAfrica</a> with your thoughts on AI in business using the #OutsideInsight hashtag.
About CNBC Africa:
CNBC Africa is Africa’s most powerful multiplatform business media brand; owned by Africa Business News and headquartered in Johannesburg, is part of the global CNBC family, reaching audiences in over 100 countries. Together with its companion site <a href="http://cnbc.africa/">CNBCAfrica.com</a>, CNBC Africa focuses on business, money, finance and economic news originating from Sub Saharan Africa. CNBC is available in 90% of Sub Saharan Africa through DTH and Satellite TV operator, Canal Plus, DStv, Kwese, MultiChoice Africa, and StarTimes Nigeria. You can also access CNBC Africa through our digital live stream. CNBC has bureaus in over 15 cities, including, Lagos, Abuja, Johannesburg, Nairobi, Accra, Kigali. CNBC currently has an estimated patronage of over 500,000 viewers in South Africa. Viewership data in other markets is not currently available.
About ABN:
ABN offers a holistic approach to telling Africa&#8217;s business story &#8211; first. With much-esteemed international brands such as CNBC Africa and Forbes Africa providing a broadcast and print platform respectively, the ABN conglomerate also offers resources to organize world-class events across the African continent, through ABN Productions. The recently-launched ABN Training Institute boasts state-of-the-art facilities to provide media training among many other courses, while ABN Digital is the company&#8217;s online presence for your up-to-date business and markets news. Through its sub-brands, ABN aims to be Africa&#8217;s leading aggregator and distributor of business and economic.
<h2>About the Book:</h2>
In his recent book, Outside Insight: Navigating a World Drowning in Data, Meltwater founder and CEO Jørn Lyseggen forecasts how company decision-making is about to undergo a complete overhaul. The internet has changed the way we as consumers make decisions about almost every facet of our daily lives. So understandably, it can come as quite a surprise to learn that the way executives inform key business strategy however, has remained largely unaffected.
In what Entrepreneur Magazine is calling a &#8220;Must read book for 2017&#8221;, Lyseggen lays out the pitfalls of relying exclusively on internal data for business decision making. As the outcome of activities that have taken place in the past, Lyseggen makes the comparison that the using internal data alone to direct corporate strategy is comparable to driving a car using only your rear-view mirror.
Every day, competitors are leaving behind online breadcrumbs filled with valuable external data &#8211; from hiring a new employee, to filing a new patent, launching a new product, altering ad spend, or even trends in social media. For Lyseggen, leveraging insights gleaned from this outside information will allow companies to look ahead and make more informed decisions, to the benefit of boards, executives, investors, marketers, product developers and more. This is the approach he calls Outside Insight.
Lyseggen shows that moving from a focus on lagging, internal data, toward an analysis that encompasses industry-wide, external data, businesses can paint a more complete picture of their brand’s opportunities and threats, and uncover forward looking insight, in real time.
To turn this sea of unstructured data into actionable insights however, requires us to leverage the power of Artificial Intelligence. With this in mind, Meltwater invites South African executives to join us in<a href="http://learn.meltwater.com/LE2017-11-20BookLaunchJHB_LandingPage.html"> Johannesburg</a> and <a href="http://learn.meltwater.com/LE2017-11-22BookLaunchCPT_LandingPage.html">Cape Town</a> as we explore how AI will transform corporate decision making.
About Meltwater:
Meltwater helps companies make better, more informed decisions based on insights from the outside. More than 25,000 companies use the Meltwater media intelligence platform to stay on top of billions of online conversations, extract relevant insights, and use them to strategically manage their brand and stay ahead of their competition. With over 55 offices on six continents, Meltwater is dedicated to personal, global service built on local expertise. Meltwater also operates the Meltwater Entrepreneurial School of Technology (MEST), a non-profit organization devoted to nurturing future generations of entrepreneurs. For more information, contact <a href="mailto:all.marketing.africa@meltwater.com">all.marketing.africa@meltwater.com</a>.

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The past year has seen only marginal growth in innovation by South African companies. According to Accenture’s <a href="http://cnbc.africa/wp-content/uploads/2017/11/AccentureInnovationIndex_Analysis.pdf" target="_blank" rel="noopener">Innovation Index 2017</a> released at the Accenture Innovation Conference recently, the country has seen a moderate increase in innovation, scoring additional two points from 2016 to reach 52 points in 2017. Over a three-year period, the score has only increased by six points. This growth is, however, not advancing at the pace required to translate into stable economic growth.
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The index suggests that South African companies are not spending their allocated budgets on innovation due to economic uncertainties. On average, companies are putting aside 45 percent of their annual revenue for innovation developments, yet actual spending is cautious and conservative at 36 percent.
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“In a rapidly digitising business environment where new players are disrupting traditional revenue streams across all industry sectors, it is now more important than ever for companies to be stepping up their innovation game,” said William Mzimba, Chief Executive of Accenture South Africa and Chairman of Accenture Africa. “Digital innovation is reshaping industries by disrupting traditional business and operating models. But it is also having a profound impact on society, presenting both challenges and opportunities for businesses and policy-makers on the African continent. Innovation champions know this and their approach is seeing them achieve almost double the innovation ROI of the rest of the market,” said Mzimba.
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According to Yusof Seedat, Director at Accenture Research, key is to establish the most effective way to drive the innovation agenda in these challenging times. “The good news, however, is that pockets of excellence do exist. There is a clear distinction between Innovation Leaders – companies that are successfully managing to execute across the various stages of the innovation value chain scoring 65 points and above on the Index (27 percent of the total sample), and the rest of the market – those that are struggling to move beyond their innovation strategy and not achieving their true potential in terms of innovation,” said Seedat.
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The innovation value chain
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Accenture measured innovation maturity across five stages: Innovation Strategy, Ideation, Absorption, Execution as well as Benefits and Impact. Throughout the stages, Accenture found that as companies mature their innovation capability, their focus shifts from just developing ideas towards a more comprehensive innovation value chain. Early innovation initiatives focused almost exclusively on brainstorming and ideation. This has recently been augmented with a concerted effort to ensure that relevant ideas are well executed.
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“Interestingly, ‘absorption’ emerged as a key stage between ‘ideas’ and ‘execution’. Idea absorption
indicates a company’s ability to successfully filter, prioritise and channel the best ideas to the execution stage. This stage is a crucial linking stage between two very different innovation skills: the creative ideation space and the clinical execution space.” said Seedat.
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The index shows that companies are aware of the need to innovate: they score high at the strategy stage (83 points) which entails creating the plans and vision set to innovate. However, they score lower on all other aspects, from ideation (44 points) to absorption, at 53 points, execution at 59 points and, finally, achieving the desired benefits at 37 points.
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“Companies are struggling to seamlessly translate their innovation strategy to well-executed innovations that realise maximum benefits. Our findings point to several areas creating this anomaly – from weak innovative cultures and poor organisational processes that do not fully support the innovation vision of organisations, to inadequate information dissemination and collaboration, and narrowly focused innovation policies,” noted Seedat.
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Where it all begins: Innovation Strategy
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Institutionalising structured innovation capability is necessary to fuel growth, the report notes. This is a responsibility that extends far beyond the office of the CEO, however – organisations’ entire top teams have to be on board. Key is that these individuals do not all have to be creative masterminds; more important is their ability to draw out the skills of others to build an innovation culture.
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At the Strategy stage, innovation is indeed on the radars of SA’s most forward-thinking businesses – 90 percent of Innovation Leaders have instilled an innovation culture, according to the report. In these companies, innovation is seen as an important part of employees’ daily jobs. This stands in contrast to 65 percent of the rest of the market.
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Moreover, Leaders recognise that cultivating innovation means hiring intelligently. When it comes to skills, only 56 percent of companies in the rest of the market recruit those with specific skill sets to support innovation-related activities, as opposed to 100 percent of Innovation Leaders.
Powering strategic decision making with data is also a key innovation enabler for leaders with 80 percent saying they see the full potential of business intelligence and analytics to drive innovation and inform strategy compared to 35 percent of the rest of the market.
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Homing in on innovation: The Ideation stage
 
Innovation Leaders scored 67 for Ideation – the stage during which strategy is turned into actual concepts – leading the rest of the market (at 36 points) by a large margin.
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A factor setting Innovation Leaders apart is collaboration within and outside the organisation, the report shows. Eighty percent of Innovation Leaders have digital platforms in place for employees to interact and share ideas, versus 37 percent of the rest. Further, a mere 44 percent of rest-of-market organisations encourage or make use of cross-teaming and collaboration between different stakeholders, as opposed to 85 percent of Innovation Leaders.
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Absorption: Separating the best from the rest
 
The third stage of the value chain, Absorption, measures companies’ ability to sort through, prioritise and align around the good ideas generated during ideation. Low absorption limits companies’ ability to execute and stymies innovation efforts over the long term. Innovation Leaders score 77 for this metric, with the rest of the market coming in at 44. The country’s most innovative companies are fast movers: 80 percent of Innovation Leaders are more adept at taking a year or less from initial prototype development to full commercialisation, the report found.
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Putting innovation into practice: Execution and Impact
 
At the Execution stage, 85 percent of Innovation Leaders are focusing on disruptive innovations, leading the rest of the market by 32 points overall, at 82 to 50. Yet it is in terms of Benefits &amp; Impact that the gulf between Innovation Leaders and the rest of the market is most pronounced. Leaders scored 65 points at this stage, while the rest of the market trailed at 25. Measurement is one key element: the Index shows that 73 percent of Innovation Leaders implement performance indicators encompassing workflows and business processes critical to the success of innovative development. A mere 38 percent of the rest of the market follow suit.
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Leaders also continuously monitor, evaluate and look for improvements. They do this by assessing changes in the ratios of innovation outputs to inputs, the mix of different types of innovation investments and their related risks. They also know the value of customer feedback. Ninety percent of Innovation Leaders get feedback from customers through online and offline channels, versus 43 percent of the rest of South African businesses. “Despite challenges associated in measuring innovation, leaders find ways of measuring and monitoring innovation performance across the value chain stages.” concluded Seedat.
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Innovation in 2018 and beyond
 
Innovation has to become a more central part of South Africa’s economic growth model and the need to foster a business climate and culture conducive to breed innovation is vital. For South African companies, innovation follow-through – by implementing innovation strategy – will prove critical in the coming years, the Index notes. To gear up for 2018 and beyond, the Index encourages all SA companies to take note of how Innovation Leaders enable, measure and drive success.
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About Accenture 
Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialised skills across more than 40 industries and all business functions – underpinned by the world’s largest delivery network – Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With more than 425,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at <a href="http://www.accenture.com">www.accenture.com</a>.
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Contact:
Jonathan Mahapa
Accenture
+ 27 11 208 3947
<a href="mailto:jonathan.mahapa@accenture.com">jonathan.mahapa@accenture.com</a>

South Africa needs to innovate faster to ensure stable economic growth – Accenture’s Innovation Index 2017 shows

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