TradelanesT H E M A G A Z I N E O F A G I L I T Y I S S U E 2 4 . V O L . 1 , 2 0 1 5

CONNECTING AFRICA

Massive infrastructure projectsInnovative application of technologyMobile telecoms transform livesRole for Middle EastAviation poised for change

Africa’s time is now. For thefirst time, growth isanchored in solid economicfundamentals.

Tradelanes

agility.com

Africans number roughly one billion today but willbe 2.4 billion by 2050 with a workforce exceeding1.5 billion people. These figures point to a massivetransformation, especially in Sub-Saharan Africa,where the bulk of investment in Africa is targeted.As Geoffrey White, Agility CEO for Africa, says:“For the first time, the world needs Africa morethan Africa needs the world.”

In this edition of Tradelanes, we provide anoverview of the development underway across theSub-Saharan region. The 48 countries of Sub-Saharan Africa are racing to shift from commodityand mineral-based economies to more diversifiedeconomies with vibrant consumer and servicesectors. Many of the world’s leading banks,manufacturers and brands are placing sizeable betson Africa’s future. To fulfill this potential requires amassive expansion in the continent’s“connectivity”: new logistics infrastructure (ports,airports, roads, distribution centers, andstreamlined customs procedures and tariffs), and aquantum leap in sources of energy through theexploitation of oil and gas, solar, wind and hydrogeneration.

This is where Agility’s experience in frontiermarkets and its fast-expanding African networkcomes into play, providing the local knowledge andbuilding the supply chains essential to manage bigprojects and introduce new brands to Africanconsumers.

Sources quoted in this edition of Tradelanes include WorldBank, Voice of America, United Nations, Forbes,PriceWaterhouseCoopers, African Development Bank, andErnst & Young.

Leapfrogging the worldMobile telecoms have grown faster inAfrica than anywhere else in the world,transforming the lives of urban and ruralAfricans alike.

Making a differenceIn Sierra Leone and other African nations,Agility and its employees are improvingeducation and helping to strengthencommunities.

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Peacekeeping suppliesAgility’s public-sector arm works withgovernments and NGOs to deliverequipment and supplies.

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Distribution parksA new Agility distribution park on theKenya-Uganda border will improve andincrease the flow of goods and vehiclesacross the border into land-locked Uganda.

27 Mega projectsThe Mombasa-Kigali-Nairobi Rail linkcovering some 3,000 km is one ofnumerous planned infrastructure projectsto meet the demands of Africa’s growth.

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21Nation in fluxAgility supports relief operations in SouthSudan with logistics, sourcing and fuel-supply expertise.

Middle East gateway Africa connects to the world through theMiddle East, which acts as a gateway,trading partner, logistics hub and banker.

33 Uganda oilAgility’s oil and gas experts adviseexploration companies while Agility’s GCCServices provides camp construction andlocal recruitment services.

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A frica, no longer stalled on the cusp of change, is inthe midst of a historic transformation that isremaking the continent and the globe.

Africa’s population growth will lead the world for the next50 years, making it the fastest-growing consumer market. InSub-Saharan Africa, huge new oil and gas discoveries inKenya, Mozambique, Nigeria, Angola and Tanzania can makethe region a potential energy powerhouse. With up to 60%of the globe’s unplanted arable land, Africa is developing thepotential to feed itself and become an agricultural exportgiant. And by 2060, it will have the world’s largest workforce,a pool of low-cost labor that will help it industrialize andplug into the global value chain at last.

“For the first time, the world needs Africa more thanAfrica needs the world,” says Geoffrey White, CEO of AgilityAfrica.

What Africa lacks is connectivity. The race is on to linkrural and urban, landlocked and coastal, east and west, northand south – Africa markets to world markets. “Africa is theleast integrated continent in the world,” says IbrahimMayaki, chief executive officer of the New Partnership forAfrica’s Development.

Power DeficitDeficient infrastructure – power, transportation, water,sanitation and other basics – depresses private-sectorproductivity by 40%, the World Bank says.

Most problematic is energy supply. The World Bank saysthe 48 countries of Sub-Saharan Africa – with a population

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For the first time,the world needs

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Connecting Africa Connecting Africa

of 800 million – generate the same amount of power asSpain, a country of 45 million. Thirty of those countriesexperience chronic power outages.

Household electrification stands at 43%, leaving 600million people and 10 million small and medium-sizedbusinesses in the dark. The average cost of electricity inAfrica is three times as high as in the United States andEurope, despite its vast reserves of coal, oil and natural gasand its unmatched capacity for hydropower, geothermal,wind and solar generation.

Power demand is forecast to increase more than 90% by2035. “There are any number of large, well-funded projects

in the works, but most won’t come on line soon,” Whitesays. “Everything else is dependent on the ability to boostsupply, expand grids, improve reliability, lower prices andfind alternatives for people, farms and businesses off thegrid.”

Ending Isolation Elsewhere in the world, two-thirds of rural residents arewithin two kilometers of a paved or all-season road. InAfrica, only one-third of people in the countryside live thatclose to a decent road. Fifty-four years after itsindependence, the Democratic Republic of Congo, Africa’ssecond-largest country, still has no roads connecting oneend of the country to the other.

Roads carry more than 80% of African goods and 90% ofpassengers. Lack of paved surfaces makes transport ofcommercial goods and people difficult, expensive anddangerous (Africa accounts for one-fifth of the world’s roadfatalities). Vehicle overloading is common, and hightransport costs add up to 75% to the cost of African goods.The dearth of good roads is “isolating people from basic

education, health services, transport corridors, trade hubsand economic opportunities,” says the African DevelopmentBank (AfDB).

Massive, ambitious road projects are underway acrossAfrica. One seeks to upgrade and connect nine existinghighways that would link Cairo, Egypt and Dakar, Senegal.Another would connect West African countries Ivory Coast,Burkina Faso and Mali.

Even less developed is Africa’s rail network, vital tomovement of bulk commodities such as the farm goods,minerals and other products at the heart of thecontinent’s economy. Most rail lines date to colonial days,and 13 Sub-Saharan countries have no railway.

Air transport remains expensive by internationalstandards. African countries have not made good onpromises to deregulate. Consequently, intra-Africanconnections are limited, airspace is overly restricted, faresare high, and safety issues persist.

Improvements in air connections would quickly makeAfrican perishables – vegetables, fruit, meat, fish – staples inhomes and restaurants of Europe and Middle East andprovide Africa with much-needed foreign exchange.

Durban, Dar Es Salaam, Mombasa, Djibouti and Abidjanare vying to become dominant sea ports, but Africa’s 64ports are “badly in need of investment and regulatoryreforms to remove the bottlenecks and chronic congestionproblems,” the AfDB says. Port costs, 50% higher than inother parts of the world, need to come down to cut the costof production and contribute to growth.

“Transportation corridors create trade routes and urbanclusters large enough for consumer companies to target,”

says Essa Al-Saleh, CEO of Agility GIL. “Underinvestment inAfrican infrastructure has spillover effects that take time toreverse. Investment is pouring in now, so you are starting tosee some of these big gaps in the supply chain get filled.”

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Household electrificationstands at 43%, leaving 600 million people and

10 million small and medium-sized businesses in the dark

Africa contains 60% of the world’s unused arable land.Africa’s sources of growth are discussed on page 10by Geoffrey White, CEO of Agility Africa and a expertcommentator about Africa on radio and TV.

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FACING PAGE: As electricity coverage increases and industrializationtakes place, power demand is expected to increase 93% between todayand 2035. Only 10% of Sub-Saharan Africa’s hydropower potentialhas so far been harnessed.BELOW LEFT: Rail is vital to the efficient movement of bulkcommodities, minerals and farm output. It remains to be seen whetherthis neglected sector will receive the investment it needs.BELOW: Massive road projects are underway across Africa to providemuch needed connectivity. Eighty-percent of African goods are carriedby road. Here a truck approaches the Zimbabwe-Zambia border post.

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Connected, At LastThe connectivity provided by the mobile telecommunicationsrevolution has been transformative for Africa, the world’sfastest-growing and second-largest mobile market. There areeight mobile subscriptions for every 10 people – 760

subscriptions in all – up from just 15 million in 2000.(Household access to mobile phone services is double theaccess to piped water.)

Kenya’s M-Pesa and other carriers have turned phonesinto tools for payment, essentially giving millions of“unbanked” people a bank. Mobile phones also are the waymost Africans access the Internet, where broadband coverageis otherwise low (16%).

Information previously unavailable – especially outsideof cities – is now at the fingertips: education, professionaltraining, remote medical diagnosis and treatment, weatherupdates, crop reports, and market pricing.

IT incubators and development hubs have sprung upacross Africa, producing software and African mobileapplications. Kenya is building a massive technology city,Konza City, in hopes it can be Africa’s answer to the SiliconValley in the United States.

The Coming ‘Green Revolution’Dependent on international food aid for so long, Africa isslowly gaining the ability to feed itself and could eventually supply food for Europe, the Middle East and parts of Asia.

Nearly 230 million Africans work the land but mostremain subsistence farmers rather than growing crops andraising livestock commercially. Total yields are increasing,but that’s mainly because more land is under cultivation.Modern techniques are not in practice: water storage, use ofmachinery, improved planting methods, soil conservation,fertilizer, high-quality seed, irrigation, and animal husbandry.

Post-harvest crop losses are an estimated 40% because ofbad storage and processing or because inadequate road andrail access cuts growers off from markets.

Sub-Saharan Africa has abundant water, including LakeVictoria and four of the world’s longest rivers (Nile, Congo,Zambezi, Niger). Irrigation could boost crop yields by 50%.Today, less than 5% of Africa’s cultivated acreage isirrigation-equipped, but that area accounts for 20% of thevalue of agricultural production.

“Urbanization will drive a green revolution in Africa,”White says. “Demand from the cities is pushing growers andcommercial agriculture providers to modernize and boostoutput.”

Money, Knowledge Pour InThe private sector in Africa has become the largest driver ofgrowth and jobs, surpassing the public sector, aid andremittances. Africa’s share of global trade is up, but only

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In 2013, foreign directinvestment (FDI) fell

in every region exceptAfrica and

Latin America. Only North America

ranks ahead of Africain terms of

attractiveness

MEGA CITIESFifty-two African cities now have populations of 1 million or more,

the same number as Europe. Several, such as Dar es Salaam and

Kinshasa, are among the fastest-growing cities in the world.

City Country Population (millions)

2015 2025

Lagos Nigeria 12.4 15.8

Kinshasa DR Congo 10.7 15

Luanda Angola 6 8

Abidjan Ivory Coast 4.8 6.3

Nairobi Kenya 4.3 6.2

Dar es Salaam Tanzania 4.2 6.2

Kano Nigeria 3.9 5.1

Johannesburg S. Africa 3.9 4.1

Cape Town S. Africa 3.6 3.8

Addis Ababa Ethiopia 3.4 4.8

Dakar Senegal 3.4 4.3

Ekurhuleni S. Africa 3.4 3.6

Ibadan Nigeria 3.3 4.2

Durban S. Africa 3 3.2

Accra Ghana 2.8 3.5

Douala Cameroon 2.5 3.1

Source: United Nations Human Settlements Programme (UN Habitat)

AFRICA FACTS● Africa’s population of 936 million could be 2.4 billion by 2050.

Workforce of 617 million today is expected to grow to 1.6

billion by 2060.

● Gross National Income per person at $1,615 in Sub-Saharan

Africa is marginally ahead of South Asia’s $1,474 but a long

way behind the world average of $10,566.

● 37% of Africans live in cities today; 50% are expected to live

in urban areas by 2030

● African GDP growth is estimated at 4.6% in 2014 and is

projected to grow to 5.2% in 2015-2016.

Mobile telecoms have grown faster in Africa thananywhere in the world. For this and other innovativeapplications of technology, see page 17.

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to a miniscule 3.1%. Intra-African trade – another measureof connectivity – is only 11% of total African trade.

“African countries are losing out on billions of dollars inpotential trade every year because of a fragmented regionalmarket and because cross-border production networks thathave spurred economic dynamism in other regions,especially in East Asia, have yet to materialize,” says theAfDB.

Investors and multi-nationals see that fragmentationgiving way rapidly to integration. South Africa’s Shopritesupermarket chain is building 47 new outlets across thecontinent. Other South African powerhouses such asStandard Bank, Coca-Cola Sabco, MTN, Nando’s and Tiger

Brands are pushing into new markets too. Meantime,Nigeria’s giant Dangote Cement is investing in Zambia,Cameroon, South Africa and Tanzania.

In 2013, foreign direct investment (FDI) fell in everyregion except Africa and Latin America. Only North Americaranks ahead of Africa in terms of attractiveness, according toa 2014 Ernst & Young investor survey. South Africa, Ghana,Nigeria, Kenya, Mozambique, Tanzania and Uganda havedrawn the most interest.

For four decades, mining and fuel have accounted forover half of Africa’s exports, compared with 10% in Asianand advanced economies. Even in countries with mineraland energy wealth, there is a strong desire to diversify byexpanding consumer sectors and lessening reliance oncommodities. Extractive-sector FDI was the lowest ever as a share in 2013 as investors put money into Africantechnology, media, mobile telecoms, retail, consumerproducts, financial services and infrastructure.

Banks from China, India and Europe are investing, alongwith Japanese automakers. Walmart, Nokia, H&M, andEricsson, Microsoft, Intel, Primark, Tata, Huajian, Airtel, andIBM also have made big Africa bets.

If anything, investment is outpacing the development offresh talent. Ernst & Young says multi-national and regionalcompanies rely too much on expatriates and are looking tofind skilled workers in other African countries or thereturning African diaspora. “The war for talent inAfrica is just beginning,” the firm says.“Organizations in Sub-Saharan Africa are currentlyweak in those talent-management skills they deemto be a high priority.”

Governance ImprovingBureaucracy and corruption remain stubborn foes.Nearly one in two people reported having paid a bribe in thepast 12 months when interacting with public institutionsand services, according to the AfDB.

Even so, governance is clearly improving. Twenty Sub-Saharan countries are considered democracies versus justfour in 1991. Botswana and Cape Verde score respectably inTransparency International’s Corruption Perception Index,ranking alongside more developed nations.

Across Sub-Saharan Africa, the costs of a business start-uphave fallen by more than two-thirds over the past sevenyears and the time required for business starts has fallen byhalf. “New property registration programs, improvements totrading across borders, simplified tax processes, improvedsolvency framework, and strengthened investor protectionshave contributed to growth,” says the AfDB.

The tiny Indian Ocean island of Mauritius has become abusiness showcase, rising to No. 19 in the World Bank’s

Doing Business indicators. Rwanda gets credit for adoptingglobal best practices such as one-stop construction permits,ease-of-credit reforms and simplified tax payment. Zambiaand Zimbabwe created Africa’s first one-stop border post,shortening wait times for trucks from three days to same-dayand for passengers from three hours to 30 minutes. Ghana isworking to create a cross-sector online business directory tomatch SMEs with investors and suppliers.

No ‘False Dawn’ This TimeSince 2000, African GDP has risen 5% a year, and realincome per capital has grown 2.1% a year. The percentage ofpeople living in poverty has fallen slowly but steadily since1981, leading economists and others to believe that Africawill remain on the rise.

The World Bank says 27 African countries are now“middle income,” and another 13 will be middle income in10 years. The IMF says 11 of the world’s 20 fastest-growingeconomies will be African through 2017.

Within a generation, Ernst & Young says, “the likes ofNigeria, Ghana, Angola, Egypt, Kenya, Ethiopia and SouthAfrica will be considered among the growth powerhouses ofthe global economy.” ■

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Agility and its employees around the world are makinga difference in education, health and the environment inAfrica, see page 35.

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FOREIGN INVESTMENTForeign direct investment in Africa rose to an estimated $50 billion

in 2012, from $15 billion in 2002. Top 10 sectors ranked by

number of projects (2003-2012)

● Financial services – 958

● Business services – 469

● Coal, oil and natural gas – 461

● Metals – 419

● Communications – 407

Sources: fDi; Ernst & Young

● Software & IT – 356

● Food and tobacco – 313

● Hotels and tourism – 240

● Automotive & OEM – 198

● Transportation – 197

Mombasa is vying to become one of the dominant east coast ports;but with port costs in Africa 50% higher than the rest of the world,investment and efficiency are essential to stimulate trade. Elsewhere,efficient ports unload and move containers out of port in two or threedays. In Sub-Saharan Africa the average is 14 days.

There is a strong desire todiversify by expanding consumersectors and lessening reliance on

commodities

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Geoffrey White is CEO ofAgility Africa and afrequent commentator onAfrica on the BBC, CNN

and CNBC, and in public forums suchas the World Economic Forum, CCAand Chatham House.

Q: “Africa rising” is a recurringtheme. How can we be sure thisisn’t another false dawn?I am a firm believer that Africa’s time isnow. This is an emerging marketwhere, for the first time, growth isunderwritten by solid economicfundamentals. The economics of Africahave subtly, but very significantly,altered. Historically, Africa was of littleimportance to the world, but this hasrecently changed as the world becomesincreasingly dependent on Africa foragricultural output and as a source ofenergy. Today, as never before, Africahas become increasingly important tothe global economy, holding anestimated 15%+ of the world’s energyresources and 60% of the world’sunused arable land. Africa is attractingincreasing FDI for development of itsenergy and agricultural resources. Thisin turn creates and stimulates jobs andprosperity. A recent report by Deloittenoted that Africa’s economy isexpected to grow by 50 per cent in thenext five years to $3.7 trillion by 2019,driven by an expanding middle classthat is spearheading rapidurbanization. According to the WorldBank, more than half of Africancountries will be middle income and30% of Africans will be middle class by2050, with a forecasted consumer

expenditure of $2.6 trillion. With apopulation of 2 billion by 2050, that isa market global manufacturers ignoreat their peril.

Q: What’s most striking in termsof how today’s Africa differsfrom a decade ago? Improved governance, better educationand health, greater democracy, wideraccess to capital – these are allsignificant drivers of progress. But, tome, the most fundamental change inAfrica in the last decade is thateveryone now has a cellphone. Thearrival of 750 million new cellphoneusers (twice as many as in the USA) hasfundamentally changed society.Cellphones have deliveredconnectivity, access to information,knowledge andcommerce to even theremotest parts ofAfrica and that, inturn, has directlydriven economicgrowth, transparency,accountability, andprogress. Africa has leapfrogged manydeveloped countries in the use ofcellphones for commerce, banking andmarket information. Growing access tothe Internet is having an even greaterimpact on growth, especially when youconsider that half the population isunder the age of 25 and the medianage is 20. The adoption and increasingspread of an Internet-accessiblegeneration is potentially anothermassive step forward for Africa becausethe number of Africans under age 18could swell to almost a billion by 2050.

Q: In basic terms, what will ittake to “connect” Africa – tointegrate its markets with oneanother and connect them to theworld?This is one of Africa’s biggestchallenges. There is a substantialshortage of infrastructure and power tosupport growth and development.Without both, the rate of economicdevelopment is stifled. There is agrowing private sector investment inthese critical areas and organizationssuch as the African Development Bank(AFdB), the Africa Finance Corporationand the International FinanceCorporation, as well as the Chinese areinvesting heavily in building capacity.In 2012, for instance, FDI forinfrastructure projects grew by 14% to

reach $47 billion. This is still short ofthe $93 billion the AfDB and theWorld Bank estimate needs to be spentannually until 2020 to close Africa’sinfrastructure deficit.

Q: The African economy seemstwo-dimensional. Africa sellscommodities such as energy,minerals and agriculturalproducts, and buys westernconsumer goods andtechnology. What’s the outlookfor manufacturing? Knowledge-

Africa’s timeis nowQ&A with Geoffrey White

based industries? Other thingsfarther up the value chain?Africans are very entrepreneurial. Thereare great examples of SMEs in everycountry you visit. As the infrastructureand power available across thecontinent develops, businesses arethriving. Intra-Africa trade is currentlyonly 11%, very low in comparisonwith developed countries. Globally,trends show that manufacturers aremoving closer to their markets, and asthe continent develops I believemanufacturers will increasingly locatein Africa for assembly and OEM. Aseconomic prosperity develops, a wholenew service industry is yet to emergein Africa, which will create further jobsand expansion.

Q: What countries are makingstrides that impress you?Many are progressing, but those thatstand out are Ghana, Angola, CoteD’Ivoire and Senegal on the west coast,and Mozambique, Kenya and Tanzaniaon the east. Nigeria remains a hugemarket in its own right with 185

million people, and it is finallyshowing some real signs of economicprogress.

Q: What’s the biggest mistakeforeign companies are making inAfrica?Africa is open for business. Those whoare engaging and committing to thecontinent and investing in long-termsustainable businesses are alreadyprofiting and succeeding. The winnerswill be the first movers, those whocommit early. It is a very differentmarket from the mature westerneconomies. The commercial focus isn’ton stealing 1% market share from yourcompetitors, but rather scaling up tohave the capacity to meet theburgeoning demand. There are very

few established pan-African brands, soit’s a marketing director’s dreamopportunity! The perception by thosewho aren’t engaged with the continentis probably ten years behind reality onthe ground. Those prepared to spendthe time and resources to understandthe reality of the opportunity willmake significant strides forward.

Q: Some consumer companiesmanage African distributionthrough Dubai. Others are tryingto work it through regional hubssuch as Nairobi andJohannesburg. What makes themost sense?Interestingly, all of them haveindividual attractions and logic. Thereality is that Africa, excluding SouthAfrica, is so underserved from alogistics perspective that anyinternational standard integratedlogistics solution finds a warmwelcome and a willing market. Dubaiis seeing very strong growth as a“gateway to Africa,” a hub for bothadministration and logistics. This isprimarily due to Emirates Airlines,which now provides an unparalleled

ABOVE: a new FPSO (floating productionstorage off-take) vessel is under constructionto service Ghana’s offshore oil sector.Operated by Tullow, the vessel will launch in2016 and be capable of producing 80,000barrels of crude per day and storing 1.7 millionbarrels. For information about Agility’s Oil &Gas services in Africa see page 33.BELOW: Kenya’s capital Nairobi, one of theeconomic standouts and cities on the eastcoast.

Africans are veryentrepreneurial. There aregreat examples of SMEs in

every country you visit

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service to the major cities of Africafrom Dubai, making it the center ofchoice for meetings, banking, tradeand commerce.

Q: Most of the risks in Africa arewell publicized. Corruption,instability, poor physical and ITinfrastructure, lack of policy-making capacity, a shallow poolof skilled labor. How real are therisks, in your view?Africa is a frontier, emerging market,with all the development challengesand growing pains that a youngcontinent brings. The encouragingthing is that progress is being made

and the commercial environment isimproving. There is a very noticeablenew generation of well-qualifiedAfrican human resources professionalsemanating from schools anduniversities who are extremely capable.This new generation will be a stimulusfor further steps forward ingovernance, responsible business andsocial and economic development.

Q: What can you tell us aboutAgility’s approach to Africa? Agility has vast experience of operatingto international standards in emergingmarkets, so it has perfect synergy withAfrica and its requirements. AgilityAfrica is focused on building long-termsustainable business that supports thegrowth and development of Africa andhas implemented a plan to develop anetwork of Agility Distribution Parks(ADPs) across the continent to meetthe demands and serve our existingand new customers as they enter theAfrican market and expand across thecontinent. These will be internationalstandard logistics parks, providingwarehousing facilities and services andacting as a solid, secure and reliableplatform from which businesses cansafely and smoothly operate within theAfrican market. They will also providea route to export African products tothe rest of the world. There is an ADPunder development in Accra in Ghanaand another in Busia, Uganda. In 2015,we will see further ADPs beingdeveloped in both East and WestAfrica. All of Agility’s Groupcompanies, including GIL, Tristar, NAS,GCC Services, RED, DGS and ICS willbe able to use Agility Africa and theincreasing Agility brand awareness andpresence on the ground to increasetheir footprint in Africa and pursuenew opportunities in this rapidlydeveloping market. ■

A frica is in the midst of anunparalleled constructionboom. A look at some of itsbiggest, most ambitious projects.

Great Inga Dam ($80 billion) – With40,000MW capacity, the DemocraticRepublic of Congo’s Great Inga will bethe largest dam in the world, doublingproduction of China’s Three GorgesDam. First phase is expected to provideover 4,500MW of electricity with a costof $12 billion. Once complete, Inga willbe able to provide over 500 millionAfricans with energy.

■ Konza City ($14.5 billion) – Locatedsoutheast of Nairobi, the “AfricanSilicon Savannah” is Kenya’s answer tothe United States’ Silicon Valley. Thetechnology and financial mega city,expected to be completed in early 2018,will include a business district, a sciencepark, residential apartments, hotels andmalls, and a university. It is expected toattract over 100,000 jobs.

■ Mombasa-Kigali-Nairobi Rail Project– ($13.5 billion) –The project seeks tolink Kenya, Uganda and Rwanda,covering an estimated 3,000 kilometersand dropping barriers to regional tradeand import and export costs forlandlocked Uganda and Rwanda.

■ Great Ethiopian Renaissance Dam($4.8 billion) – Despite tension betweenEgypt, Ethiopia and Sudan over use ofthe Nile, the dam is to generate6,000MW of energy and provide Egyptand Sudan with electricity. It will createover 12,000 direct and indirect jobs. It isexpected to be completed in 2017.

Mega projects

“Emirates Airlines has developed anunmatched range of services from Dubai tomajor cities of Sub-Saharan Africa.” See page21 for more about Africa’s ties with the Gulf.

This is a frontier,emerging market,with all thedevelopmentchallenges andgrowing painsthat a youngcontinent brings

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Lake Turkana in Kenya will be the site of thelargest wind farm in Africa and Kenya’slargest single private investment.

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Many of theworld’s biggest

constructionprojects are now

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■ Eko Light Rail Project ($1.2 billion)– Built by a Chinese constructiongiant, the Blue Line rail project aims todecongest traffic in Lagos, Nigeria’scommercial hub. The line will movecommuters from Marina – a denselypopulated business district – toOkokomaiko, with 13 stops in-between, providing workers with aneasier alternative to the hectic trafficfaced daily on roads.

■ Eko Atlantic City ($6 billion) – Thisdevelopment in Lagos, Nigeria is ajoint venture between Lagos State

government and South Energyx. It isexpected to occupy 10 squarekilometers of land reclaimed from theAtlantic Ocean and will containfinancial institutions, commercial andretail, residential and touristaccommodations with state-of-the-arthigh-tech infrastructure.

■ North South Corridor – NSC is aseries of inter-related projects thataddress road, rail, port, air transportinfrastructure; border posts and energyinterconnectors. It includes a corridorlinking the Port of Dar es Salaam in

Tanzania with the Copperbelt inZambia and Democratic Republic ofCongo; and another link is via theCopperbelt to the Port of Durban inSouth Africa. It spans eight countriesand entails improvements to 8,650 kmof roads (outside S. Africa) and 600 kmof rail tracks. There are 157 identifiedprojects, including 59 road projects, 38rail projects and six bridge projects.Ultimate goal: a 7,300 km trans-Africanhighway from Cape Town to Cairo.

■ Lake Turkana Wind Power ($600million to $700 million) – Africa’slargest wind farm, under developmentsince 2005, will provide 300MW ofclean power to Kenya’s nationalelectricity grid. It will be the largestsingle private investment in Kenya’shistory. The wind farm covers 40,000acres in northeast Kenya and willcontain 365 wind turbines, a gridcollection system and a high voltagesubstation.

■ Mmamabula-Walvis Bay Trans-Kalahari Rail Line ($9 billion) – Therail line, to be known as the Trans-Kalahari Railway, will run 1,500 kmfrom the landlocked Botswana’sMmamabula coal field to the port ofWalvis Bay in Namibia.

■ DESERTEC ($400 billion) – Thisproject is intended to harness solarpower from the Sahara and pipe itthrough a Mediterranean super-grid toenergy-hungry Europe. DESERTECincludes a consortium of European andMENA companies. Under its proposal,concentrating solar power systems,photovoltaic systems and wind parkswould be spread over the desert innorthern Africa. Electricity would betransmitted to European and Africancountries by a super grid of high-voltage direct current cables. It would

provide a considerable part of theelectricity demand of MENA countriesand provide continental Europe with15% of its electricity needs by 2050.

■ Mtwara Development Corridor – A300-project transportation corridorinvolving Malawi, Mozambique,Tanzania and Zambia. The aim is togive these regions easier access to theport at Mtwara, Tanzania. Involvesdevelopment and rehab of roads andbridges, sea and lake ports, telecoms,air transport facilities and ferry services.Anchor projects include a $1.7 billionManda-Mchuchuma-Mtwara rail linefrom Lake Malawi to the coast.

■ BRICS Cable Project ($1.5 billion) –This is a 21,000-mile undersea fiber-opticcable that will run from Fortaleza,Brazil, through Cape Town, SouthAfrica, to Chennai, India to Shantou,China to Vladivostok, Russia to carryhigh-speed Internet traffic withoutreliance on U.S. and European networks.

■ O3b Networks – Continent-wideproject deploying a $1 billion, next-generation satellite network thatcombines the reach of satellite coveragewith the speed of fiber-optic, providingan Internet backbone for Africa.

■ Durban Waste-to-Energy Project –Converts methane gas from householdwaste into electricity. Will supply up to6,000 low-income households in SouthAfrica with reliable power.

■ Ethiopia-Djibouti Railway ($1.2 billion)– A 656 km line connecting AddisAbaba with Djibouti, giving landlockedEthiopia access to the sea and loweringthe cost of transportation. ■

Sources: Frontier Market Network, Ernst &Young, KPMG, Business Day

14 Mega projects

SQUARE KILOMETER ARRAY TELESCOPE The Square Kilometer Array (SKA) will be the world’s biggest radio telescope and will be

developed in South Africa, where the view of the Milky Way Galaxy is best and radio

interference least. It is a global project with 10 member countries and aims to provide

answers to fundamental questions about the origin and evolution of the universe.

Construction is scheduled to begin in 2016 for initial observations by 2019 and full

operation by 2024. It will require high performance central computing engines and long-

haul links with a capacity greater than the current global Internet traffic. Thus a related

development is the plan to have 13,125 km of fiber-optic cable refurbished and

strengthened across South Africa by 2020. The expected cost of the SKA is $2 billion.

Japan Helps in Battle Against EbolaIn December, Agility GIL Japan assisted the Japan Self-Defense Forces(JSDF) with an urgent shipment of 20,000 sets of personal protectiveequipment from Komaki Air Base to Accra, Ghana in West Africa.

The equipment, mainly suits for healthcare workers, caregivers andothers working to stop the spread of Ebola, was donated by the Japanesegovernment in response to a request from the United Nations Mission forEbola Emergency Response (UNMEER).

In the fall, UNMEER established its headquarters in Accra. The latestoutbreak of Ebola has claimed more than 6,000 lives, mainly in the WestAfrican nations of Sierra Leone, Liberia and Guinea. Japan has agreed todonate 700,000 sets of personal protective equipment to UNMEER and tomake financial contributionsand offer other assistanceaimed at battling the epidemicand strengthening the healthsystems in affected countries.Lack of protective suits andother gear has hampered theinternational response to theEbola outbreak.

“We must stop this outbreakany way we can,” said JapanesePrime Minister Shinzo Abe.“Japan is determined to putforth its best in the fightagainst the Ebola virus disease.”

The Japan Self-DefenseForces (JSDF) had the 20,000 donated suits moved from a warehouse inShinagawa to Komaki outside Nagoya, where the cargo was loaded onto aJSDF KC-767 airplane. Agility GIL Japan assisted the JSDF by managingthe ground handling at stops along the way. The flight made stops atMale in the Indian Ocean and Djibouti in East Africa before making thefinal leg of the journey to Accra, where Agility again managed groundhandling and the shipment was cleared and moved to a warehouse.

Yoshimichi Yoneda, Agility Japan Managing Director, was on thetarmac at Accra to make sure the shipment was unloaded and moved asplanned. “Our role was to provide ground handling and to make surenothing prevented this life-saving equipment from getting to where it isneeded. We are glad we were able to help Japan make a difference in theeffort to stop Ebola,” he said. ■

For more about Agility’s work with NGOs in support of relief in Africa turnto page 31.

20151

Creative, unconventional useof technology and rawmaterials helps Africa“leapfrog” product cycles

and traditional stages of development.

“Africa is already bypassing traditionalmeans with technologies such as wireless,satellite bandwidth and frugal mobiletechnologies that have relatively lowerphysical infrastructure requirementsand investment costs,” says CarlosLopes, executive secretary of the UNEconomic Commission for Africa.

Lopes calls Africa “a breedingground for frugal innovation andresilient entrepreneurs who canliterally make treasure out of trash,from tools to grass-cutting machines towater pumps.” Examples:

Off-grid solar and alternative energy. Crowd-funding website SunFunder isbringing cheap power and light toAfrican homes, schools, businesses andcommunities. It provides short-termloans for solar home systems, micro-grids and commercial solar projects in

rural Uganda, Tanzania, Kenya andZambia. SunnyMoney sells anddistributes solar lights in Africa toreplace kerosene and paraffin lamps.LEDsafari shows people how to maketheir own $2 solar lamps. Solar WindEast Africa is building solar-poweredstations to pump water and generateelectricity for livestock farmers inKenya. Sun and biogas are being usedto fuel refrigeration systems and coolmilk in Uganda and Mozambique. Crop

residue is converted into biogas as partof efforts to set up small-scale, low-carbon,energy efficient plants for communitiesin Kenya’s Rift Valley. A byproduct ofthe process is liquid fertilizer.

Mobile technology. Mobile telecomshave grown faster in Africa thananywhere in the world. Subscriptionpenetration is expected to reach 97%by 2017. Less than 2% of householdshave traditional landlines. Safaricom’sM-Pesa pioneered mobile banking andpayments in Kenya. It has been widelyimitated across Africa with mobileservices expanded to allow users to paytaxes, utility bills, taxi fares and to payfor goods in stores. Soko is an e-commerce platform that allowscraftswomen and micro-manufacturersto sell globally using mobile phoneSMS messaging. Namibia used mobileLeapfrogging

the world20151

▼

17

FACING PAGE: Mobile technology hasrevolutionized telecoms in Africa, growingfaster than anywhere in the world andbringing wide-ranging benefits in sectorssuch as banking and healthcare.ABOVE: Companies such as Coca-Cola areharnessing local entrepreneurs to maintaindistribution by whatever means are bestsuited to the locale and terrain.LEFT: Home-scale portable solar panels areintroducing electricity to remote communities.

Leapfrogging the world

5

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Leapfrogging the world

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phone data to identify and mapmalaria hotspots and organize theresponse by health workers.

Irrigation. Inexpensive, lightweight,human-powered MoneyMaker pumpsoffer the ability to irrigate cheaply andhave increased small farmers’ incomesby 200% through higher yields. Thepumps, developed by KickStartInternational, allow farmers to irrigateup to two acres a day, pulling waterfrom depths of seven meters anddistributing it through hand-heldhoses and nozzles. KickStart also hasdeveloped two hand-operated presses.

One creates building blocks from soil-cement mixtures that are half the costof concrete or stone. The other allowsusers to start businesses that turnsunflower, sesame and other seeds intocooking oil.

Genetically modified crops. BurkinaFaso, South Africa, Sudan and Egyptare the only African countries growingtransgenic crops, mainly insect-resistant cotton, according to theBrookings Institution. Cameroon,Ghana, Kenya, Nigeria and Uganda areconducting promising research. On thehorizon in Uganda are bananas withenhanced vitamin A and resistance to abacterial wilt. InNigeria, the focus ison insect-resistantblackeyed peas.

Bamboo bicycles. InGhana and elsewhere,small manufacturersimport Asian-madegears, brake parts and

other bicycle components forinstallation on strong, vibration-dampening frames made fromrenewable African bamboo. The resultis a cheaper, more durable made-in-Africa bicycle that can increase theincome of a poor, rural family by up to35%, according to the Bamboo BikeProject.

Manual distribution centers (MDCs). In Tanzania and elsewhere, Coca-Colamaps clusters of sales outlets within atwo-kilometer radius. It recruits andtrains local entrepreneurs to maintain24-hour distribution andreplenishment of those outlets usingpushcarts, motorbikes and pickuptrucks.

Mobile power sources. GE’s 616 dieselengines are “power plants on wheels”capable of providing enough energy topower 33,000 Nigerian homes and tosupply power to industrial users. GEhas modified smaller diesel locomotiveengines into standalone mini powerplants that can power 6,600 homes. ■

A frica’s weak public health infrastructure andtropical climate make its battle against exotic andinfectious diseases difficult and logisticallycomplex.

Last year, Agility Defense & Government Services (DGS)was approached by the MRC, a UK-based funding agencydedicated to improving human health by supportingresearch across the entire spectrum of medical sciences inthe UK and Africa. The MRC asked Agility to transporturgent medical supplies and equipment to Gambiaquickly so that the valuable cargo reached its destinationin time to ensure there were adequate stocks of criticalsupplies needed for clinical and research centers.

Moving sensitive cargo to West Africa presented achallenge because Agility’s scope of work included theshipment of biological samples, perishables, medical andscientific equipment and non-life sciences products suchas vehicles, spare parts, IT equipment and consumablesfrom UK.

Agility’s team in the UK moved quickly to arrange forthe cargo to be screened and to prepare airway bills for aflight departing from London’s Heathrow Airport. Thesupplies failed to arrive at Heathrow in time. When allthe goods finally made it, the team raced to consolidatethe shipment, get the load re-screened, prepare new

airway bills and documentation to secure space on aconnecting flight to Brussels. There, the load wastransferred to a flight bound for Banjul, Gambia. Thematerials made it to a clinic and research centers inGambia on time and in good condition. Agility staffworked closely with the Medical Research Council staff,suppliers and Gambian import agents to ensure time intransit was kept to a minimum.

In a letter to a colleague in the UK, the MRC directorin Gambia wrote, “Say thanks to the Agility team, it isnice to know that there is professional team caring for uson the other side. Let them know that we consider thempart of our team, too.” ■

MEDICAL RESEARCHThe MRC unit in Gambia is the UK’s single largest investment in

medical research in a developing country and is internationally

recognized for its track record of research into infectious tropical

diseases. Its success is based on innovative lab-based research,

excellent clinical studies and field-oriented science, and the

translation of research into clinical and public health practice.

The unit’s vision is to lead scientific research to save lives and

improve health across the developing world.

Saving Lives and Improving Health

On the horizon inUganda are

bananas withenhanced vitamin

A and resistanceto bacterial wilt

ABOVE LEFT: Genetically-modified bananasare set to improve infant health bycombating the effects of vitamin-A deficiencysuch as blindness, delayed bone developmentand risk of respiratory infections.BELOW: Radios that can be powered by handwindup or via an inbuilt solar panel wereone of the first low-cost solutions to givecommunities in Africa better access toinformation and entertainment.

18

20151

A frica’s Middle Easttrade ties, datingto first millenniumcaravan routes and

shipping lanes, connected thecontinent’s interior tomerchants in the ArabianPeninsula and Asia over thecenturies. Today, much of Africa stillconnects to the world through theMiddle East, which acts as a gateway,facilitator, trading partner, logisticshub and banker.

Standard Chartered Bank says annualtrade between the Middle East andAfrica has grown fivefold over thepast decade from $10 billion to $49billion.

African countries are a majorsource of raw materials for GulfCooperation Council (GCC Services)countries pushing to diversifythrough manufacturing. At the sametime, economic growth is fuelingdemand for Gulf oil in Africa, whichis on the cusp of its own energyboom following recent discoveries ofhuge oil and gas deposits in severalcountries. GCC Services exports toAfrica have grown 15% a year inrecent years; imports from Africa havebeen growing at nearly 28% a year.

“Africa’s importance to the Dubaieconomy is growing with the UAE’semergence as a multi-modal globallogistics hub and transit point,” saysSylvain Kluba, head of Agility GILAfrica. “Dubai’s Jebel Ali port is themost important trans-shipment hubfor East and southern Africa. A lot ofmulti-national consumer companiesare running African distribution fromDubai while they build up regionalhubs in places like Nigeria, Kenya andSouth Africa.”

Dubai has made itself an aviationcrossroads for Africa. Emirates Airline

is leading the chargeinto Africa and hasinvested $7 billion on adedicated fleet and afurther $2 billion foroperating costs to servicethe continent. Emiratesflies to 22 African

countries, more than any otherairline in the world and has plans toadd another 10 countries by 2025, aswell as raising the frequency of flightson some existing routes.

Business communityThe Gulf’s business community isusing Dubai as a base to pursueopportunities across Africa in areasranging from logistics totelecommunications and banking.The city’s import-export operationsand “free zones” are drawing Africanentrepreneurs. Dubai’s extensive poolof expertise in infrastructure, logistics,transport, finance and trade is astrong attraction to African businessesthat want to reach out to potentialcustomers in Europe, North Americaand Asia.

Banks in the Gulf are serving asinvoicing and procurement centersfor operations in Africa. Gulf bankrevenues from Africa have almostdoubled over the last five years.Demand for Islamic finance tools andexpertise, strong in the Gulf, isincreasingly in demand in Nigeria,Kenya and Tanzania. All haveexpressed an interest in issuing sukuk,a form of bond permissible in Islam,targeted at the Middle Easterninvestment market.

Investment in AfricaGulf investment in Africa was $144billion from 2003 to 2012, andanother $61 billion has beenearmarked for projects ininfrastructure, telecoms, logistics,agriculture and energy.

DP World, the Dubai-based portinfrastructure firm, operates containershipping marine terminals in Djiboutiin the Horn of Africa, Senegal in WestAfrica and Mozambique in thesoutheast. Private equity firm, AbraajGroup recently acquired a 51% stakein Fan Milk, a Ghana-based dairy

Trade andinvestment AFRICA’S TIES WITH THE MIDDLE EAST

20151

▼

21Sylvain Kluba, head ofAgility’s GlobalIntegrated Logisticsbusiness in Africa.

Africa’s importance to the Dubaieconomy is growing with the UAE’semergence as a multi-modal global

logistics hub and transit point

2015120151

business. This Abraaj-Fan deal isbelieved to be the largest-ever privateequity purchase of a consumer goodscompany in Sub-Saharan Africa,outside of South Africa. Dubai’ssovereign wealth fund, Investment

Corporation of Dubai (ICD), recentlybought a $300 million stake inNigerian firm Dangote Cement.

In telecoms, UAE giant Etisalat hasbuilt sizeable stakes in AtlantiqueTelecom, which operates in sixcountries in West Africa, as well asTanzania’s Zantel and Sudanese fixed-line operator Canar. Kuwait’s ZainTelecoms played a major role inbuilding up Africa’s mobile network,investing heavily in the region.

Africa’s agricultural potential has

prompted Gulf states to invest heavilyin that sector. Qatar’s Hassad Food, anarm of the country’s sovereign wealthfund, spent $1 billion as part of afarmland development venture inSudan. A consortium of Saudi

agricultural firms invested $40 millionin food production in Sudan andEthiopia, while another Saudi group,Hadco, is reported to have acquired25,000 hectares of Sudanese cropland.Standard Chartered says Gulf countrieshave tended to focus their agriculturalinvestment on seven countries: Sudan,Mozambique, Ethiopia, Tanzania,Kenya, Mali and Senegal.

In infrastructure, Abu Dhabi’s RoyalGroup committed to $16 billion inroad and rail projects across Africa.

Oman’s Hasan Juma Backer Trading &Contracting is developing a $700million dry-port in Ferkessedougou,Ivory Coast.

Improvements neededDespite long-standing regional ties,Africa’s deficient infrastructure,bureaucracy, human resourcesconstraints and corruption are no lessformidable for its Middle East partners.Red tape in Africa is among the worstin the world: A recent report from theAfrican Development Bank says theaverage customs transaction involved20-30 parties, 40 documents, 200 datapoints and the re-keying of 60-70% of

data at least once. Border bureaucracyimpedes the supply chain, stretchinglead times, forcing companies to tie upworking capital in extra inventory andadding to costs. Africa’s regionaltrading blocs acknowledge the problemand pledge improvements.

“Trade between the Middle Eastand other regions – Southeast Asia andEurope, for example – still dwarfs itstrade with Africa,” Kluba says. “Butthat is changing fast.” ■

Peru

Redington, a major distributor of IT and computerproducts in Nairobi, Kenya, struggled to maintainits stock of high-value laptops, printers andproducts imported from an American manufacturer.

It was plagued by theft, late deliveries, and high storagefees. These problems led to dissatisfied customers, higherinsurance premiums and mounting operating costs.

Redington was not getting the level of service it wantedfrom other logistics providers, so it turned to Agility forhelp. Redington wanted to fix its security issue – fast –and wanted to increase the speed of delivery and avoidescalating storage and demurrage costs.

Agility reviewed Redington’s security andwarehousing system, identified the flaws, and proposedchanges that would improve the integrity of itswarehouse and transportation security. Among theproposed changes: safety measures such as putting armedguards in trucks, installing seals that send out SMS alertswhen tampered with, GPS tracking of trucks from originto destination, and remote immobilization of truckengines.

Night journeys are also avoided as much as possible.And on rare occasions when stocks arrive late at nightfrom the airport or sea port, they are stored in Agility’s

secured yard, manned by armed guards, until Agilitydelivers the goods to Redington’s warehouse the nextmorning.

In addition to road freight, Agility handles customsclearance for Redington and works to minimize extendedstorage costs due to customs valuation or documentationissues. Agility also provides daily and continuous updateson the status of cargo, giving Redington total visibility toits stock.

It didn’t take long for Redington to see remarkablechanges. Warehouse and transportation security changesimplemented by Agility reduced incidents of theft toalmost zero. With significantly fewer losses, Redingtoncould fulfill more orders on time, satisfy its customers,and lower its insurance premiums. ■

22 Trade and investment

Security upgrades improve bottom line

Agility manages Africa logistics for a

number of customers from Dubai. It

distributes apparel and sporting goods to

20 African countries for one of the world’s

leading athletic brands and manages

warehousing and distribution of more than

24,000 spare parts for a leading

automotive manufacturer with a network

of dealers throughout Africa. Agility’s

Dubai team also helps a top global mobile

phone provider distribute 800,000

handsets each month from four

manufacturing locations in Asia to 14

African destinations.

WAREHOUSING AND DISTRIBUTION

Warehouse andtransportation security

changes implemented byAgility reduced incidents of

theft to almost zero

20151 20151

One of the most dramaticsteps African countries cantake to boost growth, tradeand connectivity is to

sweep away arcane rules that restrictcommercial aviation, often to protectnational “flag” carriers.

In 1999, 44 African countries pledgedto liberalize by signing the YamoussoukroDecision that committed them toderegulation of air services, promotionof regional air markets and opening totransnational competition. Sixteen yearslater, implementation has been “slow andlimited,” according to the InternationalAir Transport Association (IATA).

“Liberalizing would lower fares,improve safety, increase traffic andunlock growth in African economies,particularly the 16 landlocked countries,”says Hassan El Houry, CEO of Agility’sNational Aviation Services (NAS).

A recent study for the IATA by

InterVISTAS, an aviation andtransportation consulting group, showshow quickly there is a payoff for aviationliberalization. Sweeping away restrictionswould allow air travel by “severalmillion passengers who can now travelby air, but who are currently unable todo so for reasons of cost, flightavailability or convenience,” the IATAreport says.

The benefits, according to IATA:

● Fare reductions of 25%-35%● New routes, more flights, increased

traffic and direct service betweenmore countries

● Dramatic time savings for travelers(e.g. 4.5 hours Algiers direct toLagos vs. today’s 9 to 17 hoursAlgiers-Casablanca-Lagos)

● 155,000 direct jobs and $1.3 billionin annual GDP in the 12 largestAfrican economies

● $1.3 billion in additional tourism inthose 12 countries

Deregulation could have a profoundeffect in ending the isolation ofmillions of Africans, who account for12% of the world’s population butonly 1% of its air market.

“The record of deregulation in Africais a good one. South Africa, Kenya andEthiopia are the leaders in that area,and they have the strongest, mostcompetitive carriers,” El Houry says.

The World Trade Organization sayspassenger volumes increase an averageof 30% after liberalization. Liberalizationof routes between South Africa andKenya in recent years led to a 69% risein passenger traffic. Low-cost carrierservice between South Africa andZambia lowered fares 38% andincreased traffic by the same amount.

Liberalization entails nine distinct“air rights” involving freedom tooverfly territory of other countrieswithout landing there, to makerefueling stops, and to carry passengersand cargo between countries.

“You get all kinds of knock-oneffects. Businesses are more productive.They can visit customers and look fornew markets cheaper and morequickly,” El Houry says. “Countriesthat have liberalized see immediate jobcreation and investment in offices,

manufacturing and warehousingclustered near the airport. They canattract production because there willbe efficient air cargo and the ability todo special handling of raw materials,perishables, pharmaceuticals, high-techgoods and products that are part ofjust-in-time inventory supply chains.”

Rwanda has invested in airportexpansion and development,increasing traffic 30% in two years atKigali International Airport, and IvoryCoast is set to do the same at AbidjanInternational Airport. “They knowthere are spin-off benefits for the largereconomy if they get the aviation pieceright,” El Houry says. ■

Aviationneedsoverhaul

Aviation needs overhaul

NAS, a specialist in aviation services

for frontier and emerging markets, is

working with aviation authorities in

several African countries to modernize

infrastructure and introduce world-class

ground handling and other services.

REGISTERED AIRCARRIER DEPARTURES*ANNUALLYWorldwide 31.1 million

USA 9.7 million

Sub-Saharan Africa 631,000

* These are domestic takeoffs and takeoffsdestined abroad of air carriers registered in thecountry.

25

Liberalization willunlock growth,especially in thelandlockedcountries.

20151 20151

To connect better to the world, African countrieshave to improve connections to one another. Intra-African trade accounts for only about 11% ofAfrica’s total trade. Agility, which has built world-

class logistics and distribution parks in China, India, UAE,Kuwait, Iraq, and Jordan, believes the same idea will spurtrade between African countries.

Industrial parks dedicated to distribution and logistics are“one of the most important infrastructure investments thesecountries can make,” says Ajay James, CEO of Agility RealEstate. “You need intra-African connections between majorhubs. Look at Tanzania, as an example. It’s a large countrybordered by eight others, and six of those are landlocked. Soits border is a vital conduit for other countries.”

Even now, transport costs in landlocked Africancountries are as much as 75% of the value of exports. Poorroads alone add an estimated 40% to transport costs incoastal countries and 60% in landlocked countries. The costof shipping a 40-foot container from Dubai to Mombasa,Kenya is $1,400 to $1,700. But it costs about $3,800 to movethat same container inland from Mombasa to the Ugandancapital of Kampala.

Agility broke ground in June 2014 on a multi-purposetransport park near the Kenya-Uganda border and has plansfor distribution parks elsewhere in East Africa, West Africaand southern Africa. “You can speed the flow of goods andtraffic, enhance border security, improve fee and revenuecollection, and create jobs,” James says. “There is substantialtime lost at the border due to poor infrastructure in theseinterior countries.”

Existing logistics infrastructure is being overwhelmed bythe pace of urbanization and population growth in Africa.That trend will continue: Africans number roughly onebillion today but will be 2.4 billion by 2050. By 2030, halfthe population will live in cities, and a decade from now,

the number of African cities with more than a millionresidents is expected to increase from 52 to 68.

Urbanization, population growth and growing investorinterest are the main factors behind rising property pricesacross Africa. The best ground for logistics parks is at majortrade gateways like ports and border crossings, along mainhighway hubs and near existing logistics clusters.Complicating the search for good sites is competition fromreal estate speculators, difficulty obtaining clear titles and, insome cases, a lack of government mapping of plots and tracts.

Agility “knows how to overcome challenges in frontiermarkets, how to be flexible,” James says. “The work we didin the Middle East and South Asia and other emergingmarkets trained us well for getting into Africa.” ■

Agility distribution parksAgilitydistribution parks

Uganda’s capital Kampala, pictured here, isheavily reliant on Kenya’s ports and the east-westroad corridor. Agility is creating a distributionPark in Busia, just inside the Uganda-Kenyaborder, to provide much needed additionalwarehousing and customs management.

Know-how infrontier markets is

giving Agility acutting edge.

The logistics parks developed by Agility

vary, depending on local needs and

requirements. In many, Agility provides 3PL

and 4PL logistics services. Features

available:

● Bonded, unbonded warehousing

● Container, lay-down yards

● Weighbridge

● Customs inspections area

● Customs, police, border, tax,

management offices

● Fuel, maintenance facilities

● Material handling equipment

● Security

● Business center

● Retail/restaurants

● Banking

● Firefighting station

● Overnight accommodations

● Cold storage and cold chain storage

● Facilities for handling chemicals,

agricultural goods

● Training centers

AN AGILITY DISTRIBUTION PARK: WHAT’S INSIDE?

Poor roads alone add anestimated 40% to transport

costs in coastal countriesand 60% in landlocked

countries

27

Peacekeeping supplies

20151

Agility Defense & Government Services (DGS)works with governments and NGOs to deliverequipment and supplies to hotspots around theworld.

Central African Republic The international peacekeeping force in Central AfricanRepublic (CAR) has worked to end the sectarian violencethat broke out there in 2012, a job that includes trying tostabilize conditions so that relief can be delivered tohundreds of thousands in need of shelter, drinking water,health services and proper sanitation.

The mission, known as the Multidimensional Integrated Stabilization Mission in the Central AfricanRepublic (MINUSCA), needed heavy equipment and supplies that were available in Pakistan moved to landlocked CAR.

Agility DGS mobilized to collect critical shipments ofgeneral cargo infantry carriers, armored recovery vehicles(ARVs), ambulances, jeeps, bulldozers, and static water tanks.In Karachi, MINUSCA counted on Agility to provide localmovements, transportation, unloading, stevedoring, physicalsurvey, port wharfage and documentation.

The equipment was bound for Door Kaga Bandoro in theCAR but had to transit through Douala Seaport inCameroon. There, Agility managed the stevedoring andshore handling of the equipment, arranging for temporarystorage. Agility conducted physical surveys and loaded truckconvoys from Douala for the 700-mile move over the borderinto CAR to Door Kaga Bandoro.

The 7,600 troops, police, military observers, civilian staffand local employees that are part of MINUSCA are workingto protect civilians, meet humanitarian needs, promotehuman rights, and support political transition.

Feeding the Peacekeepers in Somalia African peacekeeping troops deployed to Somalia have beenvital to efforts to begin to restore peace and stability thereafter decades of violence and civil war caused by extremists,warlords and shipping pirates. The ability of thepeacekeepers to be effective operationally has depended inpart on logistics support from Agility and others.

In August 2009, Agility DGS was tasked with procuring,transporting and storing food rations and perishables for8,000 peacekeeping troops in Somalia. The challenge was totransport goods including fresh fruits and vegetables, reserverations, food and bottled water, and other equipment toKenya’s Mombasa Seaport and the Mombasa Airport, and to

the Port of Mogadishu in Somalia in support ofpeacekeeping troops there.

African peacekeepers are part of the African UnionMission in Somalia (AMISOM), the force deployed toSomalia by the African Union with the approval from theUnited Nations.

The international peacekeeping force in Somalia countedon Agility to handle customs clearance, air transportation,freight forwarding, ground handling, logistics coordinationand security as needed for critical cargo in Somalia and Kenya.

The work also included the supply and delivery ofrefrigerated containers, generators, and all fuel required forthe performance of the contract. The Agility team was able

to work seamlessly to consolidate all international air andlocal land transportation of the shipments to a centralizedwarehouse in Mombasa. There, Agility managed andoperated warehouse facilities, including cold and freezerstorage units, tapping into its global expertise in support ofcritical operations.

Manjot Dhooria, an official in charge of rations for themission, said: members of his team “applaud the efforts byAgility to achieve food safety and overall quality assurancein its warehouses in Mombasa.” Dhooria also noted Agility’sefficiency and said: “Agility supplements these efforts withwell-coordinated regular staff training and written plans ofprocedures and documentation activities.” ■

Peacekeepingsupplies

Logistics coordination andsecurity for critical cargo

Mobilizing todeliver vital

equipment andfood supplies

29

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31

20151 20151

Since gaining independence, South Sudan has gonefrom relative peace to political infighting andviolence requiring the assistance of the UnitedNations and aid organizations. There have been

major logistical hurdles to overcome in positioning personneland supplies.

Supporting UN operationsJapan was one of the countries that the United Nations calledon to help with a peacekeeping mission after South Sudanwon independence in 2011. Japan activated its Self-DefenseForce (JSDF), dispatching troops, an engineering unit and alocal support coordination unit. Their mission was to helpbuild badly needed infrastructure such as roads, bridges anddrainage.

South Sudan is a landlocked country that’s 1.7 times thesize of Japan. The JSDF set up its headquarters in Juba, SouthSudan’s capital, to coordinate and consult with the UN, the

South Sudan government and other organizations. To get upand running quickly, the headquarters needed basic suppliesto equip offices and living quarters for its contingent of morethan 200 JSDF troops – paper, office furniture, garbage bags,disposable tableware and other necessities. The goods wereunavailable in Juba.

Agility was able to locate and transport the suppliesquickly. The Agility team in neighboring Uganda worked

SouthSudanA NATION IN FLUX

South Sudan gained independence from Sudan in July 2011 followinga referendum that passed with more than 98% of the vote. The countryhas six international borders, with: Sudan, Ethiopia, Kenya, Uganda,DR Congo, and Central African Republic.

▼

20151

32 South Sudan

20151

Uganda has recoverable oil reserves estimated atmore than 1.4 billion barrels. As exploration workcontinues, this figure could substantially increase.Additionally, reserves of 500 billion cubic feet of

gas hold the promise of electricity generation and theproduction of liquefied natural gas.

Partnering with O&G companies To begin producing oil at Uganda’s Lake Albert, theinternational energy companies that are part of Lake AlbertDevelopment Group are looking at what it will take tohaul equipment and supplies inland from the nearest ports,which are at least 2,000 km away in Kenya and Tanzania.

Agility, which has oil and gas expertise globally andregional expertise in Houston, Aberdeen, Dubai andSingapore, meets regularly with the consortiumcompanies Tullow Oil, Total and CNOOC. The idea is tohelp them find answers to such questions as what shouldmove by road and what by air, what should becontainerized versus breakbulk, and how to support andsustain a complex drilling project over a long period.

As part of that effort, Agility has met with the groupto discuss the challenges the members confront and toshow best practices that Agility has developed elsewhere:

● Planning of moves that involve environmental andcultural sensitivities, as with massive natural projectsin Papua New Guinea and Australia.

● Preparation of route surveys in remote and isolatedareas, such as Central Asia.

● Development of safety programs and driver trainingacademies like those in the Middle East.

● Safe transport of crude and finished products modeledafter work for other demanding energy customers andfor NGOs.

● Shipment of out-of-gauge and breakbulk materialrequiring aviation and ground-handling expertise.

● Construction, maintenance and operation of home-away-from-home camps, along the lines of those inharsh environments in the Middle East and Indonesia.

● Development of local talent and identification ofreliable local suppliers and vendors.

The Lake Albert project stands to benefit from a much-needed transportation park that Agility is developing in

the Ugandan town of Busia on the border with Kenya.Plans originally called for a simple parking lot for trucks.Agility proposed a more ambitious facility that wouldcontain offices for the Uganda Revenue Authority,inspection bays, bonded warehousing, open-yard storagefor oil-and-gas equipment and pipes, a commercialbuilding and a fuel station. Groundbreaking took placein June 2014.

Facilities maintenance Two of the toughest obstacles for the internationalenergy companies moving into East Africa areestablishment of camp services and hiring of local talent.

One company turned to Agility’s GCC Services in2012 for facilities management at offices and residencesin the capital of Kampala, facilities at EntebbeInternational Airport, and field locations in and arounddrilling sites. The job included full camp and fieldmaintenance in Kisiinja and Bulisa.

The company needed skilled workers – electrical,civil, maintenance – hired from the local population.Agility GCC Services was able to find individuals withthe right expertise, but most lacked the internationalcertifications that the customer required becausecertification was unobtainable in Uganda. GCC Servicesand its customer worked on an extensive training andknowledge-transfer program to get local maintenanceteams certified. In the meantime, GCC Services Ugandahas been ISO 9001 certified and aims soon to be ISO 14001certified.

GCC Services is now upgrading the camp totransform existing camps at Bulisa and Kisiinja intomore comfortable, efficient ones. Working with a localconstruction firm, GCC Services helped the oil companyprocure as many services as possibly locally. GCC Servicesbuys 98% of its materials in Uganda. ■

Uganda oilclosely with GCC Services and Tristarfrom Agility’s Infrastructure group tocarry out the mission, locatingsuppliers in the Ugandan capitalKampala that had what the JSDFneeded. After purchasing thesupplies, Agility prepared customsdocumentation, loaded theshipment onto a truck headed forJuba, a 320-mile journey.

The cargo hit a bottleneck at theborder, which was closed because ofa truckers’ strike. When the strikeended two days later and the borders reopened, Agility’sclose relationship with customs brokers in both countrieshelped ensure its truck crossed promptly into South Sudan.Agility delivered the goods to JSDF in Juba ahead of schedulefour days later, much to the delight of officials from Japan’sMinistry of Defense, who did not expect the shipment sosoon.

Overcoming obstacles to deliver fuelThe political infighting that erupted between SouthSudanese leaders in late 2013 has since uprooted 1.5 millionpeople and put more than 7 million at risk of hunger anddisease. In addition to armed conflict, relief groups and theirlogistics providers have to deal with the country’streacherous terrain, severe weather and malarial swamps. Inthe dry season, they race to pre-position life-saving andlivelihood supplies, and carry out repairs to roads, airstripsand other facilities needed for aid operations.

Fuel specialist Agility TriStar transports fuel topeacekeepers and relief workers in camps in South Sudan, ajob that requires tenacity and creativity. The work is difficultand dangerous but necessary to the efforts to bring stabilityand deliver humanitarian relief.

Moving fuel by road over long distances is impractical.Only a small percentage of roads in South Sudan are paved.Most secondary roads are unpaved and in disrepair. During

rainy season, many roads areimpassable. Another option, airfreight, is limited by high operatingcosts and the need for time-consuming aircraft modificationsand installation of the fuel tanks.

TriStar has become master of therivers, engineering its supply chainaround barge movements totransport the fuels. TriStar buildsand commissions fuel barges to suitthe different storage and movementneeds. It uses two customized 600

cubic meter barges and a pusher tug to move large volumesof fuel up the Nile River from the South Sudan capital ofJuba to depots in the north. To distribute fuel from theMalakal depot to more isolated areas, TriStar uses smaller,self-propelled deck barges.

Medical aid, hope in a humanitarian crisisAgility’s humanitarian partner, the International MedicalCorps (IMC), has worked to address outbreaks of hepatitis C,cholera and malaria among those displaced by the conflictin South Sudan.

While IMC provides medical services to about half amillion refugees in South Sudan, Agility has deployedresourceful logisticians to maintain the humanitarian supplychain so relief goods can flow into the camps.

The United Nations has declared South Sudan a level-3emergency – the worst level of humanitarian crisis. Aid isdelivered in extremely challenging circumstances. Hostilitiesand attacks against humanitarian workers constrain access tothose in need. The situation is worsened by torrential rainand floods that render roads unusable.

The team of Agility volunteers planned transport aircharters, helped manage the IMC ground fleet, and set upwarehousing facilities to store and distribute relief supplies.They also readily shared their knowledge in supply chainmanagement with the IMC logistics team.

In addition to delivering relief goods, Agility saved theIMC more than $100,000 through supply chain planning.

Sean Casey, South Sudan Country Director for the IMC,said the organization was grateful to Agility “for bringing itsunparalleled expertise in global logistics to InternationalMedical Corps’ emergency response in South Sudan. Due toAgility’s critical support, our team was able to more efficientlyand effectively deliver humanitarian relief in an extremelychallenging environment, ultimately saving lives.” ■

In addition to deliveringrelief goods, Agility saved

the IMC more than$100,000 through supply

chain planning

35Difference makers

20151 20151

DifferencemakersAGILITY CSR IN AFRICA

I n teams and as individuals, Agility employees around theworld are supporting African communities where targetedefforts offer the chance to make a big difference ineducation, health and the environment. The company

matches most of these efforts with dollar-for-dollar donations.

For example, in Sierra Leone, Agility Middle East employeesprovided financial support to the All as One Children’sCenter, which feeds, cares for and educates 100 orphanedand abandoned children.

“Agility has been rapidly growing its commercial andinvestment portfolio in Africa,” says Frank Clary, Agility’sDirector of Corporate Social Responsibility (CSR). “We aresimultaneously developing and implementing a broad CSRstrategy that will promote education, facilitate employment,and develop local prosperity.”

Martin Sequin of Agility Switzerland raised enoughmoney to pay the annual salary of a World Wildlife Fundforest ranger in Madagascar, plant 180 fruit trees andprovide needed seeds for other plants. In the village ofTienfala, Mali, where Agility DGS France was working on awaste-treatment project, Agility provided hygiene productsand instructional materials, along with high-quality surplusmosquito netting, tents and sustainment equipment.

In 2014 students at Camp Kenya in Kwale, Kenya startedthe school year with backpacks, pencil cases, badges andother supplies sent by Agility Fairs & Events UK employees.Agility Tasmania in Australia worked with Care for Africa tomove a container of donated medical and school supplies toKing’ori Primary School in Tanzania.

In North Africa, Agility employees have been just asactive. Agility Egypt employees refurbished five schools inthe city of El Fayoum, distributing books and supplies,

installing water treatment equipment, providing newcomputers and windows, donating playground equipmentand preparing first aid kits. Agility UK’s Eve Allen recentlyreturned from Morocco, where she worked with orphansand the homeless, and donated food, arts and craftsmaterials, games and toys to children in need.

Since 2007, Agility UK and Spain have partnered with theGreat Football Giveaway, a non-profit organization, to finance

the logistics and transport to send thousands of footballs,netballs and pumps to poor children in Angola, Rwanda,Tanzania, Uganda, Zambia, Malawi and the Democratic Republicof Congo. The equipment has gone to schools, orphanages,community centers, refugee camps and youth centers.

Clary says Agility’s long-term social investments inAfrica will focus on areas intended to boost economicgrowth and prosperity through community-level educationinitiatives. In Africa, Agility frequently partners with non-governmental organizations supporting elementary educationand professional, technical and vocational training.

“We realize this isn’t a one-way thing. Agility benefits bystrengthening ties with local communities and governmententities, building capacity to run our business, andgenerating future demand for goods and services. Plus ouremployees get to make a positive impact on peoples’ lives,and this makes a big difference to Agility and to those whobenefit from our employees’ engagement. It’s a win-win foreveryone when Agility operates anywhere.” Clary says. ■

Agility has been rapidlygrowing its commercial andinvestment portfolio in Africa

36

20151

Global Integrated Logistics

International HQ Baar, Switzerland

Tel: +41 41 766 5270

gil@agility.com

Africa Uganda

Tel: +256 754 239 246

AmericasIrvine, California, US

Tel: +1 714 617 6300

Asia PacificSingapore

Tel: +65 6463 9868

EuropeBasel, Switzerland

Tel: +41 61 316 5555

Middle East Dubai, United Arab Emirates

Tel: +971 4 813 1222

ChemicalsLiverpool, UK

Tel: +44.151.494.5900

Fairs & EventsSingapore

Tel +65 6463 9868

Project LogisticsHouston, Texas, US

Tel: +1 713 452 3500

Infrastructure Companies

Defense & Government ServicesAlexandria, Virginia, US

Tel: +1 703 417 6000

dgs@agility.com

Real EstateSulabiya, Kuwait

Tel: +965 1 809 222

red@agility.com

National Aviation ServicesFarwaniya, Kuwait

Tel: +965 1 842 842

info@nascorporate.com

Inspection & Control Services, LtdSulabiya, Kuwait

Tel: +965 2498 1256

BKhoury@agility.com

Metal and Recycling CompanyAmghara, Kuwait

Tel: +965 2457 7773/4

mrc@mrc.com.kw

GCC ServicesKuwait City, Kuwait

Tel: +965 232 3350/1/2/3

info@gcckwt.com

United Projects for AviationServices Company (UPAC)Kuwait City, Kuwait

Tel: +965 1 833338

upac@upac.com.kw

Other EnquiriesCareer Opportunitiescareers@agility.com

Mediapress@agility.com

Investorsinvestor@agility.com

Tradelanes is the magazine of Agility,published by Agility Holdings Inc,240 Commerce, Irvine, California, 92602, US.

Editor in Chief Jim Cox Managing Editor Nita Bhatkar Consultant Editor Richard PavittDesign Paul Cooper DesignProduced by Nugene Ltd and printed in England.

Editorial CoordinatorsGlobal Integrated Logistics (GIL)Toby Edwards tedwards@agility.com

Africa Deanne De Vries ddevries@agility.com

Americas Josh Rogers jorogers@agility.com

Asia Pacific Gerald Lim glim@agility.com

Europe Vanessa Dethorey vdethorey@agility.com

Middle East James Gildea jgildea@agility.com

Chemicals Mark Ridge mridge@agility.com

Fairs & Events Jennifer Lim jlim@agility.com

Project Logistics Amy Grizzaffi agrizzaffi@agility.com

Defense & Government ServicesJim Cox jcox@agility.comSarah Benrazek sbenrazek@agility.com

InfrastructureNita Bhatkar nbhatkar@agility.comMichel Karam mkaram@agility.com

Corporate MarketingMariam Al Foudery malfoudery@agility.comGerald Lim glim@agility.comNita Bhatkar nbhatkar@agility.com

© 2014 Agility Holdings Inc.All rights reserved.

Copyright of Tradelanes, and the Agility trademark areowned by Agility.Other trademarks reproduced in this magazine are theproperty of their respective owners.

For more information about Agility, visit www.agility.com Twitter: https://twitter.com/Agility_NewsLinkedIn: http://www.linkedin.com/company/agilityYouTube: http://www.youtube.com/user/agilitycorp

Locations

Agility brings efficiency to supply chains in

some of the globe’s most challenging

environments, offering unmatched personal

service, a global footprint and customized

capabilities in developed and developing

economies alike. Agility is one of the world’s

leading providers of integrated logistics. It is a

publicly traded company with $5 billion in

revenue and more than 22,000 employees in

500 offices across 100 countries.

Agility’s core commercial business, Global

Integrated Logistics (GIL), provides supply chain

solutions to meet traditional and complex

customer needs. GIL offers air, ocean and road

freight forwarding, warehousing, distribution, and

specialized services in project logistics, fairs and

events, and chemicals. Agility’s Infrastructure

group of companies manages industrial real estate

and offers logistics-related services, including e-

government customs optimization and consulting,

waste management and recycling, aviation and

ground-handling services, support to governments

and ministries of defense, remote infrastructure

and life support.

About Agility