Conference report-comesa-ria-2011-50

Conference Report
23 – 24 March 2011 Dubai, UAE

Under the patronage of H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and
Prime Minister of the UAE and Ruler of Dubai.

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4th COMESA Investment Forum
ContentsContents
Preface 5
Executive Summary 6
Programme 11
Session Summaries
Official Opening Remarks 16
Keynote Address 17
Plenary Session: COMESA – Dubai: The New Business Opportunity 18
Parallel Session: Trade – Dubai - Africa: Strengthening Trade Links 21
Parallel Session: Finance – New Models for Financial Growth 23
Parallel Session: Logistics – Identifying Opportunities in Logistics 27
Parallel Session: Agriculture/Agribusiness – Tapping into the Market:
What are the Opportunities? 29
Parallel Session: Infrastructure – The Infrastructure Gap 32
Parallel Session: Finance – Private Equity 35
Bloomberg TV Debate 37
Plenary Session: Investing in COMESA: Reality versus Perception 39
Investor Success Story 42
Parallel Session: Trade – Increasing Intra-African Trade 44
Parallel Session: Logistics – Ports: Engine for Trade in the COMESA Region 46
Parallel Session: Infrastructure – The Importance of Connectivity for doing Business 49
Parallel Session: Finance – Strengthening COMESA’s Capital Markets 52
Dubai TV Debate 54
Parallel Session: Logistics – Rail: Key Drivers for Investment 57
Parallel Session: Agriculture – Moving up the Value Chain: Value-Added Processing 60
Parallel Session: Infrastructure – Energy: Powering COMESA 62
Plenary Session: Becoming Tomorrow’s Fast-Growing Emerging Market 64
Closing Remarks 67
About the Organisers 68

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PrefacePreface
F
ollowing the recent financial crisis and funda-
mental shifts in global economic power, the
Common Market for Eastern and Southern Africa
(COMESA) finds itself in a stronger position as
an attractive destination for investment, with its
growing and diversifying economies.
Investors are increasingly interested in the possibilities the
region has to offer. This became evident on the 23–24 March
2011 when more than 1,500 participants from over 80 differ-
ent countries flocked to Dubai to be part of the 4th
COMESA
Investment Forum. Also in attendance were 14 senior
ministers and leading personalities representing some of the
largest businesses in Africa and the world.
In line with the theme of the 2011 Forum, “Unlocking the
Markets of the Future”, the event uncovered investment
opportunities in the new emerging markets that make up
COMESA, the largest economic bloc on the African conti-
nent.
Participants gained a better understanding of what it means
to do business within the COMESA Member States and
forged new partnerships with policy makers and business
leaders alike. Seasoned investors shared their success stories,
emphasising that the returns on investment in the region
are considerably greater than in more mature markets and
even other emerging markets. Policy makers pointed to the
great strides that have been made in terms of improving the
investment climate, and implementing a regulatory and legal
framework that is conducive to doing business. The Forum
focused on five sectors: agriculture/agribusiness, trade,
logistics, finance and infrastructure.
The following pages provide an overview of the discussions
and detailed summaries of the sessions that took place dur-
ing the two-day Forum, examining the main issues impact-
ing on the key sectors. Initiated by the COMESA Regional
Investment Agency (RIA), the 2011 edition of the COMESA
Investment Forum was organised in collaboration with Du-
bai Chamber of Commerce & Industry, under the patronage
of His Highness Sheikh Mohammed bin Rashid Al Mak-
toum – Vice President and Prime Minister of the UAE and
Ruler of Dubai.
COMESA’s Member States include: Burundi, Comoros, DR
Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya,
Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan,
Swaziland, Uganda, Zambia and Zimbabwe.

6
COMESA – the Business Destination
COMESA is Africa’s largest economic community, comprising
19 Member Countries stretching from the north to the south of
the continent. Plentiful natural resources, a constantly growing
population, an emerging middle class in need of new products,
an increasingly aspirational youth and growing stability make it
a vibrant economic community.
The ideologies of the countries in COMESA are aligned: every
state wants to move into capitalist market economies. This has
helped the economic development of the region, which has
seen a sharp increase in cross-border and foreign investments
in the last decade, particularly from ‘newcomers’ such as Brazil,
China and India.
With a collective GDP of more than USD 70 billion, COMESA
provides many opportunities for investment in various fields,
particularly logistics, tourism, energy, infrastructure and
mining. Investments in COMESA countries are not restricted
to resources: value addition is equally on the rise.
The region has become especially interesting for investors
because of its high rate of return, which has stood at a
staggering 29% since the 1990s, as opposed to the EU’s 10%.
Until the financial crash in 2008, COMESA states’ GDP
increased by 7% a year, as a result of stable macroeconomic
environments, and liberalised capital accounts and markets.
What is crucial is the unity of COMESA – only by
strengthening the economic bloc can the region emerge as a
strong entity. COMESA is also dedicated to cooperating with
other regional economic communities, such as SADC and the
EAC, in order to put Africa more prominently onto the global
market.
The Reality of Doing Business
Investors see COMESA as a growing region where many
reforms and developments are currently under way.
Noteworthy is the commitment of both governments and
policy makers, which are keen to engage with business leaders
and support investors. Many reforms have been put in place,
creating an environment that is conducive to doing business.
Each COMESA state has an investment authority, as does the
COMESA region as a whole. This ensures that all requisite
licences are easily acquired in COMESA countries and all
processes go smoothly. However, reforms still need to be
unified and harmonised more effectively, particularly in terms
of rules, policies, legislative powers, the labour environment,
education and the movement of capital.
Branding is of vital importance, particularly as Africa is often
perceived as one big country. At the same time, every country
in Africa is a case study on its own. There has been much
general stereotyping due to ignorance, which has negatively
impacted on investment prospects. The negative image of
Africa in the media is still blocking investment. This needs to
be changed in order to open doors and fuel investments.
While there is increasing awareness around the world of what
is happening in Sub-Saharan Africa, not enough information
is available. Opportunities for business in the region need
to be publicised, with information about them more widely
distributed. For this purpose, investment authorities have been
established in each COMESA country.
However, investors who come into Africa ‘trip up’, not on
the macro, but on the micro level, such as corruption. By
partnering with local business people who know the markets,
this can be avoided. Reliable local partners are key for
international investors – they can assist with all matters related
to the day-to-day issues of investing in the region.
The biggest problem facing the growth of investment in
Africa is talent. Finding good employees and managers can be
difficult. However, this has been changing recently, because
the financial crisis has led to many trained Africans returning
home.
The COMESA – Dubai Business Partnership
The 4th
COMESA Investment Forum was a further step in
strengthening the partnership between COMESA and the UAE.
Speakers from both the UAE and COMESA highlighted the
importance of intensive collaboration between the two regions.
Through this, they insisted, win-win situations will be created
which will be beneficial for communities and businesses alike.
Their geographical location and proximity make both regions
Executive Summary
H.E. Sindiso Ngwenya, Secretary General, COMESA (right)
shaking hands with H.E. Hamad Buamim, Director General,
Dubai Chamber of Commerce & Industry

7
natural strategic partners.
Today’s trade relations between the UAE and the COMESA
countries reflect a historic relationship, which commenced
when the lands making up the modern UAE connected Africa
to the Silk Road. The past trading relationships between the
Gulf region and Africa have now evolved to include more
sectors of the economy.
Dubai’s success story is widely recognised and admired: it
has exploited its geographic position and progressed with
creativity and innovation. Hence COMESA, in many ways
boasting similar preconditions to Dubai, should learn from
the Dubai experience, particularly in terms of its effectiveness
and speed, in order to improve its national and international
competitiveness.
But Dubai can serve as more than just a model for the region.
Through its facilities (such as technology, infrastructure, free
zones, zero trade barriers, and global market access), Dubai
can also serve as a gateway which links Africa, and specifically
COMESA, to the world. Dubai is a re-export centre for goods
coming both in and out of Africa, thus making it an ideal entry
point into the continent.
At the same time, Dubai can take advantage of COMESA’s
growing consumer markets, natural resources and vast tracts
of land to ensure its food and water security. The boundless
resources the COMESA countries have to offer (such as
minerals, foodstuffs, etc) will continue to foster trade between
the two regions and encourage dialogue on development and
business facilitation.
COMESA and Dubai must focus on business partnerships
rather than governmental partnerships. This has already
happened, and is evident through the various projects the UAE
is involved in on the continent, such as the Port of Djibouti, or
through the telecoms giant Etisalat. More business partnerships
are arising.
To continue this relationship between the two regions and to
facilitate the exchange of information, it was decided that a
COMESA Regional Investment Agency representative office
will be established in Dubai.
Trade
A central topic was trade. The main issues discussed were how
trade can be increased, not only within the COMESA region
but also within Africa, and how the region can be positioned
more prominently onto the global trade platform.
Much has already happened to increase trade. The nineteen
countries have agreed to harmonise laws and implement duty
free agreements. The recently launched COMESA Customs
Union will be operational in the next few months. At the same
time, institutions such as the COMESA Clearing House and
the African Trade Insurance Agency have been set up to help
businesses mitigate risks. Various financial institutions also
support businesses with trade finance tools. The region’s biggest
weakness is infrastructure, which needs to be improved if
COMESA is to compete more effectively.
Intra-African Trade
Although a large part of Africa’s population works in small
and medium enterprises, the main issue is exporting to
neighbouring countries, not to Europe. COMESA is already
seeing substantial cross-border trade and investment, especially
in the manufacturing and services sector, but this can only be
increased through diversification of the economy.
Infrastructure development is key to promoting intra-
African trade: railways and road networks need to be developed
rapidly, as well as storage facilities to allow farmers to store
perishable goods before distribution. There are plans to set
up a commodity exchange in COMESA, which will involve
commodity-holding warehouses – this concept will make it
easier for farmers to trade their produce.
The Trade Relationship with the GCC
Although there is considerable trade between COMESA and
the Gulf, most exports from the COMESA region to the Gulf
are low-value goods, while imports into the region from the
Gulf are value-added goods, oil or oil products. COMESA
makes up 52% of the UAE’s total trade with Africa. Trade has
increased tenfold in a decade, and the volume of trade between
the UAE and COMESA countries amounts now to
USD 6.2 billion.
A big component of trade from COMESA coming into the
GCC is from Egypt.
While COMESA is a commercial bloc, it is still important
to look at trade and investments going to, and coming from,
individual countries.
Finance
Opportunities in Finance
The African financial sector offers many opportunities and
has seen tremendous growth in the last 15 years. This is due
to a rising bankable population; infrastructure development;
regional organisations that are helping to increase efficiency
and mobility; a general movement towards democratisation;
the transformation of Africa’s main sectors; and a sustained 5%
growth rate.
The demand in Africa for financial services and products is
growing and promises to be profitable.
On top of this, the political developments in the Middle East
and North Africa will open up many opportunities for the
region’s economies and particularly the financial sectors.
This is already visible in Tunisia, where many micro-finance
institutions have emerged in the weeks following the revolution.
Despite SMEs forming the backbone of the economy, it is
still particularly difficult to find funding from large banking
and financial institutions. Private capital is also hard to come
by. This sector can be banked, but there is a need to develop

8
special programmes – lending needs to be more inclusive of
the bottom of the business pyramid. Technology is one of the
biggest drivers of equity: mobile banking is making banking
much easier, particularly within the SME sector. In light of this,
technology promises to be the biggest driver of inclusion.
Islamic banking offers an alternative opportunity for the
financial sector in COMESA, as most commodities and the
infrastructure are suitable. However, unless there are huge
demands for Islamic banking, there are structural concerns that
will hinder its development.
While there are still many gaps in COMESA’s financial sector
that will need to be addressed, it has been transformed rapidly
in the last couple of years – a transformation that has taken the
developed world over 200 years.
Private Equity
Private equity has changed, and continues to change, the
business landscape in Africa. The number of PE companies
has multiplied considerably in the last six years. This is due
to fundamental improvements in the markets including
liberalisation, reforms, macroeconomic management
and positive progress in terms of the general geo-political
environment. The most powerful driver is the increasing
regionalisation of the African markets, which presents
attractive economies of scale to investors.
Capital Markets
Interest in Africa is strong, and access to capital markets is in
place. But there is a lack of products and the elements required
for active capital markets – these being a stronger regulatory
framework, better physical infrastructure (without which
a market’s appeal disappears) and more favourable terms
(repatriation of funds, foreign exchange controls, foreign
participation and ownership of local companies).
Governments can play a key role. They can initiate the process
of connecting with international markets, develop a better
understanding of African risk and opportunities, and help
benchmark yields and risk, thus reducing the burden on
companies or institutions coming to the market. This initiation
is critical and can provide a model to emulate. Government
willingness and engagement is primary. Following on from
this, investment banks need to work together with lawyers,
regulators and rating agencies to develop the products and
frameworks. Investment banks will also have to work hard to
develop funds and market them to international investors.
Logistics
Logistics is an essential element of trade. Despite trade having
increased considerably, making Africa a commercial hub,
there are still many logistical and infrastructural shortcomings,
which make the transport of goods difficult. Warehouses,
airports, rail, roads, airports and ports need to be improved, as
well as the connectivity between them. In order to become
commercially more competitive, Africa needs to upgrade
its logistics capacity.
Another factor is human resources – talent needs to be
trained effectively in order to cater to human resources
demands. While there are many logistics training institutes
emerging in Africa, experience is still lacking and learning
tends to be based more on a form of trial and error.
Timing is another aspect of the challenge, as it can take a
very long time to move goods from one country to another.
Public-private partnership (PPP) projects can be
very beneficial, as they bring experience and business
opportunities to the private and public sectors.
In many ways, Dubai can serve as an example in logistics
development. Logistics have formed the base for facilitating
the trade and growth of the city, and its logistics infrastructure
has been the bedrock of its success.
Ports
Ports are crucial for the movement of goods from one
country to another. What has become evident is that the more
conveniently situated the port, the more impact it has on the
country and the economy.
While improvements have been taking place, such as the use
of more international container depots and the new IT systems
that have helped to decongest African ports, there are still
challenges.
The volume of trade is expected to grow exponentially in
Africa: traffic is expected to quadruple by 2020. Ports need
to be ready to deal with this increased volume, so more
investment should go into the development of terminals.
Existing port infrastructure needs to be improved and new
ports need to be created. While some ports are equipped to
meet international standards, the roads and railways have not
caught up with this improvement. Capacity limitations also
need to be addressed.
To this end, PPPs are beneficial as they bring in expertise and
funding, an example being the Port of Djibouti. Through a
PPP, DP World collaborated with the government of Djibouti
and local organisations to develop the port. The company
brought capital, and the government made people and land
available. The joint venture has been successful and has given a
good financial return for all involved, thus creating a win-win
situation for the investor and the country.
For investments to work, there needs to be an environment in
which the investor can make returns. Clarity of government
policies and port development are equally important, because
investors need a basic framework to work within.
ExecutiveSummary

9
Piracy is a major problem facing the port sector: it needs to be
tackled speedily and on an international level.
Rail
According to the World Bank, railway deficiencies are holding
back the continent’s financial growth by at least 1%. While more
rail linkages need to be built, it is also of crucial importance
to improve those that already exist. The cooperation between
COMESA and other regional economic communities
must leverage on their strengths and ensure the transfer of
technology and knowledge building.
While there are still many shortcomings, some rail networks are
currently better than they have been in many years. Amongst
them are the Tanzania Zambia Railways and the Kenya railway.
Having gone through many years of non-investment and
decline, they are now beginning to pick up.
However, the challenge is that private sector investment into rail
is difficult to mobilise, particularly for improving infrastructure
that already exists. PPPs are the way forward for financing
railways but contracts need to be better structured, with all
parties involved feeling equally responsible and committed.
Agriculture
There is no business sector more important than agriculture. It
accounts for one third of GDP, 80% of employment and 65% of
foreign exchange earnings in the COMESA region.
The potential for investment in agriculture is huge, particularly
in land, as this has long been neglected. Africa has 25% of the
word’s arable land, but less than 5% of that land is actually being
used. Food shortages are found in some areas of Africa while
surpluses are found in other areas. There is still a long way to go
before these inequalities can be balanced and Africa can feed
not only itself but also the world.
Subsistence agriculture is still the mainstay for many farmers:
however, access to markets and technology needs to be
improved for smallholders to become a part of the agribusiness
value chain. This would help producers become active
stakeholders, which would encourage businesses to listen to
them.
At the same time, farmers themselves need to start thinking
like businesses, rather than as individuals. Whilst small-
scale farmers are seen by some as being an opportunity for
investment, they are also seen as a hindrance, because land is
fragmented. All agree that smallholders need to be dealt with
through some form of collective – be this by merging land
into large-scale farms or by working through associations.
Smallholders need to take advantage of opportunities: to
do this, it is most effective if they collaborate and work in
cooperatives. Once farmers organise themselves into these
structures, they can share knowledge and expertise; look at
their productivity issues together; and examine how input
procurement takes place (seeds, etc.) and how to reduce costs.
Businesses need to see smallholders as an opportunity, as they
are here to stay. At the same time, smallholders need to develop
their expertise, learn better farming methods, form collectives
and ensure the empowerment of women in farming.
Opportunities in agriculture and agribusiness are manifold,
but it is crucial that infrastructure and logistical challenges are
overcome.
Infrastructure
Opportunities in Infrastructure
Investment in infrastructure is one of the most important
issues of economic growth in Africa. The amount of investment
needed to improve infrastructure is USD 94 billion, of which
USD 45 billion is still outstanding.
PPPs offer many opportunities, but there are still challenges
and regulations that impede proper implementation of projects.
Investment from the private sector into infrastructure has been
low in the past, particularly since multilateral and government-
owned financing has given countries an excuse not to work
with private companies. However, new opportunities are
putting local companies on a steep learning curve. Companies
operating in the region have begun to develop infrastructure
as part of their investment strategy, such as providing power
supply and building railways to mining sites. This has also
helped to link different countries and regions.
In order to make an impact on the region, companies must
engage with the government, as well as with local companies
who have the expertise.

10
Energy
Power is the source of all production. Africa has a lot of power
resources and yet on average only 10% of its population has
access to energy. Dependence on a single energy source needs
to be reduced and electricity must be produced in sufficient
quantity to make it available to the masses.
Considering the impact of climate change on Africa – a subject
that is becoming more and more important – renewable
energy has to be the way forward. Development organisations
in particular are interested in investing in that sector. The
African Development Bank has a specific climate fund, which
is financing big clean-energy projects in the Sahara region,
with the aim of exporting solar power to Europe. There are also
concessional funds for small clean renewable-energy projects.
However, particularly for small-scale projects, it is difficult to
motivate the private sector to invest. Projects need to be made
commercially viable in order to attract investors.
The Inga Dam project, being developed in the DRC, has the
potential to power the region and also promises to provide
good returns to investors. Inga will be able to produce 44,000
megawatts of power to meet the needs of the African continent,
and then export the surplus. Development of Inga is due to be
completed by 2015. Whilst the project already has funding of
USD 2.4 billion, another USD 4 billion is needed. There are
still opportunities for investors to come in on this particular
project, as well as on many other power-generation projects in
COMESA.
ICT
Technology has the potential to be the most effective enabler
of Africa’s population and businesses. The fibre-optic cable
which has brought the internet to the continent has increased
connectivity and business velocity. Initially, it was laid to connect
African businesses and individuals to Europe: now, its focus is
connecting rural areas and integrating them into the economy.
Regional connectivity is crucial because of the opportunities it
offers: it can stem rural-urban migration, create employment
across the country and allow for much more innovation.
Overall, ICT enables development and economic growth.
Evidence for this is the link between business development and
telecoms: a 10% rise in telephone penetration raises GDP by 1%.
This relationship is set to accelerate in the coming years. The
reasons for this are the expansion of broadband internet (which
is seeing many operators moving into the market) and the
arrival of a low-cost smartphone for Africa. This phone promises
to change how business is being conducted by offering many
applications, and the same computing power and capacity as a
laptop. At present, while 80% of the population has access to the
telephone, only 20% have access to the internet: this smartphone
will give everyone internet access. Innovative applications
catering to specific demands can help Africa leapfrog many of
the developments taking place in the First World. An example
of this is an application that might allow owners of SMEs to run
their businesses through their smartphone.
Adopting foreign technologies is just as important as developing
local technologies, so that African businesses do not ‘reinvent
the wheel’. However, at the same time, the African business
community needs to take advantage of local talent, and actively
tap into the potential of the entrepreneurial youth in the region.
ICT has also empowered governments. Business development in
Africa has been slow because governments have not been able to
collect taxes from the informal sector, which forms the biggest
part of the economy. Now, through mobiles, the government can
tax the informal sector, thus benefiting the economy.
Becoming Tomorrow’s Fast-Growing Emerging Market
The BRIC countries and other emerging markets can, in
many ways, serve as examples for COMESA. What has made
many emerging economies successful is a combination of
several factors: prudent and easy-to-follow policies, which
have had the potential to unlock the private sector; policy
makers that have learnt from experience and allowed room
for constant improvement; and a well-educated, capable and
disciplined workforce, which has formed the backbone of a
well-functioning economy. While it is important to understand
that “politics is not business and business is not politics”, the
quality of government and the honesty of people at the top of the
government are equally crucial.
Executive Summary
H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice
President and Prime Minister of the UAE and Ruler of Dubai
(right) and other dignitaries attending the 4th
COMESA
Investment Forum

11
09.00 – 10.30 Official Opening Remarks
H.E. Abdulrahman Saif Al Ghurair, Chairman,
Dubai Chamber of Commerce & Industry, UAE
Heba Salama, Director,
COMESA Regional Investment Agency, Egypt
H.E. Sultan Al Mansoori, Minister of Economy, UAE
H.E. Sindiso Ngwenya, Secretary General, COMESA
Keynote Address:
Hon. Jabulile Mashwama, Minister of Commerce,
Industry and Trade, Swaziland and Chairperson,
COMESA Council of Ministers
11.00 – 12.10 Plenary Session I
COMESA–Dubai; The New Business Opportunity
How can COMESA and its new partners collaborate
effectively to encourage economic growth in the regions
and enhance their positions within the global market?
How to create win-win partnerships?
How to map suitable opportunities?
Moderator:
Tom Ashby, Business Editor, The National
Speakers:
H.E. Sheikha Lubna bint Khalid Al Qassimi,
Minister, Ministry of Foreign Trade, UAE
Hon. Chirau Ali Mwakwere, Minister for Trade, Kenya
Ahmad Bin Ali, Group Senior Vice President Corporate
Communications, Etisalat Group, UAE
Peter Kiguta, Director General (Customs and Trade),
East African Community
Charles Mbire, Chairman, MTN Uganda
12.30 – 13.45 Parallel Session I: Trade
Dubai–Africa: Strengthening Trade Links
Why is Dubai an attractive hub for doing business and
trading with COMESA?
How can African and international businesses take
advantage of Dubai [when operating in and out of Africa]?
Mechanisms & tools available to facilitate trade
Moderator:
Pat Lancaster, Editor, The Middle East
Speakers:
H.E. Hisham Al Shirawi,
Chairman, Economic Zones World
Alex Gitari, Director of Finance, PTA Bank
Oti Ikomi, Senior Vice-President,
Ecobank Transnational Inc
Chris Kirubi, Chairman, Haco Industries Ltd
Mahmood Sharif Mahmood, Foreign Trade Policy
Director, Ministry of Foreign Trade, UAE
12.30 – 13.45 Parallel Session II: Finance
New Models for Financial Growth
Assessing the opportunities in banking
and finance across Africa
How can the financial sector fuel Africa’s
economic growth?
Islamic finance: a new opportunity for growth
Financing SMEs: Challenges & Opportunities
Moderator:
Andreas Proksch, Director General
(Africa Department), GIZ
Speakers:
Usman Ahmed, MD, Corporate Banking, Barclays Africa
Kevin Flannery, General Manager,
International Emirates NBD
Dr. James Mwangi, CEO, Equity Bank
Skander Oueslati, Senior Partner,
AfricInvest Capital Partners
Abdulla Qassem, Chairman, Network International UAE
12.30 – 13.45 Parallel Session III: Logistics
Identifying Opportunities in Logistics
Logistics in Africa: An Overview
Projects: Opportunities ready to be harnessed
The private sector as an engine for efficiency and
modernisation
Addressing connectivity
Public-Private Partnerships
Moderator:
Anver Versi, Editor, African Business
Speakers:
Khaled Ahmed, Senior Vice President Strategy &
Development, Economic Zones World, UAE
Amadou Diallo, CEO, Africa & South Asia Pacific, DHL
Global Forwarding, Africa
Hussein Hachem, CEO, Middle East and Africa, Aramex
Deanne De Vries, Vice President, Africa Agility
Sanjeev S. Gadhia, CEO, Astral Aviation Ltd
15.15 – 16.30 Parallel Session I: Agriculture/Agribusiness
Tapping into the Market: What are the Opportunities?
Understanding the agriculture and agribusiness
landscape in Africa
Programme
Day One – Wednesday 23 March 2011

12
Discovering the smallholder as a producer and consumer
Creating win-win situations
Moderator:
Edward Paice, Director, Africa Research Institute
Speakers:
H.E. Prof. Elias Nyamlell Wkoson,
Minister of Foreign Trade, Sudan
Dr. Evans Kidero, CEO, Mumias Sugar, Kenya
Wanjohi Ndagu, Partner, Pearl Capital Partners
Dr. Shachi Sharma, Head of Strategy and Planning, Africa
& the Middle East, Syngenta
Giulia Di Tommaso, Director of External Affairs
for Africa, Middle East and Turkey, Unilever
15.15 – 16.30 Parallel Session II: Infrastructure
The Infrastructure Gap
Opportunities for the private sector to fill the
infrastructure gap
PPPs – creating a win-win solution
Financing solutions for infrastructure projects
Infrastructure – lessons learnt
Moderator:
Chalimba Phiri, Chairman, COMESA Regional
Investment Agency
Speakers:
Lazarus A. Angbazo, President & CEO, GE East,
Central & West Africa
Marco Coutinho, Energy Coordinator, Vale, Brazil
Farid Mohammed, Director, Pipal
Mark Pearson, Director, TradeMark Southern Africa
Programme
15.15 – 16.30 Parallel Session III: Finance
Private Equity
How Private Equity is changing the African business
landscape: investment trends in COMESA
Private and public capital as substitutes or complementary
sources of funding
Identifying the opportunities in fundraising
How can COMESA attract more funds?
Moderator:
Zemedeneh Negatu, Managing Partner, Ethiopia and Head
Transaction Advisory Services (TAS), Eastern Africa,
Ernst & Young
Speakers:
Ziyad Bundhun, MD, MCB Capital Partners
Paul Kavuma, CEO, Catalyst Principal Partners
Marie-Hélène Loison, Head of Private Equity, PROPARCO
Skander Oueslati, Senior Partner, AfricInvest Capital
Partners
16.40 – 17.40 Bloomberg TV Debate
Positioning COMESA onto the global trade platform
Assessing COMESA’s current role in global trade
Benefiting from Free Trade Agreements
Produce local, trade regional, sell global –
how it can be done
Moderator:
Lara Setrakian, Bloomberg Presenter
Speakers:
H.E. Hamad Buamim, Director General, Dubai Chamber
of Commerce & Industry , UAE
Hon. Jabulile Mashwama, Minister of Commerce, Industry
and Trade, Swaziland and Chairperson, COMESA Council
of Ministers
Alykhan Lalani, Chairman and MD,
Intouch Capital, UAE
Karim Sadek, MD, Citadel Capital, Egypt
Day One – continued
Programme

13
Programme
Day Two – Thursday 24 March 2011
09.30 – 10.45 Plenary Session II:
Investing in COMESA: Reality versus Perception
What governments are doing to facilitate business:
regulatory policy and institutional reform in COMESA
What investors want from governments?
Available instruments and securities: fund repatriation
and arbitration
Moderator:
Zemedeneh Negatu, Managing Partner, Ethiopia and Head
Transaction Advisory Services (TAS), Eastern Africa,
Ernst & Young
Speakers:
Hon. Aston P. Kajara, Minister of State for Investment,
Uganda
Olaf Meier, MD, African Development Corporation
Shakir Merali, Partner – East Africa, Aureos Capital
Vimal Shah, CEO, Bidco, Kenya
Ashish Thakkar, CEO, Mara Group
10.45 – 11.15 Investor Success Story
Hear first-hand about the experiences of an influential
investor who has done business in the region.
Speaker:
Arnold Meyer, MD (Africa Real Estate), Renaissance
Capital
11.45 – 13.00 Parallel Session I: Trade
Increasing Intra-African Trade
How to boost trade within Africa
Benefiting from RECs and intra-regional partnerships
Available tools and mechanisms
Diversifying African economies to fuel intra-African trade
Moderator:
Prof. Dr. Maggie Kigozi, Executive Director, Uganda
Investment Authority
Speakers:
Hon. Welshman Ncube, Minister of Industry and
Commerce, Zimbabwe
Kofi Adomakoh, Director, Project & Export Development
Finance, Afreximbank
Mahmood Mansoor, Chief Technical Advisor, COMESA
Clearing House
Dr. Kombo J. Moyana, Executive Secretary, COMESA
Clearing House
George O. Otieno, CEO, African Trade Insurance Agency
11.45 – 13.00 Parallel Session II: Logistics
Ports – Engine for Trade in the COMESA Region
Commercialising COMESA Ports
Facilitating profitable alliances with key stakeholder
Africa’s PPP growth and the investment opportunities
Optimising port performance
Moderator:
Speakers:
Hon. Amos Kimunya, Minister for Transport, Kenya
Hon. Peter Sinon, Minister of Investment, Natural
Resources & Industry, Seychelles
Jerome Ntibarekerwa, Secretary General, Port
Management Association of Eastern and Southern Africa
(PMAESA)
John Woollacott, Senior Vice President, Business
Development, DP World
11.45 – 13.00 Parallel Session III: Infrastructure
The Importance of Connectivity for doing Business:
Increasing Competitiveness through ICT
How is ICT changing the business landscape in Africa?
Where and what are the opportunities and challenges for
ICT in COMESA?
Fuelling Africa’s wireless revolution
Creating a regional fibre-optic network
Moderator:
Ken Kwaku, Founder, The Kwaku Group
Speakers:
Brian Herlihy, CEO, SEACOM
Noel Herrity, Founder & CEO,
One Tree Services
Nicholas Nesbitt, Founder & CEO, Kencall
11.45 – 13.00 Parallel Session IV: Finance
Strengthening COMESA’s Capital Markets
How can capital markets cater to the region’s
financial needs?
How to tap into capital markets: local, regional and
international opportunities
What needs to be done to fuel Africa’s capital markets?
Moderator:
Christopher Hartland-Peel,
Head of Africa Research, Exotix

14
Programme
Day Two – continued
Speakers:
Abdulla Mohammed Al Awar, CEO, DIFC Authority UAE
Atiq S. Anjarwalla, Partner, Africa Legal Network
Arnold Meyer, MD (Africa Real Estate),
Renaissance Capital
Karim Schoeib, Head of Capital Markets, SHUAA Capital
14.15 – 15.15 Dubai TV Debate:
A Roadmap of Opportunities: Fostering Cooperation
between the UAE and COMESA
Moderator:
Zeina Soufan, Presenter, Dubai TV
Speakers:
Sulaiman Hamed Al Mazroui, Chairman, Bankers
Business Group
Fahad Al Gergawi, CEO, Foreign Investment Office, Dept
of Dubai Economic Development, UAE
H.E. Hisham Al Shirawi, 2nd Vice Chairman, Dubai
Chamber of Commerce & Industry, UAE
Dr. Nasser H. Saidi, Chief Economist & Head of External
Relations, DIFC (DIFC) Authority
Karim Sadek, MD, Citadel Capital
15.15 – 16.30 Parallel Session I: Logistics
Rail – Key Drivers for Investment
Partnering with African rail operators – what to look for?
PPPs – creating mutually beneficial relationships
Financing concessions
Key drivers for railway investment and profitable
operations
Moderator:
James Martin, Rail Director, Mott MacDonald Group
Speakers:
Hon. Malusi Gigaba, Minister of Public Enterprises,
South Africa
AbdulMohsin Ibrahim Younes, CEO –
Strategic Corporate Governance Sector, RTA, UAE
Akashambatwa Mbikusita-Lewanika, MD, Tanzania
Zambia Railways Authority (TAZARA)
Nduva Muli, MD, Kenya Railways Corporation
(KRC), Kenya
Karim Sadek, MD, Citadel Capital, Egypt
15.15 – 16.30 Parallel Session II: Agriculture
Moving up the Value Chain: Value-Added Processing
Opportunities in Agriculture: From producer to
manufacturer
Integrating small-scale farmers into the agribusiness
value-chain
Improving access to markets
Smallholder-friendly financial services
Moderator:
Speakers:
Santosh Vasudevan, Principal Investment Officer, IFC,
South Africa
Joshua Varela, General Manager, National Smallholder
Farmers’ Association of Malawi
Sai Ramakrishna, CEO, Karuturi, India
Kunal Chahl, MD, Diar Capital, UAE
15.15 – 16.30 Parallel Session III: Infrastructure
Energy: Powering COMESA
Solutions to increase capacity, efficiency and quantity
How to expand access to electricity in urban, periurban
and rural areas?
Harnessing Africa’s renewable energy potential:
how can COMESA become a major player in the sector?
Opportunities in environmentally sustainable energy
projects
Moderator:
Speakers:
Hon. Raymond Tshibanda N’Tungamulongo,
Minister of International and Regional Cooperation
of DR Congo
Richard A. Claudet, Chief Investment Officer, Private
Sector Infrastructure, African Development Bank
Dirk Hoke, CEO, Cluster Africa, Siemens
Farid Mohammed, Director, Pipal
16.50 – 17.50 Plenary Session III
Becoming Tomorrow’s Fast-Growing Emerging Market
What are the lessons learned from the BRIC countries and
what can be replicated in the COMESA region?
How to drive growth in the COMESA region to unlock
the markets and develop the region into a major economic
power?
How to learn from international and African success
stories and create an inherently African growth strategy?

15
Moderator:
Speakers:
Ranveer S. Chauhan, MD
(Africa Region & Palm Division), Olam
Stephen Karangizi, Assistant Secretary General, COMESA
Charles Mbire, Chairman, MTN, Uganda
Klaus Overbeck, Senior Vice President New Business, DEG
18.10 – 18.20 Vote of Thanks
Speaker:
Hon. Eunice Kazembe, Minister of Trade and Industry,
Malawi and Vice Chairperson of the COMESA Council of
Ministers
18.20–18.30 Concluding Remarks & Closing Ceremony
Speakers:
H.E. Hamad Buamim, Director General, Dubai Chamber
of Commerce & Industry, UAE

16
Session Summaries
Speakers:
H.E. Abdulrahman Saif Al Ghurair, Chairman,
Dubai Chamber of Commerce & Industry, UAE
Heba Salama, Director, COMESA Regional
Investment Agency
H. E. Sultan Al Mansoori, Minister of Economy, UAE
H. E. Sindiso Ngwenya, Secretary General, COMESA
T
he opening session, which was attended by His
Royal Highness Sheikh Mohammed bin Rashid
Al Maktoum, Vice President and Prime Minister
of the UAE and Ruler of Dubai, set the tone for
two interactive and fruitful days of discussions.
The speakers from both the UAE and COMESA highlighted
the importance of intense collaboration between the two
regions. Through this, they insisted, win-win situations will
be created which will be beneficial for communities and
businesses alike.
H.E. Abdulrahman Saif Al Ghurair, Chairman, Dubai
Chamber of Commerce & Industry, UAE, officially opened
the forum by looking back on the historic relationships
between the Gulf region and Africa, stating that today’s trade
relations between the UAE and the COMESA countries are
reflective of that past historic relationship, but had evolved
to include more sectors of the economy. The UAE’s strategic
geopolitical location had allowed it to “become an active
and economic partner of COMESA” and it was this strategic
location that provided the UAE with competitive advantages
of trade. Al Ghurair was confident that the boundless
resources the COMESA countries had to offer (such as
minerals, food, etc) will continue to foster trade between the
two regions and encourage dialogue on development and
business facilitation.
Heba Salama, Director of the COMESA Regional
Investment Agency (RIA), highlighted the successes and
advances of projects in the COMESA region. Business and
investments in the COMESA countries had increased fivefold
in the last ten years, and this fourth annual conference
should encourage businesses to take advantage of the many
available opportunities. No doubt there were still challenges
that COMESA must overcome, but Salama was hopeful
that “by implementing mechanisms to promote a smooth
business environment”, the resources of COMESA countries
will become a key attraction to investors. She emphasised
that investments in COMESA countries are not restricted to
resources only, as the mining and manufacturing sectors
are equally on the rise. COMESA also boasts some of
the best tourist destinations today. The region has been
improving its infrastructure, particularly along strategic
routes (such as the commercial path leading from the
Gulf down through Djibouti). Healthcare and ICT are
other key sectors where improvements are taking place.
A point Salama emphasised was the high rate of return
on investments, which has stood at a staggering 29% since
the 1990s, as opposed to the EU’s 10%. This reflected the
potential that conducive investment climates can unlock
and the opportunities capital markets in the region can take
advantage of. She emphasised that a combination of a sound
investment climate and strong capital markets is the engine
for economic growth.
Until the financial crash in 2008, COMESA states’ GDP
increase was 7% per year due to the stable macroeconomic
environments and liberalised capital accounts and markets.
COMESA states are also signatories of the WTO and other
prominent organisations. The large pool of human resources
and competitive business transactions offers great potential
for foreign investors. COMESA is comprised of 19 countries
and is Africa’s largest economic community, making it
particularly attractive for large-scale investments.
H.E. Sultan Al Mansoori, the UAE’s Minister of
Economy, also referred to the historical trade relationship
between the Gulf and Africa, but with a focus on modern-
day investments. Al Mansoori saw this conference as a
strategic event to strengthen the trade relationship between
Africa and the Gulf, and COMESA was one of the biggest
groups the UAE has the opportunity and privilege to work
with. COMESA’s collective GDP amounts to more than USD
70 billion and therefore provides many opportunities for
investments in various fields. Future projections predicted
that the number of consumers would increase to 500 million
people in 2015. In this eventuality, Al Mansoori believed
investors in COMESA to be the ultimate beneficiaries.
He stressed that the UAE economy is ready to invest and
merge with different economies. The banks in the UAE were
“full of money”, the country had a solid infrastructure, and
the laws and regulations worked together to empower the
economy. He saw the UAE as a “gate” between the Gulf and
Europe, and over the last few years the UAE had begun to
focus more closely on Africa, because it was becoming pivotal
to economic growth. The volume of trade between the UAE
and COMESA countries amounted to USD 6.2 billion and a
Official Opening Remarks
Day One Thursday 23 March 2011

17
larger flow of investments is expected in light of development
projects, such as in ICT and communication. Dubai,
according to Al Mansoori, was the main market for Africa
and was central for trade. Similarly, Africais a promising
partner for Dubai, and the government of the UAE in general
was supportive of relations between the Gulf region and the
COMESA states. This is evident through the various projects
the region was involved in on the continent, such as the Port
of Djibouti. More opportunities could become possible for
both Dubai and COMESA. Al Mansoori concluded that
empowering the investment climate was the role of decision
makers and it was their responsibility to support business
opportunities.
H.E. Sindiso Ngwenya, Secretary General of COMESA,
pointed out that Dubai had a congenial environment for
growth and investment. The social and economic progress of
the city was “the world’s envy”. Dubai is truly exploiting its
geographic position and it had shown the world that a city
or country can progress with creativeness and innovation. It
was a good example of how a country can achieve prosperity
without simply profiting from its natural resources. Dubai
had diversified into finance, trade and many other areas apart
from oil and gas.
COMESA now had to take advantage of the opportunity to
interact with counterparts in the UAE. COMESA needed to
learn from its speed and effectiveness in order to improve its
national and international competitiveness.
Ngwenya concluded by encouraging business leaders to invest
into the region’s infrastructure: USD 94 billion of investment
is needed to improve the infrastructure in the COMESA
region. He then urged those who had an interest in investing
in the region to come and partner with COMESA, as the
region had plenty of opportunities in Logistics, Tourism,
Energy, Renewables, Infrastructure and Mining, to name but
a few.
Keynote Address
Speaker:
and Trade, Swaziland and Chairperson, COMESA Council
of Ministers
H
on. Jabulile Mashwama, Minister of
Commerce, Industry and Trade, Swaziland and
Chairperson, COMESA Council of Ministers,
assured business leaders that governments were
keen to engage and support investors: “COMESA
is a forum, where we commit as governments to assure the
business community that we will do everything required to
help them partner with us.”
COMESA had seen a leap in foreign and cross-border
investments. Notably, more than 30% of investments from
India and China had been in the manufacturing and services
sectors. “In recent years many Western banks also opened
their branches in the COMESA region,” she said. Cross-
border investment into financial and retail services had also
increased.
COMESA was dedicated to cooperating with other
regional economic communities such as SADC and the EAC,
in order to put Africa more prominently onto the global
market. The combined GDP of the three regional economic
communities was expected to exceed USD 1 trillion by 2013.
As to the trade relationship between COMESA and the
GCC, Mashwama lamented that while there was considerable
trade between the two regions, most exports from the
COMESA region were commodities while the imports into
the region from the UAE were value-added goods.
She concluded by saying that she had a firm conviction
that individually and collectively, unlocking COMESA
markets will be done in the decades to come. It marked the
relationship between the private sector and policy makers to
promote economic growth.
Right to left: H.E. Abdulrahman Saif Al Ghurair, Dubai Chamber
of Commerce & Industry, UAE; Hon. Jabulile Mashwama, Minister
of Commerce, Industry and Trade, Swaziland and Chairperson,
COMESA Council of Ministers; H.E. Sultan Al Mansoori, Minister of
Economy, UAE; H.E. Sindiso Ngwenya, Secretary General, COMESA;
Heba Salama, Director, COMESA Regional Investment Agency
and Trade, Swaziland and Chairperson, COMESA Council of
Ministers, delivering her keynote address

18
Moderator:
Tom Ashby, Business Editor, The National
Speakers:
H.E. Sheikha Lubna bint Khalid Al Qassimi,
Minister of Foreign Trade, UAE
Hon. Chirau Ali Mwakwere, Minister for Trade, Kenya
Ahmed Bin Ali, Group Senior Vice President Corporate
Communications, Etisalat Group, UAE
Peter Kiguta, Director General (Customs and Trade),
East African Community
T
he aim of this session was to discuss how
COMESA and its new partners can collaborate
effectively to encourage economic growth.
Moderator Tom Ashby, Business Editor, The
National, opened the session by asking H.E.
Sheikha Lubna bint Khalid Al Qassimi, Minister of Foreign
Trade of the UAE, what Dubai was doing to increase trade
with COMESA. Sheikha Lubna described the UAE’s long
history of trade with Africa. Beginning in pre-colonial times,
she explained how the lands making up the modern UAE
connected Africa to the Silk Road. Moving into modern
times, she described COMESA as a very strong economic
bloc making up 52% of the UAE’s total trade with Africa.
The region has heavy bilateral trade with the UAE. Trade has
increased tenfold in a decade, and it reached USD 5.7 billion
in 2009. Looking at the last ten months, that performance
went up 6.3%. “What makes this particular tie important are
Dubai’s characteristics as a hub, an area of connectivity and
networking, and COMESA’s increasing liberalisation and
support of the business community.” Dubai has always been
a business centre, with most of its trade historically taking
place between East Africa and India. What has changed
today is the mode of operation: “We now have a hi-tech fleet,
Jebel Ali and other great distribution centres, and great
infrastructure. Dubai is an ideal re-export centre for goods
coming both in and out of Africa.”
Next, Ashby wanted to hear from East Africa. He asked
Hon. Chirau Ali Mwakwere, Minister for Trade, Kenya,
what COMESA was doing to increase trade specifically
through Dubai. Mwakwere began by saying that COMESA
put in place many regulations that made it easy to do trade
with other countries and smooth the flow of goods and
services. At the moment, COMESA has not created incentives
specifically for Dubai – but Dubai has many advantages
in dealing with COMESA. “Dubai has a window into
Africa that is open to the world. It is up to Dubai to take
advantage of that open window,” Mwakwere declared.
With the COMESA region’s population of 450 million
people, entering the region would give Dubai many
opportunities. In COMESA, Dubai will find a population
waiting for goods and services from the rest of the world.
Additionally, the COMESA region has much uncultivated
land – something which Dubai should take advantage of.
Mwakwere then discussed the issue of labour. Looking at
COMESA in general, Dubai has access to skilled, affordable
labour. It is not cheap labour, he stressed, but skilled and
affordable labour that can give value addition on the spot.
Dubai could work with COMESA to serve the world with
value-added materials that are produced from the raw
materials found in Africa.
Ashby then moved on to asking specifically how
opportunities can be found in COMESA. With Etisalat
serving 35 million people in the region, he addressed
Ahmed Bin Ali, Group Senior Vice President Corporate
Communications, Etisalat Group, UAE, to share his
experience of doing business and driving profits in COMESA.
“We started our operations in Tanzania in 1999. From
that moment on, we noticed that there is huge potential in
the region,” began Bin Ali. The low penetration of mobile
networks in Africa had created countless opportunities for
operators to come in and invest further. Etisalat focuses on
Egypt and Sudan, both part of COMESA. Its investments
there are worth USD 2.9 billion with a growth of 32%. Etisalat
has 35 billion customers in Africa and employs 6,000 people
full time, as well as an additional 200,000 on a part-time
basis. The company has 135 million customers around the
world, and 50% of its outlets are located in Africa.
Etisalat, said Bin Ali, started the first video calls service in
Egypt. The company laid down over 3,000 fibre-optic cables
to connect COMESA countries. It also invested in submarine
cables and a cable project connecting Kenya to other African
countries. The company is constantly increasing its shares in
the continent. “Telecom is a long-term investment. Operators
have to provide customers with the various services they
need. Most of our contracts are usually 15 years or more,” Bin
Ali ended.
Ashby wanted to hear from Peter Kiguta, Director
COMESA–DUBAI
The New Business Opportunity
Plenary session

19
“International
investors need to
partner with local
businesses so they
can inform them
about the local
terrain”
General (Customs and Trade) of the East African
Community (EAC), on what his region has been doing to
increase fruitful international cooperation and partnerships.
Kiguta stated that the East African Community promoted
both regional trade and broader trade with the international
community, for example, to eliminate tariff barriers
between states. The EAC came together with South Africa
to create business partnerships. This had increased trade in
infrastructure development. As an increasingly attractive
region for investment, the EAC is not only dealing with the
markets of COMESA, SADC and the greater East Africa
region, but with a variety of international markets as well.
The most recent example was the EAC’s signing of a trade
investment agreement with the United States.
Charles Mbire, Chairman, MTN Uganda, explained how
local companies can help international investors coming into
Africa. International investors need to partner with local
businesses so they can inform them about the local terrain.
They can also help investors understand that business plans
are not based on the income curve but the expenditure curve
in Africa. Local businesses can help with local networking,
uncover local potential, decipher the culture and reduce the
layers that block international companies from doing business
in Africa.
Next, Mbire spoke about the partnership with Dubai: “We
look for partners who don’t take us for granted and use our
cultural and traditional handicaps to their advantage. We
look for partners who want a one-on-one partnership and
want to help us. Dubai is great because its mission is not just
profiteering, and we feel very welcome. Dubai is great because
it lets our own companies learn from international business
practices because they are so close to us.”
Returning to Sheikha Lubna, Ashby asked how to further
strengthen the links between the UAE and COMESA. The
Sheikha stated that the UAE had made many investments into
the continent. In terms of telecoms, for example, companies
here know that if they have a highly competitive company
that can expand abroad, COMESA provides a great advantage
in terms of audience and opportunity. Additionally, there
are great resources in Africa and COMESA – particularly
in terms of mining. This is a viable business proposition
coming from Africa. The UAE is a great place to do this sort
of business with because it offers top-of-the-line logistics
and networking opportunities. The platform available in
Dubai and the UAE is a strong incentive to bring African
businesses to this region. Many companies have established
areas of interest for themselves in the free zones. There are
36 free zones in Dubai, with many benefits, including 100%
repatriation of income, zero trade barriers, and market
access to Asia. African businesses can even explore regional
opportunities through Dubai because so many African
companies are in the Emirate.
The Sheikha then moved on to discussing food and water
security. The UAE is interested in working with COMESA to
secure those commodities. In return, the UAE is interested in
providing partnerships and cooperation on renewable energy,
particularly through “the sustainability giant, Masdar”. It is
also interested in potential infrastructure projects, such as
railways. “There is great synergy between these economic
blocs. If this relationship is fostered with more care, we can
grow many times over, not just gradually.”
Ashby then discussed the frequently mentioned point
that Africa is looking for people who will add value to
the continent’s raw materials. He asked Mwakwere to
speak further about what African nations are looking for.
Mwakwere described the huge swathes of land in COMESA
that can be used to grow and process food that can go around
the world. “If you decide to invest in food production in
COMESA, I can assure you that the returns on investment
will be higher than anywhere else,” he emphasised.
Charles Mbire, Chairman, MTN Uganda, (left) and H.E. Sheikha Lubna Bint Khalid Al Qassimi, Minister of Foreign Trade, UAE

20
“This conference
is a door that
allows the world
more access to
COMESA”
The reason was that resources are plentiful. Additionally,
there were corridors being developed to facilitate transport
infrastructure. This created many opportunities that are
awaiting investors. Investing in COMESA will not just be
profitable to investors, but will also add knowledge to people
in the region.
Comments and Questions from the Floor:
The first question from the audience was from a COMESA-
based businessman to Sheikha Lubna, asking about special
programmes that the UAE government – rather than just
UAE businesses – has planned for the COMESA countries.
The Sheikha explained that joint commitment from both
sides continues helping businesses go forward. The UAE is
promoting services in the COMESA region, such as Emirates
Airlines. The UAE is a springboard for moving out into a
greater international arena and can be used for re-exports.
She gave an example of how creating access to a new area can
increase business and connectivity: Emirates Airlines opened
a route to Brazil, which really boosted business there from
different parts of the world.
The next comment came from Dr. Asfour, Vice Chair
of the COMESA Business Council. She stressed that
COMESA needed added value for its industries, and wanted
to transform small and medium-size companies into larger
companies. She also noted that capacity building is crucial
to educate the workforce, and this is beneficial for both
regions. Sheikha Lubna agreed and pointed out that through
public-private partnerships, governments open doors, create
ease in doing business, and remove trade barriers. At the
end of the day, however, it is the business people who have
to get together and lead most of the projects: “Governments
open the doors, businesses walk through them.” In terms
of building capacity, she agreed that it impacted both sides.
“For example, the UAE has lots of well-educated Egyptians
from COMESA who come here to work, so we benefit from
COMESA’s capacity building as well.”
A member of the audience from India voiced concern
about the investments of venture capitalists. Like the UAE,
India had also been taking on large-scale modern farming
projects in COMESA. However, venture capitalists did not
want to stay in the countries they are working in for more
than five to ten years. Additionally, venture capitalists wanted
to see their investments floated on local and regional stock
exchanges.
A UAE businessman complained about the lack of
information available to investors looking to move into
Africa. Ashby explained that Africa is getting increasingly
connected to the internet, so that will change things.
Mwakwere noted that this was an important observation, and
it is a problem COMESA is addressing adequately because it
knows that proper information must be in place to increase
business. This conference, he explained, is a door that allows
the world more access to COMESA. Introductions begin
here at this conference, but there are increasing amounts
of information on COMESA websites. He then offered
some contacts for those who wanted more information on
investment opportunities. “Dubai is a place the whole world
comes to – we are all here. Let’s connect. I was being told that
the banks here are full of money. Well, I can tell you, Africa is
full of opportunities,” Mwakwere ended.
Main Outcomes:
Dubai and COMESA are working to further strengthen
historically strong trade ties.
COMESA can take advantage of Dubai’s experience and
facilities (such as technology, infrastructure, free zones, zero
trade barriers, and global market access) while Dubai can
take advantage of COMESA’s growing consumer markets and
natural resources to ensure its food and water security.
Investors need adequate information about the
opportunities and challenges in COMESA. (A COMESA
Regional Investment Agency representative office will be
established in Dubai as a result of this demand).
Partnerships between local African businesses and
international investors are key to successful business ventures
in COMESA as they can help bridge the information gap,
while being beneficial for all parties involved.
Right to left: Ahmed Bin Ali, Group Senior Vice President Corporate
Communications, Etisalat Group; Hon. Chirau Ali Mwakwere, Minister
for Trade, Kenya; Tom Ashby, Business Editor, The National; H.E. Sheikha
Lubna Bint Khalid Al Qassimi, Minister of Foreign Trade, UAE; Peter
Kiguta, Director General (Customs and Trade), East African Community;
Plenary session

21
Parallel Session
Moderator:
Pat Lancaster, Editor, The Middle East
Speakers:
H.E. Hisham Al Shirawi, Chairman,
Economic Zones World, UAE
Alex Gitari, Finance Director, PTA Bank
Oti Ikomi, Senior Vice-President,
Ecobank Transnational Inc
Chris Kirubi, Chairman, Haco Industries Ltd, Kenya
Mahmood Sharif Mahmood, Foreign Trade Policy
Director, Ministry of Foreign Trade, UAE
T
his session, moderated by Pat Lancaster, Editor,
The Middle East magazine, focused on Dubai as
a strategic hub for doing business in and out of
COMESA. The first panellist, Mahmood Sharif
Mahmood, Foreign Trade Policy Director,
Ministry of Foreign Trade, UAE, shared his views as to why
Dubai is a good location for doing business and trading with
COMESA. “For example, the important economic trade links
between COMESA and China can be bridged by Dubai, as we
provide logistics, infrastructure and transportation facilities
in between the two regions” Mahmood stated. He further
elaborated on Dubai’s many advantages:
1. Its strategic geographic location: Dubai is on the ideal
crossroads in terms of trade – it is situated on the
international trade route to India, Asia and Europe.
2. Its sound and transparent economic policies and laws:
Dubai has a liberal foreign trade policy and low tariffs,
no troublesome customs procedure but a sound technical
structure, property services and extensive port facilities.
Two airports and free zones allow foreign businesses easy
operations and the possibility to expand effortlessly.
3. Its strong relationship with COMESA: Imports from
COMESA into the UAE have increased from USD 200
million to USD 2 billion, while exports to COMESA have
increased from USD 90 million to USD 700 million.
4. Its strong bilateral relation with China can also be
beneficial in facilitating logistics and transport between
COMESA and China.
As a businessman himself, Chris Kirubi, Chairman, Haco
Industries Ltd, elaborated on the implications of increased
trade for African businesses. He advised the people of the
GCC that COMESA is full of opportunities. He encouraged
them to think out of the box and come up with alternative
models which can benefit both regions: “You have sand, we
have soil – we can develop a partnership where we grow in
Africa and then come and play in the sand in the UAE … As
for property, you have to go to the sea to build homes … we’ll
give you land.”
He invited business leaders to come and invest in various
sectors such as the African airports. He added how tourism
has an enormous potential, which needs to be unlocked.
He further emphasised the importance of the COMESA
conference and hoped that it would result in more meetings
and partnerships.
H.E. Hisham Al Shirawi, Chairman, Economic Zones
World, explained that Dubai has Jebel Ali free zone, Techno
Park and similar facilities, which are conducive to doing
business. “Dubai has always been a trading hub since the 19th
century, as oil did not create Dubai. Trade was at the core of
the country’s growth, as IT, manufacturing, real estate … all
is related to trade, and at the core of Dubai activity.”
Shirawi emphasised that he is keen on working closely
with COMESA: “With 19 states, it is a huge region, with
a population of more than 500 million by 2015. A GDP of
USD 442 billion, 11 million square kilometres of land –
Dubai has to be a part of this growth story.”
What Dubai can provide now to help COMESA develop its
economy and increase its GDP are the facilities available in
Dubai, such as available mechanisms for trade and transport:
“To get goods from COMESA to another place; to store
them and then send them on to the rest of the world – that’s
where Dubai comes in. Dubai’s airports have a capacity of
60 million passengers per year and a capacity of 2.5 million
tonnes per year. Dubai airport is the fourth-busiest airport in
terms of passenger handling; 130 airlines are operating at the
airport and Emirates reaches 200 cities. Jebel Ali Port, where
150 shipping lines operate, is one of the busiest ports in the
world. Any product reaches South America in 25 days, the US
in 21 days and China in 20 days: no other port can do that.”
Lancaster then turned the conversation to finance and
how financial institutions and banks can facilitate trade. Alex
Gitari, Finance Director, PTA Bank, explained the role of
his bank. As a development bank, PTA Bank’s focus on trade
finance was twofold. First, the bank supported exports of
raw materials. The second focus was project finance, which
was long-term lending. “We are supported by our member
countries which help us leverage short-term and long-term
lines of credit from banks to support trade and investment,”
Gitari stated. PTA’s membership structure made it an
Trade
Dubai–Africa:
StrengtheningTradeLinks

22
“GCC investors are
invited to come
and do business
in COMESA –
and that is very
proﬁtable”
open institution, so it was the case that China has a 6.53%
ownership. Thus they had access to market information and
sat on the bank’s board, which enabled them to see where
opportunities lie.
Oti Ikomi, Senior Vice-President, Ecobank
Transnational Inc, elaborated on Ecobank’s focus on trade
and investment between COMESA and the UAE. Ecobank,
being present in 30 countries, had an array of banking
services for investors and exporters. Ikomi said, “We
understand the critical need on how to share information
and to promote business. We opened a representative office in
Dubai at Emirates Towers. We have the local knowledge so we
offer trade finance, account services and investment banking
advice, as well as mergers and acquisitions.”
The moderator then asked the panel “Why help
COMESA?”. Shirawi explained that it is not help that
they were giving, rather it was a partnership that they
were seeking. The statistics showed that COMESA could
become a big economic power. It had many untapped
resources, which if utilised properly, could make the economy
grow fourfold. Food security could be pivotal, as COMESA
had soil, water and crops, and Dubai had the arrangements
required to market them. “So it’s a win-win relationship
for everyone.” Mahmood further added that COMESA has
succeeded in putting the investment opportunity in the
right context. “There’s great potential in agriculture and the
growing middle class.” Kirubi said that in every economy,
business ruled the game. Africa would like to see Dubai as a
centre of excellence. “We see a lot of counterfeit products in
our markets, be it medicines or other products and would like
to have Dubai’s support on this.” He asked for measurements
to be taken so that no counterfeit products would be coming
through UAE ports into the continent.
Lancaster then asked how trade could be increased
between the regions. Gitari stated that PTA Bank could only
support trade within its policy – geared towards bringing
in goods and raw materials. The nature of the bank’s trade
finance did not allow financing of the distribution of
ready-made goods. Ikomi further added how the UAE and
COMESA could enhance trade facilitation mechanisms or
incentives, such as tax holidays on a bilateral basis. These
kinds of mechanisms can help the two blocs and encourage
trading. Kirubi then suggested that political leaders should
come up with a trade agreement. Mahmood explained how
signing a Free Trade Agreement was a long process but a
good proposition that needed to be developed by ministers
and joint committees of foreign affairs. Shirawi intervened,
saying that rules and regulations worked from top to bottom
while trade worked from bottom to top. Without each other’s
participations in exhibitions, trade shows, etc., no agreement
would be of any use. “First there here has to be an increase in
the exchange of goods and services between the two regions,”
he concluded.
Prof. Dr. Maggie Kigozi, from the Uganda Investment
Authority, stressed that the GCC-COMESA connection was
based on a partnership, not ‘help’, model. “GCC investors are
invited to come and do business in COMESA – and that is
very profitable.”
Another member of the audience enquired about
mechanisms put in place to control business risks.
Shirawi pointed out that details regarding all the investment
protection laws, repatriation laws and transparency still
needed to be improved in order to create better confidence
and trust for all parties involved. However, many securities
had already been put in place, but risks cannot be completely
eradicated, even with a strong legal framework.
Another comment stressed the importance of protecting
the region against an increased influx of counterfeit goods.
COMESA has had an initiative on intellectual property rights
and it had set up standards within the region – these kind of
initiatives needed to be built upon in order to prevent harm to
local businesses.
Main Outcomes:
Dubai provides a solid platform for COMESA’s trade through
its airports, free zones and ports, etc.
Both regions will benefit from this new business partnership
and financing models are available to finance trade.
It was suggested that a Free Trade Agreement should be
signed between Dubai and COMESA – this needs to be further
elaborated by policy makers.
Pat Lancaster, Editor, The Middle East, moderating the session Dubai-
Africa: Strengthening Trade Links
Trade
Parallel Session

23
Moderator:
Andreas Proksch, Director General, Africa Department, GIZ
Speakers:
Usman Ahmed, MD, Corporate Banking, Barclays Africa
Kevin Flannery, General Manager,
International Emirates NBD
Dr. James Mwangi, CEO, Equity Bank
Skander Oueslati, Senior Partner,
AfricInvest Capital Partners
Abdulla Qassem, Chairman, Network International UAE
C
haired by Andreas Proksch, Director General,
Africa Department, GIZ, the session looked at
opportunities in banking and finance across Africa.
The main issue discussed was how the financial
sector can fuel Africa’s economic growth.
First, Proksch addressed Usman Ahmed, MD, Corporate
Banking, Barclays Africa, and asked him to share his
experience of working in banking across the continent.
Ahmad first described the commonalities across the countries
in the COMESA region: the GDP had been growing at over
5% for the last decade and most countries will continue at the
same pace. Traditionally, there had been a concentration on a
few specific commodity sectors: gold, copper, diamonds and
other minerals. Within those sectors were a few key players
and the financial sector had long worked with these players,
hence it understood the risks in the context of the African
environment.
Nowadays, there was much emphasis on trying to
intermediate the FDI flows between China, India and others
in relation to these commodity sectors, and on trying
to develop the retail side. “There are many products and
services being developed and these are attracting interest
from the financial sector. What’s needed is technology and
infrastructure,” Ahmed explained.
Barclays had been in the continent for a long time and
the company understood it very well. “Given growth rates
in Western Europe, the US and developed Asia, it is clear
that Africa is the upcoming market. This makes it quite easy
for banks to follow each other into Africa. For us, Africa
has always been a core market, even during the financial
crisis,” he concluded.
Proksch then wanted to hear from Kevin Flannery,
General Manager, International Emirates NBD, about
his experience of the financial sector moving forward in
Africa. Flannery described how the financial crises in Asia
14 years ago and in Turkey 11 years ago created open and
competitive environments that forced banks to get their acts
together. In doing this, the banks brought what customers
and investors wanted, and created more transparency. He
believed this sort of event may need to happen to Africa to
help the country’s financial sector leapfrog to the level of such
rapidly developing economies. Next, he stated that developing
countries needed to be aware of three things:
1. Basel III: Global standards ask countries to shrink their
balance sheets when they should be doing the opposite.
2. Rating Agencies: Most of the COMESA countries are
not rated, or rated very negatively, which blocks off huge
amounts of business. How rating agencies rate countries
should change.
3. International Accounting Standards: These are designed
by Western economies that are at a certain level of
development. African countries are not at that level of
development, but they are forced to adhere to standards
they are not ready for. That is unfair.
However, Africa could overcome these issues. “There are lots
of international companies which want to come in. With
the level of penetration in Africa so low, there are lots of
opportunities,” Flannery ended.
Parallel Session
New Models for Financial Growth
Dr. James Mwangi, CEO, Equity Bank, sharing his views on the
African finance sector
Finance

24
Proksch then turned to Dr. James Mwangi, CEO, Equity
Bank. As it is one of Africa’s most talked-about success
stories in banking, Proksch wanted to hear from Mwangi
what had made his business one of the most successful in the
African financial sector.
Mwangi noted: “I think Africa provides a unique
opportunity for the finance sector. It has seen huge growth for
the last 15 years.” He broke down the drivers of growth into
the following points:
Low level of penetration: On average, only 25% of Africa
has financial access. As incomes rise, the population is
becoming bankable.
Infrastructure development: This is rapid, specifically in
the telecoms sector. Infrastructure is acting as facilitator to
business and reducing the costs of doing business.
Regional organisations: these are helping individual states
work together, rather than working on their own. Among
other things, this increases the efficiency of regulatory
frameworks and mobility.
Movement towards democratisation: Africa is getting
new and stable political systems that are not only more
democratic but also facilitating business more than ever
before.
The transformation of agriculture: This is a huge industry
in Africa. Changes in this sector are creating shifts in
cross-sector opportunities.
Sustained 5% growth rate: This offers huge opportunities
for the finance sector, which is growing faster than the
economies themselves.
Skander Oueslati, Senior Partner, AfricInvest Capital
Partners, next spoke about investing across the financial
sector, particularly into SMEs. Oueslati explained that his
company focused on providing new products to SMEs to help
them grow their businesses. As some products are not very
well developed in some countries, the company had set up a
fund that helps develop innovative products across Africa.
Through funds like this, the company had invested in a group
of leasing companies in West Africa that were not doing well
due to a lack of commitment from the main shareholder.
Oueslati’s company bought the businesses and turned them
around. It brought in a new local CEO, a new IT system, and
new products. Now it was a profitable business, even if one of
the main countries concerned is Cote d’Ivoire.
Oueslati confirmed that financial products such as leasing,
insurance, housing finance and mortgages can be profitable
and “there are still many more products like this that
can be developed”.
Oueslati then spoke about the difficulty of raising funds
from the private sector. Despite a good track record going
back to 1994, private capital was hard to find. Even when
private investors commit, they commit much less than DFIs.
When it came to North Africa, the GCC countries were
interested, but Sub-Saharan countries were not as interesting
to the GCC.
Abdulla Qassem, Chairman, Network International
UAE, then spoke about his experience in selling payment
systems to different African countries. He began by
describing his company’s development in the Middle East.
Network International, a subsidiary of Emirates NBD group,
specialised in the payment industry, and focused on all the
ways used to make payments of money: credit cards, mobile
payment services, etc. Created in 1995 with a limited vision,
it did not even have an ATM-sharing platform. The company
was a bank that was the result of three bank mergers, so it
needed to take on a project that made all three banks happy.
The concept of outsourcing was very new to the Middle
East, but that was how Network International started its
companies. There were three major advantages in doing so:
Speed to the market (because the infrastructure was
already laid down).
Finance
Parallel Session

25
“Africa
provides a unique
opportunity
for the ﬁnance
sector”
Companies already have teams passing on experience.
Companies only have to pay for utilisation of
infrastructure, they do not need to build one.
In entering the African market, Qassem noted that “what we
realised was that there is a demand for these services – to
have debit or credit card products, ATMs, point of sales – but
the region has a scarcity of skills and infrastructure.” One of
the most important projects was acquiring an Egyptian
company previously called NTC, which was now called
Network Egypt. The company also had a presence in Ghana
and Nigeria. It served 70 banks across Africa with all types
of products: credit debit cards, payment gateways, etc.
Qassem concluded with the firm conviction that “there is
potential. We believe in Africa.”
Leading the discussion that followed, the moderator,
Proksch asked Ahmed about the potential of Islamic
banking. Ahmed believed this could be extremely successful
in COMESA. “Because there is so much commodity-based
activity in the COMESA economy, it seems that Islamic
banking would be a very natural fit,” he emphasised. “Most
commodities, except gold, are approved Islamically to
underpin transactions,” Ahmed explained. “If Islamic banks
consider Africa important and are willing to partake in
some of the risk taking that goes with financing imports and
exports, there is huge potential for them. There is also huge
potential in infrastructure as well, which is also very suitable
for Islamic banking. What is needed is that these banks come
and take risks. Relying just on DFIs and the World Bank does
not add value from a commercial perspective. On the retail
side, there is Islamic banking potential in Kenya, Nigeria and
others. Some countries are more receptive to Islamic banking
than others.”
Flannery commented on the same subject, stating that
issues with property entitlement and fiscal aspects had
created blocks to Islamic banking. Unless there was a huge
demand in the market, the structural concerns could be a big
challenge.
Next, Proksch moved the discussion into the context of
the changing political landscape of the Middle East and
North Africa, and how it could be affecting operations on the
ground. Oueslati pointed out: “As a Tunisian, I think that
the change that happened in Tunisia and Egypt will unlock a
lot of opportunities in these two countries.” As an example,
he explained that there used to be only one micro-finance
institution in Tunisia, called Enda, because the former
government did not want the lower sector of the economy
to get more power. Now, doors are open for micro-finance
in Tunisia, and this will address issues that caused price
rises in the country. Lending to micro-enterprises will bring
opportunities for the country and investors in many segments
of the economy.”
Oueslati also expressed his frustration at the fact that a
country like Tunisia, which had almost 100% mobile phone
penetration, did not have mobile payment systems because
the former government felt threatened by it. These sorts of
government blocks kept countries like Tunisia behind, and
the financial service providers in those countries now had to
do a lot to catch up to international standards.
Qassem emphasised the importance of political stability
for investors. “The revolutions in Tunisia and Egypt are
opening many opportunities and markets there have a
brighter future once they stabilise. Many services are now
being unveiled because they are no longer restricted. Mobiles
are a great example, but it also goes across all the sectors.”
Mwangi asked if things could be put into perspective. He
expressed amazement at how fast Africa was transforming.
It had taken the developed world over 200 years to make
this transformation. Africa must pay attention to the next
generation emerging – it is very educated, sophisticated and
connected. Investors must work through the transition by
focusing on these young people rather than just the politics.

26
Flannery described Emirates NBD’s analysis of Libya,
which saw the banking system as not geared towards
developing the markets and the economy. He expressed hope
that this will now change. He remembered how in 1999, the
company went to Syria to open up one of the first private
banks. Since then, the country had changed dramatically.
Starting the question and answer session was Dr. Asfour,
Vice Chair of the COMESA Business Council and President
of the Egyptian Business Women Association, who
discussed the need for social justice in Africa. The revolution
in North Africa started because of unemployment, poverty
and the gap between rich and poor. She wondered how
investments can impact on the daily life of African people.
A question was raised by a member of the audience
regarding SMEs. Although there has been little talk about
SMEs, they are the backbone of the economy. He recognised
that it is difficult to finance SMEs because of transparency
issues and wondered how these SMEs are being financed.
Oueslati explained that his company focused on SMEs,
and knew that they are the backbone of most African
economies. Investing in them is not easy at all. Proximity
is a must, which is why they had six offices in Africa.
His company’s role is to clean up the books and enhance
corporate governance. They are straightforward with their
clients, saying these are the rules of the game. In several
instances, they had to drop potential companies because they
would not comply with strict requirements. There are some
banks that are supportive of SMEs, but they are limited and
local. Equity Bank is one of the banks that look at the bottom
of the pyramid in Kenya. But to help SMEs move to the next
level, we needed the help of government and local banks, he
said.
Mwangi stated that this was the official growth sector in
Africa. The micro and SME sectors were what was pushing
the economies. This sector can be banked, but we needed to
develop special programmes and focus more on cash-flow
lending rather than collateral-based lending, he said. Finance
lending needed to be more inclusive of the bottom of the
pyramid. Technology is one of the biggest drivers of equity:
mobile banking is making banking much easier, as there is
no need for bricks and mortar. Technology will be the biggest
driver of inclusion in Africa.
Main Outcomes:
The African financial sector offers many opportunities and
has seen tremendous growth in the last 15 years. This is due
to a rising bankable population, infrastructure development,
regional organisations that are helping to increase efficiency
and mobility, a general movement towards democratisation,
the transformation of Africa’s main sectors (such as
agriculture) and a sustained 5% growth rate.
Despite SMEs forming the backbone of the economy, it is
still particularly difficult to find funding from large banking
and financial institutions. Private capital is also hard to come
by to facilitate investments into SMEs.
The demand in Africa for financial services and products is
growing and promises to be profitable.
Islamic banking offers an opportunity for the financial
sector in COMESA, as most commodities and infrastructure
are very suitable for Islamic banking. However, there are
structural concerns that will hinder the development of
Islamic banking unless there are huge demands for it.
The political developments in the Middle East and North
Africa will open up many opportunities for the economies
and particularly the financial sectors. This is already visible in
Tunisia, where many micro-finance institutions have emerged
in the weeks following the revolution.
Left to right: Andreas Proksch, Director General, Africa Department,
GIZ; Skander Oueslati, Senior Partner, AfricInvest Capital Partners
and Usman Ahmed, MD, Corporate Banking, Barclays Africa
Finance
Parallel Session

27
“You cannot
escape logistics:
it is an essential
element of
trade”
Moderator:
Speakers:
Khaled Ahmed, Senior Vice President Strategy and
Development, Economic Zones World, UAE
Amadou Diallo, CEO, Africa and South Asia Pacific, DHL
Global Forwarding, Africa
Hussein Hachem, CEO, Middle East and Africa, Aramex
Deanne De Vries, VP, Africa Agility
Sanjeev S. Gadhia, CEO, Astral Aviation Ltd. Kenya
C
haired by Anver Versi, Editor, African Business
magazine, this session aimed at looking at where
the opportunities within the logistics sector in the
COMESA region are to be found. Versi introduced
the discussion by giving an overview of logistics.
He stated that “a history of trade is a history of logistics” and
therefore it is a key part of the business of moving goods and
people from point to point.
He addressed Sanjeev Gadhia, CEO, Astral Aviation
Ltd. Kenya, asking him to share his experiences of running
a cargo airline. Gadhia explained that logistics had many
challenges and, at the same time, wonderful opportunities.
The challenges now for the COMESA region were several:
primarily, the ports needed to be expanded; transit corridors
were stretched beyond capacity and needed to be expanded
too; railways in East Africa were in need of rehabilitation;
new talent needed to be found and trained; and airport
infrastructure needed to be upgraded to make the airports
more efficient. “But these challenges can be opportunities for
trade,” he concluded.
Versi added that timing was also a part of the challenge:
there is a problem with moving goods from the port
of Mombasa because it takes time to get goods from
the warehouses to rail and roads. The goods eventually
reach their destination a long time later. “Simply moving
goods from point A to point B needs better customs and
synchronised systems.”
Next, Khaled Ahmed, Senior Vice President Strategy
and Development, Economic Zones World, UAE, gave his
input on the role of logistics in the UAE. Ahmed said that
Dubai had been a merchant society from the beginning, from
pearl diving and fish, then to oil, tourism and real estate, etc.
Across the timeline, logistics had been the base for facilitating
this trade and growth. The logistics infrastructure had always
been the bedrock of trade. Currently the free zones in the
UAE house 6,000 companies, most of which were featured
in the Fortune 500, and these economic zones allowed
companies to set up businesses and trade internally – all of
which required a whole set of instruments and tools. “You
cannot escape logistics: it is an essential element of trade.”
Hussein Hachem, CEO, Middle East and Africa,
Aramex, noted Africa’s major role in trade: in terms of
resources, Africa was the richest continent and is heavily
involved in trade with the Middle East. Commodities travel
from Kenya, down to Djuba, and finally Zambia. Africa and
COMESA are considered the most important in bringing the
products closer to the market.
Deanne De Vries, VP, Africa Agility, described her
company’s activities and stressed that Agility wants to
facilitate trade by following the path of least resistance,
and the UAE had many good policies to make trade easier.
African countries were quickly gaining pace, and Rwanda is a
great example, as it was rated the world’s top reformer in the
World Bank’s Doing Business report, partly due to its trade-
friendly policies.
Amadou Diallo, CEO, Africa and South Asia Pacific,
DHL Global Forwarding, explained that DHL had a lot of
trade to Asia and the Middle East, and that volume of trade
is constantly shifting. He believed that it was important to
let the African consumer have the opportunity of choice,
and businesses should try to set up a platform to sell goods
anywhere in the world. Unfortunately, it is not well known
that Africa is such a commercial hub because infrastructure
had not been part of the focus.
Versi then asked for examples of what investors needed to
know. Gadhia noted that Africa has an abundance of labour
and natural resources but was not exploiting them properly
yet. Nairobi, Johannesburg, Lagos and Cairo were all working
from and/or within hubs into almost everywhere, including
the DRC, so trade within Africa is possible as long as there
were customers. What Africa needed right now is expertise
with PPP and sustainable business.
Ahmed described a success story of PPP by using Dubai
World’s experience in Djibouti as an example. The experience
Identifying Opportunities
in Logistics
Parallel Session
Logistics

28
was successful as a lot of learning came from it and the port
brought out hundreds of companies. Ahmed believed that as
governments plan for these things, they should think of the
returns they will receive in the end. In essence, the economy
had to be as open to free trade as it can, or else the economy
would be closed in. So they should create export free zones
and invest: the model for business was changing and investors
must keep up.
Diallo added to Ahmed’s point by encouraging businesses
to mobilise and inform investors. Business had been growing
27% across Africa every year, and 50% is the rate of growth
in Indian and Chinese markets. Obviously African countries
needed to make their markets grow as fast.
De Vries pointed out that it was important to remember
that “Africa is not a country. It is over 50 countries”, and that
means there must be offices in every country, and logistics
should work with locals to get insider knowledge. “The key is
to show respect, even if you understand logistics,” she said.
“Ultimately, there is a viable solution to moving goods.”
The first question was about geographical considerations:
“Considering that all the elements of opening an operation
are met, what is the role of the geographic environment? Does
it affect decisions significantly?”
Hachem responded that it depended on the capacity of
the trade movement. If establishing a hub made commercial
sense, then it would happen. Gadhia answered that in terms
of airline services, it depended on that country’s regulations
in terms of moving in between landlocked countries.
He stressed that the Nigerian government is an excellent
example, as it has taken steps to help logistics significantly. De
Vries said that with regard to Agility, their location is often
decided by their customers.
The next comment and question came from Dr. Kwaku,
Founder, The Kwaku Group: “The importance of logistics
is the choice that it gives the consumer. But we have not
emphasised enough the chances of competitiveness that
it gives the seller. If you want to play with the big boys in
the global market, you need to take logistics seriously. The
issue of supply-chain management is linked to government
supplies (in former British colonies), which are still based on
the curriculum of the 1960s. What is the HR capacity that
is supporting the sector in the last 10 years? Are we getting
the right skills? I see a lot of logistics institutes popping up,
but how useful are they? Right now the situation is very
opportunistic. What do you think we need to drive this sector
successfully?”
Diallo answered that it was a form of trial and error:
people were appointed from Africa, they made mistakes and
then they were trained in places like Dubai to improve. In
some ways things were getting better, and projects such as the
MDGs were beneficial to development.
The final question came from the moderator himself, who
asked at large: “What is the scope of investment?”
Hachem concluded the session by replying that “the scope
is as big as the investment”. If Tanzania wanted to compete
with Kenya, it needed better capacity and damage-control
infrastructure. He noted that if you had a strategy for your
economy, you needed to enable a proper infrastructure. We
lived in a competitive world and the clients moved with it,
so one cannot rely on loyalty, he said. In order for Africa to
become more competitive, it needed to upgrade its logistics
capacity.
Main outcomes:
Logistics is an essential element for trade. Despite trade
having increased considerably, making Africa a commercial
hub, there are still many logistical and infrastructural
shortcomings, which make the transport of goods difficult.
Warehouses, airports, rail, roads and ports need to be
improved, as well as their connectivity.
PPP projects can be very beneficial, as they bring along
experience and business opportunities for the private and
public sectors.
Capacity building is key, and talent needs to be trained
effectively. While there are many logistical institutes cropping
up in Africa, experience is still lacking.
In order to become commercially more competitive, Africa
needs to upgrade its logistics capacity.
Left to right: Deanne De Vries, VP, Africa Agility; Hussein Hachem,
CEO, Middle East and Africa, Aramex and Sanjeev S. Gadhia, CEO,
Astral Aviation
Logistics
Parallel Session

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