The challenge still faced
Living Kigali
THE WORLD OF HEINEKEN
The continent is showing improvements in other areas, too. The
Ugandan government's ABC (Abstinence, Be Faithful, use Condoms)
transmission prevention programme has attracted worldwide praise for its
successful reduction of HIV transmission rates in the country. The Ugandan
success has also sparked the introduction of new AIDS programmes by the
presidents of Nigeria and Botswana, as well as the agreement of a regional
AIDS strategic programme by the Southern African Development
Community in 2003.
Despite the changes the continent is undergoing, there's no denying that
many challenges remain to the development of business in Africa. "I talk to
a lot of diplomats and quite a few businessmen," says Steven Ellis, a
researcher on Africa at the University of Leiden and a former editor of
Africa Confidential, "and the consensus is that there are only three
countries in Africa—South Africa, Botswana and Mauritius—where business
can be done as normally as anywhere else in the world."
He argues that past 'hyping' of African successes—such as the early
political success of Ghana—which later turned out to be failures, should
give contemporary observers pause for thought. "It's an irony that in the
West, Afro-pessimism used to be a feature of the political right wing, while
Afro-optimism was mostly left-wing," he says. "Now it's the other way
around." Rather than being caught up in a new hype, potential investors
should consider the possibilities in Africa on a case-by-case basis.
His comments are a useful reminder that attitudes to Africa from
outside the continent have often been a matter of political fashion or
convenience.
"We see Africa as an emerging market, and the numbers are very
good," says Heineken Regional President Africa Middle East Tom de Man,
a firm believer in the continent's ability to deliver profits to international
firms willing to invest and stake a long term place in the markets they
operate in. In fact Heineken's investment in the continent goes back as far
as 1923. And growing confidence is one reason why Heineken has invested
so heavily in the region in recent years: in 2003 alone the company
invested €250 million in Africa.
Take Nigeria, for example, where Heineken owns a majority share in two
of the main breweries, which together serve 71% of the national beer
market. "We expect appreciable growth in volume for the next few years,"
says Bola Akingbade, Corporate Affairs Director of the Heineken-owned
company, Nigerian Breweries, in Lagos.
In Nigeria, he says, the average beer drinker consumes six litres per
year, while in South Africa the figure is closer to 50 litres. "If you put these
figures together with the economic spin-off effects of good governance and
anti-corruption programmes across the continent, you come up with large
numbers of new consumers with more disposable income. There is
obviously huge growth potential."
But even more than Nigeria, it is countries like Rwanda that demonstrate
how the presence of Heineken matters, in terms of profits, planet and
people.
The neatness of the streets, so unusual for an African city, is a visible
sign of the government's zero-tolerance policy with regard to everything
from littering to more serious crimes. It makes for a refreshing change to
hear people in Africa talking about how unadvisable it is to be involved in
dodging taxes or any form of cheating. The sense of safety is also
translating into a burgeoning social life in the city. The modest high streets
throng with people going about their daily business. The many restaurants,
"cabarets" and hotel bars are beginning to fill again with people, money to
spend in hand.
Rwanda's economy has undergone a remarkable recovery since 1994.
Annual GDP growth averaged 7.7% from 1998-2002, slowing down to an
'FrouRS
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Oecember 4th, in Durban, South Africa musicians and fans will
celebrate the newly Heineken sponsered Kora Music Awards
Heineken being shipped from the Kigali brewery
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