Uganda’s Private Sector Activity Expands in March – PMI

Private sector activity in Uganda expanded in March compared to the previous month, with companies reporting a boost in production and sales volumes, the inaugural results of a new survey index showed on Wednesday.

The Markit Stanbic Bank Uganda Purchasing Managers’ Index (PMI) rose to 53.5 last month, up from 50.9 in February, the survey report said. Markit collected data for 10 months prior to launching the PMI.

“Companies reported increases in both output and new orders for the second straight month in March,” the report said, adding higher activity was reported in a range of sectors including agriculture, industry, services and wholesale and retail.

The findings of the survey offer a glimmer of hope after Uganda’s central bank said overall economic expansion is slowing.

This month, policymakers cut the benchmark lending rate by 50 basis points to 11 percent to speed up private sector credit flow and boost flagging growth.

The new Markit Stanbic survey found hiring by firms was also rising on the back of the higher orders.

“Staffing levels rose in the agriculture, services and wholesale and retail sectors,” the survey said.

The east African economy, which mostly relies on coffee for its foreign exchange needs, is expected to begin crude oil production in 2020.

– Kindly note: Detailed PMI data are only available under licence from Markit and customers need to apply to Markit for a licence. To subscribe to the full data, click on the following link: www.markit.com/Contact-Us. For further information, please phone Markit on +44 20 72602454 or email economics@markit.com.

Originally reported by Reuters.

Remember, no problem has a quick fix solution. Thus, always ensure to consult highly knowledgeable group of professionals whom would provide you with a collective advice, never individual advice. This group advice and approach is unique with CWIIL Group and is based on the overall Management Philosophy of all CWIIL Group Companies.

Consulting CWIIL Group of Companies, for any / all investment matters ensures advice based on highest level of knowledge which are given to you by a team of select research-oriented experts whom each will do their own assessment of your matter, and also assess it together, thus ensuring that in case a mistake has been made by one, it will be noticed and corrected even before it is being passed on to you. Receiving incorrect and un-knowledgeable investment advice can be disastrous and thus should be avoided.

CWIIL Group of Companies is a global group of multi-specialized units with diversified interests and activities, wherein each company is a separate legal entity registered under prevailing laws in different parts of the world. CWIIL Group of Companies Products, Services, Project and Solutions are in a multitude of Verticals including, but not limited to, Infrastructure, Power, Oil & Gas, Legal, Media, Technology, ITES, HR, Shipping, Aviation, Real Estate, Hospitals, Health and Medicine, Education, Funding & Investment, Business and Legal Consultancy, and Public Private Partnerships, and other CWIIL Group Units, worldwide, to name a few.

For Queries Feel Free to Contact :

Mr. Mohammad Mukhtar Mustafa,
Deputy Global Director, No. 4,
Strategic Business & Intelligence Division,
Email : deputy.gd.4@cwiilgroup.eu
Voice : +45.8176.1923
Connect : LinkedIn – Twitter – Facebook – Quora

For Queries Specific to Africa :
Email : africa@cwiilgroup.com , hq@cwiilgroup.eu
Web : www.cwiilgroup.com , www.cwiilgroup.eu

For Any / All Other Queries :
CWIIL Group Global Regional Headquarters Denmark,
Address : No. 1, Klokkebjergevej, DK6900 Skjern, Denmark
Voice : +45.5148.3608
Fax : +45.7014.1498
Email : corpcomm@cwiilgroup.eu
Web : www.cwiilgroup.eu
Connect : LinkedIn – Twitter – Facebook – Quora

Office Hours :
Monday to Friday : 10.00 – 17.00 CET.
Saturday : 10.00 – 14.00 CET.
Sunday : Closed.

The Corporate Communications Team would require minimum a fortnight for Reviewing & Responding to Queries, which please note.

Somali Skies Welcome Airlines – Professional Business Consultancy by CWIIL Group of Companies

Airspace over Somalia has been considered a no-go area by most foreign airlines for two decades, but progress on the security and political fronts is now prompting a surge in commercial flights.

Flydubai, the short-haul affiliate of Emirates Airline, became the latest international carrier to add Somalia to its network in March, when it launched a four-times weekly service to Hargeisa, the capital of the semi-autonomous republic of Somaliland.

Ethiopian Airlines and Turkish Airlines launched services to Somaliland and Mogadishu respectively in 2012, gradually upping capacity with higher frequencies and larger planes as demand snowballed. Meanwhile, Qatar Airways is among the major carriers now evaluating a route launch.

As a litmus test for Somalia’s economic prospects, improved connectivity can only be good news for the country and its citizens. Yet it could be a double-edged sword for local airlines that flourished by braving the skies when foreign operators were nowhere to be seen.

“We were the lifeline of the people,” says Mohammed Ibrahim Yassin, the chief executive of Daallo Airlines, founded in Djibouti in 1991, the same year Somalia slipped into civil war. “There was a time when there were no money transfers, no telephones, no postal system – we were everything for the country. We were the link to the outside world. We transported not only people, but goods, money, medicine.”

Together with Jubba Airways and African Express Airways, Daallo has provided war-weary Somalis an alternative to risky ground transportation through years of clan warfare, al-Shabaab threat and foreign military interventions. Though these airlines’ fleets and route networks are modest by global standards, they are big enough to offer connectivity with regional hubs such as Nairobi and Dubai – facilitating onward travel for Somali businesspeople, and opening a sky corridor for the country’s widely spread diaspora.

Yassin describes Daallo’s financial performance as “quite healthy”, noting that the airline could not have survived without a commercially viable business model. “The government doesn’t have the money,” he stresses, when asked if the company has ever received subsidies. “In Somalia and Somaliland, it’s the private sector that is the major vehicle of the economy.”

Safety in Numbers

However, as more foreign operators enter Somali skies, the nature of the competitive threat that Daallo faces is changing. All three major international carriers now flying to Somalia are partly or fully government-owned. Flydubai’s big brother, Emirates, is one of three Gulf carriers accused by US airlines of receiving $42bn in anti-competitive state support. Though popular with the travelling public, excessively cheap tickets could spell the death knell for airlines such as Daallo that must stand on their own two feet without government aid.

Pre-empting this threat, Yassin has teamed up with his one-time rival, Abdullahi Warsame, the managing director of Jubba, to merge operations under the umbrella of a new holding company, Africa Aero Alliance.

This would have been unthinkable 10 years ago when the two carriers fought fiercely for domestic market share. But today, consolidation now seems a logical response to an onslaught by deep-pocketed, well-organised foreign rivals.

“Competitive pressure is there, but also more than that it’s a matter of maturity,” Yassin explains. “We have been operating for the last 24 years. We have realised that Africa really needs a different way of playing the game of competition…It’s not that easy to finance aircraft in Africa, but by mobilising resources locally among the people, by putting our forces together, we have an alternative way. This is what we have realised after so long, and that’s the reason we are taking this step.”

From a passenger’s perspective, there will be few obvious changes at first. The combined fleet of two Airbus A321s, two Boeing 737s and one BAe 146 will be repainted with the logo of Africa Aero Alliance, albeit while retaining the Jubba and Daallo brands in smaller writing. Both carriers will continue to market their own distinct travel services.

But, behind the scenes, synergies have been accruing since 1st of March, when the integration formally began and a share swap brought the owners together. Codeshare agreements now allow both airlines to sell tickets on each other’s flights, thereby optimising capacity management and keeping the planes as full as possible. Flight schedules are being timed to offer complementary, rather than cannibalistic, services. And negotiations over the procurement of two ATR 72s will be strengthened by the greater purchasing power that a larger company commands.

The hunt for economies of scale has even motivated Yassin to look beyond Daallo’s home markets of Somalia and Djibouti. These two countries, he notes, are not alone in their aviation handicap. Several other Central and East African nations also suffer from under-developed air transport sectors.

“The objective of this merger is to create a bigger alliance for African carriers. Daallo and Jubba are the first airline members, but we are looking to expand the alliance across Africa,” says Yassin, identifying Chad and Uganda as two countries being evaluated. “The company will expand to some countries which don’t have national carriers, or are under-served…There is already interest coming from small carriers from different places.”

Despite talking up his long-term ambitions, Yassin is keeping his feet on the ground in the early stages of the partnership. Expansion by the Somali units will initially be cautious, focussing on Addis Ababa in Ethiopia, Entebbe in Uganda and perhaps some points in Yemen once that country stabilises. Optimisation of the regional network will then give way to gradual fleet modernisation, followed eventually by the resumption of Daallo’s European flights to London and Paris.

The airline boss has no interest in hyping up Somalia’s recovery from two decades of debilitating civil war. To the contrary, he cautions that there is “a very, very long way to go” before Somalia can function as a normal member of the global community of nations.

But with foreign airlines sniffing around emerging markets in Africa – and not always competing fairly when they find them – Daallo and Jubba have acted decisively to protect their slice of the pie. ‘Safety in numbers’ is the maxim. And in civil aviation history, it has typically been a wise one.

These materials are not intended and should not be used as legal / investment advice or other recommendation. If you need a legal / investment opinion on a specific issue or factual situation, please contact a lawyer / investment advisor. Anyone using these materials should not rely on them as a substitute for legal / investment advice.

Remember, no problem has a quick fix solution. Thus, always ensure to consult highly knowledgeable group of professionals whom would provide you with a collective advice, never individual advice. This group advice and approach is unique with CWIIL Group and is based on the overall Management Philosophy of all CWIIL Group Companies.

Consulting CWIIL Group of Companies, for any / all investment matters ensures advice based on highest level of knowledge which are given to you by a team of select research-oriented experts whom each will do their own assessment of your matter, and also assess it together, thus ensuring that in case a mistake has been made by one, it will be noticed and corrected even before it is being passed on to you. Receiving incorrect and un-knowledgeable investment advice can be disastrous and thus should be avoided.

CWIIL Group of Companies is a global group of multi-specialized units with diversified interests and activities, wherein each company is a separate legal entity registered under prevailing laws in different parts of the world. CWIIL Group of Companies Products, Services, Project and Solutions are in a multitude of Verticals including, but not limited to, Infrastructure, Power, Oil & Gas, Legal, Media, Technology, ITES, HR, Shipping, Aviation, Real Estate, Hospitals, Health and Medicine, Education, Funding & Investment, Business and Legal Consultancy, and Public Private Partnerships, and other CWIIL Group Units, worldwide, to name a few.

For Further Queries or to Request a Personal Quote Feel Free to Contact :

Mr. Francis Thomas Matthews,
Deputy Global Director, No. 8
Marketing Research & Development Division,
Email : deputy.gd.8@cwiilgroup.eu
Voice : +45.8176.1924
Connect : LinkedIn I Twitter I Facebook I Tumblr

For Queries Specific to Africa :
Email: africa@cwiilgroup.comhq@cwiilgroup.eu
Web: www.cwiilgroup.comwww.cwiilgroup.eu

For Any / All Other Queries :
CWIIL Group Global Regional Headquarters Denmark,
Address : No. 1, Klokkebjergevej, DK6900 Skjern, Denmark
Voice : +45.5148.3608
Fax : +45.7014.1498
Email : corpcomm@cwiilgroup.eu
Web : www.cwiilgroup.eu
Connect : LinkedIn – Twitter – Facebook – Quora

Office Hours :
Monday to Friday : 10.00 – 17.00 CET.
Saturday : 10.00 – 14.00 CET.
Sunday : Closed.

The Corporate Communications Team would require minimum a fortnight for Reviewing & Responding to Queries, which please note.

Health is Worth the Investment for Government and Business – Specialised Advice by CWIIL Group

Without health, there is no wealth. Unless communities can survive and thrive, sustainable development remains a pipe dream.

Health is just one goal amongst the proposed 17 Sustainable Development Goals that, come September, are due to replace the Millennium Development Goals (MDGs) that have guided global development policy since 2000.

But health is the golden thread that underpins all other aims – such as education and economic growth. If people are well, they are better able to go to school, work and prosper. As both an enabler of sustainable development and an end in itself, health deserves sufficient attention and investment.

It was heartening to see that healthcare got a fair hearing last week in Addis Ababa at the Financing for Development conference – a summit dedicated to considering how the global community can resource and realise the ambitious new development agenda.

It was encouraging to see the discussion moving away from an aid agenda to a commitment from finance ministers to support domestic economic growth and job creation. The adoption of a ‘social compact’ will encourage countries to set national spending targets in public services, including health and education.

Supporting access to healthcare does not have to be limited to government – as Addis illustrated. During the conference, a new multi-sector Global Financing Facility was announced that will unlock billions of dollars in international, private and public funding to support women and children’s health.

All sectors, including business, can benefit from investing in healthcare. A healthy population leads to a stronger economy that allows business to grow, deliver and contribute to the societies in which it operates. This kind of virtuous circle means it makes sense for the private as well as the public sector to take a stake in improving health outcomes.

The numbers back up why this is both worthwhile and urgent. Take malaria: while the MDGs galvanised control efforts and deaths from the disease have been almost halved, those gains can easily be lost. Despite progress, malaria still claims more than 500,000 lives each year – mostly young children in Africa.

Not only is this devastating for families, but malaria drains economies. As much as 40 percent of health spending in Africa goes towards fighting the disease. Studies suggest a 10 percent reduction in malaria could add 0.3 percentage points to the GDP of countries with a high incidence of the disease. On 24 July, European regulators approved the world’s first malaria vaccine developed by GSK with backing from Bill Gates.

Although investing in healthcare is arguably one of the ‘best buys’ in global development, financing for health systems falls short. The consequences are stark. Around 400 million people around the world are still without access to essential health services such as childhood vaccines, according to a recent report by the WHO and the World Bank.

Underinvestment in healthcare leaves countries dangerously vulnerable to crises, as the Ebola outbreak in West Africa illustrated. As well as claiming thousands of lives, it shut down communities and economies. It also reversed development progress made in post-conflict countries including Sierra Leone and Liberia.

Countries like Rwanda are already demonstrating that it is possible to deliver accessible, affordable healthcare to citizens. In light of the Addis compact, other countries will hopefully consider how they can follow Rwanda’s lead.

Partnering Across Sectors

While governments should lead, achieving this does need partnerships. Increasing access to healthcare is a challenge that benefits from different types of organisations with different skills and expertise working together. This agenda must include the private sector.

This is one reason why GlaxoSmithKline, one of the world’s largest healthcare companies, and non-profit Save the Children struck a five-year partnership. They aim to pool their expertise to help save the lives of one million children through projects such as developing child-friendly medicines.

Such agenda demands lateral thinking, try different models and work with others. One model GSK is pioneering in the world’s poorest countries has led to switch focus to increasing the volume of medicines sold. GSK have capped prices of their patented products in the least developed countries at 25 percent of those in the developed world.

In these countries, they also reinvest 20 percent of the profits back into training health workers in partnership with three NGOs: Amref Health Africa, CARE International and Save the Children. These kinds of investments deliver a great return: they help business to grow as well as contributing to the health ecosystem.

Moreover, they can act as a catalyst for others to invest in healthcare. Already, the mobile and banking sectors are contributing to healthcare following the lead of some extractive companies. If access to healthcare and sustainable development is to be a reality, more industries will need to come on board.

The commitments at Addis were laudable, but to turn words into action on health, business will need to be at the table as well as government.

These materials are not intended and should not be used as legal / investment advice or other recommendation. If you need a legal / investment opinion on a specific issue or factual situation, please contact a lawyer / investment advisor. Anyone using these materials should not rely on them as a substitute for legal / investment advice.

Remember, no problem has a quick fix solution. Thus, always ensure to consult highly knowledgeable group of professionals whom would provide you with a collective advice, never individual advice. This group advice and approach is unique with CWIIL Group and is based on the overall Management Philosophy of all CWIIL Group Companies.

Consulting CWIIL Group of Companies, for any / all investment matters ensures advice based on highest level of knowledge which are given to you by a team of select research-oriented experts whom each will do their own assessment of your matter, and also assess it together, thus ensuring that in case a mistake has been made by one, it will be noticed and corrected even before it is being passed on to you. Receiving incorrect and un-knowledgeable investment advice can be disastrous and thus should be avoided.

CWIIL Group of Companies is a global group of multi-specialized units with diversified interests and activities, wherein each company is a separate legal entity registered under prevailing laws in different parts of the world. CWIIL Group of Companies Products, Services, Project and Solutions are in a multitude of Verticals including, but not limited to, Infrastructure, Power, Oil & Gas, Legal, Media, Technology, ITES, HR, Shipping, Aviation, Real Estate, Hospitals, Health and Medicine, Education, Funding & Investment, Business and Legal Consultancy, and Public Private Partnerships, and other CWIIL Group Units, worldwide, to name a few.

For Further Queries or to Request a Personal Quote Feel Free to Contact :

Mr. Francis Thomas Matthews,
Deputy Global Director, No. 8
Marketing Research & Development Division,
Email : deputy.gd.8@cwiilgroup.eu
Voice : +45.8176.1924
Connect : LinkedIn I Twitter I Facebook I Tumblr

For Queries Specific to Africa :
Email: africa@cwiilgroup.comhq@cwiilgroup.eu
Web: www.cwiilgroup.comwww.cwiilgroup.eu

For Any / All Other Queries :
CWIIL Group Global Regional Headquarters Denmark,
Address : No. 1, Klokkebjergevej, DK6900 Skjern, Denmark
Voice : +45.5148.3608
Fax : +45.7014.1498
Email : corpcomm@cwiilgroup.eu
Web : www.cwiilgroup.eu
Connect : LinkedIn – Twitter – Facebook – Quora

Office Hours :
Monday to Friday : 10.00 – 17.00 CET.
Saturday : 10.00 – 14.00 CET.
Sunday : Closed.

The Corporate Communications Team would require minimum a fortnight for Reviewing & Responding to Queries, which please note.

Think Beyond Microfinance When Talking About Businesswomen – Specialized Advice From CWIIL Group

As the Third International Financing for Development conference kicks off in Addis Ababa, Ethiopia, Africa is set to begin implementing its ambitious 50-year development blueprint, Agenda 2063, bringing into focus the issue of how to finance development plans.

Agenda 2063 will require significant financing from a wide range of sources to fund infrastructure development, industrialization, private sector growth, technology and human capital development if the continent is to achieve the socioeconomic transformation that it is envisioning. True, financing in general, is a challenge for Africa, but no group faces more barriers to accessing finance than the women of Africa.

Africa’s economic growth over the past decade has been positive, but the impressive numbers do not tell the whole story. While women own about 48% of all enterprises in Africa, the African Development Bank estimates that they account for only 20% of the continent’s banked population. Roughly four in every five women on the continent lack access to a bank account at a formal financial institution, compared to about one in every four men. The disparity is particularly glaring in agriculture. Although more than 70% of farmers in Africa are women, they benefit from only one-tenth of the credit given to small-scale farmers and less than 1% of total credit to agriculture.

The challenges African women face in accessing finance include women’s lack of collateral, legal and cultural barriers to land and property ownership, discriminatory regulations, limited employment in the formal sector, lack of availability of financial products targeted to their needs and the fact that banks do not fully understand female-run businesses or the market niches they occupy. These barriers have hindered the capacity of women to grow and develop businesses, which, as a result, has held back economic growth on the continent.

The widening disparity in access to finance has led to the rising popularity of microfinance for women. In the past decade, microfinance institutions, which include non-profit groups, savings and credit cooperatives, regulated specialized providers and others, have reached many women who were previously excluded from formal financing, through small-scale loans and credit to small enterprises and poor households.

Yet while the discussion about financing for development has widened in scope, the discussion about financing for women has remained stubbornly locked on one scale – micro. Speaking early this year in Addis Ababa at a conference of African finance ministers, Nkosazana Dlamini-Zuma, the chairperson of the African Union Commission, implored participants to think beyond “micro” when discussing finance for projects run by women in Africa.

“We hear micro this, micro that…there is nothing micro about women!” Ms. Dlamini-Zuma told participants.

Similarly, Elizabeth Rasekoala, the co-founder of SET4Women, the Southern African Reference Group on Gender, Science and Technology, urged participants at a conference on the role of women in implementing Agenda 2063 to “start thinking big and stop prefacing everything to do with women with ‘small’ or ‘micro’ but to engage them as entrepreneurs.”

Gender advocates say that as key drivers in implementing Africa’s post-2015 development agenda and Agenda 2063, female business owners must be empowered to go beyond small- and micro-enterprises and get access to the finance needed to create medium- and large-scale businesses. Access to finance on such a scale would be transformative, and empower women to enter productive value chains, expand hiring and employment opportunities, utilize efficient technologies and expand the reach of their businesses beyond their borders.

Analysts agree that for this goal to be reached, banks have to open their doors and ensure financial inclusion and increased access for women. This would require formal financial institutions to consider new and innovative approaches to conducting business in order to meet women’s needs. A small but growing number of African banks have developed products that target women, and others have adopted women-friendly banking procedures, including eliminating minimum balances, widening the scope of elements considered in credit evaluations, reducing collateral requirements and allowing alternate forms of collateral. Such practices, which have shown positive results and contributed towards reducing gender-based barriers, should be implemented and expanded by more banks on the continent.

According to gender advocates, empowering African businesswomen is critical; it demystifies credit application processes, addresses risk aversion and ultimately strengthens women’s access to financing. Other areas that might need to be strengthened include education and capacity building in financial literacy and business skills.

What Can Be Done

In order to create an enabling environment, governments will need to modify and adjust their legal, regulatory and supervisory frameworks to remove barriers to finance for women, such as discriminatory legal provisions that confine women to the legal status of minors and laws that prohibit women from owning property. After such laws and policies are changed, women and decision-makers should be informed of these changes.

Governments and development organizations, especially international financial institutions, also have important roles to play in promoting equal opportunities for women and men. They should encourage banks and other formal institutions to increase credit access for African women, and provide technical assistance and training to institutions that are unfamiliar with lending to women. They should also provide guarantees to raise the confidence of lending institutions so that they invest greater capital in women-owned businesses.

Finally, governments will need to bridge the gap between the formal and informal sectors by simplifying business registration procedures and encouraging women-owned businesses in the informal sector to register with governments and tax authorities, as this will also facilitate their access to financial markets.

These materials are not intended and should not be used as legal / investment advice or other recommendation. If you need a legal / investment opinion on a specific issue or factual situation, please contact a lawyer / investment advisor. Anyone using these materials should not rely on them as a substitute for legal / investment advice.

Remember, no problem has a quick fix solution. Thus, always ensure to consult highly knowledgeable group of professionals whom would provide you with a collective advice, never individual advice. This group advice and approach is unique with CWIIL Group and is based on the overall Management Philosophy of all CWIIL Group Companies.

Consulting CWIIL Group of Companies, for any / all investment matters ensures advice based on highest level of knowledge which are given to you by a team of select research-oriented experts whom each will do their own assessment of your matter, and also assess it together, thus ensuring that in case a mistake has been made by one, it will be noticed and corrected even before it is being passed on to you. Receiving incorrect and un-knowledgeable investment advice can be disastrous and thus should be avoided.

CWIIL Group of Companies is a global group of multi-specialized units with diversified interests and activities, wherein each company is a separate legal entity registered under prevailing laws in different parts of the world. CWIIL Group of Companies Products, Services, Project and Solutions are in a multitude of Verticals including, but not limited to, Infrastructure, Power, Oil & Gas, Legal, Media, Technology, ITES, HR, Shipping, Aviation, Real Estate, Hospitals, Health and Medicine, Education, Funding & Investment, Business and Legal Consultancy, and Public Private Partnerships, and other CWIIL Group Units, worldwide, to name a few.

For Further Queries or to Request a Personal Quote Feel Free to Contact :

Mr. Francis Thomas Matthews,
Deputy Global Director, No. 8
Marketing Research & Development Division,
Email : deputy.gd.8@cwiilgroup.eu
Voice : +45.8176.1924
Connect : LinkedIn I Twitter I Facebook I Tumblr

For Queries Specific to Africa :
Email: africa@cwiilgroup.comhq@cwiilgroup.eu
Web: www.cwiilgroup.comwww.cwiilgroup.eu

For Any / All Other Queries :
CWIIL Group Global Regional Headquarters Denmark,
Address : No. 1, Klokkebjergevej, DK6900 Skjern, Denmark
Voice : +45.5148.3608
Fax : +45.7014.1498
Email : corpcomm@cwiilgroup.eu
Web : www.cwiilgroup.eu
Connect : LinkedIn – Twitter – Facebook – Quora

Office Hours :
Monday to Friday : 10.00 – 17.00 CET.
Saturday : 10.00 – 14.00 CET.
Sunday : Closed.

The Corporate Communications Team would require minimum a fortnight for Reviewing & Responding to Queries, which please note.