Multinational companies venturing into the Horn of Africa via Somaliland

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In May 2016 the Government of Somaliland signed a 30-year agreement with DP World to develop and manage Berbera Port at a cost of $442 million. This was by far Somaliland's biggest ever Foreign Direct Investment (FDI) deal bringing with it the potential to completely transform the Somaliland economy.

DP World has committed to investing up to US$442 million to develop and expand Berbera Port, and with the first phase now complete, Mr bin Sulayem also announced that work is already underway to further expand the port in a second phase. This includes extending the new quay from 400 to 1,000 metres, and installing a further seven STS gantry cranes, increasing the total from three to 10, enabling the port to handle up to two million TEUs a year, and multiple large container vessels at the same time.

The Berbera Corridor road upgrade project, funded by the Abu Dhabi Fund for Development (ADFD) and the UK’s Department for International Development (DFID), and the Hargeisa Bypass Road funded by UK Aid, is set for completion in quarter four, 2021 and quarter three 2022, respectively. The road will link to the existing modern highway on the Ethiopian side and position Berbera as a direct, fast, and efficient trade route for Ethiopian transit cargo.



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Hyundai launched its fleet of cars in Somaliland joining Coca Cola as the world-renown companies that have invested in the country. The South Korean car manufacturer has partnered Dahabshiil group of companies to not only introduce Hyundai model of cars to Somaliland but also to the horn of Africa region whose economy has become vibrant thanks to the growing international interest.

“In view of the ongoing developmental projects in the country {Somaliland} such as the DP World’s expansion of Berbera port together with the approved plan to create a free trade zone plus the construction of Berbera corridor highway – connecting Berbera port to the landlocked regions of neighboring Ethiopia, we are quite optimistic that the entry of Hyundai will have great impact in the motoring industry.




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SEOUL, SOUTH KOREA / ACCESSWIRE / February 22, 2021 / Hyundai Construction Equipment (HCE), an affiliate of the Hyundai Heavy Industries GROUP, announced that it would accelerate its forays into the East African market through the signing of a distributorship agreement with NEFC. NEFC in its broad range dealer network handling the following five countries: Ethiopia, Djibouti, Somalia, Somaliland, and South Sudan.




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Back in 2010, Somaliland Beverage Industries, owned by local businessman Ahmed Osman Guelleh, was awarded a license to build & operate a Coca-Cola bottling factory in Somaliland. At the time, SBI was the country’s single biggest investment to date. The opening of the $17 million Coca-Cola production was inaugurated 22nd May 2012 by the president back then H.E. Ahmed Mohamed Mohamoud (Silaanyo). The fact that a company of the size of Coca-Cola invested millions of their own money into what was an ‘unrecognised’ country spoke volumes and underlined the solid business case.

Coca-Cola’s vote of confidence – long withheld – may do more to propel investor interest and confidence than any political move. Only two other Coca-Cola franchises remain to be given out in the world: Cuba and North Korea.

For almost a decade now, Coca-Cola products have been flooding the market with their unique yellow closure at competitive prices, exceptional quality and a distribution system that is another first in Somaliland. SBI has also become a key player in Somaliland’s economy with over 250 employees and dozens of partners.








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JAC Motors is a Chinese automobile and commercial vehicle manufacturer. The company is based in Hefei, Anhui Province, China. The company produced about 524,000 units in 2021, including 271,800 commercial vehicles and 252,500 passenger vehicles.


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Image result for samsung logo



Samsung names new boss for East Africa​

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January 25, 2022

South Korea’s Samsung Electronics, has announced the appointment of Mr Tae Sun Lee as the new managing director for East Africa.

Mr Lee takes over from Mr Min Hong who has been at the helm of the company since September 2017.

According to a statement, the appointment is a promotion for Mr Lee who was previously working as the Strategic Director Integrated Mobility Division at Samsung Electronics South Africa.

Commenting on his appointment, Mr Lee said, “I am very excited to have joined Samsung Electronics East Africa, I believe that this market has a great deal of potential for our Samsung products. I look forward to serving our customers and working together with the East African Team.”

Mr Lee joined Samsung Electronics in August 2003 where he supported mobile operations for key Middle East markets, a position he held for five years.

He is known for growing the Samsung mobile market share in South Africa making Samsung the most preferred smartphone brand in South Africa.

Mr Lee has immense experience in Samsung which he has served for over 18 years, nine years of which has been in mobile business in South Africa and others supporting Middle East and Africa Business from its South Korean headquarters.

He will be responsible for 14 markets that make up Samsung Electronics East Africa.
These markets are Kenya, Tanzania, Uganda, Rwanda, Burundi, Sudan, South Sudan, Somalia, Somali Land, Djibouti, Ethiopia, Seychelles, DRC and Republic of Congo.


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30 Mar 2022

The CPC Corporation, Taiwan has signed a transfer agreement with Genel Energy (UK) to obtain a 49% of the working interest in the exploration block SL10B/13 in the Republic of Somaliland, on December 15, 2021. Both parties will conduct joint oil and gas exploration. Under the terms of the agreement, CPC will drill a well in 2023 and will use the port at Berbera, which is 150 km from block SL10B/13, linking the port to the international energy market. It is expected that the oil reserves will bring a stable energy supply to Taiwan and that the business development and energy cooperation will strengthen Taiwan’s ties to Africa.
 

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Variety is the spice of life.

They sell all types of cars and trucks to suit all budgets ranging from second hand cars to top of the range Pallisades of which the first stock sold out according to their manager.

These cars :
come with a warranty,
get safety checked before sale,
are manufactured specifically for the African market/climate,
have finance options,
have the steering wheel on the correct side!
are more fuel efficient
have better emissions
readily available spare parts




If you can't afford a Hyundai get yourself a JAC!


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Or a TukTuk / Bajaj

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Better standards all around






As for Samsung smart phones being too expensive for the average Joe. Not everyone can afford latest and greatest models that's true. That's why they sell budget models too.

Samsung set to ramp-up marketing for ‘mid-to-low end’ smartphones​

Samsung is to refocus its smartphone marketing around mid-to-low end devices after it vowed to overhaul its product line-up to “actively respond” to the needs of the mid and low-end markets.
 

ZodiaK

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UD Trucks Corporation is a Japanese company whose principal business is the manufacturing and sales of diesel trucks, buses, bus chassis and special-purpose vehicles. Its headquarters are located in Ageo, Saitama, Japan. The company is a wholly owned subsidiary of Isuzu since 2021.


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Eicher Motors Limited is an Indian multinational automotive company that manufactures motorcycles and commercial vehicles, headquartered in New Delhi.

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ZodiaK

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Through a long-term partnership with DP World, a world leader in global supply chain solutions, British International Investment intends to help address the stark imbalance in global trade, accelerate Africa’s potential as a global trading powerhouse, and improve the economic prospects of millions of people.

The partnership will focus on supporting projects to modernise and expand ports and inland logistics in Africa, starting in the ports of Dakar (Senegal), Sokhna (Egypt) and Berbera (Somaliland). These include seaports, free zones, inland cargo handling facilities or dry ports, and inland transport.

The expansion of these ports will facilitate trade that will support millions of jobs, significantly boost GDP, as well as improve the supply and reduce the cost of vital goods and staple food items for millions across the continent.




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Since 2012, Genel Energy has explored for oil within Somaliland and in 2015 the company announced that its SL-10B and SL-13 block and Oodweyne block hold estimated oil reserves of 1 billion barrel each. Since then, further discoveries have been made and the SL10B13 block is now estimated to hold 5 billion barrels of prospective resources. Genel Energy is also planning to use the Port of Berbera, which is about 150 kilometres away from its SL10B/13 block, as a gateway to provide a route to link the oil field to international energy markets in the future.

In December 2021 Genel announced the signing of a farm-out agreement relating to the SL10B13 block with OPIC Somaliland Corporation (‘OSC’), with all its share of future capital investment coming from CPC Corporation, Taiwan, the state-owned enterprise of Taiwan.

The prospective SL10B13 area is c.150 kilometres from the port at Berbera, offering a route to international markets.





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Geneva, 7 September 2020 – Trafigura Group Pte Ltd. (“Trafigura”), a market leader in the global commodities industry, has this week delivered a first shipment of low sulphur gasoil to the Port of Berbera, following the signing of a milestone storage agreement earlier this year with the Government of Somaliland’s Ministry of Trade, Industry and Tourism. This is the first step in a commitment by Trafigura to invest in Berbera Oil Terminal (“BOT”) facilities to position it as a gateway to serve customers within the country, and integrate oil logistics across the Horn of Africa.

Trafigura, with the full support of the Government, intends to upgrade BOT in a phased approach to improve and expand the storage capacity, and eventually facilitate the import of jet fuel and LPG to meet local and regional demand whilst ensuring international health and safety standards. Plans also include increasing the draft to enable larger vessels to be received and allow local traders more economical import of refined products and access to re-export markets. This will help support the Somaliland Government’s ambition to transform Berbera port as a strategic hub in a region where demand is growing year on year.

Somaliland should also benefit from transit fees for the Ethiopian fuel supply market – the annual supply contract was worth USD 2.8 billion in 2019.




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WorldRemit’s founder, chairman, and former CEO for eight years, Ismail Ahmed, has launched a new foundation fund to drive entrepreneurial development in Somaliland.

The Sahamiye Foundation is based in London and Hargeisa, Somaliland’s capital.

Ahmed has committed $500 million of his own wealth and investments over the next ten years to Somaliland-focused development programmes.

“In choosing to move away from traditional solutions offered by the aid sector, Somaliland has received very little development assistance,” the Sahamiye Foundation explains.

The group therefore wants to help the country move past “traditional models of donor funding and towards a more entrepreneurial, scale-up approach”.

Launched in 2010, WorldRemit’s first market was Somaliland. “Since then, the market has flourished,” says Ahmed.

The sovereign state, which sits in Africa’s northeast peninsula and houses some 4.5 million people, has “one of the best” mobile technology infrastructures in Africa, according to Ahmed.

He also cites Somaliland’s international remittance growth, which increased 15% in 2020 to $1.3 billion, according to central bank data.

As well as its multi-million-dollar commitment, Ahmed’s new fund is also seeking to double Somaliland’s literacy rate from 45% to 90% by 2023.

As part of this commitment, the Sahamiye Foundation pledges to help at least “one million adults and young people acquire literacy skills”.

A tenth of these recipients will develop technical and vocational skills for entrepreneurship.

Some of the funds will also go towards start-up accelerators. In the last year, Innovate Ventures has launched at least two accelerators offering up to $30,000 in equity investment to Somaliland start-ups.
 
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Through a long-term partnership with DP World, a world leader in global supply chain solutions, British International Investment intends to help address the stark imbalance in global trade, accelerate Africa’s potential as a global trading powerhouse, and improve the economic prospects of millions of people.

The partnership will focus on supporting projects to modernise and expand ports and inland logistics in Africa, starting in the ports of Dakar (Senegal), Sokhna (Egypt) and Berbera (Somaliland). These include seaports, free zones, inland cargo handling facilities or dry ports, and inland transport.

The expansion of these ports will facilitate trade that will support millions of jobs, significantly boost GDP, as well as improve the supply and reduce the cost of vital goods and staple food items for millions across the continent.




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Since 2012, Genel Energy has explored for oil within Somaliland and in 2015 the company announced that its SL-10B and SL-13 block and Oodweyne block hold estimated oil reserves of 1 billion barrel each. Since then, further discoveries have been made and the SL10B13 block is now estimated to hold 5 billion barrels of prospective resources. Genel Energy is also planning to use the Port of Berbera, which is about 150 kilometres away from its SL10B/13 block, as a gateway to provide a route to link the oil field to international energy markets in the future.

In December 2021 Genel announced the signing of a farm-out agreement relating to the SL10B13 block with OPIC Somaliland Corporation (‘OSC’), with all its share of future capital investment coming from CPC Corporation, Taiwan, the state-owned enterprise of Taiwan.

The prospective SL10B13 area is c.150 kilometres from the port at Berbera, offering a route to international markets.





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Geneva, 7 September 2020 – Trafigura Group Pte Ltd. (“Trafigura”), a market leader in the global commodities industry, has this week delivered a first shipment of low sulphur gasoil to the Port of Berbera, following the signing of a milestone storage agreement earlier this year with the Government of Somaliland’s Ministry of Trade, Industry and Tourism. This is the first step in a commitment by Trafigura to invest in Berbera Oil Terminal (“BOT”) facilities to position it as a gateway to serve customers within the country, and integrate oil logistics across the Horn of Africa.

Trafigura, with the full support of the Government, intends to upgrade BOT in a phased approach to improve and expand the storage capacity, and eventually facilitate the import of jet fuel and LPG to meet local and regional demand whilst ensuring international health and safety standards. Plans also include increasing the draft to enable larger vessels to be received and allow local traders more economical import of refined products and access to re-export markets. This will help support the Somaliland Government’s ambition to transform Berbera port as a strategic hub in a region where demand is growing year on year.

Somaliland should also benefit from transit fees for the Ethiopian fuel supply market – the annual supply contract was worth USD 2.8 billion in 2019.




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WorldRemit’s founder, chairman, and former CEO for eight years, Ismail Ahmed, has launched a new foundation fund to drive entrepreneurial development in Somaliland.

The Sahamiye Foundation is based in London and Hargeisa, Somaliland’s capital.

Ahmed has committed $500 million of his own wealth and investments over the next ten years to Somaliland-focused development programmes.

“In choosing to move away from traditional solutions offered by the aid sector, Somaliland has received very little development assistance,” the Sahamiye Foundation explains.

The group therefore wants to help the country move past “traditional models of donor funding and towards a more entrepreneurial, scale-up approach”.

Launched in 2010, WorldRemit’s first market was Somaliland. “Since then, the market has flourished,” says Ahmed.

The sovereign state, which sits in Africa’s northeast peninsula and houses some 4.5 million people, has “one of the best” mobile technology infrastructures in Africa, according to Ahmed.

He also cites Somaliland’s international remittance growth, which increased 15% in 2020 to $1.3 billion, according to central bank data.

As well as its multi-million-dollar commitment, Ahmed’s new fund is also seeking to double Somaliland’s literacy rate from 45% to 90% by 2023.

As part of this commitment, the Sahamiye Foundation pledges to help at least “one million adults and young people acquire literacy skills”.

A tenth of these recipients will develop technical and vocational skills for entrepreneurship.

Some of the funds will also go towards start-up accelerators. In the last year, Innovate Ventures has launched at least two accelerators offering up to $30,000 in equity investment to Somaliland start-ups.
Some really excellent developments in this.

In particular, getting the British government's foreign investment arm will be a huge further injection into developing the Berbera corridor, and in particular the dry dock development in Sool.

The Sahamiye foundations investment venture into small businesses and local start-ups is also a fantastic idea. So many Landers have an entrepreneurial mindset and ambition but struggle to get any sort of funding for their business ideas. This venture will give thousands that sort of funding and bring up a significant multiplier effect to the SL economy.
 

ZodiaK

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Some really excellent developments in this.

In particular, getting the British government's foreign investment arm will be a huge further injection into developing the Berbera corridor, and in particular the dry dock development in Sool.

The Sahamiye foundations investment venture into small businesses and local start-ups is also a fantastic idea. So many Landers have an entrepreneurial mindset and ambition but struggle to get any sort of funding for their business ideas. This venture will give thousands that sort of funding and bring up a significant multiplier effect to the SL economy.

"So many Landers have an entrepreneurial mindset and ambition"

Somaliland's trademark and its key to success has always been its entrepreneurial spirit, must be harnessed at all costs!
 

ZodiaK

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wingu.africa group limited (“Wingu”) is pleased to announce the first phase of its Berbera, Somaliland carrier-neutral data center was commissioned on 13 February 2021 and is now ready for service.

The facility is the first of its kind in Somaliland and is designed to meet Wingu’s customers’ growing demand for digital services.

The data center, as with all Wingu’s facilities, provides open-access to all customers and brings to Somaliland Wingu’s well-established commercial eco-system, developed over 10 years of operating history in East Africa. Local and international customers will benefit from this critical infrastructure, enjoying improved internet speed, reliability, resilience, and enhanced ability to access cloud-based services and other features.

Commenting on the experience of establishing Wingu’s first facility in Somaliland, Mr Anthony Voscarides, Group CEO, noted that “The support and responsiveness of key agencies, Ministries and the Government have been exceptional, allowing us to commission the facility in only five months.”

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BERBERA ECONOMIC ZONE​

An integrated maritime, logistics and industrial hub in the horn of Africa.

Modelled on Jebel Ali Free Zone (Jafza), DP World’s flagship project in Dubai, the BEZ will provide a conducive and competitive environment for investment and trade through a range of fiscal and non-fiscal incentives, including exemption from corporate tax, duty free storage of goods, 100% foreign ownership as well as the ability to operate through branches of foreign companies ;).

One distinctive advantage that the BEZ will offer to its customers is the commercial benefit of forming part of DP World’s global portfolio of parks and economic zones. They can also benefit from the unique Jafza Incubation Centre offering which will enable BEZ customers to set up their business in Jafza at very competitive costs.


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BERBERA ECONOMIC ZONE​

An integrated maritime, logistics and industrial hub in the horn of Africa.

Modelled on Jebel Ali Free Zone (Jafza), DP World’s flagship project in Dubai, the BEZ will provide a conducive and competitive environment for investment and trade through a range of fiscal and non-fiscal incentives, including exemption from corporate tax, duty free storage of goods, 100% foreign ownership as well as the ability to operate through branches of foreign companies ;).

One distinctive advantage that the BEZ will offer to its customers is the commercial benefit of forming part of DP World’s global portfolio of parks and economic zones. They can also benefit from the unique Jafza Incubation Centre offering which will enable BEZ customers to set up their business in Jafza at very competitive costs.


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Looks phenomenal!
 

ZodiaK

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Bedeschi SpA was established in 1908 and is today one of the oldest European companies specialized in the creation of turn-key solutions for Bulk Handling Material, Container Logistics and Bricks.

MSG Group of Companies through its DIFC Dubai based subsidiary company Horn Holding Group ltd (HHG) has signed an agreement with Bedeschi SPA for the construction of phase 1 of a full cement plant which will take about 18 months with installed production capacity of 700,000 tonnes of cement per annum. The entire full plant project shall take 3 years to complete with a production capacity of 3300 tonnes of cement and 3000 tonnes of clinker per day.

Somaliland is a net importer of cement hence this facility will put it not only in the maps of a cement producing nation but also an exporter of cement earning the country the much-needed revenues as well boosting the exports with a long-term positive effect on the country’s balance of trade. The Phase 1 of the project is expected to translate to employment opportunities for locals during both the construction phase as well as once the factory comes to life. An estimate of 300 Somalilanders are expected to benefit directly from this project by way of employment and another 200 plus citizens to benefit indirectly. To the region the project will spare economic growth through opening infrastructural development as well as trading opportunities for both wholesale and retail businesses.

Its proximity to the Berbera port, would be key to the export of the cement which will, in the long run, lower shipping costs to Berbera since the freight companies would have a range of cement products to ship outbound.



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Worldwide service providers to the Marine Insurance industry. With Berbera set to become the new gateway for the region, the Budd Group plans to expand its services for vessels and their P&I/H&M clubs in this port. In the meantime, the Budd Group’s experienced surveyors are available to assist with precautionary surveys or tallies. With its knowledge of local shipping regulations and practices, the Budd Group plans to open a formal office in Berbera coordinated with the opening of the new port facilities.





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Cotecna is a leading testing, inspection and certification company with over 45 years experience helping clients trade safely and securely worldwide.

The Somaliland Ministry of Trade and Tourism has mandated Cotecna to verify the conformity of products exported to the Republic of Somaliland.

Cotecna’s mandate consists in performing documentary verifications, inspections (when applicable) in order to issue Certificates of Conformity (COC) for goods complying with applicable standards. The objective of this programme is to better protect consumers from substandard, counterfeit and potentially dangerous goods.
 

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Established in 1975, IFFCO is an international group based in the United Arab Emirates which manufactures and markets a well-integrated range of mass-market food products, related derivatives, intermediates, and services.

IFFCO runs 80 operations in 35 countries around the world and employs more than 12,000 people. Its products reach 5 continents.

With a portfolio of 80+ brands, it has firmly established itself as one of the main and most diversified groups in the Middle East.

IFFCO Somaliland signed a 25-year lease with BEZ to develop a 300,000 sq. ft packing facility, with future expansion plans covering another 300,000 sq. ft. Once complete by the first half of 2023, the first phase of the edible oil plant will create hundreds of jobs for local citizens and attract foreign direct investment to Somaliland.
 

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Bahrain Maritime & Mercantile International (BMMI) is a diversified retail and distribution and contract services and supply group based in the Kingdom of Bahrain, with international operations. BMMI is a provider of facility management, logistics and procurement services to governments and to non-governmental, commercial and military organisations. The group specialises in the wholesale, distribution and retail of food and beverages.


 
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