The first Bigen Africa Partnership Conference was held in March at the CSIR conference facility in Pretoria – attended by hand-picked stakeholders and potential partners from across the globe. Partnerships feature prominently in Bigen Africa’s growth strategy – its value proposition stresses that the company integrates the entire value chain in infrastructure development through in-house capabilities and strategic partnerships. The development process ranges from feasibility studies and project preparation to project management, project implementation, development finance facilitation and on-going asset management. The company’s partnership strategy includes projects, joint ventures, mergers and acquisitions, virtual liaisons, working agreements and social portfolios, such as public-private partnerships.

Anton Boshoff, Bigen Africa Chief Operating Officer, says: “Strategic partnerships cost-effectively build a sustainable, integrated product and service offering of scale. The principle is to bring together best-of-breed offerings from different parties on a formal and structured basis.” Already, this approach has borne fruit with the Prodelko partnership between three leading infrastructure, resources and industrial development firms and the Bigen AUSAID AAPF partnership, both of which are reported on in this issue of Bigen Picture. The partnerships are formed with sustainability in mind, implying a long-term commitment to building the success of the partnership vehicle rather than a mere consortium which aims to capitalise on once-off opportunities. Partnerships include social empowerment and partnership empowerment programmes. Bigen Africa social partnering agreements are with the Inthutuko Foundation, DoxaDeo through the Tshwane City Changers initiative and the Development Bank of Southern Africa, its job creation partner.

Partnership empowerment agreements include Madlope Brothers, Disema Consulting Engineers, Zothando Business Development, Batseta Consulting, Indigo Khulani Architechts, Lidwala Consulting and Streams Holdings. Bigen Africa aims to extend its Africa footprint through partners in the construction industry and international partners in mining and industrial, energy, asset and revenue management, real estate, international finance and rail.

Bigen Africa Board member, Mike Mohohlo was the programme director at the maiden conference which was addressed by:
• Dr Iraj Abedian, Bigen Africa chairman and well-known economist at Pan-African Investment and Research Services,
• Dr Snowy Khoza, Bigen Africa CEO;
• Anton Boshoff, Bigen Africa COO,
• Dr Michael Baxter, Facility Director of the Australia-Africa Partnership Facility,
• Emile du Toit, head of infrastructure investments at Harith General Partners,
• Khosi Sibisi, Streams Holdings CEO,
• Dirk van Biljon, Bell Equipment Commercial and Funding Manager, and
• Roelof van Tonder, Built Environment Professions Export Council CEO.

“We regard the first Bigen Africa Partnership Conference as a huge success. It was a privilege networking with representatives of best-of-breed companies and I am confident that we have forged relations that will benefit us all, as well as the African continent at large,” says Anton. Emerging and developing countries have become the anchors of global economic growth and Africa has echoed the robust economic performance of other developing regions – but the continent faces challenges in terms of food and infrastructure needs, such as roads, water, energy and technological advancement. This was the message of Dr Iraj Abedian, Bigen Africa chairman and founder and CEO of Pan-African Investment and Research Services, at the Bigen Africa Partnership Conference. “We are witnessing a structural break in global economic growth and trade patterns. In 2012, foreign direct investment flows to developing countries surpassed those to developed countries. Africa’s economic performance has taken a turn for the better, but considerable investment is required to support the continent’s development goals,” he said.

Widening growth gap between emerging and advanced countries
Global growth projections

Factors to consider in global trade include the increasing cost of fuel and problems associated with export and import, such as identifying potential markets and buyers, technical requirements abroad, burdensome procedures and corruption at borders, inappropriate telecommunications infrastructure, crime and theft.In an overview of Africa’s economic profile, Dr Abedian said the continent’s labour force will grow by 122 million at 2020 and be the largest in the world by 2035.  Six African countries feature amongst the top ten fastest growing countries in a forecast from 2011 to 2016. These countries are Ethiopia, Mozambique, Zambia, Ghana, Angola and Tanzania. Although the gross domestic product of BRIC countries exceeds that of sub-Saharan Africa, some African countries grew faster in 2012. The hierarchy is Sierra Leone, Niger, Angola, China, Rwanda, Ghana, Ethiopia, the Democratic Republic of the Congo, Ivory Coast, Zambia, Mozambique, India and Brazil.

Sub-Saharan growth in perspective

Growth in Africa is driven by the commodities boom, effective economic reforms and urbanisation – but the prerequisites for growth are macro and political stability. Cities represent the core of African growth. Other meaningful shifts in the African economy are that Asia has overtaken Western Europe as Africa’s largest trade partner and that south-south trade has grown from 28% to 50%. Trade between Africa and the BRICS countries has increased ten-fold since 2002. Addressing investment opportunities in Africa, Dr Abedian said the continent accounts for approximately 60% of potentially available cropland, but that the severe food security risks it faces should be taken into account.

“There is an increasing urbanisation, with 90 million Africans having moved to cities since 2000, but the continent’s infrastructure in areas such as road density, internet density, electricity coverage and improved sanitation is lagging,” he said. Electricity coverage, for instance, is hampered by factors such as natural causes such as droughts, oil price increases, conflict-related disruptions and an imbalance between growth and investment.

In an overview of partnership opportunities, Dr Abedian said Africa is a late-comer to technology, but has the opportunity to ‘leap-frog’. In telecommunication, Africa has shown and experienced the power of technology, especially for developmental ends. It has a considerable infrastructure deficit, which lends itself to the widespread use of technology. “Other than in banking, many sectors are yet to be developed with the help of technology – and new political leadership is alert to the role technology can play in social development,” he said. “All parties should be committed to the long-term success of the venture and willing to accept short-term fluctuations in the partnership. Potential partners can include suppliers of complementary products and services – and may even be a competitor,” says Anton Boshoff, Bigen Africa Chief Operating Officer.