Archive for the 'Dubai' Category

21
Dec
09

Best Airfares and latest Airplane configurations on flights to Africa…

The views expressed on this blog are my own and do not necessarily reflect the views of Oracle.

Africa’s consumer market exceeds 900 Million people, the fastest growing market in the world.
For the purpose of this article  I will join those who often talk about Africa as if it was one country. Africa is not just a fast growing market it is also the 10th largest world market. According to the world bank the 2006 Africa Gross National Income was 978.3 B $, just after Canada at 9th position and before India, Brazil, Korea, Russian Federation, and Mexico who had the 11th until 15th position.

This being said I consider the 54 countries to be very diverse.  I recommend you have a look at http://www.gapminder.org/ where Professor Hans Rosling  provides the statistical facts in an exiting way that will make you understand the importance to look at African countries rather then to look at it as one Country.

The informal economy on average in Africa according to Friedrich Schneider accounts for 42 % of GNP in a survey of 1999/2000 where the US accounted for 9%, the UK 13%, Canada 15%, Sweden 20% and Greece 29% by comparison.
If we look at Africa  using the typical statistical data that is available to be factual, or if we want to go by the average notion on Africa based on the media, even in a worse case scenario the opportunities in reality are much better than what one expects.

The limited amount of suppliers that this growing amount of consumers can chose from however allow the vendors to provide very poor service, to dump dangerous products on the market, to overcharge customers for services and products and not to respect warranties or guarantees.The consumers have no proper legal framework that protect them from these practices to claim their rights. Governments do not proactively protect their citizens either from dangerous or poor quality products and services
France and the UK know this all too well and continue to protect their old vested interests stemming from the old colonial days and this translates into situations where the average African consumers have to take it or leave it with hardly any functional or affordable system in place to protect them.
Deutsche Telecom wanted to buy Sonatel in Burkina Faso, The French Minister of ICT told his German colleague to stay out of his territory and the deal was called off.  Vivendi took over with Maroc Telecom as the fronting company. Today the service has badly deteriorated and one can complain about the service but to no avail. New subscribers are accepted daily while insufficient investments are made in the total infrastructure causing very unstable networks.

New players like China have discovered the African market as well and do not meet many obstacles selling low cost and poor quality products including pharmaceuticals with Chinese descriptions leaving consumers at the mercy of the retailers guidance instead of being protected by health care regulations as is the case in most places in the world.

A few more examples across industries:

If you buy an airline return ticket with British Airways in Africa to the UK it will on average be more expensive than buying the same return ticket in the UK in countries where BA face little competition. The same is true for Air France or KLM.  While the flights to some of the destinations to Africa are shorter in miles and travel time the rates are higher than flights to the USA for instance that are longer in distance and time.  All the mentioned airline carriers in this example use the best airline configurations to the destinations where they face stiff competition and they continue to use their oldest configurations to places like Accra, Ouagadougou, Bamako where they almost still maintain a monopoly.
Each of these airline companies do face competition on destinations like Lagos, Nairobi and Johannesburg and therefore you will get a flat bed configuration flying BA to Lagos in business class, but not to Accra while the rates are almost the same. On flights to Lagos the mentioned carriers have US inbound passengers that work in the energy sector who have lots of alternatives to chose from once arriving at London, Paris or Amsterdam before continuing their destination to Lagos.
But what if you fly to Paris starting your journey in Ouagadougou, you have been a loyal frequent flyer of Air France and you want to use your air miles to upgrade your ticket or you want to sit in a business class lounge at the airport of Dakar using your club 2000 card ?
Well you can’t. Sorry sir on this route these perks are not available.  I was recently rejected even in transit at the airport in Paris to sit in the airport lounge coming from Ouagadougou. If you read the terms and conditions Air France clearly state that your club 2000 card gives you world wide club access regardless of the class you travel in and you have the right to invite a fellow passenger. Air France does not mention “except for the following African destinations”.
When you complain, you get letters explaining how terribly sorry the company is and they hope to soon welcome you on board of their flights again because they know that you have few or no alternative.
Emirates Airlines are expanding their network of destinations across the continent but frequent flyers of Emirates will notice that the cash and miles service does not include destinations like Ghana even if they have a daily direct flight between Dubai and Accra. How come ?

What about ordering through Amazon.com if you live in Africa where bookstores are not a commodity and the population is young and eager for knowledge ?
Well you can order books, but in todays technology driven world where youngsters increasingly look for multi media alternatives, unfortunately you cannot order any multi media nor software, nor any electronics that are on offer at Amazon.com.  The excuse in this case is the fear for piracy, but this is taking a short cut in my opinion. Today’s technology offer enough solutions to counter piracy if only one is willing to invest. Apparently 450 million youngsters is not a big enough market opportunity for Amazon to at least explore some alternatives.

What if you want to transfer money to relatives ?
Up until some years ago Western Union was the only viable solution for the large diaspora community to transfer money to and from Africa. The costs associated to the transfers exceeded even the highest fees one would pay using bank transfers anywhere around the world.  When Moneygram started to operate in Africa fees came down overall, but with only two service providers the fees are still disproportional if you consider the purchasing power of the majority of the beneficiaries and the main reason for these money transfers. Most of the transfers are made to support families in their most basic needs. The banking sector in Africa is still mainly focusing on corporate banking and the continent has the lowest bank account penetration rates in the world. Western Union and Moneygram can therefore charge any fees they like without too much risk of losing customers.  While central banks do control foreign exchange and limit currency outflows from some of the African countries, they don’t seem to feel a need to protect their population from being overcharged.
A few banks do have retail branches and for a handful of their client base they offer premium services, meaning that these clients have access to air conditioned areas to do their banking transactions, while the majority of the clients have to queue in long lines in the heat often moving from one counter to the next to queue again to conclude very outdated manual procedures to make a money draft.

What if you buy a computer or a cell phone while traveling overseas from world renowned vendors like HP or Nokia, just to name a few, and you use it in Africa?
Although the vendors when selling you the items claim that they offer world wide guarantees and warranties the reality check comes once your equipment fails on you back home in Africa.
Even when the vendor has a local distributor, the world wide agreements are not always respected and consumers either have to travel back with their equipment and have it repaired where the items were purchased or pay for the repair. Either way they lose.
Africans use places like Dubai and  China extensively to buy items that they cannot find in their home countries. On arrival the consumers often are charged high duties.
Guarantees and warranties very often are not respected in Africa and if you read the small letters you will see that some vendors exclude Subsaharan Africa all together.
The price does not reflect this exclusion and again considering purchasing power of average African consumers, they end up paying a premium for non-warranted items.

If you buy a Toyota in Ghana and export the car to say neighboring Burkina Faso, warranties will no longer apply and spare parts have to be imported at surcharges from the country where you bought the car because the local Toyota dealer will not keep parts in stock for different care types. Most car makers sell different versions of types of vehicles in different countries.

Pharmaceutical scams of trials using African human beings to test new drugs have been headline news items in many newspapers and cable new stations over the years.
Today anybody can buy drugs over the counter that would normally require a prescription. Drugs that are imported from China with only Chinese descriptions that nobody in Africa can read and that no health care institution has approved since  controls are either not in place or not enforced are sold even through small Chinese retail outlets exposing vast amounts of people to medical side effects in a place where medical care is unaffordable for the majority of the population in any event.

In Africa consumers have not yet found ways to organize themselves. Most governments are happy to see investors come and apart from tax and duties there are not too many regulations that have to be respected. But in the end the consumers who pay for the government services indirectly via their taxes have rights that need to be protected.
Hopefully we will see a private initiative take off soon somewhere that will set the example for others to follow protecting consumers interests…

© Desi Lopez Fafié

23
Jul
09

African Cuisine for the die hards…

chillies 03

Do you like spicy food?
Do you plan to go to Nairobi ?

I recommend Handhi’s to you. It means “clay pot” in one of the Indian languages and the restaurant serves a number of dishes using these clay pots. The variety and quality of the food is superb and among the Indian restaurants in Africa that I know I rank it within the top 5.

Those of you who chose to sit inside the restaurant instead of at their terrace, can see the cookes at work through a hugh glass wall that separates the kitchen from the main restaurant dining area.

In East Africa it is mostly the Indian cuisine that offer some very spicy dishes.  The African dishes in this part of the continent are generally mildly spiced. In West and Central Africa however the African dishes can be extremely spicy.

poulet yassa

Poulet Yassa

In Senegal you can order Poulet Yassa, stuffed chicken with lemon and onions served with rice and you have a choice to have some yellow chillies on the side and mix these with the food.

poulet yassa 02

Africans enjoy their food most when sharing a dish with their family or friends.

Pepper sou[

In Nigeria,  Pepper Soup can be made of any kind of fish or meat depending on your preference.  If you are a Non African Adult with strong taste buts you may try it, but I recommend you take a very small sip first to see how you respond before going for the big spoons.

Pepper Soup

These are just a few examples since spicy food is very common in the West- and Central African cuisine.

Those of you who are not used to chillies should start carefully.  It is an acquired taste that you develop over time and gradually you can deal with larger quantities of chillies or use stronger varieties of chillies.
The Naga Jolokia and the Red Savina Habanero are the strongest versions and contain the highest levels of capsaicin 800.000 – 1000.000 and  350.000 – 570.000 respectively. The Naga Jolokia originates from North Eastern India and holds the Guinness World record. Compare this to white pepper that has 500 units of capsaicin or green tabasco sauce that has about 600 to 800 units.
The Scoville scale measures the heat levels in food by measuring the amount of capsaicin present.

chillies

One of my colleagues from Europe asked me if she could have a sip of my crab soup I was having at a restaurant in Dubai that had made some special orders on our request. Four of us were living in or originated from Africa while we had  two Europeans with us that evening ,my colleague being one.
We had ordered two separate bowls of crab soup, one hot one not. I warned my colleague and told her that this was seriously hot. She insisted.
The next 10 minutes or so all the waitresses were running back and forth to calm the effect of the chillies.
When she recovered somewhat and regained her ability to speak she started to call me names and asked me how someone could enjoy something like that ? We felt sorry for her but at the same time we could not stop laughing either. When she ran to catch her flight she was smiling again.

If you like spicy food I advice you to learn the traditional name of chilly for each country you visit. If you go to a local restaurant as
a Mzungu (white man)  and ask for very spicy food, you may otherwise not get what you ask for. Since not every European or American that visits Africa can handle the intensity of some of the dishes, waiters are careful and will bring you a very mild version of what you requested.
In Nigeria I asked for red chillies and got sweet red peppers instead. So I asked the waiter the name of red chillies in Yoruba. Now I got my “atta rodo”, as they call it and  every time I visit a restaurant in Nigeria and ask for fresh chopped atta rodo I am in business.

An Indian friend of mine once advised me to have some raw onion on the side whenever you are not sure of the food you are about to have. This simple addition will keep you out of trouble in most cases. I realized the effect of it when on another occasion I had dinner with four of my colleagues in a nice restaurant in Ghana. We all ordered shrimps and lobster, the specialty of the house. I was the only one who ordered a salad on the side with some raw onion because I happen to like salads not so much because I questioned the restaurant or its food.  Our host, a Ghanaian did not approve of my addition to this dish, since he felt you should not mix the taste of the fresh seafood with anything else.
The next day all four of my colleagues, including our Ghanaian host were not feeling well and had to run to the bathroom a few times for a couple of days. I was very happy to have ordered my salad on the side and remembered the advise of my Indian friend.
Since then I have made it a habit to order some raw onion every time I doubt the quality of the food.
If you think about it, the Dutch dip their raw herring in chopped raw onion. If you order a steak tartare the cook will propose raw onion as one of the spices to mix the meat with.
I don’t have the scientific proof to back my story but in all the years of my travels all over the world I have hardly ever had food problems and I am grateful for the advice of my Indian friend.

Back at Handhi’s one evening we had ordered more food than we could finish and before we left one of the guests asked the waiter to wrap the food.  I was a bit surprised since all of us were very satisfied and unable to finish but I was soon to learn another lesson of the African way of live.
We walked out of the restaurant and the guest who was carrying the bags with wrapped food saw a poor person walking by.
Without even thinking twice he gave some of the bags to this person.  Before we reached the car he had distributed the remaining bags to a few other poor people that we came across.

Have you ever considered asking to wrap the food to give it to a total stranger in the street on your way home?
I admit I had never done so before but I suggest you try this and I am sure you will enjoy the  experience…

© Desi Lopez Fafié

17
Apr
09

The Next International Trade Event in Africa will take place in…

africa

Over the years I have been dealing with event organizers in Africa, I have often requested events to take place outside the typical locations like
South Africa, Kenya or Nigeria. As such there is nothing wrong with these locations but if we don’t give a chance for events to take place
in the rest of the 51 countries some of the good intentions will become difficult to achieve when trying to promote regional integration to name but just one.

Regional and intraregional trade is high on the agenda of most African countries. Potential investors need to get a chance to explore all options not just a handful.
As the attached graph shows the share of regional trade is still a very small part of the total trade volumes although slightly growing.

061030_chart2

What I have witnessed, during events in Lagos, Johannesburg, Sun City or Cape Town, is that participation from the French speaking countries is very
limited in a best case scenario. To make things worse, if there are a few participants very often the organizers fail to provide simultaneous translation
assuming everybody speaks English. Of course any next invitation to attend will become a harder sell. When you speak to the organizers they will tell you
that the participation rate is “surprisingly” low from French speaking countries and therefore it does not justify the investment while one of
the agenda items clearly states “regional integration”.

I have taken the example of events taking place in English speaking countries posing a risk to lose out on French speaking participants but of course the issue goes both ways.

To be fair to the organizers there are some challenges that have to be considered when organizing events:

waiting

Flight connections between African countries, specially between French and English speaking ones, are often routed via a limited number of airports and can make the journey long and unpleasant.
Daily flights are not always available and a stopover sometimes means being stuck a full day because the connecting flight is only available the next day.

Finishing meetings in Gaborone some time back on a Friday afternoon, I was stuck in Johannesburg on Saturday because my next flight back to Accra was on Sunday.
So one may lose a lot of time in some cases or one should consider a costly trip to Europe to connect via Paris or London to fly back south while the passenger is only trying to fly to a destination that should take him/her 3 to 4 hours had there been a direct connection.

Either way the organizers understand this and fear that by choosing an “odd” location the participation rate will be low.

pasted-graphic-15

Potential sponsors to the event will also raise questions when an event is taking place in an “odd” country and may not provide sponsorship as much as they would if the event would take place in the more usual countries.
What sponsors should take into consideration though, is the fact that sponsorship is still a form of investment, and investing in existing markets yield different returns than investing in new and often unexplored markets with low or non existing competition. The investment therefore may yield much higher returns.
If one considers the cost to explore a new market on ones own, both in time and in money, to reach potential business partners I am convinced that it pays off to sponsor the “odd” countries from time to time.

If potential foreign investors are part of the targeted participants, the organizers again are faced with another challenge:  the perception of the lesser known countries, or worse the biased opinion on some of these countries. Organizers of course try to attract as many participants as possible so the logic is easy to follow when a choice is made for the more typical countries.

visas

Visas are another challenge that organizers face. Most of us who have worked in Africa know that the problem is not limited to Africans trying to fly to Europe or the US to attend events, but the problem also exists for Africans trying to visit another African country.

Some countries do have a serious accommodation challenge as is the case at this point in Angola. To get a hotel room requires in the worse case some months of upfront reservation. This sounds positive to me.
It means that the demand to partner with Angola exceeds the current available supply to host potential foreign investors but of course for the time being it poses logistical hindrance for organizers.
There are however many countries in Africa, outside the aforementioned ones, that can cater for events with auditoria that have simultaneous translation capabilities.

Most of these challenges are not limited of course to event organizers. They affect any company that wishes to expand their activities in the region.

My recommendation to the organizers would be, to discuss their logistical challenges with for instance the chambers of commerce, of countries they would like to consider outside the typical ones and seek ways to overcome some of these and to prepare the events in such a way that participants feel welcome regardless what language they speak.

If events get big enough maybe airlines are willing to provide charter planes to handle the peak passenger demand. If trade starts to increase significantly airlines may also consider to provide a more permanent connection between two trading countries. For the time being there is no direct flight between Ouagadougou and Lagos for passengers. Cargo flights are available however between the two cities. Once enough volumes of cargo moves between these two cities, it follows that at some point passenger flights will start to take off as well.

gb

Globalization does not stop in the US, Europe, Asia or Japan. Years ago, if a Chinese passenger boarded a flight to Bamako, the cabin staff would double check to make sure the passenger was boarding the correct flight.
Today its often difficult to get a seat on a flight because of the increased demand coming from Asia on some of the routes into Africa. Increasing amount of Africans travel via Dubai to Beijing or Shanghai as well.
Dubai has understood this opportunity and has become a major connecting hub between Africa and Asia

china_africa-trade_2006 _44229699_africa_china_invest_map416

Emirates Airlines are expanding their routes across the continent providing daily flights to a growing number of locations after starting their first flights to Cairo in 1986. Their planned flights to Angola, will become their 17th African destination.
Emirates Airlines have grown their African business by 17% recently and provide 4000 Africans with employment. Compare this for instance to South African Airlines who have 24 destinations within Africa after starting in 1934 and you realize the significance of the investment as well as the success Emirate Airlines are enjoying out of Africa and the benefit Africans enjoy from increased employment and from getting connected.

efa

In addressing the sponsors, organizers should expect some initial resistance but if enough success stories are shared about the returns the events have generated for their participants I am confident that this issue is just a matter of time.
Organizers very often have a better overview of companies willing to invest and can play a significant role as an intermediary to bridge demand and supply.
To date many local countries statistical data is inaccurate or at times conflicting if you compare the data of for instance two trading countries.
Potential investors and sponsors get confused as a result and the biased opinion will be reinforced in the worse case.
Target the low hanging fruits, the market makers as your first choice of sponsors.  They realize the benefit of exploring the markets before anybody else has arrived. The laggards will follow in due course and will  face stiff competition like the always do no matter where in the world from those who decided to go first.  The telecom operators are a good example who are fighting to get into the most remote countries because of the growth their businesses are enjoying.

aw3 aluminibanner

content-blog-111808-01-ghana

Here lies in my opinion also a wonderful opportunity for the organizers to become more vocal about the success stories of some of the countries as a result of their events. The more these event related successes are shared, the more participants the organizers should expect going forward, the more investors will consider the new country as a serious place for business. In the end everybody wins.

publicrelations

Some organizers get it right already, like eLearning Africa, http://www.elearning-africa.com which started in Ethiopia than moved to kenya and this year plan their event in Senegal.
Another good example is Africa.com http://africa.comworldseries.com which runs events in Senegal, Nigeria, Kenya and Tunisia, aiming to get their content to more than just Cape Town.
Business Excellence Global Media has taken the step of running their next event in Uganda instead of Johannesburg tapping into the East African market. http://www.be-excellent.com/dynamic.php?button=99&section=22

Please have a look as well at the following site for some more ideas for your next events http://www.africa-ata.org/cities.htm

So will the next World Economic Forum on Africa move again between Cape Town and Durban, or will the organizers be bold enough to try out a different location in Africa ?

© Desi Lopez Fafié





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