Google sets up base in Sub-Saharan Africa

By Russell Southwood, Balancingact-Africa, 11 June 2007
IT News Forum
Google is moving outside of the continental comfort zones for most global investors, North and South Africa, and is opening its first operation in Sub-Saharan Africa.

Kenya has been chosen as the base camp for what is likely to turn into a sub-regional business. It has chosen Joseph Mucheru, former CEO of Wananchi to be its Site Lead- Kenya and although he has barely got his feet under the desk, Russell Southwood spoke to him about what Google might be doing, infrastructure initiatives and Kenya's media and communications bills.

Google favours Kenya over SA

Google is looking to crack the African market but instead of making a beeline for SA, one of the most developed countries on the continent, they are setting up camp in Kenya.

They have advertised for South African personnel so the chances are good that they will also establish an office in SA but the fact remains that Kenya was their first choice.

One must wonder what made Kenya a more attractive alternative than SA?

I would hazard a guess that Google want to build their own infrastructure and after investigating the situation in SA decided that it would be easier for them to achieve their aims in Kenya.

Whilst Kenya also has an incumbent operator that holds things back somewhat, one gets the feeling that things are still happening over there in the fixed line sector with companies like Kenya Data Networks.

Perhaps Google have identified the Kenyan market as being more open for competing forces or perhaps the country is politically more favourable, whatever the case it is a sad day when SA starts to loose out to rival African players.

China Central Television (CCTV) to expand its Nairobi HQ, African offices

The Burning Splint
9 July 2011
China is seeking to expand its media coverage in Africa by strengthening her CCTV Africa bureau in Nairobi which started in November last year, the station's current 12 employees will be increased to over 150 within this year.

“The expansion of CCTV Africa will see more expansion of English and Chinese broadcast with footage from the continent to China, Africa and the rest of the world” Mr. Liang Xia Tao, President of China International Television Corporation said.
Mr. Tao spoke when he paid courtesy call on the Vice President Jogoo House office this morning.
Mr. Kalonzo commended the good relations existing between Kenya and China.
“For China to choose Nairobi, over South Africa shows the good relationship with not only Kenya, but also the whole of Africa” VP said.
Kenya has been offering broadcasting channel to CCTV, Radio China and Xinhua news through the state broadcaster Kenya Broadcasting Corporation, KBC.
This new expansion will put china in line with other international media channels like BBC, CNN, Al Jazeera and Deutsche Welle.

“China should be at par with other major western media station including Al Jazeera since its huge population, Africans and the world need to be enlightened of Africa and China” Mr. Kalonzo observed adding that China should be the voice of developing countries.

Mr. Tao told the VP that Kenya with its centrality in the continent and support to Chinese media made it a preferable choice over South Africa.

[B]Nairobi selected for new Visa International Africa office[/B]
Source
18 April 2011

Kenya to become Visa processing centre for 25 countries

Nairobi was reportedly selected as the operations base for a widened presence in Africa by Visa International according to media reports from Kenya. The South African office of Visa, which has looked after the company’s interests in sub-Saharan Africa, will in future deal solely with South Africa while some 25 countries will be served by the new Nairobi office.

The use of credit and debit cards in East Africa is most advanced in Kenya itself, while in other countries added fees and charges make the use of ‘plastic’ by tourists and business visitors difficult and expensive. While some banks in Uganda have now started to issue ‘branded’ Visa cards, both debit and credit, the market penetration is low, as is across much of the region. In Southern Sudan, also to be served from the new Visa office in Nairobi, it is well near impossible to find acceptance of credit cards and only banks like Kenya’s KCB are in a position to assist card holders, while ATM’s are not available at all there – leaving out the crucially important ‘cash points’ for foreign visitors.

Electronic payments in Kenya, at petrol stations, shops, restaurants, hotels are common these days, not only meeting the security demands to carry less cash but also encouraging spending – wait till the bills come – and the infrastructure with remote terminals connected by mobile phone technology has expanded across the entire country. Here too the new Visa office has to meet challenges to roll out such technology in other Eastern, Central and Southern African countries and time will tell just how fast success will come.

For now though, carrying enough cash and travelers cheques is wise when visiting Eastern Africa and planning to travel beyond Kenya.

[B]Coca Cola announces US$ 62million in Kenya[/B]

Marketing World
12 April 2011

Coca-Cola has announced a US$ 62 million investment in Kenya over the next three years.

The investment which will be channeled towards modernization of equipment and expanding existing capacity as well as increasing the company’s presence in juice reinforces the US$ 12 billion investment commitment for the continent by the year 2020.

Already, the beverage giant has pumped US$ 6 billion into the African economy over the last decade.

The announcement by Coca Cola follows reports that US-based Pepsi Cola and London-based SABMiller are considering the establishment of manufacturing plants in Nairobi, Kenya.

Reports say PepsiCo has decided to build a Ksh 2.4bn plant off Thika and Baba Dogo roads in Kenya, while SABMiller has taken control of family owned Crown Foods, the bottlers of Keringet brand of drinking water.

In 2010, PepsiCo made a marketing re-entry into Kenya mainly depending on imports to serve the local market with its brands such as Pepsi Cola, Pepsi Diet, Mirinda, Evervess Soda Water and Seven Up.

“Coca-Cola is bullish about Africa and our commitment to the continent is enduring and unshakable,” said Ahmet Bozer, Coca-Cola’s Eurasia-Africa Group President.

“We see tremendous growth potential for Africa and particularly Kenya. Its steady rate of economic growth, well-educated population and efforts by the Government in reform and infrastructure upgrade over the last six years have given us confidence and optimism about doing business here,” he said.

“Evidence of this view is supported by recent operational changes with the Nairobi regional headquarters now responsible for a total of 39 countries – an increase from the 27 countries it covered previously – adding Nigeria and French West Africa to its existing portfolio of East and Central Africa markets”.

[B]Bharti Airtel board to meet in Nairobi[/B]

Financial Express
18 July 2011

New Delhi: At a time when global corporate majors have started holding their board meetings or annual retreats in India to signal the arrival of the country on their scheme of things, fledgling telecom MNC Bharti Airtel is doing the opposite. Come August 3, Bharti will hold its board meeting in Africa at Nairobi, its headquarters in the continent. The agenda of the board meeting will be to take into account the company’s April-June earnings.

The selection of Nairobi for the board meeting is significant because the company will also be completing a year of the acquisition of Zain Telecom soon. It started giving combined earnings results from the first quarter of last fiscal. The board meeting will be followed by a wild life safari to mark the completion of one year of Airtel's presence in Africa which it acquired for $10.7 billion.

The development is in line with what chairman and managing director Sunil Mittal had told FE in an interview after completing the Zain transaction in June 2010. He said the acquisition would re-start the India-Africa story, the age-old ties which were overtaken by China with the passage of time.

He had said that Africa is topical now and everybody is talking about it. There are opportunities there, like India started offering 10-15 years ago. Mittal had said that Bharti would act as a facilitator for other Indian companies to enter Africa and exploit the vast opportunities that lay there. While Bharti and Mittal are sure to re-invigorate the India-Africa story, the trend of Indian companies holding board meetings or other important brainstorming sessions at their overseas headquarters will only increase with time.

gallivant: Intentions have been declared ''Giant of Africa'',behold the rise of the African Lion.