EY-africa-attractiveness-survey-june-2015-final

www.ey.com/attractivenessAnglo American and Tullow Oil• Every minute, a child dies somewhere inthe world from the effects of drinking dirtywater. Jibu works with local entrepreneursin Rwanda and Uganda to set up profitablefranchises that solar-sterilize water and thensell it to low-income customers at a fraction ofnormal prices. An EGS team from Switzerlandand Uganda is helping Jibu develop thefinancial and operational infrastructure itneeds to grow quickly and sustainably acrossthe region.• Stamp Out Sleeping Sickness is a publicprivateconsortium that has built a networkof veterinary businesses across Uganda.Lacking business skills, several were failing.An EGS team spent seven months turningthese businesses around. They now createjobs, help subsistence farmers improve theirlivelihoods, and provide an essential part ofthe solution to a tropical disease that causesimmense social and economic damage.The entrepreneurs we support through EGShave incredible vision and work immensely hard.They are the lifeblood of Africa’s economies andit is a privilege for us to help them.A key element of thewin-win growth equationwill be the promotionof entrepreneurshipacross AfricaCase studyMultinational companies are playing an increasingly importantrole in helping develop local enterprises. Anglo American, oneof the world’s largest mining companies, has been doing thisfor more than 25 years. Anglo established Zimele, an offshootdedicated to enterprise development, back in 1989. Zimele’saim is to help create and develop commercially viable andsustainable black-owned South African small and medium-sizedenterprises (SMEs) by providing early-stage funding (equityfinance or subsidized loans), as well as mentoring and hands-onsupport via a network of small business hubs throughout SouthAfrica. Zimele initially focused on developing suppliers withinits own supply chain, but has since broadened-out. Today ithas six funds that provide support to diverse kinds of miningrelatedand non-mining entrepreneurial ventures. Over the pastseven years, Zimele has supported 1,885 local entrepreneurialcompanies, employing over 38,000 people and, in 2014alone, it provided over R1.3b (US$110m) in funding for thesebusinesses.Tullow Oil, an oil and gas explorer active elsewhere in Africa,also has a strong focus on local enterprise development. Tullowuses the term “shared prosperity” to describe its commitmentto aiding long-term social and economic development inthe countries where it operates. Departing from the moretraditional corporate social investment approach, it focuseson the developmental impact of Tullow Oil’s core business. Ithelps develop local suppliers through capacity building andtechnical skills transfer. For example, Tullow’s Closing theGap program, together with initiatives such as Traidlinks andInvest in Africa, focuses on equipping local suppliers to providegoods and services to international standards. Tullow has alsocreated an online supplier center, a hub aimed at supportingand developing local suppliers. Tullow is not only directing anincreasing proportion of its procurement spend toward localsuppliers — US$225m across Ghana, Uganda and Kenya in2014 — but also requiring international suppliers that want towork with it in African countries to detail in tender documentstheir commitment to developing local companies.This case study is based on a compilation of publicly available information drawnfrom a variety of sources, including annual reports, investor presentations andreports, and other media releases.EY’s attractiveness survey Africa 2015 Making choices47