CAPE TOWN // Transporters moving goods across Africa put up with a lot: bandits armed with AK-47s, elephants using a fender to ease an itch and thieves who run alongside slow moving vehicles to siphon diesel out of the tank into Coca Cola bottles.
Then there are border posts, police checkpoints and various other forms of bureaucracy that can hold up lorries for days. Often, bribes and spurious fines also need to be paid before cargo can move.
It is hardly surprising that according to the African Development Bank it costs twice as much to transport goods across many countries on the continent than it does anywhere else in the developing world.
Transport is a perpetual problem in Africa. Potholed roads and missing rail links get in the way of economic growth. Intra-regional trade accounts for just 13 per cent of total commerce, compared with 53 per cent in emerging Asia, according to The Economist.
Landlocked countries suffer the most. Transport costs can make up 50 to 75 per cent of the retail price of goods in Malawi, Rwanda and Uganda.
Shipping a car from China to Tanzania on the Indian Ocean coast costs US$4,000, but getting it from there to nearby Uganda can cost another $5,000.
The China-led surge in demand for commodities gave hope that Africa’s infrastructure deficit would be eroded.
Now, with the cost of minerals and other commodities on the floor, it is unclear whether the enthusiasm to build, build and build will continue. Especially hard hit are locations dependent on mining, which is in even worse shape than the oil and gas industry.
“Many good mineral deposits are in remote locations and getting them to market requires rail and port infrastructure – this can cost up to $3.5 billion alone to build, just for one operation,” says Haaris Zafar, the principal mining adviser for Africa at Johannesburg’s Nedbank. “I can’t see this happening in the current commodity climate.”
One example is a giant iron ore mine planned by the Australian company Sundance Resources. The project straddles the border of Cameroon and the Republic of Congo in Central Africa in a remote, inland jungle area. The mine would be an enormous lift to the economies of both countries – if it is ever built.
Two years ago, Sundance announced a partnership with China Gezhouba Group to finance and construct a 510-kilometre railway and a dedicated mineral export terminal.
The project had the backing of the Chinese premier, Xi Jinping, following a state visit to Ghana last year. But this January, Gezhouba said it would put the project on hold indefinitely after the collapse in the iron ore price.
The project had seemed a good prospect when iron ore reached the giddy heights of nearly $188 a tonne in 2011, and the almost $4bn price tag for transport infrastructure seemed justified. Today, iron ore struggles along at $40 a tonne and the port and railway line are unlikely to be laid down anytime soon. As China slows, project finance will be harder to come by.
“The emergence of an Africa-wide railway network is a dream that will be difficult to fulfil,” John Welborn, the chief executive of Resolute Mining, said this month in Cape Town at the annual African Mining Indaba, the world’s largest mining investment platform.
Mr Welborn has been active in rail developments in west Africa, a region that could potentially rival Australia’s iron-rich Pilbara area in potential for iron ore. He said that the cost of developing rail and port facilities from scratch, however, made it unlikely this would happen soon.
Even if funds were to be found, laying down railway lines that cross multiple borders is a formidable undertaking. At the same time, mining companies are reluctant to share lines with other users, fearing it could harm ore shipping schedules.
In Australia, where iron miners are king, rival producers have built their own tracks running parallel to each other to carry ore from up to 1,300 kilometres inland to coastal ports.
“Two companies in the Pilbara have two railways running side by side, and third wanting to get in had to build its own,” Mr Welborn says.
African countries have naturally fought this idea and insist that lines must be multi-use, not reserved exclusively for individual mining companies. Where governments have stood their ground, cooperation has worked.
An example is the Nacala Corridor railway line in southern Africa, which links mining areas of Moatize Mozambique’s western province of Tete with the east coast port of Nacala 1,200km away.
The line goes through Malawi, which in a quirk of colonial map-making, cleaves through Mozambique, almost splitting the country’s south in two. The railway has now become the centrepiece of a development corridor that has had agriculture as well as other mining projects appearing in Malawi – one of the world’s poorest nations – and Mozambique, now one of Africa’s fastest-growing economies.
“The Nacala Corridor has ended up going through two different countries carrying several commodities, and that makes it bankable,” says Sujoy Bose, the director and global head of infrastructure and natural resources at the International Finance Corporation in Washington DC. “The idea of one country, one railway line and one resource is not practical.”
While Nacala was largely financed by the Brazilian mining group Vale, which is developing vast coal mines in the east, other rail projects will need to look elsewhere to find funding. One that still enjoys China’s support is the Tazara railway that connects landlocked Zambia with the port of Dar es Salaam in Tanzania.
Tazara was built in the 1970s as part of the late chairman Mao Zedong’s desire to spread China’s own brand of socialism.
The line helped Zambia export its copper, giving it an alternative to the sea other than using routes though white-ruled South Africa and Rhodesia.
In a post-Cold War world the line fell into disrepair, but in 2014 the Chinese government decided to help revitalise the 1,800km route.
New locomotives and coaches were delivered last year and the line is now becoming increasingly popular with tourists, who can watch wildlife from the comfort of their cabins as the train winds its way through reserves.
The Chinese have also committed to helping develop a network of lines that will eventually connect Kenya’s north with Ethiopia and South Sudan. The network, known as the Silk Corridor in local media, will eventually connect some of the most remote parts of the continent with eastern coastal cities.
Even South Africa, which has more railway capacity than the rest of the continent combined, is looking to expand its existing network. The country’s state-owned operator Transnet plans to build new lines to the north, crossing into Botswana.
business@thenational.ae
Follow The National's Business section on Twitter
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
LIKELY TEAMS
South Africa
Faf du Plessis (captain), Dean Elgar, Aiden Markram, Hashim Amla, AB de Villiers, Quinton de Kock (wkt), Vernon Philander, Keshav Maharaj, Kagiso Rabada, Morne Morkel, Lungi Ngidi.
India (from)
Virat Kohli (captain), Murali Vijay, Lokesh Rahul, Cheteshwar Pujara, Rohit Sharma, Ajinkya Rahane, Hardik Pandya, Dinesh Karthik (wkt), Ravichandran Ashwin, Bhuvneshwar Kumar, Ishant Sharma, Mohammad Shami, Jasprit Bumrah.
Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
10 tips for entry-level job seekers
- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
- Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
- Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
- Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.
Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Explainer: Tanween Design Programme
Non-profit arts studio Tashkeel launched this annual initiative with the intention of supporting budding designers in the UAE. This year, three talents were chosen from hundreds of applicants to be a part of the sixth creative development programme. These are architect Abdulla Al Mulla, interior designer Lana El Samman and graphic designer Yara Habib.
The trio have been guided by experts from the industry over the course of nine months, as they developed their own products that merge their unique styles with traditional elements of Emirati design. This includes laboratory sessions, experimental and collaborative practice, investigation of new business models and evaluation.
It is led by British contemporary design project specialist Helen Voce and mentor Kevin Badni, and offers participants access to experts from across the world, including the likes of UK designer Gareth Neal and multidisciplinary designer and entrepreneur, Sheikh Salem Al Qassimi.
The final pieces are being revealed in a worldwide limited-edition release on the first day of Downtown Designs at Dubai Design Week 2019. Tashkeel will be at stand E31 at the exhibition.
Lisa Ball-Lechgar, deputy director of Tashkeel, said: “The diversity and calibre of the applicants this year … is reflective of the dynamic change that the UAE art and design industry is witnessing, with young creators resolute in making their bold design ideas a reality.”
MORE FROM CON COUGHLIN
The%C2%A0specs%20
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3Etwo%20permanent%20magnet%20synchronous%20motors%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3Etwo-speed%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E625hp%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E850Nm%3Cbr%3E%3Cstrong%3ERange%3A%20%3C%2Fstrong%3E456km%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3Efrom%20Dh737%2C480%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3Enow%3C%2Fp%3E%0A
Day 2, stumps
Pakistan 482
Australia 30/0 (13 ov)
Australia trail by 452 runs with 10 wickets remaining in the innings
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
PULITZER PRIZE 2020 WINNERS
JOURNALISM
Public Service
Anchorage Daily News in collaboration with ProPublica
Breaking News Reporting
Staff of The Courier-Journal, Louisville, Ky.
Investigative Reporting
Brian M. Rosenthal of The New York Times
Explanatory Reporting
Staff of The Washington Post
Local Reporting
Staff of The Baltimore Sun
National Reporting
T. Christian Miller, Megan Rose and Robert Faturechi of ProPublica
and
Dominic Gates, Steve Miletich, Mike Baker and Lewis Kamb of The Seattle Times
International Reporting
Staff of The New York Times
Feature Writing
Ben Taub of The New Yorker
Commentary
Nikole Hannah-Jones of The New York Times
Criticism
Christopher Knight of the Los Angeles Times
Editorial Writing
Jeffery Gerritt of the Palestine (Tx.) Herald-Press
Editorial Cartooning
Barry Blitt, contributor, The New Yorker
Breaking News Photography
Photography Staff of Reuters
Feature Photography
Channi Anand, Mukhtar Khan and Dar Yasin of the Associated Press
Audio Reporting
Staff of This American Life with Molly O’Toole of the Los Angeles Times and Emily Green, freelancer, Vice News for “The Out Crowd”
LETTERS AND DRAMA
Fiction
"The Nickel Boys" by Colson Whitehead (Doubleday)
Drama
"A Strange Loop" by Michael R. Jackson
History
"Sweet Taste of Liberty: A True Story of Slavery and Restitution in America" by W. Caleb McDaniel (Oxford University Press)
Biography
"Sontag: Her Life and Work" by Benjamin Moser (Ecco/HarperCollins)
Poetry
"The Tradition" by Jericho Brown (Copper Canyon Press)
General Nonfiction
"The Undying: Pain, Vulnerability, Mortality, Medicine, Art, Time, Dreams, Data, Exhaustion, Cancer, and Care" by Anne Boyer (Farrar, Straus and Giroux)
and
"The End of the Myth: From the Frontier to the Border Wall in the Mind of America" by Greg Grandin (Metropolitan Books)
Music
"The Central Park Five" by Anthony Davis, premiered by Long Beach Opera on June 15, 2019
Special Citation
Ida B. Wells
Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5