HiPipo Money

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Citadel Capital Reports Surge in Assets to USD  4.22bn, 5.7% Rise in Non-Statutory Aggregate Revenues to USD0.91bn, and 45.2% Decline in Statutory Net Loss as Firm Releases FY13 Results

Full-year aggregate (non-statutory) revenues and EBITDA of operational core and non-core companies rises to highest levels in eight quarters. Statutory financials report near-halving of full-year loss to usd54.11 million.

Citadel Capital (CCAP.CA on the Egyptian Exchange), a leading investment company in Africa and the Middle East, released today its consolidated financial results for the fourth quarter and full year 2013.

Highlights of the results include a more than five-fold rise in assets on the balance sheet to USD 4.22 billion as part of the firm’s ongoing transformation into an investment company that holds majority stakes in most of its subsidiaries in five core industries: energy, transportation, agrifoods, mining and cement. 

On the income statement front, the firm’s statutory consolidated net loss narrowed 54.4% year-on-year in 4Q13 to USD 18.07 million, while on a full-year basis the firm’s net loss was nearly halved, falling to USD 54.11 million. The year-on-year contraction in net loss owes almost entirely to improved operational performance at the underlying platform and portfolio companies. This improvement was weighed down by USD 19.56 million in non-cash impairments taken mainly in 1Q13, related to previously written-down upstream oil and gas investments.

Meanwhile, total aggregate (non-statutory) revenues at operational core and non-core companies rose 5.7% to USD0.91billionin FY13; that improvement was dwarfed by a 67.1% increase in aggregate EBITDA to USD77.82 million on the back of more efficient management and improving market conditions. While now moving in the right direction, Management notes that EBITDA-level improvements will only begin to impact the company’s bottom line later in 2014 and into 2015, particularly as energy subsidies are lifted — a core theme for many Citadel Capital platforms — and infrastructure spending continues to rise.

In the final quarter of the year, total aggregate (non-statutory) revenues at operational core and non-core companies surged 13.9% to USD0.24billion. Meanwhile, EBITDA shot up 345.3% to USD30.92 million, its highest level in the past eight quarters. This reflects stronger across-the-board performance, led by the cement and mining sectors.

“A relentless focus on operational improvements and cost optimization at both the Citadel Capital and subsidiary levels was a focus of 2013 and remains a top focus of the current year,” said Citadel Capital Chairman and Founder Ahmed Heikal. “As this year progresses, we will maintain a laser focus on three themes: Exiting our investments in non-core holdings; using the proceeds from that divestment program to both deleverage and fuel growth at core subsidiaries; and investing in governance at the Citadel Capital and subsidiary levels to make certain we have the people and systems we need to make our growth sustainable.”

Under the divestment program, non-core subsidiaries will be exited over the coming three or more years. In the first five months of 2014, the firm has exited its investment in the Sudanese Egyptian Bank (SEB) in a US$ 22 million sale and has received an offer to sell 100% of Sphinx Glass for an equity value of c. US$ 112 million.

At the Citadel Capital-level, the highlight of 2013 was the receipt of regulatory approval and subsequent launch of a rights issue that saw the firm’s paid-in capital rise to USD 1.12 billion upon closure of the second and final subscription period on 9 April 2014. Full subscription to the USD0.51billion capital increase has allowed Citadel Capital to take majority stakes in most of its subsidiaries in five core industries.

With the majority of the acquisitions having taken place by the end of December 2013, the acquisition program had a substantial impact on the firm’s balance sheet, where assets swelled to USD 4.22 billion as of 31 December 2013 compared with USD0.82 billion a year earlier. Starting with the first quarter of 2014, Citadel Capital will also fully consolidated a number of subsidiaries on its income statement.

Highlights of the 4Q13 performance of the firm’s investments in each of Citadel Captial’s five core industries follow.

Energy

Aggregate revenues at operational core platforms rose 9.7% year-on-year in 4Q13 to USD 48.94 million, while EBITDA grew 17.8% to USD 6.41 million, driven by rising contributions from all TAQA Arabia divisions. On a full-year basis, sector revenues rose 4.6% to USD 0.18 billion, while EBITDA was flat at USD 21.03million, weighed down by a lower contribution from Tawazon which reported lower waste collection rates due to difficulties with the EEAA (Egyptian Environmental Affairs Agency, discussed in detail in the Energy section). Construction at Egyptian Refining Company is on track to allow an early-2017 start of operations; TAQA Arabia continues to strong growth figures despite national supply challenges; Tawazon remains a leading producer of refuse-derived fuel and is seeking new supply contracts; and Mashreq is in non-exclusive negotiations with potential international partners for its fuel bunkering and logistics hub.

Transportation

The segment posted aggregate revenues in 4Q13 of  USD 20.50 million, a 38.7% year-on-year rise, with EBITDA-level losses improving 88.0% in the same period. In the full year, revenues rose 12.4% to USD 74.16 million, while EBITDA saw a 49.6% narrowing to a loss of USD 7.11million. Improved performance came across the board at Nile Logistics (Egypt and Sudan) and Africa Railways (Rift Valley Railways in Kenya and Uganda). In Egypt, stevedoring operations helped make up for lower barge utilization rates at Nile Logistics, while Nile Barges in South Sudan is capturing new market share and looking forward to the 2014 launch of a rehabilitation plan. At Rift Valley Railways, the closure of a capital increase for Africa Railways allowed the latter to acquire an additional stake in April 2014, and also earmark additional funds for the ongoing successful five-year turnaround program.

Agrifoods

Aggregate sector revenues fell 7.0% year-on-year in 4Q13 amid a work stoppage at dairy producer Enjoy on the back of funding challenges. On a full-year basis, however, revenues rose 5.3% while EBITDA climbed to USD10.46million from USD0.27million the previous year on the back of improved management and market conditions at the rest of the division’s subsidiaries, including Dina Farms, Rashidi El-Mizan, ICDP and Rashidi for Integrated Solutions, in addition to lower losses from Wafra on a shift to use experts and machinery to level and develop land for third parties. Margins on farming projects for other parties are very high, allowing a stronger contribution to EBITDA.

Mining

In the fourth quarter, Mining division platform company ASCOM reported a 3.0% dip in consolidated revenue to USD18.42 million, while EBITDA came in at positive  USD 2.66 million, a significant y-o-y increase over negative USD1.24 million in 4Q12. On a full year basis, the company reported a 2.4% fall-off in revenues, but a flip to a positive EBITDA of USD2.97 million from a loss the previous year, largely on the back of improved profitability at Egyptian quarrying operations and a better performance from subsidiary ACCM.

Cement

Aggregate sector revenues rose 25.4% year-on-year in 4Q13 to USD91.44million, primarily on higher revenues from the cement division (the sector includes both cement and construction operations); EBITDA was up 83.3% in the same period. For the full year, revenues rose 9.0% to USD 0.04 billion on the back of the start of operations at ASEC Minya, a greenfield plant in Egypt, while EBITDA surged 66.6% to USD28.68million.

Full financial statements and management’s analysis of the performance of operational core platform companies as well as the firm’s standalone and consolidated financial results are available for download at ir.citadelcapital.com.

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2013 ICCA rankings confirm South Africa has stepped up its rankings to occupy its place as the leading business events destination on the continent.

South Africa’s credentials have been given a major boost and have cemented the country’s position as Africa’s top business events destination. The International Congress and Convention Associations (ICCA) 2013 ICCA rankings show that South Africa has gained three places on the global rankings placing it at number 34 from 37. In 2013, South Africa hosted 118 meetings officially making it the number one convention destination in Africa and the Middle East.

Furthermore, two of the country’s cities – Durban and Cape Town – are placed in the Top 100 cities in the world for business events.

“We are exceptionally happy with this announcement. Our hard work and the execution of the ‘Rise with Us’ strategy launched last year is clearly bearing fruits. We launched it to address and change the misconceptions the global industry has about South Africa and it seems the message is being well received,” says MrThulaniNzima, Chief Executive Officer of South African Tourism.

 “But we cannot take all the credit: This feat would not have been possible had it not been for the truly remarkable contributions of all the members of the South African tourism industry and association bodies. It is their seamless execution of conferences and meetings as well as their dedication to our vision and mandate that has clearly cemented South Africa’s growing reputation in this industry,” Nzima adds.

The SANCB was launched in 2012 to help grow and position the country as a favourable destination. At the time of its launch, South Africa had already hosted numerous mega events and meetings and conferences of global significance which had catapulted the nation’s skills and capabilities into the international spotlight.

“Before 1994, the first year of our democracy, South Africa hosted 12 international association conferences. Fast forward to 2013 and we have grown this number to 118 ICCA recognised meetings. We have also hosted 1 038 international association conferences that met ICCA’s criteria since 1994 and remain ranked under the top 11 long haul destinations globally,” says Nzima.

Some of the events successfully hosted by South Africa include the International Aids Conference that took place in 2000, which the country has won the right to host for a second time in 2016 and will be taking place in Durban. An estimated 20 000 delegates will be in attendance. The 123rd Session of the International Olympic Organising Committee which took place in Durban in 2011 and the World Congress on Intensive and Critical Care Medicine (WFSICMM) which had a total of 10 000 delegates (2013) and the One Young World Conference in 2013 which took place for the first time in Africa in Johannesburg, South Africa.

Many of the meetings and conferences hosted have not only demonstrated the country’s world class infrastructure and capabilities, but have also showcased a united industry and a committed government, working hard, passionately and together to taking this industry forward and in so doing, growing our global reputation for the benefit of all businesses in the sector. They have also done a sterling job of showing why South Africa and indeed, South Africans are highly regarded as experts and industry experts in various industries.

Shows such as IMEX Frankfurt help to deliver this message in a direct way.

“We participate in trade shows like IMEX not only because it is part of our mandate to market our country and create international marketing platforms for the local business events industry but also, and most importantly, because these shows give us direct access to the buyers and key decision makers we are targeting.”

But, as he is quick to point out, this achievement is not a win for South Africa only but for the continent as a whole. It encourages African Associations to work together and collaborate in a bid to win more events for the continent.

“Our success as a destination is made sweeter when our counterparts from the continent win as well. We need to collaborate and unite with our counterparts on the continent if we want to be a destination to be reckoned with on the business events front. The business events markets is vast and varied. There is enough for everyone – but it will take collaboration, partnership and understanding that we are working to unleash the potential of business events for the benefit of the continent, not just our country,” concludes Nzima.

It is for this reason that the SANCB manages and hosts the continent’s pan-African business event tradeshow, Meetings Africa. The show delivers a quality business platform for growing the continent’s business events industry. Next year, Meetings Africa will celebrate its tenth year and is now firmly established as the biggest, best represented and most valuable business events tradeshow in Africa.

“We’re excited about the growth of Meetings Africa and how it brings the best of Africa under one roof. It is an excellent business platform, an opportunity to discuss, network and work on ways in which we, as players in the business events sector, can and should pool together for the betterment of the industry, and of Africa,” says Amanda Kotze-Nhlapo, Chief Convention Bureau Officer at South African Tourism.

Meetings Africa 2015 takes place from 23 – 25 February at the Sandton Convention Centre. The SANCB is currently participating at the IMEX Frankfurt exhibition.

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Excited 20 shoppers just won shopping vouchers from MTN worth 500,000Ugx which they spent in one minute. This was done at capital shoppers today. MTN has done this to celebrate Labour Day with its customers. A lucky journalist was also given chance to shop so that he also experiences the excitement.

The customers shopped items ranging from electronics, bed sheets and bed covers, toiletries to groceries.

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AT INDABA 2014 OPENING CEREMONY
DATED SATURDAY, MAY 10, 2014

 Indaba, is a trade exhibition that takes places in South Africa yearly.

In the life of a nation, 20 years are but a few steps on a much longer journey. However, when those 20 years mark the birth and growth of a new democracy, they are immensely important, as they determine the direction the nation takes.

By now, every South African is aware that we are celebrating 20 years of democracy and freedom this year. Millions of South Africans are participating in one way or another to celebrate our achievements. From the side of the tourism industry, our message is a resounding one: What an exhilarating 20 years it has been!

By 1994, 20 years ago, total international arrivals, including tourist arrivals, stood at a mere 3,6 million. During our two decades of democracy, these arrivals have grown by more than 300% to reach nearly 15 million last year, 9,6 million of which were tourist arrivals. The story of 20 years of tourism since 1994 is a remarkable one indeed.

Let us just imagine, for a moment, what the 20 years before 1994 looked like. Just imagine the effect that the passbook system – an internal passport control system of sorts – had on freedom of movement. On top of that, we had a Separate Amenities Act, which regulated the use of public as well as private amenities by the colour of your skin and limited access to most tourism facilities to one racial group only. Just imagine, apart from all the other inhibiting factors, how difficult it was for a tourism industry to operate in those circumstances.

Twenty years ago, we had no purpose-built international convention centre; no Moses Mabhida Stadium, no Freedom Park; no Tourism Business Council of South Africa, which gives a voice to the previously fragmented private sector; no National Tourism Sector Strategy, which unites government and industry around common goals; no South African National Convention Bureau nor a Meetings Africa, which positions us as a premier convention and business tourism destination; no robust grading criteria that underwrite the quality of our offerings, of which the Tourism Grading Council of South Africa is today the custodian; no Lilizela Tourism Awards for excellence, and no facilitated skills development and training for thousands of young people to become chefs, sommeliers and tourism safety monitors, to name but a few.

Internationally, our country was marketed by the South African Tourism Corporation known as SATOUR. SATOUR was the offspring of the publicity arm of South African Railways and Harbours in 1947, which then developed into a government agency, ran and effectively staffed by civil servants. Since 1994, South African Tourism has been transformed from a country-promotion and publicity organisation into a dynamic global destination-marketing organisation that is the envy of many. The South African Tourism board consists of respected leaders from the private sector, who work in partnership with government to ensure coordinated and effective implementation of our plans and strategies, underpinned by cutting-edge strategic research.

From a budget of R81 million in 1994, national government today invests in excess of R1,6 billion in tourism every year, and provinces and municipalities millions more. Prior to 1994, tourism was a line function with a director and one administrative clerk at a desk in the Department of Trade and Industry. Today, we have a new Constitution with concurrent powers for tourism development and promotion across all provinces; a full-fledged Ministry and Department of Tourism that provides policy direction; a 2014 Tourism Act that elevates our legislative mandate to a level appropriate for the demands of the 21st century, and recognition of tourism as one of six core economic drivers in the country’s New Growth Path. The tourism sector was also the first in the country to have its own Black Economic Empowerment Charter and Scorecard formally gazetted. And South Africa was one of the first countries to entrench the concept of responsible tourism in its policy framework.

As a destination, we have evolved from offering exclusive safari holidays to the international travelling elite, to one of the most sought-after global destinations offering a diverse variety of unforgettable experiences, including leisure, business and events to domestic, regional and long-haul markets.

Bringing it all together is our people. In the words of late President Mandela when he opened INDABA in 1995: “… our natural beauty only offers a fitting setting for our country’s most valuable asset: its people. Ours is a nation of warm and generous people. Its great variety of culture and heritage, once exploited to divide our people, has been turned by them into a source of strength and richness in every sphere of life.”

As a country emerging from an era of isolation, South Africa joined the United Nations World Tourism Organisation in 1994. We played a catalytic role in establishing the T20 Ministers’ platform for tourism leaders from the G20 countries in Sandton, Johannesburg in 2010. Since 2012, we formally participate in the structures of the OECD’s Tourism Committee. And we are a key partner in the initiative to form a Chapter of Tourism Ministers in the African Union.

Today, we can proudly look back on having hosted some of the biggest tourism mega-events in the world, all of which have contributed to redefining our country’s image, building social cohesion and creating new economic opportunities.

Three years after the FIFA Soccer World Cup, we are still growing from strength to strength. The 9,6 million international tourist arrivals to our country recorded last year were the highest in our history. According to the latest tourism satellite account data, in 2012, our sector directly accounted for R93 billion, or 3%, of GDP – up from an estimated R9 billion, or 1,7%, of GDP in 1994. When we add domestic tourism expenditure to the mix, internal tourism expenditure amounted to R191 billion in 2012. And where direct jobs in our sector stood at an estimated 230 000, or 1,9%, of the total in 1994, tourism today accounts for over 610 000, or 4,6%, of direct employment in the country.

This good-news story is also reflected in the financial reporting of our industry partners. The accommodation subsector, for example, continues to experience solid recovery, working back the oversupply of hotel rooms following the World Cup. Last year, Sun International reported a comparative increase of 11% in accommodation revenue over the 2012 financial year, on the back of much healthier occupancy and achieved daily rates compared to previous years. Similarly, City Lodge last year reported an increase of 11% in revenue and 31% in headline earnings, while Tsogo Sun reported that their “adjusted headline earnings per share increase[d] by a very pleasing 24%” on the back of, inter alia, a 10% increase in average room rates.

And then we are all aware that, as of last month, Marriott International has acquired the 116 hotels in the Protea portfolio. This R2 billion foreign investment in over 10 000 rooms spread across 79 hotels in South Africa and 37 elsewhere on our continent represents a massive vote of confidence in what we have all achieved together in the tourism sector.

Taken together, these are impressive numbers indeed. Looking to the next 20 years of tourism, it is hard to envisage how technology will evolve, or how consumer preferences will change, or how the centre of gravity of our source markets may still shift. Many challenges remain, not least those of transformation and accelerated job creation. It is safe to say that we are entering the next 20 years of democracy and freedom confident that the tourism economy’s fundamentals are in place – knowing that we are hedged against shifting markets through a balanced portfolio of domestic, regional and overseas long-haul arrivals from both mature and emerging economies, and a diversified, authentic supply side that continue to differentiate us in the global market place. And we are embracing the opportunities brought about by the mobile and social media revolution to customise value-for-money offerings to consumers.

And as we meet here as Africans, we recognise that we have to resolve outstanding challenges in travel facilitation. I am convinced that, 20 years from now, history books telling the story of tourism on our continent will describe how a modernised and truly pan-African INDABA has been one of those pivots that helped us to take tourism to the next level on our continent. This year, we have 24 African countries exhibiting at INDABA.

I am honoured to be joined by so many of my ministerial colleagues from all corners of the continent, with whom we also met yesterday in the first ever INDABA Ministerial Roundtable on common travel facilitation and connectivity challenges. I welcome you and acknowledge your presence here tonight (may I please ask you to stand up):

• AU Commissioner for Infrastructure and Energy
• The Deputy Minister from Angola
• The Minister from Benin
• The Minister from Burundi
• The Minister from Congo Brazzaville
• The Minister from Gabon
• The Deputy Minister from Ghana
• The Minister from Lesotho
• The Minister from Madagascar
• The Minister from Namibia
• The Minister from Senegal
• The Minister from Seychelles
• The Minister from Swaziland
• The Minister from Uganda
• The Minister from Zambia
• The Minister from Zimbabwe

Ladies and gentlemen, ten years ago, I stood here to deliver my first INDABA opening address. I would like to thank each and every partner, from every sphere of government to the private sector, for working with me and the rest of national government to achieve success. This sector can only excel if we all value and understand the nature of the relationship between government and the private sector – and that includes big business as well as small, medium and micro-sized enterprises. To all of you, thank you. Now, let us embark on the next 20 years of our journey, together.

Thank you

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AT INDABA 2014 OPENING CEREMONY
DATED SATURDAY, MAY 10, 2014

In the life of a nation, 20 years are but a few steps on a much longer journey. However, when those 20 years mark the birth and growth of a new democracy, they are immensely important, as they determine the direction the nation takes.

By now, every South African is aware that we are celebrating 20 years of democracy and freedom this year. Millions of South Africans are participating in one way or another to celebrate our achievements. From the side of the tourism industry, our message is a resounding one: What an exhilarating 20 years it has been!

By 1994, 20 years ago, total international arrivals, including tourist arrivals, stood at a mere 3,6 million. During our two decades of democracy, these arrivals have grown by more than 300% to reach nearly 15 million last year, 9,6 million of which were tourist arrivals. The story of 20 years of tourism since 1994 is a remarkable one indeed.

Let us just imagine, for a moment, what the 20 years before 1994 looked like. Just imagine the effect that the passbook system – an internal passport control system of sorts – had on freedom of movement. On top of that, we had a Separate Amenities Act, which regulated the use of public as well as private amenities by the colour of your skin and limited access to most tourism facilities to one racial group only. Just imagine, apart from all the other inhibiting factors, how difficult it was for a tourism industry to operate in those circumstances.

Twenty years ago, we had no purpose-built international convention centre; no Moses Mabhida Stadium, no Freedom Park; no Tourism Business Council of South Africa, which gives a voice to the previously fragmented private sector; no National Tourism Sector Strategy, which unites government and industry around common goals; no South African National Convention Bureau nor a Meetings Africa, which positions us as a premier convention and business tourism destination; no robust grading criteria that underwrite the quality of our offerings, of which the Tourism Grading Council of South Africa is today the custodian; no Lilizela Tourism Awards for excellence, and no facilitated skills development and training for thousands of young people to become chefs, sommeliers and tourism safety monitors, to name but a few.

Internationally, our country was marketed by the South African Tourism Corporation known as SATOUR. SATOUR was the offspring of the publicity arm of South African Railways and Harbours in 1947, which then developed into a government agency, ran and effectively staffed by civil servants. Since 1994, South African Tourism has been transformed from a country-promotion and publicity organisation into a dynamic global destination-marketing organisation that is the envy of many. The South African Tourism board consists of respected leaders from the private sector, who work in partnership with government to ensure coordinated and effective implementation of our plans and strategies, underpinned by cutting-edge strategic research.

From a budget of R81 million in 1994, national government today invests in excess of R1,6 billion in tourism every year, and provinces and municipalities millions more. Prior to 1994, tourism was a line function with a director and one administrative clerk at a desk in the Department of Trade and Industry. Today, we have a new Constitution with concurrent powers for tourism development and promotion across all provinces; a full-fledged Ministry and Department of Tourism that provides policy direction; a 2014 Tourism Act that elevates our legislative mandate to a level appropriate for the demands of the 21st century, and recognition of tourism as one of six core economic drivers in the country’s New Growth Path. The tourism sector was also the first in the country to have its own Black Economic Empowerment Charter and Scorecard formally gazetted. And South Africa was one of the first countries to entrench the concept of responsible tourism in its policy framework.

As a destination, we have evolved from offering exclusive safari holidays to the international travelling elite, to one of the most sought-after global destinations offering a diverse variety of unforgettable experiences, including leisure, business and events to domestic, regional and long-haul markets.

Bringing it all together is our people. In the words of late President Mandela when he opened INDABA in 1995: “… our natural beauty only offers a fitting setting for our country’s most valuable asset: its people. Ours is a nation of warm and generous people. Its great variety of culture and heritage, once exploited to divide our people, has been turned by them into a source of strength and richness in every sphere of life.”

As a country emerging from an era of isolation, South Africa joined the United Nations World Tourism Organisation in 1994. We played a catalytic role in establishing the T20 Ministers’ platform for tourism leaders from the G20 countries in Sandton, Johannesburg in 2010. Since 2012, we formally participate in the structures of the OECD’s Tourism Committee. And we are a key partner in the initiative to form a Chapter of Tourism Ministers in the African Union.

Today, we can proudly look back on having hosted some of the biggest tourism mega-events in the world, all of which have contributed to redefining our country’s image, building social cohesion and creating new economic opportunities.

Three years after the FIFA Soccer World Cup, we are still growing from strength to strength. The 9,6 million international tourist arrivals to our country recorded last year were the highest in our history. According to the latest tourism satellite account data, in 2012, our sector directly accounted for R93 billion, or 3%, of GDP – up from an estimated R9 billion, or 1,7%, of GDP in 1994. When we add domestic tourism expenditure to the mix, internal tourism expenditure amounted to R191 billion in 2012. And where direct jobs in our sector stood at an estimated 230 000, or 1,9%, of the total in 1994, tourism today accounts for over 610 000, or 4,6%, of direct employment in the country.

This good-news story is also reflected in the financial reporting of our industry partners. The accommodation subsector, for example, continues to experience solid recovery, working back the oversupply of hotel rooms following the World Cup. Last year, Sun International reported a comparative increase of 11% in accommodation revenue over the 2012 financial year, on the back of much healthier occupancy and achieved daily rates compared to previous years. Similarly, City Lodge last year reported an increase of 11% in revenue and 31% in headline earnings, while Tsogo Sun reported that their “adjusted headline earnings per share increase[d] by a very pleasing 24%” on the back of, inter alia, a 10% increase in average room rates.

And then we are all aware that, as of last month, Marriott International has acquired the 116 hotels in the Protea portfolio. This R2 billion foreign investment in over 10 000 rooms spread across 79 hotels in South Africa and 37 elsewhere on our continent represents a massive vote of confidence in what we have all achieved together in the tourism sector.

Taken together, these are impressive numbers indeed. Looking to the next 20 years of tourism, it is hard to envisage how technology will evolve, or how consumer preferences will change, or how the centre of gravity of our source markets may still shift. Many challenges remain, not least those of transformation and accelerated job creation. It is safe to say that we are entering the next 20 years of democracy and freedom confident that the tourism economy’s fundamentals are in place – knowing that we are hedged against shifting markets through a balanced portfolio of domestic, regional and overseas long-haul arrivals from both mature and emerging economies, and a diversified, authentic supply side that continue to differentiate us in the global market place. And we are embracing the opportunities brought about by the mobile and social media revolution to customise value-for-money offerings to consumers.

And as we meet here as Africans, we recognise that we have to resolve outstanding challenges in travel facilitation. I am convinced that, 20 years from now, history books telling the story of tourism on our continent will describe how a modernised and truly pan-African INDABA has been one of those pivots that helped us to take tourism to the next level on our continent. This year, we have 24 African countries exhibiting at INDABA.

I am honoured to be joined by so many of my ministerial colleagues from all corners of the continent, with whom we also met yesterday in the first ever INDABA Ministerial Roundtable on common travel facilitation and connectivity challenges. I welcome you and acknowledge your presence here tonight (may I please ask you to stand up):

• AU Commissioner for Infrastructure and Energy
• The Deputy Minister from Angola
• The Minister from Benin
• The Minister from Burundi
• The Minister from Congo Brazzaville
• The Minister from Gabon
• The Deputy Minister from Ghana
• The Minister from Lesotho
• The Minister from Madagascar
• The Minister from Namibia
• The Minister from Senegal
• The Minister from Seychelles
• The Minister from Swaziland
• The Minister from Uganda
• The Minister from Zambia
• The Minister from Zimbabwe

Ladies and gentlemen, ten years ago, I stood here to deliver my first INDABA opening address. I would like to thank each and every partner, from every sphere of government to the private sector, for working with me and the rest of national government to achieve success. This sector can only excel if we all value and understand the nature of the relationship between government and the private sector – and that includes big business as well as small, medium and micro-sized enterprises. To all of you, thank you. Now, let us embark on the next 20 years of our journey, together.

Thank you

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Firm nears exitof investment instate-of-the-art glass manufacturer Sphinx Glassas part of its strategy to divest non-core assets

Citadel Capital (CCAP.CA on the Egyptian Exchange), aleading investment company in Africa and the Middle East, has received a binding offer to sell 100% of non-core portfolio company Sphinx Glass Ltd. for an equity value ofapproximatelyUS$ 112 million.

Sphinx Glass,a 200,000 ton per annum, state-of-the-art float glass production facility,began full operations in April 2010 and is today one of the largest independently operated float glass producers in the MENA region. In addition to beinga key player in the Egyptian market, Sphinx Glass is also a significant regional and international exporter. The company specializes in the production of clear and tinted float glass and online coated glassin varying thicknesses. The company recorded USD 55.78million in sales in 2013 and is currently on target to exceed its budget for the second consecutive year.

Citadel Capital will be divesting its 73.3% ownership stake in the company; the balance of the equity subject to sale in the transaction is held by co-investors.

“Sphinx Glass is one of the most technologically advanced facilities of its kind in Egypt.Witha strong management team and the proper infrastructure already in place to build a second line, the company undoubtedly has the potential to grow into a major regional exporter,” said Citadel Capital Co-Founder and Managing Director Hisham El-Khazindar.

“We are exiting our investment in the companyas part of the execution of our new strategy to divest non-core assets in a timely manner at the right valuations as we transform into an investment holding company with a narrower focus,” he added.

Citadel Capital has acquired majority stakes in most of its core subsidiaries in the energy, transportation, agrifoods, mining and cement industries following the conclusion of a capital increase to USD 1.14 billion.

The Sphinx Glass factory was designed by and operates under license of world-renowned float glass technology provider PPG Industries andwas built by a leading Italian contractor. The investment leveragesEgypt’s abundance of high-quality raw materials and the supply ofskilled labor, both of which are key elements in the production of float glass. With the distinguished geographical location of the manufacturing base  in Egypt;Sphinx Glassis well suited to serviceboth domestic as well as export markets.

Due diligence on Sphinx Glass has been completedin the past period. Subject to the finalization of a sale and purchase agreement, the transaction for the sale of 100% of Sphinx Glass is expected to close during the next two months.

The divestiture of non-core industries, the most recent of which was the US$ 22 million sale of a 66.1% stake in the Sudanese Egyptian Bank, will continue over the coming three years.   

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MTN Uganda has started with its 2014 Internet Expos in Kampala where after it will go regional. The 2014 Expos areInternet themed exhibitions toshowcaseamong other, MTN’s data products and services in an engaging, entertaining and informative set up.

Launchingin Kampala,this year’s expos will provideinteractive platforms through partnerships with device providers to offer a complete unique customer experience.

Under the theme, Touch, Feel and Experience,consumers are called upon to come experience World-class Internet, the gateway toa bold, newDigital World which MTN is delivering.

Throughout the year, MTN will take the expos to Jinja, Mbarara, Kabale, andLira.

Mr. Ernst Fonternel,MTN’s Chief Marketing Officer, said MTN will continue to enhance theirofferings to meet and exceed their customer’s needs to make their lives a whole lot brighter.

“MTN’s vision of leading the delivery of a bold,new Digital World to our customers is one of the reasons why we need to continue extending our connectivity drive into the greater world with our planned data themed Expos.We shall continue with our strategy to drive data penetration in the different regions. Using the Expo platform, we plan to avail a cross section of our customers in various strategic regional venues with education about MTN’s Mobile Internet services, the USSD self-provisioning, the various attributes of our Internet products and the vast portfolio of devices that we have.” Fonternel said.

In 2013 MTN becamethe first operator in Uganda, and one of the very first in Africa to launch the LTE service. The launch of LTE represented a major jump in mobile connectivity capabilities with speeds of up to 100Mbps. MTN is further covering the country with speeds up to 42Mbps and ensuring great quality Internet and speeds for the broader Uganda population. During 2013, MTN more than doubled its Internet utilization and with innovative solutions such each customer receiving access to 15MB Free Internet each month and Free Unlimited Facebook use through 0.Facebook.com MTN’s 2.6 million customers who are already accessing the Internet each month is projected to exponentially grow by end of year.

“We are entering the Post-PC world. A world where the traditional computer is facing growth challenges from smartphone and tabletdevices.While this might still take some time for Uganda to arrive at, MTN is bringing the experience closer through the expos. We want people to Touch, Feel and Experience World-class Internet. The MTN regional Expos are the company’s way to take services closer to its audiences. It’s also intended to create awareness for the vast opportunities available through the use of ICT as well as expose customers to the various data options available from MTN” Fonternel added.

MTN Uganda is the leading investor in technology with an investment of over $70million in 2013 alone to upgrade infrastructure, but also extend services to previously uncovered areas.

“Our investment into Ugandashows MTN’s commitment to continue providing services relevant to our customer’s current and future needs, and this firmly positions MTN as a leader with a clear vision for the future; leading the way for others to follow.”

Ernst explained that over the next five years, data and digital services will be the primary focus of MTN Uganda.

“Our strategic objectives are dynamic and provide a comprehensive roadmap to maintain MTN as a clear Number One for Customer Experience and Superior Quality,” Fonternel concluded.

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·        2014 CATEGORIES REFLECT VIBRANT AFRICAN MEDIA LANDSCAPE

CNN International and MultiChoice this week officially launched the CNN MultiChoice African Journalist 2014 Awards. 

The competition for African nationals based on the continent welcomes entries from journalists creating content targeting an African audience.

Also this year, the competition has become even easier for journalists to enter, with submissions being made via the entry form website http://www.cnnmcaja.cnn.com.

Tony Maddox, Executive Vice President and Managing Director of CNN International, said: “Since the very beginning, these Awards have discovered and rewarded superlative African journalism across the continent.  With even more of Africa’s storytellers now able to share their work with us, we expect even more outstanding entries.  The categories this year also perfectly mirror the reality of today’s Africa’s multi-platform media scene. As Africa’s leading news provider, we’re delighted to play our part in supporting the excellent journalism these Awards yield annually.”

Nico Meyer, CEO MultiChoice Africa, said: “As we enter our 10^th year as partners to the CNN MultiChoice African Journalist Awards, we continue to be amazed and honoured by the phenomenal impact that this initiative has had on the continent. It certainly has been a game changer for the advancement of media development and quality journalism, showcasing top-class journalists who can compete heads and shoulders with their peers on the world stage. This year promises to once again highlight Africa’s best journalistic talent.”

South Africans Msindisi Fengu and Yandisa Monakali, from South Africa were awarded the top prize at the CNN MultiChoice African Journalist 2013 Awards ceremony. Their work ‘Investigation series: School hostels of Shame’, which appeared in South African daily print newspaper Daily Dispatch investigated the appalling conditions being experienced by thousands of pupils in the Eastern Cape of South Africa, uncovering hygiene and safety risks in school hostels and lifting the lid on corruption within the education department. It was chosen from 1387 entries from 42 nations across the African continent.

Over the past 19 years, the competition has grown in size and status to become Africa’s most prestigious media event. In 2013, a ‘Highlights Programme’ of the ceremony, held in Cape Town, South Africa, was broadcast in 46 African countries, plus the UK, USA and the Caribbean.

Open to journalists working in any medium, this year the competition will recognise excellence in the following categories:

• ·         Culture Award
• ·         The Coca-Cola Company Economics & Business Award
• ·         *GE Energy & Infrastructure Award (*NEW*)
• ·         Environment Award
• ·         MSD Health & Medical Award
• ·         *News Impact Award (*NEW*)
• ·         Mohamed Amin Photographic Award
• ·         Press Freedom Award
• ·         Sport Reporting Award
• ·         Francophone General News Awards – Electronic media & Print
• ·         Portuguese Language General News Awards – Electronic media & Print

From these category winners, an independent judging panel choose the overall winner – The CNN MultiChoice African Journalist 2014.

Finalists in the 2014 competition will participate in a finalists’ programme that will include a media forum and networking opportunities with senior journalists, editors, business leaders and media owners from across the continent, culminating in a gala awards ceremony later in the year. The CNN MultiChoice African Journalist 2014 will have the opportunity to participate in the CNN Journalism Fellowship at CNN Headquarters in Atlanta.

www.cnn.com/africanawards

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…as Fresh Dairy whole milk and full cream milk getextended shelf life.

Sameer Agriculture and Livestock Ltd (SALL), the makers of Fresh Dairy milk have today unveiledtwo new variants of the Fresh Dairy brand that will cater for the ever increasing demand for milk in Uganda.

The new variants of whole milk and full cream milk will now have an extended shelf life of 30 days from the normal 3 days thanks to new technology employed by Sameer that will see them have zero bacteria.

The packaging has multiple layers with hermetic sealing that gives no chance for bacteria to survive hence its ability survive for up to 30 days.

Making the announcement at their head offices in Industrial area in Kampala,SALL’s Business Head Mr. Sudhir Mathulla said that the innovative move has been spurred by the growing demand for milk and convenience of the longer shelf life with no refrigeration.

“The move is intended to simplify the lives of our consumers.They do not have to worry about contamination of the milkanymore because the milk is heated under sterile conditions,” Sudhir said.

The new variants are available in a half litre poly pouch at UGX 850 in all retail centers.

Sameer Agriculture and Livestock Limited answers today’s fast-paced consumer demands by launching fresh milk with a longer shelf life onto the Ugandan market with the aim of bringing to the fore the goodness in milk.

“Milk and dairy products are important in diversifying an individual’s diet. They are nutrient compressed and provide high quality protein and micronutrients in an easily absorbable form. These benefit both nutritionally vulnerable people and healthy people when consumed in appropriate amounts, “added Mr.Sudhir Mathulla.