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Embattled Uber CEO Kalanick to take leave of absence

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Uber is facing pressure to rein in its no-holds-barred management style led by Travis Kalanick and to reform a workplace culture criticized for discrimination and cutthroat practices © AFP/File / MONEY SHARMA

San Francisco, United States, Jun 14 – Uber chief executive Travis Kalanick announced Tuesday he would take an indefinite leave of absence as the embattled ridesharing giant unveiled steps to reform a corporate culture marred by a series of embarrassing revelations.

The pioneering company has been facing pressure to rein in a no-holds-barred management style led by Kalanick and to reform its workplace culture, which has sparked charges of harassment and discrimination.

“It’s hard to put a timeline on this — it may be shorter or longer than we might expect,” the 40-year-old Kalanick said in an email to Uber employees.

“If we are going to work on Uber 2.0, I also need to work on Travis 2.0 to become the leader that this company needs and that you deserve.”

Kalanick said one of the reasons for his stepping aside was the recent death of his mother, explaining that “I need to take some time off of the day-to-day to grieve” and “to reflect, to work on myself, and to focus on building out a world-class leadership team.”

Uber simultaneously released a 13-page document calling for major reforms at the company based on a probe led by former US attorney general Eric Holder, who investigated allegations of misconduct and ethical lapses.

The report, recommendations of which were adopted by the board, said Uber “should reformulate its written cultural values because it is vital that they reflect more inclusive and positive behaviors.”

It said this should be based on “values that are more inclusive and contribute to a collaborative environment, including emphasizing teamwork and mutual respect, and incorporating diversity and inclusiveness as a key cultural value, not just as an end in itself, but as a fundamental aspect of doing good business.”

The Holder investigation was aimed at cleaning up a corporate culture marred by accusations of harassment, discrimination, and cutthroat practices to thwart rivals and evade regulators.

The company is facing questions about its covert use of law enforcement-evading software and tactics apparently aimed at disrupting rivals in the ridesharing business.

– ‘Tone at the top’ –

The report said the reforms should focus on “tone at the top, trust, transformation, and accountability.”

It said the company should “review and reallocate responsibilities of Kalanick,” and that creating the job of chief operating officer, which was discussed in recent months, “should address this concern to some extent.”

The report said the reforms should focus on “tone at the top, trust, transformation, and accountability.”

It said the company should “review and reallocate responsibilities of Kalanick,” and that creating the job of chief operating officer, which was discussed in recent months, “should address this concern to some extent.”

Uber should also consider installing an independent board chair, “to serve as an independent check on Uber’s management” and to show it is taking reforms seriously. The Holder report also called for “an ethics and culture committee” to oversee Uber’s efforts to maintain ethical business practices.

Uber, which is the world’s richest venture-backed startup valued at some $68 billion, operates in dozens of countries despite problems with regulators in many jurisdictions and protests from established taxi operators.

The San Francisco group parted ways this week with its number two executive, Emil Michael, who had been reportedly linked to a number of questionable practices at Uber including a visit to a South Korean escort-karaoke bar and an attempt to dig up embarrassing information on journalists.

Last week, Uber said it had fired 20 people following preliminary results of the investigation, after examining 215 claims of discrimination, harassment, unprofessional behavior, bullying, retaliation and “physical security.”


Full stalls, empty markets as South Sudan’s economy crumbles

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A woman pushes her way through the bread line at the Konyo Konyo market in Juba/AFP

Aweil, South Sudan, June 15 – “I sell the small bottle of cooking oil for 140 SSP. Six months ago, it was 70. The customers complain,” said James Deng, an 18-year-old stallholder in Aweil, South Sudan.

In this regional market in the country’s northwest – just as at the main Konyokonyo market in the capital Juba, 800 kilometres (500 miles) to the south, and other towns across the country – prices of essential items have rocketed as a direct consequence of almost uninterrupted civil war since December 2013.

The South Sudanese Pound (SSP) has collapsed from 18.5 to the dollar in December 2015 to around 140 now in black market transactions in Juba. Inflation has reached record levels increasing by 730 percent in the 12 months up to August 2016, according to World Bank figures.

Adam Oumar, a shopkeeper in Aweil, sells red onions for 500 SSP per ‘malua’, an iron container used as a measuring unit and containing about four kilogrammes. Only six months ago, it cost 70 pounds.

“It’s now very expensive and people can’t afford it anymore, so they take little,” he said, standing in front of his shop, well-stocked like those of his neighbours, but lacking customers.

In Konyokonyo, Saturdays used to be the busiest in the hectic market, but in early June the dense maze of uneven paths contained just a few customers, shuffling between stalls dedicated to mattresses, plastic buckets and secondhand clothing in the section run by Sudanese traders.

Vegetables are sold in an area dominated by Ugandan merchants. Kamala, a 46-year-old schoolteacher, a basket of shopping in her hand, had a frustrating morning. “I came with 6,000 pounds but just see, this basket is not filled up.” She said she received her last wages in January and it was getting harder and harder to buy the basics.

Spending savings 

Kamala should receive 2,000 pounds a month, a salary that has not increased for years. In early 2016 it was worth about $65 (58 euros). Now it’s worth just $15. This is a particular problem in South Sudan where almost everything is imported.

“This money we are pulling out now, it’s money we saved for the future, to cater for issues of children, medicine or education for children. But this money, now we are finishing it for food,” she said.

“The first solution to this problem is for the conflict to stop. This will give us opportunity to cultivate and grow our own food,” Kamala said.

In South Sudan, 85 percent of the working population is self-employed, the overwhelming majority engage in small scale farming. But the conflict has severely disrupted agricultural production, triggering a major food crisis nationwide and even famine in some areas.

The government of President Salva Kiir understands the sensitivity of the matter and ordered food trucks from neighbouring Uganda to Juba at the beginning of May.

The influx of subsidised food was supposed to help relieve pressure on prices, but the effect was limited.

The conflict has also hit South Sudan’s oil production, its only source of foreign exchange, at the same time as global oil prices have tumbled.

“Before the crisis of 2013 we were producing 240,000 barrels per day. In 2014 up to the first half of 2015 we were producing 160,000 barrels per day. To my knowledge today we are below 130,000,” said finance minister Stephen Dhieu in an interview.

He added that the government is trying to rehabilitate some of the oil facilities damaged by fighting and increase production to around 160,000-180,000 barrels a day this year.

The country is the world’s most dependent on oil revenues, which account for almost all of its exports and for 60 percent of gross domestic product, according to the World Bank.

Truckers, taxis and private individuals struggle to fill their tanks, waiting for hours in long queues outside the few petrol stations that have fuel. The alternative is the black market where, in Aweil for example, 26 year old Sadik sells a 16 litre container of petrol for 2,800 pounds, up from 1,700 six months ago.

Rather than a black market, this is, in fact, a parallel market, operating in plain sight, on a busy city road. The only time Sadik has any problems with officials, he says, is when they come to complain that traders are stockpiling fuel to push prices higher still, as he too tries to earn enough to live.

Online system cuts business registration to 3 days

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The system has reduced the queues at Sheria House/Courtesy

NAIROBI, Kenya, June 19 – The adoption of an online system for business registration has reduced the number of days it takes to register a company to three days.

The Online Company Registration System, under the Business Registration Service, enables users to search and secure a business name, get necessary government documents like KRA Certificate, NSSF and NHIF at the comfort of their office or home.

Acting General Director of Business Registration Service, Kenneth Gathuma, says the integration with e-citizen has been instrumental in reducing the time taken to registers a company.

“The payment of this services is done under the Government digital pay system to ensure all payments to Government are done in a transparent and efficient manner,” said Gathuma, while updating the Private Sector on the Ease of doing Business in Kenya.

However, Gathuma admits the system is far from flawless, saying there are still hiccups in the system that may see some users take longer to register a company.

“Sometimes the system is down or there is a bit of back and forth with the register of companies which we see as birthing problems, but in a couple of months, we should be seeing this process reduced to two days at the most,” Gathuma says.

Through the e-citizen portal, the Government can track applicants and create a rich database on who is registering businesses in the country through the digital footprints in the system.

Lifebuoy in behavioural change campaign to reduce child mortality

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The 21-day intensive campaign seeks to raise awareness and change the hygiene habits of 12 million Kenyans by 2020, through the Lifebuoy Help a Child Reach 5 programme/FILE

NAIROBI, Kenya, Jun 22 – Unilever Kenya through its Lifebuoy brand, has kicked off an integrated behavioural change campaign to help reduce child mortality.

The 21-day intensive campaign seeks to raise awareness and change the hygiene habits of 12 million Kenyans by 2020, through the Lifebuoy Help a Child Reach 5 programme.

The programme seeks to foster a hand washing with antibacterial soaps culture as part of a continental programme aimed at encouraging behaviour change for more than 1billion people in Africa.

Speaking when she confirmed the launch of the campaign, Myriam Sidibe, Hygiene and Nutrition Social Mission Director Africa said the initiative has been inspired by available statistic indicating that more than 5.9million children under the age of 5 years died in 2015 due to several preventable causes including diarrhoea.

The Centre for Disease Control (CDC) while describing hand washing with a soap as a “do-it-yourself” vaccine notes that keeping hands clean through improved hand hygiene is one of the most important steps we can take to avoid getting sick and spreading germs to others. Many diseases and conditions are spread by not washing hands with soap and clean, running water.

According to the World Health Organization and UNICEF, Children in sub-Saharan Africa are more than 14 times more likely to die before the age of 5, than children in developed regions. More than half of these early child deaths are due to conditions that could be prevented or treated with access to simple, affordable interventions.

“Such grim statistics are a stark reminder that the local corporates have a role to play in raising awareness for interventions such as hand washing to reduce child mortality,” said Myriam.

To help deal with these maternal challenges, Lifebuoy has launched the second phase of the Lifebuoy School of 5 Programme targeting to reach 200,000 children between June and August 2017. Between February to April this year, the programme benefited over 200,000 school children who were celebrated during today’s event.

“Simple hygiene interventions can make a massive difference to this complex issue which in turn improves health and well-being of school going children,” said Carolyne Kendi Marketing Manager – Skin Cleansing EA.

Since 2010, Lifebuoy has reached more than 337 million people across 28 countries in Asia, Africa and Latin America to teach them healthy hand washing habits. Lifebuoy’s hand washing with soap behaviour change programme transforms the hygiene habits of new mothers, school children, caregivers and entire communities

The 21-Day intensive behaviour change program motivates students to practice the hand washing with soap behaviour during the 5 key daily occasions.

Carolyne further noted that the act of hand washing with soap is the most cost-effective way to save lives and stop new born deaths yet only 19% of the world’s population wash their hands with soap after using toilet facilities.

She says as of March 2016, access to hand washing facilities with soap has been recognised as an indicator to achieve UN Sustainable Development Goal 6 (ensure available and sustainable water and sanitation for all).

“Hand washing Changing behaviour takes consumer understanding and marketing expertise – and that’s where Lifebuoy soap steps in. With soap is proven to reduce diarrhoea disease by up to 45% and pneumonia by 23%,” added Carolyne.

Carolyne added that despite numerous traditions being followed for an auspicious start to a newborn’s life, sadly, the simplest practice of hand washing is not taken seriously, putting babies at life-threatening risk.

KAPI to commission study on unregulated medicines prevalence

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According to KAPI Chairperson Dr Anastasia Nyalita, unregulated Pharmaceutical products include; illicit and counterfeit products not sourced through the established channels including unregulated imports/COURTESY

NAIROBI, Kenya, Jun 27 – The Kenya Association of Pharmaceutical Industry (KAPI) in collaboration with the University of Nairobi is set to commission a nationwide market study to establish the prevalence of unregulated medicines in Kenya.

The research study is seeking to quantify the extent and degree of unregulated pharmaceutical products available in the Kenyan retail pharmaceutical market.

According to KAPI Chairperson Dr Anastasia Nyalita, unregulated Pharmaceutical products include; illicit and counterfeit products not sourced through the established channels including unregulated imports.

The study results, Dr Nyalita said, will provide a foundation for policy and enforcement interventions as the Association plans to share the study findings with the sector regulator, Kenya Revenue Authority, Ministry of Health, KAPI members, and related stakeholders once completed.

“This will help us to have credible data that can be analysed further to aid in decision making among stakeholders including the Commissioner of Customs at KRA,” Dr Nyalita said, adding that, “At KAPI we plan to mainstream this study to be a regular exercise that can help policy makers design relevant interventions based on the trends map.”

The study comes hot on the heels of the recent market rollout of the KAPI Code of Practice, aimed at fostering ethical interactions between the local pharmaceutical companies and healthcare professionals.

The new KAPI Code of Practice also seeks to enhance ethical educational and promotional efforts that benefit patients and promotional programs and collaborations that enhance the practice of medicine.

Alongside the KAPI study, The World Customs Organization (WCO) and the International Institute for Research Against Counterfeit Medicines (IRACM) recently announced plans to intensify the fight against illicit and counterfeit drugs in Africa.

The plans by the WCO and IRACM are based on the results of their fourth common initiative in the fight against fake medicines on the African continent. The report established that the number of illicit and potentially dangerous pharmaceutical products seizures has now reached dramatic proportions, with almost 900 million counterfeit and illicit medicines seized at the borders of the Africa continent.

A communiqué from the IRACM recently confirmed that plans are at an advanced stage to conduct a field surveillance exercise dubbed Operation ACIM (Action against Counterfeit and Illicit Medicines) following the success of a similar exercise last September.

Featuring 16 African customs administrations including Kenya, Operation ACIM simultaneously inspected cargo containers identified as likely to contain illicit or counterfeit pharmaceutical products posing a dangerous threat to local populations.

Some 113 million illicit and potentially dangerous medicines were seized during Operation ACIM, with a total estimated value of €52 million. Among the medicines uncovered by the African customs officials, were essential drugs such as antimalarial, anti-inflammatories, antibiotics, and analgesics, as well as gastro-intestinal medicines. Even if most of the seizures were of everyday medicines, anti-cancer drugs, with over 2 million doses discovered, are also included in this tragic record.

Google hit with record 2.4 bn euro EU fine

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European Commissioner for Competition Margrethe Vestager addresses a press conference on an anti-trust case against US search engine Google at the European Commission in Brussels, on June 27, 2017/AFP

BRUSSELS, Belgium, Jun 27 – The EU hit Google with a record 2.4-billion-euro fine Tuesday for illegally favouring its shopping service in search results, in a fresh assault on US firms that risks the wrath of President Donald Trump.

Hard-charging European Commission competition chief Margrethe Vestager said the tech giant “abused its market dominance” as the world’s most popular search engine to give an advantage to its Google Shopping service.

“What Google has done is illegal under EU antitrust rules,” Denmark’s Vestager told a news conference in Brussels.

“It denied other companies the chance to compete on the merits and to innovate. And most importantly, it denied European consumers a genuine choice of services and the full benefits of innovation.”

Google now has 90 days to “end this conduct” or face further fines, Vestager said. These could amount to five percent of Google’s daily revenue, she added, a penalty of roughly $14 million a day.

The fine broke the previous European Union record for a monopoly case against US chipmaker Intel of 1.06 billion euros in 2009.

Google said it “respectfully” disagreed with the EU decision, which followed a seven-year investigation, and may appeal.

The 2.4-billion-euro anti-trust fine slapped on Google broke the previous EU record for a monopoly case against US chipmaker Intel of 1.06 billion euros in 2009/AFP-File

“When you shop online, you want to find the products you’re looking for quickly and easily. And advertisers want to promote those same products,” Kent Walker, Google’s senior vice president and general counsel, said in a statement.

“That’s why Google shows shopping ads, connecting our users with thousands of advertisers, large and small, in ways that are useful for both.

“We will review the Commission’s decision in detail as we consider an appeal, and we look forward to continuing to make our case.”

‘Game-changer’

Google Shopping shows the images and prices of products in response to searches about shopping when someone uses the search engine.

The EU accuses Google of giving its own online service, Google Shopping, too much priority in search results to the detriment of other price comparison services © AFP/File / SUSANA BATES

Brussels accuses Google of giving its own service too much priority in search results to the detriment of other price comparison services, such as TripAdvisor and Expedia.

The EU alleges that in 2008 Google embarked on a “fundamental change in strategy” by devoting top of the page priority to Google Shopping, pushing rivals further down the page.

“This decision is a game-changer,” said Monique Goyens, head of the European Consumer Organisation which was also involved in the case.

“Google’s market dominance has given the company power to decide the fate of all but the biggest online service providers in other words nearly every company,” said Fairsearch, a lobby of complainants, in a statement.

The verdict comes less than a year after Vestager shocked Washington and the world with an order that iPhone manufacturer Apple repay 13 billion euros in back taxes in Ireland.

The Google fine could also set an important precedent for other Google services, such as for images, news and travel that have also received complaints from rivals.

While an EU record, the amount is below the maximum possible of more than 8 billion euros or 10 percent of Google’s total revenue of $90 billion last year.

‘No bias’

The case, launched in 2010, is one of three against Google and of several against blockbuster US companies including Starbucks, Apple, Amazon and McDonalds.

In the other Google cases, the EU is examining Google’s AdSense advertising service and its Android mobile phone software.

Vestager said “preliminary conclusions” in the Android and AdSense cases showed Google also breached EU rules.

The cases have stoked tensions with Washington and could now face the wrath of Trump, the tycoon who won office on his “America First” slogan and has previously hit out against the EU.

But Vestager denied any anti-US prejudice.

“I have been going through the statistics… I can find no facts to support any kind of bias,” she said.

The decision come after a long negotiation period with many twists and turns.

Vestager’s predecessor, the Spaniard Joaquin Almunia, made three attempts to resolve the dispute amicably but each time pressure by national governments, rivals and privacy advocates scuppered the effort.

The Google fine will almost certainly face a gruelling appeals process through the EU court in Luxembourg.

The 2009 fine against Intel is still snaking its way through the court, with an appeal decision not expected until next year.

CMC Motors launches New Holland TT4 Tractor

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Agricultural Society of Kenya Kisumu Branch Chairperson Caleb Oguya (left) flanked by CMC Motors CEO Mark Johnson trying out a New Holland TT4 Tractor unit in Kisumu/COURTESY

NAIROBI, Kenya, Jun 27 – Transport solutions provider CMC Motors Group, has announced plans to strengthen its agricultural offering on the back of increased demand for farm machinery.

As part of the plans, CMC Motors has introduced to this market, the New Holland TT4 economy utility tractors.

Speaking at a launch reception for the firm’s customers in Kisumu, CMC Motors Chief Executive Officer, Mark Johnson attributed the growing demand for mechanized agricultural solutions to increased economic production activities at the county level.

He noted that the growing entry of a largely youthful and professional social class of agri-business entrepreneurs that favour mechanized farming solutions has created a latent demand for tractors and related implements.

“At CMC Motors, we have noted a close to 30% growth on tractor orders placed with us, largely from farmers, building and construction contractors and the public sector particularly county governments’,” Johnson said, adding that, “The New Holland T4 economy utility tractor range redefines the tractor market with its versatility as an all-round workhorse in the farm and beyond.”

The firm’s release of the New Holland TT4 Tractor model, he added, provides a reliable and economical solution for small and large scale farmers. The new TT4 tractor series is built upon the success of the preceding TT range, which was first released by New Holland in 2005 globally.

In Kenya, CMC Motors Divisional Manager, Alexander Makaa, said the firm has sold over 3,000 TT series tractors countrywide in the last ten years and will be hoping to leverage on the brand reliability to double the units sold by the year 2020.

“With such marked success on the New Holland product, at CMC Motors, we have also enhanced our after sales support with dedicated rapid response field service teams and spares centre at all our branches,” Makaa said.

He noted that New Holland Agriculture’s formula for outstanding performance in agricultural and related accessories involves mixing raw power and superior control with the ultimate in customer flexibility. He expressed optimism that the new TT4 tractors, will claim their deserved market position as the natural choice for livestock, arable or related agricultural contracting applications.

The new TT4 range features various upgrades from its predecessor line-up including a revolutionary straight rear axle built to withstand 5-ton compression weight, an NEF turbo engine, constant mesh gearbox with an option of synchromesh and rotary pump with bosh upgraded injector pump.

Locally, New Holland customers will have a choice of four models in the TT4 series including the 80 HP 2WD, 80 HP 4WD, 90 HP 2WD and 90HP 4WD tractors.

The new models offer excellent maneuverability, ergonomic comfort and fuel efficiency; allowing it to be used in a wide range of agricultural and non-agricultural tasks including front-end loader activities, hauling work.

Built with versatility in mind, the TT4 range are simple to operate, easy to maintain and built to go the distance while offering maximum uptime and reduced maintenance cost in haulage, ploughing and rotaring functions.

Sold and serviced by CMC Motors Group in Kenya, New Holland tractors are manufactured by New Holland Agriculture, a brand of CNH Industrial N.V. (NYSE: CNHI /MI: CNHI) a global leader in the capital goods sector with established industrial experience, a wide range of products and a worldwide presence. New Holland Agriculture’s reputation is built on the success of their customers, cash crop producers, livestock farmers, contractors, vineyards, or grounds care professionals. They can count on the widest offering of innovative products and services: a full line of equipment, from tractors to harvesting, material handling equipment, complemented by tailored financial services from a specialist in agriculture. A highly professional global dealer network and New Holland’s commitment to excellence guarantees the ultimate customer experience for every customer.

New Holland Agriculture Middle East and Africa Region Business Manager, Mr. Yasin Seker, confirmed that feedback received from the product users in Kenya has continued to play a key role in New Holland Agriculture’s research and development (R&D) Programmes.

“Kenya is perhaps one of the most important market in Africa for New Holland Agriculture and is constantly providing crucial product improvement feedback to the product development teams. Such feedback to the R&D team plays a key role in the enhancing New Holland Agriculture’s overall commitment to continue innovating and adapting to market demands in support of our local distributors like CMC Motors Group,” Seker said.

The locally available New Holland Agriculture tractor models, he said feature a wide selection of tropicalized features including front axle options allowing customers to enhance their field productivity.

Race is on to turn flying car into reality

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The AeroMobil’s Slovakian creators say it already has orders even if production won’t start until 2020 © AFP / VLADIMIR SIMICEK

Le Bourget, France, Jun 24 – Aeronautics giants are treating the idea of a flying car with caution, as such a project raises more questions than it answers, experts say — it’s a child’s dream, a millionaire’s toy.

But is it really the next big thing in transport?

At this year’s Paris Air Show, you had to search hard to find an aircraft that looked anything like an automobile: but one such model, the AeroMobil, was tucked away under the old Concordes at the Air and Space Museum, just outside the capital.

This strange-looking hybrid, with its bulbous nose and retractable wings, designed by a Slovakian company, is scheduled to go into series production by 2020.

“After you’ve landed at an airport, you transform the plane into a car and take the road to wherever you want,” Simon Bendrey, AeroMobil’s deputy head of engineering, told AFP.

And they have already received a number of orders, he added, despite an asking price of 1.2-1.5 million euros ($1.3-$1.8 million).

While flying cars have starred in films including Chitty Chitty Bang Bang and the Fifth Element, the race to turn such dreams into a reality is being run by dozens of small creative start-ups like AeroMobil.

– Quantum leap –

Among those nearest to take-off is the Dutch outfit PAL-V, which is offering a two-seater gyrocopter and is scheduled to be available by next year — a steal at 300,000 euros.

Czech company Nirvana Systems says it has had dozens of orders for its mini-helicopter, which can also travel on roads, albeit at rather sluggish ground speeds.

Silicon Valley-based company Kitty Hawk says its Flyer will be on sale by the end of the year.

Dutch flying car developer PAL-V is offering a two-seater gyrocopter that will also be able to run on the road © AFP / EMMANUEL DUNAND

And just last week France’s Pegase, a cross between a ultra-light plane and a mini-car, crossed the Channel, the narrow stretch of water between England and France.

Until recently, flying cars “were a cross between a bad car and a bad plane,” said Bruno Sainjon, head of the French aerospace lab ONERA, on the sidelines of the Paris Air Show.

But there has been a quantum leap in design thanks to vast improvements in the power of electric propulsion, linked largely to the rapid advances in drone technology recently.

Today, such engines lift 80-100 kilos (176-220 pounds), Xavier Dutertre, director of the Techoplane project based in Normandy, northern France, told AFP.

“And we’re not far from having the capacity to transport one or two men for about 20 minutes,” he added. “In five to 10 years, that will have become commonplace.”

While driving-flying hybrids may initially be the latest must-have gadgets for the ultra-rich, experts believe that such vehicles could actually be rapidly overtaken, as the industry sets its sights on fly-only solutions further down the line.

– ‘New era for aviation’ –

The real future, said ONERA’s Sainjon is “a system of on-demand air transport, which would clearly be the start of a new era for aviation” — a flying taxi service, in other words.

Flying cars will not be something that just anyone can drive, “because it’s too risky,” Pascal Pincemin, an aerospace specialist with Deloitte, told AFP.

He envisaged digital platforms to manage the new form of traffic, and that appears to be what Uber, the App-based ride-hailing service, has in mind with its “Elevate” project.

The idea appears to be to develop a network of electric, vertical-takeoff aircraft and they are aiming to make their first demonstrations in 2020.

Dubai could be the first off the starting blocks with a new kind of small autonomous electric helicopter scheduled to come into operation later this year.

There is “a real appetite, a real interest”, in this kind of transport in some of the more traffic-congested cities, said Jean Brice Dumont, head of engineering at Airbus Helicopters.

This flight simulator from Dutch firm PAL-V offers a taste of what this kind of flying might be like, but developers also have to factor in the safety implications of this new kind of traffic © AFP / EMMANUEL DUNAND

At the last Geneva motor show, the company presented its own prototype flying car, “Pop Up”, developed in cooperation with a subsidiary of Volkswagen. But Dumont said they were expecting the technology to mature and develop further.

Boeing, so far, has not shown its hand and Deloitte’s Pincemin does not see flying taxis becoming a common mode of transport before 2050. First, he said, the vehicles would have to prove their reliability.

Air transport today has a death rate of 0.2 per million flights, said Patrick Cipriani, director of security at the DGAC, France’s civil aviation directorate.

“Will we be prepared to accept levels like those of light aircraft, which are 100 times less safe?” he asked.


Kenya a leader in data revolution in Africa

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The focus will be on developing the data infrastructure to achieve the Sustainable Development Goals (SDGs), and showing how data partnerships can drive outcomes in different sectors/FILE

NAIROBI, Kenya, Jun 28 – Kenya is a leader in the data revolution in Africa.

The nation has seen exciting innovations in the civil society, private sector and the government, according to the Global Partnership for Sustainable Development (GPSDD).

“Kenya has been a leader in the data revolution for a while now. There are exciting innovations that have been happening in Kenya; in the civil society, private sector and the government,” noted Dr Claire Melamed, the Chief Executive of GPSDD.

The organisation, through ‘Data for Development in Africa’, #AfData17 initiative, seeks to change the perception that data is niche concern, a side-event for statisticians and technical staff by merging the technical and the political.

“We are here to talk about the importance of bringing together the technical and the political and using all of the technical innovations that are happening in such speed into the political sphere,” added Dr Melamed.

The event organised by GPSDD and co-hosted by Kenya and Sierra Leone, held a media round table today to set pace for the discussions that will be taking place in subsequent days.

“We are here to encourage government to ensure that data is used to change people’s lives. As governments, we are co hosting this event because we understand that with responsible use of data, we can stimulate our economies,” said Mohamed Bangura, who is the Minister of Information and Communications, Sierra Leone.

The media round table will be followed by a gathering, in Nairobi, Kenya on June 29-30, which will feature a number of African countries making significant commitments in the fields of agriculture, civil registration, health and data science capacity.

“We don’t want to be engaged in a talk show. We want this initiative to be transformational. Africa is building impressive momentum in the data revolution and is well positioned to fight disease, hunger, poverty, and social exclusion, using data-led development,” affirmed Bangura.

However, Rosemary Okello, who is the Director, Africa Media Hub Strathmore Business School challenged the GPSDD and the governments involved to build capacity to harness the power of data.

“We have to be prepared on how we are going to receive this power in terms of capacity and systems. How are we going to deal with it?” added Okello.

The high level delegation is in Nairobi to host an event that will be highlighting the importance of data in achieving social, economic and political.

The focus will be on developing the data infrastructure to achieve the Sustainable Development Goals (SDGs), and showing how data partnerships can drive outcomes in different sectors.

This event will be co-hosted by the Global Partnership for Sustainable Development Data, the Governments of Kenya and Sierra Leone, and Safaricom, in collaboration with the African Development Bank, the UN Economic Commission for Africa, and the Governments of Ghana, Senegal, and Tanzania.

Day 1 speakers include William Samoei Ruto, Deputy President of the Republic of Kenya; Victor Bockarie Foh, Vice President of the Republic of Sierra Leone and Amadou BA, Minister of Economy, Finance and Planning of the Republic of Senegal.

Day 2 will reflect on the outcomes and commitments of day one and a featured showcase and networking session will explore tools, technologies, and methodologies to drive data for development in Africa.

KBL, AMREF collaborates to transform lives of Kikuyu Constituency residents

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The water project to be managed by Kerwa Water Project Welfare Association (KWPWA) comprises of a 4Km water distribution line, a 225,000-litre rehabilitated water tank, a borehole, a water pump house and a water kiosk/COURTESY

NAIROBI, Kenya, Jun 29 – Kenya Breweries Limited in collaboration with AMREF Health Africa in Kenya, have commissioned Nduma Water Project in Kikuyu Constituency, an initiative aimed at providing clean and safe drinking water to over 20,000 residents of Kikuyu Constituency to a cost of Sh7.2 million.

The water project to be managed by Kerwa Water Project Welfare Association (KWPWA) comprises of a 4Km water distribution line, a 225,000-litre rehabilitated water tank, a borehole, a water pump house and a water kiosk.

Speaking at the inauguration ceremony, Diageo Corporate Relations Director, Dan Mobley said: “As a company, we seek to contribute to the communities by way of implementing innovative projects in the areas of access to clean drinking water, water conservation and management as underpinned by Diageo 2020 Sustainability Blueprint.”

A World Bank study on water revealed that by 2050 over 40% of the global population will live under severe water stress; and as global population increases, so will tensions among different water uses. Today, 18 million Kenyans have no access to water and sanitation services, therefore Nduma Water Project is fundamental in bridging the existing difference.

“We are cognizant of the fact that access to clean water, is a basic human right. As a responsible corporate citizen, passionate about doing its part to respond to this societal need, KBL, through EABL Foundation is committed to invest in water projects within water-stressed communities such as Nduma,” said EABL Corporate Relation Director, Eric Kiniti.

Kikuyu MP, Kimani Ichungwah, keen to debunk the water surplus myth in Kiambu said: “There is a misconception that Kiambu County’s proximity to Nairobi means the County doesn’t have a water problem while in fact, part of the County is classified as an Arid and Semi-Arid Land (ASAL) region with a serious water deficiency concerns,” said Ichungwah.

“This is a project that is directly impacting people’s lives. It is indeed changing people lives in a big way. The residents will not only be able to access clean drinking water, but the water will promote economic activities,” added Ichungwah.

This project is part of a wider “10by10” initiative that aims to develop 10 sustainable, water projects in 10 counties to benefit communities struggling to access water. The program is part of a larger plan, dubbed “Water of Life” under which the Foundation has implemented over 78 community water projects in areas encountering a perennial water shortage across Kenya.

According to a study released in April 2016 by the Kenya National Bureau of Statistics (KNBS) and the Society for International Development (SID), only 35 per cent of Kiambu County’s population use improved sources of water, a situation that exacerbates sanitation-related illnesses. The report further reveals that Kenya spends more than Sh20 billion on treating sanitation-related diseases annually.

OLX new service spurs online trade in pre-owned vehicles

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The champ handles the entire selling process from posting the advert to sourcing for a buyer, negotiating and finally closing the deal/FILE

NAIROBI, Kenya, Jun 29 – Spurred by the rapid growth of vehicle owners subscribing to their new service that offers to sell vehicles on behalf of clients, OLX Kenya says it could roll the service to two other towns in the coming months.

The service dubbed “sell it for me” is only two months old, and uses verified OLX salespeople christened champs to sell second-hand vehicles for clients.

The champs handle the entire selling process, including transfer of vehicle ownership on behalf of a vehicle seller.

“The uptake of the service has been phenomenal. We are not only surprised by the volumes being transacted but are happy that for the first time we have a viable alternative to car sales yards across the county. People have a safe and convenient forum to choose from a variety of vehicles on offer,” said OLX Kenya Country manager Peter Ndiang’ui.

According to the online classifieds platform, 1000 vehicles are listed on OLX daily with the average time it takes to sell being one to two weeks.

Ndiang’ui says that the number of pre-owned vehicle transactions on the site has jumped, promising the possibility of churning increased revenue and creating more jobs through the new channel.

As many as 30,000 vehicles with estimated gross merchandise value of Sh24 billion are listed on the platform every month.

An interested seller wishing to use the service is required to pay a booking fee of Sh2000 to have an OLX champ matched up with them. The OLX champ then links up with the seller and agree on a selling price within which the champ will get his commission.

The champ handles the entire selling process from posting the advert to sourcing for a buyer, negotiating and finally closing the deal. Money is sent directly to OLX and once the buyer confirms receipt of the vehicle, OLX releases the money to a seller. The escrow service that allows direct deposits to OLX, now guarantees safety for the buyer.

The online pre-owned car market in Kenya has thrived over the past few years, driven by growing disposable incomes amongst the middle class and increase in penetration of internet and mobile phones enabling ease of transactions.

The potential to grow is huge, as in developed economies three pre-owned cars are sold for every new car sale. Vehicle ownership cycles too are getting shorter at three to five years from six to eight years earlier spurring more transactions.

According to industry estimates, vehicle sales business is worth Sh200 billion annually. Kenya’s per capita car ownership is three cars for every 100 people, far way below the average in most developed countries like US, UK and Germany.

Kenya imports 80,000 used vehicles every year, mostly from Japan, which is the major supplier, UK, Dubai and South Africa.

The rapid pace at which pre-owned vehicle transactions are taking place online makes automobile the favourite to emerge as the strongest and most liquid category for OLX.

Ndiang’ui said that the service is yet another addition to their platform that will make it safer and more convenient for car traders on OLX and involvement in the payment process will increase buyers’ trust when making a car purchase. In turn, this will increase the number of buyers looking for cars to their platform.

“With over 100,000 cars traded annually, at least 40 per cent find their way on OLX. It is for this reason we are placing our focus on vehicles first, which is a very key category for our business. As the “Sell It For Me” name suggests, the OLX champs will handle the entire selling process for both the buyer and the seller coupled with a seamless safe payment method.

Introduction of these two items, direct payments to OLX and OLX champs to handle selling transactions, are a definite value addition to our users who are always seeking safety and convenience when trading online. It is also important to note that those wishing to continue with hands off buying and selling on our platform are still free to do so,” said Ndiang’ui.

The service that has been rolled out in Nairobi only, has currently hired 20 verified and vetted OLX champs with vehicle experience and working directly with OLX to sell vehicles on the seller’s behalf with a verified badge on every car they post on OLX.

“We are working with car dealers who have vast selling experience and by working through OLX, they get a commission for every car deal they close on behalf of an interested seller. The verified OLX champs are also entitled to our paid adverts for more visibility as well as a verified distinctive badge that will enable them get buyers even faster. We are looking at scaling this to other major counties and are currently focusing on Nairobi only,” added Ndiang’ui.

The Sell It For Me service was first launched in OLX Nigeria where it recorded success and is now being rolled out in Kenya, to be later scaled to other sub sub-Saharan countries. Currently, OLX is in 45 countries globally.

KCB Foundation extends funding to 2,500 young farmers in Bungoma

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KCB Foundation, the social investment arm of KCB Group issued cheques worth Sh10.1million to the 2,438 beneficiaries under the lender’s 2jiajiri job creation flagship project/COURTESY

NAIROBI, Kenya, Jun 29 – Close to 2,500 youths in Bungoma have received funding from the KCB Foundation to set up farming businesses, effectively giving them a lifeline to generate incomes.

On Thursday, the KCB Foundation, the social investment arm of KCB Group issued cheques worth Sh10.1million to the 2,438 beneficiaries under the lender’s 2jiajiri job creation flagship project.

The program seeks to empower 10,000 youth every year to start small businesses that will employ at least 5 people each. This translates to 50,000 jobs for young people directly created through this programme by the end of the 5 years.

The funding, an interest free loan comes after the youths successfully completed training that is expected to enable them venture into Soya Beans farming. The youths will not need any collateral and no prior experience in the business is needed. However, everyone must undergo the training.

The agribusiness training by the KCB Foundation, in partnership with the Railway Training Institute (RTI) International has a broad goal of improving income and employment opportunities for the youth aged 18-35 years who have not completed secondary school education.

Speaking during the event, KCB Foundation Executive Director Jane Mwangi said: “We are catalyzing economic empowerment by skilling and funding the youths while linking them with market opportunities.”

KCB Foundation has already signed an agreement with edible oils maker Bidco to buy Soya beans from the young farmers hence assuring them on the market of their produce.

“These youths under the programme had never had an experience in getting an agribusiness bank loan hence the reason why KCB Foundation takes them through the training in business planning and access to finance. The youth are then helped to package the application for financing which results to loan approval,” said Ms Mwangi.

The loans are only given for one cycle where during the period, they are supported to keep financial and productivity records which later prepares them for commercial financing during the next cycle.

“Kenya has the largest generation of young people and I place great hope in their power to shape our future. We have been talking about creating jobs for the youth; let us be the ones creating those jobs, one at a time,” Ms. Mwangi added.

The total out of school beneficiaries in agribusiness under this KCB Foundation/ RTI partnership are 3,968 who include 1530 in Kericho and 2,438 Bungoma.

KCB Foundation’s 2jiajiri flagship programme is among other keys initiatives which includes ‘Mifugo ni Mali’ which supports livestock farmers and Scholarship which has so far supported 120 disabled students for their secondary school education.

KCB is seeking more partnerships with the Government, Development Agencies and the Private Sector players to help reach the potential of the 2jiajiri programme to train 100,000 young people every year.

Dubai-based investment firm acquires Java House, Africa expansion next

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The Abraaj Group, a Dubai based private equity investment firm has announced the acquisition of Java House restaurant chain from Emerging Capital Partners (ECP) for an undisclosed amount. Image courtesy

NAIROBI, Kenya, Jul 3 – The Abraaj Group, a Dubai-based private equity investment firm, has announced the acquisition of Java House restaurant chain from Emerging Capital Partners (ECP) for an undisclosed amount.

Mustafa Abdel-Wadood, Managing Partner and Global Head of Private Equity at The Abraaj Group commenting on the transaction noted that “The landmark transaction is a compelling opportunity to build on Java House’s success story across sub-Saharan Africa, to create a true regional champion.”

The move, he said, is inspired by Africa’s rapidly expanding middle class, sustained population growth and increasing urbanisation which is creating compelling investment opportunities in multiple sectors.

“We believe Java House is ideally positioned to benefit from these trends,” he said.

According to Bryce Fort, a Founding Partner of ECP and head of the pan-African firm, Java House moved from just one city and 13 locations to spread its wings across East Africa to 3 countries and 60 sites today.

“In partnership with Java’s founder Kevin Ashley and a talented management team, we have taken the business from one city and just 13 locations when we originally identified the deal and scaled it across East Africa to 3 countries and 60 sites today,” noted Mr Fort.

Ken Kuguru, the Chief Executive Officer (CEO) of Java House expressed optimism on the new partnership.

“As Java House aims to accelerate into its next phase of growth, we were seeking a partner that has the scale, platform and sector expertise to enable us to achieve our aspirations. The Abraaj Group is that partner of choice and we look forward to working closely with their team to extend our market leadership position across the continent,” noted Kuguru, CEO of Java House. 

Founded in 1999, Java House has 60 outlets in Kenya, Uganda and Rwanda.

In 2012, Java House founder Kevin Ashley sold a 90 percent stake to Africa-focused ECP for an undisclosed amount. Ashley will continue to hold 10 percent stake in the coffee chain.

Java House currently serves over 320,000 guests per month and has a workforce of 2000 people.

Freshfields Bruckhaus Deringer LLP and Bowmans Kenya acted as legal advisors, while PwC acted as financial and tax advisors to Abraaj on the transaction.

The transaction will close once customary conditions and regulatory approvals are obtained.

KCB poised for stronger and sustainable growth, rating agency says

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KCB Group CEO and MD, Joshua Oigara, said the affirmed rating reflected the Bank’s continued pursuit for a sustainable business model and excellent customer experience/FILE

NAIROBI, Kenya, Jul 3 – KCB Bank Kenya is poised to weather an increasingly challenging environment, riding an established domestic market position, strong capitalisation, sound liquidity position and support from its shareholders, Global Credit Rating Co. (GCR) has said.

In its latest assessment of KCB Bank Kenya, the South African based agency has affirmed the lender’s long-term and short-term national scale ratings of AA(KE) and A1+(KE) respectively; with the outlook accorded as Stable—currently the highest for a Kenyan bank accorded by GCR.

The rating agency said on Friday that the Bank is well structured, governed and capitalized to play a stronger role in East Africa’s economic transformation, citing KCB’s resilient earnings performance.

The Bank has consistently retained this rating since it was initially assigned in June 2013.

KCB Group CEO and MD, Joshua Oigara, said the affirmed rating reflected the Bank’s continued pursuit for a sustainable business model and excellent customer experience, as it readies itself to deepen its catalytic role to drive expansion in the East African region and beyond. “This is a signal that the operational excellence that we have been instituting at the bank as well as robust structures and systems we have in place are paying off. The banking sector continues to undergo numerous challenges and as a Bank, our continuous innovation and customer centric orientation ensures that we remain focused on acting as an enabler for progress to our customers. That is what drives us to excellence,” said Oigara.

GCR said KCB’s rating could improve further citing: “Improved asset quality trends driven by low credit losses and sound underwriting, and steady operating (capital, liquidity and earnings) metrics given the increasingly challenging operating environment, would further strengthen KCB’s financial profile.”

The Rating Agency notes that the fact that the Bank is “predominantly funded by customer deposits, drawing on its ability to attract deposits, supported by an extensive branch network and alternative delivery channels, to fund its operations” was a big plus in the strong rating. KCB reported a pre-tax profit of Sh28.5 billion for Full Year 2016 supported by loan book expansion, reduced funding costs, growth in fee and commission income, and gains from the sale of available-for-sale securities. The bank maintained an average net liquid asset to customer deposits ratio of 32.1 per cent during Full Year 2016 which was well above the minimum regulatory requirement of 20 per cent.

Oigara said the Bank has over the last three years followed a strategy which departs from the traditional bricks and mortar banking channels to non-branch channels, particularly digital platforms, including agent banking, internet and mobile banking, KCB-MPESA and cards, given customers’ demand for convenient and cost-effective service. “We have embraced the future since we appreciate that in this day and age, we have to be alive to the increasing demand for world class services from our clients. That is the strategy that has pushed us ahead of the curve,” said Oigara.

The Bank’s strategy focuses on growing digital banking, enhancing customer experience, achieving stronger international business performance, growing non-interest revenue, implementing robust and best in class information technology and network spread.

“We also continue to manage emerging risks in a difficult environment, championing sustainable business priorities as well as forming strategic partnerships to deliver mutually beneficial products and services for customers,” Oigara said.

Firms in pact to jointly bid for industrial, electrical projects

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FEP Holdings CEO Maurice Korir says that with the Ferri Group partnership, the company is projecting additional yearly revenues for Fountain Technologies of up to $10 million by 2020/COURTESY

NAIROBI, Kenya, Jul 3 – Fountain Technologies Limited has entered into a strategic business agreement with Ferri Group, which will see the two companies jointly bid and tender for industrial and electrical projects.

The partnership will be done under a profit share agreement on a project by project basis for any amounts up to $100 million, equivalent to Sh10.3 billion per transaction.

It also gives Ferri Group the option of acquiring minority equity stake of about 30 per cent in Fountain Technologies Limited, a subsidiary of FEP Holdings, within two years time.

FEP Holdings CEO Maurice Korir says that with the Ferri Group partnership, the company is projecting additional yearly revenues for Fountain Technologies of up to $10 million by 2020.

“Through this alliance, we intend to capitalise on existing sales networks and marketing for the distribution of Ferri Group and FTL product lines, as well as increase access to International lines of credit with reputable, global financial services providers,” said Korir.

The CEO of Ferri Group, Roberto Ferri said that the agreement was designed to delight clients through support in improved product and service offering, financing and building human capital in various industrial and energy solutions.

He added that Fountain Technologies would help to reinforce Ferri Group’s brand reliability through consistent, innovative and differentiated services in all African countries where it exists.

The project has been deemed as a win-win strategy for both firms as Fountain Technologies Limited will acquire both the core and strategic capabilities required to compete effectively within the African energy and power infrastructure sector whilst Luxembourg-based company will be on a solid path to initially acquiring new clients and subsequently deepening their presence in the sector.

Current Works

Fountain Technologies is presently implementing energy and telecoms infrastructure projects across the region worth over Sh2 billion.

These include Rural Electrification Authority contracts under which it was contracted to extend electricity supply to 591 public facilities and 35,460 households in 16 countries under the BADEA project. The remaining 80 per cent of the project was awarded to international companies.

The company has also secured tower strengthening projects in Tanzania worth Sh70 million and a Sh92 million project for construction of a diesel power station in Kakuma town.

Going forward, Korir revealed that Fountain Technologies Limited’s next big frontier is renewable energy in off-grid areas.


Govt committed to help farmers improve quality of beef and dairy – Uhuru

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President Uhuru Kenyatta interacts with the 40 youths who graduated with a certificate in Artificial Insemination (AI) from Ahiti Ndomba./PSCU

NAIROBI, Kenya, Jul 3 – President Uhuru Kenyatta has said the Government is committed to help farmers improve the quality of beef and dairy produce.

The President said the Government has set up many bull centres across the country and is training more youth to provide artificial insemination services.

He spoke when 40 youth who graduated with a certificate in AI from Ahiti Ndomba, paid him a courtesy call at State House, Nairobi.

The students, who were accompanied by their lecturers and officials from the Kenya Animal Genetic Resource Centre (KAGRC), were later equipped with AI kits to set them up in business. The President had promised them the kits earlier in the year during one of his tours in Kirinyaga County.

The 40 are the first batch of 300 youth the Government is targeting to empower to give AI service to farmers across the country.

“We want to raise the quality of our livestock so that our famers can have better produce of beef and milk,” said President Kenyatta.

“We will encourage governors to work through and alongside you. If the service is subsidised, more farmers will benefit,” said the President.

He also instructed Public Service, Youth and Gender Affairs Cabinet Secretary to enable the 40 youth to access Youth Fund loans to buy motorbikes to ease their mobility.

She said the youth, from 37 counties, were benefitting from kits packed with enough nitrogen and semen sufficient to inseminate 100 heifers.

Agriculture Cabinet Secretary Willy Bett also attended the meeting.

China’s Wanda agrees to mammoth asset sale to slash debt

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Wanda, headed by tycoon Wang Jianlin, has spent billions on a range of US entertainment properties but is being probed by Chinese authorities over potentially risky loans/AFP

SHANGHAI, China, Jul 10 – Chinese conglomerate Wanda said Monday it will sell dozens of hotels and other projects to developer Sunac China Holdings for $9.3 billion to slash debt, two weeks after acknowledging it was being probed following heavy overseas investments.

It is China’s largest-ever property deal, according to Bloomberg News, and will see Sunac buy 76 hotels outright and take a 91 percent stake in 13 other “cultural and tourism projects” within China, the companies said.

Wanda, headed by one of China’s richest men, Wang Jianlin, was among the more acquisitive players in a flood of Chinese money overseas that raised concerns in Beijing over “irrational” investments.

Wang told financial magazine Caixin the deal would cause debt at Wanda’s commercial property arm to “drop greatly”, without giving specifics.

“The funds returned from this will all be used to pay back loans. Wanda Commercial plans to pay back the majority of bank loans within this year,” he was quoted saying.

The deal highlights a quandary faced by Chinese corporations that bet big on overseas acquisitions but now face difficulty paying off debts.

Beijing began last year to roll out restrictions to curb overseas capital flight, which analysts said raises funding costs for companies like Wanda because lending to them is now viewed as more risky.

Wanda admitted last month that China’s banking regulator was looking into potentially risky loans it held.

Wanda said other domestic companies that invested aggressively overseas also were being scrutinised, including Rossoneri Sport Investment Lux, a consortium that recently purchased Italian football club AC Milan, Club Med’s owner Fosun Group, and HNA Group.

Running out of options

The deal indicates that “Wanda is running out of options to raise funds through normal financing channels,” said Ivan Han, Shanghai-based analyst with financial information provider Morning Whistle.

“Financial institutions don’t really want to keep lending money to firms that are targeted by regulatory scrutiny.”

“It doesn’t mean their businesses are in trouble. They are just adjusting their financing chains.”

But China is likely to see more such deals as companies are forced to pay the piper for rapid expansion, said Michael Every, senior Asia-Pacific strategist for Rabobank.

“That is for sure. Remember Japan in the 1980s? Expect worse for China,” he said, referring to Japan’s asset bubble.

In recent years, Beijing encouraged companies to invest overseas to find new markets, access technology and increase China Inc’s influence.

But they have reversed course as concerns grow over capital flight, a weakened Chinese currency, and potentially unsound acquisitions.

Authorities also are moving aggressively to corral alarming levels of debt and risky lending amid warnings of a potential financial contagion in the world’s second-largest economy.

Wanda, which diversified from commercial property into entertainment, theme parks and sports, was at the forefront of the overseas push, spending billions to acquire companies like US-based cinema chain AMC Theatres and Hollywood studio Legendary Entertainment.

Wang told Caixin that Wanda would accelerate a push to increase its focus on film, sports, tourism, internet, finance and other business, at the expense of property development.

Monday’s announcement marks the latest aggressive move by fast-growing Sunac, which is run by billionaire Sun Hongbin and since last year has purchased dozens of property projects across China.

In January it came to the rescue of cash-strapped Chinese tech firm LeEco, which has admitted expanding too rapidly, with a $2.2 billion investment lifeline.

Hong Kong-listed Sunac suspended its shares ahead of Monday’s announcement, but Wanda Hotel Development closed nearly 47 percent higher at HK$0.85, having skyrocketed to as high as HK$1.48 earlier in the day.

 

Savannah Cement and Karatina University sign partnership agreement

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Savannah Cement Managing Director, Mr. Ronald Ndegwa (left) and Karatina University Vice Chancellor, Prof. Mucai Muchiri exchanging documents at the signing of a memorandum of understanding between the two organisations/COURTESY

NAIROBI, Kenya, Jul 12 – Local cement manufacturer Savannah Cement has expanded its academic support ventures scope, following the signing of a collaborative pact with Karatina University.

The two institutions will collaborate in areas of mutual interest including academic research and student placements within the Savannah Cement network. The firm already holds a similar agreement with Kenyatta University.

Speaking at the MoU signing ceremony at the University’s main campus in Kagochi, near Karatina town, Nyeri County, Savannah Cement Managing Director, Ronald Ndegwa said the firm would continue pursuing and forging such partnerships as part of its corporate values.

The signing of the collaborative agreement, he said, is geared at enhancing the quality of students joining the labour market by providing practical skills development opportunities at Savannah Cement.

Flanked by Karatina University Vice Chancellor, Prof Mucai Muchiri, the Savannah Cement MD acknowledged the crucial role that local corporates and academic institutions can jointly play to accelerate national development.

“At Savannah Cement, we have allocated a significant budget to support our human resource development programmes including such partnerships with local academic institutions,” Ndegwa said, adding that, “Such partnerships are part of our commitment to explore shared prosperity opportunities in the society.”

On his part, Karatina University Vice Chancellor Prof Muchiri said the partnership with Savannah Cement will play a key role in helping the university achieve its institutional objectives.

The university he said endeavours to build strong partnerships with like-minded institutions such as Savannah Cement, through resource mobilization, research activities and knowledge transfer.

As part of the collaboration, the two institutions will jointly explore opportunities in building and construction focusing on market research, informatics and business management industrial placements.

“The Commission of University Education requires that all graduates must undertake industrial attachments to enhance their practical skills. In this regard Savannah Cement will support and promote our student work induction, attachment and internships to enhance the quality of Karatina University graduates,” Prof Muchiri said.

Karatina University, Prof Muchiri said is currently focusing on a research and innovation agenda. “As a university, we intend to increase the quantity, quality and relevance of our research agenda with the view to creating innovations and inventions that will transform the country into a knowledge-based economy,” he said.

Established in 2007 as Mount Kenya Campus of Moi University and once a Tea Training Institute,
Karatina University has five Academic Schools; Agriculture & Biotechnology; Business; Education & Social Sciences; Natural Resources & Environmental Studies; Pure & Applied Sciences.

To ensure quality learning, the University recently completed the construction of 18 spacious classrooms to meet the high number of students that have joined the university this year.

The construction of an ultra-modern resource centre and a 750-bed capacity students’ hostel complex are some of the major infrastructural development projects currently ongoing with plans to break ground for the construction of a modern library, now at an advanced stage.

Disneyland China falls a-fowl of huge turkey leg demand

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Women wearing Mickey Mouse ears last year at China’s Shanghai Disney Resort where turkey legs slathered in hoisin sauce have become a surprise favorite menu item © AFP / JOHANNES EISELE

Los Angeles, United States, Jul 12 – Over nearly a century Disney has exported US culture across the globe, but the company was astonished to find one slice of Americana wildly popular in China — the turkey leg.

The entertainment giant opened its $5.5 billion theme park in Shanghai in June last year, expecting to shift mainly bok choy, Mickey Pork Buns and Minnie Red Bean Buns to hungry customers.

“If you go to Disneyland or Disney World, we sell gigantic turkey legs — they’re like the size of my arm,” Bob Iger, chairman and CEO of the Walt Disney Company, told reporters on Wednesday.

“And when I heard we were putting them on the menu in Shanghai I thought our group was crazy. Why are we selling turkey legs in China?”

Iger was quickly proved wrong, however. Glazed in a special Disney-recipe hoisin sauce, thousands of the turkey legs began selling every day.

“We were there a few weeks ago for the anniversary and we sold 4,500 in one day. We couldn’t buy enough of them,” Iger said at a panel for the international press in the company’s Burbank, California, studio lot.

Demand for the juicy snack quickly grew to 4,000 units a day in Shanghai alone — more than Disney’s Polish supplier could manage — and buyers were sent to track down more of the poultry legs in South America.

“That surprised us, and there were other things about food that surprised us — not bad, by the way, just things that we had to adjust to,” said Iger.

Incorrect rumors that the turkey legs sold at its theme parks are actually emu meat have circulated online for years, boosted most recently by March 9 segment on TBS’s “Conan” talk show.

In fact, they look bigger than normal turkey legs simply because they are from the male and not the female Americans are used to seeing in their traditional Thanksgiving meals.

– Culturally aware –

Shanghai Disneyland — Disney’s sixth theme park and third in Asia — pulled in nearly a million visitors within its first month of operation.

From the traditional peony flower on the castle to murals that replace the animals of the Chinese zodiac with Disney characters, the company is aiming to be culturally aware.

Shanghai received an early introduction to Disney when the animated film “Snow White and the Seven Dwarfs” showed in the city’s cinemas in 1938.

In the 1980s, classic Disney cartoons aired on Chinese state television, while more recently, hit movies like “Zootopia” have introduced new characters, which Shanghai Disneyland features in its parade.

“Zootopia,” in particular, is cited as an example of China embracing Hollywood after it became Disney’s most successful animation ever in the world’s second largest box office, scooping $236 million.

Sean Bailey, the president of Walt Disney Studios Motion Picture Production, said the company was currently scouring China to cast actors for “Mulan,” a live-action version of its 1998 animated hit based on the Chinese legend of Hua Mulan.

“Many of us have been spending a great deal of time in China for a number of reasons, including the opening of the park in Shanghai. So ‘Mulan’ is something we’ve been eyeing for a long time,” he said.

American Airlines ends codeshare deals with Qatar, Etihad

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American Airlines planes are viewed at Philadelphia International Airport in July 2017 © AFP/File / Daniel SLIM

New York, United States, Jul 13 – American Airlines said Wednesday it is ending its codeshare relationships with Qatar Airways and Etihad Airways as part of its push against government subsidies of Middle Eastern carriers.

American notified Doha-based Qatar Airways and Abu Dhabi-based Etihad of its decision on June 29 to end the “codeshare” partnership — the sharing of a flight by two carriers.

Maintaining the program “no longer (makes) sense for us,” an American Airlines spokesman said.

“This decision has no material financial impact on American and is an extension of our stance against the illegal subsidies that these carriers receive from their governments.”

Qatar Airways said in June it wanted to buy as much as a 10 percent stake in American Airlines, which caught the US carrier by surprise.

Foreign policy experts viewed the move as an attempt by Qatar to garner foreign support amid a diplomatic clash between Qatar and four neighboring states, including Saudi Arabia.

American — along with fellow US carriers Delta Air Lines and United Airlines — has called for the White House to crack down on an alleged $50 billion in state subsidies to Middle East carriers. The US companies say the home-country financial backing allow the airlines to illegally compete in the US market.

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