The Launch of Polypropylene Production

In a recent announcement, it was confirmed that Dangote has commenced operations at his polypropylene plant, a facility with a staggering capacity of 830,000 metric tonnes per year. This marks a significant milestone in Dangote’s strategy to meet Nigeria’s growing demand for polypropylene—a versatile plastic used in a wide range of applications, from packaging to automotive components.

READ ALSO: Aliko Dangote: Lessons From The Wealthiest Blackman

According to a report by S&P Global, polypropylene production has officially begun, with the material already being distributed in 25 kg bags. Market analysts have taken note of the development, suggesting that it has the potential to disrupt the domestic market, which has traditionally been dominated by imports, particularly from the Middle East, and centred around Indorama Eleme’s refinery in Port Harcourt.

Market Impact and Expansion Plans

The introduction of Dangote’s polypropylene plant is poised to transform the local manufacturing landscape. Aliko Dangote has expressed confidence that the new facility will meet Nigeria’s annual polypropylene needs, estimated at approximately 250,000 metric tonnes. Comprising two production units with capacities of 500,000 mt/year and 330,000 mt/year, this facility is set to become the largest of its kind in Africa once fully operational.

Devakumar Edwin, Group Executive Director for Strategy, Capital Projects & Portfolio Development at Dangote Industries Limited, underscored the significance of this initiative, stating, “The facility will stimulate significant investment in downstream industries.” With the capability to produce 77 different types of polypropylene, the plant’s applications span multiple sectors, enhancing Nigeria’s industrial capacity.

Addressing Challenges in Raw Material Supply

A longstanding challenge for Nigerian manufacturers has been their reliance on imported raw materials for polypropylene production. Foreign exchange constraints have further compounded this issue, limiting manufacturers’ ability to secure essential resources. The Dangote Petrochemical plant aims to alleviate this problem significantly.

Edwin noted, “Currently, raw materials for polypropylene are imported into the country. There is no foreign exchange for manufacturers to import raw materials. The Dangote Petrochemical plant is going to address this challenge.”
By producing polypropylene domestically, the new facility represents a crucial step towards self-sufficiency and reduced dependency on imports. This move is expected to stabilise prices in the domestic market while encouraging local innovations in the petrochemical sector.

As operations ramp up at the polypropylene plant, the implications for Nigeria’s economy and industrial sector are substantial. The facility is set to create jobs, attract local investment, and reduce reliance on imported petrochemicals, aligning with Dangote’s broader vision of a more economically independent Nigeria.

The launch of this production facility reflects a wider trend of industrialisation across Africa, where local manufacturing is increasingly seen as a key driver of economic growth. With Aliko Dangote leading the charge, Nigeria’s petrochemical sector is poised for a transformative shift, strengthening Africa’s industrial position on the global stage. As the plant scales up production, it will play a crucial role in shaping the future of local manufacturing and economic development.

The post Aliko Dangote Redefining Africa’s Polypropylene Market appeared first on African Leadership Magazine.

Companies such as Beta Glass, Consol Glass, and Nampak Glass are among the leading players, each contributing to the sector’s rapid development. These companies cater to a growing need for durable and sustainable packaging solutions, particularly in industries like beverages, pharmaceuticals, and cosmetics. Beta Glass, a member of the Frigoglass Group, holds a major share of Nigeria’s glass packaging market, operating large-scale production facilities in Agbara, Ogun State, and Ughelli, Delta State. Meanwhile, Consol Glass, one of Africa’s largest glass manufacturers, has expanded its operations across South Africa and beyond, catering to a wide range of international markets. Nampak Glass, another significant player, continues to develop innovative packaging solutions while navigating industry challenges.

READ ALSO: The Entrepreneurial Pulse of Africa’s Future

During a recent media tour, Beta Glass CEO Alexander Gendis highlighted the company’s ambitious growth plans, particularly its expansion into Francophone Africa. “Our exports have seen significant improvement, rising from six per cent to eight per cent of our turnover year on year,” he stated. This strategic focus on neighbouring markets underscores Beta Glass’ commitment to strengthening its regional presence while also eyeing global expansion.

The manufacturing process for glass products follows meticulous steps to ensure quality and precision. A glass container can takes approximately 38 hours to produce, progressing through stages from batching and melting to forming and packaging. For majority of these glass companies, the commitment to sustainability is evident in the use of 50% recycled glass in production, significantly reducing energy consumption and environmental impact.

These advancements come with challenges, particularly in sourcing raw materials. While local sourcing has been ramped-up, securing sand and limestone from various states—the reliance on imported soda ash remains a hurdle. Along with foreign exchange and economic volatility, these companies continue to grapple with constraints that impact procurement costs.

Navigating Challenges in the Glass Industry

As Africa’s glass industry strives to enhance local sourcing, global trade volatility and currency fluctuations pose ongoing challenges. To mitigate these risks, companies are strengthening relationships with local suppliers and investing heavily in production capacity. Beta Glass, for instance, has committed billions to expansion over the past five years, positioning itself to tackle these issues more effectively.

Additionally, the company prioritises workplace safety while making meaningful contributions to the local community. Initiatives aimed at improving infrastructure and providing electricity to nearby areas reflect its broader commitment to sustainable development.

A Bright Future for Africa’s Glass Industry

The future of Africa’s glass industry looks promising, with strong growth prospects driven by rising demand for packaging solutions across various sectors, including beverages and consumer goods. As manufacturers like Beta Glass continue to invest in sustainability, local sourcing, and community development, the continent stands to benefit economically and socially.

With global markets becoming increasingly interconnected, African glass manufacturers have significant potential to capture a larger share of international demand. By prioritising innovation and ecological responsibility, the industry can solidify Africa’s position in the global glass market, empowering local economies and contributing to sustainable development.

The post The African Glass Market Boom appeared first on African Leadership Magazine.

For decades, Egypt has been synonymous with diplomacy in the Middle East. Its role in the 1978 Camp David Accords remains a landmark achievement in global peacemaking, resulting in the first peace treaty between Israel and an Arab state. This milestone cemented Egypt as a trusted intermediary between adversaries. Today, Cairo continues to lead in mediation, deftly navigating disputes in Gaza and broader regional conflicts.

READ ALSO: Middle East Conflicts and Global Oil Prices: Analysing Recent Market Trends

Recent Mediation Efforts

2024 Gaza Ceasefire

Amid renewed hostilities in Gaza, Egypt has reprised its role as a mediator. Hosting multiple rounds of ceasefire negotiations, it successfully brokered temporary truces, facilitated humanitarian aid corridors, and mitigated civilian casualties. Egypt’s geographical proximity and enduring relationships with both Israel and Palestinian factions uniquely position it for this role.

2021 Gaza Ceasefire

In 2021, Egypt’s diplomacy ended an 11-day conflict between Israel and Hamas. By leveraging ties with the United States and Palestinian factions, Egypt restored temporary calm. Though such ceasefires are often fragile, these interventions illustrate Egypt’s capacity to provide immediate relief in volatile situations.

The agreements enabled the delivery of humanitarian aid into Gaza, reopened communication channels between Israel and Palestinian factions, and temporarily stabilised the region, preventing further casualties and creating a brief window for peace.

Geography and Diplomacy Intersect

Straddling the crossroads of Africa and the Middle East, Egypt’s geographical location enhances its influence in regional conflicts. The Suez Canal, a vital global trade route, along with its proximity to Gaza, Libya, and Sudan, grants Egypt strategic importance and a responsibility to uphold regional stability.

Egypt’s success as a mediator also stems from its partnerships with global powers. Collaborations with the United States, European Union, and the United Nations amplify its diplomatic efforts. These alliances provide financial and logistical support while enhancing Egypt’s credibility on the international stage.

For example, during the ongoing Middle East crisis, Egypt has worked closely with international organisations to implement ceasefires and monitor violations. Such partnerships underscore Egypt’s pivotal role in the global quest for peace in the region.

Lessons from Past Successes

Since the early 2000s, Egypt has persistently mediated between Palestinian factions Fatah and Hamas. The 2011 Cairo Agreement, among other initiatives, demonstrated its commitment to unifying Palestinian leadership. Although full reconciliation remains elusive, Egypt’s interventions have fostered periods of cooperation, sustaining hope for a unified Palestinian state.

During the 2006 Israel-Hezbollah war, Egypt facilitated humanitarian aid corridors and lobbied for a unified Arab League response, highlighting its ability to navigate complex alliances.

Beyond the Middle East, Egypt’s mediation in Sudan, particularly during the Darfur conflict, exemplifies its broader peacebuilding role in Africa. Hosting peace talks in Cairo, Egypt bolstered the African Union’s stabilisation efforts, showcasing its versatility as a mediator.

A Tightrope Walk

Navigating Middle Eastern diplomacy is akin to threading a needle in a sandstorm. Egypt must carefully manage relationships with conflicting parties, such as Hamas and Israel, while maintaining its neutrality. Balancing international expectations with regional priorities adds further complexity.

Despite these challenges, Egypt has achieved significant milestones in recent years. By fostering dialogue, maintaining communication channels, and providing humanitarian support, it has demonstrated that even modest diplomatic victories can yield profound ripple effects.

As conflicts in the Middle East persist, Egypt’s mediatory role is expected to expand. Analysts predict that Cairo will continue to lead peace initiatives, leveraging its influence to promote stability across the region. With growing global recognition of its efforts, Egypt is poised to strengthen its status as a regional powerhouse and a model of diplomacy in an increasingly divided world.

In an era where conflict often overshadows dialogue, Egypt’s role as a “Broker of Peace” serves as a beacon of hope. By mediating with skill and empathy, Egypt has shown that even in the harshest deserts, seeds of peace can take root.

The post Egypt: Broker of Peace in the Middle East appeared first on African Leadership Magazine.

The International Energy Agency (IEA) reports that emergency reserves, totalling 4 billion barrels, provide a buffer against immediate supply disruptions. Still, prolonged conflicts risk inflating transport and insurance costs and strain global logistics.

READ ALSO: Impact of Geopolitical Tensions in the Middle East on Africa’s Oil Prices

Supply and Demand Dynamics in 2024

Global oil supply is forecast to reach 103.5 million barrels per day (mb/d) in 2024. This growth is predominantly driven by non-OPEC+ nations such as the United States, Brazil, and Canada, whose combined output overshadows the Organisation of the Petroleum Exporting Countries (OPEC+) production cuts of 2.2 mb/d.

Demand growth, meanwhile, is expected to slow to approximately 1.1 mb/d. China remains a key consumer, bolstered by its expanding petrochemical sector. Conversely, advanced economies are experiencing subdued growth due to increasing energy efficiency measures and the transition to electric vehicles. This trend suggests a peak in global oil demand by the end of this decade.

The Economic Implications of Price Volatility

Oil prices are projected to stabilise at $65–£75 per barrel in 2024, assuming no major geopolitical shocks. This reflects a delicate equilibrium between rising production and moderated demand. Nonetheless, an extended conflict in the Middle East could drive prices higher, potentially reducing global GDP growth by 0.4 percentage points, as projected by Fitch Ratings.

The diversification of oil production has also complicated OPEC’s role as a price stabiliser. With the United States ramping up production to 13.3 mb/d, market dynamics are increasingly influenced by non-OPEC actors. This has led some experts to predict a market share war, with Saudi Arabia considering strategies to flood the market to maintain dominance.

Resilience in Market Responses

Despite the volatility, markets have exhibited resilience despite geopolitical uncertainties. For instance, the price shocks seen during the September 2019 attacks on Saudi Arabia’s Abqaiq facility were short-lived, largely due to rapid recovery efforts and efficient supply chain management.

The intersection of Middle Eastern conflicts and global oil markets continues to challenge policymakers and investors alike. While the region’s geopolitical tensions remain a critical factor, diversification of supply sources and technological advancements have mitigated the immediate impacts of disruptions.

Nonetheless, as the world transitions towards sustainable energy and demand peaks within the decade, the oil market must adapt to a future less reliant on fossil fuels. Vigilance and strategic planning will be crucial in navigating this evolving landscape, ensuring energy security while promoting economic stability.

The post Middle East Conflicts and Global Oil Prices: Analysing Recent Market Trends appeared first on African Leadership Magazine.

The conflict in Gaza has sparked a chain reaction of tensions across various fronts, potentially destabilizing the entire Middle East further. From escalating confrontations in Lebanon’s south to Houthi attacks in the Red Sea, and growing friction between Iran and Pakistan, along with Sudan’s intensifying conflict and Jordan’s struggles with drug smugglers in Syria, the security landscape is fraught with challenges. Attacks on US forces in Iraq and Syria, coupled with simmering sectarian tensions, underscore the gravity of the situation, signaling the potential for a wider conflict with repercussions beyond the region.

The ongoing Hamas-Israel conflict presents a delicate scenario for regional stability. While global attention remains fixated on this conflict, it’s equally vital to recognize its evolving implications. Hamas appears to seek a public relations victory rather than a military one, setting the stage for complex alliances and rivalries that could escalate into a broader confrontation involving Iran. Iran’s history of leveraging regional conflicts to advance its interests suggests that the Gaza conflict serves as a mere backdrop to its larger ambitions. Proxy confrontations across the Middle East, from Lebanon to Yemen, show Iran’s broader agenda and the risks it poses to regional stability.

The Middle East is a major oil-producing region, with countries such as Iran, Iraq, Saudi Arabia, and the United Arab Emirates among the world’s largest oil exporters. The current disruptions to oil production and transportation in the Middle East due to conflict, geopolitical tensions, etc affect global oil prices and are threatening to trigger a global recession.

For Africa, which includes both oil-producing countries and those reliant on oil imports, fluctuations in oil prices have wide-ranging economic consequences. Oil-exporting countries in Africa see their revenues rise and fall, negatively impacting government budgets and investment plans. Meanwhile, oil-importing countries may face higher energy costs, inflationary pressures, and challenges to their balance of payments.

The unfolding situation presents two distinct scenarios with varying repercussions for Africa’s oil markets. The first scenario entails a full escalation of hostilities between Iran and Israel, a prospect favored by Israeli Prime Minister Benjamin Netanyahu.  The closure of critical shipping routes, such as the Strait of Hormuz, due to geopolitical tensions or conflict in the Middle East, is disrupting oil shipments and contributing to supply shortages, further exacerbating price volatility. 

Regardless of the scenario that unfolds, the impact on Africa’s oil prices is inevitable. In the event of a sustained escalation, heightened risk aversion and market volatility would likely drive investors towards safe-haven assets, leading to a strengthening of the US dollar and a weakening of African currencies. This geopolitical risk premium would increase the cost of international borrowing for African nations, constraining fiscal flexibility and exacerbating economic challenges.

Disruptions in oil shipments through critical maritime routes would contribute to supply constraints and upward pressure on oil prices. While this may benefit oil-exporting African countries such as Angola, Gabon, and Nigeria in the short term, the knock-on effects on energy markets, shipping routes, and supply chains could translate into higher fuel costs for consumers, exacerbating inflationary pressures and stifling economic growth.

While Africa may not be directly involved in the geopolitical tensions in the Middle East, the interconnected nature of the global oil market means that any disturbances in major oil-producing regions can have ripple effects on oil prices and economic stability across the continent.

In light of these challenges, African policymakers face the daunting task of energy geopolitics and strategic diplomacy to safeguard their economies. In managing such complex dynamics, there is a pressing need for the mitigation of the impact of escalating tensions. 

The post Impact of Geopolitical Tensions in the Middle East on Africa’s Oil Prices appeared first on African Leadership Magazine.

The strategic importance of Djibouti lies in its geographic location, which offers access to key maritime trade routes. Its proximity to the Bab-el-Mandeb strait, a crucial chokepoint between the Red Sea and the Gulf of Aden, makes it a vital gateway for maritime traffic entering and exiting the Suez Canal. This strategic position has led to the establishment of critical maritime infrastructure, including ports and shipping facilities, transforming Djibouti into a major transshipment hub.

One of Djibouti’s primary assets is its world-class port facilities, such as the Port of Djibouti and the Doraleh Container Terminal. These ports serve as vital gateways for international trade, handling goods destined for and originating from East Africa, the Arabian Peninsula, and beyond. Moreover, Djibouti’s ports have attracted significant foreign investment and partnerships, further enhancing their capacity and efficiency.

Furthermore, Djibouti has capitalized on its strategic location by developing extensive transportation and logistics infrastructure. The country has invested in modern road and rail networks, connecting its ports to landlocked neighboring countries such as Ethiopia. These transportation corridors facilitate the movement of goods, fostering regional trade and economic integration.

In recent years, Djibouti has actively sought to leverage its strategic position to attract investment and stimulate economic growth. The government has pursued ambitious development projects, including the establishment of free trade zones and industrial parks, aimed at creating a conducive environment for trade and investment. Additionally, Djibouti has entered into partnerships with global powers, including China and the United States, to develop infrastructure projects and enhance its maritime capabilities.

However, Djibouti’s strategic significance has also drawn attention to competing geopolitical interests. The presence of foreign military bases, including those operated by France, the United States, and China, shows Djibouti’s importance in regional security dynamics. While these military installations contribute to Djibouti’s economy through leasing agreements and infrastructure development, they also raise concerns about sovereignty and regional stability.

Located in the Horn of Africa, Djibouti’s position has made it a focal point for international trade and geopolitical interests. By capitalizing on its geographic advantage and investing in critical infrastructure, Djibouti can continue to serve as a vital gateway for international trade while navigating the complexities of geopolitics to ensure long-term stability and growth.

The post Djibouti’s Strategic Position: Capitalizing on Trade appeared first on African Leadership Magazine.

The bank will fully exit Angola, Cameroon, Gambia, Jordan, Lebanon, Sierra Leone and Zimbabwe, likely by trying to sell its business in those markets.

It will also close its retail banking operations in Tanzania and Ivory Coast to focus solely on corporate banking.

The move marks a major shift for Standard Chartered, which has been among the biggest European lenders to invest in the continent in recent years when peers have been withdrawing.

The cuts would allow it to focus on bigger and faster-growing economies in the region, such as Saudi Arabia, where it has opened its first branch, and Egypt.

Before the announcement, StanChart operated in 15 African markets and 10 in the Middle East, employing around 15,000 staff, a major presence that had made it “unique among global banks” in the region, according to Citi analyst Yafei Tian.

But the complexity of operating at that scale left the bank with a comparatively high cost to income ratio of 74%, which exiting sub-scale markets will help to improve, Tian said.

The bank said that the markets being cut generated just 1% of total income in 2021 and a similar proportion of profit before tax. StanChart is currently present in 59 markets overall and serves clients in a further 83.

It did not immediately comment on the number of job losses resulting from the cuts.
StanChart shares rose slightly on the announcement, up 0.6% against a flat FTSE 100 index.

StanChart has joined the ranks of other global players to reduce their presence in Africa in recent years as they struggle to reach scale compared with incumbent locals.

It has pursued a strategy of investing heavily in digital banking in Africa but found it hard to translate customer acquisition into steady profits.

Barclays sold its African unit in 2016, ending its 90-year presence on the continent, while Credit Suisse pulled out of its wealth management business in nine African countries this year.

The economy in Sub-Saharan Africa, home to many of the poorest nations on earth, has contracted sharply during the pandemic and has struggled to recover compared with developed economies.

In October, the International Monetary Fund predicted that the region’s economy would expand by 3.7%-3.8% this year and last – the slowest recovery relative to other regions around the globe.

Some lenders are still scaling up in Africa, with Deutsche Bank saying it will expand its private bank in the region last year.

The post Standard Chartered set to exit seven countries in Africa, Middle East to cut cost appeared first on African Leadership Magazine.

Organisers- Centre for Economic and Leadership Development

Theme – Scaling up the rise of women leaders in emerging economies

Date: 13 December, 2016

Overview

In recent times, we are experiencing the dawn of an era where women are incurably committed to taking over the leadership of territories originally renowned for their history of patriarchy, oligarchy and subordination of women.

In the same vein, emerging economies are currently home to a new generation of Women, who are taking risks in their professional lives as politicians, entrepreneurs, heads of conglomerates and public stewards to build a more sustainable future for their regions.

However, the gender gap in leadership roles still remain, with women at the tail end of all forms of biases that make it impossible to either access such heights or contribute to any sustainable growth due to the abortion of their time in leadership positions.

PricewaterhouseCoopers latest ‘World in 2050’ report reveals the potential of emerging economies being positioned in the league of largest economies in the world by 2050.

As such, the role of women leaders as key drivers of this economic catch-up growth cannot be overemphasized.

Therefore the 4th edition of the South America- Africa- Middle East -Asia Women Summit, is to converge the most influential women leaders and stakeholders in emerging economies to consolidate efforts in supporting and scaling up opportunities for women leaders in these regions as well as deliberate on sustainable ways of multiplying the number of women in leadership positions  in emerging economies, thereby creating diverse possibilities for upcoming women leaders.

The summit will culminate into a glamorous unveiling of the Amazon’s Watch Emerging Economies Top 100 Most Influential Women, aimed at showcasing and documenting the achievements of the regions’ finest women leaders.

Contact Details

Centre for Economic and Leadership Development,

13b Mambilla Street, off Aso Drive, Abuja-FCT, Nigeria.

Email-info@celdng.org; furo.giami@celdng.org

Phone- +234 8039095696; +234 9029903000; +234 8038235050; +971 52 102 5717

Website- www.celdng.org, www.amazonswatchmagazine.com

The post The South America- Africa- Middle East- Asia Women Summit (SAMEAWS) 2016 appeared first on African Leadership Magazine.