Deputy Chief Justice Dikgang Moseneke (C) reads Mandela's will as he is flanked by Professor Njabulo Ndebele (L) and Advocate George Bizos, Nelson Mandela's lawyer, confidant and friend at the Nelson Foundation Center of Memory in Houghton, February 3, 2014.
Former South African president and anti-apartheid hero Nelson Mandela left his $4.1 million estate to family members, the ruling African National Congress, former staff and several local schools, according to a reading of his will on Monday.
The will was expected to set off another round of squabbling among members of his large and factious family over the Nobel Peace Prize laureate's financial legacy.
Deputy Chief Justice Dikgang Moseneke said he was not aware of any possible wrangle over the provisional 46-million-rand estate, although when the will was read to family earlier on Monday the mood was "charged with emotion."
"I am not aware of any contest of any type and the will has been duly lodged and accepted," Moseneke said.
Mandela's third wife, Graca Machel, is entitled to half the estate under South African marital law but could waive her claims and opt for specified assets that include properties in her native Mozambique. Machel has not made a decision on whether to weave her rights, Moseneke said.
Some of the estate would be split between three trusts set up by Mandela, including a family trust designed to provide for his more than 30 children, grandchildren and great grandchildren.
Each of the Mandela children and some of his grand-children received $300,000. His upscale Johannesburg house, where he spent most of his life after being freed from apartheid jails, would be home to his deceased son Makgatho's children.
The ANC, which was Mandela's political home, could receive a portion of his royalties from books and other commercial outlets using his name and image. Mandela staff, including his long-time personal assistant Zelda Le Grange, also shared in the fortune with 50,000 rand each.
"It really makes me happy. I didn't think Tata was thinking of leaving something for me," said Mandela's personal chef Xoliswa Ndoyiya, referring to Mandela using the Xhosa word for father.
Mandela, who died in December at the age of 95, left an estate that also included a modest dwelling in his rural Eastern Cape home province and royalties from book sales, including his autobiography, "Long Walk to Freedom".
More visibly, his legacy includes a potent political and moral brand that some of his grandchildren and great-grandchildren have already used to market everything from clothing to reality TV.
Some of his grandchildren have started a line of caps and sweatshirts that feature his image under the brand "Long Walk to Freedom". Two of his U.S.-based granddaughters starred in a reality television show called "Being Mandela".
Such aggressive marketing - as well as reports of fighting among family members over Mandela's money - have fuelled the impression in South Africa that some of the family members have exploited their world famous relative.
(Additional reporting by David Dolan and Siyabonga Sishi; Editing by Larry King)
Africa consumed just 3.5m barrels of oil a day (b/d) in 2012, equivalent to 3.86% of global oil consumption. In comparison, with a population of 1,072,000,000, it contains 15.1% of all humankind. Yet in its recent Medium Term Market Report, the International Energy Agency (IEA) suggests that rising oil consumption in Africa could compensate for slowing demand growth in China.
Discussing such long-term trends is usually fascinating and also very speculative but there is little doubt that Africa’s share of global demand will increase. Even the 2012 figure represents an increase on the 3% of global demand generated by Africa in 2000.
The IEA says that the increase is “in keeping with the relatively robust macroeconomic growth experienced in the region, but it is also consistent with evidence privately obtained from traders, refiners and other market participants on the ground.”
Apart from anything else, energy consumption remains closely linked to economic growth and growth on the African continent now consistently outperforms the global economy. The IEA forecasts that oil demand will increase by 3.7% a year in China over the period 2012–18, by 3% a year in India and by 4% in Africa. It added: “There are strong reasons to believe that African oil demand growth will accelerate further over the forecast period.”
At the same time, European and North American demand will remain largely static because of weaker economic growth, greater energy efficiency and efforts to reduce carbon emissions. The member states of the Organisation for Economic Cooperation and Development (OECD) consumed less oil than developing countries for the first time ever in April this year, after accounting for as much as 80% of global demand as recently as 1980.
Demographic changes look certain to drive up African energy consumption. The population of the continent increased from 221m in 1950 to 1,033m last year and is forecast to reach 2bn by 2050, when it could account for a quarter of global population.
All of these people will consume energy in one form or another and much of this energy is likely to take the form of oil. In addition, investment in large-scale cement and fertiliser plants will absorb much more natural gas, reducing the volume of gas available to supply thermal power plants, which will therefore continue to rely on oil feedstock.
The telecoms effect It is also interesting to look at what the IEA regards as the causes behind the improvement in Africa’s relative wealth. It lists three main trends: China’s emergence as an important importer from the continent; sharp rises in prices for the industrial commodities that many African states export; and the impact of the mobile communications boom in economic terms and on energy demand.
The IEA’s reference to the telecoms sector as a driver of both economic growth and energy demand is particularly intriguing. It concedes that the sector is only “a direct source of energy demand at the margin” in Africa but the technology does require access to electricity, whether phones are charged at home, at work and or by street traders.
Just 10% of rural African homes are supplied with electricity, yet there were 650m mobile phone subscribers on the continent by the end of last year. Each phone charge may consume a minute amount of electricity but the wide distribution of mobile phones means that more and more villages now need access to electricity.
Once supplies are guaranteed, people are more likely to buy other consumer goods that are powered by electricity. At present, most of this electricity is supplied by small diesel or oil-fired generators, each of which consume small amounts of feedstock but which collectively place large demands on local supplies.
It seems likely that African economic growth will be relatively energy intensive. The mining, oil and gas industries all consume large amounts of energy, while the growing middle classes will spend more on cars and on consumer goods that require electricity, as well as travelling more by air.
Industrial and manufacturing energy demand is likely to be lower than elsewhere in the world for the foreseeable future but there are some signs that a manufacturing boom could occur further down the line.
China was able to take control of global mass manufacturing because of low wages but many companies are now switching production out of China because of rapidly rising labour costs. The main beneficiaries to date have been other countries in Asia, including Vietnam and Bangladesh, but African economies could also benefit in the longer term because of their large, young workforces.
The number of African air passengers increased from 18m in 2003 to 32.5m just seven years later, yet the African Airlines Association estimates that just 15% of Africans have ever travelled by air. A combination of rising incomes, for the middle classes at least, and the spread of low-cost airlines, should bring air travel within the reach of more Africans.
Figures on car ownership are difficult to find but there is little doubt that the number of cars on African roads is increasing, while the continent’s nascent railway renaissance suggests that rail transport will also absorb more fuel in the future. The IEA predicts that diesel and petrol demand will increase by an average of 4.5% a year between 2012 and 2018.
Inaccurate reporting There is, however, a problem with the reporting of oil consumption in Africa. Consumption in many countries is partly satisfied by stolen and smuggled oil and refined petroleum products that do not appear in official statistics.
In addition, the IEA claims that there has been underreporting of African oil demand and cites figures from South Africa and Nigeria to support its case. It states “Much of the recent historical data on African oil demand have become increasingly inconsistent with the region’s strengthening macroeconomics.”
Other governments may not consider the collation of official data to be a high priority and so it can be difficult to obtain accurate figures. As Table 1 demonstrates in the case of Nigeria, there is sometimes little correlation between economic growth and oil consumption.
The oil majors divested themselves of some of their African fuel distribution networks over the past decade, but they may have sold off their assets at exactly the wrong time.
Apart from increased car ownership, trade volumes across the continent are rising more quickly than economic growth, as more and more goods are transported across African borders by growing fleets of lorries operated by both international and local logistics companies. African oil and fuel consumption should therefore become a more important element of global demand over the next few years but the lack of industrial and manufacturing capacity means that it is likely to be a generation before African demands rival those of other continents.
M-Pesa and beyond – Why mobile money worked in Kenya and struggles in other markets
This article by Akin Oyebode originally appeared on TechCabal.
“There have been about 200 of these experiments around the world, and maybe only 4 or 5 have been successful.” This was how Michael Joseph, Vodacom’s Director of Mobile Commerce described mobile money to the Financial Times in 2012.
When Michael Joseph talks about mobile money, you should listen. Until 2012, he ran Safaricom, the Kenyan company that launched M-Pesa (“pesa’ means money in Swahili). The quote is a reminder that mobile money remains a hit or miss initiative, and most adopters have struggled to show the type of traction seen in Kenya.
Why is Kenya seen has the standard measure of mobile money’s success? The answer is simple; M-Pesa’s numbers are staggering. According to this article, 17 million Kenyans (70% of the adult population) use M-Pesa through its network of 40,000 agents and an estimated 25% of Kenya’s gross national product flows through the channel.
But it is useful to remember there are many reasons mobile money worked in Kenya and is struggling in similar markets. The biggest one is first mover advantage, which meant regulators allowed the scheme to proceed without hindrance, and ensured development led regulation, unlike in many markets where development lags behind regulation.
But this only tells part of the story; the high cost of domestic remittances in Kenya meant a cheaper alternative was likely to grow, and some analysts suggest the violence in 2008 was a critical accelerator for the service. As the legend goes, during the post-election violence, M-Pesa was used by educated urband dwellers to send money to relatives trapped in the villages and slums.
I left the most controversial reason last; the innovator (Safaricom) succeeded because of its status as a monopoly, which ensured the investment in technology and an agent network was protected, leading to an easy dominance of the money transfer industry.
Fast forward to India which is implementing mobile money with less success than Kenya, despite having a much larger rural population and all the necessary factors for a successful implementation. The Reserve Bank of India sees Mobile Money as a banking service, not a telco enabled money transfer service, and regulates it as such. It recognizes mobile money as an alternative currency, so there is emphasis on consumer protection. The RBI also believes regulation will ultimately allow for a much bigger scale than the Kenyan model, and says players will be able to offer more complex savings and investment products in the future, if well regulated from inception.
The result of the regulation in India is that telcos that want to enter this market must partner with a bank. Apart from making it less attractive for telcos to participate, the regulation also means users need basic identification to open “accounts” and must go through some due diligence, which reduces adoption. The Indian regulator argues it is playing the long game, and suggests the reward will be a system that holds up decades from now.
As you might be aware, Nigeria chose the Indian route, and has faced similar struggles to gain traction. Critics of the model have pointed to the Central Bank of Nigeria as the villain, suggesting regulation is protecting banks and crippling growth. Here, I must admit my bias; I have spent some considerable part of my life in banking, and believe there are valid reasons for a regulated system. However, instead of joining the debate about the model we are implementing, it might be useful to highlight some hygiene factors necessary for success.
The major reason Safaricom was able to navigate KYC concerns in Kenya is because Kenya has a national identification system. The only way to scale adoption is to reduce the KYC requirements to open accounts or transact using mobile money. Somewhere between the SIM registration exercise the NCC “completed” this year and a national identity project, we must find a permanent solution to the identification hurdle plaguing Nigeria.
It doesn’t matter who leads mobile money (bank or mobile network operator), if identification remains a problem, scale remains a dream. Once KYC requirements are easy to achieve, customer registration should take less than 5 minutes, making it convenient to sign up.
The only platform that allows for end-to-end encryption is the SIM. This is the biggest shout to allow for MNO-led service providers, because since the SIM is controlled by the MNO, it means only the MNO-led solution offers full security.
To work around this, the bank-led solutions have set transaction limits to minimize fraud, but the bigger question has not been asked. Will telcos give up full control of the SIM in exchange for more participation in mobile money? On the back of this, providers must be ready to offer money back guarantees to early adopters.
In markets where mobile money has worked, it was the early adoption by urban dwellers and salary earners that drove usage. If the offering is going to work as a domestic remittance channel, the initiator of the remittance must trust the solution, otherwise money will continue to move via recharge cards and bus terminals.
I believe transaction costs in Nigeria are too high, and the system can do with a lot more free loading. One of the attractions of mobile money is the availability of cheaper cash in/cash out options. For example, it will cost me N5 to send N1,500 recharge card to my relative in Ikole-Ekiti by SMS and N25 to the same via mobile money, so no prizes for guessing what option I will go for.
The hockey stick for investment in mobile money will be steeper than normal, and investors must be ready to drop average revenues in exchange for scale. Until costs drop by at least 50%, small ticket transactions will continue to happen using airtime.
Hey, some steriods from our good friends in government won’t hurt too. In Afghanistan, adoption grew mainly because the government used mobile money as a means to pay policemen, especially those in remote locations battling the taliban. According to this article, the result was not only a reduction in ghost soldiers, but policemen thought they received a 30% increase in salaries because the middlemen had been cut out.
There is no harm in government administering low value salaries and cash transfer schemes via mobile money. It will eliminate waste and help drive adoption.
Mobile money will always start as a money transfer service, but expansion into a savings and lending service is inevitable. In Kenya, M-Shwari is already offering overdrafts to the unbanked.
While I am fully in support of lending to the poor, it must be done in a way that ensures savings are not eroded. This is why regulation of mobile money is critical. We have seen the impact of having a loosely regulated financial industry, and must not make the same mistake with mobile money.
The big hurdle is the unfamiliarity of financial sector regulators with non-financial institutions, but we can learn from Safaricom’s move to bring Susan Mudhune on its board. By getting the former chairperson of Kenya Commercial Bank on its board, Safaricom has started to bridge the language barrier between the telco and its future regulator, the Central Bank.
The spread of agents is a big factor in adoption. If consumers have limited options to cash in or out, it removes the convenience associated with mobile money. Apart from MNO agents, mobile money operators must use the extensive distribution network built by consumer businesses like Coca-Cola, Procter & Gamble, Unilever, Nigerian Breweries etc.
This takes me back to the cost discussion. If the revenue sharing model does not create an incentive for the agent, sign up will be slow. Today, mobile money operators must be willing to lose significant revenues to drive growth, and until agents earn 75% of the transaction fees, the business might not scale.
In summary, Kenya is clearly an outlier with 46% of Kenyans sending a domestic remittance monthly, compared to 18-23% in the next set of countries including Nigeria. This is the biggest driver of mobile money, so we must common size our expectations.
Also, the model employed will always be open to criticism; since both bank-led and MNO-led models have significant advantages and flaws. Nigeria has chosen the bank-led model which I believe is harder to scale, but could prove beneficial if full financial inclusion is to be achieved.
The ultimate test of the model is not today’s numbers, but how the system grows when the hygiene factors are in place. It is clear that mobile money has all the tools to disrupt traditional banking systems, and will eventually happen.
Akin Oyebode is head SME Banking, Stanbic IBTC Bank, Nigeria.
Imagine what a million here or there could do for your life. But while we all dream of tropical holidays or owning a house, the rich of the world have gotten quite a bit richer. Forbes released its annual list of the year's biggest financial gainers and Africa does not buck the trend…
Aliko Dangote, Africa's richest man, has had a great 2013, boosting his fortune by double digits and still remains firmly at the top of the billionaire rankings. But how did the rest of the continent's super rich do? (Image by MIKE HUTCHINGS/Newscom/RTR)
10. Yasseen Mansour
Net Worth: $2.4 billion
You may not have heard of Yasseen Mansour before now, but if you regularly survey lists like these you know his brother Mohamed: one of Africa’s ten richest people. Both along with their third brother run the Mansour Group, an Egyptian giant that among many things is the continent’s leading supplier of Caterpillar equipment. Though Yasseen’s fortune didn’t outgrow his brother’s - Mohamed’s worth grew to $3.1 billion - it still jumped 20 percent ($400 million) to reach $2.4 billion.
9. Abdulsamad Rabiu
Net Worth: $1.2 billion
Making his debut on the billionaires list late last year, Nigeria’s Abdulsamad Rabiu has had a terrific 2013. He has fingers in many of the same businesses as his compatriot and Africa’s richest, Aliko Dangote: flour, cement, real estate, steel and more, all run through his privately-owned BUA Group. In the past year Rabiu’s fortune grew by an impressive 85 percent - adding $550 million and elevating him into billionaire status with $1.2 billion to his name.
8. Koos Bekker
Net Worth: $1.2 billion
Imagine being in charge of a company that just seems to be printing money. Naspers may be a media firm, but smart diversification has kept it immune from the forces ravaging its peers. Indeed, Naspers keeps making money - unheard of for a firm that used to mainly print newspapers. Bekker is the man credited for this turnaround and his holdings show the result: Forbes estimates that over the past year his fortune grew by $750 million - 167 percent - giving him admission to the billionaire’s club.
7. Mohamed Mansour
Net Worth: $3.1 billion
This list started with Yasseen Mansour, co-owner of the Mansour Group. But though his fortune grew dramatically, as mentioned he still falls behind his brother Mohamed. One of Africa’s ten richest, Mohamed’s wealth got a healthy 41 percent boost in 2013, reports Forbes. That translates to $900 million, pushing him to a total of $3.1 billion. This is all thanks to aggressive international expansion by the Mansour Group and most of its income did not come from troubled Egypt.
6. Nassef Sawiris
Net Worth: $6.6 billion
Egypt’s richest man added a bumper $1 billion to his fortune in 2013. One of the three Sawiris brothers, he co-owns Orascom Construction Industries, which has fingers in cement and fertilizer, to name a few. Big investments in his businesses have boosted his balance sheet and despite agreeing to an expensive tax settlement, Sawiris still came out on top. With a rise of 18 percent, he is now worth $6.6 billion.
Image courtesy of ASSOCIATED PRESS
Egypt maintains its reputation as home to some of the continent’s super-wealthy - a few of whom are even better off today. Nassef Sawiris, the country’s richest man, became 18 percent richer. Brothers Mohamed and Yasseen Mansour also saw their fortunes rise.
5. Johann Rupert
Net Worth: $7.8 billion
Heir to a cigarette giant, Johann Rupert turned it into an empire. Other than tobacco, he also owns the luxury goods company Richemont, home to brands like Cartier and Montblanc. That turned out to be his biggest boon for 2013, as its share value jumped by 50 percent. Forbes calculates that South Africa’s Rupert enjoyed a 22 percent boost to his fortune, translating into $1.4 billion extra cash. That comfortably elevates the media-shy tycoon into being Africa’s second-richest.
Image courtesy of ASSOCIATED PRESS
Johann Rupert, pictured centre, is one of three South Africans who saw their fortunes grow by huge leaps. He is joined by new billionaire Koos Bekker, who runs the Naspers media giant, and Christo Wiese, boss of retail behemoth Shoprite.
4. Folorunsho Alakija
Net Worth: $2.5 billion
There is some controversy over Folorunsho Alakija’s actual worth. Late last year Ventures Africa pegged the Nigerian’s wealth at an impressive $7.3 billion, which would make her the richest black woman in the world. Forbes originally had her at $600 million, but noted new assets, specifically in the oil fields that make up the bulk of her wealth. Though the two sources still differ immensely on her true worth, nobody is arguing that Alakija is now a proper billionaire thanks to a larger-than-thought stake in the lucrative Agbami oilfield. She has $2.5 billion to her name, a jump of 317 percent - the biggest on this list.
Image courtesy of ASSOCIATED PRESS
Nigeria has a strong showing in the world of rising billionaires. Folorunsho Alakija enters the billionaires club after the larger extent of her oil field ownership was revealed. She is joined by another newly minted Nigerian billionaire, Abdulsamad Rabiu. But the king of the hill remains commodities tycoon Aliko Dangote.
3. Christo Wiese
Net Worth: $6.5 billion
A retail mogul, Christo Wiese’s fortunes are tied to the fate of Shoprite, the largest retail group in Africa. Unfortunately Forbes is not being very clear on how his fortune managed to double in the past year - in November he was listed as worth $3.8 billion, a number that grew to $6.5 billion by the start of this year. But nobody doubts the figure: Wiese had been selling some of his Shoprite shares and is invested in several other lucrative industries.
2. Isabel dos Santos
Net Worth: $3.7 billion
Unlike anyone on this list, Isabel dos Santos seems to be far from self-made. Indeed, she is the daughter of the President of Angola - a regime notorious for its wealthy ruling elite and nepotism. Dos Santos was basically given a lot of shares in the national oil industry by her father, in a country where many live on less than a few dollars a day. As it were, the level of her questionable wealth was underestimated - investigations into Dos Santos’ affairs revealed another $2.8 billion.
1. Aliko Dangote
Net Worth: $22.9 billion
You can’t touch this man. Africa’s wealthiest person hardly broke a sweat in 2013. Well, that’s not true - Aliko Dangote is a very hard-working and focused individual. Still, while everyone else on this list celebrated a billion here or there, he added more than $10 billion to his already-burgeoning fortune. Aggressively expanding his cement business, one of Africa’s largest enterprises, did the trick. The other areas of his conglomerate also did very well and Dangote’s plans to build Nigeria’s largest oil refinery will likely only boost his bank balance. Today the Nigerian tycoon firmly remains Africa’s richest with a total $22.9 billion.
Before anyone panics, this is not an article about stealing Disney Classics, it’s about duplicating the success of one of the world’s greatest Entrepreneurs. It’s about Walt Elias Disney himself. Have you ever wondered how he managed to create such an overwhelmingly successful enterprise? Of course, we know he was tenacious and hard working but so are many others who don’t achieve the same level of success as Walt Disney. What are some of the thoughts and actions that made Walt, the man, so special and could we duplicate them in today’s business environment with the same upward mobility?
By continuing education, I simply mean reading. Walt once said,
“There is more treasure in books than in all the pirate’s loot on Treasure Island.”
There’s little doubt that Walt loved books, the legacy he left behind is like his own treasure map to the things he loved. The level of success beyond college graduation is often in direct correlation to the amount of time spent reading. Read fiction, non-fiction, biographies and ‘how-to’s’ ….just never stop learning. Power comes from knowledge and knowledge comes from books. It always has and always will.
GET MOVING, KEEP TRYING, WORK HARD
“The way to get started is to quit talking and begin doing.”
I have no idea what the circumstances were when Walt said that but it’s a golden nugget of truth. We love to dream and talk about plans. Walt dreamed, talked and planned but he actually got up and worked too.
“Everyone falls down. Getting back up is how you learn.”
In today’s world, we’re often hampered by difficult regulations, costs, bad business partners and/or any number of negative events. Is this truly different than Walt’s day? Probably not as much as we would like to think. The rights to his first cartoon were more or less stolen from him. He didn’t pout in his easy chair for the rest of his life. He got back up and Mickey Mouse was born.
“People often ask me if I know the secret of success and if I could tell others how to make their dreams come true. My answer is, you do it by working.”
This is, or should be, common sense. After all, Walt grew up in an average working class family and saw his dad go to work daily.
Don’t look for shortcuts.
Be willing to invest time and effort into a job well done and success will follow.
ASK FOR HELP
“All you’ve got to do is own up to your ignorance honestly, and you’ll find people who are eager to fill your head with information.”
Plain and simple, he means ask for help. You can’t possibly know everything and should stop acting like you do. During Walt’s lifetime, America was changing constantly and becoming an industrial world leader. He lived through two world wars and saw the invention of countless gadgets and machines designed to make life easier. No one person could keep up with it all. Walt knew this and asked for help and advice from experts. I think he must also have been a good listener.
WHAT YOU KNOW
Writers are told to ‘write what you know‘ because it gives authenticity to their writing. The same is true of business. Use your own life experience and personal knowledge to your advantage.
KNOW YOUR PRIORITIES AND STOP WORRYING
All the success in the world won’t be worth anything if your priorities are backwards.
“A man should never neglect his family for business” is one of the best quotes from Walt Disney. He knew what his priorities were and so should you. What good is financial gain if you lose your family in the process?
“Why worry? If you’ve done the very best you can, worrying won’t make it better.”
This is excellent but difficult advice to follow. However, you’ll save yourself time, energy and possibly an anxiety attack if you do.
DREAMS REALLY DO COME TRUE
Hundreds, possibly thousands, of quotes are attributed to Walt Disney but one of my favorites is:
“All our dreams can come true if we have the courage to pursue them.”
I know better than to think ‘all’ my dreams will come true. I have some fantastic dreams. But the gist of the saying is spot on. It takes courage to fail and try again until success occurs. If you have courage, or can cultivate it, you are on your way to your dreams of wealth and success coming true.
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