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Growth of African Tourism as industry remains resilient

The festive season in Africa also marks the highest season in the tourism industry, as demand for getaway destinations in the continent surges.

According to a Hospitality Report Africa – 2018/19, IATA’s most popular airline destinations in Africa in terms of traffic are South Africa, Egypt, Morocco, Algeria, Nigeria, Tunisia, Kenya, Ethiopia, Mauritius and Tanzania respectively. These being just among other African countries favorited by tourists not only during Christmas seasons but also throughout the year; for their exotic and relaxing nature.

Magnificent sceneries, wild and untouched nature for remarkable safaris and inestimable coastlines, Africa is indeed a favorable tourism destination. In the report by Jumia Travel, the United Nations World Tourism Organization (UNWTO) Secretary General Mr. Zurab Pololikashvili, shares his insights on the growth of African tourism.

Jumia Travel (JT): How is the African tourism sector performing and which are the driving factors?

Zurab Pololikashvili (ZP): International tourist arrivals in Africa are estimated to have increased by 8%. Results were driven by the continued recovery in North Africa and the solid growth in most destinations that reported data. Tunisia continued to rebound strongly in 2017 with a 23% growth in arrivals, while Morocco also enjoyed better results after weaker demand in the previous year. Growing demand from European source markets and a more stable environment contributed to the positive results.

In Sub Saharan Africa, strong performance continued in large destinations including Kenya, Côte d’Ivoire, Mauritius and Zimbabwe. South Africa reported slower growth in arrivals though a strong increase in expenditure. Island destinations Seychelles, Cabo Verde and Reunion Island; all reported double-digit growth in arrivals, benefiting from increased air connectivity.

The driving factors

The Africa agenda 2063 remained a strong driving factor to the growth of the industry; Issuance of the AU e-Passport and creation of visa upon arrival, e-visa and visa-free travel for African citizens in line with the concept of unrestricted movement of persons, goods and services across the countries. Others include; infrastructure development aiming at unlocking intra-regional economic exchange and establishing regional value chains for increased competitiveness, as well as political good will and mainstreaming of national agenda and implementation of tourism transformation policies.

JT: What are the greatest challenges facing the growth and expansion of the tourism sector in Africa?

ZP: Among challenges hindering the growth of the sector are travel advisories by international tourist sources and Political instability at some. Inadequate air travel between the major African cities due to poor intra-African air connectivity and lack of strategic marketing of brand Africa are also among top issues. We are also dealing with negative perception of brand identity and image of the continent.

Africa is not a country but a continent, home to more than a billion very creative, entrepreneurial and tech savvy Africans. It is however viewed as the only home to a fascinating wildlife and torn apart by war, poverty and diseases. Last but not least, underdeveloped tourism infrastructure, visa restrictions and lack of a common visa policy, and lack of access to adequate funding and underfunding at the ministerial level.

In response to these challenges, the UNWTO is aligning and developing national tourism strategies and policies in line with national agenda. The 10-point UNWTO Africa Agenda is a road map towards the maximization of Africa’s tourism potential. We are putting emphasis on travel and Tourism as a driver of jobs growth and economic recovery, provision of technical support to governments and affiliate private sector organizations for the development and promotion of sustainable tourism at the destinations. UNWTO is also providing Risk and Crisis Management courses in conflict prone zones as well as helping in the establishment of brand and image of African campaigns.

JT: What role is the rising Middle Class playing in boosting Africa’s domestic tourism, as a contribution towards achieving the middle-income status?

ZP: People’s movement is no longer a luxury set aside for the few with high per capita income but a basic need for the ever-increasing majority of the middle class who create and shape the future generation entrepreneurs. A growing middle class is a sign of a robust economy. The existence of domestic tourists who have more money to spend at their disposal and thus willing to travel more, has led to the mushrooming of low cost airlines, upward growth of bed capacity in main cities, flourishing of the so called shared economy etc.

Traditionally, tourism was seen as a thing for the foreigners, but this myth has been demystified by the fact that travel and leisure is not the sole domain of foreigners but also, for the locals to have a real-life experience of the richness and diversity of their countries which translates positively into the national economy.

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Matsheka seeks raise bond program ceiling to P30 billion

14th September 2020
Dr Matsheka

This week Minister of Finance & Economic Development, Dr Thapelo Matsheka approached parliament seeking lawmakers approval of Government’s intention to increase bond program ceiling from the current P15 Billion to P30 billion.

“I stand to request this honorable house to authorize increase in bond issuance program from the current P15 billion to P30 billion,” Dr Matsheka said. He explained that due to the halt in economic growth occasioned by COVID-19 pandemic government had to revisit options for funding the national budget, particularly for the second half of the National Development Plan (NDP) 11.

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Lucara sits clutching onto its gigantic stones with bear claws in a dark pit

14th September 2020
Lesedi La Rona

Botswana Stock Exchange (BSE) has this week revealed a gloomy picture of diamond mining newcomer, Lucara, with its stock devaluated and its entire business affected by the COVID-19 pandemic.

A BSE survey for a period between 1st January to 31st August 2020 — recording the second half of the year, the third quarter of the year and five months of coronavirus in Botswana — shows that the Domestic Company Index (DCI) depreciated by 5.9 percent.

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Botswana Diamonds issues 50 000 000 shares to raise capital

14th September 2020
Diamonds

Botswana Diamond PLC, a diamond exploration company trading on both London Stock Exchange Alternative Investment Market (AIM) and Botswana Stock Exchange (BSE) on Monday unlocked value from its shares to raise capital for its ongoing exploration works in Botswana and South Africa.

A statement from the company this week reveals that the placing was with existing and new investors to raise £300,000 via the issue of 50,000,000 new ordinary shares at a placing price of 0.6p per Placing Share.

Each Placing Share, according to Botswana Diamond Executives has one warrant attached with the right to subscribe for one new ordinary share at 0.6p per new ordinary share for a period of two years from, 7th September 2020, being the date of the Placing Warrants issue.

In a statement Chairman of Botswana Diamonds, John Teeling explained that the funds raised will be used to fund ongoing exploration activities during the current year in Botswana and South Africa, and to provide additional working capital for the Company.

The company is currently drilling kimberlite M8 on the Marsfontein licence in South Africa and has generated further kimberlite targets which will be drilled on the adjacent Thorny River concession.

In Botswana, the funds will be focused on commercializing the KX36 project following the recent acquisition of Sekaka Diamonds from Petra Diamonds. This will include finalizing a work programme to upgrade the grades and diamond value of the kimberlite pipe as well as investigating innovative mining options.

Drilling is planned for the adjacent Sunland Minerals property and following further assessment of the comprehensive Sekaka database more drilling targets are likely. “This is a very active and exciting time for Botswana Diamonds. We are drilling the very promising M8 kimberlite at Marsfontein and further drilling is likely on targets identified on the adjacent Thorny River ground,” he said.

The company Board Chair further noted, “We have a number of active projects. The recently acquired KX36 diamond resource in the Kalahari offers great potential. While awaiting final approvals from the Botswana authorities some of the funds raised will be used to detail the works we will do to refine grade, size distribution and value per carat.”

In addition BOD said the Placing Shares will rank pari passu with the Company’s existing ordinary shares. Application will be made for the Placing Shares to be admitted to trading on AIM and it is expected that such admission will become effective on or around 23 September 2020.

Last month Botswana Diamond announced that it has entered into agreement with global miner Petra Diamonds to acquire the latter’s exploration assets in Botswana. Key to these assets, housed under Sekaka Diamonds, 100 % subsidiary of Petra is the KX36 Diamond discovery, a high grade ore Kimberlite pipe located in the CKGR, considered Botswana’s next diamond glory after the magnificent Orapa and prolific Jwaneng Mines.

The acquisition entailed two adjacent Prospecting Licences and a diamond processing plant. Sekaka has been Petra’s exploration vehicle in Botswana for year and holds three Prospecting Licenses in the Central Kalahari Game Reserve (Kalahari) PL169/2019, PL058/2007 and PL224/2007, which includes the high grade KX36 kimberlite pipe.

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