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    Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

    Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

    Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

    Egypt’s food industries contribute 24.5% of GDP

    Egypt’s food industries contribute 24.5% of GDP

    $36mln contract for construction of Duqm fisheries complex

    $36mln contract for construction of Duqm fisheries complex

    Ministry signs agreement to support Oman’s honey industry

    Ministry signs agreement to support Oman’s honey industry

    Local, Italian companies partner up to establish food retail chain in Egypt

    Local, Italian companies partner up to establish food retail chain in Egypt

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      Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

      Egypt’s food industries contribute 24.5% of GDP

      Egypt’s food industries contribute 24.5% of GDP

      Profits at top Saudi banks jump 17.6% in Q1

      Profits at top Saudi banks jump 17.6% in Q1

      GCC can create 600,000 tech jobs and add US$255 billion to GDP by 2030

      GCC can create 600,000 tech jobs and add US$255 billion to GDP by 2030

      What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

      What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

      New study reveals that UAE is most competitive economy in the Arab world

      New study reveals that UAE is most competitive economy in the Arab world

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      • CES 2017
      • Election Results
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      Oman Construction Equipment Industry to 2028

      Oman Construction Equipment Industry to 2028

      $36mln contract for construction of Duqm fisheries complex

      $36mln contract for construction of Duqm fisheries complex

      What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

      What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

      Madayn working on major Oman industrial city projects

      Madayn working on major Oman industrial city projects

      Foundation stone laid for new 700-bed hospital is Salalah, Oman

      Foundation stone laid for new 700-bed hospital is Salalah, Oman

      Iraq set to award new Faw Port deals

      Iraq set to award new Faw Port deals

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        Suez Canal expects US$3.5 billion in revenues in H1

        Suez Canal expects US$3.5 billion in revenues in H1

        UAE and Egypt’s consortium to buy African renewables firm Lekela Power

        UAE and Egypt’s consortium to buy African renewables firm Lekela Power

        Fitch revises Saudi Aramco’s outlook to positive from stable

        Fitch revises Saudi Aramco’s outlook to positive from stable

        Investments in renewables in Egypt reach LE6 bn: Official

        Investments in renewables in Egypt reach LE6 bn: Official

        Egypt signs 8 gas exploration contracts worth $934mn over 15 months

        Egypt signs 8 gas exploration contracts worth $934mn over 15 months

        JGC lands $3.7bn Iraq refinery upgradation project deal

        JGC lands $3.7bn Iraq refinery upgradation project deal

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        • Hospitality

          Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

          Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

          Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

          Saudi to be among world’s big leisure tourism hubs by 2030

          Saudi to be among world’s big leisure tourism hubs by 2030

          Qatar’s hospitality sector peaks despite turbulent 2020

          Qatar’s hospitality sector peaks despite turbulent 2020

          Accor inks deal to manage first Swissôtel-branded hotel and residential project in Qatar

          Accor inks deal to manage first Swissôtel-branded hotel and residential project in Qatar

          Staycations to stimulate Qatar’s hospitality sector

          Staycations to stimulate Qatar’s hospitality sector

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        • Agrofood
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          • Agriculture
          • Environment
          • Food

          Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

          Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

          Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

          Egypt’s food industries contribute 24.5% of GDP

          Egypt’s food industries contribute 24.5% of GDP

          $36mln contract for construction of Duqm fisheries complex

          $36mln contract for construction of Duqm fisheries complex

          Ministry signs agreement to support Oman’s honey industry

          Ministry signs agreement to support Oman’s honey industry

          Local, Italian companies partner up to establish food retail chain in Egypt

          Local, Italian companies partner up to establish food retail chain in Egypt

          Trending Tags

          • Business & Economy
            • All
            • Business
            • Economy
            • Finance
            • Industry
            • Technology
            • Trade
            • Transport & Logistics

            Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

            Egypt’s food industries contribute 24.5% of GDP

            Egypt’s food industries contribute 24.5% of GDP

            Profits at top Saudi banks jump 17.6% in Q1

            Profits at top Saudi banks jump 17.6% in Q1

            GCC can create 600,000 tech jobs and add US$255 billion to GDP by 2030

            GCC can create 600,000 tech jobs and add US$255 billion to GDP by 2030

            What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

            What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

            New study reveals that UAE is most competitive economy in the Arab world

            New study reveals that UAE is most competitive economy in the Arab world

            Trending Tags

            • CES 2017
            • Election Results
            • eSports
          • Construction
            • All
            • Infrastructure
            • Real Estate
            Oman Construction Equipment Industry to 2028

            Oman Construction Equipment Industry to 2028

            $36mln contract for construction of Duqm fisheries complex

            $36mln contract for construction of Duqm fisheries complex

            What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

            What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

            Madayn working on major Oman industrial city projects

            Madayn working on major Oman industrial city projects

            Foundation stone laid for new 700-bed hospital is Salalah, Oman

            Foundation stone laid for new 700-bed hospital is Salalah, Oman

            Iraq set to award new Faw Port deals

            Iraq set to award new Faw Port deals

            Trending Tags

            • Energy
              • All
              • Oil & Gas
              • Power & Electricity
              • Renewable Energy
              Suez Canal expects US$3.5 billion in revenues in H1

              Suez Canal expects US$3.5 billion in revenues in H1

              UAE and Egypt’s consortium to buy African renewables firm Lekela Power

              UAE and Egypt’s consortium to buy African renewables firm Lekela Power

              Fitch revises Saudi Aramco’s outlook to positive from stable

              Fitch revises Saudi Aramco’s outlook to positive from stable

              Investments in renewables in Egypt reach LE6 bn: Official

              Investments in renewables in Egypt reach LE6 bn: Official

              Egypt signs 8 gas exploration contracts worth $934mn over 15 months

              Egypt signs 8 gas exploration contracts worth $934mn over 15 months

              JGC lands $3.7bn Iraq refinery upgradation project deal

              JGC lands $3.7bn Iraq refinery upgradation project deal

              Trending Tags

              • Hospitality

                Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

                Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

                Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

                Saudi to be among world’s big leisure tourism hubs by 2030

                Saudi to be among world’s big leisure tourism hubs by 2030

                Qatar’s hospitality sector peaks despite turbulent 2020

                Qatar’s hospitality sector peaks despite turbulent 2020

                Accor inks deal to manage first Swissôtel-branded hotel and residential project in Qatar

                Accor inks deal to manage first Swissôtel-branded hotel and residential project in Qatar

                Staycations to stimulate Qatar’s hospitality sector

                Staycations to stimulate Qatar’s hospitality sector

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              Africa’s growing middle class creates increasing demand for packaged food

              Bloomberg

              March 22, 2016
              in Agriculture, Food
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              Olam International Ltd., one of the world’s largest food traders, is hunting for more investments in Africa as it looks to benefit from the continent’s increasing appetite for everything from instant noodles to lollipops.

              Long endowed with rich agricultural resources including coffee and cocoa, Africa has a growing middle class that is now demanding more packaged food, according to Chief Executive Officer Sunny Verghese. That’s presenting increased opportunities for investment in branded foods as well as raw materials such as rubber, cotton and lumber, outweighing threats from political unrest to terrorism, he said.

              “The risks are slightly higher, but the rewards are better,” Verghese said in an interview March 8 in Kuala Lumpur. “It’s a good bet to make.”

              One of Olam’s key bets in the continent is on branded food, driven by Verghese’s prediction that Africa’s working-age population will overtake China’s in 20 years.

              Already established in 24 countries in sub-Saharan Africa, the agribusiness giant controlled by Singapore’s state investment company is looking to expand its market share across the continent. Olam’s sales from Africa climbed to S$4.13 billion ($3 billion) in 2014 from S$1.7 billion in 2010. Its packaged food operations in Nigeria, Ghana and South Africa, now have sales of $350 million to $400 million a year from nothing in 2005, when they were started.

              The company wants to increase its integration along the production chain from seed to consumer, according to Verghese. For example, Olam plans to source the oil and flour in its Tasty Tom brand cooking oil and pasta from oil palm crops it grows and wheat mills it purchased.

              Convenience Food
              “Africa in some of these markets is at the cusp of convenience foods,” Verghese said. The rising number of dual-income families where both the husband and wife work is transforming food habits, he said. “Convenience foods for on-the-go consumption is increasing. Noodles and pasta are two very good categories where we’ve seen very high growth.”

              •    Olam supplies enough cotton for three pairs of socks for everyone in the world every year
              •    Processes enough peanuts every year to make 7.6 billion peanut butter sandwiches
              •    One in every four chocolate bars contains cocoa beans handled by Olam
              •    Handles enough coffee each year to make 1,750 cups a second
              •    Olam’s dehydrated onions are served on 2 billion burgers each year

              Olam isn’t alone in looking to benefit from Africa’s growing middle class, said Carey Wong, research manager at OCBC Investment Research Pte in Singapore.

              “When people’s incomes increase, the quality of food also increases,” Wong said March 14, adding that being integrated from farm gate to consumer helps companies benefit further from that growth. “Since they own the whole value chain they can adjust prices as of when they want, rather than wait for suppliers,” he said.

              Olam shares climbed as much as 0.6 percent in Singapore trading on Wednesday and were 0.3 percent higher at S$1.74 a share by 11:36 a.m. local time, trimming their decline to 4.4 percent this year.

              Growth Potential
              Africa’s average growth over the past 50 years has trailed only China’s, according to Verghese. With Nigeria forecast to grow at 4.8 percent next year and Ghana at 6 percent, that’s poised to continue.

              Some brands owned by Olam are already household favorites in Africa, including Chic Choc biscuits, Tasty Tom tomato paste and Cherie instant noodles. In Nigeria, the most-populous African nation with 178 million people, Olam’s brands are ranked in the top two in five out of eight food categories, and it’s the most-preferred manufacturer of creams and wafers and confectionery sweets, according to the company.

              Middle Class
              The increase in per-capita income in Africa to about $4,000 a year has also driven growing consumption of food staples in the estimated 90 million emerging middle-class households, Verghese said. Instead of expanding reach across many more countries, Olam will focus on strengthening its position, limiting its total capital employed in any one African country to 10 percent.

              “We don’t think we will get into many more new countries — there’ll be one or two countries we’ll get into. It’s going to come from getting deeper into and investing more into our existing geographies,” Verghese said. “I don’t think there are successful just noodle manufacturers, or just pasta manufacturers. The successful players are all integrated players."

              Olam this year bought wheat mills and pasta-making plants from one of Nigeria’s biggest millers, BUA Group, for an enterprise value of $275 million, a move that will double its milling capacity in the sub-Saharan region.

              Some 30 percent of Olam’s future expansion will come from the food sector and industrial raw materials, including rubber, cotton and wood, while 70 percent will be greenfield acquisitions. In Gabon, it inked government partnerships to develop oil palm and rubber plantations, including a $500 million investment to cultivate around 50,000 hectares of the oil palms. It has also taken up 49 percent equity in another Gabonese government program to develop another 70,000 hectares of palm. It’s also currently looking at expanding timber and wood production in the Republic of Congo.

              “Africa’s growth will be long term, and it will continue to grow for the next 40 to 50 years," Verghese said. “We have particularly good operating and risk management capabilities to manage the African risk slightly different, or better, than a lot of others."
              Bloomberg
              22 March

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