Category: Business News & Insight

Expansion

Intra-Continental Trade Expansion to Take Centre Stage in New Focus Report on Africa

Posted on | by Akeela Zahair

African Economic Zones Organisation and Oxford Business Group to team up for latest project on region’s growth story

A new focus report, produced by Oxford Business Group (OBG) in partnership with the Africa Economic Zones Organisation (AEZO), will explore the potential that the African Continental Free Trade Area (AfCFTA) holds as a driver of intra-regional trade by linking local markets.

Titled “Special Economic Zones in Africa”, the report will provide in-depth analysis of the continent’s potential for enhanced regional integration in an easy-to-navigate and accessible format, focusing on key data and infographics relating to Africa’s socio-economic landscape.

The report will shine a spotlight on Africa’s special economic zones (SEZs), examining in detail the part they are expected to play in galvanising industrialisation and trade facilitation across borders.

It will track the developments under way in individual AEZO member countries, analysing key data across a wide range of metrics, such as such as trade volumes, business models, regulatory frameworks and access to finance.

Other topical issues analysed will include the impact of Covid-19 on intra-African trade and how these are being addressed.

In the report Ahmed Bennis, Secretary-General, AEZO, will share his thoughts on a wide range of issues, including how SEZs can leverage rising demand across the continent for industrialisation, with the AfCFTA now active.

“Special economic zones have a key role to play in enhancing the attractiveness of the African markets, while contributing to the expansion of local economies,” he said. “I look forward to tracking their development with Oxford Business Group and exploring what SEZs can do to boost investment in this important and timely report.”

Commenting ahead of the report publication, Karine Loehman, OBG’s Managing Director for Africa, said SEZs were taking centre stage in Africa’s efforts to attract FDI, with more than 200 now established across the continent.

“Challenges to their development remain, such as access to land and provision of power,” Loehman said. “However, the opportunities to play a part in Africa’s growth story by developing the essential industrial, logistic and service activities that companies need are huge.”

The focus report on Africa will form part of a series of tailored reports that OBG is currently producing with its partners, alongside other highly relevant, go-to research tools, including a range of country-specific Growth and Recovery Outlook articles and interviews.

UAE jobs

Cloud and Microsoft Ecosystem Will Create 13,100 Jobs in Kuwait by 2024

Posted on | by Akeela Zahair
  • The country’s spending on public cloud services is expected to reach $112.3 million by 2024

Kuwait is accelerating its adoption of technology with large-scale investments that will create 13,100 new jobs in the economy, enabled through cloud and Microsoft’s ecosystem, according to new research by the International Data Corporation (IDC). This expansion results from an expected 3.5 times rise in public cloud services in the country, from approximately $32.0 million in 2019 to $112.3 million in 2024.

This IDC White Paper discusses the impact that IT, cloud services, and the Microsoft ecosystem will have on Kuwait’s economy during the 2019–2024 period. It builds on more than a decade of analysis around the economic impact of IT on local economies. The study finds that together with investments in public, private, and hybrid cloud solutions, the Kuwaiti economy will enable businesses to generate nearly $1.3 billion in net new revenues over the next five years. The report further stated that Microsoft ecosystem is projected to add 8,200 net new jobs to the Kuwaiti economy.

“Cloud computing is a crucial pivot to successfully transitioning through the digital transformation. And we have dedicated ourselves to spreading the culture of the cloud and other impactful technologies such as AI, and data analytics, within the public and private sectors through the many tech-influenced initiatives,” said Dr. Ammar Alhusaini, Deputy Director General at Central Agency for Information Technology. “The current workforce requires the best in training and skilling, as we equip them with the right tools, knowledge, and know-how to enrich their journey in growth and building a brighter future for the country.”

The implementation of today’s smart tech will provide more job opportunities, improve customer experiences, and support the country’s goals and vision for boosting the stability and strengthening of the economy as a whole. And we can achieve these heights with our knowledge, creativity, and innovation in practice,” Alhusaini added.

“The government of Kuwait has embarked on a path toward becoming a fully digitized nation by 2035. The journey to the cloud is considered an integral element of its 2035 digital strategy, with the aim of improving the government’s performance and efficiency,” said Alaeddine Karim, Country Manager, Kuwait. “Microsoft’s efforts and investments in Cloud and AI are at the heart of Kuwait’s journey to achieve Kuwait Vision 2035 – this is why Microsoft has collaborated with the Central agency of information technology (CAIT) and the Communication and Information Technology Regulatory Authority (CITRA), in the form of various MoUs and partnership agreements, as we empower the government of Kuwait to achieve more.

The IDC report finds that continued investments across Kuwaiti industries in digital services and emerging technologies such as artificial intelligence/machine learning (AI/ML), analytics, automation, and mobility are accelerating cloud adoption in the country. Consideration is also given to the ongoing focus on public, private partnerships, as well as investments into small and medium-sized enterprises (SMEs), and increasing interest in hybrid-cloud and multi-cloud strategies.

“The country has a very ambitious national development plans outlined as “New Kuwait” in Vision 2035 that strives to diversify its economy through various transformations and modernization initiatives. And the use of cloud and AI is considered an integral element of its 2035 digital strategy,” said Manish Ranjan, Program Manager for Software & Cloud at IDC Middle East, Turkey and Africa (META).

“Government authorities such as the Communications and Information Technology Regulatory Authority (CITRA) and the Central Agency for Information Technology (CAIT) have been phenomenal in driving ICT modernization initiatives and collaborating with technology solution providers to develop the ICT skill sets that will be required in the future. The need for innovation and the rising use of public and private cloud services will drive Kuwait’s economic diversification, which will result in additional jobs,” continued Manish.

Cloud and AI services have already given birth to new professions. As COVID-19 shifts the world into a “new normal,” there is a strong need for workforce with digital skills, as companies are increasingly operating in a more digital and connected environment. This will, in turn, further drive rapid digital upskilling programs among non-technical workforce,” concluded Ranjan.

Egypt

2021 East Africa Trade and Industrialization Week Positions AfCFTA at the Heart of the East African Community Integration Process

Posted on | by Akeela Zahair

The 2021 East Africa Trade and Industrialization Week, which opened on August 31st in Dar es Salaam, Tanzania, centered the African Continental Free Trade Area (AfCFTA) as an impetus to the region’s integration process.

“The African Continental Free Trade Area is a crucial stage in achieving regional integration, which has remained a key objective of the East African Community as a means to sustainably develop economies,” Secretary-General of the East Africa Community, Hon. Dr. Peter Mathuki said at the opening of the East Africa Trade and Industrialization Week (EATIW).

Dr. Mathuki, who gave credit to EAC’s leadership in integration on the continent, added that strengthening the role and mandate of the private sector in driving the regional integration agenda is of paramount importance.

The Secretary-General said it was an opportune time for the bloc to develop the region’s own capacity in energy, roads, as well as smart infrastructure which, he said, were critical for the region to reap the benefits of AfCFTA.   

Held under the theme “Promoting Eastern African Region as a Preferred Gateway for Trade, Investment and Industrialization”, the five-day gathering brought together over 200 participants including business operators, policy makers, civil society leaders, international and UN organization leaders, academia from all avenues who will deliberate on how EAC member states will integrate the AfCFTA agenda, through network of Chambers, and business associations, and advance the EAC development agenda.

On his part, Hon. Prof Kitila Mkumbo, Minister for Industry and Trade of the United Republic of Tanzania stated that the theme resonated well with the East African Community’s vision and mission as it is consolidating its external trade policy by undertaking trade negotiations as a bloc with partners, a key feature of the implementation of AfCFTA. Therefore, he challenged the private sector to get involved in the integration process.

Kenya’s Chief Administrative Secretary for the Ministry of Industrialization, Trade and Enterprise Development, Hon. David Osiany emphasized the need for the AfCFTA to be accompanied by a massive scaling up of private and public cooperation to boost cross-border infrastructure on the continent.

“As the negotiations of the AfCFTA move forward”, Hon. Osiany stressed, “integrity and trust should be the main currencies that will drive trade and investment in the region.”

Also delivering opening remarks, Mr. Paul Faraj Koyi, the President of the Tanzanian Chamber of Commerce, Industry&Agriculture (TCCIA), while expressing his gratitude to the Government of the Republic of Tanzania, ¹urged all key stakeholders in the region to work towards the dream of an integrated region, under the auspices of AfCFTA.

Mr. Richard Ngatia, President of the Kenya National Chamber of Commerce and Industry (KNCCI) underlined that “the AfCFTA is a gift from Africa to Africa for Africa”.

Mr. Ngatia stressed that delegates should discuss and agree on their roles while deliberating on the main theme of the event.

This year’s East Africa Trade and Industrialization Week, organized by the European Union (EU), the East African Chamber of Commerce, Industry&Agriculture (EACCIA), the East African Business Council and the United Nations Economic Commission for Africa (ECA), features different sessions within the overall theme of regional trade to promote economic growth in the sub-region and the continent, at large. The five-day gathering also featured a Business Exhibition, which will further allow for EAC, African regional business and economic networks, to become increasingly active in trade and development affairs and work together to implement the African Continental Free Trade Area (AfCFTA)

This event is part of a more extensive project aimed at deepening Africa’s trade integration through the effective implementation of the AfCFTA. Financially supported by the European Union, ECA has been working with its partners including the African Union Commission (AUC), the International Trade Centre (ITC), the United Nations Conference on Trade and Development (UNCTAD) and a selection of independent trade experts to ensure effective AfCFTA implementation strategies.

Sustainable Packaging

Tetra Pak Pursue Sustainability Solutions for a Better Future

Posted on | by Akeela Zahair

This facet of the company’s DNA manifests itself in clear goals for a sustainable future that include 100% renewable packages by 2030 and carbon neutrality by 2050

Tetra Pak, the world leading food processing and packaging solutions company, has traditionally been ahead of it’s time within and outside the industry, in pursuing sustainable solutions for both customers and consumers. This facet of the company’s DNA manifests itself in clear goals for a sustainable future that include 100% renewable packages by 2030 and carbon neutrality by 2050.

With a value chain approach, sustainability includes responsible sourcing, lower carbon footprint, renewable materials, recyclability and recycling itself, all while ensuring efficiency, cost effectiveness, food safety, food preservation and reduction of food waste and availability across the plant.

On this journey towards a more sustainable planet, Tetra Pak Arabia Area launched the “Go nature. Go Carton.” campaign to draw attention towards the climate challenge and inspire people to learn more about the environmental impact of food packaging, and Tetra Pak’s efforts to address these issues.  For its work so far, Tetra Pak has recently been recognized as one of the Top 50 Sustainability and Climate leaders.

By 2050 the world’s population is predicted to reach 9.1 billion, which will require an increase of 70% in food availability. Packaging helps keep food safe, nutritious, and available. And, with 33% of food lost or wasted each year, high-performance packaging plays a critical role in today’s global food delivery system. Tetra Pak believes that sustainable food processing and packaging solutions can make a difference, feeding a growing population while helping mitigate climate change and address other environmental concerns.

Tetra Pak cooperates with many key players across the value chain, alongside more than 170 recycling operations around the world, to advance the entire recycling value chain. By strengthening global carton recycling infrastructure, the company can ensure cartons are transformed into new raw material and products, keeping valuable resources in use to help build a circular economy.

“High-performance food packaging plays a critical role in feeding the world, but it must do so sustainably, so that food availability does not come at the cost of the planet. This lies behind Tetra Pak’s commitment to making food safe and available, everywhere, in a way that protects what’s good – protecting food, protecting people as well as protecting the planet. To minimise climate impact while helping to ensure food security for the future, we are taking a full life cycle view of our solutions”, said Niels Hougaard, the Managing Director of Tetra Pak Arabia Area and Cluster Leader Sales Management for Greater Middle East & Africa.

“We are seeking opportunities across the entire recycling value chain to improve how cartons get recycled. We see it as our fundamental obligation to support collection, sorting and recycling of packaging. That’s why, in synergy with food manufacturers, municipalities, recyclers and other stakeholders across the industry, we are on a journey to develop and scale the recycling of paper-based cartons, helping to make them the world’s most sustainable food package. We are also driving consumer engagement around recycling in cooperation with our customers and partners . It is also worth mentioning that in Saudi Arabia, we have formed the first-of-its-kind recycling partnership in the region with OPI “Obeikan Paper Industries” to recycle paper of collected post-consumer cartons . OPI  have their own company-wide waste management and is ready to start working on programmes that increase collection and contribute to a sustainable recycling value chain. In addition to that, a new recycling partnership with STP “Saudi Top Plastics Factory”, the leading plastic recycling plant in the region, was formed to recycle the remaining plastic and aluminium compound residue resulting from cartons recycling at OPI. STP brings 15 years of experience in its scope, carrying a capacity to recycle about 50 thousand tons of plastics annually. All these developments come together to ensure that our packages can be fully recycled”, he added.

Tetra Pak cartons contain about 70% paperboard produced from wood fibers, that are responsibly sourced. Tetra Pak operates in accordance with the FSC™ voluntary sustainability standards and 100% of the paperboard it uses is FSC™-certified. This means that all the forests, which are a primary source of the raw materials for paperboard production, are managed in a way that protects biodiversity and ensures regeneration. The company has been working to increase the percentage of cardboard in its packages and keeps incfeasing its efforts to ensure that raw materials for manufacturing come from responsible and sustainable sources.

Africa Trade

African Continental Free Trade Area Strongly supports bid of Made in Africa to buy Vlisco

Posted on | by Akeela Zahair

It has been brought to the attention of the African Continental Free Trade Area (AfCFTA) Secretariat that our strategic partner, a leading African financial institution supported a $200 million bid by Made in Africa to purchase Vlisco, a textile company that sells almost exclusively in Africa. Whilst we respect the rights of parties in a private transaction, as a matter of public interest for Africa’s market integration, regional and global competitiveness, we do find it curious that the bid of Made in Africa was rejected by the seller. We totally support the bid by Made in Africa, which is financially backed by one of the leading trade finance banks in Africa.

The objective of the AfCFTA is to accelerate industrialisation in Africa, consolidate an integrated market of over 1.3 billion people with a combined GDP of US$3.4 trillion and to place Africa on a sustained path to regional and global competitiveness. At the heart of Africa’s global and regional competitiveness is the textiles and clothing sector. This sector employs thousands of Africans, mainly women and contributes to Africa’s industrialisation.

Whilst we respect the rights of parties in a private business transaction to structure their business transactions as they see fit, we do believe that the sale of Vlisco to Made in Africa, is in the broader economic and trade interests of Africa, hence as the AfCFTA Secretariat we are following this matter closely. We therefore urge the successful conclusion of this transaction in favour of Made in Africa, which is backed by the leading financial institution, and led by Mr. Kojo Annan, the entrepreneurial son of the late Mr. Kofi Annan, along with other African fashion and business luminaries.

“We cannot express a value judgement as to the reasons for the bid of Made in Africa – which was the higher bid – being rejected. We do however firmly believe that where an African company puts forward a formidable bid for a foreign company that appears to profit exclusively from sales to Africa, supported by a leading African trade finance bank, the African company has a reasonable expectation to successfully conclude the transaction in favour of Africa” says Wamkele Mene, Secretary General of AfCFTA.

We strongly urge reconsideration of this matter, the entire African continent and business community of Africa is following this matter very closely, African entrepreneurship and global competitiveness must be treated fairly.

Upskilling

Ecobank Group and Microsoft Upskill Africa’s Small and Medium Enterprises to Succeed in a Digital Economy

Posted on | by Akeela Zahair

The leading pan-African banking group, Ecobank Group (www.Ecobank.com), in partnership with Microsoft, LinkedIn, GitHub and Ecobank Academy is set to provide training to equip Small and Medium-sized Enterprises (SMEs) across sub-Saharan Africa. This training will provide SMEs digital skills and knowledge to succeed in today’s digital world.

SMEs have been significantly impacted by the COVID19 pandemic with its attendant lockdowns and disruptions to supply chains, plummeting sales, lost revenue and operational challenges. In response to feedback from our customers, Ecobank through its Commercial Banking Segment is helping business owners close the digital skills gap within their chosen fields and improve the digital capabilities of their employees.  

Josephine Anan-Ankomah, Group Executive, Commercial Banking for the Ecobank Group said: “The COVID-19 pandemic has turbocharged the shift towards digital. It is essential that businesses adapt so that they are able to compete effectively in today’s rapidly changing landscape. Ecobank’s Commercial Banking is committed to supporting SMEs across our pan-African footprint. Through this partnership with Microsoft, LinkedIn, GitHub and Ecobank Academy we are offering training to equip business owners and their employees with the digital skills that they need to stay connected to their customers. We are intent on ensuring that our SME customers remain relevant, grow and succeed in the post COVID-19 era.”

SMEs have been invited to register here (https://bit.ly/3iEspdc)for the upcoming webinar taking place on July 26. The Global Skilling initiative program is available on an online portal where SMEs can register, and start their learning journey for any of the 10 in-demand skill sets (Customer Services; Digital Marketing; Financial Analysis; Graphic Design; IT Support/Help Desk; Project Management; Sales; Data Analysis; IT Administration; And Software Development). They can complete the virtual programme at their own pace and at times that work best for them. The programme runs until 31st of December 2021.

Ibrahim Youssry, Regional General Manager, Middle East and Africa – Multi market region at Microsoft said, “we are committed to building digital talent pipelines to support the workforce of the future, and our Global Skilling Initiative is an important part of this process. But beyond the future workforce, digital talent will also support more local innovation, as developers and entrepreneurs are empowered to create locally relevant solutions that best address the challenges and needs of African countries. Startups and SMEs play a critical role in innovation, economic growth and job creation, and expanded access to digital skills is one of the key steps needed to foster a successful economic recovery.”

The Global Skilling Initiative is just another example of how Ecobank wants to help SMEs reach their full potential and play a vital role in driving Africa’s economic resurgence. Other support initiatives for SMEs include:

  • The Ecobank Marketplace eCommerce solution for businesses to grow their sales on digital marketplaces
  • And the Ellevate programme to provide women-led/owned/focused businesses with loans, cash management solutions, training and mentoring opportunities.
Global Emissions

With Only 2% of Governments’ Recovery Spending Going to Clean Energy Transitions, Global Emissions are Set to Surge to An All-time High

Posted on | by Akeela Zahair

Governments worldwide are deploying an unprecedented amount of fiscal support aimed at stabilising and rebuilding their economies, but only about 2% of this spending has been allocated to clean energy measures, according to new analysis from the International Energy Agency.

The sums of money, both public and private, being mobilised worldwide by recovery plans fall well short of what is needed to reach international climate goals. These shortfalls are particularly pronounced in emerging and developing economies, many of which face particular financing challenges.

Under governments’ current recovery spending plans, global carbon dioxide (CO2) emissions are set to climb to record levels in 2023 and continue rising in the following years. This would leave the world far from the pathway to net-zero emissions by 2050 that the IEA set out in its recent Global Roadmap to Net Zero.

These findings come from the new Sustainable Recovery Tracker that the IEA launched today to help policy makers assess how far recovery plans are moving the needle on climate. The new online tool is a contribution to the G20 Ministerial Meeting on Environment, Climate and Energy in Naples, which takes place on 22 and 23 July under the Presidency of Italy.

The Tracker monitors government spending allocated to sustainable recoveries and then estimates how much this spending boosts overall clean energy investment and to what degree this affects the trajectory of global CO2 emissions. The Tracker considers over 800 national sustainable recovery policies in its analysis, which are publicly available on the IEA website.

“Since the Covid-19 crisis erupted, many governments may have talked about the importance of building back better for a cleaner future, but many of them are yet to put their money where their mouth is. Despite increased climate ambitions, the amount of economic recovery funds being spent on clean energy is just a small sliver of the total,” said Fatih Birol, the IEA Executive Director.

Governments have mobilised USD 16 trillion in fiscal support throughout the Covid-19 pandemic, most of it focused on emergency financial relief for households and firms. Only 2% of the total is earmarked for clean energy transitions.

In the early phases of the pandemic, the IEA released the Sustainable Recovery Plan, which recommended USD 1 trillion of spending globally on clean energy measures that could feature prominently in recovery plans. According to the Plan – developed in collaboration with the International Monetary Fund – this spending would boost global economic growth, create millions of jobs and put the world on track to meet the Paris Agreement goals.

According to the Tracker, all the key sectors highlighted in the IEA Sustainable Recovery Plan are receiving inadequate attention from policy makers. Current government plans would only increase total public and private spending on clean energy to around USD 350 billion a year by 2023 – only 35% of what is envisaged in the Plan.

The Tracker shows the stark geographic disparities that are emerging in clean energy investment. The majority of funds are being mobilised in advanced economies, which are nearing 60% of the investment levels envisaged in the Sustainable Recovery Plan. Emerging and developing economies, many of which have limited fiscal leeway, have so far mobilised only about 20% of the recommended spending levels.

“Not only is clean energy investment still far from what’s needed to put the world on a path to reaching net-zero emissions by mid-century, it’s not even enough to prevent global emissions from surging to a new record. Many countries – especially those where the needs are greatest – are also missing the benefits that well planned clean energy investment brings, such as stronger economic growth, new jobs and the development of the energy industries of the future,” Dr Birol said.

“Governments need to increase spending and policy action rapidly to meet the commitments they made in Paris in 2015 – including the vital provision of financing by advanced economies to the developing world,” Dr Birol added. “But they must then go even further by leading clean energy investment and deployment to much greater heights beyond the recovery period in order to shift the world onto a pathway to net-zero emissions by 2050, which is narrow but still achievable – if we act now.”

Saudia Airlines

SAUDIA Airlines Partners with GE Digital for Digital Transformation

Posted on | by Akeela Zahair
  • Cloud-based solution digitizes, indexes, and archives maintenance records, connects records and data of internal and external operations, facilitates documentation between airlines and lessors, and matches maintenance records to relevant Maintenance & Engineering systems


GE Digital today announced that SAUDIA Airlines company has contracted with the leading industrial software company to implement its Aviation Software Asset Records solution. The contract extends the partnership between SAUDIA and GE for creating further operational efficiencies and cost optimization.

The GE Digital Asset Records system makes it easy for operators to streamline records management with a single, cloud-based solution. Airlines can digitize, index, and archive all maintenance records and match those records to the relevant M&E (Maintenance & Engineering) system. In addition, they can connect the records and data of internal and external operations and easily facilitate documentation between airlines and lessors.

By implementing Asset Records, SAUDIA anticipates benefits such as a reduction in records management overhead, time savings for engineering, easier data retrieval, optimization of the transfer of assets between the airline and other entities, and more. The airline will be utilizing GE Digital’s Asset Transfer System to streamline and simplify the way leased-asset documentation is managed with lessors, as well as MRO Connect, Workflow Management, and M&E Systems Integration. In addition, the solution includes expert professional services for the digitization of all historical backlog and help the Saudia team with day-to-day management of tech records processes and asset transfer packages.

  • MRO Connect allows extension into additional cloud-based systems
  • Workflow Management allows users to manage error correction and paperwork remediation between the carrier and its outsourced maintenance providers
  • M&E Systems integration enables query of production databases of M&E systems to support higher accuracy web indexing and post document links back to these database

 

Eng. Ahmed Al Wassiah, Chief Operations Officer at SAUDIA said, “SAUDIA places innovation among its top priorities when it comes to aircraft fleet and operations, and with this latest partnership with GE, it enables SAUDIA to transition to a seamless, all-digital solution for aircraft asset records management. With the expansion of the fleet and the airline’s aircraft modernization roadmap, an essential part of the 360 approach is to have an all-digital interface, providing real-time access to archived aircraft records, facilitating swift access to multiple features, records, and data.”

With Asset Records, airlines can streamline records management from capturing and correcting data, to searching and integrating with suppliers, connecting to existing processes and systems, and easily integrating into the workflow without worrying about compliance. Airlines can leverage highly accurate data and enable downstream analytics to improve operations.

“This contract represents a great digital partnership with one of the region’s biggest airlines,” said Andrew Coleman, General Manager for GE Digital’s Aviation Software business. “It is a great example of companies embracing the future of flight through sustainable operations, applying proven aviation practices to emerging technologies, and adapting to an increasingly digital world.”

Online Shopping

6 in 10 Saudi Consumers Expect to Return to Pre-COVID Normality in the Next 6 Months

Posted on | by Akeela Zahair

Alternative shopping options like Click & Collect, curb-side pickup (46%) and contactless In-Store experience like self-checkouts (27%), increased vaccination (15%) and continued protective and social distancing measures (12%) will be key to rebuilding Saudi consumers’ confidence to visit public places (stores and supermarkets) moving forward

 

  • 73% of consumers have admittedly changed their shopping habits to adapt to the “new normal” with expenditure on essential items showing a sustained increase, while spending on non-essentials continues to decline

Alternative shopping options like Click & Collect, curb-side pickup (46%) and contactless In-Store experience like self-checkouts(27%) will be key to rebuilding Saudi consumers’ confidence to visit public places (stores and supermarkets) moving forward. This is according to a study commissioned by Kearney; the third in a series of surveys exploring consumer shopping habits since the onset of the pandemic.

The results reveal that as spending habits continue to evolve, consumers in the Kingdom stay cautious, with 57% expecting the effects of the pandemic to last for the next 6 months. It also highlights that expenditure on essential items (which constitutes of food and grocery (F&B) as well as non-F&B items like health and wellness products) has shown a sustained increase with 45% of consumers moving to higher priced, better quality products, while spending on non-essentials (clothes, bags and accessories) continues to decline.

More than 80% of consumers have admittedly changed their shopping habits to adapt to the “new normal”, with those aged between 30-45 recorded the highest change (89%) followed by those from ages 46-60 and under 30 years of age at 84% respectively.

When looking more closely into how habits have changed, 18% have reduced expenditure on essential items by up to 50% compared to pre-pandemic, however, over 60% of respondents have increased spending by over 25%. Conversely, spending on non-essentials has decreased by 26%, with 45% of respondents increasing spend in this area.

Within the essential items’ category, 45% of respondents have upgraded to higher priced, better quality items, with the highest increase shown for meats and dairy (61%), as well as, fruits and vegetables (59%).

31% of respondents have highlighted that they expect to spend more on non-essentials in the coming months, particularly on casualwear (48%) followed by workwear (41%), evening wear (39%), activewear (36%), footwear (34%), and bags and accessories (27%).

“The pandemic has fundamentally changed the way consumers view health and safety measures and efforts. As residents adopt to the new normal, hygiene and hygiene transparency have become vital. Spending is being driven by the easing of restrictions, higher awareness of health and wellbeing, and expectations to return to the office,” commented Adel Belcaid, Partner at Kearney Middle East

As spending habits evolve, e-commerce continues to penetrate all categories. The survey highlights that consumers in the Kingdom are now more comfortable purchasing essentials online compared to last year. When questioned about the motivations behind this, COVID-19 prevention measures (39%) was the main driver, followed by convenience (36%), price (17%) and finally, assortments of products (8%).

COVID-19 prevention measures ranked third for online shopping for non-essential items (18%), preceded by convenience (34%) and price and assortment of products ranking equally at 24% each.

Interestingly, consumers are looking for more omnichannel journeys and innovative in-store models withalternative shopping options and continued protective and Contactless In-Store experience like self-checkouts being the key drivers of restoring consumer confidence in visiting public places and increased vaccination (15%) and social distancing (12%) being a lesser concernwith (16%) in increasing their confidence.

Saying this, 44% respondents highlighted an offline-shopping preference for essential items, and 35% for non-essential items, particularly for those products that require inspection for quality, freshness and fit.

“For Saudi consumers, convenience is driving online purchases with COVID-19 concerns becoming a secondary factor, indicating the sustenance of the online shift. However, the physical store still plays a strong role across all categories which require the customer to touch, feel and try the product. Retailers will need to adopt a differentiated strategy to make consumers feel safe in stores; consumers are heavily indexed towards alternative shopping options like Click & Collect, curb-side pickup and contactless in-store experience like self-checkouts; however, this will vary across markets and its essential for stakeholders, mall property owners and retailers to monitor the evolving face of retail to ensure they stay relevant,” concluded Belcaid.

Digitalisation

Digitalisation and Sustainability Are Top Priorities For Consumers in the Middle East, PwC Report Says

Posted on | by Akeela Zahair

The PwC Middle East report charts the shift in consumer attitudes after a period of upheaval

PwC Middle East launched the Middle East findings of the 2021 Global Consumer Insights Survey titled “More digital and sustainable: post pandemic priorities for Middle East consumers”  which takes a look at how consumer behaviour has changed as a result of COVID-19.

Undoubtedly, confidence is rising across the region, with 58% of Middle East consumers confirming that they have become more optimistic about the economy. Despite this confidence, our results indicate that the economic and social consequences of COVID-19 have impacted consumer behaviour and that those changes are here to stay. 

 

Key consumer trends accelerated by the pandemic: 

An accelerated shift to online and mobile shopping

  • 67% of regional consumers believe they have become more digital during the pandemic, compared to 51% of global consumers, particularly in Egypt where 72% of consumers confirmed that.
  • Mobile is now the main online channel for shopping, with 47% of regional respondents saying they use their smartphones most frequently for purchases, compared with 39% of global respondents.
  • A major consideration for Middle East consumers shopping online continues to be fast and reliable delivery with 38% of respondents ranking this as important.

In-store shopping is still important as part of multi-channel retail strategies

  • Despite the pandemic, 56% of the Middle East consumers, compared with 45% globally, prefer visiting physical stores.
  • 40% of consumers who shop in-store consider increased health and safety as one of the most important attributes for a physical store. Key safety measures that regional consumers highlighted include mandatory face masks (44%), social distancing (43%) and hand sanitisation stations (32%).

Price-sensitivity is increasing in the Middle East

  • 57% of Middle East consumers indicated that they have been more price oriented during the pandemic and 66% said they have been focused on saving.

Middle East consumers are more health conscious

  • 71% of Middle East consumers indicated that they have become more healthy during the pandemic. When shopping for groceries, 41% of respondents also said that they are willing to pay more for healthier options.

Socially aware consumers are on the rise

  • COVID-19 has reinforced the growing awareness of social and environmental sustainability with 65% of regional consumers reporting that they have become more eco-friendly during the pandemic.
  • 75% of Middle consumers say they buy from companies that are environmentally conscious, compared with 54% globally; and 72%, versus 55% globally, say they choose products with a traceable and transparent origin.

Older consumers are more likely to be focused on sustainability

Norma Taki, Consumer Markets Leader and Transaction Services Partner, PwC Middle East commented: “Digitalisation and sustainability are firmly at the top of consumers’ agendas. To prepare for the future, retailers across the region will need to be fast and agile to capture business from a rising generation of youthful, socially aware consumers who are digitally savvy.” 

She added: “The speed of the shift in consumer sentiment reflected by our findings is a reminder that retailers cannot afford to adopt a wait-and-see strategy as the region’s shoppers emerge from the pandemic and the related economic uncertainty and emotional stress. A new, digitised market is taking shape, which already looks increasingly different from the region’s pre-pandemic consumer landscape.” 

PwC adopted a ‘pulse’ approach for its 2021 Global Consumer Insights Survey in order to remain attuned to changes in the worldwide landscape and connected to the behaviours of the global consumer. The pulse surveys were put into the field in November 2020 and March 2021 and included respondents from the UAE, Saudi Arabia and Egypt.

Dubai urban

DEWA’s Redesigned Building Facilities & Services for People of Determination Support Dubai’s Urban Environment

Posted on | by Akeela Zahair

Dubai Electricity and Water Authority (DEWA) supports the design of the urban environment, and the people of Dubai, and the empowerment of People of Determination to become more productive and effective. This is done by providing its Customers and Employees of Determination with easy access to its services, buildings, and facilities, including its Customer Happiness Centres. DEWA upgraded all its buildings to be 100% compliant with the Dubai Universal Design Code in 2019. DEWA redesigned its Customer Happiness Centres to become easily accessible by People of Determination according to international standards, such as BSI8300, to provide a seamless and inclusive experience for them.

HE Saeed Mohammed Al Tayer, MD & CEO of DEWA, said that DEWA’s pioneering experience in including and empowering People of Determination aligns with the National Policy to empower People of Determination, launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to create an inclusive society that ensures empowerment and a decent life for People of Determination and their families. It also supports the ‘My Community… a City for Everyone’ initiative, launched by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai, to transform Dubai into a city that is accessible for People of Determination. DEWA currently has 6,137 employees trained to deal with People of Determination and 22 employees have earned sign language diplomas. DEWA currently has 29 Employees of Determination with various disabilities. Their happiness score was 99% and their families’ happiness was 96% in 2020. Customers of Determination scored their happiness with DEWA’s inclusive services at 95% and society happiness towards DEWA’s support for People of Determination was 94% in 2020.

DEWA provides Customers and Employees of Determination with smart systems and supporting services to enable them to access information and different facilities inside DEWA’s buildings. These include:

 

Braille Maps

DEWA provides interactive maps with an audio notification to provide People of Determination with information and directions to reach their destinations inside DEWA’s buildings. The maps include Braille writing and embossed letters to make them easier to read. These maps are located in all DEWA’s building entrances.

 

Hearing Loops

DEWA uses hearing loop technology, which is an advanced hearing aid technology design to assist people with hearing disabilities. The hearing loops transmit sounds through electro-magnetic waves so sounds reach the user clearly and are noise-free. Those loops are available at all Customer Happiness Centres, training halls and meeting rooms at DEWA’s buildings.

 

Interactive online learning

DEWA provides its technical and design employees with an electronic automated training for Dubai Universal Design Code application and technical supervision which increases their technical and field experience. Also, DEWA launched an awareness and training programme on the Dubai Universal Design Code and its requirements to become a key component of DEWA’s new joiners’ agenda. This introduces them to the Code’s applications, the reason for adopting it at DEWA’s buildings, and the importance of abiding by its regulations in all facilities and buildings.

 

People of Determination friendly Customer Happiness Centres

DEWA redesigned all of its facilities and buildings to be People of Determination friendly in all emergencies by placing audio and visual alarms, alarms in toilets, and evacuation wheelchairs on all floors. DEWA also provides for People of Determination a helpline for them in parking areas, wheelchair service, directional tactile paving for the visually-impaired, staff trained in sign language, service priority, screens for remote video chat, booklets in Braille, and other services to streamline transactions by People of Determination.

DEWA has developed an innovative solution for Customers of Determination who use hearing aids or cochlear implants. They can use the telepresence system on video chat screens equipped with hearing loops that improve sound quality and filter out background noise. This enables easier access for them with Customer Happiness Employees. The new system improves the quality of sound to ensure seamless transactions by People of Determination with hearing impairments.

 

Smart Channels for People of Determination

DEWA is committed to providing seamless access to information for Customers of Determination through its website, smart app, and customer care centre, according to Smart Dubai Government standards.

DEWA also launched several innovative and smart initiatives that support and empower People of Determination and make it easier to access information. DEWA has a dedicated section on its website to include and empower People of Determination. DEWA provides a wide range of comprehensive services and facilities at its self-service Customer Happiness Centres; Future Customer Happiness Centres; Customer Care Centre; and its website and smart app.

Vaccinations

Mastercard Foundation to Deploy $1.3 Billion in Partnership with Africa CDC to Save Lives and Livelihoods

Posted on | by Akeela Zahair

The Mastercard Foundation has announced that it will deploy $1.3 billion over the next three years in partnership with the Africa Centres for Disease Control and Prevention (Africa CDC) to save the lives and livelihoods of millions of people in Africa and hasten the economic recovery of the continent.

The Saving Lives and Livelihoods initiative will acquire vaccines for at least 50 million people, support the delivery of vaccinations to millions more across the continent, lay the groundwork for vaccine manufacturing in Africa through a focus on human capital development, and strengthen the Africa CDC.

“Ensuring equitable access and delivery of vaccines across Africa is urgent. This initiative is about valuing all lives and accelerating the economic recovery of the continent,” said Reeta Roy, President and CEO of the Mastercard Foundation. “In the process, this initiative will catalyze work opportunities in the health sector and beyond as part of our Young Africa Works strategy,” she added.

The African Union’s goal as set out in the African COVID-19 Vaccine Development and Access Strategy is to vaccinate at least 60 percent of its population – approximately 750 million people or the entire adult population of the continent – by the end of 2022. To date, less than two percent of Africans have received at least one vaccine dose.

The new partnership builds on the efforts of the COVID-19 Vaccines Global Access facility (COVAX), the COVID-19 African Vaccine Acquisition Task Team (AVATT), and the global community to expand access to vaccines across Africa. The number of vaccines available to Africa represents a small portion of the global supply and the financial costs to purchase, deliver, and administer vaccines remain significant. The Africa CDC is calling on governments, global funders, the private sector, and others to help meet this goal.

“Ensuring inclusivity in vaccine access, and building Africa’s capacity to manufacture its own vaccines, is not just good for the continent, it’s the only sustainable path out of the pandemic and into a health-secure future,” said Dr. John Nkengasong, Director of the Africa CDC. “This partnership with the Mastercard Foundation is a bold step towards establishing a New Public Health Order for Africa, and we welcome other actors to join this historic journey.”

In 2020, Africa faced its first economic recession in 25 years due to the pandemic. The African Development Bank has warned that COVID-19 could reverse hard-won gains in poverty reduction over the past two decades and drive 39 million people into extreme poverty in 2021. Widespread vaccination is recognized as being critical to the economic recovery of African countries.

The initiative builds on an earlier collaboration between the Mastercard Foundation and the Africa CDC to expand access to testing kits and enhance surveillance capacity in Africa. Through the Foundation’s support, the Africa CDC’s Partnership to Accelerate COVID-19 Testing (PACT) deployed nearly two million COVID-19 tests and more than 12,000 trained health care workers and rapid responders across Africa. In total, the PACT has enabled over 47 million COVID-19 tests across the continent.