Africa’s consumer business is the sector to watch in coming years

News Kenya

Jay Ireland, president and CEO of General Electric Africa. Photo/FILE 

By MWAURA KIMANI

Posted  Saturday, December 22  2012 at  18:02

In Summary

About Jay Ireland

• Ireland is the president and chief executive of GE Africa.
• He is also a member of its corporate executive council.
• Prior to this appointment, he led GE Asset Management (GEAM), a global investment firm with about $120 billion in assets, including portfolios for institutional investors around the world as well as those of GE’s US employee pension and benefits plans.
• GE’s products and services range from aircraft engines, power generation, water processing and household appliances to medical imaging, business and consumer financing and industrial products.
• It serves customers in more than 100 countries.

General Electric, the largest US conglomerate upgraded its Nairobi office early this year to a regional hub serving its sub-Saharan Africa business.

Over the past one year, the manufacturer of large-scale industrial products has also sealed several deals on the continent as its seeks more opportunities in Kenya, Uganda, Tanzania and Rwanda.

Mwaura Kimani spoke to the president and CEO of GE Africa, Jay Ireland on doing business in the region and the firm’s strategy for the continent.

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What is GE’s strategy for East Africa and what should the region expect?

We set up our headquarters in Nairobi based on the realisation that we needed a larger presence in East Africa. Our focus is healthcare and energy projects. We plan to invest over $100 million in two wind power projects in Kenya starting next year.

We are in the final stages of negotiations with Kenya Power on a Power Purchase Agreement and hope to break ground next year. The plan is to generate close to 150MW in projects at Kinangop, central Kenya.

In Tanzania, our focus is on power projects especially on natural gas. In Uganda, we do not have a presence yet but we are looking at it come 2013.

In Kenya some of our biggest customers are Kenya Airways and Rift Valley Railways to whom we supply engines. Across East Africa, we are increasing our investments in medical equipment as well as supplying jet engines for companies like RwandAir and other regional airlines.

Most African countries have huge infrastructure plans. Given that such projects are capital intensive, where will the funds come from?

In Africa, the traditional financiers of such projects have been development institutions like the World Bank and IMF. Now we are seeing global as well as local banks getting involved.

The next step is to see private equity and sovereign funds getting on board. Pension funds too are changing focus and financing big infrastructure projects. It is no longer just a government-sponsored initiative; more private firms are coming up.

Human capital is becoming the arsenal for growth and the single tool each company needs to navigate the business terrain. Where are the skills gaps in Africa?

With growing investments on the continent, there is a need to build capacity. We have good luck in pulling business-oriented people together but there is a need for more investments in the hard technical stuff.

Governments have to take the responsibility of educating their people up to a certain level, say secondary school. Private companies can then enlist these graduates and train them in specific skills. Governments need to work alongside the private sector.