Industry

Volkswagen has consistently developed machines that seek to fit the consumers’ needs in different regions with the best powerful cutting-edge cars and this time it is targeting young professionals essentially.

Launching its 6th locally assembled Volkswagen brand of T-Cross at DT Dobie, the VW company wants to provide comfort and technology-advanced cars made at the KVM facility in Thika, Kiambu County, and a venture that has also offered job creation.

Volkswagen brings its clients a blend of stylish design, safety features, innovative technology, and comfort-first enhancements. With a capacity for up to five adults, a multi-color digital cockpit (Topline), an 8-inch infotainment system, and LED headlamps for low and high beams add to the stylish features.

“The key safety features in both models are a rearview camera, tire pressure monitoring system, electronic immobilizer, auto-dimming interior review mirror, and park distance control that completes the drive experience,” Ndala said while launching the new Volkswagen T-Cross at the DT Doble showroom on Lusaka Road, Nairobi.

The locally assembled T-Cross SUV is a compact crossover SUV, coming in two trim specifications: T-Cross Highline and Topline, with a 1.6 liter and 108 horsepower fuel-efficient engine mated with a six-speed automatic transmission.

T-Cross has majorly focused on innovative technology offering a mobile phone interface, and wired and wireless App connection allowing the driver to connect to the digital world through the mobile phone which can be charged wirelessly by simply laying it in the Inductive charging tray.

According to Managing Director Chris Ndala, this model is made for Kenyans and will be a buddy for trip-doers as it offers comfort and compactly avails the modern touch of technology. coming after the earlier 2016 launch of the Volkswagen Polo has so far been received well by the Kenyan market.

“The long list of safety equipment includes Anti-locking Brake System (ABS), Anti-spin regulation (ASR) electronic stability control, engine drag torque control, cruise control, and electronic immobilizer,” he said.

The Highline T-Cross sells at 3,600,000.00 million (inclusive VAT) and is slightly different from the other that’s the Topline going for 4,300,000.00million (inclusive VAT).

Despite the recent surge in Covid19 infection worldwide, African Airlines Association (AFRAA) has announced an increase in African airlines’ capacity.

The Airline Association has projected a 67.3 per cent increase in passenger volume compared to 2019, this with a traffic spike of 56 per cent.

The association also reports that flights in the domestic market remained bullish with the biggest share for both capacity and actual passenger carried.

“Domestic demand at 46.5 per cent outperformed intra-Africa and intercontinental which remained subdued at 31.3 per cent and 22.3 per cent for intra-Africa and intercontinental respectively,” the report read in part.

This comes just as the number of cases has been reported to be11.7 million in Africa. The recovery rate is 98.5 per cent worldwide compared to 97.7 in Africa following lifting of restrictions on covid lockdowns.

The Association also identified Five African airlines which continued their international routes expansion drive and had surpassed the number of international routes operated pre-Covid.

“10 other African airlines either re-opened suspended routes or launched new international routes. As of February 2022, African airlines had reinstated approximately 79.9 per cent of their pre-Covid international routes,” the report noted.

The Intra-African connectivity reached 72 per cent of the pre-covid level in February. It is estimated to increase to 75 per cent in March because of easing of anti-covid19 restrictions in several African countries.

New Routes

In Algeria, connectivity increased due to the reopening of many destinations particularly to West Africa.

Ethiopian airlines, Royal Air Maroc and EgyptAir are among airlines that opened new routes to African destinations in the reporting period.

Across Africa in general, passenger traffic volumes remain depressed.

However, with the relaxation of lockdown and Covid-19 restrictions in many countries, traffic is set to rise. Airline revenues remained low with many operators battling with cash-flow issues.

Full year revenue loss for 2022 is estimated at US$4.7b, equivalent to 27.3% of the 2019 revenues. In 2021, African airlines cumulatively lost $8.6b in revenues due to the impact of the pandemic, representing 49.8% of 2019 revenues.

Fuel price hike

To add insult to injury, the conflict between Russia and Ukraine has triggered jet fuel price increases globally. In Africa, the jet fuel price hike is worrying and has the potential to slow down the travel recovery.

Platts estimates that the total impact of the price increases on the overall jet fuel bill will reach $86.3 billion based on an estimated average price of $115 per barrel.

In spite of encouraging vaccination, AFRAA has announced that States should not impose mandatory vaccination as a pre-entry and exit requirement for travel until satisfactory access to vaccines and reasonable vaccination coverage is attained.

The Airline Association urges governments to remove the PCR test requirements for fully vaccinated passengers.

Although different sectors were exposed to and impacted in diverging ways to the extensive changes of the COVID-19 pandemic, Small and Medium Enterprise (SME) confidence across most sectors is on the rise, according to the latest research by Mastercard.

The inaugural Mastercard Middle East and Africa (MEA) SME Confidence Index found that 74% of SMEs in construction and manufacturing are optimistic about the next 12 months. Confidence levels were highest among businesses in retail, closely followed by food, beverage and entertainment. Construction and manufacturing had the best forecasts, with 76% of SMEs projecting revenues that will either grow or hold steady. Half (50%) are projecting an increase.

Access to training, credit and data key for future growth

As many regional economies gradually enter the normalization and growth phase, and social restrictions continue to ease, small and medium sized businesses in the MEA region’s construction and manufacturing sector have identified upskilling staff (56%), easier access to credit (56%) and better data and insights (52%), as the top drivers for growth. This highlights the opportunities for small businesses that arise from both internal transformation as well as industry regulations and trends.

Making sure that SMEs have all the support they need to go digital and grow digital is a key focus for Mastercard. The company works closely with the government, financial organizations and the wider business community to create opportunities for the small business sector.

Solutions that go beyond getting paid

For many small businesses, reducing their dependence on cash through digital payments acceptance, has played a major factor in being able to get paid and maintain revenues.

Mastercard offers technology, data-driven insights, consulting and predictive analytics solutions to empower businesses to acquire new customers, enhance customer loyalty and improve operations.

Mastercard has pledged $250 million and committed to connect 50 million micro, small and medium size businesses globally to the digital economy by 2025 using its technology, network, expertise and resources in support of the company’s goal of building a more sustainable and inclusive digital economy. As part of these efforts, Mastercard is focused on connecting 25 million women entrepreneurs.

“As manufacturing and construction businesses continue to build back better through a combination of digital transformation and people development, they are also encouraging other SMEs in this sector. At Mastercard will look forward to a seamless continuation of supporting the SME ecosystem, providing the payments technology infrastructure and wider business solutions that will spur wide, inclusive growth of the digital economy,” said Amnah Ajmal, Executive Vice President, Market Development, Middle East and Africa, Mastercard.

Rising costs and maintaining staff among concerns

When asked about the main thing that keeps them up at night, 54% of regional SMEs in construction and manufacturing mentioned the challenge to maintain and grow their business was their top issue. Looking at concerns over the next 12 months, six in ten (60%) identified the rising cost of doing business, while 47% cited access to capital.

From an operational perspective, concerns for the next year include maintaining current staff levels (47%), training and upskilling staff (44%), finding the right talent for new needs (39%) and mental and physical wellbeing (39%) – highlighting the growing trend around the development of people as a key theme for small business success.

Benefits of a cash-free economy

Growing confidence levels in digital as a business imperative, is tied to a deeper understanding and wider recognition among SMEs of the advantages that result from a growing digital economy. When asked about the biggest benefits of a cash-free economy to their businesses, SMEs in construction and manufacturing stated the ease of not processing cash (48%) and more convenient payment of suppliers and employees (47%).

The area where most construction and manufacturing businesses in the region say they now need support, is in help managing or upskilling teams (55%). SMEs in this sector also want access to a wider range of financial services (55%) and effective regulatory support from government (54%).

As consumer trends evolve in a post-pandemic world, businesses must adapt and prepare for the future. Late last year, a Mastercard study showed that 73% of consumers in the Middle East & Africa are shopping more online than they did since the start of the pandemic. Furthermore, new payments methods are gaining ground and 9 in 10 shoppers would consider making a purchase with an emerging payment technology over the next year, including cryptocurrency, biometrics, contactless, QR codes, digital wallets and wearables.

Consumer passion for the environment is also growing, with 7 in 10 believing it’s more important for businesses to do more for the environment, and 25% in the Middle East saying they would stop buying from businesses that do not behave sustainably.