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Africa 2030: Points of viewDo the reports on ‘Africa rising’ really reflect reality?Gareth AckermanGareth Ackerman is the Chair of Pick ‘n Pay, a leading South African retailer with operations in sixother Southern African countries.I am very positive about Africa. However, I am also sceptical aboutthe various reports being produced that market the ‘Africa rising’narrative. I am yet to be convinced that what is being marketed istrue.There is no doubt that major opportunities are emerging in manyparts of Africa. For a retail business like Pick ‘n Pay, the growth ofa middle class that can afford to shop in stores is one example ofan exciting opportunity. However, I am also concerned that manyof these opportunities are being exaggerated , and that the realchallenges that remain are being glossed over. This is not becauseI am sceptical about Africa’s growth potential, but rather becausethere are practical, social and political challenges that need to beaddressed if we are to realise that potential.Two Serious ChallengesProbably two of the most serious of these challenges relate to overpopulation and environmental sustainability.While Africa’s young and growing population certainly representsan opportunity from a consumer perspective, it also representsa threat to stability and sustainability. Already, we are seeingthe devastation and disappearance of natural habitats across thecontinent. As pressures to grow economies and feed more peoplecontinue to mount, there is a strong possibility that populationpressures will lead to natural resources being destroyed for futuregenerations.Speaking more specifically to business-related challenges, probablythe most significant issue for us is logistics and the difficultyexperienced in moving goods and people across borders. Regionalintegration is a fine concept, but our experience is that barriersare put up despite regional trade agreements. It is not only tradebarriers that are the problem; it is the entire system of customs,border control, logistics infrastructure, and related activities.Roads are being built, but often on the cheap, bureaucracy atborders remains a nightmare, and there seems to be very littlegenuine effort to improve things at ground level. It takes betweenfive and six days to transport goods via road from Johannesburgto Lusaka; a trip that should take two days at most. Logistics toother African cities via sea can be even worse, with goods routinelybeing held in port for months. The situation seems to be worsening,rather than improving.28

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