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The theme of the<br />

28th AU Summit<br />

<strong>Invest</strong><strong>in</strong>g <strong>in</strong> youth <strong>in</strong> order to<br />

harness demographic dividend<br />

Build<strong>in</strong>g the<br />

<strong>Africa</strong>n economy<br />

<strong>Invest</strong>ment <strong>in</strong> the land<br />

and the people<br />

Encourag<strong>in</strong>g trade<br />

across the cont<strong>in</strong>ent<br />

Latest updates on CFTA and<br />

other aspects of trade<br />

<strong>Africa</strong><br />

<strong>Invest</strong> <strong>in</strong><br />

An official publication<br />

of the <strong>Africa</strong>n Union<br />

28th AU Summit<br />

2017<br />

tourism<br />

develop<strong>in</strong>g<br />

youth<br />

<strong>in</strong>vest<strong>in</strong>g <strong>in</strong><br />

AGENDA<br />

2063:<br />

the africa we want<br />

regional INTERGRATION<br />

TRADE


Contents<br />

08 11<br />

12<br />

15 17<br />

HE Dr Nkosazana<br />

Dlam<strong>in</strong>i Zuma,<br />

Chairperson,<br />

<strong>Africa</strong>n Union<br />

Commission (AUC)<br />

HE Erastus<br />

Mwencha,<br />

Deputy<br />

Chairperson,<br />

AUC<br />

HE Dr Arikana<br />

Chihombori Quao,<br />

Ambassador of the<br />

<strong>Africa</strong>n Union to the<br />

United States<br />

Florizelle<br />

Liser,<br />

President & CEO,<br />

Corporate Council on<br />

<strong>Africa</strong><br />

Stephen<br />

Hayes,<br />

Former President<br />

& CEO, Corporate<br />

Council on <strong>Africa</strong><br />

AU NEWS<br />

Welcome to <strong>Invest</strong><br />

<strong>in</strong> <strong>Africa</strong> 2017<br />

13<br />

A brief look at what<br />

was achieved at the<br />

27th AU Summit <strong>in</strong> Kigali<br />

and other events over<br />

the past six months<br />

18<br />

Agenda<br />

2063<br />

update<br />

20<br />

The role of the<br />

<strong>Africa</strong>n Diaspora<br />

AFRICA’S ECONOMIC<br />

DEVELOPMENT<br />

Projects and programmes to<br />

help the <strong>Africa</strong>n economy<br />

23<br />

HE Dr Anthony Mothae<br />

Marup<strong>in</strong>g, Commissioner for<br />

Economic Affairs, AUC<br />

24<br />

<strong>Invest</strong><strong>in</strong>g <strong>in</strong> youth to harness<br />

economic potential<br />

29<br />

The expand<strong>in</strong>g f<strong>in</strong>ancial<br />

sector <strong>in</strong> <strong>Africa</strong><br />

BUILDING AFRICA<br />

Power, energy and<br />

<strong>in</strong>frastructure<br />

37<br />

HE Dr Elham Mahmoud Ahmed<br />

Ibrahim, Commissioner for<br />

Infrastructure and Energy, AUC<br />

38<br />

Renewable energy <strong>in</strong> <strong>Africa</strong><br />

42<br />

<strong>Invest</strong><strong>in</strong>g <strong>in</strong> <strong>in</strong>frastructure<br />

38<br />

Renewable<br />

energy <strong>in</strong><br />

<strong>Africa</strong><br />

46<br />

Develop<strong>in</strong>g <strong>Africa</strong>’s<br />

hydrocarbon resources<br />

48<br />

The <strong>Africa</strong>n M<strong>in</strong><strong>in</strong>g Vision<br />

54<br />

Fac<strong>in</strong>g the<br />

manufactur<strong>in</strong>g headw<strong>in</strong>d<br />

56<br />

The rise of <strong>Africa</strong>’s blue economy<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 3


SCIENCE &<br />

TECHNOLOGY<br />

The importance of driv<strong>in</strong>g<br />

development forward<br />

58<br />

HE Dr Martial De-Paul<br />

Ikounga, Commissioner for<br />

Human Resources, Science<br />

and Technology, AUC<br />

60<br />

<strong>Africa</strong> mov<strong>in</strong>g<br />

towards network read<strong>in</strong>ess<br />

64<br />

‘Smart cities’ and<br />

urbanisation <strong>in</strong> <strong>Africa</strong><br />

68<br />

Encourag<strong>in</strong>g women<br />

<strong>in</strong> STEM <strong>in</strong>dustries<br />

TRADE AND<br />

INTEGRATION<br />

Creat<strong>in</strong>g a connected cont<strong>in</strong>ent<br />

76<br />

Regional<br />

<strong>in</strong>tegration<br />

78<br />

One cont<strong>in</strong>ent with varied<br />

opportunities<br />

AGRICULTURE<br />

The evolution of the<br />

<strong>Africa</strong>n agriculture and<br />

agribus<strong>in</strong>ess <strong>in</strong>dustry<br />

86<br />

AUC and FAO’s<br />

agriculture mechanisation<br />

92<br />

W<strong>in</strong>s <strong>in</strong> <strong>Africa</strong>n agriculture<br />

HEALTH AND<br />

EDUCATION<br />

Information and <strong>in</strong>novation<br />

are key <strong>in</strong> end<strong>in</strong>g epidemics<br />

and terrorism<br />

95<br />

HE Dr Mustapha<br />

Sidiki Kaloko, Commissioner<br />

for Social Affairs, AUC<br />

96<br />

End<strong>in</strong>g AIDS, TB<br />

and malaria by 2030<br />

98<br />

The AU’s fight<br />

aga<strong>in</strong>st terrorism<br />

AFRICA AND THE<br />

WORLD<br />

How the new political<br />

landscape will affect <strong>Africa</strong><br />

102<br />

President Trump’s<br />

<strong>Africa</strong> policy<br />

104<br />

Trad<strong>in</strong>g <strong>in</strong> a post-Brexit world<br />

106<br />

A list of <strong>Africa</strong>n<br />

<strong>in</strong>vestment organisations<br />

110<br />

Index of<br />

advertisers<br />

70<br />

HE Fatima Haram Acyl,<br />

Commissioner for Trade and<br />

Industry, AUC<br />

72<br />

Towards a Cont<strong>in</strong>ental<br />

Free Trade Area<br />

86<br />

AUC and FAO’s<br />

agriculture<br />

mechanisation<br />

4 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


EUROPE, AFRICA, ASIA<br />

COMPETENCE ACROSS BORDERS<br />

Every AG undertak<strong>in</strong>g has the power to change lives<br />

and write new stories. For us, every project<br />

always beg<strong>in</strong>s and ends with the same goal:<br />

mak<strong>in</strong>g a difference <strong>in</strong> people’s lives.<br />

www.andradegutierrez.com


<strong>Africa</strong><br />

<strong>Invest</strong> <strong>in</strong><br />

2017<br />

Subscribe now at <strong>in</strong>vest<strong>in</strong>africa.media<br />

EDITORIAL<br />

Manag<strong>in</strong>g Editor<br />

Zoë Henry<br />

AU Editorial<br />

Senior Political Officer<br />

Tarek Ben Youssef<br />

AU Editorial Liaison<br />

Josepha Mushabe<br />

Musabyemariya<br />

Sub Editor<br />

Matthew Hutch<strong>in</strong>gs<br />

MANAGEMENT<br />

Chief Executive Officer<br />

Richard L<strong>in</strong>n<br />

SALES<br />

Sales Manager<br />

Laurie Pilate<br />

Sales Executive<br />

James Johnston<br />

Sales Executive<br />

David Friel<br />

Sales Executive<br />

Rachid Kadouri<br />

DESIGN<br />

realcp.design<br />

Newsdesk Media publishes a wide range of bus<strong>in</strong>ess and<br />

customer publications. For more <strong>in</strong>formation please contact<br />

Richard L<strong>in</strong>n, Chief Executive Officer.<br />

Pr<strong>in</strong>ted by Manson Group.<br />

An official publication of the <strong>Africa</strong>n Union<br />

<strong>Africa</strong>n Union Representational<br />

Mission to the United States of America<br />

1640 Wiscons<strong>in</strong> Ave NW<br />

Wash<strong>in</strong>gton DC 20007<br />

United States<br />

Tel: +1 (202) 342 1100 | Fax: +1 (202) 342 1114<br />

Email: au-wash<strong>in</strong>gton@africa-union.org<br />

Web: www.au.<strong>in</strong>t<br />

Published by<br />

www.newsdeskmedia.com Twitter: @newsdeskmedia<br />

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Tel: +44 (0) 20 7650 1600<br />

CONTRIBUTING AUTHORS<br />

Ebele Agu is Vice President<br />

of the Foundation Work<strong>in</strong>g<br />

to Advance STEM Education<br />

for <strong>Africa</strong>n Women<br />

Tapiwa Chiwewe is a<br />

Research Scientist at IBM<br />

Research – South <strong>Africa</strong><br />

Rachel Cumm<strong>in</strong>gs is a<br />

London-based writer with<br />

a background <strong>in</strong> <strong>Africa</strong>n<br />

peace and security issues.<br />

Joanne Davis is a South<br />

<strong>Africa</strong>n scholar of <strong>Africa</strong>n<br />

literature, literary theory<br />

and history<br />

Julius Erukilede is an<br />

<strong>Africa</strong>n Bus<strong>in</strong>ess Consultant<br />

focus<strong>in</strong>g on <strong>Africa</strong>n<br />

transport and logistics<br />

Trudi Hartzenberg is the<br />

Executive Director of Tralac<br />

Trade Law Centre<br />

Ruth Henwood Mathys is a<br />

masters candidate <strong>in</strong> public<br />

health who has been <strong>in</strong><br />

public health <strong>in</strong> for 11 years<br />

Calestous Juma is a<br />

Professor at the Kennedy<br />

School at Harvard<br />

Bisi Lamikanra is the Head<br />

of Management Consult<strong>in</strong>g<br />

at KPMG Nigeria<br />

Edw<strong>in</strong> Laurent is the<br />

Director of the Ramphal<br />

Institute and a Senior<br />

Adviser to the UNEP<br />

Ruari McCallion is a<br />

freelance journalist<br />

specialis<strong>in</strong>g <strong>in</strong> the<br />

manufactur<strong>in</strong>g <strong>in</strong>dustry<br />

Yas<strong>in</strong>e Mohabuth is<br />

a journalist based if<br />

Mauritius who focuses on<br />

the growth of the <strong>Africa</strong>n<br />

blue economy<br />

Duncan Pieterse holds a<br />

PhD <strong>in</strong> Economics and is a<br />

public sector economist <strong>in</strong><br />

South <strong>Africa</strong><br />

Carlo Ratti is a Professor<br />

at the MIT Department of<br />

Urban Studies and Plann<strong>in</strong>g<br />

Sarah Rundell is a bus<strong>in</strong>ess<br />

journalist with<br />

<strong>in</strong>ternational experience<br />

Witney Schneidman<br />

served as Deputy Assistant<br />

Secretary of State for<br />

<strong>Africa</strong>n Affairs<br />

Maria Helena Semedo is the<br />

Deputy Director-General for<br />

the Natural Resources<br />

Management and<br />

Environment Department<br />

of the FAO<br />

Julian Turner is freelance<br />

journalist who writes for<br />

a variety of national<br />

publications<br />

Pamela Whitby is an<br />

experienced reporter,<br />

writer and editor,<br />

specialis<strong>in</strong>g <strong>in</strong> <strong>Africa</strong>n<br />

bus<strong>in</strong>ess<br />

© 2017. The entire contents of this publication are protected by copyright. All rights reserved. No part of this publication may be reproduced, stored <strong>in</strong> a retrieval<br />

system, or transmitted <strong>in</strong> any form or by any means: electronic, mechanical, photocopy<strong>in</strong>g, record<strong>in</strong>g or otherwise, without the prior permission of the publisher.<br />

The views and op<strong>in</strong>ions expressed by <strong>in</strong>dependent authors and contributors <strong>in</strong> this publication are provided <strong>in</strong> the writers’ personal capacities and are their sole<br />

responsibility. Their publication does not imply that they represent the views or op<strong>in</strong>ions of the <strong>Africa</strong>n Union or Newsdesk Media and must neither be regarded<br />

as constitut<strong>in</strong>g advice on any matter whatsoever, nor be <strong>in</strong>terpreted as such. The reproduction of advertisements <strong>in</strong> this publication does not <strong>in</strong> any way imply<br />

endorsement by the <strong>Africa</strong>n Union or Newsdesk Media of products or services referred to there<strong>in</strong>.<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 5


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dPA 6083


Foreword<br />

The conditions are now optimal for a<br />

real and <strong>in</strong>clusive transformation to<br />

create a prosperous <strong>Africa</strong><br />

My fellow <strong>Africa</strong>ns,<br />

friends and<br />

partners of<br />

<strong>Africa</strong>. It gives<br />

me great<br />

pleasure to<br />

present to you <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017-<br />

the eighth edition of this annual<br />

publication that reflects on the<br />

cont<strong>in</strong>ent’s recent accomplishments<br />

and highlights the various<br />

opportunities it now offers to its<br />

citizens and the world.<br />

Positive trends<br />

Much has been achieved across <strong>Africa</strong><br />

dur<strong>in</strong>g the last four years. There are<br />

many positive trends on the cont<strong>in</strong>ent<br />

across the entire political and<br />

socio-economic spectrum. We are<br />

shift<strong>in</strong>g the emphasis from policy<br />

formulation and norms sett<strong>in</strong>g to the<br />

effective and swift implementation of<br />

our strategic frameworks and the<br />

transformative vision of the cont<strong>in</strong>ent<br />

enshr<strong>in</strong>ed <strong>in</strong> Agenda 2063 and its First<br />

Ten Year Implementation Plan.<br />

The conditions are now optimal for<br />

a real and <strong>in</strong>clusive transformation to<br />

create a prosperous <strong>Africa</strong>. The<br />

cont<strong>in</strong>ent is determ<strong>in</strong>ed to take its<br />

rightful place <strong>in</strong> the world, as a<br />

trad<strong>in</strong>g, knowledge produc<strong>in</strong>g region<br />

of <strong>in</strong>novation and technological<br />

development. Regional <strong>in</strong>tegration and<br />

cooperation, which are the key drivers<br />

of this process, have deepened and<br />

expanded considerably dur<strong>in</strong>g the last<br />

fifteen years. A strong momentum <strong>in</strong><br />

<strong>Africa</strong> to work on cont<strong>in</strong>ental and<br />

regional basis has been re<strong>in</strong>forced to<br />

seize numerous opportunities and<br />

address common challenges that<br />

cannot be solved solely at the national<br />

level. In this context, we have placed a<br />

particular emphasis on domestication<br />

of Agenda 2063, whose broader<br />

priorities encompass the 2030<br />

Susta<strong>in</strong>able Development Goals, to<br />

become an <strong>in</strong>tegral part of national<br />

development plans and budgets of our<br />

Members States. The two agendas are<br />

strongly aligned to promote shared<br />

prosperity, <strong>in</strong>clusive and<br />

people-centred development.<br />

Our cont<strong>in</strong>ental priorities<br />

constitute the basis of our role and<br />

engagement with the rest of the world.<br />

In this particular regard, we have<br />

8 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


Foreword<br />

HE Dr<br />

Nkosazana<br />

Dlam<strong>in</strong>i Zuma<br />

Chairperson, <strong>Africa</strong>n Union Commission<br />

attached importance to the<br />

revitalisation and re<strong>in</strong>forcement of<br />

the <strong>Africa</strong>n Union’s strategic<br />

partnerships with our <strong>in</strong>ternational<br />

partners. Our relations with other<br />

regions, countries and multilateral<br />

organisations are grounded on<br />

Agenda 2063, our Vision of the <strong>Africa</strong><br />

We Want. The support of <strong>Africa</strong>’s<br />

development priorities <strong>in</strong>clud<strong>in</strong>g<br />

regional <strong>in</strong>tegration, <strong>in</strong>frastructure<br />

and agricultural development,<br />

<strong>in</strong>dustrialisation, health security,<br />

science and technology, human<br />

capital and <strong>in</strong>stitutional capacity<br />

build<strong>in</strong>g, climate resilience, women<br />

empowerment, youth employment, as<br />

well as peace and security, are at the<br />

centre of the <strong>Africa</strong>n Union<br />

Commission’s engagement with the<br />

world.<br />

Innovative f<strong>in</strong>anc<strong>in</strong>g<br />

Fully cognizant of the imperative for<br />

structural transformation that the<br />

cont<strong>in</strong>ent requires <strong>in</strong> critical areas,<br />

we have spared no effort to identify<br />

<strong>in</strong>novative f<strong>in</strong>anc<strong>in</strong>g mechanisms to<br />

ensure our self-reliance and to<br />

support the atta<strong>in</strong>ment of the<br />

cont<strong>in</strong>ent’s development and<br />

<strong>in</strong>tegration agenda. We cannot talk<br />

about <strong>Africa</strong>’s development without<br />

talk<strong>in</strong>g about the mobilisation of<br />

<strong>Africa</strong>’s domestic resources as the<br />

ma<strong>in</strong>stay of our development and<br />

growth. The historic and landmark<br />

decision taken at the AU Summit <strong>in</strong><br />

Kigali <strong>in</strong> July 2016 on F<strong>in</strong>anc<strong>in</strong>g the<br />

Union by <strong>in</strong>stitut<strong>in</strong>g and<br />

implement<strong>in</strong>g a 0.2% levy on all<br />

eligible imports to <strong>Africa</strong> fits with<strong>in</strong><br />

this strategic perspective. This is <strong>in</strong><br />

furtherance of the Johannesburg<br />

Declaration on Self-Reliance adopted<br />

at the AU Summit of July 2015.<br />

<strong>Invest</strong>ments <strong>in</strong> the youth<br />

After dedicat<strong>in</strong>g the year 2016 to the<br />

“Promotion of Human Rights with a<br />

Particular Focus on the Rights of<br />

Women”, our Heads of State and<br />

Government decided <strong>in</strong> their<br />

collective wisdom to place the 2017<br />

AU Summit under the salient theme<br />

of “Harness<strong>in</strong>g the Demographic<br />

Dividend Through <strong>Invest</strong>ments <strong>in</strong><br />

the Youth”. We believe that “people<br />

are the real wealth of nations”.<br />

<strong>Invest</strong>ment <strong>in</strong> <strong>Africa</strong>n people rema<strong>in</strong>s<br />

at the centre of the <strong>Africa</strong>n Union’s<br />

agenda. It is critically important that<br />

<strong>Africa</strong>, through the right policy<br />

actions and smart <strong>in</strong>itiatives,<br />

harnesses the demographic dividend<br />

by empower<strong>in</strong>g women and girls,<br />

improv<strong>in</strong>g their health, enhanc<strong>in</strong>g<br />

their human capital through<br />

<strong>in</strong>creased <strong>in</strong>vestment <strong>in</strong> education<br />

and skills, and provid<strong>in</strong>g them with<br />

greater opportunities <strong>in</strong> the grow<strong>in</strong>g<br />

knowledge based global economy.<br />

Every year for the next decade, 11<br />

million <strong>Africa</strong>n youth will enter the<br />

job market. We must equip them<br />

with the right skills and tra<strong>in</strong><strong>in</strong>g <strong>in</strong><br />

order to actively contribute to the<br />

transformation of the cont<strong>in</strong>ent. An<br />

<strong>Africa</strong>n skills revolution is urgently<br />

needed <strong>in</strong> order to leapfrog<br />

development. The <strong>Africa</strong>n Economic<br />

Platform, scheduled to take place<br />

<strong>in</strong> 2017, will provide a forum for the<br />

AU political leadership, bus<strong>in</strong>ess<br />

and academic communities to<br />

discuss the economic transformation<br />

of the cont<strong>in</strong>ent and the <strong>Africa</strong>n<br />

skills revolution.<br />

The <strong>Africa</strong>n Union Commission<br />

has convened every year s<strong>in</strong>ce 2013<br />

an <strong>in</strong>tergenerational dialogue and<br />

worked with the Pan <strong>Africa</strong>n Youth<br />

Movement and all the <strong>Africa</strong>n<br />

Students Union and other movement<br />

of youth on tak<strong>in</strong>g forward Agenda<br />

2063. The recent <strong>Africa</strong>n Union<br />

Commission Youth Ma<strong>in</strong>stream<strong>in</strong>g<br />

<strong>in</strong>itiative that we launched <strong>in</strong><br />

November 2016 aims to fast-track<br />

the on-go<strong>in</strong>g youth activities of the<br />

Commission <strong>in</strong> a strategic and<br />

coord<strong>in</strong>ated manner, as a path to<br />

realis<strong>in</strong>g the 6th Aspiration of<br />

Agenda 2063: “An <strong>Africa</strong> whose<br />

development is people-driven, rely<strong>in</strong>g<br />

on the potential of <strong>Africa</strong>n people,<br />

especially its women and youth, and<br />

car<strong>in</strong>g for children”.<br />

I am confident that <strong>Africa</strong>’s future<br />

is bright. With the right <strong>in</strong>vestments<br />

<strong>in</strong> our people, the cont<strong>in</strong>uous<br />

improvement of democratic and<br />

participatory governance, and by<br />

cont<strong>in</strong>u<strong>in</strong>g to build on what has been<br />

achieved dur<strong>in</strong>g the last 15 years of<br />

transformational leadership, our<br />

vision of a prosperous, peaceful and<br />

<strong>in</strong>tegrated <strong>Africa</strong>, driven by its own<br />

citizens and play<strong>in</strong>g a dynamic role <strong>in</strong><br />

the world is def<strong>in</strong>itely on course. •<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 9


Philip Morris Perspective<br />

It’s time for <strong>Africa</strong><br />

The conversation about <strong>Africa</strong> has shifted from one of<br />

deficits to one of opportunities and <strong>in</strong>novation, even for<br />

a company like Philip Morris, which has long sourced<br />

tobacco leaf from the cont<strong>in</strong>ent but only <strong>in</strong> the past<br />

decade entered the consumer market.<br />

Although smok<strong>in</strong>g prevalence has decl<strong>in</strong>ed<br />

<strong>in</strong> many countries over the last forty<br />

years, millions of adults choose to<br />

cont<strong>in</strong>ue to smoke cigarettes and, <strong>in</strong><br />

certa<strong>in</strong> parts of <strong>Africa</strong>, the opposite trend<br />

is true.<br />

Recognis<strong>in</strong>g this, the policy of tobacco<br />

harm reduction is be<strong>in</strong>g put forward by a<br />

multitude of stakeholders – <strong>in</strong>clud<strong>in</strong>g<br />

public health organisations, healthcare<br />

professionals and regulators – to<br />

complement the other major strategies for<br />

reduc<strong>in</strong>g smok<strong>in</strong>g-related harm.<br />

In a bid to convert adult smokers to new<br />

technologies with the potential to<br />

dramatically lower the risk associated with<br />

smok<strong>in</strong>g, Philip Morris is pioneer<strong>in</strong>g a new<br />

generation of Reduced-Risk Products<br />

(RRPs) <strong>in</strong> South <strong>Africa</strong>.<br />

Contrary to what many people believe,<br />

experts agree that nicot<strong>in</strong>e, while<br />

addictive, is not the primary cause of<br />

smok<strong>in</strong>g-related diseases. It is the toxic<br />

compounds that are found <strong>in</strong> cigarette<br />

smoke – most of which are formed when<br />

tobacco is burned. This has been well<br />

known for decades, but advances <strong>in</strong><br />

technology and consumer <strong>in</strong>terest <strong>in</strong><br />

<strong>in</strong>novative products that do not burn<br />

tobacco, such as e-cigarettes, prove that<br />

less harmful products could be more than<br />

just wishful th<strong>in</strong>k<strong>in</strong>g. Alongside<br />

government efforts to prevent <strong>in</strong>itiation of<br />

tobacco use and encourage smokers to<br />

quit, a grow<strong>in</strong>g number of public health<br />

authorities and experts now believe that<br />

giv<strong>in</strong>g smokers access to less harmful<br />

alternatives can be a major benefit to<br />

public health. Their approach is often<br />

referred to as “tobacco harm reduction.”<br />

Through multidiscipl<strong>in</strong>ary capabilities <strong>in</strong><br />

product development, state-of-the-art<br />

facilities, and <strong>in</strong>dustry-lead<strong>in</strong>g scientific<br />

substantiation, PMI is <strong>in</strong>troduc<strong>in</strong>g an RRP<br />

portfolio that meets both a broad<br />

spectrum of adult smoker preferences and<br />

rigorous regulatory requirements.<br />

Two conditions for achiev<strong>in</strong>g<br />

public health benefits<br />

Accord<strong>in</strong>g to its supporters, tobacco harm<br />

reduction can play a role for public health<br />

if new products are developed that meet<br />

two conditions. First, they need to present<br />

less risk than cont<strong>in</strong>ued cigarette use.<br />

Second, they should be satisfy<strong>in</strong>g so that<br />

smokers switch to them.<br />

For example, if an alternative product<br />

was proven to have a significantly lower<br />

risk profile but was not accepted by<br />

current adult smokers, its positive impact<br />

on public health would be very low.<br />

Governments can play a key role <strong>in</strong><br />

appropriately encourag<strong>in</strong>g the <strong>in</strong>novation,<br />

scientific assessment and promotion of less<br />

harmful alternatives for smokers. A 2014<br />

report from Public Health England noted<br />

that, <strong>in</strong> order to harness the harm<br />

reduction potential of such alternatives,<br />

“appropriate regulation, careful<br />

monitor<strong>in</strong>g, and risk management” are<br />

needed.<br />

The US and the EU, among others, have<br />

already adopted, or are <strong>in</strong> the process of<br />

adopt<strong>in</strong>g, frameworks for alternatives to<br />

combustible cigarettes.<br />

Provid<strong>in</strong>g adult smokers with<br />

<strong>reduced</strong>-risk alternatives is a priority for<br />

PMI. Our substantial <strong>in</strong>vestment <strong>in</strong> the<br />

development of products with the<br />

potential to reduce risk, our understand<strong>in</strong>g<br />

of what adult smokers are <strong>in</strong>terested <strong>in</strong>,<br />

and the depth of our product development<br />

and assessment position us to cont<strong>in</strong>ue to<br />

be the <strong>in</strong>dustry leader as this new category<br />

evolves.<br />

There is no reason why <strong>Africa</strong> should<br />

not benefit from new, well researched and<br />

scientifically-underp<strong>in</strong>ned technologies <strong>in</strong><br />

the tobacco sphere.<br />

PMI is the world’s lead<strong>in</strong>g <strong>in</strong>ternational<br />

tobacco company, with six of the world’s<br />

top 15 <strong>in</strong>ternational brands and products<br />

sold <strong>in</strong> more than 180 markets. In<br />

addition to the manufacture and sale of<br />

cigarettes, <strong>in</strong>clud<strong>in</strong>g Marlboro, the<br />

number one global cigarette brand, and<br />

other tobacco products, we are<br />

transform<strong>in</strong>g our bus<strong>in</strong>ess to offer<br />

products with the potential to<br />

substantially reduce smok<strong>in</strong>g-related risk.<br />

We are conduct<strong>in</strong>g extensive and rigorous<br />

scientific studies to determ<strong>in</strong>e whether<br />

we can support claims for such products<br />

of <strong>reduced</strong> exposure to harmful and<br />

potentially harmful constituents <strong>in</strong> smoke,<br />

and ultimately claims of <strong>reduced</strong> disease<br />

risk, when compared to smok<strong>in</strong>g<br />

cigarettes. Before mak<strong>in</strong>g any such claims,<br />

we will rigorously evaluate the full set of<br />

data from the relevant scientific studies to<br />

determ<strong>in</strong>e whether they substantiate<br />

<strong>reduced</strong> exposure or risk. Any such claims<br />

may also be subject to government review<br />

and authorisation, as is the case <strong>in</strong> the<br />

USA today. See more at:<br />

https://www.pmiscience.com


FOREWORD<br />

HE Erastus<br />

Mwencha<br />

Deputy Chairperson<br />

<strong>Africa</strong>n Union Commission<br />

This is an excit<strong>in</strong>g moment <strong>in</strong><br />

<strong>Africa</strong>’s history where its<br />

youth holds the key to the<br />

transformation, <strong>in</strong>tegration and<br />

susta<strong>in</strong>able development of the<br />

cont<strong>in</strong>ent. Their enthusiasm,<br />

<strong>in</strong>genuity and fortitude is remarkable, and<br />

<strong>Africa</strong> is blessed with this huge asset, with over<br />

400 million youths across the cont<strong>in</strong>ent. It is<br />

reported that approximately 70% of <strong>Africa</strong>ns<br />

below the age of 35 years, and 200 million<br />

people between the ages of 15 and 24 years, it is<br />

expected that by 2025, a quarter of the world’s<br />

young men and women will be <strong>Africa</strong>n and by<br />

2040, <strong>Africa</strong> will be home to the largest labour<br />

force <strong>in</strong> the world.<br />

Challenges for the youth<br />

At the moment, young people account for<br />

three out of every five unemployed and<br />

underemployed on the cont<strong>in</strong>ent, with 11 million<br />

more young people enter<strong>in</strong>g the labour market<br />

each year for the com<strong>in</strong>g decade. For that<br />

reason, development efforts should focus on<br />

youth empowerment, otherwise this grow<strong>in</strong>g<br />

population can become a burden for sluggish<br />

economies or a source of political <strong>in</strong>stability.<br />

Now more than ever, we have to make<br />

deliberate, concrete efforts to <strong>in</strong>vest <strong>in</strong><br />

this generation of <strong>Africa</strong>n <strong>in</strong>novators,<br />

change-makers, and leaders. The critical<br />

question we must ask today is “How do we<br />

harness the dividend from the cont<strong>in</strong>ent’s<br />

youthful population?”<br />

I am proud to state that the <strong>Africa</strong>n Union is<br />

committed to ensur<strong>in</strong>g that every young <strong>Africa</strong>n,<br />

benefits from <strong>in</strong>vestment opportunities and<br />

space needed to become a key player <strong>in</strong> <strong>Africa</strong>’s<br />

development agenda. The AU Heads of State and<br />

Government, <strong>in</strong> pronounc<strong>in</strong>g<br />

the theme for the year 2017 as<br />

“Harness<strong>in</strong>g the Demographic<br />

Dividend Through <strong>Invest</strong>ments <strong>in</strong><br />

Youth”, challenged us all, <strong>Africa</strong>n<br />

<strong>in</strong>stitutions and its development<br />

partners, to reflect and come up with practical<br />

actions and policies to ensure that every young<br />

person is accorded the needed opportunity to<br />

play their part <strong>in</strong> our cont<strong>in</strong>ent’s development.<br />

We cannot afford to lose out on this<br />

opportunity to strive for greater development<br />

and <strong>in</strong>clusiveness. All major developmental<br />

activities will be geared towards harness<strong>in</strong>g the<br />

demographic dividend through <strong>in</strong>creased focus<br />

and <strong>in</strong>vestments <strong>in</strong> the areas of education, skills<br />

development, employment creation, promotion<br />

of children’s rights, early childhood education,<br />

access to technology and economic<br />

opportunities and mobilisation of young <strong>Africa</strong>ns<br />

to shape these opportunities. I call on all youth<br />

to come out and take part <strong>in</strong> activities and<br />

<strong>in</strong>itiatives to be undertaken at national, regional<br />

and cont<strong>in</strong>ental levels<br />

We must cont<strong>in</strong>ue to do more for our youth<br />

through <strong>in</strong>creased private-public <strong>in</strong>vestments<br />

aimed at stimulat<strong>in</strong>g manufactur<strong>in</strong>g,<br />

agro-process<strong>in</strong>g, the blue and green economies<br />

and <strong>in</strong>tra-<strong>Africa</strong>n trade and services, work<strong>in</strong>g<br />

with young people and provid<strong>in</strong>g access to<br />

tra<strong>in</strong><strong>in</strong>g, capital and <strong>in</strong>frastructure. <strong>Invest</strong>ments<br />

made <strong>in</strong> empower<strong>in</strong>g our youth today will<br />

determ<strong>in</strong>e the development trajectory of<br />

<strong>Africa</strong> over the next 50 years, and position<br />

the cont<strong>in</strong>ent towards realis<strong>in</strong>g the “<strong>in</strong>tegrated,<br />

prosperous and peaceful <strong>Africa</strong>, driven by<br />

its own citizens and represent<strong>in</strong>g a dynamic<br />

force <strong>in</strong> the global arena.”, as envisioned <strong>in</strong><br />

Agenda 2063. •<br />

We must<br />

cont<strong>in</strong>ue to do<br />

more for our<br />

youth through<br />

<strong>in</strong>creased<br />

private-public<br />

<strong>in</strong>vestments<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 11


FOREWORD<br />

HE Dr Arikana<br />

Chihombori Quao<br />

Ambassador<br />

<strong>Africa</strong>n Union Mission to the United States<br />

Welcome to<br />

our <strong>Africa</strong>.<br />

The land of<br />

the brave<br />

Fellow <strong>Africa</strong>ns, friends and<br />

partners of <strong>Africa</strong>, <strong>in</strong> my capacity<br />

as the new Ambassador of the<br />

<strong>Africa</strong>n Union Mission to the<br />

United States, it is my great<br />

pleasure to welcome you to<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017.<br />

A dist<strong>in</strong>ct honour<br />

I would like to take this opportunity to extend<br />

my deepest gratitude to HE Dr Nkosazana<br />

Dlam<strong>in</strong>i Zuma, the Chairperson of the <strong>Africa</strong>n<br />

Union Commission, for bestow<strong>in</strong>g upon me the<br />

dist<strong>in</strong>ct honour and privilege to be the second<br />

woman Ambassador to lead AU Mission to the<br />

USA. I am so humbled and honoured to have<br />

an opportunity to contribute to the<br />

aspirations of our people for an<br />

“<strong>in</strong>tegrated, prosperous and<br />

peaceful cont<strong>in</strong>ent, which is<br />

driven by its own citizens<br />

and represents a dynamic<br />

force <strong>in</strong> the global arena.”<br />

Our beloved cont<strong>in</strong>ent<br />

has made significant<br />

strides <strong>in</strong> the economic,<br />

social, and political arenas.<br />

In addition, <strong>Africa</strong> is<br />

undergo<strong>in</strong>g major<br />

transformations as evident<br />

and articulated <strong>in</strong> Agenda 2063.<br />

Agenda 2063 addresses the<br />

challenges <strong>Africa</strong> is fac<strong>in</strong>g and realises<br />

the untapped potential with<strong>in</strong> its people.<br />

<strong>Africa</strong> is committed to economic growth as<br />

well as human development. The rule of law,<br />

good governance, peace and security are at the<br />

core of its development platform as it aims to<br />

become a 21st century beacon of hope and<br />

prosperity <strong>in</strong> the world.<br />

This year has been designated by the United<br />

Nations as the Year of Susta<strong>in</strong>able Tourism<br />

for Development. <strong>Africa</strong> is not an exception <strong>in</strong><br />

this regard. Agenda 2063 recognises tourism as<br />

a vital opportunity to address issues that cut<br />

across all sectors of development. Tourism will<br />

serve as a tool to stimulate job creation, hence<br />

economic growth.<br />

I firmly believe that <strong>Africa</strong>’s great tourism<br />

potential has not yet been fully tapped. From<br />

its unique and diverse wildlife, magnificent<br />

landscapes, beautiful beaches, a rich cultural<br />

heritage and <strong>in</strong>digenous populations and ways<br />

of life and knowledge that have survived for<br />

centuries, <strong>Africa</strong> could become the preferred<br />

tourist dest<strong>in</strong>ation of the world.<br />

Meet<strong>in</strong>g aspirations<br />

In order to achieve susta<strong>in</strong>able tourism<br />

development and meet the aspirations of the<br />

<strong>Africa</strong>n Union Agenda 2063, I will spare no<br />

effort to mobilise the support of all key<br />

stakeholders, <strong>in</strong>clud<strong>in</strong>g the private sector, civil<br />

society and the <strong>Africa</strong>n Diaspora, so as our<br />

beloved cont<strong>in</strong>ent becomes the fastest grow<strong>in</strong>g<br />

tourism dest<strong>in</strong>ation <strong>in</strong> the com<strong>in</strong>g years.<br />

Tourism is a priority area, a powerful vehicle<br />

and strategic tool <strong>in</strong> our tool box to achieve<br />

together the <strong>Africa</strong> We All Want.<br />

Welcome to OUR <strong>Africa</strong>.<br />

The land of the BRAVE.•<br />

12 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


AFRICAN UNION NEWS<br />

News from<br />

the Union<br />

C<strong>in</strong>dy Hopk<strong>in</strong>s / Alamy<br />

A brief history of the <strong>Africa</strong>n Union<br />

H.E. Dr. Arikana Chihombori Quao <strong>Africa</strong>n Union Ambassador to the USA<br />

“Our objective is <strong>Africa</strong>n union now,” said the first President of Ghana, Kwame<br />

Nkrumah, dur<strong>in</strong>g a 1963 speech <strong>in</strong> front of 31 <strong>Africa</strong>n heads of state. The speech<br />

took place <strong>in</strong> Addis Ababa dur<strong>in</strong>g the found<strong>in</strong>g of the Organization of <strong>Africa</strong>n Unity<br />

(OAU). Years earlier, <strong>in</strong> 1958, President Nkrumah had already orchestrated a union<br />

<strong>in</strong>volv<strong>in</strong>g Ghana, Gu<strong>in</strong>ea and Mali, known as the Union of <strong>Africa</strong>n States,<br />

or the Ghana-Gu<strong>in</strong>ea-Mali Union. This unique “<strong>Africa</strong>n tripartite,” a forerunner to<br />

the OAU, ultimately would give birth to the <strong>Africa</strong>n Union (AU).<br />

At first, the OAU Assembly consisted of 32 member states, which had achieved<br />

<strong>in</strong>dependence by 1963. Gradually, 21 more countries jo<strong>in</strong>ed this cont<strong>in</strong>ental body<br />

reach<strong>in</strong>g a total of 53 by the time of the AU’s creation <strong>in</strong> 2002. Morocco withdrew<br />

from the OAU <strong>in</strong> 1984. South Sudan jo<strong>in</strong>ed the AU as its 54th member on July 27, 2011.<br />

Today, it is “the Assembly” which is AU’s supreme organ. Heads of State and<br />

Government from all Member States comprise the organisation. The Assembly<br />

determ<strong>in</strong>es policies, priorities, adopts annual program and monitors the<br />

implementation of its policies and decisions for its 54 member states.<br />

Clearly, there is still much work to be done, but the late President Nkrumah<br />

would no doubt celebrate the successes so far <strong>in</strong> the realization of his objective<br />

– <strong>Africa</strong> for the <strong>Africa</strong>ns and “<strong>Africa</strong>n Union now.”<br />

Nkrumah Mausoleum, f<strong>in</strong>al rest<strong>in</strong>g<br />

place of Kwame Nkrumah, Ghana’s<br />

first president<br />

X<strong>in</strong>hua / Alamy<br />

<strong>Africa</strong>n Union chairperson President Idriss Deby and<br />

President of Rwanda Paul Kagame show their e-passports<br />

AU Passport launched <strong>in</strong> Kigali<br />

The <strong>Africa</strong>n Union passport was launched dur<strong>in</strong>g the<br />

open<strong>in</strong>g ceremony of the annual Ord<strong>in</strong>ary Session of<br />

the <strong>Africa</strong>n Union Assembly of Heads of State and<br />

Government <strong>in</strong> Kigali, Rwanda <strong>in</strong> July 2016. Deemed a<br />

powerful symbol of Pan-<strong>Africa</strong>nism, the document aims<br />

to facilitate the free movement of <strong>Africa</strong>ns across the<br />

cont<strong>in</strong>ent. AU chairperson and president of Chad, Idriss<br />

Deby stressed the importance of fast track<strong>in</strong>g <strong>in</strong>tegration<br />

on the cont<strong>in</strong>ent to achieve socio-economic growth for<br />

the wellbe<strong>in</strong>g of the <strong>Africa</strong>n citizens. “I feel deeply and<br />

proudly a true son of <strong>Africa</strong> after receiv<strong>in</strong>g this<br />

passport”, he said.<br />

AU F<strong>in</strong>anc<strong>in</strong>g<br />

Consensus on the need to quickly implement the decision<br />

on the f<strong>in</strong>anc<strong>in</strong>g of the <strong>Africa</strong>n Union was reached by the<br />

end of a two-day conference of AU M<strong>in</strong>isters of F<strong>in</strong>ance<br />

at the AU headquarters <strong>in</strong> September.<br />

Among other factors, the consensus reflects the 0.2%<br />

levy on eligible imports for all members’ states to f<strong>in</strong>ance<br />

the Union, the need to reduce dependency on partner<br />

funds for implementation of cont<strong>in</strong>ental development<br />

and <strong>in</strong>tegration programs, and an obligation to relieve<br />

the pressure on Member States’ national treasuries to<br />

meet national obligations for payment of assessed<br />

contributions of the Union.<br />

AU and OECD sign an MoU<br />

“The OECD is ready to support <strong>Africa</strong>’s way forward. I<br />

am pleased to announce that the OECD and AUC signed a<br />

new Memorandum of Understand<strong>in</strong>g that will further<br />

cement our co-operation,” Angel Gurría, OECD<br />

Secretary-General, said <strong>in</strong> Paris last year. “This new MoU is<br />

a start<strong>in</strong>g po<strong>in</strong>t for a rejuvenated and broader co-operation,<br />

and I am count<strong>in</strong>g on both the OECD and the <strong>Africa</strong>n Union<br />

to maximise the jo<strong>in</strong>t opportunities ahead.<br />

“The OECD has already strengthened its collaboration<br />

with <strong>Africa</strong>n <strong>in</strong>stitutions...We are ready to support these<br />

<strong>in</strong>stitutions <strong>in</strong> measur<strong>in</strong>g the implementation of the SDGs<br />

as well as Agenda 2063.”<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 13


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FOREWORD<br />

Florizelle<br />

Liser<br />

President and CEO<br />

Corporate Council on <strong>Africa</strong><br />

<strong>Africa</strong> is often described as the<br />

youthful cont<strong>in</strong>ent, and it is a<br />

fitt<strong>in</strong>g label <strong>in</strong> more ways than<br />

one. Modern <strong>Africa</strong>n nations<br />

only came of age <strong>in</strong> the 1950s<br />

and 60s; many <strong>Africa</strong>n markets<br />

are <strong>in</strong> the middle or just beg<strong>in</strong>n<strong>in</strong>g their growth<br />

spurts; and about 65% of the total population of<br />

<strong>Africa</strong> is below the age of 35 years. By 2020, The<br />

<strong>Africa</strong>n Union (AU) projects that three out of<br />

four people on the cont<strong>in</strong>ent will be on average<br />

20 years old.<br />

<strong>Africa</strong>’s greatest resource<br />

The greatest resource of any nation is its people<br />

and as <strong>Africa</strong>n nations and the AU look towards<br />

Agenda 2063 and the future of the cont<strong>in</strong>ent,<br />

capitalis<strong>in</strong>g on this demographic dividend will<br />

be key. About 10 million young <strong>Africa</strong>ns arrive<br />

each year on the labour market, yet a common<br />

concern we hear from the private sector is that<br />

it is challeng<strong>in</strong>g to f<strong>in</strong>d qualified workers.<br />

<strong>Africa</strong>n youth and workforce development<br />

present an opportunity, which can only be<br />

fully realised through a strong, committed<br />

partnership between <strong>Africa</strong>n governments,<br />

regional bodies and the private sector.<br />

The Corporate Council on <strong>Africa</strong> (CCA) was<br />

established <strong>in</strong> 1993 to promote bus<strong>in</strong>ess and<br />

<strong>in</strong>vestment between the United States and the<br />

nations of <strong>Africa</strong>. As the lead<strong>in</strong>g US bus<strong>in</strong>ess<br />

association solely focused on the <strong>Africa</strong>n<br />

market, CCA occupies a unique position as a<br />

neutral, trusted <strong>in</strong>termediary connect<strong>in</strong>g the<br />

private sector to the governments, bus<strong>in</strong>ess<br />

leaders, regional bodies and non-profit<br />

organisations they need to do bus<strong>in</strong>ess<br />

and succeed <strong>in</strong> <strong>Africa</strong>. One of the strik<strong>in</strong>g<br />

commonalities between US and <strong>Africa</strong>n<br />

markets is <strong>in</strong>novation. Technology has driven<br />

economic growth <strong>in</strong> these markets and changed<br />

the way we do bus<strong>in</strong>ess <strong>in</strong> every sector from<br />

agribus<strong>in</strong>ess to mobile bank<strong>in</strong>g.<br />

As I beg<strong>in</strong> my tenure as President and CEO of<br />

CCA, address<strong>in</strong>g the skills development gap and<br />

develop<strong>in</strong>g a 21st century <strong>Africa</strong>n workforce are<br />

key focus areas. This year, CCA will revitalise its<br />

capacity build<strong>in</strong>g program centred on address<strong>in</strong>g<br />

the mismatch between higher education and the<br />

job market. With a new US Adm<strong>in</strong>istration, it will<br />

also be important to identify avenues and<br />

opportunities for greater engagement between<br />

US and <strong>Africa</strong>n bus<strong>in</strong>esses, and to encourage<br />

policies and <strong>in</strong>itiatives that support such<br />

engagement. Thus, we will convene stakeholders<br />

from diverse <strong>in</strong>dustries, academia and the public<br />

sector for high-level discussions at CCA’s<br />

upcom<strong>in</strong>g US-<strong>Africa</strong> Bus<strong>in</strong>ess Summit <strong>in</strong><br />

Wash<strong>in</strong>gton, DC from 13-16 June 2017, and at a<br />

range of other issue and sector-specific events<br />

focused on solutions and results. Under our<br />

recently acquired tourism arm, the <strong>Africa</strong> Travel<br />

Association (ATA), CCA will support <strong>in</strong>itiatives<br />

and tra<strong>in</strong><strong>in</strong>g for young professionals <strong>in</strong> tourism<br />

though the ATA Young Professionals Program<br />

(YPP). This year will also be the beg<strong>in</strong>n<strong>in</strong>g of<br />

CCA’s partnership with the <strong>Africa</strong>-America<br />

Institute (AAI), a premier US-based <strong>in</strong>ternational<br />

organisation dedicated to strengthen<strong>in</strong>g human<br />

capacity of <strong>Africa</strong>ns and promot<strong>in</strong>g the<br />

cont<strong>in</strong>ent’s development through higher<br />

education and skills tra<strong>in</strong><strong>in</strong>g, conven<strong>in</strong>g activities,<br />

programme implementation and management.<br />

I wish you much success at the 28th AU<br />

Summit, and CCA looks forward to work<strong>in</strong>g with<br />

both US and <strong>Africa</strong>n bus<strong>in</strong>esses to promote<br />

economic growth through greater US-<strong>Africa</strong><br />

<strong>in</strong>vestment and bus<strong>in</strong>ess engagement <strong>in</strong> 2017.•<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 15


FOREWORD<br />

Stephen<br />

Hayes<br />

Former President & CEO,<br />

Corporate Council on <strong>Africa</strong><br />

Over the past decade<br />

especially, the <strong>Africa</strong>n<br />

Union has developed <strong>in</strong>to<br />

an organisation essential<br />

to the future of the<br />

cont<strong>in</strong>ent. The <strong>Africa</strong>n<br />

Union has stepped forward and led<br />

<strong>in</strong>ternational peace-keep<strong>in</strong>g forces and<br />

worked to mediate the most <strong>in</strong>transigent<br />

of issues. It is difficult, if not impossible to<br />

imag<strong>in</strong>e <strong>Africa</strong> without the <strong>Africa</strong>n Union.<br />

I am proud that my own organisation<br />

has a memorandum of understand<strong>in</strong>g with<br />

the <strong>Africa</strong>n Union to work together,<br />

especially on economic matters, and<br />

I am equally proud that we did this so<br />

successfully with our US-<strong>Africa</strong> Summit <strong>in</strong><br />

Addis Ababa <strong>in</strong> 2016. We need more of this<br />

type of cooperation.<br />

A united union<br />

I suppose the closest comparison to the<br />

<strong>Africa</strong>n Union might be the United<br />

Nations. Its power is limited by the extent<br />

to which leaders wish to sometimes<br />

rel<strong>in</strong>quish their own power for the greater<br />

good. It is a difficult th<strong>in</strong>g to do for any<br />

leader on any cont<strong>in</strong>ent. Yet, <strong>in</strong> some ways,<br />

we have seen new forms of cooperation<br />

that often seem more effective than that<br />

of the United Nations. There appears, at<br />

times, to be a greater desire to stand<br />

together and seek more common<br />

platforms on food and security issues, and<br />

on the issues of economic development.<br />

Like any <strong>in</strong>dividual or any organisation,<br />

it is important to exam<strong>in</strong>e our own work<br />

at times, and the newly formed<br />

commission to do exactly that, to be led<br />

by President Kagame, is an important<br />

step. We are <strong>in</strong> times that will require<br />

less waste of effort and more efficiency<br />

<strong>in</strong> our collective decision mak<strong>in</strong>g. Climate<br />

change, whether <strong>in</strong> the long-term or<br />

short-term <strong>in</strong> the form of decades, not<br />

centuries, is real, and we must make plans<br />

to adjust to that. Grow<strong>in</strong>g population<br />

pressures with commensurate jobs is a<br />

major contribut<strong>in</strong>g factor to domestic and<br />

<strong>in</strong>ternational strife, and <strong>Africa</strong> is <strong>in</strong> many<br />

ways ground zero when it comes to be<strong>in</strong>g<br />

affected by these issues.<br />

That the <strong>Africa</strong>n Union recognises this<br />

is important and that it is actively<br />

attempt<strong>in</strong>g to f<strong>in</strong>d solutions is vital to the<br />

cont<strong>in</strong>ent and I would argue that it is just<br />

as vital for the rest of the world. I have<br />

chosen to spend an important part of my<br />

life work<strong>in</strong>g with <strong>Africa</strong> because I believe<br />

<strong>Africa</strong> is the <strong>in</strong>dicator of Earth’s future. As<br />

<strong>Africa</strong> grows, the world will follow. <strong>Africa</strong>,<br />

is <strong>in</strong> a unique position as its development<br />

can jump over the mistakes of others,<br />

especially <strong>in</strong> energy resources and the<br />

development of <strong>in</strong>frastructure. However, if<br />

it repeats the patterns of others, then it<br />

will simply repeat the mistakes of others.<br />

This is why the <strong>Africa</strong>n Union is important.<br />

It is the only body that can really br<strong>in</strong>g the<br />

cont<strong>in</strong>ent together.<br />

Mak<strong>in</strong>g a difference<br />

There are enormous challenges<br />

immediately ahead for the <strong>Africa</strong>n<br />

Union but it is vital that the organisation<br />

exist and mature so that it can lead and<br />

make a difference <strong>in</strong> the world. It will not<br />

be easy but it is an organization that could<br />

make such a difference <strong>in</strong> this critical<br />

period of civilization. •<br />

Leaders wish to<br />

sometimes rel<strong>in</strong>quish<br />

their own power for<br />

the greater good<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 17


AFRICAN UNION NEWS<br />

Sarah Rundell looks at the progress that the <strong>Africa</strong>n Union<br />

has made on Agenda 2063 s<strong>in</strong>ce its launch <strong>in</strong> 2015.<br />

Journey to<br />

Agenda 2063<br />

cont<strong>in</strong>ues<br />

10% <strong>in</strong> 2002 to 13% <strong>in</strong> 2014. This is <strong>in</strong><br />

contrast to <strong>in</strong>tra-EU trade, worth 65%<br />

of the region’s total trade, and trade<br />

amongst the ASEAN+3 countries<br />

(the 10 ASEAN members plus Ch<strong>in</strong>a,<br />

Japan and South Korea), which reached<br />

45% last year.<br />

Yet Agenda 2063 has pushed<br />

progress, <strong>in</strong>clud<strong>in</strong>g the launch of a<br />

Tripartite Free Trade Area (TFTA)<br />

between <strong>Africa</strong>’s biggest trad<strong>in</strong>g blocs,<br />

the Common Market for Eastern and<br />

Southern <strong>Africa</strong> (COMESA), the<br />

Southern <strong>Africa</strong>n Development<br />

Community (SADC) and the East<br />

<strong>Africa</strong>n Community (EAC). The goal is<br />

that by 2017 the TFTA will create the<br />

cont<strong>in</strong>ent’s largest free trade zone<br />

stretch<strong>in</strong>g from Cape Town to Cairo.<br />

Last July, the <strong>Africa</strong>n Union<br />

(AU) issued the first ever<br />

e-passports allow<strong>in</strong>g<br />

visa-free travel between<br />

all 54 member states. The<br />

permits are only available<br />

at this stage for senior dignitaries but<br />

the hope is that they will be rolled out<br />

to all <strong>Africa</strong>’s one billion population<br />

soon. Speak<strong>in</strong>g at the time, HE Dr<br />

Nkosazana Dlam<strong>in</strong>i Zuma, Chairperson<br />

of the AU Commission, heralded the<br />

<strong>in</strong>itiative as a “step toward the objective<br />

of creat<strong>in</strong>g a strong, prosperous and<br />

<strong>in</strong>tegrated <strong>Africa</strong>.”<br />

Agenda 2063 <strong>in</strong> context<br />

Countries such as the Seychelles,<br />

Mauritius, Rwanda, and Ghana are<br />

already lead<strong>in</strong>g on easier <strong>in</strong>tra-<strong>Africa</strong><br />

travel by relax<strong>in</strong>g visa restrictions and<br />

<strong>in</strong> some cases lift<strong>in</strong>g requirements<br />

altogether. The scene is set to realise<br />

the dream of visa-free travel for<br />

<strong>Africa</strong>n citizens with<strong>in</strong> their own<br />

cont<strong>in</strong>ent by 2020.<br />

It is just one of the goals of Agenda<br />

2063, the AU’s bold action plan launched<br />

<strong>in</strong> 2015 that maps out the cont<strong>in</strong>ent’s<br />

socio-economic transformation over the<br />

next 50 years. Others <strong>in</strong>clude<br />

cont<strong>in</strong>ent-wide free trade, a high-speed<br />

tra<strong>in</strong> network, an <strong>Africa</strong>n-wide<br />

commodity strategy, harness<strong>in</strong>g the<br />

river Congo’s hydro resources to close<br />

the energy gap and new pan-<strong>Africa</strong>n<br />

f<strong>in</strong>ancial <strong>in</strong>stitutions.<br />

A cont<strong>in</strong>ent-wide free trade area<br />

comb<strong>in</strong><strong>in</strong>g the free movement of people,<br />

but also goods and services, would<br />

transform <strong>in</strong>tra-regional trade –<br />

someth<strong>in</strong>g signatories have pledged to<br />

double by 2022. The difficulties <strong>in</strong><br />

mov<strong>in</strong>g goods between <strong>Africa</strong>n<br />

countries puts a brake on<br />

manufactur<strong>in</strong>g and retail bus<strong>in</strong>esses<br />

that struggle to access <strong>in</strong>puts and<br />

distribute their goods as widely as they<br />

would like. Accord<strong>in</strong>g to the<br />

International Monetary<br />

Fund (IMF), <strong>Africa</strong>’s total<br />

trade has grown rapidly <strong>in</strong><br />

value s<strong>in</strong>ce 2002, nearly<br />

doubl<strong>in</strong>g <strong>in</strong> the five years<br />

from 2009 to 2014. In<br />

comparison, <strong>in</strong>tra-<strong>Africa</strong>n<br />

trade as a proportion of the<br />

cont<strong>in</strong>ent’s overall trad<strong>in</strong>g<br />

activities has been slower<br />

to climb, go<strong>in</strong>g from around<br />

$30b<br />

The amount<br />

Japan pledged to<br />

boost <strong>Africa</strong>’s<br />

growth over the<br />

next three years<br />

<strong>Invest</strong><strong>in</strong>g <strong>in</strong> <strong>in</strong>frastructure<br />

The <strong>Africa</strong>n Development Bank puts<br />

<strong>Africa</strong>’s annual <strong>in</strong>frastructure deficit at<br />

$50 billion. The expectations are high <strong>in</strong><br />

East <strong>Africa</strong>. It is the cont<strong>in</strong>ent’s<br />

fastest-grow<strong>in</strong>g regional economy, yet<br />

the quality of cross-border road and rail<br />

l<strong>in</strong>ks – key to boost<strong>in</strong>g trade flow needs<br />

to be improved. Inland countries eager<br />

to connect <strong>in</strong>to regional and global value<br />

cha<strong>in</strong>s, such as Rwanda and South<br />

Sudan, are still wait<strong>in</strong>g for new railways<br />

from Kenya and Ethiopia. Accord<strong>in</strong>g to a<br />

2014 study by the UN Conference on<br />

Trade and Development (UNCTAD), East<br />

<strong>Africa</strong> rema<strong>in</strong>s one of the costliest<br />

places to ship goods <strong>in</strong> the world due to<br />

poorly ma<strong>in</strong>ta<strong>in</strong>ed transport l<strong>in</strong>ks and<br />

Kenya’s highly congested Mombasa<br />

port.<br />

<strong>Africa</strong>’s foreign partners are<br />

<strong>in</strong>vest<strong>in</strong>g. At the sixth Tokyo<br />

International Conference on <strong>Africa</strong>n<br />

Development (TICAD VI) <strong>in</strong> August 2016,<br />

Japan pledged $30 billion to boost<br />

<strong>Africa</strong>’s economic growth and<br />

<strong>in</strong>frastructure over the next<br />

three years. But Agenda 2063<br />

wants <strong>Africa</strong> to take<br />

responsibility for its own<br />

development, too. It means much<br />

of the f<strong>in</strong>anc<strong>in</strong>g for its ambitious<br />

projects must come from with<strong>in</strong><br />

the cont<strong>in</strong>ent. The AU is work<strong>in</strong>g<br />

with <strong>Africa</strong>’s own f<strong>in</strong>ancial<br />

<strong>in</strong>stitutions and markets to<br />

encourage <strong>in</strong>vestment, explor<strong>in</strong>g<br />

18 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


AFRICAN UNION NEWS<br />

KEY FLAGSHIP PROJECTS<br />

FOR AGENDA 2063<br />

step toward<br />

the objective of<br />

creat<strong>in</strong>g a strong,<br />

prosperous and<br />

<strong>in</strong>tegrated <strong>Africa</strong><br />

DR NKOSAZANA<br />

DLAMINI-ZUMA<br />

Chairperson, AU Commission<br />

President of Chad Idriss Deby<br />

shows his <strong>Africa</strong> passport at the<br />

27th <strong>Africa</strong>n Union Summit<br />

sources like diaspora-l<strong>in</strong>ked bonds and<br />

improved tax collection, as well as<br />

work<strong>in</strong>g to halt illicit capital flows.<br />

National governments are also<br />

look<strong>in</strong>g to the private sector to f<strong>in</strong>ance<br />

<strong>in</strong>frastructure with new national laws<br />

regulat<strong>in</strong>g public-private partnerships.<br />

Agenda 2063 also pledges to create<br />

an open skies agreement. Research by<br />

the International Air Transport<br />

Association estimates that if just 12 of<br />

<strong>Africa</strong>’s bigger economies opened their<br />

skies to one another, fares would fall by<br />

more than a third and traffic between<br />

them would soar by 81%. Twelve<br />

member states have signed up to the<br />

AU’s programme to implement a s<strong>in</strong>gle<br />

air transport market with<strong>in</strong> two years.<br />

Elsewhere, Common Market for<br />

Eastern and Southern <strong>Africa</strong><br />

(COMESA) is work<strong>in</strong>g on a regional<br />

framework for a unified airspace <strong>in</strong> its<br />

region.<br />

Achiev<strong>in</strong>g Agenda 2063’s offers huge<br />

opportunities for the cont<strong>in</strong>ent. If <strong>Africa</strong><br />

cont<strong>in</strong>ues to build on its achievements<br />

the dream of an <strong>in</strong>tegrated, prosperous<br />

and peaceful cont<strong>in</strong>ent is <strong>in</strong>creas<strong>in</strong>gly<br />

with<strong>in</strong> reach. •<br />

<strong>Africa</strong> Union Commission flickr<br />

INTEGRATED HIGH SPEED<br />

TRAIN NETWORK<br />

Connect<strong>in</strong>g all <strong>Africa</strong>n capitals and<br />

commercial centres.<br />

AN AFRICAN VIRTUAL AND<br />

E-UNIVERSITY<br />

Increas<strong>in</strong>g access to tertiary and<br />

cont<strong>in</strong>u<strong>in</strong>g education <strong>in</strong> <strong>Africa</strong>.<br />

ESTABLISHMENT OF AN<br />

ANNUAL AFRICAN FORUM<br />

Br<strong>in</strong>g together <strong>Africa</strong>n leaders, private<br />

sector, academia and civil society.<br />

ESTABLISHMENT OF THE<br />

CONTINENTAL FREE TRADE<br />

AREA BY 2017<br />

To significantly accelerate growth of<br />

and double <strong>in</strong>tra-<strong>Africa</strong> trade by 2022.<br />

THE AFRICAN PASSPORT AND<br />

FREE MOVEMENT OF PEOPLE<br />

Transform<strong>in</strong>g <strong>Africa</strong>’s laws to relax<br />

regulations on movement.<br />

IMPLEMENTATION OF THE<br />

GRAND INGA DAM PROJECT<br />

Inga Dam will generate 43,200 MW of<br />

power to support regional power pools.<br />

THE PAN-AFRICAN E-NETWORK<br />

Strategies for transformative<br />

e-applications and services <strong>in</strong> <strong>Africa</strong>.<br />

SILENCING THE GUNS BY 2020<br />

End<strong>in</strong>g all wars, civil conflicts, gender<br />

based violence and violent conflicts.<br />

AFRICA OUTER<br />

SPACE STRATEGY<br />

This aims to strengthen <strong>Africa</strong>’s use of<br />

outer space to bolster its development.<br />

ESTABLISHMENT OF A<br />

SINGLE AFRICAN AIR<br />

TRANSPORT MARKET<br />

Deliver a s<strong>in</strong>gle <strong>Africa</strong>n air transport<br />

market to facilitate air transportation.<br />

ESTABLISHMENT OF THE<br />

AFRICAN CONTINENTAL<br />

FINANCIAL INSTITUTIONS<br />

Accelerat<strong>in</strong>g <strong>in</strong>tegration and<br />

socio-economic development of <strong>Africa</strong>.<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 19


AFRICAN UNION NEWS<br />

So many millions of <strong>Africa</strong>ns<br />

live <strong>in</strong> the global diaspora<br />

– settled <strong>in</strong> Japan, Russia,<br />

Australia, Ch<strong>in</strong>a, India, South<br />

and North America, and<br />

Europe – that it is now known<br />

as the ‘sixth region of <strong>Africa</strong>’. Development<br />

and economic scholars have focused their<br />

few studies of <strong>Africa</strong>ns <strong>in</strong> the diaspora on<br />

their lives <strong>in</strong> their host countries, focus<strong>in</strong>g<br />

particularly on their <strong>in</strong>tegration <strong>in</strong>to those<br />

countries, their feel<strong>in</strong>gs of isolation and<br />

their experience of racial discrim<strong>in</strong>ation.<br />

However, the impact of members of the<br />

<strong>Africa</strong>n Diaspora on their home countries,<br />

particularly on their economies, is a broad<br />

topic worthy of detailed research that has so<br />

far been left largely unexplored.<br />

Build<strong>in</strong>g engagement<br />

with the Diaspora<br />

Real strides have been made, s<strong>in</strong>ce the<br />

<strong>Africa</strong>n Union held a Global Diaspora<br />

Summit <strong>in</strong> South <strong>Africa</strong> <strong>in</strong> May 2012, <strong>in</strong><br />

allow<strong>in</strong>g diasporans to impact on economies<br />

and development <strong>in</strong> <strong>Africa</strong>. Five ‘legacy’<br />

projects were <strong>in</strong>itiated with great success.<br />

The <strong>Africa</strong>n Diaspora Professional Skills<br />

Database was transferred from the World<br />

Bank <strong>Africa</strong>n Diaspora Program and has led<br />

to the <strong>Africa</strong>n Diaspora Policy Centre<br />

(ADPC), which runs many programmes for<br />

the consolidated development of <strong>Africa</strong>n<br />

communities and economies by <strong>Africa</strong>ns <strong>in</strong><br />

the diaspora. Similarly, the <strong>Africa</strong>n Diaspora<br />

Network (ADN) was <strong>in</strong>itiated <strong>in</strong> America to<br />

galvanise diasporans to contribute to the<br />

development of their home countries’<br />

economies. Other organisations <strong>in</strong>clude the<br />

<strong>Africa</strong>n Diaspora Volunteer Corps through<br />

the group Opportunities for <strong>Africa</strong>ns, which<br />

tra<strong>in</strong>s around 35 young professionals from<br />

the Diaspora and the AU Member States<br />

<strong>in</strong> volunteer<strong>in</strong>g and deploys them to the<br />

countries where their skills are needed.<br />

The <strong>Africa</strong>n Diaspora Policy Centre also<br />

provides shorter workshops for members<br />

of the Diaspora <strong>in</strong> Europe on peacekeep<strong>in</strong>g,<br />

advocacy and lobby<strong>in</strong>g, development and<br />

policy mak<strong>in</strong>g.<br />

Homestr<strong>in</strong>gs is a private company that<br />

helps <strong>Africa</strong>ns with a net worth of $1 million<br />

to <strong>in</strong>vest <strong>in</strong> <strong>Africa</strong>n development, whether<br />

open<strong>in</strong>g bus<strong>in</strong>esses <strong>in</strong> their home country,<br />

where the profit marg<strong>in</strong>s exceed those to be<br />

ga<strong>in</strong>ed <strong>in</strong> their host country, or <strong>in</strong>vest<strong>in</strong>g <strong>in</strong><br />

other people’s companies or start-ups.<br />

Likewise, the <strong>Africa</strong>n Diaspora Development<br />

Marketplace (ADM), an AU body, aims to<br />

help <strong>Africa</strong>n disaporans to <strong>in</strong>vest <strong>in</strong> <strong>Africa</strong>n<br />

bus<strong>in</strong>ess <strong>in</strong>itiatives.<br />

1:54 art fair represent<strong>in</strong>g 150<br />

artists from the <strong>Africa</strong> Diaspora<br />

Dr Joanne Davis looks at how <strong>Africa</strong>n diasporans<br />

<strong>in</strong>teract with their source nations and how the<br />

Cont<strong>in</strong>ent can benefit from the sixth region of <strong>Africa</strong>.<br />

Diasporans<br />

and the<br />

economy<br />

20 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


AFRICAN UNION NEWS<br />

The <strong>Africa</strong>n Institute for Remittance (AIR) professionals <strong>in</strong> the diaspora return to<br />

was founded before the 2012 Summit to <strong>Africa</strong>n countries to help with projects and<br />

<strong>in</strong>vestigate remittance practises <strong>in</strong> <strong>Africa</strong>. <strong>Africa</strong>n citizens go to study <strong>in</strong> the<br />

The impact of remittances is a major issue. In Netherlands, too.<br />

Ho Chi M<strong>in</strong>h City, Vietnam, remittances are <strong>Africa</strong>n governments may consider<br />

used to keep bus<strong>in</strong>ess and real estate creat<strong>in</strong>g jobs and <strong>in</strong>creas<strong>in</strong>g salaries with<strong>in</strong><br />

markets afloat. In the <strong>Africa</strong>n context, we this sector to allow <strong>Africa</strong>n scholars to<br />

need to channel the value of this enormous contribute globally to education and reap<br />

sum so that it can be used most effectively. the rewards of collaboration, such as<br />

Two issues need to be addressed<br />

knowledge transfer.<br />

immediately. Firstly, <strong>Africa</strong>n governments We can never return to the development<br />

should found governmental or bank-based model <strong>in</strong> which knowledge was imported <strong>in</strong>to<br />

Money Transfer Offices IIt’s (MTOs) time to safeguard to play the music, <strong>Africa</strong>; it’s skills time and to light knowledge transfer must<br />

remittances aga<strong>in</strong>st private the MTO lights. closure It’s time as a to meet rely on the a transactional Muppets model that centralises<br />

result of anti-launder<strong>in</strong>g legislation. the Muppet Secondly, Show tonight! <strong>Africa</strong>n It’s time knowledge to put systems. <strong>Africa</strong>n<br />

we need to align the cost of on remittances makeup, it’s to time to citizens dress up are right. the best It’s source of solutions to<br />

sub-Saharan countries with time other to countries. raise the curta<strong>in</strong> issues on the with<strong>in</strong> Muppet the <strong>Africa</strong>n cont<strong>in</strong>ent, and<br />

F<strong>in</strong>ally, careful studies should Show be tonight. made of Why do solutions we always <strong>in</strong>stituted come by outsiders without<br />

the patterns of usage here? and I guess consumption we’ll never so know. an <strong>in</strong>side knowledge of<br />

that we can predict where It’s time and to when get th<strong>in</strong>gs the started the on particular the most context<br />

money is available. sensational <strong>in</strong>spirational celebrational do not work.<br />

Muppetational... This is what we call the Muppet<br />

The Diaspora and Show! education<br />

Conclusion<br />

The first three of eight objectives of the <strong>Africa</strong>n diasporans are as<br />

Tigray Development Xxxxxxxxxxx<br />

Association (TDA), a different and diverse as<br />

diaspora group, highlight Your tread education must be as light and sure, their as home though countries, your and,<br />

<strong>in</strong>tr<strong>in</strong>sically l<strong>in</strong>ked path to peacekeep<strong>in</strong>g.<br />

were upon rice paper. It is most said, of a the Shaol<strong>in</strong> time, they form<br />

In the arena of technical priest can skills walk through walls. discrete • social groups <strong>in</strong> their<br />

development, recent research shows that the<br />

extent of <strong>Africa</strong>n academia published <strong>in</strong><br />

<strong>in</strong>ternational journals fell to 15% <strong>in</strong> 2013.<br />

Fewer <strong>Africa</strong>ns are study<strong>in</strong>g at foreign<br />

universities as there are fewer scholarships<br />

available. Scholarships permitt<strong>in</strong>g <strong>Africa</strong>n<br />

students to undertake foreign study should<br />

be re<strong>in</strong>stituted to enable endur<strong>in</strong>g mentor<strong>in</strong>g<br />

relationships.<br />

The International Organisation<br />

for Migration (IOM) runs a successful<br />

programme – Temporary Return of Qualified<br />

Internationals, now called CD4D (Connect<strong>in</strong>g<br />

Diaspora for Development) – where<br />

host countries. But this new<br />

way of th<strong>in</strong>k<strong>in</strong>g relies on<br />

<strong>Africa</strong>ns to come together as<br />

a group. This is especially<br />

true <strong>in</strong> the contemporary<br />

context of the United Nations<br />

Decade for People of <strong>Africa</strong>n<br />

Descent (2015–2024) where<br />

the theme is: ‘People of<br />

<strong>Africa</strong>n descent: recognition, justice<br />

and development’.<br />

We hope this <strong>in</strong>itial burst of <strong>in</strong>terest<br />

<strong>in</strong> the role of <strong>Africa</strong>ns <strong>in</strong> the Diaspora <strong>in</strong><br />

<strong>Africa</strong>n economies cont<strong>in</strong>ues to grow. •<br />

<strong>Africa</strong>n citizens are the<br />

best source of solutions<br />

to issues with<strong>in</strong> the<br />

<strong>Africa</strong>n cont<strong>in</strong>ent<br />

ukartpics / Alamy Stock Photo<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 21


Orabank, bett<strong>in</strong>g on Pan-<strong>Africa</strong>n bank<strong>in</strong>g<br />

Banks are one of the preferred gateways to <strong>Africa</strong> for <strong>in</strong>ternational <strong>in</strong>vestors. The most successful are<br />

those that manage to establish a strong Pan-<strong>Africa</strong>n footpr<strong>in</strong>t so as to diversify the risk and seize the most<br />

opportunities for growth.<br />

In the past seven years, Oragroup has<br />

experienced very strong growth,<br />

expand<strong>in</strong>g from a presence <strong>in</strong> five<br />

countries <strong>in</strong> West and Central <strong>Africa</strong> to<br />

its current Pan-<strong>Africa</strong>n coverage. Today<br />

Oragroup is present <strong>in</strong> 12 countries <strong>in</strong><br />

West and Central <strong>Africa</strong> (Ben<strong>in</strong>, Burk<strong>in</strong>a<br />

Faso, Ivory Coast, Gabon, Gu<strong>in</strong>ea Conakry,<br />

Gu<strong>in</strong>ea Bissau, Mali, Mauritania, Niger,<br />

Senegal, Chad and Togo) and straddles<br />

four monetary areas (UEMOA, CEMAC,<br />

Gu<strong>in</strong>ea Conakry, Mauritania).<br />

This growth was particularly due to<br />

the acquisition of Banque Régionale de<br />

Solidarité (BRS) <strong>in</strong> 2013. “S<strong>in</strong>ce 2009,<br />

our assets have <strong>in</strong>creased seven-fold<br />

to reach CFA francs 1,492 billion (€ 2.3<br />

billion) and customer loans by eight-fold<br />

to CFA francs 905.2 billion (€ 1.4 billion).<br />

This acquisition really made us what we<br />

are today. But this is by no means the<br />

last step <strong>in</strong> our expansion!” comments<br />

B<strong>in</strong>ta Touré Ndoye, CEO of Oragroup.<br />

Oragroup recently launched a bond issue<br />

on the local market, aim<strong>in</strong>g to raise 35<br />

billion CFA francs <strong>in</strong> two phases. The<br />

first phase that came to a close <strong>in</strong> early<br />

October allowed it to successfully tap<br />

the market to the tune of 20 billion CFA<br />

francs. It is go<strong>in</strong>g back for the second<br />

phase <strong>in</strong> early 2017 to raise the rema<strong>in</strong><strong>in</strong>g<br />

15 billion CFA francs.<br />

Increas<strong>in</strong>gly, its focus is on f<strong>in</strong>anc<strong>in</strong>g<br />

SMEs as they represent the heart of<br />

<strong>Africa</strong>n economies and the future of<br />

<strong>Africa</strong>. “As a bank<strong>in</strong>g <strong>in</strong>stitution we<br />

have a duty to f<strong>in</strong>ance the real economy<br />

and the progression of our customers<br />

<strong>in</strong> our credit portfolio is a testimony to<br />

this commitment. In 2015, bus<strong>in</strong>esses<br />

customers have progressed by nearly<br />

44% after a 40% rise <strong>in</strong> 2014” says<br />

Mrs. Ndoye.<br />

B<strong>in</strong>ta Touré Ndoye was recruited as<br />

Deputy Manag<strong>in</strong>g Director of Oragroup<br />

<strong>in</strong> 2015 and began her career with the<br />

Ecobank Group, where she was<br />

Manag<strong>in</strong>g Director of Ecobank Mali<br />

(2007), then <strong>in</strong> charge of the Group’s<br />

strategic projects (2013). A Malian<br />

national, B<strong>in</strong>ta Touré Ndoye holds an<br />

MBA <strong>in</strong> F<strong>in</strong>ance and International and<br />

Development Economics (University of<br />

Central Oklahoma).<br />

« As a bank<strong>in</strong>g <strong>in</strong>stitution we have a<br />

duty to f<strong>in</strong>ance the real economy ».<br />

She is now <strong>in</strong> charge of the next step<br />

for Oragroup where she is lead<strong>in</strong>g the<br />

transition from a multipolar bank<strong>in</strong>g<br />

group to a coherent and strategically<br />

focused entity.<br />

“Oragroup must now consolidate its<br />

growth, <strong>in</strong>crease its consistency and<br />

deploy a corporate strategy based on<br />

strong values. We want to be a role<br />

model <strong>in</strong> Pan-<strong>Africa</strong>n bank<strong>in</strong>g and,<br />

to accomplish this, we will enhance<br />

synergies and cont<strong>in</strong>ue to optimize the<br />

Group’s skills. We aim to be a pioneer <strong>in</strong><br />

an emerg<strong>in</strong>g f<strong>in</strong>ancial “afro-capitalism”<br />

that is simultaneously authentic, strong<br />

and durable. This necessitates network<br />

expansion, <strong>in</strong>vestments <strong>in</strong> <strong>in</strong>novative<br />

tools and potential acquisitions,” argues<br />

B<strong>in</strong>ta Touré Ndoye.<br />

B<strong>in</strong>ta Touré Ndoye,<br />

Oragroup CEO,<br />

www.orabank.net


FOREWORD<br />

HE Dr Anthony<br />

Mothae Marup<strong>in</strong>g<br />

Commissioner for Economic Affairs<br />

<strong>Africa</strong>n Union Commission<br />

Agenda 2063 is the <strong>Africa</strong>n<br />

blue-pr<strong>in</strong>t for economic<br />

transformation. Its formulation<br />

was based on wide<br />

consultations with a broad<br />

spectrum of <strong>Africa</strong>n<br />

stakeholders, <strong>in</strong>clud<strong>in</strong>g the private sector,<br />

labour, civil society, gender and youth<br />

organisations and networks, academia, media,<br />

artists, and diaspora. With<strong>in</strong> the process of<br />

elaborat<strong>in</strong>g Agenda 2063, 35 national strategic<br />

frameworks and action plans were studied and<br />

their contents factored <strong>in</strong>. Seventeen countries<br />

submitted written <strong>in</strong>puts. AU Constitutive Act,<br />

exist<strong>in</strong>g developmental cont<strong>in</strong>ental frameworks,<br />

<strong>in</strong>itiatives, programmes, and high-level<br />

declarations were taken <strong>in</strong>to account.<br />

Megatrends were studied and situational<br />

analysis performed.<br />

The <strong>Africa</strong>n Vision<br />

Agenda 2063 states the <strong>Africa</strong>n Vision. The<br />

Vision unfolds <strong>in</strong>to seven <strong>Africa</strong>n aspirations. In<br />

the First Ten Year Implementation Plan (FTYIP)<br />

these aspirations further unroll <strong>in</strong>to 20 goals<br />

and 41 priority areas. FTYIP also has 12<br />

fast-track (flagship) projects. Indicators are<br />

near completion, thanks to the team work of<br />

AUC, NPCA, AfDB and UNECA as well as the<br />

<strong>Africa</strong>n statisticians. I particularly laud the<br />

<strong>Africa</strong>n statisticians for their <strong>in</strong>valuable<br />

contribution <strong>in</strong> this regard. More work awaits<br />

them dur<strong>in</strong>g the sett<strong>in</strong>g of base l<strong>in</strong>es and<br />

monitor<strong>in</strong>g and evaluation. AUC and its<br />

technical partners look forward to cont<strong>in</strong>ued<br />

collaboration of our <strong>Africa</strong>n statisticians. We<br />

rema<strong>in</strong> ever <strong>in</strong>debted to them. The 20 goals of<br />

Agenda 2063 encompass<br />

all the 17 Susta<strong>in</strong>able<br />

Development Goals (SDGs).<br />

Integration is core<br />

Agenda 2063 will guide<br />

transformation of <strong>Africa</strong>n<br />

economies by <strong>in</strong>creas<strong>in</strong>g productive<br />

capacities, strengthen<strong>in</strong>g<br />

competitiveness, foster<strong>in</strong>g diversification,<br />

engender<strong>in</strong>g value addition and enabl<strong>in</strong>g the<br />

jo<strong>in</strong><strong>in</strong>g of supply cha<strong>in</strong>s by facilitat<strong>in</strong>g<br />

<strong>in</strong>vestment <strong>in</strong> <strong>in</strong>tra-<strong>Africa</strong> trade with external<br />

partners. Integration rema<strong>in</strong>s the core of<br />

Agenda 2063.<br />

There is cause for optimism with Agenda<br />

2063 and the SDGs. With Agenda 2063 lessons<br />

were drawn from past endeavours. Its<br />

formulation has been <strong>in</strong>clusive and participatory<br />

(public, private sector and civil society) and thus<br />

has a stronger sense of ownership and higher<br />

level of commitment; it has been a bottom-up<br />

process. Requisite capacity for implementation<br />

has been assessed and strategies for clos<strong>in</strong>g<br />

the gaps devised. Risk has also been assessed<br />

and risk mitigation strategies developed.<br />

Domestication process is <strong>in</strong>tegrat<strong>in</strong>g contents<br />

<strong>in</strong>to national and RECs plans ensur<strong>in</strong>g<br />

implementation. Means of implementation have<br />

been given due attention. A communication<br />

strategy has been formulated. A results-based<br />

approach through clear def<strong>in</strong>ition of goals,<br />

targets, and <strong>in</strong>dicators is an added advantage,<br />

enabl<strong>in</strong>g monitor<strong>in</strong>g and evaluation.<br />

Current economic and f<strong>in</strong>ancial challenges<br />

are spurr<strong>in</strong>g member states towards<br />

economic transformation. •<br />

There is cause<br />

for optimism<br />

with Agenda<br />

2063 and the<br />

susta<strong>in</strong>able<br />

development<br />

goals<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 23


AFRICA’S ECONOMIC DEVELOPMENT<br />

Only by <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> a quality childhood and provid<strong>in</strong>g<br />

sexual health and family plann<strong>in</strong>g education can <strong>Africa</strong><br />

unleash the potential of its youth, writes Duncan Pieterse<br />

<strong>Africa</strong>’s Economic Development<br />

<strong>Invest</strong><strong>in</strong>g<br />

<strong>in</strong> youth<br />

The East Asian experience<br />

taught us that when the<br />

labour force grows faster<br />

than the number of<br />

dependants <strong>in</strong> a population, it<br />

can release resources for<br />

<strong>in</strong>vestment <strong>in</strong> economic development. When<br />

there are fewer people to support, an<br />

opportunity emerges for rapid economic<br />

growth, provided the right enabl<strong>in</strong>g<br />

environment exists. This is known as the<br />

‘demographic dividend’, which refers to the<br />

economic growth potential that can occur<br />

when the share of the work<strong>in</strong>g-age<br />

population (15 to 64) is larger than the<br />

non-work<strong>in</strong>g-age share of the population.<br />

<strong>Africa</strong>, with 200 million people between 15 to<br />

24 years old and the youngest population <strong>in</strong><br />

the world, is poised to harness the<br />

demographic dividend.<br />

Harness<strong>in</strong>g a demographic dividend<br />

requires governments to <strong>in</strong>vest <strong>in</strong> the<br />

capabilities of young people and create an<br />

enabl<strong>in</strong>g environment for <strong>in</strong>clusive economic<br />

growth where young people have the rights<br />

and freedoms to achieve their potential.<br />

There are four practical steps that can be<br />

taken to achieve these objectives. First, two<br />

<strong>in</strong>vestments <strong>in</strong> the capabilities of young<br />

people are crucial: early <strong>in</strong>vestments <strong>in</strong> their<br />

human capital and ongo<strong>in</strong>g <strong>in</strong>vestment <strong>in</strong><br />

their sexual and reproductive health.<br />

Second, strategies that ensure economic<br />

growth is <strong>in</strong>clusive of young people<br />

should be prioritised: <strong>in</strong>creas<strong>in</strong>g youth<br />

employment through demand-side<br />

<strong>in</strong>terventions and improv<strong>in</strong>g access to<br />

f<strong>in</strong>ancial services have been shown to be<br />

effective across the world.<br />

The rema<strong>in</strong>der of this article elaborates<br />

on these four practical steps and illustrates<br />

how they can ensure that countries <strong>in</strong> <strong>Africa</strong><br />

realise their demographic dividend. Draw<strong>in</strong>g<br />

on success stories from countries such as<br />

Ethiopia, Zambia, Rwanda, Ghana, South<br />

<strong>Africa</strong> and Kenya highlights the potential for<br />

solutions to be <strong>in</strong>formed by best practice on<br />

the cont<strong>in</strong>ent.<br />

Increase early <strong>in</strong>vestment <strong>in</strong><br />

young people’s human capital<br />

Recent evidence from neuroscience<br />

<strong>in</strong>dicates that childhood is a period of<br />

heightened sensitivity to positive and<br />

negative <strong>in</strong>fluences that can cause<br />

permanent changes to bra<strong>in</strong> architecture<br />

and gene expression <strong>in</strong> a manner that<br />

<strong>in</strong>fluences human skill formation.<br />

Economists have recently formalised this<br />

th<strong>in</strong>k<strong>in</strong>g <strong>in</strong> the human skill formation<br />

24 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


Randy Platt/Getty images<br />

AU YOUTH<br />

INVESTMENT<br />

<strong>Africa</strong> has the youngest<br />

population <strong>in</strong> the world<br />

On 7-9 November 2016 the<br />

Department of Human<br />

Resources, Science and<br />

Technology, through the<br />

division <strong>in</strong> charge of Youth<br />

Development, conducted a<br />

three-day workshop on<br />

youth ma<strong>in</strong>stream<strong>in</strong>g and<br />

the demographic dividend<br />

<strong>in</strong> Mombasa, Kenya. This<br />

workshop was based on the<br />

AU mandate to implement<br />

the January 2016 Summit<br />

Assembly decision on<br />

Accelerat<strong>in</strong>g Youth<br />

Empowerment for<br />

Susta<strong>in</strong>able Development<br />

<strong>in</strong> <strong>Africa</strong> and a focus<br />

on “Harness<strong>in</strong>g the<br />

Demographic Dividend<br />

through <strong>Invest</strong>ment <strong>in</strong><br />

Youth,” <strong>in</strong> 2017. The<br />

workshop was preceded<br />

by HE Dr Nkosazana<br />

Dlam<strong>in</strong>i Zuma launch<strong>in</strong>g the<br />

AUC Youth Ma<strong>in</strong>stream<strong>in</strong>g<br />

Guidel<strong>in</strong>e, which aims to<br />

fast-track the on-go<strong>in</strong>g<br />

youth activities at the<br />

Commission as a path to<br />

realis<strong>in</strong>g the 6th Aspiration<br />

of Agenda 2063.<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 25


AFRICA’S ECONOMIC DEVELOPMENT<br />

model, which is concerned with how<br />

skills are formed over the life cycle of an<br />

<strong>in</strong>dividual. The human skill formation<br />

model is characterised by two key<br />

features: self-productivity and<br />

dynamic complementarity.<br />

Self-productivity means that skills<br />

produced dur<strong>in</strong>g one stage persist <strong>in</strong>to<br />

future periods and dynamic<br />

complementarity refers to the idea<br />

that <strong>in</strong>vestments <strong>in</strong> one period are more<br />

productive when there is a high level of<br />

capability <strong>in</strong> an earlier period.<br />

The key policy implication of these<br />

two features of the human skills<br />

formation model is that the highest<br />

rate of return <strong>in</strong> youth development<br />

comes from <strong>in</strong>vest<strong>in</strong>g as early as<br />

possible, from birth through to the age<br />

of five. Maternal, child healthcare, and<br />

nutrition programmes should <strong>in</strong>clude<br />

the promotion of responsive and<br />

nurtur<strong>in</strong>g caregiv<strong>in</strong>g by mothers;<br />

support for maternal mental health; and<br />

social protection through poverty<br />

reduction strategies that strengthen<br />

family capacity to provide for children.<br />

Early childhood development<br />

programmes for disadvantaged<br />

children can achieve the follow<strong>in</strong>g:<br />

• improve their long-term<br />

health outcomes;<br />

• boost their earn<strong>in</strong>gs by as<br />

much as 25%; and<br />

• generate a rate of return on<br />

<strong>in</strong>vestment of 7–10% through better<br />

outcomes <strong>in</strong> education, health and<br />

economic productivity.<br />

Early <strong>in</strong>vestments <strong>in</strong> the capabilities of<br />

children should be supported by<br />

effective preventative public health<br />

services as these are essential for the<br />

youth. The importance of prioritis<strong>in</strong>g<br />

maternal and child health outcomes is<br />

well-recognised (both outcomes are<br />

United Nations Millennium Development<br />

Goals (MDGs)). However, more<br />

attention needs to be given to<br />

reduc<strong>in</strong>g exposure to <strong>in</strong>fectious and<br />

parasitic diseases, both of which stunt<br />

children’s physical growth as well as<br />

cognitive development, with long-term<br />

consequences for educational<br />

atta<strong>in</strong>ment and subsequent earn<strong>in</strong>gs.<br />

For example, targeted malaria control<br />

programmes <strong>in</strong> Eritrea, Ethiopia,<br />

Zambia and Rwanda have contributed to<br />

an overall decrease <strong>in</strong> maternal and<br />

<strong>in</strong>fant mortality and a healthier<br />

populations.<br />

Increase opportunities<br />

for youth employment<br />

<strong>Invest</strong><strong>in</strong>g <strong>in</strong> the capabilities, educational<br />

and health outcomes of young people are<br />

unlikely to yield a demographic dividend<br />

unless the youth are absorbed by the<br />

labour markets of grow<strong>in</strong>g economies.<br />

S<strong>in</strong>ce <strong>in</strong>sufficient youth wage<br />

employment is primarily a demand-side<br />

problem, labour market demand must be<br />

a priority to improve employment levels.<br />

Put simply, economic growth is the<br />

start<strong>in</strong>g po<strong>in</strong>t for generat<strong>in</strong>g <strong>in</strong>creased<br />

opportunities for youth employment.<br />

S<strong>in</strong>ce agriculture represents the<br />

s<strong>in</strong>gle largest employer of young people<br />

<strong>in</strong> <strong>Africa</strong>, labour demand will come from<br />

growth <strong>in</strong> agriculture or structural<br />

transformation that generates growth<br />

opportunities <strong>in</strong> new sectors. Ethiopia<br />

has achieved average real GDP growth of<br />

10.9% between 2004–2014 based on rapid<br />

expansion of its agriculture and services<br />

sectors, ma<strong>in</strong>ly due to an economic<br />

strategy focused on promot<strong>in</strong>g<br />

agriculture and <strong>in</strong>dustrialisation<br />

while deliver<strong>in</strong>g substantial public<br />

<strong>in</strong>frastructure <strong>in</strong>vestment supported<br />

by effective macroeconomic policy.<br />

International experience suggests that<br />

policy certa<strong>in</strong>ty, a flexible labour market,<br />

regional economic <strong>in</strong>tegration and<br />

improvements <strong>in</strong> the ease of do<strong>in</strong>g<br />

bus<strong>in</strong>ess can encourage exist<strong>in</strong>g firms to<br />

expand and promote the entry of new<br />

firms. As the private sector <strong>in</strong>vests and<br />

grows, jobs are created and the<br />

government ga<strong>in</strong>s tax revenue that can<br />

support the social spend<strong>in</strong>g<br />

programmes highlighted earlier.<br />

Young people f<strong>in</strong>d it especially<br />

difficult to f<strong>in</strong>d their first job, which has<br />

a bear<strong>in</strong>g on their future likelihood of<br />

employment. Therefore, as an economy<br />

grows, policymakers should ensure that<br />

demand-side youth employment policies<br />

are implemented to facilitate the<br />

school-to-work transition and ensure<br />

economic growth does not leave young<br />

people beh<strong>in</strong>d. South <strong>Africa</strong> has<br />

achieved some success with<br />

demand-side youth employment policies,<br />

<strong>in</strong>clud<strong>in</strong>g:<br />

• an expanded public works<br />

programme that provided 1.6 million<br />

jobs s<strong>in</strong>ce its <strong>in</strong>ception <strong>in</strong> 2004;<br />

• an employment tax <strong>in</strong>centive where<br />

the additional costs associated with<br />

employ<strong>in</strong>g young people are lowered<br />

through a government subsidy; and<br />

• learnership agreements that provide<br />

economic growth is<br />

the start<strong>in</strong>g po<strong>in</strong>t for<br />

generat<strong>in</strong>g <strong>in</strong>creased<br />

opportunities for<br />

youth employment.<br />

26 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


AFRICA’S ECONOMIC DEVELOPMENT<br />

INVEST IN SEXUAL AND REPRODUCTIVE HEALTH FOR YOUNG PEOPLE<br />

For many young people <strong>in</strong><br />

<strong>Africa</strong>, a chance to realise<br />

their potential is often<br />

derailed, particularly for<br />

millions of girls, who are<br />

pushed from school and<br />

subjected to child marriage,<br />

early and unplanned<br />

pregnancies, poor access to<br />

healthcare and limited<br />

education. <strong>Invest</strong>ments <strong>in</strong><br />

reproductive health can:<br />

• protect the well-be<strong>in</strong>g<br />

of young people;<br />

• maximise their potential<br />

for healthy and<br />

productive lives; and<br />

• improve social and<br />

economic development.<br />

In sub-Saharan <strong>Africa</strong>, 67%<br />

of married adolescent<br />

women who want to avoid<br />

pregnancy for at least the<br />

next two years are not us<strong>in</strong>g<br />

any contraceptive method.<br />

Two <strong>in</strong>vestments can<br />

empower young people to<br />

make healthy decisions<br />

about their behaviour.<br />

Firstly, comprehensive<br />

sex education can help<br />

young people delay their<br />

sexual debut, reduce the<br />

frequency of unprotected<br />

sexual activity, reduce the<br />

number of sexual partners<br />

and <strong>in</strong>crease the use of<br />

contraception. Secondly,<br />

<strong>in</strong>creas<strong>in</strong>g access to family<br />

plann<strong>in</strong>g is a key strategy<br />

to protect the health of<br />

adolescent girls and reduce<br />

un<strong>in</strong>tended pregnancies,<br />

maternal deaths and<br />

unsafely performed<br />

abortions.<br />

<strong>Invest</strong><strong>in</strong>g <strong>in</strong> the sexual<br />

and reproductive health of<br />

young people also <strong>in</strong>creases<br />

returns on <strong>in</strong>vestments<br />

<strong>in</strong> health, education and<br />

economic growth. Delay<strong>in</strong>g<br />

marriage and childbear<strong>in</strong>g<br />

among adolescent girls<br />

could help <strong>in</strong>crease school<br />

enrolment by 20% across<br />

<strong>Africa</strong> and the more<br />

educated a girl is, the<br />

more likely she is to use<br />

contraception and avoid<br />

un<strong>in</strong>tended pregnancies.<br />

Reduc<strong>in</strong>g adolescent<br />

pregnancy can help<br />

<strong>in</strong>crease <strong>in</strong>come at the<br />

<strong>in</strong>dividual, family and<br />

national level. Ghana has<br />

been able to reduce its<br />

teen pregnancy rate because<br />

it implemented an<br />

adolescent reproductive<br />

health policy and offered<br />

reproductive health services<br />

for youth. The benefits of<br />

<strong>in</strong>vest<strong>in</strong>g <strong>in</strong> the sexual and<br />

reproductive health of<br />

young people are clear –<br />

it is up to governments<br />

across the cont<strong>in</strong>ent to<br />

prioritise these <strong>in</strong>itiatives<br />

<strong>in</strong> their public spend<strong>in</strong>g<br />

programmes.<br />

iStock images<br />

f<strong>in</strong>ancial <strong>in</strong>centives to firms that<br />

offer accredited tra<strong>in</strong><strong>in</strong>g<br />

programmes for the youth.<br />

Improve access to<br />

f<strong>in</strong>ancial systems<br />

F<strong>in</strong>ancial <strong>in</strong>clusion, which refers to all<br />

<strong>in</strong>itiatives that make formal f<strong>in</strong>ancial<br />

services available, accessible and<br />

affordable and goes beyond improved<br />

access to credit to encompass enhanced<br />

access to sav<strong>in</strong>gs and risk mitigation<br />

products, is critical to ensure that<br />

economic growth performance is<br />

<strong>in</strong>clusive and susta<strong>in</strong>ed. While access to<br />

f<strong>in</strong>ancial <strong>in</strong>stitutions encourages sav<strong>in</strong>g<br />

and expands access to credit, access<strong>in</strong>g<br />

credit through formal f<strong>in</strong>ancial<br />

<strong>in</strong>stitutions is much more complicated<br />

for young people, who typically have<br />

little collateral or have no proven<br />

creditworth<strong>in</strong>ess.<br />

New technologies <strong>in</strong>clud<strong>in</strong>g mobile<br />

phone payment services, such as<br />

M-Pesa <strong>in</strong> Kenya, which allows users to<br />

deposit, withdraw, transfer money and<br />

pay for goods and services with a mobile<br />

device, enable many young people to<br />

access low-cost f<strong>in</strong>ancial services. In<br />

2015, $32.5 billion, represent<strong>in</strong>g<br />

approximately 53% of Kenya’s GDP, was<br />

transacted through mobile money<br />

platforms. Look<strong>in</strong>g to the future, mobile<br />

money technology and the result<strong>in</strong>g<br />

f<strong>in</strong>ancial <strong>in</strong>clusion can be leveraged to<br />

support improved outcomes <strong>in</strong> other<br />

sectors. Evidence from Kenya, Tanzania<br />

and Madagascar show that:<br />

• mobile money can be used to save<br />

and pay for healthcare services and<br />

to receive remittances to cover high<br />

out-of-pocket health costs;<br />

• electronic payment platforms can<br />

save healthcare providers the time<br />

and expense needed to travel to<br />

cities to cash paycheques and they<br />

can be used to facilitate timely<br />

payment of performance-based<br />

<strong>in</strong>centives; and<br />

• mobile money can improve<br />

operations by reduc<strong>in</strong>g the risks and<br />

costs of distribut<strong>in</strong>g cash payments<br />

for per diems for healthcare tra<strong>in</strong><strong>in</strong>g<br />

providers.<br />

Deploy<strong>in</strong>g these technologies requires<br />

supportive government regulators<br />

(<strong>in</strong>clud<strong>in</strong>g central banks), as well as new<br />

<strong>in</strong>stitutions (for example, consumer<br />

protection agencies), to ensure that the<br />

benefits of these systems are accrued as<br />

widely and susta<strong>in</strong>ably as possible.<br />

It is estimated that if countries <strong>in</strong><br />

sub-Saharan <strong>Africa</strong> make the right<br />

human capital <strong>in</strong>vestments, the<br />

comb<strong>in</strong>ed demographic dividend could<br />

be at least $500 billion per year (equal to<br />

one third of the region’s current GDP)<br />

for up to 30 years. The evidence<br />

reviewed highlights the successes<br />

achieved <strong>in</strong> <strong>Africa</strong> that could underp<strong>in</strong><br />

future <strong>in</strong>vestments <strong>in</strong> young people<br />

across the cont<strong>in</strong>ent to unlock their<br />

economic potential and harness the<br />

benefits of the demographic dividend. •<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 27


Merck perspective<br />

Prof. Frank Stengenberg-Haverkamp, Ethiopia’s M<strong>in</strong>ister of Health, M<strong>in</strong>ister of Science and Technology, Rasha Kelej and w<strong>in</strong>ners of<br />

UNESCO MARS Best <strong>Africa</strong>n Researchers<br />

Another milestone to empower<br />

women and girls <strong>in</strong> STEM<br />

Merck partners with UNESCO and <strong>Africa</strong>n<br />

Union to empower women <strong>in</strong> the field of<br />

research and healthcare to improve<br />

women health.<br />

Merck has announced five w<strong>in</strong>ners from<br />

Kenya, Burk<strong>in</strong>a Faso, Gabon, Uganda and<br />

Ethiopia for ‘Best <strong>Africa</strong>n Women<br />

Researchers Award’ and four w<strong>in</strong>ners from<br />

Botswana, Cameroon, Gambia and<br />

Zimbabwe for ‘Best Young <strong>Africa</strong>n<br />

Researchers Award’ dur<strong>in</strong>g the recently<br />

held 2nd UNESCO-Merck <strong>Africa</strong> Research<br />

Summit (MARS) <strong>in</strong> Addis Ababa, Ethiopia.<br />

Professor Frank Stangenberg-<br />

Haverkamp, Chairman of Executive<br />

Board and Family Board of E. Merck KG<br />

emphasised “Merck will cont<strong>in</strong>ue to<br />

empower young researchers which raises<br />

the level of scientific research <strong>in</strong> <strong>Africa</strong> and<br />

encourages <strong>in</strong> particular young women<br />

researchers to pursue their dreams, work<br />

for improv<strong>in</strong>g access to health solutions<br />

and make a difference <strong>in</strong> the cont<strong>in</strong>ent.<br />

Moreover, I am very pleased to offer my<br />

support to motivate female researchers<br />

and healthcare providers and recognises<br />

their excellent contribution to fields where<br />

they are underrepresented”.<br />

“Merck will provide MARS award<br />

w<strong>in</strong>ners with tra<strong>in</strong><strong>in</strong>g opportunities to<br />

advance their research to the <strong>in</strong>ternational<br />

standard. They will also be appo<strong>in</strong>ted as<br />

ambassadors of” MERCK STEM Program<br />

for Girls” <strong>in</strong> their own countries through<br />

several future <strong>in</strong>itiatives will be announced<br />

<strong>in</strong> 2017”, expla<strong>in</strong>ed Merck’s Rasha Kelej<br />

Chief Social Officer.<br />

Merck commits to improve<br />

access to Cancer Care through<br />

two <strong>in</strong>itiatives:<br />

MERCK AFRICA ONCOLOGY<br />

FELLOWSHIP PROGRAM<br />

In 2016, Merck has announced the first<br />

“<strong>Africa</strong> Medical Oncology Fellowship<br />

Program” for Sub-Saharan <strong>Africa</strong>n<br />

countries <strong>in</strong> partnership with University of<br />

Nairobi, Kenya and Tata Memorial<br />

Hospital, India.<br />

“We are committed to improve<br />

patient’s access to care all over the world”,<br />

said Belén Garijo, CEO, Merck Healthcare.


Merck perspective<br />

HEALTH FACTS<br />

ASSOCIATED WITH<br />

INFERTILITY IN AFRICA<br />

AND DEVELOPING<br />

COUNTRIES<br />

Accord<strong>in</strong>g to data from the World<br />

Health Organization, more than 180<br />

million couples <strong>in</strong> develop<strong>in</strong>g<br />

countries (one <strong>in</strong> every four<br />

couples) suffer from primary or<br />

secondary <strong>in</strong>fertility. In sub-Saharan<br />

<strong>Africa</strong>, untreated genital <strong>in</strong>fections<br />

such as gonorrhea and chlamydia<br />

may be the cause of up to 85% of<br />

<strong>in</strong>fertility among women. This is<br />

compared to 33% worldwide,<br />

emphasis<strong>in</strong>g the importance of<br />

prevention programs <strong>in</strong> <strong>Africa</strong>.<br />

In addition to rais<strong>in</strong>g awareness,<br />

which will benefit future couples,<br />

Merck started the “Empower<strong>in</strong>g<br />

Berna” project with the aim to<br />

support <strong>in</strong>fertile women establish<br />

their small bus<strong>in</strong>esses so they can<br />

re-build their own <strong>in</strong>dependent and<br />

happier lives. Woman is more than<br />

a Mother, and “Empower<strong>in</strong>g Berna”<br />

proves this every day.<br />

Above: “Be<strong>in</strong>g an oppressed <strong>in</strong>fertile<br />

Maasai Woman is the worst th<strong>in</strong>g that can<br />

happen to anyone. But now my life has<br />

changed with the help of Merck, I am<br />

happy and proud because I can support<br />

myself. Now I am more than a mother”<br />

Rose Chiedo; Cancer survivor start<strong>in</strong>g her<br />

small bus<strong>in</strong>ess with the help of Merck’s<br />

<strong>in</strong>itiative<br />

“In <strong>Africa</strong>, where the number of oncologists<br />

is very limited, this starts by build<strong>in</strong>g<br />

additional medical capacity to <strong>in</strong>crease the<br />

number of qualified oncologists across the<br />

cont<strong>in</strong>ent.”<br />

Candidates from Kenya, Uganda,<br />

Tanzania, Ghana, Botswana and South<br />

<strong>Africa</strong> were provided by one year or two<br />

year medical oncology fellowship<br />

programme, “We’d like to enroll more<br />

candidates and engage other countries<br />

such as Zambia, Rwanda, Ethiopia, Liberia<br />

and Namibia. We firmly believe this is very<br />

important step to improve access to cancer<br />

care <strong>in</strong> <strong>Africa</strong>”. emphasised Rasha Kelej.<br />

“MERCK MORE THAN<br />

A PATIENT” INITIATIVE<br />

This <strong>in</strong>itiative aims to empower women<br />

cancer survivors <strong>in</strong> <strong>Africa</strong> through access to<br />

awareness, health and economic<br />

empowerment through help<strong>in</strong>g them to<br />

establish their own small bus<strong>in</strong>ess so that<br />

they can lead <strong>in</strong>dependent and productive<br />

lives.<br />

Merck will also help rais<strong>in</strong>g awareness<br />

about cancer and tackl<strong>in</strong>g myths and<br />

stigma associated with the disease. “I<br />

believe we can together empower our<br />

communities to access accurate cancer<br />

<strong>in</strong>formation, which should result <strong>in</strong><br />

behavior change coupled with adoption of<br />

health life style for cancer prevention, early<br />

detection and care. Merck is provid<strong>in</strong>g<br />

awareness videos about cancer early<br />

detection and prevention <strong>in</strong> local languages<br />

on our social media”, Kelej added.<br />

MERCK MORE THAN<br />

A MOTHER<br />

“Merck more than a Mother” was<br />

championed by HE First Lady Mrs<br />

Brigitte Touadera <strong>in</strong> Central <strong>Africa</strong>n<br />

Republic and First Lady Mrs Aisha<br />

Buhari <strong>in</strong> Nigeria. The campaign was<br />

also successfully launched <strong>in</strong> Kenya,<br />

Uganda, Cote d’Ivoire and Liberia and<br />

will expand to other <strong>Africa</strong>n and Asian<br />

Countries <strong>in</strong> this year.<br />

MERCK MORE THAN A MOTHER<br />

Merck cont<strong>in</strong>ues its commitment to<br />

empower <strong>in</strong>fertile women across the<br />

cont<strong>in</strong>ent through access to <strong>in</strong>formation,<br />

health and change of m<strong>in</strong>d-set.<br />

In some cultures, childless women still<br />

suffer discrim<strong>in</strong>ation, stigma and ostracism.<br />

An <strong>in</strong>ability to have a child or to become<br />

pregnant can result <strong>in</strong> be<strong>in</strong>g greatly<br />

isolated, dis<strong>in</strong>herited or assaulted. This<br />

often results <strong>in</strong> divorce or physical and<br />

psychological violence.<br />

“Merck more than a mother” will<br />

support governments to def<strong>in</strong>e policies to<br />

improve access to regulated, safe and<br />

effective fertility care and address the need<br />

for <strong>in</strong>terventions to break the stigma<br />

around <strong>in</strong>fertile women and the necessity<br />

for a team approach to family build<strong>in</strong>g<br />

among couples. It will also provide practical<br />

tra<strong>in</strong><strong>in</strong>g for embryologists to build fertility<br />

care capacity <strong>in</strong> <strong>Africa</strong>.


AFRICA’S ECONOMIC DEVELOPMENT<br />

iStock photo<br />

Expand<strong>in</strong>g f<strong>in</strong>ancial<br />

services <strong>in</strong> <strong>Africa</strong><br />

Bisi Lamikanra looks at the benefits of the<br />

expansion of pan-<strong>Africa</strong>n banks and how<br />

<strong>in</strong>ternational collaboration can drive the<br />

development of economic services.<br />

The cross-border expansion of<br />

<strong>Africa</strong>-based banks has become<br />

a dom<strong>in</strong>ant trend <strong>in</strong> the<br />

cont<strong>in</strong>ent’s bank<strong>in</strong>g landscape.<br />

Previously, banks were primarily<br />

domestic, but over the last<br />

decade, there has been a rapid expansion by<br />

banks across the region. The pan-<strong>Africa</strong>n<br />

expansion, has been largely <strong>in</strong>fluenced by the<br />

improv<strong>in</strong>g macroeconomic conditions; banks’<br />

strategic push for growth and diversification of<br />

earn<strong>in</strong>gs; growth of <strong>Africa</strong>n bus<strong>in</strong>esses <strong>in</strong>to<br />

new markets <strong>in</strong> the regions; and exist<strong>in</strong>g<br />

opportunities <strong>in</strong> the unbanked population.<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 31


AFRICA’S ECONOMIC DEVELOPMENT<br />

CHALLENGES<br />

The rapid rise of pan-<strong>Africa</strong>n<br />

banks presents significant<br />

issues and risks. The<br />

<strong>in</strong>creas<strong>in</strong>g possibility of<br />

f<strong>in</strong>ancial contagion is<br />

becom<strong>in</strong>g a major concern for<br />

regulators. For example,<br />

problems <strong>in</strong> the home<br />

country, such as perceptions<br />

of mismanagement or<br />

reputational risks, could lead<br />

to bank runs on subsidiaries.<br />

Similarly, if the operations of<br />

a subsidiary are relatively<br />

large compared to the rest of<br />

the group, economic or<br />

f<strong>in</strong>ancial problems <strong>in</strong> such<br />

countries could affect the<br />

home bank.<br />

As pan-<strong>Africa</strong>n banks have<br />

developed <strong>in</strong> reach and<br />

complexity, significant<br />

supervision gaps, governance<br />

issues, and questions about<br />

cross-border resolution have<br />

emerged. There exists a<br />

misalignment between the<br />

<strong>in</strong>terest of home and host<br />

country regulators, and this is<br />

exacerbated by the<br />

differences <strong>in</strong> the size of the<br />

banks and economies. The<br />

greater the asymmetry <strong>in</strong><br />

economic size between home<br />

and host, the less likely a<br />

f<strong>in</strong>ancial <strong>in</strong>stitution’s strategy<br />

will consider the host<br />

country’s needs and the<br />

greater the threat to f<strong>in</strong>ancial<br />

stability <strong>in</strong> the host country if<br />

problems emerge at home.<br />

Another potential threat to<br />

regional f<strong>in</strong>ancial stability is<br />

that <strong>Africa</strong>n countries are at<br />

different development levels<br />

with respect to their f<strong>in</strong>ancial<br />

sector regulation and<br />

supervision standards and are<br />

at vary<strong>in</strong>g stages of the<br />

implementation of<br />

<strong>in</strong>ternational standards; for<br />

example, some countries have<br />

implemented Basel II<br />

standards, whereas for others<br />

it is still a work <strong>in</strong> progress.<br />

South <strong>Africa</strong>n and Nigerian banks have<br />

followed their corporate clients across borders<br />

as they expand their footpr<strong>in</strong>ts across <strong>Africa</strong>.<br />

For example, Standard Bank plans to expand to<br />

francophone <strong>Africa</strong> based on exist<strong>in</strong>g client<br />

<strong>in</strong>terest. The bank plans to open a corporate<br />

and <strong>in</strong>vestment bank<strong>in</strong>g service <strong>in</strong> Cote<br />

d’Ivoire. Also, banks’ diversification strategies<br />

are driv<strong>in</strong>g their expansion activities. Follow<strong>in</strong>g<br />

the recapitalisation of Nigerian banks <strong>in</strong> 2005,<br />

banks such as United Bank for <strong>Africa</strong> (UBA),<br />

Guaranty Trust Bank (GTB) and Access Bank<br />

began to leverage their new capital to expand<br />

their franchise across <strong>Africa</strong>. New entrant <strong>in</strong><br />

the market, Atlas Mara, is creat<strong>in</strong>g a<br />

pan-<strong>Africa</strong>n bank by acquir<strong>in</strong>g exist<strong>in</strong>g <strong>Africa</strong>n<br />

banks. Through this, it is able to pursue a<br />

strategy of <strong>in</strong>creas<strong>in</strong>g its geographic footpr<strong>in</strong>t<br />

to drive growth and us<strong>in</strong>g economies of scale<br />

to provide synergies and diversify risk.<br />

Pan-<strong>Africa</strong>n banks are headquartered <strong>in</strong><br />

various countries, rang<strong>in</strong>g from large bank<strong>in</strong>g<br />

markets like Angola, Kenya, Nigeria and South<br />

<strong>Africa</strong>, to smaller markets like Togo, Mauritius,<br />

and Namibia. These banks have created an<br />

extensive network of footpr<strong>in</strong>ts across various<br />

countries <strong>in</strong> <strong>Africa</strong> to drive f<strong>in</strong>ancial services<br />

expansion and economic <strong>in</strong>tegration <strong>in</strong> the<br />

cont<strong>in</strong>ent. Accord<strong>in</strong>g to the International<br />

Monetary Fund (IMF), there are seven major<br />

pan-<strong>Africa</strong>n banks with a presence <strong>in</strong> 10 or<br />

more countries.<br />

Alongside physical presence, pan-<strong>Africa</strong>n<br />

banks also have considerable economic<br />

significance beyond their home countries. A<br />

number of these banks can be considered as<br />

systematically important banks <strong>in</strong> their host<br />

countries as they hold a significant share of<br />

total assets. Accord<strong>in</strong>g to Beck (2014), Ecobank<br />

holds more than 10% of total assets <strong>in</strong> 13<br />

<strong>Africa</strong>n countries, Standard Bank <strong>in</strong> n<strong>in</strong>e<br />

countries, and BMCE <strong>in</strong> five countries.<br />

Most pan-<strong>Africa</strong>n banks have adopted two<br />

basic bus<strong>in</strong>ess models: expansion from a<br />

dom<strong>in</strong>ant home base; the other, a diversified<br />

structure or network.<br />

For banks <strong>in</strong> the first group, such as<br />

Standard, the home bank plays a dom<strong>in</strong>ant<br />

role, with subsidiaries contribut<strong>in</strong>g less<br />

than 20% to total assets. In the second group,<br />

the network is more important, as the home<br />

bank is one among many, with the possibility<br />

of the largest bank be<strong>in</strong>g located <strong>in</strong> a different<br />

country. An example is Ecobank, which<br />

has its largest subsidiary <strong>in</strong> Nigeria. As<br />

cross-border bank<strong>in</strong>g grows, the dom<strong>in</strong>ance<br />

of the home group reduces <strong>in</strong> the<br />

group dynamics.<br />

Standard Bank Build<strong>in</strong>g<br />

<strong>in</strong> Cape Town with<br />

Table Mounta<strong>in</strong> <strong>in</strong> the<br />

background<br />

32 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


AFRICA’S ECONOMIC DEVELOPMENT<br />

iStock<br />

Benefits and impact<br />

The activities of pan-<strong>Africa</strong>n banks have<br />

helped to <strong>in</strong>crease competition, improve<br />

efficiency, drive product <strong>in</strong>novation and<br />

advance f<strong>in</strong>ancial <strong>in</strong>clusion and deepen<strong>in</strong>g.<br />

Accord<strong>in</strong>g to the KPMG 2016 <strong>Africa</strong> Bank<strong>in</strong>g<br />

Customer Survey,<br />

customers<br />

customers primarily want their<br />

banks to be more <strong>in</strong>novative, and<br />

to provide high-quality service<br />

and greater convenience.<br />

primarily want<br />

their banks to be<br />

more <strong>in</strong>novative,<br />

and to provide<br />

high-quality<br />

service and<br />

greater<br />

convenience.<br />

Some pan-<strong>Africa</strong>n<br />

banks are already <strong>in</strong> tune with their customers,<br />

and are already satisfy<strong>in</strong>g this need. Standard<br />

Bank, the largest pan-<strong>Africa</strong>n bank by asset<br />

size, recently developed a pan-<strong>Africa</strong>n mobile<br />

application that provides a s<strong>in</strong>gle view of the<br />

bank customers’ bank<strong>in</strong>g. The mobile<br />

application enables customers to open bank<br />

accounts onl<strong>in</strong>e, make transfers across<br />

borders, trade on various stock exchanges, and<br />

start homeowner <strong>in</strong>surance. With Ecobank<br />

Regional Cards, customers can affordably<br />

access their money at Ecobank branches<br />

across the 36 countries of operation. United<br />

Bank for <strong>Africa</strong> (UBA) is us<strong>in</strong>g <strong>digital</strong> bank<strong>in</strong>g<br />

to drive bank<strong>in</strong>g penetration among the<br />

unbanked and underbanked across <strong>Africa</strong>.<br />

The bank currently has 20 e-bank<strong>in</strong>g<br />

products across card, ATM, POS, <strong>in</strong>ternet<br />

and mobile bank<strong>in</strong>g.<br />

In driv<strong>in</strong>g f<strong>in</strong>ancial <strong>in</strong>clusion and<br />

deepen<strong>in</strong>g, the pan-<strong>Africa</strong>n banks provide<br />

f<strong>in</strong>ancial <strong>in</strong>termediation to unserved SMEs and<br />

<strong>in</strong>dividuals. In serv<strong>in</strong>g the underbanked<br />

population, pan-<strong>Africa</strong>n banks have <strong>in</strong>troduced<br />

agent and mobile bank<strong>in</strong>g, and expanded<br />

microf<strong>in</strong>ance operations. Ecobank’s mobile<br />

money service generated a transaction<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 33


AFRICA’S ECONOMIC DEVELOPMENT<br />

volume of $48 million from a user base of<br />

215,938 <strong>in</strong> 10 countries. Through its<br />

microf<strong>in</strong>ance partnerships, the bank promotes<br />

the f<strong>in</strong>ancial <strong>in</strong>clusion of micro-bus<strong>in</strong>esses and<br />

low-<strong>in</strong>come <strong>in</strong>dividuals. Currently, through<br />

these partnerships, the bank serves 1.7 million<br />

low-<strong>in</strong>come <strong>in</strong>dividuals and 1.5 million<br />

micro-entrepreneurs.<br />

Pan-<strong>Africa</strong>n banks are also able to drive<br />

operational efficiency across the various<br />

countries they work <strong>in</strong> by consolidat<strong>in</strong>g certa<strong>in</strong><br />

support services. For example, Ecobank<br />

created a shared services and technology<br />

subsidiary that provides a technology<br />

<strong>in</strong>frastructure and platform for the Group. This<br />

ensures a seamless bank<strong>in</strong>g experience for<br />

consumers, and greater efficiency and cost<br />

control for the bank.<br />

Through their expansion activities, it is also<br />

expected that pan-<strong>Africa</strong>n banks can facilitate<br />

upgrades <strong>in</strong> the quality of f<strong>in</strong>ancial supervision<br />

and regulation, for example, IFRS account<strong>in</strong>g<br />

and Basel II/III, <strong>in</strong> host countries. Generally,<br />

pan-<strong>Africa</strong>n banks have been beneficial to<br />

the <strong>Africa</strong>n f<strong>in</strong>ancial <strong>in</strong>dustry. At the same<br />

time, the rapid expansion of pan-<strong>Africa</strong>n<br />

banks poses oversight challenges that, if<br />

unaddressed, may <strong>in</strong>crease systemic risks.<br />

Look<strong>in</strong>g forward<br />

As the growth trend for pan-<strong>Africa</strong>n<br />

bank<strong>in</strong>g cont<strong>in</strong>ues to <strong>in</strong>crease, and pan-<strong>Africa</strong>n<br />

banks cont<strong>in</strong>ue to engage more <strong>in</strong> product<br />

development and <strong>in</strong>novation, their contribution<br />

to f<strong>in</strong>ancial deepen<strong>in</strong>g will become more<br />

significant, and the number of countries <strong>in</strong><br />

which they are systematically important is<br />

also likely to <strong>in</strong>crease.<br />

In ensur<strong>in</strong>g the ga<strong>in</strong>s from pan-<strong>Africa</strong>n<br />

bank<strong>in</strong>g are susta<strong>in</strong>ed, well-function<strong>in</strong>g<br />

regional or pan-<strong>Africa</strong>n f<strong>in</strong>ancial<br />

<strong>in</strong>frastructures must be developed alongside<br />

improved supervisory collaboration across<br />

various bank regulators.<br />

The existence of national and regional<br />

f<strong>in</strong>ancial <strong>in</strong>frastructures – efficient payment<br />

and settlement systems, credit rat<strong>in</strong>g<br />

agencies and credit <strong>in</strong>formation systems,<br />

<strong>in</strong>clud<strong>in</strong>g comparability of credit <strong>in</strong>formation<br />

across countries, and dispute resolution<br />

and consumer protection mechanisms – are<br />

necessary for reap<strong>in</strong>g the benefits of<br />

pan-<strong>Africa</strong>n banks expansion. To aid the<br />

region’s f<strong>in</strong>ancial stability, payment and<br />

settlement systems need to be consistent<br />

across countries to avoid payment<br />

difficulties. Examples of cross-border<br />

<strong>in</strong>tegration of payment and settlement<br />

systems <strong>in</strong>clude the West <strong>Africa</strong>n Economic<br />

and Monetary Union (WAEMU), the East<br />

<strong>Africa</strong>n Payments System (EAPS)<br />

(launched <strong>in</strong> 2013) and the recent <strong>in</strong>troduction<br />

of a settlement system for regional<br />

transactions <strong>in</strong> the Southern <strong>Africa</strong>n<br />

Development Community (SADC).<br />

The rise of pan-<strong>Africa</strong>n banks raises the<br />

risk of f<strong>in</strong>ancial contagion across borders.<br />

There exists a need to improve bank<strong>in</strong>g<br />

sector oversight and strengthen regulatory<br />

frameworks as f<strong>in</strong>ancial markets become more<br />

<strong>in</strong>tegrated. This can be achieved by develop<strong>in</strong>g<br />

a cooperative framework that consolidates<br />

a view of the owner operations and risks<br />

faced by bank<strong>in</strong>g groups. This <strong>in</strong>volves the<br />

establishment of <strong>in</strong>dividual supervisory<br />

colleges and the cont<strong>in</strong>uous exchange<br />

of <strong>in</strong>formation that is outl<strong>in</strong>ed <strong>in</strong><br />

memorandums of understand<strong>in</strong>g between<br />

regulators and supervisors.<br />

Increas<strong>in</strong>g the resilience and transparency<br />

of pan-<strong>Africa</strong>n bank<strong>in</strong>g groups would require<br />

an improvement <strong>in</strong> the flow of <strong>in</strong>formation<br />

between regulators and cross-border banks, as<br />

well as the harmonisation of regulatory<br />

supervision to ensure that pan-<strong>Africa</strong>n banks<br />

operate cost effectively across borders. •<br />

$48mN<br />

The transactional<br />

volume of Ecobank’s<br />

mobile money service<br />

generated across 10<br />

countries.<br />

MAJOR PAN-AFRICAN BANKS BY GEOGRAPHIC FOOTPRINT<br />

36<br />

25<br />

17<br />

20 20<br />

15<br />

Eco Bank Standard Bank BMCE UBA *BSIC BCP<br />

7<br />

19<br />

13 14<br />

2008 2013<br />

3<br />

11<br />

Source: Bank Annual Reports; *BSIC figures are for 2011 and 2015<br />

34 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


Shared Growth - us<strong>in</strong>g our assets and expertise to develop<br />

commercial solutions to the challenges fac<strong>in</strong>g society<br />

After a decade of economic growth, <strong>Africa</strong>’s economies are still<br />

struggl<strong>in</strong>g to realise a more <strong>in</strong>clusive prosperity, and much of the<br />

cont<strong>in</strong>ent’s population cont<strong>in</strong>ues to lag beh<strong>in</strong>d on various <strong>in</strong>dicators<br />

of human development.<br />

With this <strong>in</strong> m<strong>in</strong>d Barclays <strong>Africa</strong> is lead<strong>in</strong>g a shift from traditional<br />

grant mak<strong>in</strong>g and corporate responsibility programmes, towards<br />

an <strong>in</strong>tegrated approach that delivers both shareholder and social<br />

returns. By embrac<strong>in</strong>g a philosophy of shared value, we are seek<strong>in</strong>g<br />

to more deliberately apply our substantial resources – both assets<br />

and expertise – to unlock<strong>in</strong>g solutions to social challenges through<br />

<strong>in</strong>novative products, services, and partnerships. This is Shared<br />

Growth.<br />

By tackl<strong>in</strong>g social challenges through commercial bus<strong>in</strong>ess models,<br />

Barclays <strong>Africa</strong> is able to offer self-susta<strong>in</strong><strong>in</strong>g and scalable solutions<br />

that <strong>in</strong>crease access to education and employment opportunities<br />

through skill build<strong>in</strong>g, support small and medium enterprises (SMEs)<br />

that help grow the economy, and provide wider, more convenient<br />

access to appropriate f<strong>in</strong>ancial services <strong>in</strong> our communities.<br />

Forg<strong>in</strong>g strong public-private partnerships is key to creat<strong>in</strong>g shared<br />

value that can deliver maximum impact and reach the greatest<br />

number of people across the cont<strong>in</strong>ent. As such we engage and<br />

work with like-m<strong>in</strong>ded partners <strong>in</strong> bus<strong>in</strong>ess, government, academia<br />

and the non-profit sector to leverage its expertise and blended<br />

resources.<br />

Our Shared Growth strategy therefore focuses on three key areas<br />

where we as a bus<strong>in</strong>ess can have the greatest impact:<br />

1. Education and Skills Development – <strong>Africa</strong> has the youngest<br />

population <strong>in</strong> the world with an estimated 50% aged between<br />

15 and 24. Nearly half of all youth on the cont<strong>in</strong>ent are not<br />

enrolled <strong>in</strong> any form of education, employment or tra<strong>in</strong><strong>in</strong>g. We<br />

have committed $101m* over the next three years to support<br />

education and skills development, target<strong>in</strong>g youth <strong>in</strong> the 10<br />

countries where we operate, and are implement<strong>in</strong>g a number of<br />

<strong>in</strong>itiatives as part of this <strong>in</strong>vestment:<br />

• ReadytoWork, our free, onl<strong>in</strong>e and face-to-face pan-<strong>Africa</strong>n<br />

employability <strong>in</strong>itiative aims to upskill young people who<br />

are sett<strong>in</strong>g out to f<strong>in</strong>d employment or create selfemployment<br />

through learn<strong>in</strong>g material that covers work,<br />

people, money and entrepreneurial skills.<br />

• Our Scholarship programme, which launched <strong>in</strong> 2016 <strong>in</strong><br />

partnership with several universities, supports and facilitates<br />

access to quality education for students who would<br />

otherwise not be able to pursue and complete their studies<br />

due to the unaffordability of fees, and lack of access to<br />

fund<strong>in</strong>g.<br />

• Our capacity build<strong>in</strong>g programmes for education <strong>in</strong>stitutions<br />

and agencies seek to improve the adm<strong>in</strong>istration of schools<br />

by provid<strong>in</strong>g f<strong>in</strong>ancial management and governance tra<strong>in</strong><strong>in</strong>g<br />

to Department of Basic Education staff and School Govern<strong>in</strong>g<br />

Body Members.<br />

2. Enterprise Development – On average, SMEs account for<br />

50% of the total labour force <strong>in</strong> <strong>Africa</strong>. The SME sector is critical<br />

to enabl<strong>in</strong>g economic growth. By offer<strong>in</strong>g them <strong>in</strong>novative<br />

f<strong>in</strong>ancial solutions and bus<strong>in</strong>ess development support services<br />

(through our Enterprise Development Centres, <strong>in</strong>cubation/<br />

acceleration programs, and lend<strong>in</strong>g platforms), we are nurtur<strong>in</strong>g<br />

the entrepreneurs of tomorrow and have committed to raise<br />

$94m* with the purpose of support<strong>in</strong>g <strong>Africa</strong>’s grow<strong>in</strong>g and<br />

diverse SME sector.<br />

3. F<strong>in</strong>ancial Inclusion – <strong>Africa</strong> currently has the highest f<strong>in</strong>ancial<br />

exclusion rates <strong>in</strong> the world. Approximately one <strong>in</strong> four adults<br />

has access to a formal bank account, and an estimated 326<br />

million adults <strong>in</strong> <strong>Africa</strong> rema<strong>in</strong> unbanked. We are focus<strong>in</strong>g on<br />

enabl<strong>in</strong>g <strong>digital</strong> and non-<strong>digital</strong> access to underserved<br />

consumers through real bank<strong>in</strong>g and value-add products and<br />

services to promote wider more convenient access to f<strong>in</strong>ancial<br />

services.<br />

We are committed to <strong>Africa</strong> and its people and we will cont<strong>in</strong>ue to<br />

put <strong>in</strong>to practice the pr<strong>in</strong>ciples that drive our vision of Shared Growth<br />

and prosperity.<br />

For more <strong>in</strong>formation visit our website at<br />

http://www.barclaysafrica.com/barclaysafrica/Citizenship<br />

*Average rand-USD exchange rate as at July 2016<br />

Barclays <strong>Africa</strong> Group Limited is authorized as a bank controll<strong>in</strong>g company by the South <strong>Africa</strong>n Reserve Bank. Registered <strong>in</strong> South <strong>Africa</strong>. Registration number is 1986/003934


AFRICAN UNION<br />

MISSION TO THE USA<br />

HE Dr Arikana Chihombori Quao<br />

Ambassador Extraord<strong>in</strong>ary and Plenipotentiary,<br />

<strong>Africa</strong>n Union Mission to the USA<br />

As the <strong>Africa</strong>n Union Ambassador to the USA, I have<br />

the pleasure and honor to welcome you to our <strong>Africa</strong>,<br />

a magical cont<strong>in</strong>ent as beautiful as its people.<br />

- COMING SOON -<br />

THE GRAND AFRICA TOUR 2017<br />

A guided tour of <strong>Africa</strong> from Cape Town to Cairo<br />

Come jo<strong>in</strong> us; for an EXCITING ADVENTURE OF A LIFETIME<br />

AKWABA!!<br />

KARIBUNI!!<br />

DUMELA!!<br />

AHLAAN BIKOM!!<br />

WAMUKELEKILE!!<br />

FOR INFORMATION PLEASE CONTACT US:<br />

EMAIL: au-wash<strong>in</strong>gton@africa-union.org<br />

PHONE: (+202)3421100<br />

CAIRO<br />

CAPE TOWN


FOREWORD<br />

HE Dr Elham<br />

Mahmoud<br />

Ahmed Ibrahim<br />

Commissioner for Infrastructure & Energy<br />

<strong>Africa</strong>n Union Commission<br />

With the theme of the<br />

summit be<strong>in</strong>g<br />

“Harness<strong>in</strong>g the<br />

Demographic Dividend<br />

through <strong>Invest</strong>ments<br />

<strong>in</strong> the Youth”, it is<br />

imperative that we focus our attentions on<br />

education. Policymakers emphasise that ICT <strong>in</strong><br />

education has a multiplier effect throughout<br />

the education system, by enhanc<strong>in</strong>g learn<strong>in</strong>g<br />

and provid<strong>in</strong>g students with new sets of skills;<br />

by reach<strong>in</strong>g students with poor or no access<br />

(especially those <strong>in</strong> rural and remote regions);<br />

by facilitat<strong>in</strong>g and improv<strong>in</strong>g the tra<strong>in</strong><strong>in</strong>g of<br />

teachers; and by m<strong>in</strong>imis<strong>in</strong>g costs associated<br />

with the delivery of traditional <strong>in</strong>struction.<br />

A brave new world<br />

The world has changed more over the last<br />

50 years than it changed <strong>in</strong> the 200 years<br />

before that, and this is largely ow<strong>in</strong>g to the<br />

technological revolution we f<strong>in</strong>d ourselves <strong>in</strong>.<br />

While the development of traditional networks<br />

is needed to cover all areas, we also have to<br />

accompany the <strong>in</strong>dustrial society that has<br />

moved <strong>in</strong>to an era of advanced technological<br />

<strong>in</strong>novation, affect<strong>in</strong>g the way nations run their<br />

bus<strong>in</strong>esses, their <strong>in</strong>stitutions and lead their<br />

lives. One of the areas <strong>in</strong> which these<br />

technological advances are dramatically<br />

<strong>in</strong>fluenc<strong>in</strong>g people’s lives is <strong>in</strong>formation<br />

technology and telecommunications – hence<br />

the claim that we are <strong>in</strong> a ‘<strong>digital</strong> revolution’ that<br />

is driv<strong>in</strong>g us towards an ‘<strong>in</strong>formation society’.<br />

It has become clear that the cont<strong>in</strong>ent<br />

benefits when member states work together.<br />

A review of <strong>in</strong>frastructure-shar<strong>in</strong>g experiences<br />

found that develop<strong>in</strong>g countries can save<br />

billions and speed universal<br />

broadband access by shar<strong>in</strong>g<br />

<strong>in</strong>frastructure. These sav<strong>in</strong>gs<br />

can be obta<strong>in</strong>ed both through<br />

shar<strong>in</strong>g telecom <strong>in</strong>frastructure<br />

(such as ducts, fibres and masts)<br />

as well as shar<strong>in</strong>g with other utility<br />

<strong>in</strong>frastructure such as roads, power<br />

grids, fuel pipel<strong>in</strong>es and rail l<strong>in</strong>es.<br />

The Program for Infrastructure<br />

Development <strong>in</strong> <strong>Africa</strong> (PIDA) provides a<br />

common framework for <strong>Africa</strong>n stakeholders<br />

to build the <strong>in</strong>frastructure necessary for more<br />

<strong>in</strong>tegrated transport, energy, ICT and transboundary<br />

water networks to boost trade,<br />

spark growth and create jobs. PIDA will allow<br />

countries to be the primary beneficiaries to<br />

meet forecast demand for <strong>in</strong>frastructure<br />

services and boost their competitiveness by<br />

<strong>in</strong>creas<strong>in</strong>g efficiencies, accelerat<strong>in</strong>g growth,<br />

facilitat<strong>in</strong>g <strong>in</strong>tegration <strong>in</strong> the world economy,<br />

improv<strong>in</strong>g liv<strong>in</strong>g standards, and unleash<strong>in</strong>g<br />

<strong>in</strong>tra-<strong>Africa</strong>n trade<br />

In addition to look<strong>in</strong>g at new ways of<br />

develop<strong>in</strong>g <strong>in</strong>frastructure, re<strong>in</strong>vent<strong>in</strong>g the<br />

way we use energy has to be at the top of our<br />

priority list. Renewable energy is a natural<br />

choice for <strong>Africa</strong> given its vast available<br />

renewable energy resources. The Sun Belt<br />

covers most of <strong>Africa</strong>, oceans and seas<br />

surround the whole cont<strong>in</strong>ent and over 80%<br />

of respondents <strong>in</strong> a survey cited <strong>Africa</strong>’s w<strong>in</strong>d<br />

and solar resources as a strong driver for<br />

renewables deployment. Renewable energy<br />

is also attractive especially <strong>in</strong> <strong>Africa</strong>, as it is<br />

relatively quick and cheap to deploy on a small<br />

scale <strong>in</strong> remote areas compared with fossil<br />

fuels or expansion of networks. •<br />

re<strong>in</strong>vent<strong>in</strong>g<br />

the way we use<br />

energy has to<br />

be at the top<br />

of our priority<br />

list<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 37


Engie perspective<br />

Susta<strong>in</strong>ably <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> <strong>Africa</strong> and<br />

prepar<strong>in</strong>g the future Energy System<br />

The world is currently go<strong>in</strong>g through<br />

an energy revolution towards a less<br />

carbon-<strong>in</strong>tensive, more decentralized<br />

energy supported by <strong>digital</strong> solutions.<br />

ENGIE has <strong>in</strong>tegrated the challenges of<br />

this revolution <strong>in</strong>to its strategy. At the<br />

beg<strong>in</strong>n<strong>in</strong>g of 2016, the Group redesigned<br />

its overall organisation by focus<strong>in</strong>g on the<br />

different territories. Each geographic<br />

division covers all five of the Group’s<br />

bus<strong>in</strong>esses (electricity, natural gas, energy<br />

services to territories, companies and<br />

<strong>in</strong>dividuals) <strong>in</strong> a given area. <strong>Africa</strong> is a rich<br />

and heterogeneous cont<strong>in</strong>ent with a<br />

def<strong>in</strong>ite potential for economic growth<br />

and at a turn<strong>in</strong>g po<strong>in</strong>t <strong>in</strong> its history. A<br />

bus<strong>in</strong>ess unit has therefore been<br />

dedicated to the <strong>Africa</strong>n cont<strong>in</strong>ent which<br />

is operational s<strong>in</strong>ce<br />

1 January 2016.<br />

The Group’s presence <strong>in</strong> <strong>Africa</strong><br />

is ma<strong>in</strong>ly <strong>in</strong> northern and southern<br />

<strong>Africa</strong> which has 25-30% of the<br />

population but accounts for 75% of its<br />

energy consumption. Today, through our<br />

various bus<strong>in</strong>esses we have a significant<br />

presence <strong>in</strong> Morocco, Algeria, Egypt and<br />

South <strong>Africa</strong>.<br />

ENGIE’s ambition <strong>in</strong> <strong>Africa</strong> is to go<br />

further and to break <strong>in</strong>to a succession of<br />

eight to 10 countries and build a significant<br />

presence. We develop our bus<strong>in</strong>esses, <strong>in</strong><br />

particular the production of electricity,<br />

from renewable energies and natural gas.<br />

ENGIE also provides energy services to<br />

<strong>in</strong>dustrial and tertiary companies. F<strong>in</strong>ally,<br />

for the rural areas,<br />

we want to br<strong>in</strong>g decentralised energy<br />

solutions <strong>in</strong> order to meet the<br />

considerable expectations of the<br />

populations. Electricity is a social and<br />

economic necessity. If the weight of<br />

electricity <strong>in</strong> GDP is at the most 5%, then<br />

100% of the economy depends on it.<br />

<strong>Africa</strong>’s challenges<br />

<strong>Africa</strong> suffers from a general deficit <strong>in</strong><br />

production means with around 620 million<br />

people <strong>in</strong> need of electricity. Sub-Saharan<br />

<strong>Africa</strong>, exclud<strong>in</strong>g South <strong>Africa</strong> has 53,000<br />

MW connected to the grid, the equivalent


Engie perspective<br />

Above: Power<br />

Corner - m<strong>in</strong>i-grid<br />

Left: Tarfaya – 301<br />

MW w<strong>in</strong>d farm<br />

of Portugal. A lack of access to the<br />

network, particularly <strong>in</strong> rural areas, hamper<br />

the development and could be a catalyst<br />

for a rural exodus.<br />

However, ENGIE believes that<br />

<strong>Africa</strong>’s access to energy is at a turn<strong>in</strong>g<br />

po<strong>in</strong>t. There are def<strong>in</strong>itely a number of<br />

positive evolutions that can be identified.<br />

Some <strong>Africa</strong>n countries have developed<br />

excellent regulations which could serve<br />

as a benchmark for other countries. A<br />

stable regulatory framework attracts<br />

foreign <strong>in</strong>vestors and <strong>in</strong>dustries. These<br />

will serve as an accelerator for the<br />

national development.<br />

Another factor is the structural decl<strong>in</strong>e<br />

<strong>in</strong> the production costs of renewables<br />

particularly <strong>in</strong> w<strong>in</strong>d and solar. <strong>Invest</strong>ors<br />

nowadays look at renewable energies as a<br />

low-risk and attractive <strong>in</strong>vestment to add<br />

to their portfolio provided that the Power<br />

Purchase agreements are solid. Moreover<br />

it is crucial that <strong>in</strong>vestments should be<br />

made <strong>in</strong> technologies which are the most<br />

cost efficient, tak<strong>in</strong>g <strong>in</strong>to account the local<br />

availability of RES (solar irradiation, water,<br />

w<strong>in</strong>d, biomass, storage) and the local<br />

conditions. We need a market design that<br />

optimises and secures the <strong>in</strong>vestments <strong>in</strong><br />

RES, both centralised and off-grid and to<br />

have tariffs which are full cost reflective.<br />

<strong>Africa</strong> will <strong>in</strong>deed need both<br />

centralised and decentralised energy<br />

solutions. As baseload is required, the<br />

mix of solutions will depend on the<br />

progress of storage systems.<br />

ENGIE aims at further develop<strong>in</strong>g its<br />

centralised solutions. Currently we have a<br />

portfolio of thermal and renewable assets.<br />

We built Tarfaya (301 MW), <strong>Africa</strong>’s largest<br />

w<strong>in</strong>d farm to date. In South <strong>Africa</strong> ENGIE<br />

operates Aurora W<strong>in</strong>d Power, a 98 MW<br />

w<strong>in</strong>d park and 2 PV plants of 21 MW. We<br />

are construct<strong>in</strong>g Kathu, a 100 MW<br />

Concentrated Solar Power plant. ENGIE has<br />

a long-stand<strong>in</strong>g gas expertise, particularly<br />

<strong>in</strong> Algeria and Egypt (E&P and LNG). With<strong>in</strong><br />

the gas value cha<strong>in</strong> we are exam<strong>in</strong><strong>in</strong>g<br />

opportunities for develop<strong>in</strong>g <strong>in</strong>frastructure<br />

and gas-to-power <strong>in</strong>stallations.<br />

The chang<strong>in</strong>g energy world also<br />

creates a particularly favourable<br />

environment for the development of<br />

energy services <strong>in</strong> <strong>Africa</strong>. For eng<strong>in</strong>eer<strong>in</strong>g<br />

and consult<strong>in</strong>g, ENGIE has a historical<br />

presence on the cont<strong>in</strong>ent via its subsidiary<br />

Tractebel. With regard to facility<br />

management and energy efficiency<br />

services, we have built over the years<br />

strong positions <strong>in</strong> Morocco and Algeria.<br />

Advancement of new technologies<br />

will give a boost to decentralised power<br />

generation for isolated companies and<br />

rural villages. At ENGIE we are look<strong>in</strong>g at<br />

several bus<strong>in</strong>ess models for this.<br />

PowerCorner is ENGIE’s easy-to-set up<br />

standalone conta<strong>in</strong>erised energy solution<br />

for rural village electrification. It <strong>in</strong>cludes<br />

generators, PV systems and lithium ion<br />

batteries. The first PowerCorner has been<br />

<strong>in</strong>stalled <strong>in</strong> a Tanzanian village <strong>in</strong> which<br />

customers pay for electricity via mobile<br />

money. Next to that we launched a plan<br />

to deploy solar kits <strong>in</strong> several <strong>Africa</strong>n<br />

countries and we want to optimize the<br />

supply of electricity to telecoms<br />

<strong>in</strong>frastructure <strong>in</strong> <strong>Africa</strong>.<br />

Improved technology, comprehensive<br />

centralised and decentralised legal<br />

frameworks, capex reduction, access to<br />

f<strong>in</strong>ance and <strong>in</strong>tegration of solutions <strong>in</strong><br />

<strong>digital</strong> platforms will be decisive factors for<br />

the success of rural electrification <strong>in</strong> <strong>Africa</strong>.<br />

With ENGIE we can br<strong>in</strong>g our technical,<br />

legal, f<strong>in</strong>ancial and <strong>in</strong>stitutional skills.<br />

Local anchorage and the development<br />

of a resolutely partnership-based<br />

approach with <strong>Africa</strong>n communities,<br />

clients and governments is a priority.<br />

We want to listen to and understand<br />

the needs of our stakeholders <strong>in</strong> order<br />

to best respond to them.<br />

<strong>Africa</strong> faces huge demands for<br />

energy and <strong>in</strong>frastructure . As a company<br />

we will make the necessary <strong>in</strong>vestment<br />

decisions that will deliver susta<strong>in</strong>able<br />

solutions <strong>in</strong> a controlled risk environment<br />

to achieve our global goal of provid<strong>in</strong>g 20<br />

million people with electricity by 2020.<br />

ENGIE has been present <strong>in</strong> <strong>Africa</strong> for<br />

over 50 years, where it operates <strong>in</strong> the<br />

fields of electricity, natural gas and<br />

services. ENGIE is also present through<br />

its solidarity <strong>in</strong>vestment fund, “ENGIE<br />

Rassembleurs d’Énergies”, which <strong>in</strong>vests<br />

<strong>in</strong> susta<strong>in</strong>able energy access projects for<br />

vulnerable populations.<br />

www.engie-africa.com<br />

Contact<br />

ENGIE <strong>Africa</strong><br />

1, place Samuel de Champla<strong>in</strong><br />

Faubourg de l’Arche<br />

92390 Paris La Défense Cedex


POWER, ENERGY & INFRASTRUCTURE<br />

Power to<br />

<strong>Africa</strong><br />

Power, Energy & Infrastructure<br />

40 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


POWER, ENERGY & INFRASTRUCTURE<br />

Pamela Whitby explores the massive potential for renewable<br />

energy <strong>in</strong> <strong>Africa</strong> and the opportunity to leapfrog<br />

technologically and lead the way <strong>in</strong> a green energy<br />

is challeng<strong>in</strong>g other<br />

countries, and even<br />

cont<strong>in</strong>ents, <strong>in</strong> both the North<br />

and South, <strong>in</strong> the race<br />

towards deliver<strong>in</strong>g energy<br />

“<strong>Africa</strong><br />

from 100% renewable<br />

resources.” This is the view of Dr Youba Sokona, who<br />

has recently been appo<strong>in</strong>ted to lead the Independent<br />

Delivery Unit (IDU) of the <strong>Africa</strong>n Renewable Energy<br />

Initiative (AREI).<br />

Sokona, who attended the United Nations (UN)<br />

Framework Convention on Climate Change (COP22)<br />

<strong>in</strong> Marrakech <strong>in</strong> November 2016, says: “It is<br />

remarkable to see how much attention, traction and<br />

support AREI has received s<strong>in</strong>ce launch<strong>in</strong>g <strong>in</strong> Paris<br />

last year.”<br />

The outcomes of the 2015 COP21 <strong>in</strong> Paris, where 195<br />

countries signed the first ever legally b<strong>in</strong>d<strong>in</strong>g climate<br />

deal, have been well documented. The Paris Agreement<br />

aims to limit warm<strong>in</strong>g to “well below 2°C above<br />

pre-<strong>in</strong>dustrial levels” and “to pursue efforts to limit<br />

the temperature <strong>in</strong>crease to 1.5°C” with action to start<br />

from 2020. However, <strong>in</strong> 2016, accord<strong>in</strong>g to the World<br />

Meteorological Organization (WMO), global<br />

temperatures are runn<strong>in</strong>g at 1.2°C above pre-<strong>in</strong>dustrial<br />

levels and set a new record-break<strong>in</strong>g high for the third<br />

year runn<strong>in</strong>g, leav<strong>in</strong>g scientists question<strong>in</strong>g whether<br />

the agreement has gone far enough.<br />

Although the threat of climate change is not<br />

unique to <strong>Africa</strong>, with over two-thirds of the<br />

cont<strong>in</strong>ent’s population still without electricity access,<br />

it can play a pivotal role <strong>in</strong> leapfrogg<strong>in</strong>g the rest<br />

68%<br />

Of people <strong>in</strong><br />

<strong>Africa</strong> are<br />

still without<br />

electricity<br />

Two gentlemen <strong>in</strong>stall<strong>in</strong>g a 160W<br />

photovoltaic / solar panel on the roof<br />

of a hospital <strong>in</strong> East <strong>Africa</strong>.<br />

Randy Plett/Getty images<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 41


POWER, ENERGY & INFRASTRUCTURE<br />

of the world to a greener, more susta<strong>in</strong>able future.<br />

With AREI, this is a goal that <strong>Africa</strong>’s leaders<br />

across all echelons of society have thrown their weight<br />

beh<strong>in</strong>d, and <strong>in</strong> Paris came what Sokona argues “may<br />

be one of the most ambitious undertak<strong>in</strong>gs com<strong>in</strong>g<br />

out of the climate talks”. By 2020, <strong>Africa</strong>’s aim is to deliver<br />

an additional 10GW from renewable energy alone and a<br />

further 300GW by 2030; this, bear<strong>in</strong>g <strong>in</strong> m<strong>in</strong>d, that the<br />

energy capacity of the cont<strong>in</strong>ent today stands at 150GW.<br />

Step by step<br />

So one year on from the groundbreak<strong>in</strong>g COP21 beg<strong>in</strong>s the<br />

hard graft to deliver on these bold targets and the core<br />

transformative objectives of AREI: to put people and<br />

energy access first, while also combat<strong>in</strong>g the grow<strong>in</strong>g<br />

climate change crisis.<br />

“In <strong>Africa</strong>, the biggest challenge is still one of access<br />

but the cont<strong>in</strong>ent also needs energy to fuel<br />

<strong>in</strong>dustrialisation [many countries are grow<strong>in</strong>g at over 5%]<br />

and job creation. At the bank, we see green energy as part<br />

of the solution,” says Alex Rugamba, Director of Energy,<br />

Environment and Climate Change at the <strong>Africa</strong>n<br />

Development Bank (AfDB).<br />

As one of AREI’s ma<strong>in</strong> funders, the AfDB, appo<strong>in</strong>ted by<br />

the AU to act as a trustee <strong>in</strong> the <strong>in</strong>itiative and to host the<br />

IDU, has already pledged $12 billion to support <strong>Africa</strong>’s<br />

green energy projects. Back<strong>in</strong>g has also come from<br />

Germany ($2.1 million) and France<br />

($6.3 million), and at COP22, United States Agency for<br />

International Development (USAID) awarded a second<br />

$11 million tranche of fund<strong>in</strong>g to fulfill its overall<br />

commitment of $20 million.<br />

“My sense that this share [of the bank’s <strong>in</strong>vestment <strong>in</strong><br />

renewables] will <strong>in</strong>crease progressively as we go forward.<br />

We certa<strong>in</strong>ly see renewables as <strong>in</strong>tegral to our growth<br />

strategy as we move ahead,” Rugamba says. It is reported<br />

that bank’s <strong>in</strong>vestment is expected to leverage $45–$50<br />

billion from the private sector.<br />

One year <strong>in</strong>, Sokona says the IDU is currently be<strong>in</strong>g<br />

staffed so that work can beg<strong>in</strong> <strong>in</strong> earnest to support the<br />

diverse sets of public, private and civic stakeholders<br />

across the cont<strong>in</strong>ent. “Our aim is to develop<br />

transformative, ‘programmatic’ approaches to renewable<br />

energy <strong>in</strong>vestments,” he expla<strong>in</strong>s. “While we are look<strong>in</strong>g<br />

at the current pipel<strong>in</strong>e of renewable energy projects and<br />

will assess which of these are <strong>in</strong> l<strong>in</strong>e with AREI criteria,<br />

the overrid<strong>in</strong>g focus of the <strong>in</strong>itiative is to help <strong>Africa</strong><br />

develop and fund comprehensive, policy-oriented solutions<br />

that can meet the real needs of people, communities and<br />

the productive sectors.”<br />

Among the steps needed will be to: develop synergies<br />

between exist<strong>in</strong>g and future renewable projects; build<br />

multi-stakeholder partnerships; promote regional<br />

<strong>in</strong>tegration; and harness geospatial and economic<br />

<strong>in</strong>formation relat<strong>in</strong>g to cont<strong>in</strong>ent-wide endowments.<br />

“It’s still early days but with AREI’s delivery unit<br />

now be<strong>in</strong>g rationalised there is a lot of positive<br />

momentum,” says Rugamba.<br />

Abundant resources, significant challenges<br />

Home to some of the hottest, wettest and w<strong>in</strong>diest parts<br />

Jeffreys Bay W<strong>in</strong>d Farm at dawn <strong>in</strong> South <strong>Africa</strong><br />

as we scale up <strong>in</strong>vestment<br />

we will need to have a<br />

correspond<strong>in</strong>g effort to<br />

<strong>in</strong>crease skills capacity<br />

ALEX RUGAMBA,<br />

Director of Energy, Environment and<br />

Climate Change at the <strong>Africa</strong>n<br />

Development Bank (AfDB)<br />

42 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


POWER, ENERGY & INFRASTRUCTURE<br />

TOWARDS AN<br />

EARTH-FRIENDLY AFRICA<br />

$12bn<br />

AfDB’s commitment<br />

to renewable energy<br />

150GW<br />

<strong>Africa</strong>’s current energy<br />

capacity from all resources<br />

10GW<br />

Renewable energy<br />

targeted for delivery by 2020<br />

300GW<br />

To be generated by 2030 from<br />

renewable energy resources alone<br />

300m MW<br />

The potential for solar<br />

photovoltaic on the cont<strong>in</strong>ent<br />

250m MW<br />

Is blow<strong>in</strong>g <strong>in</strong> the w<strong>in</strong>d<br />

Source: AU, IRENA, World Bank, AfDB<br />

EPA/Nic Bothma/Alamy<br />

of the world, <strong>Africa</strong> has no shortage of renewable energy.<br />

But harness<strong>in</strong>g these effectively poses some challenges.<br />

Accord<strong>in</strong>g to the International Renewable Energy<br />

Agency (IRENA), one significant barrier to policymakers<br />

and project developers is a lack of geospatial and<br />

economic data relat<strong>in</strong>g to country specific energy<br />

resources. A 2015 analysis of 21 countries states that<br />

“about half lack even basic renewable energy resource<br />

assessments”. It cont<strong>in</strong>ues: “The ability to identify<br />

priority, low-regret renewable energy development<br />

options that satisfy multiple stakeholder concerns is<br />

crucial for <strong>Africa</strong>n countries with limited f<strong>in</strong>ancial and<br />

<strong>in</strong>stitutional resources for energy plann<strong>in</strong>g and<br />

development”.<br />

Accord<strong>in</strong>g to Sokona, f<strong>in</strong>d<strong>in</strong>g synergies with<br />

exist<strong>in</strong>g and future renewable energy projects will<br />

be a focus of AREI’s work.<br />

Not unique to renewables, but to the energy sector as<br />

a whole, is the skills shortage. The AfDB’s New Deal on<br />

Energy for <strong>Africa</strong> efforts are underway to develop skills<br />

and today there are five support centres of excellence<br />

across the cont<strong>in</strong>ent. “From welders to technicians and<br />

eng<strong>in</strong>eers, there are a whole range of skills that are<br />

needed, and as we scale up <strong>in</strong>vestment we will need<br />

o have a correspond<strong>in</strong>g effort to <strong>in</strong>crease skills<br />

capacity,” Rugamba says.<br />

Another renewable challenge is the ability to ensure<br />

that tariffs are competitive enough for the project to be<br />

viable. In March 2008, for example, South <strong>Africa</strong> launched<br />

its Renewable Energy Feed-<strong>in</strong> Tariff (REFIT), which<br />

proved to be an important catalyst for driv<strong>in</strong>g <strong>in</strong>terest <strong>in</strong><br />

renewables by entrepreneurs and private <strong>in</strong>vestors both<br />

nationally and globally. Accord<strong>in</strong>g to a State of Energy<br />

report released by South <strong>Africa</strong>’s Department of Energy,<br />

by late 2015 REIPPPP had attracted R53.2 billion <strong>in</strong> foreign<br />

direct <strong>in</strong>vestment and f<strong>in</strong>anc<strong>in</strong>g <strong>in</strong>to South <strong>Africa</strong> across<br />

all bid w<strong>in</strong>dows.<br />

Gett<strong>in</strong>g renewable energy onto the national grid, as<br />

well as the ability to store it, are other technical hurdles,<br />

but these are becom<strong>in</strong>g easier as technology develops,<br />

says Rugamba. A major advantage of CSP, for example,<br />

over other renewable technologies like w<strong>in</strong>d and<br />

photovoltaic is its ability to convert sunlight <strong>in</strong>to energy<br />

that can easily be stored and subsequently used for power<br />

generation when demand is higher.<br />

Whether <strong>Africa</strong>’s renewable energy story becomes<br />

world lead<strong>in</strong>g rema<strong>in</strong>s to be seen. In 2017, with sunsh<strong>in</strong>e<br />

on their backs and the w<strong>in</strong>d propell<strong>in</strong>g them forward,<br />

<strong>Africa</strong>n leaders have a responsibility to keep the<br />

renewable flame burn<strong>in</strong>g. •<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 43


POWER, ENERGY & INFRASTRUCTURE<br />

<strong>Invest</strong><strong>in</strong>g <strong>in</strong><br />

<strong>in</strong>frastructure<br />

For economic, technological and <strong>in</strong>deed social growth,<br />

<strong>in</strong>frastructure is key. With the right fund<strong>in</strong>g allocated to key<br />

development cornerstones, <strong>Africa</strong>n <strong>in</strong>dustry could flourish<br />

Trade and Development Bank (TDB), formerly known<br />

as PTA Bank, is an <strong>Africa</strong>n Regional Development<br />

F<strong>in</strong>ancial Institution established <strong>in</strong> 1985. The bank’s<br />

mandate is to f<strong>in</strong>ance and foster trade,socioeconomic<br />

development and regional economic<br />

<strong>in</strong>tegration across its member states. Although TDB<br />

is an <strong>in</strong>stitution of the Common Market for Eastern and Southern<br />

<strong>Africa</strong> (COMESA), its membership is open to Non-COMESA states,<br />

non-regional countries as well as <strong>in</strong>stitutional shareholders. It<br />

offers a broad range of products and services, across the private<br />

and public sectors, <strong>in</strong>clud<strong>in</strong>g debt, equity and quasi-equity as well<br />

as guarantees. TDB’s <strong>in</strong>vestments cut across agriculture, trade,<br />

<strong>in</strong>dustry, <strong>in</strong>frastructure, energy and tourism, among others, and<br />

are made on a commercial basis and susta<strong>in</strong>ability pr<strong>in</strong>ciples.<br />

In view of <strong>Africa</strong>’s <strong>in</strong>frastructure deficit, which is estimated<br />

to be approximately $90 billion every year for the next decade,<br />

and the critical role it plays <strong>in</strong> the economic development of<br />

Member States, TDB has expanded its <strong>in</strong>tervention <strong>in</strong><br />

<strong>in</strong>frastructure f<strong>in</strong>ance <strong>in</strong> the last few years. Between 2010 and<br />

2015 alone, the bank provided project f<strong>in</strong>ance fund<strong>in</strong>g <strong>in</strong> the sum<br />

of $714.9 million to <strong>in</strong>frastructure projects <strong>in</strong> the region.<br />

Infrastructure projects f<strong>in</strong>anced by the bank are <strong>in</strong> three ma<strong>in</strong><br />

sub-sectors: energy, ICT, and transport and logistics.<br />

In the energy sub-sector, the bank f<strong>in</strong>anced power generation<br />

from renewable energy sources, contribut<strong>in</strong>g to access to<br />

electricity <strong>in</strong> the region and improv<strong>in</strong>g the livelihoods of citizens.<br />

<strong>Invest</strong>ments <strong>in</strong> various sectors<br />

The bank’s <strong>in</strong>tervention <strong>in</strong> the ICT sector, among others, <strong>in</strong>cludes<br />

f<strong>in</strong>anc<strong>in</strong>g of fibre <strong>in</strong>frastructure, connect<strong>in</strong>g its member states to<br />

the web, improv<strong>in</strong>g technological advancements and contribut<strong>in</strong>g<br />

to access and affordability of <strong>in</strong>ternet services.<br />

In the aviation space, TDB has provided f<strong>in</strong>anc<strong>in</strong>g for <strong>Africa</strong>n<br />

airl<strong>in</strong>es such as Ethiopian Airl<strong>in</strong>es, Kenya Airways and RwandAir.<br />

TDB f<strong>in</strong>anced the purchase of aircrafts and also <strong>in</strong> some cases<br />

availed liquidity support for the operation of the airl<strong>in</strong>e. These<br />

<strong>in</strong>vestments have contributed to the expansion <strong>in</strong>itiatives of<br />

$714.9mN<br />

provided by the<br />

Trade and<br />

Development<br />

Bank (TDB) <strong>in</strong><br />

project f<strong>in</strong>ance<br />

fund<strong>in</strong>g,<br />

between 2010<br />

and 2015 to<br />

<strong>in</strong>frastructure<br />

projects <strong>in</strong> the<br />

COMSEA region.<br />

44 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


POWER, ENERGY & INFRASTRUCTURE<br />

iStock/deldew<br />

the energy projects will<br />

facilitate provision of quality<br />

education, which is vital <strong>in</strong><br />

build<strong>in</strong>g human capital<br />

Katse Dam <strong>in</strong> Lesotho<br />

various <strong>Africa</strong>n airl<strong>in</strong>es to <strong>in</strong>crease and modernise their fleet, open<br />

up new routes and <strong>in</strong>crease frequency of flights with<strong>in</strong> <strong>Africa</strong>.<br />

TDB projects are closely aligned to the Susta<strong>in</strong>able Development<br />

Goals (SDG). This <strong>in</strong>cludes TDB’s work and efforts <strong>in</strong> provid<strong>in</strong>g<br />

affordable and clean energy; climate mitigation <strong>in</strong>itiatives; <strong>in</strong>dustry<br />

<strong>in</strong>novation and <strong>in</strong>frastructure; quality education; <strong>in</strong>crease<br />

employment opportunities <strong>in</strong> the region and economic growth.<br />

The Lake Turkana W<strong>in</strong>d Power Project <strong>in</strong> Kenya and Hydromax<br />

Power Plant <strong>in</strong> Uganda (projects co-f<strong>in</strong>anced by the bank) are a<br />

case <strong>in</strong> po<strong>in</strong>t, with the achievement of climate adaptation and<br />

mitigation actions. Furthermore, energy projects contribute<br />

towards ensur<strong>in</strong>g generation and distribution of power to various<br />

population groups of <strong>Africa</strong>n citizens <strong>in</strong> the Eastern and Southern<br />

<strong>Africa</strong>n region. The availability of affordable and reliable power <strong>in</strong><br />

turn has an effect on the establishment and operations of<br />

<strong>in</strong>dustries and factories. These <strong>in</strong>dustries provide employment<br />

opportunities and contribute towards economic growth. For<br />

<strong>in</strong>stance, the bank’s f<strong>in</strong>anc<strong>in</strong>g towards Ndola Energy has helped<br />

to meet the deficit <strong>in</strong> power supply <strong>in</strong> Zambia. The energy projects<br />

contribute to the susta<strong>in</strong>able development goal of establishment of<br />

<strong>in</strong>dustries, <strong>in</strong>novation and <strong>in</strong>frastructure.<br />

In Kenya, the supply of adequate electricity to the national grid<br />

will contribute towards ensur<strong>in</strong>g that there is adequate supply of<br />

electricity to public schools. The government of Kenya is<br />

implement<strong>in</strong>g a programme of connection of electricity supply to<br />

all public schools. The schools will be implement<strong>in</strong>g learn<strong>in</strong>g us<strong>in</strong>g<br />

<strong>digital</strong> platforms – referred to as the Laptop Project. Therefore, the<br />

energy projects will facilitate provision of quality education, which<br />

is vital <strong>in</strong> build<strong>in</strong>g human capital, thus lead<strong>in</strong>g to susta<strong>in</strong>able and<br />

<strong>in</strong>clusive growth <strong>in</strong> the region.<br />

The bank’s <strong>in</strong>frastructure projects have also created<br />

employment opportunities <strong>in</strong> the regions they are located, creat<strong>in</strong>g<br />

27,612 direct employment opportunities. When the contractors and<br />

suppliers to the projects are considered, the number rises to 81,973<br />

jobs. Employment opportunities for female employees with<strong>in</strong> the<br />

project are 7,347 and when contractors and suppliers are<br />

considered employment offered to women are 25,513.<br />

The Trade and Development Bank is build<strong>in</strong>g <strong>in</strong>creased capacity<br />

<strong>in</strong> address<strong>in</strong>g the <strong>in</strong>frastructure deficit <strong>in</strong> <strong>Africa</strong> by <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> key<br />

susta<strong>in</strong>able and socially <strong>in</strong>clusive regional projects. The bank will<br />

expand its outreach and <strong>in</strong>tervention <strong>in</strong> its member states <strong>in</strong><br />

Eastern and Southern <strong>Africa</strong>. •<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 45


POWER, ENERGY & INFRASTRUCTURE<br />

Oil and gas discoveries<br />

are plentiful <strong>in</strong> both the<br />

frontier and established<br />

exploration regions<br />

of <strong>Africa</strong>. Resource<br />

owners are anxious to<br />

implement developments <strong>in</strong> the field to<br />

power their nations and boost their<br />

revenue flow. A host of hydrocarbon<br />

discoveries have been made over the<br />

past few years: Egypt’s ‘supergiant’<br />

offshore Zohr discovery – current<br />

estimates put the f<strong>in</strong>d at 32Tcf of<br />

natural gas; offshore Senegal there is<br />

the SNE field, which has 641 million<br />

barrels of recoverable oil and undrilled<br />

prospects, with a promis<strong>in</strong>g potential<br />

of 2.7 billion barrels; and <strong>in</strong> nearby<br />

Mauritania and straddl<strong>in</strong>g the<br />

Senegal border is the Greater Tortue<br />

Complex, which holds an estimated<br />

25Tcf of gas.<br />

Across the cont<strong>in</strong>ent are the<br />

well-known massive natural gas<br />

accumulations <strong>in</strong> Mozambique and<br />

Tanzania, along with the landlocked<br />

Albert<strong>in</strong>e Bas<strong>in</strong> <strong>in</strong> Uganda with its 1.5<br />

billion barrels of oil. To the north, Kenya<br />

now has an estimated 750 million<br />

barrels of crude oil resources, and<br />

count<strong>in</strong>g, <strong>in</strong> the South Lokichar Bas<strong>in</strong>.<br />

The list of notable <strong>Africa</strong>n oil and gas<br />

discoveries that are await<strong>in</strong>g further<br />

exploration and development is lengthy.<br />

A tremendous amount of foreign<br />

<strong>in</strong>vestment capital – hundreds and<br />

hundreds of billions of dollars – will be<br />

needed to br<strong>in</strong>g these projects to<br />

fruition. For example, the 1,443km<br />

pipel<strong>in</strong>e needed to transport oil from<br />

Ugandan oil fields to the Tanzanian<br />

coast will cost at least $3.5 billion alone.<br />

Then there are the roads, a ref<strong>in</strong>ery,<br />

storage facilities, and countless other<br />

amenities needed amount<strong>in</strong>g to billions<br />

more. With the exception of Egypt,<br />

these regions have little to no oil or gas<br />

<strong>in</strong>frastructure <strong>in</strong> the ‘discovery areas’,<br />

mean<strong>in</strong>g additional <strong>in</strong>vestments, along<br />

with <strong>in</strong>novative technological solutions,<br />

will be required to br<strong>in</strong>g the resources<br />

to market.<br />

In addition, ancillary services to<br />

project developers will be paramount.<br />

This presents an excellent opportunity<br />

for <strong>in</strong>vestors to get <strong>in</strong> on the ground<br />

floor <strong>in</strong> many cases, and for host<br />

nations to take advantage of what<br />

foreign partners can br<strong>in</strong>g to the table,<br />

especially <strong>in</strong> help<strong>in</strong>g to develop a local<br />

<strong>in</strong>dustry and talent pool.<br />

Dianne Sutherland stresses the importance of a<br />

competitive marketplace to secure vital fund<strong>in</strong>g from<br />

<strong>in</strong>vestors for <strong>Africa</strong>’s energy <strong>in</strong>dustries, which would<br />

br<strong>in</strong>g with it undiscovered economic prosperity<br />

Develop<strong>in</strong>g<br />

<strong>Africa</strong>’s<br />

hydrocarbon<br />

resources<br />

32Tcf<br />

Estimated amount of<br />

natural gas <strong>in</strong> Egypt’s<br />

‘supergiant’ Zohr gas field<br />

$3.5bn<br />

Cost of lay<strong>in</strong>g 1,443km of<br />

pipel<strong>in</strong>e to transport oil<br />

from Uganda to Tanzania<br />

46 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


POWER, ENERGY & INFRASTRUCTURE<br />

An oil platform on the Atlantic Ocean <strong>in</strong> Walvis Bay, Namibia<br />

iStock /laranik<br />

Access<strong>in</strong>g capital<br />

While these projects could very well<br />

be lucrative, <strong>Africa</strong> is not the only<br />

<strong>in</strong>vestment dest<strong>in</strong>ation <strong>in</strong> the world.<br />

Around the globe there are a plethora<br />

of energy projects for <strong>in</strong>vestors to<br />

consider open<strong>in</strong>g their wallets for.<br />

As such, <strong>in</strong> today’s low oil price<br />

environment, <strong>Africa</strong>n governments<br />

need to do what is necessary to<br />

attract <strong>in</strong>vestment capital rather than<br />

los<strong>in</strong>g out to global competitors who<br />

ma<strong>in</strong>ta<strong>in</strong> an attractive and welcom<strong>in</strong>g<br />

<strong>in</strong>vestment climate.<br />

It is an <strong>in</strong>vestor’s market and the<br />

fiscal and regulatory regimes must be<br />

realistic and offer a w<strong>in</strong>-w<strong>in</strong> proposition<br />

to both the <strong>in</strong>vestor and host nation.<br />

<strong>Invest</strong>ors will not only look at the<br />

resources to be monetised, and the<br />

economics, but also the ‘above ground’<br />

risks such as regional security, the<br />

political climate, ease of do<strong>in</strong>g bus<strong>in</strong>ess,<br />

fiscal terms, and so on. In short, the<br />

more attractive the terms, the better<br />

the chance an <strong>in</strong>vestor might overlook<br />

any riskier factors when decid<strong>in</strong>g where<br />

to place precious capital.<br />

On the right path<br />

The <strong>Africa</strong>n Development Bank, <strong>in</strong><br />

cooperation with the <strong>Africa</strong>n Union and<br />

other partners, has scaled up its efforts<br />

and cont<strong>in</strong>ue to work with <strong>Africa</strong>n<br />

governments to design and implement<br />

strategies for optimal utilisation of oil<br />

and gas resources to accelerate growth<br />

and development <strong>in</strong> the cont<strong>in</strong>ent.<br />

In 2007 Ghana’s Jubilee Field was<br />

discovered and rapidly brought onl<strong>in</strong>e<br />

<strong>in</strong> December 2010. After the <strong>in</strong>itial<br />

discoveries, the government went about<br />

the bus<strong>in</strong>ess of creat<strong>in</strong>g a long-term<br />

strategy to develop its resources, create<br />

a local services <strong>in</strong>dustry, and develop<br />

its human capital. Indicators of Ghana’s<br />

success <strong>in</strong>clude the number of new<br />

exploration contracts signed and jo<strong>in</strong>t<br />

ventures established with <strong>in</strong>ternational<br />

oil and services companies, along with<br />

a grow<strong>in</strong>g skilled labour pool, all<br />

transpir<strong>in</strong>g <strong>in</strong> under a decade.<br />

This is a good time for <strong>Africa</strong>n<br />

nations to put <strong>in</strong> place the mechanisms<br />

to <strong>in</strong>sulate their oil <strong>in</strong>dustries from<br />

future volatility and secure their<br />

position as a premier <strong>in</strong>vestment<br />

dest<strong>in</strong>ation. <strong>Invest</strong>ors want to <strong>in</strong>vest; all<br />

they need is a good reason to do so. •<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 47


POWER, ENERGY & INFRASTRUCTURE<br />

Sarah Rundell explores the <strong>Africa</strong>n<br />

M<strong>in</strong><strong>in</strong>g Vision and how the cont<strong>in</strong>ent<br />

can strike gold with a comb<strong>in</strong>ation of<br />

<strong>in</strong>vestment, structural transformation<br />

and policy reformation<br />

The<br />

<strong>Africa</strong>n<br />

m<strong>in</strong><strong>in</strong>g<br />

mission<br />

The rush of global <strong>in</strong>vestment <strong>in</strong>to <strong>Africa</strong>’s<br />

resource sector over the last decade failed<br />

to deliver the broad-based development the<br />

cont<strong>in</strong>ent craves. The Republic of Côte<br />

d’Ivoire and Tanzania rank as two of the<br />

world’s fastest grow<strong>in</strong>g economies,<br />

accord<strong>in</strong>g to the International Monetary Fund’s latest<br />

World Economic Outlook. Yet the pace of growth of the<br />

two countries does not reflect their rank<strong>in</strong>g accord<strong>in</strong>g to<br />

the United Nations Development Programme’s (UNDP)<br />

Human Development Index. <strong>Invest</strong>ment <strong>in</strong> <strong>Africa</strong>’s<br />

resource sector has slowed and commodity prices have<br />

dropped. The International Monetary Fund has projected<br />

that <strong>Africa</strong>’s economy will grow by 3% <strong>in</strong> 2016, well below<br />

the 6% average growth over the last decade and its<br />

lowest rate <strong>in</strong> the last 15 years. Commodity prices have<br />

always buffeted the cont<strong>in</strong>ent’s fortunes, but the <strong>in</strong>ability<br />

of <strong>Africa</strong> to turn its exceptional m<strong>in</strong>eral wealth <strong>in</strong>to<br />

long-term wealth creation is critical challenge that<br />

needs to be addressed.<br />

A solution could be at hand. The <strong>Africa</strong>n M<strong>in</strong><strong>in</strong>g Vision<br />

(AMV), formerly adopted by <strong>Africa</strong>n Heads of State at the<br />

2009 <strong>Africa</strong>n Union Summit, is <strong>Africa</strong>’s first attempt to<br />

foster a cont<strong>in</strong>ent-wide m<strong>in</strong><strong>in</strong>g policy. It sets out an<br />

ambitious resource-based development and <strong>in</strong>dustrial<br />

strategy that calls for a paradigm shift away from the<br />

resource rent-centred strategy that has governed <strong>Africa</strong>n<br />

TANZANIA Geita, artisanal<br />

gold m<strong>in</strong><strong>in</strong>g <strong>in</strong> Mgusu<br />

48 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


POWER, ENERGY & INFRASTRUCTURE<br />

9%<br />

of Ghana’s gold production<br />

<strong>in</strong> 2000 came from artisanal<br />

m<strong>in</strong>ers rais<strong>in</strong>g to<br />

23%<br />

by 2010<br />

m<strong>in</strong><strong>in</strong>g for two decades. Instead, it offers m<strong>in</strong>eral-based<br />

<strong>in</strong>dustrialisation, structural transformation and better<br />

<strong>in</strong>tegration. It strives to engender “transparent, equitable<br />

and optimal exploitation of <strong>Africa</strong>’s m<strong>in</strong>eral resources to<br />

underp<strong>in</strong> broad-based susta<strong>in</strong>able growth and<br />

socio-economic development.”<br />

A key tenet of the AMV asks <strong>Africa</strong>n governments to<br />

measure the extent of their own m<strong>in</strong>eral wealth. The<br />

current knowledge gap leaves governments struggl<strong>in</strong>g to<br />

make <strong>in</strong>formed decisions on the true value of their<br />

resources, often sell<strong>in</strong>g m<strong>in</strong><strong>in</strong>g concessions too cheaply.<br />

It <strong>in</strong>hibits <strong>in</strong>vestment policy and weakens barga<strong>in</strong><strong>in</strong>g<br />

power with <strong>in</strong>ternational <strong>in</strong>vestors.<br />

Boost<strong>in</strong>g <strong>in</strong>tegration<br />

The AMV seeks to promote <strong>Africa</strong>’s small-scale m<strong>in</strong>ers,<br />

boost<strong>in</strong>g these entrepreneurs’ <strong>in</strong>tegration <strong>in</strong>to the rural<br />

and national economy. Figures from the <strong>Africa</strong> Progress<br />

Report 2013 show that <strong>in</strong> 2000, artisanal m<strong>in</strong><strong>in</strong>g<br />

contributed 9% of Ghana’s gold production. By 2010 that<br />

figure had risen to 23%, with over one million Ghanaians<br />

directly dependent on artisanal m<strong>in</strong><strong>in</strong>g for their<br />

livelihoods. One World Bank study estimates that there<br />

are 620,000 artisanal and small-scale m<strong>in</strong>ers <strong>in</strong> Tanzania.<br />

Estimates put the number of artisanal gold m<strong>in</strong>ers <strong>in</strong><br />

Mali between 100,000 and 200,000. These m<strong>in</strong>ers produce<br />

around four tonnes of gold a year – 8% of national output.<br />

Now the AMV calls on governments to “harness the<br />

potential of artisanal m<strong>in</strong><strong>in</strong>g to improve rural<br />

livelihoods.” Progress <strong>in</strong> recent years <strong>in</strong>cludes Ghana’s<br />

AngloGold Ashanti develop<strong>in</strong>g a programme that aims to<br />

give artisanal m<strong>in</strong>ers legal m<strong>in</strong><strong>in</strong>g rights on land <strong>in</strong><br />

concession areas. In return, the m<strong>in</strong>ers have to register<br />

and comply with some basic health, safety and<br />

environmental requirements.<br />

The AMV urges governments to build human and<br />

<strong>in</strong>stitutional capacity <strong>in</strong> the resource sector. Secur<strong>in</strong>g the<br />

best deals around tax, navigat<strong>in</strong>g stabilisation clauses<br />

and issues around transfer pric<strong>in</strong>g, or licens<strong>in</strong>g schemes<br />

that successfully boost competition and realise better<br />

value, require essential expertise. Governments need to<br />

go beyond first come, first serve and explore alternatives<br />

like auction<strong>in</strong>g to secure more value.<br />

Joerg Boethl<strong>in</strong>g / Alamy<br />

Contribut<strong>in</strong>g to <strong>Africa</strong>’s goals<br />

Efforts to improve capacity <strong>in</strong>clude the <strong>Africa</strong>n Union’s<br />

(AU) adoption of a science, technology and <strong>in</strong>novation <strong>in</strong><br />

<strong>Africa</strong> strategy, which aims to boost technology-driven<br />

economies and contribute to the goals of <strong>Africa</strong>’s Agenda<br />

2063. An example of the strategy <strong>in</strong> action <strong>in</strong>cludes<br />

efforts by the AU and NEPAD to collaborate <strong>in</strong> build<strong>in</strong>g<br />

executive capacity through the Technology, Innovation<br />

and Entrepreneurship programme.<br />

Efforts to boost capacity <strong>in</strong> Gu<strong>in</strong>ea, the world’s top<br />

supplier of alum<strong>in</strong>ium ore bauxite, <strong>in</strong>clude a 2011 M<strong>in</strong><strong>in</strong>g<br />

Code requir<strong>in</strong>g holders of m<strong>in</strong>eral concessions to give<br />

preference to national enterprises. M<strong>in</strong><strong>in</strong>g legislation <strong>in</strong><br />

Ghana, Senegal and Zambia carries similar requirements,<br />

and Ghana requires gold m<strong>in</strong><strong>in</strong>g companies to submit<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 49


POWER, ENERGY & INFRASTRUCTURE<br />

Joerg Boethl<strong>in</strong>g / Alamy Stock Photo<br />

plans for the recruitment and tra<strong>in</strong><strong>in</strong>g of<br />

Ghanaians. Local employment is encouraged by<br />

the M<strong>in</strong><strong>in</strong>g Charter Scorecard <strong>in</strong> South <strong>Africa</strong>,<br />

and mandated by the national petroleum law <strong>in</strong><br />

Angola.<br />

Alongside this national legislation, regional<br />

bodies are build<strong>in</strong>g local expertise. The AU and<br />

the UN have set out a broad framework for<br />

action. The Economic Community of West<br />

<strong>Africa</strong>n States (ECOWAS) treaty calls for<br />

procurement policies that favour local and<br />

regional firms. The <strong>Africa</strong>n Development Bank<br />

(AfDB) also supports programmes aimed at<br />

strengthen<strong>in</strong>g local content.<br />

The AMV calls for improvements <strong>in</strong><br />

transparency and accountability with<strong>in</strong><br />

government departments so that resource<br />

rents are maximised and utilised to promote<br />

broad economic and social development. The<br />

Extractive Industries Transparency Initiative<br />

(EITI) has acted as a catalyst for reform <strong>in</strong><br />

many countries, provid<strong>in</strong>g governments, civil<br />

society and foreign <strong>in</strong>vestors with a set of<br />

benchmarks for good practice. Several <strong>Africa</strong>n<br />

governments have made strides <strong>in</strong> improv<strong>in</strong>g<br />

transparency, publish<strong>in</strong>g extractive contracts<br />

onl<strong>in</strong>e or comply<strong>in</strong>g with transparency<br />

standards laid out by the EITI. By 2013 <strong>Africa</strong>n<br />

countries accounted for 11 of the 18 countries<br />

that were EITI compliant.<br />

Progress <strong>in</strong>cludes Sierra Leone establish<strong>in</strong>g<br />

an onl<strong>in</strong>e database for m<strong>in</strong><strong>in</strong>g contracts that is<br />

published for public accessibility. Under its new<br />

M<strong>in</strong><strong>in</strong>g Code, Gu<strong>in</strong>ea has published more than<br />

60 contract documents cover<strong>in</strong>g 18 m<strong>in</strong><strong>in</strong>g<br />

projects, says the <strong>Africa</strong>n Progress Report.<br />

Other countries have not made such progress.<br />

Mozambique became EITI compliant <strong>in</strong> October<br />

2012, but has yet to follow the best practices<br />

established <strong>in</strong> Ghana, Liberia and Sierra Leone.<br />

L<strong>in</strong>k<strong>in</strong>g m<strong>in</strong><strong>in</strong>g and manufactur<strong>in</strong>g<br />

The creation of economic l<strong>in</strong>kages that ensure<br />

the benefits from m<strong>in</strong>eral exploitation spread<br />

to other areas of the economy is another pillar<br />

of the AMV. Although <strong>Africa</strong> is a top producer,<br />

most m<strong>in</strong>erals are still exported as raw<br />

materials. The AMV calls for l<strong>in</strong>kages <strong>in</strong>to<br />

m<strong>in</strong>eral beneficiation and manufactur<strong>in</strong>g,<br />

consumables, service <strong>in</strong>dustries and<br />

<strong>in</strong>frastructure like power, transport and<br />

communications. In 2013 over 90% of South<br />

<strong>Africa</strong>’s top 10 exports to Ch<strong>in</strong>a were raw<br />

materials, while all of South <strong>Africa</strong>’s top 10<br />

imports from Ch<strong>in</strong>a were manufactured goods,<br />

accord<strong>in</strong>g to South <strong>Africa</strong>’s Department of<br />

Trade and Industry.<br />

th<strong>in</strong>gs are chang<strong>in</strong>g. South<br />

<strong>Africa</strong> and Botswana are<br />

build<strong>in</strong>g skilled <strong>in</strong>dustries<br />

from natural resources<br />

Yet th<strong>in</strong>gs are chang<strong>in</strong>g. South <strong>Africa</strong> and<br />

Botswana are build<strong>in</strong>g skilled <strong>in</strong>dustries from<br />

natural resources such as diamond polish<strong>in</strong>g<br />

and manufactur<strong>in</strong>g metallic goods. The South<br />

<strong>Africa</strong>n<br />

government has<br />

made beneficiation<br />

policies a central<br />

part of its New<br />

Growth Path and<br />

is draft<strong>in</strong>g new<br />

legislation to<br />

encourage<br />

companies to first<br />

process m<strong>in</strong>erals before export<strong>in</strong>g them. When<br />

the diamond-m<strong>in</strong><strong>in</strong>g lease of De Beers expired<br />

<strong>in</strong> 2005, the government of Botswana made<br />

renewal conditional on the company agree<strong>in</strong>g<br />

to a jo<strong>in</strong>t venture. The Diamond Trad<strong>in</strong>g<br />

Company was established with clear<br />

performance targets<br />

for the production of rough diamonds, at<br />

50 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


RESPONSIBLE MINING<br />

AMV also puts environmental<br />

and socially responsible m<strong>in</strong><strong>in</strong>g<br />

at its heart. It calls on<br />

governments to strengthen the<br />

frameworks that govern<br />

environmental and social impact<br />

assessment, management and<br />

regulation. It calls on regulatory<br />

agencies to improve their<br />

<strong>in</strong>teraction with citizens and<br />

communities affected by m<strong>in</strong><strong>in</strong>g.<br />

This would help m<strong>in</strong>imise<br />

conflicts and tensions with<br />

communities due to<br />

displacement and disruption of<br />

livelihoods by m<strong>in</strong><strong>in</strong>g activities.<br />

Companies should also improve<br />

their corporate social<br />

responsibility regimes to<br />

enhance cooperation between<br />

government, m<strong>in</strong><strong>in</strong>g companies<br />

and communities, says the AMV.<br />

XXXXXXXXXXX<br />

Tanzania Geita Gold M<strong>in</strong>e, open-cast gold<br />

m<strong>in</strong>e of company AngloGold Ashanti<br />

least 80% of which had to be cut and<br />

polished domestically.<br />

Revenues from Botswana’s m<strong>in</strong>eral exports<br />

– ma<strong>in</strong>ly diamonds – are allocated through a<br />

rule that limits their use to <strong>in</strong>vestment<br />

spend<strong>in</strong>g, with the rema<strong>in</strong>der placed <strong>in</strong> a sav<strong>in</strong>g<br />

account for future generations – the Pula Fund,<br />

which is used to stabilise the economy <strong>in</strong> the<br />

face of external shocks, enabl<strong>in</strong>g governments<br />

to avoid fiscal adjustments that could re<strong>in</strong>force<br />

recession and lead to cuts <strong>in</strong> budgets.<br />

Diversify<strong>in</strong>g the economy<br />

Add<strong>in</strong>g value <strong>in</strong> <strong>Africa</strong>’s other <strong>in</strong>dustries shows<br />

what is possible. Countries export leather<br />

<strong>in</strong>stead of just hides and textiles <strong>in</strong> place of<br />

cotton. Mauritius, once a poor, sugar-dependent<br />

nation, has a diversified economy <strong>in</strong> which<br />

manufactur<strong>in</strong>g and tourism play a grow<strong>in</strong>g<br />

role. A key government strategy was to develop<br />

export-process<strong>in</strong>g zones – duty-free<br />

<strong>in</strong>dustrial areas that also provide tax <strong>in</strong>centives<br />

AFRICAN MINING<br />

8%<br />

of Mali’s gold is m<strong>in</strong>ed by<br />

artisanal m<strong>in</strong>ers<br />

90%<br />

of South <strong>Africa</strong>’s top 10<br />

exports to Ch<strong>in</strong>a <strong>in</strong> 2013<br />

were raw materials<br />

80%<br />

of diamonds m<strong>in</strong>ed <strong>in</strong><br />

Botswana had to be cut<br />

and polished domestically<br />

to bus<strong>in</strong>esses. Development<br />

of the sector was particularly helped<br />

by the government <strong>in</strong>creas<strong>in</strong>g spend<strong>in</strong>g on<br />

manpower and <strong>in</strong>frastructure development.<br />

The pace of <strong>in</strong>vestment has slowed, but<br />

foreign groups will cont<strong>in</strong>ue to compete for<br />

<strong>Africa</strong>’s natural resources. Indian<br />

mult<strong>in</strong>ationals like Vedanta and Tata have<br />

pushed <strong>in</strong>to <strong>Africa</strong>. Brazilian companies like<br />

Vale are active players <strong>in</strong> countries from<br />

Gu<strong>in</strong>ea to Mozambique and Zambia.<br />

EU, US and Japanese concerns around<br />

security of supply of high technology materials<br />

promises cont<strong>in</strong>ued competition. The AMV<br />

is a rally<strong>in</strong>g po<strong>in</strong>t for the world to jo<strong>in</strong> <strong>Africa</strong> <strong>in</strong><br />

its development and turn its m<strong>in</strong>eral wealth<br />

from a curse to a bless<strong>in</strong>g. The current slump<br />

<strong>in</strong> world commodity prices is forc<strong>in</strong>g <strong>Africa</strong><br />

to reth<strong>in</strong>k its traditional dependence on<br />

raw material exports and lay the foundations<br />

for transition<strong>in</strong>g from extractive to<br />

learn<strong>in</strong>g economies. •<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 51


Axa perspective<br />

Corporate and specialty<br />

<strong>in</strong>surance, support<strong>in</strong>g bus<strong>in</strong>ess<br />

growth across <strong>Africa</strong><br />

For those of us who know the cont<strong>in</strong>ent<br />

well, <strong>Africa</strong> is vast and diverse, offer<strong>in</strong>g<br />

potential <strong>in</strong>vestors a wide range of<br />

opportunities, but it also presents<br />

significant risks which need to be<br />

managed and mitigated.<br />

Corporate and specialty l<strong>in</strong>es of <strong>in</strong>surance<br />

is a segment of the <strong>in</strong>surance <strong>in</strong>dustry<br />

specifically designed for unusual and<br />

difficult to assess risks that can be<br />

challeng<strong>in</strong>g to place <strong>in</strong> traditional markets.<br />

Specialty <strong>in</strong>surance solves this<br />

predicament by provid<strong>in</strong>g tailor-made<br />

solutions for <strong>in</strong>surance coverage, as<br />

opposed to an all-<strong>in</strong> coverage which may<br />

not be necessary for the client. For<br />

example, for property risks, the standard<br />

traditional cover is all risk cover, however<br />

a specialty <strong>in</strong>surance policy could provide<br />

separate coverage for catastrophe only,<br />

stop loss, nom<strong>in</strong>ated perils and deductible<br />

buy back, which could be better suited for<br />

the client’s needs. AXA views <strong>Africa</strong> as<br />

hav<strong>in</strong>g excellent growth potential, and<br />

is thus provid<strong>in</strong>g this k<strong>in</strong>d of tailored<br />

specialist risk cover for risks through<br />

AXA <strong>Africa</strong> Specialty Risks.<br />

Significant expansion<br />

Growth <strong>in</strong> <strong>Africa</strong> has traditionally been<br />

facilitated by under-utilised <strong>in</strong>frastructure<br />

capacity, however, a few years ago this was<br />

fully utilised and needed both upgrad<strong>in</strong>g<br />

and significant expansion. Foreign<br />

<strong>in</strong>vestors, governments and development<br />

funds have all been focused on provid<strong>in</strong>g<br />

the necessary fund<strong>in</strong>g for <strong>in</strong>frastructure<br />

and <strong>in</strong>dustrial development. Governments<br />

across <strong>Africa</strong> have been will<strong>in</strong>g to sign up<br />

to long term agreements to ensure that<br />

<strong>in</strong>vestors can make an adequate return<br />

on their <strong>in</strong>vestment.<br />

The crucial po<strong>in</strong>t here is that the<br />

majority of <strong>in</strong>vestment is com<strong>in</strong>g from<br />

outside <strong>Africa</strong>, <strong>Africa</strong>n countries have<br />

historically been hampered by poor<br />

credit rat<strong>in</strong>gs, reflect<strong>in</strong>g their develop<strong>in</strong>g<br />

status and there is potential for political<br />

and f<strong>in</strong>ancial uncerta<strong>in</strong>ty. Moreover, the<br />

local <strong>in</strong>surance <strong>in</strong>dustries have largely<br />

focused on personal l<strong>in</strong>es and SME<br />

<strong>in</strong>surance, with South <strong>Africa</strong> be<strong>in</strong>g the<br />

most notable exception.<br />

In the light of this, the underwrit<strong>in</strong>g<br />

skill set <strong>in</strong> <strong>Africa</strong>n countries does not yet<br />

exist to understand and price large and/or<br />

complex risks and <strong>in</strong> general, the <strong>in</strong>surers<br />

do not have a balance sheet that could<br />

provide the claims payment capability <strong>in</strong><br />

response to <strong>in</strong>surance claims on this scale.<br />

Furthermore, most foreign <strong>in</strong>vestors are<br />

look<strong>in</strong>g for <strong>in</strong>surance coverage from scale<br />

providers with a m<strong>in</strong>imum of an<br />

<strong>in</strong>ternational ‘A’ grade rat<strong>in</strong>g.<br />

So when we talk about risk mitigation<br />

across <strong>Africa</strong>, it is clear there is a major


Axa perspective<br />

There has been a large amount of <strong>in</strong>vestment <strong>in</strong> <strong>in</strong>frastructure<br />

Mikir Shah, CEO of AXA <strong>Africa</strong> Specialty Risks<br />

role for specialty risk <strong>in</strong>surance <strong>in</strong> relation<br />

to construction and eng<strong>in</strong>eer<strong>in</strong>g projects.<br />

To provide some examples, there can be a<br />

surety to cover aga<strong>in</strong>st contractors<br />

default<strong>in</strong>g dur<strong>in</strong>g the construction phase;<br />

Construction All Risks <strong>in</strong>surance to cover<br />

the risks associated with a large project;<br />

delayed start up cover to make up for some<br />

of the f<strong>in</strong>ancial loss when a project is<br />

delayed by unforeseen events; and<br />

operational covers to fund gett<strong>in</strong>g a<br />

bus<strong>in</strong>ess back to operational mode after a<br />

claim event and even to offset the<br />

profitability impact.<br />

Energy is another major challenge for<br />

<strong>Africa</strong>, with many governments struggl<strong>in</strong>g<br />

to meet demand, and ambitious renewable<br />

energy targets be<strong>in</strong>g <strong>in</strong>troduced <strong>in</strong><br />

a number of countries, for example<br />

with Namibia look<strong>in</strong>g at ‘70% renewables<br />

by 2030’. Innovative <strong>in</strong>surance products<br />

can be offered to the energy <strong>in</strong>dustry,<br />

beyond provid<strong>in</strong>g physical damage and<br />

bus<strong>in</strong>ess <strong>in</strong>terruption coverage for<br />

operat<strong>in</strong>g risks, such as construction<br />

coverage for renewable energy projects<br />

<strong>in</strong>clud<strong>in</strong>g w<strong>in</strong>d farms (offshore and<br />

onshore), solar photovoltaic plants, bio<br />

fuel plants, geothermal plants and hydro<br />

generation projects.<br />

Political risk<br />

It is extremely important to emphasise the<br />

impact of political risk on bus<strong>in</strong>esses <strong>in</strong><br />

<strong>Africa</strong>, here too corporate and speciality<br />

risk <strong>in</strong>surance can have an important role<br />

to play. Political risk <strong>in</strong>surance can cover<br />

cases where it is not possible to repatriate<br />

loan payments or dividends, or where a<br />

government contract is not honoured.<br />

Asset risks <strong>in</strong>surance can protect fixed<br />

assets, such as factories, m<strong>in</strong>es and<br />

other <strong>in</strong>dustrial <strong>in</strong>vestments, aga<strong>in</strong>st<br />

expropriation and licence cancellation,<br />

or mobile assets aga<strong>in</strong>st confiscation<br />

and wilful destruction. There is even<br />

political violence and terrorism <strong>in</strong>surance<br />

provid<strong>in</strong>g global war, terrorism and political<br />

violence cover, war and strikes cover for<br />

transit risk, and third party terrorism<br />

liability amongst others.<br />

S<strong>in</strong>ce we started AXA <strong>Africa</strong> Specialty<br />

Risks <strong>in</strong> 2016, we have been surprised by<br />

the high level of demand for commercial<br />

and speciality risk cover, outstripp<strong>in</strong>g our<br />

<strong>in</strong>itial forecast and expectations. It has<br />

been particularly <strong>in</strong>terest<strong>in</strong>g to note that<br />

we are be<strong>in</strong>g asked to provide <strong>in</strong>surance<br />

covers for the full range of corporate and<br />

specialty risks with energy and political risk<br />

cover high on client agendas’.<br />

Whilst the growth potential of <strong>Africa</strong><br />

will not be realised overnight, the provision<br />

of corporate and specialty risks <strong>in</strong>surance<br />

will be a crucial factor <strong>in</strong> provid<strong>in</strong>g<br />

<strong>in</strong>vestors with the comfort and coverage<br />

they need to <strong>in</strong>vest <strong>in</strong> <strong>Africa</strong>n countries<br />

and bus<strong>in</strong>esses and get new projects<br />

off the ground.<br />

To contact us please visit<br />

www.AXA-ASR.com to f<strong>in</strong>d<br />

your local representative.


POWER, ENERGY & INFRASTRUCTURE<br />

<strong>Africa</strong>’s economy is still struggl<strong>in</strong>g to<br />

rega<strong>in</strong> the 3% share of World GDP that it<br />

enjoyed <strong>in</strong> the 1970s, and surpass<strong>in</strong>g it<br />

still seems a long way away. The cont<strong>in</strong>ent<br />

is blessed with an abundance of natural<br />

resources but that richness can be a<br />

two-edged sword. If wealth ‘sufficient unto the day’ can<br />

be generated by simply digg<strong>in</strong>g resources out of the<br />

ground and sell<strong>in</strong>g them to overseas buyers, the drive to<br />

<strong>in</strong>dustrialise can lose some of its urgency. <strong>Africa</strong>’s<br />

manufactured output roughly doubled over the 10 years<br />

to 2014 and its goods are be<strong>in</strong>g exported to more<br />

countries than ever before. In 2013, <strong>Africa</strong>’s GDP growth<br />

of 5.6% was the highest of all the world’s cont<strong>in</strong>ents.<br />

Unfortunately, forecasts made at the time by former Lead<br />

Economist <strong>in</strong> the <strong>Africa</strong> Region of the World Bank, H<strong>in</strong>h<br />

D<strong>in</strong>h, of an average growth rate of 6% a year over the<br />

decade 2013-23 seem unlikely to be fulfilled. The dangers<br />

of rely<strong>in</strong>g on high commodity prices has been exposed<br />

over the past two years, with the collapse of the oil price<br />

and falls across the board <strong>in</strong> other materials, from metals<br />

and m<strong>in</strong>erals to rare soils. The International Monetary<br />

Fund estimates that growth <strong>in</strong> 2016 will be around 4%.<br />

The silver l<strong>in</strong><strong>in</strong>g<br />

The economic storms of the past few years can work <strong>in</strong><br />

<strong>Africa</strong>’s favour. Currency devaluation makes a country<br />

more attractive to outside <strong>in</strong>vestors, as it reduces cost<br />

base and overheads such as wages, when viewed from<br />

outside. Structural features such as special trade<br />

relationships with the European Union and the United<br />

States open up valuable and attractive markets. But does<br />

<strong>Africa</strong> have the resources <strong>in</strong> place to attract the<br />

necessary <strong>in</strong>vestment and to grow its own, <strong>in</strong>digenous<br />

<strong>in</strong>dustries, alongside foreign-owned enterprises? The<br />

answer is very much <strong>in</strong> the positive but the extent of the<br />

challenges should not be underestimated.<br />

Technology reduces demand for low-skilled labour, so<br />

it is essential to <strong>in</strong>vest <strong>in</strong> higher skills. The cont<strong>in</strong>ent’s<br />

ris<strong>in</strong>g share of global R&D had reached 20% by 2010<br />

accord<strong>in</strong>g to Hollanders & Soete, but weak <strong>in</strong>frastructure<br />

– lack of electricity, poor roads and crowded ports – push<br />

up the cost of transport<strong>in</strong>g raw materials and f<strong>in</strong>ished<br />

goods by as much as 20%.<br />

Ethiopia rises<br />

One of the recent success stories has been <strong>in</strong> Ethiopia,<br />

which has seen its manufactur<strong>in</strong>g sector expand by an<br />

average of 10% a year s<strong>in</strong>ce 2006. It has attracted<br />

horticultural companies from Holland; Ch<strong>in</strong>ese textile<br />

and leather bus<strong>in</strong>esses; and garment firms from Turkey.<br />

It is now target<strong>in</strong>g German and Swiss pharmaceutical<br />

enterprises, as well as <strong>in</strong>vestment from further afield.<br />

Earlier <strong>in</strong> 2016, UK-based private equity firm 54 Capital<br />

announced a $42 million <strong>in</strong>vestment <strong>in</strong>to Ethiopia’s Addis<br />

Pharmaceutical Factory, a domestic producer of more<br />

than 70 types of medic<strong>in</strong>es. Medtech, an Ethiopian<br />

company, began manufactur<strong>in</strong>g <strong>in</strong> 2013 <strong>in</strong> a $7.8 million<br />

jo<strong>in</strong>t venture with Julphar, a pharmaceutical company<br />

from UAE. Ethiopia imported around 85% of its<br />

pharmaceutical needs as recently as 2015, accord<strong>in</strong>g to<br />

A conveyor belt on the bottl<strong>in</strong>g l<strong>in</strong>e at<br />

the Meta Abo brewery <strong>in</strong> Sebeta, Ethiopia<br />

Fac<strong>in</strong>g the<br />

headw<strong>in</strong>d<br />

Growth has slowed <strong>in</strong> 2016, as have capital<br />

flows. The next few years will be challeng<strong>in</strong>g<br />

for the cont<strong>in</strong>ent’s broad economy, and external<br />

<strong>in</strong>fluences will have an effect, but all is not<br />

negative, says Ruari McCallion<br />

54 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


POWER, ENERGY & INFRASTRUCTURE<br />

Sales of locally assembled<br />

cars <strong>in</strong>creased by 57% <strong>in</strong><br />

2014, br<strong>in</strong>g<strong>in</strong>g the total to<br />

approximately 145,000 units<br />

Medtech founder and CEO, Dr Mohammed Nuri.<br />

The local demand for confectionery has attracted an<br />

<strong>in</strong>vestment from British company Silk <strong>Invest</strong> <strong>in</strong>to NAS<br />

Foods. International beverage giants such as Diageo and<br />

He<strong>in</strong>eken, which acquired former state-owned brewers <strong>in</strong><br />

Ethiopia, have stimulated Juniper Glass Industries and<br />

Atlas Development & Support Services to establish<br />

bottle-manufactur<strong>in</strong>g plants <strong>in</strong> the country. Samsung and<br />

Tecno have built manufactur<strong>in</strong>g facilities and Ethiopia<br />

has even attracted automotive manufacturers. Ch<strong>in</strong>ese<br />

companies Lifan Motors and Geely Automobile Hold<strong>in</strong>gs<br />

avoid 35% import duties by assembl<strong>in</strong>g locally, although<br />

the government’s <strong>in</strong>vestment <strong>in</strong> a 6,000 MW hydroelectric<br />

power plant, and a new railway between Addis<br />

Ababa and the port of Djibouti may have helped as well.<br />

Auto: the driv<strong>in</strong>g force<br />

Countries <strong>in</strong> the north of <strong>Africa</strong> around the<br />

Mediterranean have seen substantial levels of <strong>in</strong>ward<br />

<strong>in</strong>vestment from European car companies. In October<br />

2014, Renault opened a new assembly plant <strong>in</strong> Oued Tlelat,<br />

<strong>in</strong> the Oran region of Algeria. It produces the Renault<br />

Symbol and Dacia Sandero Stepway and has a current<br />

Simon Dawson/Bloomberg via Getty Images<br />

capacity of 25,000 vehicles a year. Egypt’s auto <strong>in</strong>dustry is<br />

recover<strong>in</strong>g from its doldrums; its 15 car assembly<br />

factories and 75 support and supply cha<strong>in</strong> <strong>in</strong>dustry<br />

facilities employ 75,000 workers and have the capacity to<br />

produce 300,000 cars and buses per year. Sales of locally<br />

assembled cars <strong>in</strong>creased by 57% <strong>in</strong> 2014, br<strong>in</strong>g<strong>in</strong>g the<br />

total to approximately 145,000 units <strong>in</strong> 2014, accord<strong>in</strong>g to<br />

the Automotive Market<strong>in</strong>g Information Council (AMIC).<br />

Indigenous auto manufacturers have enjoyed vary<strong>in</strong>g<br />

fortunes. Nigeria’s Innoson Vehicle Manufactur<strong>in</strong>g Co<br />

(IVM), which makes two sedan models and a range of<br />

buses and coaches, us<strong>in</strong>g primarily locally-sourced<br />

components, encountered a Foreign Exchange problem<br />

that affected availability of some foreign-manufactured<br />

parts. This resulted <strong>in</strong> a slowdown of production over the<br />

latter part of the summer months and <strong>in</strong>to the autumn.<br />

Hyundai and Nissan also assemble vehicles <strong>in</strong> Nigeria.<br />

Uganda’s Kiira Motors Corporation, currently<br />

wholly-owned by the government of Uganda, <strong>in</strong> early<br />

2016 unveiled the Kayoola Solar Bus, a completely<br />

electric-powered small bus, with solar cell range<br />

extension for en route recharg<strong>in</strong>g. The company hopes<br />

to beg<strong>in</strong> production of cars and buses <strong>in</strong> 2018.<br />

The best example of the contribution that a developed<br />

auto <strong>in</strong>dustry can make to the economy is <strong>in</strong> South <strong>Africa</strong>.<br />

BMW, Ford, Volkswagen, Daimler-Benz and Toyota all<br />

have plants <strong>in</strong> the country, <strong>in</strong> Eastern Cape and Gauteng<br />

prov<strong>in</strong>ces. Tier One component manufacturers <strong>in</strong>clud<strong>in</strong>g<br />

Arv<strong>in</strong> Exhaust, Corn<strong>in</strong>g and Senior Flexonics also have<br />

production bases, which extends manufactur<strong>in</strong>g<br />

<strong>in</strong>frastructure <strong>in</strong>to the wider economy and helps to<br />

develop the supply and support cha<strong>in</strong>.<br />

The current economic climate presents an ideal<br />

opportunity for <strong>Africa</strong> to attract <strong>in</strong>vestment to create<br />

productive jobs because of ris<strong>in</strong>g labour costs <strong>in</strong> Ch<strong>in</strong>a<br />

and other Asian countries. Wages are still relatively low<br />

<strong>in</strong> <strong>Africa</strong>. The biggest challenges to develop<strong>in</strong>g the<br />

manufactur<strong>in</strong>g sector are the level of skills and the<br />

condition of the <strong>in</strong>frastructure, especially transport<br />

routes. These areas are <strong>in</strong>evitably the responsibility of<br />

governments to address and remedy. Examples such as<br />

those from Ethiopia (see box-out) demonstrate the<br />

advances that can be made from even a low base. •<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 55


POWER, ENERGY & INFRASTRUCTURE<br />

The concept of the blue<br />

economy was given<br />

importance by Gunter Pauli <strong>in</strong><br />

2004 when he <strong>in</strong>itiated ‘Zero<br />

Emissions Research and<br />

Initiatives (ZERI) <strong>in</strong> Action’. In<br />

his 2010 book, entitled The Blue Economy: 10<br />

years, 100 <strong>in</strong>novations, 100 million jobs, we are<br />

taught that a blue economy bus<strong>in</strong>ess model<br />

will endeavour to sw<strong>in</strong>g society from<br />

shortage to wealth “with what is locally<br />

available” by deal<strong>in</strong>g with environmental and<br />

other connected issues <strong>in</strong> <strong>in</strong>novative ways.<br />

The blue economy goes ahead of the<br />

green economy or the ocean economy. It<br />

comprises all economic activities carried<br />

out <strong>in</strong> rivers, lakes, banks, shores, streams,<br />

underground waters, fresh waters, seabed,<br />

seas and oceans.<br />

Small Islands Develop<strong>in</strong>g States (SIDS)<br />

like Mauritius and Seychelles have<br />

understood its importance and are<br />

generat<strong>in</strong>g the conditions that respond to<br />

the fundamental needs of everyone <strong>in</strong> the<br />

ecosystem, <strong>in</strong>clud<strong>in</strong>g the fauna and the flora<br />

<strong>in</strong> the Indian Ocean.<br />

In other regions of <strong>Africa</strong>, coastal<br />

corrosion is a big issue that governments<br />

need to address urgently. In Western <strong>Africa</strong>,<br />

this is hav<strong>in</strong>g some distress<strong>in</strong>g consequences<br />

with erosion rates of 23–30 metres be<strong>in</strong>g<br />

recorded annually <strong>in</strong> some regions.<br />

Strengthen<strong>in</strong>g maritime<br />

safety and security<br />

A good example is Togo, on the Gulf of<br />

Gu<strong>in</strong>ea. The country has firmly embraced<br />

the strategic framework of the blue economy<br />

and has recently launched and implemented<br />

a programme called the National Strategy<br />

for the Sea and the Coastal Region. The<br />

programme aims to strengthen maritime<br />

safety and security, promote employment<br />

opportunities and public-private<br />

partnerships, modernise maritime tourism,<br />

develop the blue economy, and susta<strong>in</strong>ably<br />

manage the mar<strong>in</strong>e environment.<br />

Countries on the north west shores<br />

of <strong>Africa</strong>, greatly dependent on fish<strong>in</strong>g,<br />

tourism and commerce, have set up ways<br />

to enhance reliance on mar<strong>in</strong>e products to<br />

feed their population.<br />

Thirty-eight <strong>Africa</strong>n countries have a<br />

façade on the sea, which represents one third<br />

of the <strong>Africa</strong>n population, hence the <strong>in</strong>terest<br />

<strong>in</strong> develop<strong>in</strong>g mar<strong>in</strong>e economies while<br />

preserv<strong>in</strong>g ecosystems.<br />

However, the f<strong>in</strong>anc<strong>in</strong>g should be<br />

determ<strong>in</strong>ed, as the huge potential of the blue<br />

economy <strong>in</strong> <strong>Africa</strong> has not been quantified<br />

yet. World Bank’s Ocean Economy expert<br />

Thirty-eight of <strong>Africa</strong>’s 54 countries have a coastal boundary<br />

The blue economy is ga<strong>in</strong><strong>in</strong>g momentum <strong>in</strong> <strong>Africa</strong>, and<br />

many <strong>Africa</strong>n countries are bett<strong>in</strong>g on this economy<br />

for blue growth, writes Yas<strong>in</strong>e Mohabuth. But does<br />

<strong>Africa</strong> have the means to fulfil its ambitions?<br />

<strong>Africa</strong> Inc.<br />

for the blue<br />

economy<br />

56 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


POWER, ENERGY & INFRASTRUCTURE<br />

$670m<br />

The amount World Bank<br />

Group has pledged to the<br />

<strong>Africa</strong>n blue economy<br />

90%<br />

of trade between <strong>Africa</strong>n<br />

states is carried out by sea<br />

Yuvan Beejadhur expla<strong>in</strong>ed that “fisheries,<br />

aquaculture, tourism, [and] renewable<br />

energies are opportunities aris<strong>in</strong>g from the<br />

added value of the blue economy, which has<br />

enormous potential <strong>in</strong> <strong>Africa</strong>. Currently, it is<br />

not known how much this sector represents<br />

for the cont<strong>in</strong>ent. We have noticed that states<br />

have difficulties to quantify the blue economy.<br />

Worldwide, blue economy is valued at $24<br />

trillion. This is an enormous figure, but for<br />

<strong>Africa</strong> it is necessary to study further.”<br />

The World Bank Group has earmarked<br />

more than $670 million for the <strong>Africa</strong>n blue<br />

economy out of the $19 billion that it plans to<br />

raise for the cont<strong>in</strong>ent. The largely ignored or<br />

underutilised area of the blue economy can<br />

be a robust development tool for <strong>Africa</strong>. It<br />

is at the heart of globalisation as 90% of<br />

trade between states is carried out by sea<br />

and 95% of global communications are from<br />

submar<strong>in</strong>e networks.<br />

In <strong>Africa</strong>, 70 million people are <strong>in</strong> danger<br />

of starvation. The United Nations Food and<br />

Agriculture Organization (FAO) believes that<br />

<strong>Africa</strong> does not use the oceans sufficiently as<br />

a productive economic activity. FAO Director<br />

Dr José Graziano da Silva sounds the alarm:<br />

“In order to transform the oceans we must<br />

be look<strong>in</strong>g for good prote<strong>in</strong>s; i.e. fish and all<br />

aquaculture products that are very popular<br />

<strong>in</strong> the SIDS. This is an important source of<br />

nutrition. Nowadays, 90% of what we consume<br />

comes from the land. We must share this<br />

responsibility with the oceans,” says da Silva.<br />

The impact of climate change<br />

Climate change is <strong>in</strong>extricably l<strong>in</strong>ked<br />

to the development of the blue economy.<br />

The oceans, coasts and seas of the <strong>Africa</strong>n<br />

cont<strong>in</strong>ent are <strong>in</strong>separable from its<br />

development and prosperity. With climate<br />

change, we do not yet know what the impact<br />

will be on the oceans with sudden changes<br />

<strong>in</strong> the currents.<br />

Pauli emphasised that actions should<br />

be undertaken at grassroots level with<br />

<strong>in</strong>vestments <strong>in</strong> the youth: “Over the years<br />

we have found that the most difficult [th<strong>in</strong>g]<br />

is to <strong>in</strong>spire the would-be entrepreneurs to<br />

stand up and take <strong>in</strong>itiative. That is why<br />

the blue economy comb<strong>in</strong>es the design of<br />

clusters of projects (never one at the time)<br />

with learn<strong>in</strong>g <strong>in</strong>itiatives that start at the<br />

level of k<strong>in</strong>dergarten”.<br />

The blue economy’s growth embraces<br />

massive assurance for <strong>Africa</strong>, gifted with<br />

gigantic unexploited natural resources.<br />

The cont<strong>in</strong>ent needs to implement its blue<br />

economy framework that will be mutually<br />

beneficial for not only the states but also<br />

for all their stakeholders, as we are still<br />

unaware of climate change’s impact on<br />

the blue economy and these aspects<br />

have to be looked <strong>in</strong>to both scientifically<br />

and f<strong>in</strong>ancially. •<br />

Worldwide,<br />

blue economy is<br />

valued at<br />

$24 trillion<br />

YUVAN BEEJADHUR,<br />

WORLD BANK<br />

istock photo<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 57


Foreword<br />

Support<strong>in</strong>g an <strong>Africa</strong>n<br />

space agenda and<br />

ensures that <strong>Africa</strong><br />

is a responsible user<br />

of outer space<br />

The Commission places<br />

emphasis on the<br />

development of<br />

<strong>Africa</strong>’s human<br />

resource, through<br />

education at all levels,<br />

development and application of<br />

science, technology, and <strong>in</strong>novation.<br />

We also pay special attention on<br />

youth populations, (their capacity<br />

build<strong>in</strong>g and empowerment) and<br />

on education for girls and women.<br />

To promote dialogue at the<br />

cont<strong>in</strong>ental level, and to effectively<br />

work with Member States, the<br />

<strong>Africa</strong>n Union through its Assembly<br />

created a Specialised Technical<br />

Committees (STCs), among them an<br />

STC <strong>in</strong> charge of Education, Science<br />

and Technology which allows the<br />

M<strong>in</strong>isters <strong>in</strong> charge of these sectors<br />

to periodically deliberate and take<br />

jo<strong>in</strong>t decisions on related matters.<br />

The status of education, science and<br />

technology is improv<strong>in</strong>g <strong>in</strong> <strong>Africa</strong>. We<br />

just adopted a people centred<br />

long-term Agenda 2063, which<br />

strives to enable <strong>Africa</strong> to rema<strong>in</strong><br />

focused and committed to the ideals<br />

envisaged <strong>in</strong> the context of a rapidly<br />

chang<strong>in</strong>g world. Action is required <strong>in</strong><br />

many doma<strong>in</strong>s to realise this Agenda<br />

and deliver on the ris<strong>in</strong>g aspirations<br />

of <strong>Africa</strong>n citizens and global<br />

expectations. To do so, we ensured<br />

that this agenda is underp<strong>in</strong>ned by<br />

education, science and technology as<br />

enablers and tools of achiev<strong>in</strong>g the<br />

cont<strong>in</strong>ental development goals. The<br />

Commission developed three<br />

cont<strong>in</strong>ental strategies for technical<br />

and vocational education and<br />

tra<strong>in</strong><strong>in</strong>g; CESA 2016-2015 for<br />

education; and STISA-2024 for<br />

science, technology and <strong>in</strong>novation.<br />

These strategies will contribute to<br />

achiev<strong>in</strong>g the global Susta<strong>in</strong>able<br />

Development Goals (SDGs) and<br />

creation of long-term economic<br />

benefits for the cont<strong>in</strong>ent.<br />

Foster transformation<br />

The <strong>Africa</strong>n Union<br />

Commission is rapidly<br />

deploy<strong>in</strong>g science,<br />

technology and <strong>in</strong>novation<br />

across various socioeconomic<br />

sectors with<br />

a view to foster social<br />

transformation and<br />

economic competitiveness<br />

927<br />

students<br />

attend<strong>in</strong>g the<br />

Pan-<strong>Africa</strong>n<br />

University at the<br />

start of 2016<br />

STISA-2024. In the first 10 years of its<br />

implementation the strategy will<br />

focus on address<strong>in</strong>g six dist<strong>in</strong>ct<br />

socio-economic priorities aimed at<br />

eradicat<strong>in</strong>g hunger and ensur<strong>in</strong>g food<br />

and nutrition security; prevention<br />

and control of diseases; protection of<br />

our space; communication,<br />

promot<strong>in</strong>g liv<strong>in</strong>g together and<br />

build<strong>in</strong>g the society and creation of<br />

prosperity. Through its mutually<br />

re<strong>in</strong>forc<strong>in</strong>g pillars the strategy urges<br />

Member States and the Regional<br />

Economic Communities to build and<br />

upgrade research <strong>in</strong>frastructures,<br />

enhance professional and technical<br />

competencies, promote <strong>in</strong>novation<br />

and entrepreneurship development<br />

and cont<strong>in</strong>ue creat<strong>in</strong>g an enabl<strong>in</strong>g<br />

policy environment for science,<br />

technology and <strong>in</strong>novation.<br />

<strong>Africa</strong> <strong>in</strong> space<br />

The cont<strong>in</strong>ent is gradually becom<strong>in</strong>g<br />

active <strong>in</strong> space activities. The Heads<br />

of State and Government adopted the<br />

<strong>Africa</strong>n Space Policy and Strategy<br />

(ASPS) <strong>in</strong> January 2016 as the first<br />

set of <strong>in</strong>struments to guide<br />

susta<strong>in</strong>able utilisation of space<br />

services and applications by <strong>Africa</strong>n<br />

States. The ASPS identifies earth<br />

observation; satellite communication;<br />

navigation and position<strong>in</strong>g; and<br />

astronomy and space sciences as the<br />

ma<strong>in</strong> themes for formalisation of a<br />

well-coord<strong>in</strong>ated and <strong>in</strong>tegrated<br />

<strong>Africa</strong>n Space Programme that<br />

is both responsive to the social,<br />

economic, political and<br />

environmental needs of the cont<strong>in</strong>ent<br />

and is globally competitive.<br />

Furthermore, this will lead to the<br />

establishment of a regulatory<br />

framework that supports an <strong>Africa</strong>n<br />

space agenda and ensures that <strong>Africa</strong><br />

is a responsible user of outer space.<br />

The appropriate <strong>in</strong>stitutional form<br />

to govern space activities has s<strong>in</strong>ce<br />

been def<strong>in</strong>ed and proposed<br />

to be an <strong>Africa</strong>n Space<br />

Agency with ma<strong>in</strong><br />

mandates of promot<strong>in</strong>g;<br />

coord<strong>in</strong>at<strong>in</strong>g space<br />

activities; and<br />

implement<strong>in</strong>g space<br />

programmes.<br />

The Cont<strong>in</strong>ental<br />

Education Strategy for<br />

<strong>Africa</strong> (CESA 16-25) was<br />

developed and adopted by<br />

58 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


Foreword<br />

H.E. Dr. Martial<br />

De-Paul Ikounga<br />

Commissioner for Human Resources, Science and Technology<br />

<strong>Africa</strong>n Union Commission<br />

the January 2016 Summit. CESA is<br />

<strong>in</strong>formed by Agenda 2063, as well as<br />

by the outcome of an evaluation of<br />

the Second Decade of Education for<br />

<strong>Africa</strong> (2006-2015), evaluation of the<br />

UNESCO brokered Education for All,<br />

and pan <strong>Africa</strong>n multi-stakeholder<br />

discussions. CESA 16-25 provides a<br />

common basis for national, regional<br />

and cont<strong>in</strong>ental programme design<br />

and implementation, and an overall<br />

framework for mobilisation of all<br />

key stakeholders. It is a strategy<br />

for reorient<strong>in</strong>g <strong>Africa</strong>’s education<br />

and tra<strong>in</strong><strong>in</strong>g systems to meet the<br />

knowledge, competencies, skills,<br />

<strong>in</strong>novation and creativity required to<br />

nurture <strong>Africa</strong>n core values and<br />

promote susta<strong>in</strong>able development at<br />

the national, regional and cont<strong>in</strong>ental<br />

levels, towards the <strong>Africa</strong> we want.<br />

Twelve strategic objectives are<br />

proposed as high level results to<br />

be achieved <strong>in</strong> implement<strong>in</strong>g CESA<br />

16-25. The document also <strong>in</strong>cludes<br />

suggested Action Areas to form the<br />

basis for operational plans, cutt<strong>in</strong>g<br />

across all levels and types of<br />

education and education provision.<br />

The issue of teachers and teach<strong>in</strong>g<br />

rema<strong>in</strong>s core to education<br />

development. Also highlighted are<br />

science and technology; a demand<br />

for a paradigm shift <strong>in</strong> technical and<br />

vocational education and tra<strong>in</strong><strong>in</strong>g;<br />

gender; value <strong>in</strong>culcation <strong>in</strong><br />

education, such as peace and<br />

democracy; and ensur<strong>in</strong>g access and<br />

<strong>in</strong>clusion for the remotely situated,<br />

the slower learners, the poor and the<br />

hungry. An important area that must<br />

be strengthened is Education<br />

Management Information Systems.<br />

Pan-<strong>Africa</strong>n University<br />

One of the flagship projects with<strong>in</strong><br />

our education is the Pan-<strong>Africa</strong>n<br />

University composed of five regional<br />

hubs that focus on basic sciences,<br />

technology and <strong>in</strong>novation; life and<br />

earth sciences; water, energy and<br />

climate change; space sciences and<br />

technology; and humanities, social<br />

sciences and good governance. PAU<br />

aims at build<strong>in</strong>g high-level skills<br />

with<strong>in</strong> the cont<strong>in</strong>ent, and allow<strong>in</strong>g<br />

<strong>Africa</strong>n graduates to become<br />

effective leaders <strong>in</strong> many fields that<br />

are vital to <strong>Africa</strong>’s future. It is a new<br />

generation university constituted<br />

from educational and research<br />

structures already <strong>in</strong> operation<br />

underlay with the idea of establish<strong>in</strong>g<br />

world-class research <strong>in</strong>stitutes to<br />

provide quality education and<br />

research, attract leadership and<br />

talent, and promote <strong>in</strong>ternational<br />

cooperation. PAU offers postgraduate<br />

tra<strong>in</strong><strong>in</strong>g programs both at Masters’<br />

and PhD levels. At present a total of<br />

37 degree programs (22 MA/MSc. and<br />

15 PhD) are offered at the Pan<br />

<strong>Africa</strong>n University Institutes. The<br />

PAU student population at the<br />

beg<strong>in</strong>n<strong>in</strong>g of the 2016/2017 academic<br />

year stands at 927 (275 female and<br />

652 male). This further breaks down<br />

to 702 students <strong>in</strong> the MA/MSc.<br />

degree programs and 225 <strong>in</strong> the PhD<br />

degree programs. So far, a total of 216<br />

<strong>Africa</strong>ns (57 female and 159 male)<br />

graduated with MA/MSc. degrees <strong>in</strong><br />

various fields of specialisation.<br />

In 2017 <strong>Africa</strong> is focus<strong>in</strong>g on<br />

“<strong>Invest</strong><strong>in</strong>g <strong>in</strong> Young People”: with<br />

35% of its population aged between<br />

15 and 35, <strong>Africa</strong> has been presented<br />

with an entic<strong>in</strong>g opportunity to<br />

harness and reap from its<br />

demographic dividend. Over the past<br />

10 years, the conversations on the<br />

potential benefits of <strong>Africa</strong>’s ‘youth<br />

bulge’ have <strong>in</strong>tensified; lead<strong>in</strong>g to a<br />

decision by <strong>Africa</strong>n Heads of State<br />

and Government to declare the 2017<br />

as the year for, ‘Harness<strong>in</strong>g the<br />

Demographic Dividend through<br />

<strong>Invest</strong>ments <strong>in</strong> Youth’. This<br />

declaration was followed by the<br />

adoption of an <strong>Africa</strong>n Union<br />

Roadmap for the 2017, which<br />

identifies four pillars that require<br />

strategic <strong>in</strong>vestment from key actors<br />

on the cont<strong>in</strong>ent and <strong>in</strong>ternational<br />

partners. Consistent and extensive<br />

<strong>in</strong>vestment <strong>in</strong> the four<br />

<strong>in</strong>terconnected pillars: employment<br />

and entrepreneurship; education and<br />

skills development; health and<br />

well-be<strong>in</strong>g and rights; and<br />

governance and youth<br />

empowerment. These have the<br />

potential to drive change and set<br />

<strong>Africa</strong>n countries on the trajectory<br />

towards harness<strong>in</strong>g the demographic<br />

dividend and ultimately achiev<strong>in</strong>g the<br />

aspirations set out <strong>in</strong> Agenda 2063.<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 59


ICT & TELECOMMUNICATION<br />

ICT & Telecommunications<br />

Data is the secret to growth, writes Tapiwa M Chiwewe. The<br />

Internet of Th<strong>in</strong>gs and <strong>in</strong>vestment <strong>in</strong> <strong>digital</strong> <strong>in</strong>frastructure is<br />

vital if <strong>Africa</strong> is to harness that growth<br />

Br<strong>in</strong>g<strong>in</strong>g Cognitive<br />

IoT to <strong>Africa</strong><br />

We live <strong>in</strong> a<br />

chang<strong>in</strong>g world.<br />

Demographic<br />

shifts, data<br />

proliferation,<br />

<strong>in</strong>frastructure<br />

challenges, resource scarcity and<br />

<strong>in</strong>creased threats are caus<strong>in</strong>g stresses to<br />

our societal plann<strong>in</strong>g and management<br />

abilities, as well as our well-be<strong>in</strong>g and<br />

personal growth. It is projected that <strong>in</strong><br />

2050 two-thirds of the world’s population<br />

will live <strong>in</strong> urban areas, herald<strong>in</strong>g the rise<br />

of the urban planet. GDP figures for<br />

growth <strong>in</strong> mature economies <strong>in</strong> 2015 was<br />

2.2% compared to 4.9% <strong>in</strong> emerg<strong>in</strong>g<br />

economies, accord<strong>in</strong>g to Goldman Sachs<br />

global <strong>in</strong>vestment research. <strong>Africa</strong> is set<br />

60 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


ICT & TELECOMMUNICATION<br />

to be the second fastest grow<strong>in</strong>g region<br />

and home to the youngest population <strong>in</strong><br />

the world by 2025, accord<strong>in</strong>g to Frost &<br />

Sullivan. These changes can be<br />

challeng<strong>in</strong>g given the stresses they<br />

cause, but the <strong>in</strong>formation age we f<strong>in</strong>d<br />

ourselves <strong>in</strong> presents an opportunity for<br />

a generation of leaders – naturally<br />

comfortable with technology – to use<br />

new <strong>in</strong>novation to solve seem<strong>in</strong>gly<br />

<strong>in</strong>tractable problems.<br />

The <strong>digital</strong> age and cognitive IoT<br />

The 1990s were about connect<strong>in</strong>g<br />

<strong>in</strong>formation, the 2000s were about<br />

connect<strong>in</strong>g people, and the 2010s are<br />

about connect<strong>in</strong>g devices <strong>in</strong> what is<br />

known as the Internet of Th<strong>in</strong>gs (IoT).<br />

In the world we live <strong>in</strong>, virtually<br />

everyth<strong>in</strong>g is becom<strong>in</strong>g connected,<br />

be it vehicles, consumer electronics,<br />

household appliances, manufactur<strong>in</strong>g<br />

l<strong>in</strong>es, or other ‘th<strong>in</strong>gs’ from our physical<br />

world. As a result, the way we<br />

experience the world changes as the<br />

th<strong>in</strong>gs around us update themselves and<br />

adapt to our needs and preferences.<br />

A def<strong>in</strong>ition of the IoT from the Web<br />

of Th<strong>in</strong>gs community is “a system of<br />

physical objects that can be discovered,<br />

monitored, controlled or <strong>in</strong>teracted with<br />

by electronic devices which<br />

communicate over various network<strong>in</strong>g<br />

<strong>in</strong>terfaces, and eventually can be<br />

connected to the wider Internet”. We<br />

are at the peak of the IoT technology<br />

hype curve and at the early stage of<br />

adoption. By the turn of the decade,<br />

<strong>Africa</strong> is likely to account for one billion<br />

connected devices, with ITU estimat<strong>in</strong>g<br />

that there will be 25 billion connected<br />

devices by 2020. This data deluge from<br />

billions of various devices can provide<br />

new <strong>in</strong>sights <strong>in</strong>to the physical world.<br />

One of the challenges of all of this<br />

data is that it is unstructured or dark to<br />

computers, mean<strong>in</strong>g they can’t analyse<br />

or make sense of it. In fact, 80% of the<br />

data is currently dark and it will grow to<br />

93% by 2020. What if the cure for cancer<br />

is <strong>in</strong> this dark data? Or the forecast of a<br />

tsunami? That’s where we <strong>in</strong>troduce<br />

cognitive comput<strong>in</strong>g <strong>in</strong>to the IoT, which<br />

can use mach<strong>in</strong>e learn<strong>in</strong>g and advanced<br />

technologies such as IBM Watson, to<br />

sh<strong>in</strong>e a light on this dark data.<br />

Economic relevance of IoT<br />

IoT offers a potential economic impact<br />

of between $4 trillion and $11 trillion a<br />

year <strong>in</strong> 2025, accord<strong>in</strong>g to McK<strong>in</strong>sey<br />

Global Institute. This will be equivalent<br />

to 11% of the total world economy.<br />

With<strong>in</strong> the next 10 years about $500<br />

billion <strong>in</strong> value is expected to be<br />

realised <strong>in</strong> Nigeria, South <strong>Africa</strong>, Kenya<br />

and other sub-Saharan <strong>Africa</strong>n<br />

countries. ABB estimates that IoT<br />

hardware and connectivity revenues<br />

are grow<strong>in</strong>g 10%–20% annually. Apps,<br />

analytics and services revenue is<br />

grow<strong>in</strong>g 40%–50% annually. There are<br />

n<strong>in</strong>e key sett<strong>in</strong>gs where most of this<br />

value may occur, which are: factories;<br />

cities; human; retail; outside; work<br />

sites; vehicles; homes; and offices.<br />

Develop<strong>in</strong>g countries share 11%–46%<br />

of the economic impact <strong>in</strong> these key<br />

sett<strong>in</strong>gs, with the greatest share<br />

be<strong>in</strong>g <strong>in</strong> the work sites, outside and<br />

factories sett<strong>in</strong>gs.<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 61


ICT & TELECOMMUNICATION<br />

Holistic View of IoT<br />

Digitisation of the physical world and IP connected<br />

devices is a means to an end. The goal is to deliver<br />

deep <strong>in</strong>sights, learn, predict and improve outcomes,<br />

and thereby improve people’s lives. Us<strong>in</strong>g data for<br />

optimisation and prediction through cognitive<br />

analytics and cloud comput<strong>in</strong>g provides the most<br />

value. Organisations must also collaborate <strong>in</strong> new<br />

ways with<strong>in</strong> IoT ecosystems that allow data to flow<br />

between them to realise the full potential of IoT.<br />

For example, I am lead<strong>in</strong>g a project <strong>in</strong><br />

Johannesburg, South <strong>Africa</strong> that uses the IoT to<br />

combat <strong>in</strong>dustrial pollution. By work<strong>in</strong>g closely with<br />

experts from South <strong>Africa</strong>’s Council for Scientific<br />

and Industrial Research we are analys<strong>in</strong>g historical<br />

and real-time data from environmental monitor<strong>in</strong>g<br />

stations and us<strong>in</strong>g mach<strong>in</strong>e learn<strong>in</strong>g and cognitive<br />

models to provide <strong>in</strong>sight <strong>in</strong>to air pollution and<br />

monitor the effectiveness of <strong>in</strong>tervention strategies.<br />

Challenges to Adopt<strong>in</strong>g IoT <strong>in</strong> <strong>Africa</strong><br />

A shift <strong>in</strong> m<strong>in</strong>dset is required to drive <strong>digital</strong><br />

transformation and there is a lack of consolidated<br />

standards. There are concerns around security and<br />

privacy of IoT data. IT budgets and priorities may<br />

not be favourable and there may be a dependence<br />

on certa<strong>in</strong> stakeholders. Also, there are cases of<br />

uncerta<strong>in</strong> regulatory impacts. F<strong>in</strong>ancial support is<br />

lack<strong>in</strong>g <strong>in</strong> some cases, and there are <strong>in</strong>stances of<br />

<strong>in</strong>adequate <strong>in</strong>frastructure and <strong>in</strong>sufficient<br />

technological and human capabilities. In <strong>Africa</strong>,<br />

simpler, more cost-effective solutions may prove<br />

more effective. The <strong>Africa</strong>n Union (AU) is currently<br />

work<strong>in</strong>g on the first of a 10-year phas<strong>in</strong>g strategy to<br />

encourage <strong>in</strong>novation <strong>in</strong> science and technology<br />

across the cont<strong>in</strong>ent.<br />

IoT Enablers and Opportunity <strong>in</strong> <strong>Africa</strong><br />

In develop<strong>in</strong>g countries more people have access to<br />

basic telecommunication than have access to<br />

fundamental services such as electricity, runn<strong>in</strong>g<br />

water and sewerage facilities. Accord<strong>in</strong>g to Frost &<br />

Sullivan, there were 367 million mobile subscribers<br />

<strong>in</strong> <strong>Africa</strong> <strong>in</strong> mid-2015 and the number of connections<br />

is expected to be 500 million by 2020, with mobile<br />

broadband connections ris<strong>in</strong>g from 20% to 60% of<br />

the connection base by then. With<strong>in</strong> the next<br />

decade there will be an average of three connected<br />

devices for each <strong>Africa</strong>n consumer. Mobile health<br />

may save one million lives <strong>in</strong> sub-Saharan <strong>Africa</strong> <strong>in</strong><br />

the next five years. Mobile bank<strong>in</strong>g transactions<br />

will account for 75% of bank<strong>in</strong>g transactions <strong>in</strong><br />

<strong>Africa</strong> by 2020. Mobile learn<strong>in</strong>g <strong>in</strong> <strong>Africa</strong> has the<br />

highest growth rate <strong>in</strong> the world.<br />

IoT Progress <strong>in</strong> <strong>Africa</strong><br />

Thirty-three per cent of enterprises <strong>in</strong> South <strong>Africa</strong><br />

are plann<strong>in</strong>g significant <strong>in</strong>vestments <strong>in</strong> IoT over the<br />

next three years. The manufactur<strong>in</strong>g <strong>in</strong>dustry is<br />

500m<br />

The estimated<br />

number of mobile<br />

connections <strong>in</strong><br />

<strong>Africa</strong> by 2020<br />

lead<strong>in</strong>g this charge, followed closely by the<br />

transport, government, retail, and utilities sectors.<br />

South <strong>Africa</strong> traditionally has more developed ICT<br />

<strong>in</strong>frastructure than other <strong>Africa</strong>n countries, but<br />

there are many other <strong>Africa</strong>n countries that have<br />

recognised the opportunites IoT presents. An<br />

example of this is Rwanda, where they realised that<br />

to enable a smart city, they require a common<br />

platform that they can plug their transport, health<br />

and education systems <strong>in</strong>to to exchange data and<br />

enable end-to-end solutions. In Rwanda’s Rul<strong>in</strong>do<br />

District there is an ongo<strong>in</strong>g smart farm<strong>in</strong>g project<br />

where sensors monitor soil fertility, water,<br />

temperature and other useful <strong>in</strong>formation to<br />

m<strong>in</strong>imise risk and maximise agricultural yields. An<br />

estimated <strong>in</strong>vestment of $250 million has been<br />

made to lie over 4,500 kilometres of high-speed<br />

fibre optic cable across the country.<br />

Etisalat Group announced the launch of the<br />

region’s first IoT application development and<br />

device management platform. ZTE Corporation<br />

launched an IoT platform with MTN Group <strong>in</strong> <strong>Africa</strong><br />

together with a global M2M SIM card offer<strong>in</strong>g a<br />

blanket rate across MTN’s <strong>Africa</strong> network. Several<br />

<strong>in</strong>surance companies have been evaluat<strong>in</strong>g how IoT<br />

may be used for usage-based <strong>in</strong>surance, risk<br />

prevention and other new products. Fire sensors<br />

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ICT & TELECOMMUNICATION<br />

AU SCIENCE, TECHNOLOGY<br />

AND INNOVATION STRATEGY<br />

FOR AFRICA 2024<br />

With<strong>in</strong> the next decade there<br />

will be an average of three<br />

connected devices for each<br />

<strong>Africa</strong>n consumer<br />

have been used for early warn<strong>in</strong>g fire detection and<br />

response <strong>in</strong> <strong>in</strong>formal settlements. RFID tags have<br />

been used on cattle for personalised livestock care.<br />

Cameras and smartphones have been used for<br />

remote disease diagnosis. Cold cha<strong>in</strong> delivery of<br />

vacc<strong>in</strong>es has been monitored<br />

us<strong>in</strong>g sensors to avoid<br />

spoilage. Sensors have been<br />

used for precision and smart<br />

agriculture <strong>in</strong> many cases.<br />

IBM Research – <strong>Africa</strong> has<br />

used IoT for monitor<strong>in</strong>g road<br />

surface quality, traffic<br />

conditions and even the<br />

spread of tuberculosis.<br />

With the right <strong>in</strong>vestment,<br />

IoT could revolutionise<br />

healthcare, transport and<br />

education across <strong>Africa</strong>, as<br />

well as hav<strong>in</strong>g countless<br />

other <strong>in</strong>dustry-specific<br />

applications that would<br />

benefit millions. Network read<strong>in</strong>ess is a key<br />

component <strong>in</strong> modern economic, social, political<br />

and technological <strong>in</strong>frastructure, and accolade<br />

stakeholders across <strong>Africa</strong> should be striv<strong>in</strong>g to<br />

allow <strong>in</strong>dustry to flourish.<br />

The AU is work<strong>in</strong>g on<br />

a 10-year strategy to<br />

encourage <strong>in</strong>novation <strong>in</strong><br />

science and technology<br />

The AU Science, Technology and<br />

Innovation Strategy for <strong>Africa</strong><br />

(STISA-2024) places science,<br />

technology and <strong>in</strong>novation at the<br />

epicentre of <strong>Africa</strong>’s socio-economic<br />

development and growth.<br />

The STISA-2024 has been<br />

developed dur<strong>in</strong>g an important<br />

period when the <strong>Africa</strong>n Union was<br />

formulat<strong>in</strong>g a broader and<br />

long-term AU Agenda 2063. The<br />

STISA-2024 is the first of the<br />

ten-year phas<strong>in</strong>g strategies to<br />

respond to the demand for science,<br />

technology and <strong>in</strong>novation.<br />

The strategy further def<strong>in</strong>es four<br />

mutually re<strong>in</strong>forc<strong>in</strong>g pillars which<br />

are prerequisites for its success:<br />

build<strong>in</strong>g and/or upgrad<strong>in</strong>g research<br />

<strong>in</strong>frastructures; enhanc<strong>in</strong>g<br />

professional and technical<br />

competencies; promot<strong>in</strong>g<br />

entrepreneurship and <strong>in</strong>novation;<br />

and provid<strong>in</strong>g an enabl<strong>in</strong>g<br />

environment for STI development <strong>in</strong><br />

the <strong>Africa</strong>n cont<strong>in</strong>ent. Cont<strong>in</strong>ental,<br />

regional and national programmes<br />

will be designed, implemented and<br />

synchronised to ensure that their<br />

strategic orientations and pillars<br />

are mutually re<strong>in</strong>forc<strong>in</strong>g, and<br />

achieve the envisaged<br />

developmental impact as effectively<br />

as possible.<br />

The AUC and NEPAD Agency<br />

shall mobilise and coord<strong>in</strong>ate<br />

resources for technical support <strong>in</strong><br />

develop<strong>in</strong>g and implement<strong>in</strong>g<br />

national and regional plans and<br />

priority programmes.<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 63


ICT & TELECOMMUNICATIONS<br />

Innovation<br />

<strong>in</strong> <strong>Africa</strong><br />

Carlo Ratti shows that, while the wired phase of the<br />

technology revolution was slow to catch on <strong>in</strong> <strong>Africa</strong>,<br />

wireless technology has the potential to transform<br />

every aspect of life on the cont<strong>in</strong>ent<br />

Today’s cities are chang<strong>in</strong>g<br />

quickly. In the midst of rapid<br />

urbanisation the concept of<br />

smart cities – or ‘senseable<br />

cities’, as we prefer to call them<br />

– is emerg<strong>in</strong>g. The <strong>in</strong>ternet is<br />

enter<strong>in</strong>g the spaces we live <strong>in</strong> and is becom<strong>in</strong>g<br />

the ‘Internet of Th<strong>in</strong>gs’. As a result, many<br />

aspects of urban life are be<strong>in</strong>g rapidly<br />

transformed – from energy to waste<br />

management; mobility to water distribution;<br />

and city plann<strong>in</strong>g to citizen engagement.<br />

In recent years, <strong>Africa</strong> has witnessed<br />

several surpris<strong>in</strong>g examples of technological<br />

leapfrogg<strong>in</strong>g – a phenomenon that allows those<br />

who were beh<strong>in</strong>d to step ahead of those who<br />

were previously at the fore by skipp<strong>in</strong>g<br />

traditional phases of development. Mobile<br />

phone networks are a classic example. Most<br />

<strong>Africa</strong>n countries have, by and large, skipped<br />

the wired era and embraced the wireless one.<br />

As a result, mobile phones are often used <strong>in</strong><br />

new, <strong>in</strong>genious ways. <strong>Africa</strong> is currently home<br />

to the second biggest mobile market <strong>in</strong> the<br />

world, with penetration ris<strong>in</strong>g from 1% <strong>in</strong> 2000<br />

to 54% <strong>in</strong> 2012 and surpass<strong>in</strong>g the number of<br />

mobile users <strong>in</strong> the USA, India or Europe. As a<br />

result, applications on mobile networks – such<br />

as mobile bank<strong>in</strong>g or real time crop monitor<strong>in</strong>g<br />

– have quickly become more advanced than<br />

those <strong>in</strong> many advanced countries. Also, <strong>in</strong><br />

countries where top-down utilities such as<br />

electricity, water and waste removal need to be<br />

further developed, disaggregate and localised<br />

solutions are emerg<strong>in</strong>g.<br />

1%<br />

Penitration of mobile<br />

technology across<br />

<strong>Africa</strong> at the start of the<br />

century <strong>in</strong> 2000<br />

54%<br />

Penitration of mobile<br />

technology across<br />

<strong>Africa</strong> 12 years later<br />

<strong>in</strong> 2012<br />

Technological leapfrogg<strong>in</strong>g, together with<br />

bottom-up action, could usher <strong>in</strong> a new era of<br />

urbanisation across <strong>Africa</strong>. Many of the apps<br />

and <strong>in</strong>novations mentioned might vanish <strong>in</strong> a<br />

few years. As is common <strong>in</strong> most <strong>in</strong>novation<br />

ecosystems, however, their creative approach <strong>in</strong><br />

address<strong>in</strong>g societal challenges <strong>in</strong> <strong>Africa</strong> can be<br />

seen as promis<strong>in</strong>g signs of urban <strong>in</strong>novation.<br />

Mobility and traffic congestion<br />

The explosive demographic situation <strong>in</strong> many<br />

<strong>Africa</strong>n cities has led to serious mobility issues.<br />

Take Nairobi; its roads were developed for a<br />

settlement of 350,000 people, and they are now<br />

serv<strong>in</strong>g over 3 million <strong>in</strong>habitants. As a result, it<br />

has become one of the world’s most congested<br />

cities. Twende Twende is a mobile phone<br />

service that was developed <strong>in</strong> IBM’s research<br />

centre <strong>in</strong> the Kenyan capital. Swahili for ‘let’s<br />

go’, Twende Twende takes images captured by<br />

exist<strong>in</strong>g low-cost cameras and applies<br />

network-flow algorithms to estimate traffic<br />

flow. The solution does not require expensive<br />

64 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


ICT & TELECOMMUNICATIONS<br />

lakes and unnavigable rivers without the need<br />

for large-scale physical <strong>in</strong>frastructure,<br />

deliver<strong>in</strong>g medical and urgent supplies to<br />

remote areas on a massive scale with an<br />

immediate life-sav<strong>in</strong>g impact <strong>in</strong> <strong>Africa</strong>. While<br />

the scalability of this idea is still to be verified,<br />

it is promis<strong>in</strong>g.<br />

Security at home<br />

Hei-Julor is a system for private security <strong>in</strong><br />

Ghana. An external <strong>in</strong>trusion <strong>in</strong>to one’s home<br />

can be a scary and traumatic event. Inspired by<br />

the efficiency with which mobile phone<br />

messag<strong>in</strong>g technologies were employed dur<strong>in</strong>g<br />

the Arab Spr<strong>in</strong>g and the London riots, Hei-Julor<br />

is a mobile phone-based security system, to<br />

help address this dire situation.<br />

<strong>Africa</strong> cannot but benefit<br />

from the re<strong>in</strong>forcement<br />

of its start-up Ecosystems<br />

road construction. It uses cameras already<br />

present around the city.<br />

Ute Grabowsky/Photothek via Getty Images<br />

Innovation anywhere<br />

In the ‘<strong>in</strong>novation everywhere’ world<br />

we live <strong>in</strong>, <strong>Africa</strong> cannot but benefit from the<br />

re<strong>in</strong>forcement of its start-up ecosystems. One<br />

<strong>in</strong>terest<strong>in</strong>g project is iHub, an open community<br />

space – part vector for <strong>in</strong>vestors and venture<br />

capitalists, part <strong>in</strong>cubator – provid<strong>in</strong>g a space<br />

where young entrepreneurs can receive<br />

mentorship, <strong>in</strong>ternet connectivity and the<br />

possibility of fund<strong>in</strong>g through connections with<br />

the <strong>in</strong>ternational venture capital community.<br />

Infrastructural shortage<br />

In several parts of <strong>Africa</strong>, you<br />

can see an <strong>in</strong>creas<strong>in</strong>g gap<br />

between population growth<br />

and <strong>in</strong>frastructure. The<br />

Droneport Project could<br />

transcend geographical<br />

barriers such as mounta<strong>in</strong>s,<br />

Shar<strong>in</strong>g economy<br />

Uganda has a vibrant technology start-up scene.<br />

Yoza, a locally developed android app, helps<br />

users f<strong>in</strong>d laundry services, us<strong>in</strong>g technology<br />

like location detection and social rat<strong>in</strong>gs to<br />

match service providers with clients. Few of the<br />

‘laundry women’ have smartphones to access<br />

the app, but Yoza calls them up on their regular<br />

phones to sign them up and books them for<br />

jobs, help<strong>in</strong>g both clients and washerwomen.<br />

Ethical energy<br />

One of the most crucial pieces of <strong>in</strong>frastructure<br />

for development is electricity. Br<strong>in</strong>g<strong>in</strong>g light<br />

<strong>in</strong>to the night gives people extra time for<br />

read<strong>in</strong>g or study<strong>in</strong>g, or fulfill<strong>in</strong>g any personal<br />

project beyond daylight hours. This is the<br />

motivation beh<strong>in</strong>d several projects. Little Sun<br />

solar-powered lamp by Olafur Eliasson is able<br />

– dur<strong>in</strong>g its <strong>in</strong>itial three-year battery life – to<br />

provide 10 times more light than a paraff<strong>in</strong> lamp<br />

and at a fraction of the cost. The iShack Project<br />

is a South <strong>Africa</strong>n social enterprise that<br />

provides a pay-for-use solar electricity service<br />

to people liv<strong>in</strong>g <strong>in</strong> slums. It provides the service<br />

to over 1,500 clients who pay a monthly fee to<br />

ensure long term susta<strong>in</strong>ability.<br />

Technologies for farmers<br />

Small-scale dairy farmers liv<strong>in</strong>g <strong>in</strong> remote areas<br />

do not have access to <strong>in</strong>formation about their<br />

cows’ health and milk costs. Developed by a<br />

Kenyan farmer, iCow is an app that works on<br />

the type of basic mobile phones farmers own,<br />

empower<strong>in</strong>g them to improve their own lives by<br />

access<strong>in</strong>g critical <strong>in</strong>formation. Each animal is<br />

registered with the service, which then sends<br />

text message rem<strong>in</strong>ders to the farmer about<br />

milk<strong>in</strong>g schedules, immunisation dates, and tips<br />

about nutrition and breed<strong>in</strong>g. The application<br />

won the Apps4<strong>Africa</strong> competition, an <strong>in</strong>itiative<br />

that encourages young developers <strong>in</strong> design<strong>in</strong>g<br />

apps that could address local problems. •<br />

Source<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 65


<strong>Africa</strong>’s urban population<br />

472 million today<br />

659 million by 2025<br />

1 billion by 2040<br />

“Gallop<strong>in</strong>g urbanisation <strong>in</strong> <strong>Africa</strong> has prompted the prioritisation of SMART CITY<br />

TECHNOLOGY to revolutionise local government service delivery as a key driver<br />

for change <strong>in</strong> local economic development.”<br />

Jean-Pierre Elong-Mbassi<br />

Secretary General UCLG-<strong>Africa</strong><br />

The impact of urbanisation makes Smart City solutions of particular importance<br />

<strong>in</strong> address<strong>in</strong>g the many constra<strong>in</strong>ts that the projected 6.3 billion urban <strong>in</strong>habitants<br />

will face by 2050 (UN: World Urbanisation Prospect 2014). <strong>Africa</strong> has an even<br />

bigger challenge as it is urbanis<strong>in</strong>g at a much faster rate than the rest of the world<br />

and faces major <strong>in</strong>frastructural challenges so it is critical for City Mayors and other<br />

local representatives to develop a road map to a Smart City.<br />

A mistake often made when th<strong>in</strong>k<strong>in</strong>g about Smart Cities<br />

is its association with cities <strong>in</strong> developed economies.<br />

The Smart City is an urban development vision<br />

that <strong>in</strong>tegrates <strong>in</strong>formation and communications technologies<br />

(ICT) to make cities work more effectively<br />

and efficiently. For developed economies this means<br />

ICT systems and <strong>in</strong>novative technologies are used to<br />

manage cities and assets <strong>in</strong>clud<strong>in</strong>g schools, hospitals,<br />

power plants, water supplies, transportation and<br />

waste management.<br />

On first reflection one may question <strong>Africa</strong>’s role <strong>in</strong><br />

develop<strong>in</strong>g Smart Cities as premature, however the<br />

cont<strong>in</strong>ent is no stranger to “leapfrogg<strong>in</strong>g” as mobile<br />

technology bears witness to this with solutions like<br />

M-Pesa, a mobile money platform that has transformed<br />

payment systems across the cont<strong>in</strong>ent.We<br />

cannot under estimate <strong>Africa</strong>’s potential to leapfrog<br />

technologies and to lead the way through the development<br />

of ICT solutions that fit this market, but <strong>Africa</strong><br />

faces many challenges and will not br<strong>in</strong>g the added<br />

value ICT can offer to local economies unless there<br />

is:-<br />

- Stable access to energy<br />

- Basic ICT <strong>in</strong>frastructure<br />

- Appropriately skilled staff<br />

United Cities and Local Governments for <strong>Africa</strong><br />

(UCLG-<strong>Africa</strong>) advocates and strives for the implementation<br />

of these three key prerequisites for<br />

successful development of SMART Cities <strong>in</strong> <strong>Africa</strong>.<br />

UCLG <strong>Africa</strong> is the umbrella organization and the<br />

united voice and representative of local governments<br />

and cities <strong>in</strong> <strong>Africa</strong>. With membership that stretches<br />

across the cont<strong>in</strong>ent UCLG-<strong>Africa</strong> empowers all levels<br />

of subnational governments political leaders<br />

and adm<strong>in</strong>istrations through research, knowledge<br />

shar<strong>in</strong>g, tra<strong>in</strong><strong>in</strong>g and capacity build<strong>in</strong>g. This <strong>in</strong>cludes<br />

support<strong>in</strong>g members to address the Smart <strong>Africa</strong><br />

agenda, which is built around four, cross-cutt<strong>in</strong>g<br />

enablers. These enablers are (1) Innovation; (2) Communications<br />

and Advocacy; (3) Capacity Build<strong>in</strong>g; and<br />

(4) Resource Mobilization.<br />

The UNITED VOICE of Local Government <strong>in</strong> <strong>Africa</strong><br />

Top 10 REASONS to Jo<strong>in</strong> UCLG <strong>Africa</strong><br />

1. Become part of the second most important democratic organization<br />

on the <strong>Africa</strong>n cont<strong>in</strong>ent after the <strong>Africa</strong>n Union.<br />

2. Ga<strong>in</strong> access to a platform of resources and knowledge based on the<br />

exchange of experiences and on scientific work.<br />

3. Benefit from the support of UCLG <strong>Africa</strong> <strong>in</strong> your dialogues with your<br />

government on critical issues related to decentralization and local<br />

governance.<br />

4. Enhance your leadership and management capacity by participat<strong>in</strong>g<br />

<strong>in</strong> our programmes.<br />

5. Connect easily with your peers <strong>in</strong> <strong>Africa</strong> and beyond.<br />

6. Benefit from exchange of experiences and learn<strong>in</strong>g opportunities<br />

through the “ peer review”.<br />

7. Echo your voice <strong>in</strong> all regional, cont<strong>in</strong>ental or global forums that<br />

discuss decentralization, governance and local development issues.<br />

8. Jo<strong>in</strong> the <strong>digital</strong> world and cross the <strong>digital</strong> bridge by own<strong>in</strong>g your own<br />

webpage on UCLG <strong>Africa</strong> Internet portal “www.localafrica.org”<br />

9. Benefit from assistance <strong>in</strong> sourc<strong>in</strong>g funds for your activities.<br />

10. Contribute to the dynamics of <strong>Africa</strong>n <strong>in</strong>tegration through<br />

decentralized cooperation between local governments, <strong>in</strong>clud<strong>in</strong>g crossborder<br />

decentralized cooperation.


THE NEW MAGAZINE OF UCLG-A No 5/2016<br />

UCLG-A is uniquely positioned to support State,<br />

County and Prov<strong>in</strong>cial Governors or Premiers, Presidents<br />

of Regions, City Mayors and local government<br />

representatives rise to the challenge of Smart <strong>Africa</strong><br />

and can provide practical support to its members. It<br />

helps them to<br />

INNOVATE: UCLG-A’s <strong>Africa</strong>n Cities Magaz<strong>in</strong>e provides<br />

a platform to showcase <strong>in</strong>novation across <strong>Africa</strong>,<br />

shar<strong>in</strong>g best practice and support<strong>in</strong>g knowledge<br />

transfer. The last edition of 2016 was dedicated to<br />

Smart Cities – The <strong>Africa</strong> Story.<br />

To get a copy of the latest <strong>Africa</strong>n<br />

Cities Magaz<strong>in</strong>e visit www.<br />

issuu.com<br />

Smart Cities - the <strong>Africa</strong>n story<br />

• <strong>Africa</strong>n city startups •<br />

• Third Transform Summit •<br />

• <strong>Africa</strong>’s leapfrog potential •<br />

COMMUNICATE and ADVOCATE: The Africities<br />

SUMMIT, UCLG-<strong>Africa</strong>’s flagship event which takes<br />

place every three years, dedicates a series of workshops<br />

and meet<strong>in</strong>gs that promotes the development<br />

of a road map for Smart Cities given the many challenges<br />

<strong>Africa</strong>n cities face. It br<strong>in</strong>gs together all partners<br />

<strong>in</strong>volved <strong>in</strong> SMART cities development: public<br />

authorities; private sector; academia; ICT providers;<br />

civil society; associations of users and consumers;<br />

etc.<br />

For more <strong>in</strong>formation on the next<br />

Africities <strong>in</strong> 2018 please visit<br />

www.africities.org<br />

RESOURCE MOBILISATION: UCLG-<strong>Africa</strong> provides<br />

capacity support to its members through the exploration<br />

of access to <strong>in</strong>novative sources of fund<strong>in</strong>g such as<br />

Climate f<strong>in</strong>ance and <strong>in</strong>novative f<strong>in</strong>anc<strong>in</strong>g mechanisms<br />

such as F<strong>in</strong>ance Pool<strong>in</strong>g or Crowdfund<strong>in</strong>g. UCLG-<br />

<strong>Africa</strong> also developed a tra<strong>in</strong><strong>in</strong>g and knowledge<br />

shar<strong>in</strong>g platform for the senior staff of subnational<br />

and local adm<strong>in</strong>istrations through the development of<br />

professional networks, <strong>in</strong>clud<strong>in</strong>g the Network of Chief<br />

F<strong>in</strong>ancial Officers (<strong>Africa</strong> F<strong>in</strong>et), and the Network<br />

of City Managers/ CEOs (<strong>Africa</strong> MagNet), and the<br />

Network of Chief Technical Officers (<strong>Africa</strong> TechNet).<br />

For more <strong>in</strong>formation on how<br />

this network can support local<br />

government and city mayors’<br />

teams contact UCLG-<strong>Africa</strong>.<br />

CAPACITY BUILDING: Tra<strong>in</strong><strong>in</strong>g and capacity build<strong>in</strong>g<br />

provides the key to develop effective and efficient<br />

local governments and cities across <strong>Africa</strong>. UCLG-<strong>Africa</strong><br />

has set up The <strong>Africa</strong>n Local Government Academy<br />

(ALGA) to address the serious Human Resources<br />

challenges and skills gaps faced by many local government<br />

authorities.<br />

For more <strong>in</strong>formation on ALGA<br />

visit www.localafrica.org<br />

Overall UCLG – <strong>Africa</strong> has been <strong>in</strong>strumental <strong>in</strong> the<br />

adoption of the <strong>Africa</strong>n Charter on values and pr<strong>in</strong>ciples<br />

of decentralisation, local governance, and local<br />

development which was adopted on June 2014 <strong>in</strong><br />

Malabo, Equatorial Gu<strong>in</strong>ea. In 2017 mov<strong>in</strong>g forward<br />

UCLG-<strong>Africa</strong> members and secretariat will push for<br />

the effective establishment of the High Council of Local<br />

Authorities as a consultative body of the <strong>Africa</strong>n<br />

Union, that was also agreed <strong>in</strong> Malabo <strong>in</strong> 2014.<br />

Contacts: 22, street Essaady<strong>in</strong>e, Hassan - Rabat<br />

K<strong>in</strong>gdom of Morocco<br />

Tel Fax : +212 537 26 00 62 / + 212 537 26 00 63 + 212 537 26 00 60<br />

Email : <strong>in</strong>fo@uclga.org www.localafrica.org / www.Africities.org


ICT & TELECOMMUNICATIONS<br />

Ebele Agu postulates on the plethora of opportunities<br />

more women <strong>in</strong> STEM jobs could afford <strong>Africa</strong> – from<br />

clos<strong>in</strong>g the gender pay gap to a change <strong>in</strong> spend<strong>in</strong>g<br />

habits that could benefit the cont<strong>in</strong>ent’s youth.<br />

Encourag<strong>in</strong>g<br />

women<br />

<strong>in</strong>to STEM<br />

<strong>in</strong>dustries<br />

The fields of science, technology,<br />

eng<strong>in</strong>eer<strong>in</strong>g, and mathematics,<br />

collectively known as STEM,<br />

have always suffered from a<br />

lack of women, but more so <strong>in</strong><br />

sub-Saharan <strong>Africa</strong>. Men tend to<br />

dom<strong>in</strong>ate these sectors, and the numbers<br />

cont<strong>in</strong>ue to look grim for women.<br />

A recent report from the World Bank noted<br />

that if <strong>Africa</strong>n economies are to meet their<br />

promis<strong>in</strong>g economic potential, ‘smartly targeted<br />

<strong>in</strong>vestments’ <strong>in</strong> higher education are essential.<br />

This smart <strong>in</strong>vestment should embrace STEM<br />

fields, which can be transformational as<br />

economies evolve.<br />

The same report acknowledges that research<br />

<strong>in</strong> these areas has doubled on the cont<strong>in</strong>ent over<br />

the last decade but it is still want<strong>in</strong>g. This is<br />

especially so consider<strong>in</strong>g the region’s share of<br />

global research output <strong>in</strong> physical sciences and<br />

STEM-related areas is slightly less than 1% – a<br />

meagre sum consider<strong>in</strong>g the cont<strong>in</strong>ent’s share of<br />

global population, which stands at 12%.<br />

At the heart of this expansion will be a need<br />

to br<strong>in</strong>g female students <strong>in</strong>to the fold, and it has<br />

to start at a lower level before they proceed to<br />

enrol <strong>in</strong> the grow<strong>in</strong>g number of colleges and<br />

universities all across the cont<strong>in</strong>ent. Indeed,<br />

UNESCO is of the view that target<strong>in</strong>g young<br />

women and equipp<strong>in</strong>g them with the necessary<br />

skillset needed <strong>in</strong> the 21st century will not only<br />

>20,000<br />

The number of<br />

secondary school<br />

students impacted by<br />

WAAW <strong>in</strong> countries<br />

across <strong>Africa</strong>.<br />

help bridge the gender gap, but also make of<br />

them powerful agents of change.<br />

Dur<strong>in</strong>g the Women <strong>in</strong> Science (WiSci) Girls’<br />

STEAM Camp held <strong>in</strong> Rwanda between July and<br />

August 2015, the UN jo<strong>in</strong>ed forces with the<br />

United States mission to UNESCO to impart<br />

upon female students skills <strong>in</strong> computer science,<br />

robotics, design, art, and culture. This saw 30<br />

female students from high schools <strong>in</strong> the US<br />

study alongside 90 female students from various<br />

<strong>Africa</strong>n countries. The objective was to address<br />

gender <strong>in</strong>equality at the high school level, and<br />

the importance of mak<strong>in</strong>g good education<br />

decisions with regard to college and career, as<br />

well as encourage the girls to venture <strong>in</strong>to the<br />

male-dom<strong>in</strong>ated STEM fields.<br />

UN Women is tasked with promot<strong>in</strong>g<br />

gender equality and women empowerment,<br />

and cont<strong>in</strong>ues to focus on guarantee<strong>in</strong>g<br />

the development of the next generation of<br />

women leaders <strong>in</strong> the fields of STEM through<br />

its numerous <strong>in</strong>itiatives targeted at less<br />

privileged countries <strong>in</strong> <strong>Africa</strong>, Central Asia,<br />

and the Middle East.<br />

The Work<strong>in</strong>g to Advance STEM education for<br />

<strong>Africa</strong>n Women (WAAW) foundation also<br />

warrants a mention for the major advances<br />

made towards reduc<strong>in</strong>g the gap between the<br />

number of <strong>Africa</strong>n girls ventur<strong>in</strong>g <strong>in</strong>to STEM<br />

fields <strong>in</strong> relation to boys, its efforts to encourage<br />

young women to pursue STEM careers and<br />

68 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


ICT & TELECOMMUNICATIONS<br />

Tra<strong>in</strong><strong>in</strong>g of eng<strong>in</strong>eers <strong>in</strong> the project<br />

Integrated Polytechnic Regional Center IPR,<br />

Kigali, Rwanda<br />

ensure they are engaged <strong>in</strong> technology<br />

<strong>in</strong>novation and entrepreneurship to benefit<br />

<strong>Africa</strong>. The core target of this non-profit<br />

organisation – which runs multiple STEM<br />

hands-on programmes – is sub-Saharan <strong>Africa</strong>n<br />

girls aged between 11 and 30 years, and<br />

particularly those who hail from underprivileged<br />

backgrounds: the poor, the disadvantaged, the<br />

marg<strong>in</strong>alised; not forgett<strong>in</strong>g disabled girls.<br />

WAAW foundation has firmly stamped its<br />

mark <strong>in</strong> countries like Nigeria, South <strong>Africa</strong>,<br />

Ghana, Cameroon, Ethiopia and Kenya – so much<br />

so that its college-to-secondary outreach and<br />

mentor<strong>in</strong>g programmes have impacted over<br />

20,000 secondary school girls to date. Thirty-one<br />

college scholarships have been awarded, over<br />

200 college fellows have been tra<strong>in</strong>ed and nearly<br />

200 secondary students have participated <strong>in</strong><br />

STEM Camps.<br />

A lot of potential<br />

It is good to note that there exists a<br />

direct correlation between <strong>in</strong>creased female<br />

labour force and faster economic growth:<br />

economies grow when more women work.<br />

And if evidence from multiple countries <strong>in</strong><br />

<strong>Africa</strong> is anyth<strong>in</strong>g to go by, <strong>in</strong>creas<strong>in</strong>g the<br />

amount of household <strong>in</strong>come controlled by<br />

women (whether through cash transfers or<br />

their own earn<strong>in</strong>gs) alters spend<strong>in</strong>g <strong>in</strong> ways<br />

that benefit children.<br />

Ute Grabowsky/Photothek via Getty Images<br />

1%<br />

of AU Member States’<br />

GDP is encouraged to<br />

be <strong>in</strong>vested <strong>in</strong> STEM<br />

development<br />

Globally, on average men are paid more than<br />

women. However, pursu<strong>in</strong>g careers and<br />

leadership <strong>in</strong> STEM discipl<strong>in</strong>es ensures this<br />

wage gap is drastically <strong>reduced</strong> because,<br />

apparently, these careers have greater gender<br />

parity when it comes to pay.<br />

<strong>Africa</strong>n states that make it a priority to<br />

ensure more women acquire STEM skills would<br />

only be do<strong>in</strong>g themselves a favour, because<br />

STEM and economies are closely woven<br />

together. It results <strong>in</strong> job creation, and the<br />

butterfly effect can be felt <strong>in</strong> other sectors<br />

such as – <strong>in</strong> addition to cornerstone pillars<br />

such as agriculture and health – hous<strong>in</strong>g and<br />

community development.<br />

But long gone are the days when <strong>Africa</strong>n<br />

economies relied on agricultural produce as<br />

their ma<strong>in</strong> offer<strong>in</strong>g. As much as it rema<strong>in</strong>s a<br />

key cog <strong>in</strong> the wheel of many an economy,<br />

diversification is the key to the future.<br />

Acquir<strong>in</strong>g STEM skills will determ<strong>in</strong>e how<br />

bright that future is likely to be.<br />

As po<strong>in</strong>ted out by the Chairperson<br />

of the <strong>Africa</strong>n Union HE Dr Nkosazana<br />

Dlam<strong>in</strong>i Zuma at the third Annual <strong>Africa</strong>n<br />

First Ladies Discussion on Science, Technology,<br />

Eng<strong>in</strong>eer<strong>in</strong>g and Mathematics (STEM), <strong>Africa</strong>n<br />

development will not happen at the pace and<br />

depth it needs to without the empowerment<br />

of girls, youth and women, especially <strong>in</strong> the<br />

STEM areas. The development of skills <strong>in</strong> these<br />

areas is needed “to modernise agriculture and<br />

agro-process<strong>in</strong>g; to build, expand and ma<strong>in</strong>ta<strong>in</strong><br />

our <strong>in</strong>frastructure; to develop manufactur<strong>in</strong>g<br />

and add value to our natural resources and to<br />

mitigate and adapt to climate change,” Zuma<br />

went on to expla<strong>in</strong>.<br />

Last word<br />

The fact is STEM transforms the world<br />

and shapes our future. You need not th<strong>in</strong>k<br />

far from the changes brought about by the<br />

discovery of penicill<strong>in</strong>, or the <strong>in</strong>vention of the<br />

light bulb, or airplanes, or computers. We need<br />

to see more <strong>in</strong>clusive measures taken to make<br />

women part of the future.<br />

STEM is the key to solv<strong>in</strong>g many problems<br />

plagu<strong>in</strong>g not just <strong>Africa</strong>, but the world as a<br />

whole – from filter<strong>in</strong>g dr<strong>in</strong>k<strong>in</strong>g water, to utilis<strong>in</strong>g<br />

cleaner sources of energy, to f<strong>in</strong>d<strong>in</strong>g a cure for<br />

cancer. It is imperative that we get women <strong>in</strong><br />

on the act too.<br />

Innovation is the keystone of economic<br />

development of any nation, and <strong>in</strong>vest<strong>in</strong>g <strong>in</strong><br />

human capacity with relation to STEM is<br />

critical to this. If the <strong>Africa</strong>n cont<strong>in</strong>ent is to<br />

thrive economically, it is important to have<br />

many more women participate <strong>in</strong> <strong>in</strong>novation<br />

and STEM <strong>in</strong> general. •<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 69


Foreword<br />

<strong>Africa</strong>’s <strong>in</strong>tegration is the only<br />

option for <strong>Africa</strong> to leapfrog <strong>in</strong>to<br />

development that br<strong>in</strong>gs a positive<br />

change to the lives of its people<br />

The Cont<strong>in</strong>ental Free<br />

Trade Area (CFTA) is<br />

one of the key pillars of<br />

the vision of the <strong>Africa</strong>n<br />

Union embedded <strong>in</strong><br />

Agenda 2063. It is also<br />

an essential enabler for the structural<br />

transformation and susta<strong>in</strong>able<br />

economic development of the<br />

cont<strong>in</strong>ent. In this regard, the first-ever<br />

<strong>Africa</strong> Trade Week organised by<br />

the <strong>Africa</strong>n Union Commission <strong>in</strong><br />

November 2016 underscored the<br />

importance of look<strong>in</strong>g <strong>in</strong>wards,<br />

through the CFTA as our top priority.<br />

<strong>Africa</strong>’s <strong>in</strong>tegration is the only<br />

option for <strong>Africa</strong> to leapfrog <strong>in</strong>to<br />

development that br<strong>in</strong>gs a positive<br />

change to the lives of its people.<br />

<strong>Africa</strong>’s top leadership is fully aware<br />

and committed to the establishment of<br />

the CFTA. It was one of the two topics<br />

discussed alongside f<strong>in</strong>anc<strong>in</strong>g the<br />

<strong>Africa</strong>n Union <strong>in</strong> a closed session of<br />

Heads of State and Government at the<br />

July 2016 <strong>Africa</strong>n Union Summit of<br />

Kigali. It was aga<strong>in</strong> the subject of<br />

deliberations of the Strategic Retreat<br />

of M<strong>in</strong>isters of Foreign Affairs early<br />

December <strong>in</strong> Addis Ababa. In fact,<br />

progress on the CFTA will be<br />

reviewed at each Summit of the<br />

<strong>Africa</strong>n Union.<br />

Evolution of trade<br />

The establishment of the CFTA is an<br />

imperative, especially with<strong>in</strong> this new<br />

era of anti-globalisation on one hand<br />

and the chang<strong>in</strong>g <strong>in</strong>ternational trade<br />

landscape on the other. The<br />

multilateral trad<strong>in</strong>g system is not<br />

liv<strong>in</strong>g up to expectations. Many of the<br />

largest countries <strong>in</strong> the world, and<br />

<strong>Africa</strong>’s most significant trad<strong>in</strong>g<br />

partners, are mov<strong>in</strong>g towards the<br />

establishment of Mega-Regional Trade<br />

Agreements. These <strong>in</strong>clude the<br />

Transatlantic Trade and <strong>Invest</strong>ment<br />

Partnership, the Trans-Pacific<br />

Partnership, and the Regional<br />

Comprehensive Economic<br />

Partnership. Various studies have<br />

demonstrated the mean<strong>in</strong>gful<br />

implications of these agreements on<br />

<strong>Africa</strong>, <strong>in</strong>clud<strong>in</strong>g preference erosion,<br />

and highlighted that the cont<strong>in</strong>ent<br />

would be better positioned and better<br />

off if we move to establish the CFTA as<br />

quickly as possible.<br />

70 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


Foreword<br />

HE Fatima<br />

Haram Acyl<br />

Commissioner for Trade and Industry<br />

<strong>Africa</strong>n Union Commission<br />

With a market of around 1.1 billion<br />

people, one of the biggest <strong>in</strong> the world,<br />

a grow<strong>in</strong>g middle class, the highest<br />

number of young people, and the rate of<br />

urbanisation rank<strong>in</strong>g one of the highest <strong>in</strong><br />

the world, <strong>Africa</strong> has the <strong>in</strong>gredients and<br />

assets to benefit from deepen<strong>in</strong>g and<br />

broaden<strong>in</strong>g economic <strong>in</strong>tegration at the<br />

regional and cont<strong>in</strong>ental levels. Its<br />

<strong>in</strong>tegration will be critical to its<br />

<strong>in</strong>dustrialisation agenda through the<br />

pool<strong>in</strong>g of productive capacities,<br />

establishment of regional value cha<strong>in</strong>s,<br />

markets and the development of<br />

economies of scale. One of the most<br />

important factors for the success of the<br />

CFTA will be the diversification of our<br />

economies through <strong>in</strong>clusive and<br />

susta<strong>in</strong>able <strong>in</strong>dustrial development and<br />

value addition to our raw materials. Pay<strong>in</strong>g<br />

a particular attention to the harmonisation<br />

and support of the standards and quality<br />

of our products for market access and<br />

enhanc<strong>in</strong>g their competitiveness is another<br />

significant po<strong>in</strong>t, as we are<br />

mov<strong>in</strong>g forward with the<br />

implementation of the BIAT<br />

Action Plan, especially the<br />

cluster on Trade Facilitation<br />

as well as the WTO Trade<br />

Facilitation Agreement.<br />

CFTA will be the<br />

diversification of our<br />

economies through <strong>in</strong>clusive<br />

and susta<strong>in</strong>able development<br />

Various empirical studies revealed that<br />

the implementation of the CFTA will double<br />

<strong>in</strong>tra-<strong>Africa</strong>n trade to 22% by 2022. <strong>Africa</strong><br />

has been depend<strong>in</strong>g on outside markets<br />

for its resources and has been hence<br />

subjected to the whims of external demand<br />

and fall<strong>in</strong>g commodity prices, especially<br />

of oil. Another reason for <strong>Africa</strong> to look<br />

<strong>in</strong>wards and to diversify is the fact that the<br />

United States which was a major oil trade<br />

partner of <strong>Africa</strong> is itself soon becom<strong>in</strong>g<br />

the first oil producer of the world.<br />

Susta<strong>in</strong>able economic growth should<br />

rather rely on <strong>in</strong>ternal demand.<br />

The Trade Week was organised <strong>in</strong> order<br />

to provide a platform for fruitful and<br />

stimulat<strong>in</strong>g dialogue among all<br />

stakeholders to the CFTA. The CFTA<br />

process should carry along all segments<br />

of society <strong>in</strong> order to ensure success. The<br />

first ever <strong>Africa</strong>n Economic Platform to be<br />

organised by the <strong>Africa</strong>n Union <strong>in</strong> March<br />

2017 will also give the opportunity to the<br />

most successful bus<strong>in</strong>esses <strong>in</strong> <strong>Africa</strong> to<br />

be sensitised about the CFTA and also to<br />

advise on the way forward, as they are<br />

the ones who will be br<strong>in</strong>g<strong>in</strong>g it to<br />

fruition, carry<strong>in</strong>g along the private sector,<br />

particularly SMEs where women and youth<br />

are the majority.<br />

Mov<strong>in</strong>g the cont<strong>in</strong>ent forward<br />

The CFTA process is an all-<strong>in</strong>clusive<br />

process. Some countries have set up<br />

national committees on the CFTA br<strong>in</strong>g<strong>in</strong>g<br />

together government, private sector, civil<br />

society and academicians. We encourage<br />

others to follow suit so that we can move<br />

our cont<strong>in</strong>ent forward together for the<br />

welfare of our people. •<br />

CFTA HISTORY<br />

<strong>in</strong> January 2012 the <strong>Africa</strong>n<br />

Union Heads of State<br />

adopted a decision to<br />

establish the CFTA by 2017.<br />

The Summit also endorsed<br />

the Action Plan on Boost<strong>in</strong>g<br />

Intra-<strong>Africa</strong> Trade which<br />

identifies seven clusters:<br />

trade policy, trade<br />

facilitation, productive<br />

capacity, trade related<br />

<strong>in</strong>frastructure, trade<br />

f<strong>in</strong>ance, trade <strong>in</strong>formation,<br />

and factor market<br />

<strong>in</strong>tegration. The CFTA will<br />

br<strong>in</strong>g together fifty-four<br />

<strong>Africa</strong>n countries with a<br />

comb<strong>in</strong>ed population of<br />

more than one billion<br />

people and a comb<strong>in</strong>ed<br />

gross domestic product of<br />

more than US $3.4 trillion.<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 71


TRADE & INTEGRATION<br />

Trade & <strong>in</strong>tegration<br />

Kenya Ports Authority (KPA)<br />

<strong>in</strong> Mombasa is East <strong>Africa</strong>’s<br />

busiest port<br />

72 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


TRADE & INTEGRATION<br />

Towards a<br />

Cont<strong>in</strong>ental<br />

Free Trade Area<br />

<strong>Africa</strong> rema<strong>in</strong>s on track to establish a CFTA <strong>in</strong> 2017, unit<strong>in</strong>g 54<br />

nations with a comb<strong>in</strong>ed population of more than one billion<br />

people and GDP <strong>in</strong> excess of $3.4 trillion, writes Julian Turner<br />

In December 2010, <strong>Africa</strong> trade m<strong>in</strong>isters<br />

agreed on a fast track agenda for a<br />

Cont<strong>in</strong>ental Free Trade Area (CFTA)<br />

aimed at abolish<strong>in</strong>g tariffs and quotas<br />

on goods and services among <strong>Africa</strong>n<br />

countries. The largest such free trade<br />

bloc <strong>in</strong> the world, it would unite 54 nations with<br />

a population of over one billion people and a<br />

gross domestic product <strong>in</strong> excess of $3.4 trillion.<br />

Part of a wider global trend of megaregional<br />

trade agreements that <strong>in</strong>cludes the<br />

Transatlantic Trade and <strong>Invest</strong>ment Partnership<br />

(TTIP) between the EU and the US, and the<br />

Trans-Pacific Partnership (TPP) compris<strong>in</strong>g 12<br />

countries <strong>in</strong>clud<strong>in</strong>g the US, Canada, Japan and<br />

Australia, the CFTA would enable <strong>Africa</strong> to<br />

compete from a position of strength <strong>in</strong> an<br />

<strong>in</strong>creas<strong>in</strong>gly <strong>in</strong>terconnected global marketplace.<br />

“The CFTA has huge potential to advance<br />

the <strong>in</strong>tra-<strong>Africa</strong> trade agenda, unlock <strong>Africa</strong>’s<br />

economic opportunities, and deliver growth<br />

and prosperity for all,” says Moono Mupotola,<br />

director of the NEPAD Regional Integration<br />

and Trade Department at the <strong>Africa</strong>n<br />

Development Bank (AfDB).<br />

Trevor Snapp/Bloomberg via Getty Images<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 73


TRADE & INTEGRATION<br />

CFTA OBJECTIVES:<br />

IN BRIEF<br />

• Create a s<strong>in</strong>gle<br />

cont<strong>in</strong>ental market<br />

for goods and<br />

services, <strong>in</strong>clud<strong>in</strong>g<br />

free movement of<br />

bus<strong>in</strong>ess persons<br />

and <strong>in</strong>vestments,<br />

pav<strong>in</strong>g the way for the<br />

establishment of the<br />

Cont<strong>in</strong>ental Customs<br />

Union by 2019 as<br />

provided for <strong>in</strong><br />

the Abuja Treaty<br />

establish<strong>in</strong>g the <strong>Africa</strong>n<br />

Economic Community.<br />

• Expand <strong>in</strong>tra-<strong>Africa</strong>n<br />

trade through better<br />

harmonisation and<br />

coord<strong>in</strong>ation of trade<br />

liberalisation and<br />

facilitation regimes<br />

and <strong>in</strong>struments across<br />

the eight RECs and<br />

<strong>Africa</strong> <strong>in</strong> general.<br />

• Resolve the challenges<br />

of multiple and<br />

overlapp<strong>in</strong>g<br />

memberships and<br />

expedite the regional<br />

and cont<strong>in</strong>ental<br />

<strong>in</strong>tegration processes.<br />

• Enhance<br />

competitiveness at the<br />

<strong>in</strong>dustry and enterprise<br />

level through exploit<strong>in</strong>g<br />

opportunities for scale<br />

production, cont<strong>in</strong>ental<br />

market access and<br />

better reallocation of<br />

resources.<br />

Source: AfDB<br />

“An <strong>in</strong>tegrated <strong>Africa</strong>, operat<strong>in</strong>g<br />

as one economic unit, will be better<br />

able to jo<strong>in</strong> the global economy and<br />

negotiate better trade terms. The CFTA<br />

also addresses core challenges of<br />

underdevelopment and lack of <strong>in</strong>clusive<br />

growth by remov<strong>in</strong>g tariffs and<br />

non-tariff barriers on goods and services<br />

traded with<strong>in</strong> the cont<strong>in</strong>ent, stimulat<strong>in</strong>g<br />

the flow of <strong>in</strong>vestment, as well as<br />

address<strong>in</strong>g key issues related to<br />

<strong>in</strong>vestment, competition, <strong>in</strong>tellectual<br />

property and movement of bus<strong>in</strong>ess<br />

persons with<strong>in</strong> <strong>Africa</strong>.”<br />

Lessons from the TFTA<br />

The United Nations Economic<br />

Commission for <strong>Africa</strong> (UNECA)<br />

estimates that the CFTA could <strong>in</strong>crease<br />

trade between <strong>Africa</strong>n countries by<br />

$35 billion by 2022, an <strong>in</strong>crease of<br />

more than 50% from current levels.<br />

At present, bus<strong>in</strong>ess between <strong>Africa</strong>n<br />

nations languishes at just over 14%<br />

of their total trade.<br />

“By pursu<strong>in</strong>g a developmental<br />

<strong>in</strong>tegration strategy that emphasises<br />

<strong>in</strong>frastructure development and<br />

<strong>in</strong>dustrialisation, the CFTA will address<br />

challenges that have so far bedevilled<br />

the regional <strong>in</strong>tegration process and<br />

facilitate an <strong>in</strong>tegration that goes beyond<br />

an agreement on paper,” states Mupotola.<br />

“This is particularly important when<br />

you consider that many <strong>Africa</strong>n goods<br />

are exported to <strong>Africa</strong>n markets. The<br />

CFTA would help to create a bigger<br />

market for value-added <strong>Africa</strong>n products,<br />

diversify regional economies, promote<br />

<strong>in</strong>dustrialisation <strong>in</strong> sectors with huge<br />

employment potential such as<br />

agriculture and agro-process<strong>in</strong>g, and<br />

boost the competitiveness of products<br />

via economies of scale.”<br />

In June 2015 <strong>in</strong> Egypt, <strong>Africa</strong>n leaders<br />

gave a historic boost to <strong>in</strong>tra-<strong>Africa</strong>n<br />

bus<strong>in</strong>ess by creat<strong>in</strong>g the cont<strong>in</strong>ent’s<br />

largest free-trade zone. The Tripartite<br />

Free Trade Area (TFTA) covers 26<br />

countries and unites three exist<strong>in</strong>g<br />

trade blocs − the Southern <strong>Africa</strong>n<br />

Development Community (SADC), the<br />

East <strong>Africa</strong>n Community (EAC) and<br />

the Common Market for Eastern and<br />

Southern <strong>Africa</strong> (COMESA).<br />

Progress s<strong>in</strong>ce then has been<br />

relatively slow, however, and while the<br />

CFTA represents the logical f<strong>in</strong>al stage <strong>in</strong><br />

<strong>Africa</strong>’s free trade evolution, Mupotola<br />

stresses that the right lessons must be<br />

learned.<br />

“Even though the TFTA has been<br />

signed, the negotiations are still ongo<strong>in</strong>g<br />

and then there are the conflict<strong>in</strong>g<br />

approaches and discipl<strong>in</strong>es of the various<br />

regional economic communities (RECs),”<br />

Mupotola says. “<strong>Africa</strong> has signed a<br />

number of bilateral, regional and<br />

multilateral agreements, especially those<br />

<strong>in</strong>volv<strong>in</strong>g third parties outside of <strong>Africa</strong>.<br />

There is a need to rationalise and<br />

harmonise all of those trad<strong>in</strong>g<br />

arrangements and to align them with<br />

the CFTA objective.<br />

“Nevertheless, conditions for<br />

achiev<strong>in</strong>g cont<strong>in</strong>ental <strong>in</strong>tegration have<br />

improved. The TFTA makes ratify<strong>in</strong>g<br />

the CFTA much easier than hav<strong>in</strong>g to<br />

negotiate as <strong>in</strong>dividual countries or<br />

from the position of many fragmented<br />

regional economic blocs. Agenda 2063<br />

provides the added impetus and <strong>Africa</strong>n<br />

countries have demonstrated a strong<br />

political will to achieve the regional<br />

<strong>in</strong>tegration objective.”<br />

A problem of perception<br />

McK<strong>in</strong>sey reports that by 2040, 1.1 billion<br />

<strong>Africa</strong>ns will be of work<strong>in</strong>g age and that<br />

half of <strong>Africa</strong>’s population will reside <strong>in</strong><br />

cities. Forg<strong>in</strong>g a dynamic, united nation<br />

commensurate with the ambition of<br />

this educated middle class is a test that<br />

leaders attend<strong>in</strong>g the 2017 <strong>Africa</strong>n Union<br />

Summit <strong>in</strong> Addis Ababa cannot afford<br />

to fail if the world’s second largest<br />

cont<strong>in</strong>ent is to fulfil its global potential.<br />

Mupotola rema<strong>in</strong>s optimistic that<br />

ratification of the CFTA <strong>in</strong> 2017 – <strong>in</strong><br />

tandem with the implementation of the<br />

Action Plan on Boost<strong>in</strong>g Intra-<strong>Africa</strong>n<br />

Trade (BIAT), which conta<strong>in</strong>s concrete<br />

targets to double <strong>in</strong>tra-<strong>Africa</strong>n trade<br />

flows from January 2012 and January<br />

2022 – is “ambitious but also achievable<br />

if countries keep up the momentum<br />

already established. A full operational<br />

CFTA requires ratification and<br />

mechanisms for implementation,<br />

and at the national level <strong>in</strong> <strong>Africa</strong><br />

this takes longer.<br />

“However, it is expected that with<br />

cont<strong>in</strong>u<strong>in</strong>g political support, and through<br />

national and regional mobilisation,<br />

<strong>Africa</strong>n leaders will support the timely<br />

<strong>in</strong>auguration of the CFTA <strong>in</strong> 2017.” •<br />

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TRADE & INTEGRATION<br />

Moono Mupotola, division<br />

manager on regional<br />

<strong>in</strong>tegration and trade at the<br />

<strong>Africa</strong>n Development Bank<br />

14%<br />

of the total trade<br />

of bus<strong>in</strong>ess among<br />

<strong>Africa</strong>n nations<br />

$3.4 TR<br />

comb<strong>in</strong>ed GDP of<br />

the 54 <strong>Africa</strong>n states<br />

$35BN<br />

Amount CFTA could<br />

boost <strong>in</strong>traregional<br />

trade by<br />

Source: The Brook<strong>in</strong>gs Institution<br />

CFTA has huge potential<br />

to advance the <strong>in</strong>tra-<br />

<strong>Africa</strong> trade agenda<br />

and unlock <strong>Africa</strong>’s<br />

economic opportunities<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 75


TRADE & INTEGRATION<br />

Trudi Hartzenberg explores how a review of transnational<br />

boundary regulations, <strong>in</strong>frastructural <strong>in</strong>vestment and synergies<br />

between the WTO’s and <strong>Africa</strong>’s trad<strong>in</strong>g agendas could pave the<br />

way to a fully-<strong>in</strong>tegrated, <strong>in</strong>tracont<strong>in</strong>ental trade network<br />

Regional<br />

<strong>in</strong>tegration<br />

In recent years, <strong>Africa</strong>’s regional<br />

<strong>in</strong>tegration discourse is focus<strong>in</strong>g on a<br />

‘developmental regional <strong>in</strong>tegration’<br />

paradigm. Developmental <strong>in</strong>tegration is<br />

anchored on three pillars – namely market<br />

<strong>in</strong>tegration, <strong>in</strong>dustrial development, and<br />

<strong>in</strong>frastructure – and features prom<strong>in</strong>ently <strong>in</strong> the<br />

Cont<strong>in</strong>ental Free Trade Area (CFTA) agenda, too.<br />

The market <strong>in</strong>tegration agenda, specifically a<br />

trade-<strong>in</strong>-goods agenda, has been the hallmark of<br />

<strong>Africa</strong>n <strong>in</strong>tegration. <strong>Africa</strong>’s need for better<br />

<strong>in</strong>frastructure (roads, rail, energy, water, ICT) is<br />

not contested, and the <strong>in</strong>frastructure deficit is well<br />

documented as a contributor to high costs of trade<br />

and do<strong>in</strong>g bus<strong>in</strong>ess across the cont<strong>in</strong>ent. The<br />

<strong>in</strong>clusion of <strong>in</strong>dustrial development <strong>in</strong> this<br />

paradigm rem<strong>in</strong>ds us that <strong>Africa</strong>’s fundamental<br />

challenge of produc<strong>in</strong>g goods and services<br />

competitively, and that policy recognition of the<br />

l<strong>in</strong>kages across agriculture, <strong>in</strong>dustry and services<br />

should be a feature of <strong>in</strong>dustrial policy.<br />

This high-level def<strong>in</strong>ition of developmental<br />

regional <strong>in</strong>tegration is persuasive; but it needs to<br />

be translated <strong>in</strong>to a practical agenda that will<br />

address the challenges <strong>Africa</strong>n economies and<br />

societies face <strong>in</strong> the 21st century.<br />

A review of trade and <strong>in</strong>tegration matters<br />

An often-used <strong>in</strong>dicator to measure progress <strong>in</strong><br />

terms of market <strong>in</strong>tegration is <strong>in</strong>tra-regional trade.<br />

Accord<strong>in</strong>g to the <strong>Africa</strong>n Economic Outlook, an<br />

annual publication of the AfDB, OECD and UNDP, <strong>in</strong><br />

2002, <strong>in</strong>tra-<strong>Africa</strong>n trade accounted for 10% of the<br />

cont<strong>in</strong>ent’s total trade; <strong>in</strong> 2014 it had reached 16%,<br />

still the lowest of all cont<strong>in</strong>ents. This figure masks<br />

important sub-regional differences among regional<br />

economic communities. In 2014, East <strong>Africa</strong>n<br />

Community (EAC) and Southern <strong>Africa</strong>n<br />

Development Community (SADC) are the most<br />

<strong>in</strong>tegrated by this measure; SADC recorded the<br />

highest proportion of <strong>in</strong>tra-regional trade at 19.3%,<br />

with EAC follow<strong>in</strong>g close beh<strong>in</strong>d at 18.4%. The<br />

Southern <strong>Africa</strong>n Customs Union (SACU) and the<br />

West <strong>Africa</strong> Economic and Monetary Union<br />

(WAEMU) follow, hover<strong>in</strong>g around 15%. The lowest<br />

proportion of <strong>in</strong>tra-regional trade is recorded by<br />

the Central <strong>Africa</strong>n Economic and Monetary<br />

Community (CEMAC) at just 2.1%.<br />

Although tariff liberalisation can encourage<br />

<strong>in</strong>tra-regional trade, there is ample evidence that<br />

Non-Tariff Barriers (NTBs), <strong>in</strong>clud<strong>in</strong>g burdensome<br />

customs and border procedures, high costs of<br />

transport and the use of standards and regulatory<br />

measures to protect domestic producers, are<br />

important trade barriers – as H.G. Jensen and<br />

R. Sandrey argue <strong>in</strong> their paper, ‘The Cont<strong>in</strong>ental<br />

Free Trade Area – A GTAP Assessment’ – with<br />

specifically pernicious effects on agricultural trade<br />

<strong>in</strong> <strong>Africa</strong>. While non-tariff measures may well have<br />

legitimate public policy objectives to protect<br />

human, animal and plant health as well as the<br />

environment, they can be implemented <strong>in</strong> such a<br />

way as to restrict trade. Elim<strong>in</strong>at<strong>in</strong>g NTBs and<br />

provid<strong>in</strong>g recourse to address NTBs, especially for<br />

private producers and traders, is an essential<br />

build<strong>in</strong>g block of a well-<strong>in</strong>tegrated region.<br />

Rules of Orig<strong>in</strong> (RoO)<br />

RoO can also constitute an NTB; protect<strong>in</strong>g<br />

domestic <strong>in</strong>dustry from import competition. In<br />

SADC, the RoO require a two-stage transformation<br />

process, so that both fabric and garment have to be<br />

produced <strong>in</strong> this REC, for garments to qualify for<br />

preferential duties. With limited textile production,<br />

this is very difficult, limit<strong>in</strong>g <strong>in</strong>tra-regional cloth<strong>in</strong>g<br />

trade. RoO should serve the purpose of prevent<strong>in</strong>g<br />

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TRADE & INTEGRATION<br />

iStock/Vlada_Z<br />

trade deflection, but be simple, transparent and<br />

easy to monitor and implement. If not, they defeat<br />

the objective of the <strong>in</strong>tegration project.<br />

Trade facilitation features prom<strong>in</strong>ently <strong>in</strong> the<br />

<strong>in</strong>tegration agenda; this is where an important<br />

synergy between the World Trade Organisation’s<br />

(WTO) agenda and <strong>Africa</strong>’s <strong>in</strong>tegration agenda can<br />

be developed. Trade facilitation is closely l<strong>in</strong>ked to<br />

<strong>Africa</strong>’s <strong>in</strong>frastructure development priorities, for<br />

example port and transport projects. These can<br />

provide a significant reduction to time <strong>in</strong> transit<br />

and associated trade costs. Carlos Lopes, ECA<br />

Executive Secretary, notes that port throughput <strong>in</strong><br />

<strong>Africa</strong> is expected to <strong>in</strong>crease from 265 million<br />

tonnes <strong>in</strong> 2009 to more than two-billion tons by<br />

2040. Efforts to expand the capacity and improve<br />

the efficiency of the Dar es Salaam port are a<br />

noteworthy example. Performance <strong>in</strong> the first<br />

quarter of the 2016/2017 f<strong>in</strong>ancial year has exceeded<br />

targets, and specific efforts to serve as the port of<br />

choice for Rwanda’s markets are also pay<strong>in</strong>g off.<br />

Longer open<strong>in</strong>g hours, e-payment systems and<br />

enhanced security at the port are part of the<br />

package of <strong>in</strong>itiatives to enhance port performance.<br />

Government has also, <strong>in</strong> an attempt to improve the<br />

speed of cargo delivery, <strong>reduced</strong> the number of<br />

checkpo<strong>in</strong>ts from 23 to three.<br />

Infrastructure development also requires<br />

appropriate regulation to ensure access to<br />

competitively priced and reliable supplies to<br />

<strong>in</strong>frastructure services such as transport,<br />

communications and energy. To support<br />

cross-border trade and <strong>in</strong>vestment, harmonisation<br />

of regulations may well be important. This provides<br />

an important l<strong>in</strong>k to the trade <strong>in</strong> services agenda.<br />

Added value<br />

United Nations Conference on Trade and<br />

Development’s (UNCTAD) 2015 review of <strong>Africa</strong>’s<br />

services trade <strong>in</strong>dicates that for 21 <strong>Africa</strong>n<br />

countries (exclud<strong>in</strong>g South Sudan), services<br />

contributed more than 50% to total value added,<br />

for the period from 2009 to 2012, and for 32.4% of<br />

total employment over the same period.<br />

While services also contribute to manufactur<strong>in</strong>g<br />

competitiveness, l<strong>in</strong>ks among services sectors<br />

enhance overall economic performance and<br />

development outcomes. L<strong>in</strong>kages between ICT<br />

and education or health care, for example, can<br />

contribute directly to make these services<br />

accessible to rural households. Synergies, therefore,<br />

between the trade <strong>in</strong> services and trade <strong>in</strong> goods<br />

agendas are important. Lower tariffs on ICT goods,<br />

for example, can amplify the positive outcomes of<br />

<strong>in</strong>tegration <strong>in</strong> areas like healthcare and education.<br />

The trade <strong>in</strong>tegration agenda has clearly<br />

swept way beyond the traditional scope of trade <strong>in</strong><br />

goods to reflect the reality of a 21st century <strong>Africa</strong>,<br />

which demands active participation from across<br />

economy and society to shape the cont<strong>in</strong>ent’s<br />

development outcomes. •<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 77


TRADE & INTEGRATION<br />

Julius Erukilede expla<strong>in</strong>s how <strong>Africa</strong> must – quite<br />

literally – pave the way to its own success, attract<strong>in</strong>g<br />

<strong>in</strong>vestors to fund <strong>in</strong>frastructure and logistic systems<br />

that can support exponential growth of <strong>in</strong>dustry<br />

One cont<strong>in</strong>ent<br />

with varied<br />

opportunities<br />

Amid the low commodity<br />

price, tighten<strong>in</strong>g<br />

f<strong>in</strong>ancials, and regional<br />

shocks, many people<br />

are question<strong>in</strong>g<br />

whether <strong>Africa</strong>’s recent<br />

economic advances are runn<strong>in</strong>g out of<br />

steam. However, <strong>Africa</strong>n economic<br />

growth is show<strong>in</strong>g signs of resilience.<br />

<strong>Africa</strong> is the world’s fastest-grow<strong>in</strong>g<br />

economy after East Asia with a real GDP<br />

at 3.6% (2015 estimate) higher than the<br />

3.1% for the global economy and 1.5%<br />

for the European Union bloc and a<br />

moderate 3.7% and 4.5% for 2016 and<br />

2017 respectively accord<strong>in</strong>g to <strong>Africa</strong><br />

Development Bank (AfDB).<br />

Despite the economic growth <strong>in</strong><br />

recent decades, <strong>in</strong>adequate transport<br />

and logistics <strong>in</strong>frastructure rema<strong>in</strong><br />

major obstacles towards achiev<strong>in</strong>g<br />

<strong>Africa</strong>’s full economic growth potential.<br />

<strong>Africa</strong>’s transport and logistics<br />

<strong>in</strong>frastructure is dilapidated, which has<br />

a direct consequence on its capacity to<br />

import and export goods, distribution<br />

and frequency of shipments, the costs of<br />

freight handl<strong>in</strong>g, and storage<br />

<strong>in</strong>frastructure, amongst other factors.<br />

Accord<strong>in</strong>g to OECD, only 27.6% of<br />

<strong>Africa</strong>’s two million km of roads are<br />

paved, with a sizeable percentage filled<br />

with potholes. The rail, air and sea<br />

<strong>in</strong>frastructure is no better. For <strong>in</strong>stance,<br />

the Tanzania–Zambia Railways, despite<br />

almost four decades of operations, is<br />

faced with underutilisation of the rail<br />

l<strong>in</strong>es l<strong>in</strong>ked with frequent breakdowns<br />

and derailments of tra<strong>in</strong>s. Consequently,<br />

poor road, rail and harbour<br />

<strong>in</strong>frastructure adds 30–40% to the<br />

costs of goods traded among <strong>Africa</strong>n<br />

countries, accord<strong>in</strong>g to Infrastructure<br />

Construction for <strong>Africa</strong> (ICA).<br />

New realities, new opportunities<br />

A World Bank study showed that, while<br />

$93 billion is needed annually over the<br />

next decade to overhaul sub-Saharan<br />

<strong>Africa</strong>n <strong>in</strong>frastructure, only about $25<br />

billion is be<strong>in</strong>g spent annually on capital<br />

expenditure, leav<strong>in</strong>g a substantial<br />

shortfall that has to be f<strong>in</strong>anced. But<br />

the PwC’s <strong>Africa</strong> gear<strong>in</strong>g up: Future<br />

prospects <strong>in</strong> <strong>Africa</strong> for the<br />

transportation & logistics<br />

<strong>in</strong>dustry noted that, despite the rather<br />

disappo<strong>in</strong>t<strong>in</strong>g figures, there are some<br />

positive signs of growth <strong>in</strong> transport<br />

and logistics <strong>in</strong>vestment potential<br />

across <strong>Africa</strong>.<br />

Specifically, the €230 million<br />

Dakar–Diamniadio toll road that opened<br />

<strong>in</strong> August 2013 rema<strong>in</strong>s a flagship of a<br />

new reality show<strong>in</strong>g that <strong>Africa</strong> is ready<br />

for massive <strong>in</strong>vestment. Accord<strong>in</strong>g to<br />

the World Bank, Dakar–Diamniadio is<br />

the first greenfield road Public Private<br />

Partnership (PPP) <strong>in</strong> sub-Saharan<br />

<strong>Africa</strong> with a strong commitment of<br />

development <strong>in</strong>stitutions <strong>in</strong> both public<br />

and private f<strong>in</strong>anc<strong>in</strong>g. The success of<br />

the project played a major role <strong>in</strong> the<br />

further concession of the motorway that<br />

connects Dakar’s new Blaise Diagne<br />

International Airport.<br />

Unlike Ch<strong>in</strong>a and India – where<br />

population is expected to flatten <strong>in</strong> the<br />

2020s –<strong>Africa</strong>’s population growth will<br />

cont<strong>in</strong>ue beyond 2030. Cities like Lagos<br />

with 22 million <strong>in</strong>habitants today will<br />

78 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


TRADE & INTEGRATION<br />

Over 70% of the<br />

world’s largest<br />

consumer goods<br />

companies already<br />

operate <strong>in</strong> <strong>Africa</strong><br />

$28.8bn<br />

The estimated <strong>in</strong>crease <strong>in</strong><br />

logistics spend<strong>in</strong>g <strong>in</strong> <strong>Africa</strong> by<br />

manufacturers and retailers<br />

between 2012 and 2016.<br />

38.4%<br />

The amount the outsourced<br />

logistics market is estimated to<br />

have grown between 2012 and<br />

2016.<br />

Jogg<strong>in</strong>g is common along the new motorway outside Dakar<br />

<strong>in</strong> Pictures Ltd./Corbis via Getty Images<br />

double their size <strong>in</strong> about 10 to 15 years.<br />

To facilitate better connectivity and<br />

accessibility, it is critical that <strong>Africa</strong>n<br />

skies are fully opened. <strong>Africa</strong>n leaders<br />

are work<strong>in</strong>g on boost<strong>in</strong>g regional<br />

agreements on market access, and on<br />

facilitation of transport of passengers<br />

and cargo by air. As of 2017, <strong>Africa</strong>’s<br />

s<strong>in</strong>gle air transport market for <strong>Africa</strong>n<br />

airl<strong>in</strong>es will become effective. This<br />

creates a huge opportunity to connect<br />

<strong>Africa</strong>n bus<strong>in</strong>esses and enables them to<br />

move their goods because the cont<strong>in</strong>ent<br />

envisages a boom <strong>in</strong> trade.<br />

For logistics companies, prospects<br />

<strong>in</strong> <strong>Africa</strong>’s retail and manufactur<strong>in</strong>g<br />

sectors are significant, as the cont<strong>in</strong>ent<br />

witnesses the growth of the middle<br />

class. Over 70% of the world’s largest<br />

consumer goods companies already<br />

operate <strong>in</strong> <strong>Africa</strong>. Emerg<strong>in</strong>g local<br />

entities are jo<strong>in</strong><strong>in</strong>g the sector, prompt<strong>in</strong>g<br />

keen observers to predict that <strong>Africa</strong>’s<br />

retail markets will grow substantially<br />

over the next decade.<br />

The transportation and logistics of<br />

food products hold mouth-water<strong>in</strong>g<br />

potential, but there is need for vast<br />

<strong>in</strong>vestment <strong>in</strong> cold-cha<strong>in</strong> services and<br />

temperature controlled storage<br />

facilities. At the moment, about 50% of<br />

farm produce does not make it to the<br />

market. In Uganda, a start-up, Tugende,<br />

has re<strong>in</strong>vented the wheel by us<strong>in</strong>g<br />

exist<strong>in</strong>g motorcycle drivers to create a<br />

logistic service to transport farm<br />

produce from rural area to city centres,<br />

help<strong>in</strong>g local farmers to make profit and<br />

also creat<strong>in</strong>g jobs for the teem<strong>in</strong>g youth.<br />

But as more <strong>Africa</strong>n countries move to<br />

higher levels of food process<strong>in</strong>g and<br />

trade <strong>in</strong> food products grows, an<br />

efficient transport and logistics<br />

services will be vital.<br />

Address<strong>in</strong>g <strong>Africa</strong>’s growth<br />

phenomenon, Charles Brewer, the<br />

Manag<strong>in</strong>g Director of DHL Express<br />

sub-Saharan <strong>Africa</strong>, argues that<br />

beyond optimism, the shipment<br />

numbers make the case for a positive<br />

outlook for <strong>Africa</strong>: “Our dependency on<br />

Europe has been <strong>reduced</strong>, while trade<br />

with Asia, as well as <strong>in</strong>tra-<strong>Africa</strong>, has<br />

picked up significantly”.<br />

The 2016 New Partnership for <strong>Africa</strong><br />

Development (NEPAD) Move <strong>Africa</strong><br />

report estimated that trade volumes <strong>in</strong><br />

sub-Saharan <strong>Africa</strong> will more than triple<br />

from 102.6 million tonnes <strong>in</strong> 2009 to 384<br />

million tonnes <strong>in</strong> 2030 as the cont<strong>in</strong>ent<br />

leaders forge ahead with the creation<br />

of trade corridors.<br />

As of today, consumption is already<br />

on the move. Accord<strong>in</strong>g to Deloitte,<br />

consumption on the cont<strong>in</strong>ent rose to<br />

more than $1 trillion <strong>in</strong> 2012, from $364<br />

million <strong>in</strong> 2000 represent<strong>in</strong>g an annual<br />

growth rate of 10.7%. The <strong>Africa</strong>n<br />

Development Bank (AfDB) approximated<br />

that a third of the cont<strong>in</strong>ent spends<br />

between $4 to $20 a day and the group<br />

is expected to grow to 42% by 2060.<br />

With approximately 50% of the<br />

cont<strong>in</strong>ent expected to have access to the<br />

<strong>in</strong>ternet by 2025, Mck<strong>in</strong>sey reported that<br />

ecommerce sales could be <strong>in</strong> for a $75<br />

billion or 10% boost of the total <strong>Africa</strong>’s<br />

retail sales. In South <strong>Africa</strong>, where the<br />

culture of onl<strong>in</strong>e purchase is well<br />

established, PayFast, a local payment<br />

gateway firm, stated that 33% of the<br />

people it surveyed made 10 or more<br />

purchases onl<strong>in</strong>e per year.<br />

One <strong>Africa</strong>, varied needs<br />

While <strong>Africa</strong>’s prospects rema<strong>in</strong> strong,<br />

<strong>in</strong>dividual countries have varied needs.<br />

In Nigeria, <strong>Africa</strong>’s biggest economy,<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 79


TRADE & INTEGRATION<br />

BeyondImages/iStock<br />

<strong>Africa</strong>n cargo tra<strong>in</strong> between<br />

Zimbabwe and Zambia<br />

while milestones have been<br />

achieved <strong>in</strong> port development and<br />

concessions <strong>in</strong> recent years, the<br />

country still needs to address a number<br />

of challenges <strong>in</strong> this regard.<br />

To tackle this problem, earlier <strong>in</strong><br />

2016, Kemi Adeosun, the F<strong>in</strong>ance<br />

M<strong>in</strong>ister build<strong>in</strong>g on the successful<br />

completion of the Ch<strong>in</strong>o–Nigerian<br />

f<strong>in</strong>anced $850 million Abuja–Kaduna<br />

high-speed railway project, unveiled a<br />

$25 billion overhaul of Nigeria’s<br />

transport network to complement the<br />

country’s diversification drive, which<br />

is expected to stimulate the economy.<br />

For <strong>in</strong>vestors look<strong>in</strong>g for<br />

opportunities to grow their market<br />

share and <strong>in</strong>vestment earn<strong>in</strong>gs, the East<br />

<strong>Africa</strong>n states rema<strong>in</strong> a toast. Kenya<br />

recently laid the foundation stone for its<br />

1.3 trillion shill<strong>in</strong>gs ultra-modern<br />

railway network that orig<strong>in</strong>ates <strong>in</strong><br />

Mombasa and travels 500km to<br />

airobi <strong>in</strong> its first phase, prompt<strong>in</strong>g<br />

<strong>in</strong>frastructure experts to estimate that<br />

on completion, the cost of cargo<br />

transport will reduce by 60%. Other<br />

projects of importance <strong>in</strong> the region<br />

<strong>in</strong>clude the 260km Arusha–Holili–Voi<br />

Road, which is <strong>in</strong> the f<strong>in</strong>al design stages,<br />

the 400km Mal<strong>in</strong>di–Lunga Lunga Road,<br />

Tanga–Bagamoyo Road, the 92km<br />

Lusahunga–Rusumo Road and the<br />

70km Kayonza–Kigali Road, both<br />

l<strong>in</strong>k<strong>in</strong>g Tanzania and Rwanda.<br />

In Botswana, the Sir Seretse Khama<br />

International Airport (SSKIA) <strong>in</strong><br />

Gaborone has been identified as an air<br />

cargo hub to handle perishable goods.<br />

It is thought that the hub could attract<br />

both freight and passenger airl<strong>in</strong>es to<br />

provide cargo capacity at SSKIA.<br />

Conclusion<br />

Inadequate transport and logistics<br />

<strong>in</strong>frastructure rema<strong>in</strong>s a challenge to<br />

<strong>Africa</strong>’s long-term growth, but it also<br />

presents a significant opportunity<br />

for <strong>in</strong>vestors to f<strong>in</strong>ance assets such<br />

as ports, railway l<strong>in</strong>es, and toll road.<br />

For <strong>in</strong>vestors who are ready to<br />

undertake the detailed research<br />

required to understand <strong>Africa</strong>’s unique<br />

transport and logistics challenges<br />

and are ready to be part of a 20–30<br />

–year <strong>in</strong>frastructure development,<br />

<strong>Africa</strong>n countries offer opportunities<br />

that guarantee long-term policy<br />

stability, revenue certa<strong>in</strong>ty and high<br />

government priority. •<br />

KSh1.3tN<br />

Cost of the ultra-modern<br />

railway network from<br />

Mombasa to Nairobi.<br />

80 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


<strong>Africa</strong>n Agribus<strong>in</strong>ess Incubators Network<br />

Grow<strong>in</strong>g <strong>Africa</strong>’s agribus<strong>in</strong>ess<br />

<strong>Africa</strong>n Agribus<strong>in</strong>ess Incubators<br />

Network (AAIN) is a private sector<br />

<strong>in</strong>itiative whose core mandate is to<br />

“Strengthen agribus<strong>in</strong>ess <strong>in</strong>cubation<br />

capacity as well as commercialise<br />

agricultural technologies and <strong>in</strong>novation<br />

<strong>in</strong> <strong>Africa</strong>.”<br />

The network was formed <strong>in</strong> November<br />

2014 and registered <strong>in</strong> 2015 <strong>in</strong> Accra,<br />

Ghana and s<strong>in</strong>ce then has over 110<br />

registered members drawn from the<br />

<strong>Africa</strong>n cont<strong>in</strong>ent and beyond. AAIN serves<br />

<strong>in</strong>dividuals, organisation or firms<br />

<strong>in</strong>terested <strong>in</strong> agribus<strong>in</strong>ess <strong>in</strong>cubation <strong>in</strong><br />

<strong>Africa</strong> whiles provid<strong>in</strong>g technical support<br />

<strong>in</strong> agribus<strong>in</strong>ess development through<br />

<strong>in</strong>cubation and mentorship, off-tak<strong>in</strong>g<br />

<strong>in</strong>novations and technologies from<br />

research for commercialisation.<br />

AAIN works across knowledge<br />

platforms to facilitate private sector<br />

engagement and support of youth<br />

mentorship, technology adaptation,<br />

localisation and commercialisation. AAIN<br />

has pioneered and co-created a novel<br />

Learn as You Earn education model. It<br />

was co-created through the Universities,<br />

Bus<strong>in</strong>ess and Research collaboration<br />

and promotes agribus<strong>in</strong>ess education<br />

<strong>in</strong>cubation and enriched further through<br />

the universities private sector forums.<br />

AAIN has developed an Agribus<strong>in</strong>ess<br />

Incubation Agenda for <strong>Africa</strong>, with four<br />

<strong>in</strong>vestment focus areas, amongst them,<br />

has established the <strong>Africa</strong>n Agribus<strong>in</strong>ess<br />

Incubation Fund (AAIF), as a f<strong>in</strong>ancial<br />

and technical support service for<br />

agribus<strong>in</strong>ess <strong>in</strong>cubation.<br />

Vision:<br />

To be the hub of <strong>in</strong>novation for <strong>Africa</strong>n<br />

agri-bus<strong>in</strong>ess <strong>in</strong>cubation<br />

Mission:<br />

Incubat<strong>in</strong>g agribus<strong>in</strong>ess <strong>in</strong>cubators<br />

through advanc<strong>in</strong>g entrepreneurial<br />

talent, network<strong>in</strong>g, <strong>in</strong>tegrat<strong>in</strong>g science<br />

and technology for job and wealth<br />

creation <strong>in</strong> <strong>Africa</strong>.<br />

Bus<strong>in</strong>ess Focus<br />

• <strong>Africa</strong>n Agribus<strong>in</strong>ess Innovation Fund<br />

• Bus<strong>in</strong>ess <strong>in</strong>cubation and Enterprise<br />

Development<br />

• Market development and l<strong>in</strong>kages<br />

• Agribus<strong>in</strong>ess Education<br />

• Youth and Women <strong>in</strong> Agribus<strong>in</strong>ess<br />

<strong>in</strong>vestment support<br />

• Initiate and coord<strong>in</strong>ate<br />

implementation of the bio economy<br />

strategy<br />

Objectives<br />

• To facilitate establishment and growth<br />

of susta<strong>in</strong>able agribus<strong>in</strong>ess <strong>in</strong>cubators<br />

• To enhance knowledge management,<br />

<strong>in</strong>formation, best practices and lessons<br />

learnt <strong>in</strong> agribus<strong>in</strong>ess<br />

• To facilitate and coord<strong>in</strong>ate <strong>in</strong>novative<br />

bus<strong>in</strong>ess models for agribus<strong>in</strong>ess<br />

f<strong>in</strong>anc<strong>in</strong>g and <strong>in</strong>vestment<br />

• To promote and enhance access to<br />

market for the network’s agribus<strong>in</strong>ess<br />

<strong>in</strong>cubators<br />

• Strengthen the capacity of AAIN and


<strong>Africa</strong>n Agribus<strong>in</strong>ess Incubators Network<br />

Our achievements<br />

S<strong>in</strong>ce our <strong>in</strong>ception we have been work<strong>in</strong>g greatly<br />

with three development objectives at heart, below<br />

are the results of our work under these objectives.<br />

Commercialisation of agribus<strong>in</strong>ess <strong>in</strong>novations<br />

supported and promoted<br />

• Seven <strong>in</strong>cubators directly supported <strong>in</strong> <strong>Africa</strong><br />

under UniBRAIN<br />

• 186 start-ups supported to operate their<br />

bus<strong>in</strong>esses<br />

• 120 start-ups established<br />

• 75 technologies commercialised<br />

• $4.8 million <strong>in</strong>come generated both directly and<br />

<strong>in</strong>directly<br />

• 25,000 farmers and households reached<br />

• 400 <strong>in</strong>cubatees supported at the <strong>in</strong>cubators<br />

Agribus<strong>in</strong>ess graduates with potential to become<br />

efficient entrepreneurs produced by tertiary<br />

educational <strong>in</strong>stitutions<br />

• The development of The Agribus<strong>in</strong>ess Curriculum<br />

Framework for Certificate, Diploma, Bachelors,<br />

Masters and PhD levels (ANAFE)<br />

• 158 <strong>Africa</strong>n universities reached and six<br />

universities Europe and North America<br />

• Over 850 graduate <strong>in</strong>terns supported<br />

• Over 1,400 students at Diploma, BSc and<br />

MSc levels have benefited from improved<br />

education products<br />

UniBRAIN’s <strong>in</strong>novative outputs experiences and<br />

practices shared and up-scaled<br />

• 20 Additional bus<strong>in</strong>ess partnerships have<br />

been forged<br />

• Eight additional <strong>in</strong>cubators have been set up based<br />

on the model and funded by other development<br />

partners. Five other new <strong>in</strong>cubators <strong>in</strong> the pipel<strong>in</strong>e<br />

• 31 Countries to adopt the AAIN Model <strong>in</strong> the<br />

implementation of AfDB supported ENABLE<br />

youth programme<br />

• 54 <strong>Africa</strong>n countries mobilized to use AAIN/<br />

UniBRAIN model to implement the AAIP <strong>in</strong><br />

partnership with AUC Directorate of Rural<br />

Economy and Agriculture<br />

• 29 European Union countries have been mobilised<br />

and are committed to support the model<br />

• 350 mentors have been profiled to provide service<br />

to <strong>in</strong>cubator/<strong>in</strong>cubates<br />

its partners to deliver on agribus<strong>in</strong>ess<br />

<strong>in</strong>cubation<br />

OUR CORE INVESTMENT AREAS<br />

Agribus<strong>in</strong>ess education and<br />

entrepreneurship promotion<br />

AAIN uses creative tools to transform<br />

education, capacitate mentors and<br />

build the capacity of <strong>in</strong>cubation systems<br />

<strong>in</strong> Agribus<strong>in</strong>ess. AAIN has developed<br />

education curricula from certificate to<br />

PhD level on agribus<strong>in</strong>ess.<br />

Technology and <strong>in</strong>novations<br />

commercialisation<br />

AAIN supports start-ups, SMEs, <strong>in</strong>cubators,<br />

women, men and youth to off-take new<br />

ideas, <strong>in</strong>novations and technologies from<br />

research to commercialisation. It also<br />

supports technology development and<br />

transfer as part of the drive to<br />

mechanisation. AAIN de-risks the process<br />

of commercialisation on to improve the<br />

<strong>in</strong>vestment climate.<br />

Youth engagement <strong>in</strong> agribus<strong>in</strong>ess<br />

<strong>in</strong>cubation, trade and <strong>in</strong>vestment<br />

The Youth Engagement Strategy (YES)<br />

aims to turn youth <strong>in</strong>to successful<br />

agribus<strong>in</strong>ess entrepreneurs, support<br />

them to access f<strong>in</strong>anc<strong>in</strong>g, assist them<br />

acquire new technologies and <strong>in</strong>novations,<br />

and redesign the curricula to make<br />

education responsive to the market<br />

needs and trends.<br />

<strong>Africa</strong>n Agribus<strong>in</strong>ess Incubation Fund<br />

<strong>Africa</strong>n Agribus<strong>in</strong>ess Incubation Fund<br />

(AAIF) addresses one of the barriers for<br />

youth to enter <strong>in</strong>to agribus<strong>in</strong>ess. The<br />

f<strong>in</strong>anc<strong>in</strong>g is accessed by <strong>in</strong>cubators, Small<br />

Scale Incubator Hubs, <strong>in</strong>cubatees, students,<br />

SMEs, cooperatives or <strong>in</strong>dividuals with<br />

ideas worth spread<strong>in</strong>g.<br />

Partners and networks<br />

We have a cont<strong>in</strong>ental network of<br />

<strong>in</strong>stitutions work<strong>in</strong>g on agribus<strong>in</strong>ess<br />

<strong>in</strong>cubation spann<strong>in</strong>g 54 countries network<br />

with contact focal po<strong>in</strong>ts <strong>in</strong> seven <strong>Africa</strong>n<br />

countries; Kenya, Uganda, Zambia, Mali,<br />

Ghana, Ben<strong>in</strong>, South <strong>Africa</strong>, and Malawi.<br />

Our key actors and partner span across<br />

the below:<br />

• F<strong>in</strong>ancial <strong>in</strong>stitutions<br />

• Input and output suppliers<br />

• Development actor and partners<br />

<strong>Africa</strong>n Agribus<strong>in</strong>ess Incubators Network<br />

Nii Noi Kwame Street,<br />

North Dzorwulu, Accra, Ghana<br />

+233 501 481 646 (Mobile)<br />

http://africaa<strong>in</strong>.org


<strong>Africa</strong>n Agribus<strong>in</strong>ess Incubators Network<br />

AAIN’s technical <strong>in</strong>frastructure <strong>in</strong> <strong>Africa</strong><br />

S<strong>in</strong>ce 2010, AAIN/UniBRAIN has been<br />

work<strong>in</strong>g on agribus<strong>in</strong>ess <strong>in</strong>cubation <strong>in</strong><br />

over seven <strong>Africa</strong>n countries. AAIN has<br />

ga<strong>in</strong>ed experience <strong>in</strong> agribus<strong>in</strong>ess<br />

<strong>in</strong>cubation, learnt lessons, developed<br />

new <strong>in</strong>cubation models, tested its<br />

approaches to partnership, developed<br />

partnerships to enhance <strong>in</strong>cubation<br />

performance, profiled agribus<strong>in</strong>ess<br />

technologies for commercialisation, and<br />

documented its approaches and best<br />

practices. The company recently<br />

developed agribus<strong>in</strong>ess <strong>in</strong>cubation tool<br />

box 2016 which is now used by its<br />

members and mentors to provide<br />

technical support to emerg<strong>in</strong>g<br />

<strong>in</strong>cubators <strong>in</strong> <strong>Africa</strong>.<br />

A summary of AAIN technical<br />

<strong>in</strong>frastructure<br />

• MoUs with the <strong>Africa</strong>n Union as a<br />

technical development partner for<br />

agribus<strong>in</strong>ess <strong>in</strong>cubation development<br />

<strong>in</strong> <strong>Africa</strong>.<br />

• 110 Agribus<strong>in</strong>ess and Bus<strong>in</strong>ess<br />

<strong>in</strong>cubator members with vast<br />

experience <strong>in</strong> <strong>in</strong>cubation and<br />

<strong>in</strong>cubation models for economic<br />

transformation.<br />

• Developed model for agribus<strong>in</strong>ess<br />

<strong>in</strong>cubation f<strong>in</strong>anc<strong>in</strong>g and <strong>in</strong>novative<br />

access to f<strong>in</strong>ance for starts and small<br />

scale farmers <strong>in</strong> <strong>Africa</strong> (AAIF)<br />

• Have proven agribus<strong>in</strong>ess <strong>in</strong>cubation<br />

model and approaches for job and<br />

wealth creation-UniBRAIN model<br />

with evidence of results <strong>in</strong> over<br />

11 <strong>Africa</strong>n Countries<br />

• 510 Mentors <strong>in</strong> place to support<br />

<strong>in</strong>cubates and SMEs <strong>in</strong> bus<strong>in</strong>ess start,<br />

growth and bus<strong>in</strong>ess acceleration.<br />

• 158 <strong>Africa</strong>n Universities and 8 Global<br />

Universities l<strong>in</strong>ked to AAIN<br />

agribus<strong>in</strong>ess education and 24<br />

University Private Sector Forums<br />

for agribus<strong>in</strong>ess.<br />

• Six MoUs <strong>Africa</strong> based sub-regional<br />

research organisations and<br />

<strong>in</strong>ternational research organisations<br />

to facilitate access to technologies and<br />

<strong>in</strong>novations for commercialisation<br />

• Possess <strong>Africa</strong> based tested tools and<br />

guidel<strong>in</strong>es for agribus<strong>in</strong>ess <strong>in</strong>cubation<br />

(AAIN <strong>in</strong>cubation tool box 2016)<br />

• L<strong>in</strong>ked to over 50,000 commercial<br />

supply cha<strong>in</strong> actors and clusters <strong>in</strong><br />

<strong>Africa</strong> and its members<br />

• Certificate and award w<strong>in</strong>ner of<br />

Global Agribus<strong>in</strong>ess Incubators<br />

Network 2014<br />

• Composed 350 <strong>in</strong>cubators across<br />

the world<br />

• Have proven model for youth<br />

engagement <strong>in</strong> agribus<strong>in</strong>ess trade and<br />

<strong>in</strong>vestment <strong>in</strong> <strong>Africa</strong> (Earn as you learn<br />

model and UniBRAIN model)<br />

• Seven regional agribus<strong>in</strong>ess <strong>in</strong>cubation<br />

contact offices and centres of<br />

excellence <strong>in</strong> <strong>in</strong>cubation<br />

• Proven model for public private sector<br />

partnership and engagement<br />

frameworks for mutual benefits and<br />

accountability<br />

• Agenda for agribus<strong>in</strong>ess <strong>in</strong>cubation <strong>in</strong><br />

<strong>Africa</strong> through AAIP 2016 to 2020


<strong>Africa</strong>n Agribus<strong>in</strong>ess Incubators Network<br />

The <strong>Africa</strong>n<br />

Agribus<strong>in</strong>ess<br />

Incubators<br />

Network<br />

supports the<br />

advancement<br />

of agriculture<br />

• Over 50 professionals and experts<br />

across <strong>Africa</strong> <strong>in</strong> agribus<strong>in</strong>ess <strong>in</strong>cubation<br />

• Over 120 associate consultants <strong>in</strong><br />

<strong>in</strong>cubation at national, regional and<br />

global level<br />

• Agribus<strong>in</strong>ess <strong>in</strong>cubation M&E<br />

system developed<br />

• Presence of onl<strong>in</strong>e, virtual and on site<br />

<strong>in</strong>cubation tools to support exist<strong>in</strong>g<br />

and emerg<strong>in</strong>g <strong>in</strong>cubators<br />

• Produced a compendium of<br />

agribus<strong>in</strong>ess technologies and<br />

<strong>in</strong>novations for commercialisation <strong>in</strong><br />

<strong>Africa</strong> and Asia (UniBRAIN /AAIN 2015)<br />

About <strong>Africa</strong>n Agribus<strong>in</strong>ess<br />

Incubators Fund<br />

AAIN established the <strong>Africa</strong>n Agribus<strong>in</strong>ess<br />

Incubation Fund (AAIF), as a f<strong>in</strong>ancial and<br />

technical support service for agribus<strong>in</strong>ess<br />

<strong>in</strong>cubation with the purpose of<br />

underwrit<strong>in</strong>g and de-risk<strong>in</strong>g agribus<strong>in</strong>ess.<br />

The AAIF f<strong>in</strong>anc<strong>in</strong>g and <strong>in</strong>vestment is<br />

available to <strong>in</strong>cubators, small scale<br />

<strong>in</strong>cubator hubs, <strong>in</strong>cubatees, students,<br />

SMEs, cooperatives or <strong>in</strong>dividuals with<br />

ideas worth spread<strong>in</strong>g. It supports ideas<br />

generation, test<strong>in</strong>g of <strong>in</strong>novations, and<br />

commercialis<strong>in</strong>g of technologies and<br />

<strong>in</strong>novations. <strong>Invest</strong>ments <strong>in</strong> agribus<strong>in</strong>ess<br />

and <strong>in</strong> youth is considered to be high risk<br />

by lenders and f<strong>in</strong>anciers, thus AAIF<br />

addresses some of the key entry barriers<br />

by youth <strong>in</strong>to agribus<strong>in</strong>ess.<br />

AAIN engages <strong>in</strong> the de-risk<strong>in</strong>g process<br />

through mentorship and handhold<strong>in</strong>g while<br />

AAIF supports the build<strong>in</strong>g of successful<br />

‘agri-ventures’. AAIN has regional and<br />

liaison offices <strong>in</strong> Kenya, Rwanda, Mali,<br />

South <strong>Africa</strong>, Senegal and Ben<strong>in</strong>. The fund<br />

is managed by a board, a technical<br />

committee, account<strong>in</strong>g and audit firm.<br />

The fund manager reports to the CEO<br />

who <strong>in</strong> turn reports to the AAIN board.<br />

Scope of operations<br />

The AAIN targets to establish the services<br />

of AAIF <strong>in</strong> all the 54 <strong>Africa</strong>n countries<br />

alongside the <strong>in</strong>cubators and <strong>in</strong> support<br />

of the agribus<strong>in</strong>ess <strong>in</strong>vestment agenda<br />

• Fund/<strong>in</strong>cubation design<br />

• Pre and post <strong>in</strong>cubation f<strong>in</strong>anc<strong>in</strong>g<br />

have different risk profiles. This<br />

determ<strong>in</strong>es the design of the f<strong>in</strong>anc<strong>in</strong>g<br />

as well as the AAIF <strong>in</strong>vestment<br />

approach, design and also <strong>in</strong>fluences<br />

the <strong>in</strong>cubation actions.<br />

<strong>Africa</strong>n Agribus<strong>in</strong>ess Incubators Network<br />

Nii Noi Kwame Street,<br />

North Dzorwulu, Accra, Ghana<br />

+233 501 481 646 (Mobile)<br />

http://africaa<strong>in</strong>.org


AGRICULTURE<br />

Engag<strong>in</strong>g<br />

<strong>Africa</strong>n youth<br />

<strong>in</strong> agriculture<br />

Agriculture<br />

Over the past decade, <strong>Africa</strong> recorded<br />

susta<strong>in</strong>ed and impressive economic<br />

growth rates. In 2014, growth rates<br />

averaged around 5% – almost double<br />

the global average. Agriculture rema<strong>in</strong>s<br />

a key sector <strong>in</strong> <strong>Africa</strong>n economies,<br />

account<strong>in</strong>g for 70% of the employment and<br />

contribut<strong>in</strong>g to about 25% of the GDP <strong>in</strong> many<br />

countries. Despite <strong>Africa</strong>’s vast agricultural potential<br />

and these impressive economic growth figures, the<br />

cont<strong>in</strong>ent has rema<strong>in</strong>ed a net importer of food and<br />

non-food agricultural products <strong>in</strong> the last three<br />

decades. Progress towards improved food security <strong>in</strong><br />

sub-Saharan <strong>Africa</strong> has been slow overall and 23.2% of<br />

the population is estimated to be undernourished.<br />

Other challenges fac<strong>in</strong>g <strong>Africa</strong> <strong>in</strong>clude rapid<br />

urbanisation, a large youth population and climate<br />

change. Although <strong>Africa</strong> is the least urbanised region<br />

of the world, with an urban population of 39%, it has<br />

the fastest urban growth rate of 4.5%. UN projections<br />

show that <strong>Africa</strong> will become 50% urban by 2035.<br />

At the same time, <strong>Africa</strong> has the youngest population<br />

<strong>in</strong> the world, with almost 200 million people aged<br />

between 15 and 24, and more than half of the<br />

population under 25 years old. On the other hand, the<br />

natural resources, biodiversity and ecosystems upon<br />

which the cont<strong>in</strong>ent’s agriculture is reliant are be<strong>in</strong>g<br />

unsusta<strong>in</strong>ably exploited and degraded, while climate<br />

change poses a significant challenge to the crop,<br />

livestock, fisheries and forestry sectors.<br />

The 2030 Agenda for Susta<strong>in</strong>able Development is<br />

a historic commitment to tackle poverty and hunger<br />

while restor<strong>in</strong>g and susta<strong>in</strong>ably manag<strong>in</strong>g natural<br />

resources through an <strong>in</strong>terconnected set of<br />

Susta<strong>in</strong>able Development Goals (SDGs). In 2014, the<br />

<strong>Africa</strong>n Union (AU) adopted the Malabo Declaration<br />

Engag<strong>in</strong>g the <strong>Africa</strong>n youth <strong>in</strong><br />

agriculure will boost productivity<br />

86 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


AGRICULTURE<br />

Maria Helena Semedo espouses the<br />

need for <strong>in</strong>vestment <strong>in</strong> mechanis<strong>in</strong>g<br />

technologies to attract <strong>Africa</strong>’s youth<br />

to agriculture<br />

on Accelerated Agricultural Growth and<br />

Transformation for Shared Prosperity and Improved<br />

Livelihoods, the aspirations of which and priority<br />

areas are fully aligned to the SDGs.<br />

Food and agricultural systems feature prom<strong>in</strong>ently<br />

<strong>in</strong> the COP21 agreement that was reached <strong>in</strong> Paris <strong>in</strong><br />

December 2015, pav<strong>in</strong>g the way for countries to<br />

identify their climate adaptation and mitigation<br />

responses. The recently concluded COP22 <strong>in</strong><br />

Marrakech, Morocco provided a forum for focus<strong>in</strong>g on<br />

actions to achieve the commitments of the landmark<br />

Paris Agreement.<br />

Potential for mechanisation<br />

and agribus<strong>in</strong>ess<br />

The benefits of agricultural mechanisation <strong>in</strong>clude<br />

reduc<strong>in</strong>g drudgery, improv<strong>in</strong>g the timel<strong>in</strong>ess of<br />

agricultural operations, and mak<strong>in</strong>g agriculture more<br />

resilient to <strong>in</strong>creas<strong>in</strong>gly extreme and unpredictable<br />

climatic events. Mechanisation can also improve<br />

post-harvest, process<strong>in</strong>g and market<strong>in</strong>g operations,<br />

which add value to primary products, reduce food<br />

losses, and improve food safety and quality. Moreover,<br />

mechanisation can create entrepreneurial<br />

opportunities <strong>in</strong> rural areas such as hire services,<br />

while also provid<strong>in</strong>g opportunities for energy<br />

generation and <strong>in</strong>frastructure improvement.<br />

Through their forward and backward l<strong>in</strong>kages,<br />

agribus<strong>in</strong>esses produce multiplier effects, generat<strong>in</strong>g<br />

demand for agricultural products and associated<br />

<strong>in</strong>puts and services, creat<strong>in</strong>g on- and off-farm<br />

employment, enhanc<strong>in</strong>g <strong>in</strong>comes and contribut<strong>in</strong>g to<br />

value addition and <strong>in</strong>creased public sector revenues.<br />

The development of agribus<strong>in</strong>ess can facilitate access<br />

of smallholders to markets, f<strong>in</strong>ance and technical<br />

assistance, promot<strong>in</strong>g their <strong>in</strong>clusion <strong>in</strong>to more<br />

modern and efficient value cha<strong>in</strong>s.<br />

Agricultural mechanisation and agribus<strong>in</strong>ess<br />

development <strong>in</strong> <strong>Africa</strong> lags significantly beh<strong>in</strong>d other<br />

develop<strong>in</strong>g regions. Accord<strong>in</strong>g to Food and Agriculture<br />

Organization (FAO) data, <strong>Africa</strong>’s average of 13<br />

tractors/100km² of arable land is much lower than the<br />

global average (200/100km²) and the average for other<br />

develop<strong>in</strong>g regions such as South Asia (129/100km²).<br />

Land preparation <strong>in</strong> <strong>Africa</strong> is be<strong>in</strong>g carried out us<strong>in</strong>g<br />

draft animals and tractors on only 30% of the area<br />

cultivated. With regard to agribus<strong>in</strong>ess, despite the<br />

grow<strong>in</strong>g <strong>in</strong>ternational demand for higher-value<br />

processed products, <strong>Africa</strong> is yet to make significant<br />

progress toward add<strong>in</strong>g value to her primary<br />

agricultural commodities. Some estimates show that<br />

<strong>Africa</strong>n countries contribute less than 10% to global<br />

value addition, while <strong>Africa</strong>’s <strong>in</strong>ternational trade is<br />

dom<strong>in</strong>ated by primary commodity exports, which<br />

represent almost 60% of total export value.<br />

The low level of mechanisation across the agrifood<br />

value cha<strong>in</strong> and low levels of agribus<strong>in</strong>ess<br />

development make agriculture unattractive to <strong>Africa</strong>’s<br />

youth, while also limit<strong>in</strong>g opportunities for <strong>in</strong>come<br />

generation and employment.<br />

Arne Hoel / World Bank<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 87


AGRICULTURE<br />

As such they are some of the contributory<br />

factors to emigration – particularly of youth<br />

– from rural areas <strong>in</strong> search of alternative<br />

livelihoods and opportunities <strong>in</strong> urban areas<br />

and foreign countries.<br />

The avenues for address<strong>in</strong>g youth<br />

unemployment <strong>in</strong> <strong>Africa</strong> are closely <strong>in</strong>terl<strong>in</strong>ked<br />

to those for transform<strong>in</strong>g the agriculture and<br />

food systems <strong>in</strong> order to susta<strong>in</strong>ably feed the<br />

rapidly grow<strong>in</strong>g and urbanis<strong>in</strong>g population.<br />

As many young <strong>Africa</strong>ns<br />

f<strong>in</strong>d traditional farm<strong>in</strong>g<br />

unattractive, the<br />

prospects are higher<br />

for <strong>in</strong>volv<strong>in</strong>g them<br />

<strong>in</strong> profitable<br />

agro-enterprises<br />

and more modern,<br />

mechanised agrifood<br />

systems where they can<br />

apply their education,<br />

entrepreneurial potential,<br />

technological knowledge<br />

(<strong>in</strong>clud<strong>in</strong>g of ICTs) and<br />

<strong>in</strong>novativeness.<br />

What needs to be<br />

done – examples<br />

of FAO support<br />

If the youths are to play a role <strong>in</strong> enabl<strong>in</strong>g<br />

<strong>Africa</strong> to meet the future food and nutrition<br />

needs of its population, <strong>in</strong>vestments will be<br />

needed to address the numerous constra<strong>in</strong>ts<br />

limit<strong>in</strong>g their participation <strong>in</strong> agricultural and<br />

food systems. Among others, these constra<strong>in</strong>ts<br />

<strong>in</strong>clude unsupportive policy and regulatory<br />

environments, <strong>in</strong>adequate skills development<br />

and educational opportunities, and limited<br />

access to land, <strong>in</strong>formation, technologies<br />

and f<strong>in</strong>ancial services.<br />

It is aga<strong>in</strong>st this background that FAO and<br />

the <strong>Africa</strong>n Union Commission (AUC) are<br />

partner<strong>in</strong>g <strong>in</strong> projects to promote susta<strong>in</strong>able<br />

agricultural mechanisation and agribus<strong>in</strong>ess<br />

development. In one project, capacity<br />

development needs of government officials<br />

<strong>in</strong> formulat<strong>in</strong>g susta<strong>in</strong>able agricultural<br />

mechanisation strategies and <strong>in</strong>tegrat<strong>in</strong>g<br />

agricultural mechanisation <strong>in</strong> policy<br />

frameworks are be<strong>in</strong>g ascerta<strong>in</strong>ed. In addition,<br />

successful bus<strong>in</strong>ess models for engag<strong>in</strong>g youth,<br />

such as agricultural mechanisation hubs <strong>in</strong><br />

Kenya and Hello Tractor <strong>in</strong> Nigeria, are be<strong>in</strong>g<br />

documented for replication and scal<strong>in</strong>g up.<br />

To date, four sub-regional studies have<br />

been undertaken.<br />

Another project is support<strong>in</strong>g the<br />

establishment of a cont<strong>in</strong>ental agribus<strong>in</strong>ess<br />

platform, the development of a regulatory<br />

framework for agribus<strong>in</strong>ess partnerships and<br />

build<strong>in</strong>g the capacity of the domestic private<br />

FAO and the AUC are<br />

partner<strong>in</strong>g to promote<br />

susta<strong>in</strong>able agricultural<br />

mechanisation<br />

sector and agribus<strong>in</strong>ess support organisations,<br />

<strong>in</strong>clud<strong>in</strong>g agribus<strong>in</strong>ess <strong>in</strong>cubators, target<strong>in</strong>g<br />

ma<strong>in</strong>ly youth and women. In collaboration with<br />

the <strong>Africa</strong>n Agribus<strong>in</strong>ess Incubation Network<br />

(AAIN), selected agribus<strong>in</strong>ess <strong>in</strong>cubators <strong>in</strong><br />

Ethiopia, Ghana, Kenya, Mali, Nigeria, Rwanda<br />

and Zambia have been assessed with a view of<br />

prepar<strong>in</strong>g a capacity development programme.<br />

In parallel, alternative capacity development<br />

approaches, such as the Junior Farmer Field<br />

and Life Schools (JFFLS), have been applied <strong>in</strong><br />

many countries <strong>in</strong> sub-Saharan <strong>Africa</strong> to<br />

address the needs of rural youth who might<br />

not have the academic background required to<br />

access <strong>in</strong>cubators but are already engaged <strong>in</strong>,<br />

or are <strong>in</strong>terested <strong>in</strong> engag<strong>in</strong>g <strong>in</strong>, the<br />

agricultural sector.<br />

FAO also supported<br />

the AU First Five Year<br />

Priority Programme on<br />

Employment, Poverty<br />

Eradication and Inclusive<br />

Development. The<br />

programme placed<br />

emphasis on enhanc<strong>in</strong>g<br />

regional cooperation for<br />

upscal<strong>in</strong>g successful<br />

approaches for decent<br />

women and youth employment <strong>in</strong> agriculture<br />

and agribus<strong>in</strong>ess, and ensur<strong>in</strong>g policy and<br />

programmatic coherence between social<br />

protection <strong>in</strong>terventions and agricultural<br />

productivity.<br />

Conclusions and look<strong>in</strong>g to the future<br />

The <strong>in</strong>clusive transformation of <strong>Africa</strong>’s<br />

agricultural sector is key to stimulat<strong>in</strong>g<br />

broad-based economic growth, absorb<strong>in</strong>g<br />

millions of young people enter<strong>in</strong>g the labour<br />

market and atta<strong>in</strong><strong>in</strong>g the SDGs. The Malabo<br />

Declaration and the SDGs have served to<br />

galvanise efforts <strong>in</strong> various fronts aimed at<br />

foster<strong>in</strong>g <strong>Africa</strong>’s economic transformation,<br />

especially the development of <strong>in</strong>clusive and<br />

efficient agricultural and food systems and<br />

the promotion of full, productive employment<br />

and decent work for all.<br />

Mechanisation along the entire agrifood<br />

value cha<strong>in</strong> and agribus<strong>in</strong>ess development are<br />

an important vehicle for mak<strong>in</strong>g agriculture<br />

more dynamic, profitable, competitive and<br />

appeal<strong>in</strong>g for youths. Fac<strong>in</strong>g the grow<strong>in</strong>g<br />

challenges of youth employment, urbanisation<br />

and migration, <strong>Africa</strong>n governments will need<br />

to formulate and systematically implement<br />

policies and programmes that make the<br />

necessary <strong>in</strong>vestments to maximise<br />

opportunities for young people, strengthen<br />

their capacities, and facilitate access to<br />

productive resources. FAO stands ready to<br />

support these efforts.•<br />

88 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


AGRICULTURE<br />

AGRICULTURE<br />

IN NUMBERS<br />

5%<br />

economic growth <strong>in</strong><br />

<strong>Africa</strong> <strong>in</strong> 2014 - almost<br />

double the global<br />

average<br />

70%<br />

of employment <strong>in</strong><br />

<strong>Africa</strong> comes from<br />

agriculture<br />

25%<br />

of the <strong>Africa</strong>n GDP is<br />

produced by people<br />

work<strong>in</strong>g <strong>in</strong> agriculture<br />

13<br />

tractors per 100km2<br />

across<br />

the cont<strong>in</strong>ent - much<br />

lower than the global<br />

average of 200<br />

39%<br />

of the <strong>Africa</strong>n<br />

population is<br />

urbansied. This is<br />

expected to raise to<br />

Technological advances have<br />

made the mechanisation of<br />

agriculture possible<br />

Subman/Getty images<br />

50%<br />

by 2035 tak<strong>in</strong>g <strong>in</strong>to<br />

account that <strong>Africa</strong> has<br />

the world’s fastest<br />

urbanisation rate of<br />

$4.5%<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 89


British American Tobacco Nigeria Foundation<br />

Empower<strong>in</strong>g Nigeria for<br />

a susta<strong>in</strong>able future<br />

Our history<br />

S<strong>in</strong>ce our <strong>in</strong>ception <strong>in</strong> 2002 we have<br />

focused on implement<strong>in</strong>g projects that<br />

aim to reduce poverty and enable<br />

communities enjoy an improved standard<br />

of liv<strong>in</strong>g. Our projects <strong>in</strong>clude potable<br />

water supply, environmental protection,<br />

conservation/protection, vocational skills<br />

acquisition and agricultural development.<br />

In 2013, we narrowed our focus to<br />

susta<strong>in</strong>able agriculture, with an emphasis<br />

on support<strong>in</strong>g rural smallholder farmers<br />

to make the transition from subsistence<br />

farm<strong>in</strong>g to commercial agriculture and<br />

earn their livelihood through best<br />

agricultural practices that are more<br />

productive, environmentally-friendly and<br />

susta<strong>in</strong>able <strong>in</strong> the long term.<br />

Who we support<br />

•Agricultural cooperatives<br />

•Agro-enterprise associations<br />

•Community-based farmers’ organizations<br />

How we support them<br />

•Establish<strong>in</strong>g model agricultural<br />

enterprises<br />

•Provid<strong>in</strong>g seed fund<strong>in</strong>g for agricultural<br />

<strong>in</strong>puts and farm<strong>in</strong>g related expenses<br />

•Build<strong>in</strong>g capacity through tra<strong>in</strong><strong>in</strong>g and<br />

mentor<strong>in</strong>g<br />

•Introduc<strong>in</strong>g new agricultural techniques<br />

and technologies<br />

•Assist<strong>in</strong>g with market access and<br />

<strong>in</strong>formation<br />

Our vision<br />

A Nigeria <strong>in</strong> which poverty has been<br />

significantly <strong>reduced</strong> <strong>in</strong> rural communities.<br />

Our mission<br />

To focus on projects that reduce poverty<br />

and make susta<strong>in</strong>able positive impacts on<br />

our communities.<br />

Our programme strategy<br />

Susta<strong>in</strong>able agriculture <strong>in</strong> rural communities.<br />

In our first ten years we established over<br />

150 projects <strong>in</strong> communities across<br />

Nigeria:<br />

BREAKDOWN BY GEO POLITICAL ZONE<br />

South West 55<br />

South East 15<br />

South South 11<br />

North West 23<br />

North East 12<br />

North Central 40<br />

FCT 1<br />

TOTAL 157<br />

BREAKDOWN BY PROJECT<br />

Agricultural development 69<br />

Water supply 64<br />

Environmental protection 13<br />

Vocational skills development 11<br />

TOTAL 157


British American Tobacco Nigeria Foundation<br />

Established BATNF<br />

model maize farm at<br />

Bizara Community,<br />

Kaduna State.<br />

Beneficiaries of the BATNF cassava process<strong>in</strong>g cottage Industry at<br />

Okolemo Community, Ogun State.<br />

Present day: Model enterprise farms<br />

We have supported the establishment of 16 model enterprise<br />

farms that are designed to be f<strong>in</strong>ancially viable and susta<strong>in</strong>able.<br />

The model farms provide each smallholder farmer with one<br />

hectare of land on which to ga<strong>in</strong> practical experience <strong>in</strong> large<br />

scale farm<strong>in</strong>g and value addition.<br />

FACTS AND FIGURES<br />

of model farms we<br />

have established s<strong>in</strong>ce 2013.<br />

16Number<br />

of<br />

smallholder<br />

500+Number<br />

farmers across<br />

the country who have directly<br />

benefitted from our model farms<br />

projects.<br />

28,000+<br />

Number of farmers who have<br />

benefitted, when <strong>in</strong>direct beneficiaries<br />

are <strong>in</strong>cluded. Our smallholder farmers<br />

are tra<strong>in</strong>ed to share commercial farm<strong>in</strong>g<br />

skills they acquire with other farmers <strong>in</strong><br />

their communities.<br />

35<br />

Number of water projects<br />

that support agricultural<br />

projects such as agro process<strong>in</strong>g.<br />

Promot<strong>in</strong>g agricultural enterprise<br />

Through our enterprise development<br />

strategy, we encourage a bus<strong>in</strong>ess m<strong>in</strong>dset<br />

<strong>in</strong> subsistence farmers and support them to<br />

run their farms as a commercial enterprise.<br />

We have established model enterprise<br />

farms cultivat<strong>in</strong>g cassava, maize, rice and<br />

vegetables; and have also funded water<br />

projects to support farm<strong>in</strong>g activities and<br />

provide potable water for the communities.<br />

How our enterprise development<br />

strategy works:<br />

•We fund the establishment of<br />

model enterprise farms to transfer<br />

technical skills to smallholder<br />

farmers<br />

•We partner with third-party<br />

organisations with the capacity to<br />

provide technical assistance to<br />

farm<strong>in</strong>g communities<br />

•We work with agricultural<br />

cooperatives or, where none exist,<br />

organise the smallholder farmers<br />

<strong>in</strong>to groups to work on the model<br />

farms<br />

•The farmers are <strong>in</strong>troduced to<br />

the concept of agricultural value<br />

cha<strong>in</strong>s and the various stages<br />

required to get their produce from<br />

the farm to the consumer<br />

•We provide seed fund<strong>in</strong>g to the<br />

cooperatives, which the<br />

co-operative members can access<br />

as loans to cover the cost of<br />

<strong>in</strong>puts, land preparation and<br />

technical assistance<br />

•Each farmer cultivates at least<br />

one hectare of land as part of the<br />

shift <strong>in</strong> m<strong>in</strong>dset from subsistence<br />

farm<strong>in</strong>g to commercial farm<strong>in</strong>g<br />

•The third party organisations we<br />

work with support the<br />

cooperatives with technical<br />

assistance market access and l<strong>in</strong>ks<br />

for distribution


AGRICULTURE<br />

One of the most important ga<strong>in</strong>s was the<br />

<strong>in</strong>creased use of emerg<strong>in</strong>g technologies<br />

beyond the traditional use of mobile<br />

phones <strong>in</strong> agriculture, <strong>in</strong>clud<strong>in</strong>g precision<br />

agriculture, sensors, satellites and drones.<br />

For example, FieldLook is us<strong>in</strong>g<br />

satellite images <strong>in</strong> the Gezira irrigation scheme <strong>in</strong> Sudan<br />

to provide <strong>in</strong>formation about crop growth, humidity, and<br />

nutrient needs of plants. This is then conveyed to farmers<br />

us<strong>in</strong>g mobile phones.<br />

In Nigeria drones are be<strong>in</strong>g used to map the potential<br />

for expand<strong>in</strong>g rice cultivation. The UK-based GrowMoreX<br />

Consultancy Company, for example, operates drone-based<br />

farm<strong>in</strong>g services. It conducted a survey of 3,000 hectares<br />

of land suitable for irrigated rice farm<strong>in</strong>g <strong>in</strong> New Bussa,<br />

Niger State. The area is 700km away from the capital<br />

Abuja. It has limited access to roads, electricity, clean<br />

water and other amenities.<br />

Innovation ga<strong>in</strong>s <strong>in</strong> 2016 are just one aspect that<br />

was captured <strong>in</strong> a new study released by the Alliance<br />

for Green Revolution <strong>in</strong> <strong>Africa</strong> (AGRA) this year. The<br />

2016 <strong>Africa</strong> Agriculture Status Report also noted that<br />

<strong>Africa</strong>n agriculture is f<strong>in</strong>ally tak<strong>in</strong>g root, show<strong>in</strong>g how<br />

long-term policy commitments and fund<strong>in</strong>g were key<br />

to the sector’s growth.<br />

The ga<strong>in</strong>s reported <strong>in</strong> 2016 went hand <strong>in</strong> hand<br />

with overall growth <strong>in</strong> <strong>Africa</strong> over the last two decades.<br />

Accord<strong>in</strong>g to the AGRA report, “GDP per capita <strong>in</strong>creased<br />

<strong>in</strong> <strong>Africa</strong> from an annual average of $987 <strong>in</strong> 1995-2003,<br />

to $1,154 <strong>in</strong> 2003-2008, and even higher to $1,289<br />

on 2008-2014.”<br />

Many sectors such as communication, transportation,<br />

wholesale and construction contributed to the growth.<br />

But more remarkably, agricultural value addition grew by<br />

“5.2% <strong>in</strong> 2000-2014 compared to less than 3% (<strong>in</strong>) previous<br />

decades”. Manufactur<strong>in</strong>g’s share of total value addition<br />

grew, while agriculture’s did not.<br />

These trends are <strong>in</strong> l<strong>in</strong>e with historical patterns <strong>in</strong> Asia<br />

and other regions where productivity <strong>in</strong> agriculture was a<br />

key driver of long-term economic transformation. This<br />

shows that agriculture is more than just produc<strong>in</strong>g food.<br />

It is a driver for overall economic growth.<br />

There have been some clear “w<strong>in</strong>s” worth highlight<strong>in</strong>g<br />

from the past year.<br />

Free trade area<br />

2016 was a critical year <strong>in</strong> <strong>Africa</strong>’s negotiations to create a<br />

Cont<strong>in</strong>ental Free Trade Area. This is scheduled to be<br />

f<strong>in</strong>alised <strong>in</strong> 2017. The free trade area is expected to<br />

significantly expand <strong>Africa</strong>’s trade <strong>in</strong> agricultural<br />

products by build<strong>in</strong>g on current growth <strong>in</strong> the sector.<br />

The talks are build<strong>in</strong>g on the Tripartite Free Trade<br />

Area. This is a proposed <strong>Africa</strong>n free trade agreement<br />

between the Common Market for Eastern and Southern<br />

<strong>Africa</strong> (COMESA), Southern <strong>Africa</strong>n Development<br />

Community (SADC) and East <strong>Africa</strong>n Community (EAC).<br />

It has created a market of more than 620 million people<br />

<strong>in</strong> 26 countries valued at $1.5 trillion.<br />

The Cont<strong>in</strong>ental Free Trade Area will cover more than<br />

a billion people <strong>in</strong> 54 countries with a comb<strong>in</strong>ed GDP of<br />

Last year was a big one for agriculture<br />

<strong>in</strong> <strong>Africa</strong> with some notable “w<strong>in</strong>s”<br />

across the cont<strong>in</strong>ent, writes<br />

Professor Calestous Juma<br />

Important<br />

w<strong>in</strong>s were<br />

notched up<br />

for <strong>Africa</strong>n<br />

agriculture<br />

<strong>in</strong> 2016<br />

over $3.5 trillion. It is also expected to create<br />

opportunities for trade <strong>in</strong> agricultural mach<strong>in</strong>ery and<br />

associated services.<br />

Overcom<strong>in</strong>g ecological hurdles<br />

In many parts of <strong>Africa</strong> agriculture has been pursued<br />

at the expense of the environment. This has largely been<br />

due to the lack of tra<strong>in</strong><strong>in</strong>g <strong>in</strong> new methods that take the<br />

environment <strong>in</strong>to consideration. Such skills would reduce<br />

agriculture’s ecological footpr<strong>in</strong>t and make it more<br />

resilient to climate change.<br />

An example of promot<strong>in</strong>g ecological food production<br />

is an effort by Somalia to rebuild fisheries after decades<br />

of conflict. The <strong>in</strong>itiative, supported by Norway and the<br />

FAO, <strong>in</strong>cludes new methods of dry<strong>in</strong>g and stor<strong>in</strong>g fish,<br />

which would reduce post-harvest losses.<br />

To beg<strong>in</strong> to address this, a programme was launched <strong>in</strong><br />

which more than 200 young men and women will receive<br />

tra<strong>in</strong><strong>in</strong>g and mentor<strong>in</strong>g support <strong>in</strong> the handl<strong>in</strong>g and<br />

process<strong>in</strong>g of fish and fish products.<br />

“Given the importance of fisheries and aquaculture <strong>in</strong><br />

food security <strong>in</strong> <strong>Africa</strong>, other countries…can draw on the<br />

experiences of Somalia to develop national sectorial<br />

development plans and build partnerships to improve the<br />

susta<strong>in</strong>able <strong>in</strong>tensification of their fisheries sector,” a<br />

report from the Food and Agriculture Organisation notes.<br />

92 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


AGRICULTURE<br />

JEKESAI NJIKIZANA/AFP/Getty Images<br />

A drone used to scout a plot of a heat-tolerant<br />

hybrid maize grow<strong>in</strong>g at the Chiredzi<br />

Research Station Zimbabwe<br />

Infrastructural w<strong>in</strong>s<br />

The AGRA report also highlighted the importance<br />

of <strong>in</strong>vestment <strong>in</strong> rural <strong>in</strong>frastructure – particularly<br />

transportation, energy, telecommunications and<br />

irrigation. It says a “10% decrease <strong>in</strong> rural transport<br />

cost can generate a 25% <strong>in</strong>crease <strong>in</strong> the quantity of food<br />

traded.” This year <strong>in</strong> Kenya’s Rift Valley, rural roads were<br />

revamped. This <strong>reduced</strong> the cost of transport<strong>in</strong>g food.<br />

Transportation is only one aspect of <strong>in</strong>frastructure.<br />

Reliable energy is also key for the creation and growth<br />

of agro-<strong>in</strong>dustries <strong>in</strong> rural and urban areas. More<br />

importantly, the use of renewable energy can help<br />

<strong>Africa</strong>n countries generate energy more susta<strong>in</strong>ably.<br />

A good example is the launch of East <strong>Africa</strong>’s largest solar<br />

plant <strong>in</strong> Soroti, Uganda.<br />

Similarly, irrigation is essential for crop<br />

production. Only about 4% per of <strong>Africa</strong>n agriculture<br />

is irrigated, whereas the share is 45% <strong>in</strong> Asia and 18%<br />

for global agriculture.<br />

<strong>Africa</strong>n countries are <strong>in</strong>creas<strong>in</strong>gly us<strong>in</strong>g solar power<br />

for irrigation. In 2016, for example, Rwanda launched a $13<br />

million solar-powered irrigation scheme <strong>in</strong> collaboration<br />

with the Japan International Cooperation Agency. Another<br />

key highlight of the 2016 AGRA report is the importance of<br />

<strong>in</strong>clud<strong>in</strong>g nutrition <strong>in</strong> overall agricultural strategies.<br />

Nourish<strong>in</strong>g people is just as important as feed<strong>in</strong>g them. In<br />

2016 Ghana launched a new project aimed at improv<strong>in</strong>g<br />

maternal and child nutrition by encourag<strong>in</strong>g the<br />

consumption of milk. In addition to improv<strong>in</strong>g nutrition,<br />

the project seeks to support <strong>in</strong>come generation along the<br />

dairy value cha<strong>in</strong>.<br />

Complex agricultural economies<br />

Leaders need to upgrade their capacity to govern<br />

<strong>in</strong>creas<strong>in</strong>gly complex agricultural economies if they’re<br />

to susta<strong>in</strong> the ga<strong>in</strong>s seen and reported <strong>in</strong> 2016. Modern<br />

agriculture <strong>in</strong>volves decisions on topics such as the<br />

impact of climate change, nutrition, improved seed and<br />

agricultural <strong>in</strong>puts, emerg<strong>in</strong>g technologies, <strong>in</strong>frastructure,<br />

research and extension and f<strong>in</strong>anc<strong>in</strong>g.<br />

Countries around the world have responded to the<br />

need for up-to-date <strong>in</strong>formation by creat<strong>in</strong>g offices of<br />

science and technology advice to complement the work of<br />

other presidential advisers. <strong>Africa</strong>n presidents and prime<br />

m<strong>in</strong>isters need to have similar knowledge support offices.<br />

Otherwise they risk mak<strong>in</strong>g decisions that are not<br />

supported by the best possible available advice. •<br />

Calestous Juma, Professor at Harvard Kennedy School<br />

@calestous<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 93


Philip Morris Perspective<br />

Elim<strong>in</strong>at<strong>in</strong>g food <strong>in</strong>security<br />

<strong>in</strong> tobacco grow<strong>in</strong>g countries<br />

Assur<strong>in</strong>g farm<strong>in</strong>g communities’ food security alongside<br />

cash crop production is of vital importance <strong>in</strong> <strong>Africa</strong><br />

Among the hardest hit countries is<br />

Malawi, where about 40% of the<br />

population faces food <strong>in</strong>security follow<strong>in</strong>g<br />

El Niño-<strong>in</strong>duced drought, which has left<br />

the primarily agricultural country with<br />

failed harvests, lead<strong>in</strong>g to the second year<br />

of deficit <strong>in</strong> maize production.<br />

Economic conditions rema<strong>in</strong><br />

touch-and-go with high <strong>in</strong>flation, high food<br />

prices and limited opportunity to earn an<br />

<strong>in</strong>come. Accord<strong>in</strong>g to the World Food<br />

Program, some 6.7 million people are now<br />

need urgent food or cash support to tide<br />

them over to the next harvest, expected <strong>in</strong><br />

March 2017.<br />

These challeng<strong>in</strong>g conditions make it<br />

imperative for a company like Philip Morris,<br />

which sources a large quantity of its<br />

tobacco <strong>in</strong> <strong>Africa</strong> to provide assistance for<br />

other crops grown on tobacco farms. This<br />

helps farmers to become self-sufficient <strong>in</strong><br />

food production for their family and those<br />

work<strong>in</strong>g on their farms, but also provide an<br />

additional source of <strong>in</strong>come as surplus can<br />

be sold.<br />

PMI’s suppliers have worked hard to<br />

ensure a system where farmers grow a<br />

m<strong>in</strong>imum of 2kgs of food for every 1kg of<br />

tobacco they produce. As a result, more<br />

than 83,000 tons of maize have been<br />

produced by 26,000 farmers, supported by<br />

PMI’s suppliers <strong>in</strong> Malawi.<br />

In 2015, approximately 180,000 tobacco<br />

farmers <strong>in</strong> Mozambique, Malawi and<br />

Tanzania grew food crops for household<br />

consumption, and more than 43,000 grew<br />

other non-tobacco cash crops, rang<strong>in</strong>g<br />

from maize to nuts, vegetables and gra<strong>in</strong>s.<br />

Worldwide, nearly 320,000 (71%)<br />

tobacco farmers <strong>in</strong> PMI’s and/or our leaf<br />

suppliers’ supply cha<strong>in</strong> grew food for<br />

household consumption and approximately<br />

160,000 (35.6%) grew other non-tobacco<br />

cash crops.<br />

We purchase <strong>in</strong> excess of 400,000<br />

metric tons of packed tobacco leaf each<br />

year from suppliers and farmers <strong>in</strong> more<br />

than 30 countries. We process that leaf<br />

<strong>in</strong>to tobacco products <strong>in</strong> 53 manufactur<strong>in</strong>g<br />

facilities employ<strong>in</strong>g more than 50,000<br />

people around the world. We share<br />

common <strong>in</strong>terests with the communities<br />

where our tobacco leaf is farmed and<br />

processed. We work to ensure the<br />

efficiency and low environmental impact of<br />

our operations, while provid<strong>in</strong>g safe,<br />

secure and susta<strong>in</strong>able livelihoods for our<br />

supplier farmers and their communities<br />

Help<strong>in</strong>g farmers to<br />

become self-sufficient<br />

<strong>in</strong> food production<br />

for their family and<br />

those work<strong>in</strong>g on their<br />

farms, but also provide<br />

additional <strong>in</strong>come<br />

through our Good Agricultural Practices<br />

program (GAP) and Our Contributions<br />

program. We are committed to promot<strong>in</strong>g<br />

good agricultural practices that support<br />

the susta<strong>in</strong>ability of crops and help the<br />

communities and environment where our<br />

tobacco is grown to thrive.<br />

For more <strong>in</strong>formation, go to http://www.<br />

pmi.com/eng/susta<strong>in</strong>ability/Pages/<br />

susta<strong>in</strong>ability.aspx<br />

There are 180,000 tobacco farmers <strong>in</strong><br />

Mozambique, Malawi and Tanzania


FOREWORD<br />

HE Dr Mustapha<br />

Sidiki Kaloko<br />

Commissioner for Social Affairs<br />

<strong>Africa</strong>n Union Commission<br />

The policy framework for <strong>Africa</strong><br />

Health Strategy (AHS) 2016–2030<br />

is premised on a number of<br />

cont<strong>in</strong>ental and global health<br />

policy commitments and<br />

<strong>in</strong>struments. Chief among these<br />

are Agenda 2063: The <strong>Africa</strong> We Want and 2030<br />

Agenda for Susta<strong>in</strong>able Development. Other<br />

policy frameworks <strong>in</strong>clude declarations aimed<br />

at combatt<strong>in</strong>g AIDS, tuberculosis and malaria <strong>in</strong><br />

<strong>Africa</strong> by 2030.<br />

Guid<strong>in</strong>g member states<br />

AHS 2016–2030 outl<strong>in</strong>es the key policy<br />

frameworks, accountability mechanisms and<br />

roles and responsibilities <strong>in</strong> relation to its<br />

implementation. Given its nature – as a<br />

cont<strong>in</strong>ental <strong>in</strong>strument aimed at guid<strong>in</strong>g<br />

member states – bear<strong>in</strong>g <strong>in</strong> m<strong>in</strong>d the ma<strong>in</strong><br />

responsibility for its implementation.<br />

Accord<strong>in</strong>gly, the lead role for coord<strong>in</strong>at<strong>in</strong>g and<br />

oversee<strong>in</strong>g the AHS 2016–2030 rests with the<br />

member states, with facilitation, coord<strong>in</strong>ation<br />

and support by the AU organs, RECs, UN<br />

agencies and other partners.<br />

Its predecessor, AHS 2007–2015, had<br />

provided strategic direction to <strong>Africa</strong>’s efforts<br />

<strong>in</strong> creat<strong>in</strong>g better health for all and had<br />

recognised that <strong>Africa</strong> had previously<br />

established health goals <strong>in</strong> addition to the<br />

Millennium Development Goals (MDGs) to<br />

which it has committed. It explored challenges<br />

and opportunities related to efforts that can<br />

decrease the cont<strong>in</strong>ent’s burden of disease,<br />

strengthen its health systems and enhance<br />

human capital by improv<strong>in</strong>g health. The AHS<br />

2016–2030 is similar to some extent <strong>in</strong> that it<br />

also seeks to provide strategic direction to<br />

<strong>Africa</strong>’s efforts <strong>in</strong> creat<strong>in</strong>g better perform<strong>in</strong>g<br />

health sectors, recognises exist<strong>in</strong>g cont<strong>in</strong>ental<br />

commitments and addresses key challenges to<br />

reduc<strong>in</strong>g the cont<strong>in</strong>ent’s burden<br />

of disease, while also draw<strong>in</strong>g<br />

on lessons learned and exist<strong>in</strong>g<br />

opportunities. Other policy<br />

frameworks <strong>in</strong>clude the Sexual<br />

and Reproductive Health and<br />

Rights, Cont<strong>in</strong>ental Policy<br />

Frame work and its extended<br />

Maputo Plan of Action<br />

(2016–2030), the Pharmaceutical<br />

Manufactur<strong>in</strong>g Plan for <strong>Africa</strong> (PMPA)<br />

and the <strong>Africa</strong> Regional Nutrition<br />

Strategy (ARNS) 2015–2025.<br />

<strong>Africa</strong> rema<strong>in</strong>s the cont<strong>in</strong>ent most heavily<br />

affected by malaria, with particularly severe<br />

effects on maternal and child health and<br />

morbidity. While malaria was eradicated from<br />

most places on the globe, it rema<strong>in</strong>s a major<br />

killer <strong>in</strong> <strong>Africa</strong>. With the science and medical<br />

advancements available to elim<strong>in</strong>ate this<br />

disease, this is unacceptable. Children under<br />

five years and pregnant women are the most<br />

vulnerable populations who bear an outsized<br />

burden of this disease’s deadly toll. To address<br />

malaria there is need to ensure that sufficient<br />

resources are guaranteed to mount an effective<br />

response. There were exponential <strong>in</strong>creases <strong>in</strong><br />

fund<strong>in</strong>g and implementation for malaria control<br />

programmes over the past decade, but there is<br />

still much more that needs to be done.<br />

Another policy framework<br />

Addis Ababa Declaration on Population and<br />

Development beyond 2014 puts emphasis<br />

on population and development has urged the<br />

<strong>Africa</strong>n Union to propose ‘Harness<strong>in</strong>g<br />

Demographic Dividend Through <strong>Invest</strong>ments <strong>in</strong><br />

the Youth’, as the AU’s theme for 2017.<br />

To that end, a road map on Harness<strong>in</strong>g the<br />

Demographic Dividend through <strong>Invest</strong>ments <strong>in</strong><br />

Youth will be launched at the January Summit. •<br />

With the<br />

science and<br />

medical<br />

advancements<br />

available to<br />

elim<strong>in</strong>ate this<br />

disease, this is<br />

unacceptable<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 95


HEALTH & EDUCATION<br />

End<strong>in</strong>g the<br />

epidemic<br />

HIV/AIDS, tuberculosis (TB) and malaria have long plagued<br />

the <strong>Africa</strong>n cont<strong>in</strong>ent, despite all three diseases be<strong>in</strong>g<br />

preventable and treatable, writes Ruth Henwood Mathys.<br />

Health & Education<br />

This triple burden of disease<br />

typically affects people <strong>in</strong> their<br />

most productive years,<br />

impact<strong>in</strong>g on their ability to<br />

generate an <strong>in</strong>come and<br />

contribute to country’s<br />

economic growth. The socioeconomic impact<br />

is felt at both the household and country level,<br />

depriv<strong>in</strong>g households of an <strong>in</strong>come and<br />

stunt<strong>in</strong>g gross domestic product (GDP)<br />

growth. Accord<strong>in</strong>g to the Population Reference<br />

Bureau, Malaria alone is said to slow economic<br />

growth by up to 1.3% <strong>in</strong> <strong>Africa</strong>. In recognition<br />

of both the cost at an <strong>in</strong>dividual level, as well<br />

as to that of the cont<strong>in</strong>ent, <strong>Africa</strong>n Union (AU)<br />

member states signed the Abuja Declaration to<br />

end HIV and TB and elim<strong>in</strong>ate Malaria <strong>in</strong> <strong>Africa</strong><br />

by 2030. The last 15 years have seen <strong>in</strong>-roads<br />

be<strong>in</strong>g made towards this ambitious target. The<br />

percentage of new malaria cases <strong>in</strong> <strong>Africa</strong> fell<br />

by 42% between 2000 and 2015, while<br />

accord<strong>in</strong>g to the 2015 WHO World Malaria<br />

Report, mortality rates decl<strong>in</strong>ed by 66% dur<strong>in</strong>g<br />

this same period. In addition to this, the<br />

number of new TB cases dropped from 350 per<br />

100,000 population per year to 270 between<br />

2000 and 2015 accord<strong>in</strong>g to the 2016 WHO<br />

Global TB report. The greatest ga<strong>in</strong>s <strong>in</strong> global<br />

antiretroviral therapy (ART) coverage were<br />

seen <strong>in</strong> eastern and southern <strong>Africa</strong>, where<br />

coverage <strong>in</strong>creased from 24% <strong>in</strong> 2010 to 54% <strong>in</strong><br />

2015, reach<strong>in</strong>g a total of 10.3 million people.<br />

Accord<strong>in</strong>g to UNAIDS, Botswana, Eritrea,<br />

Kenya, Malawi, Mozambique, Rwanda, South<br />

<strong>Africa</strong>, Swaziland, Uganda, the United Republic<br />

of Tanzania, Zambia and Zimbabwe all<br />

<strong>in</strong>creased treatment coverage by more than<br />

25% between 2010 and 2015.<br />

Far reach<strong>in</strong>g consequences<br />

Despite these commendable improvements, the<br />

effects of HIV/AIDS, tuberculosis and malaria<br />

<strong>in</strong> <strong>Africa</strong> cont<strong>in</strong>ue to have far-reach<strong>in</strong>g health,<br />

social and economic consequences. The<br />

<strong>in</strong>fectious nature of these diseases means that<br />

any sense of complacency could lead to a surge<br />

<strong>in</strong> new <strong>in</strong>fections, a consequence the cont<strong>in</strong>ent<br />

cannot afford. In a context of decl<strong>in</strong><strong>in</strong>g<br />

donor-fund<strong>in</strong>g <strong>Africa</strong>n governments will need<br />

to <strong>in</strong>vest more <strong>in</strong> public health, and<br />

strategically so to fill the gap. Most recently, <strong>in</strong><br />

a renewed pledge to susta<strong>in</strong> and build upon<br />

the ga<strong>in</strong>s made <strong>in</strong> elim<strong>in</strong>at<strong>in</strong>g AIDS, TB<br />

and malaria,<br />

AU member states signed the<br />

Catalytic Framework to End<br />

AIDS and TB and Elim<strong>in</strong>ate<br />

Malaria by 2030. The<br />

Catalytic Framework is<br />

a bluepr<strong>in</strong>t to the<br />

Abuja<br />

Declaration,<br />

and offers a<br />

bus<strong>in</strong>ess model<br />

for governments to <strong>in</strong>vest for impact <strong>in</strong> three<br />

strategic <strong>in</strong>vestment areas:<br />

•Health systems strengthen<strong>in</strong>g<br />

•Generation and use of evidence for policy and<br />

programme <strong>in</strong>terventions<br />

•Advocacy and capacity build<strong>in</strong>g (<strong>Africa</strong>n<br />

Union Foundation, 2016).<br />

Six core functions<br />

Any <strong>in</strong>vestments <strong>in</strong> strengthen<strong>in</strong>g the health<br />

system should be channelled <strong>in</strong>to the six core<br />

functions of health systems: Service delivery,<br />

96 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


HEALTH & EDUCATION<br />

iStock/ AkilRolle<br />

ANC has been endorsed<br />

by WHO as the most<br />

effective way to<br />

tackle HIV, TB and<br />

malaria <strong>in</strong> pregnant<br />

women and <strong>in</strong>fants<br />

Health workforce, Information, Medical<br />

products, vacc<strong>in</strong>es and technologies, F<strong>in</strong>anc<strong>in</strong>g<br />

and Leadership and governance.<br />

Patient monitor<strong>in</strong>g systems are an <strong>in</strong>tegral<br />

part of quality HIV care as they track key<br />

cl<strong>in</strong>ical outcomes and retention<br />

<strong>in</strong> HIV care of patients. This<br />

<strong>in</strong>formation is essential to<br />

monitor HIV treatment<br />

programme outcomes and to<br />

track progress towards<br />

achiev<strong>in</strong>g public health goals<br />

such as the elim<strong>in</strong>ation of<br />

malaria by 2030. While the<br />

establishment and ma<strong>in</strong>tenance<br />

of patient monitor<strong>in</strong>g systems<br />

require considerable <strong>in</strong>vestment<br />

<strong>in</strong> <strong>in</strong>frastructure and human<br />

resources, they have the<br />

potential to maximise the health<br />

benefits of HIV services at a population level.<br />

Further, patient monitor<strong>in</strong>g systems offer a<br />

valuable source of <strong>in</strong>formation, which can be<br />

used to develop evidence-based public health<br />

policies and programmes. <strong>Invest</strong>ment <strong>in</strong> this<br />

sector allows governments to strengthen their<br />

health system while generat<strong>in</strong>g <strong>in</strong>formation to<br />

<strong>in</strong>form evidence-based health programmes.<br />

10.3mn<br />

people across the cont<strong>in</strong>ent<br />

received antiretroviral<br />

treatment <strong>in</strong> 2015<br />

13%<br />

slow<strong>in</strong>g of economic growth<br />

<strong>in</strong> <strong>Africa</strong> ow<strong>in</strong>g to malaria<br />

Integration of antenatal care<br />

A significant number can be reached <strong>in</strong><br />

antenatal care, which sees 70% coverage <strong>in</strong><br />

sub-Saharan <strong>Africa</strong>. The <strong>in</strong>tegration of<br />

antenatal care (ANC) has been endorsed by the<br />

World Health Organization as the most<br />

effective way to tackle HIV, TB and malaria <strong>in</strong><br />

pregnant women and <strong>in</strong>fants. There is a<br />

reduction <strong>in</strong> child mortality of 32% when<br />

<strong>in</strong>termittent preventive therapy <strong>in</strong> pregnancy<br />

(IPTp) was <strong>in</strong>tegrated <strong>in</strong>to antenatal care and<br />

18% with the <strong>in</strong>tegration of bed nets <strong>in</strong>to<br />

antennal care. The <strong>in</strong>clusion of TB screen<strong>in</strong>g<br />

and diagnosis <strong>in</strong>to antenatal care could lead to<br />

the detection and treatment of an extra 167,200<br />

TB cases globally and reduce untreated TB<br />

deaths <strong>in</strong> pregnancy by 40%. Lessons from past<br />

public health <strong>in</strong>itiatives <strong>in</strong>dicate that weak<br />

health systems, <strong>in</strong>sufficient human resources<br />

and poor laboratory <strong>in</strong>frastructure act as<br />

barriers to service provision.<br />

The <strong>in</strong>tegrated care approach relies on<br />

human resources, universal access to drugs,<br />

health <strong>in</strong>surance, diagnostics, and simplified<br />

laboratory tools, <strong>in</strong>creased and susta<strong>in</strong>ed<br />

<strong>in</strong>vestment <strong>in</strong> these areas are imperative if<br />

<strong>Africa</strong> is to achieve the 2030 target. •<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 97


A PEACEFUL AND SECURE AFRICA<br />

US Army <strong>Africa</strong><br />

CASE STUDY:<br />

BOKO HARAM<br />

Target<strong>in</strong>g Islamic<br />

extremist group Boko<br />

Haram, the Mult<strong>in</strong>ational<br />

Jo<strong>in</strong>t Task Force (MNJTF)<br />

– an AU-backed <strong>in</strong>itiative –<br />

comb<strong>in</strong>es military tactics<br />

with <strong>in</strong>itiatives target<strong>in</strong>g<br />

terrorism’s foundations.<br />

The force is currently<br />

composed of troops from<br />

Nigeria, Ben<strong>in</strong>, Niger, Chad<br />

and Cameroon, each based<br />

<strong>in</strong> their respective<br />

territories, but coord<strong>in</strong>ated<br />

from N’Djamena, Chad.<br />

The mission undertakes<br />

coord<strong>in</strong>ated patrols and<br />

border surveillance, and<br />

is supported by central<br />

<strong>in</strong>telligence collection and<br />

<strong>in</strong>formation shar<strong>in</strong>g. Its<br />

aim is to secure the<br />

environment for civilians<br />

while ensur<strong>in</strong>g<br />

humanitarian assistance<br />

reaches the affected areas.<br />

In January 2015 the PSC<br />

asked the UN to extend<br />

similar support to the<br />

MNJTF as it has to<br />

AMISOM. The UN Security<br />

Council created a trust<br />

fund for the group and<br />

grant<strong>in</strong>g official<br />

authorisation for its<br />

cross-border work. S<strong>in</strong>ce<br />

this decision, troop<br />

numbers have <strong>in</strong>creased to<br />

10,000 and <strong>in</strong> 2016 the<br />

MNJTF received additional<br />

resources purchased by<br />

UK-donated funds. Military<br />

efforts are complemented<br />

by activities like restrict<strong>in</strong>g<br />

the proliferation of small<br />

weapons, f<strong>in</strong>d<strong>in</strong>g abducted<br />

persons and re<strong>in</strong>tegrat<strong>in</strong>g<br />

former militants.<br />

Rachel Cumm<strong>in</strong>gs looks at the <strong>Africa</strong>n Union’s role <strong>in</strong> fight<strong>in</strong>g<br />

terrorism, how to tackle extremism and exam<strong>in</strong>es potential<br />

threats to efforts to protect the cont<strong>in</strong>ent’s citizens<br />

AU counter<br />

terrorism<br />

<strong>in</strong>itiatives<br />

Between 1970 and 2013 almost<br />

10,000 terrorist atrocities<br />

took place <strong>in</strong> sub-Saharan<br />

<strong>Africa</strong> alone. From the Lord’s<br />

Resistance Army <strong>in</strong> Central<br />

<strong>Africa</strong> to Boko Haram <strong>in</strong> the<br />

West and radical religious movements<br />

across the North, no region has rema<strong>in</strong>ed<br />

untouched by this wave of violence.<br />

Such terrorists have little respect for<br />

borders, mean<strong>in</strong>g counter measures must<br />

also be transcont<strong>in</strong>ental. In recent years,<br />

the <strong>Africa</strong>n Union has become the natural<br />

home for <strong>in</strong>terstate anti-terrorist efforts.<br />

The organisation first took action <strong>in</strong><br />

response to devastat<strong>in</strong>g attacks on the<br />

Kenyan and Tanzanian US embassies<br />

<strong>in</strong> 1998. A stronger global emphasis<br />

on counter<strong>in</strong>g extreme violence and<br />

radicalisation post-September 11<br />

Attacks renewed these efforts and<br />

they cont<strong>in</strong>ue today.<br />

The <strong>Africa</strong>n Union now coord<strong>in</strong>ates<br />

work to reduce the threat of terrorist<br />

violence right across the cont<strong>in</strong>ent.<br />

The <strong>Africa</strong>n Union’s<br />

counter-terrorism framework<br />

The 1999 OAU Convention on the<br />

Prevention and Combat<strong>in</strong>g of Terrorism<br />

rema<strong>in</strong>s a sem<strong>in</strong>al document <strong>in</strong><br />

cross-cont<strong>in</strong>ental efforts to collectively<br />

respond to terror.<br />

Enter<strong>in</strong>g <strong>in</strong>to force <strong>in</strong> 2002, to date, 41<br />

member states have ratified this<br />

<strong>in</strong>strument, which outl<strong>in</strong>es the legislative,<br />

judicial and military frameworks required<br />

to root out those suspected of plott<strong>in</strong>g or<br />

perpetrat<strong>in</strong>g violence aga<strong>in</strong>st civilians.<br />

The Convention describes state<br />

cooperation on key anti-terror issues.<br />

Crucially, it also provides a model law that<br />

can be <strong>in</strong>corporated <strong>in</strong>to national<br />

legislation to ensure both robust legal<br />

protections with<strong>in</strong> each country and<br />

sufficient harmonisation between states<br />

for effective cross-border work<strong>in</strong>g.<br />

The 2004 Protocol to the Convention<br />

also created two important <strong>in</strong>stitutions:<br />

The <strong>Africa</strong>n Centre for Study and Research<br />

on Terrorism (ACSRT) and the office of<br />

Special Representative for<br />

Counter-Terrorism Cooperation.<br />

The <strong>Africa</strong>n Centre for Study<br />

and Research on Terrorism<br />

ACSRT is an arm of <strong>Africa</strong>n Union’s<br />

counter-terrorism efforts. It aims to better<br />

understand the terrorist threat to<br />

effectively <strong>in</strong>form and evaluate measures<br />

target<strong>in</strong>g<br />

their elim<strong>in</strong>ation.<br />

Staff members at the Centre collate<br />

<strong>in</strong>formation about terrorist groups, acts<br />

and counter-measures to create a central<br />

hub of expertise on the topic. They also<br />

undertake orig<strong>in</strong>al research to better<br />

<strong>in</strong>form future efforts and promote the<br />

academic understand<strong>in</strong>g of terrorist<br />

threats <strong>in</strong> <strong>Africa</strong>.<br />

Us<strong>in</strong>g both collated data and new<br />

research, ACSRT experts provide technical<br />

support to states wish<strong>in</strong>g to strengthen<br />

their own counter terrorism measures.<br />

98 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


A PEACEFUL AND SECURE AFRICA<br />

Pic caption<br />

Ugandan soldiers serv<strong>in</strong>g with the <strong>Africa</strong>n<br />

Union Mission <strong>in</strong> Somalia (AMISOM)<br />

AMISOM/FLIKR/ AU-UN IST PHOTO / STUART PRICE<br />

CASE STUDY: AL-SHABAAB<br />

The threat posed to Somali and East<br />

<strong>Africa</strong>n citizens by al-Shabaab has<br />

become <strong>in</strong>creas<strong>in</strong>gly stark.<br />

The group garnered worldwide<br />

attention <strong>in</strong> 2012 after align<strong>in</strong>g itself<br />

to the global al-Qaeda movement.<br />

AMISOM was established <strong>in</strong> 2007<br />

and is authorised by the UN Security<br />

Council. Experts laud the mission for<br />

its success <strong>in</strong> push<strong>in</strong>g back<br />

al-Shabaab militants, recaptur<strong>in</strong>g<br />

territory claimed by the group and<br />

rega<strong>in</strong><strong>in</strong>g major cities. It is made up<br />

of troops from both surround<strong>in</strong>g and<br />

distant countries, <strong>in</strong>clud<strong>in</strong>g Uganda,<br />

Kenya, Ethiopia, Djibouti, Burundi<br />

and Sierra Leone.<br />

Military activities are<br />

complemented by civilian measures<br />

aimed at deal<strong>in</strong>g with the<br />

consequences of terror and its<br />

underly<strong>in</strong>g causes.<br />

AMISOM also has a maritime<br />

component that ensures the safety<br />

and security of vessels <strong>in</strong><br />

<strong>in</strong>ternational waters and coord<strong>in</strong>ates<br />

collective efforts to secure the coast<br />

l<strong>in</strong>e of Mogadishu.<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 99


A PEACEFUL AND SECURE AFRICA<br />

Special Representative for<br />

Counter-Terrorism Cooperation<br />

The ACSRT is led by the Special Representative<br />

for Counter-Terrorism Cooperation, the AU’s<br />

lead<strong>in</strong>g official for anti-terrorism measures.<br />

This position br<strong>in</strong>gs together the technical<br />

expertise of ACSRT with the political profile<br />

needed to advocate for effective counter terror<br />

reforms. The Special Representative works <strong>in</strong><br />

conjunction with national leads from each<br />

member state to dissem<strong>in</strong>ate best practice,<br />

scrut<strong>in</strong>ise activities and support governments<br />

at risk of terrorist attacks, and collaborates<br />

closely with the AU’s Peace and Security Council<br />

(PSC), the AU Commission and Regional<br />

Economic Communities.<br />

Lieutenant Colonel Larry Gbevlo-Lartey is<br />

the current <strong>in</strong>cumbent, and, as the ex-National<br />

Security Coord<strong>in</strong>ator for Ghana and Director of<br />

Programs at the Centre for Conflict Resolution,<br />

br<strong>in</strong>gs extensive, hands-on counter-terrorism<br />

experience to the role. He has called for more<br />

preventative measures to reduce terrorist<br />

attacks and research on the tools used by<br />

terrorists to <strong>in</strong>doctr<strong>in</strong>ate their members.<br />

Gbevlo-Lartey has also partnered with Kofi<br />

Annan International Peacekeep<strong>in</strong>g Tra<strong>in</strong><strong>in</strong>g<br />

Centre (KAIPTC) to coord<strong>in</strong>ate research<br />

activities and host workshops on the causes of<br />

violent extremism <strong>in</strong> local communities.<br />

AU Peace and Security Council<br />

The Special Representative and ACSRT aim to<br />

lessen the threat of terrorism long-term. Both<br />

work under the auspices of the <strong>Africa</strong>n Union<br />

Commission’s PSC – a stand<strong>in</strong>g organ of the AU.<br />

This body also coord<strong>in</strong>ates direct military<br />

responses to terrorist activity as part of its<br />

wider mandate on <strong>Africa</strong>n conflict and crisis.<br />

The PSC has a long history of tackl<strong>in</strong>g violent<br />

threats across the cont<strong>in</strong>ent and has developed<br />

a comprehensive <strong>Africa</strong>n Peace and Security<br />

Architecture (APSA) to do so. This <strong>in</strong>cludes the<br />

<strong>Africa</strong>n Standby Force (ASF), which can<br />

be mobilised quickly <strong>in</strong> response to<br />

threats and longer-term missions<br />

target<strong>in</strong>g particular regional conflicts.<br />

Such missions <strong>in</strong>clude the <strong>Africa</strong>n<br />

Union-led Regional Cooperation Initiative<br />

for the Elim<strong>in</strong>ation of the Lord’s<br />

Resistance Army (RCI-LRA) and the<br />

long-stand<strong>in</strong>g <strong>Africa</strong>n Union Mission <strong>in</strong><br />

Somalia (AMISOM).<br />

Address<strong>in</strong>g root causes<br />

The future of AU counter-terror efforts is<br />

likely to comb<strong>in</strong>e exist<strong>in</strong>g long-term<br />

preventative measures with strategic use<br />

of military power and a renewed focus on<br />

The Special Representative of the Chairperson of the <strong>Africa</strong>n Union<br />

Commission (SRCC) for Somalia, Ambassador Francisco Caetano Madeira<br />

41<br />

The number of member<br />

states that have ratified<br />

the 1999 OAU Convention<br />

on the Prevention and<br />

Combat<strong>in</strong>g of Terrorism<br />

to date.<br />

Cohesive, <strong>in</strong>ternational efforts<br />

coord<strong>in</strong>ated by the AU are the<br />

only effective way to fight<br />

terrorism <strong>in</strong> <strong>Africa</strong>.<br />

the conditions that enable terrorism to flourish.<br />

Agenda 2063 – the AU’s 50-year vision – will<br />

guide much of the organisation’s future work.<br />

While terrorism is not explicitly addressed <strong>in</strong><br />

the document, it does call for a peaceful and<br />

secure <strong>Africa</strong>, suggest<strong>in</strong>g support for<br />

counter-extremist measures. Do<strong>in</strong>g so will<br />

require a commitment from states to build<br />

anti-terror legislation <strong>in</strong>to national law and<br />

contribute to <strong>in</strong>ternational civilian protection<br />

<strong>in</strong>itiatives. Member nations must also elim<strong>in</strong>ate<br />

the legislative loop holes around illicit f<strong>in</strong>anc<strong>in</strong>g<br />

and arms sales that make it easier for terrorist<br />

groups to function.<br />

The AU’s counter terrorist activities<br />

are much needed as an <strong>in</strong>terface between<br />

national or regional anti-terror approaches<br />

and global ones. It has the potential to<br />

coord<strong>in</strong>ate a comprehensive response to this<br />

threat right across the cont<strong>in</strong>ent while liais<strong>in</strong>g<br />

with other multilateral <strong>in</strong>stitutions, such as the<br />

EU, ASEAN, and UN.<br />

As the former Special Representative for<br />

Counter Terrorism Cooperation, Ambassador<br />

Francisco Madeira, argued: “These threats<br />

present similar characteristics and we suffer<br />

from similar vulnerabilities. Each <strong>in</strong>dividual<br />

state alone will not be able to fight this scourge.”<br />

Cohesive, <strong>in</strong>ternational<br />

efforts coord<strong>in</strong>ated by the<br />

AU are the only effective<br />

way to fight terrorism <strong>in</strong><br />

<strong>Africa</strong>. Eradicat<strong>in</strong>g this<br />

threat is a duty we owe to<br />

citizens right across the<br />

cont<strong>in</strong>ent. Let us lose no<br />

time <strong>in</strong> do<strong>in</strong>g so. •<br />

AMISOM Photo / Ilyas Ahmed<br />

100 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


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World leaders have agreed to keep global<br />

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AFRICA AND THE WORLD<br />

Named as Time magaz<strong>in</strong>e’s Person of the Year 2016,<br />

Witney Schneidman exam<strong>in</strong>es how President Donald<br />

Trump’s US election w<strong>in</strong> will impact <strong>Africa</strong><br />

A view from Wash<strong>in</strong>gton<br />

President<br />

Trump’s<br />

<strong>Africa</strong> Policy<br />

The election of President<br />

Donald Trump raises<br />

immediate questions for US<br />

policy toward <strong>Africa</strong>. For the<br />

last three US adm<strong>in</strong>istrations<br />

– Cl<strong>in</strong>ton, Bush, Obama – there<br />

has been an important measure of cont<strong>in</strong>uity<br />

predicated on an endur<strong>in</strong>g bipartisan<br />

consensus <strong>in</strong> Congress.<br />

This bipartisan consensus led to the<br />

passage <strong>in</strong> 2000 of the <strong>Africa</strong>n Growth and<br />

Opportunity Act (AGOA), and its recent<br />

extension through 2025. Other important<br />

<strong>in</strong>itiatives <strong>in</strong>clude the President’s Emergency<br />

Program for AIDS Relief (PEPFAR), and the<br />

creation of the Millennium Challenge<br />

Corporation, Feed the Future and Power<br />

<strong>Africa</strong>, all of which are supported through<br />

legislation and by the US private sector.<br />

Past adm<strong>in</strong>istrations and <strong>Africa</strong><br />

The reality is that Presidents Cl<strong>in</strong>ton and<br />

Bush had little contact with <strong>Africa</strong> prior to<br />

assum<strong>in</strong>g office. President Obama, who had<br />

more personal experience with the cont<strong>in</strong>ent<br />

than any previous US president, did not<br />

develop a comprehensive <strong>Africa</strong> strategy<br />

until the end of his first term.<br />

The new Trump adm<strong>in</strong>istration believes<br />

that it has a mandate to restore American<br />

jobs that have been lost to foreign trade and<br />

American companies manufactur<strong>in</strong>g<br />

overseas. In the <strong>Africa</strong>n context, this could<br />

lead to a review of AGOA, which provides<br />

tariff-free access for 6,400 goods to enter<br />

the US market. Over the last decade, many<br />

<strong>Africa</strong>n governments have signed Economic<br />

Partnership Agreements that provide<br />

preferential access to EU nations, to the<br />

detriment of US companies and products.<br />

The Trump adm<strong>in</strong>istration could be expected<br />

to pursue strategies to level the play<strong>in</strong>g field<br />

when it comes to the US commercial<br />

engagement <strong>in</strong> <strong>Africa</strong>.<br />

Combatt<strong>in</strong>g terror<br />

Counter-terrorism will be a priority for<br />

the Trump adm<strong>in</strong>istration. While the US<br />

has been an active partner work<strong>in</strong>g with<br />

governments across the cont<strong>in</strong>ent, a<br />

thorough review of these relationships<br />

and programmes should be anticipated.<br />

Dur<strong>in</strong>g the presidential campaign, Mr<br />

Trump said that he wanted to keep NATO but<br />

102 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


AFRICA AND THE WORLD<br />

iStock/ Bastiaan Slabbers<br />

he criticised those members who have not met<br />

the group’s target of spend<strong>in</strong>g 2% of GDP on<br />

defence. In fact, only five of the 28 members<br />

will achieve that target.<br />

Environmentally aware<br />

Climate change, given its global importance,<br />

<strong>in</strong>evitably will be a priority for the Trump<br />

adm<strong>in</strong>istration. Prior to assum<strong>in</strong>g office, Mr<br />

Donald Trump sent mixed signals on how he<br />

will approach the issue. Dur<strong>in</strong>g the campaign,<br />

he referred to climate change as a hoax, but<br />

dur<strong>in</strong>g the transition acknowledged to the New<br />

York Times “some connectivity” between<br />

human activity and climate change. Mr Trump<br />

also said that he has an “open m<strong>in</strong>d” to<br />

cont<strong>in</strong>ued US <strong>in</strong>volvement <strong>in</strong> the Paris climate<br />

accord after previously pledg<strong>in</strong>g to withdraw<br />

from the agreement signed by 196 nations.<br />

President Trump appo<strong>in</strong>ted Scott Pruitt,<br />

Oklahoma’s Attorney General, to head the<br />

Environmental Protection Agency.<br />

How the Trump adm<strong>in</strong>istration approaches<br />

climate change matters to <strong>Africa</strong>, especially <strong>in</strong><br />

the message that the US <strong>in</strong>tends to sends. For<br />

one, the Paris accord stipulates that wealthy<br />

countries will <strong>in</strong>crease climate f<strong>in</strong>anc<strong>in</strong>g for<br />

develop<strong>in</strong>g nations by $100 billion by 2020. For a<br />

region that is dependent on ra<strong>in</strong> to irrigate an<br />

estimated 95% of its agricultural productivity,<br />

this f<strong>in</strong>anc<strong>in</strong>g and the US commitment to it is<br />

vital to mitigate the negative impact of climate<br />

change on the cont<strong>in</strong>ent.<br />

Economic growth<br />

F<strong>in</strong>ally, to help the President achieve<br />

his most important objectives, Mr Trump<br />

announced the formation of the President’s<br />

Strategic and Policy Forum. This group is made<br />

up of 16 CEOs, many of whom lead companies<br />

that are active <strong>in</strong> <strong>Africa</strong>.<br />

Work<strong>in</strong>g through ambassadors and<br />

embassies <strong>in</strong> Wash<strong>in</strong>gton and <strong>Africa</strong>n capitals<br />

will be important <strong>in</strong> encourag<strong>in</strong>g strong<br />

ongo<strong>in</strong>g ties between the US and <strong>Africa</strong>.<br />

Engag<strong>in</strong>g members of the US Congress will be<br />

beneficial. After all, it was only 18 months ago<br />

that more than 90 Senators and 400 members<br />

of the House voted to extend AGOA. There is no<br />

substitute, however, for <strong>Africa</strong>n leaders directly<br />

engag<strong>in</strong>g the new president and his most senior<br />

advisers and adm<strong>in</strong>istration members to<br />

convey the mutual and far reach<strong>in</strong>g benefits of<br />

deepen<strong>in</strong>g the ties between the US and <strong>Africa</strong>. •<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 103


AFRICA AND THE WORLD<br />

The United K<strong>in</strong>gdom’s withdrawal from the European<br />

Union will have far-reach<strong>in</strong>g consequences for nations<br />

around the world, argues Edw<strong>in</strong> Laurent<br />

Trad<strong>in</strong>g <strong>in</strong> a<br />

post-Brexit<br />

world<br />

Roses from Kenya wait<br />

to be auctioned at Aalsmeer<br />

Flower auction<br />

Brexit – the UK’s withdrawal from<br />

the EU – will see the EU los<strong>in</strong>g its<br />

second largest economy, or 17% of<br />

its GDP, and the UK ceas<strong>in</strong>g to<br />

apply EU treaties.<br />

The consequences will be<br />

far-reach<strong>in</strong>g, not just for the future of the UK<br />

but the rest of the world, <strong>in</strong> particular <strong>Africa</strong>n<br />

countries whose trade and economic relations<br />

with the UK and Europe have been <strong>in</strong>tricately<br />

l<strong>in</strong>ked s<strong>in</strong>ce the 1970s.<br />

Due to several – often unpredictable –<br />

variables, <strong>in</strong>clud<strong>in</strong>g the future policy choices<br />

and actions of and by the UK and the EU, how<br />

and precisely to what extent <strong>Africa</strong>n countries<br />

will be affected by Brexit is not known.<br />

Understand<strong>in</strong>g the nature of changes<br />

result<strong>in</strong>g from Brexit will help <strong>in</strong>form strategies<br />

to safeguard and advance <strong>Africa</strong>’s <strong>in</strong>terests and<br />

m<strong>in</strong>imise possible damage to its economies<br />

while capitalis<strong>in</strong>g on any opportunities that<br />

might arise or that can be created.<br />

Development aid<br />

The <strong>Africa</strong>n countries of the <strong>Africa</strong>n, Caribbean<br />

and Pacific Group (ACP) receive most of their<br />

EU support from the European Development<br />

Fund (EDF) to which the UK is the third largest<br />

contributor, putt<strong>in</strong>g <strong>in</strong> nearly €4.5 billion. It is<br />

expected to stop its contributions after Brexit.<br />

$4.5bn<br />

is put <strong>in</strong>to the European<br />

Development Fund by the<br />

United K<strong>in</strong>gdom, mak<strong>in</strong>g<br />

the UK their third largest<br />

contributor<br />

Support does not have to be lost to <strong>Africa</strong> if the<br />

UK cont<strong>in</strong>ues provid<strong>in</strong>g the same quantum of<br />

aid post-Brexit, even if via other <strong>in</strong>termediary<br />

<strong>in</strong>ternational <strong>in</strong>stitutions or directly to<br />

beneficiary countries. <strong>Africa</strong> will need to ensure<br />

that it receives at least the same amount of<br />

resources and that they are disbursed <strong>in</strong> l<strong>in</strong>e<br />

with its development priorities.<br />

UK’s economic performance<br />

Goldman Sachs, the IMF and several economists<br />

predicted a contraction of the UK economy as a<br />

result of Brexit. Should the economy shr<strong>in</strong>k,<br />

even if the UK cont<strong>in</strong>ues to honour its<br />

commitment to the UN target for provid<strong>in</strong>g<br />

development aid of 0.7% of GNI, the actual value<br />

will reduce proportionately.<br />

Decl<strong>in</strong><strong>in</strong>g economic performance would also<br />

reduce <strong>in</strong>comes, which would affect how much<br />

the <strong>Africa</strong>n diaspora could afford for<br />

remittances to family and <strong>in</strong>vestment back<br />

home; UK tourists would cut back on<br />

expenditure on overseas holidays; and most<br />

damag<strong>in</strong>g, the UK would be a less attractive<br />

market for <strong>Africa</strong>’s exports.<br />

Trade<br />

Brexit raises another and more fundamental<br />

concern for the future of <strong>Africa</strong>’s exports to the<br />

UK, which <strong>in</strong> 2014 totalled $22.7 billion, (Nigeria<br />

104 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


AFRICA AND THE WORLD<br />

Christopher Furlong/Getty Images<br />

IMPORTANCE OF THE UK<br />

Brexit can offer<br />

new opportunities<br />

for <strong>Africa</strong><br />

$5.2 billion and South <strong>Africa</strong> $3.5 billion) or 11.3%<br />

of the $200 billion exported to the EU.<br />

Towards a solution<br />

This hiatus <strong>in</strong> trade can be averted by a political<br />

commitment from the UK Government.<br />

Immediately upon withdrawal from the EU, it<br />

will unilaterally offer EBA and favourable<br />

GSP concessions to eligible <strong>Africa</strong>n countries<br />

and provide on a transitional basis to<br />

countries currently export<strong>in</strong>g under EPAs,<br />

duty-free access, pend<strong>in</strong>g negotiation and<br />

conclusion of FTAs. Secur<strong>in</strong>g such a<br />

commitment might not be easy, but could be<br />

pursued along with<br />

the ACP group of 79<br />

countries, which is<br />

a major market for<br />

UK exports and<br />

host to substantial<br />

UK <strong>in</strong>vestment. It<br />

has structure, ethos<br />

and 40 years of<br />

engagement with the UK, and can be a valuable<br />

<strong>in</strong>ternational ally for the UK. A well organised<br />

and coherent ACP can leverage this<br />

attractiveness and bolster its barga<strong>in</strong><strong>in</strong>g<br />

position. Brexit will pose new challenges but it<br />

can offer new opportunities that <strong>Africa</strong> must<br />

seize if it is to prosper <strong>in</strong> the new era. •<br />

For several countries, the UK is<br />

relatively even more important.<br />

In 2015, 27.8% of Kenya’s exports<br />

to the EU went to the UK; Gambia<br />

– 30%; South <strong>Africa</strong> – 26.7%;<br />

Seychelles – 34.4%; and<br />

Mauritius – 26.9%. In addition,<br />

specific <strong>in</strong>dustries often rely<br />

heavily on the UK market. For<br />

<strong>in</strong>stance, 65% of Namibia’s<br />

chilled beef exports to the EU<br />

go to the UK.<br />

Caption here<br />

Much of the trade between UK<br />

and <strong>Africa</strong>n countries is enabled<br />

by EU preferential trad<strong>in</strong>g<br />

arrangements, such as Economic<br />

Partnership Agreements (EPAs)<br />

between the EU and ACP regions,<br />

the Generalised System of<br />

Preferences (GSP), Everyth<strong>in</strong>g<br />

but Arms programme (EBA) and<br />

Euro-Mediterranean Free Trade<br />

Area. These help keep <strong>Africa</strong>n<br />

exports viable and competitive<br />

by permitt<strong>in</strong>g them to enter<br />

the UK duty-free or at greatly<br />

<strong>reduced</strong> rates. Brexit will result<br />

<strong>in</strong> the UK immediately ceas<strong>in</strong>g to<br />

apply these EU arrangements<br />

and <strong>Africa</strong>n exports would pay<br />

full import duties – unless<br />

equivalent substitute<br />

arrangements are adopted.<br />

But the UK cannot negotiate<br />

these alternative arrangements<br />

until after it has formally left<br />

the EU, and negotiations can<br />

take many years.<br />

Hav<strong>in</strong>g to pay import duty<br />

could render many <strong>Africa</strong>n<br />

exports uncompetitive and even<br />

jeopardise market presence.<br />

Once this is lost, even if free<br />

access is later restored,<br />

exporters could f<strong>in</strong>d that they<br />

have been supplanted dur<strong>in</strong>g<br />

their absence.<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 105


Directory<br />

National <strong>in</strong>vestment organisations<br />

Official <strong>in</strong>vestment and development agencies of <strong>Africa</strong>n Union member states<br />

People’s Democratic<br />

Republic of Algeria<br />

ANDI, Route Nationale No5<br />

C<strong>in</strong>q Maisons Mohammadia<br />

Algiers, Algeria<br />

T: +213 (0)21 52 20 15<br />

E: sg@andi.dz<br />

www.andi.dz/en<br />

Republic of Angola<br />

Agencia Nacional para o<br />

<strong>Invest</strong>imento Privado<br />

T: 001 202 962 0380<br />

E: hcosta@anip-us.org<br />

www.anip-angola-us.org<br />

Republic of Ben<strong>in</strong><br />

Centre de Promotion des<br />

<strong>Invest</strong>issements du Ben<strong>in</strong><br />

Cotonou 01 BP 2022<br />

T: (+229) 21 30 30 62<br />

E: cpiben<strong>in</strong>@yahoo.fr<br />

Ben<strong>in</strong> Chamber of<br />

Commerce and Industry<br />

01 BP 31 Cotonou<br />

(Rep. du Bén<strong>in</strong>)<br />

T: (229) 21 31 43 86<br />

E: <strong>in</strong>fo.ccib@cciben<strong>in</strong>.org<br />

www.cciben<strong>in</strong>.org<br />

UK office Consulate of Ben<strong>in</strong><br />

Millennium Bus<strong>in</strong>ess Centre,<br />

Humber Road<br />

NW2 6DW, London, United<br />

K<strong>in</strong>gdom<br />

T: +44 (0)20 8830 8612<br />

E: ben<strong>in</strong>consulate@hotmail.<br />

co.uk<br />

www.ben<strong>in</strong>consulate.co.uk<br />

US office<br />

2124 Kalorama Road, NW<br />

Wash<strong>in</strong>gton DC, 20008, United<br />

States<br />

T: (202) 232-6656<br />

E: <strong>in</strong>fo@ben<strong>in</strong>embassy.us<br />

www.ben<strong>in</strong>embassy.us<br />

Republic of Botswana<br />

Botswana Export Development<br />

and <strong>Invest</strong>ment Authority<br />

(BEDIA)<br />

Plot 28 Matsitama Rd,<br />

PO Box 3122<br />

Gaborone, Botswana<br />

T: +267 318 1931<br />

E: bedia@bedia.bw<br />

South <strong>Africa</strong> office<br />

RSA 88 Stella Street<br />

3rd Floor Build<strong>in</strong>g<br />

2 Sandown Me ws<br />

PO Box 781371 Sandton<br />

South <strong>Africa</strong><br />

T: +2711 884 8959<br />

E:: mogaral@bedia.co.za<br />

UK office<br />

Montle Phuthego,<br />

6 Stratford Place<br />

London, W1C 1AY,<br />

United K<strong>in</strong>gdom<br />

T: +44 (0)20 7499 0031<br />

E: montle@bedia.co.uk<br />

India office<br />

No 43 Maker Chamber VI<br />

Nariman Po<strong>in</strong>t<br />

Mumbai 400 021,<br />

India<br />

T: +91 2243 602100<br />

E: monangeno@bedia.co.<strong>in</strong><br />

www.bedia.co.bw<br />

Burk<strong>in</strong>a Faso<br />

Office National de<br />

Commerce Extérieur<br />

Direction de la Normalisation et<br />

de la Promotion de la Qualité<br />

Immeuble APEX - Burk<strong>in</strong>a<br />

(ex ONAC) 30<br />

Avenue de l’UEMOA<br />

BP: 389, BF-Ouagadougou 01<br />

T: (+226) 50 31 13 00<br />

E: secretariat.onac@gmail.com<br />

www.iso.org<br />

Republic of Burundi<br />

API – Agence Burundaise de<br />

Promotion des<br />

<strong>Invest</strong>issements<br />

3 Salah, Salem Road<br />

Nasr City, Cairo, Egypt<br />

T: (+202) 2405 5428<br />

E: <strong>in</strong>fo@comesaria.org<br />

www.comesaria.org<br />

Republic of Cameroon<br />

Cellule de Gestion du Code des<br />

<strong>Invest</strong>issements (CGCI)<br />

BP 15304, Douala<br />

Cameroon<br />

T: (+237) 342 5946<br />

E: cgci2000@yahoo.com<br />

Republic of Cape Verde<br />

Palácio das Comunidades<br />

Palace of Communities<br />

Achada Santo António Beach<br />

CP 237 Cape Verde<br />

T: +2607911<br />

E: <strong>in</strong>fo.ic@ic.gov.cv<br />

www.ie.ic.cv<br />

Central <strong>Africa</strong>n Republic<br />

M<strong>in</strong>istère de l’Economie, du<br />

Plan et de la Coopération<br />

Internationale<br />

Rue Luther K<strong>in</strong>g, Bangui Central<br />

<strong>Africa</strong>n Republic, BP 696<br />

T: +236 21 61 78 11 / +236 75 57<br />

E: <strong>in</strong>fo@m<strong>in</strong>plan-rca.org<br />

www.m<strong>in</strong>plan-rca.org<br />

Republic of Chad<br />

M<strong>in</strong>istère du Commerce<br />

et de l’Artisanat<br />

Palais du Gouvernement<br />

PO Box 4546, N’Djaména, Chad<br />

T: (235) 52 21 99<br />

Division de l’<strong>in</strong>dustrie<br />

T: (235) 52 21 79 / (235) 52 27 33<br />

Direction du Commerce<br />

T: (235) 52 30 49<br />

E: chad@wto.refcen.org<br />

www.primature-tchad.org<br />

Union of the Comoros<br />

Comoros National <strong>Invest</strong>ment<br />

Promotion Agency<br />

T: +269 77 38 570<br />

E: <strong>in</strong>vestcomoros@<br />

comorostelecom.km<br />

www.comesaria.org<br />

Republic of the Congo<br />

M<strong>in</strong>istry of Foreign Affairs<br />

Government of Republic of<br />

Congo<br />

BP 2070 Brazzaville<br />

Democratic Republic of the<br />

Congo<br />

T: 00242 814160 / 00242 814161<br />

/ 00242 814162<br />

Republic of Côte d’Ivoire<br />

Centre de Promotion des<br />

<strong>Invest</strong>issements en Côte<br />

d’Ivoire<br />

5ème étage immeuble CCIA<br />

Boîte Postale, 152 Abidjan<br />

Côte d’Ivoire<br />

T: (225) 20 21 40 70<br />

E: <strong>in</strong>fo@cepici.go.ci<br />

www.cepici.gouv.ci<br />

Democratic Republic<br />

of the Congo<br />

Agence Nationale pour la<br />

Promotion des <strong>Invest</strong>issements<br />

Avenue Colonel Ebeya, No 54,<br />

2nd Floor, Immeuble de la<br />

Reconstruction<br />

(ex-Sozabanque), K<strong>in</strong>shasa/<br />

Gombe Democratic Republic of<br />

the Congo<br />

T: +243 99 99 25 026<br />

E: anapirdc@anapi.org<br />

www.anapi.org<br />

106 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


Directory<br />

Republic of Djibouti<br />

<strong>Invest</strong> <strong>in</strong> Djibouti<br />

Rue de Marseille 1884<br />

Djibouti, Republic of Djibuoti<br />

T: +253 31 21 02<br />

E: anpi@<strong>in</strong>tnet.dj<br />

www.djibout<strong>in</strong>vest.dj<br />

Arab Republic of Egypt<br />

General Authority for<br />

<strong>Invest</strong>ment <strong>in</strong> Egypt (GAFI)<br />

T: +202 2405 5452<br />

E: <strong>in</strong>vestorcare@gaf<strong>in</strong>et.org<br />

www.gaf<strong>in</strong>et.org<br />

State of Eritrea<br />

Department of Foreign<br />

TradeM<strong>in</strong>istry of Trade and<br />

Industry<br />

PO Box 1844,<br />

Asmara, Eritrea<br />

T: +291 12-66-94<br />

Federal Democratic<br />

Republic of Ethiopia<br />

Ethiopian <strong>Invest</strong>ment Agency<br />

PO Box 2313<br />

Addis Ababa, Ethiopia<br />

T: +251 11 5510033<br />

E: ethiopian.<strong>in</strong>vest@<br />

ethio<strong>in</strong>vest.org<br />

www.ethio<strong>in</strong>vest.org<br />

Gabonese Republic<br />

F<strong>in</strong>atra – La F<strong>in</strong>ancière<br />

Transafrica<strong>in</strong>e<br />

Bord de Mer, BP 8645, Libreville<br />

Gabonese Republic<br />

T: +241 77 40 82<br />

E: f<strong>in</strong>atra@bgfi.com<br />

www.bgfi.com<br />

Fodex – Fonds De<br />

Développement<br />

Et D’expansion Des Pme-Pmi<br />

Route de l’aéroport, BP 3896<br />

Libreville, Gaboese Republic<br />

T: +241 44 42 30<br />

AU IN NUMBERS<br />

1963<br />

the Organization of<br />

<strong>Africa</strong>n Unity (OAU)<br />

was established<br />

32<br />

<strong>Africa</strong>n countries<br />

that had ga<strong>in</strong>ed<br />

<strong>in</strong>dependence jo<strong>in</strong>ed<br />

2002<br />

the <strong>Africa</strong>n Union<br />

was created with<br />

53 member states<br />

2011<br />

South Sudan jo<strong>in</strong>ed the<br />

AU, and there are now<br />

54 member states<br />

OAU<br />

was established <strong>in</strong><br />

Addis Ababa,Ethiopia,<br />

where the headquarters<br />

are still today<br />

28th<br />

<strong>Africa</strong>n Union Summit is<br />

tak<strong>in</strong>g place this year <strong>in</strong><br />

Addis Ababa, Etiopia<br />

APIP – Agence De Promotion<br />

Des <strong>Invest</strong>issements Privés<br />

Boulevard du bord de Mer, BP<br />

13740 Libreville, Gaboese<br />

Republic<br />

T: +241 76 87 65<br />

gabon.golden-trade.com/cnt/<br />

gt<br />

Republic of the Gambia<br />

The Gambia <strong>Invest</strong>ment and<br />

Export Promotion Agency<br />

GIEPA House, 48a Kairaba<br />

Avenue Serrekunda, KMC PO<br />

Box 757<br />

Banjul, The Gambia<br />

T: +220 4377377<br />

E: <strong>in</strong>fo@giepa.gm<br />

www.gipfza.gm/<br />

Republic of Ghana<br />

Ghana <strong>Invest</strong>ment<br />

Promotion Centre<br />

Public Services Commission<br />

Build<strong>in</strong>g M<strong>in</strong>istries, Accra,<br />

Ghana<br />

T: +233 302 665 125<br />

E: <strong>in</strong>fo@gipcghana.com<br />

www.gipcghana.com<br />

Republic of Gu<strong>in</strong>ea<br />

Gu<strong>in</strong>ea Private <strong>Invest</strong>ment<br />

Promotion Office – OPIP<br />

T: +224 41 49 85<br />

Republic of<br />

Gu<strong>in</strong>ea-Bissau<br />

M<strong>in</strong>istry of Economy and<br />

F<strong>in</strong>ance Private <strong>Invest</strong>ment<br />

Promotion Office<br />

Rua Just<strong>in</strong>o Lopes<br />

74a Bissau CP 67<br />

T: +245 20 36 70 / +245 25 48 07<br />

Republic of Kenya<br />

Kenya <strong>Invest</strong>ment Authority<br />

Kenya Railways Headquarters<br />

Block D, 4th Floor<br />

Workshop Road, PO Box 55704-<br />

00200, City Square,<br />

Nairobi, Kenya<br />

T: +254 (20) 2221 4014<br />

E: <strong>in</strong>fo@<strong>in</strong>vestmentkenya.com<br />

www.<strong>in</strong>vestmentkenya.com<br />

K<strong>in</strong>gdom of Lesotho<br />

Lesotho National<br />

Development Corporation<br />

LNDC Headquarters, Block A<br />

Development House, K<strong>in</strong>gsway<br />

Street<br />

Maseru, Lesotho, 100<br />

T: +266 22312012 / +266<br />

52000214<br />

E: <strong>in</strong>fo@lndc.org.ls / ce@lndc.<br />

org.ls<br />

www.lndc.org.ls<br />

Republic of Liberia<br />

National <strong>Invest</strong>ment<br />

Commission<br />

Airfield, New Road, Chesseman<br />

Avenue, S<strong>in</strong>kor, Monrovia,<br />

Liberia<br />

T: +231 77-333-222 / 78-73001<br />

E: <strong>in</strong>fo@nic.gov.lr<br />

www.nic.gov.lr<br />

Libya<br />

LIDC, Tripoli Tower, 9th floor<br />

office, no 99, Tripoli, Libya<br />

T: 00 2 1821 335 1034<br />

www.libyan<strong>in</strong>vestment.com<br />

Republic of Madagascar<br />

Economic Development<br />

Board of Madagascar<br />

Immeuble EDBM,<br />

Avenue Gal Gabriel<br />

Ramanantsoa<br />

Antan<strong>in</strong>aren<strong>in</strong>a Antananarivo,<br />

Madagascar<br />

T: +261 20 22 670 40 / 681 21<br />

E: edbm@edbm.mg<br />

www.edbm.gov.mg<br />

<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 107


Directory<br />

Republic of Malawi<br />

Republic of Niger<br />

Somali Republic<br />

Togolese Republic<br />

Malawi <strong>Invest</strong>ment<br />

Promotion Agency<br />

Aquarius House,<br />

1st Floor,<br />

Private Bag 302,<br />

Capital City Lilongwe 3,<br />

Malawi<br />

T: +265 1 770 800 / 771 315<br />

E: mipa@mipamw.org<br />

www.malawi-<strong>in</strong>vest.net<br />

Republic of Mali<br />

Agence pour la Promotion des<br />

<strong>Invest</strong>issements au Mali<br />

Quartier du Fleuve,<br />

BP 1980 Bamako,<br />

République du Mali<br />

T: +223 20 22 95 25<br />

E: contact@apimali.gov.ml<br />

www.apimali.gov.ml/api/en<br />

Republic of Mauritania<br />

www.economie.gov.mr<br />

Republic of Mauritius<br />

Board of <strong>Invest</strong>ment<br />

10th Floor, One Cathedral<br />

Square Build<strong>in</strong>g,<br />

16 Jules Koenig Street,<br />

Port Louis, Republic of<br />

Mauritius<br />

T: +230 203 3800<br />

E: contact@<strong>in</strong>vestmauritius.<br />

com<br />

www.<strong>in</strong>vestmauritius.com<br />

Republic of Mozambique<br />

Rua da Imprensa 332 R/C<br />

Maputo, Mozambique<br />

T: +258 21313310<br />

www.mozbus<strong>in</strong>ess.gov.mz<br />

Republic of Namibia<br />

Namibia <strong>Invest</strong>ment Centre<br />

M<strong>in</strong>istry of Trade and Industry<br />

Block B, Brendan Simbwaye<br />

Square, Goethe Street, Private<br />

Bag 13340<br />

W<strong>in</strong>dhoek, Namibia<br />

T: +264 61 283 7335<br />

E: nic@mti.gov.na<br />

www.mti.gov.na<br />

La Commission des Affaires<br />

Étrangères et de la<br />

Coopération<br />

Place de la Concertation<br />

BP 12234, Niamey, Niger<br />

T: (227) 20 72 27 38<br />

E: an@assemblee.ne<br />

www.assemblee.ne<br />

Federal Republic<br />

of Nigeria<br />

Nigerian <strong>Invest</strong>ment<br />

Promotion Commission<br />

Plot 1181, Aguiyi Ironsi Street<br />

Maitama District PMB 381<br />

Garki Abuja, Nigeria<br />

T: +234 9 290 4882<br />

E: osic<strong>in</strong>fodesk@nipc.gov.ng<br />

www.nipc.gov.ng<br />

Republic of Rwanda<br />

Rwanda Development Board<br />

Boulevard de l’Umuganda,<br />

Gishushu, Nyarutarama Road,<br />

PO Box 6239 Kigali, Rwanda<br />

T: <strong>in</strong>fo@rdb.rw<br />

F: +250 252 580 388<br />

www.rdb.rw<br />

Republic of Senegal<br />

52-54 Rue Mohamed V,<br />

BP 430 CP 18524,<br />

Dakar RP, Senegal<br />

T: +221 33 849 05 55<br />

E: contact@apix.sn<br />

www.<strong>in</strong>vest<strong>in</strong>senegal.com<br />

Republic of Seychelles<br />

Seychelles <strong>Invest</strong>ment Bureau<br />

Caravelle House, 2nd Floor,<br />

Manglier<br />

Street, PO Box 1167, Victoria,<br />

Mahe<br />

Republic of Seychelles<br />

T: +248 295500 / 295502<br />

E: sib@seychelles.sc<br />

www.<strong>in</strong>vest<strong>in</strong>seychelles.sc<br />

Republic of Sierra Leone<br />

Sierra Leone <strong>Invest</strong>ment and<br />

Export Promotion Agency<br />

O.A.U. Drive, Tower Hill<br />

Freetown, Sierra Leone<br />

T: +232 22 220788<br />

E: <strong>in</strong>fo@sliepa.org<br />

www.<strong>in</strong>vestsierraleone.biz<br />

Somali Bus<strong>in</strong>ess and<br />

<strong>Invest</strong>ment Council<br />

C<strong>in</strong>waanka golaha, Djibouti City<br />

PO Box 2693, Republic of<br />

Djibouti<br />

T: +253 35 46 48<br />

E: <strong>in</strong>fo@somali<strong>in</strong>vestment.com<br />

www.somali<strong>in</strong>vestment.com<br />

Republic of South <strong>Africa</strong><br />

Department of Trade and<br />

Industry<br />

77 Me<strong>in</strong>tjies Street, Sunnyside<br />

Pretoria, Gauteng 0002, South<br />

<strong>Africa</strong><br />

T: +27 (12) 394 9500<br />

E: contactus@thedti.gov.za<br />

www.thedti.gov.za<br />

Republic of the Sudan<br />

M<strong>in</strong>istry of <strong>Invest</strong>ment<br />

Khartoum – West Hilton<br />

T: + 249 787193<br />

E: <strong>in</strong>vestment@sudanmail.net<br />

www.sudan<strong>in</strong>vest.org<br />

K<strong>in</strong>gdom of Swaziland<br />

Swaziland <strong>Invest</strong>ment<br />

Promotions Authority<br />

1st Floor<br />

Nkhotfotjeni Build<strong>in</strong>g<br />

Cnr Msakato & Dezeliwe Street<br />

Mbabane, Swaziland<br />

T: +268 2404 0470/2/3/4<br />

www.sipa.org.sz<br />

United Republic of<br />

Tanzania<br />

Tanzania <strong>Invest</strong>ment Centre<br />

TIC House<br />

Shabaan Rober Street<br />

PO Box 938, Dar es Salaam<br />

Tanzania<br />

www.tic.co.tz<br />

Zanzibar <strong>Invest</strong>ment<br />

Promotion Authority<br />

PO Box 2286, Zanzibar<br />

T: +255 (0)24 223 3026<br />

E: zipa@zanz<strong>in</strong>et.com<br />

www.zanzibar<strong>in</strong>vest.org<br />

Sociéte d’Adm<strong>in</strong>istration des<br />

Zones Franches<br />

2564 Avenue de la Chance<br />

BP 3250, Lome-Togo<br />

T: (+228) 253 53 69<br />

E: n.potcho@zonefranchetogo.<br />

tg<br />

Tunisian Republic<br />

Foreign <strong>Invest</strong>ment Promotion<br />

Agency<br />

Rue Slahedd<strong>in</strong>e<br />

El Ammami Centre<br />

Urba<strong>in</strong> Nord, 1004, Tunis,<br />

Tunisia<br />

T: +216 71 752 540<br />

E: boc.fipa@mdci.gov.tn<br />

www.<strong>in</strong>vest<strong>in</strong>tunisia.tn<br />

Republic of Uganda<br />

Uganda <strong>Invest</strong>ment Authority<br />

The <strong>Invest</strong>ment Centre<br />

Plot 22B Lumumba Avenue<br />

TWED Plaza, PO Box 7418<br />

Kampala, Uganda<br />

T: +256 414 301000<br />

E: <strong>in</strong>fo@uganda<strong>in</strong>vest.go.ug<br />

www.uganda<strong>in</strong>vest.go.ug<br />

Republic of Zambia<br />

Zambia Development Agency<br />

Privatization House<br />

Nasser Road, PO Box 30819<br />

Lusaka, Zambia<br />

T: +260 211 222 858<br />

E: <strong>in</strong>fo@zda.org.zm<br />

www.zda.org.zm<br />

Republic of Zimbabwe<br />

Zimbabwe <strong>Invest</strong>ment<br />

Authority<br />

<strong>Invest</strong>ment House, 109 Rotten<br />

Row<br />

PO Box 5950, Harare<br />

Zimbabwe<br />

T: +263 4757<br />

E: <strong>in</strong>fo@zia.co.zw<br />

www.zia.co.zw<br />

108 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


From Routledge…<br />

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The grow<strong>in</strong>g demand for<br />

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110 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017


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