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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 />
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<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 />
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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 />
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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 />
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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 />
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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 />
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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
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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
The lead<strong>in</strong>g source of analysis, op<strong>in</strong>ion<br />
and comment on the global agenda<br />
World leaders have agreed to keep global<br />
temperature rise this century below<br />
2 ° C<br />
Are G7 members stick<strong>in</strong>g to<br />
this commitment?<br />
F<strong>in</strong>d out at<br />
G7G20.com<br />
Published by<br />
@g7_g20<br />
l<strong>in</strong>ked<strong>in</strong>.com/company/g7g20<br />
In partnership with<br />
G7 Research Group<br />
G20 Research Group
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 />
Ch<strong>in</strong>a’s G20 Leadership<br />
John J. Kirton<br />
A comprehensive<br />
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diplomacy and <strong>in</strong>fluence<br />
on the G20 s<strong>in</strong>ce the<br />
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central bankers <strong>in</strong> 1999<br />
through its elevation to<br />
the leaders’ level <strong>in</strong><br />
2008. It exam<strong>in</strong>es<br />
Ch<strong>in</strong>a’s role <strong>in</strong> the<br />
summits and its plans<br />
and prospects for the<br />
2016 Hangzhou Summit.<br />
The Global Governance<br />
of Climate Change<br />
G7, G20, and<br />
UN Leadership<br />
John J. Kirton and<br />
Ella Kokotsis<br />
An analysis of four decades<br />
of <strong>in</strong>tergovernmental<br />
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global climate change from<br />
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present and demonstrates<br />
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G7/8 and G20 summit as<br />
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United Nations.<br />
The G8-G20<br />
Relationship <strong>in</strong> Global<br />
Governance<br />
By Mar<strong>in</strong>a Larionova and<br />
John J. Kirton, editors<br />
The grow<strong>in</strong>g demand for<br />
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John J. Kirton<br />
Follow George Bush and<br />
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110 | <strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017
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