Tag Archives: Investment in Africa

TWG Fast Facts: September 5 – September 9, 2011

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Namibia is home to one of Africa’s largest hybrid solar systems.
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Coca-Cola, Diageo and WaterHealth International launch innovative water partnership in Ghana.
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IBM sees promising investment opportunities in Ugandan economy.
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Anadarko Petroleum to begin oil exploration in the waters of the Ivory Coast later this year.
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Ghana: new petroleum exploration and production bill may require oil companies to obtain state’s approval for loans.
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World Bank in talks with China to promote the transfer of low-value manufacturing jobs Africa.
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Nigeria Central Bank chief sees China Yuan becoming reserve currency.
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Current demand for hotel rooms in and around Lagos, Nigeria, is expected to grow at an average of 15% per annum.
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Tourism revenues in Rwanda increased by 14% between 2009 and 2010.
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China invested US$26.7 million in Kenya’s economy in the first half of 2011, becoming the first source of foreign direct investment in the country.
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Imports to African countries surged by 53% to during the first half of 2011 over the same period last year.
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World Bank: agricultural productivity is one of the causes of the rebound in economic growth in Africa.
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World Economic Forum reveals Africa’s ten most competitive countries.
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TWG Fast Facts: August 29 – September 2, 2011

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Samsung aims US$10 billion in revenue in Sub-Saharan Africa by 2015.
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IKEA’s US$62 million donation to the Horn of Africa through the UN is the largest private donation it has received since it was established in 1950.
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SADC, COMESA and EAC have 578 million consumers spanning 26 African countries and a combined GDP of US$853 billion.
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Thermal power accounts for 85% of Uganda’s power generation costs.
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Only 9% of Rwanda is electrified.
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Rwanda is the East African country that has improved its business regulatory environment the most over the past five years.
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Poor sanitation is the cause of death for 1.5 million under-five children globally each year.
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FDI in Ghana rose to about 50% in 2009, while they dropped by 29% in Nigeria.
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China’s trade with Africa is expected to hit the US$100 billion mark by 2015.
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TWG Fast Facts: August 15 – 19, 2011

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Intra-COMESA trade increased more than five times from US$3.1 billion in 2001 to US$17 billion in 2010.
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Tanzania’s proven gas reserves are 7.5 trillion cubic feet.
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Nigeria has proven natural gas reserves of 187 trillion cubic feet.
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Nigeria currently generates about 4,000 MW of power. That’s only 2% of the electricity needed for the entire population.
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Bank of Uganda estimates the country will save US$600 million per year in oil imports when it begins oil production next year.
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Kosmos Energy makes US$124 million in revenue from sale of Ghana crude.
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About 40% of the average income for most people in East Africa is spent on kerosene as a source of lighting.
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South Africa generates the equivalent of 95% of the continent’s electricity and hosts about 60% of its rail network.
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Less than 0.1% of Nigerian women are screened for cervical cancer in their lifetime.
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Cervical cancer accounts for 15% female cancers in developing countries against about 3.6 % in developed countries.
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The UN reports that 29,000 children under five have died in Somalia over the last 3 months.
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TWG Fast Facts: August 8 – 12, 2011

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KosmosEnergy has so far invested about US$1.5billion in the development of the Jubilee Field off the coast of Ghana.
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Since the beginning of 2011, the United States has so far provided $565 million in humanitarian assistance to the Horn of Africa.
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Africa-China trade grew from $5 billion to $56 billion between 2000 and 2008, before reaching $115 billion in 2010. Crude oil constitutes 70% of African exports to China, and raw materials 15%.
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Only 23% of arable land in Tanzania is currently being farmed.
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Sending a daily SMS to health workers in rural Africa has improved the deliverance of malaria treatment by 25%.
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The Economist reports that about 40% of Africa’s farm produce is lost on the way to the market.
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Maize (corn) yields per hectare in Rwanda have increased from 68% in 2007 to 212% today.
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Juniper Research projects the African mobile banking market to grow to $22 billion by 2015. About 37% of South Africans use mobile banking; that’s three times more than the top user in Europe (France).
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Annual trade between India & Africa increased 15-fold within a decade to US$46 billion in 2010 from US$3 billion in 2000. India determined to increase trade with Africa from current $46 billion to $70 billion before 2014.
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World Tourism Organisation reports that six out of the nine major African destinations are from Southern Africa.
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Rwanda’s GDP growth stood at 7.5% in 2010, the highest in the region.
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Gold production in Ghana, Africa’s 2nd-largest gold producer after South Africa, rose 14% for the first quarter 2011.
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Trade between China and Africa expected to triple to US$300 billion a year by 2015.
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TWG Fast Facts: Aug 01 – 05, 2011

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Capital invested in Africa will continue to rise in coming years to US$150 billion per year in 2015.
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Between 2003 and 2010, intra-continental investment in Africa grew by a 21%.
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UN: damages caused by oil pollution in Niger Delta estimated at US$1 billion.
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Nigeria spent US$1.34 billion importing refined petroleum between January and March 2011.
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FAO: between 30% and 60% of agricultural production is lost between the farms and the markets in Africa.
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Experts estimate that up to US$30 billion need to be invested between 2005 and 2016 to meet Africa healthcare needs.
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East Africa: annual growth in demand for electricity is estimated at 5.3% per year.
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UNESCO: in sub-Saharan Africa nearly 92% of the rural population and 48% of the urban population does not have modern energy services.
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South Africa spends US$3.1 billion annually on research and development in aeronautics, nuclear engineering, chemistry, metallurgy, agriculture and medicine.
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Kenya has approximately 25 million mobile subscribers and 10.2 million regular Internet users.
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An estimated 14.5 million people in Kenya have access to mobile-based financial services.
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African forest cover declined at an average rate of 1.7% annually between 1990 and 2005, or approximately 70,000 hectares each year.
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The number of people living in Africa’s cities expected to double by 2030.
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Tanzania: 87% of businesses are directly affected by shortage in electricity.
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Approximately 70% of new investment projects are concentrated in only 10 African countries including South Africa, Algeria, Angola, Egypt, Ghana, Kenya, the Congo Brazzaville, Morocco, Nigeria and Tunisia.
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What’s Your Emerging Market Strategy?

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A Wall Street Journal article today on Nigeria’s Rising Middle class is quick to trumpet a stat from a recent African Development Bank report that introduces the continent’s middle class to international investors at a robust and eager 300 million consumers.  This new middle class of consumers is defined as those who spend between $4 and $20 a day.

But a $4 a day consumer has vastly different needs and spending habits than a $20 a day consumer.  Redefine Africa’s middle class upwards by a mere $2 and its number falls by two-thirds.  Redefine it again by OECD standards of $10 to $100 a day, and only 32 million consumers in sub-Saharan Africa make the middle class. Targeting anywhere from 32 to 313 million consumers scattered across a continent can make strategizing difficult for even the world’s largest companies. Continue reading →

China, Africa, and the African Diaspora: Perspectives

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“How does China’s approach differ from that of [Africa's] other development partners?”

So sets out the evaluative frame of Dr. Sharon T. Freeman’s new book, “China, Africa, and the African Diaspora: Perspectives.” The book features essays from stakeholders living and working in Africa that discuss the impact of Africa’s economic partnership with the Chinese, as well as how China is fulfilling its “guiding principles” for engagement with Africa, including “sincerity, equality and mutual benefit, solidarity and common development.”

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Harnessing the Brain Drain: Potential for Development

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By Isaiah Schulze

In discussions of African development issues, the subject of “brain drain” is often brought up. The basic thesis is that by immigrating to developed countries, highly talented Africans are depriving their home nations of the intellectual assets needed for development. Rich countries gain unfairly from this phenomenon as they retain the academic, political, and economic contributions of these skilled individuals, while African countries languish from a shortage of good ideas. Continue reading →

Obama Administration, Congress and Africa Celebrate 10-Year Anniversary of AGOA

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Ten years after the enactment of the African Growth and Opportunity Act (AGOA), a group of its original architects and supporters from Congress, the US government and the private sector, as well as members of the African diplomatic corps, met on Capitol Hill to celebrate its success in spurring economic development in Africa and to call for a recommitment to protect, extend and expand the landmark legislation. Continue reading →

Maximizing Capital Flows to Africa: Some brief comments on sovereign bonds, hedging instruments, private equity and carbon finance

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More African countries than ever have entered the international financial system through the international bond market in 2009/10. Whereas before only countries like South Africa had credit ratings sufficient to enter, now places like Tanzania and Togo are considering how best to enter. Continue reading →

Notes from “Innovative Mechanisms for Maximizing Capital Flows to Africa”

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April 26, 2010
Washington, DC

On April 26, 2010, The Whitaker Group and the Hudson Institute’s Center for Global Prosperity convened a diverse group of global development stakeholders to discuss new strategies and initiatives to maximize capital flows to Africa at a lunch event sponsored by The Western Union Company.  African Finance Ministers, Ambassadors, US business and policy leaders, multilateral development bank officials and heads of emerging market funds gathered together to share best practices and innovative initiatives. Continue reading →

President of African Development Bank Applauds Resilience of the Continent in the Aftermath of the Financial Crisis

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Mr. Donald Kaberuka, President of the African Development Bank (AfDB), last Monday declared that Africa’s resilience during the recent global economic crisis had proven that macroeconomic reforms over the past two decades had successfully strengthened the continent’s economic foundations. Continue reading →

Enterprise for Development: A New US Policy Approach Toward Africa

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On April 26, 2010, the AGOA Action Committee introduced a new six-pronged Africa policy framework entitled “Enterprise for Development: A New US Policy Approach Toward Africa,” or EnDev.  The proposal will be presented to the Obama Administration and Congress in support of their on-going work to strengthen and enhance expanded US engagement, trade, investment and proven poverty alleviation efforts with Africa. Continue reading →

“A Call to Action:” Remarks on AGOA by Rosa Whitaker

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“Leaders Forum: AGOA and the Way Forward on U.S.-Africa Economic Policy”
April 26th, 2010
The Willard InterContinental Hotel, Washington DC

 Remarks by Rosa Whitaker

Good morning, Ladies and Gentlemen, Honored Guests.  I would like to begin by welcoming you all and by thanking my co-hosts for their support of this event: The AGOA Action Committee, the Africa Coalition for Trade, the African-American Unity Caucus, the Africa Society of the National Summit on Africa, the Constituency for Africa, the Leon H. Sullivan Foundation, Manchester Trade, and the Corporate Council on Africa.  Continue reading →

“Leaders on the Cutting Edge of Change:” Remarks by Rosa Whitaker

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“Innovative Mechanisms for Maximizing Capital Flows to Africa”
April 26th, 2010
The Willard InterContinental Hotel, Washington, DC

 Opening Remarks by Rosa Whitaker

Good afternoon, Excellencies, honored guests, ladies and gentlemen. We are delighted that you could all join us today.  We have with us a host of senior US and African government officials, including Ministers of Finance, Ambassadors, and senior State Department advisors.  We also have several senior World Bank officials, and of course we are so pleased to welcome President Donald Kaberuka today. Continue reading →

China and Africa: The Rise of Special Economic Zones

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by Isaiah Schulze

Although the rise of China is axiomatic, the extent of China’s influence on other developing countries is still being debated. China’s experience in Africa has caused much controversy. Many accuse Beijing of propping up corrupt governments by offering “no-strings attached” loans, stealing employment from locals, and degrading the environment. Although there is definite merit to these criticisms, it is unfair for the West to focus exclusively on China’s wrongdoings. As David Piling in the Financial Times asserts, “China is no philanthropist, but its rise may represent Africa’s best hope of escaping poverty.” Continue reading →

Africa in 2010

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by Margot Bokanga

One important question the business and development sectors and policymakers in Africa and the international community may be asking is “How will Africa perform this year and this decade?” Despite last year’s global recession, Africa remained the most profitable emerging market to invest in, and this year it offers strong business opportunities to many investors. Looking through the Top 9 Business Stories of 2009 that I posted last week, I found three trends. Continue reading →

Africa’s Top 9 Business Stories of 2009

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by Margot Bokanga

1.  Telecommunications remained one of the fastest growing sectors in emerging markets last year, with African mobile phone use increasing more rapidly than anywhere else in the world.

2.  The East African Community emerged as the most evolving regional trade bloc on the continent, with major agreements and accomplishments achieved in 2009.

3.  African banks survived the global economic crisis by continuing to attract investment from across the continent and even from Asia with prudent lending and investment policies.

4.  Despite the global economic crisis, African economies continued to attract foreign investors like CDC Group who saw the continent’s impressive return on investment and potential for high rewards. 

5.  The Aid Trap, a unique approach to development written by Glenn Hubbard and William Duggan, proposed that the US government make direct loans to businesses in the developing world and encouraged investment in infrastructure.

6.  South-South trade and investment – particularly exports from Asia to Africa – tripled in the last five years, making Asia Africa’s third largest trading partner (27% of trade) after the EU (32%) and the US (29%).

7.  At the Copenhagen climate change conference in December, Africa emerged as a powerful bloc when the continent staged a successful, unified walkout to prevent African interests from falling by the wayside.

8.  While oil and mining has often been the main area for investment in Africa, in 2009 Africa offered new opportunities – particularly in the construction of undersea cables.

9.  The World Bank’s Doing Business 2010 report noted that the business environment is continuing to improve in key countries on the continent: in particular, Rwanda was ranked the world’s top business reformer and Mauritius became the first African country to break into the top 20 countries to do business.

Investment: The Next Area for African Cooperation

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By Meg Dallett

Earlier this year, I wrote about the lack of African foreign investment in Africa and how crucial intra-Africa FDI is for the continent’s long-term development.  With the developing world’s highest rate of return on investment and plenty of room for new projects, Africa should be an obvious choice for African investments.  But in 2008 UNCTAD reported that intra-African investment made up only about 13% of all investment in Africa. Continue reading →

The Base of the Pyramid: Room to Grow

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by Tom Haslett

One of the most important questions facing multinational corporations today is whether they can make a profit with products and services marketed to the poor in developing countries. Many companies are actively exploring this approach with a variety of goods meant to reach consumers with limited expendable income: this is called a “bottom of the pyramid” strategy. As firms search for new opportunities, Africa represents a particularly large and attractive market to tap. Equally importantly, new innovations that earn a profit for their creators can also serve the continent’s people as a powerful tool for development. Continue reading →