AFRIKASOURCES delivers its COMESA Risks Assessment Bulletin for July 2010 #27.
Highlights:
▪ A Contested President in Burundi
▪ Djibouti solve its Border conflict with Eritrea
▪ 50th Anniversary of Independence of DR Congo
▪ Egypt looking for FDI, preferably from Asia
▪ Kenya: Country divided between YES/NO
▪ Libya: Border tensions with Sudan
▪ Referendum postponed in Madagascar
▪ Seychelles: Presidential Mission to India
▪ IMF positive Evaluation for Zambia
and much more….
3. A F R I K A S O U R C E S
Quote
The rate of return on foreign investment is higher in Africa than in any other developing region.
Africa’s economic pulse has quickened, infusing the continent with a new commercial vibrancy. Real GDP rose by 4.9 percent a year from 2000 through
2008, more than twice its pace in the 1980s and ’90s. Telecommunications, banking, and retailing are flourishing. Construction is booming. Private-
investment inflows are surging.level” -McKinsey Global Institute
Climate change and MDG unemployment in Lesotho shot up from a high Global Peace Index 2010
The chronic droughts that seem to signal the 23% in 2008 to 29.4% in 2009. The 2010 Report explores the relationships
impact of climate change in Lesotho are projected Read the report: What will it take to! achieve the between peace and economic wealth and brings
to become more severe, and could squeeze Millennium Development Goals? a fact-based approach to establishing the
cultivable land from an already slim 10% to a conditions and causes of peace while analysing
mere 3% in 25 years. Diabetes cases to double by 2030 in Africa trends in peacefulness over the last four years.
"While other factors contribute to droughts and Without a major breakthrough in preventing and The Global Peace Index is the first study ever to
the shrinking of cultivable land, climate change treating diabetes, the number of cases in sub- rank the nations of the world by their
exacerbates the situation", said a UN Saharan Africa is projected to double, reaching peacefulness.
Development Programme (UNDP) assessment of 24 million by 2030, according to the Brussels- Once again Botswana is ranked as one of the
countries' progress towards achieving the eight based International Diabetes Federation (IDF). world's most peaceful countries, as well as the
UN Millennium Development Goals (MDGs), Read the report published by The Lancet most peaceful country in Africa with an improved
which range from halving extreme poverty to overall ranking. Botswana's worldwide ranking in
halting the spread of HIV/AIDS and providing AFRICA is not spending enough on food the 2010 Index was 33 out of the 149 countries
universal primary education by 2015. "Africa is now facing the same type of long-term measured in the survey, placing it just behind
Also, in 2009 the global recession took out more food deficit problem that India faced in the early Singapore, France and the UK and otherwise well
than a million jobs in neighbouring South Africa, 1960s", says a paper by the International Food ahead of most European countries as well as the
especially in the mining sector, a traditional Policy Research Institute (IFPRI), a US-based United States (85).
source of work and income. Therefore, think-tank.
Read Public Spending for Agriculture in Africa: Source - Vision of Humanity
Trends and Composition.
The case for investing in Africa - McKinsey
AFRIKASOURCES CONSULT Ltd is a multiservice
The July 2010 McKinsey Quarterly featured articles by McKinsey consultants development consulting firm that provides tailor-
and outside experts on the future of Africa, as well as interviews with made expertise and services to governments,
international organizations, private companies and
prominent Africans. projects managers...
Africa was among the fastest-growing parts of the world between 2001 and We offer independent expert advices and practical
2008, with average growth of 5.6 percent a year. While the commodity boom support services in the effective implementation of
played a role, stable macroeconomic conditions coupled with structural development strategy, helping our clients identify
reforms—including the privatization of state-owned enterprises and lowered best value, manage risk, and realize higher levels of
success from their programme and initiatives.
barriers to competition—underpinned the impressive growth. It was accompanied by large amounts Our capabilities are grouped into the following
of foreign direct investment (which more than tripled during these years), including inflows from the areas, which run horizontally throughout our
Gulf countries and from emerging Asia (China and India). market sectors:
Africa’s economic growth is creating substantial new business opportunities that multinational • Consulting - Advising clients on the practical
implementation of development strategy from
companies often overlook. New projections from the McKinsey Global Institute (MGI) show at least the earliest stages of project lifecycles.
four categories that together could be worth $2.6 trillion in annual revenues by 2020 (exhibit). In • Managed Solutions - Providing teams of
Lions on the move: The progress and potential of African economies, MGI reviews the prospects of experienced, specialist practitioners to manage
the continent’s consumer-facing sectors (retailing, telecommunications, and banking, among others), and implement client project.
agriculture, natural resources, and infrastructure. • Monitoring and evaluation, planning at
regional, national and local level, logical
Consumer sectors—the largest opportunity—are already growing two to three times as fast as those framework analysis, training and workshop
in the countries belonging to the Organisation for Economic Co-operation and Development facilitation, project management
(OECD). This growth will create more consumer markets large enough to attract multinational • Lobbying, “spin doctor”, “image building”
companies.
Africa’s agriculture holds enormous potential for companies across the value chain. With 60 percent
of the world’s uncultivated arable land and low crop yields, Africa is ripe for a “green revolution” like
those that transformed agriculture in Asia and Brazil. The barriers to raising production in Africa are
well-known and complex, but if they could be overcome, MGI estimates that the continent’s
agricultural output could increase from $280 billion a year today to $500 billion by 2020 and as much
as $880 billion by 2030.
But most international businesses are still not very aware of Africa’s investment opportunities.
is Advisor in Investment Strategy, Sustainable
Information costs are high: Africa is fragmented into many different countries, and even in aggregate d e ve l o p m e n t p o l i c i e s a n d S t ra t e g i c R i s k
the continent is a fairly small economy. For several decades, investor ignorance did not matter: with management.
few exceptions Africa’s economies were too badly run for there to be many opportunities for firms of He has worked on investment strategies and
integrity. But there has been a sea change—Africa is on the move. There will be ups and downs, but strategic risk evaluation in France and Africa for the
investors from the countries of the OECD who remain set in their ways may be missing a giant last 10 years. He’s been involved in various projects
in India, China, Zambia, Djibouti, Egypt, Senegal
business opportunity if they fail to pay attention to the changes afoot. and has worked for COMESA on conflicts
prevention
Explore the complete package online at mckinseyquarterly.com/Africa He’s based in Cairo [EGYPT].
Afrikasources advises on strategic risk management in Africa! 3