Africa Digest : Trends and issues in business Vol. 8

• Main Author: Burger, Johan
• Other Authors: Nanyang Business School
• Format: Newsletter
• Language: English
• Published: 2020
• Subjects: Business; Business::General; Africa; Business Trends
• Online Access: https://hdl.handle.net/10356/142765
• Institution: Nanyang Technological University

The Africa Digest is a fortnightly e-newsletter scanning the key trends in the macro-environment and industry to promote knowledge and raise understanding of business in Africa. This issue explores: 1. Trends of China in Africa - China continues its drive to increase its presence and influence on the African continent. Its initiatives cover a broad range of sectors and include trade agreements, FDI actions and infrastructure building and financing. Many African countries that embraced China’s BRI programme, continue to support China in one way or another. The sections below provide information on the continuation of China increasing its footprint in Africa. 2. Africa investing in Africa - Investors in Africa originate from many countries: the USA, the UK, other EU countries, Russia, Turkey, the GCC states, China, Japan, India and Indonesia, amongst others. However, we also see a number of African countries investing in other African countries. 3. Fintech and Mobile Money Trends - As indicated in previous digests, the fintech and mobile money sub-sector in Africa is booming. Local players have access to financing from abroad, where foreign investors are keen to pursue growing mobile money applications. New players entering the sector must battle for market share. Not only the telecommunications companies but also the banks now target the previously unbanked people of Africa for their next growth phase. 4. Investments and Economics - Africa’s governments seemingly struggle to find their optimal investment strategy. While some liberalize their regulatory frameworks, others adopt an even more centralised approach. We see some adopting a strategy of privatising their state-owned enterprises, while others attempt to confront challenges by nationalising certain assets. Many also adopt strategies to stimulate their economic growth by providing incentives such as industrial parks and special economic zones. 5. Developing Africa’s Pharmaceutical Industry - Africa is primarily an importer of pharmaceutical products, with little local production. It mostly imports generic versions of prescription drugs, in view of the cost implications of the original product. With a population of 1.2 billion set to double to 2.4 billion by 2050, and a strongly growing consumer class, the need for medication is set to grow strongly as well.