Africa Digest : Trends and issues in macro environment Vol. 15

• Main Author: Burger, Johan
• Other Authors: Nanyang Business School
• Format: Newsletter
• Language: English
• Published: 2020
• Subjects: Business; Business::General; Africa; Macro Environment
• Online Access: https://hdl.handle.net/10356/142797
• 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 in Agriculture - Agriculture plays a significant role in the economy of every African country. Food security is a major objective of African governments, as well as the African Union and the African Development Bank. Despite continuous initiatives to improve the issue of poor food security, we see diversion from food cultivation to crops such as cannabis and other drug-related products (e.g. khat in Ethiopia). This is despite the fact that Africa’s annual imports of food amount to US$35 billion to US$41 billion. 2. Digital Trends - The Brookings Institution hails the Fourth Industrial Revolution as both a threat and an opportunity for Africa. We have seen a huge impact on the continent from phenomena such as mobile money, increasing the level of financial inclusivity of previously unbanked populations at an unprecedented scale. In addition, e-commerce shows steady growth, although not as rapidly as some hoped for. 3. Manufacturing Trends - Africa often talks about increasing the productivity of its manufacturing sectors. Yet we hear far too much talking and see not enough doing. In Kenya, the president adopted his Big 4 Strategy, which included boosting manufacturing as one of the strategic legs. The Ghanaian President adopted a policy of one district, one factory. In spite of this focus, a lot of work remains to be done. 4. Strong Growth of Mini-Grids in Africa - Africa’s growing need for electrical power attracts international companies to the renewables sector. Foreign companies are active in the production, sale, and installation of mini-grids and smaller-scale solar home systems. They also participate in the development of financing models tailored to the African consumer. 5. Sustainability Trends - Waste disposal and deforestation have become important policy issues in Africa. More governments ban plastic bags, while entrepreneurs and other institutions are using plastic and other wastes to create value added products.