Africa Digest : Trends and issues in macro environment Vol. 19

• 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/10356/143128
• 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. Developments in Agriculture - Food security is often an issue in emerging countries. Africa faces a challenge, as its food production is far lower than its potential. The root causes are the lack of technology and finance and archaic farming practices. Although these factors are understood and widely discussed, lack of funding limits progress in modernising agriculture in Africa. Observers see increasing diversification in the products produced in Africa. 2. Developments in Digital Technology - Technology is an essential enabler. The Fourth Industrial Revolution promises digital solutions to many of mankind’s challenges. The digital services sector greatly increased levels of financial inclusion in Africa. The same technology now disrupts the business models of established players in banking and financial services. Digital technology enables small investors to contribute to the funding and productivity of the agriculture sector. However, its solutions are not available to all. A phenomenon sociologists call the digital divide prevents many Africans from accessing the advantages of digital technology. 3. Energy Developments - Energy will always be an important issue in Africa. The continent’s leaders constantly pursue affordable sources of energy. Approximately 620 million Africans are without access to electricity. However, discovery of gas and oil reserves in new areas will provide new sources both for energy and revenue. 4. Developments in Renewable Energy - Africa has a huge renewable energy (RE) potential, across all sources of RE: sun, wind, hydro, biomass and geothermal. The business model for the future of electricity in Africa is focused on RE. Some projects would pursue solar energy, others wind. Whichever resource is selected, it is undeniable that RE can alleviate Africa’s immense energy problems. 5. Developments in Sustainability - Sustainability in Africa, as elsewhere in the world, is an important collective goal. Phenomena such as global warming, waste disposal (especially plastic) and deforestation all contribute towards a planet whose capacity to sustain the global population is increasingly under severe stress. Governments play a crucial role in achieving sustainability.