Category Archives: General

General

Africa’s phone users reach 700 million

Mobile phone subscriptions are now almost eight times higher in Africa than in 2000, reaching about 700 million. According to a new report by the International  Telecommunications Union, mobile technology has played a crucial role in promoting financial inclusion in sub Saharan Africa, where fewer than 20 per cent of households have access to formal financial services. … Mobile phone banking services are especially prevalent in Kenya and penetration rates are also relatively high in Uganda and Tanzania. The other countries with high mobile money account penetration rates are Côte d’Ivoire, Zimbabwe, Botswana, Rwanda and South Africa.

Regulaory reforms and liberalization have also benefited local mobile operators, with countries such as Ghana, Nigeria and Tanzania having more than five local operators.

The report said sub Sahara Afric’s greatest development change is to move from an economic growth path based on commodity exports to a more sustainable industrial and services path. The mobile technology revolution can support and underpin this economic diversifications, experts say.

Source: African Courier, June/July 2016

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General

The long view for Africa

While many question Africa’s achievement over the last decade, there is a greater perspective needed to show how far Africa has just come.

Certainly, Africa is not monolithic –   it’s 54 Africas –   but just if you count up the GDP figures for the whole continent, it averages 5 % growth per year over that period, according to the world bank –   a strong long term position that is well above the global average of 3 % over the last decade..

Since 2000, Africa has also seen a 200 % increase in intra-continental trade and trade with the rest of the world. Fast forward, Africa continues to house some of the world’s fastest growing economies and despite the recent collapse in commodity prices, private equity investment grew by 51 % last year.

At least a dozen economies have grown by more than 6 % per year for six years or more.

Source: AI, May 2016

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African startups need foreign investment – booming middle class

Nigeria’s population will be over 440m by 2050

Historically, fast growing African tech companies needing an immediate capital injection would have to reach out to foreign investors for this funding.

The need for investment, whether foreign or domestic, is crucial to both established an startup technology companies in Africa.

As most companies are unprofitable for a couple of years, capital is required to disrupt the current status.

Positive trends

The changing demographics in most African countries are helping consumer focused technology companies to reach better sales figures. A perfect storm of increasing smartphones penetration, improving disposable income and the rise of a highly connected younger generation is boosting this sector

Positive trends

There are almost 1bn Africans on the continent; millions are coming online each week, almost via the mobile, which is what’s driving demand. Soon, there will be more than 400m smartphones on the continent. The mobile is the most powerful communications and technology tool on the continent.

It is no surprise that many successful tech startups are based in Nigeria, Based on current projections, Nigeria’s population is forecast to grow to over 440m by 2050 and see a rapidly increasing middle-class population, with commerce spending in the country on track to total $8bn by 2025-

One thing is for sure – this is only the beginning of Africa’s tech boom.

Source: African Business, May 2015

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World Bank raises forecast for 2015 global crude prices

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Washington – The World Bank is nudging up its 2015 forecast for crude oil prices from 53 dollars in April to 57 dollars per barrel after oil prices rose 17 per cent in the April to June quarter.

The forecast is contained in the bank’s latest Commodity Markets Outlook released on Wednesday.

The bank said energy prices rose 12 per cent in the quarter, with the surge in oil offset by declines in natural gas and coal prices.

However, it said it expected energy prices to average 39 per cent below 2014 level.

“Natural gas prices are projected to decline across all three main markets including the United States, Europe and Asia.
Continue reading World Bank raises forecast for 2015 global crude prices →

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General

Malaysia is the largest Asian investor in Africa

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Three reasons why we should do business with Singapore. However, Singapore has already reached a developed nation status. Malaysia is still developing (some call it semi-developed, because, absent a few economic indicators, it has all the markings of a developed nation). Therefore, it has more in common with Nigeria. It’s also not Singapore, but Malaysia that has the largest Asian investment in Africa. It’s also Malaysia, not Singapore that sends aids and its people to help Africans. Nigeria will also benefit from how Malaysia is able to keep its cost of living so low; one example, oil prices are 60 percent cheaper in Malaysia than Singapore and Thailand.
Malaysia is ahead of China in terms of the size of its direct foreign investment (FDI) into Africa and the gap is widening. A survey of foreign investment into and out of the five BRICS countries, published on the eve of their summit in South Africa and while new Chinese President Xi Jinping visits the continent, revealed that China’s march into Africa has lagged behind the flow of cash from Kuala Lumpur. In 2011, Malaysia was third largest investor in Africa overall, only behind the United States and France. China came fourth and India fifth.
… France and the Malaysia is ahead of China in terms of the size of its direct foreign investment (FDI) into Africa and the gap is widening United States also have the largest historical stock of investments in Africa,” Reuters reported, “with Britain in third place and Malaysia in fourth, followed by South Africa, China and India.”
India has $14 billion invested in Africa; China 16 billion and Malaysia, $19.3 billion (about 24% of its FDI).

Source: Weekly Trust, April 18th 2015

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