3 years ago

African Business 2020 edition

  • Text
  • Agenda
  • Business
  • Invest
  • Union
  • Industry
  • Sustainable
  • Development
  • Regions
  • Trends
  • Sectors
  • Afcfta
  • Trade
  • Investment
  • Africa
  • Global
  • Continent
  • Projects
  • Economic
  • Infrastructure
  • Countries
A unique guide to business and investment in Africa. Global Africa Network is proud to launch this inaugural edition of African Business 2020 at a time of energetic planning for a prosperous future for the continent. The African Union’s Agenda 2063 is much more than a document about a hoped-for future, it contains concrete goals and deliverables. The Programme for Infrastructure Development in Africa (PIDA) and the development finance institution, the African Development Bank (AfDB) are already rolling out valuable projects that are changing the reality on the ground in vital areas of the African economy. Perhaps the most significant event of recent times is the signing by African leaders of the African Continental Free Trade Area agreement (AfCFTA) which will bring together all 55 member states of the African Union and cover a market of more than 1.2-billion people. African Business 2020 has articles on all of these recent trends, plus overviews of the key economic sectors and regional and country profiles. In 2019 Ethiopian Prime Minister Abiy Ahmed received the Nobel Peace Prize for peace-making efforts in his region. The economic dividends of peace are beginning to be felt. In 2020 South African President Cyril Ramaphosa assumed the mantle of AU Chairperson. He brings to the role considerable experience in conflict management, constitution-writing and seeking consensus. Global Africa Network is a proudly African company which has been producing region-specific business and investment guides since 2004, including South African Business and Nigerian Business, in addition to its online investment promotion platform


IT’S A JUNGLE OUT HERE. A CONCRETE ONE TO BE PRECISE. South Africa: a nation that continues to inspire internal and continental transformation Since the advent of democracy 26 years ago, South Africa has been instrumental in promoting its African agenda on the premise of “African solutions to African problems”. This is based on the idea that Africans and African policymakers are inherently better suited to understanding and hence developing solutions to the challenges faced by its citizens. At the forefront of this common purpose is the drive to promote economic growth and sustainable development, not just for South Africa, but also for the continent. As part of these efforts domestically, President Cyril Ramaphosa in 2018 launched an ambitious five-year investment drive which seeks to raise 0-billion in domestic and international investments as a means to reignite the country’s economy. First successes were recorded at the inaugural South Africa Investment Conference 2018, where major local and international corporates pledged close to -billion towards investment in South Africa. The second South Africa Investment Conference built on the success of the inaugural event, with companies committing to invest a further .5-billion. Last year’s event was a continuation of government’s approach to engaging with the domestic and international business community. Rather than being a talk shop, the conference served as a platform for, among other things: • Announcing bold reforms to improve the ease of doing business • Highlighting future growth opportunities in South Africa and • Showcasing bankable projects that companies can consider for investment. The administration under President Cyril Ramaphosa has made the improvement of the country’s investment attractiveness a key priority. In his 2018 State of the Nation Address he notes, “We are urgently working on a set of priority reforms to improve the ease of doing business by consolidating and streamlining regulatory processes, automating permit and other applications, and reducing the cost of compliance.” But South Africa is not only focussed on boosting its own economy, it is also committed to continental growth for a prosperous Africa. As the incoming Chair of the African Union in 2020, South Africa is poised to assume an influential position to give substance to the African Continental Free Trade Area (AfCFTA) which came into force on 31 May 2019 for the 24 countries that had deposited their instruments of ratification. Intended to create the world’s largest free trade area of over a billion people, there is no better and more sustainable way to bolster the economic growth of South Africa and the continent

than through accelerated intra-Africa trade. President Ramaphosa also recognises fellow African leaders’ shared commitment to fundamentally transforming Africa’s fortunes. As President Ramaphosa says, “The new generation of leaders of Ahmed Abiy’s ilk are bold, courageous and are focused on creating an Africa that is at peace with itself and growing the economies of African countries through innovation, infrastructure development and trade.” Investing in Africa South Africa has always been and remains committed to driving continental growth. As attested by the latest EY Africa Attractiveness Report of 2019, South Africa continues to be the most extensive investor into the rest of the continent, with the widest geographical spread, across the most sectors, among African nations. For example, 2018 saw South African investors place a record 10 projects in Nigeria, totalling 5-million. This was by far its greatest FDI commitment over the last five years. Kenya also saw a sharp rise in South African inward-bound investment during 2018, attracting 0-million in capital spread across six projects. On the other hand, South Africa’s FDI into both Ghana and Mozambique slowed in 2019, although from a relatively high base. These investments affirm South Africa’s strong commitment to trading with the continent, with the country ranking fifth- largest FDI investor into the continent globally. Elsewhere, the Minister responsible for Trade and Industry and Economic Development, Mr Ebrahim Patel, emphasised AfCFTA as the single biggest initiative that will expand markets for South Africa’s products and facilitate entry into those markets. AfCFTA agreements will, he says, “lay the basis for increased intra-African trade and can cement the continent’s position as the next growth frontier”. By promoting its investment proposition, location, infrastructure and logistics, South Africa has positioned itself as a destination of choice. As the most industrialised country on the African continent, South Africa continues to make massive investments in infrastructure development, with many international companies utilising the country as a strategic base for their operations on the African continent. South Africa has emphasised Africa’s progressive future and the need, now more than ever, for African states to trade with each other and, through the AfCFTA, improve access to existing markets, while forging access to new markets. “As African nations, there has never been a better time to deepen our collaboration to ensure the African Continental Free Trade Area, our most ambitious collective venture yet, is a success. This is an opportunity to grow our economies and to use our considerable collective resources to uplift our people,” says President Ramaphosa. As the incoming Chair of the African Union, South Africa will put great emphasis on giving effect to this agreement. Contact details Dr Judy Smith-Höhn, General Manager, Global Markets: Dr Petrus de Kock, General Manager, Research: Website: 1 AFRICAN BUSINESS 2020

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