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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

PROFILE Region: North

PROFILE Region: North Africa There are several ways of defining North Africa. Climate The Community of Sahel-Saharan States (CEN-SAD) covers many countries, including most of West Africa, but includes neither Algeria nor Liberia, which is a member of the Economic Community of West African States, ECOWAS. An effort began in 1988 to create the Arab Maghreb Union to strengthen ties between five states on the northern coast of Africa, but not including Egypt. It never got off the ground. The member States of CEN-SAD are: Benin, Burkina Faso, Cape Verde, Central African Republic, Chad, the Comoros, Djibouti, Egypt, Eritrea, the Gambia, Ghana, Guinea-Bissau, Ivory Coast, Libya, Mali, Mauritania, Morocco, Niger, Nigeria, São Tomé and Príncipe, Senegal, Sierra Leone, Somalia, the Sudan, Togo and Tunisia. The population of the CEN-SAD area was estimated at 553-million in 2016 (UNCTAD). The Sahel-Sahara region experienced waves of instability after the Libyan revolution with armed Islamist groups rising in Mali and northern Nigeria. The G5 Sahel Joint Force was established in response in 2017. A CEN-SAD counterterrorism centre is based in Cairo. The three outstanding features of North Africa help to define its climate: the Nile River in the east, the Atlas Mountains in the west and the Sahara Desert to the south, the largest sand desert on earth. Mediterranean conditions occur along the coast, bringing rain in winter and relatively mild temperatures. Crops include onions, figs, olives, oranges, cauliflower and tomatoes. The hot desert and semi-arid regions are located further inland. Temperatures range widely and can reach 130°. Desert crops include cotton and date palms. Economy The Arab Spring and falling oil prices had a significant impact on the economies of North Africa. Libya’s political turmoil had a huge impact on the region’s GDP. Oil production levels rose after 2016 but are still only a fraction of levels achieved before the revolution. North Africa contributes disproportionately to African GDP growth figures, up to 40% (African Development Bank). Most of the economies of North Africa have diversified production systems and manufacturing and industrial capacity. Morocco receives about 11-million tourist arrivals. Egypt experienced a significant drop in revenue from tourism after the political upheavals of 2011. By 2017, a recovery was underway and Egypt earned .1-billion and Tunisia earned .17-billion (World Travel and Tourism Council). Casablanca Finance City has been established in Morocco in an attempt to attract investors to Africa. Tunisia has plans to privatise large parts of its economy and Egypt is building a mega-city to ease the overcrowding in Cairo. Morocco and Tunisia have integrated supply chains which are linked to the European market. Other countries in the region have focussed on the upstream side (AfDB). Resources Oil, natural gas, phosphates, iron ore. AFRICAN BUSINESS 2020 70

PROFILE Morocco The Green Morocco Plan is boosting the agricultural sector. Capital: Rabat Other towns/cities: Casablanca, Fez, Tangiers, Marrakesh Population: 34.3-million (2018) GDP: 7.9-billion (2018) GDP per capita (PPP): 586 (2018) Currency: Dirham Regional Economic Community: Community of Sahel-Saharan States (CEN-SAD) Landmass: 446 300km² Coastline: 1 835km Resources: Fish, salt, phosphates, iron ore, manganese, lead, zinc. Main economic sectors: Fishing, phosphate mining, automotive, tourism. Other sectors: Textiles, chemicals, clothing, agriculture. New sectors for investment: Transport and logistics, renewable energy (target of 50% of installed capacity from RE by 2030), food processing, construction, leather. Key projects: Industrial Acceleration Plan stresses diversification (automotive, aeronautics and electronics). Investment into Peugot plant will double capacity. Reform of tax system. Combating poverty measures through job creation and social programmes. Green Morocco Plan. Chief exports: Citrus fruits and market vegetables, semiprocessed and consumer goods (textiles), phosphates. Top export destinations: Spain, France, Italy, US. Top import sources: Spain, France, China, US, Germany, Italy, Turkey. Main imports: Crude petroleum, textile fabric, telecommunications equipment, wheat, gas and electricity, transistors, plastic. Infrastructure: Free trade zone at Tangiers; Tangier-Med (largest port in Africa and Mediterranean); LNG terminal at Jorf Lasfar; high-speed rail link between Tangiers and Casablanca; 944km gas pipeline; 57 300km of highway; oldest library in world, University of al-Quarawiyyin Library in Fez; 31 paved airports. ICT: 58% Internet users. ICT Development Index 2017 (ITU) ranking: 100. Climate: Northern part of country is Mediterranean, with wet winters and dry summers. Further south is semi-arid which becomes desert and the Atlas Mountains form a rain shadow for the interior. Religion: Predominately Muslim. Modern history: Situated between Europe and Africa and with coastal and desert regions, Morocco has experienced a wide variety of influences including a period under French rule from 1912 to 1956. Cultural influences come from African, Arabic, Berber and European sources. Morocco joined the African Union (AU) in 2017, having left the AU’s predecessor over that body’s recognition of the independence of Western Sahara. Morocco believes the region is part of its territory and the dispute is unresolved. Morocco also disputes Spain’s right to several coastal enclaves. Morocco is a kingdom and has been ruled by Mohammed VI since 1999. A new constitution was introduced after the “Arab Spring” of 2010, giving more powers to the prime minister and parliament. Huge investments into infrastructure are paying off. The country achieved an average capital investment rate of 34% between 2008 and 2018 (African Development Bank). 71 AFRICAN BUSINESS 2020

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