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African Business 2021

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The 2021 edition of African Business is the second issue of this useful guide to business and investment on the continent. The positive reception accorded the inaugural edition in 2020 was encouraging and we are optimistic that this publication and future issues will continue to meet the need for timely and relevant information in an exciting time for African business. African Business 2021 has articles on recent trends plus overviews of the key economic sectors on the continent and regional and country profiles. There is an in-depth analysis of the implications for trade on the continent of the introduction of the African Continental Free Trade Area agreement (AfCFTA) and an article on the growth and importance of exploration for minerals, gas and oil. Namibia and Botswana feature in an article on how cooperation can drive economic growth and an opinion piece focusses on the role that digital technology can play not only in the financial sector, but in the driving progress in a broader sense. Global African 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:

Elections were held

Elections were held across the region in 2020. extend to 10 months and cattle, sheep and goats graze on grassland. Cotton is the main cash crop and food crops are groundnuts, sorghum and millet. Further south is the Sub-Humid Zone which includes Guinea-Bissau, Benin and the central parts of Nigeria where grass and shrubland predominate. The Humid Zone comprises the Guinea Zone (annual rainfall up to 1 800mm) and the Forest Zone. Both areas have tsetse fly, so livestock is less common. Multiple crops are cultivated and when dense tropical forests are cleared in the south, the land can carry oil palms, coconuts, rubber and cocoa (FAO). Economy The member states of the Economic Community of West African States (ECOWAS) are Benin, Burkina Faso, Cabo Verde, Côte d’Ivoire, the Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo. The languages in which ECOWAS conducts its business reflect the varied colonial history of the region: French, English and Portuguese. The main body of ECOWAS is The Authority of Heads of States and Government. Several West African countries held presidential and parliamentary elections in 2020, with incumbents doing well but facing objections from opposition parties. The peacekeeping force of ECOWAS has deployed joint military forces in times of instability, most recently in the Gambia. Climate The region’s climate varies from very dry in the north to humid in the south. In the Sahelian Zone the dry season can The Nigerian economy contributes about 70% of regional GDP, so when that large oil-producer experiences a recession, growth figures for the region are disproportionally affected. Low oil prices led to such a recession in 2016. After several good years of growth, average GDP growth in West Africa was down to just 0.5% in 2016. In 2017 it recovered to 2.5% and three of the six African countries in the World Bank’s top 10 in terms of growth predictions in 2018 were in West Africa: Ghana (8.3%), Côte d’Ivoire (7.2%) and Senegal (6.9%). Nigeria has also done better with better commodity prices and the completion of successful presidential elections in 2019. The African Development Bank’s West Africa Economic Outlook 2018 notes that most of the region’s economies are dominated by the service sector and that manufacturing is the smallest contributor to GDP in all of them. AFDB predicts that gross capital formation will grow quickly as the region moves away from reliance on demand from private consumption (70%). Several of the region’s economies are dependent on single commodities which makes them vulnerable to price shocks. More than one country is looking to join the existing producers of oil and gas, but the creation of stronger manufacturing bases is the key to more stable economies and more formal jobs. Resources Oil, gold, phosphate, iron ore, bauxite, diamonds. AFRICAN BUSINESS 2021 50

Senegal Senegal has a stable political system. Capital: Dakar Other towns/cities: Touba Population: 15.7-million (2020) GDP: .9-billion (2019) GDP per capita (PPP): 583 (2019) Currency: West African CFA franc (expected to change to Eco soon) Regional Economic Community: Economic Community of West African States (ECOWAS) and within that, WAEMU (West African Economic and Monetary Union) Land mass: 192 530km² Coastline: 531km Resources: Fish, phosphates, iron ore, zircon, gold. Main economic sectors: Fishing, mining and agriculture. Other sectors: Services, construction, fertiliser production, tourism, ship repair and forestry. New sectors for investment: Oil exploration, maritime support for gas, mineral beneficiation. Key projects: Emerging Senegal Plan (with support from IMF) includes competitiveness reforms, energy infrastructure upgrades. Chief exports: Food, live animals, chemicals (phosphates), minerals fuels and lubricants. Rice, cotton, tomatoes, corn, millet, sorghum, peanuts. Top export destinations: Mali, Switzerland, India. Exports to other ECOWAS nations was 39.5% of total exports in 2017. Top import sources: China, France, Nigeria, India. Main imports: Machinery and transport equipment (25%), lubricants, food, manufactured goods. Infrastructure: 16 496km of highway (5 957km paved); 906km rail network; floating dry dock at deepwater Dakar port; container terminal, three secondary harbours; Dakar Airport handles 1.5-million passengers and 20 000 tons of freight; 90% of urban population has access to electricity (28% rural). Installed capacity of 1 250MW (2018), double capacity in 2012. ICT: ranked first in West Africa by Deloitte for growth and quality of ICT. 15.2-million mobile subscribers (2016). ICT Development Index (ITU) ranking: 14 in Africa, 142 in world. Climate: Dry and humid seasons determined by winter wind (northeast) and hot harmattan wind in summer (south-west). Religion: Majority Muslim, small Christian community. Modern history: The aftermath of colonial rule saw several state boundary changes. A so-called Mali Federation broke up soon after being granted independence from France in 1960 and Mali went on its own. Senegal joined with the Gambia to form Senegambia, but this was dissolved. Between independence from France in 1960 and 2019 Senegal had five executive presidents. President Macky Sall won a second term in 2019 but a change to the constitution means he will serve five years, not seven, in his second term. The country is named for the Senegal River which rises in Guinea (south of Senegal), runs through eastern neighbour Mali, before forming the northern border of the country with Mauritania. The Republic of Gambia is on both sides of the Gambia River and is surrounded on all sides by Senegal. 51 AFRICAN BUSINESS 2021

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