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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:

Region: Southern Africa

Region: Southern Africa Mozambique’s northermost province has rich gas reserves, and a violent insurgency. and hinterland have experienced destructive cyclones in recent years and many parts of the region were hit by severe drought after 2016. South of the Zambezi River, semi-arid areas receive some rains, but temperatures remain high. In the savanna, temperatures are cooler than in the tropical areas. The South African Highveld comprises a temperate upland climatic region with temperatures that vary between warm and very cold depending on altitude and thunderstorms are frequent. A humid subtropical marine climate occurs on the south-east coast. On the southern coast, Mediterranean conditions occur. The member states of the Southern African Development Community (SADC) are Angola, Botswana, the Democratic Republic of the Congo, Eswatini, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Tanzania, Zambia and Zimbabwe. The executive arm of SADC has eight directorates which deal with matters such as policy, defence, trade, finance and investment, infrastructure, agriculture and social and human development. The Southern African Customs Union, which is based in the Namibian capital of Windhoek, is a customs union among Eswatini, Botswana, Lesotho, Namibia and South Africa. Climate The fact that Africa narrows in the south means that oceans play a greater role in climate than they do in the wider, northern part of the continent. The south is generally cooler and more humid. The eastern coast Economy The southern region is relatively well integrated and communications between states is supported by good infrastructure. South Africa has the most diverse economy with a sophisticated banking and financial services to back it up. Manufacturing, industry, retail and construction are other strong sectors. The regional economy’s growth has been affected by the weak performance of South Africa. Commodity price fluctuations have something to do with the slump, but the most important reason was an outbreak of looting that became known as “state capture”. Mining and tourism are key sectors across the region. In Malawi, 80% of the population are dependent on agriculture but productivity levels are low. A very stable country, Malawi has adopted a vision to lift its people out of poverty focusing on education, energy, agriculture, health and tourism. The Democratic Republic of the Congo is home to a vast array of minerals. Botswana is the world’s leading diamond producer. Mauritius is forging ahead as an investment destination in high-value fields. Investment in renewable energy in Tanzania is on the rise and Mozambique exports hydropower. The discovery of big gas fields off the coast of Mozambique could be a game-changer for the whole region but the province of Cabo Delgado is experiencing violent attacks. Energy group Total has committed to spending .9-billion on extracting gas. Resources Gas, oil, manganese, iron ore, diamonds, gold, zinc, copper, potash, phosphate, tantalum, ilmenite, rutile, cobalt, platinum group metals. AFRICAN BUSINESS 2021 54

Mauritius The island nation’s service industry is growing. Capital: Port Louis Other towns/cities: Vacoas-Phoenix, Beau Bassin-Rose Hill, Curepipe, Quatre Bornes Population: 1.37-million (2020) GDP: -billion (2019) GDP per capita (PPP): 300 (2017) Currency: Mauritian rupee Regional Economic Community: Southern African Development Community (SADC), Common Market for Eastern and Southern Africa (COMESA), Indian Ocean Rim Association Landmass: 2 040km² (all islands), Island of Mauritius 1 864km² Coastline: 177km Resources: Sugar cane, tea, banana, pulses, potatoes, fish. Main economic sectors: Sugar milling, textiles, tourism, financial services. Other sectors: Mining, chemicals, metal products, transport equipment, machinery. New sectors for investment: Creative sector (film), higher education, ICT, retail, medical tourism. Key projects: Positioning as a hub for the rest of Africa for logistics, re-export and trade. Smart city projects. Chief exports: Clothing, sugar cane, processed fish, molasses, cut flowers. Top export destinations: France, US, UK, South Africa, Madagascar, Italy, Spain. Top import sources: India, China, France, South Africa. Main imports: Chemicals, equipment, foodstuffs, manufactured goods, petroleum products. Infrastructure: Export Processing Zone; Sir Seewoosagur Ramgoolam International Airport at Plaisance about 50km from Port Louis, an airstrip at Plaine Corail on Rodrigues; 2 150km of roads, 98% paved; Port Louis harbour has a container terminal and terminals for sugar, oil, wheat and cement. ICT: Mobile subscriptions per 100 inhabitants: 151 (2019). Internet percentage of population: 58.6% (2018). ICT Development Index 2017 (ITU) ranking: 1 in Africa, 72 in world. Climate: Maritime subtropical modified by south-east trade winds. Cyclones can occur. Warm, dry winter (May to November): hot, wet, humid summer. A fertile central plateau is surrounded by mountains and the island is ringed by coral reefs. Religion: Hindu, Christian about 30% (majority Roman Catholic), Muslim, other. Modern history: Mauritius gained independence from the United Kingdom in 1968. English is the official language of the legislative body but Creole is the dominant language with Bhojpuri and French accounting for about 10% between them. Just two years before independence, Britain expelled about 2 000 residents of the Chagos archipelago and leased islands to the US for 50 years. A military base was built on the largest island, Diego Garcia. In 2019 the UN International Court of Justice gave a non-binding legal opinion that the islands had not been legally separated and that Britain should end its control. Former President Sir Anerood Jugnauth became Prime Minister for the third time in 2014 but resigned in 2017 to make way for his son Pravind Kumar Jugnauth, the leader of the Militant Socialist Movement party. The president is head of state in a Westminster-type system and the role is largely symbolic. 55 AFRICAN BUSINESS 2021

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