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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: https://www.globalafricanetwork.com

South Africa An

South Africa An extensive renewable energy programme has been rolled out. Capital: Pretoria (Tshwane) Other towns/cities: Johannesburg, Cape Town, Durban, Port Elizabeth, East London, Bloemfontein Population: 56.4-million (2020) GDP: 1.4-billion (2019) GDP per capita (PPP): 341 (2019) Currency: Rand Regional Economic Community: Southern African Development Community (SADC), Southern African Customs Union (SACU) Land mass: 1 214 470km² Coastline: 2 798km Resources: Coal, gold, chromium, antimony, iron ore, manganese, nickel, zinc, rare earth elements, uranium, diamonds, platinum, copper, corn, wheat, sugarcane, fruits. Main economic sectors: Mining, automotive manufacture, agriculture, tourism, financial. Other sectors: Agri-processing, chemicals, fertiliser, iron and steel, machinery, food and beverages, boat and yacht building, ship repair. AFRICAN BUSINESS 2021 New sectors for investment: Renewable energy, water, tourism. Key projects: The National Development Plan (NDP) aims to eliminate poverty and reduce inequality. Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). Chief exports: Iron ore, manganese, gold, diamonds, platinum, other metals and minerals, machinery and equipment, agricultural products. Top export destinations: China, US, Germany, Japan, India, Botswana, Namibia. Top import sources: China, Germany, US, Saudi Arabia, India. Main imports: Machinery and equipment, chemicals, petroleum products, scientific instruments. Infrastructure: Roads 750 000km, of which 158 124km paved (2016); railways 20 986km (2014); 144 paved airports; four crude oil refineries; multi-product pipeline from coast to inland areas; major ports at Cape Town, Durban, Port Elizabeth, Richards Bay and Saldanha Bay; LNG import terminal at Mossel Bay. ICT: Mobile phone subscriptions per 100 inhabitants: 168 (2017). Internet percent of population: 54% (2016.) ICT Development Index 2017 (ITU) ranking: 3 in Africa, 92 in world. Climate: Coastal areas range from dry along the Atlantic Ocean, Mediterranean in the south-west to subtropical on the east coast. Interior is mostly dry and semi-arid. The Drakensberg Mountains separate the east coast from the interior. Religion: Christian, traditional, Muslim. Modern history: After an intense struggle against the racist policy of apartheid, democratic South Africa installed Nelson Mandela as its first president in 1994. Major gains have been made housing and social grants, but there have been poor outcomes in education and the state had to reverse earlier denialist responses to HIV/Aids. President Cyril Ramaphosa was inaugurated in February 2018 and his party promised to put an end to widespread corruption. A judicial commission of enquiry into state capture is due to report in 2021. Ramaphosa became Chair of the AU in 2020. A large scheme to get private groups to invest in renewable energy has been revived amid hopes that more reliable energy supply can be achieved than is currently provided by the ailing state utility, Eskom. 56

Revenues from oil and tourism have dropped markedly. 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 West African Regional Economic Community, 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 counter-terrorism 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 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 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 used to receive about 11-million tourist arrivals. Egypt experienced a significant drop in revenue from tourism after the political upheavals of 2011. The Covid-19 epidemic will hit tourism hard across the region. 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. 57 AFRICAN BUSINESS 2021

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