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Journal of African Business Issue 4

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Welcome to Journal of African Business, your guide to business and investment on the continent. The fourth edition of Journal of African Business is the second issue of this magazine to be published as a quarterly. The first two journals were published as annual publications in 2020 and 2021. The Journal of African Business covers a wide range of subjects within the broader economic sectors: energy; mining and exploration; trade; finance; technology and tourism. In addition to this, special features on topical matters are included, along with country profiles.


COUNTRY PROFILE KENYA East African hub aims to diversify its economy. KENYA Marsabit Eldoret Kisumu Nakuru NAIROBI Malindi Mombasa Lamu Photo: Mustafa Omar on Unsplash Nairobi plays a significant role in the economy of the region and Kenya aims to position the country more firmly as a regional hub for finance and business. Major investments in infrastructure (both national and regional) are underway to link new ports by rail to the interior. Work is being done to diversify the economy away from agriculture and tourism, both industries which have external vulnerabilities. Agriculture is rain-fed and much of it takes place near the coast so droughts and cyclones have an impact. Agriculture currently contributes about a third of GDP and employs nearly two-thirds of the employed population. Tourism has had bad periods because of terrorist attacks and Covid-19 but it has proved resilient as the country has so much to offer. As a net importer of fertiliser, fuel and wheat, Kenya has felt the impact of the Russian invasion of Ukraine. Uhuru Kenyatta has been president since 2013, having won elections characterised by violence and accusations of irregularities. He won a re-run election in October 2017 when the Supreme Court overturned his victory in an earlier election. He is the son of Kenya’s founding president, Jomo Kenyatta. Maasai Mara National Reserve. Photo: Craig Stevenson on Unsplash Capital: Nairobi. Other towns/cities: Mombasa, Kisumu, Nakuru, Ruiru, Eldoret. Population: 55.8-million. GDP: .9-billion (2020). GDP per capita (PPP): 200 (2020). Currency: Shilling. Regional Economic Community: East African Community (EAC), Common Market for Eastern and Southern Africa (COMESA), Intergovernmental Authority on Development (IGAD). Landmass: 582 646km 2 . Coastline: 536km. Resources: Bananas, cassava, coffee, maize, mangoes, sugar cane. Coal, fluorspar, gold, gemstones, iron ore, talc, soda ash, rare earth minerals, gemstones. Main economic sectors: Agriculture, telecommunications, finance. Other sectors: Manufacturing (agro-processing), industry, services, small-scale consumer goods, horticulture, oil refining, tourism. New sectors for investment: Water supply (dams and waterworks), power generation, horticulture, manufacturing, transport, tourism (conference facilities), fintech. Key projects: Vision 2030 is a long-term development strategy that aims to achieve middle-class status for the country by promoting external trade. The “Big Four” priorities are manufacturing, healthcare, housing and food security. Chief exports: Coffee, cut flowers, refined petroleum, tea, titanium. Top export destinations: Uganda, USA, Netherlands, Pakistan, UK, UAE, Tanzania. Main imports: Cars, medicines, iron products, refined petroleum, wheat. Top import sources: China, UAE, India, Saudi Arabia, Japan. Infrastructure: Airports 197, of which 16 paved; pipelines 4km oil, 1 432km refined products; railways 3 819km; roads 177 800km (14 420km paved, 8 500km highways). Electrification 85% (2019). Major seaports: Kisumu, Mombasa. LNG import terminal: Mombasa. ICT: Mobile subscriptions per 100 inhabitants: 114 (World Bank, 2020). Internet percentage of population: 30%. ICT Development Index 2017 (ITU) ranking: 13 in Africa, 138 in world. Climate: Mount Kenya is highest point at 5 199m. Great Rift Valley bisects the central highlands. Tropical at coast to dry in interior and fertile plateau in the west. Abundant wildlife supports tourism. Lake Victoria is the world’s largest tropical lake and the second-largest fresh-water lake. Languages: English and Kiswahili (official), several indigenous. 28

COUNTRY PROFILE GHANA Investors are putting their money into Ghanaian gold. Oshakati Grootfontein NAMIBIA Bolgatanga Tamale Swakopmund WINDHOEK Walvis Bay Luderitz Keetmanshoop GHANA Kumasi Ho Tarkwa Obuasi ACCRA Cape Coast Sekondi Tema Photo: AngloGold Ashanti I Independence was declared in 1957, making Ghana an inspiration for other African states. The first president of Ghana, Kwame Nkrumah, was an advocate of pan-Africanism and was one of the founders of the Organisation of African Unity. A succession of coups and periods of military rule followed Nkrumah, ending only with the signing of a new constitution in 1992. Human-rights lawyer Nana Akufo-Addo won the presidential election in December 2016 and again in 2020. Agriculture contributes about 20% of GDP with cocoa exports providing valuable foreign exchange. The country encompasses diverse landscapes and climate regions. The northern savannah belt has been subject to both floods and droughts while coastal erosion is also a problem, particularly in the east. There are extensive forests. Offshore oil production began in 2010. This has had a significant effect on the economy, not only in creating more revenue but making Ghana subject to the volatility of world markets. Further oil fields were added in 2016 and 2017 and a gas-processing plant was commissioned at Atuabo. One of the four British colonial territories that made up the modern state of Ghana was called Gold Coast, so it is no surprise that Ghana is a major gold producer. New mining projects are drawing increased interest from Canadian and Australian miners. Black Star Square. Photo: Ifeoluwa A on Unsplash Capital: Accra. Other towns/cities: Kumasi, Tamale, Sekondi-Takoradi. Population: 33.1-million. GDP: 4.8-billion (2020). GDP per capita (PPP): 300 (2020). Currency: Cedi. Regional Economic Community: Community of Sahel-Saharan States (CEN-SAD), Economic Community of West African States (ECOWAS). Landmass: 238 533km 2 . Coastline: 539km. Resources: Diamonds, gold, manganese and bauxite. Unexploited deposits of copper, chrome, iron ore, mica, nickel, limestone and quartz. Crude oil and natural gas. Cassava, cocoa, maize, oranges, palm oil, pineapples, plantains, rice, taro, yams. Main economic sectors: Mining, agriculture and hydrocarbons. Gold mining and the cocoa industry are major earners of foreign exchange. Industrial minerals. Other sectors: Food-processing, timber, light manufacturing, aluminium smelting, cement. New sectors for investment: Fintech, automotive, telecoms, FMCG. Key projects: Ghana Vision 2020 aims for the country to be defined as a developed country by 2029 and newly industrialised in the decade after that. Manufacturing is promoted under the One District, One Factory plan. Chief exports: Gold, crude petroleum, cocoa products, manganese, cashews. Top export destinations: Switzerland, India, China, UAE, South Africa. Top import sources: China, Nigeria, USA. Main imports: Metal tubing, ships, cars, refined petroleum, rice. Infrastructure: Airports 10, of which 7 paved; railways 947km; roadways 94 203km (14 948km paved); pipelines 681.3km gas, 11.4km oil, 435km refined products. Electrification, 85%. Seaports: Takoradi, Tema. ICT: Mobile subscriptions per 100 inhabitants: 130 (World Bank, 2020). Internet percentage of population: 58%. ICT Development Index 2017 (ITU) ranking: 7 in Africa, 116 in world. Forest: 21.2% (2018 est). Climate: Tropical. Warm and dry along south-east coast, hot and humid in south-west. The north is hot and dry with harmattan winds from January to March in north-east. Religion: Christianity, Islam, indigenous beliefs. 29

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