Views
1 month ago

The Journal of African Business Issue 12

  • Text
  • African
  • Infrastructure
  • Businesses
  • Global
  • Climate
  • Sustainable
  • Economic
  • Opportunities
  • Agriculture
  • Practices
  • Africa
  • Esg
  • Business
  • Investment
  • Economy
  • Afcfta
  • Trade
  • Logistics
  • Energy
  • Renewables
Welcome to the March/April/May 2025 issue of The Journal of African Business. This unique guide to business and investment in Africa is your up-to-date guide to business and investment trends on the African continent.

WATERAROUND THE

WATERAROUND THE GLOBEExamples from different parts of the world give some insight into how waterwheeling could be applied at scale, whether it is in an industrialised nation or adeveloping country. These examples show that while water wheeling isn’t widelyadopted in the same structured way as in electricity, the concept of shared waterinfrastructure and cross-regional transfers does exist.California water transfers and exchangesCalifornia has a complex water market where water-rights holders, includingagricultural districts, municipalities and private entities, can trade water. This modelallows water to be transported through the state’s extensive water infrastructureto regions in need. Through these transfers, water agencies “wheel” or transportwater across existing pipelines and canals managed by state and local agencies.This helps mitigate shortages, especially during drought periods, by moving waterfrom surplus to deficit areas. California’s water trading is limited by infrastructurecapacity and regulatory barriers. Pricing, quality and accessibility are issues thatstill need addressing.Murray-Darling Basin Water MarketAustralia’s Murray-Darling Basin, see map, represents one of the largest managedwater markets, where water istraded between different users(farmers, towns, environmentalgroups) across states and regions.Water is transferred using ashared river system and canals,with water rights allocatedbased on availability and userneeds. Infrastructure managedby both state and federal bodiesenables the “wheeling” of wateracross state lines. This markethas significantly increased wateruse efficiency but has faced criticism over environmental impacts, high costs andcomplex regulatory frameworks.Desalination plant wheelingSome Gulf countries, like Saudi Arabia and the UAE, produce desalinated waterfor distribution across regions. The concept of “wheeling” water here is somewhatsimilar, as desalinated water is transferred over vast networks to areas where naturalwater sources are insufficient. Large-scale desalination plants (like those in Dubaior Abu Dhabi) pump water through extensive pipeline systems to supply urbanand industrial areas. These pipelines may cross different jurisdictions and involveshared management to balance supply and demand.The energy intensity of desalination, along with infrastructure maintenance andcoordination, requires significant investment and ongoing regional collaboration.Israel’s National Water CarrierIsrael’s National Water Carrier was designed to wheel water from the Sea of Galileein the north to the dry southern regions. This system distributes both natural anddesalinated water across the country, balancing seasonal and regional water needs.Managed by the Israeli Water Authority, this network includes pipelines, canalsand reservoirs. It allows for wheeling water to places in need while also reducingreliance on groundwater. The system has successfully increased water accessnationwide and serves as a model for other arid regions. However, maintenancecosts and water-quality preservation require ongoing oversight.Singapore-Malaysia Water AgreementSingapore imports much of its water from Malaysia under long-standingagreements. Water is wheeled across the border through pipelines, supplementingSingapore’s local reservoirs, desalination and reclaimed water supplies. Pipelinestransport raw water from Malaysia’s Johor River to Singapore, and in return,Singapore treats and supplies water back to Malaysia under agreed terms.This agreement has enabled reliable water supply for both regions, althoughpolitical tensions occasionally influence the stability of this arrangement.The Colorado River SystemThe Colorado River is an essential shared resource for seven US states and Mexico.Water is allocated according to legal agreements and various “water banking” andtransfer schemes allow states to store or “wheel” water between them, especially intimes of drought. States can transfer stored water or unused allocations to others inneed, with infrastructure like the Central Arizona Project (CAP) and All-AmericanCanal supporting these movements. A 2012 binational agreement also allows theUS to store water in Mexico’s reservoirs.Growing demand and dwindling river flow due to climate change have put thissystem under strain. Coordination between multiple stakeholders across nationalborders is another challenge.Wheeling involves using a shared network. In the context of electricity, a shared transmissionnetwork does the work. Water would be “wheeled” along canals to areas that need it.PHOTO: Panoramio on Wikimedia Commons28

DIGITAL INCLUSIONHOW 5G IS DRIVING INFRASTRUCTUREINVESTMENT AND DIGITAL INCLUSION IN AFRICABy Rami Osman, Director for Business Development, MediaTek Middle East and Africa.TThe advent of 5G is one of the most important technological developments for theDeveloping affordable smartphones will be a key factor in rolling out improved connectivity across the African continent.global economy in the last few years. High-speed mobile connectivity is catalysingdramatic digital transformations around the world, bringing to life exciting newapplications in the realm of spatial computing, the Internet of Things (IoT) and more.For Africa, underserved as it is by high-speed fixed-line broadband, 5G is anespecially important opportunity. It promises to allow people and small businessesthroughout the region to become more active participants in the global digitaleconomy. From entertainment to education and from business to medicine, 5Gcould be a game-changer.By opening wider doors to digital commerce and triggering massiveinfrastructure investment, 5G is expected to make a significant contribution toAfrica’s growth and prosperity. According to the GSMA, 5G is forecast to benefitthe Sub-Saharan Africa economy by -billion in 2030, accounting for 6%-plusof the economic impact of mobile.Paving the way for Africa’s digital futureAlready, regulators and operators are laying down the foundation for the 5G economy.As of September 2023, 27 operators in 16 markets across Africa had launchedcommercial 5G services. More markets are expected to follow soon, with operators inan additional 10 countries making a commitment to launch 5G in the coming years.Yet as this process of modernising Africa’s mobile networks accelerates, it’simportant that the average subscriber doesn’t get left behind. Regulators andoperators are working closely together to find pathways for investment into 5Gthat ensure services can reach mainstream customers.In addition, chipset manufacturers and handset makers have a critical role toplay in democratising 5G. In Sub-Saharan Africa, where GDP per capita is around 700, handset costs pose a major barrier in bringing affordable, high-speedmobile connectivity to everyone.Given the economic constraints faced by many African consumers, lowerpriced5G smartphones are essential for widespread adoption. Thus, one of thekeys to democratising 5G lies in bringing smartphone costs down, and that, inturn, relies on chip manufacturers bringing affordable chipsets to market.5G smartphones under 0The technology sector has already made some dramatic progress in lowering theproduction cost of 5G smartphones, with devices that cost 0-0 starting toreach the market. At MediaTek, we are committed to providing affordable hardwareplatforms that make 5G accessible.The MediaTek Dimensity 6020 system on a chip, or SOC, for example, enablessmartphone manufacturers to create devices with multi-gigabit speeds, excellentcameras, advanced gaming technologies and faster displays for the mass market.As 5G smartphones become more affordable and penetration increases, mobilenetwork operators are incentivised to invest in and expand their 5G infrastructure.This increased infrastructure boosts the availability and coverage of 5G networks,facilitating a virtuous circle of higher investment and deeper market penetrationacross urban and rural areas.Over time, affordable 5G smartphones can help bridge the digital divide byproviding low-income communities with access to high-speed Internet. Thisaccess enables greater participation in the digital economy, improved educationaland business opportunities and enhanced access to digital services, includingtelemedicine and e-government services.Perhaps as importantly, 5G will enable Africa to leapfrog legacy technologiesinto next-generation offerings. This could help a larger portion of the populationto experience the benefits of advanced technologies, such as IoT, augmented realityand artificial intelligence. This promotes technological literacy and drives overallsocietal progress.29PHOTO: Wayhomestudio on Freepik

Other recent publications by Global Africa Network: