Thoughtful article. You only have to look at the US airline carriers (delta and united) growth in routes this year direct to Africa. . To underscore this shift in thinking about the continent. As well as it’s historic underinvestment.
With the sporting world about to shift its attention to South Africa for the next month, it could be a good time for countries to reassess their relations with the continent as a whole.
Two reports this week, one from U.K.-based think tankChatham House and one from consultancy McKinsey & Co, do just that.
McKinsey’s forecasts says sub-Sahara Africa is well-positioned to become the developing world’s “next great success story” and an investment target for those seeking new markets. [Read the report here.]
Meanwhile, Chatham House said that many Western nations are still weighed down by perceptions of Africa as an aid recipient rather than a strategic trading partner and risk missing opportunities that China and Brazil are already tapping into. [Read the report here.]
Why does it matter?
As Chatham House points out, Africa accounts for 40% of the world’s basic mineral resources, 10% of freshwater supplies and 15% of agriculture land. It’s also about to become a larger player in the world’s oil production.
The rise in prices for minerals such as gold and copper since 2000 has helped lift the continent’s GDP. McKinsey says its collective GDP as of 2008 was $1.6 trillion, roughly equal to that of Brazil’s or Russia’s, and that real GDP growth rose by 4.9% between 2000 and 2008, more than twice its pace of the 1980s and 1990s.
While the financial crisis in the past two years seriously cut African trade and reduced foreign investment, it’s picking up again.
Developing nations have latched onto Africa’s economic potential and have increased their share in Africa’s total exports and imports in 2009, Standard Chartered research shows — emerging economies increased their share of Africa’s total exports in 2009 to 40% from 33% in 2008 and for imports to 47% from 46%.
Chatham House compiled data for export and import values between different countries and the African continent, showing export values to Africa grew between 2006 and 2008 by about 50% for the U.S. to $29 billion and 87% for China to $50 billion.
Africa is also becoming a good destination for goods — Africa is urbanizing and has as many cities with populations of at least one million, just as Europe does, McKinsey says.
There are risks to growth and investment, however. The individual countries in Africa face serious challenges such as poverty and disease. Political uncertainty and corruption are also still strong in many countries.
“Wars, natural disasters or poor government policies could halt or even reverse these gains in any individual country,” research from McKinsey Global Institute said. “But in the long term, internal and external trends indicate that Africa’s economic prospects are strong.”
Goldman Sachs may have taken a lot of heat lately, but they may have done themselves a great favor by releasing their 2010 World Cup Research Report earlier this month. Running a little over 70 pages, it's a remarkably in-depth summary of each country in this year's finals, including football prowess, economic state, and political situation. Furthermore, it provides a primer on the potential hosts of the 2018 and 2022 World Cups, and, unsurprisingly but more than interesting, an examination of economic growth and decline vis-a-vis the international football teams of respective countries.
Some of the most noteworthy things to take away: like most of the speculation has focused on, the report predicts a European-hosted cup in 2018, and a return to the U.S. in 2022. (Also included are bid pitches from Russia, England, and the U.S.) Interestingly, this is what it says about the U.S. bid:
The sport has taken roots in the USA and the market is quickly becoming one of FIFA’s most important. They already pay one of the largest television rights fees to FIFA of any country. However, the perception is still otherwise.
For U.S. soccer fans, that perception is extremely frustrating. It is somewhat accurate: for a team that has qualified for the last six World Cups (granted, a Foreign Policy* staff team could probably qualify for the finals out of the Confederation of North, Central American, and Caribbean Association Football -- CONCACAF), interest would appear to be lower than warranted. (Six out of six is, by the way, quite impressive: England, France, and the Netherlands can't claim that streak.)
But that's changing. Go to many bars in the District on Saturday or Sunday morning, and you'll see European football -- usually the English Premier League -- on the TV. From my own observations (be wary of perception bias), the sport with the most jerseys worn on the streets of Northern Virginia and D.C. is soccer, by far. Moreover, 24.5 million Americans play football, the second most (behind China's 26.2 million) in the world. Since 1994, there has been a dramatic increase in the number of U.S. soccer fans, but among casual or non-fans, there still remains an idea that soccer is not an "American" sport. (It should also be noted that the U.S. Women's team is the dominant global powerhouse.)
UEFA's (Union of European Football Associations) selection of the 2012 Euro Cup host proved prescient, as well. Picking in 2007, Poland won the rights to host the tournament (OK, co-host with Ukraine, but since then UEFA has suggested Poland be the sole host, which the Poles have graciously declined to accept). Poland, however, was the only bid country that hasn't suffered economic decline since -- and yes, Greece was the first bid country eliminated.
Other notable findings: the Growth Environment Scores (a Goldman-devised figure of sustainable economic growth and productivity) of respective countries loosely correlate to soccer performance, but a much stronger connection exists between the improvement of economic conditions and national soccer teams. (Algeria, which did not qualify for the 2006 finals in Germany, posted the highest GES improvement among developing countries over the last four years.) The report also argues that success is partially dependent on the number of males aged 18-34 in countries, and provides a UN chart with predictions for 2050. If the claim is accurate, the Nigerian Super Eagles are going to be really, really good in a few decades.
Lastly, Goldman offers their own predictions of the semi-finals (I won't spoil, though I will say it's what my predictions are as well), and lists the probability (with their metrics) that each country will become World Cup champions.
It's lengthy, but an extremely interesting read, and provides the best rundown of the Cup to come that I've seen. Check it out.
The debate about Solar energy both pros and cons have been discussed extensively, especially when a whole new industry is emerging that is drawing intense competition between China, U.S. and Europe. What i want to look at, discuss is the opportunity that this is a great time for Africa as a whole to jump on to the modernization of energy in the 21st century and leap-frog certain aspects and downsides of industrialization. Which the main disadvantages are environmental degradation.
African countries, blessed with sunlight all year round, are tapping this free and clean energy source to light up remote and isolated homes that have no immediate hope of linking to their national electricity grid. As you can see from the reporting byDeutschewellenglish progress is being made.
Electrifying rural areas poses unique challenges for African governments. Remote and scattered, rural homes, unlike homes in urban areas, are costly and often impractical to connect to the grid. Under the New Partnership for Africa’s Development (NEPAD), countries are seeking innovative alternatives to give rural families efficient means to cook their food and light their homes. Stand-alone sources of energy, such as solar, wind and mini-hydro generators, can help fill the gap.
NEPAD, Africa’s development blueprint, recognizes that to achieve the desired social and economic prosperity, countries must boost access to cheaper and reliable energy. Excluding South Africa and Egypt, no more than 20 per cent (and in some countries as few as 5 per cent) of Africans have electricity. This figure falls to an average of 2 per cent in rural areas where the majority of Africans live — a far cry from the 35 per cent consumption level, or more, African leaders wish to achieve.
Africa can gain a lot by embracing this opportunity. Came across a time article that confirmed what i been thinking on, but couldn't really find a reputable source that stated the case well in a short reading.
For years the Sahara has been regarded by many Europeans as a terra incognita of little economic value or importance. But this perception may be headed for a drastic overhaul. Politicians and scientists on both sides of the Med are beginning to focus on the Sahara's potential to power Europe for centuries to come. These people believe the 3.32 million-sq.-mi. (8.6 million sq km) desert's true worth lies in the very thing long regarded as its biggest liability: its arid emptiness. Some patches of the Sahara reach 113 degrees F (45 degrees C) on many afternoons. It is, in other words, a gigantic natural storehouse of solar energy.
A few years ago, scientists began to calculate just how much energy the Sahara holds. They were astounded at the answer. In theory, a 35,000-sq.-mi. (90,600 sq km) chunk of the Sahara — smaller than Portugal and a little over 1% of its total area — could yield the same amount of electricity as all the world's power plants combined. A smaller square of 6,000 sq. mi. (15,500 sq km) — about the size of Connecticut — could provide electricity for Europe's 500 million people. "I admit I was skeptical until I did the calculations myself," says Michael Pawlyn, director of Exploration Architecture, one of three British environmental companies comprising the Sahara Forest Project, which is testing solar plants in Oman and the United Arab Emirates. Pawlyn calls the Sahara's potential "staggering."
At this point, no one is proposing the creation of a solar power station the size of a small country. But a relatively well developed technology exists, which proponents say could turn the Sahara's heat and sunlight into a major electrical source — concentrating solar power (CSP). Unlike solar panels, which convert sunlight directly into electricity, CSP utilizes mirrors to focus light on water pipes or boilers, generating superheated steam to operate the turbines of generators. Small CSP plants have produced power in California's Mojave Desert since the 1980s. The Sahara Forest Project proposes building CSP plants below sea level (the Sahara has several such depressions) so that seawater can flow into them and be condensed into distilled water for powering turbines and washing dust off the mirrors. Wastewater would be used to irrigate areas around the stations, creating lush oases — hence the forest in the group's name.
One country is perfect for solar energy due to its climate, South Africa. South Africa's solar radiation output is over twice that of Europe - making it one of the highest in the world - and is the most readily accessible resource available. This immense energy resource lends itself to a number of potential uses and the country's solar-equipment industry is growing with a number of companies in South Africa selling solar panels and other related solar energy products. There are some problems that the country faces, which have been magnified since the 2010 World Cup is taking place this summer.
For many years, South Africa has suffered from poor energy efficient housing. Low-cost housing is particularly poor for saving energy, resulting in high levels of wasted energy especially in winter. The result is harmful levels of air pollution in townships, due mainly to coal burning.
But not all is lost....
Research has shown that if low-cost housing can be fitted with solar panels then fuel savings of as much as 65% could be made. This makes solar energy for homes an environmental and money-saving success mainly because:
Solar energy has become more efficient.
Less expensive to install. It’s still more expensive than traditional power, but this will change in the not-too-distant future with fuel and utility costs rising.
When this happens, the demand is likely to go crazy which should lower the costs even more as competitors fight over the market share.
And energy saving homes can be built at the same cost as energy-wasteful houses. Water heating accounts for a third to half of the energy use in the average South African household. This comes mainly from electricity. If solar energy replaced electricity for this then it would save the lower income households significant money, whilst saving energy, which will in turn improve the environment in which they live.
A roll-out programme of solar water heaters has started, with the focus on higher income households in Gauteng, the Western Cape and KwaZulu-Natal. This program is led by the Central Energy Fund (CEF).
Solar water heaters have many benefits both for the customer and for South Africa. The customer benefits by having a reduced electricity bill and the country benefits because less power has to be generated and so less pollution is generated.
And as solar water heaters and photovoltaic solar panels can be used both at residential and commercial buildings, with the amount of sunshine South Africa basks in, there really is no excuse for the government not pushing solar panels more aggressively.
African countries must think outside the box for development and modernization. This chance is ripe for the pickings. The sun is free, inexhaustible, and no country controls it. The future is bright for those who chose to harness the given opportunity .
The African Union's New Partnership for Africa's Development, NEPAD unveiled 'The Best of Africa 2010-2015' project aimed at attracting investments into Africa.
The project will focus on showcasing Africa as a business and investment destination, according to NEPAD's Planning and Co-ordinating Agency chief executive officer Dr. Ibrahim Assane Mayaki.
The initiative draws on the declaration of the 8th Assembly of the African Union (AU) Heads of State and Government through which the AU reaffirmed its commitment to make the 2010 World Cup a truly African tournament.
"We are looking to take advantage of the presence of the international and African business representatives that will be in South Africa for the World Cup in June. The idea is to get these representatives to engage each other on increased investments, growth and development for Africa." says Dr. Mayaki.
The Best of Africa project will take place in the first week of the World Cup in South Africa and will include a business conference, an exhibition and a cultural festival - all designed to showcase opportunities in the continent.
"It is a worthwhile initiative but much will depend on how well the African governments follow through with parties interested in investing in Africa. It is clear that there are investment opportunities in Africa but it is important to provide the favourable environment for investors to see a return." says TradeInvestSA editor JP van der Merwe.
"Feasibility studies for new projects will need to be thorough, land rights and ownership will need to be well defined and governments will have to outline definitive investment plans, where a thorough step-by-step process is followed. For portfolio investments, African markets will have to continue to open themselves up so that potential investors can buy or sell assets quickly and without hassle," he adds.
