Africa

Unlocking Africa’s Aviation Potential

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By Hassan El-Houry, Group CEO, National Aviation Services (NAS)

Learn more about this timely topic at the upcoming
18th International Economic Forum on Africa
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Check out the 30 October 2018 OECD EMnet Meeting on Africa’s
“Infrastructure and Regional Connectivity”

africa-aviationAfricans make up 12% of the world’s population but only 2.5% of the world’s passengers. Why the gap?

Africa has 731 airports and 419 airlines with an aviation industry that supports around 6.9 million jobs and USD 80 billion in economic activity. According to the International Air Transport Association (IATA), Africa is set to become one of the fastest growing aviation regions in the next 20 years with an annual expansion of nearly 5%. While it is evident that aviation in Africa has the potential to fuel economic growth, several barriers exist. Weak infrastructure, high ticket prices, poor connectivity and lack of liberalisation rank amongst the many challenges.

Consider the reality: Airport infrastructure in most African countries is outdated and not built to serve the growing volume of passengers or cargo. Airlines and airports are often managed by government entities or regulatory bodies. Foreign investment is discouraged. In Malawi, for example, it’s illegal for a foreign airline or private investor to own more than 49% of a national airline. So, this prevented Ethiopian Airlines from purchasing more than a 49% stake in Malawian Airlines. Continue reading →

How can the new African free trade agreement unlock Africa’s potential?

Development Matters Africa, Trade , , , ,

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By Professor Landry Signé, David M. Rubenstein Fellow in the Global Economy and Development Program and the Africa Growth Initiative at the Brookings Institution, Distinguished fellow at Stanford University’s Center for African Studies, Chairman of the Global Network for Africa’s Prosperity, and author of “Innovating Development Strategies in Africa: The Role of International, Regional and National Actors.”

Learn more about this timely topic at the upcoming
18th International Economic Forum on Africa

Africa-TradeAfrica has an opportunity to show leadership on the world stage through strength in unity, as the rest of the world retreats from multilateralism and increases protectionism. For the first time in recent history, with the African Continental Free Trade Area (AfCFTA), Africa could wholly embrace intra-African relations, global trade, structural transformation and sustainable development. But for the agreement to succeed, businesses, which make up the backbone of the deal, need to be aware of their potential gains and be actively involved in its implementation, working alongside governments and regional institutions that are ultimately responsible for speeding up the process.

The challenges to African trade have been immense: Africa only represents 2.4% of total global exports. Intra-African trade only represents 15% of total African exports (compared to 58% and 67% for Asia and Europe, respectively), even if the regions of Eastern and Southern Africa are outperforming Central Africa.

The AfCFTA, launched with signatures from 44 African countries in March, has the potential to open up the free movement of goods, services and people, building the capacity of African businesses. If successfully implemented, the AfCFTA could generate a combined consumer and business spending of USD 6.7 trillion by 2030, accelerate industrial development, expand economic diversification, and facilitate quality job creation — including for youth (72% of poverty rate), women (majority of small-scale traders), and small and medium-sized enterprises (SMEs) (about 80% of regional employment).

But all this will depend on how well businesses are able to engage in the deal’s implementation. These are a few things they need to know:

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Africa: Time to Rediscover the Economics of Population Density and Development

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By Professor Erik S. Reinert, Tallinn University of Technology, and Dr. Richard Itaman, King’s College, London

Learn more about this timely topic at the upcoming
18th International Economic Forum on Africa

Africa-Industrialisation-Factory.jpgAt the OECD’s origin, we find the 1947 Marshall Plan that re-industrialised a war-torn Europe. At the very core of the Marshall Plan was a profound understanding of the relationship between a nation’s economic structure and its carrying capacity in terms of population density. We argue that it is necessary to rediscover this theoretical understanding now, in the mutual interest of Africa and Europe.

In early 1947, worries grew in Washington that an impoverished Germany – where manufacturing industry had been forbidden under the Morgenthau Plan – would fall an easy prey to the Soviet Union. US President Truman therefore sent former president Herbert Hoover on a fact-finding mission to Germany. One powerful sentence in Hoover’s Report of March 18 that year zeroed in on the basic problem:

‘’There is the illusion that the New Germany left after the annexations can be reduced to a ‘pastoral state’. It cannot be done unless we exterminate or move 25.000.000 out of it’.1 

Hoover understood that the population density of a country is determined by its economic structure: Industrialisation makes it possible to dramatically increase the population carrying capacity of a nation. ‘Exterminate’ was an extremely strong word to use after the horrors of World War II, and everyone understood that there was no place where 25 million Germans could be sent: Re-industrialisation was the only option. Continue reading →

Africa’s integration: groundbreaking but not so new

Development Matters Africa, policy , , , , ,

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By Sarah Lawan, Regional Co-operation Advisor, Networks, Partnerships and Gender Division, OECD Development Centre, and Rodrigo Deiana, Junior Policy Analyst, Europe, Middle East and Africa Unit, OECD Development Centre

Learn more about this timely topic at the upcoming
18th International Economic Forum on Africa

Kwame-Nkrumah
Kwame Nkrumah speaking at the inaugural ceremony of the Organisation of African Unity Conference in Addis Ababa, Ethiopia, in 1963

As early as 1963, in the midst of independence movements, Kwame Nkrumah urged, “Africa must unite or perish!” The first president of Ghana pronounced this injunction at the founding meeting of the Organisation of African Unity (OAU) in Addis Ababa, Ethiopia.

The post-colonial thirst for “breaking with the old order and indigenising the direction of Africa’s economic development”1 led to the shaping of the African Economic Community (AEC), a pan-African single market. Africa reclaimed its leadership and ownership with the goal of promoting a self-sustained and self-reliant development trajectory.

2018 witnessed an acceleration of integration efforts with the landmark agreement on the African Continental Free Trade Area (AfCFTA) in Kigali on 21 March. So far, 49 African countries have signed the AfCFTA, which will be the world’s largest free trade area since the WTO’s creation. As the late Calestous Juma put it: “The continent’s regional integration is the most complex and elaborate effort of its kind ever mounted in human history.”2

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Tracing our roots: Understanding African innovation

Development Matters Africa, Human Development, Youth , , , , , ,

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By Youssef Travaly, PhD MBA, Next Einstein Forum (NEF) Vice-President of Science, Innovation & Partnerships, and Acting President, African Institute for Mathematical Sciences (AIMS), Senegal

Learn more about this timely topic at the upcoming
18th International Economic Forum on Africa

Africa-digital-technologyCan you name a famous African scientist?

Barely no one can answer this question, even with some thought. And yet, Africa is the cradle of humanity, and therefore logically, the cradle of science and innovation. So why can’t we name any famous African scientists? The simple answer is that we don’t know much about the history of innovation in Africa. The world’s technologically driven human progress can be divided into two parts: the “Africa” time with major discoveries, including tools, fire, mathematics and steel, and the more recent “industrial” read “western Europe and North America” time with major discoveries such as the steam engine, vaccines, antibiotics, computers and much more. In between the two, the world transitioned from more “informal” homegrown knowledge-based innovation to more “formal” scientific knowledge-based innovation. Within that context, Africa’s research and innovation, which often occurs outside the so-called “formal” innovation framework, completely disappeared from the global map of Science, Technology and Innovation (STI). Since then, “playing catch-up” has been the cornerstone of the strategy of every single African nation intending to adopt a knowledge-led economy. But do we really need to catch-up? What does catching up even mean?

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Raising capital for intermediary cities

Development Matters Africa, Asia, Development finance, Infrastructure , , , , ,

By Jeremy Gorelick, Senior Infrastructure Finance Advisor, USAID’s* WASH-FIN (Water, Sanitation and Hygiene – Finance) Programme, and Joel Moktar, Project Leader, Open Capital Advisors

This blog is part of an ongoing series exploring the intersection between intermediary cities in developing countries and sustainable development

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Intermediary cities are the fastest growing cities in the developing world. Often referred to as secondary or second-tier cities, intermediary cities typically have a population of between 50,000 and one million people. They play a fundamental role in connecting both rural and urban areas to basic facilities and services.[1] Driven by population growth and rural-urban migration, intermediary cities worldwide are projected to grow at almost twice the rate of megacities (those with more than 10 million inhabitants) between now and 2030.[2] Of these, the fastest growing cities are in Africa and Asia.[3]

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Migration and Africa: Driving better policy choices by changing the conversation

Development Matters Africa, Migration, policy , , ,

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By Faten Aggad1 Non-resident Business Associate and International Consultant, Maendeleo Group, Cape Town, South Africa

Learn more about this timely topic at the upcoming
18th International Economic Forum on Africa

 

shutterstock_699139378The conversation needs to change when it comes to migration and Africa, replacing the narrative about an exodus out of the continent to one about people moving to other countries within the continent. The difference matters.

In its most recent round of surveys in nine African countries, the Afrobarometer revealed that 64% of Africans do not wish to emigrate. Of the remaining 37% who have considered leaving their countries, almost half would like to relocate to another country in their immediate region (37%) or to other parts of Africa (10%). Only 20% would consider Europe as a destination should they actually emigrate. Others opt for North America and Asia.

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