Major investments in
ports all along the
African shoreline are
among the most visible
indications of the economic revival
of the continent following decline
during most of the 40 years that
FTW has been in existence.
It is not that the publication
ignored Africa – we were among
the first in the world to introduce
regular features on developments in
countries in the Southern African
Development Community.
What we have
seen over the
past decade is the
rebirth of ports
like Walvis Bay,
Maputo and Beira.
They are
the pioneers of public private
partnerships which have injected
much-needed capital and expertise
into the ports.
But they are facing competition
– upgrades have started or are on
the cards for Abidjan (Ivory Coast),
Lobito and Cabinda (Angola),
Doraleh (Djibouti), Mombasa
(Kenya), Dar es Salaam and
Zanzibar (Tanzania), and Nacala
(Mozambique).
All-new ports are planned for
Lamu (Kenya), Ibaka (Nigeria),
and Bagamoyo (Tanzania – also
scheduled to be the biggest port in
Africa), and Badagry (Nigeria).
South Africa has the new deepwater
port of
Ngqura and the
planned dig-out
port in Durban.
Most of the
port development
plans include the
upgrade of existing road and rail
links, or the building of new ones.
Investment is flowing in as Africa
now has the world’s fastest-growing
economy, according to the African
Development Bank.
A report released by the bank in
July this year predicts an average
growth rate of 6% from 2013-2015,
with one-third of African countries
currently enjoying growth rates
currently above 6%.
It is a far cry from the situation
40 years ago when a combination of
nationalisation by African countries,
the Cold War, coups and
conflict drove
investors and
multinationals
out of the
continent.
So much
so that it took
the Chinese to
rediscover the riches and
potential of Africa. Having
been exiled from Africa after
building the Tazara Railway
Line in the 1970s, China
announced its return in 2000
with the first forum on China-
Africa co-operation (FOCAC),
which was held in Beijing and
attended by representatives from 44
African states.
The investment paid off, and
China-Africa trade was worth almost
$200 billion in 2012.
Trade with South Africa – which
was not at the forum – makes up
$60 billion of the total.
Looking after Chinese interests
are an estimated one million
Chinese in Africa, with the
largest communities in South
Africa, Egypt and Nigeria.
But, the rest of
the world has woken
up to the potential of
Africa. On FTW’s visits
to neighbouring states
(we are the only South
African publication to
regularly send teams into the
SADC countries), we meet
investors from Europe, South
America, Britain, the United States
and Japan. There are even a few
Australians and (too few) South
Africans.
While exports of mostly raw
materials are growing, the real
potential for economic growth and
social upliftment lies with intra-
Africa trade, and it is here where
logistics companies with South
African roots
may still find
opportunities.
According
to the UN
Conference
on Trade and
Development (Unctad). Africa has
the lowest intraregional trade out of
all the continents, at only 11%.
African leaders recognise this,
and in January 2012 a meeting of
African leaders resolved to eliminate
intra-African trade barriers to boost
regional trade.
Having cleared the field for
increased regional trade – and the
economic growth that it promises –
African nations need to provide the
goods to sell to each other, or foreign
competitors will fill the vacuum, the
Economic Development in Africa
Report contends.
It also recommends that African
governments strengthen the
private sector
by making
finance more
accessible and
less costly, and
by enhancing
mechanisms for
government consultation with the
private sector.
Short-term unexploited
opportunities for regional trade in
Africa are to be found particularly
in agriculture, the report says.
One of the results of the 40-odd
years of decline is that Africa
accounts for only 1% of global
manufacturing. It was not always
like that. Empty and neglected
factories found throughout southern
Africa bear silent testimony to the
once vibrant manufacturing sector.
An additional challenge noted by
the report is that Africa has some
of the highest costs in the world for
transporting goods.
A combination of investment
in upgrading and adding logistics
infrastructure combined with
innovative cost-saving approaches
to logistics management is needed
to unlock the potential for the next
40 years.
INSERT 1
Africa - the potential
• Africa has 24% of the world’s
agricultural land, but accounts for only
9% of its production.
• Trade within the West African Economic
and Monetary Union could increase threefold if
all intrastate roads linking the countries of the
Union were paved.
• Exploiting the trade potential between
neighbouring countries could increase
intraregional trade by 173%.
• Manufacturing – better education and a
young workforce could power an industrial
revolution in Africa. In some countries half or
more of the population is under 25 years of age.
INSERT 2
Africa - the good
• There are fewer wars and
conflicts than there have been
during periods over the past 40 years.
• Africa represents one of the biggest
markets in the world: The number of
people in Africa has grown from 221
million in 1950 to over a billion.
• Africa’s economy is projected to grow
by 4.8% in 2013 and accelerate further to
5.3% in 2014.
• Sub-Saharan Africa’s average literacy
rate has nearly tripled in percentage
terms over the past four decades, rising
from 23% in 1970 to 65%
• Average life expectancy in sub-
Saharan Africa is now 52 years, up from 44
years in 1970. In 2010, Lesotho had sub-
Saharan Africa’s lowest life expectancy, at
46 years, while the Comoros Islands lead
the region at 66 years.
INSERT 3
Africa - the bad
• The shares of both Africa and sub-Saharan Africa in world exports and
imports fell significantly between 1970 and 2011.
• During the period from the early 1960s to the late 1980s, Africa had more
than 70 coups and 13 presidential assassinations.
• In six countries life expectancy has fallen since 1970: Democratic Republic of
the Congo, Lesotho, Swaziland, South Africa, Zambia and Zimbabwe.
25% of people in Sub-Saharan Africa are undernourished.
• The growth of 33% of African children is stunted by hunger.
INSERTS
6%
The projected growth rate from 2013-2015.
$200bn
The value of China-Africa trade in 2012.
$200bn
