Sir Nigel's Journey…

This is an interesting perspective on Africa as an investment destination and the interviewee suggests a few reasons why Africa is experiencing higher capital inflows. 

Interesting 

I chaired a very lively seminar on Friday afternoon that focused on the question, “Can Africa Trade with Africa?”  The answer was a resounding yes. 

Today, there is strong consensus among African leaders that regional integration is indispensable to unlock economies of scale and sharpen competitiveness. And promoting intra-African trade has emerged as a top priority, in recognition that the African market of one billion consumers can be a powerful engine for growth and employment. Read more

Obiageli Ezekwesili’s Profile

I blog here as well: www.africaontheblog.com and this is my recent post: -

Reinventing the wheel

Some of my good friends happen to be Kenyan. Naturally being Zimbabwean I have been observing the events in Kenya economically, politically and otherwise with great interest. I am completely fascinated by this country which was embroiled in massive killings only a few years ago (2007). This resulted in a coalition government which is currently projecting some 7% economic growth rate this year. My Kenyan friends recently voted this August in a constitutional referendum. In truth I’ve been watching developments on the continent as whole with a keen interest in general.  If the truth be told one of my ambitions is to play some small role in assisting to rebrand my beloved Zimbabwe and in turn the continent. After many years in the diaspora I have started to embark on my return home scheduled later this year. As I prepare for my return to the homeland, I find myself heavily involved in discussing the intricacies of Africa. I’m constantly thinking, planning and looking forward to life on our continent with eagerness and a proper sense of realism. Read more

I am currently reading Dambisa Moyo’s  Dead Aid: Why Aid is Not Working and How there is a Better Way for Africa. Every so often I share a quote or something from her book on Twitter.  Usually a debate ensues. I encourage this as I enjoy the debate itself and the various ideas that follow. I firmly believe in healthy dialogue and today I’m attempting to see where it takes me. So I have a question this time. Please feel free to leave your comments even if you haven’t read the book.

The full McKinsey Report ‘Lions on the move: The progress and potential of African economies‘ - MGI_african_economies_full_report

Continuing to read my book – Africa Rising. My current mind set (i.e. Africa is the future) is being confirmed steadily. I would definitely recommend this book to anyone interested in Africa and Her progress. Interestingly though, I do put the book down at times and go online to research a bit. I found this interesting link. This is an extract from an article posted by the reputable firm – McKinsey: -

‘Africa’s collective GDP, at $1.6 trillion in 2008, is now roughly equal to Brazil’s or Russia’s. While Africa’s increased economic momentum is widely recognized, less known are its sources and likely staying power. Among the key findings:

Africa’s growth acceleration was widespread, with 27 of its 30 largest economies expanding more rapidly after 2000. All sectors contributed, including resources, finance, retail, agriculture, transportation and telecommunications. Natural resources directly accounted for just 24 percent of the continent’s GDP growth from 2000 through 2008. Key to Africa’s growth surge were improved political and macroeconomic stability and microeconomic reforms.

Future economic growth will be supported by Africa’s increasing ties to the global economy. Rising demand for commodities is driving buyers around the world to pay dearly for Africa’s natural riches and to forge new types of partnerships with producers. And Africa is gaining greater access to international capital; total foreign capital flows into Africa rose from $15 billion in 2000 to a peak of $87 billion in 2007.

Africa’s economic growth is creating substantial new business opportunities that are often overlooked by global companies RMGI projects that at least four groups of industries-consumer-facing industries, agriculture, resources, and infrastructure-together could generate as much as $2.6 trillion in revenue annually by 2020, or $1 trillion more than today.

Today the rate of return on foreign investment in Africa is higher than in any other developing region. Early entry into African economies provides opportunities to create markets, establish brands, shape industry structure, influence customer preferences, and establish long-term relationships. Business can help build the Africa of the future.

The rise of the African urban consumer also will fuel long-term growth. Today, 40 percent of Africans live in urban areas, a portion close to China’s and continuing to expand. The number of households with discretionary income is projected to rise by 50 percent over the next 10 years, reaching 128 million. By 2030, the continents’ top 18 cities could have a combined spending power of $1.3 trillion’.

For further info: – Link here