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More work needed before Congo Republic bailout -IMF

Comments (0) Actualites, Africa, Economy

ABIDJAN (Reuters) – The International Monetary Fund (IMF) ended a week of talks in Congo Republic on Thursday saying the debt-crippled nation had more work to do if it hoped to gain the lender’s approval for a bailout package.

Like other Central African oil producers, Congo has been hit hard by low crude prices. Government revenues have dropped by a third since 2015. The IMF said in its end-of-mission statement that the non-oil economy was in recession, with a contraction of 9.2 percent expected for this year.

The Fund said it was encouraged by Congo’s draft 2018 budget and added that progress had been made in formulating medium-term macroeconomic and structural policies it could support.

However, it said the government needed to do more to restore debt sustainability, urging it to finalise the hiring of legal and financial advisors. More progress towards strengthening governance was also needed.

Congo is regularly singled out by anti-corruption groups for the opaque management of its oil sector.

The finance ministry acknowledged that “immediate measures” were needed.

“That is why… Congo Republic will open negotiations with its main creditors in the aim of restructuring its debt,” it said in a statement.

Once the Fund’s recommendations were carried out, “a financial arrangement to support Congo’s economic programme would be discussed at staff level before being proposed for the IMF Executive Board’s consideration,” said Abdoul Aziz Wane, who headed the mission.

The slow pace of the negotiations with the IMF, which have been under way for months, as well as continuing legal uncertainties, have compounded Congo’s acute liquidity pressures, according to Fitch.

Unsustainable debt meanwhile had led to high default risks for private creditors, the ratings agency said. ​

The IMF said in October that the country’s public or publicly guaranteed debt totalled $9.14 billion, or around 110 percent of GDP, by the end of July.

Much of that debt is believed to be owed to oil traders, who lent money to the government against future crude shipments.

A construction firm has also filed suit in a French court seeking payment of over $1 billion for public works projects dating back decades. That debt was not included in the IMF’s estimate.

Negotiations to hammer out the terms of an IMF assistance package will continue early next year, the finance ministry said in its statement.

 

 

(By Joe Bavier. Additional reporting by Aaron Ross; Editing by Alison Williams and John Stonestreet)

 

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Investors fear South African market euphoria is overdone

Comments (0) Actualites, Africa, Economy

LONDON (Reuters) – Businessman Cyril Ramaphosa, the new leader of South Africa’s ruling ANC party, needs to fix a sluggish economy and a deeply divided society. Market euphoria after his election may not reflect the looming slog, fund managers say.

The outcome, announced late on Monday, was widely expected. The rand has rallied 7 percent against the dollar since Thursday, and government bond yields fell 58 basis points over the same period. Credit default swaps, used to price default risks, are down around 16 bps since end-Thursday.

On Tuesday, shares in South African banks – a barometer of economic and political health – jumped 8 percent.

Ramaphosa, likely to become South Africa’s president after the 2019 elections, is considered an improvement on scandal-mired Jacob Zuma. But the good news seems already in the price – a CDS-based model by S&P Capital shows South African foreign debt priced in line with its rating for the first time in 2 1/2 years following the ratings cut in late November.

The country’s domestic bonds have long traded as if its credit rating were a notch lower, the model shows, with yields well above similarly rated countries such as Indonesia.

Many even reckon the market reaction is overdone. JPMorgan analysts see the rand now as 9 to 11 percent “rich”, based on recent moves in other emerging currencies as well as weaker prices for gold and platinum, major South African exports.

“If you look at local (bond) markets, I’d say the market relief was probably not justified by fundamentals. The structural weakness is very entrenched and won’t go away easily,” said Anders Faergemann, senior portfolio manager at PineBridge Investments.

He was citing sub-one percent growth, stubborn inflation, a 28 percent jobless rate, rising government spending and capital shortfalls at state-run companies. Those problems could be tough to fix in 2018, when Zuma will still be president.

“That could lead to policy paralysis, and that is the real risk,” Faergemann said.

The news has not altered the view on South Africa at AXA Investment Managers, where Sailesh Lad, the head of emerging debt, retains an underweight position.

Ramaphosa is not a “game-changer”, Lad said, noting the budget deficit blowout, announced in October by finance minister Malusi Gigaba, remained in place. Gigaba’s budget pencilled in a big increase in borrowing and a deficit increase to 4.3 percent of gross domestic product.

The higher spending had appeared to confirm that the rating on South African local bonds would be cut to “junk” territory by Moody’s and S&P Global, ejecting the debt from key indexes and triggering capital outflows of over $10 billion.

However, Moody’s held off the downgrade last month and Ramaphosa-linked market gains partly reflect hopes it may not do so at its early-2018 review.

If the new ANC leader does implement promised reforms, some hope the country could eventually regain investment grade, as Portugal has just done and Ireland did in 2014.

But most predicted South Africa will be harder to fix, given Ramaphosa’s narrow victory margin, racial divides and entrenched corruption, with his ascent merely having delayed the inevitable to later in 2018.

Political risk consultancy Eurasia reckons, in fact, that with elections looming, the ANC may lurch further to the left, and will not therefore “provide sufficient grounds to reverse ratings downgrades before mid-2018.”

 

(By Karin Strohecker and Claire Milhench. Additional reporting by Marc Jones, Sujata Rao and Ritvik Carvalho, writing by Sujata Rao, editing by Larry King)

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South Africa’s private-sector activity slows in November: PMI

Comments (0) Actualites, Africa, Economy

JOHANNESBURG, Dec 5 (Reuters) – South African private sector activity slowed in November as new orders and output fell, a survey showed on Tuesday.

The Standard Bank Purchasing Managers’ Index (PMI), compiled by IHS Markit, fell to 48.8 in November from 49.6 in October, staying below the 50 mark that separates expansion from

contraction.

“Lower underlying demand formed the basis for the decline as new orders fell at the quickest pace observed since early 2016.

This led output to fall, and at a faster rate than that noted in the previous month,” IHS Markit said in a statement.

South Africa’s economic gloom has been compounded by allegations of corruption in state-owned companies and of influence-peddling in government that have hurt investor confidence.

The ruling African National Congress will this month elect a successor to President Jacob Zuma as party chief, adding to the climate of uncertainty.

“Apart from South Africa’s economy being characterised by generally weak growth, we note that the rating agency review on November 24th and the upcoming ANC elective conference will have

delayed production and consumption decisions,” Standard Bank economist Kim Silberman said.

S&P Global Ratings downgraded South African debt to junk status on Nov. 24, citing its deteriorating economic outlook and public finances. Moody’s put the country on review for a

downgrade.

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Kenya cuts electricity tariffs for manufacturers to create jobs

Comments (0) Actualites, Africa, Economy

NAIROBI (Reuters) – Kenya is cutting night-time electricity tariffs for manufacturers by half to entice investors and boost economic growth and job creation, a top ministry of energy official said on Wednesday.

The East African nation charges firms 15.70 shillings ($0.1522) per kilowatt hour, which is seen as uncompetitive compared with other African nations such as Ethiopia, South Africa and Egypt.

Joseph Njoroge, the principal secretary in charge of electricity at the ministry, said the reduction will apply from 10 pm to 6 am every day to boost usage of electricity when most households and businesses shut down.

“It is about, how do we create jobs for our people? How do we grow as a country? How do we move from an agro-based to an industrial-based country so that we can be able to enhance our GDP,” he told Reuters on the sidelines of an energy conference.

During his inauguration for a second term, President Uhuru Kenyatta said he planned to increase the share of manufacturing to annual economic output to 15 percent from 9 percent.

The government has been trying to boost investments in the sector in recent years with modest success, including the opening of light vehicle assembly plants by Peugeot and Volkswagen.

Taxes account for about a third of electricity tariffs and Njoroge said they will consider whether some of the charges can be reduced.

Kenya has an installed electricity capacity of 2,336 megawatts (MW) with maximum demand of 1,727 MW, Njoroge said. It has increased the share of the population with access to electricity to 70 percent in the last four years from 30 percent.

 

($1 = 103.1500 Kenyan shillings)

 

(Reporting by Duncan Miriri, editing by Louise Heavens)

 

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S.Africa’s Zuma calls for action after S&P downgrade, rand up on Moody’s reprieve

Comments (0) Actualites, Africa, Economy

By Olivia Kumwenda-Mtambo

JOHANNESBURG (Reuters) – South African President Jacob Zuma called for concrete measures to boost growth after S&P Global Ratings downgraded the local currency debt to sub-investment grade, while foreign currency debt was pushed deeper into “junk” territory.

The rand recovered on Monday from steep falls suffered late on Friday after the downgrade, taking some relief from Moody’s decision to only place South Africa on review for downgrade.

A cut to “junk” on the local currency debt by both S&P and Moody’s could have seen South African debt lose its place in Citi’s World Government Bond Index (WGBI), the biggest of the global benchmarks and tracked by about $2-3 trillion of funds.

Zuma directed Finance Minister Malusi Gigaba on Monday to finalise proposals for expenditure cuts amounting to 25 billion rand ($2 billion) and revenue boosting measures totalling 15 billion rand – including through taxes.

A proposal by a presidential commission to introduce free higher education should also be implemented in a “fiscally-sustainable manner”, the statement from Zuma’s office said.

Gigaba in October unveiled a gloomy outlook for the economy as he flagged weaker growth expectations, wider budget deficit estimates and rising government debt.

Both S&P and Moody’s cited deterioration in South Africa’s economic growth prospects and public finances.

As of 1527 GMT, the rand was trading at 13.7625 per dollar, 2.86 percent firmer than its New York close on Friday, when it had tumbled 2 percent following S&P’s announcement.

“The market is finding some relief in the fact that Moody’s has chosen to give us basically till February before they change our rating, if they do change our rating,” said Shaun Murison, currency strategist at IG Markets.

In fixed income, the yield for the benchmark government bond was down 9 basis points to 9.245 percent, also recovering after rising as much as 11 basis points earlier in the session.

Moody’s said the review will allow it to assess the South African authorities’ willingness and ability to respond to the rising pressures through growth-supportive fiscal adjustments that raise revenues and contain expenditures.

“The review period may not conclude until the size and the composition of the 2018 budget is known next February,” Moody’s senior analyst for South Africa, Zuzana Brixiova, said in a statement.

Moody’s rates South Africa’s foreign and local currency debt on their lowest investment grade rung of Baa3.

VOLATILITY

S&P’s decision will see South Africa excluded from the Barclays Global Aggregate index, whose inclusion criteria requires investment grade rating on its local currency debt from any two ratings agencies.

Fitch already rates South African debt as “junk”, and affirmed the rating on Thursday.

If nothing changes, the country will be downgraded to “junk” by all ratings agencies and the WGBI dream will be no more, at least for many a year, said Standard Bank chief trader Warrick Butler in a note.

“What this means, in terms of the currency, will be increased volatility.”

Falling out of the WGBI could have led to a larger sell-off in bonds, even though rising yields could present a buying opportunity for some yield-hungry investors.

“If you look at some of the metrics the real yields are among the highest in EM, the domestic curve is extremely steep, the current account is in better place than it was three to four years ago and the rand is quite competitive against likes of (Russia’s) rouble or Brazilian real,” said London-based Paul Greer, senior trader at Fidelity International.

“On the local side the real yield and steepness of curve look attractive from tactical perspective.”

Analysts said an exclusion from the Barclays index would lead to outflows of about $2 billion, compared with more than $10 billion if South Africa was to fall out of Citi’s WGBI.

South African debt was dropped from one the widely used global bond indexes, the JPMorgan Emerging Market Bond Index Global in April after S&P and Fitch downgraded foreign currency debt to sub-investment grade.

On the stock market, the Top-40 index was 0.35 percent lower at 53,810 while the broader all-share was down 0.28 percent at 60,157.

($1 = 13.7678 rand)

(Additional reporting by Sujata Rao in London; Editing by James Macharia/Mark Heinrich)

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Zimbabwe’s economic situation “very difficult”: IMF mission chief

Comments (0) Actualites, Africa, Economy

JOHANNESBURG (Reuters) – Zimbabwe’s economic growth is threatened by high government spending, an untenable foreign exchange regime and inadequate reforms, a senior International Monetary Fund (IMF) official said.

Zimbabwe was once one of Africa’s most promising economies but suffered decades of decline as former President Robert Mugabe pursued policies that included the violent seizure of white-owned commercial farms and money-printing that led to hyperinflation.

Mugabe, 93, resigned on Tuesday after nearly four decades in power following pressure from the military, the ruling ZANU-PF party and the general population.

New ZANU-PF leader Emmerson Mnangagwa is expected to be sworn in as Zimbabwe’s president on Friday.

Zimbabwe has not been able to borrow from international lenders since 1999 when it started defaulting on its debt, and has $1.75 billion rand in foreign arrears.

“The economic situation in Zimbabwe remains very difficult,” Gene Leon, IMF’s mission chief for Zimbabwe said in a statement to Reuters late on Wednesday.

“Immediate action is critical to reduce the deficit to a sustainable level, accelerate structural reforms, and re-engage with the international community to access much needed financial support.”

Leon said Zimbabwe should resolve arrears to the World Bank, African Development Bank and the European Investment Bank, among other reforms, for the IMF to consider future financing request from the country.

Zimbabwe should also be ready to implement strong macroeconomic policies and structural reforms to restore fiscal and debt sustainability, Leon said.

 

(Reporting by David Lawder in Washington and Olivia Kumwenda-Mtambo in Johannesburg; Editing by James Macharia)

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StartUps Flourish Across the Middle East

Comments (0) Economy, Technology

middle-east-startup

The Middle East is overcoming cultural barriers, and political and financial challenges, to become a paradise for potential investors. Emerging local technology companies are flourishing and giants from the US, Europe and Asia are taking notice. From the arrival of business angels, to the sale of Souq.com to Amazon, the region is showing greater creditability for investment projects and successful business ventures.

Growing Markets

Although there are huge obstacles facing the business markets of some countries across the region, the six Gulf Cooperation Council countries (UAE, Qatar, Oman, Saudi Arabia, Bahrain and Kuwait) plus Egypt, Lebanon and Jordan are emerging as an economic hub. According to venture capital site Beco Capital, there are over 160 million people in the region, 85 million who are online, and 50 million who are adult digital consumers with disposable income. These countries have the highest value consumers, enterprises and entrepreneurs, as well as, the youngest populations and high smartphone and broadband usage. This largely untapped market, is becoming the breeding ground for local technology startups, and big players from abroad, who wish to tap into it.

So far, only 8% of businesses in the Middle East and North Africa (MENA) have digital presence (as opposed to 80% in the United States) and only 1.5% of the region’s retail sales are digitally transacted, meaning there is still plenty of growth to come. According to Beco Capital, each digital job is estimated to create two to three more jobs in the economy, meaning the digital market could add up to $95 billion in annual gross domestic product by 2020. The business landscape of the region therefore, shows a lot of promise to foreign investment.

Emerging Startups

According to research house MAGNiTT, there are now over 3,000 startups across the region, with $870 million spent in startup investment last year. The top 100 startups raised over $1.42 billion in funding and each startup has raised over $500,000 individually. Some 68% of startup founders come from the Middle East, although many hold dual citizenship, 12% of successful startup founders are female, and the UAE hosts 50% of the most funded startups in the region. These figures have attracted foreign investment from abroad.  

According to Bloomberg, Amazon’s recent acquisition of Dubai based, online market retailer Souq.com, shows that e-commerce in the Middle East is set to take off. Out-bidding Emaar Malls PJSC, which owns the world’s largest shopping center, at $800 million, Amazon is actively looking for new areas of growth, and seems to have found it in the Middle East. According to Bloomberg, Souq.com has 23 million online visits a month, employs over 3,000 people and sells more than 400,000 products, from electronic goods to household products and clothes.    

Business Angels

An angel investor is usually an affluent individual or professional investor who provides startup capital for a new venture in return for shares in the business. In a report drafted by Harvard Business School experts, angels increase creditability to projects and increase possibilities for success. The report found possibilities for success increased by 10 to 17% when initial investment was done outside the US. According to the National back in 2012, enthusiasm for angel investment was growing across the Middle East. High speed internet connections enable the regions businesses to reach a global audience, meaning companies can grow without need for crippling overheads previously associated with foreign investment.

Executive chairman of Oasis500, a Jordan based investment program, Usama Fayyad said the Middle East was a unique opportunity for investors to participate in companies who could easily grow in value two to ten times over in a matter of months. Business angels may also have valuable knowledge and experience to help struggling startups. Serial entrepreneurs, who have started their own business can mentor local companies to ensure successful management strategies.

Startup Ecosystem

Despite the war and poverty stories emanating from across the region on the nightly news, the Middle East is well on its way to becoming a global hub for investment. Even with numerous challenges, this has not stopped the region, as a whole, from overcoming the first phases of business development to build a promising startup ecosystem.  

Sources: (1), (2), (3), (4).

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South Africa’s rand clings on to gains despite downgrade fallout

Comments (0) Economy, Latest Updates from Reuters

JOHANNESBURG (Reuters) – South Africa’s rand edged firmer on Wednesday, clinging on to recent gains despite continued fallout triggered by a Moody’s ratings downgrade last week and an anticipated interest rate hike by the U.S. Federal Reserve.

At 0640 GMT, the rand traded 0.2 percent firmer at 12.7350 per dollar compared to close of 12.7600 overnight in New York, bringing weekly gains to around 1.3 percent.

Following a one notch downgrade to its lowest sovereign investment grade on Friday, Moody’s cut the ratings of a dozen banks and companies including embattled power utility Eskom, further shaking confidence in Africa’s most advanced economy.

Quarterly business confidence and April retail sales due in the session are expected to shed more light on ailing economy. Growth shrunk 0.7 percent in Q1 2017 after a 0.3 percent contraction in Q4 of 2016.

Traders expect the U.S. central bank to increase interest rates by a notch when it concludes a policy meeting on Thursday, a move that could dampen demand for high-yielding emerging market assets.

South African bonds were flat, with the yield on benchmark 2026 government bond inching up 0.5 basis points to at 8.445 percent.

Stocks set to open higher at 0700 GMT, with the JSE securities exchange’s Top-40 futures index up 0.3 percent.

 

(Reporting by Mfuneko Toyana; Editing by Ed Cropley)

 

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The IMF predicts considerably growth in the Ivory Coast’s economy

Comments (0) Economy, Featured

The Ivory Coast is West Africa’s largest, French-speaking economy, and its growth looks set to continue, as the IMF predicts a 7.4% increase in the nation’s GDP over the next 3 years. The nation’s government is even more confident, predicting greater growth over the next two years than IMF figures, but either way it shows the increase in stability within the nation since President Alassane Ouattara came to power in 2011.

Greater stability, greater growth

Since Alassane Ouattara officially took office in 2011, the Ivory Coast has been in a period of sustained political stability that has led to marked economic growth. Ouattara has invested heavily in Ivorian infrastructure, and targeted outside investment to help the country continue its economic development. A reduction in red tape has allowed businesses to flourish, and staple crops such as cocoa have yielded even greater returns, with the Ivory Coast now responsible for around 45% of the world’s cocoa supply.

The IMF said that the West African nation’s GDP expanded by 8.6% in 2015, and 8.5% this year. The continued growth in 2016 comes in spite of poor weather that limited the nation’s cocoa crops, after a record haul of 1.8 million tons in the 2014-2015 season.

With this continued economic expansion, the IMF has predicted that between 2017 and 2020, the Ivory Coast will average 7.4% growth. However, Ouattara’s government is even more optimistic as they state that growth for 2016 will actually be 9%, and not the 8.5% predicted as an end of year figure by the IMF. Similarly, the Ivorian government claim that there will be 9% expansion in GDP in 2017; a figure that is 1% higher than IMF projections.

The construction of new roads and dams has also helped bolster the economy, and a new constitution aims to ensure that the armed conflicts of the past do not return to unsettle this new political and economic stability.

Investment for the future

While investment in infrastructure has been a key part to increasing crops and the ability of domestic businesses to flourish, attracting outside investment is also integral to prolonged growth. The Ivory Coast is looking to maintain its traditionally strong areas of production, such as its cocoa exports, while creating new sources of revenue and development.

As such, President Ouattara has targeted foreign investors to help fund his 5 year plan for growth within the country. In May of this year, the Ivory Coast’s government secured more than $15 billion in support from external investors and donors. With the new constitution passed into law, the government hopes that foreign direct investment (FDI) flows will increase, as concerns of security will continue to diminish.

The amount of pledges announced in May will offer great encouragement to both the government and the people of the Ivory Coast. When targets were set for a Paris meeting that aimed to attract FDI’s, the government said it hoped to raise $8.8 billion, so with over $15 billion actually achieved, it indicates a huge step forward for the economy. Ouattara’s plan was to put around $60 billion, in total, into projects that would run from 2016 to 2020. After receiving almost double its target from foreign investors, Ivory Coast’s government said that this success showed the “full support of the international community”.

In September of this year, Ouattara went to New York to make a speech at the U.S. Africa Business Forum, as he looked to continue his drive for foreign finances. During the speech, the President stated that the Ivory Coast has no preference over whether investment comes from public or private sources.

In addition, he made it clear that all areas of the world were valued equally in terms of how attractive their investment was to the Ivorian government, and added that, “We just want the maximum amount of investment possible.”

As foreign investors continue to show interest, Ouattara’s government will hope that they can maintain the growth that the country has shown, since the post 2010 election conflicts ended. Moreover, if the government’s figures are accurate, then the Ivory Coast will look to outperform the, already positive, predictions of growth that the IMF has announced. Potential investors will be watching with interest as the 2016-2020 plans develop.

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Africa looks set to for a revolution in technological innovation

Comments (0) Africa, Economy, Featured, Technology

Africa is changing, and technology is the catalyst for the unprecedented changes that are occurring continent wide. Although there are still large areas of the continent that lag behind, the levels of tech access found in, Europe and the USA, change is happening at an incredible rate. These changes are fueled by Africa’s innovators, who are helping alter how the rest of the world sees the globe’s second largest continent.

The rapid growth of technology

The growth of cellphones and the internet in Africa has happened so rapidly that access to personally owned technology has often happened before nations have built more routine infrastructure. Before many nations have even constructed reliable, national electricity supplies, individuals have access to cellphones that are fueling innovation, and changing people’s outlooks.

The cellphone company Ericsson, says that by 2019 there will be 930 million cellphones in Africa. The majority of Africa’s population is under 30, and the lack of infrastructure in many countries has proved to be a spur for creative solutions to everyday problems. Cellphone money transfer systems are one of Africa’s most popular technological services, in part fueled by the lack of access to banks that many people experience. This technology has now moved to the west, showing an intriguing reversal of the flow of new inventions. The developed world is now importing some of the developing world’s ideas and creations.

As broadband penetration expands, the opportunity for further innovation will become even greater. Access to regular cellphones is gradually moving towards access to smartphones. Around 20% of the continent currently has access to the internet, but this is expected to treble over the next 5 years. According to The Guardian, cellphone technology will account for 8% of Africa’s GDP by 2020, a figure that is more than double what it is anywhere else in the world.

African created apps now cover a broad range of areas, from providing question and answer services with registered doctors, to allowing farmers market figures to ensure they maximize their profits. A young generation of Africans across the continent have bypassed traditional technologies, such as landline phones and branch banking, and simply moved straight into a world of conducting everything via their cellphone.

Confronting the obstacles

Despite the swift growth in personal technology in Africa, there are still clearly issues around more routine forms of modernity that need to be overcome. For instance, in sub-Saharan Africa only around a third of people have access to grid electricity.

Cellphones are one thing, but for technology to become a genuine driving force – against poverty – there does need to be a minimum level of infrastructure.

Akinwumi Adesina, President of the African Development Bank, said, “If you can’t have electricity you can’t drive any industrial development… electricity drives everything, so until we fix that problem Africa faces huge challenges.”

This is an issue that organizations like the African Development Bank are addressing, with the ADB investing $150 billion over the next 10 years in order to try and provide connectivity to a further 130 million people.

Several nations have invested heavily in technology, in order to draw investment from major, foreign corporations, and also to provide openings for domestic talent to shine. Kenya in particular has looked to announce itself as a global leader in nurturing tech innovation, including the construction of an entire tech city (Konza) to create jobs, support start-ups and attract foreign investment.

Continuing to adapt

There are areas in which Africa has incorporated new technology very quickly, with e-commerce being one of the most notable success stories. Nigeria’s Jumia Group is Africa’s first tech “unicorn”, meaning that the company is valued at $1 billion.

For other companies to have such success, and for Africa’s tech entrepreneurs to feel empowered, there needs to be cross continental support from governments. There are signs that several governments intend to help support tech innovation, and the hope has to be that as this brings increased prosperity to individual nations, so their neighbors will follow suit.

Mteto Nyati, chief executive of MTN (South Africa’s second largest telecommunications company), says that the continent needs “partnerships between governments and mobile operators” in order to ensure that future technology, such as 5G, is widely available.

Aside from the money that Kenya’s government has invested in technological infrastructure; there are other governments showing determined efforts to embrace the opportunities that technology offers. Rwanda aims to become Africa’s first “cashless society” in terms of the public sector, and it has spent 15 years working to digitize much of society.

What is most exciting in such a fast changing continent is that this leap forward in tech innovation can help solve long term difficulties faced by normal people. Technology commentator, Ory Okolloh, states that many African startups now are “thinking about innovative ways to solve real problems in the market.” The next generation of African entrepreneurs looks set to benefit from a continent that has truly embraced technology.

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