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

23 November 2017 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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Facebook to open Nigerian hub next year in African tech drive

22 November 2017 Comments (0) Actualites, Africa, Technology

LAGOS (Reuters) – Facebook will open a “community hub space” in Nigeria next year to encourage software developers and technology entrepreneurs and become the latest technology giant to pursue a training programme in fast-growing Africa.

The U.S. social media company said the centre would host an “incubator programme” to help develop technology start-ups, while it will also train 50,000 Nigerians in digital skills.

Africa’s rapid population growth, falling data costs and heavy adoption of mobile phones rather than PCs is attracting technology companies looking to attract more users.

Facebook did not provide details of the period over which its planned training would take place in Nigeria, which is Africa’s most populous country with 180 million inhabitants.

“We understand the important role Facebook plays here in Nigeria with developers and start-ups and are invested in helping these communities,” Emeka Afigbo, its regional head of platform partnership, said in a statement on Wednesday.

Facebook said the training – aimed at software developers, entrepreneurs and students – would be offered in cities including the capital, Abuja, Port Harcourt in the south, Calabar in the southeast and Kaduna in the north.

Last year Facebook founder Mark Zuckerberg visited technology companies in Lagos and his charitable foundation provided $24 million to Andela, which trains developers.

Google’s chief executive in a July visit to Lagos said the company aimed to train 10 million people across the continent in online skills over the next five years. He also said it hoped to train 100,000 software developers in Nigeria, Kenya and South Africa. [L5N1KH9WQ]

Although Africa may not offer as much opportunity to add consumers as China or India, because large wealth gaps mean that many people in places like Nigeria have little disposable income, Facebook said more than 22 million people already use its social media website every month in Nigeria.

Widespread poverty means mobile adoption tends to favour basic phone models. That, combined with poor telecommunications infrastructure, can mean slow internet speeds and less internet surfing, which tech firms rely on to make money.

 

(Writing by Alexis Akwagyiram; editing by Alexander Smith)

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Zambia’s central bank says delayed IMF programme affecting kwacha currency

22 November 2017 Comments (0) Actualites, Africa

LUSAKA (Reuters) – Zambia’s central bank governor said on Wednesday the delay in reaching a conclusion for an aid programme with the International Monetary Fund (IMF) was putting pressure on the kwacha currency.

Zambia and the IMF agreed in October to chart a new path towards debt sustainability after the IMF delayed the conclusion of talks with Africa’s No.2 copper producer, saying it was at high risk of debt distress.

The government had said it hopes to get board approval from the international lender by the end of 2017

“It is more of sentiment because the fundamentals point to continued appreciation,” central bank governor Denny Kalyalya told a media conference.

“One of the factors has been that players were looking to the conclusion of an IMF programme before the end of the year.”

The kwacha currency slid to 10.0850 per dollar on Wednesday from about 9.0000 three months ago and traders said it was due to increased dollar demand and short foreign currency supply.

 

(Reporting by Chris Mfula; Editing by James Macharia)

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New Reforms in Nigeria to Attract Foreign Investment

21 November 2017 Comments (0) Africa, Politics

Oluyemi Osinbajo Nigeria

Foreign investment dropped in Nigeria with the fall of oil prices three years ago, but they have started to return thanks to reforms made recently by the Nigerian government. Earlier this year, Nigerian Vice President Oluyemi Osinbajo, acting for President Muhammadu Buhari during his medical leave, signed several executive orders aimed at improving business processes under the acting authority of the Presidential Enabling Business Environment Council (PEBEC). As part of a government bid to bring back foreign investment, changes to port procedures, business registration, and certificates for importing capital, have been declared.

Port Procedures

According to the Oxford Business Group, a key factor of the reforms was a move to tighten operations at Nigeria’s ports by reducing the number of agencies needed to clear cargo, creating single checkpoints for goods in transit, and banning non-official workers from the area. In the past 14 agencies were required to clear cargo at the port, but this has been reduced to seven. Now these seven agencies must act as a single task force, at a central location, and payments must be made through the Corporate Affairs Commission website (CAC). Only on-duty personnel will now be allowed in secure areas at ports and airports. The government hopes these reforms will quicken processes at entry points, and curb bribery and corruption.

Business Registration

Another way in which the reforms hope to dissuade corruption in the country is by making processes more transparent. Business registration will now be automated through the CAC website, via an online payment transfer, and all state agencies are required to publish a list of fees and conditions for business registration and license applications online. These agencies must also publish a set time-line for applicants, and if a response is not given in time, the application will be approved by default. In the past, new applications had to be made by visiting the country. These changes to the system mean investors can now register their business without having to come to Nigeria, saving both time and money.  

Electronic Certificates

According to Reuters, the central bank of Nigeria recently announced plans to issue electronic certificates for capital imported into the country, which will also save investors a lot of hassle. The electronic certificate will replace the hard copy issued previously, which investors or companies were required to get in just 24 hours, according to a 1995 law. The certificate is a declaration that the company has invested foreign currency in Nigeria and is necessary for the company to repatriate returns on those investments. Investors have complained in the past, that they have struggled to meet the one-day deadline.   

World Bank Doing Business Ranking

With a population of 180 million, Nigeria is still an attractive place for investment, however implementation and operating costs are high, and security within the county remains an issue. The country ranked 169th out of 190, in the 2017 World Bank ‘Doing Business’ survey, an improvement of one place from 2016, but a drop of 50 places in the last eight years. For starting a business, the country ranked 138th, for getting a construction permit, 174th, and for registering property, 182nd. The World Bank listed eight areas for improvement: starting a business, construction permits, getting electricity, getting credit, registering property, trading across borders, paying taxes, and the entry and exit of people across borders.  

Approval for Reforms

The International Monetary Fund (IMF) which said much more needed to be done to raise Africa’s biggest economy out of recession in March, has praised the new reforms. According to the Oxford Business Group, the IMF lauded Nigeria’s commitment to improving business transactions and investment inflows, and noted that the central bank’s foreign exchange trading window was a boon for investors. Investors needing to settle trade-related requirements in US dollars could now do so by phone, and at rates set by the buyers and sellers themselves, rather than by the bank or the market. The IMF said the moves would curb the market premium and push foreign reserve levels above the $30 billion mark. As dollars have been in short supply in Nigeria since the oil price drop, the country has had to look at new ways to attract foreign investment.

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Foloker Folarin-Coker wants to take her Nigerian label global

20 August 2017 Comments (0) Africa

Foloker Folarin-Coker is not a name that is as famous as some within the world of fashion, but she has created an African fashion label that has not only proved hugely popular within the continent, but has begun to attract attention from further afield. Folarin-Coker has already achieved many firsts for an African fashion designer, and is determined to build her label into something even greater.

Self-taught Success

Foloker Folarin-Coker was born in Lagos, Nigeria in 1974, and at a young age she went to Switzerland and the UK in order to further her education. Folarin-Coker eventually graduated with a master’s degree in petroleum law, and returned to Nigeria in 1996. While her education seemed to be leading to a career in law, her real passion was in fashion, and despite having no background in the competitive industry, she created a small collection of her own designs upon her return home.

By 1998, Folarin-Coker had launched her label, Tiffany Amber, and the label has gone on to become one of Nigeria’s most popular fashion brands. The label’s domestic success led to 4 stand-alone stores in Lagos and Abuja, and Folarin-Coker became the first winner of the “Designer of the Year” award at African Fashion Week in 2009.

However, it is not just in the domestic market in which the Tiffany Amber line has proved popular, as Folarin-Coker was invited to showcase her designs at the New York Fashion Week in 2008. Her collection was met with such praise that she was invited back the following week, becoming the first ever African designer to present a range twice at the prestigious event.

Continued Expansion

Folarin-Coker continued to innovate after her breakthrough into international recognition, and in 2008 she launched two new ranges within her company. TAN by Tiffany Amber is a diffusion line that was launched alongside Folake Folarin, which is a couture line

In 2013, Forbes magazine listed Folake-Folarin as one of Africa’s 20 Young Power Women, and by 2014, the self-taught designer had staged more than 60 fashion shows at home and abroad.

Another line, Tiffany Amber Living, was added to her burgeoning portfolio, and Folarin-Coker says that her success was based on the principle of reinvention without changing the core of the brand. The designer explained, “Continuously reinvent yourself but don’t change the DNA of the brand’ –that’s what I believe, everyone knowing what the Tiffany Amber look is, is what has kept us.”

As the designs continue to prove popular and her range continues to grow, Folarin-Coker is determined to create a brand that remains iconic long after she is no longer around. She has said that her ethos is to work for the future as opposed to the present, and she has a firm belief in the talent within the Nigerian fashion industry.

As she continues to look forwards, Folarin-Coker says that her goal is to “have a presence all over Africa and ultimately every major city of the world.” Only time will tell whether these grand designs for the future are achieved, but thus far her goals have certainly been met with success.

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Nigeria’s President continues to divide opinions

5 August 2017 Comments (0) Africa, Politics

Muhammadu Buhari

When Muhammadu Buhari was elected as Nigerian President in March 2015; it was the culmination of a long and controversial involvement in Nigerian politics. While many have criticized his record on human rights, others have praised his seemingly incorruptible nature, and efforts to battle domestic terrorism. As recent health concerns have yet to be fully abated, the future of the President remains uncertain.

A history of political struggle

Muhammadu Buhari was born on December 17th 1942, in Daura, Katsina State, to a large family in which he was the 23rd child. By the age of 19, Buhari had joined the military, and within one year he had been sent to the UK for officer training. Buhari returned to Nigeria in 1963 and from here, until his election in 2015, he was rarely away from the political struggles within the country.

After serving the government in the Nigerian Civil War, Buhari was involved in the 1966 Counter Coup, before supporting the 1975 Coup that briefly led to him taking on nonmilitary roles within the new government.

But it is the 1983 Coup, that he led, which threw him into the limelight. Buhari took power from January 1984 until August 1985, in which time he led a fierce stamp down on political corruption, indiscipline and rising crime. While the measures were seen by many as necessary for economic reform, widespread human rights abuses were reported, and press freedom was severely curtailed.

Buhari’s brief stint in power came to an end in 1985, when he was overthrown and put into detention for 3 years. However, his ambitions as a leader saw him return to politics with a failed Presidential bid in 2003, followed by two more attempts at gaining democratic election in 2007 and 2011.

Legitimacy and the Future

Buhari finally succeeded in becoming the democratically elected President in March 2015, when Nigeria elected him to replace incumbent leader, Goodluck Jonathon. Buhari’s commitment to breaking the cycle of corruption within Nigerian politics was almost immediately displayed when he had former national security advisor, Sambo Dasuki, arrested for embezzling $2 billion worth of funds that were assigned for the battle with Boko Haram.

Several other senior government figures have also found themselves in jail, as Buhari looks to cut out the rot that he feels has hampered Nigerian progress for too long. However, this has echoes of similar moves that he made in his brief run of power in the 1980’s, and the world’s leaders are unlikely to be supportive of the other measures that Buhari employed at the time, including executions for drug users, and public floggings for people who did not line up at bus stops in an orderly fashion.

Thus far, none of the obvious abuses of the past have manifested themselves under Buhari’s new leadership, and there has been marked improvement in the security in Nigeria’s north-eastern region, which has borne the brunt of much of the nation’s Islamic extremism.

However, a recession hit Nigeria soon after Buhari’s electoral triumph, and Islamist forces pushed out of the north-east have begun to increase attacks within the nation’s oil rich, Niger Delta region. Buhari has also faced criticism over his recognition of women in government, as his cabinet is only 16% female, compared with the previous regime’s 31%.

Major concerns over Buhari’s health

Most recently, there have been major concerns over Buhari’s health, and whether he would be capable of continuing in power. In January of this year, Buhari traveled to the UK for treatment on an unspecified condition, and remained there for 7 weeks, before returning to Nigeria in March. Buhari then returned to London for more treatment on May 7th, and thus far has not gone back to his nation.

Although his wife has assured concerned Nigerians that he is recovering well, there is a growing demand in Nigeria for him to be declared unfit, and while vice president, Yemi Osinbajo, has been in control during Buhari’s absence, there are several other potential leaders looking for their chance to take the top post.

Buhari is a man who has fought in wars, coups and survived an assassination attempt in 2014; so regardless of ones opinion on his policies, it cannot be said that he is easily broken. The future of his leadership looks uncertain, but if he is physically capable, then we can be assured he is likely to do his utmost to retain his position.

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Tida Jallow: Giving Gambians a Reason to Stay Home

23 March 2017 Comments (0) Africa, Featured

Many of Gambia’s young people are leaving. Packing their things with what little they have, and making a perilous journey across the Sahara Desert to Libya and from there, across the Mediterranean Sea to Europe. Tida Jallow, a Gambian seamstress and fashion designer is part of an initiative to curb the mass exodus before Gambia loses all its young people.

Dreams of Europe

Nicknamed the ‘Back Way’ this popular route to Europe is tried by many Africans who have no chance of obtaining a visa and leaving through official means. According to the BBC, Gambia, with a population of less than two million, by percentage of population, accounts for more people heading to Europe than any other nation. With Europe, worried about over-migration, in Gambia it is the opposite that worries people. With so many young able bodied people leaving for greener pastures, there is no one to help out on the farms and bring in the harvests in the villages.

Where an average daily income is $1.25, it is not surprising that people dream of a better life. In a country where the cell phone network is better than any local infrastructure, almost everyone can surf the web via their phone. Social media photos of friends and relatives in Europe decked out in designer brands only add to the incentives to leave. Families whose relatives send back money, have corrugated roofs and satellite dishes on their new houses.

No to the ‘Back Way’

In an effort to give people a reason to stay in Gambia, Jallow trains villagers the art of tailoring in her boutique in western Gambia. Even so, four of her apprentices have already left for the ‘Back Way,’ including her half-brother. Even in Jallow’s tiny village, around 50 people have taken the ‘Back Way. People understand the risks, says Jallow. They have all heard stories about dying in the Sahara or drowning at sea, yet they continue to leave. There is also a risk of being kidnapped, trafficked raped and murdered. Jallow’s brother, who she trained as a salesman, died recently in Libya.

Chief Executive Officer of the Anti-Back Way Campaign, Mustapha Manneh trains youth people to gain agriculture and farming skills. “People always think life will be better in Europe,” he says. “Speaking personally though, I wouldn’t want to be an illegal migrant anywhere.” Mr Mannah points out that many youth people leaving the country dramatically lack skills. His organisation will pay a visit to schools in order to make them aware of the many dangers of taking the ‘Back Way’. Young people are vital to the development of Gambia, but more job opportunities are needed to keep them from leaving the country.

A New Leader

Ruled for more than two decades by President Yahyah Jammeh, a man accused of killing and jailing his critics, many Gambians claimed political asylum upon reaching Europe. Although it is understood that many genuinely left for economic reasons. With the arrival of a new president however, Gambia’s economy may take a turn for the better. Adama Barrow won the election in December 2016, by 50,000 votes. After some back-peddling by former President Jammeh, Barrow was sworn in and promises to revive the economy.

Barrow himself, left for Europe as a young man, and understands the pull for young people to leave Gambia. “You hear the name Europe, you think it’s heaven. It’s never like that,” he said. After working as a security guard for three years in London, Barrow returned to Gambia in 2006. He then set up a successful real-estate agency before being elected President of Gambia. A story that shows there may be some more hope for Gambians willing to stay after all.

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Mark Shuttleworth: Africa’s first dot com millionaire

4 March 2017 Comments (0) Africa, Leaders

With a net worth of $500 million, a trip to space, three successful businesses and a not-for-profit under his belt, it is not surprising that South Africa’s Mark Shuttleworth is an inspiration to many in a country still emerging from apartheid, and still plagued by rampant poverty and corruption.

The Emergence of Thawte

Shuttleworth’s success story stared in 1995, whilst still a student at the University of Cape Town, Shuttleworth created Thawte, a consulting firm that became a world provider of digital certification, a trusted third party that could be used to create secure connections to a server via the internet. According to AFKInsider, it was the first ever full-security encrypted ecommerce web server commercially available outside of the United States. Shuttleworth sold the firm in 1999 to US based company VeriSign, who at that point owned 50 percent of the market, the other 50 percent belonging to Thawte. VeriSign bought the company for $575 million when Shuttleworth was only 26 years old.

With the profits from the sale of Thawte, Shuttleworth could easily have retired. Instead he used his capital to help other South African’s find their potential. In the year 2000, Shuttleworth created HBD Venture Capital, a company which invests in local South African businesses with international potential and in 2001, The Shuttleworth Foundation, a non-for-profit that aims to improve access to, and quality of, South African education. Shuttleworth was still looking for new challenges, however, and began to embark on the long journey that would lead him to being a space tourist.

Shuttleworth Becomes the First African in Space

In 2002 Shuttleworth became the first African ever to travel to space and the second private citizen ever to self-fund a trip to space. At a personal cost of $20 million, Shuttleworth bought a seat on a Russian spacecraft and began training. He trained for nearly a year, seven months of which were spent at Russia’s Star City, at the Yuri A Gagarin State Scientific Research and Testing Cosmonaut Training Center. He became part of the Russian Soyuz TM-34 crew and visited the International Space Station (ISS). Shuttleworth spent eight days aboard the ISS where he conducted scientific experiments for South Africa. He returned to Earth on May 5th, 2002, but his incredible feats don’t stop there.

After returning from space, Shuttleworth founded yet another company, the Ubuntu project, a computer operating system that would be completely free. Based on a version of the Linux computer operating system that is open source, Ubuntu, roughly translates to ‘human-ness’ in the South African Nguni Bantu language. It also means ‘I am what I am because of who we all are,’ which works with Shuttleworth’s idea that the software could be edited and improved upon and shared for free. Without heavy licensing fees, Ubuntu could reach a wider audience and be shared by people who could not afford other operating systems. However not every move Shuttleworth has made has been supported by the people of South Africa.

Shuttleworth in Court over Exit Charge Levy

In 2009 Shuttleworth decided to leave his home in South Africa and move to the Isle of Man. In doing so, he also decided to move approximately $177 million in capital from South Africa with him. The South African Reserve Bank, however, charged him a $17.7 million exit fee that would need to be paid in order to release the businessman’s assets. He paid the exit charge, but then sought to recoup the levy. Shuttleworth argued the government’s position around foreign exchange controls constrained small business and sought to have the exit fee returned, with interest.

According to ITWeb, the legal battle was taken to the Supreme Court, which initially Shuttleworth won and the Reserve Bank was ordered to repay the levy amount with interest. However, the Constitutional Court, the highest in South Africa, overturned the Supreme Court as they found the exit charge was in place to regulate conduct, not to raise revenue and the ruling was overturned.

The Reserve Bank did not have to repay Shuttleworth the exit charge with interest and he was repaid nothing.

Although the move out of South Africa may have soured his relationship with his country a little, Shuttleworth continues to be an inspiration for young South African entrepreneurs. He now has dual citizenship with the UK and South Africa and continues to run Ubuntu and Canonical. Never resting for long, it will be with great interest to see what the future holds for Africa’s first dot com millionaire.

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Military Base Expansion: an End to Japan Peace State

14 February 2017 Comments (0) Africa, Featured

A Japanese military base in Djibouti, on the East African coast, is being expanded as part of a new militarized movement happening in Japan and as three Japanese government sources have revealed, to counter Chinese influence on the continent.

Since 2011, a Japanese Self Defense Force contingent has occupied a 12 hectare site in Djibouti and operated a maritime patrol aircraft from the base. Originally described as a ‘facility’ rather than a military base, United Press International (UPI) reports the area houses air, land and sea-based forces as part of an active, ongoing anti-piracy mission in the Gulf of Aden. According to UPI this offers Japan increased cooperation with allied partners and further projects military power.

A Japanese Defense Ministry spokesman said that in addition to the land Japan had borrowed, it was considering leasing additional land to the east. Although Japan relies heavily on imports of oil and gas from the Middle East, the UPI article claims Japan’s expansion represents an agenda beyond solely protecting its economic security. According to Reuters, a Japanese government source told the agency that China’s increasing presence was the reason for Japan’s rising involvement.

Chinese Economic Presence in Africa

Chinese investment in African Nation’s development is increasing exponentially. In December of 2015, China pledged $60 billion as part of a loan and aid package to Africa to help with development projects, to improve agriculture and reduce poverty. According to the Wharton Africa Business Forum held in late 2015, Chinese economic presence on the continent has continued to skyrocket, from $7 billion in 2008 to $26 billion in 2013.

According to Reuters, China is seeking ties with Africa to gain access to natural resources and find new markets. However, Japan has also pledged to increase its support with $30 billion towards infrastructure, healthcare and education in Africa. China is putting money into new infrastructure and raising its presence in Djibouti, said the Reuters source. “It is necessary for Japan gain more influence.”

Expansion of Japan’s Djibouti Base

Strategically located by the Red Sea, and cornered by Ethiopia, Eritrea and Somalia, Djibouti also hosts US, and French Bases. China started construction on a military base in the country at the beginning of 2016. The base is the first overseas military facility and coastal logistics base that will provide supplies to naval vessels taking part in peacekeeping and humanitarian missions, reports Reauters.

Japan’s expansion of their base would include C-130 transport aircraft, Bushmaster armored vehicles and extra personnel, Reuters source claimed. The extra leased land would be smaller than the existing base and would cost roughly $1 million per year. The source claimed Tokyo would justify the expansion by pointing to the need to have an aircraft in the area to evacuate Japanese citizens from troubled areas. According to UPI, however they point to an increasing militarization of Japan.

Militarization of Japan

Long been described as a ‘peace state’ after a constitution imposed on the country by the United States after World War II, Japan may be leaning once again towards an era of military action.

As part of the WWII constitution, Japan’s constitution stated the country would forever ‘renounce… the threat or use of force to settle international disputes’ and that ‘land, sea, and air forces, as well as other war potential, will never be maintained’.

However, a controversial new legislation backed by Prime Minister Shinzo Abe’s government announced in March of last year, stated Japanese forces could engage in collective self-defense and come to the aid of an ally under attack. The legislation was passed against the wishes of the majority of polled Japanese citizens who opposed it and in direct violation of the constitution.

Stepping back from seven decades of state pacifism, Prime Minister Abe is seeking to give Japan’s SDF a greater role in regional and global affairs. Djibouti’s military base may be just the beginning of Japan’s military operations.

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Africa looks set to for a revolution in technological innovation

18 December 2016 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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