Tag Archives | natural resources
South African is not the only country in Africa with a tangible National Development Plan. Côte d’Ivoire, ranked 167th by the World Bank, articulated its economic strategy in 2012. The country aims to become a significant player in the emerging markets by 2020. To this end, it has developed a strong-minded foreign policy, which has helped its position as a leading economic power in West Africa region.
Tony Elumelu, the Nigerian entrepreneur who built up Lagos-based Heirs Holdings into an investment powerhouse, has stars in his eyes. That is to say, he has recently invested in a US satellite technology company called Planet Labs.
The Partner and Global Chairman, Energy and Natural Resources Sector, KPMG, Mr. Michiel Soeting, has said that the discovery of shale gas in the United States, which is a major importer of Nigeria’s crude oil, would pose a threat to Nigeria and at the same time provides an opportunity for the country to diversify its economy.
In recent years there has been a marked upsurge in Burkina Faso’s gold production, fostering hopes that this very poor, landlocked West Africa nation is finally on the road to greater economic prosperity.
Africa is a resource-rich economy as is reflected in its trade relationship with China, a region which is not as rich in natural resources. With almost 80% of Africa’s exports to China coming from just 4 natural resource commodities, a large portion of the continent’s GDP growth has been driven by demand from Chinese investors.
Technology is playing an increasingly important role in natural resource management, from streamlining to reporting processes. One example can be found in Kenya’s Ngong’ hills, just outside the capital Nairobi. Here, the misty clouds provide dew that helps the grass to grow which in turn feeds the Maasai tribal community’s animals.
Africa’s economies have been expanding robustly as new discoveries of coal, oil and gas look set to create substantial business opportunities and transform the continent’s economies. The continent not only is a major producer of diamonds, nickel and uranium, but also holds 40% of the world’s gold, 60% of cobalt and 90% of its platinum reserves. Africa’s growth, however, results from more than a resource boom, having been supported (amongst other factors) by external trends such as its’ increased access to international capital and ability to forge economic partnerships with foreign investors.
While the world may have seen tougher economic times, it can be said that the South African economy was not previously as connected and global in impact as now. The South African economy is primarily resource-driven and there is a marked impact when the energy and natural resources (ENR) sector does not perform well.
Following on from our previous post, Country Focus Seminar: Mozambique, we take a look at some of the challenges and opportunities cited by Miguel Alvim, Advisory Managing Partner at KPMG Mozambique.
Seven of the world’s ten fastest growing economies are in Africa, 52 African cities have populations of over 1 million people and by 2040 it is expected that 1.1 billion Africans will be of working age. Africa has 60% of the world’s uncultivated, arable land; 56.7% of the world’s diamond (gemstone) production, 66% of the worlds’ cocoa production, 10% of the world’s oil reserves, 80-90% of the world’s platinum group metal reserves and 40% of the world’s gold reserves.
It is projected that by 2016, over 500 million Africans will live in urban centres, and the number of cities with more than 1 million people is expected to reach 65, compared to 52 in 2011. This is already on par with Europe and higher than India and North America. With 40 percent of its population living in cities, Africa is more urbanized than India (30 percent) and nearly as urbanized as China (45 percent).
Whilst Africa is often perceived as a mysterious, underdeveloped continent, it’s quickly becoming one of the most valuable emerging markets for infrastructure. In fact, infrastructure development – in the form of megacities – is one of the key strategic priorities for senior African leaders. What’s driving infrastructure development in Africa?
There is no question that poor infrastructure development is one of the greatest inhibiting factors for economic and social development across Africa, or that the continent’s rich natural resources are its best leverage for turning this situation around …
Being the economic hub of the continent, benefits to South Africa will have spill-over benefits for the rest of Africa. According to BRIC architect Jim O’Neill (who was originally sceptical about South Africa’s inclusion in the grouping), South Africa has an important role to play, both as a gateway to the continent and as a catalyst for African integration.
A panel of experts explore the challenges & opportunities associated with investing in Ghana.
Ghana is one of Africa’s fastest growing economies. Well-endowed with natural resources, agriculture accounts for approximately a quarter of GDP and employs more than half the country’s work-force.
Gold, cocoa and timber exports are the major sources of foreign exchange. Imports such as capital equipment, petroleum and food products are sourced mainly from China and the US.
Home to 43-million people, Tanzania ranks amongst the poorest countries in the world.
The country is reliant on agriculture which accounts for more than 25% of GDP, 85% of exports and employs 80% of the countries workforce.
Tanzania is endowed with vast natural resources and is the only country in the world where Tanzanite is found. The country is also the third-largest producer of gold on the continent which it exports to China, India and Japan.
Nigeria is the most populous country on the African continent with approximately 150-million people and is the 32nd largest country with the 41st largest economy in the world.
According to the World Bank, Nigeria is classified as a mixed economy, emerging market. Nigeria has reached middle income status, with well developed financial, legal and transport sectors. Nigeria boasts the second largest Stock Exchange in Africa and enjoys an annual economic growth of 7%.
Many JSE companies are seeing Africa as the new frontier and an important source of long-term growth, especially those companies doing business in mature markets. The International Monetary Fund forecast the region to grow at 5.5% both this year and next. By comparison, South Africa’s economic growth rate is forecast at just 2.7%.