Platform to deepen ties in Africa
THE world’s youngest continent was once the fastest-growing region, yet poverty persists, job creation is slow and inequality is rising.
Learning from the past 25 years, what investments can today’s leaders make to transform Africa’s youth over the next 25 years?
President Jacob Zuma believes this will not only be a platform for the country to promote African culture and economic development, but also provide an opportunity for South Africa to deepen its relations with sister nations on the continent.
Will the World Economic Forum (WEF) help us market our story that all is not doom and gloom in South Africa?
The founder and executive chairman of the Sekunjalo Group, Dr Iqbal Survé, has been appointed to the Stewardship Board of the WEF Shaping the Future of Information and Entertainment System Initiative, where he will be expected to impart his leadership on media technology and future of media as a tool for social change.
WEF on Africa will convene regional and global leaders from business, government and civil society to explore solutions to create economic opportunities for all.
One of the co-chairs will be our very own Siyabonga Gama, group chief executive of Transnet.
More than 1 000 delegates are expected to attend the conference.
The direct impacts are activities that are aligned with hosting of conferences and their contribution to the province’s GDP.
These are receipts generated by hotels, tour operators, travel agents and restaurants.
The indirect impacts are due to the expenditure of participants and promoters of conventions and the jobs created as the result of hosting conferences.
The province is using big conferences to boost its economy. The host country being the only African G20 economy is championing reforms to eradicate extreme poverty and promote shared growth nationally, regionally and globally, something we should be doing continuously to be recognised as the Gateway to Africa, a position we lost to Nigeria years ago.
The host city, Durban, which has the busiest industrial port in subSaharan Africa, offers insight into how trade in regionally manufactured goods can strengthen economic resilience and create jobs.
Presently, Africa is facing a mixed outlook for growth.
The economic growth forecast for the continent over the coming year is expected to be lower than the 5% average of the past decade. This is largely due to the dip in commodity prices and the economic slowdown in China. That said, a number of countries are growing above 6% per annum and foreign direct investment inflows continue to rise.
Overall, the divergence of Africa’s economies makes it imperative to address the challenges posed by a growing unemployed youth population and climate change, among others.
The impact of the headwinds for commoditydependent countries has refocused attention on the urgency of economic diversification, revitalisation of manufacturing and harnessing of human innovation to weather the economic storm.
The Fourth Industrial Revolution offers new opportunities to achieve inclusive and sustainable growth by fast-tracking market integration in Africa through industrial corridors.
The WEF was recognised in 2015 as the International Organisation for PublicPrivate Co-operation by the Federal Council of Switzerland, which offers organisational capacity – including convening power, community management excellence, insight generation and platform technology – for the benefit of all actors in Africa.
This is done by responding to challenges related to the following System Initiatives and shaping the future of:
Digital Economy and Society.
Economic Growth and Social Inclusion.
Education, Gender and Work. Energy. Environment and Natural Resource Security.
Financial and Monetary Systems.
Food Security and Agriculture. Health and Healthcare. International Trade and Investment.
Long-Term Investing, Infrastructure and Development, and Production.
Participants will explore challenges and opportunities, deepen insights and foster coalitions around instruments that could be used to achieve inclusive and sustainable growth.
For example, the Fourth Industrial Revolution offers new opportunities to fasttrack market integration in Africa through industrial corridors by connecting markets, revitalising manufacturing and integrating innovation. In this context, the 27th WEF on Africa will address the following topics that underpin the programme: Connecting markets: The increased prioritisation of investment in infrastructure over the past decade has boosted trade in Africa. Transport corridors are an increasingly common approach to accelerating cross-border investments.
Africa’s expansive geography makes it challenging to reach scattered rural communities cost-effectively.
How can broadband access by satellite close the continental digital divide?
Almost 90% of Africa’s international trade is conducted by sea, yet port delays account for about 10% of import costs.
How can investment in regional shipping hubs boost trade efficiency?
Revitalising manufacturing:
According to the African Development Bank, the continent’s manufacturing exports doubled between 2005 and 2014 to more than $100bn with the share of intra-African trade rising from 20% to 34% over the same period. However, Africa’s share of global manufacturing exports remains less than 1% compared with over 16% for East Asia.
How can buyer-driven commodity chains upgrade the fashion and textile industries? Integrating Innovation: Technological innovation is rapidly evolving under the Fourth Industrial Revolution.
As such, significant investment is required to strengthen the continent’s skills base, particularly in applied sciences and engineering.
Sanjith Hannuman is managing director of Avinash Consultant &
Actuaries.