Tag: July 2013

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Online Education Could Boost African Development

Post author By David South Consulting
Post date 20/10/2022
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By David South, Development Challenges, South-South Solutions

Education is recognized as a major catalyst for human development. During a high-level meeting on the Millennium Development Goals (MDGs) (http://www.undp.org/content/undp/en/home/mdgoverview.html) in 2010, UNESCO – the United Nations Educational, Scientific and Cultural Organization – pointed out the necessity of making rapid gains in education if all the MDGs are to be achieved. The goals deadline is 2015 – just two years away.

Two of the eight goals are directly related to education systems. MDG2 focuses on boosting universal primary education by 2015, and MDG3 calls for the elimination of barriers to primary and secondary education for women and girls.

UNESCO found that between 2000 and 2007, the share of total government education expenditure devoted to primary education across sub-Saharan Africa fell from 49 per cent to 44 per cent (Rawle, 2009). It also found total aid for education was on the decline and foreign aid for basic education began to stagnate in 2008. This contrasted, UNESCO stated, with the “strong advances made over the past decade.”

Overall, in the countries of sub-Saharan Africa, resources for education fell by US $4.6 billion a year on average in 2009 and 2010 (UNESCO, 2010).

With funding for education dependent on fluctuating factors such as foreign aid, government budgets and the state of the global economy, alternatives are needed to retain the gains made in education and to improve them even further.

Thankfully, one new innovative learning tool, dubbed massive open online courses (MOOCs) (http://en.wikipedia.org/wiki/Massive_open_online_course), is about to have a major impact in Africa. Rapid improvements in access to the Internet in Africa means that online learning tools could be a growing solution to the education deficit.

MOOCs mean people will have access to a global treasure trove of free online courses in science, technology, engineering and math. Many believe the leapfrog into digital education will do for education what mobile phones have done for African’s ability to communicate and do business.

These online courses vary in approach – some have set start and finish dates and can last from six to 10 weeks, while others are more loosely structured. But they all offer students the ability to learn from online video lectures and use online forums as a replacement for seminars, debates and question-asking.

According to a recent paper by Harvard University Professor of International Development Calestous Juma, “There is a real possibility for Africa to dramatically improve its teaching – especially in science, technology, engineering, and math – through the deployment of MOOCs.”

The diffuse nature of the Internet means many of the drivers behind promoting this trend in Africa will be found at the regional rather than the national level. The Internet helps remove the dependence on national governments and their education policies and funding – or lack thereof – to further education goals. This means the ability to make the most of the powerful new resource of MOOCs will be amplified by innovators within Africa, from entrepreneurs to information technology pioneers.

Their solutions will help make it easier to access these learning resources.

MOOCs are a variation on OpenCourseWare (http://en.wikipedia.org/wiki/OpenCourseWare) university courses, created for free distribution on the Internet. MOOCs bypass the hazard in the past of digital courses going missing or being mislaid: they are online and always available. Nobody can mislay the content by accident.

The Khan Academy (khanacademy.org) is one of the best-known popular MOOCs pioneers. It was founded in the United States in 2008 by Salman Khan, who quit his job as a hedge fund manager to run the business full time. Khan is academically highly accomplished – he has three degrees from MIT and an MBA from Harvard University. The Khan Academy targets mainly secondary school students and claims to have 5.5 million unique users a month. It is run as a not-for-profit and receives donations to keep it going.

It does this with a staff of just 37: proof of how much can be achieved when the power of the Internet is leveraged to pass on knowledge.

The Khan Academy platform greets readers with questions such as “What is the eccentricity of an ellipse?” or “What if there’s a negative exponent?” And if you do not know, you better get cracking doing their problem sets. Students can practice their math skills, answer other students’ questions or watch a video walk-through of the services on offer on the website. The main categories are math, science and economics, computer science, the humanities and help with preparing for various standardized tests such as the GMAT (Graduate Management Admission Test). There are over 4,000 videos on offer on the website.

“Each video is a digestible chunk, approximately 10 minutes long, and especially purposed for viewing on the computer,” the website states.

“I teach the way that I wish I was taught. The lectures are coming from me, an actual human being who is fascinated by the world around him,” states Khan.

MOOCs offer not just course materials, videos, readings and problem sets but also discussion forums for the students, professors/teachers and tutorial assistants to build a community. This is considered an ideal model for reaching students over great distances and in remote regions. So-called “open” educational resources are used and often no fees or tuition are charged.

The OpenCourseWare (OCW) (http://ocw.mit.edu/index.htm) project at the Massachusetts Institute of Technology (MIT) seeks to “publish all of our course materials online and make them widely available to everyone,” according to Dick K.P. Yue, Professor at MIT’s School of Engineering.

Through its website, it offers nearly all of MIT’s course content, a treasure trove from one of the top research universities in the world, a long-standing home for pioneers and innovators in science and technology.

By way of the Internet, anybody anywhere in the world can access this resource. The most visited courses online as of February 2013 included undergraduate “Introduction to Computer Science and Programming,” “Physics I: Classical Mechanics,” “Introduction to Electrical Engineering and Computer Science I,” “Principles of Microeconomics,” “Introduction to Algorithms,” and “Principles of Chemical Science.” There are 2,150 courses and so far 125 million visitors to the website.

Having access to the courses allows teachers to gain new insights into the subjects they teach and benefit from the impressive resources of MIT.

MIT also sees it as a way to aid people to tackle the big development issues of our time, including climate change and health problems such as cancer.

Other MOOCs providers include Peer-to-Peer University (https://p2pu.org/en/), Udemy (udemy.com), Coursera (coursera.org), Udacity (udacity.com), and edX (edx.org), a not-for-profit partnership between Harvard and MIT to develop courses for interactive study on the Internet.

In the United Kingdom, the Open University (open.ac.uk) and Futurelearn (http://futurelearn.com/) also offer online courses, as does Open2Study (http://www.open.edu.au/open2study) in Australia.

Boosting access to MOOCs presents a great business opportunity for Africa’s mobile phone entrepreneurs and its mushrooming information technology (IT) hubs (https://africahubs.crowdmap.com/).

“I view online learning as a rising tide that will lift all boats,” Anant Agarwal, professor of electrical engineering and computer science at MIT and president of edX, told The Financial Times. “It will not only increase access, it will also improve the quality of education at all our universities.”

All of this matters because it means Africans will increasingly have the tools to participate in the global marketplace of ideas and products and services on a more level playing field. By far the biggest obstacle to competing is the lack of timely information and knowledge about what is happening in the global economy. It is a frequent complaint, from the farmer desperate for the latest news on market prices and trends and innovations, to the strivers in the growing megacities of the continent who have their sights set on global success.

Published: May 2013

Resources

1) African Union’s High Level Panel on Science, Technology and Innovation. Website: http://belferinthenews.wordpress.com/2012/08/03/calestous-juma-to-co-chair-new-au-panel-on-science-technology-and-innovation/

2) Queen Elizabeth Prize for Engineering: The Queen Elizabeth Prize for Engineering is a new global engineering prize that will reward and celebrate an individual (or up to three individuals) responsible for a ground-breaking innovation in engineering that has been of global benefit to humanity. Website: http://www.qeprize.org/

3) Belfer Center for Science and International Affairs: The Belfer Center is the hub of the Harvard Kennedy School’s research, teaching, and training in international security affairs, environmental and resource issues, and science and technology policy. Website: http://belfercenter.ksg.harvard.edu/

4) A place to host MOOC news and information. Website: http://mooc.ca/

5) OpenCourseWare Consortium: The OpenCourseWare Consortium is a collaboration of higher education institutions and associated organizations from around the world creating a broad and deep body of open educational content using a shared model. Website: http://www.ocwconsortium.org/

6) Engineering the Future by Calestous Juma, Professor of the Practice of International Development at Harvard Kennedy School. Website: http://www.technologyandpolicy.org/2013/03/18/engineering-the-future/#.UUeWY1fm8 g4

7) Hiobo MoPC: Joining the ongoing push to drive down the price of personal computers in Africa is the latest offering from Mauritian information technology company, Hiobo. Website: http://www.hiobo.com/mopc/

London Edit

31 July 2013

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP’s South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South’s innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.

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ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2023

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Staple Foods Are Becoming More Secure in the South

Post author By David South Consulting
Post date 14/10/2022
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By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

Finding ways to ensure food security in countries experiencing profound economic and social change and stress is critical to achievement of development goals.

Food security is crucial to ensuring economic development is sustainable, and it is vital to long-term human health. Just one bout of famine can damage a generation of youth, stunting brain development and leaving bodies smaller and weaker than they should be.

Thankfully, many innovators are working on this problem and are making significant progress. A report from the Asian Development Bank, The Quiet Revolution in Staple Food Value Chains (http://www.adb.org/publications/quiet-revolution-staple-food-value-chains), found improvements to security of rice and potatoes – common staple foods in many countries. It said the so-called value chains – the various activities a company does to deliver a product or service to the marketplace (http://en.wikipedia.org/wiki/Value_chain) – for potatoes and rice have seen significant improvements in Bangladesh, China and India.

This is important because improvements in access to staple foods will mean better food security and less threat of extreme hunger events. This matters because it just takes one extreme hunger event and a generation is scarred for life.

The human brain is a heavy user of energy: it uses between 20 and 30 per cent of a person’s energy intake. Failure to consume enough calories means brain functioning begins to be altered (brain-guide.org).

Hunger and starvation slow a person’s mental responsiveness. Low energy intake from minimal diets leads to apathy, sadness and depression. Fetuses and infants are especially sensitive to brain damage caused by malnutrition. A malnourished child can suffer life-long low intelligence and cognitive defects.

More than 70 per cent of the world’s 146 million underweight children aged five and under live in just 10 countries, with more than 50 per cent located in South Asia alone (UNICEF). A quarter of all children – roughly 146 million – in developing countries are underweight, and it is estimated that 684,000 child deaths worldwide could be prevented by increasing access to vitamin A and zinc (WFP).

Undernutrition contributes to 53 per cent of the 9.7 million deaths of children under five each year in developing countries (UNICEF).

Food insecurity also shows on the faces of people who experience it. This extreme stress scars people and harms their prospects in the labour market and their ability to improve their incomes.

Why is access to staple foods improving? It seems, according to the report, to result from innovations such as rapid modernization, with the increasing roll out of supermarkets, the use of cold storage facilities and large rice mills. It also cites the impact of small farmers taking on modern technologies, such as mechanized farming, and making the most of soil by using fertilizers and efficient techniques.

Supermarkets by their nature encourage highly sophisticated supply lines to ensure a steady stream of fresh produce coming in from farms to urban areas. Because of the variety and vast range of produce on offer, they require finely-tuned organizing models and information technologies. In short, they radically alter the way people buy their food, and what people will expect from food providers.

By negotiating deals with farmers, supermarkets create stability, as well as low and competitive prices. They allow for better traceability for food and give consumers more confidence in what they are purchasing. They use cold storage, which means food lasts longer and there is less waste than if food is left to spoil in a marketplace without refrigeration – a revolutionary change in hot countries.

The downside with supermarkets, as has been the case in some countries, is they can quickly dominate the marketplace and push out all other competitors with their economies of scale. When this happens, farmers can also find themselves with little bargaining power again and be hostage to the price the supermarket tells them to sell their product at.

Another critical improvement is the rapid spread of mobile phones. Armed with a mobile phone, small-scale farmers are able to access critical knowledge and information. This means they can make better decisions and quickly adjust what they are doing when mistakes are made.

The survey found that India is a country where the food-supply game has changed dramatically. In the past, traders would advance cash to farmers in the form of loans. But since the use of mobile phones has increased, the balance of power has shifted: farmers now have many other options to finance their operations than turning to middlemen and traders. This means they are no longer as easily manipulated by the traders and can negotiate better prices. Also, better roads, combined with greater competition to provide services to farmers, are improving farming of staple foods in general.

Among potato farmers in rural areas, 73 to 97 per cent have mobile phones and use them to organize deals with traders or receive market information. The take-up of mobile phones was also a recent development for the farmers: most had acquired a mobile phone in the last four years.

It is clear this quiet revolution in food security for staples is a result of greater use of innovative technology and taking on of new techniques.

Published: July 2013

Resources

1) How to start a supermarket in Lagos, Nigeria: A supermarket is one of the most lucrative businesses that can thrive anywhere in the world. Website: http://www.ackcity.net/supermarket-startup-in-lagos

2) Write a supermarket business plan: Templates for writing professional business plans. Website: http://planmagic.com/business_plan/supermarket_business_plan.html

3) How to get your product into a supermarket: Use this mindmap to remind you what you should be doing at every stage of the process. Website: http://www.smarta.com/advice/suppliers-and-trade/logistics-management/mindmap-how-to-get-your-product-into-a-supermarket/

4) The hidden tricks behind making a successful supermarket: Website: http://www.independent.co.uk/news/business/news/the-secrets-of-our-supermarkets-8228864.html

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ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2023

Archive Development Challenges, South-South Solutions Newsletters

Burgeoning African E-commerce Industry Full of Opportunity

Post author By David South Consulting
Post date 10/10/2022
No Comments on Burgeoning African E-commerce Industry Full of Opportunity

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

Africa has seen huge change since 2000 in the way people access information and do business electronically. The most championed accomplishment has been the widespread take-up of mobile phones. This has given birth to countless entrepreneurs and innovators who are using phones to help people, do business and sell goods and services.

Not as quick to spread, mostly because of high cost and poor infrastructure, is access to the Internet. While Web access is taken for granted in many wealthy countries and is increasingly commonplace in many developing nations, Africa as a whole still suffers from poor infrastructure for access to the Internet. But this is changing by the month as more undersea cables connect countries and bandwidth is increased (http://www.submarinecablemap.com/).

Africa’s population can be expected to at least double from 1.1 billion to about 2.3 billion by 2050 – and most will live in urban areas (Population Reference Bureau).

And incomes are rising. Africa is richer than India on the basis of gross national income (GNI) per capita, and a dozen African countries have a higher GNI per capita than China (Africa Rising).

According to the McKinsey Global Institute, “The incomes of these new consuming classes are rising even faster than the number of individuals in the consuming classes. This means that many products and services are hitting take-off points at which their consumption rises swiftly and steeply. By 2025 urban consumers are likely to inject around (US) $20 trillion a year in additional spending into the world economy.”

Research firm Jana (jana.com) – which specializes in emerging markets – studied the consumer preferences of people in Nigeria, Kenya and South Africa. They surveyed 600 consumers in each country, seeking to unearth what their preferences were when it came to using e-commerce services (https://en.wikipedia.org/wiki/E-commerce). E-commerce is the buying and selling of products and services over electronic systems such as the Internet and other computer-enabled systems. This is still a young industry in Africa and one ripe with opportunity for hardworking and innovative players. Many are starting to realize they had better move fast because this is a market that still has much up for grabs and is not – yet – dominated by mature players such as eBay or Amazon.

The survey uncovered five trends driving e-commerce in Africa. These trends address the unique conditions present in Africa and what challenges need to be met.

The first trend the firm identified is cash on delivery. This has become the main way people do e-commerce in Africa because of the lack of trust in the security of online payments. Cash is still king in the region. The second trend is having a proprietary logistics network. This comes in response to the poor infrastructure present in much of Africa. This has meant e-commerce companies need to take charge of the whole process of getting a good to the customer’s home. This is, of course, costly and places a big restraint on any new company in the e-commerce market.

The third big trend is one that reflects the reality of how people communicate electronically in Africa. Mobile phones are king, and this means e-commerce needs to be mobile phone-friendly or lose out on reaching many customers. The fourth trend is related to the fact Africa is still off the logistics route for much world trade. This means e-commerce companies need to set aside space for large warehouses to store the goods so that they are on hand when the customer wants them.

And, finally, the fifth trend is the importance of good customer service as the clincher for success in the marketplace. Word of mouth gets around if a company is not able to deliver on what is promised so it is important to have high-quality customer service to build trust, keep engaged with consumers and let them know problems are being resolved.

South Africa has emerged as the continent’s powerhouse when it comes to e-commerce, according to Jana. Successful players in that country include Zando (http://www.zando.co.za/) an online fashion store by Rocket Internet, MIH Internet Africa’s Kalahari online store (http://www.kalahari.com/) and entertainment and consumer electronics online store Takealot.com supported by Tiger Global. Research firm World Wide Worx (http://www.worldwideworx.com/) calculated that online retail in South Africa is growing by 30 per cent a year.

But South Africa cannot rest on its laurels: the survey found Nigeria is fast overtaking South Africa as its large population takes to the Internet. Impressively, Nigeria’s Government has pledged to expand broadband Internet access to 80 per cent of the country over the next five years.

In East Africa, Kenya’s Rocket Internet’s service Jumia (http://www.jumia.co.ke/) is now one of the top 100 online destinations in the country.

Jana also found there were various key areas for improvement for the e-commerce industry in Africa. One, was the importance of explaining to African consumers the basics of online shopping. Many respondents to the survey seemed confused about making purchases on the Internet and through e-commerce. They also showed low levels of understanding about payment methods and available financial products. And finally, one of the big obstacles to expanding the industry is improving delivery reliability.

But all these problems and challenges spell opportunity for innovators who can solve them and make some money too!

Published: July 2013

Resources

1) E-commerce: The latest news from The Guardian newspaper. Website: http://www.guardian.co.uk/technology/efinance

2) E-commerce Expo: From 2 to 3 October 2013 in London, UK, the eCommerce Expo is the industry event for the UK and, increasingly, Europe. It ranks as one of the largest gatherings of e-commerce professionals in Europe and boasts over 180 exhibiting companies plus a comprehensive conference programme. Website: http://www.ecommerceexpo.co.uk/page.cfm/newSection=Yes

3) Mashable e-commerce: E-commerce (or electric commerce) refers to the buying and selling of goods and services via electronic channels, primarily the Internet. Online retail is decidedly convenient due to its 24-hour availability, global reach and generally efficient customer service. Website: http://mashable.com/category/e-commerce/

4) Actinic: An online software system for setting up an online e-commerce website. Website: actinic.co.uk/

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African Infrastructure Dreams Back on Agenda

Post author By David South Consulting
Post date 05/10/2022
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By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

Africa’s patchy infrastructure is not keeping pace with the continent’s economic growth.

Satellite photos of Africa at night show a place where light is concentrated overwhelmingly in the South – primarily South Africa – and in the North, with a sprinkling of lights on the west and east coasts (http://geology.com/articles/satellite-photo-earth-at-night.shtml).

This is just one visually arresting way to view the much larger problem of the continent lacking 21st-century infrastructure – from roads to airports to sewage and water services to harbors and rail connections. All are in desperate need of an upgrade.

The World Bank says only one in four people has access to electricity in sub-Saharan Africa. According to the International Energy Agency (IEA), the region will require more than US $300 billion in investment to achieve universal electricity access by 2030.

This lack of modern infrastructure is clashing with Africa’s impressive economic growth in recent years. The continent will be home to seven of the 10 fastest growing economies in the world by 2015, according to the IMF. Yet still too much of this is a reflection of a booming resource economy, which sounds impressive in numbers, but still leaves much of the continent’s population living in a day-to-day world of underdevelopment and poverty.

Africa desperately needs further investment in infrastructure. The good news is that a mix of positive developments is coming together to breathe life into efforts to upgrade the continent.

One is a new campaign to mobilize Africa’s wealthiest to stump up the necessary funds to conduct feasibility studies to lay the groundwork for a big boost to infrastructure spending in the coming years. Another is a flurry of new pledges from the United States to spend more in Africa to increase access to energy – a necessary precondition to improvements to living standards. China, too, is to continue to grow its already substantial investments in Africa.

For innovators, better infrastructure across Africa will make it easier to export products, connect with markets and customers and gain access to new technologies and products available to others around the world.

The Made in Africa Foundation (madeinafricafoundation.co.uk) hopes to turn to Africa’s wealthy global community to help with funding the feasibility studies required to unleash a new wave of infrastructure spending and building across the continent.

Africa takes up 30 million square kilometers (UNEP), is home to approximately 15 per cent of the world’s population and has 60 per cent of the world’s potential agricultural land. Yet, just 34 per cent of Africa can be reached by road and only 30 per cent has access to electricity. One estimate has placed the cost of meeting Africa’s power and transport needs at US $28 trillion by 2050.

That is a vast amount of money, and nobody will commit those sums unless they know that work has gone into planning for this infrastructure and that people are thinking long-term. This is where the Made in Africa Foundation wants to make a difference: it is hoping to get Africa’s wealthy to contribute US $400 million to fund feasibility studies which in turn will kick-off a US $68 billion first phase in investment into roads, railways, ports and energy.

“In 2009, there was (US) $150bn (billion) available to spend, but no bankable infrastructure projects in Africa,” that these funds could be directed towards, said the Foundation’s George Brennan. “These figures should make us angry – the problem is not the availability of funding but the fact that projects are not in a condition to be funded.”

Just as a global diaspora of Indians and Chinese have been instrumental in economic growth and development in India and China in the past two decades, so it is hoped the same formula can be applied to the equally substantial, successful and wealthy African diaspora.

“African Americans spend (US) $1 trillion every year in their economy, but what do they spend on Africa? About 0.01 percent,” said Chris Cleverly, Director of the Made in Africa Foundation. “They have the wherewithal to make profound differences – personally, and by lobbying their pension funds, investment advisers and government to invest in Africa on the basis that it provides good returns.

“It was China and India’s diasporas that developed them – it is the same with Africa’s now.”

Ozwald Boateng (http://ozwaldboateng.co.uk), the dynamic Ghanaian-descended London tailor who built his reputation on a quirky and modern take on traditional British bespoke suits, took the lead along with the Ugandan Prince Hassan Kimbugwe (http://www.cdrex.com/prince-hassan-kimbugwe/1251509.html) and former British barrister Chris Cleverly.

Boateng’s reputation and fame rose along side the buzzing British capital throughout the 2000s. But now he is reaching back to Africa to lead a campaign to substantially raise the level of investment in the continent’s creaking, antiquated or non-existent infrastructure.

He is trying to rally Africa’s wealthiest business leaders to contribute to creating a 21st-century African infrastructure of roads, railways, ports and power supplies. Made in Africa is tackling the fact many big global investors are willing to invest in Africa but find it difficult to do so. Much has to be done before an investor can come along and start, for example, building a new road network or airport. Local governments need to do the initial site survey and environmental impact studies and develop a larger vision for where they would like their country to go and how its cities are to develop.

The campaign got underway with a star-studded gala event earlier this year in Marrakech, Morocco, at the African Banker Awards (http://www.ic-events.net/awards/african_banker_awards_2013/). It also comes with a film, Our Future, Made in Africa, to help explain the campaign and the company.

Some of the people who attended included Nigerian philanthropist Tony Elumelu, Angola’s richest woman Isabel dos Santos and Sudanese telecoms mogul Mo Ibrahim.

“This is the start of fully understanding what Africa can do for itself,” said Boateng. “The Chinese managed to build a railway across China; the Japanese have the bullet train – we need to get past thinking about why it’s difficult to create the roads and railways that Africa needs and just get on with it.”

The Foundation is being supported by the African Development Bank (http://www.afdb.org/en/), a long-time supporter of African infrastructure investment through loans and technical assistance.

An additional boost to African development comes from a recent U.S. government pledge to spend US $7 billion over the next five years in Africa to improve access to energy. Energy is the needed fuel for any significant improvements to human development over the long-term.

U.S. President Barack Obama announced “Power Africa” (http://www.whitehouse.gov/the-press-office/2013/06/30/fact-sheet-power-africa) while he was in Cape Town, South Africa on his recent African tour. At the heart of Power Africa is the pledge to double access to power in Africa. According to medical journal The Lancet, 3.5 million Africans die every year due to indoor air pollution – a figure larger than those who die every year from malaria and HIV/AIDS combined. The pollution results from the fumes caused by burning fuel for cooking, warmth and light.

President Obama promised the funding to help governments in Ethiopia, Ghana, Kenya, Liberia, Nigeria and Tanzania. The funds will be used to boost access to electricity for 20 million households. Funds will also be used to help Angola and Mozambique modernize their energy export sectors.

Power Africa will act as a go-between to encourage links and deals between American energy companies and African partners.

On top of this, Power Africa is being supplemented by an additional US $10 billion in private sector contributions, including a commitment from the General Electric Company to bring 5,000 megawatts of affordable energy to Tanzania and Ghana.

In total, the US estimates it will take US $300 billion in additional funds to bring full power to sub-Saharan Africa.

For the past decade, the biggest change in Africa’s infrastructure story has come from the growing role played by China. China has become Africa’s largest single trading partner, with bilateral trade reaching US $166 billion in 2011 – a jump of 33 per cent from 2010. The total volume was valued at $198.5 billion in 2012 and is expected to surpass $380 billion by 2015.

And much, much more has been promised to come: China’s President Xi Jinping (http://en.wikipedia.org/wiki/Xi_Jinping) renewed a pledge to offer US $20 billion in loans to Africa in March 2013 (Reuters). Much of this is going to electricity-generation projects.

Published: July 2013

Resources

1) China in Africa: The Real Story is a blog tracking the relationship and digging up the real numbers on what is happening. Website: http://www.chinaafricarealstory.com/

2) The China-Africa Development Fund (CADFund) will invest US $2.4 billion in African projects, according to its President Chi Jianxin. Website: http://www.cadfund.com/en/

3) Map of Africa’s major infrastructure: The image shows how infrastructure in Africa is growing rapidly, but is still largely concentrated in coastal regions and those with large mineral deposits. This means that rural and isolated populations often do not have access to modern energy and the benefits that it can bring. Website: http://www.one.org/us/2011/05/10/map-of-africas-major-infrastructure/

4) Dead Aid by Dambisa Moyo. In the past 50 years, more than US $1 trillion in development-related aid has been transferred from rich countries to Africa. Website: http://www.dambisamoyo.com/books-and-publications/book/dead-aid

Find more in Southern Innovator Issue 4: Cities and Urbanization