Tag: May 2013

Archive Development Challenges, South-South Solutions Newsletters

Online Education Could Boost African Development

Post author By David South Consulting
Post date 20/10/2022
No Comments on Online Education Could Boost African Development

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.

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

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

© David South Consulting 2023

Archive Development Challenges, South-South Solutions Newsletters

Indian Initiatives to Make Travel Safer for Women

Post author By David South Consulting
Post date 18/10/2022
No Comments on Indian Initiatives to Make Travel Safer for Women

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

Shocking assaults on women traveling in India have galvanized innovators to find solutions. One solution that is proving successful is to establish specialist taxi services for women. As a happy additional benefit, these taxi innovators are transforming the taxi experience, introducing more ethical practices such as honest fares, professional and safe driving habits and clean, hygienic and comfortable taxis.

With sexual harassment levels high and several shocking assaults and rapes of women in Indian cities grabbing global media attention, Indian women are now being offered a variety of women-driver-only taxi services to ensure they get to work and home again safely.

As well as offering their passengers security, these companies are also redefining the taxi experience with innovation. As travelers know, the taxi experience in many cities can be frustrating, fraught with scams, rip-offs, disputes over fares, unhygienic taxi interiors and poor driving skills. These pioneering women-only taxi companies are trying to show there is another way: that taxis can be clean, meters honest and driving safe and sound.

Security for women has come into the media spotlight in India after a series of high-profile attacks and sexual assaults. The country is undergoing major economic and social change as it modernizes and urbanizes. Women are seeing their incomes and their role in the economy increase.

This brings both opportunities and risks. Women who would have only lived and worked in a small geographical area, and generally associated only with their family or a small village, are now mobile and in contact with the busy urban environments of megacities awash with strangers.

One woman is raped every 20 minutes in India, according to the National Crime Records Bureau. But police estimate only four out of 10 rapes are reported, largely due to victims’ fear of being shamed by their families and communities. At the beginning of March 2013, a campaign to raise awareness on women’s safety was launched in Delhi to chime with International Women’s Day. The UN also confirmed in March 2013 a global strategy to combat violence against women (http://www.un.org/womenwatch/daw/csw/57sess.htm).

One champion of safer transport for women in India is Revathi Roy, a rally car driver and entrepreneur. She started a women-only taxi company in Mumbai called Forsche in 2007 out of raw economic need, and to solve a problem.

“I am a very fussy passenger and I would get upset that the seat was not comfortable, or the driver was driving too rashly for my liking,” Roy told BBC News.

“I would also find it irritating that some drivers would stare at me from their rear-view mirror and one day, I just decided I had had enough.”

Forsche – pronounced “for she” – a play on the German car maker Porsche’s name – was one of the pioneers in bringing all-women taxi services to India. Their drivers’ uniform came in pink and purple with a purple scarf worn around the neck.

However, Roy parted ways with her previous business partner and set up Viira Cabs (viiracabs.com/) in 2011. Viira means ‘courageous woman’ according to Roy.

Roy hopes passengers from young girls to senior citizens will feel safer and more confident knowing a woman is the driver.

“The attitude of Indian mothers is changing,” she said. “Now they know their daughters go out and drink. They realize they may as well keep them safe by putting them in the hands of a woman who at all times is playing the role of a mother or a sister. A man can’t be a woman. And just because a woman is sitting at the wheel she doesn’t become a man.”

The company has 20 taxis and 25 drivers. It uses a fleet of Maruti Eecos (http://marutisuzukieeco.in/), a mini van made by Suzuki capable of carrying four adult passengers and their luggage. Viira also seeks to improve driving standards on Mumbai’s roads by setting a good example with safe, defensive driving techniques.

A pioneer of female taxi drivers in India, Roy is now the Mentor and Chief Driving Officer for Viira Cabs. According to the company’s website, she is looking to train thousands of women to be able to make their livelihood as a taxi driver.

“Driving is still very male dominated and in Mumbai where most people travel by public transport, there are very few women with driving licenses,” she explained.

“Viira is a very powerful platform for poor, urban women who are now able to earn up to Rs 12,000 a month (US $222),” Roy told CNN.

Viira’s drivers wear a professional uniform of a peaked cap, white short sleeved shirt with blue trim, and a plastic identification badge on a blue lanyard. This makes it clear from the start to passengers who is driving them.

The service runs 24 hours a day, seven day a week, and journeys are dispatched from the company’s call centre. To keep the service safe as can be, all vehicles are monitored by GPS (global positioning system) and a panic alert system. The drivers receive self-defence and defensive-driving training so they can elude any dangers while on the road. They also know how to handle roadside emergencies and are backed up by 24/7 support from the call centre.

The taxis follow the standard charges set down by the Mumbai region. By using mini-vans, passengers are able to enjoy a comfortable and roomy ride in air conditioned comfort – a big plus in a hot country. The vans run on CNG (compressed natural gas) (http://en.wikipedia.org/wiki/Compressed_natural_gas), reducing pollution.

To add even more value to the journey experience, the taxis feature live television and Internet web surfing using something called Tabbie TM (Tablet in a Cab), a 10-inch-wide computer tablet.

In addition to the taxi service, the Viira Motor Training School offers driver training to women with low incomes. Its 12-week program covers all the main areas of taxi-driving skills – driving theory, mechanics, customer service, health and safety and self-defence – but also goes to the next level and gives the students training on a vehicle-driving simulator donated by the Suzuki company.

Roy said she hopes to expand the business from Mumbai to smaller urban areas “where Indian women are most starved of opportunities.”

Long-term, she wants to become “India’s premier chauffeur and fleet service.”

Roy’s success with these companies led to the founding of the social enterprise Sakh Consulting Wings (http://sakhaconsultingwings.com/about-us.php) to support establishing similar services in other Indian cities.

Sakha Consulting Wings is partnered with the Azad Foundation to promote taxi driving as a viable career for women from poor backgrounds.

Super Cabz in Delhi (http://www.supercabz.com/women-friendly-cab-service-delhi-ncr.php) is another service aimed at women. It has innovations such as panic buttons in the back seats of the cabs and mobilizers to allow the central call centre to shut the cab’s engine down in an emergency. There is also a GPS monitoring and tracking system to keep tabs on the cabs as they go about the city.

Published: May 2013

Resources

1) South Africa’s Cabs for Women. Website: cabsforwomen.co.za/

2) India Taxi Auto Fare: “A unique service that calculates your taxi fare and auto fares; before you start your travel! You also get an exact, to the scale Google Map that shows your route. Further, you can also change the default route to avoid traffic, plan for some shopping on the way or just pick up your date!” Website: http://www.taxiautofare.com/Default.aspx

3) Merar: Merar was launched with the idea to create the best platform for investment providers and seekers from emerging markets. It has grown to become one of the largest online meeting places bringing together investors, entrepreneurs and investment intermediaries globally. Website: merar.com/

4) Lavasa Womens Drive: Helps champion skilled women drivers in India. Website: http://www.lavasawomensdrive.com/selectcity1.html

5) PeopleNet TABLET™: A powerful in-cab personal computer with a touch screen, stylus and screen keyboard. Website: peoplenetonline.com/tablet

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London Edit

31 July 2013

https://davidsouthconsulting.org/2021/03/05/southern-innovator-issue-1/

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© David South Consulting 2023

Tags 2013, David South, David South Consulting, Development Challenges, development challenges south-south solutions, Goal 10, Goal 11, Goal 5, Indian Initiatives to Make Travel Safer for Women, May 2013, Published: May 2013, SDG10, SDG11, SDG5, South-South Solutions, Southern Innovator magazine, UNDP, United Nations, UNOSSC

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Ambitious Schemes Hope to Advance Economic Development

Post author By David South Consulting
Post date 17/10/2022
No Comments on Ambitious Schemes Hope to Advance Economic Development

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

Sometimes it takes a bold, fresh start to speed up economic and human development goals. Taking a large-scale approach has been used around the world, either establishing new trade zones or even a new city.

Two recent examples in Nigeria and Afghanistan are attempting to speed economic development in their respective countries, with both receiving help from experienced Asian practitioners of rapid economic development.

The role models for this approach are the so-called “Asian Tigers”: they include Taiwan, Hong Kong, Singapore and South Korea. They are admired because each country rose from extreme poverty to become some of the Earth’s richest nations. Importantly, what they did stands as proof that extreme poverty can be escaped from; people can become much wealthier in just a decade or two.

The pioneer of using trade zones to speed development is the Asian city state of Singapore (http://www.gov.sg/government/web/content/govsg/classic/home)..Fifty years ago it was one of Asia’s poorest countries. With its port (http://www.mpa.gov.sg/) it had a way to turn things around but it also realized in the early 1960s it could not just compete by having cheap labour, something that was plentiful across the developing world (http://www.mti.gov.sg/MTIInsights/Pages/Economic-History-and-Milestones.aspx). It needed unique technical skills that could not be found elsewhere.

The country was unable to create products and services that it could export and compete in global markets because of a lack of skills, the Government determined. Authorities employed a mix of measures to make the country attractive to foreign companies to boost skills. These included fair enforcement of local laws, tax incentives and upgraded infrastructure, much of it paid for with an infrastructure tax, rather than borrowing. With the influx of new thinking and high-quality skills, new technologies and new ways of doing things, in time, a culture of innovation became hardwired into the way things were done in Singapore.

Beginning in 1961 with the Jurong Industrial Estate (http://infopedia.nl.sg/articles/SIP_246_2004-12-16.html), the Singapore government set aside land to develop the economy by attracting international businesses and boosting its existing port facilities. It also established the Economic Development Board (EDB) in 1961 and the Singapore Tourism Promotion Board (STPB) in 1964.

By creating favorable conditions for international businesses to come in and operate, Singapore quickly developed to become one of Asia’s wealthiest trading and manufacturing centres.

This is a strategy China successfully implemented in the 1980s and 1990s and in turn generated the largest and quickest population shift out of poverty in human history, turning the country into an economic powerhouse.

The secrets to making this strategy work include understanding what modern infrastructure requirements are necessary for international businesses. These days, this means speedy and generous bandwidth for the Internet, modern airports, roads, security, and quality housing and food.

One of the biggest contemporary challenges is competition. Whereas Singapore was a pioneer in its day, now, many countries across the global South are pursuing this strategy to spur growth. An international company has many options to consider, and will more than likely gravitate towards the country that makes the best offer with the least risk.

Trade zones are places ripe with opportunity for innovators. New places tend to be seeking the latest in information and communication technologies, the latest in transportation options, modern housing and office facilities. All of these changes require innovators with fresh thinking to make them work. It is also often easier to introduce new ways of doing things to places that are not coping with legacy infrastructure and old habits and ways.

Billing itself as a “new model city,” the Lekki Free Zone Lagos, Nigeria (lekkizone.com) in West Africa is trying to bring a fresh start to the city and the region. It is a joint partnership between investors from China and Nigeria.

Its goal is to better connect regional markets to the global economy. The free trade zone hopes to remove barriers to growth and to attract international investment, becoming the top destination for inward investment in Africa. The project is being run by the Lagos State Government but funded with private capital investment.

Nigeria has been looking into Free Zones since 1982, as it sought additional ways to earn income apart from oil exports. The Export Processing Zone Act 63 was passed in 1992 and the Calabar Export Processing Zone was eventually set up in 1999 (http://www.nepza.gov.ng/index.php?option=com_content&task=view&id=18&Itemid=34). Since then, a slew of Free Zones have been set up, or are in the works.

The Lekki Free Zone is envisioned as a high-tech zone that will eventually lead to the creation of 2 million jobs. The Zone’s investors are targeting businesses working in oil and gas, petrochemicals, electronics, light and heavy equipment, machinery and automobiles, pharmaceuticals, textiles, shopping and banking and financial services.

Lagos State is home to 21 million people, and the current city of Lagos is on course to become the third-largest megacity in the world. Officials claim the area has an economic growth rate of 16.8 per cent per year.

The 16,500 hectare Lekki Free Zone, to the southeast of the city, is divided into two parts: an industrial zone and a residential zone. The residential zone will include apartments and villas, shopping malls and plazas, hospitals and clinics, schools and research and development centres and a hotel, tour and recreational centres, golf courses, gyms and water sports facilities.

Located on the southern coast of Nigeria with connections to the Atlantic Ocean and the Gulf of Guinea, the Lekki Free Zone says it will give companies access to the largest consumer market in Africa, with a potential reach of 500 million people.

The companies will also be able to draw on Nigeria’s natural resources, including oil, natural gas, timber, rubber, cocoa, Arabic gum and sesame seeds as examples.

Another new beginning is being sought in war-torn Afghanistan, which is working on building a new city close to the capital, Kabul.

Kabul New City started construction in 2013 and is planned to be a city of canals, parks and villas. It will be home to 1.5 million people, cost US $33 billion and take 15 years to complete. It is being partly funded by Japan.

It is a very ambitious scheme for a country that has been mired in conflict for decades. It is hoped the initial seed capital invested by Japan will attract other investors to fully fund the project. Japan got the project going with a commitment to contribute US $106 million between 2009 and 2015.

The site of Kabul New City is 19 kilometres from the existing Kabul, near the Bagram airbase used by NATO forces in the country.

Foreign military forces are looking to leave Afghanistan in 2014 and the new city offers a fresh start for the country after years of conflict.

Located in an area surrounded by the Marko mountains, it is in “one of the safest areas of Afghanistan,” Abdul Habib Zadran, Chief Financial Officer of the Dehsabz-Barikab City Development Authority (http://www.dcda.gov.af/), the agency in charge of the project, told The Sunday Times.

The project could be a significant leap ahead in modernization from the current conditions in Kabul, where the streets are in poor condition and buildings in disrepair. Kabul was originally built for 800,000 people, according to The Sunday Times, but now has over 4 million residents. Projections forecast the city growing to 6.5 million people by 2025. Kabul will experience extreme pressure to handle this growing population and find the resources to serve it.

The homes would receive electricity from solar panels and renewable energy sources. Kabul New City will need to tackle the problem of access to enough water to service the growing new city’s population. Plans are afoot to provide water from rivers north of the city.

The master plan for the new city has been designed by Zahra Breshna (breshna-consulting.com), an Afghan-German company which has also built the new Kabul Bank headquarters. The company calls the project “a new beginning for Kabul.”

Published: May 2013

Resources

1) Tianjin Eco-city: The Sino-Singapore Tianjin Eco-city’s vision is to be a thriving city which is socially harmonious, environmentally-friendly and resource-efficient. Website: tianjinecocity.gov.sg/

2) Songdo International Business District: Songdo International Business District (IBD) is home to the UN’s Green Climate Fund and is a smart city located in the Republic of Korea built to the highest green building standards. Website: songdo.com/

3) Singapore: An island and islets in the heart of Southeast Asia, between Malaysia and Indonesia. Website: http://app.www.sg/

4) Djibouti Free Zone: Djibouti Free Zone was created with one primary goal in mind – to bring about a sea-change in the way Africa thinks and does business. No red tape, ruthless efficiency and genuinely exhaustive services – in essence, we offer the ideal conditions for trade and commerce to flourish in. Website: djiboutifz.com/

5) Cisco Smart + Connected Cities: Cisco Smart+Connected Communities solutions use intelligent networking capabilities to bring together people, services, community assets, and information to help community leaders address these world challenges. Website: http://www.cisco.com/web/strategy/smart_connected_communities.html

6) IBM Smarter Cities: Smarter cities drive sustainable economic growth and prosperity for their citizens. Their leaders have the tools to analyze data for better decisions, anticipate problems to resolve them proactively and coordinate resources to operate effectively. Website:http://www.ibm.com/smarterplanet/us/en/smarter_cities/overview/

7) Southern Innovator Magazine Issue 4: Cities and Urbanization. Website: http://www.scribd.com/doc/133622315/Southern-Innovator-Magazine-Issue-4-Cities-and-Urbanization

London Edit

31 July 2013

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Archive Development Challenges, South-South Solutions Newsletters

US $1 Trillion Opportunity for Africa’s Agribusinesses Says Report

Post author By David South Consulting
Post date 10/10/2022
No Comments on US $1 Trillion Opportunity for Africa’s Agribusinesses Says Report

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

As the world’s population continues to grow – surpassing 9 billion people by 2050, the United Nations estimates – and more and more people move to urban areas, producing enough food to feed this population will be one of the biggest economic challenges and opportunities in the global South.

Africa, a continent undergoing significant economic change, has yet to fully realize its potential as a producer of agricultural products to feed itself and the world. Africa currently has a labour-intensive but very inefficient agriculture system. While many Africans either make their living in agriculture or engage in subsistence farming for survival, much of the continent’s farming is inefficient and fails to make the most of the continent’s rich resources and potential.

A new World Bank report, Growing Africa: Unlocking the Potential of Agribusiness (http://siteresources.worldbank.org/INTAFRICA/Resources/africa-agribusiness-report-2013.pdf), argues that Africa could have a trillion-dollar agriculture market by 2030.

What will need to change to make this happen? African farms will need greater access to capital, as well as more investment in infrastructure and better irrigation. All of these elements will need to dramatically improve if Africa is going to compete effectively in global markets.

The report urges greater cooperation between governments and agribusinesses, farmers and consumers and for all parties to recognize that the continent is being rapidly urbanized, changing the way food is grown, sourced and distributed.

It says Africa’s farmers and agribusinesses require more capital, steady supplies of electricity, better technology and irrigated land. All these resources then need to be applied to the growing of high-value, nutritious foods.

At present, agriculture, farmers and agribusinesses make up almost 50 per cent of Africa’s economic activity, and the continent’s food system is worth an estimated US $313 billion a year (World Bank). But the report believes this could triple if governments and business leaders adopted radically different policies.

“The time has come for making African agriculture and agribusiness a catalyst for ending poverty,” said Makhtar Diop, the World Bank Vice President for Africa. “We cannot overstate the importance of agriculture to Africa’s determination to maintain and boost its high growth rates, create more jobs, significantly reduce poverty, and grow enough cheap, nutritious food to feed its families, export its surplus crops, while safeguarding the continent’s environment.”

The report addresses the problems African agriculture is currently experiencing: slow yield growth for major food crops, slowing research spending, degraded land, water scarcity, and climate change. It looks at solutions to allow Africa to tackle these problems and seize the opportunity to significantly increase its food and agricultural exports. Africa can more than meet its own needs and meet the world’s needs too, the report argues.

But what can be done? At present, 50 per cent of the world’s uncultivated land suitable for growing food resides in Africa. This works out to 450 million hectares of land that is neither forested, protected nor densely populated – all could be available for growing food.

The report also found Africa is using just 2 per cent of its renewable water resources while the rest of the world averages 5 per cent. African harvests currently do not yield anything close to what is possible. Another weakness is waste from post-harvest losses, averaging 15 to 20 per cent for cereals, and even more for perishable foods, because of poor storage and farm infrastructure.

Areas the report recommends farmers and agribusinesses should focus on include fast-growing markets for rice, maize, soybeans, sugar, palm oil, biofuel and feedstock. In sub-Saharan Africa, the focus should be on rice, feed grains, poultry, dairy, vegetable oils, horticulture and processed foods for the domestic market. And there are also good examples to follow by studying the ways Latin America and Southeast Asia used world markets to boost income and profits.

Agribusiness enterprises looking to purchase more land to expand the number of hectares under cultivation are urged to act ethically and not to threaten existing people’s livelihoods or violate local users’ rights. This includes consulting with locals and paying fair market price for land bought.

Rice is one crop that needs attention. Significant quantities of rice are imported and consumed in Africa. Half the rice eaten is imported, costing around US $3.5 billion a year (World Bank). Big importers include Ghana and Senegal – both countries singled out in the report for needing to improve their domestic rice production and quality.

Another food staple needing attention is maize (corn). A daily food staple for many Africans, it takes up 14 per cent of crop lands on the continent. While most Zambians get half their calories from maize, Zambia is currently unable to export maize at a cost comparable to market leader Thailand – Zambian maize costs one-third more. Zambia was singled out as needing to raise yields, reduce costs, and remove disincentives for the private sector in markets and trade.

“Improving Africa’s agriculture and agribusiness sectors means higher incomes and more jobs. It also allows Africa to compete globally. Today, Brazil, Indonesia and Thailand each export more food products than all of sub-Saharan Africa combined. This must change,” said Jamal Saghir, the World Bank’s Director for Sustainable Development in the Africa Region.

How to make the most of this opportunity?

One innovative idea coming out of Africa comes from the mega-brewer SABMiller (sabmiller.com). As a sign of confidence in the continent’s growing economies, the brewer has pledged to slash its beer prices and use more African-grown grains – a boost to local farmers – and to start a campaign of opening new breweries for the next three years. Countries targeted include Ghana, Nigeria, Mozambique and Zambia.

“African farmers and businesses must be empowered through good policies, increased public and private investments and strong public-private partnerships,” according to Gaiv Tata, World Bank director for Financial and Private Sector Development in Africa. “A strong agribusiness sector is vital for Africa’s economic future.”

Published: May 2013

Resources

1) Southern Innovator Magazine Issue 3: Agribusiness and Food Security: Southern Innovator’s third issue finds innovators transforming agribusiness and boosting food security. Website: http://www.scribd.com/doc/106055665/Southern-Innovator-Magazine-Issue-3-Agribusiness-and-Food-Security

2) The New Harvest: Agricultural Innovation in Africa by Calestous Juma. Website: http://belfercenter.ksg.harvard.edu/publication/20504/new_harvest.html

3) Growing Africa: Unlocking the Potential of Agribusiness. Website: http://siteresources.worldbank.org/INTAFRICA/Resources/africa-agribusiness-report-2013.pdf

4) Edible Insects: future prospects for food and feed security, Publisher: FAO. Website: http://www.un.org/apps/news/story.asp?NewsID=44886

5) Six-legged livestock: edible insect farming, collecting and marketing in Thailand, Publisher: FAO. Website: http://www.fao.org/asiapacific/rap/home/news/detail/en/?news_uid=176061

London Edit

31 July 2013