Zimbabwe’s turbulent descent into hyperinflation at the beginning of the 2000s – and the food crisis it caused as prices soared and purchasing power shrank – captured the world’s attention. From refugees fleeing the country to widespread hunger and poverty, the impact of hyperinflation was stark and distressing. Since the country’s economy stabilized in 2009, various signals are showing that Zimbabwe is slowly making its way back to growth and stability.
The scale of the hyperinflation is summed up by Zimbabwe’s eye-popping inflation rate. By December 2008, inflation was estimated at 6.5 quindecillion novemdecillion percent (or 65 followed by 107 zeros — 65 million googol) (Forbes Asia).
One recovery strategy is emerging in Zimbabwe’s booming eating and drinking establishments. It seems the urge to socialize and network has become the source of economic vitality where so much else has been damaged.
The proliferation of coffee shops with wi-fi (wireless internet access) (http://en.wikipedia.org/wiki/Wi-Fi) has spawned a new, connected business culture that is flexible and entrepreneurial.
Zimbabwe’s unity government was formed in September 2008. By the beginning of 2009, the government relented on the crippling hyperinflation and allowed business to be conducted in the US dollar. This made it possible to save again and do business with greater predictability. At this time, the country had the world’s highest inflation rate and the central bank printed a 100 trillion Zimbabwe dollar note.
The economic result of greater stability has been new shopping malls opening and a boom in new eating and drinking establishments.
During the hyperinflation, eating out was the last thing on most people’s minds. Just surviving was the paramount daily task.
Outside of the wealthy enclaves, coffee shops have sprung up in the city’s art gallery, in sports clubs and a local supermarket chain.
While the coffees are still expensive relative to local wages, the Zimbabwe Online Hotspots (ZOL) (http://www.zol.co.zw) in the coffee shops have proved a big attraction. Most people in Zimbabwe have unreliable or non-existent electricity or, if lucky, poor-quality phone and internet dial-up in their homes.
ZOL Hotspots typically offer the first half hour of internet use for free. To surf longer, users must buy a voucher.
The damage done to the economy from hyperinflation and the political crisis means the country is still on the mend. But people have now resorted to what they call “networking,” according to Bryony Rheam in the Daily Telegraph newspaper. The functioning economy is all about making deals. And coffee shops with wi-fi are the perfect place to meet with a potential business partner.
But while the coffee shops are buzzing with people doing business, the proprietors still need to work out how to make better profits. Sales are still poor as people are mostly fixated on the wi-fi. One owner told the Telegraph: “We need to start charging people who sit here all day surfing the net.”
It is the restaurants who seem to be enjoying the boost in incomes and better spirits after the economic troubles. Zimbabwe’s black middle class are enjoying big occasions and celebrating with friends and family in restaurants.
“We went without for so long, that a lot of people almost see it as their right to spend money on eating out,” one patron told the Telegraph.
More good news has come from outside investors as well: Amstel Securities NV (http://www.amstelsec.com), based in Amsterdam, Netherlands calls Zimbabwe’s economy “the final frontier market in Africa”. It believes the country has the potential to grow its GDP (gross domestic product) to US $12 billion by 2015. The International Monetary Fund says the economy jumped from US $4.4 billion in 2009 to US $9 billion now.
In Amstel Securities’ report, it pegs the dollarization of the economy as the reason for stability: “These improvements have made Zimbabwe a much more vibrant economy with good further recovery potential.”
And these good vibes are contagious: it has been reported that the American hamburger chain McDonald’s is revisiting the idea of setting up in Zimbabwe. McDonald’s is currently present in a handful of African countries: South Africa has 132 restaurants.
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.
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.
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.”
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.
Food security is key to economic growth and human development. A secure and affordable food supply means people can meet their nutrition needs and direct their resources to improving other aspects of their lives, such as housing, clothing, health services or education.
One solution hopes to boost productivity for small-scale farmers and make agriculture a more attractive income source to the young and poor, by making it possible to grow food year-round. Kenyan social enterprise Amiran Kenya is selling the Amiran Foundation Kit (amirankenya.com), a simple-to-use greenhouse farming kit. As well as helping people grow both food and their agricultural business, Amiran Kenya hopes young people will also buy the kits at a discount and then sell them for a profit to others.
The technology to grow food year-round is already available, but it is generally expensive to set up. This cost is usually prohibitive to the poor and young: two groups who could really benefit from the income. And if young people in Africa learn the basics of farming, in time they could expand and develop into agribusinesses and benefit from the growing food demand on the continent.
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 Africa’s farming is inefficient and fails to make the most of the continent’s rich resources and potential.
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). A 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.
While large-scale agribusinesses are increasing in Africa, it is still reliant on small-scale farmers to meet the daily food needs of most of the population.
“The time has come for making African agriculture and agribusiness a catalyst for ending poverty,” said Makhtar Diop, World Bank Vice President for Africa. The continent needs to “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.”
Any country that has to import food will be vulnerable to currency fluctuations and the inflation in prices this can cause. A country that has many options for food, and reduces its dependency on imported food resources, will have greater resilience when crisis strikes.
Greenhouses are a great way to expand the growing season, avoiding ups and downs in temperature. But they can be expensive to set up – something the kit hopes to resolve. A typical greenhouse kit will cost a Kenyan an estimated 10 times more than the Amiran Foundation Kit, which retails at Sh 14,500 (US $168).
The package includes a drip-feed kit, a 250 liter water tank, a one liter sprayer, instructional growing guides, fertilizer, agro chemicals and high-quality seeds. Crops that can be grown include cabbage, watermelon, kale and spinach. The drip kit is highly durable and can last eight years, according to its manufacturer.
The kit is being marketed as a “kick starter for the small scale farmers who want to adopt agribusiness” as their method for growing food.
“The farmers will have a chance to start small and grow bit by bit until they are able to afford the modern greenhouses which will set the ball rolling for them to enjoy the benefits of modern agribusiness,” Yariv Kedar, Amiran Kenya’s Deputy Director, explains on the company’s website.
The plan is to draw more people into agriculture by showing they do not need to be prisoners of weather patterns. Larger agribusiness enterprises already have the resources to benefit from technology such as greenhouses and avoid the worst effects of the weather.
By transcending fickle weather patterns, it is possible to reduce the risk of crop failure and the resulting financial damage – one reason people shy away from farming.
Amiran’s philosophy behind the kit is simple: knowledge and know-how matched with high-quality inputs that do not harm the environment. The idea is to introduce people to the concept of agribusiness, no matter how small their land size. Amiran estimates that by investing Sh 14,500 (US $168), a person could make Sh 25,000 (US $290) per season – making back in a season the initial investment cost.
Urban farmers and home gardeners are among those who can benefit, along with small-scale farmers in arid and semi-arid areas of Kenya.
Kedar said the kit’s drip pipes, which deliver water directly to the root of the plant, ensure that “every drop counts” and save between 30 to 60 per cent of water compared to other methods of irrigation.
“Using the Amiran Foundation Kit, farmers are now able to grow all year round and experience high yields while still conserving the scarce resource, water,” he said.
Published: March 2014
Resources
1) World Vegetable Center: The World Vegetable Center is the world’s leading international non-profit research and development institute committed to alleviating poverty and malnutrition in developing countries through vegetable research and development. Website: http://www.avrdc.org
2) Songhai Centre: a Benin-based NGO that is a training, production, research, and development centre in sustainable agriculture. Website: http://www.songhai.org/english
4) African Alliance for Capital Expansion: A management consultancy focused on private sector development and agribusiness in West Africa. Website: http://www.africanace.com/v3
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.
It has been well documented that China is undergoing the largest migration in human history from rural areas to cities. But this urbanization trend is occurring across the global South, including in Africa, as well. According to the UN, more than half the world’s population already lives in cities, and 70 per cent will live in urban areas by 2050. Most of the world’s population growth is concentrated in urban areas in the global South.
These emerging urban areas represent vast opportunities for innovators. Innovators will be needed to build them, and in turn they will provide modern facilities for innovators to operate in and engage with the global economy. And they will connect innovators to 21st-century information technology.
But while the government in China engages in significant planning and preparation to facilitate movements to urban areas – often building entire cities from scratch (http://www.time.com/time/photogallery/0,29307,1975397,00.html) – that has not been the case in Africa. People in Africa are on the move because they are seeking out opportunities, but much of this movement has been poorly planned and not well thought out.
But now more and more African governments are grappling with how to call time on chaotic and haphazard development and build sustainable, planned cities that will significantly improve human development and quality of life.
Across Africa, a host of ambitious new cities and urban developments are in the works.
Kenya’s Konza Technology City (konzacity.co.ke) is planned as a new centre 60 kilometres from the capital, Nairobi. Calling itself a “world-class technology hub and a major economic driver for the nation”, it offers a high-tech vision full of ultra-modern buildings and houses in order to spur the future growth of Kenya’s technology industry.
It is hoped Konza will create 100,000 jobs by 2030. There will be a central business district, a university campus for 1,500 students, a residential community, and parks and wildlife in green corridors.
The groundbreaking ceremony occurred on January 2013 but the Kenyan Ministry of Lands and Housing has halted operations to allow for greater community engagement, according to Urban Africa. A dispute had erupted with the current landowners who wanted to be better consulted about the development and had accused the government of locking them out of the physical planning process.
Tatu City, Kenya (tatucity.com) bills itself as “by Kenyans, for Kenyans”. It is being built by Rendeavour (rendeavour.com), the urban development division of Moscow-based Renaissance Group (rengroup.com), one of the largest urban developers of land in Africa. It joins Konza Technology City as a flagship project for the government’s Vision 2030, hoping to turn Kenya into a middle-income country and a role model for other countries in East Africa.
Tatu City is 15 kilometres from Nairobi. It will take up 1,035 hectares and will be completed in 10 phases. Construction began in May 2012 and is scheduled to be completed by 2022.
It is selling safety and a “beautiful urban environment” just a short journey away from Nairobi’s existing Central Business District. Tatu City wants to be “a model of the African city of the future” as a “dynamic mixed-use, mixed-income environment that will be home to an estimated 70,000 residents and 30,000 day visitors”.
Just 25 minutes from Jomo Kenyatta International Airport, it promises to be one of “the most modern, well-planned urban developments in East Africa”.
In Ghana, a number of innovative projects in development reflect the country’s impressive economic growth and information technology achievements in the past decade.
Two cities are being designed by Rendeavour. One, Appolonia, is being built in the Greater Accra area while the second, King City, is being built on the west coast of the country where there is an oil and gas boom underway.
Both will have houses, retail and commercial centres, schools, healthcare facilities and other social services.
“Our objective is to provide the basic infrastructure, planning and necessary management framework in creating satellite cities that reverses the current trend of unplanned development and urban congestion in most of Africa’s growing cities,” Tim Beighton of Rendeavour told CNN.
These projects are in an advanced stage, with all plans completed and approved by the government, according to their websites.
Appolonia City of Light near Accra (appolonia.com.gh) – due to break ground in the third quarter of 2013 – capitalizes on Accra’s status as one of Africa’s fastest-growing urban areas. The Appolonia development will be a “planned, sustainable, mixed-use and mixed-income city” to build a “work-live-play” community for 88,000 people living in 22,000 homes.
It will be built 30 kilometres northeast of Accra’s central business district and will have retail, commercial and industrial space combined with tourism, social and recreation facilities.
King City in Takoradi (kingcity.com.gh) calls itself “Western Ghana’s new holistic city”. It will offer homes, shops, offices, industries and public places. The plan includes building 25,000 new homes and, importantly, over 30 per cent of the city will be allocated for green space. It will take up 1,000 hectares on the outskirts of Sekondi-Takoradi.
Elsewhere in Accra, the Hope (Home Office People Environment) City (http://www.rlgghana.com/index.php/2013-02-07-11-25-04.html) is a much more ambitious concept. It is one of a cluster of projects in Africa focused on building the infrastructure for a 21st century, high-tech future. Costing US $10 billion, it will be built outside Accra and is focused on boosting Ghana’s already established reputation in the field of information and communications technology. It will be home to 25,000 people and create jobs for 50,000. There will be six towers including a 75-storey, 270 metre building that hopes to be the highest in Africa.
It is being financed by RLG Communications, a mix of investors and a stock-buying scheme.
There will be an assembly plant for high-tech products, business offices an information technology university, a hospital and restaurants, theaters and sports centres.
The design is hyper-modern and tries to create a vertical office environment that is dense and reduces the amount of time it takes to get around and circulate between businesses in the complex.
Eko Atlantic on Victoria Island in Lagos, Nigeria (ekoatlantic.com) is a coastal residential and business development that calls itself “The New Gateway to Africa”. To ease pressure in an already crowded city, it is being built on 10 square kilometres of reclaimed land from the Atlantic Ocean. It will be able to house 250,000 people and give work to 150,000.
The story began in 2003 when the Lagos State government was looking for a solution to protect the Bar Beach area of the city from coastal erosion. Land is being reclaimed from the sea and it will make up an area the equivalent of Manhattan in New York City. Just like Manhattan, it is hoped Eko Atlantic will become the new financial centre for West Africa by the year 2020.
Kilamba, or Nova Cidade de Kilamba (https://www.facebook.com/media/set/?set=a.231897596836631.80284.228497773843280), 30 kilometres outside Luanda, Angola is being built by the China International Trust and Investment Corporation (http://www.citic.com/wps/portal). It is on a vast scale and is designed to be home to 500,000 people with apartment blocks and commercial spaces. It has cost so far US $3.5 billion and is part of a government pledge to provide a million new homes within four years. Kilamba has come in for criticism for not being affordable enough for ordinary Angolans and for having much of the site unoccupied. With the apartments too expensive for ordinary Angolans, the government has decided to take action and ordered the prices to be reduced and made more affordable, according to Angola Press .
La Cite du Fleuve in the Democratic Republic of Congo (lacitedufleuve.com) is a more conventional luxury housing development built on two islands in the capital, Kinshasa. Kinshasa, despite its problems and the turmoil from an ongoing civil war, is one of the continent’s fastest-growing cities. Developed by Hawkwood Properties, La Cite du Fleuve will need to reclaim 375 hectares of sandbanks and swamps to be able to build a collection of riverside villas, offices and shopping centres. It is is planned to take 10 years to complete.
And finally, Kigali, the capital of Rwanda, wants to transform itself into the “center of urban excellence in Africa”.
The 2020 Kigali Conceptual Master Plan (http://www.kigalicity.gov.rw/spip.php?article494) hopes to create a regional hub for business, trade and tourism, by building a mix of commercial and shopping districts with glass skyscrapers and modern hotels, parks and entertainment facilities.
Critics, however, believe these new cities and modern developments are tackling the problems of urban development by bypassing most of the population. They argue they are just developments for those with money who can buy their way out of the chaos and lack of planning of current African cities.
“They are essentially designed for people with money,” Vanessa Watson, professor of city planning at the University of Cape Town, told CNN. She believes most of the plans are unsustainable “urban fantasies” detached from the reality of African poverty and informal living.
But while it is easy to criticize these ambitious projects, they reflect not only optimism for the continent’s future but also a clear recognition the continent will not be able to get wealthier without modern cities and infrastructure in keeping with a 21st-century economy.
2) Urban Africa: Urban Africa is a digital entry point for knowledge sharing, interactive exchange and information dissemination on urbanization in Africa. Website: http://urbanafrica.net/
3) Arrival City: A third of humanity is on the move. History’s largest migration is creating new urban spaces that are this century’s focal points of conflict and change — unseen districts of rapid transformation and febrile activity that will reshape our cities and reconfigure our economies. Website: http://arrivalcity.net/
4) Global Urbanist: The Global Urbanist is an online magazine reviewing urban affairs and urban development issues in cities throughout the developed and developing world. Website: globalurbanist.com
5) Africa Renewal: The Africa Renewal information programme, produced by the Africa Section of the United Nations Department of Public Information, provides up-to-date information and analysis of the major economic and development challenges facing Africa today. Website: http://www.un.org/africarenewal/
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.
David South Consulting 
You must be logged in to post a comment.