Commodity booms can seem like the answer to a poor nation’s prayers, a way to fulfil all their development dreams and goals. The reality, however, is far more complex. More often than not, the discovery of resources sparks a mad scramble for profits and patronage, as politicians and politically connected elites carve out their slice of the new resource boom before anyone else.
The twin cities of Sekondi-Takoradi (http://en.wikipedia.org/wiki/Sekondi-Takoradi) in the Western Region of Ghana are now experiencing an oil boom. Ghana’s oil production went online in December 2010 and the government is hoping it will double the country’s growth rate.
Large supplies of oil were found off the coast in 2007, transforming Takoradi from a sleepy, rundown port city into the hub for the oil boom.
Local man Peter Abitty told the BBC he was renting out an eight-bedroom house for US $5,000 a month. The house overlooks the sea and comes with banana and coconut trees.
“Tenants that come here can take the coconuts for free! We don’t charge anything,” Abitty said.
He put the strong interest in the house down to a simple fact: “It’s out there: oil, oil, oil.”
People’s hopes are being raised in Ghana’s case because it has built a reputation as a better-governed country than other African petro states like Nigeria and Angola.
But others argue that price increases caused by the boom are destroying local businesses. A report on the Ghana Oil news website found popular local businesses suffering. One example it gave was the Unicorn Internet Café, an employer of local youth, which shut down in 2010 because of high rents.
It found businesses have shut down in the following sectors: timber, sawmilling, super markets, mobile phone shops, boutiques and trading shops. But it also found many new businesses opening up, including banks, insurance companies and hotels.
The challenge facing Ghana is to ensure oil brings a long-term change to a higher value business environment and economy, rather than just an unequal and temporary boom.
Another challenge is to connect the many youth leaving education in the city with the jobs and opportunities being created by the oil industry. The twin cities are a regional educational centre with a lot of technical colleges and secondary schools.
To counter these concerns, a Regional Coordinating Council is promising to place the growth of small and medium enterprises at the centre of regional development.
The dreams and promises for Takoradi are very ambitious. “In five years time, I see Takoradi becoming one of the modern cities of the world,” Alfred Fafali Adagbedu, the owner of Seaweld Engineering (www.seaweldghana.com), a new local company set up to service the oil sector, told the BBC.
“I can imagine skyscrapers, six-lane highways and malls.”
“The transport industry is going to improve, because workers on the rig are going to need to be transported. Agriculture is going to see a boom because all those people on the rig will need to be fed.
“Even market women are going to see more business, because a lot of workers are going to have very fat paychecks. Everyone in this city is going to gain in business.”
How far Takoradi has to travel to come close to meeting these dreams and expectations can be seen in its current state. The railway station has a train with laundry hanging from it because it hasn’t moved in years, reported the BBC. People are living in the sleeping car of the train.
But the typical signs of a boom are all visible: traffic jams, booked hotels, rising rents and prices, and it is already hurting people on fixed salaries.
Local authorities have plans to demolish rundown parts of the city and rebuild with modern office environments for the new businesses resulting from the oil economy.
An estimated US $1 billion a year in revenue will go to the Ghanaian government and local authorities want 10 percent of this to be ring-fenced for regional development.
“Many resources are coming from the western region. From years back, gold is here, timber is here, diamonds are here,” said Nana Kofi Abuna V, one of the few female chiefs in the area.
“But when they share the cake up there, they leave out the western region. This time, if there is oil and gas in the region we should benefit more than everybody else.”
But Adagbedu at Seaweld Ghana believes Ghana will see real improvements.
“I’m very sure we will avoid the mistakes,” he said. “Ghana is a democracy, everyone is watching, so there is going to be a lot of improvement here.”
And to help in keeping these promises, the BBC will continue to return to Sekondi-Takoradi to track its changes and see how things improve.
Published: September 2011
Resources
1) BarCamp Takoradi: BarCamp is an international network of user-generated conferences (or unconferences). They are open, participatory workshop-events, the content of which is provided by participants. Website:http://twitter.com/#!/barcamptakoradi
3) Friends of the Nation (FON): The NGO serves as a catalyst towards increased action for sustainable natural resource management and health environment in the Takoradi region. Website:http://www.fonghana.20m.com/aboutus1.htm
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.
The global South is currently experiencing the biggest surge in urban population ever seen in human history. This transformation from urban to rural is happening in many different ways across the global South. Some countries have highly detailed plans and are building new cities from scratch, while other countries feel overwhelmed by their booming urban populations.
By 2025, it is estimated the developing world could become home to 37 megacities with more than 10 million residents (http://en.wikipedia.org/wiki/Megacity) (The Guardian). Sixty years ago there were just two megacities: New York and Tokyo. Today, there are between 21 and 23, and the UN is forecasting that by 2025 Asia will have nine new megacities. By 2025, the majority of the world’s megacities will be in the global South.
But how will these cities be built? How will they use resources well and ensure the rapidly rising new buildings are safe and healthy?
A Chinese innovator and Internet sensation has developed a way to rapidly build high-density, high-rise structures that are also safe and meet strict earthquake-proofing standards. Building upwards is an efficient way to get more use out of space and to free up land for things like parks.
Just as the first megacities such as New York began building skyscrapers a century ago, going upwards will be the solution many of the new megacities will choose as they feel the pressing twin demands of rising populations and financial restraints.
The BROAD Group calls itself “an enterprise based on the vision of unique technologies and the philosophy of preserving life.”
The company is a pioneer in making non-electric air conditioning equipment, energy systems, and sustainable building technology.
The company has come a long way since it was started in 1988 with just US $3,000. By 1995, it had shed its debts and loans. It sees its mission as confronting the two major crises facing the world today: atmospheric pollution and global warming. The company hopes to evolve into a social enterprise.
BROAD calls itself a world leader in making central air conditioning powered by natural gas and waste heat (http://en.wikipedia.org/wiki/Broad_Group). The company is currently exporting its systems to more than 60 countries and was an official supplier to the 2010 Shanghai Expo.
BROAD has recently been expanding its product range and moving into constructing sustainable buildings. In particular it is developing an expertise in rapid construction techniques. This is important in the modern world as cities across the global South experience population growth and the pressing need to house people and create workplaces efficiently. BROAD is proud of the 15-storey hotel in Dongting Lake in Hunan Province it built in just six days, which became a hit on YouTube (http://www.youtube.com/watch?v=sjGhHl-W8Wg). After this achievement, BROAD constructed a 30-storey hotel in 15 days.
Part of the BROAD Group, Broad Sustainable Building (BSB) claims to make the “World’s first factory-made building.” BROAD says its buildings are sustainable because they efficiently use recycled construction materials, rely on materials free of formaldehyde, lead, radiation and asbestos and avoid “construction sewage” dust or waste.
BROAD was provoked into making sustainable buildings after the Wenchuan Earthquake in 2008 (http://quake.mit.edu/~changli/wenchuan.html). A year after the earthquake, 300 researchers from BROAD developed an earthquake-resistant building technology.
The factory-made building works like this: a “main board” is prepared with a floor and ceiling, ventilation, water supply and drainage, electricity and lighting. This is then placed on a truck and taken to the building site. All the workers need to do on site is assemble the building by screwing in the bolts and finishing it with the painting and other decorating. This makes the time spent assembling the building on site, according to BROAD, just 7 per cent of the total construction hours. This means 93 per cent of the building is prefabricated in a factory compared to an industry norm of 40 per cent.
BROAD’s latest project and biggest challenge is to build Sky City One (http://skycityone.wordpress.com/) – the world’s tallest tower at 220 floors and 838 metres – in Changsha in just 90 days. A mix of residential, commercial and retail space, it will allow between 70,000 and 120,000 people to work and live. The start date could be November 2012 and the building completed by early 2013.
The finished building will be 10 metres taller than the current tallest tower, the Burj Khalifa (http://www.burjkhalifa.ae/) in Dubai.
Published: October 2012
Resources
1) 20th Century World Architecture: The Phaidon Atlas by The Phaidon Editors, Publisher: Phaidon. Focusing on 750 of the most outstanding works built between 1900 and 1999, the book features every imaginable building type. Website:http://uk.phaidon.com/store/
2) Megacities Foundation: The Megacities initiative originates from the awareness of the future role of cities as the dominant type of settlement for humanity. Cities will play this role not just as a matter of fact but out of necessity as the only way of housing the world’s increasing population. Website:http://megacities.nl/
3) Andrew Marr’s Megacities: A BBC series exploring the rise of the megacities and what life will be like for their residents. Website:http://www.bbc.co.uk/programmes/b011ql6k
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.
In the bustling, congested cities of Asia, rickshaws and auto-rickshaws are common forms of transport. Smaller, cheaper and more nimble than cars, they play a key role in the transit infrastructure, helping to get people to work and to get around.
According to a report by the World Resources Institute (wri.org) and EMBARQ – a global network of experts on sustainable transport solutions – India’s auto rickshaws are “an increasingly important part of urban transport in cities.”
The report estimates the number of auto rickshaws at between 15,000 and 30,000 in medium-sized cities and over 50,000 in large cities. The report found they make up between 10 and 20 per cent of daily motorized road transport trips for people in Bangalore, Mumbai, Pune and Rajkot.
And it’s not just the economic role played in transporting people: auto rickshaws are made in India and their production there doubled between 2003 and 2010, making them a source of manufacturing jobs too.
As India’s cities continue to grow – estimates forecast urban populations surging from 340 million in 2008 to 590 million by 2030 – auto rickshaws could have a bright future as they remain an affordable and safe transport solution.
The monthly magazine Meter Down (http://meterdown.co.in/) – launched in 2010 – is targeting the large captive audience of Mumbai’s rickshaw passengers with news and advertising. It is modelled on the familiar free newspapers found in cities around the world. Usually, these newspapers are distributed at subway and metro stations or in metal boxes at bus stops. Meter Down takes a different twist on this concept, distributing the publication directly to rickshaw passengers.
Mumbai is a crowded and very busy Indian city with an estimated 14 million people. Many residents spend a lot of time commuting – and a lot of time stuck in traffic jams. They need something to occupy them and to keep them informed about the news. This also presents a significant opportunity for businesses to communicate messages and advertising products and services.
Founded by three university graduates, Meter Down is trying to reach young professionals with a bit of money who can afford to ride to work in auto rickshaws.
It is distributed through 7,000 auto rickshaws in Mumbai, according to The Guardian newspaper, and is also being distributed in Pune and Ahmedabad.
The clever bit is the incentive for the drivers to carry the magazine: they receive 35 to 40 per cent of the profit from advertising sales.
This is added to the 400 to 500 rupees they make in a normal shift, according to the Mumbai Autorickshawmen’s Union.
But isn’t it a challenge to read a printed publication while bouncing along the road? The publishers came up with a solution: no story is to be longer than 300 words and the magazine has many large-size photographs to make it visually appealing and easy on the eye. Then there is the issue of passengers leaving with a copy of the magazine, denying the next passenger their read. The solution they came up for this is to tie the magazine to the rickshaw.
One of the biggest problems for any new start-up publication is how to scale up and reach more readers. Meter Down cleverly has the mechanism to scale built into its business model: “The market for this is as big as the total number of auto-rickshaws in each city,” Dedhia told The Guardian. “We have successfully scaled the model and tweak it as per different specific needs. Since auto-rickshaws are present in every part of the country, we can expand the network everywhere.”
Meter Down’s founders estimate that each rickshaw makes 90 to 95 trips every day. They have calculated this leads to a potential readership of 600,000 people. To increase revenue sources, the magazine also sells advertising space on the back and inside of the rickshaws.
For people in wealthier countries, rickshaws may seem like a rough way to get to work, but they are actually, for Indians, the more expensive option. A three-mile ride in Mumbai costs 68 rupees (US $1.27), according to The Guardian, which is 10 times the cost of a second-class train ticket.
For Meter Down, this means targeting the magazine and the ads at a market of readers with money and a willingness to buy products and services. It looks like things could be on the up for Meter Down!
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.
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