Pulse #2 - Africa day, internet shutdowns, CFA, China
The Data Room
Reflections on internet shutdowns between 2017 to 2019 as we head into the next wave of African elections, and the importance of maintaining connectivity during this time.
Numbers in the Spotlight
74,000,000,000
(74 bn) cubic meters of water can be held by the new Great Ethiopian Renaissance Dam (equivalent to 1.5 years' worth of the Blue Nile’s flow)
$2,160,000,000
($2.16 bn) total estimated loss to African economies in 2019 due to social media censorship by governments
$1,000,000,000
($1 bn) of funding was approved by World Bank to Kenya to support budget gaps
$500,000,000
($500 mn) was announced by World Bank to fight locusts and preserve food security in Africa and the Middle East
107,412 cases
of COVID-19 confirmed in Africa (as of last week)
186
African government buildings to-date are known to have been built by The Chinese Communist Party, amidst concerns around spying
75 years
of the CFA Franc currency in West Africa comes to an end
$1
is the price of the COVID-19 test undergoing trials in Senegal
This week, increasing attention was placed on COVID-19’s impact on education, with millions locked out of school. Entrepreneurs, investors and corporates are trying to step in to fill the gap. For example in its 175th year in existence, Old Mutual launched what it labels “Africa’s biggest digital classroom”, Andela (recently plagued with bad news) partnered with Microsoft to launch ALCwithMicrosoft to enable engineers in Kenya and Nigeria to develop deep cloud skills, and Google and Ecobank announced a partnership to help SMEs embrace digital transformation.
Food security has been high on the agenda, with the World Bank announcing $500 mn to fight locusts, preserve food security and protect livelihoods. Meanwhile, securing Africa’s food supply chain remains a priority. One example, Tomato Jos - a Nigerian-based agro-processing company focused on capturing the end-to-end value chain with local production of high-quality tomato paste - closed a Series A round of €3.9m. The Government has long seen the potential of strengthening opportunities in the tomato value chain in Nigeria - the world's 14th largest tomato producer - with a 2017 policy aimed at increasing tomato import tariffs from 5% to 50%. With 45% of harvested tomatoes going to waste, Tomato Jos hopes to increase the affordability of tomato products in Africa by increasing efficiency in processing and distribution.
Access to financial services and products
Surprisingly, there was not much to report on inclusive financial access despite its critical importance in the wake of COVID-19 community lock-downs. In Kenya, growth in mobile payments fell to a 13 year low, with inconclusive evidence of its cause. Be it due to reduced consumer spending related to COVID-19, or related to concerns that financial services are actually becoming harder to obtain for those who cannot afford access to digital tools, the direction of growth for digital finance in Africa remains to be seen. Nonetheless, tackling Africa’s ~350 million unbanked adult population is just as much about process and regulatory innovation. In South Africa Capitech decided to forgo proof of address to make their financial services more accessible.
Baseline infrastructure, personal living-space & utilities
Africa’s local construction sector is under strain, with another casualty - South African construction firm, Esor - announcing its delisting from the JSE. At the macro level, China’s Belt and Roads Initiative is also at risk with work stalled, and African countries in the firing line for billions in structured debt. With historic projects at risk and the era of big mega-city infrastructure being called into question, could the Continent reframe and channel its resources into leading with high tech, smart cities?
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