Seeds of Opportunity: The African Growth Series
July 2024 | Issue 2
In this week's issue, you will learn more about:
- AFRICA TREND: South Africa Leads in Digital Health Innovation
- AFRICA TREND: ESKOM Decouples Implementation of the Renewables Program from the Closure of Power Stations
- AFRICA TREND: Enhancing Agricultural Sustainability in Africa
- AFRICA TREND: African SEZs Driving Continental Growth
- AFRICA OPPORTUNITY: TurnStay is Turning Tables for African Tourism
AFRICA TREND: South Africa Leads in Digital Health Innovation
Netcare's CareOn, a pioneering electronic health record (EHR) system, has clinched the Digital Innovation Award at the 7th International Quality Awards in London. This South African innovation, chosen from 87 entries across 19 countries, is revolutionising healthcare delivery. With a projected 21% annual internal rate of return, CareOn exemplifies the burgeoning African medical technology market, set to reach USD 15.32 billion by 2029 at a 6.3% CAGR. This digital transformation positions South Africa at the forefront of global healthcare innovation.
AFRICA TREND: ESKOM Decouples Implementation of the Renewables Program from the Closure of Power Stations
ESKOM CEO Dan Marokane maintains that implementing green energy projects on the adjacent land to existing power stations before they are decommissioned will be an important step in ensuring that ESKOM’s goal of being a net-zero emitter by 2050 is met and brings ESKOM in alignment with the Just Energy Transition Strategy. An example of this is the 75 MW solar PV facility being built alongside the Lethabo power station in the Free State.
Land adjacent to power stations is ideal for renewable energy projects, as these sites are grid-ready. While allowing ESKOM to participate directly in renewable energy projects developed on these sites does raise concerns as to whether this will mean that ESKOM renewable energy projects will crowd out those from Independent Power Producers, CEO Marokane maintains that it is possible for projects to be pursued in partnership with IPPs in a way that the skills and technical expertise of the private sector companies are leveraged. In addition, the decoupling initiation will mean a more stable alternative for workers and communities surrounding the power stations and the disaster of stranded communities (like what occurred at Komati) due to the closure of the station and subsequent loss of jobs before the correct alternatives are in place, is avoided.
Overall, the “decoupling” of decommissioning power stations and building renewable energy projects will mean that ESKOM can take constructive steps toward increasing the transition to green energy in South Africa.
AFRICA TREND: Enhancing Agricultural Sustainability in Africa
The global population is projected to increase from 8.2 billion today to 10.3 billion over the next 60 years, with significant growth anticipated in Africa, where many nations continue to experience high fertility rates. This demographic shift, coupled with the challenges posed by climate change and a burgeoning global demand, threatens food security worldwide, particularly in Africa.
Addressing these challenges requires transforming Africa’s agricultural practices to boost food production. However, persistent drought has diminished arable land while population growth further limits farming space. To meet the nutritional needs of a growing population, it is essential to enhance food production efficiency in small areas and promote crop diversification, moving away from dependency on single crops.
Leveraging technology and scientific advancements can empower farmers to mitigate climate risks and cultivate a broader range of crops resilient to changing environmental conditions.
AFRICA TREND: African SEZs Driving Continental Growth
African Special Economic Zones (SEZs) are emerging as key drivers of economic growth, attracting billions in foreign investment and creating thousands of jobs. With the implementation of the African Continental Free Trade Area (AfCFTA), SEZs are poised to become game-changers in the manufacturing, technology, and logistics sectors. Success stories like Morocco's Tanger Med Zone, which hosts over 1,200 multinationals and generates more than USD 14 billion in annual exports, demonstrate the potential of well-managed SEZs.
AFRICA OPPORTUNITY: TurnStay is Turning Tables for African Tourism
TurnStay.com is a South African fintech company working in the travel industry. It aims to reduce the cost of getting paid currently experienced by African merchants and platforms. The company has secured US$300,000 from the investors DFS Lab and DCG, based in Silicon Valley and New York, respectively.
The funds will be used to further TurnStay’s reach into Africa and support the positive growth the company has experienced to date. This company plugs a significant gap in the market, as getting paid in Africa is a pricey exercise, with levies and fees slicing revenue by approximately 12%. This is because payment processing is much higher in Africa than globally, meaning the transaction fees may be up to twenty times higher than global online travel agencies.
Therefore, TurnStay offers merchants lower card fees, a better checkout experience, and more direct bookings, improving African companies' conversion rates. This enables African companies to compete globally, lowering the entry barrier for those wishing to participate in the African tourism industry. This is fantastic because this industry currently supports approximately six million people, with room to expand as industry participation is encouraged through TurnStay.com.
To find out more about opportunities in Africa, please get in touch with Lynne Martin.
