Seeds of Opportunity: The African Growth Series
October 2023 | Issue 2
In this week's issue, you will learn more about:
- AFRICA OPPORTUNITY: Reducing Tax Barriers to Mobile Internet Access
- AFRICA OPPORTUNITY: The Benefits of the African Continental Free Trade Area (AfCFTA)
- UPCOMING EVENT: Africa Energy Week (AEW) 2023
- UPCOMING EVENT: Africa Energy Week (AEW) 2023
AFRICA OPPORTUNITY: Reducing Tax Barriers to Mobile Internet Access
Due to a lack of robust terrestrial and aerial infrastructure, mobile technology plays a crucial role in achieving Africa’s digital inclusion ambitions, connecting everyone to reliable and high-speed internet. However, only 40% of the adult population in Sub-Saharan Africa were connected to mobile internet services and another 44% of the population live in areas covered by mobile broadband networks, but cannot access mobile internet services in 2021. Mobile consumers and operators in Sub-Saharan Africa face one of the highest tax burdens in the world since the cost of mobile connectivity remains high. Largely due to hefty import duties, taxes on mobile services and other regulatory fees. Consumers often take on these financial burdens, making it challenging for a significant portion of the population to afford consistent internet access since almost 30% of Africa’s population was living in extreme poverty in 2022. By alleviating these tax barriers, governments can stimulate the growth of the mobile internet sector, fostering greater digital inclusion.
Enhanced mobile connectivity can, in turn, open doors to a variety of opportunities for individuals and businesses. From accessing educational resources and healthcare services to participating in the global digital economy. As the digital landscape evolves, having a robust mobile internet infrastructure becomes crucial for Africa to remain competitive on the global stage. For Sub-Saharan Africa, where many countries are still grappling with infrastructural challenges, reducing tax barriers can serve as a catalyst, bridging the digital divide and propelling the region into a more connected and prosperous future.
AFRICA OPPORTUNITY: The Benefits of the African Continental Free Trade Area (AfCFTA)
The African Continental Free Trade Area (AfCFTA) is a transformative force, pivotal in optimising intra-African trade. This groundbreaking trade agreement is poised to boost intra-African trade by an impressive 52.3%, fostering deeper continental integration, enhanced productivity, and a surge in job creation. Projections indicate that by 2035, Africa's total exports will reach a substantial US$952 billion. Yet, the true potential of the AfCFTA, once fully realised, promises a remarkable 29% increase in this figure, equating to an annual growth rate of 3% through 2035.
Nevertheless, the region must still surmount formidable barriers to unlock its full potential. In this context, digitisation emerges as a powerful ally, capable of reducing trade integration costs, dismantling structural impediments to intra-regional trade, and accelerating infrastructure development in remote areas. Furthermore, adopting digital supply chain financing solutions could unlock an additional US$34 billion of export value in five key markets by 2035.
Harnessing the boundless opportunities afforded by AfCFTA has the potential to significantly elevate the social and economic standing of the region. Forecasts indicate that the population's income could increase by an impressive US$450 billion by 2035, and the African economy could reach an astounding US$29 trillion by 2050. AfCFTA presents a unique opportunity for Africa to uplift millions of people out of poverty, with a particular emphasis on empowering women and youth to transform the continent's business landscape.
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UPCOMING EVENT: Africa Energy Week (AEW) 2023
We are only a few days away from the AEC African Energy Week which starts from 16-20 October at the CTICC in Cape Town.
Hendrik Malan will be moderating the panel 'Powering Africa: Harnessing the Promise of Gas-to-Power' on 18 October at 11h20. This session will delve into the opportunities and challenges intrinsic to financing large-scale gas infrastructure, integrating gas into the energy matrix, ensuring the provision of competitive tariff structures, off-take agreements, and implementing market reforms that facilitate the development of gas-to-power projects.
Panelists include:
- Manuel Barros, CEO of the Gas and Renewable Energy Business Unit, Sonangol
- Julian Horn, Managing Director Renewables, Savannah Energy
- David Pappoe jnr, Executive Director, Energas West Africa Limited
- Olakunle Williams, CEO, Tetracore Energy
- Pierre Raillard, Head of Gas Business and Morocco Country Director, Chariot Limited
- Sujen Balakisson, Business Development Manager for the Southern and Eastern Africa region, Wärtsilä Energy Solutions
- Jérôme Paillat, Senior LNG Project Director - TotalEnergies Gas, Renewable & Power
You can still be a part of the African Energy Renaissance by securing your spot here - https://aecweek.com/.
UPCOMING EVENT: Critical Minerals Africa 2023
The Critical Minerals Africa 2023 conference kicks off next week from 17-19 October! Taking place in Africa’s leading event destination, the CTICC, Cape Town, and concurrently with the continent’s largest energy event AEC African Energy Week, the first Critical Minerals Africa unites governments from all corners of the African continent; international presidential and ministerial delegations; provincial governments, global finance, and mining, manufacturing and technology firms.
Come and join us 18 October at 16h00 as Christopher Vandome moderates the panel 'ESG and Building More Value in Africa’s Critical Minerals Production'.
Panellists will include Anja Berretta (Konrad Adenauer Foundation), Cathie Lewis (GCX), Patrick Prestele (Frost & Sullivan Africa), and Selleen Sewpershad (Southern African German Chamber of Commerce and Industry)
Get your ticket now - https://lnkd.in/dDEY8k4z.
To find out more about opportunities in Africa, please get in touch with Lynne Martin.
