Seeds of Opportunity: The African Growth Series
September 2023 | Issue 2
In this week's issue, you will learn more about:
- AFRICA TREND: Africa's Demographic - Benefit or Burden
- AFRICA OPPORTUNITY: South Africa’s Ammonia Ambitions
- AFRICA TREND: Innovation in East Africa's Tech Sector
- AFRICA OPPORTUNITY: EdTech - The Transformative Force for Africa's Youth
- BUSINESS DAY TV INTERVIEW: Technology & Jobs in Africa
- UPCOMING EVENT: Transport Evolution Africa Awards
- UPCOMING EVENT: Hydrogen-Africa 2023
- UPCOMING EVENT: African Energy Week (AEW) 2023
AFRICA TREND: Africa's Demographic - Benefit or Burden
Africa's rapidly growing population presents a paradox of immense opportunities and challenges. With a high urbanisation rate and a predominantly young demographic, the continent is poised for transformative changes in the coming decades. The urbanisation surge signifies increased economic activity within cities and the potential for innovative solutions to address various urban challenges. Young Africans represent a burgeoning workforce, offering a vast talent pool and creativity that can fuel economic growth, technological advancements, and entrepreneurship.
However, this demographic dividend comes with challenges. The high proportion of young, uneducated, and unskilled individuals poses a significant risk if not appropriately harnessed. The lack of access to quality education and vocational training could result in a growing youth population facing underemployment or unemployment, potentially leading to social and economic instability. To fully capitalise on Africa's demographic advantage, concerted efforts are required to invest in education, skills development, and job creation. Equipping the youth with the tools needed to participate in the global economy is essential for sustainable growth.
In navigating this demographic landscape, African governments and businesses must prioritise education and skills training while fostering an enabling environment for entrepreneurship and innovation. Investments in healthcare, infrastructure, and technology are equally critical. Africa's demographic potential is a valuable asset. Still, its realisation hinges on proactive measures to ensure that the continent's youth are empowered and enabled to contribute positively to their societies and economies.
AFRICA OPPORTUNITY: South Africa’s Ammonia Ambitions
Ammonia, a chemical compound composed of hydrogen and nitrogen, is pivotal in agricultural and mining sectors. Historically, South Africa has sourced its ammonia primarily from fossil fuel-intensive processes and imports, leaving the country heavily dependent on global markets. However, recent initiatives by companies like Omnia and Hive Ammonia are exploring the feasibility of establishing eco-friendly ammonia production facilities within South Africa. This move is in response to the substantial demand from the mining and agricultural industries and the anticipated rise in green hydrogen demand.
One notable project is the Hive Hydrogen endeavour, situated in the Coega Special Economic Zone and known as the Coega Green Ammonia project. It aims to manufacture 950,000 tonnes of green ammonia annually, potentially generating more than 20,000 direct and indirect employment opportunities. The project has already commenced efforts to obtain approval for its 1,200 MW electrolysis system connected to a solar facility.
Simultaneously, the Omnia group has entered into a memorandum of understanding (MoU) with WKN Windcurrent, a German renewable energy conglomerate PNE subsidiary. This collaboration explores the viability of establishing a green ammonia production plant within South Africa.
As both these companies progress in establishing Green Ammonia plants, they are poised to serve as catalysts for establishing businesses and manufacturing facilities by material and equipment suppliers, thereby contributing to the growth of the green economy in the region and fostering long-term employment opportunities.
AFRICA TREND: Innovation in East Africa's Tech Sector
African startups have raised over US$1.4 billion in funding from 153 deals in the first half of 2023. Most startup funding in Africa is attracted by the 'Big Four’ - Egypt, Kenya, South Africa. and Nigeria. Over the past decade, East Africa has emerged as a vibrant hub of innovation, where technology is transforming industries, empowering communities and driving economic growth. Nairobi, often called "Silicon Savannah," has become a hotspot for entrepreneurs and investors alike. Techies in Silicon Savannah are working to solve problems through tech, such as connecting off-the-grid schools to the internet through solar-powered routers, tablets and turning electronic waste into affordable 3D printers that spit out artificial limbs. Companies like Jumba, Ando Foods and Tembo Plus have been innovating and attracting investment. Many US-based tech companies invest heavily in East Africa, leading to an increase in tech startups in the region achieving unicorn status with a US$1 billion or more valuation. East Africa's tech startups are creating transformative solutions, thus attracting international attention and investment.
AFRICA OPPORTUNITY: EdTech - The Transformative Force for Africa's Youth
Edtech, short for education technology, is an approach that taps into technology to increase the performance and outcomes of educating students. Edtech can be a transformative force in Africa, but it faces local challenges around the digital divide, lack of digital skills, high cost of Internet Access, and lack of mobile coverage. Despite these challenges, EdTech startups are emerging across the continent, promising to unlock Africa’s young population. EdTech can empower Africa by bridging the skill gap amongst its youth. The COVID-19 pandemic already accelerated its popularity among students and parents, making it a promising avenue for advancing education.
EdTech is forecast to grow at a Compound Annual Growth Rate (CAGR) of 16.3% till 2025 and is expected to reach US$ 404 billion in global expenditure, reaching 5.5% of the global education market. Spending on education in Africa is higher than in the rest of the world and is driving local EdTech growth, with education spending increasing at a 14% CAGR. The EdTech market is expected to expand from 1% of the total African Education market to roughly 6-10% in 2030, reaching a US$ 57 billion market size.
Africa has the fastest-growing population globally, and there will be an increased demand for access to education on the continent. EdTech will be instrumental in providing affordable and flexible education.
BUSINESS DAY TV INTERVIEW: Technology & Jobs in Africa
Technology is changing the face of various jobs and how we go about creating them.
Learn more as BusinessDay TV unpacks the relationship between job creation and technology adoption in Africa with Frost & Sullivan Africa Consulting Analyst, Sisonke Mgwebi:
UPCOMING EVENT: Transport Evolution Africa Awards
We are just two weeks away from the prestigious Transport Evolution Africa Awards 2023 happening on 21 September at the Durban ICC.
Join us in applauding the remarkable achievements and invaluable contributions of our distinguished 21 finalists, each of whom has left an indelible mark on the transport industry.
Don't miss your chance to be a part of this event. Secure your seat at the awards ceremony now!
👉 Book here: https://lnkd.in/dVhwuSH8
UPCOMING EVENT: Hydrogen-Africa 2023
Meet us on 28th-29th September 2023, at Emperors Palace, Johannesburg to engage with energy experts and other renowned industry leaders to accelerate the future of Africa's Hydrogen Economy!
➡ Delegate Registration link:
Delegate Registration link: https://lnkd.in/dmtWuevd
Email: marketing@hydrogen-africa.com
Contact: +27 (0) 65 982 8810
UPCOMING EVENT: African Energy Week (AEW) 2023
This year's event returns bigger and better than ever before, serving as the official meeting place for Africa’s energy elite. At the forefront of the African energy industry, AEC African Energy Week promotes Africa's role in global energy matters, centered around African-led dialogue and decision-making. Covering the entire energy sector and value chain, AEW represents the only conference on the continent representative of the entire sector.
Join us from 16-20 October at the CTICC in Cape Town, South Africa, and experience Africa's booming energy markets.
➡ Click here to register: https://lnkd.in/d9y9Z2Tv
To find out more about opportunities in Africa, please get in touch with Lynne Martin.
