Experiencing Development in Africa

Dr. Phil Osagie

Presented at: University of Toronto‘Experiencing Development in

Africa’On: 25 January, 2013

Scope of Presentation IntroductionPerception and misconception about Africa &

WhyThe Reality checkOpportunities in Africa Fighting Poverty with investmentsThe future

Current perception about AfricaOne country!Lions and monkeys…and more animals!Huts everywhereFamine and droughtCorruption and autocracyDarkness Guns and warsInefficiencies and poor infrastructureMalaria, HIV and diseasesDiamonds and oil

Why the perception

WHY?Media agenda‘Emotional blackmail’ and fund raising

communications by donor seekers & Western NGOsPoor information management by African nationsContinental corruptionThe hard facts themselves‘The law of Repetition and negative reinforcement-

“What you hear repeatedly, you will eventually believe.”

60+ FACTS& FIGURES ABOUT AFRICAAfrica accounts for 90% of malaria deathsOne in six children die before the age of fiveMeasles takes the life of a child nearly every

minuteOver 12 million children orphaned by HIV

Aids (UNICEF)Average water use and consumption is 20

litres a day (Compare 150 in UK and 600 in US and toilet use in UK)

547 million live without electricity

Facts….Mostly ‘mono economies’- excessive dependent on

commodity exports and natural resourcesThe least diversified region in the worldBy 2025, one in every 4 young people in the world

will be from sub Saharan Africa72% of the youth population live on below 2$ a dayCost of investment finance and borrowing highest

in the worldOver 39 million children are underweight Nearly 400,000 women die from maternal deaths

yearly

Facts & …Corruption concernsOver $145 billion leaves the continent every year and

Africa’s political elites hold over $700billion in offshore accounts (AU)

Someone dies of starvation every 3.6 secondsLess than 50% of the population have access to

doctorsOver 80% of farmers are womenPoor infrastructure reduces productivity by over 40% 33% of population have no access to waterOnly 1 in 4 has access to electricity

Facts…Agric. Sector employs over 65% of populationAfrica uses less than 5% of its annual

renewable fresh waterAccess to improved water supply is world’s

lowestHighest urban population growthBy 2030, almost 700 million will be in urban

citiesAfrica’s small enterprises contribute more

than 80% of output

Facts &…Over 80% of farmers in Africa are womenOver 23m girls out of schools- world highestOver 100 million women use rudimentary farm toolsSpend 2000 hours a year weedingWomen still face severe cultural barriersContinent with the greatest amount of civil warsCost of exporting and importing a container of goods

is highest in the world- 4 times cost of China30% of its infrastructure needs rehabilitation95% of its hydro power still untapped

MORE ECONOMIC FACTS

More facts… the goodAfrica’s economy expanded by 4.7% in 2010

and is expected to grow to almost 6% by 2013Fastest urbanization region in the world- 39.7

in 2005 to 53.5% in 2030Produces over half of the world’s diamondsOver 50% of the world’s goldCollective GDP of $2.6 Trillion by 2020Over 1.1 billion would be of working age by

2030

Facts….Home of the world’s biggest open markets-

over 3m daily to Nigeria Onitsha marketSix of the world’s fastest growing countries

in past decade ( Economist)Fastest growing middle class in the world- 60

million now and 100 million by 2015Direct Foreign Investment up by 1000% over

past decade ( $55 billion in 2010 alone)Mobile phone revolution- from 50m in 2002

to over 600m users- more than Europe and America)

Facts…2,375% growth in number of people with access to

the internetHome of richest black person in the world- the $13B

cement king Aliko Dangote ( not Queen Oprah Wimphrey)

Labour productivity on the increaseTrade between Africa and rest of the world

increased by 2000% since 2000Inflation down from 22% in mid 1990s to below 10% Increased privatization and reducing central role of

Government

Facts…Growing women influenceWomen entrepreneurs own over 25% of registered

businesses in NigeriaManufacturing exports up by almost 10% per year

since 2000Direct Foreign investment projects on the rise- over

$900 billion FDI in 2011 aloneForecast to grow faster than any other region in the

worldGrowing number of billionaires“Land of the low dangling trees”- record high

margins

DARK & HOPELESS? NO!

Some unusual facts

Large underground economy- almost two-thirds of the formal economy (Global underground economy around $10 Trillion)

Work is not almighty! People find alternatives

Informal merchants everywhereAnybody can start a business!Extended family social welfare system

Can investments fight poverty?The African paradox- poverty & splendor side by side

Squandering of riches

Role of Governments- need for new developmental frameworks

Need for greater sincerity of purpose by corporate sector

Call for redefinition of capitalism

Unleashing the Entrepreneurial Spirit

Outlook & Conclusion- From Hopeless to Rising

VIDEOS …playhttp://impactofinformationsystemsonsociety.word

press.com/2012/12/05/how-it-innovation-is-transforming-africa/ FACTS VIDEO

http://youtu.be/5kamlf-uAHU FACTS. DID U KNOW? 1

http://www.youtube.com/watch?v=ELc4dv78G4c AFRICA CITIES BIG. 2

http://youtu.be/vddX4n30sXY KOFI GOAL

http://www.youtube.com/watch?v=_gl_ZDDasAc AFRICA TIME. 3

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References

•http://www.globalissues.org/article/26/poverty-facts-and-statshttp://www.un.org/esa/analysis/wess/wesp2011files/2011wesp_pr_africa_en.pdf

•http://www.africaneconomicoutlook.org/en/outlook/http://www.oecd.org/document/16/0,3746,en_2649_33731_48794320_1_1_1_1,00.html

•http://www.mckinseyquarterly.com/Whats_driving_Africas_growth_2601

REFERENCES

• http://blogs.hbr.org/cs/2012/03/what_africas_entrepreneurs_can.html

• http://impactofinformationsystemsonsociety.wordpress.com/2012/12/05/how-it-innovation-is-transforming-africa/

• http://www.youtube.com/watch?v=_gl_ZDDasAc

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References

• http://www.bloomberg.com/news/2011-06-28/clinton-tells-envoys-africa-economies-would-fail-without-the-toil-of-women.html

• http://www.liberationafrique.org/IMG/pdf/TJN4Africa.pdf

• http://www.unmillenniumproject.org/documents/3-MP-PovertyFacts-E.pdf http://www.economist.com/node/21541015

• http://www.economist.com/node/21541008

Thankyou

Dr Phil OsagieGlobal Strategist of JSP Communications &

specialist on Emerging Markets and Africa

Email: emergingmarkets@jspcanada.com, drphil@jspcommunications.com

Tel: +14167296945, +2348035651565

Web: www.jspcanada.com, www.jspcorporate.com