Growth in Africa’s two largest economies may be sputtering along but that won’t stop the continent’s gross domestic product from expanding at the fastest pace since at least 2012.

GDP growth for the continent is forecast to accelerate to 4 percent this year, up from an estimated 3.5 percent in 2018, making it the fastest-growing region in the world after Asia, according to the African Development Bank. And that’s despite Nigeria and South Africa, which make up almost half of the continent’s GDP, “pulling down Africa’s average growth,” as the Abidjan-based lender said in its latest economic outlook report.

Nigeria’s GDP will expand by 2.3 percent in 2019, which is below the rate of population growth, as the government struggles to reduce the nation’s oil dependence and attract foreign investment. South Africa’s expansion will be even slower, at 1.7 percent, as the continent’s most-industrialized economy battles to recover from last year’s recession. Both countries are in the AfDB’s list of 10 slowest-growing economies.

While the powerhouses in western and southern Africa struggle to gain meaningful momentum, the continent’s economic growth will once again be driven by East Africa, which will be the fastest-expanding region for the fifth straight year. Ethiopia, Kenya, Rwanda and Tanzania all feature on the AfDB’s list of 10 fastest-growing economies for 2019. Egypt, the biggest economy after Nigeria and South Africa, will also help drive growth. Output in the Arab world’s most-populous country will rise around 5.5 percent this year as the government’s structural reforms attract more investment.

Subdued growth in southern Africa is due to South Africa’s weak output, which affects neighboring countries, the AfDB said. While West Africa’s prospects are more upbeat, they may be clouded by risks including uncertainty in global commodity prices and security concerns in some countries, the lender said.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: EJ Yao [1], [2].

Extreme weather events, such as Cyclone Idai that has recently devastated Beira, Mozambique, and Hurricane Harvey that hit Houston, USA, in 2017 are the types of climate extremes that cities increasingly have to prepare for.

Cities, particularly those with extensive informal settlements in the developing world, are being hit hard by these new climatic realities. Although rapid onset disasters often have devastating effects, slow onset climate events, such as drought, can also be detrimental.

Cities need to build their capacity to adapt to this range of impacts. One of the best ways to do this is to learn from other cities’ experiences. Drawing lessons from other places that have gone through climate crises is a good way to guard against future shocks and stresses.

One very recent case that cities around the world are watching is Cape Town’s severe drought and the threat of “Day Zero” – when the city’s taps were due to run dry. Although the city came close to having to turn off the taps, they managed to avoid it. After better rains in 2018 and significant reduction in water use across the city, the dams are now reassuringly fuller than they were in 2017 and 2018, although caution is still needed ahead of the winter rains.

A lot has changed and it’s important to reflect on and share.

Research has been conducted to establish some key lessons to be drawn from the Cape Town drought. Local governments must focus on several important areas if they’re to strengthen urban water resilience and adapt better to climate risk. These include improving data collection and communication, engaging with experts and enabling flexible adaptive decision making.

Governance must be strengthened. Although three years of low rainfall lead to very low dam levels, there were breakdowns in the interaction between national, provincial and municipal government that exacerbated the problem.

The findings

The research suggests that effective water management requires systems of mutual accountability between spheres of municipal, provincial and national government.

In South Africa, the national Department of Water and Sanitation is responsible for ensuring that there’s sufficient bulk water available, often in dams, that can be transferred to municipalities. The municipalities are then mandated to provide clean drinking water. This means that intergovernmental coordination across the spheres of government is vital.

As it stands, different spheres’ mandates overlap. This creates confusion and means the buck is often passed: one sphere of government will insist a particular competency isn’t its job, and hand the work on to another sphere.

For this to be resolved there has to be clarity on shared responsibilities and roles, as well as the development of mutual accountability. To achieve this, technical skills, personal and institutional relations need to be strengthened. This requires strong leadership.

Collaboration within municipal departments also needs to improve. The Cape Town drought highlighted the importance of this. Before 2017, there was limited collaboration between city departments on water issues. During the drought however, collaboration between certain departments increased considerably as the complexity of the crisis became clear.

Not only is collaboration within government important, it needs to extend beyond government. During a crisis, all of society needs to be engaged, including citizens and the business sector. Technical expertise need to be balanced with opportunities for a broader group to share its perspectives and concerns. Partnerships can help gather the range of perspectives and support needed to respond to complex problems.

Municipalities which, during the course of their normal business activities, have developed strong relationships with their stakeholders, will be better placed to respond effectively to a crisis. That’s because they will be able to harness stakeholders’ collective knowledge and contributions more easily.

In Nelson Mandela Bay, the Business Chamber has done this by strengthening relations with the municipality to help to facilitate the ease of doing business in the city. They recognize that all businesses require electricity, water, transport and logistics, for example, and so focus on improving these areas. The municipality developed task teams made up of volunteers from their member companies who have skills set in those areas.

Importantly, there is an agreement that the Metro places high level executives to sit in the task team meetings to ensure plans are put into practice. These types of relationships can be invaluable during a crisis.

Moving forward

While my study focused on Cape Town, its findings can be applied to other cities that want to strengthen their ability to adapt to climate change. Yes, cities need to pay more attention to how climate variability impacts on their resources, particularly water. But just as important is strengthening the governance of the water system. A well adapted city is one that understands who is responsible for what and has strong trust and partnerships between and within government.

In order to build capacity to adapt, new types of skills are needed. Local government needs to pay more attention to how to build partnerships, enable flexibility and support learning. These are the types of skills needed for a well adapted city, but still often lacking in local governments.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: Jason Blackeye [1], [2].

Applications have opened for the ninth edition of the annual Orange Social Venture Prize in Africa and the Middle East, which rewards innovative projects that improve people’s living conditions.

Applications are open until May 30, with Orange looking for tech-based social projects in fields such as education, healthcare, farming, mobile payments and sustainable development.

Three winners will receive EUR25,000 (US$30,500), EUR15,000 (US$18,000) and EUR10,000 (US$12,000) respectively, as well as six months of personalized support from startup creation and financing professionals.

The Orange Social Venture Prize is open to all students, employees and entrepreneurs over the of age 21 whose initiative is under three years old and serves any of Morocco, Tunisia, Egypt, Senegal, Botswana, Liberia, Ivory Coast, Cameroon, Mali, Guinea Conakry, Guinea Bissau, Madagascar, Niger, Central African Republic, Democratic Republic of Congo, Jordan, Burkina Faso, and Sierra Leone.

The contest aims to reward the best innovative and socially responsible business projects in Africa and the Middle East. This 9th edition unfolds in two phases: first the candidates participate to a national competition, then an international jury gives a grand prize to the best national winners. At both the national and international step, the viewers of this site can vote to add a name to the jury shortlist.

For more details about the contest, click here. To enter click here.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

The South African arm of Nissan will spend R3 billion equipping its local plant to build the Japanese carmaker’s new Navara model, the unit’s boss said on Wednesday.

Capacity at Nissan’s plant in Rosslyn, near Pretoria, will increase by 30,000 units in the first phase, Mike Whitfield, managing director at Nissan South Africa said, while the plant’s permanent headcount will increase by 400.

“Today, we’re able to announce that the Nissan South Africa Rosslyn facility will build the entire model range Nissan Navara for both local and export (markets),” Whitfield said at an event to announce the investment.

While production operations elsewhere will also build the new Navara, a pick-up, Nissan South Africa will supply the local and continental market.

Whitfield said his unit had to beat other global Nissan production operations to win the right to produce the Navara – a victory for his unit and also South African President Cyril Ramaphosa ahead of elections in May.

Nissan South Africa’s Rosslyn Plant.

Ramaphosa, who was at the event on Wednesday, is trying to secure $100 billion in investment into South Africa within five years.

While he has had some success, he is contending with a sluggish economy and a legacy of corruption and mismanagement, knocking confidence in Africa’s most industrialised economy.

Ramaphosa said Nissan’s investment marked a “milestone” in his drive and was a vote of confidence in South Africa.

In common with many global carmakers, Nissan doesn’t currently have any significant production operations in sub-Saharan Africa outside South Africa, which it entered in 1963 and is the only substantial market for new cars in the region.

However, Nissan and many rivals are hoping that will change. A number have recently opened or committed to open plants elsewhere, including in Nigeria, Ghana and Kenya.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].