Trending Now
AFRICA ANALYST
Africa News & Current Events, Africa Analyst. Comprehensive News Reporting & Articles. African Trade, Commerce & Markets, Investment, Business News Reports & Updates, Agriculture, Travel & Tourism & More. Read Africa Analyst for African News & Current Events
- Advertisement -
LATEST ARTICLES
All eyes on Senegal: Why my country, and the world, can’t afford to miss this opportunity
Dr Solange Bandiaky-Badji Rights and Resources Initiative (RRI) President and Coordinator
While the world feels to be perched on the edge of decline, I can’t help but look to the country of my birth and see something rare and precious – opportunity.
Senegal hasn’t, until this year with the democratic election of Africa’s youngest leader, tended to make global headlines. Yet I am more and more resolute in my belief that it has the potential to become the face of the continent’s future.
Why? A powerful and rare convergence of relative peace, one of the youngest populations in the world, the economic prosperity that can come from new oil and gas and a dynamic new government elected not once, but twice with a large parliamentary majority.
Yet, all of these factors face difficult realities, and the world is watching Senegal to see if it can navigate into its new era with grace and equity. New oil and gas extraction has plunged other once proud African nations into conflict as natural environments across the region are damaged beyond repair, devastating climate impacts are fuelled, and land rights are cruelly disregarded, with attempts to reform failing over past decades. New jobs are going not to our own eager workforce but overseas.
We know that if managed incorrectly, new extraction plants could have devastating effects. Nowhere was the battle cry sharper on this than at COP29 in November. That new oil and gas plants, while still a reality of the world we live in, are being opened at all must weigh heavily on our collective conscience. But if they are to be done, they must be built and operated with an abundance of consideration for the lands they sit on and the people who live on these lands.
Rich in natural resources, Africa is where global geopolitics are playing out. The continent is at the forefront of our changing world. This means that if Senegal seizes its unique chances it can be a guiding light to others. Newly-elected President Bassirou Diomaye Faye has the challenge of remaining robust and clear-eyed as this journey gets underway. And given that his party, PASTEF, are grounded in the ideals of a youth movement driven by the ideology of good governance and the fight against systemic corruption, I hope that his plans include proceeding with oil and gas with great care and caution.
I trust that President Faye is determined in the mantle he has assumed and serious about Senegal’s leadership potential. His government’s 2050 vision maps brave steps to allow him to take action. Equally, he was voted in based on much-needed campaign promises to create more jobs, boost prosperity, and reform the corrupt system Senegal has been in for decades. The expectations have been raised far too high to fail.
As a proud Senegalese leading a global coalition of organizations working for the land and resource rights of Indigenous Peoples and local communities, particularly the women and youth within them – my country’s shift to becoming a new oil and gas producer is bittersweet.
I know the grave concerns of fishermen about the risk drilling has to pollute the waters providing them a life source. And I know that there are local communities who must not be displaced, nor forced to live as the forests around them are stripped back, in the name of economic gain.
Senegal is no stranger to increasing climate impacts, having suffered massive coastal erosion and flooding that has displaced tens of thousands of people and put the country’s food supply in jeopardy by destroying crops. This is without the added pressure of oil and gas extraction. In other African countries, we have seen poorly managed extraction cause rampant pollution, unmanaged deforestation, and eruption of conflict and corruption compound the already destabilizing effects of rising temperatures.
It would pain me to see Senegal succumb to similar fates, which is why I will continue to highlight the importance of undertaking major reforms – starting with the land reform that has been stalled under previous Presidents and to promote fair and equitable natural resource extraction that benefits the country and its rural communities.
So, his audit into the oil and gas and mining sectors is a positive first step. Our natural resources have the potential to boost Senegal’s economic prosperity. Despite the comparative peace and stability in Senegal, many young people are getting in boats and leaving, risking their lives at sea. Providing more employment, and better quality of employment through extraction could help us retain our future generations.
Moreover, while the responsible creation and operation of new plants is vital, there’s an issue that has not been addressed since independence from France that can have a role in guaranteeing standards are upheld – land reform.
Senegal’s main land law – loi sur le domaine national – has not been updated since 1964, with efforts over the past decades falling short. We must guarantee that extraction is going to be done in a way that does not harm the environment, is not corrupt, and does not take the rights of communities who live on the land into account in the absence of clear and current land law.
If President Faye can unpick this historically complex issue and find an equitable way forward for land reforms that protect local communities from displacement in favor of drilling, Senegal stands a chance of showing our African neighbours and the rest of the world how it’s done. The world is watching, President Faye, for you to steer into a new era of peace and prosperity.
Water pollution in Ghana has reached alarming levels, with illegal mining activities emerging as a primary culprit.
This environmental crisis threatens public health, ecosystems, and the country’s water security. Let’s explore the scope of the problem, its impacts, and potential solutions.
The Scale of Water Pollution
Ghana’s water bodies are facing unprecedented levels of contamination. According to the Water Resources Commission, about 60% of Ghana’s water bodies are polluted, with many in critical condition [2]. The pollution is particularly severe in the south-western parts of the country, where illegal mining activities, known locally as “galamsey,” are widespread [2].
The Ghana Water Company has been forced to reduce its clean water supply by a staggering 75% due to pollution, impacting hundreds of thousands of residents across the southern coast[1]. This reduction is a direct result of illegal gold mining on major water bodies in the Eastern, Ashanti, Central, and Western Regions.
The Role of Illegal Mining
Illegal small-scale mining, or galamsey, is the primary driver of water pollution in Ghana. This practice involves both Ghanaians and foreigners, including Chinese nationals and individuals from neighbouring West African countries [4]. The scale of the problem is massive – between 2008 and 2013 alone, over 50,000 Chinese nationals entered Ghana to engage in illegal gold mining[4].
Environmental Impact
The environmental consequences of galamsey are severe and far-reaching:
- **River Contamination**: Major rivers like the Pra, Ankobra, Oti, Offin, and Birim have been heavily contaminated[4]. The Pra River, one of the largest in the country and a main source of drinking water for local communities, is particularly affected [1].
- **Forest Destruction**: The Forestry Commission reports that 34 out of Ghana’s 288 forest reserves have been impacted by illegal mining, with 4,726 hectares of forest land devastated [4].
- **Farmland Damage**: Galamsey is destroying farmlands, particularly affecting cocoa production. In the Mankurum community alone, over 100,000 acres of cocoa have been wiped out due to illegal mining[4].
- **Chronic Diseases**: Research links water pollution from galamsey to chronic diseases such as kidney failure, birth defects, and cancer[4]. These health issues are particularly prevalent in Ghana’s mining communities.
- **Heavy Metal Contamination**: Studies have found high levels of heavy metals in water bodies near mining sites. Lead, cadmium, chromium, nickel, iron, and zinc have been detected at levels exceeding World Health Organization (WHO) guidelines[3].
- **Mercury Poisoning**: Illegal miners often use mercury to separate gold, which then contaminates water sources. Dr. Elliot Tanner reports that mercury from mines is killing people, with a tripling of kidney disease cases in the Ashanti region over the past decade[5].
- **Agricultural Losses**: Ghana’s cocoa industry, a crucial part of the economy, is suffering. Current production is less than 55% of its seasonal output, largely due to illegal mining activities[4].
- **Water Treatment Costs**: The Ghana Water Company Limited has reported turbidity levels of 14,000 NTU (nephelometric turbidity units) in some water sources, far above the 2,000 NTU required for adequate treatment[4]. This increased pollution leads to higher water treatment costs and potential water scarcity.
- **Future Water Scarcity**: Experts warn that if the current trend continues, Ghana could be forced to import water by 2030[4].
- **Legislative Measures**: The Small-scale Gold Mining Act of 1989 and the 2006 Minerals and Mining Act were introduced to legalize artisanal mining and prevent illegal activities[4].
- **Task Forces**: Joint task forces comprising military and other security personnel have been established. In 2013, this led to the deportation of 4,500 Chinese miners[4].
- **Legal Action**: As of September 2024, 76 people have been convicted since August 2021, with over 850 facing trial for galamsey-related offenses[4].
- **Community Mining Programs**: The state has introduced regulated small-scale mining programs to ensure responsible extraction[4].
- **Political Interests**: Key state officials, politicians, and party financiers have been implicated in illegal mining activities but have not faced prosecution[4].
- **Economic Dependence**: Many communities rely on illegal mining as a source of income. A WaterAid survey found that over three-quarters of those involved in illegal mining saw it as a lucrative income source, despite being aware of its environmental impacts[1].
- **Climate Change**: Extreme weather events are pushing more people, particularly those living in poverty, into illegal mining activities as traditional sources of employment like farming become less reliable [1].
- **Enforcement Challenges**: Despite numerous initiatives, the government has struggled to effectively enforce environmental laws and regulations.
- **Stricter Enforcement**: The government must strengthen its enforcement of existing laws and regulations, ensuring that all offenders, regardless of their political or economic status, face consequences.
- **Advanced Technologies**: Implementing advanced water treatment technologies could help mitigate the impact of pollution. These include adsorption, ion exchanges, electrokinetic processes, chemical precipitation, phytobial remediation, and membrane technology[3].
- **Community Engagement**: Involving local communities in conservation efforts and providing alternative livelihoods could reduce dependence on illegal mining.
- **Education and Awareness**: Comprehensive public education campaigns about the dangers of water pollution and the importance of conservation could help change behaviors.
- **International Cooperation**: Collaborating with neighboring countries and international organizations could provide additional resources and expertise in combating illegal mining and water pollution.
- **Investment in Water Infrastructure**: Significant investment in water treatment and distribution infrastructure is needed to ensure clean water access for all Ghanaians.
- **Sustainable Mining Practices**: Promoting and enforcing sustainable mining practices in both large-scale and small-scale operations could significantly reduce environmental impact.
Hamburg Sustainability Conference spotlights youth entrepreneurship in Africa, African Development Bank Group support for continent’s youth-led small and medium enterprises
The session was followed by a round table to stimulate networking between development institutions and African innovators
HAMBURG, Germany, October 14, 2024/APO Group/ —
African youth entrepreneurs supported the by African Development Bank Group (www.AfDB.org) took center stage at the Hamburg Sustainability Conference on Monday.
During a session, titled “Empowering Young Entrepreneurs in Africa,” executives of the African Development Bank and its partner the African Guarantee Fund (http://apo-opa.co/3Y78rMT), as well as young African business leaders showcased innovative approaches to bridging the financing gap for youth entrepreneurs.
The two-day Hamburg Sustainability Conference, which drew global leaders, development institutions and young business founders across the continent, featured high-level discussions on reshaping international financial systems and creating investment environments that promote achievement of the United Nations Sustainable Development Goals.
The session explored the impact of the Bank’s Affirmative Finance Action for Women in Africa (http://apo-opa.co/3Y3wpZI) initiative. Through AFAWA, the Bank has approved approximately $1.8 billion in lending for Africa’s women entrepreneurs; some $1 billion has already been disbursed to more than 18,000 women-led small and medium enterprises.
Melanie Keita, CEO and co-founder of Melanin Kapital (http://apo-opa.co/48alJNA), a Nairobi-based fintech company that provides digital loans, and a beneficiary of AFAWA, spoke about the need for more accessible financing options for Africa’s youth-led startups. She questioned whether there were plans to digitise the loan process: “Can people access loans from their living room instead of having to travel a lot of time and then go with a lot of paperwork and being denied loans sometimes?”
South Africa’s Minister in the Presidency Responsible for Planning, Monitoring, and Evaluation, Maropene Ramokgopa, told attendees that young African entrepreneurs are “drivers of change.” She urged governments to prioritise entrepreneurship policies and reduce bureaucratic barriers.
“From financial technology, agriculture, renewable energy and creative sector to digital health solutions, young African entrepreneurs are transforming their communities,” Ramokgopa added. “They are also creating jobs and reshaping the economies as well.”
Africa is facing a significant demographic shift: the continent is expected to be home to 1.4 billion people aged under 25 by the year 2063.
Ahmed Attout, Director for Financial Sector Development at the African Development Bank, introduced its Youth Entrepreneurship Investment Banks (YEIB) initiative, designed to de-risk investing in youth entrepreneurs while fostering talent and entrepreneurship across Africa.
“[The Youth Entrepreneurship Investment Banks initiative] is a one-stop shop that can give youth access to finance, employment guarantees, employment technical assistance,” Attout said, adding that the initiative is in the advanced implementation phase in Liberia and Ethiopia.
Jules Ngankam, CEO of the African Guarantee Fund, an implementing partner of AFAWA, announced significant progress in delivering solutions for entrepreneurs. He said the Fund has issued $3 billion in guarantees, enabling commercial banks to lend $5 billion to small and medium-sized enterprises.
The session was followed by a roundtable to stimulate networking between development institutions and African innovators. Joining Keita at the roundtable were two other beneficiaries of the Bank’s support: Chiemela Anosike, founder and CEO of Solaris GreenTech (http://apo-opa.co/48alKkC), and Ebun Feludu, CEO of Kokari Coconuts & Company (http://apo-opa.co/3A6ibiv), both Nigeria-based.
Chiemela Anosike said the struggle for start-up success is real. “Entrepreneurship is hard. Entrepreneurship in Africa is harder…so, it’s difficult. So, we have programs like this…but then you give us another full-time job because you’re into fundraising and then it’s taking six months. You’re developing just one proposal [for financing] and it’s taking one month plus,” Anosike told roundtable participants.
Bank Director for Human Capital, Youth and Skills Development Martha Phiri told the entrepreneurs that the Bank is integrating entrepreneurship skills into its vocational training programs, in recognition that not all graduates will find employment in existing job markets.
Tapera Muzira, the Bank’s Lead Expert for Human Capital, Youth and Skills Development said the Bank’s Innovation and Entrepreneurship Lab (http://apo-opa.co/3YqnotZ), an online platform that connects African entrepreneurs with resources, financing, and business development services, is closing the information gap that limits youth potential to contribute to economies and communities.
Earlier, Norway’s Minister of International Development, Anne Beathe Tvinnereim, noted that her country is committed to supporting African youth entrepreneurship. She referenced the USAID and Norway-led Financing for Agricultural Small-and-Medium Enterprises in Africa program, a multi-donor fund designed to spur investment in Africa’s agricultural growth.
“African youth constitute 60% of the population, which is why youth engagement and involvement is central in Norwegian foreign and development policies. Financing entrepreneurs is not enough. We need to build an entrepreneurial culture that supports solid institutional and regulatory frameworks,” Tvinnereim said.
The Hamburg Sustainability Conference is organized annually by the United Nations Development Program, the German Federal Ministry for Economic Cooperation and Development (BMZ), the Michael Otto Foundation for Sustainability (http://apo-opa.co/48alMJg) and the City of Hamburg.
We need to build an entrepreneurial culture that supports solid institutional and regulatory frameworks
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
Biden’s visit to Angola pre-analysis
WILL BIDEN’S PLANNED VISIT TO ANGOLA
CHECK CHINA’S GROWING INFLUENCE IN SOUTHERN AFRICA?
By Katutu Sayila
PRESIDENT JOE BIDEN is expected to visit Angola any time this month after a postponement to monitor Hurricane Milton which has hit Florida in the past few days. He will embark on this official tour of that Central African country before the forthcoming elections in the United States next month. The visit which had been scheduled for October 13 and 15 is historic because it will be the first time an American leader has made such a visit to a country in the Sub-Sahara region. But then it has aroused little or no interest among Southern African countries and is expected to have no political impact on the entire African continent. Some political analysts feel the visit has come rather too late and will achieve too little for the anticipated revival of US-Africa relations and also to check China’s growing political and economic influence in the region. The visit would have made some impact if Biden had made it shortly after becoming president of the United States of America in 2021 as he had promised during his campaign. Now that he has only a few months left before he leaves White House no-one wants to consider his trip to Angola of having any significance arguing that although his deputy Ms Kamla Harris as vice president, secretary of state Anthony Blinken and his predecessor Barak Obama have been to some African countries his visit made much earlier would have carried more political and diplomatic weight. Not only that some people feel Biden’s itinerary should have also included the Democratic Republic of Congo (DRC) and Zambia who are neighbors to Angola where China’s political influence due to its investment in mining and energy is quite huge. Even Hakainde Hichilema the president of Zambia who Biden hailed as a great democrat after winning the elections in 2021 and sidelined China in preference for Western countries support has since swallowed his pride and trekked back to China like his predecessor Edgar Lungu just for the sake of financial assistance for his economically struggling country. Southern Africa as a region has had little or no serious attention from top US officials for a long time in the history of America’s relations with countries in the region. For example, only former president George W. Bush has visited Zambia more than once after leaving office in 2009 and this had more to do with his personal interests in Barrick Gold a Canadian mining company extracting copper, uranium and other minerals in that country’s north-western province. Coming to the US president’s visit to Angola two things have emerged. To revive the US-Africa relations and to counter China’s growing influence in Southern Africa where it is involved in the mining and export of crucial minerals. But frankly speaking relations between America and African countries have thawed over a long period of time due to insufficient support and lack of attention in comparison with China’s presence, generosity and investment. China has maintained its presence in Africa for more than two decades and its president Xi Jinping has made more visits to Africa than any Western Bloc leader. And through his regular visits and the holding of the Forum on China and Africa Cooperation (FOCAC) he has been able to engage with African leaders, understand their problems and meet some of their financial needs. Therefore as Biden finally steps down on the Angolan soil towards the end of his one-term presidency he must realize that China’s relations with African countries is as strong as the huge investment and support it has rendered to them for the past twenty-four years. For example, trade between China and Africa is unsurpassed and has been growing at an average of 17.2 percent annually for the past 24 years. And for the past eight months trade volumes have reached 1.19 yuan (US$168 billion. During the last FOCAC summit meeting last moth China promised a further $50.8 billion support for African countries in the next three years. Commenting on Biden’s visit to Angola China’s new ambassador to Zambia Mr Han Jing said it will not change anything in his country’s relations with African countries. ‘’China cannot be unsettled with the single visit of the American president to Angola, it has warm and working relations with that African country,’’ he stated. He further said through FOCAC his country has been able to forge strong links with all African countries Trade, investment and credit have played an important role in China’s penetration of the African continent and also the cementing of its bilateral relations with individual African countries. China has since taken advantage of African countries power deficit as individual countries transition towards renewable energy sources. This has made it to expand its green products sector for the African market. China looks at Africa as its future potential global market for its green products as it tactfully circumvents the politically motivated prohibitive tariffs on the American and European markets. This is despite Africa only accounting for a fraction of the global renewable energy capacity where in 2020 stood at 19%. So far China has completed several solar, wind and hydro-power projects in several African countries and plans to do thirty more soon. A few years ago Western countries accused China of doing very little for the green energy sector but today they are complaining that it is doing just too much! China has decided not to listen to the Western countries political rhetoric instead it is going head on with its energy projects in African countries. And for African leaders the philosophy on Deng Xiaoping that it does not really matter what color the cat is (whether black or white) for as long as it catches mice means they will go with whoever meets their needs With China involvement in the mining and export of strategic minerals such as copper, cobalt, nickel, manganese, lithium and others needed in the manufacture of EV batteries and other advanced electronics so strong in the Southern Africa region it cannot be ignored and/or underrated. It will be difficult for American and its Western allies to uproot China’s political and economic influence on the African continent. Besides the visit to Angola by Biden may end up as just another business survey trip before he leaves office as he will not be in a position to pledge any reasonable support for Africa as he cannot predict the political and economic agenda of the next American administration. The only assurance he may give to his host Jao Lourenco is the Western countries commitment to the Lobito Corridor through a revitalized Benguela railway that connects the mineral-rich Katanga Province of the of Congo with Lobito port in Angola. However, the Lobito Corridor is still-born as Western Bloc countries have yet to make financial commitments to the mammoth project. Again it is Western countries aloofness and slowness to respond to African needs gives China the advantage over them. The only problem China may face with some African countries is for it to downstream some of its investments for the benefit of local people contrary to the colonial legacy which saw the ransacking of Africa’s wealth to build industries for the colonizing countries in Europe. Accepting credentials from the new Chinese ambassador Han secretary-general of the Common Market for Eastern and Southern Africa (COMESA) Ms Chileshe Kapwepwe urged China to add value to its energy projects in Africa and demanded that China should think of adding value to hydro-power, solar and also industrialization of the region. According to the COMESA chief China needs to focus on energy globalization in order to mitigate the effects of climate change for the region. Endowed with abundant natural resources-crucial minerals, all-year-round hot sun, running rivers, driving winds the Southern African region can become one of the major contributor of resources for renewable and sustainable market which China needs to exploit. Without doubt China has already seen the potential of the African energy market for its future political dominance more especially that projections have put the African continent on an income trajectory of $10 trillion by the year 2030. Having both the capital and know-how that country will not only supply equipment, install power plants but provide employment and solutions to the renewable energy sectors to African states. Katutu Sayila, Southern Africa Correspondent BIO The author is a freelance journalist and economic analyst in Southern Africa based in Lusaka, Zambia. His work features in several international publications such as Global Finance, World Finance, African Review, Globe& Mail etcExamining the house building sector in Nairobi
Nairobi’s house building sector is undergoing significant changes and facing numerous challenges as the city rapidly expands and urbanizes. This article will examine the key aspects of residential construction in Kenya’s capital, including current trends, major constraints, government initiatives, and future prospects.
Current State of Nairobi’s Housing Market
Nairobi is experiencing a severe housing shortage, with demand far outpacing supply. The city’s population has been growing at a rate of about 4% annually, creating an estimated annual housing demand of 150,000-200,000 units[1]. However, formal housing production has struggled to keep up, with only around 50,000 units being built each year[1].
This supply-demand mismatch has led to several issues:
**Housing Deficit**: There is an accumulated housing deficit of over 2 million units in Nairobi[1].
– **Informal Settlements**: About 60% of Nairobi’s population lives in informal settlements or slums due to lack of affordable formal housing[1].
– **High Prices**: Property prices and rents in the formal sector have risen dramatically, putting decent housing out of reach for many.
Key Constraints in the House Building Sector
Several factors are constraining formal housing production in Nairobi:
High Cost of Land
Land prices in Nairobi have skyrocketed in recent years, driven by speculation and limited supply of serviced land. This makes it challenging for developers to acquire land for affordable housing projects[1].
Expensive Construction
The cost of construction materials and labor in Nairobi is relatively high compared to income levels. Imported materials and limited local production capacity contribute to elevated costs[1].
Limited Access to Finance
Both developers and potential homebuyers face difficulties accessing affordable financing. High interest rates and stringent lending requirements restrict the flow of capital into the housing sector[1].
Regulatory Hurdles
Complex and time-consuming approval processes for construction permits and land use changes increase project timelines and costs. Outdated building codes and zoning regulations also hinder innovation in affordable housing design[1].
Infrastructure Gaps
Many areas lack adequate roads, water supply, sewerage, and electricity connections. Developers often must bear the cost of infrastructure provision, further driving up housing prices [2].
Current Trends in Nairobi’s House Building Sector
Despite the challenges, several trends are shaping the residential construction landscape in Nairobi:
Rise of Apartment Buildings
There has been a shift towards high-rise apartment buildings, especially in middle-income areas, to maximize land use and improve affordability. This trend is changing Nairobi’s skyline and urban form[2].
Green Building Practices
Some developers are incorporating sustainable design features and green building materials to reduce environmental impact and operating costs. However, adoption remains limited due to higher upfront costs[1].
Use of Alternative Building Technologies
Innovative construction methods like prefabricated components and interlocking bricks are gaining traction as ways to reduce costs and speed up construction[1].
Gated Communities
There is growing demand for gated housing estates that offer enhanced security and amenities, particularly among upper-middle-income and high-income segments[2].
Satellite Towns
New large-scale housing developments are emerging in satellite towns around Nairobi, such as Tatu City and Konza Technopolis, to ease pressure on the core city[2].
Government Initiatives and Policies
The Kenyan government has launched several initiatives to address the housing shortage and promote affordable housing:
Affordable Housing Program
Part of the government’s “Big Four Agenda,” this program aims to deliver 500,000 affordable housing units nationwide by 2022. It involves partnerships with private developers and provides incentives like tax breaks and infrastructure support[1].
Kenya Mortgage Refinance Company
Established in 2018, this state-backed company aims to provide long-term funding to mortgage lenders, enabling them to offer more affordable home loans[1].
Revised Building Code
The government is working on updating the national building code to incorporate modern construction technologies and promote cost-effective building practices[1].
Land Banking
Efforts are underway to identify and acquire land for future affordable housing projects, addressing the scarcity of well-located land[1].
Slum Upgrading Programs
Various initiatives seek to improve living conditions in informal settlements through infrastructure upgrades and incremental housing improvements[2].
Private Sector and Civil Society Efforts
Private developers and non-governmental organizations are also contributing to addressing Nairobi’s housing challenges:
Microfinance for Housing
Some institutions are offering microloans for incremental home improvements, helping low-income households gradually upgrade their dwellings[1].
Community-Led Housing
NGOs and community organizations are facilitating participatory design and construction processes, empowering residents to shape their living environments[1].
Rental Housing Investments
There’s growing interest from institutional investors in developing large-scale rental housing projects to cater to the city’s mobile workforce[2].
Innovation in Design and Materials
Some firms are experimenting with modular housing designs and locally-sourced alternative materials to reduce costs and improve sustainability[1].
Future Prospects and Challenges
Looking ahead, Nairobi’s house building sector faces both opportunities and obstacles:
Potential for Growth
With a large housing deficit and a growing middle class, there’s significant potential for expansion in the formal housing market. The government’s focus on affordable housing could catalyze increased construction activity[2].
Technological Advancements
Adoption of building information modeling (BIM), 3D printing, and other advanced technologies could improve efficiency and reduce costs in the construction process[1].
Climate Resilience
As climate change impacts become more pronounced, there will be a greater need to incorporate resilience measures into building design and urban planning[1].
Infrastructure Development
Ongoing investments in transport infrastructure, such as the Nairobi Expressway, could open up new areas for housing development and improve connectivity[2].
Demographic Shifts
Changing household structures and preferences, particularly among younger generations, may drive demand for different housing typologies and locations[2].
Persistent Affordability Challenges
Despite efforts to increase supply, housing affordability is likely to remain a significant challenge for many Nairobi residents in the near term[1].
Informal Sector Integration
Finding ways to formalize and upgrade informal settlements while preserving social networks and livelihoods will be crucial for inclusive urban development[2].
Conclusion
Nairobi’s house building sector is at a critical juncture, facing immense challenges but also opportunities for transformation. Addressing the housing shortage will require concerted efforts from government, private sector, and civil society to overcome constraints and innovate in design, financing, and construction practices.
Key priorities for the sector should include:
- Streamlining regulatory processes to reduce development costs and timelines.
- Expanding access to affordable housing finance for both developers and homebuyers.
- Promoting adoption of cost-effective and sustainable building technologies.
- Improving land management and increasing supply of serviced land.
- Strengthening partnerships between public and private sectors for large-scale housing delivery.
- Integrating housing development with broader urban planning and infrastructure provision.
Spotlight on Ghana’s infrastructure development programme
Ghana’s infrastructure and construction sector is undergoing significant transformation, driven by ambitious government initiatives, private sector participation, and a vision to position the country as a regional transport and economic hub.
Despite facing some economic headwinds, Ghana continues to make strides in developing its road networks, railways, ports, and energy infrastructure.
Road Infrastructure
Ghana has made substantial progress in expanding and improving its road network in recent years. The government has increased the country’s road network from 78,000 km to nearly 100,000 km
This expansion includes the construction of over 2,000 km of asphaltic overlay and the rehabilitation and maintenance of about 11,674 km of roads
Several major road projects have been completed or are underway: Interchanges: The government has completed the Tamale Interchange, Pokuase Interchange, and Tema Motorway Interchange. Additional interchanges, including the Obetsebi and Flower Pot interchanges, are currently under construction
Motorway Expansion: The Accra-Tema motorway expansion project is a key initiative linking Ghana’s major cities and regions.
This project aims to improve connectivity and reduce travel times between the capital and the industrial hub of Tema. Eastern Corridor Road: This project is part of the government’s efforts.
To further boost road infrastructure development, the government has launched the District Road Improvement Programme (DRIP-2024). This initiative aims to empower Metropolitan, Municipal, and District Assemblies (MMDAs) with the tools and resources needed to enhance road networks across the country
DRIP-2024 is expected to create approximately 4,480 direct jobs and provide extensive training in mechanical engineering, hydraulic systems, and electronic systems diagnosis
Railway Development
Ghana is making significant investments in modernizing and expanding its railway network. The country’s master plan for railway modernization includes several major projects: Western Railway Line: In August 2022, the South African-based Thelo DB consortium signed a $3.2 billion agreement with the government to develop and operate the Western Railway line
This project aims to facilitate efficient freight haulage and improve connectivity. Eastern Railway Line: This $2.2 billion build-operate-transfer project involves transforming the existing 1067-mm gauge rail corridor into a double-track electrified standard gauge rail line
The concession will last 30 years, including three years for construction and 27 years for operation. Tema-Mpakadan Railway: The government has completed the iconic Tema-Mpakadan railway, which is expected to boost trade and regional connectivity
Other Railway Projects: The government has also initiated or overseen the construction/rehabilitation of the Achimota-Nsawam, Accra-Tema, Kojokrom-Tarkwa, and Kojokrom-Manso railway lines
The Ghana Railway Development Authority oversees these developments, with plans to build a total of 3800 km of track between 2020 and 2035
Aviation Infrastructure
Ghana is investing heavily in its aviation infrastructure to position itself as a regional air transport hub:Airport Upgrades: The government has completed and commissioned the Prempeh International Airport and the Yakubu Tali International Airport in Tamale
Additionally, Phase 1 of the Sunyani Airport rehabilitation has been completed
These improvements in aviation infrastructure are expected to boost tourism, trade, and Ghana’s position as a regional transport hub.
Maritime and Port Infrastructure
To enhance its maritime connectivity and boost trade, Ghana is developing its port infrastructure through various projects:Keta Port Project: This project aims to provide a bulk, containerized, and oil- and gas-capable commercial cargo port. It will be developed in four phases, with an estimated cost of $600 million for the first phase
Expansion of Existing Ports: The government is working on expanding the Port of Tema and the Port of Takoradi
Inland Ports: Development of the proposed Boankra Inland Port and a port at Mpakadan is underway
Fishing Harbors: The government has constructed two major fishing harbors in Elmina and James Town in Accra
These port developments are crucial for Ghana’s ambitions to establish itself as the gateway to West Africa and a hub for trade.
Energy Infrastructure
To meet rising electricity demand and diversify its energy sources, Ghana is developing its energy infrastructure: Renewable Energy: The country has added 134.1 MW of renewable energy to its energy mix, increasing from 37.7 MW in 2016 to 171.8 MW
Ayitepa Wind Farm: This 225-MW onshore wind energy project in Greater Accra is currently in its procedural stage. Upon completion, it is expected to produce 700,000 MWh of electricity, power 150,000 households with clean energy, and offset 250,000 tonnes of CO2 emissions per year
Other Infrastructure Developments
Ghana’s infrastructure development extends beyond transport and energy sectors: Healthcare Facilities: The government has completed six abandoned “Euroget” health sector projects and three other stalled projects, including regional and district hospitals
Sea Defense Projects: Construction of sea defence projects to protect communities in Komenda, Ningo Prampram, Axim, Elmina Anomabo, and Keta
Agricultural Infrastructure: The government has constructed 80,000-metric-ton warehouses under the One District One Warehouse Initiative and about 400 out of the 560 small earth dams in the 5 northern regions
Sanitation Facilities: More than 800 sanitation facilities have been constructed, increasing the proportion of the population with access to toilet facilities from 33% in 2016 to 80.8%
Sports Facilities: The University of Ghana Stadium in Legon has been completed, and multi-sports facilities have been built at Borteyman for the African Games
Rural Connectivity: The rural telephony network has been extended, increasing from 78 sites in 2016 to 1008 sites
Challenges and Outlook
Despite these significant developments, Ghana’s construction sector faces some challenges. The sector witnessed a year-on-year contraction of 11.7% in the second quarter of 2023
High costs of building materials, inadequate funds, and the need for a skilled workforce are some of the headwinds facing the sector.
However, the outlook remains positive. The construction sector is forecast to bounce back to pre-crisis levels by the end of 2026
. Average annual growth for the sector is forecast at over 5% between 2024 and 2027, aided by public sector investment in transport infrastructure to enhance regional connectivity
.The government’s recognition of infrastructure development as a crucial driver of economic growth is evident in initiatives such as the Ghana Infrastructure Plan 2018-47. This plan aims to improve transport networks, expand housing options, and enhance public facilities nationwide
Financing and Investment
Ghana is leveraging various financing mechanisms to fund its infrastructure projects: Public-Private Partnerships (PPPs): The enactment of the PPP Act in 2020 has created a framework for private sector participation in infrastructure development
Ghana Infrastructure Investment Fund (GIIF): This permanent investment vehicle, established in 2015 with an initial equity of $345 million, encourages private sector investment in infrastructure projects
Foreign Direct Investment (FDI): The government is actively seeking FDI, particularly in the mining, oil, and gas sectors, to support infrastructure development
What are the key challenges facing Ghana’s infrastructure development currently
Based on the search results, some of the key challenges facing Ghana’s infrastructure development currently include:
- Fiscal constraints and economic headwinds: The construction sector is expected to contract by 3.0% in 2024 due to ongoing fiscal constraints and government spending cuts
- High costs of building materials: The sector faces headwinds from the high costs of construction materials
Control Risks and Oxford Economics Africa launch the 2024 Africa Risk-Reward Index: Opportunity through transformation
|
The report is released at a time when Africa is experiencing a significant generational shift in politics, increased continental connectivity, and the rapid emergence of transformative technologies |
|
LONDON, United Kingdom, September 25, 2024/ — Leading global specialist risk consultancy, Control Risks (www.ControlRisks.com), and its economics consulting partner, Oxford Economics Africa (www.OxfordEconomics.com), today announced the launch of the ninth edition of the Africa Risk-Reward Index. This authoritative report is designed to provide policymakers, business leaders, and investors with a comprehensive guide to navigating the evolving investment landscape across key African markets.
Download document: https://apo-opa.co/ Distributed by APO Group on behalf of Control Risks Group Holdings Ltd.
Issued on behalf of Control Risks and Oxford Economics Africa.
About Control Risks:
Control Risks is a specialist risk consultancy that helps create secure, compliant, and resilient organisations. We believe that taking risks is essential to success, so we provide the insight and intelligence you need to realise opportunities and grow. From the boardroom to the remotest location, we cut through noise and emotion to give you dependable advice when you need it most. We have been assisting clients in Africa for nearly fifty years and today we have eight offices across five countries on the continent, alongside an unrivalled network of embedded consultants and on-the-ground network. We work with the largest investors into Africa and the largest African companies, from mining and energy to media and telecommunications.
About Oxford Economics Africa:
Oxford Economics Africa, based in South Africa, has specialised in macroeconomic research in Africa since 2003. Insights are provided within the context of comprehensive knowledge of the African continent, its history, and each country’s unique political and economic setting. In 2015 we became part of the Oxford Economics group, to better combine Oxford Economics’ global base and unparalleled technical expertise in modelling with our Africa-specific skills and insight.
Oxford Economics is a leader in global forecasting and quantitative analysis. Our worldwide client base comprises more than 1,500 international corporations, financial institutions, government organisations, and universities. Headquartered in Oxford, with offices around the world, Oxford Economics employs 450 people, including 300 economists and analysts. The group’s best-of-class global economic and industry models and analytical tools give us an unmatched ability to forecast external market trends and assess their economic, social, and business impact.
About Control Risks and Oxford Economics:
Control Risks and Oxford Economics have partnered to provide an innovative political and economic risk forecasting service that takes a holistic view of risk in a complex, rapidly changing, globalised world. Control Risks and Oxford Economics combine extensive geopolitical, operational and security expertise with rigorous economic forecasts and models on 200 countries and 100 industries. Together, we offer full-spectrum consulting that enables your organisation to navigate the world of political and economic risk. Covering all aspects of the investment journey, including security and integrity risk, our joint consultancy practice can overlay geopolitical and economic scenarios to bring new insights and direction to your business.
|
Welcoming Greenwashing Claims to South African Shores
Introduction
There has been a significant increase in global climate-washing and green-washing cases against companies in the past few years. Given this, it was to be suspected that South African dispute resolution bodies and regulators would soon be tasked with considering challenges of this nature.
Climate-washing or green-washing can be defined as inaccurate, misleading, or misrepresented narratives (in public statements, document or advertisements) regarding the environmental benefit, ‘friendliness’ or sustainability of products, services or business operations. These inaccurate, misleading or misrepresented narratives can manifest in various ways such as:
Amelia Costa and Celeste Du toit –Clyde & Co LLP –
- Claims by companies to reduce greenhouse gas emissions without a credible transition plan in place;
- Vague or non-specific statements about operations, materials and the environmental benefit or impact thereof;
- The use of misleading labels for products or services such as “green”, “eco-friendly” or “nature-friendly”; and
- Emphasising one environmental attribute while ignoring other impacts that a product or service may have.
- The ARB does not have jurisdiction over TotalEnergies as it is not a member, and does not submit to the jurisdiction;
- The content challenged was a corporate communication and not an advertisement that promoted a product or service, and therefore it should not be subject to review by the ARB; and
- The content is not false or misleading, given that the commitment to sustainable development and environmental protection is grounded in the company’s strategy and policies, and the company’s approach to sustainable development and climate change.
- Insofar as jurisdiction is concerned, the ARB accepted that TotalEnergies was not a member, but stated that in terms of clause 3.3 of the Memorandum of Incorporation of the ARB, it could issue a binding ruling on its members (including broadcasters and media) to refuse advertisements or withdraw same from publication;
- In respect of the nature of the content, and with specific regard to the definition of “Advertising” in the Code, the ARB ruled that the content was a form of communication in promotion of products and TotalEnergies’ business, and therefore did constitute “Advertising”;
- Turning to the merits of the complaint, the ARB considered the purpose of the challenged content, namely to communicate the continued partnership between TotalEnergies and SANParks. Against this consideration, the ARB established that the key question to be answered in the ruling was whether TotalEnergies’ partnership with SANParks is indicative of a commitment to “sustainable development” and “environmental protection” respectively.
- In dealing with the commitment to “environmental protection” the ARB made reference to the longstanding partnership between TotalEnergies and SANParks and the positive work done in safeguarding and promoting South Africa’s natural heritage. For this reason, the ARB held that this portion of the content was not in breach of the Code.
- In ruling on the commitment to “sustainable development”, the ARB accepted that TotalEnergies is engaged in certain projects that were directed at sustainable development, however, it was ruled that the core of the business is directly opposed to sustainable development given its “ongoing exploitation of fossil fuel”, and that there was no evidence of a link between its support of SANParks and sustainable development. For these reasons, this portion of the content was found to be in breach of the Code.
- Misalignment between what they say they will do and what they do; and
- Misleading narratives and misrepresentations linked to climate change and environmental benefits of products and services.
Amelia Costa and Celeste Du toit –Clyde & Co LLP –
Dangote calls on African business leaders to drive continent’s transformation
|
The Dangote Group has expanded from Nigeria to 14 countries across the continent, spanning multiple sectors from cement to fertilizers, sugar to oil refineries, petrochemicals, agriculture and more |
|
LAGOS, Nigeria, September 13, 2024/ — The President and Chief Executive of the Pan-African conglomerate, Dangote Group (www.Dangote.com), Aliko Dangote, has called on African business leaders to take the lead in transforming the continent.
Speaking at the just concluded African Renaissance Retreat held in Kigali, Rwanda, Dangote pointed out that despite significant challenges besetting Africa, its youthful population and abundant resources, including about 30% of the world’s mineral reserves and the largest reserves of gold, cobalt, uranium, platinum, and diamonds, offer opportunities for substantial and inclusive growth.
“Additionally, we have 65% of the world’s arable land and 10% of the planet’s internal renewable freshwater sources. Together these present a myriad of opportunities for robust, inclusive growth that harness our abundant human potential and natural resources to increase prosperity, not just in Africa but across the globe,” he said. Dangote added that Africa is at a crucial inflection point, with the world’s youngest and fastest-growing population, rapidly expanding cities, and a growing embrace of innovation and new technologies, including Artificial Intelligence.
Dangote noted that despite dealing with multiple barriers such as visas, inconsistent change in government policies, inadequate technical talent, lack of critical infrastructure, foreign exchange crises, inflation, cost of capital and other conflicts of differing dimensions, the Dangote Group has expanded from Nigeria to 14 countries across the continent, spanning multiple sectors from cement to fertilizers, sugar to oil refineries, petrochemicals, agriculture and more. “The good news is that despite these challenges, we have succeeded in building a pan-African Group that employs over 50,000 people and generates revenues that should exceed $30bn by the end of 2025,” he said.
Dangote who initiated the retreat noted that he had long contemplated bringing together a group of dedicated African business leaders to address the continent’s challenges, identify concrete solutions, and showcase Africa as a viable investment destination despite its obstacles. He emphasized that the objective of the retreat was to offer an opportunity for collective action in tackling various issues, including persistent conflicts, energy and food security, supply chain disruptions, the debt crisis, and access to long-term concessional funding for development.
“This small private and high-level gathering to discuss these issues and align on how we will own and shape our narrative for development is long overdue. With the foremost entrepreneurs on the continent, the leaders of the largest pan-African companies, those at the helm of the most important development institutions in Africa, our brothers and sisters leading global institutions, our leading investors, our pre-eminent civil society activists and a few of our most respected political leaders, this first step will be an opportunity to have a frank and honest dialogue amongst ourselves to consolidate what we see as our common ground” said Dangote. He added “we are coming together not just as leaders in our respective institutions but as visionaries and catalysts for transforming our societies. It is our collective responsibility to play our role in transforming our continent. Nobody will do it for us but us – especially us in this room”.
While expressing his hope that the retreat would produce initiatives capable of significantly shaping Africa’s future and benefiting its people, Dangote acknowledged the contributions of President Paul Kagame of Rwanda, former President Olusegun Obasanjo, former President Ellen Johnson Sirleaf, and former Prime Minister Hailemariam Dessalegn. However, he cautioned that it is crucial for the leaders present to move beyond dialogue to decisive implementation and tangible impact.
The Retreat participants resolved to urge African private sector and political leaders to engage in regular high-level dialogue. Additional proposals included supporting the ratification of the free movement of people protocol, launching the African Renaissance Companies Gender Compact, and convening top global business leaders of African descent. The leaders also aimed to champion an initiative aimed at significantly reducing logistics costs across the continent and one focused on ensuring internet access for a broader segment of Africa’s population.
Participants at the retreat , which took place from September 6 to 8, included Amina J. Mohammed, Deputy Secretary-General of the United Nations; Prof. Benedict Oramah, President and Chairman of the Board of Directors of the African Export-Import Bank; former Liberian President Ellen Johnson Sirleaf; Adebayo Ogunlesi, Chairperson of Global Infrastructure Partners; former Ethiopian Prime Minister Hailemariam Dessalegn, Samaila Zubairu of the African Finance Corporation, Makhtar Diop of IFC, and Jeremy Awori, CEO of Ecobank Transnational Incorporated.
Others were Bernie Mensah of Bank of America; Dr. James Mwangi of Equity Group Holdings; Alain Ebobisse of Africa50; Aigboje Aig-Imoukhuede of Access Holdings; Genevieve Sangudi of Alterra Capital Partners; Jim Ovia of Zenith Bank; Tony Elumelu of Heirs Holdings; Naguib Sawiris of Orascom Telecom Holding; Dr. Vera Songwe; Jonathan Oppenheimer of Oppenheimer partners; Dr. James Manyika of Google; Clare Akamanzi of NBA Africa; Fred Swaniker of Africa Leadership Group; Professor Hakeem Belo-Osagie of Harvard Business School; Myma Belo-Osagie of Harvard Africa Studies Centre; Patrice Motsepe of African Rainbow Minerals; Mohammed Dewji of METL; Moussa Faki Mahamat of Africa Union; Graca Machel of the Graca Machel Trust; Wamkele Mene of African Continental Free Trade Area Secretariat; Tope Lawani of Helios Partners; Masai Ujiri of the Toronto Raptors; Mimi Alemayehou of Three Cairns Group; Dr. Donald Kaberuka of Southbridge Group; Precious Moloi-Motsepe of Africa Fashion International; Richelieu Dennis of Sundial Group of Companies; Louise Mushikiwabo, Secretary General of Organisation Internationale de la Francophonie; Hassanein Hiridjee of Axian Group; Kate Fotso of Telcar Cocoa; Nkosana Moyo of Mandela Institute for Development Studies; Nku Nyembezi of Standard Bank Group.
Distributed by APO Group on behalf of Dangote Group.
SOURCE Dangote Group |