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	<title>Inter Press ServiceZipporah Musau - Author - Inter Press Service</title>
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		<title>Africa’s Critical Minerals Poised to Power Global Green Energy Transition</title>
		<link>https://www.ipsnews.net/2025/12/africas-critical-minerals-poised-to-power-global-green-energy-transition/</link>
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		<pubDate>Mon, 01 Dec 2025 06:42:32 +0000</pubDate>
		<dc:creator>Zipporah Musau</dc:creator>
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		<description><![CDATA[Although Africa holds more than 30 per cent of the world’s critical green minerals—including cobalt, lithium, manganese, and rare earth elements vital for building batteries, wind turbines and solar panels— this has not translated into prosperity for the continent. At the Africa Climate Summit 2025 held in Addis Ababa in September 2025, leaders and experts [&#8230;]]]></description>
		
			<content:encoded><![CDATA[<p><font color="#999999"><img width="300" height="138" src="https://www.ipsnews.net/Library/2025/12/Open-pit-mine-Archives_-300x138.jpg" class="attachment-medium size-medium wp-post-image" alt="" decoding="async" srcset="https://www.ipsnews.net/Library/2025/12/Open-pit-mine-Archives_-300x138.jpg 300w, https://www.ipsnews.net/Library/2025/12/Open-pit-mine-Archives_.jpg 624w" sizes="(max-width: 300px) 100vw, 300px" /><p class="wp-caption-text">Open-pit mine Archives. Credit: Africa Renewal, United Nations</p></font></p><p>By Zipporah Musau<br />UNITED NATIONS, Dec 1 2025 (IPS) </p><p>Although Africa holds more than 30 per cent of the world’s critical green minerals—including cobalt, lithium, manganese, and rare earth elements vital for building batteries, wind turbines and solar panels— this has not translated into prosperity for the continent.<br />
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<p>At the Africa Climate Summit 2025 held in Addis Ababa in September 2025, leaders and experts explored ways Africa can benefit more from its resources. </p>
<p>Under the theme <em>“Accelerating renewable energy, nature-based solutions, e-mobility, and scaling up climate finance,”</em> the Summit sought ways to build a resilient and prosperous future for Africa. The important question, however, was whether Africa would continue exporting its raw materials for others to reap the profit or seize this moment and drive the agenda of its transformation.</p>
<p>Speaking at the Summit, the Executive Secretary of the UN Economic Commission for Africa (ECA), Claver Gatete, called for a united African front in order to leverage these resources strategically.</p>
<p>“We cannot afford to repeat the exploitative patterns of the past,” he said. “Africa must industrialise using its own resources, creating jobs and sustainable growth of our people.”</p>
<p>The current net-zero clean energy race has triggered surging global demand for minerals used in batteries, solar panels and wind turbines, of which Africa is a key supplier. </p>
<p>Mr. Gatete emphasised the need for African governments to invest in local processing, value addition, and stronger regional cooperation, and avoid exporting raw minerals.</p>
<p><strong>Risks and opportunities</strong></p>
<p>The Summit highlighted both opportunities and risks. On one hand, critical minerals could generate billions in revenue, accelerate clean industrialisation and help Africa achieve the SDGs. </p>
<p>On the other hand, unchecked extraction will not benefit Africans and would worsen inequality and environmental degradation.</p>
<p>Mr. Gatete called for building continental capacity to process, refine, and manufacture components like batteries within Africa. He cited the ECA—Afreximbank Battery and Electric Vehicle (BEV) value chain initiative, launched in the DRC and Zambia, to build special economic zones (SEZ) for producing electric vehicle battery precursor and components as a concrete example of this shift “from resource extraction to technological innovation and prioritisation of local value addition.”</p>
<p>To expand this further, participants emphasised the importance of the African Continental Free Trade Area (AfCFTA) to develop integrated regional value chains, reduce external dependence, and unlock economies of scale. In the same breath, they called for continental unity to avoid fragmented national policies that could weaken Africa’s bargaining power.</p>
<p>To address this, ECA proposed the formation of African Critical Minerals Alliance—to harmonise regulations, negotiate better trade deals and promote intra-African collaborations. </p>
<p>“Unity is our strength,” Mr. Gatete reminded participants. “By working together, African countries can ensure that green minerals become a foundation for prosperity, not another lost opportunity.”</p>
<p>Africa’s financing gap for climate action was also discussed at the Summit, with leaders renewing their calls for increased international climate finance, debt relief and technology transfer. They also underscore the importance of the private sector investment aimed at strengthening regional value chains, building local processing capacity and expanding critical infrastructure.</p>
<p>The Africa Climate Summit 2025 ended with the adoption of the Addis Ababa Declaration, a renewed commitment to place sustainability, equity, and local development at the heart of mineral exploitation. The message was clear—Africa holds the key to the global green transition. The challenge now is how to turn that potential into lasting, inclusive prosperity for its people.</p>
<p><em><strong>Source:</strong> Africa Renewal, United Nations</em></p>
<p>IPS UN Bureau</p>
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		<title>Pushing For a Green Economy &#038; Clean Energy</title>
		<link>https://www.ipsnews.net/2019/08/pushing-green-economy-clean-energy/</link>
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		<pubDate>Tue, 27 Aug 2019 16:40:14 +0000</pubDate>
		<dc:creator>Zipporah Musau</dc:creator>
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		<description><![CDATA[<em>Africa Renewal*</em>]]></description>
		
			<content:encoded><![CDATA[<p><font color="#999999"><img width="300" height="149" src="https://www.ipsnews.net/Library/2019/08/Joyce-Msuya_-300x149.jpg" class="attachment-medium size-medium wp-post-image" alt="" decoding="async" loading="lazy" srcset="https://www.ipsnews.net/Library/2019/08/Joyce-Msuya_-300x149.jpg 300w, https://www.ipsnews.net/Library/2019/08/Joyce-Msuya_.jpg 628w" sizes="auto, (max-width: 300px) 100vw, 300px" /><p class="wp-caption-text">Joyce Msuya, United Nations Environment Programme’s Deputy Executive Director</p></font></p><p>By Zipporah Musau<br />UNITED NATIONS, Aug 27 2019 (IPS) </p><p>Africa is grappling with myriad environmental and climate challenges, from drought to loss of biodiversity, cyclones and plastics pollution.<br />
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<p><em>Africa Renewal</em> spoke with the UN Environment Programme’s Deputy Executive Director, Joyce Msuya, on how African countries can mitigate some of these challenges and the opportunities that are available.</p>
<p><em><strong>Excerpts from the interview:</strong></em></p>
<p><strong>MUSAU: It is about a year since you were appointed Deputy Executive Director of UNEP, and for a while you acted as the Executive Director. What has this journey been like for you?</strong></p>
<p><strong>MSUYA:</strong> I joined UNEP in August 2018 and it has been a fulfilling journey for me. Given the absolute centrality of environment in development, in attaining Sustainable Development Goals (SDGs), it’s been great to see how the UN has played a leading role in many ways. </p>
<p>For example, we recently released the Global Environment Outlook 6, showing that we are increasingly connecting the environment to the broader development issues.</p>
<p><strong>MUSAU: What are some of the highlights of your time at UNEP?</strong></p>
<p><strong>MSUYA:</strong> A key highlight has definitely been the Fourth UN Environment Assembly in March 2019, which focused on the innovations that can help us achieve sustainable production and consumption. </p>
<p>After five days of discussions, ministers from more than 170 UN member states delivered a bold blueprint for change, saying the world needed to speed up moves towards a new model of development in order to respect the vision laid out in the 2030 Agenda for Sustainable Development.</p>
<p>Member States agreed to 23 non-binding resolutions covering a range of environmental challenges, including a more circular global economy; sustainable public procurement; addressing food waste and sharing best practices on energy-efficient and safe cold chain solutions. </p>
<p>If countries deliver on all that was agreed here and implement the resolutions, we could take a big step towards a new world order where we no longer grow at the expense of nature but instead see people and planet thrive together.</p>
<p>I have a strong team behind me—the staff at UNEP and the rest of the UN family. As a woman from East Africa, it is a very humbling experience to serve in the organisation, and be based at UNEP headquarters in Nairobi, to work on environmental issues.</p>
<p><div id="attachment_163005" style="width: 144px" class="wp-caption alignleft"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-163005" src="https://www.ipsnews.net/Library/2019/08/Zipporah-Musau_.jpg" alt="" width="134" height="134" class="size-full wp-image-163005" srcset="https://www.ipsnews.net/Library/2019/08/Zipporah-Musau_.jpg 134w, https://www.ipsnews.net/Library/2019/08/Zipporah-Musau_-100x100.jpg 100w" sizes="auto, (max-width: 134px) 100vw, 134px" /><p id="caption-attachment-163005" class="wp-caption-text">Zipporah Musau</p></div><strong>MUSAU: What are some of the major environmental challenges facing Africa today and how can they be addressed?</strong></p>
<p><strong>MSUYA:</strong> I would summarize the biggest environmental challenges facing Africa today in four categories. One is the impact of climate change, considering that most African economies still depend on the agriculture sector. </p>
<p>The second is loss of biodiversity because this impacts food security and natural ecosystems. The third is energy, as many African economies are growing fast and require sufficient energy. </p>
<p>Lastly, looking at the demographic trends, there is a lot of growth in urban areas with populations moving to cities. This brings challenges, including that of waste management.</p>
<p><strong>MUSAU: Are there any opportunities?</strong></p>
<p><strong>MSUYA:</strong> There are exciting opportunities. After the Paris Agreement, there was a global commitment and political will to address climate change. We are currently working with African countries to help them develop national plans in mitigation and adaptation. </p>
<p>On nature, next year there will be a big global meeting in China on the Convention on Biological Diversity, offering African member states the opportunity to shape the global biodiversity agenda by sharing strategies that are working well and can be replicated elsewhere. </p>
<p>Africa is endowed with many hours of unobstructed sunlight; how can we promote more usage of solar energy and other renewables to fuel Africa’s economies?</p>
<div id="attachment_163006" style="width: 638px" class="wp-caption alignleft"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-163006" src="https://www.ipsnews.net/Library/2019/08/farmer_unep_.jpg" alt="" width="628" height="222" class="size-full wp-image-163006" srcset="https://www.ipsnews.net/Library/2019/08/farmer_unep_.jpg 628w, https://www.ipsnews.net/Library/2019/08/farmer_unep_-300x106.jpg 300w" sizes="auto, (max-width: 628px) 100vw, 628px" /><p id="caption-attachment-163006" class="wp-caption-text">Credit: UNEP</p></div>
<p><strong>MUSAU: UNEP has been pushing for a green economy by promoting low carbon, resource efficient and socially inclusive policies. How can African countries tap into this?</strong></p>
<p><strong>MSUYA:</strong> Push for cleaner sources of energy. We are already seeing several developments in this. If you follow what is happening in South Africa, trying to move its heavy manufacturing industrial sector from being dependent on coal to cleaner energy…it is a slow process. Transition from bad sources of energy to renewables takes time. </p>
<p>Then we have banning deforestation and making green economy plans. Countries like Ethiopia, Ghana and South Africa are moving in this direction. It needs ministers of environment to work very closely with ministers of finance to develop these plans. UNEP is using its convening role to help member states do this.</p>
<p>UN Environment supports and showcases science-informed policies that have the potential to transform humanity’s relationship with our environment.</p>
<p><strong>MUSAU: What are some of the ways African countries can deal with the plastic menace?</strong></p>
<p><strong>MSUYA:</strong> Governments, citizens, the private sector and civil society all have a role to play when it comes to plastics. There are four ways that African governments and citizens can help with the menace. </p>
<p>First is leadership and political will to actually put in place regulations to ban single-use plastics and promote reuse of smart plastics. The second is for the citizens to make smart choices, children telling their parents ‘mama, papa, please don’t buy plastics’. Consumer choices can influence the environmental footprint of plastics. </p>
<p>Third, we need to celebrate and advance homegrown advocacy such as the “Flip Flopi,” an indigenous innovation from Kenya where a boat has been made entirely out of plastics found on beaches. It recently sailed from Lamu to Zanzibar to raise awareness.</p>
<p>Lastly, partnerships with the private sector. If you look at good examples of where single-use plastics have been banned, there have been engagements between governments and the private sector to encourage them to find alternative and more sustainable ways to replace plastics bags.</p>
<p>Part of UNEP’s role is to promote the sharing of these experiences. A number of countries in Africa, including my own, Tanzania, and also Kenya, are looking at how they can preserve the national parks to sustain the tourism industry and people’s livelihoods. </p>
<p>And finally, we need to see how we can address the plastic menace by introducing more circularity into economies. This is where capacity-building support for governments will be critical.</p>
<p><strong>MUSAU: How is UNEP helping member states in Africa to achieve SDGs and the 2030 Sustainable Development Agenda? In particular, how is UNEP coordinating with pan-African organisations such as the African Union to address the effects of climate change?</strong></p>
<p><strong>MSUYA:</strong> UN Environment supports and showcases science-informed policies that have the potential to transform humanity’s relationship with our environment. We also host global platforms – from the UN Environment Assembly to international financial networks to multilateral environmental agreements – that catalyze action. </p>
<p>And we advocate, working with citizens across the world, to inspire change. However, we cannot do it alone because the scale of the challenge is huge but there are enormous opportunities to make a difference and so partnerships are critical. For political advocacy we are engaging with the African Union through our office in Addis Ababa. </p>
<p>We provide policy advice, technical assistance and capacity building. We are working with NEPAD and talking to the East African Community to see how we can support the sub-regional and regional initiatives. I was in Cape Town, South Africa, earlier this year, with other regional bodies, to learn how countries develop green economic plans.</p>
<p><strong>MUSAU: How is UNEP engaging women and youth?</strong></p>
<p><strong>MSUYA:</strong> We are engaging them at various levels as part of the intergovernmental process. Women and youth are a core part of implementing our programs. At the UNEA 4, we heard from many youth activists on why they are becoming impatient and demanded for action from us.</p>
<p><strong>MUSAU: What is your message to African countries on environment?</strong></p>
<p><strong>MSUYA:</strong> Africa has a significant role to play when it comes to the environment. All these global challenges have an impact on the continent, hence the need to hear African voices at all levels in global forums. Also, incorporating and mainstreaming environment in all the activities at the country level is key as is translating these into actions. </p>
<p>Partnerships are crucial: Africa is diverse, but we can build on that diversity to bring collective action. Our challenges cannot be solved individually. It takes a village to raise a child in Africa; it is going to take a village to solve our environmental problems.</p>
		<p>Excerpt: </p><em>Africa Renewal*</em>]]></content:encoded>
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		<title>Africa Grapples With Huge Disparities in Education</title>
		<link>https://www.ipsnews.net/2018/04/africa-grapples-huge-disparities-education/</link>
		<comments>https://www.ipsnews.net/2018/04/africa-grapples-huge-disparities-education/#respond</comments>
		<pubDate>Tue, 17 Apr 2018 12:50:46 +0000</pubDate>
		<dc:creator>Zipporah Musau</dc:creator>
				<category><![CDATA[Africa]]></category>
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		<guid isPermaLink="false">http://www.ipsnews.net/?p=155309</guid>
		<description><![CDATA[<em>Africa Renewal*</em>]]></description>
		
			<content:encoded><![CDATA[<p><font color="#999999"><img width="300" height="200" src="https://www.ipsnews.net/Library/2018/04/Students-learn_-300x200.jpg" class="attachment-medium size-medium wp-post-image" alt="" decoding="async" loading="lazy" srcset="https://www.ipsnews.net/Library/2018/04/Students-learn_-300x200.jpg 300w, https://www.ipsnews.net/Library/2018/04/Students-learn_.jpg 532w" sizes="auto, (max-width: 300px) 100vw, 300px" /><p class="wp-caption-text">Students learn with tablets in a school in South Africa. Credit: AMO/Jackie Clausen</p></font></p><p>By Zipporah Musau<br />UNITED NATIONS, Apr 17 2018 (IPS) </p><p>At the dawn of independence, incoming African leaders were quick to prioritize education on their development agendas. Attaining universal primary education, they maintained, would help post-independence Africa lift itself out of abject poverty.<br />
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<p>As governments began to build schools and post teachers even to the farthest corners of the continent, with help from religious organizations and other partners, children began to fill the classrooms and basic education was under way.</p>
<p>Africa’s current primary school enrolment rate is above 80% on average, with the continent recording some of the biggest increases in elementary school enrolment globally in the last few decades, according to the United Nations Educational, Scientific and Cultural Organization (UNESCO), which is tasked with coordinating international cooperation in education, science, culture and communication. More children in Africa are going to school than ever before.</p>
<p>Yet despite the successes in primary school enrolment, inequalities and inefficiencies remain in this critical sector.</p>
<p>According to the African Union (AU), the recent expansion in enrolments “masks huge disparities and system dysfunctionalities and inefficiencies” in education subsectors such as preprimary, technical, vocational and informal education, which are severely underdeveloped.</p>
<p>It is widely accepted that most of Africa’s education and training programs suffer from low-quality teaching and learning, as well as inequalities and exclusion at all levels. Even with a substantial increase in the number of children with access to basic education, a large number still remain out of school.</p>
<p>A newly released report by the United Nations Development Programme (UNDP), “Income Inequality Trends in sub-Saharan Africa: Divergence, Determinants and Consequences”, identifies the unequal distribution of essential facilities, such as schools, as one the drivers of wide income disparities.</p>
<p>Ayodele Odusola, the lead editor of the report and UNDP’s chief economist, makes the following point: “Quality education is key to social mobility and can thus help reduce poverty, although it may not necessarily reduce [income] inequality.”</p>
<p>To address education inequality, he says, governments must invest heavily in child and youth development through appropriate education and health policies and programmes.</p>
<p>Higher-quality education, he says, improves the distribution of skilled workers, and state authorities can use this increased supply to build a fairer society in which all people, rich or poor, have equal opportunities. As it is now, only the elites benefit from quality education.</p>
<p>“Wealthy leaders in Africa send their children to study in the best universities abroad, such as Harvard. After studies, they come back to rule their countries, while those from poor families who went to public schools would be lucky to get a job even in the public sector,” notes Odusola.</p>
<p>Another challenge facing policy makers and pedagogues is low secondary and tertiary enrolment. Angela Lusigi, one of the authors of the UNDP report, says that while Africa has made significant advances in closing the gap in primary-level enrolments, both secondary and tertiary enrolments lag behind. </p>
<p>Only four out of every 100 children in Africa is expected to enter a graduate and postgraduate institution, compared to 36 out of 100 in Latin America and 14 out of 100 in South and West Asia.</p>
<p>“In fact, only 30 to 50% of secondary-school-aged children are attending school, while only 7 to 23% of tertiary-school-aged youth are enrolled. This varies by sub-region, with the lowest levels being in Central and Eastern Africa and the highest enrolment levels in Southern and North Africa,” Lusigi, who is also the strategic advisor for UNDP Africa, told Africa Renewal.</p>
<p>According to Lusigi, many factors account for the low transition from primary to secondary and tertiary education. The first is limited household incomes, which limit children’s access to education. A lack of government investment to create equal access to education also plays a part.   </p>
<p>“The big push that led to much higher primary enrolment in Africa was subsidized schooling financed by both public resources and development assistance,” she said. “This has not yet transitioned to providing free access to secondary- and tertiary-level education.”</p>
<p>Another barrier to advancing from primary to secondary education is the inability of national institutions in Africa to ensure equity across geographical and gender boundaries. Disabled children are particularly disadvantaged.</p>
<p>“Often in Africa, decisions to educate children are made within the context of discriminatory social institutions and cultural norms that may prevent young girls or boys from attending school,” says Lusigi.</p>
<p>Regarding gender equality in education, large gaps exist in access, learning achievement and advanced studies, most often at the expense of girls, although in some regions boys may be the ones at a disadvantage.</p>
<p>UNESCO’s Institute for Statistics reports that more girls than boys remain out of school in sub-Saharan Africa, where a girl can expect to receive only about nine years of schooling while boys can expect 10 years (including some time spent repeating classes).</p>
<p>More girls than boys drop out of school before completing secondary or tertiary education in Africa. Globally, women account for two-thirds of the 750 million adults without basic literacy skills.</p>
<p>Then there is the additional challenge of Africa’s poorly resourced education systems, the difficulties ranging from the lack of basic school infrastructure to poor-quality instruction. According to the Learning Barometer of the Brookings Institution, a US-based think tank, up to 50% of the students in some countries are not learning effectively.</p>
<p>Results from regional assessments by the UN indicate “poor learning outcomes in sub-Saharan Africa, despite upward trend in average learning achievements.” Many children who are currently in school will not learn enough to acquire the basic skills needed to lead successful and productive lives. Some will leave school without a basic grasp of reading and mathematics.</p>
<p><strong>Overcoming</strong></p>
<p>The drivers of inequality in education are many and complex, yet the response to these challenges revolves around simple and sound policies for inclusive growth, the eradication of poverty and exclusion, increased investment in education and human development, and good governance to ensure a fairer distribution of assets.</p>
<p>With an estimated 364 million Africans between the ages of 15 and 35, the continent has the world’s youngest population, which offers an immense opportunity for investing in the next generation of African leaders and entrepreneurs. Countries can start to build and upgrade education facilities and provide safe, non-violent, inclusive and effective learning environments for all.</p>
<p>The AU, keeping in mind that the continent’s population will double in the next 25 years, is seeking through its Continental Education Strategy for Africa 2016–2025 to expand access not just to quality education, but also to education that is relevant to the needs of the continent.</p>
<p>The AU Commission deputy chairperson, Thomas Kwesi Quartey, says governments must address the need for good education and appropriate skills training to stem rising unemployment.</p>
<p>Institutions of higher learning in Africa, he says, need to review and diversify their systems of education and expand the level of skills to make themselves relevant to the demands of the labour market.</p>
<p>“Our institutions are churning out thousands of graduates each year, but these graduates cannot find jobs because the education systems are traditionally focused on preparing graduates for white-collar jobs, with little regard to the demands of the private sector, for innovation or entrepreneurship,” said Quartey during the opening of the European Union–Africa Business Forum in Brussels, Belgium, in June 2017.</p>
<p>He noted that if African youths are not adequately prepared for the job market, “Growth in technical fields that support industrialization, manufacturing and development in the value chains will remain stunted.” Inequality’s inclusion among the Sustainable Development Goals (SDG 10: Reduced Inequalities) serves as an important reminder to leaders in Africa to take the issue seriously.</p>
<p>For a start, access to early childhood development programmes, especially for children from disadvantaged backgrounds, can help reduce inequality by ensuring that all children begin formal schooling with strong foundations.</p>
<p>The UNDP, through its new strategic plan (for 2018 through 2021), will work to deliver development solutions for diverse contexts and a range of development priorities, including poverty eradication, jobs and livelihoods, governance and institutional capacity and disaster preparedness and management.   </p>
<p><em><strong>*Africa Renewal is published by the UN’s Department of Public Information (DPI)</strong></em></p>
		<p>Excerpt: </p><em>Africa Renewal*</em>]]></content:encoded>
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		<title>Global Companies Give Africa a Second Look</title>
		<link>https://www.ipsnews.net/2017/09/global-companies-give-africa-second-look/</link>
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		<pubDate>Tue, 26 Sep 2017 15:27:40 +0000</pubDate>
		<dc:creator>Zipporah Musau</dc:creator>
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		<description><![CDATA[When travelling abroad for work and looking for accommodation, Joe Eyango, a Cameroonian living in the US, considers two factors: convenient transportation from the airport and around the city and reliable Internet access. He is a university professor and wants to be able to jet in, hit the ground running, make his presentation and zoom [&#8230;]]]></description>
		
			<content:encoded><![CDATA[<p><font color="#999999"><img width="300" height="201" src="https://www.ipsnews.net/Library/2017/09/car_-300x201.png" class="attachment-medium size-medium wp-post-image" alt="" decoding="async" loading="lazy" srcset="https://www.ipsnews.net/Library/2017/09/car_-300x201.png 300w, https://www.ipsnews.net/Library/2017/09/car_.png 604w" sizes="auto, (max-width: 300px) 100vw, 300px" /><p class="wp-caption-text">BMW South Africa announces the production of its one-millionth BMW 3 Series sedan at its manufacturing plant in Rosslyn, Pretoria in South Africa. Credit: BMW Group</p></font></p><p>By Zipporah Musau<br />UNITED NATIONS, Sep 26 2017 (IPS) </p><p>When travelling abroad for work and looking for accommodation, Joe Eyango, a Cameroonian living in the US, considers two factors: convenient transportation from the airport and around the city and reliable Internet access. He is a university professor and wants to be able to jet in, hit the ground running, make his presentation and zoom off to another destination in a day or two.<br />
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<p>Eyango has been to various countries in Africa for business and work but has reasons for preferring South Africa. “South Africa has a lot to offer compared with other African countries. The road system is good, there is adequate electricity and reliable Internet connection, which is necessary for work and business,” Eyango told <em>Africa Renewal</em> in an interview.</p>
<p>Recently, having been invited to present a conference paper on a tight schedule, Eyango flew into Johannesburg from Amsterdam, spent less than 30 minutes in customs at the O. R. Tambo International Airport, took a taxi and was at his hotel in less than an hour since arrival.</p>
<p>South Africa attracts many professionals and big multinationals. It’s currently home to more than 75% of all top global companies in Africa.</p>
<p>“Where these big companies choose to invest depends on whether the environment is right for business. Investors are interested in relatively stable countries, good infrastructure, reliable communication, electricity and labour,” says Dr. John Mbaku, a researcher at Africa Growth Initiative at the Brookings Institution and also a professor of economics at Weber State University, US.</p>
<p>Some of the global companies with a presence in South Africa include luxury car manufacturers BMW, the Standard Bank Group, Barclays Bank, Vodafone (one of the world’s largest communication companies), Volkswagen, and General Electric. There is also FirstRand, Sasol, Sanlam, and MTN Group.</p>
<p>In an earlier interview with South African officials on why they’d chosen the country as an investment destination, Sam Ahmed, then the managing director of Britannia Industries, an India-based manufacturer of biscuits, snacks and confectionery, said his organization had been looking for a country that would give it access to the entire African market while keeping its costs low.</p>
<p>“In South Africa you have first-world infrastructure and third-world cost,” Ahmed said. The company’s production costs in South Africa were much lower than in Southeast Asia, the company headquarters.</p>
<p>Big businesses are also attracted to countries where the legal system works, so they can be assured of justice should legal issues arise. South Africa’s judiciary has been hailed for its sound judgements and independence from political machinations relative to other African countries.</p>
<p>Another attraction for big businesses is human resources. The efficiency and smooth operation of these large companies depend on the calibre of its labour force. Despite many years of apartheid, according to Mbaku, South Africa provides its citizens with relatively good quality education the multinationals are looking for in their labour force.</p>
<p>However, despite its successes, South Africa continues to grapple with a high crime rate (especially in urban areas), graft accusations and the political uncertainty that businesses loathe.</p>
<p>Dr. Mukhisa Kituyi, the secretary-general of the UN Conference on Trade and Development (UNCTAD), the UN body that deals with trade, investment and development issues, acknowledges that South Africa has the oldest and most developed market economy in the whole of Africa for historical reasons: the market grew out of a strong mining and industrial base and the financial industry.</p>
<p>However, according to Kituyi, things are now changing and other African countries are also attracting big investors. “It’s true South Africa has had a head start, but in net terms, there is faster growth in alternative centres for both manufacturing and service delivery than in South Africa. Today, the financial services industry is growing faster in Morocco than in South Africa,” Kituyi told <em>Africa Renewal</em> in an interview.</p>
<p>He notes that some multinational enterprises operating out of South Africa have relocated substantially. “We recently saw the opening of the Volvo truck-manufacturing plant in Mombasa. And similarly, we have seen many other services, particularly IT-based services and telecommunications, growing in new nodes like Nigeria, Kenya and Rwanda.”</p>
<p><strong>Fringe benefits</strong><br />
So why should African governments want to encourage global companies to set up shop in their countries? Driven by insufficient funds, African governments are increasingly turning to private-sector companies for a much-needed boost. Foreign investments provide capital to finance industries, boost infrastructure and productivity, provide social amenities and create jobs, all of which can help a country reach its economic potential. And as countries rush to implement the Sustainable Development Goals, funding is key.</p>
<p>In Africa, governments and industry are gradually forming public-private partnerships (PPPs) in which companies provide capital while governments ensure an environment conducive to business. In the last 10 years, the continent has welcomed PPPs for projects in infrastructure, electricity, health and telecommunications.</p>
<p>Lenders like the African Development Bank are urging African countries to improve business environments by “creating the necessary legal and regulatory framework for PPPs, and to facilitate networking and sharing of experience among regulatory agencies and other similar organizations.”</p>
<p><strong>Tread carefully</strong><br />
However, even as PPPs begin to change the face of Africa, there is need for countries to tread carefully and to learn from failed PPPs when signing up for such partnerships. “Ask yourselves, does the state have the capacity to forge ahead with these partnerships? This is necessary to avoid bad debt,” says Kituyi, adding that governments should not let private companies drive the agenda.</p>
<p>This word of caution is echoed by the Brookings Institution’s Mbaku, who is advising African governments to ensure that PPPs work to their advantage: “If you have a weak or corrupt leadership, you may not have the power or the skills required to negotiate a favourable partnership. You will end up with a PPP that is not really a partnership.”</p>
<p>Mbaku gives the example of oil companies that have been operating in Africa for more than 20 years yet still depend on expatriate labour instead of employing locals. Such companies are reluctant to transfer skills, knowledge and technology to the locals.</p>
<p>Another problem with PPPs is the imbalance of power. “If you are a government engaged in a PPP on a development project, there is inequality in power. The multinational has capital, skilled manpower and [an] external market. The government has no power over these,” says Mbaku.</p>
<p>Despite the challenges, however, PPPs will continue playing a major role in the development of poor countries. For African countries to attract multinationals and other big investors to partner with, their governments need to put their house in order—improve infrastructure, communication, security and the legal system, and fight corruption.</p>
<p><em>*(Africa Renewal, published by the UN’s Department of Public Information)</em></p>
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