the africa enigma

Africa Rising

…….but from where and from what?

yofi

Africa had 9% of the World’s oil & gas reserves in 2005% of the World’s oil & gas reserves

India 1%

China 2%

Asia 2% N. American

5%

S. American 8%

Africa 9%

Europe 12%

Middle-East 61%

Gold

21% of Global Production

Diamonds


Copper


Iron Ore


Bauxite (aluminium)


Uranium


Nickel

6.5% of Global Production

Platinum


SSA N Africa Asia

Regional University graduation rates by subject

Agriculture and our challenges• The EU, United States and a

number of developed countries in Asia impose very high import tariffs on agricultural products. Additionally subsidies and support lead to over production n food especially proteins and grains

• Africa is unable to compete except in cash crops not available in developed countries and even there the trades are done outside Africa

Energy• Total lack of Infrastructure in Africa

• Petroleum alone accounts for 46.6% of all exports yet our energy consumption is the lowest per continent. 64 major new finds in the past 7 years….a promise that is ending up being a curse

• About only 1 in 7 Africans has any electricity at all

• Power consumption, at 124 kilowatt hours per capita per year and falling, is only a tenth of that found elsewhere in the developing world, barely enough to power one 100-watt light bulb per person for three hours a day (World Bank report).

• Too little too slow yet per capita consumption growing at 4.1% per annum

• One American consumes as much electricity as

– 2 Japanese

– 6 Mexicans

– 13 Chinese

– 31 Indians

– 128 Bangladeshis

– 307 Tanzanians

– 370 Ethiopians

Infrastructure• Infra who?..........• The 48 Sub Saharan countries

(with a population of almost 900 million generate as much power as Spain with a population of 45 million

• Though telephone subscribers have increased due to mobile phones, internet usage is comparatively very very low (but doing better than access to clean water)

• Only 30% of Africans live within 2 kilometres of a all season road compared to 67% in developed countries

SO what’s up?

• Africa needs an estimated US$75 billion a year to fix its infrastructure problems, US$38 billion for physical infrastructure and US$37 billion in operations and maintenance

• This approximately equates to 12% of Africa’s GDP.

• There is a funding gap of US$35 billion a year, and where are we to get that from?

Crazy enigma• A PERI report indicates that between

1970 and 2010 there was CAPITAL FIGHT (residual) of over US$814 billion.

• This far exceeds official development assistance of US$659 billion and FDI US$306 billion over the same period.

• Compounded with interest this exceeds US$1.06 trillion.

• Now this exceeds total external liabilities of US$189 billion (of the same group)

• What does this really tell us????• We are a net creditor to the rest of

the world…..and then they give it back to us as official aid or lend it to us…………

the africa enigma

Documents