Various Archives - DeHub-Satra https://www.satradehub.org/category/various/ Blog about trade in Africa Fri, 07 Apr 2023 13:53:17 +0000 en-US hourly 1 https://wordpress.org/?v=6.0.1 https://www.satradehub.org/wp-content/uploads/2022/08/cropped-bceiensw-32x32.png Various Archives - DeHub-Satra https://www.satradehub.org/category/various/ 32 32 The South African Renewable Energy Sector: Harnessing Sustainable Resources for Economic Growth https://www.satradehub.org/the-south-african-renewable-energy-sector-harnessing-sustainable-resources-for-economic-growth/ Fri, 07 Apr 2023 10:49:15 +0000 https://www.satradehub.org/?p=134 Introduction to the South African Renewable Energy Sector The South African renewable energy sector has seen unprecedented growth in recent […]

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Introduction to the South African Renewable Energy Sector

The South African renewable energy sector has seen unprecedented growth in recent years, with many different sources of sustainable energy now being harvested across the country. South Africa has pledged to implement a wide range of measures to reduce greenhouse gas emissions and meet its energy needs from renewable sources such as solar, wind, geothermal, and hydroelectric.

This commitment to sustainable development and cleaner energy sources is essential for continued economic growth as well as for reducing environmental harm. Renewable energy sources are becoming more cost-competitive and reliable every day, making them an increasingly attractive option for governments, businesses, and citizens around the world.

Harnessing the power of renewable energy not only benefits the environment, but also brings significant economic and social benefits to many communities. Studies show that developing the renewable energy sector can result in the creation of jobs, improved human health, increased GDP growth and improved energy security.

In this guide, we will explore the current state of the South African renewable energy sector, the potential it offers for sustained growth, the cost of renewable energy, the potential social impacts, the technological landscape, and its economic impacts. We will also discuss strategies for financing renewable energy projects, recommended steps to further progress the sector, and resources available for further study.

Understanding the South African Renewable Energy Sector

South Africa is a developing nation with a major potential for renewable energy production. Renewable energy sources refer to energy produced in a way that does not involve using up finite resources and limits the amount of pollution produced. In South Africa, there are presently six primary renewable energy sources under development – wind, solar, hydropower, geothermal, biomass, and biogas. These sources are a part of a larger energy mix which includes other non-renewable energy sources, such as coal and nuclear.

In terms of its overall contribution to the energy mix, renewable energy sources make up just 6% of South Africa’s energy production. This is an increase from 1% in the year 2008, highlighting the progress that has been made so far. This progress is largely driven by greater economic investment in renewable energy projects, as well as government incentives.

Wind energy is currently the largest contributor to the South African renewable energy sector, accounting for 3.5 gigawatts of electricity or around 5.4% of total electricity capacity. Solar energy is the second largest contributor, with a capacity of 2.9 gigawatts or 4.5% of total electricity capacity. Hydropower makes up around 1.7 gigawatts of electricity, with biomass and biogas making up the remainder.

The development of renewable energy sources in South Africa has not only helped to expand clean energy generation, but has also created thousands of jobs and given rise to new businesses. Thus, it is an important step in helping South Africa meet its sustainable development goals and avoiding the pitfalls of climate change.

Potential for Sustainable Development

Renewable energy sources such as solar and wind are becoming increasingly popular across the world, and South Africa is no exception. In recent years, the country has demonstrated a growing commitment to developing renewable energy sources, with the government introducing a number of initiatives and plans to incentivize this work.

South Africa has a wide range of potential for renewable energy development, from solar and wind power to wave and tidal energy. Many of these sources have already been tapped into for various projects, including large-scale commercial solar and wind farms and small-scale community-level projects. These projects have generated significant amounts of electricity, pushing South Africa closer to its goals of sustainability and energy security.

The South African government has also been actively working to promote renewable energy sources and incentivize their growth. This includes establishing the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) in 2011, which has worked to procure private investment in the renewable energy sector. The government has also set a target of supplying 17.8 gigawatts of renewable energy by 2030, up from 1.39 gigawatts in 2016.

Overall, there is significant potential for the growth of renewable energy sources in South Africa, and the government’s initiatives and plans are making this increasingly possible. With continued development, South Africa could make great strides towards sustainability and energy security, allowing its citizens to benefit from the economic growth that comes with it.

Cost of Renewable Energy Sources

When trying to decide which energy sources to use for producing electricity and powering homes and businesses, one of the most important considerations is cost. It is essential to know whether renewable energy sources will be cheaper than traditional fossil fuels in order to meet future energy demands.

Renewable energy sources generally have higher initial costs compared to traditional fossil fuels, such as coal and natural gas. This is because they require significant infrastructure and technology investments before they can start generating electricity. However, when these upfront costs are taken into consideration, renewable energy sources are often cheaper than traditional fossil fuels over their lifetime.

Another factor to consider is that the cost of renewable energy sources is constantly decreasing due to advances in technology, increased efficiency, innovation, and competition in the market. The cost of traditional fossil fuels, however, remain relatively stable, meaning that in the long run, renewable energy sources will become even more cost-effective.

An additional benefit of switching to renewable energy sources is that their cost is much less volatile. This means that the risk for energy price fluctuations is minimised, providing more financial security for energy consumers.

The cost of renewable energy sources has a direct bearing on the possibility of meeting future energy demands. In many places, renewable energy sources are already cheaper than traditional fossil fuels, and as time passes and advances in technology continue, the cost of renewable energy sources will only decrease further. This makes renewable energy not only an environmentally-friendly option but an economically sensible one too.

Social Impact

The development of renewable energy sources in South Africa has the potential to bring many social benefits. Energy access is a human right and renewable energy sources can help bring reliable and affordable energy to areas that have limited or no access. Renewable energy also has the potential to create jobs, improve air quality, and reduce greenhouse gas emissions.

However, some communities will be more adversely affected than others by the transition to renewable energy sources. For instance, those living and working in coal-based economies may find it especially difficult to adjust to these changes. It’s important to consider their perspectives and take steps to ensure they are part of the transition and benefit from the new opportunities available.

The government should also prioritize community engagement and ensure communities are properly informed about the changes coming and the opportunities that may arise as a result. This will help ensure local communities understand and can actively participate in the development of renewable energy sources in South Africa.

Overall, the transition to renewable energy sources in South Africa has the potential to bring a host of benefits, but these benefits must be weighed against any potential social costs or risks associated with the transition. It’s essential to consider these impacts thoroughly and plan for both positive and negative outcomes.

Examining the Technological Landscape of South Africa’s Renewable Energy Sector

South Africa has a long way to go in becoming a renewables powerhouse, but is making headway when it comes to incorporating new and innovative technologies. In order to take the renewable energy sector to the next level, technological solutions must be implemented to maximize efficiency and reduce costs.

The most prevalent renewable energy sources in South Africa are currently solar and wind energy, and although these are cost-effective and abundant, they are still only a small part of the overall energy mix, accounting for just over three percent total. To boost this figure, additional technological solutions and infrastructures must be put in place.

Recent advancements include the implementation of Substation Automation, which is currently being used by the power utility Eskom to monitor and control the grid and transmission systems. This not only ensures a better flow of electricity but also more effectively manages outages and reduces energy losses.

Smart Grid Technology is another great example of new technology being used in South Africa. This allows electricity providers to better manage their energy networks, optimise their energy input and output, and provide users with more cost-effective and reliable services.

In addition to these technological advancements, other developments such as the African Development Bank’s Renewable Energy Projects and the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) have also been launched to further promote the growth of the clean energy sector in South Africa.

The development of new renewable energy technologies is essential for the growth and progress of the sector, and South Africa is certainly taking strides in this regard. Through the implementation of new infrastructures and incentive programmes, the country is well on its way to becoming a renewable energy leader in the region.

Economic Impacts of Developing the South African Renewable Energy Sector

There are numerous economic benefits to be gained from further developing the renewable energy sector in South Africa. A shift away from traditional fossil fuels towards renewable energy sources such as wind and solar will result in job creation, GDP growth, and energy security in the long run.

One of the major benefits of developing renewable energy is job creation. As new jobs are created in the renewable energy sector, individuals will have greater access to employment opportunities across the country. This will help to reduce poverty and inequality in South Africa, as more individuals will be able to support their families financially.

Moreover, further developing the renewable energy sector in South Africa will also contribute to GDP growth. Investing in renewable energy projects will bring additional money into the economy, fueling economic growth and supporting other industries. Furthermore, as renewable energy becomes increasingly cheaper, it will also help to lower electricity prices for consumers, helping to stimulate further economic activity.

Finally, developing the renewable energy sector in South Africa will also ensure better energy security in the future. By reducing its dependence on traditional fossil fuels, South Africa will be more resilient to external shocks, such as the recent oil crisis, which could cause significant disruptions to the economy.

Overall, further developing the renewable energy sector in South Africa can bring numerous economic benefits, including job creation, GDP growth, and energy security. All of these benefits could help to create a more equitable and prosperous society in South Africa.

Financing Renewable Energy Projects in South Africa

Finding the money to fund renewable energy projects is an important factor that must be considered when trying to develop the South African renewable energy sector. Financing these projects can come from both public and private sources.

Public Funding

Public funding for renewable energy projects typically comes from government organisations or international banks. This funding could come in the form of grants, loans, or tax credits, and is often used to support the development of new technologies or to provide more access to energy sources.

Private Investment

Private investments in renewable energy projects can include companies or individuals investing their own money in the development of these sources. Private investment can also take the form of venture capital, angel investors, or even crowdfunding campaigns.

Financing renewable energy projects in South Africa is an important step to ensure a healthy and sustainable future. Public and private investments can play a key role in furthering the development of this sector and make it more accessible to people across the country.

Continued progress in the South African renewable energy sector will help create jobs and stimulate economic growth, while ensuring that the country’s energy needs are met in a way that is more sustainable and beneficial for the environment.

Recommended Steps Moving Forward

Developing the renewable energy sector in South Africa provides an exciting opportunity to reduce our reliance on traditional fossil fuels and create a greener, economically sustainable country. The recommendations below are focused on how this development can be done in an equitable and beneficial way.

  • Create environmental regulations that will ensure sustainable development of renewable resources as well as protect natural ecosystems;
  • Adopt renewable energy technologies that are affordable and accessible to all. This will ensure that the benefits of the renewable energy sector are available to all, regardless of income;
  • Support the development of renewable energy projects through incentives like tax credits, grants, and loan guarantees;
  • Build strong domestic industries for renewable energy sources such as solar, wind, and hydro to drive more investment in these areas;
  • Encourage knowledge exchange and cooperation between research institutions and industry players in the renewable energy sector;
  • Engage with communities and consult local stakeholders to create shared benefits that come from the development of renewable energy projects.

By following these steps, South Africa can become a leader in renewable energy development. The economic and social benefits of moving towards a green economy are immense, and the future of South African development depends on harnessing sustainable resources.

Conclusion

The South African renewable energy sector has a great potential to benefit the country. By harnessing sustainable sources of energy, South Africa can increase its energy security, create more jobs, and spur economic growth. This is especially important as the world moves towards a more sustainable future.

The potential benefits of the South African renewable energy sector must be weighed against the costs and challenges that come with developing these sources of energy. It is crucial to consider the social and economic impact of such projects, and any necessary technological solutions. Financing for renewable energy projects should also be taken into consideration, as this is an important aspect of developing the sector.

With the proper understanding and implementation of policies, programs, and initiatives, South Africa can utilize its rich renewable resources to create sustainable economic and social growth. Citizen activism, government support, and investment from the private sector will all be essential for the development of the South African renewable energy sector.

Activism Strategies for Renewable Energy

Citizens of South Africa can become personally involved in pushing the development of the renewable energy sector. Activism is crucial in raising awareness, providing necessary resources and engaging stakeholders to take action. There are numerous ways that citizens can actively participate in developing sustainable energy sources, including:

  • Creating Awareness: Educating other citizens on the benefits and importance of renewable energy sources is key. This could include hosting events, organizing protests or simply talking to friends, family, and acquaintances about the topic;
  • Joining Organizations: Connecting with organizations such as Greenpeace, 350 Africa or Save Our Future can help ensure that everyone is united under the same cause. Working together with like-minded individuals can help strengthen the cause and reach further audiences;
  • Attending Conferences: Participating in global conferences and events related to renewable energy will allow citizens to establish connections and create opportunities to learn from experts in the field;
  • Online Engagement: Connecting online is an effective way to spread the message and receive support from like-minded individuals across the globe. Establishing a presence on social media platforms, such as Twitter and Facebook, will help reach out to a wider audience;
  • Making Your Voice Heard: Writing letters to representatives, signing petitions, and voting in elections are all great ways to make your voice heard and help influence decision-makers.

Getting involved with activism strategies promotes public participation, raises awareness, and contributes to the development of renewable energy sources in South Africa. The more people who come together and speak up, the more chances there are to see progress and positive change.

Resources for Further Study

If you want to delve deeper into the subject of renewable energy in South Africa, there are plenty of resources available. Here are some helpful websites, books and news articles:

  • Websites: The South African Government has information available at gov.za, the Department of Mineral Resources and Energy dmre.gov.za and the South African RE Sector Scale-up Project resa.org.za;
  • Books: A book that provides comprehensive information about the renewable energy sector in South Africa is “Renewable Energy in South Africa” by Thomas Hillig (Elsevier, 2015);
  • News Articles: Many news sources provide articles related to the renewable energy sector in South Africa. Popular sources include IOL, News24, and Fin24.

These resources can provide valuable insight into the current state of the South African renewable energy sector and its potential for sustainable economic growth.

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Online earning opportunities in Africa. Robots in Africa https://www.satradehub.org/online-earning-opportunities-in-africa-robots-in-africa/ Wed, 01 Feb 2023 13:11:44 +0000 https://www.satradehub.org/?p=119 Africa is the largest of the continents of the Earth, inhabited by 1 billion 200 million people. There are 57 […]

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Africa is the largest of the continents of the Earth, inhabited by 1 billion 200 million people. There are 57 states in Africa, of which 3 continue to be unrecognized. Their level of development differs significantly. For example, the Republic of South Africa is among the twenty leading world countries in terms of economic development. At the same time, in Sierra Leone, Liberia, Chad and many other countries, the standard of living of the local population cannot be assessed at all, because it can be characterized in the following words: absolute poverty.

That is why it is simply not necessary to talk about any uniform working conditions in African countries. We can only state general trends. You should discard the usual stereotypes of the European Union and be ready to plunge into a completely new world, in which many dangers and pleasant surprises await.

In many states of Africa, long-term armed conflicts continue. Maybe not everyone knows, but over a decade of war between the tribes of North and South Sudan, almost one and a half million people died, and the whole world knows about the Arab Spring in the states of the Maghreb and Egypt. And that’s not all. This information should be taken into account when looking for a job in Africa, as it will help you choose the best country for employment and avoid the danger of falling into a war zone. If a person agrees to work in a country with an unstable political situation, where there is a war in one form or another, then he must initially understand what he agrees to and soberly assess the degree of risk and its compensation.

Which countries in Africa are the most suitable for employment

For employment in Africa, the countries that were part of the British Empire are most suitable . Despite the fact that after gaining independence, there was no trace of the usual English order and stability in them, for the most part these states continue official or unofficial cooperation with the former metropolis and use the economic resource created back in the days of joining the empire. In addition, the legislation of these countries is based on the English system, which allows foreigners to understand it.

The most attractive African country in terms of employment has been and continues to be South Africa. Despite the fact that in recent years the economic growth rate of the Republic of South Africa has fallen somewhat, the standard of living of its citizens and the level of wages continue to remain high even by European standards. But getting a job in this country is quite difficult, for this you need to be a highly qualified specialist. Today, the South African authorities are pursuing a policy of prioritizing the filling of vacancies by South African citizens. Therefore, the applicant should expect high competition for almost any of the positions. The salary of a specialist in the wilds of the African jungle may not be less than in South Africa, but the working and living conditions cannot be compared.

A few years ago, work in Libya was very popular among Russians and citizens of the CIS. But after the overthrow of the regime of Colonel Gaddafi, chaos reigned in the country, local hostilities are still going on, the economy is in ruins. Although experts say that in a few years Libya expects an economic recovery, and this should be taken into account when planning employment in Africa (before the war, the annual volume of oil exported by Libya was over 70 billion US dollars).

The countries of West Africa, in particular Sierra Leone, Liberia, Guinea, have a significant amount of the world’s reserves of gold and diamonds. Therefore, Western mining companies and their counterparts from the CIS carried out the development and extraction of these minerals, constantly increasing the capacity of mining enterprises and increasing its volumes. But in 2014, the deadly Ebola virus broke out in West Africa, which greatly froze the economic development of these countries. Guinea and Sierra Leone have become the epicenter of the deadly virus.

Tanzania is one of the most developed countries on the continent. Today, the Tanzanian economy requires specialists in almost all its fields, and the island of Zanzibar (Tanzanian autonomy) has long become a kind of Mecca for tourists from all over the world, so you can always find work in the tourism business there.

Oil production continues in Egypt, and the tourist segment of the economy is traditionally at its best. The Egyptian economy is relatively stable, despite the political turmoil of recent years.

In terms of employment, the following African countries are promising:

  • Kingdom of Morocco (production of agricultural products, tourism business);
  • Algeria (agricultural sector, tourism);
  • Nigeria (oil and gas production, oil refining, infrastructure development);
  • Ethiopia (construction of infrastructure);
  • Ghana (mining, including uranium);
  • Sudan (creation and construction of infrastructure);
  • Namibia (gold and diamond mining);
  • Senegal (infrastructure construction);
  • Equatorial Guinea (mining, construction of hydroelectric power stations).

Most of the countries of West and Central Africa are the least economically developed. For example, finding a job in the Central African Republic is almost impossible. It is very problematic to work in countries whose territory or part of it belongs to the Sahara desert. In these regions, some exploration and mining of minerals is carried out, but working conditions are extremely difficult due to the very hot arid climate and the constant shortage of water.

Job Search Methods

Job search methods in Africa are not fundamentally different from those that can be used, for example, in Europe. But not every of these methods is effective in African conditions. For example, it is possible to visit an African country as a tourist and find a job during this, but this method is practically unrealistic, if we do not talk about working in Egypt or South Africa. A flight to Africa is expensive, and applying to local employers will not bring the desired result.

High and stable salaries in Africa can be obtained, as a rule, when working in representative offices of foreign companies (American, British, German, Indian, Chinese, Russian). The local employer will usually not be able to pay the desired amount because they do not have the financial capacity to do so. The main capital in Africa is concentrated in the hands of foreign businesses that operate on the Black Continent. The only exception is the Republic of South Africa, where the majority of enterprises are owned by local businessmen. Therefore, it is just possible to visit it in order to find a job. But at the same time, the high cost of the trip itself should be taken into account.

Finding a job with the help of intermediaries

For employment in Africa, you can turn to the services of intermediary recruiting companies. They will be able to provide information about vacancies and connect the job seeker directly with the employer or its representatives in the country of residence of the seeker. But there are a few simple truths to keep in mind when working with recruiting agencies. Firstly, the services of a recruitment agency are not free, their cost is quite high. Before signing the contract, you should ask how payment will be made. In no case should you agree to an advance payment, since the advance payment itself can be received, and the services are simply not provided.And this situation is observed quite often. Unlike Western Europe, the services of recruiting companies in finding work in Africa are usually paid directly by the job seeker.

Secondly, you can run into scammers. Therefore, before starting work with a recruiting agency, you should ask about its reputation, go to the company’s office, get acquainted with the current license, as well as with the reviews of people who are already working in Africa with the help of this agency.

Thirdly, you need to understand that returning home from Africa is much more difficult than from any European country. Yes, and immigration rules are much less loyal than in Europe. For their violation, you can end up in an African prison, which for a white person will simply become a disaster and a real threat to his life. This factor must be taken into account when trusting your fate to a recruitment agency and a recommended employer. Therefore, it is advisable to double-check the information about the vacancy three times before agreeing to take it.

Contacting companies operating in Africa

Direct contact with the employer can be considered the most effective – contacting the main office of a company operating in Africa usually brings results. Very often, decisions on personnel issues are made outside the Black Continent, namely at head offices located in Europe, America, India, China or Russia. Therefore, you should find information about a company operating in Africa and send your resume to its HR department. After passing the interview and agreeing on all organizational issues, the flight to Africa to the place of work will be the final stage of the process. You should search for a company according to your specialty. For example, a doctor can contact the head office of a clinic located in Italy or India, and a geologist can contact the central office of a mining company located, for example, in the UK.

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Trading in Africa: Why positive stories are worth appreciating https://www.satradehub.org/why-positive-stories-are-worth-appreciating/ Thu, 10 Feb 2022 10:44:00 +0000 https://www.satradehub.org/?p=51 You may remember the story of these two shoe salesmen who went to Africa in the early XNUMXth century to find new markets

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You may remember the story of these two shoe salesmen who went to Africa in the early XNUMXth century to find new markets… A few days after their arrival, the first salesman decided that there was no opportunity to sell shoes because everyone was walking around barefoot. However, his partner came to the conclusion that since no one seemed to be wearing shoes, there was a huge untapped market that could be tapped.

This story reminds me of how the world continues to underestimate Africa and chooses the “no shoes needed here, thank you” viewpoint. This situation has something to do with the way events in Africa are portrayed by the media.

Young Africans see themselves as empowered people
For example, Africa has the youngest population in the world – 70% of sub-Saharan Africans are under 30 – but their stories are not covered by the media. According to the Ichikowitz Family Foundation’s Youth 2020 Survey, young Africans see themselves as empowered people. Three-quarters of them plan to start their own businesses in the next five years, and if given $100, 50 percent would invest in their own businesses. Two out of three said they already had an idea for starting a business. However, media coverage hardly reflects this activity and optimism.

Google Trends data confirms this: we looked at what people in Africa were looking for and highlighted the scale of entrepreneurship on the continent. We found that in 2021 in Africa, eight of the ten countries with the largest populations of business learners and six of the ten countries with the largest populations of entrepreneurs. autonomy and waiting for their governments to give them jobs or for development organizations to rescue them.

African women are absent from business stories
It’s not just young men who are absent from business stories. This is true of African women as well. The debate about the secondary role of African women in patriarchal Africa must be reconsidered. The continent ranks first in the world in the number of women entrepreneurs, and they make up 58% of the continent’s self-employed population. Uganda, Botswana, and Ghana were among the top three economies in the world with the largest number of women entrepreneurs in the MasterCard Women Entrepreneurs Index for 2020. Yet their voices, like those of young people, are underrepresented in the media coverage of business.

Africa has won many awards that begin with the words “fastest growing,” which often means rapid change at a steady pace. But many of these trends are not picked up and disclosed by the media. Agriculture and tourism are good examples. Africa has the fastest growing agricultural sector of any continent in 2019 and the second fastest growing tourism market in the world. Clearly, the growth of tourism and the stability of food creates a favorable environment for business and investment. Yet when we look at business coverage on the continent, we find that little or no attempt is made to analyze this data and highlight existing opportunities.

The same is true when looking at the coverage of the technology and innovation sectors on the continent, which, while widely covered, is often focused on international equity, risk and foreign investment investors, with little focus on the local individuals behind the tech startup ecosystem in Africa.

These African companies that don’t get media attention
Information about local companies hides behind the stories of international brands setting up store or expanding in Africa. When Twitter opened its first continental office in Ghana, it hit the headlines as hundreds of tech startups in Ghana’s thriving tech ecosystem continue to be ignored.

Ultimately, there’s a lot missing from business coverage in Africa: the voices of young people, women, entrepreneurs, creative businesses and successful small African countries. The focus is on international brands, foreign players, governments, and large economies like Nigeria and South Africa.

Business and investment are essential to the continent’s inclusive and sustainable development, and the media plays a crucial role in highlighting what’s out there. It’s time to spread the word about the opportunities the continent offers, because we don’t want to be the ones who regret not investing in shoes.

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Capital imports and foreign debt https://www.satradehub.org/capital-imports-and-foreign-debt/ Wed, 12 Jan 2022 11:12:00 +0000 https://www.satradehub.org/?p=66 A chronic problem in West Africa is the low savings rate, and hence the lack of financial resources for investment.

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A chronic problem in West Africa is the low savings rate, and hence the lack of financial resources for investment. As a consequence, the States of the subregion are extremely interested in external sources of financing, and consequently in capital inflows, both in entrepreneurial and lending forms. The flow of entrepreneurial capital to West Africa, however, is hampered by a number of factors. These include poor infrastructure, a low level of skills of the local workforce, lack of easy procedures for registering businesses, high levels of corruption, political instability and, in some cases, excessive taxation.

For these reasons, the inflow of foreign direct investment into West Africa has so far not been significant. As of 2006, cumulative accumulated foreign direct investment in these states corresponded to 30% of the sub-regional GDP. The country-level exception is Nigeria, which, as the largest oil exporter not only in West Africa but also in Sub-Saharan Africa as a whole, is a major destination for foreign entrepreneurial capital. In 2006, it accounted for 71 percent of all foreign direct investment in the subregion. Almost all foreign direct investment is concentrated in the extractive industries sector of West African states.

The inflow of foreign capital in loanable form in the case of most West African states is either completely absent or amounts to negligible amounts, because, as already noted, 13 countries in the subregion are classified by the IMF as poor countries with a high degree of debt burden. The debts of these countries have repeatedly been partially cancelled by the Paris Club. Nevertheless, as of 2005, the total external debt of West African states exceeded $61 billion. The countries with the greatest absolute external debt are Nigeria ($22.18 billion) and Côte d’Ivoire ($10.7 billion). The countries with the highest debt burden (i.e., the highest percentage of external debt to GNI) are Mauritania (117% of GNI), Togo (74% of GNI), and Côte d’Ivoire (69% of GNI).

International aid
International aid is the main external source of financial resources for States in the subregion. All West African countries are recipients of Official Development Assistance (ODA). In addition, Mauritania is a recipient of Saudi Arabia’s aid. Between 1995 and 2004, the minimum country level of total international aid in West Africa was $402 million (the Gambia received such aid during this period), and the maximum was $8 billion, $185 million (Ghana). The lowest aggregate international aid in West Africa was $402 million (the Gambia received such aid during that period) and the highest was $8 billion and $185 million (Côte d’Ivoire, Ghana and Senegal). According to 2006 data, in more than half of the countries in West Africa, the annual amount of ODA per capita exceeded the regional average ($43). The smallest amount of ODA per capita was registered in Côte d’Ivoire ($7), and the largest – in Sierra Leone ($62).

International organizations providing ODA are divided into two groups – a group of international financial institutions and a group of UN funds and programs. Of the first group, the International Development Association, the IMF and the African Development Bank are most actively involved in providing ODA to the countries of the sub-region. The second group includes the UN Development Program and the UN Children’s Fund. The largest donors of bilateral aid to West African states are the developed countries – former metropolitans, the U.S., and the Scandinavian countries. In recent years, the amount of aid provided to the states of the sub-region by the PRC has grown rapidly.

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West Africa: Economic Review https://www.satradehub.org/west-africa-economic-review/ Thu, 28 Oct 2021 11:05:00 +0000 https://www.satradehub.org/?p=63 West Africa is one of the four subregions of sub-Saharan Africa, which, however, holds a special place both in history and in the economy of the Black Continent.

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West Africa is one of the four subregions of sub-Saharan Africa, which, however, holds a special place both in history and in the economy of the Black Continent. The beginning of the European slave trade by Portuguese merchants, who founded their settlements on the coast of the Gulf of Guinea in the 15th century, is associated with West Africa. If we refer Sudan to the Arab region, as many researchers do nowadays, it was in West Africa that the first independent state of sub-Saharan Africa, freed from colonialism, emerged (Ghana, March 6, 1957).

West Africa is the largest sub-region of sub-Saharan Africa both in terms of population and number of states. West Africa also has a special place in the natural resource potential of sub-Saharan Africa, if only because West Africa is home to the main hydrocarbon reserves in the region. The subregion of West Africa includes 16 sub-Saharan states – Benin, Burkina Faso, Cape Verde, Cote d’Ivoire, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone and Togo. The total area of the sub-region is 6139.8 thousand sq km.

Natural and human resources
The natural resources of the subregion are poorly studied. However, even the available estimates indicate that West Africa is rich in raw materials. The subregion has 80% of world reserves of chromites, 76% of phosphates, 60% of manganese and cobalt, about 50% of bauxites, 40% of diamonds, 37% of gold, about 3% of oil and natural gas, and significant reserves of iron ore, marble and uranium. At the same time many raw materials are distributed in several West African countries.

This includes diamonds, bauxite, iron ore, gold, manganese, oil, natural gas and phosphates. The size of the country’s reserves, however, varies. Thus, the largest diamond reserves are in Sierra Leone, bauxite in Guinea, iron ore in Mauritania and Liberia, gold and manganese in Ghana, oil and natural gas in Nigeria, and phosphate in Togo. Virtually all uranium reserves are concentrated in Niger. All cobalt and chromite reserves are in Cote d’Ivoire and Sierra Leone, respectively. Cote d’Ivoire, Ghana, Guinea, Mali, Niger, Nigeria and Sierra Leone have the most diversified resource base. The prospects for further expansion of the subregion’s resource base are mainly linked to the exploration of the Atlantic coastal shelf of West Africa and especially the Gulf of Guinea region, which is potentially rich in hydrocarbons.

The population of West Africa exceeds 280 million. In other words, the subregion is home to approximately 36% of the total population of sub-Saharan Africa. The share of the subregion in the world population is 4.3%[3]. The most populous state in West Africa is Nigeria (population – 145 million people). In terms of population, Nigeria is in sixth place in the world. Cape Verde has the smallest population of the subregion (518 thousand people).

The average annual growth rate of the population of West Africa in the years 2000-2006 was 2, 6% (against 2.3% for sub-Saharan Africa as a whole and 1, 2% globally). The fastest population growth in the sub-region was registered in 2000-2006 in Sierra Leone (3.7%), the lowest – in Cote d’Ivoire and Liberia (1.6%).

The West African labor force (population aged 15-64 years inclusive) exceeds 100 million people, i.e. the sub-region accounts for about 34% of the labor force in Sub-Saharan Africa. At the country level, Nigeria has the largest labor force (over 47 million). The average annual growth rate of the labour force in the sub-region from 1990 to 2004 was The sub-region’s average annual labour force growth rate was 2.8% (compared with 2.5% for sub-Saharan Africa as a whole). The Gambia had the highest labor force growth rate in the sub-region between 1990 and 2004 (3.5%), and Senegal had the lowest (2.1%). The labor force of West Africa is dominated by the labor force of low professional qualifications. Thus, in 11 countries of the sub-region the adult literacy rate (i.e. over 15 years of age) is lower than the average for sub-Saharan Africa (59%). At the same time, in a number of states it is much lower than this value. For example, only 24% of adults are literate in Burkina Faso and Mali, 29% in Guinea and Niger, and 35% in Benin and Sierra Leone.

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Traditional trade routes, objects of trade https://www.satradehub.org/traditional-trade-routes/ Tue, 12 Oct 2021 10:49:00 +0000 https://www.satradehub.org/?p=54 A huge role in the history of Africa was played by long-distance caravan trade, which developed by the end of the first millennium A.D.

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A huge role in the history of Africa was played by long-distance caravan trade, which developed by the end of the first millennium A.D. The most important trade routes for West Africa were from the shores of the Mediterranean Sea through the Sahara Desert. Caravans carried gold, ivory and gum from the south, handicrafts from the Mediterranean and rock salt from the Sahara from the north. The same process took place on the eastern coast of Africa, only there the trade routes ran not along the sands, but along the Indian Ocean, and the intermediaries between Arabs, Persians, Indians and Africans were not powerful empires, but independent Swahili trading cities.

The enterprising Africans who had converted to Islam formed their own merchant class, and these people quickly extended a trading network into the interior of the continent. In West Africa the most important commodity for a long time was the kola nut, which grows on a low tree in the forest zone. This bitter nut, because of its tonic effect, has always been highly prized in the cities of western Sudan; even the word “south” literally means “kola nut country” in some languages.

Some peoples have been able to trade worse, others better. In East Africa, the Swahili and their Indian rivals controlled all trade; in West Sudan, the Hausa, Soninke, and Maninka were the main trading peoples, and on the coast the Lebanese and Syrians. The southeastern Maninka are so called, Dyula, which means “merchants”; this is the name that has stuck with them.

The simple-minded farmers do not like the dodgy merchants, they envy their wealth, and sometimes, when life is especially difficult, they get up and go and smash stores and stalls. But if the merchants, having abandoned their wealth by hook or by crook, leave their land, then the economy declines, and everyone begins to dream of the return of the once hated merchants.

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Trans-Saharan trade https://www.satradehub.org/trans-saharan-trade/ Fri, 30 Jul 2021 10:56:00 +0000 https://www.satradehub.org/?p=57 Trans-Saharan trade requires travel across the Sahara between sub-Saharan Africa and North Africa. While there is from prehistoric times

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Trans-Saharan trade requires travel across the Sahara between sub-Saharan Africa and North Africa. While there is from prehistoric times, trade peaked between the 8th and early 17th centuries. Once upon a time, the Sahara was a very different environment. In Libya and Algeria since at least 7,000 B.C., cattle ranching, sheep and goat grazing, large settlements, and pottery. Cattle were introduced into the Central Sahara (Ahaggar ) from 4000 to 3500 BC. Remarkable rock paintings (dated 3500-2500 B.C.) in places that are now very dry depict flora and fauna that do not exist in the modern desert environment.

As a desert, the Sahara is now a hostile space, separating the Mediterranean economy from that of the Niger Basin. Since Fernand Braudel points out that crossing such an area (especially without mechanized transport) only makes sense if exceptional circumstances result in the expected benefits outweighing the costs and dangers.

Trade starting from about 300 was conducted by camel caravans. According to Ibn Battuta the traveler who accompanied one of the caravans, the average size of a caravan was 1,000 camels; some caravans reached 12,000. Caravans would be accompanied by highly paid Berbers who knew the desert and could provide safe passage from the desert to their fellow nomads. The survival of the caravan was risky and depended on careful coordination. Runners would be sent ahead to the oases so that water could be sent to the caravan when it was still a few days away, as caravans could not easily carry enough water with them to make the full journey. In the middle of the 14th century, Ibn Battuta crossed the desert from Sijilmas through the salt mines at Taghaza to the oasis of Oualata. A guide was sent ahead, and water was delivered on a four-day journey from Oualata to meet the caravan.

There was also an exchange of culture and religion along the Trans-Saharan trade route. These colonies eventually adopted the language and religion of the country and were absorbed into the Muslim world.

The Future of Trans-Saharan Trade
The African Union and the African Development Bank support the Trans-Sahara Highway from Algiers to Lagos via Tamanrasset which aims to stimulate trans-Saharan trade. The route is paved, except for a 200-kilometer stretch in northern Niger, but border restrictions still make traffic difficult. Only a few trucks carry the trans-Saharan trade, especially fuel and salt. Three other highways through the Sahara are proposed: see Trans-African highways for details. The highways are difficult to build because of sandstorms.

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Africa’s Integration into the International Agricultural Trade System https://www.satradehub.org/africas-integration/ Wed, 07 Oct 2020 11:00:00 +0000 https://www.satradehub.org/?p=60 For Africa, economic prosperity in general and trade relations in particular are highly dependent on the situation in the agricultural sector.

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For Africa, economic prosperity in general and trade relations in particular are highly dependent on the situation in the agricultural sector.

Africa’s potential in global agricultural trade remains unrealized. Therefore, it is interesting to analyze Africa’s foreign trade by commodity group in order to identify the main trends. It is also important to identify the reasons for Africa’s weak position in global trade in agricultural products.

Africa has a comparative advantage in certain agricultural commodities, including crop products (cashew nuts, sesame seeds, vanilla, etc.). However, African countries are still too specialized in raw materials and semi-finished products. In recent years, there has been a trend of increasing diversification of agricultural exports from Africa.

Among the main reasons hindering the improvement of Africa’s position in world agricultural trade are the low productivity of African farmland, reliance on imported fertilizers, low spending on agricultural research and development, the negative impact of high customs tariffs and non-tariff measures on agricultural trade, and internal problems in Africa such as poor transport and communication infrastructure.

Addressing the identified problems requires greater investment in transport and telecommunications infrastructure, improved access to fertilizers and pesticides, as well as increased spending on research and development in the agricultural sector. In addition, the successful functioning of the African Continental Free Trade Area, which effectively eliminates both tariff and non-tariff barriers, should be an important condition for the integration of African countries into the system of international agricultural trade.

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