Reality Television Teaches Business Skills in Sudan

Learning how to thrive in a market economy does not necessarily come naturally. But for young people who have grown up under a different economic system or known nothing but economic chaos, learning business skills can give them the tools to get on in life.

With youth unemployment rates high around the world, it is clear many young people may never get the jobs they expect unless they start businesses themselves.

In 2013, 73.4 million young people were out of work, an increase of 3.5 million from 2007. A report by the International Labour Organization (ilo.org) found persistent unemployment around the world in the wake of the global economic crisis, a proliferation of temporary jobs and growing youth discouragement in advanced economies; and poor quality, informal, subsistence jobs in developing countries. School-to-work transition surveys of developing countries showed that youth are far more likely to land low-quality jobs in the informal economy than jobs paying decent wages and offering benefits.

High youth unemployment often has nothing to do with poor educational achievement (many unemployed youth have high school educations or university degrees), but is often caused by other factors, including lack of access to capital, rigid labour markets, skills mismatched to demand in the economy (for example construction and building trades), or a gap between personal aspirations and the true state of the country’s economic development.

But rather than despair, it is possible to show youth how to turn things around and use business skills to re-shape economies in their favor. Youth tend to bring to the economy energy and drive combined with new ideas and experiences calibrated to the demands of the 21st century. By harnessing this, youth can find a unique space in the marketplace. In turn, young people can lead in reviving damaged economies and making their countries wealthier and healthier. Many youth have grown up around the emerging digital economy and the use of mobile phones. Being comfortable with the 21st century digital economy will unleash many economic opportunities that favor youth.

The British Council says that “creative entrepreneurship is considered the most efficient model for youth in the developing world who are facing huge difficulties in finding employment”. The entrepreneurship or creative investment industry is one of the fastest-growing sectors in the world.

Understanding what works for youth business entrepreneurship has become a specialty in its own right. Using the media to teach skills and inspire youth to action is one proven approach.

One recent example is a successful television programme from the Republic of the Sudan. Called Mashrouy (mashrouy.com), it is modeled on reality TV programmes such as The Apprentice, which features serial U.S. entrepreneur Donald Trump (http://www.bbc.co.uk/programmes/b00q3fkq) and the BBC’s Dragon’s Den (http://www.bbc.co.uk/programmes/b006vq92), where contestants pitch their ideas to a panel of judges to see if they can get funding for their business idea.

In Mashrouy, 12 contestants battled it out to see who had the best business idea. They undertook various challenges and the original 12 were whittled down to three contestants. Live on air in December 2013, viewers voted for their favorite contestant and the winner (https://www.facebook.com/Mashrouy) received a prize of 200,000 SDG (US $35,211), while the second prize winner received 150,000 SDG (US $26,408) and the third prize winner received 100,000 SDG (US $17,605). All three were then taken to London in the United Kingdom to meet other creative entrepreneurs and receive valuable business advice.

The Sudanese show (http://sudan.britishcouncil.org/our-work/mashrouy) is supported by the British Embassy and the British Council, and is working with the Sudanese Young Businessmen Association and major Sudanese companies to spread the idea of entrepreneurship among the youth of Sudan.

Sudan suffered a brutal civil war on and off throughout the 2000s, leading to the partition of the original country into the Republic of the Sudan and the new nation of South Sudan in 2011.

Faced with Sudan’s serious youth unemployment – as high as 34 per cent – and a fragile economy, the TV show’s producers wanted to encourage youth to start businesses.

The contest was aimed at youth between 18 and 40 and appeared on the Blue Nile (http://bnile.tv/blue.html) channel.

“At a time of national economic hardship, it has kindled the imagination of Sudanese youth,” wrote journalist Isma’il Kushkush (https://twitter.com/ikushkush) in The New York Times.

For the show, a panel of experts picked 12 projects out of 2,500 applications. Each of the 12 finalists was given a chance to do a “pitch,” giving a quick summary of their business idea and trying to get the panel excited about the idea and its potential. The idea that generated the most excitement won.
The 12 pitches included an idea for an ostrich farm and a plan to export spicy peanut butter. The winner, 32-year-old Samah al-Gadi, wants to use a locally available weed-like river plant to make bags and furniture. She said she got up the courage to be on the show from a supportive mother.

“Amid ululations, screams and clapping, a jubilant Ms. Gadi raised both hands above her scarf-covered head, flashing victory signs,” The New York Times said. “Her mother, sitting at a dinner table, was brought to tears.”

The women-owned social enterprise Making Cents International (makingcents.com), based in Washington, D.C., USA, has been gathering resources on youth entrepreneurship since 1999. It has put together a custom “curricula to develop the mindset, skillset, and toolset that enable entrepreneurs and enterprises to participate in profitable markets; financial institutions to serve new populations; and individuals to obtain meaningful work”.  This is available in 25 languages. It also hosts the Global Youth Economic Opportunities Conference in Washington, DC, held this year from 6 to 8 October 2014 (http://youtheconomicopportunities.org/conference).

By David South, Development Challenges, South-South Solutions

Published: April 2014

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

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Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

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Popular Chinese Social Media Chase New Markets

China has a vast and growing market for the Internet and mobile devices. Over the past decade that market has been largely confined to China –  most businesses have had enough domestic demand and opportunities inside the country to keep them busy.

But now companies in China’s dynamic Internet and mobile sector are seeking out new markets outside the country. Both online shopping service Alibaba (alibaba.com) and Weibo (weibo.com), the Chinese version of Twitter (twitter.com), are seeking to list on the New York Stock Exchange. The excitement this news has generated shows how many people want to get a piece of the large Chinese market for technology, social networks and online shopping. It is also sending a chill through America’s Silicon Valley – home to the country’s innovative high technology sector – that they are missing out on China’s fast-growing marketplace. Many American services are banned from operating in China. Even more worrying for Silicon Valley, these home-grown Chinese companies, with the market sewn up at home, are now set to compete globally for customers using their increasingly deep pockets.

One example is Tencent (http://www.tencent.com/en-us/index.shtml), owner of popular Chinese social messaging application (app) Weixin (weixin.qq.com), known as WeChat (wechat.com) outside China. Used on mobile phones and smartphones, Weixin has gained 300 million users in just three years, becoming the dominant social messaging service in the world’s largest smartphone market. Its has been so successful that many rivals are trying to chip away at its customer base.

Weixin, pronounced way-shin, allows smartphone users to send messages and share news, photos, videos and web links with friends. One of its selling points is its claim to not store messages on its servers.

Building on its success in social networking in China, it is looking to expand in other markets, including Southeast Asia, Europe and Latin America. It also wants to grow its offerings in online payment and e-commerce.

One factor in Weixin’s success is the ability to send messages by recording a voice message rather than just typing in characters: very useful for non-Latin script users, and especially for Chinese-language users, who use thousands of characters in everyday communication.

One ambitious forecast claims Weixin could reach 400 million users and make US $500 million revenue within a year.

Cosmetics marketer Jenny Zhao, who uses an iPhone 5, told The New York Times: “I’m probably on Weixin six hours a day. A lot of what I do revolves around it.”

“I use Weixin every day,” said Zhang Shoufeng, a food and drinks seller. “My friends are on it and my boss is on it. We are talking about where to eat, where to hang out and where to meet for company conferences. This is how we communicate.”

Analysts believe Weixin has benefitted from not having to compete with banned-in-China American company Facebook (facebook.com).

“Even if Facebook had permission, it’s probably too late,” said Wang Xiaofeng, an analyst at Forrester Research. “Weixin has all the functionality of Facebook and Twitter, and Chinese have already gotten used to it.”

Tencent is an example of a wider trend: As Chinese companies and offerings have become stronger, wealthier and more innovative, they increasingly look to build their customer base outside China.

Founded in November, 1998, Tencent, Inc. has grown into China’s largest and most used Internet service portal. Its most popular services include QQ (QQ Instant Messenger), WeChat, QQ.com, QQ Games, Qzone, 3g.QQ.com, SoSo, PaiPai and Tenpay, as well as Weixin.

The company claims to put innovation at the heart of its business, with more than half of its employees devoted to research and development. The Tencent Research Institute, established in 2007 with RMB 100 million (US $16 million), calls itself “China’s first Internet research institute, with campuses in Beijing, Shanghai, and Shenzhen.” It has patents for technologies it has developed for instant messaging, e-commerce, online payment services, search, information security, and gaming.

Tencent was driven to innovate by a fear it could quickly become irrelevant in the information technology space. Weixin is also pioneering ways to book taxis, hotels and airline flights through the service and even ways to control home appliances.

“Chinese Internet companies are no longer behind,” said William Bao Bean, a managing director at the venture capital firm SingTel Innov8 (http://innov8.singtel.com/). “Now in some areas, they’re leading the way.”

By David South, Development Challenges, South-South Solutions

Published: April 2014

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=ohM9BQAAQBAJ&dq=development+challenges+april+2014&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challenges-published-april-2014

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

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The BRCK: Kenyan-Developed Solution to Boost Internet Access

Using the Internet in Africa has its challenges, as anyone who has worked there knows. Issues can include weak Wi-Fi signals, slow Internet service providers, electricity outages and power surges that can damage or destroy sensitive electronic devices.

Power surges (http://electronics.howstuffworks.com/everyday-tech/surge-protector3.htm) can occur for a variety of reasons but are usually a sudden surge in the current flowing to the wall outlet from the power mains. They are common in developing countries, and can be tragic for electronic devices.
Most electronic devices are designed for use in developed countries where people can take the power supply, and ubiquitous Internet access, for granted. This affects the way devices are made. Designers will assume many things are available to users and build the electronic devices accordingly. But for users in Africa and across the global South, what seems easy in the developed world is fraught with frustration and wasted time.

This is a big obstacle to economic development and places people in Africa at a disadvantage in the modern world of fast communications.

One initiative is out to transform this experience for the better with a made-in-Africa solution that is being modified based on real-world experience and user feedback.

The BRCK (brck.com) bills itself as “your backup generator for the Internet” and is intended to address the problems of finding a reliable Internet connection, staying online in a power blackout and saving devices from destruction when there is a power surge.

Anyone who has tried to use a laptop computer to upload some photographs in Africa will know the frustration felt when the Wi-Fi signal drops away. The BRCK hunts around for the strongest signal and grabs it so the user can carry on working.

Built to be robust and take knocks and bruises, it is a sleek, black plastic brick-shaped device with the letters BRCK elegantly embossed on the side.
The BRCK can function as a hub for up to 20 devices, with a built-in Wi-Fi signal able to cover multiple rooms (so a team can work off a single Internet connection), a battery that can last eight hours, a 16-gigabyte on board memory hard drive, and software to allow for remote management  by apps on other devices such as smartphones. While it is not able to speed up an already poor connection or increase low bandwidth, it can “scavenge” around to find the strongest signal and hop to it right away. It can work with Ethernet, Wi-Fi, and 3G and 4G networks.

If a blackout occurs, it quickly switches to the onboard battery without forcing a re-boot of the computer.

It has been developed in Nairobi, Kenya and the first plastic prototype of the BRCK device was milled at the Fab Lab Nairobi (http://fablab.uonbi.or.ke/) using a 3D fabricator machine.

The BRCK’s makers describe it as a tool “trying to create ubiquitous Internet” and an “enabler of the Internet of things.” The BRCK is designed around the changing way people work and access the Internet, frequently moving from place to place. People now don’t just rely on one device but have many – a mobile phone or smartphone, a laptop, a tablet, an iPod or other device.

A Kickstarter fundraising campaign (https://www.kickstarter.com/projects/1776324009/brck-your-backup-generator-for-the-internet) gives more details on the origins of the project and offers many ways to support the different stages of development, right up to mass manufacturing of the BRCK.

One application of the BRCK is for research. It could be deployed to gather data at a field site, then connect via the Cloud (http://en.wikipedia.org/wiki/Cloud_computing) to pass data back to a lab at a university in another country for analysis.

The BRCK is being built by Ushahidi (ushahidi.com), a non-profit technology company that makes open source software and made its name with the crowdsourced mapping platform it built during the post-election violence in Kenya in 2008. The Ushahidi platform has been deployed around the world since in many crisis situations.

Founded by David Kobia, Juliana Rotich and Erik Hersman, the Ushahidi team is focused on “building tools that improve the way information flows in the world.” It is about making tools to help people communicate in the most difficult places.

BRCK comes with a visually appealing website that makes excellent use of the BRCK’s ebony good looks.

The website boasts: “If it works in Africa, it’ll work anywhere”.

The ongoing development of the BRCK can be followed on the website’s blog: http://www.brck.com/2014/01/they-case-for-engineering-brck-in-africa-part-1/.

“The idea is to build a company around the product rather than just do a one-off product – and to gradually improve the product through new versions,” said BRCKs chief technology officer Reg Orton.

“Our engineers are based in Kenya now – we are not based in China, we are not based in the (Silicon) Valley. What that means for us we are able to go out there and (be) able to see the problems directly.”

The BRCK can be ordered online and will be available for sale soon, according to the website.

More on cloud computing trends from UK Web Host Review: https://www.ukwebhostreview.com/blog/cloud-computing-trends/

By David South, Development Challenges, South-South Solutions

Published: April 2014

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=ohM9BQAAQBAJ&dq=development+challenges+april+2014&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challenges-published-april-2014

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

This work is licensed under a
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Women Empowered by Fair Trade Manufacturer

There is sometimes a great deal of negativity surrounding the issue of manufacturing in Africa. Some claim the risks of doing business are too high or that the workers are not motivated enough. But one garment manufacturer is out to prove the skeptics wrong. It pays decent wages and gives its mostly female workforce a stake in the business in a bid to drive motivation and make it worthwhile to work hard.

Liberty and Justice (http://libertyandjustice.com), one of Africa’s newest fair-trade garment manufacturers, is drawing attention for the way it is transforming women’s lives. It is also giving opportunities to a group often ignored by employers: women over the age of 30.

Liberty and Justice has factories in Liberia and Ghana, and 90 per cent of its workers are female. The company says it pays 20 per cent higher wages than the industry norm, and gives employees collectively a 49 per cent stake in the enterprise.

The global fair trade market – in which producers are guaranteed a minimum fair price and goods are marketed under the Fairtrade logo – has been growing year on year since it was established in the late 1980s.

The brand and certification process is managed by the Fairtrade Foundation (fairtrade.net) and is considered the most recognized ethical mark in the world.

More than 1 million small-scale producers and workers around the world participate in the Fairtrade system. As of 2013, fair trade has become a 5 billion euro-a-year (US $6.79 billion a year) global movement.

The label can be found on more than 30,000 products, ranging from tea to bananas to sugar and chocolate. It benefits more than 1.35 million farmers and workers around the world.

Liberty and Justice specializes in “high-volume, time-sensitive, duty-free goods for leading American clothing brands, trading companies, and other importers who care about exceptional quality, on-time delivery, social and environmental impact, and geographic diversity.”

The company wants to “transform the apparel supply chain from worker exploitation and environmental degradation to partnership and sustainability.”

Liberty and Justice was established by Chid Liberty (http://libertyandjustice.com/#about), the son of an exiled Liberian diplomat. His life had been a privileged one living amongst Africa’s overseas diplomatic community.

“I thought Africans drove (Mercedes) Benzes and dressed up every day and went to the best schools,” he told Fast Company magazine. “It even messed up my orientation on things like race, because we had all different kinds of people working in my house as a kid – German, Indian, Turkish – and all of them were serving us in some way. So I just kind of grew up thinking that Africans were at the top of the food chain.”

Living in a prosperous bubble in Germany, he had an awakening to the real conditions in Africa when he was in the seventh grade: “When I read only 2 per cent of people have a telephone, I was so confused,” he said. “I started to really understand my place.”

After the death of his father, Liberty started to wonder about life back in Liberia. He had moved on to working in Silicon Valley in California, helping technology startups get funding. Inspired by Liberia’s President Ellen Sirleaf (http://en.wikipedia.org/wiki/Ellen_Johnson_Sirleaf) and the end of the country’s 15-year civil war, he thought: “‘All right, well, I think I can apply that skill to providing economic opportunities for women.’ And decided to come here and try, in an industry that I knew absolutely nothing about.”

In 2010 he and Adam Butlein founded Liberty and Justice fair-trade apparel manufacturer. The company now makes tops and bottoms for brands such as Prana, FEED Projects, Haggar and others in the US.

“We really try to be worker-focused,” Liberty said. “And we actually think that’s what gave us a cutting edge at the end of the day: having really devoted workers. People don’t really believe in these types of factories in Africa, because they believe that African workers aren’t motivated. I think that’s hogwash.”

The company faced a dilemma common to any manufacturing enterprise trying to make goods for the highly competitive global export markets. How to produce the garments fast enough? A consultant had advised them to only hire young women. But Liberty and Justice had hired women in their 30s, 40s and 50s. Rather than firing everyone, the company decided to invest in the workers’ skills and get productivity to where it should be.

“These older women really set the culture of the Liberian Women’s Sewing Project, our first factory,” Liberty said. “They come to work an hour early – we never asked them to do that – they pray and sing together before they get on the machines, they’re very serious about the details of how your uniform should look, and you just wouldn’t have gotten that out of a bunch of 19-year-old girls the first time.”

Liberty and Justice expanded to Ghana in 2012 and launched the Ghanaian Women’s Sewing Project. It had to adapt to how things are done in Ghana, and that was a steep learning curve.

But the company has learned a great deal about how to succeed in Africa as opportunities increase alongside growing wealth and incomes.

“You could easily get squashed in Africa if you don’t know the right people. You’ll just get sent down rabbit holes every day,” Liberty said.

“In Liberia, the World Bank reports that about 40 per cent of children are enrolled in school. Among the women for whom we provide jobs, 98 per cent of their children are in school. So to me it’s very clear: You give a woman the opportunity to work, and her priority will be putting her kids in school.”

And he believes this is just the beginning of something big. As LIberia recovers from civil war, it will lead to an economic and innovation renaissance that will filter out across West Africa.

“I really think that the opportunities for innovation are right here. And once we get the social finance opportunities right, I think you’ll see a little West African impact renaissance happening. There’s still a lot of work to do. I hope Liberty and Justice can be a small part of that.”

By David South, Development Challenges, South-South Solutions

Published: March 2014

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=xIzkBgAAQBAJ&dq=development+challenges+Cheap+Farming+Kit+Hopes+to+Help+More+Become+Farmers&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challenges-march-2014-published

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

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Global South Trade Boosted with Increasing China-Africa Trade in 2013

It was announced in January 2014 that China has surpassed the United States to become the world’s number one trading nation, as measured by the total value of exports and imports. This new economic behemoth also continued to grow its trade relationships with Africa.

US exports and imports of goods totaled US $3.82 trillion in 2013, according to the U.S. Commerce Department. China’s annual trade in goods passed US $4 trillion for the first time in 2013 (Guardian).

Zheng Yuesheng, a spokesman for China’s customs administration, told The Guardian that becoming the world’s number one trading nation was “a landmark milestone for our nation’s foreign trade development.”

Significantly for Africa, 2012 was also a record year for China-Africa trade, which reached 5 per cent of China’s total foreign trade and made up 16 per cent of all of Africa’s international trade, according to a new report from South Africa.

Consultancy Africa Intelligence (consultancyafrica.com), a South African-based organization with more than 200 consultants focused on “expert research and analysis on Africa” highlights the achievements of this strong trade relationship – and also some of its threats and weaknesses – in its report.

Trade between China and Africa has surged during the decade since China joined the World Trade Organization (WTO) (wto.org) in 2001, rising from around US $10 billion in 2000 to US $198.49 billion in 2012, according to China’s Ministry of Commerce. Ambitiously, it could reach US $300 billion by 2015, announced Cheng Zhigang, secretary-general of the China-Africa Industrial Cooperation and Development Forum (www.zfhz.org) (China Daily).

The World Bank reported South-South trade now surpasses South-North trade, meaning exports from developing countries to other developing countries exceed exports to wealthy developed countries. South-South trade experienced rapid growth in the 2000s, accounting for 32 per cent of world trade by 2011 (World Bank).

South-South trade and investment between Africa and lower-income and middle-income developing countries rose from 5 per cent in the 1990s to almost 25 per cent in 2010 (Consultancy Africa Intelligence). Before the 1990s, over 90 per cent of trade for Africa was with high-income or developed countries.

China is attractive as a trade partner for many reasons. One of them is the strong admiration for its success in lifting millions out of poverty through an aggressive growth strategy and rapid urbanization with big investments in education, science, technology, infrastructure – modern airports, ports, roads and rail – and research and development.

Since 1978, it is believed China has lifted 500 million people out of poverty, out of a population of 1.3 billion people (World Bank). Incomes have doubled every 10 years with average GDP growth of 10 per cent a year, meaning the country has almost reached all the Millennium Development Goals.

Building a trade relationship with China has led to Zambia’s copper mines running again, Gabon’s oil fields being re-explored, and Sudan becoming a major oil exporter to China. Angola, Democratic Republic of Congo (DRC), Equatorial Guinea, Republic of Congo and South Africa are all benefiting from exporting commodities to China.

The relationship has not been entirely beneficial, according to the Consultancy Africa Intelligence report. Some African industries, such as textiles, have suffered from competition with cheaper Chinese imports, leading to factory closures and job loses.

Non-commodity exports from Africa to China amounted to just 10 per cent of the trade total. Many of the contracts signed for projects also go to Chinese companies, the report found.

Renewed concern has also emerged over rising debt levels in Africa.

In summary, the report finds a growing trade relationship with China has brought to Africa commodity booms, growing GDP (gross domestic product), and lots of foreign investment. On the negative side of the ledger, there have been job loses due to cheaper imports, rising personal and government debt levels and an over-dependence on minerals for economic growth.

Across Africa, new infrastructure has emerged where it probably would not have come about under the continuing debt burdens from the 1970s and 1980s. The continent has received a shot of energy, but it remains to be seen whether governments can sustain this  economic jolt and make the wise choices that create African jobs and build liveable cities for the 21st century.

By David South, Development Challenges, South-South Solutions

Published: March 2014

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

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