An edited version of this article appeared in the Opinions and Analysis section of Business Day (South Africa) on 23/12/2021: https://www.businesslive.co.za/bd/opinion/2021-12-23-george-philipas-infrastructure-spending-in-africa-is-at-a-crossroads/
The pandemic has certainly not been kind to investment prospects in Africa. Lead by a slowdown in infrastructure investment from China, foreign direct investment (FDI), already heading south before the onset of the pandemic, fell by 18% in 2020. More ominously, greenfield investment, investment in new projects, fell precipitously by 63% according to the Global Investment Trends Monitor released by UNCTAD in Jan 2021, the largest regional fall on the globe last year. The proverbial onslaught culminated with the announcement earlier this month at the recent Forum of China-Africa Cooperation conference (FOCAC) in Dakar, Senegal that plots Sino-African relations for the next three years, of a vertical drop in investment from China from US$ 60 billion to US$40 billion.
Continue reading “Infrastructure spending in Africa is at a crossroads”
An edited version of this article appeared in the daily weekday ed of Business Day (South Africa) on 18/10/2021:
There has been a flurry of activity by South African companies on the continent recently. From Vodacom’s successful bid as minority partner for the Ethiopian telecommunications license to the Memorandum of Cooperation (MoC) between South African Airlines (SAA) and Kenyan Airways (KQ) that is intended to sow the seed for a pan-African airline. In fact, South African companies have made great inroads into Africa over the last two decades or so and seem to dominate the African business space. According to a 2018 report by the Boston Consulting Group, South African companies make up 32 out of the 75 African multinationals active on the continent. And according to a recent 2021 fDi Intelligence report, a leading research agency and a division of the Financial Times, South Africa is the second biggest investor on the continent from Africa or the Middle East, behind only the UAE.
But there is another side to this unquestionable success, one punctuated by regular missteps and blunders that have been repeated to the great detriment of a significant number of South African companies in Africa.
Continue reading “Failure shows SA Companies should reconsider African strategy”
I’ve had a few heated debates in the past few days about how I appear to care more about the economic fallout of Covid-19 than the mounting death toll from the virus itself.
Of course I care, and especially about the looming global health system crises too. But looking to the bigger picture, I also know that in the long-run, for better or for worse, this virus will be under control in a about a year’s time. Whereas the economic fallout, and by extension the social and political fallout could last decades.
Continue reading “The Covid-19 Medical Emergency is an Unprecedented Crisis, but it is the economic fallout that should truly petrify us all”