Claire Schaffnit-Chatterjee

Africa is drawing a variety of investors in search of natural resources and fast-growing consumer markets. They are eager to benefit from some of the highest economic growth rates in the world – as two-thirds of the countries in the continent will grow at over 5% over the next 5 years – and favourable demographics. Africa’s fast-growing, very young and increasingly urban population is currently estimated at 1.2 bn and set to exceed 4 bn by 2100, when around 40% of the global population will be living in Africa, based on projections from the UN. As the EU and China remain Africa’s main trade and investment partners and President Obama has given momentum to the US-Africa partnership, India’s involvement with Africa has been growing steadily. It is set to intensify further, based on the synergies of needs and interests. [more]

There are good reasons to think that the revival in African growth over the last decade has been based on much more than the super cycle in commodities and demand from China. Over the next decade, however, the region’s centre of economic gravity is likely to shift towards the less resource-dependent economies in East Africa. East African countries are economically more diverse and beginning to form a relatively large and well-integrated regional market. Therefore, beyond the likely improvement in their terms of trade, they appear better-placed to deliver the structural economic transformation that will be needed to create jobs for the fast-growing working age population. [more]

Since its outbreak in December 2013 in Guinea, the Ebola epidemic in West Africa has resulted in over 3,000 deaths out of 7,000 cases, according to the World Health Organization. The actual figure could be higher since there is evidence of substantial under-reporting of cases and deaths. This outbreak has been spreading considerably faster than previous ones, mostly because it has reached urban areas in Liberia and Sierra Leone. It could spiral to over 500,000 infections, and potentially many more, by the end of January if control measures do not improve, according to the US Centers for Disease Control and Prevention. In contrast to this worst-case scenario, mobilisation by the international community as seen recently and increased education in affected countries could almost end the epidemic. [more]

Forecast to grow at 8% per year over the next five years, Mozambique is benefiting from mineral wealth and infrastructure development following a 30-year civil war and from a favourable macroeconomic environment. However, the southern African country has a very low GDP per capita (USD 655). It is now facing the challenge of developing its wealth of natural resources, particularly the gas sector, so that this benefits the population at large and leads to sustainable growth. [more]

What about agriculture in Sub-Saharan Africa? Is it important to develop the sector or should efforts focus elsewhere? We argue that investments in agriculture and agribusiness are needed and that, ensuring efficient and sustainable agricultural production, they can drive economic growth and poverty reduction as well as fulfil both domestic and global demand for agricultural products. SSA offers both huge agricultural potential and fast-growing markets and there is increasing investor interest along the whole food supply chain. Challenges remain in terms of infrastructure, trade, skills and financing but there is increased commitment from governments and other partners for a sector with strong growth opportunities. [more]

The East African country has been experiencing impressive economic growth: double-digit between 2004 and 2010, it has averaged 8.7% annually over the past five years thanks to the expansion of agriculture and services. Ethiopia has thus been the fastest-growing economy in Sub-Saharan Africa (SSA). Projected at 6.5% annually over the next five years, it is set to remain on a robust growth path. [more]

Sub-Saharan Africa (SSA) is growing fast with annual real GDP growth of over 5% in the last decade, second only to developing Asia. Medium-term growth remains robust, on the back of a recovering global economy, still high commodity prices and investment in productive capacity. SSA is at a crossroads. It has a window of opportunity to capitalise on its youth surge and resource wealth to create employment and inclusive growth. Political change and reforms are key. It will not be easy but democratisation, urbanisation and virtual connectedness bode well. Investments in infrastructure/logistics and education, economic diversification, market reforms and improved governance are critical for long-term success. [more]

The former Portuguese colony has developed from an agriculture-based economy into one of Sub-Saharan Africa’s main oil and mineral producers and its third largest economy, with strong growth potential. Relative political stability after a 27-year civil war ending in 2002, high foreign investment (current FDI inflows are estimated at USD 15 bn) and strong government spending have propelled Angola onto a robust growth path: annual real GDP growth has averaged 11% over the past decade, it is estimated at over 8% in 2012 and around 7% in upcoming years. The government has embarked on a series of reforms towards economic diversification and more inclusive growth [more]

Is there a global rush for farmland? Which countries are of interest, to whom, and what are the main drivers? Can it contribute to food security? What are consequences for host countries? We discuss in this paper risks and opportunities associated with foreign investment in farmland as well as ways forward - at a time when there is a strong case for private investment in agriculture. [more]

Migration can be an effective way of reducing geographical imbalances on the labour markets. Together with politicians and the larger society, companies have a key role to play in integrating migrant workers. It is also in the interest of companies to make good use of the international pool of qualified labor. With 20% of the population being either immigrants themselves (10%) or second-generation immigrants (another 10% according to the EU Commission) – both in Germany and France – the costs of not fully integrating this potential are high, both for business and society. [more]

Agriculture is both a major emitter of greenhouse gases and a potential key contributor to the mitigation of climate change. Besides lowering emissions, climate-friendly agricultural practices can play a significant role in sequestering carbon. So why is the current debate on mitigating climate change largely ignoring the potential of agriculture and land use? In this paper, we analyse various approaches to realising this potential and discuss some of the challenges involved. We also indicate actions required for transitioning towards a low-carbon agriculture. We show how governments, agricultural producers, the food industry, consumers and the financial sector are all key players in shifting policy and investment priorities. [more]

Food prices are reaching record highs, which raises concerns about spending capacity, hunger, political turmoil and global growth. The current surge in food prices is due to the combination of short-term supply shocks and longer-term structural factors leading to a tight demand-supply balance. In this paper we review the main considerations regarding food price movements and include a discussion on the impact of speculation. [more]