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As the World Economic Forum on Africa focuses on shaping inclusive growth and shared futures in the Fourth Industrial Revolution – to explore ways the continent can mitigate headwinds like xenophobia to advance trade in its shared future, Commissioner for Trade and Industry at the African Union Commission (AUC), Albert Muchanga joins CNBC Africa&#8217;s Chris Bishop and Kenneth Igbomor for more.

Albert Muchanga on how mutual tolerance is key in trade, xenophobia & Africa’s shared future

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The President of Schneider Electric in Middle East and Africa, Caspar Herzberg, talks about operating in a current global economy that’s faced with trade wars, tariffs and protectionism.

Schneider Electric President Caspar Herzberg on how the company is disrupted by trade wars, protectionism

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Uber’s sub-Saharan Africa General Manager, Alon Lits, discusses with CNBC Africa’s Fifi Peters how Uber uses the country’s roadblocks as opportunities to grow the business in southern Africa and diversification.

Uber’s Alon Lits on looking at challenges as opportunities for growth

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The Founder and CEO of Java Foods, Monica Musonda talks to CNBC Africa’s Fifi Peters about the effects drought has in the food manufacturing industry and how it has been a difficult year due to food pricing adjustments but also keeping in mind customer affordability.

Java Foods CEO Monica Musonda on mitigating the effects of drought, producing affordable products

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Yofi Grant, the CEO of the Ghana Investment Promotion Centre joined CNBC Africa&#8217;s Chris Bishop and Kenneth Igbomor to explore how Ghana is positioning itself to investors at the World Economic Forum on Africa in Cape Town.

Yofi Grant on what makes Ghana attractive to investors

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Financial inclusion aims to bring more active participants into the economy, by making it accessible and affordable for customers to transact across countries and regions. But how can it play a role in transforming the economy? CNBC Africa spoke to Iain Williamson, Acting Chief Executive Officer of Old Mutual for more.

Old Mutual on financial inclusion, transforming the economy

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Customer needs have become a focus for businesses as they have been a shift in business behaviour to focus on the consumer rather than product in order to grow company revenue. CNBC Africa spoke with Karabo Morule, Managing Director of Old Mutual Personal Finance for more.

World Economic Forum: Old Mutual’s Karabo Morule on innovative solutions enhance financial inclusion

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The CEO of KOKO Networks, Greg Murray says Africa&#8217;s urban demand for cooking gas is a $40 billion market and he spoke to CNBC Africa&#8217;s Chris Bishop on the WEF Africa side-lines, about KOKO Networks recent partnership with Vivo Energy to distribute cooking fuel across the region. Greg is seeking ways of replicating the model throughout the continent.

World Economic Forum: Greg Murray of KOKO Networks on creating clean cooking fuel for Africa

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As South Africa grapples with a streak of violent attacks against foreign nationals, Kennedy Mandaza, Zimbabwe&#8217;s ruling party Zanu PF Secretary for Information and Publicity in South Africa, shared his views on the situation with CNBC Africa&#8217;s Chris Bishop.

Zanu-PF Spokesperson Mandaza condemns attacks against foreign nationals in SA

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The Minister of Telecommunications and Postal Services Dr Siyabonga Cwele and the Head of the World Economic Forum (WEF) Africa, Ms Elsie Kanza will interact with the youth as part of the Internet for All Initiative today in Soweto.

SA, WEF Africa launches Internet for All Initiative

Set against the backdrop of low growth, dire unemployment figures, and a huge infrastructure deficit – the theme of this year’s African <a href="https://www.weforum.org/events/world-economic-forum-on-africa-2017">World Economic Forum</a> (WEF) is “inclusive and sustainable growth”.
This is a familiar subject for policymakers. On both the regional and global stage it’s natural to speak in terms of market integration among groupings of nations to stimulate economic growth. Reducing bottlenecks to trade often serves as the focal point, with Free Trade Agreements (FTAs) typically the formal means of implementing these initiatives.
The idea behind all of this is that connected markets provide a larger base of customers into which companies can sell their products and services. And that, for their part, customers benefit from greater product diversity and value. This in turn creates a virtuous cycle in which a growing economy makes investment in the region more bankable. With greater access to funding, investment in needed capital projects can be accelerated, in turn reducing Africa’s sizeable infrastructure gap and stimulating inclusive growth.
Admittedly, this orthodox take on markets and growth is not firmly embraced across Africa. Rather, what remains prevalent is an emphasises on government intervention and the role of the ‘developmental state’ as seen in South Africa’s <a href="http://www.poa.gov.za/news/Documents/NPC%20National%20Development%20Plan%20Vision%202030%20-lo-res.pdf">National Development Plan </a>.
What’s not in dispute is the continent’s <a href="http://ftp01.economist.com.hk/ECN_papers/Infrastructure-Africa">infrastructure gap</a>. Road and rail transport costs in Africa are estimated to be about 50% greater than comparable regions in other parts of the world. And over 600 million people across the continent lack access to electricity while even greater numbers make do with sub-standard levels of drinking water and sanitation.
Estimates suggest that the continent needs as much as <a href="http://ftp01.economist.com.hk/ECN_papers/Infrastructure-Africa">$1 trillion</a> in invested capital over the next ten years to close the infrastructure gap.
The question is whether the WEF gathering can make a dent in this problem. In reading background studies to this year’s meeting, the forum seems more attuned to the world it would like to see, rather than the one at hand. To move beyond the “spin” the forum should address impediments to inclusive growth.
<h2>New solutions to old problems?</h2>
The WEF is not the first to have focused on market integration as a way to promote economic growth. The African Union Summit has recently taken steps to establish a continental <a href="https://theconversation.com/if-africa-is-serious-about-a-free-trade-area-it-needs-to-act-quickly-and-differently-70234">Free-Trade Area (FTA)</a> that would include all 54 African countries. This is on top of an alphabet soup of long established sub-regional groupings such as the East African Community, West African Community, Southern African Development Community (SADC). A grouping of these three FTAs stands as a Tripartite Free Trade Area covering a combined population of almost 600 million people.
Yet <a href="http://www.worldbank.org/en/news/speech/2015/12/14/deepening-african-integration-intra-africa-trade-for-development-and-poverty-reduction">trade between African nations</a> still represents only 12% of the continent’s total trade. This is far below levels seen in North America (40%), Asia (50%) and Western Europe (70%), and is often cited as an impediment to Africa’s economic development.
SADC’s recent history provides a useful perspective to the successes and failures of African FTAs. SADC was established in its modern form in 1992, having a mandate to promote integration of economic development programmes among member states. At its 2003 <a href="http://www.sarpn.org/documents/d0000492/P462_SADC_Communique_082003.pdf">Dar es Salaam Summit</a> it adopted an ambitious 15 year programme in which a free trade arrangement, customs union, common market and ultimately a regional monetary union were to be established.
While piecemeal progress has been made since then, the plan’s more ambitious aspects have been largely set aside. <a href="http://www.kas.de/upload/auslandshomepages/namibia/MRI2010/MRI2010_chapter8.pdf">Post mortems</a> cite a range of protectionist measures that are defeating its objectives. These include the reluctance of member states to wind back tariffs on goods and services, provisions promoting local content, subsidised industry assistance and visa restrictions.
The <a href="https://www.weforum.org/reports/the-inclusive-growth-and-development-report-2017">WEF</a> has replaced the language of FTA’s and customs unions with the call for “connecting markets, revitalising manufacturing, and integrating innovation”. The practical side of this focuses on industrial corridors in transport, energy markets and financial services and e-commerce.
Here too the SADC was ahead of the curve in terms of planning and adopting a regional infrastructure master <a href="http://www.sadc.int/files/7513/5293/3530/Regional_Infrastructure_Development_Master_Plan_Executive_Summary.pdf">plan</a> in 2012. This sector based “corridor” approach to development is meant to be rolled out across energy, transport, water and telecommunications.
But where the SADC has been quick to plan – it has fallen down in implementation.
<h2>Old problems stand in the way of new solutions</h2>
A report by the <a href="http://www.tips.org.za/files/report_on_regional_infrastructure_development_in_africa_tips_-_ellen_hagerman.pdf">Development Bank of Southern Africa </a> concludes that few measures to facilitate trade have yielded measurable results. National interests have tended to override regional objectives. Local and global protectionist trends have only made this more pervasive.
The <a href="http://www.sadc.int/files/5413/5293/3528/Regional_Infrastructure_Development_Master_Plan_Energy_Sector_Plan.pdf">SADC Energy Plan</a> may become the next non-starter in infrastructure development. So far, it has identified power generation and transmission projects costing between US$ 90 billion to over US$ 200 billion. No doubt some development finance will be allocated to these projects, but the bulk of the required investment is unlikely to move beyond countless feasibility plans.
Obtaining the hundreds of billions needed in power markets alone will require improved standards of governance and regulation. But member states often struggle in these areas, and comprehensive reform across the region seems an unlikely outcome until these fundamental issues are addressed.
<h2>Is rhetoric better than reality?</h2>
It seems incongruous that the WEF talks about the region as the least competitive globally, but follows with the observation that “fortunately, there are <a href="https://www.weforum.org/events/world-economic-forum-on-africa-2017">regional clusters</a> of global manufacturing excellence”.
This is not to discount clusters of excellence. But the WEF’s reference to an African Outer Space Programme within the context of growing a manufacturing base, and pointing to drones as a solution to the continent’s transport woes, is, at best, naive.
Hopefully the meeting will rise above the spin, and make a meaningful attempt at addressing the dire economic conditions affecting the lives of hundreds of millions of people across Africa.

World Economic Forum needs to move beyond spin if it’s going to help Africa

You don’t have to be long in any African city to feel the entrepreneurial energy on the streets. For those of us who grew up on the continent, it’s very much a fact of life. But for those visiting, perhaps for the first time, it can seem overwhelming.
There is no single reason, of course, for this bustle and energy. But a big part of it comes from the fact that Africa has the youngest population of any continent. On every street corner and in shops and offices in every neighbourhood, there are young entrepreneurs determined to make a living and build a business.
This demographic dividend could – and should – be a huge advantage for Africa. Six out of ten of our population are already under 24 and the proportion of young people is growing all the time.
By 2050, our continent will be home to nearly half a billion people who have either just entered or are about to enter the labour force. Their talent and enthusiasm can be the motor to accelerate Africa’s development.
Look at the way young Africans are adopting and adapting technology for their own use and to create new business opportunities. Lagos – a city I know very well – is an extraordinary hub of tech start-ups and similar centres are sprouting up across the continent.
We are seeing the same creativity in many other sectors including mass market consumer goods, financial services and health. In a continent which has not seen the large increases in GDP in recent years translated into new jobs, this should be a powerful driver of both development and employment.
But it has too often not had the impact it should with lack of finance among the major barriers which need to be overcome. Good ideas are being wasted because the money is not there to back them while successful start-ups are being starved of the resources they need to grow.
Small and medium-sized businesses, of course, complain in every continent – often with reason &#8211; about their difficulty in accessing finance. But African entrepreneurs have more reason than most to protest.
Why is this the case? In many parts of our continent, banking is not as well developed or mature. Lending risks can be more difficult to assess. Competition for available funding is greater, with governments, who are safer bets, also keen to borrow and effectively crowding out the private sector. When financing is available, interest rates are high.
It explains why there is plenty of anecdotal evidence from Africa’s entrepreneurs that only financial support from family and friends enabled them to succeed &#8211; no matter how good their idea or how well their young business was doing. The result is that, despite all this energy, African countries remain well down international league tables of entrepreneurial activity.
The difficulty of accessing capital is not the only reason for this poor showing. Entrepreneurs also suffer from a lack of wider support and training. The professional skills needed to help take a business to the next stage can be hard to find.
FOR MORE WEF AFRICA CONTENT READ:
<a href="http://cnbc.africa/category/insights/world-economic-forum/wef-africa-2017/">WEF AFRICA 2017</a>
But other fast-developing regions such as India, where TPG does a great deal of work, have been more successful in creating the right environment for entrepreneurs to thrive.  The Indian government has launched actions plans to support entrepreneurs and provide subsidies, <a href="http://startupindia.gov.in/">Startup India</a> and <a href="http://digitalindia.gov.in/">Digital India</a> are just two examples.
The good news is that there is a widespread recognition in Africa of just how important it is to do more to harness the entrepreneurial spirit in our continent. African governments along with international institutions such as the African Development Bank and World Bank and NGOs all have initiatives in place.
There is also a big role for private equity to help fill the gap in funding. But if it is to have the impact needed the approach must be flexible, ready to back businesses of all sizes and across their entire life cycles. It has to think small as well as big and be focused on the long-term.
This is the approach, tailored to the needs of different African markets, at the heart of the partnerships being forged through TPG Growth’s investment activities in Africa. These investment vehicles allow us to spend capital effectively at whatever level needed and build long-term relationships so we can provide not only funding but also wider support.
It is an approach which helped TPG play a big part in supporting the entrepreneurial- led tech revolution on the US West Coast. We build our reputation in backing small companies which have gone on to become big names.
It is a long way from California to Cape Town, Lagos and Nairobi. But what they share is the strength of the entrepreneurial spirit. The challenge is to help Africa’s army of young entrepreneurs turn their ideas into successful businesses not just in their city, country or continent but, in time, across the world.
*<a href="https://www.tpg.com/team/who-we-are?title=Yemi+Lalude">Yemi Lalude</a> is the managing partner of TPG Africa and of the TPG/Satya partnership. He is Nigerian and was the founding partner of Adlevo Capital previously. This is his first op-ed.
WEF Africa is currently taking place in Durban. Watch our coverage from 3-5 May 2017

Op-ed: Africa’s start-ups are booming but more needs to be done

Innovation. While this seems like a buzzword, there is certainly potential waiting to be unlocked – our problems and challenges can become our opportunity and with the rate of technology innovation, there is no doubt that growth can be catapulted by new ways of doing things.
With a focus on encouraging intra-Africa business and the need to fast-track growth and development, there is no doubt that some focus is needed – focus on key areas that form the cornerstone to all economic development. Africa is presented with a number of challenges, and with that, opportunities. However, these opportunities can only be unlocked, if we tackle them systematically and if we focus on the core of what drives an economy – its people, its ability to innovate and thereby its ability to improve growth.
In fact, leading global summits taking place over the next month or two are all steering conversations in this direction. It is about unlocking regional growth in Africa, understanding our demographics and how they can work for us, and developing solid strategies to mitigate the skills gap and drive forth sustainable job creation opportunities – through encouraging innovations and enabling a better Africa.
At the outset, we need to focus on unlocking regional growth, finding ways to work together – across Africa. Some of the key questions that need to be addressed here however, include: what are policy makers currently doing and what can they do better, similarly, what are industries doing and what can they do better?
The answer? Innovation. While this seems like a buzzword, there is certainly potential waiting to be unlocked – our problems and challenges can become our opportunity and with the rate of technology innovation, there is no doubt that growth can be catapulted by new ways of doing things.
Africa has very often done things differently, leapfrogging the banking sector with the advent of online and mobile banking, for example, and using innovation to create growth and opportunities. This is evidence of the power of technology and in the coming years more focus needs to be placed on harnessing the power of what new technologies can offer and, as industry players, finding ways that we can better use it to create opportunities.
Organisations should start thinking now about what the implications of technology are on their own businesses. Core to this is understanding the impact it will have on the workforce. Statistics1 indicate that one of the top 5 labour market shifts that are affecting strategy include the changing workforce, at 43%, driven strongly by workforce technology. The automation of services is a key change that we are, and will continue to, witness. While 39% of employees demonstrate concern about their position becoming obsolete as a result of such technology, it is certainly not necessarily the case.
While technology is able to replicate what once was unique to human skill in many instances, technology is complimentary and, in Africa, where the rise of technology has happened rapidly, this is certainly no different. It is more about the intel that can be derived from such technology that will change the way we work and define specific job roles – using big data derived from technological processes to make informed decisions. The human element cannot be ignored, however, and people will still form part of the economy of the future – it is more about adding additional value to what would have been a transactional process.
The second key element of focus across Africa is strategies that we should be looking at to improve job creation. While we know that Africa is rife with unemployment and an under-skilled labour force, there are certainly things we can, and should, be doing now. Job creation in a changing world means encouraging entrepreneurship and as such, this is a key pillar and &#8211; as it comes with numerous barriers to entry &#8211; it is up to governments and the private sector, alike, to really harness the benefits that good entrepreneurs can offer the economy and for the improvement of the local workforce in Africa.
The question is, what can we be doing immediately to make this change?
The continent is entrepreneur-rich and so, it is no longer about creating more space in an organisation for everyday functions, but rather about creating a platform for entrepreneurship – servicing your organisation with these exact small businesses. This will mean helping these start-ups to formalise their work and create a sustainable business over time. Business incubation and leveraging what bigger business has available to it for the development of entrepreneurs and start-ups is key to such growth. In fact, it is merely about simplifying the process, giving smaller businesses access to technology that enhances their opportunity for success, and coaching them around how to grow their business – however this seems to be one of the major stumbling blocks in Africa.
Research indicates that 80%2 of South African companies, for example, are using contingent, intermittent, seasonal, or consultant employees within their businesses. This indicates a definite shift on the continent and again demonstrates the need for the change in policy. However, this is the challenge – policy is not aligned to achieving such entrepreneurial growth.
With such a young African demographic, we have to ask ourselves, in what way does our demographics give us an advantage. With 59%2 of executives stating that Millennials entering the workforce are impacting workforce strategy, there is no doubt that – as business and government – we need to start thinking about what we should be doing differently to harness this demographic and drive new job opportunities.
As such entrepreneurship also has a pivotal role to play in skills development and workplace equality. If the skills are not available, we need to encouraging self-learning, life-long learning and skills transfer. The easiest way to do this is through technology, as it creates an opportunity to carry skills across boundaries – making them accessible in a particular country.
Proper online, virtual learning needs to be enhanced. Cross-border learning, backed by reputable organisations. Africa needs to create lifelong learning opportunities per country in Africa to truly harness the power of skills transfer and upliftment. In fact, in Africa there are already examples of this – like the Africa Leadership College and University in Mauritius. We need more organisations like these across Africa – if we are to witness a big jump in skills development and cross border learning. Furthermore, business funding to create viable joint venture education programmes will go a long way in driving such programmes – where proper skills ironically, is central to business success in Africa.
While the above all lends to the growth and development of the continent, Africa cannot ignore the key basic requirements that all African economies need to address as a pre-requisite to successful innovation and job creation. This includes: the development of robust education, healthcare and infrastructure programmes that will enable innovation to thrive and, secondly, strong cultural shifts with regards to economic participation of women and youth, the improved pace of economic diversification and strong economic and political leadership.
With this said, Africa is rife with opportunity and, despite strong economic headwinds expected into 2017, with a focus on these elements, the continent has a real opportunity to witness the change that is so longingly required – a change in policy, process, culture and the drive towards innovation is at the core of Africa’s opportunities.

Technology set to drive job creation, innovation and skills into Africa

(DURBAN) When the first of more than 1000 delegates, expected at this World Economic Forum Africa gathering in Durban, began arriving on the eve of this conference the temperature was 25 degrees and the locals said it was chilly. Most who live this close to the Indian Ocean are use to 30 degrees plus for most of the year.
For the next three days, in Durban, the interest in the economies of Africa is likely to be running hot.
Organisers say more than 100 countries from around the world will be represented at this year&#8217;s WEF Africa compared to 70 at last year&#8217;s WEF in Rwanda. Some of the surprise attendees this year is the German Finance Minister &#8211; who is bringing a plane load of CEOs with him- and the deputy leader of Singapore.
There will also be a strong contingent of African leaders in Durban. Zimbabwe President Robert Mugabe will attend his first WEF since Tanzania in 2010. Yoweri Museveni, the leader of Uganda, has also confirmed along with Edgar Lungu of Zambia and King Mswati of Swaziland.
For more read: 
<a href="http://cnbc.africa/insights/world-economic-forum/2017/05/02/world-economic-forum-preview-africa-hub-opportunities-waiting-unlocked/"> 
World Economic Forum Preview: Africa – a hub of opportunities, waiting to be unlocked!</a>
<div class="simple-thumb"><a href="http://cnbc.africa/insights/world-economic-forum/wef-africa-2017/2017/05/02/wef-africa-preview/">The World Economic Forum roadshow lands in Africa</a></div>

Zimbabwe President Robert Mugabe to attend first WEF since Tanzania 2010

Changing the way Africa employs, educates and manages existing or potential employees is set to be a sure focus.
2nd May 2017; The global economy is no doubt facing some major challenges. Sluggish growth, leading to stagnant global trade, subdued investment and increasing policy uncertainty world-wide, are just a few. Further to this, with economies worldwide on the cusp of a fourth industrial revolution, which is expected to drive significant change to global industries and business models, there is also major concern around jobs of the future, and potential job loss – with pressures mounting on industries to drive innovation, harness technology and to create a new way of working and growing.
With the World Economic Forum on Africa set to take place from the 03rd – 05th May 2017, the question has to be raised – what is Africa’s stance and what are the key elements that can be expected to, and should be, brought forward this year?
Kunle Elebute, National Senior Partner, KPMG in Nigeria and Chairman, KPMG West Africa, says; “While Africa is presented with a number of challenges – some closely aligned to the global view and others completely unique, the continent also holds many opportunities for future growth. However, these opportunities can only be unlocked, if we tackle them systematically and if we focus on the core of what drives an economy – infrastructure, its people, and its ability to innovate and improve growth.”
Africa’s growth and development is intimately linked to infrastructure development on the continent, and in many instances, the lack thereof.
In fact, possibly the biggest obstacle for the continent to adapt to this next revolution is the lack of sufficient infrastructure. It is well known that there is a direct correlation between infrastructure and; building or accessing markets, workforce productivity and – generally – economic growth and social development. However, the reality in Africa is that it faces a number of key challenges within this sector including:
<ul>
<li>Economic hubs or nodes are geographically dispersed, where there are 1000’s of miles of very rural land in-between them.</li>
<li>There have been very few collaborative strategies, planning or development of cross-border infrastructure projects – where rather, most countries have been focused on what they need to do in-country to improve infrastructure networks</li>
<li>There are limited funds available to fund long-term development infrastructure projects, or to maintain the ones that are built. This has left a financing gap in this sector, perpetuating bottlenecks that make these projects less attractive to investors – both foreign and local</li>
</ul>
“Addressing these key issues and devising collaborative plans that focus on regional integration and cross-market support will be critical this year,” continues Elebute.
Furthermore, as we start moving more rapidly towards the Fourth Industrial Revolution, we need to look at the impact of digital transformation. This sector bodes immense opportunities to further bridge the digital divide between emerging and developed markets, as well as provides great opportunity to support and advance the millennial generation and entrepreneurs in Africa – the future business owners and leaders. Adapting to the Fourth Industrial Revolution therefore is a strategy that can be more inclusive, as it will empower African states to harness the technology and the skills available to them, as well as enable these states to continue to form part of the connected, global economy.
Such a movement would need to encompass key strategies, underpinned by significant investment into R&amp;D on the continent, a realignment of education to increase talent pools and skills transfer and the opening up of cross-border trade – making business in Africa easier and less complicated to stimulate growth.
To this end, Innovation and job creation also play a pivotal role in the economic development of the continent and, if we consider that Africa is facing strong headwinds, there is no doubt that a stringent focus will be placed on these two areas in this year’s WEF conference. It is about unlocking regional growth in Africa, understanding our demographics and how they can work for us, and developing solid strategies to mitigate the skills gap and drive forth sustainable job creation opportunities – through encouraging innovations and enabling a better Africa.
Continues Elebute, “Africa has very often done things differently, leapfrogging the banking sector with the advent of online and mobile banking, for example, and using innovation to create growth and opportunities. This is evidence of the power of technology and in the coming years more focus needs to be placed on harnessing the power of what new technologies can offer and, as industry players, finding ways that we can better use it to create opportunities.”
This year’s WEF will get organisations thinking about the implications of technology on their own businesses. Core to this is understanding the impact it will have on the workforce across Africa. Statistics1 indicate that one of the top 5 labour market shifts that are affecting strategy include the changing workforce, at 43%, driven strongly by workforce technology. This is scaring employees and employers alike however, it is more about adding additional value to what would have been a transactional process than replacing the human element. Elebute indicates that this is one of the definite shifts we will see into the next year and beyond.
Nhlamu Dlomu, KPMG Executive Board Member, Partner, Head of People and Change, agrees and indicates that Africa has been doing the same thing for years and certainly, the continent is on the verge of seeing significant change.
“Changing the way Africa employs, educates and manages existing or potential employees is set to be a sure focus. And entrepreneurship is at the centre of this – harnessing the 59% of millennials who are entering the job market and demanding a different workforce strategy, using entrepreneurs to provide core business functions instead of expanding the business head count and creating opportunity for skills transfer and development – across and inter-Africa.” says Dlomu.
Africa is on the brink of a workforce revolution – driven by technology and new job seekers – and it is now that policies need to be adapted, businesses need to realign what they once knew and &#8211; as a collective &#8211; the continent needs to define new strategies to move forward, with conviction.
“Africa is a massive continent and more governments therefore need to start thinking smartly around their urban areas, planned infrastructure projects, job creation and the power of connectivity and digital transformation – as this can significantly reform their strategies; towards investment and development that will underpin their adaptation to the Fourth Industrial Revolution, and will empower and enable their nations to leapfrog,” concludes Elebute.

World Economic Forum Preview: Africa – a hub of opportunities, waiting to be unlocked!

Ed Stoddard | JOHANNESBURG
Illicit capital flows into and out of developing economies ranged from $2 trillion to $3.5 trillion in 2014, with Africa the region most vulnerable to the flight of capital needed for investment and other purposes, according to a new study.
Released on Monday by Washington-based think-tank Global Financial Integrity (GFI), the report comes before the World Economic Forum on Africa in Durban this week, where the region&#8217;s development and financial challenges will be in the spotlight.
It shows that combined, illicit outflows and inflows amounted to 14.1 to 24 percent of total developing country trade from 2005 to 2014, the last year for which comprehensive data are available.
<blockquote>&#8220;The massive flows of illicit capital shown in this study represent diversions of resources from their most efficient social uses in developing economies and are likely to adversely impact domestic &#8230; economic growth,&#8221; the report said.</blockquote>
The GFI report looked at both illicit outflows, which rob poor countries of capital that could be taxed or invested, and illicit inflows, which could point to cash being funnelled to tax havens or to be laundered.
In 2014, illicit outflows were estimated to have drained $620 billion to $970 billion from developing economies. Illicit inflows were put at $1.4 trillion to $2.5 trillion.
Over the decade of 205 to 2014, GFI found, sub-Saharan Africa led all regions for illicit outflows, estimated at 7.5 to 11.6 percent of its total trade.
Some development economists have argued sub-Saharan Africa &#8211; widely regarded as relying on aid inflows and the charity of industrialised nations &#8211; is actually a net exporter of capital to the rest of the world because of these trends.
Developing Europe &#8211; mostly comprising Eastern European and former Soviet republics, including Russia &#8211; was the leader for illicit inflows, estimated at 12.4 percent to 21.0 percent of the region&#8217;s total trade.
Illicit capital is mostly channelled through mis-invoicing of trade &#8211; exports and imports are booked at different values to avoid taxes or to hide large transfers of money.
(Editing by Larry King)

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