Business News

4 ways Africa can achieve a manufacturing renaissance

Manufacturing production in Africa more than doubled over the past decade. For the 50th anniversary of the creation of the Organisation of African Unity (now the African Union), African leaders adopted the Agenda 2063: The Africa We Want– a vision for a prosperous Africa based on inclusive growth and sustainable development. One of the defining features of this agenda is the structural transformation of African economies towards achieving shared growth, decent jobs and economic opportunities for all. So far, the structural transformation that shifts productive resources from agriculture and mining to manufacturing – which has helped many countries achieve greater prosperity – has bypassed most African countries. According to a recent International Monetary Fund report, the limited structural transformation in Africa has not translated into more jobs, because the manufacturing sector itself requires extensive reform. Therefore, what Africa needs is a manufacturing renaissance, with more local value-addition that would create more and better-paid jobs, and contribute to fulfilling the aspirations of the Agenda 2063. It could make African countries become more resilient to economic shocks and less dependent on natural resource exports. Africa can achieve this ambitious goal if it taps into available opportunities, while mitigating the challenges it faces. There are already several positive signs. Overseas Development Institute datashow that African manufacturing production, exports and Foreign Direct Investment (FDI) have developed positively over the last decade. Between 2005 and 2014, manufacturing production within Africa more than doubled from $73 billion to $157 billion, growing 3.5% annually in real terms. Some countries, such as Uganda, Tanzania and Zambia, have achieved more than 5% annual growth in the recent past. Overall, sub-Saharan African manufacturing exports almost tripled between 2005 and 2015 to more than $140 billion. A reduced reliance on the traditional OECD market is also clearly visible, with China and […]

This is how a universal basic income can end financial exclusion

A customer withdraws money from a Bank of Baroda automated teller machine (ATM) in Mumbai, India The main argument for a universal basic income (UBI) is that it would reduce poverty and income inequality. Yet UBI advocates often overlook a range of other potential benefits. Digital UBI payments can bring people into the financial system and build their financial capability, unlocking a range of development benefits for citizens and governments alike. Take Mongolia for example. In 2014, 92 percent of adults had a bank account—by far the highest share in the developing world. (By comparison, only 43 percent of adults are banked in similar lower-middle income countries.) Young adults, a population often financially disenfranchised, see some of the most impressive usage of financial services; account ownership among Mongolians aged 15-24 years old is 93 percent. Smart policies, digital payments, and greater inclusion of traditionally marginalised groups all helped Mongolia achieve nearly universal account ownership. The Mongolian Human Development Fund (HDF) distributes revenues from the mineral and mining sectors with the objective of redistributing wealth. A flagship program funded by the HDF is the Child Money Program (CMP), launched in 2012. As part of CMP, the government makes monthly electronic deposits into savings accounts opened in children’s names, helping to ensure that all Mongolians will eventually be banked. The program pays about $10 a month to all children aged 0 to 17, thus ensuring that the parents of every newborn open an account in their child’s name. Alongside South Africa, Mongolia has one of the developing world’s largest shares of adults receiving government transfers—35 percent—with two-thirds of these payments made directly into bank accounts. Seventy percent of account owners in Mongolia make or receive any payment through their account, while in East Asia and the Pacific as a whole the share is 50 percent. These accounts […]

Oslo just decided to get rid of its parking spaces

Oslo had hoped to be the first major European city to ban cars, but a furious backlash forced the council to think again. In October 2015, a progressive political alliance gained control of Oslo’s city council and announced its aim to make it a greener capital. The Guardian reports that it committed to slashing greenhouse gas emissions to 95% of 1990 levels by 2030. Transport accounts for 61% of the city’s CO2 emissions, making it the obvious place to start. The council notes: “The transport sectors will require the most determined efforts moving forward.” The Norwegian capital already has the world’s highest proportion of electric vehicles, and runs one third of its bus fleet on biogas and biodiesel. So the city looked to private cars, which produce almost 40% of Oslo’s transport emissions. Initially it proposed a car-free zone: a 1.7km sq area in the centre of the city. The vast majority of the 1,000 residents in this area – almost 90% – do not own a car. Just 7% commute by car, compared with 64% who travel to work on public transport, 22% on foot and 7% by bike. Oslo’s proposed car-free zone Residents, however, felt bullied while businesses feared the plans would create a “dead town”. Beathe Radby Schieldrop, communications manager for the city’s trade association, the Oslo Handelsstands Forening (OHF), told the Guardian: “It’s too much and too soon. Shop owners and visitors need time to adapt.” The council took note and has settled instead on getting rid of all of the 650 on-street parking spaces in the centre. It will then extend pedestrian networks, close several streets to private traffic, and build 40 miles of bike lanes. The council has not completely abandoned the idea of banning cars. The plan is to see if the removal of parking and restrictions […]

What China’s soccer spending teaches us about globalisation

On 4 June 2002, the national football team of the People’s Republic of China took to the field for its first ever match in the FIFA World Cup. For the few thousand Chinese fans in the stadium, and the 500 million or so watching at home, the fact the team had made it there at all was considered the greatest accomplishment in China’s football history. ‘The Great Wall’ would go one step further if they were able to score a goal during the tournament. They didn’t. Playing against Costa Rica, Brazil (the eventual tournament winners) and Turkey, China finished bottom of their group and conceded nine goals. They haven’t been back to a World Cup since. Failing to qualify in 2006, 2010 and 2014, the team could still make it to Russia in 2018 – but even if they don’t, there’s still plenty of time for China to realise its ambition of winning a World Cup by 2050. If they were to achieve that lofty goal – some cynical followers of the England national team might even bet on China lifting the trophy before the Three Lions do so again – they would very likely be thanking their current President, Xi Jinping. A professed football lover, President Xi wants the country to become a global leader in world football, and has pledged the money to make it happen. This includes setting up soccer academies, hiring coaches from abroad, and even offering citizenship to foreign players. But Chinese football fans might also be thanking globalisation. Globalisation, the process by which markets, people, goods and culture become more integrated, is already exemplified in European football. The Dubai-based airline Emirates sponsors some of history’s most decorated teams, including in England, Spain and France. More than 20% of Premier League teams are run by American owners, and over […]

Australia can’t lose in the global race for cheaper, cleaner energy

Paul Graham, Chief economist, CSIRO energy, CSIRO. Despite our sometimes heated national debate about our energy future, Australia is well positioned to benefit from innovative low emission technologies. No matter which avenue we take to cleaner energy, our energy-rich resources means there are opportunities for Australian businesses – and cheaper energy for Australian consumers. That’s the conclusion reached by CSIRO in our Low Emissions Technology Roadmap, which outlines potential pathways for the energy sector to contribute to Australia’s emissions reduction target. Our target under the Paris climate agreement calls for a 26-28% reduction of emissions by 2030 from 2005 levels. Our analysis also considers how the energy sector could meet the more ambitious aspiration of avoiding 1.5-2℃ global warming. Looking past the political wrangling Perhaps one of the reasons the energy debate in Australia is so vehement is that, with the exception of oil, we are rich in energy resources. While we cannot wait indefinitely, the lack of resource constraints means we can monitor and test what options emerge as the most cost effective. Technology neutrality is often called upon as a key policy design principle. Another reason for caution is that technological change is inherently unpredictable. For example, at the start of this century, few would have expected solar photovoltaics to be one of the lowest cost sources of electricity. Current expectations of sourcing cost-effective bulk electricity storage would have seemed even less likely at the time. However, there are two key choices that will determine how we reduce greenhouse gases, and the shape of our energy future. First, we must decide how much weight we give to improving energy productivity, versus decarbonising our energy supply. This is essentially a policy decision: should we use our existing energy more intelligently and efficiently in our buildings, industries and transport, or […]

IoT start up set to benefit farmers

A BloomSky weather station on display at the Farming2020 event in South Waikato. Fonterra farmers will come together to trial innovative technology that will allow them to take insights from the weather and bring greater precision to New Zealand dairy farms. Fonterra is playing its part in fuelling the revolution of on-farm weather forecasting by working with MetService and BloomSky – a smart weather camera station that delivers hyperlocal weather information in real-time to any laptop, tablet or smartphone. More than 70 BloomSky weather stations will be installed by farmers across the country in the coming months. MetService will use observations from the devices to provide forecasting and greater seasonal insights through data analytics to all users of Agrigate – the online dashboard developed by Fonterra Farm Source and LIC to give farmers the data they need to make faster and smarter decisions. Fonterra farmer Kevin Argyle is trialling the solar-powered ‘SKY2’ device as well as the wireless add-on called ‘Storm’, and has seen first-hand how the BloomSky system measures temperature, humidity, rainfall, wind speed, wind direction, UV and barometric pressure to give him a detailed view of his farm’s climate. “It really personalises it and enables us to make optimal on-farm decisions,” says Argyle. “People often underestimate the variability within relatively small geographical areas. The other day we had 29 millimetres of rain and a few kilometres down the road they had five. That’s a big difference when you’re thinking about the best time to cultivate a paddock or move stock. “Weather is one of the more significant risks that impacts a farming operation so to have a real-time app that provides insights in terms of what has happened, what the current weather is and what it’s forecast to be for your property has huge potential value.” BloomSky, which […]

Live odds ban debate exposes sport and gambling’s uncomfortable mutual dependency

David Rowe, Professor of Cultural Research, Institute for Culture and Society, Western Sydney University. Watching sport on TV may not exactly be a healthy activity, but it should at least do more good than harm. Yet viewers are exposed to all manner of advertising and promotional messages extolling the dubious-but-seductive virtues of alcohol, fatty foods and sugary drinks. But it is gambling, especially online and mobile, that has come into focus as sport’s most potentially damaging byproduct. In 2013, the Gillard government banned the live spruiking of odds thanks to the barefaced over-reach of Tom Waterhouse and Channel Nine. Federal, state and territory governments have just signed up to a new National Consumer Protection Framework to help online problem gamblers. Now the Turnbull government, while charging the networks about A$90 million less for spectrum access, has banned gambling advertising and promotion on TV for the duration of sports contests until an 8.30pm watershed. This move stimulated vigorous resistance from sports, media corporations and betting companies. In doing so, they have exposed the ethically questionable foundations of their multiple mutual dependencies. How sport and TV became ‘addicts’ Genuine sports lovers, and those who simply wish to protect the vulnerable from harmfully manipulative messages, may wonder how sport and TV became so dependent on gambling. There has been betting and wagering on sport as long as someone kept the score. Variously, the practice has been banned, regulated, and taxed. It can be respectable, as in the case of a Melbourne Cup flutter; dodgy, when it involves unlicensed SP betting; and downright criminal, especially when syndicates manipulate results during betting plunges. But what is unprecedented about gambling on sport today is its astonishing visibility. Where once the logos of betting companies and the odds on sporting outcomes could be largely confined to those […]

American detained in North Korea – CNN.com

I saw this State Department, Swedish Embassy to work on caseThe detention was confirmed by Martina Aberg, deputy chief of mission at the Swedish Embassy in Pyongyang.The embassy represents US interests in North Korea, since Washington and Pyongyang do not have direct diplomatic relations.”He was prevented from getting on the flight out of Pyongyang,” Aberg said. “We don’t comment further than this.”The US State Department on Sunday said it was working on the case.”We are aware of reports that a US citizen was detained in North Korea,” said a department official. “The protection of US citizens is one of the Department’s highest priorities.”The official said the United States would work with the Swedish Embassy on the matter, but did not provide further comment. Source: American detained in North Korea – CNN.com

Time to rethink the meaning of work

A great deal has been written in recent years about the perils of automation. With predicted mass unemployment, declining wages, and increasing inequality, clearly we should all be afraid. By now it’s no longer just the Silicon Valley trend watchers and technoprophets who are apprehensive. In a study that has already racked up several hundred citations, scholars at Oxford University have estimated that no less than 47% of all American jobs and 54% of those in Europe are at a high risk of being usurped by machines. And not in a hundred years or so, but in the next 20. “The only real difference between enthusiasts and skeptics is a time frame,” notes a New York University professor. “But a century from now, nobody will much care about how long it took, only what happened next.” I admit, we’ve heard it all before. Employees have been worrying about the rising tide of automation for 200 years now, and for 200 years employers have been assuring them that new jobs will naturally materialise to take their place. After all, if you look at the year 1800, some 74% of all Americans were farmers, whereas by 1900 this figure was down to 31%, and by 2000 to a mere 3%. Yet this hasn’t led to mass unemployment. In 1930, the famous economist John Maynard Keynes was predicting that we’d all be working just 15-hour weeks by the year 2030. Yet, since the 1980s, work has only been taking up more of our time, bringing waves of burnouts and stress in its wake. Meanwhile, the crux of the issue isn’t even being discussed. The real question we should be asking ourselves is: what actually constitutes “work” in this day and age? What is “work” anyway? In a 2013 survey of 12,000 professionals by the Harvard Business Review, half said they […]

Trump tears down US climate policy, but America could lose out as a result

Kumuda Simpson, Lecturer in International Relations, La Trobe University US President Donald Trump has followed through on his promise to undo Barack Obama’s climate policies, signing an executive order to review his predecessor’s Clean Power Plan and any other regulations that “burden the development or use of domestically produced energy resources”. The move potentially paves the way for the United States to walk away from its commitments under the Paris Climate Agreement. America’s leadership on climate change has been patchy at best, yet under Obama the country made an important diplomatic shift – one that now looks to be fundamentally unravelling. Trump’s executive order, released on Tuesday, aims to dismantle the network of institutions and laws that regulate greenhouse emissions, and those that conduct globally important research to track climate change. The consequences, both at home and abroad, will be severe. The order comes as little surprise. Trump, after all, has previously claimed that climate change is a conspiracy perpetrated by the Chinese government to gain economic advantage at America’s expense, and made a campaign promise to undo the Paris deal. His administration has deep ties to the oil and gas industry, including Secretary of State Rex Tillerson, a former chief executive of ExxonMobil. Trump also greenlit the controversial Dakota Access pipeline. Trump’s appointment of Scott Pruitt to head the Environmental Protection Authority (EPA) caused alarm among environmental activists and EPA staff alike. Pruitt has a history of suing the EPA during his time as Attorney General of Oklahoma, and hundreds of recently released emails attest to his close relationship with the oil and gas industry. The new executive order signals that Trump does not want climate research to be carried out by government agencies such as the EPA, NASA and the Centers for Disease Control and Prevention (CDC). In […]

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