A New Framwork of Economic Development

in African CountriesBy: Prof. Dr. Norbert W. Knoll von Dornhoff

General Secretary

European Day of Entrepreneurs6th October 2011 in Dubrovnik, Croatia

My presentationI. Market trends in African CountriesII. Constraints for developmentIII. A new framework for development

1. Millennium Regions2. From trading to industrial partnership3. Towards a more efficient financial architecture

Source: How big is Africa Really ?. By Erika Amoako-Agyei

Africa is 30,3 million km² and thus is larger than the combination of:China (9,6 million km²),the US (9,4 million km²),Western Europe (4,9 million km²),India (3,2 million km²)and Argentina (2,8 million km²)plus the Scandinavian countries and the British Isles with room to spare.

FROM TRADING TO INDUSTRIAL PARTNERSHIPTRADE WITH BRICS64% IMPORTS from CHINA58% EXPORTS to CHINA

I. Essential Markets Trends for Africa 2011 and beyond  

Africa is, and will continue to be, one of the fastest-growing economic regions in the world, thanks to surging demand both from abroad (from China and India in particular) and at home (fuelled by urbanization and consumerism.

Telecoms, banking, retailing, manufacturing and even agriculture will be the the region’s fastest growing sectors: Africa’s consumer market will

account for the region’s largest growth. 

Energy from renewable sources, sun, water,wind, biomass, waste Low cost housing Rapidly expanding, Africa’s youthful workforce, will be a key advantage. Smart phones will be the fastest-growing category of handsets, even in the

poorer areas, where they often serve as a substitute for PCs. .   commerce will flourish in 2011.  

Africa is well positioned to profit from natural resources as global demand for commodities continues to rise. 

      

Companies that succeed in these neglected emerging markets are not only putting down roots in the world’s most fertile soil. They are giving themselves a chance to establish business habits for years to come.

Erika Amoako-Agyei, Jounalist and Africa Expert

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Inward FDI stock 1985 -2007

Uganda

Congo, Democratic Republic of

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Ethiopia

United Republic of Tanzania

Tanzania

Ethiopia

Uganda

Kenya

Congo-DR

Uganda: Best at education

GDP per capita – annual growth in % - 2006

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GDP-capita – growth rate

II. ConstraintsRelation Delay in obtaining water connections (days)and GDP per capita (x 100)

Main constraints: Electricity

Constraints: The Banks

III. A new framework for development

Millennium Villages

Millennium Village ProjectA Success

Story

Millennium Regions

The proposed WMR in Sub Saharan Countries shall be a territories which the Governments and the local Authorities declare as an area of infrastructural development to be set up in pleasant sites served by international transport and communication infrastructure; nearby Research/Training centers and Universities.

MSME - Technology Park, Center of Competence

FTL – Finance Transaction Levy

Currency Transaction Levy

for economic development and crises prevention in African Countries

Estimated annual revenue of a 0.005% Currency Transaction Levy in selectCommonwealth countries.Country Estimated annual revenue (US$)4Australia $2,211,000,000Canada $1,386,000,000India $231,000,000New Zealand £627,000,000Singapore $396,000,000

South Africa $297,000,000

MALIInternational demand for products such as cotton has dropped, meaning many farmers can no longer afford such essentials as school fees for their children. ©Helen Palmer/Oxfam

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