Movemeback Pulse

Why is mobile internet so expensive in some African countries? The Continent has the highest mobile data costs in the world, when compared to average income. In Malawi, people pay ~87% of average gross national income for 1GB of mobile data (as of 2020). Rwandans, by comparison, pay only 2%. Whilst the cost of telecoms infrastructure is a major cost factor, opportunities to help reduce prices exist - e.g. by creating an enabling environment to increase local competition, and country governments providing support to increase coverage to remote areas. 

Access to financial services and products

Tanzania to review mobile tax after outcry. President Samia Suluhu has ordered a review of a new tax on mobile money following an outcry from Tanzanians, who were already subjected to some of the highest rates in Africa. The new tax threatens to disrupt the country’s financial inclusion momentum - 98% of the 56% of Tanzanians who are financially-included have mobile money accounts (as of 2017). The government has argued tax revenues will be used to fund development projects, such as providing running water to schools. However with many mobile money users belonging to marginalised groups with poor access to financial services, the end may not justify the means.

Intra-continental connectivity, collaboration & trade

$8bn to be set aside for AfCFTA losses. In an effort to boost the implementation of the continental free trade agreement, African countries plan to mobilise ~$8bn to cover revenue losses resulting from lowering cross-border tariffs. Although the forecast short-term tariff revenue decline from AfCFTA is small (less than 1.5%, while total tax revenues may fall by less than 0.3%), the $8bn fund will incentivise participation from governments that rely on duties for income. The world’s largest free-trade area seeks to boost intra-African trade by slashing or eliminating cross-border tariffs on 90% of goods and the facilitation of movement of goods and capital. Trade within Africa is projected to grow by 52% in the next decade on the back of AfCFTA, from the current $350bn a year.

Scaleable energy access

Kenya seeks to double geothermal capacity by 2030. Kenya plans to invest $2bn by 2030 to double its capacity to 1.6GW - enough to power 1mn people. This investment would take the contribution of geothermal to Kenya’s overall energy mix from ~50% to ~60%. Whilst geothermal requires a higher initial investment than solar, wind and hydro, it’s a more reliable energy source as it is less reliant on weather patterns such as sunshine, rainfall and wind speed. With Kenya eager to share its 70-year know-how, other African countries have a peer to guide them in exploiting their geothermal energy potential. The UN estimates the potential of geothermal energy across Eastern Africa at 20,000MW - presenting many opportunities in the $4.6bn global geothermal energy industry.

Essential infrastructure, personal living-space & utilities

Wildlife conservation vs. development. DRC’s Salonga Park has been removed from UNESCO’s endangered sites after ~30 years of conservation success that included a ban on oil exploration; while Tanzania has won an appeal against removing its Selous Game Reserve from World Heritage sites for continuing to construct a 2,115MW hydro dam in it. The two cases embody the dichotomy between conservation and development in Africa. While Africa is endowed with natural resources, exploiting some to facilitate development could impact biodiversity. With Africa’s population projected to reach 2.5bn by 2050 and the resulting increased demand for resources, striking a balance between conservation and development will likely become a greater challenge in the future.  

High value skills development and talent repatriation

Financial modelling skills to increase Africa’s earnings from extractives. The AfDB is set to provide financial modelling training to 160 public policy officials (40% women) from 8 African countries undergoing political and economic transition, to help them earn more from extractives.  By covering topics like mineral and petroleum rents, tax policies, and rent-sharing, the training will strengthen the hand of beneficiary countries to negotiate resource contracts, production-sharing agreements, and ex-post assessments of returns. The skills intervention could help reverse the ripping-off of Africa by multinationals that under-report earnings, repatriate profits and scantily benefit local communities. Between 2000 and 2010 African countries collectively registered ~$50bn in annual revenue losses to ‘illicit financial flows’ - 56% of it from the extractive sector.

Exporting culture & identity 

South Africa's Cameron Lombard joins Strictly Come Dancing. Cameron Lombard from Cape Town has been selected to join the line-up of professional dancers in this year’s Strictly Come Dancing - the popular and award-winning British television dance contest that has been exported to 60 other countries. He becomes the 4th South African professional dancer to make the show after two-time winner Oti Mabuse, two-time finalist Johannes Radebe, and judge Motsi Mabuse. The success of the dancers is perhaps representative of the growing global interest in African entertainment. Their inclusion provides a unique opportunity for the incorporation and showcasing of African dancing styles and talent on an international platform, and more widely to promote African entertainment across the globe. 

Proportional representation in politics, business and community leadership

Ghana anti-gay bill proposes 10-year jail term for LGBTQ+ people & supporters. Being an LGBTQ+ person, or offering social/medical support or sympathy, could earn you a 10-year jail term in Ghana, if a draft anti-gay legislation gets passed. In what could become one of the most draconian anti-gay laws across the world, the Promotion of Proper Human Rights and Ghanaian Family Values Bill 2021 also proposes a fine or 3-year jail term for people involved in non-heterosexual sex. If passed in the current form, the legislation will immensely derail the right to sexuality and access to basic services such as health and education for the LGBTQ+ community in Ghana. Criminalising this community and their supporters could damage the reputation of Ghana as a beacon of democracy, human rights and good governance in Africa.

End-to-end value chain capture

Finding opportunities in plastic trash. South Africa’s Phumudzo Muthanyi and Mbali Mokgosi are making recycling 'cool' by turning plastic waste into beautiful bags and fashion accessories. Besides contributing to a reduction of plastic waste, the couple feel that their innovation is helping change the perception of recycling from ‘dirty’. Only 16% of plastic is recycled in South Africa, with the rest ending up in landfills, or to pollute rivers, roads and communities. However since 2018, over 64,000 income-generating methods for waste pickers, collectors and recyclers have been created in South Africa. With Africa projected to generate 344,000 tonnes of polymers and plastics annually by 2030, opportunities lie in exploiting innovative opportunities in waste collection and recycling.