At a time when struggling Turkish exporters are looking for ways to diversify their target markets, Africa is poised to become the new frontier market for Turkish firms as they position themselves to become major stakeholders in the region’s rapidly growing industries.
Africa has recorded an annual growth rate of 5 percent over the last decade and is expected to continue this trend in the coming years. Six out of ten fastest growing economies in the world are now in Africa. Economic predictions indicate that Africa will be a $29 trillion economy in 2050, larger than the 2012 combined GDP of the US and Eurozone.
Turkey’s exports to Africa in the last five years have tripled compared to its worldwide export volume, signalling a clear shift in the export focus towards Africa. Exports to African nations increased by 20.5 percent between 2011 and 2015, soaring to $12.5 billion in 2015 from $10.33 billion in 2011. At the end of 2014, Turkish direct investment in the continent stood at over $6 billion.
The record decline in exports to the EU, conflicts in Syria and Iraq; two main regional export markets for Turkey, the Russian boycott and the slowdown in the Middle East economy along with increased competition in the region, have been the biggest catalysts to search for new markets. This has lead to many Turkish companies including small and medium-sized enterprises, or SMEs, choosing to head towards Africa, tying their hopes to this new market as the continent presents a lot of opportunities for those seeking new investment options.
One of the main reasons why Africa, which has a 2.4% share in the world’s trade, is deemed quite important is the fact that there is major scope for industrialization on the continent. Africa imports nearly 95% of industry materials. Annual imports of the continent surpass $250 billion, which ensures a great investment and export potential in the market.
Some of the leading sectors with great potential are textiles, food, agriculture, energy, farm implements, construction and infrastructure services. Automotive supplier industries and agriculture-based industries are also good options for investors. The closed economic structure of Africa has helped lessen the impact of the economic crisis on the continent, generating a great advantage for investors seeking to enter the market.
The Turkish government is also forging ties with its African counterparts to negotiate tax agreements and boost trade by establishing links between Turkish firms and promising African markets that include more than 300 million people and a gross domestic product of $350 billion. African infrastructure needs also represent important opportunities for Turkish firms that are ranked among the best global performers and offer regional markets, higher quality options than their Chinese counterparts.
Africa offers Turkish investors a predominantly virgin market overflowing with investment and trade opportunities, along with pro-business governments to protect their rights as investors. The continent still craves more investments in various sectors of the economy such as energy, infrastructure, large-scale farming, agro-processing and general manufacturing; sectors in which Turkish firms hold significant experience and technical expertise which could make them critical players as long-term investors, creating a win-win situation for both parties.
AFRICA – THE NEXT GROWTH MARKET
Africa is currently home to five of the fastest growing economies in the world. According to a global study, the continent’s economy is forecast to grow to $2.6 trillion in 2020 from $1.6 trillion in 2008, fuelled by booms in mining, agriculture and development of ports, roads and other infrastructure. This rapid economic growth is what is creating substantial new business opportunities in the region.
Over the past decade, Africa’s real GDP grew by 4.7% a year, on average—twice the pace of its growth in the 1980s and 1990s. This growth was observed across all nations and sectors. By 2009, Africa’s collective GDP of $1.6 trillion was roughly equal to Brazil’s or Russia’s, making the continent among the fastest-expanding economic regions in the world today.
While the Chinese economy has slowed down, along with a slump in the Middle East economy due to low oil prices, the African economy has been steadily on the rise. In fact, Africa was the only continent that grew during the recent global recession. Though Africa’s growth rate slowed to 2% in 2009, it bounced back to nearly 5% in 2010 and has continued to grow ever since.
As Africa’s economies progress, opportunities are opening in sectors such as retailing, energy, banking, infrastructure-related industries, resource-related businesses, and all along the agricultural value chain. Consider that telecom companies in Africa have added 316 million subscribers—more than the entire U.S. population—since 2000.
According to a UN survey, Africa offers a higher return on investment than any other emerging market. The main reasons highlighted for this are competition being less intense, the presence of fewer foreign companies and a huge pent-up consumer demand. Companies that desire revenues and profits can no longer ignore Africa.
Getting in early to a developing market allows companies to build up strong brands and sales channels that can reap big profits in the long run. This has been China’s strategy in Africa over the past two decades. It has aggressively promoted trade and investment, courting countries by offering aid in exchange for favourable trade terms. Good local partners are also key to success in the African market.
Africa’s long-term prospects are strong, because both internal and external trends are propelling its growth. Africa will continue to profit from the global demand for oil, natural gas, minerals, food, and other natural resources. The continent has an abundance of riches; including 10% of the world’s oil reserves, 40% of its gold ore, and 80% to 90% of its deposits of chromium and platinum group metals. To exploit them, African governments are forging new types of partnerships in which buyers from countries such as China and India provide up-front payments, invest in infrastructure, and share management skills and technology.
Since 2000, African countries have cut their combined foreign debt from 82% of GDP to 59% and reduced budget deficits from 4.6% of GDP to 1.8%, which sent inflation rates tumbling from 22% to 8%.
Many people picture Africans as subsistence farmers, but there’s a sizable middle class on the continent. By 2008, 16 million African households had incomes above $20,000 a year—a level that enabled them to buy houses, cars, appliances, and branded products. Africans spent $860 billion on goods and services in 2008—35% more than the $635 billion that Indians spent, and slightly more than the $821 billion of consumer expenditures in Russia.
If Africa maintains its current growth trajectory, consumers will buy $1.4 trillion worth of goods and services in 2020, which will be a little less than India’s projected $1.7 trillion but more than Russia’s $960 billion, which should make Africa one of the fastest-growing consumer markets of this decade.
Kenya Launches World’s First Child-Friendly TB Drug
Kenya has become as the first country in the world to launch new child-friendly medicines for treating tuberculosis (TB).
The drugs are strawberry-flavoured and dissolve in water to make it easier for children to swallow.
The number of tablets given to children has also been reduced by half, from eight to four pills daily.
The Ministry of Health said the new drugs, to be rolled out countrywide by October 1, will be given to children depending on the child’s weight
About 7,000 children in the country have TB.
The flavoured regimen, known as a “fixed dose combination”, will be available for free at all health facilities countrywide.
The Kenyan government spends about Sh2 billion annually to treat TB.
Kenya to Contribute Sh500 Million in Aids, TB and Malaria Fight
Kenya has announced it will donate $5 million (Sh500 million) to the Global Fund to fight Aids, tuberculosis and malaria as other international donors pledged over $12.9 billion for the next three years to help end the epidemics.
Kenya’s pledge at the launch of the Fund’s fifth replenishment made it one of the highest contributors from Africa.
The replenishment conference was hosted in Montreal, Canada, between September 16 and 17 by Prime Minister Justin Trudeau, who said there was a need to engage the youth in order to succeed in global health.
Canada increased its own contribution by 23 per cent to CAD$804 million, with many new partners making first-time pledges.
At the same time, private sector contributions more than doubled.
The Kenyan government donation is part of the concept of “giving to receive” that requires countries that benefit from the global fund to also make contributions.
Last year, Kenya pledged $2 million (Sh200 million).
Running the seventh largest Global Fund portfolio, Kenya is expected to receive more than Sh34 billion from the Global Fund in the next three years.
Other countries from Africa that made contributions to the Fund include South Africa ($5 million) and Namibia ($1.5 million).
“We can end these epidemics for good if we accelerate our efforts and continue to bring in new partners,” said Mr Trudeau.
Global Fund financing comes primarily from the public sector, with approximately 95 per cent of total funding coming from donor governments and the remaining 5 per cent coming from the private sector, private foundations and innovative financing initiatives.
More than 50 donor governments have contributed to the Fund, with a total of more than $30 billion.
As a public-private partnership, the Global Fund organises a resource mobilization programme every three years for private sector and non-government partners to make contributions to the fund, which is used in financing HIV, tuberculosis and malaria programmes across low- and middle-income countries.
Children with diabetes can have a bright future
With good blood sugar control and the use of modern technology, patients nowadays don’t have to have overly rigid lifestyles in order to live long, healthy lives without complications.
With proper monitoring and management, children with diabetes can live long and healthy lives, a diabetes expert says.
“Although there is no cure at this time, treatment options have significantly improved over the years,” said Dr Jason Klein, a paediatric endocrinologist and head of the Paediatric Diabetes Programme at NYU Lutheran Medical Centre in New York City.
“With insulin pens, pumps and modern devices that allow more precise and continuous day and night monitoring of blood sugar levels, we can make small adjustments in the dosage of insulin to prevent sugar levels from rising or dropping too fast. Excellent glucose control gives patients and their families peace of mind,” Klein explained in a university news release.
“Regardless of the type of diabetes [type 1 or type 2] a patient may have, education of the patient and the family is extremely important,” he said.
When children are diagnosed with diabetes, parents often fear the worst, he noted.
“We begin with listening to what the families and patients know about diabetes, since many of their fears are based on old or incorrect information,” Klein said.
“With good blood sugar control and use of modern treatments and technologies, patients today do not have to have overly rigid lifestyles in order to live long, healthy lives free of complications,” he said.
eHealth : Enabler of healthcare revolution in Africa
eHealth is revolutionising healthcare delivery in Africa by offering governments and vendors a way to curb low resource issues and expand the reach and affordability of healthcare. Governments of Kenya, South Africa and Ghana are bolstering the capacity of the healthcare workforce by using mHealth, video telemedicine and healthcare IT.
Notably, Kenya has leapfrogged ahead as local start-ups dominate the digital health market. Establishing partnerships, either through public-private partnerships (PPPs), between two local vendors, or between a local vendor and a key international vendor with a strong global foothold. This would prove to be a game-changer in tapping into upcoming opportunities.
Enabling eHealth Technology in South Africa, Kenya, and Ghana is the new analysis from Frost & Sullivan’s Connected Health Growth Partnership Service program. It covers population health management, health information exchange, hospital cyber security, mobile computing applications in integrated care, business analytics in life sciences, tele-health.
mHealth solutions and video telemedicine are being deployed to create awareness, improve lifestyle, and offer guidance towards better healthcare outcomes. Gradually, eHealth will minimise investment towards hospital bed-strength as more patients receive care within, or close to, their homes without hospital admission.
“The total eHealth market for South Africa, Kenya and Ghana is in a nascent stage with expectations of high long-term growth,” confirmed Transformational Health Research Analyst Aditi Bhalla. “Vendors offering quick and effective healthcare outcomes will gain a tremendous advantage. To enable this, public-private partnerships and integrated businesses will be apt business models.”
$20-Million Women’s Health Initiative Kicks Off With Training In Nairobi
By the end of 2015, roughly 99% of the world’s maternal deaths had occurred in developing regions with Sub-Saharan Africa accounting for two-thirds of that number. Added to this alarming statistic is the fact that the risk of a child dying before reaching five years of age is seven times higher in Africa tha in Europe, according to the World Health Organisation.
The need to improve the quality, access and affordability of healthcare around the world presents a challenge that GE sees as an opportunity to make lasting changes with initiatives such as the Healthymagination Mother and Child Programme. This initiative was launched by GE and Santa Clara University’s Miller Center for Social Entrepreneurship in March to accelerate much-needed medical innovations in nine African countries. The primary objective of the $20-million joint venture is to address maternal and child mortality by supporting social entrepreneurs operating in the health sector across Sub-Sahara Africa.
After a rigorous evaluation process, 17 social entrepreneurs from Burundi, the Democratic Republic of the Congo, Ethiopia, Ghana, Kenya, Rwanda, Nigeria, Zambia and Uganda were selected to participate in the programme’s first cohort. The candidates attended a three-day workshop in Nairobi, Kenya, where senior Miller Center mentors and GE business leaders trained them on business fundamentals to improve their strategic thought processes, and to develop business plans that demonstrate growth as well as long-term financial sustainability.
Organisations, which were considered for the programme, met the following criteria:
– had been in operation in Sub-Saharan Africa for a minimum of three years,
– were involved in delivering healthcare services to mothers and children,
– had experience in distribution, training, use and maintenance of medical equipment for pregnant women or children,
– developed products or technologies that improved knowledge and/or access to care, such as telemedicine, mobile technologies, data analysis or image interpretation,
– provided infrastructure services or facilities associated with needs arising from pregnancy to paediatric care, and
– were for-profit, non-profit, or hybrid enterprises.
This training and mentoring program combines Silicon Valley entrepreneurial principles with the Miller Center’s Global Social Benefit Institute (GSBI) methodology, which has been refined through 12 years of working with more than 570 social enterprises worldwide.
The overall goal of the programme is to ensure that women have access to high-quality health services during pregnancy and childbirth by addressing problems such as the availability of screening tools as well as potentially fatal conditions such as pregnancy-induced hypertension.
“Social innovations and entrepreneurs in the health sector have in recent years yielded sustainable solutions to some of the world’s biggest health challenges,” said Jay Ireland, GE Africa president and CEO.
“It is for this reason that the healthymagination Mother and Child Programme is focusing on training and mentoring social entrepreneurs working on increasing the quality, access and affordability of maternal and child health in sub-Saharan Africa, thereby enabling more women and children to experience better health,” said Ireland.
A six-month online accelerator programme follows the initial workshop where Silicon Valley-based executives — who have also completed rigorous mentorship training with Miller Center — coach the entrepreneurs on developing an action plan, operational and social impact metrics, a presentation deck for investors, and an investment summary document.The programme will culminate in February 2017 with a premier pitch event in Africa where the 17 participants will present their respective enterprises to an audience of potential investors.
Tanzania: State to Distribute Over 21 Million Condoms
Mbeya – The government plans to distribute over 21 million condoms free of charge across the country to reduce new HIV infections.
The acting Director General of the Aids Control Programme at the ministry of Health, Community Development, Gender, the Elderly and Children, Eddah Katikiro, said this on Thursday in Mbeya, during a preparatory meeting for the launch of a condom distribution exercise to be held on Friday.
She emphasised that the condoms would be distributed freely at selected locations to the public. “The condoms will be distributed at the offices of village executives, bars, hotels and any at health facilities,” she said.
The ministry’s information officer, Shoko Subira, said the programme was being implemented following the government’s strategy of controlling new HIV/Aids infections, with the aim of halting new infections by 2030.
Subira said the condoms given by the government have been branded Zana ya Ukweli, meaning ‘tool of reality’ are expected to be launched by health minister Ummy Mwalimu.
The medical equipment registration officer at the Tanzania Food and Drugs Authority (TFDA), Goodluck Botola, said the authority has confirmed the quality of the condoms.
Mbeya Region’s Aids Control Programme co-ordinator Francis Phiri, said the region had received 1.5 million condoms.
East Africa: Ethiopia On Right Track to Eradicate Guinea Worm
The Ethiopian Public Health Institute said efforts are under way to eradicate Guinea Worm Disease (GWD) in a strengthened manner.
Briefing journalists on Drancunculiasis Eradication Programme yesterday, Institute Deputy Director Dr. Dadi Jima said that contrary to the previous years, Ethiopia is presently close to eradicate the disease which requires the concerted effort of all.
Jointly with stakeholders the Institute has offered pure water in some parts of the country, especially in Gambella State. It is also constructing Case Containment Center for patients to avoid contamination.
Though the Institute is on the right track to eradicate the disease, the participation of the people is decisive to achieve the desired objective, he added. The public has also been requested to provide information via 8335 and win 2,000 Birr award.
Carter Centre Country Representative Dr. Zerihun Tadesse on his part said that Ethiopia should work aggressively for the eradication of the disease for it is prevalent in Gambella State.
He also said that the country is highly engaged for the eradication by identifying states based on the symptoms and the prevalence rate of the disease. Accordingly, much attention has been given to Gambella State where 13 woredas are identified requiring support and follow up.
He also called on the media to provide the public appropriate information to protect themselves from the disease.
The 2016 WHO report indicated that GWD is prevalent in four countries including Chad, Ethiopia, Mali and South Sudan.
Africa: A New Male Contraceptive Could Help Men Bear the Family Planning Burden
A new method of male contraception that is as effective as a vasectomy but entirely reversible with little to no side-effects is being tested and is showing promising results in animal trials.
If it is successful, it could drastically change the field of contraception. It would give men the power to prevent a pregnancy without any input from women using a method that is not permanent, such as the vasectomy.
The vasectomy is currently the only reliable contraceptive option available to men. It is a minor surgical procedure where the the duct that conveys sperm from the testicle to the urethra is tied or cut. The challenge is that it is not reversible.
The new contraceptive – Vasalgel – is a type of no-scalpel vasectomy. It has no hormonal effects or other side-effects, and can be reversed when the man wants to start a family.
In the same way that a vasectomy would, Vasalgel blocks the flow of sperm from the testicles to the penis. But it does not require any surgery. Instead of severing the tube that carries sperm – called the vas deferens – a gel is injected into the tube, forming a barrier that blocks sperm but allows other fluids to pass through.
Low uptake of vasectomies
Vasectomies are usually quick and straightforward procedures that carry minor risks like bleeding or infection. There is also a small chance that a man might experience post-vasectomy pain due to pressure build-up in the testicles.
Although very few vasectomies fail or go wrong, globally there has been a low uptake of this procedure.
In 2013 only 2.2% of men globally had vasectomies. This compares to 18.9% of women who underwent female sterilisation. Although some countries like Canada have higher rates of men who have undergone a vasectomy (22%), in Africa only 0.1% of men have undergone vasectomies.
On the continent, vasectomies could be one of the most effective male birth control methods because they are inexpensive and could therefore have a major impact on sustainable development and population growth. But the procedure is misunderstood and, as a result, is poorly used.
A second attempt
The new contraceptive is not the first time a male contraceptive has been introduced. Several years ago, the idea of the “male pill” was abandoned and more recent research efforts have been focusing on intra-vas devices, including Vasalgel.
Previous efforts to develop a male contraceptive focused on hormonal manipulation, which is how the contraceptive “pill” for women works. A man would basically be given hormones (like testosterone and progesterone) and these hormones would then interfere with certain processes in the body and cause the testicles to stop producing sperm.
The male hormone testosterone is linked to sperm production and by lowering the testosterone level in a man’s testicles you can prevent the production of sperm. But to lower testosterone in the testicles, you have to increase testosterone levels in the blood. Several studies have shown that there are too many unpleasant side-effects to this. These include aggression, depression, fatigue, low libido, high blood pressure and an increase in cholesterol levels.
Researchers have also tried to tweak the method of hormonal male contraception by adding other hormones, like the female hormone progesterone. But it still had too many side-effects and wasn’t effective enough.
Final steps
Vasalgel is currently being tested in humans but its reversability has only been shown in animal studies. These studies have shown rapid restoration of sperm flow.
For the reversal to happen, the man gets an injection of a bicarbonate solution into the duct that conveys sperm from the testicle to the urethra. This bicarbonate solution will dissolve the Vasalgel and it is flushed from the duct.
The challenge with Vasalgel is that although it blocks the flow of sperm, it does not offer any protection against the transmission of sexually-transmitted infections such as HIV.
Family planning is still considered a woman’s responsibility in many parts of the world. This has prevented men from being more involved in family decisions about fertility. It has also limited their access to family planning services targeted at them. The new method could be the first step to change this.