Good day to you all. Am glad to be back here again. Today, I will be concluding the topic I started few days ago on "business development in a Africa to watch out for in 2019". I will be looking at it under three of the main contributions of a fluorishing economy. Are you ready? Yeah, Let's get going.
Production Surge
There is a prediction by the African business revolution that by 2025 the cost of production across the universe will double to $1 trillion, and at the same time, a massive number of about 14 million jobs should be created. This will give assurance of a better trade balance and greater autonomy and with the transition towards exports. It was proved by Leke Acha that the price of commodity that keeps falling has been the driving force for government to diversify its economy and ensure long-term sustainability. The fall in the price of oil in Nigeria has led to a focus on production, which will trigger a future increase in exports.
Going by a survey carried out by McKinsey, an advanced level of production should lead to a rise in profit, which is a perfect example of the growing automotive industry in Morocco. The imitation of the thriving Industrial areas of Ethiopia can also be put in place at some other countries. Utilizing the resources and knowledge of chinese companies by forming healthy partnerships with them will be of great help to African manufacturers in the future.
Large Pharmaceutical Sector
The benefits of multiplier such as technological progress and enhanced health outcome are connected one way or the other with advances in the pharmaceutical industry. Looking at it very well, Don't you think African pharmaceutical companies should be able to see changes in terms of profit in the nearest future? I beleive this will definitely come to past. The estimation done by Mckinsey showed that the pharmaceutical sector could could grow from $22 billion (as it was in 2013) to $65 billion in 2020.
The sector will definitely need an easily managed regulatory system, a better manufacturing infrastructure, and open specialization to make that profit an achievement. McKinsey made a suggestion that regional centers in countries, such as Nigeria and Kenya with a better flourishing economy could still thrive well in this sector if they do the necessary since not all African countries have all the requirements to make it work. With the implementation of local productio, we should see an improvement and a reduction in the quality and price of medicines respectively. It will also aid the development of high-quality features and technologies.
Off-grid Energy
It is no more news that there are quite a lot of challenges with rural areas in Africa. One of those challenges is the electrification of rural areas, with a massive number of about 600 million people in Africa being recorded to have remained unconnected even in this first century. However, the good news of salvation for these African countries is that entrepreneurs and start-ups are stepping in to bridge the gap.
M-Kopas home solar energy kits is a company doing wonderfully well and they are based in Kenya. M-Kopas home solar energy kits have connected an estimated amount of 600,000 households, which was funded by mobile money. With this interesting happenings, we should be seeing large and serious investors step in to give their own support to the venture. Isn't that interesting? Of course, It is because we are definitely going to see more households get connected if that happens. The company aims to surpass $100 million a year annual revenue in the nearest future.
After the mouthwatering success recorded by the Kenya-based company M-Kopas home solar energy kits, a company based in Uganda known as "Fenix" (which sold 140,000 solar kits in 2017) and BBOXX (which supplied kits in 10 African countries) followed. New start-up companies are growing rapidly and they are occupying more and more space from time to time.
A good number of jobs and increasing promotion of economic activity in rural areas have been been brought in place through these new development and fresh approach. These will definitely better the lives of the masses and serve as a trigger for new opportunities to rush in. However, Leke Acha made us realize in his statement that they are very focused and determined to bringing into limelight the lost glory of marginalized people through the building of a whole university of opportunity.
Come to think of it -- Isn't the thought of being able to do your homeworks at night amazing? It is definitely great. Maybe you still don't get this! You don't run the risk of getting an eye defect that may arise through the use of candles or fuel-lantern to read or do your homeworks. As if this is not enough -- What of the new possibility of the internet that comes your way? Am sure you would agree with me that it is a never ending benefits for you and me. It's a win-win situation for we, Africans. Off-grid energy can be an important and efficient contribution to the potential of Africa at large.
Kindly use the comment box below and tell me your view on this.
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Also published on my whaleshares blog