Regional Agenda on Connecting Africa’s Resources through Digital Transformation

Kigali, Rwanda 11-13 May 2016 Contents

3 Preface

4 Co-Chairs

5 Facts & Figures

6 Kigali Highlights

8 Finance and Growth

14 Governance and Institutions

20 Human Development and Entrepreneurship

27 Outcomes

28 Acknowledgements

29 Digital Update

32 Upcoming Meetings

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REF 150516 Preface

Under the theme, Connecting In this context, participants at the Africa’s Resources through Digital meeting debated new approaches Transformation, the 26th World to ignite structural transformation, Economic Forum on Africa convened particularly in the face of the rapid regional and global leaders to discuss technological changes that have the digital economy catalysts to drive potential to create new industries and radical structural transformation, spark inclusive growth. In workshops and strengthening public-private and debates at the meeting, it was collaboration on global and regional clear that the appetite of the Forum’s challenges affecting Africa. The Members and constituents for public- meeting offered them an opportunity private cooperation to solve these to gain insight into the path forward for challenges has never been greater. the continent, and focused on strategic Elsie S. Kanza Head of Africa actions to deliver shared prosperity. Member of the Executive Committee The meeting saw over 1,200 leaders World Economic Forum The meeting took place for the first from business, government, civil time in Rwanda, which has dramatically society, academia and the media, transformed since the 1994 genocide. with over 90 senior government Emerging as a regional high-tech hub, officials, including Rwandan President Rwanda boasts one of sub-Saharan Paul Kagame and eight other heads Africa’s fastest GDP growth rates. It of state. It also included strong is one of Africa’s most competitive representation from civil society, economies and a top reformer in including more than 20 social improving the business environment. entrepreneurs and representatives This noteworthy progress showcases from world-renowned international its evolution as a knowledge economy organizations and institutions such powered by smart policies and as Oxfam International, the United investments. Nevertheless, further Nations Population Fund, International reforms and alliances are needed to Monetary Fund and the World . accelerate development and expand Forum communities were represented socioeconomic opportunities by by 50 Global Shapers, over 70 Young leveraging digital transformation. Global Leaders and 50 Media Leaders, and 50 members of the academic However, Africa’s economic growth community. outlook is under pressure, mainly due to adverse changes in the global The Co-Chairs of the meeting in Kigali economy, and is expected to remain reflect a diverse group of leaders just below 5% this year. As many of from both the public and private the region’s countries improve their sectors. I would like to thank them for investment climate and continue their support before and during the macroeconomic policy reforms, foreign meeting. I would also like to thank direct investment flows are expected the Government of the Republic of to grow, although at a slower pace. Rwanda on behalf of the Forum for Low global prices for major its great support and partnership, exports, currency devaluations and and look forward to continuing this debt sustainability considerations, as into the future. The Forum is grateful well as geosecurity threats that have to its Members and communities for weakened growth in some countries, their ongoing commitment to and underscore the need for economic participation in the World Economic diversification for sustained inclusive Forum on Africa. growth. These were just some of the challenges discussed in Kigali. We look forward to welcoming you to next year’s gathering in .

World Economic Forum on Africa 3 Co-Chairs of the World Economic Forum on Africa

Akinwumi Ayodeji Adesina Dominic Barton Tony O. Elumelu President Global Managing Director Founder (AfDB), McKinsey & Company, USA The Tony Elumelu Foundation, Abidjan

Graça Machel Tarek Sultan Al Essa Founder Chief Executive Officer Graça Machel Trust (GMT), and Vice-Chairman of South Africa the Board Agility, Kuwait

4 World Economic Forum on Africa World Economic Forum Facts & Figures

World Economic Forum on Africa in numbers

over 1,200 participants

600 business leaders

public figures including 9 heads of state and 90 government

over 290 women leaders from over 70 countries

50 media representatives

World Economic Forum on Africa 5 Kigali Highlights

Top Women Innovators Internet for All

While Africa’s start-up businesses are gaining Internet For All is a global initiative led by the World scale, more needs to be done to create an enabling Economic Forum to develop models for large- environment to optimize the potential of its women scale public-private collaboration to accelerate entrepreneurs. This was the reason for a Forum internet access and adoption. The first partnership challenge to find Africa’s top women innovators. Five programme will target 75 million Africans in the innovators were selected after meeting the challenge’s Northern Corridor countries of Ethiopia, Kenya, strict criteria. The winners took part in the World Rwanda, South Sudan and . Efforts to Economic Forum on Africa, where they met other extend the reach of the internet to the 4 billion social entrepreneurs and impact investors, and in sessions relevant to their expertise. people worldwide that are not yet connected will only succeed if a digital ecosystem approach is – Natalie Bitature, Musana Carts, Kampala, Uganda: adopted where access, affordability, skills and The company developed environmentally friendly, content are given equal attention. The Forum has solar-powered vending carts with a price point published a collection of best practices entitled of $400; each cart saves 3,000 tons of carbon Internet for All: A Framework for Accelerating Internet emissions and improves the health of cities by Access and Adoption. The report forms the basis of eliminating pollution from charcoal and kerosene the initiative’s first phase and provides a framework stoves. for governments and businesses to accelerate large-scale internet adoption. Read the report here: – Audrey Cheng, Moringa School, Nairobi, Kenya: This school enables students to gain the skills http://www3.weforum.org/docs/WEF_Internet_for_ needed to compete in the digital economy. Two All_Framework_Accelerating_Internet_Access_ years on, 100% of students have found work, Adoption_report_2016.pdf earning on average 350% more than before they completed the coursework. In addition, the Forum’s Global Shapers community launched a grassroots campaign ahead of the – Lilian Makoi Rabi, bimaAFYA, Tanzania: Offering meeting in Kigali to make the benefits of the internet mobile micro-health insurance for the low-income available to everyone. The #Internet4All campaign and informal sector, bimaAFYA drastically reduces is backed by over 90 Global Shaper Hubs across costs through its completely mobile solution. It Africa. For more information, visit plans to expand to Kenya, Uganda, Rwanda, http://internet4allafrica.org. Nigeria and in 2017.

– Nneile Nkholise, iMED Tech Group, Bloemfontein, South Africa: The group uses additive to design breast and facial prostheses for cancer and burn victims; its workforce comprises African women with research backgrounds in mechanical engineering.

– Larissa Uwase, CARL GROUP, Kigali, Rwanda: The group is improving people’s health with innovative food products based on sweet potatoes. Agronomist Uwase’s latest innovation, in partnership with the University of Rwanda, is to make spaghetti from the .

6 World Economic Forum on Africa For session summaries, videos and meeting-related documents, plus Forum insights, visit https://toplink.weforum.org

Blended Finance Transforming African Partnership to Boost

Infrastructure Nearly 300 African and global leaders joined the Grow Africa Investment Forum in Kigali to accelerate The Sustainable Development Investment partnerships and investments in African agriculture. The Partnership (SDIP), a Forum-led initiative, will Grow Africa partnership reported that over $500 million establish a regional hub dedicated to facilitating in new private-sector investments were implemented investment in African infrastructure and development in 2015, bringing the total to $2.3 billion implemented projects. The SDIP Africa Hub, co-hosted by the out of the $10 billion committed by more than 200 Forum and the OECD, will coordinate African African and global companies. In the past year, these regional activities of the initiative. SDIP has been investments benefited 10 million smallholder farmers set up with a mandate to support financing of the and created 30,000 jobs, bringing the total number of UN’s Sustainable Development Goals through jobs created to 88,000 since 2012. The partnership blended finance, which combines funding from was co-founded by the , NEPAD Agency private investors and lenders, governments and and the World Economic Forum to advance progress philanthropic funds. SDIP aims to target $100 billion on Africa’s food security and agriculture-sector in investments using blended finance by 2020. In goals. Its secretariat, initially hosted by the Forum addition, the SDIP Africa Hub will also facilitate the for a three-year period, has transitioned to NEPAD exchange of best practices across its network of Agency headquarters in Johannesburg, South Africa. institutions. Learn more about blended finance: Marking this transition, the co-founders announced https://www.weforum.org/reports/blended-finance- the appointment of the new executive director of Grow toolkit/ Africa, William Asiko. www.growafrica.com.

World Economic Forum on Africa 7 Finance and Growth

Africans Must Take the Lead in Their Own Development

With many countries in Africa facing difficulties, it is time for stakeholders to look at ways to restructure and transform economies to make them more resilient. Africans must take the lead.

A key question for Africans in Billions of dollars in pension and successful projects and showcase an era of global headwinds and insurance funds are being eyed to them to highlight the ability of Africa low commodity prices is how to deliver funding for infrastructure. to deliver. If Africans show that structurally reform their economies Efforts are underway to stop illicit they are leading the way in their to make them more resilient to financial outflows and work with own development, the continent risk while simultaneously more international partners to have stolen will become more attractive to sustainable and inclusive. money and assets brought back investors. to Africa. To complement these A key area of focus in this regard efforts, Africa’s mostly small and The transformation of markets is not just the diversification illiquid capital markets are being also requires finding new ways to of economies, but also the urged to work together to create address old problems. Technology prioritization of domestic resource the scale that would make them is a key driver in this regard. mobilization to counter the funding more attractive to international At one end, it is enabling the pullback from international markets, investors. growth of new sectors and giving lingering perceptions of high governments the tools to be more investment risk on the continent, To attract capital for growth, efficient. At the other, it is disrupting and Africa’s historic reliance on perceptions about the levels of traditional sectors such as banking donors. It is also an opportunity to risk that exist on the continent to unlock greater access to funding rethink how private capital can be need to be addressed. One way to for millions of small businesses and put to work to deliver public goods. do this is to fund and implement entrepreneurs at the lowest levels of the economy.

“We must hold ourselves and each other accountable.”

Paul Kagame President of the Republic of Rwanda

8 World Economic Forum on Africa This is critical to driving inclusive The projection that the African “Democratic growth. In sub-Saharan Africa, population will more than double to only one-third of people have a 2.5 billion people by 2050 signals dividends bank account and find it difficult to a large opportunity for Africans to get funding for small enterprises. produce for their own consumer occasioned by Mobile banking and other markets, which are dominated by innovations are helping to bring foreign producers. “The biggest stable governance entrepreneurs out of poverty by opportunity for African countries should be giving them access to finance to and business operating in Africa either start or scale up businesses. is Africa,” noted Johan C. Aurik, harnessed to Global Managing Partner and The way is being led by Kenya with Chairman of the Board, A.T. strengthen quality M-Pesa, a private-sector-driven Kearney, USA. education for the mobile phone payment product that has been so successful But for African manufacturing to be young population.” that it now accounts for about viable, Africa’s large energy deficits 40% of the country’s GDP and a must be addressed. Technology is Dominic Barton growing proportion of deposits and playing a critical role here, enabling Global Managing transactions. the development of sustainable Director, McKinsey & Company, USA; energy options that can be built Co-Chair of the World However, a cautionary note and applied quickly. But funding Economic Forum on has been sounded about the remains an issue, particularly for Africa ability of technology to disrupt conventional large-scale power labour markets on a continent projects, which still drive generation with low skills levels and high on the continent. unemployment. The Fourth Industrial Revolution prioritizes Funding is available globally for strong leadership. The region has highly skilled workers while the power sector, but perceptions enhanced its economic prospects reducing demand for workers of high risk in the early stages of by increasing the mobility of skills, with less education and lower projects in Africa and the long people, technology and goods skills. There is a need to balance time for project development – – all at little cost to the countries growth driven by technology with between 7 and 10 years – affect themselves. the creation of labour-intensive confidence and raise development industries. costs. Many governments, already The restructuring of economies battling with fiscal deficits, do not does not mean that resources However, the percentage of GDP have the deep pockets required to should be put on the back burner represented by manufacturing in assist meaningfully. Transformative during a cycle of low commodity Africa is still low – 9% in Nigeria, partnerships with the private sector prices. Countries that have natural 12% in Kenya and just 8% in could mobilize funding in this resources need to manage Zambia, for example, compared to regard. them differently by harnessing 30% in . revenues productively and adding Regional integration is one way to value to them in order to build deliver infrastructure at a lower cost manufacturing, services and other “We need change and leverage the benefits of shared sectors. Creating meaningful risk and reward. However, it is not linkages with the broader economy now. We are very proceeding fast enough to deliver is essential to transforming real benefits. Artificial barriers resource-rich countries. good at drawing have been created by policies and up policies but regulations, and sovereign interests As Tiaan Moolman, Partner, Bain remain primary. To make it work, & Company, South Africa, said: very weak at there needs to be coherence it is important not to “waste” a in policy and frameworks with crisis. “Now is the time to build implementation.” some flexibility to accommodate more efficient frameworks and sovereign interests and needs. partnerships to make Graça Machel Founder, Graça work better for countries.” Machel Trust (GMT), East Africa provides a model of South Africa; Co- what can be achieved with a Chair of the World Economic Forum on vision of the future combined with Africa

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01: Press Conference 06: Arancha Gonzalez BBC Africa: Richer but Laya, Executive Director, not Freer International Trade 02: Erastus J. O. Centre (ITC), Geneva Mwencha, Deputy 07: Towards an Chairperson, African Integrated Africa Union, Addis Ababa 03: Stories from Africa: Creative Industries 04: Siyabonga Cwele, Minister of Telecommunications and Postal Services of South Africa 05: Hope Azeda, Founder and Artistic Director, Mashirika Performing Arts & Media Company, Rwanda

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10 World Economic Forum on Africa Nancy Kacungira, Journalist, ; Geoffrey Qhena, Chief Executive Officer, Industrial Development Corporation of South Africa (IDC), South Africa; Ally Angula, Co-Founder and Managing Director, Leap Holdings Namibia, Namibia; Johan C. Aurik, Global Managing Partner and Chairman of the Board, A.T. Kearney, USA Climbing on to the Value Chain

“It’s a myth that it is okay to be a micro-business,” said Johan C. Aurik, Global Managing Partner and Chairman Ally Angula, Co-Founder and Managing Director of Leap of the Board, A.T. Kearney, USA, emphasized that Holdings Namibia. Africans, she maintains, just need to industrialization is about more than just manufacturing. It change their mindset to believe they can manufacture is a complex value chain of many different parts including goods themselves. Many people in African believe that technology, sourcing materials, distribution, logistics and manufacturing is about large factories, which puts it out innovation. Having a production plant is just one piece of of their reach. Bringing people to see how a small factory the chain. works can change their view of what is possible and give them the confidence to start thinking about how to enter Improving Africa’s manufacturing capability requires the value chain. an array of interventions by multiple stakeholders. This is a long process, Aurik said, but generating even just Angula’s view was echoed by Tonye Cole, Co-Founder a little more value addition in agriculture and natural and Chief Executive Officer of Sahara Group, Nigeria, resources could have a significant effect on growth and who said industrialization tends to be associated with employment in Africa. large and expensive projects, but the process can be started at the lowest end of the value chain. He used the example of an agricultural project in Nigeria where tomato farmers were given an opportunity to learn about storing the produce and lengthening the shelf life of their crop rather than just taking it to market to be sold fresh. In this way, they are able to generate more income from their crop and start thinking about other ways to add value to it.

This type of early-stage intervention can provide a first step into the value chain for informal businesses and open up new areas of opportunity for investment.

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01: Elsie S. Kanza, Sahara Group, Nigeria; 02 Head of Africa, World Andrew Dell, Chief Economic Forum; Executive Officer, HSBC Philipp Rösler, Head of Africa, South Africa; the Centre for Regional Tiaan Moolman, Partner, Strategies, Member of Bain & Company, South the Managing Board, Africa World Economic Forum; 03: Growth beyond Paul Kagame, President Commodities of the Republic of 04: Fredrik Jejdling, Rwanda, Graça Machel, President, sub-Saharan Founder, Graça Machel Africa Region, Ericsson, Trust (GMT), South Africa; South Africa; Bineta Co-Chair of the World Diop, President, Femmes Economic Forum on Africa Solidarité, Senegal; Africa; Akinwumi Ayodeji Makhtar Diop, Vice- Adesina, President, President, Africa, World African Development Bank, Washington DC; Bank (AfDB), Abidjan Pravin Gordhan, Minister 02: David Pilling, Africa of Finance of South Editor, Financial Times, Africa; Claver Gatete, United Kingdom; Minister of Finance and Ngozi Okonjo-Iweala, Economic Planning Chair, GAVI Alliance, of Rwanda; Bronwyn USA; Patrick Njoroge, Nielsen, Editor-in-Chief Governor of the Central and Executive Director, Bank of Kenya; Tonye CNBC Africa, South Cole, Co-Founder and Africa Chief Executive Officer,

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12 World Economic Forum on Africa 01: Towards an Integrated Africa 01 02: Frannie Léautier, Partner and Chief Executive Officer; Mkoba Private Equity Fund, Tanzania; Uhuru Kenyatta, President of Kenya; Winnie Byanyima, Executive Director, Oxfam International, United Kingdom; Tony O. Elumelu, Founder, The Tony Elumelu Foundation, Nigeria; David A. Lipton, First Deputy Managing Director, International Monetary Fund (IMF), Washington DC 03: The Future Is in Your Hands: Youth and Africa Rising 04: Pravin Gordhan, Minister of Finance of South Africa 05: Alpha Condé, President of Guinea 06: Ngozi Okonjo-Iweala, Chair, GAVI Alliance, USA

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World Economic Forum on Africa 13 Governance and Institutions

Governance and Institutions: High Speed, But Good Brakes

Africa is in a hurry. For people of the continent to participate fully in the Fourth Industrial Revolution and share in its manifest growth benefits, things have got to change. The challenge is to drive that change and direct it strategically.

Every debate on the future of Africa Speed is the name of the game, Innovative, “out-of-the-box” thinking has an undercurrent of urgency. but haste and uncoordinated action is always to be encouraged, but in formulating public policy and new ideas and technologies must Paul Kagame, President of the in implementation can bring the be “herded” and fashioned for the Republic of Rwanda, epitomized the opposite: chaos, duplication, stultifying common good, towards inclusive mood by saying that Africa must use bureaucracy and corrosive corruption. growth. Thus, governance and opportunities presented by the Fourth Good governance and strong, effective institutions must be engines of Industrial Revolution to transform itself institutions are therefore of paramount facilitation – of partnerships and from a place of poverty into one that importance. linkages, of speeding things up. contributes as an equal on the world stage. “Africa should not be still playing Change is disruptive, and disruption But they also have a role as catch-up when the fifth revolution is good for innovation and safeguards to ensure a fast-moving comes around,” he declared. entrepreneurship – the drivers of digital future “does not leave anyone growth and job creation everywhere. behind,” according to Graça Machel, From the same platform came the But, as rural farmers have known for Founder, Graça Machel Trust (GMT), message that “Africa has no choice centuries, herding goats or cows in South Africa; Co-Chair of the World but to be ambitious” – from Akinwumi one general direction is the only path Economic Forum on Africa. The first Ayodeji Adesina, President, African to realizing their commercial value. three industrial revolutions left Africans Development Bank (AfDB), Abidjan, as a whole behind, with women in and a Co-Chair of the World Economic particular being abandoned, she said. Forum on Africa.

“The global economy is working for the small elite at the expense of the majority; wealth is just not trickling down.”

Winnie Byanyima Executive Director, Oxfam International, United Kingdom

14 World Economic Forum on Africa Linking the power of technology and greater nuance in financial markets, a Connecting Africa’s resources – the boundless resource of people can more balanced approach benefitting through digital transformation and be achieved through “good policies all parties and emanating from a new, through regional corridors – will be and accountability,” said Kagame. progressive international consensus. done through partnerships; public- An ideal would be international private partnerships, social compacts A clear message emerging from understanding of developmental between rulers and leaders, and pacts the 26th World Economic Forum on issues, with dedicated long-term between countries. Africa was that energy supply is the investment for the benefit of future continent’s highest priority. Even the generations everywhere – given Trust and understanding are the keys economic transformation and poverty Africa’s vast potential, particularly in to any prosperous partnership, as alleviation promised by the digital wave agriculture. Kagame mentioned. But partnerships will be impossible without the electrical can also be corrupt and corrosive to connections to power things. The present situation of a search for society. The president said the blight short-term yield, along with transient of corruption in Africa will be eliminated Well over half of the people on the sentiment, is damaging. Financial by good governance and by tightly run continent have no access to electrical markets need to be persuaded by institutions. “We must hold ourselves power in any form. The predicament African leaders and institutions of the and each other accountable,” he said. is plain and large-scale power need to don “a different set of lenses infrastructure plans have been laid when looking at Africa,” said Gordhan. all around Africa, with promises of universal electrification sometime In addition, Africa must work towards within the next two to three decades. building deeper, more stable financial But the demand for power is exploding markets of its own. Aggregation of right now, leading to calls for “smart pension funding, curbing massive energy” solutions incorporating tax dodging and seepage of wealth independent power producers, abroad, and bringing more small renewables, solar and battery devices business into the revenue net are all at household level and mini-grids. ways to strengthen funding sources.

Governments and regional institutions Regional integration has long been are the only structures that can a mantra for African development, properly coordinate such smart mixes, but never more so than now, with the switching and plugging across grids digital revolution banging on the door. to start to fill the vast gaps in power The benefits to trade of larger markets supply. “Africa is tired of being in the and “frictionless borders” are obvious, dark,” exclaimed Adesina. “This is but issues of sovereignty, nationalism why the African Development Bank and conflicting agendas create will spend $12.5 billion in the next five stumbling blocks. years on its New Deal in Electricity,” he said. His institution has its foot on the Sensitive and wise leadership – and “We need to drive a accelerator. nimble multilateral institutions – are needed to propel regionalization. continental free visa Both large-scale power stations Much has already been achieved, with and any significant upscaling of trade blocs such as the Tripartite Free access policy to renewable energy solutions require Trade Area of southern, eastern and major injections of capital. With northern Africa already up and running. eliminate challenges African capital markets being relatively A common currency exchange region associated with visa shallow, international financing is is imminent, too, but communication inevitably required. Here, local issues technology convergence is demanding access and promote of governance and well-functioning an even faster pace. institutions come under the glare of talent movement the “risk” spotlight. Unfortunately, as Politically, “there is a clear bias for many promising growth initiatives in action,” said Siyabonga Gama, Chief across the bloc.” Africa – both public and private – have Executive Officer, Transnet, South found, risk assessment box-ticking Africa, but added that “leadership and in international finance houses is “old vision” are needed to ensure that each Akinwumi Ayodeji school” and unnecessarily rigorous. country can contribute in a meaningful Adesina President, African way. Development Bank Pravin Gordhan, Minister of Finance of (AfDB), Abidjan; Co- South Africa, said he would like to see Chair of the World Economic Forum on Africa

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01: Makhtar Diop, Vice- 07: Jubril Adewale President, Africa, World Tinubu, Group Chief Bank, Washington DC Executive, Oando, 02: Bineta Diop, Nigeria; Jasandra Nyker, President, Femmes Africa Chief Executive Officer, Solidarité, Senegal BioTherm Energy, South 03: Rebuilding Trust and Africa; Edith Kimani, Integrity in Business Nairobi Correspondent, 04: Colin Dyer, President Deutsche Welle, and Chief Executive ; Jacqueline Officer, JLL, USA Novogratz, Founder and 05: Caroline Kende- Chief Executive Officer, Robb, Executive Director, Acumen, USA; Erastus Africa Progress Panel J. O. Mwencha, Deputy (APP), Switzerland Chairperson, African 06: Philipp Rösler, Head Union, Addis Ababa of the Centre for Regional 08: Global Shapers at the Strategies, Member of Transformation Hub the Managing Board, World Economic Forum

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16 World Economic Forum on Africa Kanayo F. Nwanze, President, International Fund for Agricultural Development (IFAD), Rome; Yonov Frederick Agah, Deputy Director-General, (WTO), Geneva; Susan Mboya, President, The Coca-Cola Africa Foundation; Group Director, Women's Economic Empowerment, Eurasia and Africa, The Coca-Cola Company, Kenya; Philip Kiriro, President and Chairman, Eastern Africa Farmers Federation (EAFF), Kenya; Gerardine Mukeshimana, Minister of Agriculture and Animal Resources of Rwanda How Farmers Can Grow and Grow

Envious eyes have been cast on Africa as a future Old systems of credit and financing for agriculture are breadbasket. The continent has the land, the climate clearly no longer meeting expectations, and fertile new and the farmers to feed the entire world for some methodologies and institutions are needed. Intervention considerable time. However, Africa presently contributes is also sorely needed in the value chain, with policy, less than 10% to the global food system, thanks to an financing, education and technology resources – not enduring legacy of poverty, subsistence farming, limited to mention government energy – being poured in the access to land and weak public policy on agriculture. direction of processing raw produce.

The arrival of the Fourth Industrial Revolution in the Spice growers of Kenya offer a remarkable example cornfields of Africa will see all that change. Technology is of how simple farmers can dramatically change their rapidly becoming a transformative tool for tilling the soil, fortunes and those of fellow villagers by venturing into with even the smallest subsistence farmer gaining instant beneficiation. A project to dry, grind, bottle and market access to market prices, weather forecasts, extension spices within a community managed to increase the services and transport network information. value of the crop forty-fold.

Innovation exists, but there is a patent need to scale up beyond the grassroots level. Productivity must be enhanced to feed not only lucrative export markets, but also Africa’s own burgeoning populations. Government intervention should clear the way for market forces to determine where food is grown – for optimal yield and economical proximity to produce markets.

Extension services and agricultural agencies are the institutions that can project regional and continental views – adopting and adapting innovation, balancing surpluses and shortages, devising strategies for climate fluctuations, and extending networks of trade and transport.

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01: Africa Social Switzerland; Sandy Partnerships, Royal DSM, 05: Babatunde Entrepreneurs of the Year Andelman, Chief Scientist ; Katherine Osotimehin, Award ceremony and Senior Vice- Lucey, Founder and Chief Executive 02: Klaus Schwab, President, Conservation Executive Officer, Solar Director, Founder and Executive International, USA; Sister, USA United Nations Chairman of the World Vincent Biruta, Minister 04: Liu Guijin, Special Population Fund Economic Forum, via of Natural Resources Representative of the (UNFPA), New video of Rwanda; Mohamed Chinese Government on York 03: Ricardo Meléndez- Abdel Samad, Co- African Affairs (2007- Ortiz, Chief Executive, Founder, Shagara, Egypt; 2011), Ministry of Foreign International Centre for Fokko Wientjes, Vice- Affairs of the People's 04 05 Trade and Sustainable President, Sustainability Republic of China Development (ICTSD), and Public-Private

18 World Economic Forum on Africa 01: James Mworia, Chief Executive Officer, 01 Centum, Kenya; Sneha Shah, Managing Director, Africa, Thomson Reuters, South Africa; Arnaud Ventura, Co-Founder and Chief Executive Officer, PlaNet Finance, ; Arjuna Costa, Partner, Omidyar Network, USA; Tsholofelo Mokgoabone, Coordinator, Programmes and Research, The Masire- Mwamba Office, Botswana 02: Donna Oosthuyse, Director, Capital Markets, JSE, South Africa; Pravin Gordhan, Minister of Finance of South Africa; Oscar Onyema, Chief Executive Officer, Nigerian Stock Exchange (NSE), Nigeria; Benno Ndulu, Governor of the Bank of Tanzania; Hendrik du Toit, Chief Executive Officer, Investec Asset Management, United Kingdom; Bob Diamond, Founder and Chief Executive Officer, Atlas Merchant Capital, USA; Miguel Azevedo, Head, Africa, Citi, United 02 Kingdom 03: Nudging People, Policies and Practices 03 04 04: David A. Lipton, First Deputy Managing Director, International Monetary Fund (IMF), Washington DC 05: Virtual Reality Experience 06: Rapelang Rabana, Founder and Chief Executive Officer, Rekindle Learning, South Africa 07: Charlotte Petri Gornitzka, Director- General, Swedish International Development Cooperation Agency (Sida),

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World Economic Forum on Africa 19 Human Development and Entrepreneurship

The Fourth Development Revolution

Rwanda may be the land of a thousand hills, but Africa is the continent of a thousand opportunities. Many of these can be found in information and communications technology but also, more importantly, in the innovative spirit and talent of its people, who want to improve their lives and see their countries prosper.

The Fourth Industrial Revolution is inclusive growth and future programme, providing citizens the new context within which Africa prosperity. The biggest business access to healthcare at the local will implement its development opportunities in the coming decade and national levels. In addition, agenda. Digital transformation has will be created by Africans who there is close to 100% countrywide the potential to accelerate and start businesses, generate jobs enrolment in primary schools. scale up models of partnership and wealth, and capture growth And the One Laptop per Child and delivery, both in terms of the opportunities. initiative has provided more than UN’s 2030 Agenda for Sustainable 100,000 laptops to children Development and the African “Development is about more than across the country, ensuring that Union’s Agenda 2063. However, money, or machines, or good even the poorest students have achieving the ambitious goals set policies – it’s about real people and access to digital education. Such out in these development agendas the lives they lead,” stressed Paul accomplishments may make will require significant investments Kagame, President of Rwanda. Rwanda the exception in Africa, but in education, healthcare and, above can serve as a role model for other all, people. Since the end of the Rwanda countries to follow. genocide in 1994, the country The need to invest strategically – through concerted efforts of The key for Africa, then, will be to in Africa’s young people is a reconciliation and unification – has adopt an innovative mindset and pressing issue, and building achieved much. Today, more than focus on skills development to entrepreneurship and the skills 90% of the country’s population ensure that digital transformation base would lead inevitably to is enrolled in the national health opportunities can be filled – and led

“Fix the infrastructure through public- private partnerships and we will build our processing capacity.”

Tony O. Elumelu Founder, The Tony Elumelu Foundation, Nigeria; Co-Chair of the World Economic Forum on Africa

20 World Economic Forum on Africa – by Africans. It will also mean that As a continent, Africa needs to now, more than ever, Africa must adopt technology to compete “I would like to become a creator, and not just a globally. Not investing in R&D see an electronic consumer, of technology. For that means that knowledge is not being to happen, however, the quality of developed, which in turn produces superhighway for education has to change. inefficiencies. It is essential to allow room and investment in the trade facilitation in “If we don’t fix the education creative process for failure and Africa.” system, we won’t live up to the experimentation in order to develop Tarek Sultan Al Essa potential of the continent,” said new ideas. Chief Executive Officer Dominic Barton, Global Managing and Vice-Chairman Director, McKinsey & Company, New ideas are also needed in of the Board, Agility, Kuwait; Co-Chair of USA, and Co-Chair of the World healthcare. According to the UN, the World Economic Economic Forum on Africa. sub-Saharan Africa has 11% of Forum on Africa the world’s population and bears Throughout the meeting, many 25% of the disease burden in the called for a revolution in education, world, but has only 3% of the urging reinvestment in both world’s medical professionals. methods and systems, which Despite technological advances in have not changed in decades. healthcare, many hospitals in Africa “The continent cannot transform To embrace the Fourth Industrial still lack electricity and trained without power. It cannot educate Revolution, African education health workers. its children without power,” said systems need to move away from Erastus J. O. Mwencha, Deputy a traditional focus on liberal arts “Healthcare is one of the basics Chairperson, African Union, Addis to curricula with more science that we have to get right to Ababa. and mathematics, with the aim ensure development, not just of producing more scientists and in Africa, but everywhere in the To address this issue, the African researchers. They also need to be world,” said Hans-Paul Bürkner, Development Bank (AfDB) will inclusive, with equal opportunity Chairman, Boston Consulting spend $12.5 billion in the next five for girls. “Nothing will move if we Group, Germany. He added that, years on its New Deal in Electricity, don’t put girls at the centre of while new technologies can help a partnership-driven effort with the development. They will change address healthcare issues in Africa, goal of achieving universal access the face of the continent,” said fundamentally it is the continent’s to energy in Africa by 2025 – a goal Babatunde Osotimehin, Executive people, basic supply chains and enshrined in the UN’s Sustainable Director, United Nations Population innovative partnerships that will Development Goals and the Africa Fund (UNFPA), New York. make the difference. Union’s Agenda 2063.

Alpha Condé, President of Guinea, Africa has no choice but to move recalled that, during the Ebola rapidly towards a smart mix of crisis in his country, technologies energy systems if it is to grow and – such as telemedicine and prosper in step with the rest of the online data management – were world, said Jubril Adewale Tinubu, “To reach the last important for fighting the disease Group Chief Executive, Oando, of the last, there and strengthening the healthcare Nigeria. “We have a wonderful system, but so was awareness- opportunity to leapfrog out of may need to be raising in remote areas by poverty – simply by building robust locally trained community health energy generation,” he said. a conversation workers. The key was not just the on what model technology, but also the people The transformative power of who use it. technology lies at the core of works for the rural the vision of a Fourth Industrial While investing in people and Revolution; however, it should be areas.” education is crucial to adapting understood that technology is not a and succeeding in the face of the Elizabeth Migwalla “magic bullet” in itself, but a tool for Senior Director, Fourth Industrial Revolution, it will wisely tackling the challenges faced Government Affairs, not be possible without power. by Africa. Africa, Qualcomm, One of the greatest priorities for the South Africa continent is universal electrification to allow digital technology to play its role in transforming lives.

World Economic Forum on Africa 21 01: Cyril M. Ramaphosa, 01 01 Deputy President of South Africa; Paul Kagame, President of the Republic of Rwanda; Macky Sall, President of Senegal; Akinwumi Ayodeji Adesina, President, African Development Bank (AfDB), Abidjan; Ali Bongo Ondimba, President of Gabon; Alpha Condé, President of Guinea 02: Cynthia Gordon, Executive Vice-President and Chief Executive Officer, Africa Division, Millicom Services UK, United Kingdom 03: Nudging People, Policies and Practices 04: Farah Golant, Chief Executive Officer, Girl Effect, United Kingdom 05: Osagie Ehanire, Minister of State of Health of Nigeria 06: Sameer Hajee, Chief Executive Officer, Nuru Energy Group, Rwanda 02 03 07: John , Vice- Chairman, GE, USA 08: Edwin Macharia, Partner, Dalberg Global Development Advisors, Kenya; Temitope Ola, Chief Executive Officer, Koemei, Switzerland; Marianne Eve Jamme, Founder and Chief Executive Officer, SpotOne Global Solutions, United Kingdom; Ding Shaohua, Senior Vice-President, Huawei Technologies, People's Republic of 04 China; Cina Lawson, Minister of Posts and Digital Economy of ; Austin Okere, Founder and Executive Vice- Chairman, Computer Warehouse Group, Nigeria

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22 World Economic Forum on Africa Transformation of Healthcare session Transforming Africa’s Health Systems

With traditional, capital-intensive and hospital-centred Another partnership is the 6 County initiative in Kenya. approaches to healthcare often proving unsustainable and Spearheaded by the United Nation Population Fund ineffective, Africa faces a critical need to embrace new (UNFPA) with support from several companies (Safaricom, technology and big data in ways that enable people to live Huawei, Philips, GSK and MSD), the project aims to tackle healthier and longer lives. This represents a huge “leapfrog” maternal mortality and improve reproductive health. It opportunity. also serves as a platform for telemedicine solutions, family planning activities and training. Another collaborative The World Economic Forum’s Health Systems: Leapfrogging initiative in Kenya called M-Tiba uses mobile phones to in Emerging Economies report shows that African and other administer healthcare payments between patients, payers developing nations can close the healthcare gap in their and healthcare providers. This “mobile health wallet” countries and reach OECD standards within years rather is transforming financial interactions and benefiting all than decades through innovative public-private partnerships. stakeholders – patients use the system to save, borrow and share money for healthcare at low cost, while public and Take for example Nigeria, which at current rates would private payers can use the mobile app to offer healthcare take 300 years to achieve the same level of access to a financing such as low-cost insurance. doctor or health professional as in Europe and the today. To cut down the waiting time, Nigeria’s south- “For decades, public-private partnerships in healthcare western Ogun State has developed an innovative insurance relied on task outsourcing to some private players, an scheme, which aims to provide healthcare coverage to outdated approach which does not fit the requirements more than 100,000 people by 2018, most of them women for a real transformation of health systems,” said Arnaud and children; improve e-health and sourcing of medical Bernaert, Head of the World Economic Forum’s Global products; and upgrade primary care technologies and other Health and Healthcare Industries. “These initiatives could health services. Known as the Araya scheme, it is financed allow countries to leapfrog their health systems and make by the Ogun State government, and supported by the innovative transformations a reality.” , the AHME consortium of private companies and NGOs such as PharmAccess, and the World Economic Forum.

World Economic Forum on Africa 23 01: Colin McElwee, Co- 01 Founder, Worldreader, USA; Rapelang Rabana, Founder and Chief Executive Officer, Rekindle Learning, South Africa; Jean Philbert Nsengimana, Minister of Youth and Information Communication Technology of Rwanda; Aryn Baker, Bureau Chief, Africa, Time International, South Africa; Fred Swaniker, Founder and Chief Executive Officer, African Leadership Group, South Africa; Temitope Ola, Chief Executive Officer, Koemei, Switzerland 02: Beatrice Marshall, TV Anchor, CCTV Africa, Kenya; Arancha Gonzalez Laya, Executive Director, International Trade Centre (ITC), Geneva; Liu Guijin, Special Representative of the Chinese Government on African Affairs (2007-2011), Ministry of Foreign Affairs, People's Republic of China; Michael Froman, US Trade Representative; Siyabonga Gama, Chief Executive Officer, Transnet, South Africa; Tarek Sultan Al Essa, Chief Executive Officer and Vice-Chairman of the Board, Agility, Kuwait 03: Towards an Integrated Africa

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24 World Economic Forum on Africa 01: Tony Blair, Prime 01 Minister of the United Kingdom (1997-2007); Patron, Africa Governance Initiative; Paul Kagame, President of the Republic of Rwanda; Howard Buffett, Chairman and Chief Executive Officer, Howard G. Buffett Foundation, USA 02: Hendrik du Toit, Chief Executive Officer, Investec Asset Management, 02 United Kingdom 03: Elizabeth Migwalla, Senior Director, 03 Government Affairs, Africa, Qualcomm, South Africa; , President Emeritus, Jacques Delors Institute, France 04: Caroline Kende- Robb, Executive Director, Africa Progress Panel (APP), Switzerland; Cyril M. Ramaphosa, Deputy President of South Africa; Colin Dyer, President and Chief Executive Officer, JLL, USA; Dana Hyde, Chief Executive Officer, Millennium Challenge Corporation (MCC); John Rice, Vice-Chairman, GE, USA 05: Cyril M. Ramaphosa, Deputy President of South Africa 06: SDGs: From Promise to Prosperity 07: Oscar Onyema, Chief Executive Officer, Nigerian 04 Stock Exchange (NSE) 08: Uhuru Kenyatta, President of Kenya 05 09: Jasandra Nyker, Chief Executive Officer, BioTherm Energy, South Africa

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01: Stories from Africa: 07: Stories from Africa: Education Mobile Connectivity 02: Gisele Yitamben, 08: Dani Richa, Chairman Founder and President, and Chief Executive Association pour le Officer, Middle East, Soutien et l'Appui à la Africa and , Femme Entrepreneur BBDO Worldwide, United (ASAFE), Cameroon Arab Emirates 03: Daljit Singh, 09: Makhtar Diop, Vice- President, Fortis President, Africa, World Healthcare, Bank, Washington DC 04: The Future Is in Your Hands: Youth and Africa Rising 05: Press Conference 07 BBC Africa: Richer but not Freer 06: Philipp Rösler, Head 08 of the Centre for Regional Strategies, Member of the Managing Board, World Economic Forum; Cyril M. Ramaphosa, Deputy President of South Africa 09

26 World Economic Forum on Africa Outcomes of the Meeting

The meeting saw progress across a number of workstreams linked to the Forum’s 10 Global Challenges:

– The Grow Africa initiative, co-led by the Forum, NEPAD and the African Union, announced that, to date, $2.3 billion of private-sector finance has been invested, benefitting 10 million smallholder farmers and creating 88,000 jobs. – To tackle cybercrime, Busingye Johnston, Minister of Justice of Rwanda, signed up to the Forum’s Recommendations for Public-Private Partnership against Cybercrime, which was launched in Davos in January. – The Sustainable Development Investment Partnership (SDIP), an initiative led by the Forum and the OECD, announced it is to establish a regional hub dedicated to facilitating investment in African infrastructure and development projects, initially targeting 16 projects with a combined value of over $20 billion. – In the Forum’s Future of Health challenge, an initiative was launched in Kenya aimed at improving maternal and child health in Kenya. A second ongoing programme, the Araya health insurance initiative in Ogun State, was endorsed by a new local government. It is a milestone that could provide coverage to more than 100,000 people by 2018. – The Forum’s Africa Skills Initiative brought organizations including MMI, GE, Google, Agility, the Rockefeller Foundation, Yellowwoods and the University of Witswatersrand together to form a coalition committed to tackling Africa’s shortage of future-oriented STEM and ICT skills. – Forty Chinese participants met for a special China Breakfast, marking the first China community session at a World Economic Forum on Africa. At the meeting, Chinese delegates, including the Vice-Minister of Cyberspace Administration of China, pledged to continuously support Africa on its digital development, with an agreement for Rwanda to launch a promotional campaign at the third Internet Forum this fall in China. – The Rockefeller Foundation announced a $1 million Innovation Challenge, aimed at finding ways to improve the shelf life of this important staple crop. – The Forum’s community of Global Shapers made sure the millennial generation’s voice was heard in all critical discussions affecting Africa’s future, including in the digital space, where leaders from their highly successful #internet4all campaign contributed to discussions on how to break down the region’s digital divide.

World Economic Forum on Africa 27 Acknowledgements

The World Economic Forum wishes Strategic Foundation to recognize the support of the Partners following companies as Partners and Supporters of the World Economic Bill & Melinda Gates Foundation Forum on Africa. The Rockefeller Foundation Wellcome Trust

Strategic Partners Strategic Partner A.T. Kearney Associates ABB The Abraaj Group Acciona SA African Rainbow Minerals Eurasian Resources Group Agility Hinduja Group of Companies ArcelorMittal SAP SE Bain & Company Transnet SOC Ltd The Boston Consulting Group UPL Ltd BT Group Burda Media Cisco Regional Partners Citi The Coca-Cola Company African Development Bank Credit Suisse Africa Group Limited Dangote Group Development Bank of Southern Africa Deloitte Industrial Development Corporation of Deutsche Post DHL South Africa Ltd (IDC) Ericsson Essar EY Regional Associates Fluor Corporation GE Africa Export-Import Bank Google Dewan Housing Finance Corporation Heidrick & Struggles Ecobank Transnational Inc. Hitachi Export Credit Insurance Corporation of HSBC South Africa (ECIC) Huawei Technologies Export Trading Group (ETG) JLL FirstRand Ltd Kudelski Group Investec Asset Management Lazard MMI Holdings Limited MasterCard Orrick Herrington & Sutcliffe McKinsey & Company Naspers Microsoft Corporation Nigeria LNG Oando Plc MSD Orion Group Novartis Overseas Infrastructure Alliance (India) Old Mutual Puma Energy Holdings Pte Ltd Omnicom Group Sasol PwC The Standard Bank Group Limited Publicis Groupe Telkom SA SOC Limited Reliance Industries United Bank for Africa Plc Royal DSM Royal Philips Schneider Electric SE Provider Siemens Standard Chartered Bank africapractice Swiss Re Thomson Reuters Host Broadcaster UPS Visa Inc. Rwanda Broadcasting Agency (RBA)

28 World Economic Forum on Africa Digital Update Contributors

Elsie S. Kanza, Head of Africa, Member of the Executive Committee, World Economic Forum

The report was written by Dianna Games, Michael Moon and Mark The event page of the World Economic Forum on Africa provides more Schulman. The Forum would also information from the meeting, including photographs, press releases, social like to thank official writers Sandra media and webcasts of selected sessions. Muhwezi and Norbert Haguma for their work at the World Economic http://wef.ch/af16 Forum on Africa.

Editing and Production Janet Hill, Editor Kamal Kamaoui, Head of Production and Design

Photographers Jakob Polacsek Benedikt Von Loebell

http://wef.ch/af16report

World Economic Forum on Africa 29 30 World Economic Forum on Africa

Upcoming Meetings

World Economic Forum on ASEAN Kuala Lumpur, Malaysia 1-2 June 2016

The World Economic Forum will celebrate 25 years of shaping the regional agenda in South-East Asia. In that time, the region has achieved great progress, culminating in the launch of the ASEAN Economic Community. The community demonstrates the region’s aspiration to remove barriers to the free flow of goods, services and people while improving sustainability, infrastructure and livelihoods. But, the global economic context has become much tougher, from the slowing and rebalancing of China and the normalization of monetary policy in the US, to the recessions in many emerging markets and the attendant slump in global trade. Just as important are the changing economic architecture and geo- of the region. As chair of ASEAN in 2015, Malaysia successfully ushered in the arrival of the AEC. In this context, this meeting will be an ideal platform for senior decision-makers from a range of sectors to facilitate greater collaboration between industry, government and civil society, and to address regional challenges. For more information, email: [email protected]

World Economic Forum on Latin America Medellín, Colombia 16-17 June 2016

After almost a decade of continual growth, Latin America has arrived at a crossroads, both in the face of global developments and regional transformation. On one hand, growth rates are stalling, aggravated by external macroeconomic pressures, falling commodity prices and a low savings rate in various countries. On the other hand, the region is entering a new phase of international trade and witnessing historic political milestones. The World Economic Forum on Latin America brings together leaders from all sectors, as well as academic thought leaders and millennials, to explore how a new prosperity agenda can be actively shaped. Returning to Colombia, the meeting will be hosted in Medellín, a stunning example of successful 21st-century urban innovation. At the same time, Colombia is close to a historic accord that promises opportunities for sustained peace, economic progress and social inclusion. These inspiring achievements are a reminder that socio-economic advances require constant attention as well as concerted and strategic action. For more information, email: [email protected]

Annual Meeting of the New Champions 2016 Tianjin, People’s Republic of China 26-28 June

Established in 2007 as the foremost global gathering on science, technology and innovation, the Annual Meeting of the New Champions convenes the next generation of fast-growing enterprises shaping the future of business and society, and leaders from major multinationals as well as government, media, academia and civil society. Join a community of more than 1,500 participants from 90 countries for a true global experience addressing today’s unprecedented set of intertwined global challenges – economic, political, societal and environmental. Taking place in conjunction with the Annual Meeting of the New Champions, the Industry Strategy Meeting 2016 will convene the Forum’s community of Industry Strategy Officers – senior executives of Forum Industry Partner companies – to collaborate on understanding and defining the major disruptions that are impacting the future of industry, highlight critical interface between sectors and explore how industries can shift from managing change to pioneering change in the context of the Fourth Industrial Revolution. For more information, email: [email protected]

For a full list of upcoming meetings, visit the World Economic Forum’s website: www.weforum.org

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The Forum engages the foremost political, business and other leaders of society to shape global, regional and industry agendas.

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