Africa Digest : Trends and issues in business Vol. 20

Abstract

The Africa Digest is a fortnightly e-newsletter scanning the key trends in the macro-environment and industry to promote knowledge and raise understanding of business in Africa. This issue explores: 1. Developments in the Financial Services Sector - The African financial services sector experienced several recent developments. These include the challenge of mobile (or digital) money, the entry of large foreign banks to the continent, the aspirations of several local banks to develop a Pan-African footprint, and a series of local and cross-border mergers and acquisitions. These trends continue, with the Covid-19 pandemic challenging some players, while highlighting poor governance in others. 2. Developments in Investments and Economics - The Covid-19 pandemic continues to impact every economy in the world. Foreign direct investments have ground to a halt, with some sectors damaged more than others. 3. Developments in the Pharmaceutical Industry - The NTU-SBF Centre for African Studies previously noted the potential for development of a local/continental pharmaceutical industry in Africa in earlier Digests. The continent has a huge burden of disease and imports most of its medication. There is ample opportunity for investment in this sector. 4. Developments in Retail - Retail companies face mixed fortunes in Africa. Some are struggling, whilst others have been growing in leaps and bounds. For some, Covid-19 sounded the death knell after a brief period of struggle. 5. Developments in Trading - Covid-19 already severely impacts global trading. Global supply chains have all taken a knock. Many logistics experts question the use of long global supply chains and suggest adopting shorter regional supply chains, or in some cases national supply chains, to reduce vulnerability to global shocks such as Covid-19.