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AFRICA MICRO

KEY SECTOR TRENDS AND OUTLOOK

10% 5% Morocco(FR)V erdeEgy ptPrinc ipeAlgeria(UK)S udanDj ibo uti Gam biaGabonNamibiaCong oTog o(FR) d'Iv oireEritreaRwandaComorosBissauGuineaRep.C hadBurundiFasoRep.LeoneEthiopia ReunionCapeHelenaMay otte- AfricanBurkinaD em.Sierra &CoteGuineaEquatorial Tom eSaintCentralCongo, Sao

0%

Source: Joab’s Technologies and Research. Capital Joab’s Technologies and Research.

Angola

15%

0 Ethiopia

20%

2

Nigeria

25%

4

Algeria

30%

6

Kenya

35%

8

Ghana

40%

10

Libya

45%

12

Egypt Morocc o

Africa: Internet Penetration

Personal Computers / 100 People (2009 Data)

Africa.S

Broadband service is being improved and within a few years it should be fairly common and more affordable. Some nations such as Botswana, Ghana, Rwanda and Kenya have already laid down fiber optical networks. Internet connections in parts of Rwanda are faster and better than in some developed countries. In addition, there are several major cable projects that will improve broadband service including the East Africa Submarine System (EASSy) which will run along the eastern coast of Africa from Port Sudan to Mtunzini (South Africa) via Mombasa (Kenya), Dar es Salaam and Maputo.

Packard, Acer and Lenovo all have offices in Africa and have seen computer sales rise at a fast clip in recent years.

Tunisia Sudan

is a result of an inadequate electricity supply, high connection charges, the inability of many people to afford the cost of a personal computer and inadequate telecommunication infrastructure. Low levels of literacy in many countries also militate against internet use. According to the World Bank, there were just 0.2 fixed internet subscribers per 100 people in Sub-Saharan Africa in 2009, 18 personal computers per 100 people, 0.1 broadband subscribers per 100 people and the cost of fixed broadband service was an average of $88 a month, putting it beyond the reach of the general population. In the US, by comparison, there were 78.1 fixed internet subscribers per 100 people, 80.5 personal computers per 100 people, 27.8 broadband subscribers per 100 people and the cost of fixed broadband service was an average of $20 a month.

Source: World Bank Africa is Facebook’s fastest growing market. The fastest growing African countries in 2010 were Nigeria (1.4m new users), Egypt (1.6m new users), and South Africa (750,000 new users).

INFRASTRUCTURE Poor infrastructure is a major problem in Africa and it is an impediment to growth and to doing business. In most African countries, the basic infrastructure is either inadequate or decrepit. In Liberia, Sierra Leone, the Ivory Coast and the Democratic Republic of the Congo, much of the infrastructure has not been rebuilt or repaired following periods of civil strife. African countries have placed a high priority on improving their infrastructure and have stepped up their expenditures in this area. According to the McKinsey Global Institute, African governments and private sources are presently investing about $72 billion a year in new infrastructure across the continent. The AfDB however has estimated Sub-Saharan Africa needs to spend a collective $118 billion per year to modernize and upgrade its infrastructure, achieve its development goals, and maintain its high growth rate. As Africa improves and develops its infrastructure, there will be a great demand for steel, cement, glass, asphalt, aluminum, and plastics. There is clearly much work to be done.

2008 Data, Courtesy of World Bank

There is plenty of room for growth in the ICT space given the low level of computer use, which is well below the emerging nations of Latin America and Asia. In Brazil for instance, there are 16.1 personal computers per 100 people, in Malaysia, there are 23.1, in Thailand, there are 6.7 and in Chile there are 14.1. In Nigeria, the ratio is just 0.9 per 100 people while in Ghana, it is 1.1. Even in South Africa, the most advanced economy on the continent, the figure is only 8.4. Apple, Dell, Hewlett Joab’s Technologies and Research, Natu Court Flat B.

Airports The busiest airports in Africa in terms of passengers served in 2010 were Johannesburg, Cairo, Sharm-el Sheikh, Capetown, Hurghada (Egypt), Casablanca, Lagos, Nairobi, Durban, and Tunis. The largest airlines by passengers carried were Egyptair, South Africa Airways, Royal Air Maroc, ComAir (South Africa), Air Algerie, Ethiopian Airlines, Kenyan Airways, TunisAir, Arik Air (Nigeria), and Air Mauritius. Of these airlines, Egyptair, South Africa Airways, Royal Air Maroc, Air Algerie, Ethiopian Page 57 of 104

Equity Research in Africa, Like an Electric Train Africa is picking up, a True Emerging Market  

Economic analysis of Africa as a whole, as well as of particular countries and sectors, with special regard to their potential as investment...

Equity Research in Africa, Like an Electric Train Africa is picking up, a True Emerging Market  

Economic analysis of Africa as a whole, as well as of particular countries and sectors, with special regard to their potential as investment...

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