Ronak Gopaldas

Mauritius was placed on the Financial Action Task Force (FATF) grey list in February 2020 and blacklisted by the European Union later that year for strategic deficiencies in their anti-money laundering and counter-terrorist financing frameworks. Long considered an oasis of good governance and prudent financial management on the African continent, the decisions inflicted significant reputational and economic damage on the country at a time when it was already reeling from the consequences of the COVID-19 pandemic. However, with swift and pragmatic decision-making, authorities were able to mitigate its most damaging consequences and quickly reverse the decision. Considering the recent greylistings…

With megacities such as Lagos, Nairobi, Cairo, Kinshasa, Luanda, Johannesburg and Dar es Salaam set to become increasingly important continental economic hubs, this looming explosion in urbanisation has created a set of unique challenges for policymakers and businesses across Africa. Indeed, as pressure for limited resources intensifies due to population migration, there will be a growing need for innovative and sustainable solutions to ensure these potential gains are met. Transport, housing, and financial inclusion are all set to be key priorities as African cities look to transform themselves, achieve prosperity, and avoid socio-economic distress. Against this backdrop, what can African…

According to the World Bank, the blue economy is the “sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of the ocean”. The blue economy has great potential to contribute to higher and faster GDP growth across Africa. The continent’s seafood, aquaculture, and fisheries industries employ 12.3 million people, at least a third of whom are women.  The sector provides food security and nutrition for more than 200 million Africans. It is also a vital source of foreign currency and tax revenue, and its contribution to African GDP is almost 2%. Moreover, Africa’s…

Africa is emerging as a theatre of competition for global powers and there are significant opportunities on offer for savvy African states to exploit – most notably in the energy arena.  Indeed, as the concept of “friendshoring” (manufacturing and sourcing from countries that are geopolitical allies) becomes more popular in the wake of the pandemic and Ukraine war, countries that position themselves strategically can capitalise on increased investment flows and strategic support. Although this trend is still in its nascent stages, there is room for optimism as both the modes and universe of potential investment expand for African countries.  …

To achieve inclusive governance in an African context, it is quite clear that a capable, caring, and effective state is essential. The role of the state in driving meaningful economic transformation has become even more pronounced in the aftermath of the pandemic. However, the current capabilities of government entities and agencies across the continent leave a lot to be desired, with a lack of technical skills and know-how often constraining their ability to function effectively. Solving this problem will require programmes and policies that attract technocrats into the public service, as well as a wholesale strategy to professionalise service delivery. …

In the aftermath of COVID-19, organised crime has soared across Africa. Indeed, as noted by the Institute for Security Studies (ISS), despite lockdowns and movement restrictions due to the pandemic, organised criminals were able to adapt more effectively than legal entities to the disruptions and thus exploit them advantageously. Though initially somewhat surprising, this “pandemic pivot” makes sense. Times of crisis frequently stretch formal governance systems, giving illicit market actors an opportunity to capitalise. Moreover, reduced social and public services leave desperate people in search of alternative forms of support, sustenance and leadership. The pandemic was no different –…

The number of private universities operating in Africa is growing, and the sector is generating a groundswell of interest among investors. In 1960 there were seven private universities in Africa, according to a 2012 statement by Professor Olugbemiro Jegede, secretary-general of the Association of African Universities. By 1990 there were 27, and by 2006 about 22% of student enrolment on the continent was at private institutions, he said. The African Leadership University plans to build a network of 25 universities across Africa in the next 25 to 30 years that will educate 250,000 students at any one time, one of…

Africa: banking innovation While only 11% of Africans have bank accounts, some 80% have mobile phones: a huge new mobile banking market beckons across the continent By Ronak Gopaldas By the year 2030, two billion people will use their cell phones to save, lend and make payments, according to Bill Gates. Nowhere will this be more prominent than on the African continent which is fast emerging as the world’s leader in mobile banking and payment technology platforms due to the widespread adoption of mobile phones. For banks on the continent, this presents both a significant challenge and opportunity, as the…

Why manufacturing is key to creating jobs and building diversified economies Can the continent make it? By Ronak Gopaldas Côte d’Ivoire and Ghana produce 53% of the world’s cocoa. But the supermarket shelves in Abidjan and Accra, their respective capitals, are stacked with chocolates imported from Switzerland and the UK, countries that do not farm cocoa. This scenario is repeated throughout the continent in different contexts. For example Nigeria, the world’s sixth-largest producer of crude oil, exports more than 80% of its oil but cannot refine enough for local consumption. In 2013 it spent about $6 billion subsidising…

SDGs and global growth Changing political and economic dynamics are set to make achieving the Sustainable Development Goals by 2030 a great deal more difficult By Ronak Gopaldas On the 25 September 2015, 193 countries adopted 17 Sustainable Development Goals (SDGs) at the UN, which would come into force on 1 January, 2016. The goals, which seek to eradicate poverty, hunger and inequality, to achieve universal access to health care, clean water and sanitation, education and decent work, and fundamentally make the world a better place for all who inhabit it, were set to be achieved by 2030, representing an…