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Erschienen in:
Introduction Kapitel lesen Erstes Kapitel lesen

2020 | OriginalPaper | Buchkapitel

4. Political and Macroeconomic Situation in Sub-Saharan Africa

verfasst von : Philipp von Carlowitz

Erschienen in: Success in the Bottom of the Pyramid Market in Africa

Verlag: Springer International Publishing

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Abstract

Africa consists of 54 very heterogeneous countries from a geographic, ethnographic, economic, religious, and political point of view. Of these, 48 countries are in Sub-Saharan Africa. Many countries are considered to be growth markets. Yet they exhibit political and economic instabilities. Also, the share of the poor population, the Bottom of the Pyramid, is large in nearly all countries, be it in rural or urban areas. Doing business conditions are improving in many countries but from a low base. So business circumstances are difficult and different from developed markets which needs to be reflected in a business approach, especially for the Bottom of the Pyramid segment.

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Vorheriges Kapitel Business Models in the Bottom of the Pyramid Context
Nächstes Kapitel Healthcare System and Pharmaceutical Market in Sub-Saharan Africa
Fußnoten
1
Western Sahara is not considered as a separate country as it remains a disputed territory.
 
2
Note that the data availability is sketchy and the numbers are not necessarily for the same year but all from the period 2013–2016.
 
3
The Afrobarometer surveys eight SSA countries on a regular basis. They are: Benin, Côte d’Ivoire, Kenya, Malawi, Mali, Uganda, Zambia, Zimbabwe. In each country more than 1000 citizens are interviewed.
 
4
For comparison: the USA (0.41) and Germany (0.32).
 
5
This value is the CAGR of the change of the urbanization rate. The 4.1% p.a. mentioned earlier relates to the urban population.
 
6
The economic implications of the Covid-19 pandemic are not included in this chapter as at time of publication the pandemic was ongoing. For a first assessment see IMF (2020). For the purpose of this book the medium- and long-term outlook suffices.
 
7
One reason for the strong decline in mining and utilities is the drop in investment activities in the utility infrastructure sector due to a lack of government funds as a result of the low tax income caused by the drop in commodity prices.
 
8
Again, it has to be noted that the short-term forecast is overshadowed by the Covid-19 pandemic.
 
9
The share of intra-African trade hovers at well below 20% of total exports. Despite various regional integration agreements across the continent there was little trade creation. There are two main causes for this: (1) the manufacturing base in Africa is very limited reducing the scope of products that can be traded; (2) many of the regional integration agreements do not work as well as planned (AfDB et al. 2017).
 
10
The diversification index shows the number of export product lines accounting for more than 75% of total exports.
 
11
A figure greater than 100% indicates relending of credit funds.
 
12
The range was calculated by multiplying the number of people in each income segment with (a) the lower value of the respective range (USD 1.90–3.20 and USD 3.20–5.50) and (b) with the higher value of each range. Then the two segment USD-values were added to give the shown range.
 
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Metadaten
Titel
Political and Macroeconomic Situation in Sub-Saharan Africa
verfasst von
Philipp von Carlowitz
Copyright-Jahr
2020
Buch
Success in the Bottom of the Pyramid Market in Africa

Print ISBN: 978-3-030-59067-3

Electronic ISBN: 978-3-030-59068-0

Copyright-Jahr: 2020

DOI
https://doi.org/10.1007/978-3-030-59068-0_4