Twenty

years from now you will be more disappointed by the things that you didnt do than by the ones you did do.
So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails.
Explore. Dream. Discover. - Mark Twain

Vol. III, No. 5, 30th January 2015

Another BRIC in the Wall

Chart topping single Do they know its Christmas by Band Aid (a one-off grouping of various British and Irish singers) is one of my
all time favorite songs. This song was inspired by the 1983-85 famine in Ethiopia and has had a number of newer versions ever
since. Famine, poverty, corruption, conflict and disease in Africa has inspired various artistic ventures originating from the West.
Blood Diamond, Hotel Rwanda, The Last King of Scotland and other Hollywood flicks have added to the stereotyping of Africa
just as Band Aids number single has done. Band Aids latest version of Do they knowwas released in 2014 to raise funds for the
Ebola crisis in West Africa. But there is also another side to this story. A few artists had refused to be a part of Band Aid mentioning
that the felt the lyrics to be condescending and non-reflective of the current realities in Africa.
This new narrative coming out of Africa earlier known as the dark continent - is getting brighter, more optimistic, and realistic.
Africa is today home to a billion people. The region has begun attracting serious amounts of private capital; at $50 billion a year,
such flows now exceed foreign aid. At the same time, poverty is declining. Since 1996, the average poverty rate in sub-Saharan
African countries has fallen by about one percentage point a year, and between 2005 and 2008, the portion of Africans in the region
living on less than $1.25 a day fell for the first time, from 52 percent to 48 percent. If the regions stable countries continue growing
at the average rates they have enjoyed for the last decade, most of them will reach a per capita gross national income of $1,000 by
2025, which the World Bank classifies as middle income. The region has also made great strides in education and health care.
Between 2000 and 2008, secondary school enrollment increased by nearly 50 percent, and over the past decade, life expectancy
has increased by about ten percent.i
The multinationals have understood this very well. Coke came up with its A billion reasons to believe in Africa campaign to
encourage a fresh look at the beautiful continent. Diageo, makers of Johnny Walker and Smirnoff, is fast tracking big investments in
Africas beer thirsty market. Over the last two years Walmart completed a $2.4 billion acquisition of South African retailer Massmart,
IBM announced a $1.5 billion investment and various other multinationals have set aside funds or have already started investments
in manufacturing, logistics and marketing of various global and Africa-centric products and services. The Chinese already
dominate the infrastructure space which is a USD 1 trillion opportunity. India is hanging on to the small investments it has made
and the West, which has already been left behind, is now shifting its focus from aid to investments. Africa, alongside other
emerging economies (Brazil, Russia, India and China BRIC) in Asia and South America, is an excellent opportunity not only to
kick-start global economic growth but also to sustain long-term growth and potentially also take millions of people out of poverty.
Africa, the worlds youngest continent which is also the cradle of humanity- beckons. It truly is another BRIC in the wall!
When the missionaries came to Africa they had the Bible and we had the land. They said 'Let us pray.' We closed our eyes. When we opened
them we had the Bible and they had the land.
Desmond Tutu

Written by Dr. Amit Mittal

i

Devarajan, S., & Fengler, W. (2013). Africa's Economic Boom: Why the Pessimists and the Optimists are Both Right. Foreign Affairs, 92, 68.

Published by: -
Chitkara Business School,
Chitkara University, Punjab

Disclaimer: This Newsletter is prepared to enhance awareness and for information

only. The information is taken from sources believed to be reliable but is not
guaranteed by Chitkara Business School as to its accuracy. Chitkara Business
School will not be responsible for any interpretations, opinions generated or
decisions taken by readers.