John Campbell

Africa in Transition

Campbell tracks political and security developments across sub-Saharan Africa.

Posts by Category

Showing posts for "Investment"

Africa’s Changing Economic Landscape

by Guest Blogger for John Campbell
A truck is loaded with bags of tea leaves at a plantation in Nandi Hills, in Kenya's highlands region west of capital Nairobi, November 5, 2014. (Reuters/Noor Khamis) A truck is loaded with bags of tea leaves at a plantation in Nandi Hills, in Kenya's highlands region west of capital Nairobi, November 5, 2014. (Reuters/Noor Khamis)

This is a guest post by Allen Grane, research associate for the Council on Foreign Relations Africa Studies program.

Bloomberg Markets’ Michael Cohen and Helen Nyambura-Mwaura have analyzed the current state of Africa’s economies in a very interesting article. They point out that despite the current poor performance of Africa’s larger economies (particularly Nigeria and South Africa), some of the continent’s smaller economies, especially in East Africa, are doing well and will likely continue to do so. Read more »

Home Truths About the Size of Nigeria’s Economy

by John Campbell
Traders work at the Nigerian Stock Exchange in Lagos, February 13, 2015. The naira has crashed through the key level of 200 to the dollar this week in a rout sparked by weak oil prices and escalating tension over the postponement of a presidential election in Africa's biggest economy. (Reuters /Joe Penney) Traders work at the Nigerian Stock Exchange in Lagos, February 13, 2015. The naira has crashed through the key level of 200 to the dollar this week in a rout sparked by weak oil prices and escalating tension over the postponement of a presidential election in Africa's biggest economy. (Reuters /Joe Penney)

In 2014, following the first revision of Nigeria’s gross domestic product data in two decades, Abuja announced that its economy had overtaken South Africa’s as the largest in Africa. Using the rebased data, the International Monetary Fund (IMF) reported that that Nigeria’s economy grew at 12.7 percent between 2012 and 2013. Thereafter, there was some triumphalist rhetoric about the size and strength of the economy from personalities in then-president Goodluck Jonathan’s administration in the run up to the 2015 elections and among those promoting foreign investment in Nigeria. However, in 2016, reflecting the dramatic fall in petroleum prices and the value of the national currency, the naira, the IMF concluded that Nigeria’s GDP had fallen behind that of South Africa. The Economist noted that foreign investors are likely to be discouraged by the latest figures. Read more »

Illegal Mining and the Role of “Zama Zamas” in South Africa

by Guest Blogger for John Campbell
A miner is seen underground at Lonmin Plc's Karee mine in Marikana, Rustenburg 100 km (62 miles) northwest of Johannesburg, March 5, 2013. (Reuters/Siphiwe Sibeko) A miner is seen underground at Lonmin Plc's Karee mine in Marikana, Rustenburg 100 km (62 miles) northwest of Johannesburg, March 5, 2013. (Reuters/Siphiwe Sibeko)

Nathan Birhanu is an intern for the Council on Foreign Relations Africa Studies program. He is a graduate of Fordham University’s Graduate Program in International Political Economy & Development.

In recent years, the mining industry has struggled to turn a profit due to a slowdown in demand from China’s economy and an oversupply from producers. South Africa’s mining companies, who export primarily platinum, iron ore, gold, coal, and manganese, have been heavily affected by the downturn. Read more »

Africans in China: The Pivot Back

by Guest Blogger for John Campbell
African traders buy clothing at a shopping mall in Guangzhou July 31, 2009. (Reuters/Tyrone Siu) African traders buy clothing at a shopping mall in Guangzhou July 31, 2009. (Reuters/Tyrone Siu)

This piece has been co-authored by Nathan Birhanu and Bochen Han. Nathan is an intern for the Council on Foreign Relations Africa Studies program and is a graduate of Fordham University’s Graduate Program in International Political Economy & Development. Bochen is an intern for the Council on Foreign Relations Asia Studies program and is an undergraduate majoring in political science at Duke University. Read more »

BREXIT and Africa

by John Campbell
People chat in front of an electronic board displaying movements in major indices at the Johannesburg Stock Exchange building in Sandton Johannesburg July 9, 2015.
(Reuters/Siphiwe Sibeko) People chat in front of an electronic board displaying movements in major indices at the Johannesburg Stock Exchange building in Sandton Johannesburg July 9, 2015. (Reuters/Siphiwe Sibeko)

It is early to assess the long term consequences for sub-Saharan Africa of the United Kingdom’s (UK) vote to leave the European Union (EU) on June 24. However, in the short term, it is useful to look at the performance in the exchange rates and stock exchanges of Nigeria and South Africa since the referendum. They provide something of an indication of the wider impact Brexit had on Africa. Nigeria and South Africa together account for more than half of sub-Saharan Africa’s gross domestic product. Both have long had close ties with the UK, especially with respect to trade and financial services. In addition, there are myriad other ties between the UK and Nigeria and South Africa. For example, there is a large British expatriate community living in South Africa. The Nigerian expatriate population in the UK is also significant, and wealthy Nigerians have long favored the UK for education, health services, and second homes. Read more »

Nielsen: Ivory Coast Now Top Business Prospect in Africa

by John Campbell
A worker holds cocoa beans at SAF CACAO, a export firm in San-Pedro, Ivory Coast, January 29, 2016. (Reuters/Thierry Gouegnon) A worker holds cocoa beans at SAF CACAO, a export firm in San-Pedro, Ivory Coast, January 29, 2016. (Reuters/Thierry Gouegnon)

Nielsen’s “Africa’s Prospects: Macro Environment, Business, Consumer and Retail Outlook Indicators” of February 2016 rank orders sub-Saharan Africa’s nine leading markets. The list represents 71% of the region’s GDP, and half of its population. Ivory Coast is ranked first, Kenya second, Tanzania third, and Nigeria is fourth. It ranks Zambia as fifth, Cameroon as sixth, South Africa as seventh, Uganda as eighth, and Ghana brings up the rear. Read more »

South Africa Unlikely to Join Nigeria in Fight Against Boko Haram

by John Campbell
Members of the South African National Defence Force (SANDF) return after taking part in a Capability Demonstration at the Roodewal Bombing Range in Makhado, in the northern province of Limpopo, May 9, 2013. (Reuters/Siphiwe Sibeko) Members of the South African National Defence Force (SANDF) return after taking part in a Capability Demonstration at the Roodewal Bombing Range in Makhado, in the northern province of Limpopo, May 9, 2013. (Reuters/Siphiwe Sibeko)

Following a press briefing by Nigerian Defense Minister Mansur Dan-Ali, Nigerian media are saying that South Africa is joining the fight against Boko Haram, the radical jihadist movement that has killed over twenty thousand and displaced internally up to three million people over the past six years. The briefing took place following the defense minister’s meeting with his South African counterpart, Nosiviwe Mapisa-Nquakula. (South African President Jacob Zuma is in Nigeria on a state visit.) Read more »

Kenya’s Silicon Savannah Spurs Tech in Sub-Saharan Africa

by Guest Blogger for John Campbell
A Somali man browses the internet on his mobile phone at a beach along the Indian Ocean coastline in Somalia's capital Mogadishu, January 10, 2014. (Reuters/Feisal Omar) A Somali man browses the internet on his mobile phone at a beach along the Indian Ocean coastline in Somalia's capital Mogadishu, January 10, 2014. (Reuters/Feisal Omar)

This is a guest post by Aubrey Hruby and Jake Bright. They are the authors of The Next Africa: An Emerging Continent Becomes a Global Powerhouse.

The role of technology in sub-Saharan Africa is growing. An emerging information technology (IT) ecosystem is reinforcing regional trends in business, investment, and modernization. There is a growing patchwork of entrepreneurs, startups, and innovation centers coalescing from country to country. Read more »

Putin’s Russia and Africa

by Guest Blogger for John Campbell
Russia's Deputy Foreign Minister Mikhail Bogdanov (C) arrives at the airport in Abuja, Nigeria May 28, 2015. (Courtesy Reuters/Afolabi Sotunde) Russia's Deputy Foreign Minister Mikhail Bogdanov (C) arrives at the airport in Abuja, Nigeria May 28, 2015. (Courtesy Reuters/Afolabi Sotunde)

This is a guest post by Eugene Steinberg, an assistant editor at the Council on Foreign Relations.

From 1961 to 1992, one of Moscow’s most prestigious schools bore the name of Patrice Lumumba, the Soviet-supported Congolese independence leader brutally executed in 1961. Patrice Lumumba University recruited and educated generations of foreign leaders, especially African leaders, and was just one of the many ways in which the Soviet Union cultivated ties with Africa. Then with the fall of the Soviet Union, after years of pouring money, arms, and manpower into left-leaning anticolonial movements, Russia’s presence in Africa, and Lumumba University, nearly disappeared overnight. But today, two decades later, Russia is once again working to establish a foothold on the continent. Read more »

Better Economic News from South Africa

by John Campbell
Mineworkers walk to the Wonderkop stadium near Lonmin's Marikana platinum mine for check-ins before returning to work, June 25, 2014. Tens of thousands of South African platinum miners returned to work on Wednesday after wage deals ended the longest and most damaging strike in the country's history. (Reuters/Skyler Reid) Mineworkers walk to the Wonderkop stadium near Lonmin's Marikana platinum mine for check-ins before returning to work, June 25, 2014. Tens of thousands of South African platinum miners returned to work on Wednesday after wage deals ended the longest and most damaging strike in the country's history. (Reuters/Skyler Reid)

South Africa’s general malaise owes much to its very slow recovery from the international economic crisis that began in the United States in 2008. The country’s gross domestic product growth rate has declined from a usual 3 percent to 1.5 percent in 2014. Weaker commodities prices have also slowed an economy that still includes a large mineral export sector. Read more »