African Smart Cities

Why African Smart Cities ?

Opening Doors to The World And The World to Africa. Africa is the world's second largest and second most-populous continent. At about 30.3 million km² including adjacent islands, it covers 6% of Earth's total surface area and 20.4% of its total land area. With 1.2 billion people as of 2016. By 2020, Africa is likely to be the fastest urbanizing continent in the world. It is currently the most rural -- only 40% of sub-Saharan Africa's population live in cities.

Smart City Strategy

It starts with the strategy that is aligned to the organizational or business strategy and also aligned to the ICT strategy.

We benchmark your city against cities, town against towns, smartcity against smartcities. We do this for African countries and between african countries and the world. Selected key indicators are then matched to your city in terms of citizen services, size, revenue, population, skills and other indicators.

Funding

Without funding, countries cannot develop smart cities. Sufficient funding is needed for a smart city project to be successful. Financial incentives are required to effectively encourage private sector participation (e.g. grants, rebates, subsidies, competitions).

Inclusion And Training

Offer a combination of training, coaching, online workshops, digital webinars, Education, Development. If the citizens around the city being developed to be a smart city are not ready then the city will never be a smart city.

Maturity Assessment

assessing the relative maturity of your city/town/village/microcity competency in a particular area and helping you identify opportunities for improvement and where and how to start.

Research Reports

We provide you with thought leadership in the form of both reports and industry leaders who have done it seeing it and been successful.

We believe that for Africa to stimulate economic growth and become a global destination for individuals, businesses, and tourists, the rural towns have to start competing among one another starting within the country and later with other African countries and then with global similar towns. The cities will have to do the same and this will result in improved infrastructure and investment climate to enable them to develop along with their growing populations.

From informal residential settlements to small towns
From rural towns to smart-towns
From smart towns to cities
from cities to smart cities
As cities begin to compete within the country, and then compete with other cities within the continent and later with global cities.
African cities will never be the same

Management

Our management are experienced working in an ecosystem within cities that enhances their liveability, workability and sustainability. We have a team that is skilled working in zones within a territory where technology and connectivity play a central part in infrastructure. Our professionals address issues of urbanisation, economic development, and the technological needs of its inhabitants and visitors. Our team want to make squatter shacks, rural villages, and towns a place to live, learn and work; a space to develop innovative businesses and entrepreneurial activity in the digital arena, while also providing healthcare - a crucial issue in Africa. Equally crucial, these can become smart cities one day as they will be built upon sustainable energy infrastructure.

Jabu Madlala

Founder

Vela

SmartCity Expert

The economic recovery strengthened in 2019 (3.3% growth in real GDP) on the back of higher coffee exports, a slight increase in public investment, and a particularly good year for agricultural production.

Partner

Anver Hendricks

Principal Partner

Kenya

Economic Outlook

Real GDP grew by an estimated 5.9% in 2019, driven by household consumption and investment on the demand side and services on the supply side (such as public administration, information technology, finance and insurance, and transport and storage). GDP was down from 6.5% in 2018, caused mainly by unfavorable weather and reduced government investment.

Rwanda

Economic Outlook

Real GDP was estimated to grow at 8.7% in 2019, higher than the regional average. Growth was mainly in services (7.6%) and industry (18.1%), particularly construction (30%). Investment drove growth, led by public investment in basic services and infrastructure. Real GDP per capita increased 6.1% in 2019.

South Sudan

Economic Outlook

Real GDP growth was an estimated 5.8% in 2019, a large increase from 0.5% in 2018. The 2019 rebound was driven mainly by reopening some oil fields, including those in Upper Nile state, and resuming production, and by the peace agreement signed in September 2018. The oil sector remains the key driver of the economy, followed by services and agriculture.

Tanzania

Economic Outlook

Real GDP growth was estimated at 6.8% in 2019, down slightly from 7% in 2018. A markedly diversified economy, characterized by robust private consumption, substantial public spending, strong investment growth, and an upturn in exports underpinned the positive outlook. Tourism, mining, services, construction, agriculture, and manufacturing are notable sectors. Growth is projected to be broadly stable at 6.4% in 2020 and 6.6% in 2021, subject to favorable weather, prudent fiscal management, mitigation of financial sector vulnerabilities, and implementation of reforms to improve the business environment.

Uganda

Economic Outlook

economy reported strong growth in 2019, estimated at 6.3%, largely driven by the expansion of services. Services growth averaged 7.6% in 2019, and industrial growth 6.2%, driven by construction and mining. Agriculture grew at just 3.8%. Retail, construction, and telecommunications were key economic drivers. Inflation is expected to remain below 5%, strengthening the domestic economy.

Zimbabwe

Economic Outlook

GDP contracted by 12.8% in 2019 due to poor performance in mining, tourism, and agriculture. Foreign currency and electricity shortages affected mining and tourism. Agriculture shrank about 15.8% due to cyclone Idai in March 2019, prolonged drought, livestock diseases, and currency shortages reducing the availability of inputs. Despite a global mineral price recovery, production in Zimbabwe dropped below 2018 levels. Austerity measures through the Transitional Stabilization Program 2018–20 and attendant monetary reforms constricted economic activity. Any 2020–21 recovery would depend on quick turnaround in the real sector. In the medium term, however, fiscal and monetary reforms are expected to stabilize the economy and begin to generate positive results.

Zambia

Economic Outlook

Real GDP growth slowed to an estimated 2% in 2019, down from 4.0% in 2018. Zambia’s economy was hit by drought in the south and west that lowered 2018/19 agricultural production and hydropower electricity generation considerably. Severe electricity rationing followed, and long periods of electricity load shedding dampened activity in almost all economic sectors. Zambia also faces slower mining, with reduced output and lower copper prices. Economic activity is expected to remain weak, with growth rebounding moderately to 2.4% in 2020 and 2.9% in 2021.

eSwatini

Economic Outlook

Real GDP growth was estimated at 1.4% in 2019, an appreciable decline from 2.4% in 2018. Economic activity was supported by growth in manufacturing and agriculture, which stabilized following a regional drought in 2015–16. Unabated fiscal challenges impeded domestic demand and generated large domestic arrears that constrained private sector activity linked to government, thus inhibiting economic growth. Construction has contracted since 2017, while services weakened due to poor performance by the wholesale, retail, and public administration subsectors.

South Africa

Economic Outlook

Real GDP grew at an estimated 0.7% in 2019, down from 0.8% in 2018, and is projected to rise to 1.1% in 2020 and 1.8% in 2021 amid domestic and global downside risks. Contraction in agriculture and mining drove slow growth in 2019. Agriculture contracted 4.8% and mining 1.7% in 2018. Besides erratic weather, a protracted debate about land reform weighed on agriculture. Electricity shortages and prolonged strikes contributed to the mining decline. The finance, real estate, and business services sector grew 1.8% in 2018 to contribute 0.4 percentage point to growth. Transport grew 1.6% in 2018 while manufacturing grew 1% in 2018. Manufacturing production was depressed by frequent electricity shortages, higher input prices, and weak demand amid ongoing international trade tensions.

Namibia

Economic Outlook

Real GDP, which peaked at 6.1% in 2015, contracted by an estimated 1.0% in 2019, following a 0.5% contraction in 2018. Aggregate demand fell sharply in 2016 and 2017 as the government began fiscal consolidation to correct growing imbalances from high public spending and falling revenues from the Southern African Customs Union (SACU).

Mozambique

Economic Outlook

Mozambique faced an economic slowdown in 2019, mainly due to the negative impact of cyclones Idai and Kenneth, with GDP estimated to grow by 1.9%. Economic activity slowed in 2016–18, to an average of 3.7%, compared with 6.7% for 2015. This reduction resulted mostly from a decline in public and foreign direct investment.

Malawi

Economic Outlook

Real GDP grew an estimated 5.0% in 2019, up from 4.0% in 2018, despite the effects of cyclone Idai. Growth was supported by continued macroeconomic stability and improved agricultural performance (maize output increased 25.7% in 2018/19).

Lesotho

Economic Outlook

Lesotho’s economy grew at an estimated 2.6% in 2019, up from 1.2% in 2018 owing to strong mining performance and a textiles recovery in an improved global economy. Growth is projected at 1.8% for 2020 and 1.7% for 2021. Services predominated in GDP (60.1%), followed by industry (34.6%), and agriculture (5.3%). Yet 80% of the population depends on subsistence farming, so productivity is low.

Botswana

Economic Outlook

Real GDP is estimated to have grown 3.5% in 2019 after averaging nearly 4% in 2016–18, driven by the continued recovery in diamond production, following a rebound in global demand and resumption of operations at the Damtshaa mine in January 2018. With a fairly robust and broad-based expansion in nonmining activities.

Seychelles

Economic Outlook

Real GDP growth was estimated at 3.5% in 2019, down slightly from 4.1% in 2018, driven by tourism, fisheries, and financial services. The decline was due to emerging uncertainty over economic performance in the eurozone, where most tourists originate. Inflation remained low at 2.6% in 2019, with lower import prices than anticipated and a tight monetary policy.

Mauritius

Economic Outlook

Real GDP growth was moderate yet steady, averaging 3.8% during 2015–19. Growth was mainly driven by financial services, retail and wholesale trade, and information and communications technology. GDP per capita trended upward, reaching an estimated $10,200 in 2019 —the third highest in Africa after Equatorial Guinea and Seychelles. The economy is largely service-based (76% of GDP in 2019), followed by industry (21%) and agriculture (3%). Aggregate demand has been underpinned by strong growth in household consumption, while investment stood at 19% of GDP in 2019.

Madagascar

Economic Outlook

Real GDP growth in 2019 at 5.2%. The primary sector, with 22.4% in 2019, is driven by traditional agriculture, greatly exposed to the effects of climate change (droughts, cyclones). In a shifting environment, exporting companies (extractive industries in an export processing zone) drove the secondary sector’s contribution up from 18.5% in 2015 to 21.3% in 2019. There was no significant change in the tertiary sector (growth of 0.8 point), the largest in the economy, with 58% of GDP in 2019, but driven by the least productive sectors, where informal activities are concentrated (trade, transport).

Comores

Economic Outlook

Real GDP growth for 2019 was 1.5%, half that in 2018, explained by cyclone Kenneth in April 2019, which caused destruction (power plants, roads, and production capacity) equivalent to 12.5% of GDP.

Djibouti

Economic Outlook

Real GDP growth has remained strong, estimated at 6% for 2019. From a demand point of view, it is driven by public investment in rail and port infrastructure. On the supply side, it should continue to be driven by the tertiary sector, notably trade with Ethiopia, which accounts for 80% of Djibouti’s port activities. Inflation is estimated at 2.2% for 2019.

Eritrea

Economic Outlook

Ethiopia

Economic Outlook

Real GDP growth slowed to an estimated 7.4% in 2019 from 7.7% in 2018, caused by social unrest and fiscal consolidation to stabilize the public debt. On the supply side, industry and services continued to lead growth in 2019. Industry was driven by construction, notably for industrial parks and infrastructure investments. Structural transformation is under way but needs to accelerate. While agriculture’s share in GDP has fallen, the sector still employs more than 70% of Ethiopia’s workforce

Somalia

Economic Outlook

The economy grew by an estimated 2.9% in 2019, up from 2.8% in 2018. The rebound is mainly due to recovery in agriculture and strong consumer demand. Inflation peaked at 5.1% in 2018 and declined to an estimated 4.4% in 2019 as food prices adjusted downward. The government budget remained in balance—given the restrictions on new public borrowing under staff monitored programs (SMPs) since 2016 and the need to keep inflation under control.

Equatorial Guinea

Economic Outlook

Equatorial Guinea continues to struggle to emerge from the economic recession caused by the 2014 slump in oil prices. Real GDP is estimated to have shrunk by 4.1% in 2019 after a contraction of 6.1% in 2018 due to less activity in the oil sector. The inflation rate remains low, at 1.4% in 2019 versus 1.3% in 2018, below the CEMAC target of 3%.

Gabon

Economic Outlook

Gabon’s economic recovery continued in 2019, thanks to the momentum of nonoil activities (mines, timber, rubber, and palm oil), with estimated real GDP growth of 3.4% in 2019 (0.8% in 2018), driven by the exploitation of new oil wells (up 11.8%), nonoil exports (18.6%), and total investment (4.5%). The inflation rate declined from 4.8% in 2018 to 3.4% in 2019, approaching the CEMAC community target of 3%.

Sao Tome & Principe

Economic Outlook

Real GDP grew by an estimated 4.0% in 2019 on the back of improvements in agriculture, construction, and services. The service sector explained about 70% of the growth in 2016–18, with strong performance in wholesale and retail trade and in restaurants and hotels, which benefited from growing tourism following reforms such as the e-Visa in 2018

Matchmaking - it starts with a village, then a town then a city in Africa. We will matchmake it with one from anywhere in the world that matches yours in terms of key indicators like population, infrastructure, talent, revenue. We will facilitate creation of relationships at mayor, municipal manager or C-levels.

African Cities - On the path to become Globally Competitive

ASC
Many African countries are on the path to constructing new cities, as opposed to transforming existing cities to become smart cities. It is not about the look or the design of the buildings in a city that make a city "SMART". The top 10 global smartcities (London, Singapore, Seoul, New York, Helsinki, Montreal, Boston, Melbourne, Barcelona and Shangai) are actually very old cities that have been around for a long time. There is a big misconception among African leaders on this subject. You do NOT require to build a city from scratch to achieve a smart city status. It starts by developing the "Smart City Strategy" that addresses short, medium and long term implementations.

Ghana

Hope City

Located in Greater Accra region, Ghana’s own Silicon Valley, was designed to host Africa’s tallest building and hold its own in the tech hub arena. The development, a product of leading Italian architects, was designed to host a cluster of buildings on an ICT Park was intended to create more than 50,000 jobs for the ICT sector in Ghana. However, implementation of the master plan has been stagnated since 2013 due to economic downturns. It remains to be seen whether the $10bn project will materialize to change Africa’s skyline for good.