KENYA INSTITUTE OF MANAGEMENT, 2 nd AFRICA GOVERNANCE, LEADERSHIP AND MANAGEMENT CONVENTION, 2 nd – 5 th AUGUST 2011 MEDIA AND HUMAN DEVELOPMENT IN AFRICA AFTER THE COLD WAR A Presentation by Mr. Linus Gitahi, Group CEO, Nation Media Group PRIMACY OF THE MEDIA IN THE DEVELOPMENT AGENDA: • Fostering a stronger media in Africa is an indispensable part of tackling poverty, improving development and enabling Africa to attain its development goals. • Independent media avails to citizens, human rights groups, private organizations and public authorities opportunities to work together, promote development and eliminate arbitrary abuse. • The media landscape is changing rapidly and adapting to new circumstances. In today globalizing world it is not contentious to say that media plays an important role in providing information. The question though remains what kind of information is availed and what kind of information is needed. Page | 1
• Media can play an important role in development and there is evidence of this role. For example: IN KENYA: Following the 2008 post-election violence in Kenya in which 1,400 people killed and up to 500,000 displaced, an NGO, Search for Common Ground developed a TV drama, THE TEAM. Members of THE TEAM challenge stereotypes, struggle to deal with their ethnic, social, and economic differences, and to develop a new narrative about an inclusive and fair Kenya society that is void of tribalism and negative ethnism. IN TANZANIA: Twaweza (We Can Make It Happen), which a good governance and public accountancy group in Kenya, Tanzania, and Uganda partnered with the Tanzania Broadcasting Corp. and developed a TV show “Daladala”. In the Dalala, ordinary people are filmed inside the public service mini-buses by the same name, express their views on important national political, social and economic matters. The programme has had phenomenal success with 3m people listening in. IN MADAGASCAR: The rapid alert system through radio broadcasting has recently been launched to allow local populations to prepared better against disasters and to improve natural resources management and thus reinforce food security. There are also other examples of what media can do for development, without the aid donors: Page | 2
IN GHANA: The trade portal NET offers price of agricultural products on mobile phones in various languages including local ones, settling a relationship between buyers and sellers; IN MALI: A partnership has been forged between local radio stations and a local NGO - "Observatorie du marché agricole". Radios broadcast product prices, inputs and agricultural equipments and publish them on mobile phones. • Increasingly, the link between media and stability, social and cultural cohesion and structures for democracy is deemed essential for trade, international co-operation and national development in Africa. 21 st CENTURY AFRICA • According to the McKinsey Global Institute’s report on Africa released in June last year, Africa’s overall GDP is on the rise. Today, while Asia’s tiger economies continue to expand rapidly, the report predicts the potential rise of economic lions in Africa’s future. • Africa’s GDP stood at $1.6 trillion in 2008 (roughly equal to Brazil’s or Russia’s) but is expected to rise to $2.6 trillion by 2020. Consumer spending at $860 billion is expected to grow to $1.4 trillion. 50% of all Africans will be cities, with 128 million households with discretionary incomes. • Africa currently has 60% of the world’s total amount of uncultivated, arable land with more than 20 of Africa’s blue chip Page | 3
companies generating at least $3 billion each in revenues. Africa also has one of the fastest growing new mobile phone subscriptions in the world, currently inching towards 500 million. • While Africa’s increased economic momentum is widely recognized, less known are its sources and likely staying power. • According to the UN Economic Commission on Africa, the world economy showed a moderate recovery from the effects of the global financial and economic meltdown of 2008–2009. Global gross domestic product (GDP) grew at 3.6 per cent in 2010, an impressive turnaround from the 2.1 per cent contraction of 2009. Economic activity rebounded across Africa in 2010. • Oil-exporting countries generally expanded more strongly than oil- importing countries. West Africa and East Africa were the two best performing sub-regions in 2010. • Looking ahead, a critical question is whether Africa’s surge represents a one-time event or an economic takeoff. • For starters, Africa’s growth acceleration resulted from more than a national resources boom. Arguably and more important are the various governments’ actions to end political conflicts, improve macroeconomic conditions, and create better business climate, to enable accelerated growth to across countries and sectors. • McKinsey projects that Africa’s future growth will be supported by external trends such as the global race for commodities, Africa’s Page | 4
increased access to international capital and its ability to forge new types of economic partnerships with foreign investors. • Long-term growth will be lifted by internal social and demographic trends, particularly Africa’s growing labor force, urbanization, and the related rise of middle-class consumers. • Today, 40 per cent of Africans – a portion close to China’s and larger than India, live in cities with an expected growth in the future. As more Africans move from farmlands to urban jobs, their incomes are rising. • Africa is already one of the world’s most dynamic consumer markets, growing two to three times as fast as those in the Organization for Economic Co-operation and Development (OECD) countries. • In 2008, an estimated 85 million African households earned at least $5,000 (measured in terms of Purchasing Power Parity) – this is the level above which they start spending about half their income on items other than food. • By 2030, the continents top 18 cities could have a combined spending power of $1.3 trillion. • Africa’s labor force is expanding. By 2040, it is projected to reach 1.1 billion, overtaking China and India. If Africa can provide its young people with the education and skills they need, this large workforce could account for a significant share of both global Page | 5
consumption and production. AFTER THE COLD WAR AND THE EMERGENCE OF CHINA • When People’s Republic of China’s President Jiang Zemin visited Kenya, Ethiopia, Egypt, Mali, Namibia and Zimbabwe in May 1996, his country’s government controlled media strongly emphasised Africa’s importance to Beijing’s foreign policy objectives • In sharp contrast to the West in general and the US in particular, China emphasized establishing stronger ties around Africa • China had perceived itself as both a third force and an alternative to the US and the Soviet Union during the height of the cold war, when Africa was a battleground in the superpower rivalry • The end of the cold war, the disintegration of the Soviet Union and the retreat of the US and Russia from most of Africa created greater opportunities for Chinese foreign policy • This has had the potential to realign bilateral trade and tear down pre-existing concepts and long-held friendships • China seeks to establish and develop a new type of strategic partnership with Africa, featuring political equality and mutual trust, economic win-win cooperation, and cultural exchange • China has become an important driver of Africa’s resource sector growth. China increased its share of African oil exports from 1 Page | 6
percent in 1995 to 13 percent in 2008 making it the single largest contributor of Africa’s oil export growth, measured by volume. Africa provides 31% of China’s oil imports. This is expected to grow as China diversifies sources in Africa (growing at 1-2% per year) • If this trend continues, China could overtake Europe as Africa’s second largest oil export market by 2020. China increased its African investment by 46 percent between 2001 and 2007. China’s investments have continued to grow since then and will account for significant foreign capital flow for many Africa countries into the future. • China’s demand for strategic resources is growing • China is the World’s largest user of cooper • The country continues to demand for iron ore and cement for construction projects • China is purchasing strategic resources from several African nations, mainly in central and southern Africa: Via direct investment by Chinese state companies in mines, fisheries, precious woods; In DRC: cooper and cobalt mines; In Zambia: cooper mines; and In Liberia: iron ore etc. • Chinese–African relations have three distinct channels of cooperation: trade, investment and aid. Page | 7
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