Africa in the News – September 2018

China commits $60 billion to Africa

Chinese president Xi Jinping has affirmed his country’s commitment to its “win-win” cooperation policy with Africa, noting China won’t interfere in the political and development paths of African states. Xi was speaking at the Forum on China-Africa Cooperation where he announced $60 billion for development projects in Africa over the next three years.

Xi said China will also exempt some poorer nations from debt, increase imports from Africa, support the building of the continental free trade area, and give scholarships to young Africans. Xi also called on African leaders to support the Belt and Road initiative, a multi-billion-dollar infrastructure project modelled on the old Silk Road.

Netflix getting ready to take on Africa

Netflix is finally putting its $8 billion original production budget to work in Nigeria’s Nollywood movie industry. Initially known for its model of low-budget high-volume productions, Nollywood became the world’s second biggest movie industry by volume. But in recent years, Nollywood has begun placing more emphasis on quality over quantity. Those efforts have been rewarded with local and international box office success.

This is in addition to significant investment from the South Africa-owned Africa Magic television channel which has backed Nollywood productions with millions of dollars. But as it steps up in Africa, Netflix is facing increased competition. Multichoice, Africa’s largest pay TV player, in response to its dipping subscription numbers, is already pushing to have Netflix regulated.

Gaming industry boom

The burgeoning gaming industry in Africa has been thrown into stark relief during 2018 with countries across the continent driving key measures to capitalise on emerging sectors and authorities keen to discuss the direct and indirect investment opportunities ahead. Governments in Africa can leverage a lot more on this industry as they can divert the earnings into development of sports, entrepreneurship centres, etc...

Currently the East African market is very exciting in terms of opportunities but also the regulatory space is ever changing as legislators try and keep up with technology. Shikana Law Group concludes the African continent has an immense growth potential that could change the gaming landscape in the coming years.

South Africa announces relaxed travel regulations

In a bid to boost investment and tourism in South Africa, the Home Affairs minister announced that changes in some immigration rules, including agreeing visa waiver agreements with more countries. Rules on travelling minors will also be simplified.

These changes will be implemented ahead of the festive season. Tourism contributes more than 400 billion rand ($28 billion) to South Africa’s economy, or around 8 percent of GDP.