In 2011, investment continued to pour into West Africa – Africa overall is now more attractive to investors than any other region, by some accounts. 

 

That is just one of the leading stories the year delivered. Based on conversations with stakeholders across West Africa, including the USAID Trade Hub’s sector specialists who, combined, have over 100 years’ private sector experience in the region, here is the Tradewinds year-end compilation of 2011’s most important business stories.

 

Investment continues to pour in. “10 years ago, 1 African country had opportunities for private equity investors; today, 21 countries offer those opportunities,” tweeted @InnovateAfrica on Twitter (see more about Tweeting below, in our look at trends in the region). “West Africa has huge potential,” said Eric Rassman, who arrived in Accra, Ghana, in November to identify opportunities for a new fund for youth development. “The challenges are real but so are the returns.” Entrepreneurs are too numerous to count (here's one, though, and here's another), exploiting new opportunities, building on their successes - and transforming the regional economy.

 

Cote d’Ivoire – back on track. The story goes that years ago, Cote d’Ivoire’s first president Félix Houphouët-Boigny and Ghana’s, Kwame Nkrumah, wagered about which of their countries would fare better. The last decade has not been kind to the memory of Houphouët-Boigny – but 2011 saw Cote d’Ivoire regain peace and a semblance of stability. The protracted political crisis saw the country’s economy contract and millions suffered as a result. The impact on economic growth and development across West Africa will be significant – and positive.

 

Sanusi tames the banks in Nigeria. With two Nobel laureates on the short-list, competition for the Forbes Africa Person of the Year was hardly soft. That it went to Sanusi Lamudo Sanusi, Governor of the Central Bank of Nigeria says a lot – and deservedly so. The health of Nigeria’s banks is of huge importance to everyone in West Africa, noted Judson Welsh, the USAID Trade Hub’s finance specialist. “His intelligence, courage and political savvy have made a difference,” Welsh said. “Nigerian banks are critical to the region’s financial stability.”

 

Ghana starts pumping oil. The newest parlor game in Accra is to guess what Ghana’s economic growth rate will be in 2012 – the IMF’s latest is 13.4%. But whatever number comes up, it’s a safe bet that Ghana will have the fastest growing economy in the world next year. Investment in education, health and infrastructure are all on tap for the new revenue. Many will be watching, however, to see how the country manages the new revenue (see trends, below). 

 

New submarine cables improve connectivity. For all the talk about online activity, the fact is the vast majority of West Africans are not online. But that is rapidly changing thanks to improved connectivity – and downward pressure on the cost to connect – as a result of three new submarine cables providing service to the region. It’s also changing because the use of cell phones across West Africa continues to expand rapidly; in fact, use of cell phone is growing more rapidly in Africa than on any other continent. Many of these cell phones are “smartphones” – allowing their users to browse the web, among other things. Developers are coming up with more innovative uses of these phones’ capabilities, too (e.g. iCow). 

 

Africa is “in.” Some more astute fashion historians would wonder when, exactly, it was “out” – Pablo Picasso was inspired by African designs as have been scores of other artists and designers around the world. But in 2010 no fewer than four high-profile fashion events took place in New York, Paris, London and Milan. African designers may not be numerous but their influence is growing. In September, the Trade Hub’s home décor and fashion accessories specialist Elaine Bellezza took part in the launch of Design Network Africa, which brought designers from across the continent to Johannesberg, South Africa. The AfricaNow! company showcase gives some idea of the allure these designers are responsible for.

 

ECOWAS’ efforts continue to build regional integration. As one blogger in the region noted, “regional integration” is not a very compelling phrase; “regional cooperation” is better. Whatever words are used, it’s clear that ECOWAS Member States are improving implementation of regional trade rules – and making West Africa more competitive as a region in world trade. The stakes, as the Trade Hub’s Peter White has pointed out, are enormous; indeed, if there’s one trend that could see the region’s unprecedented economic growth return real dividends to everyone in the region, this is what many would put their money on. 

 

 

New voices. Although online access is still somewhat limited in West Africa, a plethora of new, interesting and exciting voices are filling blogs and websites (we like this one and this one and this one too in Ghana, and the vigorous reporting at this outlet in Nigeria, among many others - tell us your favorites in the comments section below). They are giving voice to new perspectives, adding depth and breadth to news coverage (like this). The Internet is their platform – they are “liking” on Facebook and “tweeting” on Twitter. Companies and public institutions that don’t catch up might find themselves scrambling to connect with them – to their detriment.

 

African cheetahs. It’s a pithy saying politicians use – that youth are the future – but in West Africa they are arguably the present. Young entrepreneurs – dubbed African cheetahs – are building businesses that are responding to consumer demand. They come with new approaches to old problems – and lots of energy.

 

Elections. The political temperature will rise in a number of countries in 2012 as voters go to the polls. Contests in Burkina Faso, Ghana, Mali and Senegal will be of particular importance to trade and investment. But many are optimistic - many of the countries have held successful elections and, as some observers point out, instability is simply bad for business - no one gains when things go bad and everyone suffers.

 

Oil in Ghana. Oil has arguably caused more problems than it has solved in countries blessed with pools of it under earth and sea. Hopes are high that Ghana will manage its new revenue stream successfully.

 

Food security. As 2011 ends, experts were raising concern about a food crisis in Sahelian countries. However, the Famine Early Warning System’s outlook indicates that the problem will be concentrated in specific areas and a widespread crisis is not expected. Food aid will likely be needed earlier than usual in Chad, Niger, Burkina Faso, Mali, and Mauritania, the 6-month outlook said. Still, circumstances could change to exacerbate the situation – a hike in the international price of rice, for example, could lead to shortages in parts of West Africa.