Tag Archives: tanzania

Africa must create more jobs to sustain exceptional growth in 2012-2013 and beyond by Ray Dinning, JD, LLM (tax)

See Article By PATRICK MCGROARTY from Wall Street Journal Online

DAR ES SALAAM, Tanzania—Countries in Africa will need to create jobs more rapidly to sustain strong economic growth, as the number of young people in the region rises, a report by leading international organizations said Monday.

The number of Africans between the ages of 15 and 24 will double by 2045, according to the African Economic Outlook released by the African Development Bank, the OECD Development Centre, the United Nations Economic Commission for Africa and the U.N. Development Programme. At the moment, even leading African economies are showing few signs that they are prepared to absorb those youths into the workforce, the report said.

According to the International Labor Organization, the unemployment rate in many African countries tops 20%. In South Africa, the continent’s biggest economy, the rate is 25.2%. And it is worse among young people—60% of the unemployed workforce across Africa is under the age of 24.


“The continent is experiencing jobless growth,” African Development Bank chief economist Mthuli Ncube said in a release accompanying the report. “That is an unacceptable reality on a continent with such an impressive pool of youth, talent and creativity.”

The report forecast that Africa’s economy will grow 4.5% this year and 4.8% in 2013. But much of that growth will be in commodity-rich countries that have seen booming business for their crude oil, like Nigeria and Equatorial Guinea, or coal and natural gas deposits, like Mozambique. The results have yet to trickle down toward broad material improvement for increasingly young populations, which is threatening social cohesion and political stability in countries that aren’t tackling their unemployment challenges, the report said.

To correct the situation, the report recommended that countries encourage rapid private-sector growth, particularly in the informal economy and agricultural jobs that still dominate many isolated African countries.

Improving education is also crucial, the report said, as is expanding countries’ manufacturing and service sectors to wean them off unsustainable proceeds from commodity exports.

“Export diversification beyond raw-material and private-sector development are important to mitigate the continent’s susceptibility to external shocks, but that takes time,” said UNECA’s director of economic development, Emmanuel Nnadozie.

There are signs that Africa is already moving toward diversification, with telecommunications, trade and service sectors growing strongly off an extremely small base, the report said.


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WSJ and IMF Reports 5.5% Growth in Sub-Saharan Africa for 2012 by Ray Dinning, JD, LLM


See Wall Street Journal Online for May 13, 2012:

ADDIS ABABA, Ethiopia —Countries in sub-Saharan Africa are expected to register economic growth of at least 5.5% in 2012, compared with 5% last year, driven by new resource exploitation and recovery from drought, the International Monetary Fund said Monday.

In a report, the IMF said that the region’s continued strong performance has been propelled by favorable international commodity prices and increased export diversification toward emerging Asian markets, but it warned that “clear downside risks” remain due to continued global uncertainties.

“Natural resource exports contribute importantly to…budgetary revenues in a large number of sub-Saharan African economies, and demand for these products remains reasonably robust, most notably for oil,” the lender stated. The 44-nation region includes seven oil exporters, defined as countries where net oil exports make up 30% or more of total exports.

But the rate of growth in South Africa and Nigeria, the region’s two largest economies, is expected to slow. In South Africa, growth is set to be held back to less than 3% due to weaker exports to developed markets. In Nigeria, Africa’s largest oil producer, growth is expected to remain largely static at around 7% despite fiscal consolidation.

The IMF also said that growth in middle income economies is expected to remain static or lower than 2011, as these nations tend to track more closely the global economic slowdown. Eleven of the nations included in the survey are defined as middle income, including Botswana, Namibia, Ghana, Senegal, and Zambia.

Countries in East Africa and the Horn of Africa are recovering from the worst drought in 60 years which hit the region late 2010 and early 2011, hurting their agriculture and threatening millions of livelihoods, according to aid agencies. Drought also hit in the Sahel region in West Africa.

Ivory Coast, West Africa’s second-largest economy after Nigeria, was also hit by post-election civil conflict leading to a 5% reduction in its gross domestic product last year, IMF said.

Countries that rely significantly on exports of non-renewable natural resources have grown faster than economies less well-endowed with resources, but have also experienced significantly higher volatility in exports, revenue, and GDP growth, the IMF said.

Countries in sub-Saharan Africa export metals such as copper, cobalt, tin, gold, diamonds and aluminium, as well as crude oil and agricultural commodities like coffee, cotton, tea and cereals.


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Solar Reading Lights for Children in Africa – by Ray Dinning, social entrepreneurship lawyer

Today I am working an environmental awareness conference to help a social entrepreneur sell 150 solar light kits.  The solar light kits come complete with two solar lights, arts and crafts supplies and everything necessary to make a fun and innovative renewable energy project with your children.  Having helped make 150 solar light kits, I will be volunteering to help to market this small social venture with a BIG impact in the lives of children in Africa.

The beauty of this project is that for each solar light kit sold for $20.00 this weekend or over their website, the social entrepreneurs are sending FIVE (5) solar reading lights to school children in Africa.  They spent a month this year making solar lights with school children at Mt. Kilimanjaro and this project will hopefully help another 750 children receive solar reading lights.

This is important because the rural huts have no electricity so the only way for the family to have light in the evenings and for children to read and study for school are these solar reading lights.

For more information on this project or to help, contact social entrepreneur Terry Maynard at http://www.passonthelight.com and help him bring light to children in need.

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Social Entrepreneurship in Africa named Top 30 Social Entreprenuership Blogs for 2012

Ray Dinning, social venture lawyer, and his blog “Social Entrepreneurship in Africa” have been named One of the Top Social Blogs to Watch in 2012.  See http://www.socialentrepreneurshipinafrica.com.

To view the article, please click on the link below:



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Just before the Leopard Attack by Ray Dinning

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Food and Water Security in Africa by Ray Dinning, lawyer

Clean water and good food – pretty basic stuff.  However, not so according to USAID in an online publication:

“The ability to feed the world’s growing population will be severely challenged in coming decades by competition over increasingly limited water resources. Since the advent of the “green revolution” more than 30 years ago, the world has by and large managed to keep food production in pace with population growth. That situation is changing, however, with growth in world grain production markedly slowed since 1990. While reasons for the decline are complex, concern is mounting over the central role that irrigation plays in global food security, and the realization that achieving increased supply of irrigation water may become exceedingly difficult. On a global scale, irrigated agriculture accounts for less than 20% of the total cropland area, yields 40% of agricultural output, and consumes nearly 70% of total developed water supply.

Water Scarcity Threatens Global Irrigated Crop Production

Water shortages threaten to reduce global food supply by more than 10% in the next 25 years. Aquifer depletion, salinization of soils, and the reallocation of agricultural water to other sectors and users will combine to limit irrigated crop production. China’s projected grain shortfall alone (conservatively estimated at 175 million tons per year by 2025) would result in steep price increases and disruption of world grain markets, the brunt of which would be felt by the world’s poorest nations.

Exactly how much water will be needed to meet projected food demand is not well understood, but studies suggest that at least 20% more irrigation water will be needed by 2025. Falling investments in new dams and irrigation, combined with unsustainable aquifer depletion rates, dim the prospects for substantially increased irrigation even if it were desirable. Water demand competition is also growing among other stakeholders, including those of industry, expanding urban centers, and aquatic ecosystems. Assuming for a moment, however, that the 2025 global crop water requirement is met entirely by irrigation, an additional 2,050 cubic kilometers would be needed yearly—equivalent to the annual flow of twenty-four Nile Rivers or Colorado Rivers.

Water Scarcity Threatens Global Animal-protein Production

The animal protein component of the global food supply also has significant linkages with water resources management. The world relies heavily on oceans and rangelands for animal protein, but since 1990 both of these systems have been approaching their productive limits. Oceanic systems yield 80 million tons of seafood per year, a particularly important protein source in developing countries that accounts for one-fifth of animal protein consumed worldwide. Little or no growth can be expected in oceanic fish catch, however, as all 17 of the world’s major fishing areas have either reached or exceeded their natural limits. Beef production has also peaked, due at least in part to declining soil fertility of more than 20% of the world’s pasture and rangeland. Meanwhile, aquaculture has become the fastest growing sector of the world food economy, and is now poised to overtake cattle ranching as a food source by 2010.

Water quantity and quality are integral to the health and productivity of ocean, freshwater, and rangeland systems. The timing and volume of freshwater inflow is exponentially correlated with biomass production in estuarine environments, where 60%-75% of all commercially important oceanic species spend part of their lifecycles. The world’s 1.3 billion cattle are likewise a significant component of the water-for-food budget, requiring 7 kg of grain for every 1 kg of live weight. (As a rule of thumb, 1,000 tons of water is required to produce 1 ton of grain.) In contrast, fish require on average 2 kilograms of grain to add 1 kilogram of live weight, and are therefore more “water efficient” as an animal protein source. Aquaculture presents both costs and benefits, producing “water efficient” fish while exacting a heavy toll on habitat and water quality, and increasing evaporative losses from freshwater ponds. Clearly, these tradeoffs have important implications for evolving food and water management policy.”

“This is truly an issue we should all be cognizant of and plan accordingly,” says Ray Dinning, international tax lawyer and social venturer based in Washington, DC.  “The world is in a race to acquire resources for the future and the United States is woefully behind the competition,” says Dinning.

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Georgetown University Professor and Georgetown Tax Lawyer on TV Show

Ray Dinning, social venture tax lawyer, and Dr. Richard America, Professor at Georgetown University, were special guests on a law TV show on Nonprofits and Social Ventures in Washington, DC. On April, 20, Professor America and Attorney Dinning presented views on Nonprofits and staying competitive during tough economic times and social ventures in the Century of Africa.

Professor America is Georgetown University’s expert on African Business and Attorney Dinning has organized and structured numerous social ventures throughout Africa. Dinning, social venture tax lawyer, and Dr. Richard America, Professor at Georgetown University, were special guests on a law TV show on Nonprofits and Social Ventures in Washington, DC.

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