Gearing for Vision 2063: the case for Africa’s modernisation

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The African Union’s articulation of its 2063 vision for the continent has created a compelling call to action for public and private sector players across regions to partner for the growth and development of Africa and her people. Transforming the vision into a tangible reality will require far more than “best practice” rollout or “business as usual” thinking, however. Stakeholders will actively need to share – and learn – from lessons of the past, build on current progress and effectively exploit opportunities responsibly to ensure positive socioeconomic transformation for all of Africa’s peoples within the next 50 years. Busisiwe Legodi, CEO of CIMERWA Ltd, argues that modernisation has a key role to play in the continent’s opportunity space, ensuring that Africa ultimately gears towards self-reliance and sustainability.

First shared with the world in May 2013, the African Union’s vision for 2063 amounts to a paradigm shift for the continent: “an integrated, prosperous and peaceful Africa, driven by its own citizens and representing a dynamic force in the global arena”.

A little over two years later, and it remains difficult to quantify short-term traction in many respects.

“Disparate rates of development, a critical need for infrastructure, ongoing political unrest and Africa’s growing youth bulge are all constant reminders of the work – and potential – that lies ahead of us,” notes Busisiwe Legodi, CEO of CIMERWA Ltd in Rwanda. “As such, the challenge facing public and private entities and investors on the continent is how to drive individual and strategic development, and coordinate efforts towards the achievement of this vision, against the back of its realisation possibly only being in 50 years’ time.”

This makes understanding the opportunity space within one’s own value chain that much more important according to Legodi – as well as the nuances of the region in which one is operating. “Creating a sustainable future for Africa demands growth and development both in terms of infrastructure and clean energy. We also have to meet ever-growing (and more vocal) consumer demands against the backdrop of climate change, resource scarcity and an increasingly youthful population. While everyone is clear on the ‘why’, the ‘how’ is understandably proving more challenging.”

With economic development critically linked to innovative solutions, Legodi argues that modernisation has a key role to play in this regard. “Modernisation of existing infrastructure and plant especially in the mining and manufacturing sectors is critical to building and sustaining the momentum needed for long-term development. It gives much needed impetus to Africa’s industrialisation and beneficiation ambitions.”

Legodi draws on PPC’s own experiences in Rwanda in this regard. “As strategic investors on – and in – the continent, we saw a clear opportunity in Rwanda to reposition the existing CIMERWA plant (originally commissioned in 1984) as a regional player by modernising and upgrading the operation and, very importantly, the skills set of the local team.”The modernisation process was started early in 2013 after PPC purchased a 51% stake. Two years of construction and an investment of US$170 million subsequently saw the capacity of the plant increased by over half a million tons to that of 600 000 tpa.

“CIMERWA was commissioned last year and our provisional acceptance certificate is expected later this month,” notes Legodi. “Product is already moving to the main market of Kigali, Rwanda’s capital, which accounts for approximately 55 – 65% of local demand. Our target export markets in the region comprise Burundi, as well as north and south Kivu in DRC.  As such, the plant answers a direct infrastructural and development need in the region.

The plant has also been geared towards long term productivity and efficiency through the introduction of a state-of-the-art five stage preheater calciner. “This has reduced energy use significantly.”

The case for modernisation in Africa is about far more than creating additional sources of products however. “In boosting overall competitiveness, one simultaneously supports the development of up and downstream industries,” explains Legodi. “Much of this growth, as we have seen in the case of the logistics sector around CIMERWA, happens as a natural extension of the original investment. By then partnering with these industries and players, one is able to set the stage for even greater development and, ultimately, position all parties concerned for a sustainable future.”

With Africa still seen as the new “frontier” for investment and development, Legodi notes that a partnership approach – with government, other players and local community – will make all the difference in terms of achieving Vision 2063. “If we’re able to take a collective approach to modernising key industries, we can potentially mobilise regions towards self-reliance and sustainability. This will ensure we empower the continent and its people in the long-term and drive Africa’s future towards it becoming a truly global player.”