African continent on the rise – but slowly



Africa’s middle class is a strange creature that defies easy description.

How large and how fast it is growing is a topic of constant debate among economists. Between 2001 and 2011 more than 700 million of the continent’s 1.1 billion people escaped poverty, according to the US-based Pew Research Center. Only about 6 per cent of them meet the basic entry level for middle class though, an income of between US$10 to $20 per day, Pew said.

Others set a lower threshold – the African Development Bank uses $2 as the benchmark for middle-class income, and says almost 500 million people qualify. This is probably a stretch, and most studies point towards a $10 baseline, which puts around 40 million people in the middle-class category.

This is a comedown from the “Africa rising” narrative that ran through much of the commodity supercycle that saw wild predictions of a mass entrance to higher economic ranks, by among others The Economist, declaring it “The hopeful continent” in 2011. Still, while small, the continent’s middle class is growing in what appears to be a sustainable manner.

A report by the UN Commission on Africa a year ago noted that economic growth was expected to remain around 5 per cent for most countries, on a par with many Asian economies. Some countries such as Ethiopia are still managing 10 per cent. The UN says the figures themselves are less significant than what is driving them; growth is largely fuelled not by raw material exports but by domestic consumption. In other words Africans buying and selling goods and services to and from each other. The same report shows foreign direct investment between African states is growing at more than 30 per cent a year.

This is being driven by tourism and hotel construction, mobile telecommunications, financial services and agriculture. Just this year Nigeria became self sufficient in cement production, ending years of being dependent on imports.

According to the Harvard Business Review (HBR), Africa now has 400 companies worth more than US$1 billion, with a combined annual income of $1.2 trillion. This could easily increase as African manufacturing worth $500bn a year now could double to $930bn in 2025 on local demand alone, says HBR.

So, the middle-class march was overblown to an extent and the true picture of its size is now tempered with the reality that most of Africa’s people remain poor and powerless.

Yet the middle class remains resilient and is probably African countries’ best shot at improving their lot. The shopping malls in Accra, Nairobi and Johannesburg are signs that Africa is indeed rising – just not so fast.

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The specs

Engine: 4-litre twin-turbo V8

Transmission: eight-speed PDK

Power: 630bhp

Torque: 820Nm

Price: Dh683,200

On sale: now

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UAE currency: the story behind the money in your pockets
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Winner AF Almomayaz, Hugo Lebouc (jockey), Ali Rashid Al Raihe (trainer)

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Winner Karaginsky, Tadhg O’Shea, Satish Seemar.

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Winner Shanaghai City, Fabrice Veron, Rashed Bouresly.

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

SPECS
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The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5

ELECTION%20RESULTS
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UAE currency: the story behind the money in your pockets
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RACECARD
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Coffee: black death or elixir of life?

It is among the greatest health debates of our time; splashed across newspapers with contradicting headlines - is coffee good for you or not?

Depending on what you read, it is either a cancer-causing, sleep-depriving, stomach ulcer-inducing black death or the secret to long life, cutting the chance of stroke, diabetes and cancer.

The latest research - a study of 8,412 people across the UK who each underwent an MRI heart scan - is intended to put to bed (caffeine allowing) conflicting reports of the pros and cons of consumption.

The study, funded by the British Heart Foundation, contradicted previous findings that it stiffens arteries, putting pressure on the heart and increasing the likelihood of a heart attack or stroke, leading to warnings to cut down.

Numerous studies have recognised the benefits of coffee in cutting oral and esophageal cancer, the risk of a stroke and cirrhosis of the liver. 

The benefits are often linked to biologically active compounds including caffeine, flavonoids, lignans, and other polyphenols, which benefit the body. These and othetr coffee compounds regulate genes involved in DNA repair, have anti-inflammatory properties and are associated with lower risk of insulin resistance, which is linked to type-2 diabetes.

But as doctors warn, too much of anything is inadvisable. The British Heart Foundation found the heaviest coffee drinkers in the study were most likely to be men who smoked and drank alcohol regularly.

Excessive amounts of coffee also unsettle the stomach causing or contributing to stomach ulcers. It also stains the teeth over time, hampers absorption of minerals and vitamins like zinc and iron.

It also raises blood pressure, which is largely problematic for people with existing conditions.

So the heaviest drinkers of the black stuff - some in the study had up to 25 cups per day - may want to rein it in.

Rory Reynolds

Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

The specs: Lamborghini Aventador SVJ

Price, base: Dh1,731,672

Engine: 6.5-litre V12

Gearbox: Seven-speed automatic

Power: 770hp @ 8,500rpm

Torque: 720Nm @ 6,750rpm

Fuel economy: 19.6L / 100km

If you go

The Flights

Emirates and Etihad fly direct to Johannesburg from Dubai and Abu Dhabi respectively. Economy return tickets cost from Dh2,650, including taxes.

The trip

Worldwide Motorhoming Holidays (worldwidemotorhomingholidays.co.uk) operates fly-drive motorhome holidays in eight destinations, including South Africa. Its 14-day Kruger and the Battlefields itinerary starts from Dh17,500, including campgrounds, excursions, unit hire and flights. Bobo Campers has a range of RVs for hire, including the 4-berth Discoverer 4 from Dh600 per day.

The biog

Favourite Emirati dish: Fish machboos

Favourite spice: Cumin

Family: mother, three sisters, three brothers and a two-year-old daughter

Name: Colm McLoughlin

Country: Galway, Ireland

Job: Executive vice chairman and chief executive of Dubai Duty Free

Favourite golf course: Dubai Creek Golf and Yacht Club

Favourite part of Dubai: Palm Jumeirah

 

THE SPECS

Engine: 1.5-litre turbocharged four-cylinder

Transmission: Constant Variable (CVT)

Power: 141bhp 

Torque: 250Nm 

Price: Dh64,500

On sale: Now

What is the FNC?

The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning. 
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval. 
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
 

A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

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