April 5, 2017
Africa needs to create parallel ecosystems that can support wider innovation
The drive for growth in Africa comes in many forms. In the past, natural resources and agriculture have been the cornerstones of this mission but have also relayed heavily on the performance of the business sector and foreign investments. However, challenges have materialized in this area due to the lack of non-oil economic growth as mineral-rich nations battle to build diversified economies.
It is necessary to expand Africa’s development with sustainable systems that are not solely dependent on typical natural resources (mining, timber, agriculture) using diversification, which can be implemented in many ways, namely through innovation that specifically focuses on sustainable economic advancement.
Africa requires a self-sustaining ecosystem, which is vital for economic diversification away from oil commodity subsidization and in turn, will create a robust and diverse supply chain. An innovation ecosystem, like any other ecosystem, is a living, functioning, ever-evolving mechanism that supports the continuous creation of new products and services to meet evolving market needs. It consists of multiple participants, resources, and recipients who each have a role to play in perpetuating this environment of co-creation.
An integral part of such a sustainable economic ecosystem is done through the increase of new infrastructure as shown by the formation of a state-of-the-art port facility in the Province of Cabinda at Porto do Caio. A lot lies in the cultivation of financial support: The launch of Porto do Caio supports this by way of job formation. It will generate significant revenue for the region by diversifying exports and increase trade opportunities internationally while serving as a key factor for the economic development of both direct and induced job creation. It will also feature a tax-free shipping zone that will present a unique element of differentiation to distribute transshipment to neighboring countries. Furthermore, the efficiency of Porto do Caio will decrease logistic costs, the cost of goods and cost of living as a first effect. With the building of a port cluster of special economic zones, industrial zones and a tax-free zone, it will create new opportunities to transform semi-finished products into finished products and add additional value and exportation opportunities.
The continent needs companies and investors that are prepared to connect with long-term commitments that will enable the economy to grow and prosper. The infrastructural innovation of Porto do Caio at Caio Porto, S.A., will make transport logistics easier for producers and processing firms to ship goods. These technological investments are crucial for African business entrepreneurs to flourish.