Hi, there! First off, I must extend my deepest apologies. It’s been a long time I sent something over. To kidnap J.P Morgan's statement from its original context, we all have two reasons: the real reason and the reason that sounds good. Regardless, welcome to Refined Insights, the newsletter where I analyse emerging trends to see whether they are worth the hype and to trace their ripple effects on the developing world. So, welcome once again, sit back, and enjoy.
Jul 25, 2022·edited Jul 25, 2022Liked by Refined Insights
I suppose you can look at petrochemicals and power generation.
Africa, or at least some countries within it, have oil but no refining capacity. So they have to buy it back in as refined products.
The ubiquitous imported diesel or petrol generators are everywhere in Africa at the back of houses and businesses and switched on when the power load shedding takes place. They also run on imported refined oil products. Yet they are an easily manufactured product.
Software engineers are useful but not critical to the basic energy needs of a country without which a country cannot develop. And renewables are expensive and unreliable.
Still why is manufacturing not there. It can be available capital, few entrepeneurs or corruption.
The people who import make a lot of money out of it and can discourage local manufacturing. An idea is around in Africa that states are gatekeeper states or run on gatekeeper principles. Part of the thought is that the policy was inherited from colonialism. It has been debated by Swedish economists and others though the idea originally came from a New York historian. Botswana and Nigeria amongst others have been discussed in its context. I don't know if you have ever looked at it.
I suppose you can look at petrochemicals and power generation.
Africa, or at least some countries within it, have oil but no refining capacity. So they have to buy it back in as refined products.
The ubiquitous imported diesel or petrol generators are everywhere in Africa at the back of houses and businesses and switched on when the power load shedding takes place. They also run on imported refined oil products. Yet they are an easily manufactured product.
Software engineers are useful but not critical to the basic energy needs of a country without which a country cannot develop. And renewables are expensive and unreliable.
Still why is manufacturing not there. It can be available capital, few entrepeneurs or corruption.
The people who import make a lot of money out of it and can discourage local manufacturing. An idea is around in Africa that states are gatekeeper states or run on gatekeeper principles. Part of the thought is that the policy was inherited from colonialism. It has been debated by Swedish economists and others though the idea originally came from a New York historian. Botswana and Nigeria amongst others have been discussed in its context. I don't know if you have ever looked at it.