Leading figures in economics and urban planning convened at the Gordon Institute of Business Science (GIBS) seminar titled ‘Second to None: Second Cities and Next Cities as Engines of Africa’s Prosperity’. This is Part 4 of a four-part series.
The pivotal role of intermediate cities in South Africa’s urban landscape as it affects contractors in the HVAC&R space took center stage at the seminar, where panelists discussed the challenges and opportunities inherent in these cities’ development trajectories.
The panel consisted of: Prof Adrian Seville, GIBS; Siphelele Ngobese, senior researcher: South African Cities Network; Hennie Heymans, CEO DHL Express Sub-Saharan Africa; and Francois Fouche, economist and researcher.
The seminar provided a thought-provoking platform for envisioning Africa’s economic trajectory and the strategic imperatives needed to capitalise on its demographic advantages.
Ngobese highlighted Africa’s paradoxical situation: while Western nations have historically benefited from industrialisation driven by fossil fuels, Africa is urged to abandon similar paths due to environmental concerns. “We have to be creative, tapping into the vast potential and youthful energy of our population.”
The panel then shifted to a broader exploration of whether Africa can leverage its demographic dividend to leapfrog traditional economic models. One of the main themes underscored the need for African countries to innovate and diversify their economies away from traditional industries. The rise of fintech and startups across the continent exemplifies this shift, showing how young Africans are driving economic progress through technology and service-oriented businesses.
Heymans shared an example from Mauritius, where strategic planning and investment revitalised the textile industry, leading to significant foreign direct investment and job creation in South Africa.
Addressing the looming threat of climate change, participants acknowledged Africa’s vulnerability and highlighted the urgent need for adaptation strategies. “Africa is the most vulnerable and least prepared region for climate change,” Seville cautions. With projections indicating significant climate-induced migrations within the continent by 2050, there was a call to rethink urban planning and infrastructure to mitigate these impacts.
It was noted that in tandem with growing urbanisation, climate change also meant that many of these growing cities would bear the brunt of global warming and require air-conditioning in order to be liveable, suggesting an opportunity for the HVAC&R sector.
Despite the challenges, the seminar ended on an optimistic note, advocating for a shift towards service-oriented economies and the potential of industries like remote robotics and healthcare to leapfrog Africa into a new era of global competitiveness.
The panel called for empowering young Africans and integrating them into decision-making processes. Efforts to amplify youth voices and enhance institutional capacities to engage with younger demographics were highlighted as crucial for sustainable development.