Uganda’s economic indicators spell better conditions for the private sector and business compared to other countries in the region, according to an expert study, the Africa Trade Barometer (ATB). Uganda’s overall macroeconomic conditions are “average with a slight positive outlook relative to the other countries in the Stanbic Bank Africa Trade Barometer.” “As such, Uganda’s macroeconomic conditions have a moderate to positive impact (neither too positive nor too negative) on its overall tradability attractiveness,” says the just-issued report, courtesy of the Standard Bank Group. The favorable conditions cited include the economy and the growing foreign direct investments (FDI) net inflows, which have been recovering from the worst effects of the COVID-19 pandemic and a relatively low inflation rate, compared to other countries covered by the ATB. While these factors have had a positive impact on the country’s tradability attractiveness, there are other variables that have had a negative impact, according to the report. These include merchandise trade, which still forms a relatively small portion of Uganda’s GDP and thereby signals a low level of trade openness as well as a low share of exports as a percentage of GDP. It adds that although businesses in Uganda are optimistic about the future performance of their economy, Uganda’s business confidence score of 57 remains slightly below the average of 58 for SB ATB markets. The positive outlook adopted by Ugandan businesses arises from the expected positive economic growth rate that is relatively higher than the average for Sub-Saharan Africa. The weaknesses of...

The high cost of air travel in Africa has been described as a barrier to tourism. Travellers within the continent not only pay higher ticket prices but also more tax to board a commercial aircraft. This emerged at the just-ended World Travel and Tourism Council (WTTC) global summit in Kigali, Rwanda. Speakers at the high-profile event—heads of state, business executives, and travel experts—said intra-Africa air travel remains prohibitive. “It is often cheaper to fly to another continent than to another African country,” they said as the meeting drew to a close. They cited an air ticket between Berlin in Germany and Istanbul costing a mere $150 for a direct flight taking less than three hours. Flying a similar distance between Kinshasa and Lagos in Nigeria would cost between $500 and $850, with the trip taking up to 20 hours. On the other hand, the cost of a flight from Entebbe in Uganda to the Kenyan port of Mombasa (916km) will cost up to $200. This is roughly eight times the cost of flying the same distance in Europe. There are also reports that a flight from Kampala to Arusha costs a staggering $480. Yet one can fly from Washington to Dallas (both in the vast US) using only $180, with a longer distance compared to Entebbe-Arusha. “This makes doing business within Africa incredibly difficult and expensive,” said Kamil al Awadhi,the regional vice president for Africa and the Middle East of the International Air Traffic Association (Iata). An assistant professor of...

The Abidjan-Lagos highway corridor, a crucial infrastructure project in West Africa, has secured a substantial $15.5 billion in investment interest, as revealed by Dr. Akinwumi Adesina, President of the African Development Bank, at the 2023 Africa Investment Forum (AIF) Market Days in Marrakech, Morocco. This corridor is anticipated to boost regional integration, sustainable economic development, and augment trade opportunities across West Africa. Unleashing Africa’s Potential Adesina emphasized the potential of African economies, citing a real GDP growth of 3.8% in 2022, surpassing the global average. He also highlighted the promising prospects for African economies, with five of the six pre-pandemic top-performing African countries projected to be among the world’s 10 fastest-growing economies for 2023–2024. Moreover, Adesina underscored the significance of the African Continental Free Trade Area (AfCFTA), which represents a consolidated market size of $3.4 trillion, and he encouraged investors to recognize Africa’s potential. Africa’s Role in the Electric Vehicle Market Adesina discussed the burgeoning opportunity in the electric vehicle market, emphasizing Africa’s pivotal role as a significant source of green metals essential for electric vehicle development. He pointed out that Africa’s resource wealth is key to the future of electric vehicles, with the electric vehicle value chain projected to increase from $7 trillion to $57 trillion by 2050. Agricultural Sector and SAPZs Beyond infrastructure and economic developments, Adesina addressed the agricultural sector, stressing the importance of Special Agro-Industrial Processing Zones (SAPZs) in Africa. He highlighted the immense potential of Africa’s food and agriculture market, projected to reach $1 trillion...

The launch of the new Foreign, Commonwealth & Development Office (FCDO) last week provides an excellent opportunity to reset the UK’s economic engagement with low- and middle-income countries. As the new department takes shape, it is crucial to consider the stated benefits of bringing development and diplomacy together through this merger of the Department for International Development (DFID) and the Foreign & Commonwealth Office (FCO). One area in which the benefits could be large and visible is economic development, but so far there has been little attention to the role of the FCDO as an economics ministry. This is perhaps surprising: DFID is rightly proud of its recent experience in managing economic development programmes such as Trademark East Africa and Nepal’s Economic Policy Incubator. A new set of essays, published last week by ODI, considers 10 ways the experience of the FCO and DFID could underpin economic policy in the FCDO. Ten new opportunities for the FCDO The essays offer 10 economic development proposals for an imaginative new approach to capitalise on mutual interest and help achieve development goals. They are: 1. Publish a coherent UK–Africa strategy This must help to reinvigorate UK-Africa trade and investment relationships following a decade of stagnation, during which time Africa has stepped up engagement with other parts of the world. Leaving the EU means the UK needs to consider new trading arrangements with African countries, which are set to integrate through the Africa Continental Free Trade Agreement (AfCFTA). The UK-Africa Investment Summit in January also needs follow up. It is time for an ambitious Africa strategy. 2....

The Covid-19 pandemic has resulted in unprecedented disruption to the global economy and world trade. Many countries have locked down their borders, or severely restricted freedoms in a bid to contain community transmission of the virus. Globally, 3 billion people depend on international trade for their food security; a huge number of them are in Africa. It is for this reason that markets must be kept open. Countries should refrain from export restrictions. Trade restrictions should be targeted, temporary, and proportionate, and in line with WTO obligations. Unjustified trade barriers on food and agricultural products in particular, as well as key production inputs, must be avoided, so that food remains available and any supply chain impact is limited. In light of the risks posed by Covid-19, several countries have increased sanitary and phytosanitary (SPS) controls relating to human, animal, and plant health as an emergency measure. For food supply chains, there are risks that may be carried by agricultural and food commodities rendering them unsafe for trade or consumption. Therefore, governments impose measures to address food safety, animal health, and plant health risks associated with production and supply of food or agricultural commodities. Contaminated food is a major source of foodborne disease, the global burden of which is extremely high. Estimates show one in 10 people fall ill every year from eating contaminated food, and 420,000 die as a result.   Invest with Impact. Click here. Current evidence suggests Covid-19 derived from a zoonotic source, namely an animal species in frequent close contact with humans – though...