Summary The MSMEs contributed about 20 percent of the EA bloc’s Gross Domestic Product (GDP) estimated to be $193 billion Arusha. Mwanza will next month host the 21st edition of the micro, small and medium enterprises (MSMEs) in East Africa. The ten-day event will attract over 1,500 artisans from the six East African Community (EAC) partner states. Preparations for the trade fair, popularly known as Jua Kali/Nguvu Kazi are in high gear. It will be held under the theme ‘Promoting Quality and Innovation to Enhance EAC MSMEs Competitiveness and Post Covid-19 Recovery’. A statement issued yesterday by the EAC here said the exhibition will be held at the Rock City grounds in Mwanza. The 1st EAC MSMEs trade fair was held in Arusha in November, 1999 and coincided with the signing of the EAC Treaty. Thereafter, the EAC Heads of State directed that the exhibitions be held annually on rotational basis among the partner states. This, they said, would enhance and revamp the socio-economic integration of the people of East Africa given their critical role. To participate in the fair, exhibitors from the region have to register with their respective chapters of the Confederation of Micro and Small Enterprises Organisations (CMSEOs). According to available statistics, MSMEs represented nearly 90 percent of the total number of all businesses in the region. They contributed about 20 percent of the bloc’s Gross Domestic Product (GDP) estimated to be $193 billion. The sector also provides millions of jobs to people across the region of...

The Africa Continental Free Trade Area (AfCFTA) is the largest free trading zone in the world in terms of the number of participating countries. Although governments and enterprises have been working to ensure smooth collaboration among countries and regions ever since AfCFTA commerce started in January this year, there is much work to be done on technology infrastructure to ensure the free trade area lives up to its promise of improving the economy of the 55 participating states. Cross-border payment platforms, telecommunications networks and internet access are ingredients needed to ensure the success of the trade area. “If inter-market connectivity, data access, and soft infrastructure are critical to the success of trade agreements, then, by addressing these issues early and head-on, the AfCFTA can gain much more traction than past trade agreements,” Wamkele Mene , secretary general of the African Continental Free Trade Area Secretariat, said in Foresight Africa 2021 report. Indeed, technology has taken over almost all facets of life and business, trade and enterprise have not been spared. The new way of doing business includes using several digital tools to ensure transparency, lower costs and make trade efficient. Technology has not advanced evenly throughout the continent, and lack of reliable ICT infrastructure in certain areas has the potential to strangle the progress of the new trade area. But if planning is done well by government and private enterprise stakeholders, the following communications and technology and communications systems will boost trade within the continent. Read original article

As world leaders head to Glasgow for the United Nations Climate Change Conference, Africa needs decisive collective action rather than more encouraging words. In particular, rich countries should support a four-part financial and trade package that can ensure a transformative shift of resources to the region. Almost two years into the COVID-19 pandemic, the unequal nature of the global response to the crisis is glaringly obvious. Whereas very few African countries have managed to spend the equivalent of even 1% of their GDP to combat this virtually unprecedented health emergency, Western economies have mustered over $10 trillion, or 30% of their combined GDP, to tackle it. Europe and the United States have fully vaccinated, respectively, 75% and 70% of their adult populations against COVID-19, but fewer than 6% of Africans have been vaccinated. And while some Western countries are already administering booster shots, Africa cannot get initial doses. This systemic inequity is equally evident in efforts to address the climate crisis. Climate disasters, like viruses, know no boundaries. But whereas governments in the Global North respond to such events by borrowing on capital markets at negligible cost in order to finance stimulus and investment packages, African countries must rely on either a trickle of liquidity through debt-suspension initiatives, aid pledges, or exorbitantly expensive capital-market funding. None of these options currently provide these economies with the upfront capital investment they need to improve their long-term prospects. As world leaders head to Glasgow for the United Nations Climate Change Conference (COP26), Africa...

In Summary Under the deal, the corporation is set to improve its digital services through enhanced internal digital capacities. As part of the partnership, the corporation intends to increase its capacity to process 10,000 packages daily. Posta has sealed a Sh72million agreement with TradeMark Africa that is set to revolutionise its e-commerce operations locally and regionally. Under the deal, the corporation is set to improve its digital services through enhanced internal digital capacities. It will also benefit from improved collaboration with external, both regional and global actors, in the e-commerce space. Dan Kagwe, the Postmaster General and CEO of Posta said the partnership was a historical moment for the institution, as TMA becomes one of its partners. “It is a great beginning that will open doors for Posta to work with diverse stakeholders and access the potential that exists in the East African region,” said Kagwe. Notably, the country and region at large have over time experienced a rapid shift from traditional mail, money order, and stamp sales to the growth of e-commerce and packages below 10kgs that are relatable to SMEs. Anataria Uwamariya, the Director Business Competitiveness at TMA said Posta is an ideal partner to enhance the logistical nature of their interventions to enhance e-commerce ecosystems across the region, especially through its last mile delivery capabilities. The lucrative deal funded under the improved business competitiveness strategic objective of TMA’s Export Capability programme, seeks to facilitate increased trade capacity of targeted businesses through increased use of technology to boost regional trade and linking businesses to international markets. Against the...

Africa’s emerging “contactless economy” is creating plenty of new growth opportunities that investors can capitalise on Global Business Forum Africa 2021 in Dubai examines the growing role of technology as a development tool for African economies Important factors to focus on to promote digital technologies include affordable connectivity, affordable devices and digital skills Africa’s emerging “contactless economy” is growing rapidly in the Covid-era and creating plenty of new growth opportunities that African and foreign companies and investors can capitalise on, industry experts said on Wednesday at the Global Business Forum (GBF) Africa 2021 in Dubai. Held under the theme ‘Transformation Through Trade’ the two-day Forum is being held at the Dubai Exhibition Centre on the sidelines of Expo 2020 Dubai, under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. A session titled Tech-celeration: The Contactless Economy brought together Lacina Koné, Director General of the Smart Africa Secretariat from Côte d’Ivoire; and Innocent Muhizi, CEO of the Rwanda Information Society Authority. “When we talk about technology in the developed world, we talk about it disruption, about new players threatening the field,” Moderator Goolam Ballim noted. “This is in contrast to what we see in Africa, where technology is seen as more developmental than disruptive. It allows new players to enter into the market – a market that is often uncharted.” Lacina Koné spoke about Smart Africa’s vision to transform Africa into a single digital market by...

Speakers at the ‘Pandenomics’ webinar recently hosted by Nedbank Namibia CIB and Simonis Storm, and supported by Nedbank Business Banking and Nedbank Private Wealth, has called for more people to get vaccinated in order to help fuel economic growth after the impacts of the Covid-19 pandemic. The panellist included: Nedbank Group South Africa Senior Economist, Nicky Weimar; Head of Nedbank Namibia Corporate and Investment Banking (CIB), Dr Edward Turner, Simonis Storm Economist, Theo Klein; and Simonis Storm Managing Director, Bruce Hansen, who also moderated the discussion. During the discussion, Simonis Storm economist, Theo Klein, presented the economic impact and response to the COVID-19 pandemic. The presentation outlined that even though the Namibian economy has been declining for the last six-year, the COVID-19 pandemic, which resulted in the government having to introduce its lockdown policy, amplified the decline. According to the Simonis Storm report, the sectors hit hardest during this period include metal ores, beverages, accommodation, food services, meat processing, basic non-ferrous metals and transport. Growth is however forecasted for these sectors, but only marginally. Economic contractions have also resulted in job loss and retrenchment in these sectors. The presentation outlined that a total of 13,682 Namibians were retrenched between January 2020 and June 2021. Of this number 10,773 retrenchments were due to economic reasons, closure or discontinuation of business, while 2,909 were a direct result of the COVID-19 pandemic. Some of the factors which could lead to short-term economic growth include a higher than average rainfall season, a stronger focus...

The Common Market for Eastern and Southern African (Comesa) says unfovarouble trade policies are fuelling informal cross-border trade in Malawi. In its study, which reviewed seven Comesa member States, including Malawi on policies related to the formalisation of the informal economy focusing on informal trade, the 21-member Comesa said that Malawi has a sizeable informal economy, serving as a source of livelihoods. The study noted that trade policies are silent about cross-border trade; hence, not mainstreamed in national policies, plans and strategies. The study, which focused on the drivers and impacts of informality on the economy, said the development robs government of potential revenue. Reads the report: “Estimates suggest that informal cross-border trade exceeds the official economic activity. An important component of the informal economies of the member countries’ informal cross-border trade involves small-scale traders who carry goods across borders evading all regulatory requirements. “The immediate impact of this is that governments do not receive the tax revenues on these transactions. Informal cross-border trade also distorts the trade policy in these countries.” Reacting to the report yesterday, Cross-border Traders Association of Malawi president Steve Yohane admitted that most local cross-border traders are involved in informal trade. He said this is due to, among other factors, stringent taxation issues and cumbersome border conditions. Said Yohane: “Cross-border businesses in the country have continued to face various hardships, which have certainly eaten into incomes. Key among these is the issue of taxation which has pushed most traders into smuggling. “On top of this,...

Fintech leaders have encouraged Micro, Small and Medium Enterprises (MSMEs) operators to leverage digital commerce platforms to accelerate growth as they deliver quality services. In light of Covid-19 outcomes, figures show that there has been an uptake in the use of online platforms to deliver services to a wider market, as much as service providers had to adjust with preventive measures put in place. This was discussed during the iHUZO public-private dialogue that brought together leaders from public and private sector, policymakers, influencers, and key stakeholders in the e-commerce ecosystem on October 14. They discussed the different challenges MSMEs are facing and the role of digital platforms in enhancing service delivery, innovation, and financial growth. iHUZO project is a Covid recovery response project of Access to Finance Rwanda (AFR) that aims at accelerating the growth of micro and small enterprises by expanding the e-commerce sector in Rwanda. Data from iHUZO project show that currently, at least 596 MSMEs on-boarded e-commerce platforms while there are 521 iWorkers (potentially people who make a living through digital platforms). The minister of ICT and innovation, Paula Ingabire said that “this is definitely good progress depending on where we are coming from, but it’s important as we reflect on what the future looks like, to also understand the task at hand.” She pointed out that the number of MSMEs using e-commerce does not even represent 10 per cent of the size of the SMEs present. Adding that as more MSMEs are going digital, “it’s not...

The United Nations (UN) has challenged Malawi and other nations within the continent to invest in industrilisation and look at trade as a catalyst of competitiveness and sustainable economic development beyond aid. UN Resident Representative Shigeki Komatsubara was speaking Wednesday at the 27th session of the Intergovernmental Committee of Senior Officials and Experts (ICSOE) in Blantyre. He said, as a step towards economic recovery from pangs of the Covid pandemic, Malawi and countries within the region should leverage on the existing market under the African Continental Free Trade Area (AfCFTA) by making their industries competitive. Advertisement “We want to demonstrate that a lot of good things can be done by Malawians and for Malawians. We want to support Malawi’s key areas of investment,” Komatsubara said. He said investment from the UN and other development partners should be seen as key to economic growth and wealth creation which, in turn, should propel trade activities. He said the UN was working with the government and other stakeholders to increase efficiency of the money used and the resources spent for sustainable economic growth. “Our job is to invest in the future of Malawi; to demonstrate that things can happen by Malawians and for Malawians. And I am very proud to tell you about what I saw myself. It tells the story that, in Malawi, things can happen,” he said. Talks at the indaba were bordering on strides made towards regional industrialisation, growing the manufacturing sector and value-chains. It comes at a time UN...

Transporters of goods across the country have welcomed continued intervention by the government to subsidize fuel costs saying that it will go a long way to stabilize the cost of logistics and consequently cost of goods. Last week, the government, through the Rwanda Utilities and Regulatory Authority announced that diesel prices would remain unchanged at Rwf1054 per litre despite the global increase in prices. Petrol prices rose to Rwf1143 per litre from Rwf1,088. Without government intervention, prices of diesel and petrol would have risen by Rwf 110 and Rwf 80 respectively, to about Rwf1,134 and Rwf1,198. Transporters say that without the intervention, the increase in costs would have seen them revise their prices upwards which would have seen prices of goods consequently rise. Fabrice Mugwiza who operates trucks moving agricultural produce across the country said that an Rwf80 price increase in Diesel would have led them to adjust costs incurred by farmers which could have seen an increase in food prices. “Given that business is yet to fully pick up after disruption by Covid-19, most transport operations are quite price sensitive and any changes in fuel could see the costs transferred to clients,” Mugwiza said. Without the subsidy, the public transport prices would have also increased as the costs would have eaten into public transporters profits which have already been stretched thin by the measures to curb the pandemic. Kigali based public transport bus companies told The New Times that with most of them currently paying loans which they recently restructured, increase...