SUMMARY The survey finds that social media platforms are powerful catalysts in the formation and growth of new small- and medium-sized businesses. More SMBs have increased the use of social media and online messaging during the Covid-19 pandemic to communicate with customers, operate remotely, raise capital and make sales. Social media platforms are accelerating economic growth and opportunity across the continent, a new study by Genesis Analytics has shown. The independent study aimed at exploring the impact of the digital economy on small- and medium-sized businesses (SMBs) was conducted in eight African countries – Kenya, Senegal, Côte d’Ivoire, DR Congo, South Africa, Nigeria, Ghana and Mauritius. The survey explored the adoption and use of social media and messaging platforms; value to SMBs; barriers to usage; and the impact of the Covid-19 pandemic. The focus was on the Facebook company technologies, being Facebook app, Instagram, Whatsapp and Messenger. The report shows that surveyed SMBs that use the Facebook apps have younger employees with an average share of 45 percent of employees under 30. Additionally, SMBs using Facebook apps reported a higher frequency of being owned by women, while SMBs in the manufacturing sector ranked the ability to access new foreign markets as the most beneficial advantage of the apps. The survey finds that social media platforms are powerful catalysts in the formation and growth of new SMBs. Some 73 percent of surveyed SMBs report using social media. Of the surveyed SMBs that use the Facebook apps, 84 percent report that the...

Summary The potato flood comes as Kenya and Uganda once again spar over market access for their manufacturers. Trade barriers are a form of invisible tax which makes trade cumbersome, inefficient and expensive. Such a culture also deems prospects for the African Continental Free Trade Area, whose success is in large measure, is going to depend on how well the regional economic blocks work. Kampala has been flooded by potatoes from Kenya this season, bringing relief to consumers. A 90kg bag of Kenyan potatoes is retailing at just under $20, compared with almost double the price for varieties coming from southwestern Uganda. The potato flood comes as Kenya and Uganda once again spar over market access for their manufacturers. Still running a deficit, Kenya reportedly slashed the export quota for sugar originating from Uganda, kicking up a storm. On the streets of Kampala, consumers are mildly aware of the dispute but are opposed to the cheap Kenyan potatoes that are helping moderate the price of potatoes in their own market. Across the other pole, on the Kenya-Tanzania border, the volumes of maize coming in from Tanzania have helped stabilise consumer prices for the staple grain in Kenya. What is happening in the regional potato and maize market should be instructive for policy makers in East Africa’s six capitals. With much ceremony and self-adulation, they have in the past signed to protocols supposed to open up trade and business in East Africa. Yet faced with temporary challenges, they are quick to...

The ease of doing business reforms in Kenya has had a profound impact on the growth of small businesses in the last six years. In the past, regulations, rules and government policies placed a disproportionate burden on small firms and entrepreneurs. There were significant fixed costs and processes associated with compliance. Partly due to such concerns, growth of small businesses has been impaired, even though the informal sector account for a good share of Kenya’s Gross Domestic Product growth. In 2020, Kenya had an overall small business count of 12 million. Over 200 businesses were registered daily compared to 30 six years ago. Over 600,000 new businesses and hundreds of multinationals have been registered since 2014. These are tangible results of the country’s strategic thrust to reform the legal and regulatory environment for small entrepreneurs. Over these years, reforms have been made in 10 reform indicators including: starting a business; dealing with construction permits; getting electricity; registering electricity; getting credit; protecting investors; paying taxes; trading across borders; enforcing contracts; and resolving insolvency. In general, the reforms have involved a whole-of-government commitment and approach in close collaboration with the private sector. Between 2014 and 2019 alone, the number of procedures to register a business dropped from 10 to 7. The time taken to set up a business fell by 28 per cent from 32 business days to 14 – and to one day in 2021. At the same time, the cost to set up a business fell by 16 percentage points....

The full operationalization of the Naivasha Container Inland Depot is expected to boost and promote economic potential and business competitiveness within the larger Eastern Africa member states. Speaking at the site, East African Community PS, Dr. Kevit Desai, said the inland depot holds a huge potential in promoting interconnectivity and shared infrastructure within the member states, while ensuring seamless transportation of cargo from the depot to individual countries’ destinations. Dr. Desai said the inland depot seeks to achieve and realize economic and social developments in the country and those of individual member states, while also opening opportunities for joint business ventures. The PS said the construction of the depot by the government aims to enhance business and save time as well as the cost of transporting cargo from the port of Mombasa to other countries, which will promote high level of inter-trade along the Northern Corridor. He said the depot which sits on an area of 100 acres in Naivasha and served by the newly constructed Standard Gauge Railway, will enhance efficiency and promote high level of manufacturing and value addition of goods that individual countries aspire. “This depot is part of SGR logistics which brings the Mombasa port closer to by over 500KM in the Eastern Africa hinterland, thereby reducing time and cost of transportation of cargo to and from the port,” said Desai. The PS said the depot has so far handled 11,000 TUES since the ICD freight operations were launched in December 2019 following the construction of...

Summary All goods destined for South Sudan and the DR Congo from either the port of Mombasa or Dar es Salaam through the border points of Kenya and Uganda will have to be issued an Electronic Cargo Traffic Note Certificates at a minimum cost of $75 for both exports and imports. The fee ranges from $75 to $100 for vehicles, 20ft containers will cost $80 while those of 40ft will be$110. The Northern Corridor, a lifeline of the region, is continuously facing challenges that affect cross border trade, slowing down commerce and causing shocks to economies struggling to recover from effects of the pandemic. South Sudan, Uganda and Kenya are still working through the recent resumption of cargo trucks movement to Juba following weeks of blockade. But just as soon, this month, South Sudan asked the Uganda Revenue Authority to start implementing the Electronic Cargo Traffic Note Certificates (ECTN), adding another layer of costly regulation to be borne by importers and transporters, increasing the cost of using the Northern Corridor. This means all goods destined for South Sudan and the DR Congo from either the port of Mombasa or Dar es Salaam through the border points of Kenya and Uganda will have to be issued an Electronic Cargo Traffic Note Certificates at a minimum cost of $75 for both exports and imports. The fee ranges from $75 to $100 for vehicles, 20ft containers will cost $80 while those of 40ft will be $110. Truck drivers who violate this order will...

The ECOWAS Commission, in collaboration with the International Trade Centre (ITC), organized the 2nd virtual Regional Workshop on the African Trade Observatory (ATO) on 8 September 2021 for Experts from Ministries of Trade and National Statistics Agencies, as well as representatives of Customs Authorities to review status of development of the Observatory. The African Trade Observatory, is one of the five African Continental Free Trade Area (AfCFTA) operational instruments along with the rules of origin; the online negotiating forum; the monitoring and elimination of non-tariff barriers; and the digital payment system, that was launched at the African Union 12th Extraordinary Summit held in July 2019 in Niamey – Niger. In his opening remarks, Mr. Kolawole SOFOLA, Acting Director of Trade, on behalf of H.E. Jean Claude KassiBrou, President of the ECOWAS Commission, and Tei KNOZI, Commissioner for Trade, Customs and Free Movement, recalled the importance of the AfCFTA in achieving Sustainable Development Goals, the African Union (AU) Agenda 2063 and deepening the regional integration agenda. Before he declared the meeting open, he highlighted the expected benefits of the ATO for the ECOWAS region which include increased competitiveness, market opportunities for traders, and development of regional value chains and new sectors. This second regional meeting on the African Trade Observatory provided an update on the operational development of the observatory. During the meeting, ITC provided participants with an overview of the observatory, including its main features and how national experts can engage with the platform. The African Trade Observatory seeks to...

SUMMARY The theme for this year’s African Green Revolution Forum (AGRF) to be held in Nairobi from September 6-10 is ‘Pathways to Recovery and Resilient Food Systems’. AGRA has been funded to date by governments and major international donors such as the Bill and Melinda Gates Foundation to “transform African agriculture from a subsistence model to strong businesses that improve the livelihoods. The theme for this year’s African Green Revolution Forum (AGRF) to be held in Nairobi from September 6-10 is ‘Pathways to Recovery and Resilient Food Systems’. Yet 15 years after its convener, the Alliance for a Green Revolution in Africa (AGRA) was founded in 2006, questions remain about the viability of its high inputs model in addressing Africa’s food insecurity. AGRA has been funded to date by governments and major international donors such as the Bill and Melinda Gates Foundation to “transform African agriculture from a subsistence model to strong businesses that improve the livelihoods of the continent’s farming households”. However, some of the countries where AGRA has focused its efforts have seen continued poverty. African civil society, faith leaders and supporting organisations across Africa have raised concerns about the industrial farming initiatives in a letter to the Gates Foundation. Our view is that we do not need farming ‘solutions’ but rather support to locally appropriate solutions, working in partnership with small-scale farmers in ways that increase climate resilience. TOP-DOWN APPROACHES As can be seen from other top-down approaches that have failed in Africa, such as UNFCCC REDD+...

Paul Mitei, a farmer from Kiptoben Village, Nakuru County, Kenya started growing avocados because other farmers in his community were also growing them AdobeStock 244722424NASFPA members have harvested 25,000 kgs of avocado for export so far, earning about US$22,500. (Image source: Adobe Stock) But due to poor crop management skills, the fruit yields were low with almost no profits. “Before the Forest and Farm Facility Programme (FFF) reached out to us, I faced many challenges in marketing the avocado produce from my farm,” says Paul. Paul furthers adds that he wanted to know more about how the avocado and tomato value chains worked, and the essential inputs that are critical to avocado cultivation, and meeting market demands. To improve his knowledge, he joined the Nakuru Small Holder Fruit Producers Association (NASFPA), with the hope of growing the sales of his farm produce. “Being a member of NASFPA, I am now well informed about how better market access can benefit from the FFF project. The initiative also gave me the opportunity to export my produce to Europe,” Paul said. He now produces high value fruits and sells together with his fellow NASFPA members. He has close to 104 avocado fruit trees, out of which 15 trees became fully matured last year. He harvested 500 kgs of fruit, and sold them for US$600. Farmers' organisations support farmers' livelihoods The Nakuru Small Holder Fruit Producers Association (NASFPA) was formed in July 2016, with support from the Forest and Farm Facility, a partnership involving...

IN a bid to speed up integration through cross border trade and investments, East African Business Council and regional member of states’ chambers of commerce have agreed on flexible approaches to address emerging setbacks holding back progress. EABC executive director, John Kalisa. Speaking at the climax of an East Africa Trade and Industrialization Week held in Dar es Salaam on Friday, EABC Executive Director, John Kalisa said that there a number of areas that stakeholders discussed and agreed such as strengthening the private sector engagement among member states. Kalisa said business people highlighted issues hindering rapid economic integration and cross border trade as presence of non-tariff barriers, standardization and sanitary and phytosanitary standards and of late, measures related to the Covid-19 pandemic. He said private sector members from the member states also agreed to promote inclusiveness, access to finance by women and youth and how has the EAC position itself to exploit opportunities provided by African Continental Free Trade Area (AfCFTA). “Issues raised are related to no-tariff barrier, access to finance, economic recovery post the Covid-19 pandemic which has badly affected economic sectors such as tourism and agri-business. We are targeting to rebuild trust and confidence among member state,” Kalisa said. “Participants also discussed on how EABC can unlock the challenge by engaging the African Development Bank and other development banks to ensure that SMEs of the region have access to affordable and long term financing,” the EABC chief said. According to him, the weeklong discussions among stakeholders in the...

The Africa World Trade Network (AWTN) has partnered the Africa Continental Free Trade Area (AfCFTA) Secretariat to accelerate intra-regional trade and investment through exhibitions, meetings and events. The partnership seeks to mobilise private sector actors across Africa to drive the attainment of strategic objectives that underpin the Africa Continental Free Trade Area Agreement. The partnership between AWTN and the AfCFTA Secretariat is meant to work towards three common objectives that support continental trade and investment promotions across Africa and promote the overall objectives of the Africa Continental Free Trade Area Agreement: To co-organise and host forums that support continental trade and investment promotions in Africa and promote the overall objectives of the AfCFTA Agreement To support the growth and development of Africa’s commercial community; and To collaborate on matters of common interest, in the pursuance of enhancing intra-trade in the Continent Speaking at the signing ceremony, Board Chair of AWTN, Otwasuom Osae Nyampong VI, said: “Intra-regional trade promises a real win for Africa, and the AfCFTA Secretariat is at the forefront of this significant progress in the continent’s history; it is a second Pan-African victory after Independence. AWTN on its part has recognised this watershed moment and will act as a catalyst to boost trade relations among member states and businesses across the continent.” Otwasuom Osae Nyampong VI emphasised: “Like the AfCFTA Secretariat, AWTN is headquartered in Accra, which has been recognised as a beacon for transformative development in the sub-region. In this partnership, AWTN commits to initiate and escalate...