The conversation about Investing in Africa is shifting from one of deficits and gaps to one about Opportunities, Prospects, Trends, Innovation and creativity, to the Companies and industries who have paid close attention to how business in Africa operates. Despite the effects of Covid-19 Africa remains the ripe land of opportunities and as the conversation about Investing in Africa is shifting from one of deficits and gaps to one about Opportunities, Prospects, Trends, Innovation and creativity, in the Companies and industries who have paid close attention to how business in Africa operates. Africa continues to be the newest destination for emerging market investors and according to Eric Osiakwan, the managing partner at Chanzo Capital, half of the world’s fastest-growing economies have been in Africa, with Ghana and Ethiopia among the countries which showed a real GDP growth of 8 percent in 2018. Photo/Courtesy In an interview with this reporter at the Social House hotel in Lavington area of Nairobi, Eric Osiakwan a renowned tech investor and entrepreneur says that Investors seek out emerging markets for the prospect of high returns, as they often experience faster economic growth as measured by GDP. However, along with higher returns usually comes much greater risk. “Investors’ risk in emerging market economies can include political instability, domestic infrastructure problems, currency volatility and illiquid equity, as many large companies may still be state-owned or private.” Eric said Obviously there are a number of reasons why Africa presents an incredible investment opportunity, according to Eric; “Africa is perhaps the most exciting investment destination...

“Leveraging its strategic geographical location, modern legal and regulatory framework, good corporate governance, and compliance with international financial regulations and ease of setting up and doing business, KIFC has a strong value proposition which will facilitate strategic investments into Africa, and create a bridge between the continent and the rest of the world, particularly North America (US and Canada), Latin America, Europe, and Asia,….. It will fill the void in facilitating domiciliation and structuring of African focused investments.” African markets offer enormous trade and investment opportunities with high returns and strong growth potential. In the infrastructure space alone, the African Development Bank (AfDB) estimates that the minimum infrastructure needs to sustain economic growth, population, and income level of African countries, is between US$130 billion and US$170 billion per annum. With the ongoing implementation of the African Continental Free Trade Area (AfCTA), which has established a free trade area of 1.3 billion people across 55 countries with a total GDP valued at US$3.4 trillion, cross-border trade will be boosted and international investment opportunities will grow significantly. Other factors driving the investment opportunities available in African markets, include the demographic dividend, vast consumer base, and arable land. However, these growing investment opportunities are only being partially tapped, despite increasing interests from Western European countries, the USA, China, India, Japan, and Australia. There remains a perception amongst some international investors that the risks of African markets outweigh the potential benefits. The major factor dampening the appetite of potential international investors, including private equity...

Uganda has condemned the continued use of non-tariff barriers by her East African Community neighbors despite several petitions, saying it beats the purpose for which the community was created. Uganda has for long felt that her neighbors, mainly Kenya, Rwanda, and Tanzania keep backtracking when it comes to implementing the free trade treaties that govern the EAC bloc. Recently, sugar exports to Tanzania have been blocked and returned to Uganda, while Kenya has often blocked Uganda’s sugar, poultry, and dairy products. And in all instances, exporters say, there are no proper reasons given The Assistant Commissioner for Regional and Bilateral Division External Trade at the Ministry of Trade, Richard Okot Okello, says there must be renewed efforts to remove all barriers if intra-regional trade is to be revamped. He was speaking at an online regional symposium on the effects of Covid-19 on women’s economic empowerment in East Africa, organized by the Eastern African Sub-Regional Support Initiative, EASSI. Okot-Okello says regional countries have persistently put nationalist and protective measures above the regional mechanisms that were put in place to enhance regional integration. On her part, Dr Juliet Wakaisuka, a lecturer at Makerere University Business School, expressed worry that in all the support and economic recovery programs, the special plight of women is not being given special attention. She calls for affirmative action like helping women entrepreneurs formalize their business, and supporting them to adapt fully to the digital-based environment. The Commercial Attache at the Kenyan Embassy in Uganda Robert Okoth said...

Summary The Northern Corridor secretariat has a $4.4 million budget for the 2021/2022 financial year to implement and complete pending projects, as was approved by the Council of Ministers recently. In the revised Northern Corridor Transport and Transit Agreement, PPPs were touted as being key to the implementation of the $700 million RSS project. The Northern Corridor secretariat has a $4.4 million budget for the 2021/2022 financial year to implement and complete pending projects, as was approved by the Council of Ministers recently. The budget, passed at the 33rd meeting, was recommended by the executive committee as the Corridor reports inefficiencies and challenges in achieving its full potential in promoting intra-regional trade and integration. Some of the key programmes still pending include the establishment of the $700 million Road Side Stations (RSS), developing conformity testing laboratories to improve efficiency along the Corridor and implementation of uniform levies as agreed on in 2015 in Kinshasa. The RSS project seeks to put up 67 roadside stations of the 141 stations identified back in 2005 to serve as rest points for truck drivers in Kenya, Uganda, Rwanda, Burundi, South Sudan and the Democratic Republic of Congo. The Council of Ministers acknowledged the slow implementation of key Corridor projects forcing them to seek support from private sector through Public Private Partnerships (PPPs). In the revised Northern Corridor Transport and Transit Agreement, PPPs were touted as being key to the implementation of the $700 million RSS project. The chief executive of East Africa Shippers Council,...

Sector experts have expressed concerns that Africa is facing growing trade barriers from conflicting Covid-19 control measures. As such, there is need for the EAC Regional Coordination Committee (RCC) on Covid-19 to review and harmonize the East African Community (EAC) policies and measures to control the pandemic. In fact the, EAC Sectoral Council on Trade, Industry, Finance, and Investment (SCTIFI) is calling for harmonization of Covid-19 testing charges and the associated validity check of the tests. Member states f the EAC need mutual recognition of test certificates once issued otherwise, traders and transporters suffer a great deal during border crossing. Kenya, Tanzania agree on Covid-19 testing and cross-border movement - The East AfricanYou have frieghters coming from Tanzania entering Kenya only to have the latter or former country deny entry due to ‘in-validity’ of the Covid-19 test and certification. This does not only apply at Namanga or Hollili cross border points, for Tanzania and Kenya and Kenya and Uganda respectively, no it occurs across all border points for all EAC countries. It is a breathe of fresh air that SCTIFI has gone ahead and directed the Republic of South Sudan and the Republic of Uganda to operationalise the Nimule/Elegu One Stop Border Post (OSBP). The two countries are now required to place their country officials at the OSBP which at the moment they do not. The East African Community (EAC) is facing huge policy and regulation differences that affect efficiency of trade. For instance, despite having formed the ambitious EAC...

Corporate Council on Africa (CCA), the leading reputable U.S. business association with a strategic focus on connecting business interests between the United States and Africa, has held the 13th U.S.-Africa Business Summit. The U.S. government and private sector leaders together African political and corporate business leaders have been working consistently over these years to share insights on critical issues and policies influencing the U.S.-Africa economic partnership. The three-day Summit held virtually included 5 plenaries and 12 panel sessions highlighting key economic recovery strategies and focused on a range of sectors and issues, including health and vaccine access, trade, digital transformation, infrastructure, financing, small and medium scale enterprises, tourism, women's leadership and investment opportunities in various African countries. Here are some highlights: The high-level dialogue set the scene for reviewing the opportunities for United States and African public and private sector leaders, how to strengthen the economic partnership between the United States and Africa. Prosper Africa, investments in key sectors such as gas, exploration of possible new bilateral trade agreements, extension of the African Growth and Opportunity Act (AGOA). The Role of Women's Leadership in Driving an Inclusive Recovery: The United States will drive a pandemic recovery and put women at the forefront. It has contributed 25 million vaccines for Africa. It implies to make sure incorporating women's perspective in their efforts. "When women are empowered, they empower their families, they empower their communities and they empower their countries.” Thokozile Ruzvidzo, Director of the Gender, Poverty and Social Policy Division, United Nations Economic Commission...

What you need to know: The review as part of the ongoing activities to enable women build their economic resilience beyond the Covid-19 pandemic. Covid-19 has worsened inclusion of women in the labour market as economic dynamics have abruptly shifted to the disadvantage of women. The State Department for Gender is reviewing its economic empowerment policy to integrate the emerging needs of women amid a ruffled economic environment shrinking opportunities for women than men. Ministry of Public Service and Gender, senior policy advisor, Elizabeth Adongo, termed the review as part of the ongoing activities to enable women build their economic resilience beyond the Covid-19 pandemic. “A lot of money has been invested in empowerment of women like the Sh2 billion earmarked for the Biashara Kenya Fund,” she said last week during the Annual Women Rights Organisation Convention (2021) convened by Crawn Trust. Last month, Women Enterprise Fund (WEF) launched Thamini, a loan product tailored to meet the credit needs of the at least eight million widows in Kenya. This interest-free loan facility, she said, is crucial to helping the vulnerable women rebuild their lives and stabilise economically. Affirmative funds On accessing markets, she said African Continental Free Trade Area provides an opportunity for women to trade their products across the region. Last March during the launch of a survey of the top 100 brands loved by women in Kenya, Gender Chief Administrative Secretary Rachel Shebesh reckoned of the findings as important in informing design of women empowerment initiatives. The survey...

The African Continental Free Trade Area agreement officially began on January 1, 2021. What have you observed? The AfCFTA is outlined in the African Continental Free Trade Agreement, with trade commencing on January 1, 2021. AfCFTA is the largest in the world in terms of participating countries since the formation of the World Trade Organisation. The agreement was brokered by the African Union and was signed in Kigali, Rwanda, on March 21, 2018. AU member states have continued to show interest in this continental project and, to date, the agreement has been signed by 54 out of 55 member states. There has been a lot of progress since the agreement moved from conception to implementation of a trade area. The organisational structures and operational instruments have been put in place with the nomination of the chief executive officer and other principal officers and the formal opening of the headquarters in Accra, Ghana. The management of AfCFTA has swung into action, reaching out to regional and international partner organisations, as well as sensitising stakeholders about the objectives of the organisation. For example, the secretariat partnered with Future Investment Institute to launch an initiative that will eradicate illicitly traded products from AfCFTA countries, and the cooperation should help countries to reduce disruptive structures that deprive governments revenues through their operations in the informal economies. They are also introducing some initiatives such as the creation of the continental tool/mechanism for monitoring, reporting and elimination of non-tariff barriers to increase the volume of cross-border...

COVID-19 has exacerbated challenges to Africa’s food and agriculture sector and to its millions of smallholder farmers. At the same time, the pandemic has accelerated innovative efforts to develop and deploy the transformative power of digital technology to address these problems in ways that leapfrog past practices and traditional solutions. Emerging evidence from Asia and Africa suggests that digital technology holds promise to dramatically enhance smallholder productivity and incomes by increasing on-farm and off-farm efficiency, enhancing traceability, reducing vulnerability to counterfeit products, and improving farmers’ access to output, input, and financial markets. The change is driven by the introduction of new forms of intermediation and the collection, use, and analysis of massive amounts of agriculture data to disrupt existing business models. New strategic partnerships between the public and private sectors are an essential component for reaping the positive impacts of digital technology and avoiding unintended and unwelcome secondary effects. Digital technology as a transformational force to drive scale Digital technology is transforming the agricultural sector through the application of innovative tools and new business models. For the first time, many people in the value chain, including smallholder farmers, have access to real-time data and computational power making possible more effective selection and timing of product-to-market decisions, provision of credit, and access to micro-insurance. Digitized agriculture data is also creating network effects to drive scale. Coupled with the increasing embrace of the sharing economy, digitization and artificial intelligence make possible new business models and e-commerce platforms that connect farmers directly with markets, service providers, and...

It’s great for governments to do Trade Deals, but making the benefits flow to businesses in the real economy is what will determine if they are successful or not. The Institute of Export & International Trade has inked a partnership with multinational NGO, TradeMark Africa, aimed at doing just that by using digital technology, including distributed ledger or blockchain, to connect buyers and suppliers in Kenya and the UK. The Trade Logistics Information Pipeline, or TLIP, will enable all companies and government agencies in the supply chain to upload and access data simultaneously cutting out wasteful repetition. In supply chains like those for perishable food, think of green beans on the supermarket shelves, that will cut time to market but most importantly it will also cut cost. TLIP is the first example of this kind of initiative between the UK and a developing nation since the UK regained full control of its trade policy at the start of 2021. It builds on the Economic Partnership Agreement, a trade deal, the UK signed with Kenya in March of this year and is a sign of things to come. But it isn’t trade diplomacy that will decide if it succeeds or fails, that will be down to the extend that it is adopted by business, it has to be responsive to business needs and deliver meaningful, measurable improvement. Digital technology is an ever more important piece of the trade picture. We at the IOE&IT welcome the emphasis that the UK has put...