In Summary It will KRA an opportunity to facilitate legitimate trade and collect the correct revenue, it says. This comes with the construction of a major road (Isiolo-Mandera) connecting the horn of Africa countries of Kenya, Somalia and to Ethiopia. Kenya Revenue Authority plans to establish posts at Rhamu and Mandera on the Ethiopia and Somali borders respectively. It will also put up a trade facilitation centre at Suftu,(Kenya-Ethiopia) and  construct two bridges to facilitate movement of goods and persons across the borders. The establishment of the One Stop Border Posts, supported by TradeMark Africa, is expected not only to spur growth in import and export trade but also provide an opportunity for legitimate trade and revenue collection. Commissioner for Customs and Border Control Lilian Nyawanda said KRA seeks to facilitate faster movement of goods and persons at the Kenya-Ethiopia border, and facilitate cross-border trade between Kenya and Somalia (upon opening of the borders). “Kenya, Ethiopia and Somalia have long and porous common borders, with many potential locations for developing border posts to facilitate cross-border trade,” Nyawanda said in a statement on Tuesday. This comes with the construction of a major road connecting the Horn of Africa countries. The Horn of Africa Gateway Development Project (HoAGDP) road connects Kenya to Somalia and Ethiopia. The Isiolo-Mandera regional road corridor – the primary project area - traverses the North Eastern counties of Isiolo, Meru, Wajir, Mandera and Garissa. Last year, World Bank approved an Sh81 billion loan to upgrade half of the 750-kilometer Isiolo-Mandera...

Dar es Salaam. Members of the business community yesterday warned that the benefits of the African Continental Free Trade Area (AfCFTA) will not materialise unless some pending trade barriers were addressed. The impediments to trade include lack of harmonisation of standards, failure to sign the implementation of the Single African Air Transport Market (Saatm) and the export of raw commodities. The list also includes visa and work permit requirements, multiple testing agencies, unnecessary roadblocks and random checks along transport corridors/roads and high cost of cross-border trade that may represent barriers to Micro, Small and Medium Enterprises (MSMEs). The East African Business Council (EABC) trade and policy advisor, Mr Adrian Njau, said for AfCFTA to be successful, countries must address more non-tariff barriers and build regional value chains. “Only 13.6 percent of the product standards have been harmonised. This is a potential source of NTBs for cross-border trade in the continent,” he stated at the private sector’s meeting. The AfCFTA - whose trading started officially on January 1 this year - aims to bring continent-wide free trade to 1.3 billion people in a $3.4 trillion economic bloc that is Africa. Mr Njau said to create an internal market for African products, African markets must begin to manufacture value-added goods and deepen their regional value chains. The Tanzania Private Sector Foundation (TPSF) executive director Francis Nanai said the AfCFTA objectives will remain elusive if local businesses were unable to take full advantage of the opportunities in terms of trade and investment. As it...

To set Africa firmly on the path towards economic and social transformation, private sector engagement is crucial. The African Union, has throughout the years worked closely with the private sector to define the great contribution and significant role the private sector plays in driving the economic development Agenda of the continent. The private sector in Africa accounts for over 80 per cent of total production, two thirds of total investment, and three fourths of lending within the economy. The sector also provides jobs for about 90 per cent of the employed working-age population. Further, Small Medium Enterprise (SMEs) are the backbone of the African private sector accounting for over 90% of businesses in Africa and translating to 63% of employment in low-income countries while contributing to over 50% of the Gross Domestic Product (GDP) according to the UN Economic Commission for Africa. Although trends in intra-African trade point toward progress, trade within Africa remains very low in proportion to total global trade, highlighting the need for enhanced intra-African trade. The tides however look promising with the launch of trading under the African Continental Free Trade Area (AFCFTA). The AFCFTA is expected to increase intra-African Trade by over 50 per cent, and will boost the continent’s GDP by more than $40 billion, and its exports by more than $55 billion. To promote private sector engagement, the African Union has implemented programmes that seek to form strategic partnerships with the private sector through Public-Private Partnership (PPP) engagements, including developing strategic partnerships with...

Rand Merchant Bank (RMB) recently released its list of top sectors to invest in Africa. This targets investors eyeing real assets or looking to expand businesses that rely on physical infrastructure. This year’s approach included tenets of the operating environment, fiscal scores and development plans, all of which are key to attracting investments amid Covid-19. Egypt While Egypt’s economy was hard hit by the pandemic, it was also one of the first to bounce back towards growth. The country has made itself a beacon for overseas investors, compelled by favourable incentives and a large and dynamic domestic market. Investors have been attracted to Egypt’s intoxicating mix of rapid gross domestic product (GDP) growth, a strategic geographical position, a skilled labor force and, crucially, a large domestic market. Morocco The economy of Morocco continues to benefit from political stability. A special fund to combat Covid-19 was established in 2020, representing 2.7 per cent of GDP. Two-thirds of the funds were to be provided by private sources and one third by the government. Morocco’s attractiveness as the continent’s fifth-largest business market. Morocco’s rapid technological growth has also been encouraged by various government initiatives including the country’s location which also provides an opportunity for many western countries to utilize it as an opportunity to gain an investment foothold in the rest of Africa. South Africa The country offers a strong manufacturing and retail base that continues to support southern African regional economies with goods and services. South Africa has a world-class business infrastructure,...

The consequences of Covid-19 will be felt for years to come, but it is clear already that multinational companies and investors are turning their attention back to the world’s youngest continent – and with good reason. Speaking at EY’s Africa Tax Summit 2021 which was held last week, Larry Eyinla, EY Africa Tax Leader, said: “Investors have for years followed Africa’s notable and durable demographic trends. And now as Covid is hopefully receding they are once again focusing on Africa’s distinctive appeal which has been brought into stark relief by the pandemic. “In the coming decades Africa will be the world’s only source of a growing labour forces and consumer bases. It is the world’s youngest continent, and stands out in a world of ageing and shrinking populations.” He added the big question for Africa post COVID is where it lands in the global reset. “There’s an opportunity for us to get the right policies in place and capitalise like never before. The pandemic, and governments’ response to it, certainly paused the world’s interest in Africa but now the attention is back on the continent because of the opportunities it offers. There have been many false starts for Africa; now is the time to catch the wave of renewed investor interest.” He noted that multinationals are increasingly planning for this, He cited increased investments in start-ups in the fintech sector across the continent, and recent commitments by large tech companies including Microsoft, Google and Oracle, to invest in tech infrastructure...

The Africa Investment Forum held a roundtable event to preview two agribusiness deals worth nearly $400 million as part of the lead-in to its upcoming 2021 Market Days. The investment opportunities, drawn from the Africa Investment Forum’s pipeline, will be presented in full during the Market Days, to be held from December 1-3 in Abidjan. The virtual roundtable, organized by the Atlantic Council, took place on Thursday 7 October, 2021. During the roundtable, members of the AIF team presented an outline of the deals to investors. The first one, which requires $345 million in capital, entails construction and operation of a food market that will serve about 15 million people in an area projected to be Africa’s largest food exchange zone. It would also serve as a marketplace where farmers bring in produce to sell to potential customers at retail or wholesale prices. As well as farmers, the food market will provide livelihood opportunities for fishers, meat and dairy producers and wholesalers. The second showcased deal involves the scaling up of a dairy milk production and packaging company in a Southern African Development Community country. The project sponsors have a good operational record in the agriculture sector, and they have secured an off-take agreement with a major international food and beverage company for the milk production. The deal, valued at $50.2 million, has strategic value for the national government, and provides an opportunity for local production of a commodity that is typically imported. There is also potential for job creation...

Kenya has often been referred to as the ‘gateway to East Africa’ because of the strategic importance of Mombasa, which has one of the busiest ports on the East African coastline, and the central political-economic roles she plays in the region. The government has been pushing for rapid economic growth through social, structural and economic reforms under the Big Four agenda, which focuses on food security, affordable housing, universal health care, and manufacturing. This is all aimed at turning Kenya into a middle-income country by 2030. We are now in the last decade of Vision 2030 timeline, with numerous goals left to hit. The onset of the Covid-19 pandemic, and its eventual circumvention of the globe by mid-last year seriously curtailed economic growth worldwide. Kenya was no exception. Since then, however, concerted efforts are being put towards building back better and weaving resilience into world economies. The depth and breadth of interference the pandemic has had on global economies highlights just how vulnerable we are to shocks. Across sub-Saharan Africa, the combined shocks of Covid-19, conflicts and climate change have denied more than 190 million Africans access to the most basic of needs – food. This year’s Africa Green Revolution Forum, which was held in Nairobi, brought stakeholders from all over Africa together to discuss how agriculture and agri-food systems can be transformed to improve food security and reduce poverty across the continent. The African Continental Free Trade Area was singled out as an opportunity to increase intra-African trade and...

Summary Once ratified, AfCFTA will expand business prospects for women-led businesses by integrating informal SMEs into the continental markets, breaking the barriers they constantly encounter as they try to penetrate more advanced regional and overseas markets. CBC-CIPE Women’s Empowerment Conference: Afcfta - An opportunity for women-run SMEs in Africa to competitively trade  Towards the successful implementation of the AfCFTA Agreement for inclusive and sustainable development across Africa. Expected outcomes of the full implementation of AfCFTA: Raise intra-Africa trade from 15 percent or $50 billion in 2017 to 25 percent or $70 billion by 2040 - United Nations Economic Commission of Africa (UNECA). Lift 30 million Africans out of extreme poverty and boost the incomes of nearly 68 million others who live on less than $5.50 a day – World Bank. Boost Africa’s income by $450 billion by 2035 (a gain of 7 percent) while adding $6 billion to the income of the rest of the world – World Bank. Whilst women comprise the vast majority of informal cross-border traders in Africa, they are disproportionately affected by non-tariff barriers (NTBs), including corruption, harassment, misinformation about customs procedures and regulations and confiscation of goods. The African Continental Free Trade Area (AfCFTA) presents one of the greatest opportunities for bolstering inclusive growth and sustainable development on the African continent. Under the Agreement, the African Union Member States explicitly seek to achieve gender equality and enhance the export capacity of women and youth. The AfCFTA holds a huge growth potential for businesses, within and outside...

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...

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...