Way back in History, Africa was not mentioned by authors writing about the global economy. It was as if Africa didn’t exist... Or it ‘existed’ only when media organs were writing about civil wars, famines, severe malnutrition and migration – mostly illegal migration! It was a continent of no hope; a continent of woes. However, all that has drastically changed in the last few years – and, in this article, I explore six areas of greatest opportunities in Africa. Today, there are about 400 companies that earn annual revenues of $1 billion or more in Africa – and, on average, they are both fast-growing and more profitable than their global peers. Africa has become an important test lab for global innovation. If you can build a product, a service or a business model that’s cost-effective and robust enough to succeed in Africa, chances are that it will be competitive anywhere else in the world. Admittedly, there are huge challenges to doing business in Africa. But, these same challenges also provide opportunities for value-creation. In all those opportunities the golden thread running through them is technology. More than perhaps any other continent, Africa is piloting digitally-enabled breakthroughs that aid companies in surmounting entrenched barriers and unlocking exponential progress. 1. Millions in Africa lack access to savings and credit facilities. To serve the excluded households and businesses – and to do so in a profitable, sustainable way – banks and other financial institutions must use efficient but easily operable technology-based solutions; and...

The sliver of land that follows the Gambia River into the Atlantic Ocean and cuts through the heart of Senegal was an unlikely setting for one of the most important steps in Africa’s free-trade revolution. Gambia, the smallest country in mainland Africa with a population less than Greater Manchester, became the crucial 22nd country to ratify the African Continental Free Trade Agreement earlier this month, helping the deal reach the minimum threshold for the area to be implemented. In a world where protectionism and tariffs are being used as economic weapons by the US, EU and China, Africa is making decisive steps to liberalise trade and open up its markets. The ambitious plan aims to double intra-Africa. Source: The Telegraph

The manufacturing sector will hold the key to future growth in East Africa, the African Development Bank’s Lead Economist for the Bank’s East Africa Regional Office has said. Dr Marcellin Ndong-Ntah said the manufacturing sector’s potential to accelerate regional economic growth, generate more job creation, and ultimately reduce poverty was significant. “In order to achieve this objective, countries must continue to look for alternative sectors of economic growth, emphasize regional trade and continue to process goods for export rather than selling raw commodities,” Ndong-Ntah said. Mr. Gabriel Negatu, Director General of the Bank’s East Africa Regional Development and Business Delivery Office East Africa Regional Office, said robust economic growth was possible in countries taking steps to move their economies away from reliance on the export of raw commodities like tea, coffee, minerals and oil. Economic growth across East Africa will remain robust at 5.9 percent in 2019, higher than the continental average annual growth rate of 4 per cent and making it a promising investment and manufacturing destination, according to the 2019 East African Economic Outlook Report The report puts Ethiopia in the lead as the fastest growing economy in the region with an average annual growth rate of 8.2 per cent followed by Rwanda next at 7.8 per cent; Others are Tanzania at 6.6 per cent; Kenya 6 per cent, Djibouti 5.9 per cent and Uganda 5.3 per cent. Overall, most of the economies in East Africa are expected to continue on higher growth trajectories, with an expected average...

  Excitement was palpable throughout the region as the dream for a continental free trade area in Africa got the final ratification needed to become a reality this month. Gambia became the 22nd African country to ratify the African Continental Free Trade Area agreement (AfCFTA), meaning the bill now has the minimum number of ratifications needed to come into effect. On March 21 Ethiopia became one of the last African nations to ratify the AfCFTA, bringing the tally of endorsing countries to 21. The trade bloc spanning 49 countries with a combined GDP of $3trillion, will facilitate inter-regional trade, boost growth and help to alleviate poverty, its supporters say. The news was tweeted by the African Union Commissioner for Trade and Industry Albert Muchanga: “Good news! The Parliament of The Gambia has approved ratification of AfCFTA Agreement making us meet the minimum threshold,” he said. “The AfCFTA market is being born and is one step ready for launch of its operational phase in July this year. The agreement, signed by 49 of the 55 African Union nations in March last year, will dodge a patchwork of trade regulations and tariffs that make intra-African commerce costly, time-consuming and cumbersome. Its promotion of tariff-free movement of goods, people and services across the continent is also expected to favour SME’s, who account for 80% of Africa’s employment and 50% of its GDP, according to the World Bank. But skeptics have pointed to the impending challenges of uniting countries with the greatest level of...

From the near pinnacle of a customs union, the old East African Community (EAC) came crashing down in 1977. Why? Political differences between the erstwhile leaders and perceptions around unfair distribution of the benefits and costs of regional integration halted the momentum. Through rebirth and enlargement, though, the new EAC has again risen to great heights as one of the most successful integration schemes on the African continent. Then again, recent headlines like “Uganda, Rwanda feud restricts free movement” and “Uganda and Rwanda trade accusations over border crossing dispute” are stark reminders of some of the difficulties that precipitated the demise of that previous integration experiment. The unfolding situation in East Africa is of global relevance as we can see many familiar dynamics at play in the context of debates on trade and integration globally. Take, for instance, in the European Union (EU), where tensions have been heightened over recent years. Is free trade and integration only beneficial to the already successful economies but harmful to the countries in the periphery? What about Brexit, which has raised a bucket-load of questions regarding national identity, political legitimacy of institutions outside of national borders, and “local” trade versus global trade? Or how about current U.S. tariff policy and the attendant debate about the concepts of “free” trade versus “fair” or “beneficial” trade? A brief history of the East African Community As far back as 1917, Kenya and Uganda formed an East African customs union that entailed free intra-area trade and a common external tariff. Tanganyika...

Rehabiltation works at Gatuna One Stop Border Post (OSBP) are in final stages, Rwanda’s Foreign Affairs Minister Dr. Richard Sezibera said on Friday. “Visited Gatuna One Stop Border Post. Work almost complete on Rwanda side,” Minister Sezibera tweeted. He, however, expressed wish that similar development happen on the Ugandan side. The border post connect Rwanda and Uganda. “Look forward to speedy completion on the Uganda side so the One Stop Border Post can become operational within timelines agreed at the Nothern Corridor summit,” Minister Sezibera added. In March this year, Uganda accused Rwanda of closing its border – claiming it has affected heavy trucks from crossing into Rwanda. But government in Kigali continuously explained the issue was renovation at Gatuna border that currently operates at only 30 percent. In the process, Rwanda issued a statement announcing other alternative routes as construction works in Gatuna are being finalized. All trucks were diverted to Kagitumba and Mirama hills border. Source: KT Press

Rwandans living in the Gatuna border town can now cross over to Uganda without much restrictions, for the first time in two months, as tensions between the two neighbours begin to ease. However, Rwandans from other border points are still barred from crossing, seven weeks after Rwanda issued a warning against travelling to Uganda. Rwanda stopped its citizens from crossing into Uganda, accusing Kampala of illegally arresting, torturing and deporting its citizens. Uganda on the other hand, is accusing Rwanda of spying on its territory and infiltrating its security agencies. The two countries further accused each other of economic sabotage. But as both countries seek to end the impasse behind closed doors, signs have emerged that tensions are easing, particularly for individuals living around Gatuna border. Cleared cargo stranded at Gatuna as Uganda pleads with Kigali "We are allowed to cross to Uganda, but for only a few hours, into buy what we need and return in the evening. In order to sustain this, we have to respect this arrangement, otherwise they can stop it," Simon Aharisimi, a Rwandan who lives in Gatuna told The EastAfrican. Border authorities told this paper this arrangement has been ongoing for about two weeks. "Those we allow to cross into Uganda are locals who reside in nearby areas; some of them we know by sight. Those coming from other parts of Rwanda are not allowed to cross. We will wait for authorities to direct us on the way forward," an immigration official told The...

Members of Parliament from eastern African countriesare on 15th April, 2019 expected to launch the Eastern Africa Parliamentary Alliance for Food Security and Nutrition (EAPA FSN) – a sub-regional platform aimed at promoting the right to food in eastern Africa through improved legislation. According to a statement issued on 14th April, 2019 by the Food and Agriculture (FAO) of the United Nations, the launch is in line with the first annual meeting in Tanzania in 2019. The platform came after realizing that malnutrition continues to be a major impediment to economic development, whereby it is estimated that 58 million children under the age of five years are too short for their age (stunted) in Africa. `Childhood malnutrition is costing the African economy about 11 per cent of Gross Domestic Product (GDP) every year, whereas preventing malnutrition delivers $16 in returns on investment for every $1 spent in Africa,` the statement read in part. It further said that parliamentarians play a critical role in alleviating hunger and malnutrition. `In fact, MPs enact laws and regulations, monitor law enforcement, influence national development plans, determine the design and allocation of national budgets, and hold their governments accountable for policy implementation related to food security and nutrition.` After a number of consultative meetings, MPs from eastern African countries, acknowledging the insufficient progress in food and nutrition situation, committed to establish a sub-regional platform that will promote cross border sharing of experience and best practices. It was also agreed to create the Eastern Africa Parliamentary Alliance for Food Security and Nutrition...

The African Export-Import Bank (Afreximbank) is working, with the support of African Union (AU), to create a digital ecosystem that will eliminate the major bottlenecks to trade finance flows within Africa, Bank President Prof. Benedict Oramah has announced in Washington D.C. Delivering an address on April 11 at the IGD Frontier 100 Forum organized by the Initiative for Global Development (IGD) on the sidelines of the World Bank/IMF Spring Meetings, Prof. Oramah said that one of the major constraints to intra-African trade was lack of information to support intra-regional trade and investments. That was why many African countries were importing products from outside the continent while neighboring countries were exporting the same products at a much lower cost. It was to address that challenge that Afreximbank and the AU were working to use digital technology to improve access to trade information and facilitate the use of African national currencies via intra African trade settlements, he explained. Prof. Oramah said that Afreximbank was developing a focused programme to support small and medium enterprises (SMEs) across the continent, recognizing that SMEs were a vital component to unlocking intra-African potential. In his opening remarks Prof. Oramah had noted that IGD has been facilitating discourse on important African issues over the years and said that Afreximbank identified with the efforts and achievements of the IGD, hence its close partnership with the initiative. Also speaking, Leila Ndiaye, President and CEO of IGD, said that the initiative’s work was aimed at supporting Africa’s growth and development...

Rwanda’s Rusumo border post – which sees about 95% of the country’s imports passing through from Tanzania’s Dar es Salaam port – is set for a revamp of operations as the government explores infrastructure upgrades and a deployment of additional personnel. Touring the facility over the weekend, governor for the Eastern Province, Fred Mufurukye, highlighted some of the challenges at the border post, including the slow flow of trucks caused by staff shortages and lack of adequate infrastructure. With the Gatuna border post under construction, Rusumo is now Rwanda's busiest border with official statistics recording around 270 heavy-duty trucks passing through Rusumo border every day. "Some of the challenges that were raised here include the slow pace of trucks that are cleared, and lack of enough staff from different institutions that work here," said Mufurukye. He added that the acquisition of scanners to verify goods in containers, without the need to unpack the goods, was one of the first measures the government would implement. Source: ftw online