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...

What you need to know: When Covid-19 hit in March last year, Elegu was the epicentre of the virus and at least 10 truck drivers would be reported to have tested positive for Covid-19. Long-distance truck drivers travelling to and from South Sudan will be subjected to Covid-19 jabs at Elegu border in Amuru District. Mr Ndungu Omongo, the executive director of Uganda Professional Drivers Network, told Daily Monitor at the weekend that the move is aimed at containing the spread of the Covid-19 pandemic. “We want all long route truck drivers to get vaccinated because they are vulnerable to contracting Covid-19 as they ply different routes from one border to another,” Mr Omongo said. Mr Omongo also said they are working with the Health ministry to sensitise truck drivers. Recently, the leadership of truck drivers launched a 15-day campaign to sensitise its members on vaccinations. The initiative brings together other bodies such as the National Logistics Platform under the Private Sector Foundation, Trademark East Africa, Regional Lorry Drivers, and Transporters Association, among others. More than 600 trucks cross from Uganda to South Sudan through Elegu daily. Mr Bryon Kinene, the chairman of National Logistic Platform, said the truck drivers operate in a risky environment. “Today, when you cross to South Sudan, everything is normal and no SOPs are being implemented, this is a serious problem for us who move across countries and we saw how truck drivers were the source of the virus in the first wave,” Mr Kinene...

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...

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 Food and Agriculture Organization of the United Nations (FAO) Regional Office for Africa has launched a new brief that advocates for seizing the opportunities of the African Continental Free Trade Area (AfCFTA) for the economic empowerment of women in agriculture. The publication is launched today to coincide with the International Day for Rural Women which is celebrated every year on 15 October to honour women and girls living in rural areas. The AfCFTA holds the potential to contribute significantly to eliminating poverty, creating jobs, and improving food security. However, the new publication Seizing the opportunities of the African Continental Free Trade Area for the economic empowerment of women in agriculture warns that the AfCFTA could exacerbate existing gender disparities and discrimination and worsen the condition of women engaged in trade and agriculture if women’s inclusion is not prioritized. The AfCFTA will change existing trading practices and formalize markets which could preclude women’s access and further relegate them to informal and less lucrative value chains. “Women must not be left behind,” said FAO Senior Gender Officer Clara Park. “It is of pivotal importance that we create ecosystems of support that enable women to access opportunities created through the AfCFTA and reinvigorate our efforts to address existing gender inequalities in access to and control over land, services, technology, markets and knowledge. We need to bring women and their organizations to the decision making table,” she said. Women’s key role in Africa’s food production and trade Around 85 percent of economic activity in Africa...

The impact of the pandemic on global supply chains has prompted governments around the world to look at ways to fix the broken links. In Africa, the launch of African Continental Free Trade Area (AfCFTA), has provided the continent with new opportunities to strengthen its regional supply chain. Virusha Subban, Head of Indirect Tax at Baker McKenzie in South Africa, explains that there were massive breakages in key links in global supply chains during and after the pandemic, with issues including, among many other things, route congestion and blockages, manufacturing shutdowns, a deficit of skilled labour, a global shortage of key logistics components including shipping containers, a lack of space in warehouses, a spike in transportation costs and substantially increased demand for goods around the world, post-lockdown. As a result, countries have been looking at ways to relink broken chains. In February 2021, President Biden addressed this issue by signing an Executive Order on America’s supply chains. He ordered federal agencies to review and identify vulnerabilities in key US supply chains and develop policies to ensure those supply chains would be more resilient to future shocks. Similarly, the European Union Policy Department for External Relations issued a report on Post Covid-19 value chains: options for reshoring production back to Europe in a globalised economy. The report noted that, against the background of both supply shortages due to the pandemic, and the shift in global trading patterns, reshoring of production, the process of bringing production activities home, had become a topical...