Ian Lessem, Managing Partner at HAVAÍC, investors in early-stage, high-growth technology businesses, notes a significant increase in investment demand for African technology startups. Startups on the continent are at a distinct advantage because they compete out of necessity. As a result, they can, and very often do stand toe to toe with startups in more the established tech hubs of Palo Alto, Singapore, London and Tel Aviv. African innovators face local challenges so pervasive; they simply have no choice but to tackle them head on and become subject matter experts in finding solutions for real world problems like food security, health, education, safety, financial services and logistics. African technology driven solutions borne out of necessity create efficiencies, new products and opportunities, and most importantly solve local challenges that resonate globally. Because of this they have the inherent ability to leap across national boundaries and sidestep the usual rules of cultural friction. With the world having quickly adjusted to the realities of the ongoing global social and economic crisis as a result of the Covid-19 pandemic, solutions that solve real world challenges are without a doubt the best opportunities for growth. People and businesses are craving solutions that make their day to day lives easier, better and less frictional, and the pace at which they are adopting technology to do this continues to accelerate. Not only does HAVAÍC support promising startups, it also understands the power of unlocking the potential of Venture Capital (VC) as an investment class in Africa. Investing...

With all the challenges that the Covid-19 pandemic has presented to Africa, there are many exciting changes afoot, and few are potentially more impactful than the African Continental Free Trade Agreement (AfCFTA). The AfCFTA is an exciting game changer agreement for the countries who are signatories. Currently, Africa accounts for just 2% of global trade. And only 17% of African exports are intra-continental, compared with 59% in Asia and 68% in Europe. The pact is designed to create the largest free trade area in the world measured by the number of countries participating. Connecting 1.3 billion people across 55 countries with a combined gross domestic product (GDP) valued at $3.4trn. It will boost regional income by 7% or $450bn, and lift 30 million people out of extreme poverty by 2035. Wages for both skilled and unskilled workers will also be boosted by 10.3% for unskilled workers, and 9.8% for skilled workers. While the Covid-19 pandemic has thrown a harsh spotlight on the vulnerabilities of global supply chains, the putting in place of the AfCFTA agreement couldn’t be more timely for Africa. AfCFTA is a catalyst for new ways of doing business, producing, working and trading within Africa and with the rest of the world. It highlights the significant and increasing commitment of the African Union to reducing poverty through trade. As Ngozi Okonjo-Iweala, newly appointed as the WTO director general, recently stated, “Trade is a force for good, and properly harnessed can help lift millions out of poverty and bring...

THE implementation of the Hargeisa Bypass project, which was officially launched recently by President Muse Bihi in the presence of Kate Foster, the British Ambassador to the Federal Republic of Somalia is more than 25 percent complete. The project, funded by the UK’s Foreign Commonwealth Development Office (FCDO), and implemented by the government of Somaliland through the Ministry of Transport and Roads Development with the support of Trademark East Africa (TMA), involves the upgrade of the 22.5 kilometres Hargeisa By-pass into a 2-lane single carriageway. The project team includes COCC-GCI JV, Kagga & Partners, and ITEC Engineering Ltd who are undertaking the project’s civil works, overseeing the project’s design & supervision, and carrying out the project’s technical audit respectively. TMA infrastructure technical team in partnership with the GoSL also appointed a Project Implementation Unit (PIU) to provide oversight on the project. Upon completion, the project is mainly expected to decongest Hargeisa city, the Somaliland capital, and partly reduce the time and cost of transporting goods between Berbera Port and the landlocked Republic of Ethiopia via the new road from the port city to Tog Wajaale border. The latter is in support of the Berbera Corridor project which stands to enhance the trade and transit capacity and provide Ethiopia’s expanding trade volumes with an alternative sea route, reducing over-reliance on the Djibouti route which is currently used for 95 percent of the East African country’s exports. During the construction phase of the Hargeisa By-pass, particular attention is being paid to climate-proofing...

Djibouti's President Ismail Omar Guelleh is seen at the opening of the 33rd Ordinary Session of the Assembly of the Heads of State and the Government of the African Union (AU) in Addis Ababa, Ethiopia, February 9, 2020. (Photo: Agencies) Ismail Omar Guelleh on Saturday was inaugurated as Djibouti's president to serve another five-year term. Guelleh garnered 97 percent of the vote in last month's election to secure a fifth term in office. Several African heads of state attended the ceremony, including Kenya's Uhuru Kenyatta, Ethiopian Prime Minister Abiy Ahmed Ali, Somali Prime Minister Mohamed Roble and South Sudan Vice-President Rebecca Nyandeng Garang De Mabior. The swearing-in was held at the Presidential Palace in Djibouti. In his inauguration address, Guelleh called on African nations to unite and embrace integration to achieve the continent's development aspirations. "Africa will be powerful if it is united. It will be rich if we are together, if our countries cooperate and complement each other in pursuit of our common vision of strong and efficient states," Guelleh said. He reiterated Djibouti's commitment to the various continental multilateral initiatives aimed at building a resilient African economy, among them the African Continental Free Trade Area. "We must work together relentlessly to safeguard this peace and stability. We must nurture our commitment to developing a continent of peace and stability," he added. Guelleh also called for a speedy resolution of the conflicts affecting parts of Africa, saying peace and stability are a pre-requisite for the continent's sustainable economic and...

“Without doubt, AfCFTA could be considered as the game changer for the post COVID-19 economic recovery and transformation of Ghana, if we as a country can harness the numerous benefits of the agreement,” the minister said. To harness the benefits of AfCFTA, he said the government complemented the ongoing industrial transformation agenda by launching the National Export Development Strategy in 2020 to increase non-traditional export revenue to $25.3 billion by 2027. Inauguration Mr Kyerematen was speaking at the inauguration of 36 council members of the Ghana National Chamber of Commerce and Industry (GNCCI), in a speech read on his behalf by the Technical Advisor to the Minister, Mr Anthony Nyame-Baafi, on Wednesday, April 28 in Accra. The council members are expected to provide the needed support and guidance through their technical expertise and wealth of social capital to promote activities of the chamber. Private sector’s role The minister called on the private sector to spearhead the economic transformation of the country by taking full advantage of the African single continental market. He said the initiative would boost Ghanaian exports, stimulate investments and innovation, foster structural transformation, improve food security, enhance economic growth, and export diversification, and provide fresh impetus and dynamism to the economic integration of Ghana into the African market. “There are many benefits that Ghana will derive from effective implementation of the AfCFTA, including better harmonisation and coordination of trade between Ghana and other African countries,” he added. He said the government had developed a National AfCFTA Policy...

PRESS RELEASE In her first visit to Somaliland since her appointment in February, Ms. Foster joined President Muse Bihi in launching the main construction phase of the 22.5 km Hargeisa bypass. The UK-supported bypass will reduce the time and cost of transporting goods between Berbera Port and landlocked Ethiopia by addressing a strategic chokepoint on the Berbera corridor. In the construction phase, particular attention will be paid to climate proofing, ensuring the road is built to last. Protection of local heritage is also a key consideration, recognising the road’s proximity to the iconic Nasa Hablood hills – the symbol of Hargeisa city. The corridor is already facilitating the delivery of much-needed humanitarian assistance to vulnerable communities in the wider region. The World Food Programme uses Berbera to bring 65% of its food aid into Ethiopia. With Ethiopia’s trade volumes projected to continue expanding, Berbera also represents an alternative for increasing trade and prosperity in the Horn of Africa. The continued development of the Berbera corridor will ensure that ordinary people from across Somaliland will benefit from inclusive economic development. Future UK support will focus on more efficient cross border trade between Somaliland and Ethiopia including through the use of one-stop border posts, cargo tracking systems and efficient regulation at the border. At the launch event, Somaliland President, Muse Bihi, said: I would like to thank the UK and partners for their role in investing in Somaliland’s infrastructure to boost the economy, which will help in service delivery as well as...

Ambassador Kate Foster, in her first visit to Somaliland, launches construction of the Hargeisa bypass The British Ambassador, Kate Foster, visited Hargeisa this week to reaffirm the strength of the UK's partnership with Somaliland including in the trade and development sector. In her first visit to Somaliland since her appointment in February, Ms. Foster joined President Muse Bihi in launching the main construction phase of the 22.5 km Hargeisa bypass. The UK-supported bypass will reduce the time and cost of transporting goods between Berbera Port and landlocked Ethiopia by addressing a strategic chokepoint on the Berbera corridor. In the construction phase, particular attention will be paid to climate proofing, ensuring the road is built to last. Protection of local heritage is also a key consideration, recognising the road's proximity to the iconic Nasa Hablood hills – the symbol of Hargeisa city. The corridor is already facilitating the delivery of much-needed humanitarian assistance to vulnerable communities in the wider region. The World Food Programme uses Berbera to bring 65% of its food aid into Ethiopia. With Ethiopia's trade volumes projected to continue expanding, Berbera also represents an alternative for increasing trade and prosperity in the Horn of Africa. The continued development of the Berbera corridor will ensure that ordinary people from across Somaliland will benefit from inclusive economic development. Future UK support will focus on more efficient cross border trade between Somaliland and Ethiopia including through the use of one-stop border posts, cargo tracking systems and efficient regulation at the border....

AfCFTA As countries rebuild their economies following the impact of COVID-19, Africa needs to step up productive and infrastructural integration, stakeholders at a regional presentation of the African Regional Integration Index (ARII) have said. The index, a joint publication of the Economic Commission for Africa, the African Development Bank and the African Union Commission, provides up-to-date data on the status of regional integration in Africa and assesses the level of integration for every regional economic community and its member countries. The Index report underlines the need for a renewed commitment to regional integration within Africa, speakers said. They noted that the beginning of trade under the African Continental Free Trade Area in January 2021, amid the Covid-19 pandemic and its disruptive impact on movement and economies, had thrown this into a sharper focus. Director of Trade at the East African Community Secretariat, Rashid Kibowa, said the Index report has great potential to address the three major challenges currently facing the continent: the Covid-19 pandemic, implementation of the AfCFTA, and poverty reduction. “There is a need for more dialogue on the ARII and methodology issues to expand the scope of coverage of the assessed integration areas. The fundamental issues behind the ARII ought to be whether integration exists for Africa and whether it is effective in terms of achieving poverty reduction and socio-economic transformation for the continent,” said Kibowa. The report, released in May of last year, found that overall scores for countries in Southern and Eastern Africa show huge room...

Tourism is among the industries that have been hit hardest by the COVID-19 crisis. Over a year since the onset of the pandemic, the numbers are staggering: Tourism destinations recorded one billion fewer international arrivals in 2020 than in 2019. A deep decline in international travel led to a loss of about USD 1.3 trillion in export revenues, more than 11 times the loss during the last economic crisis in 2009. 100 to 120 million tourism jobs were put at risk, a large portion in small and medium-sized enterprises. This is a grave concern for developing economies as they chart a course towards recovery. Driven by both public and private sectors, not only is tourism a vital source of foreign currency, it has the potential to serve as a development 'tool' to strengthen supply chains, improve local firm productivity, creates one out of ten jobs and provide income for women and young people. As a former minister for tourism myself, I have seen up close, the value tourism creates for local communities and how sustainable tourism creates economic value while preserving culture and natural assets. At a recent panel on tourism resilience and building forward better, during the WTO's Aid for Trade Stocktaking event last month, we discussed the future of tourism given the current challenges. Industry leaders from Costa Rica, Jordan, Kenya and Sri Lanka shared experiences from their own countries in responding and learning from crises, and insights on how they see the way forward for tourism. Three...

Global Britain should look towards supporting the development of Africa’s digital landscape, argue Pauline Girma and Oona Palmer (LSE). In this post, they explain that given that seven of the ten fastest-growing internet populations are located in Africa, and that it is home to what is the youngest population in the world, the future growth of the global e-commerce market depends upon unlocking the continent’s potential. The British Prime Minister has invited President Ramaphosa of South Africa to join the G7 summit in Cornwall, England in early June. The summit will discuss among other things trade and the digital economy. A number of African states are taking part in the WTO negotiations on digital trade, but South Africa has opposed the whole idea of the current WTO negotiations on the topic. Africa presents both significant opportunities and challenges for those looking to expand e-commerce. Despite changing demographics and improving business environments, which have contributed to rising household consumption, infrastructural and technical constraints continue to undermine efforts to scale e-commerce, and hinder Africa’s integration in the global digital economy. Fewer than a quarter of Africa’s roads are paved according to the World Bank, and even the relatively large markets of Nigeria and Kenya struggle with access to electricity. Moreover, the lack of widespread internet connectivity remains a fundamental barrier to the uptake of e-commerce in Africa, with less than one-third of Africans able to access the Internet. Yet the potential for the widespread adoption of e-commerce to facilitate technological ‘leapfrogging’ has led to...