Nedbank’s John Hudson and Olebogeng Mogale discuss how digital technologies are making it easier for farmers to gain greater control over their route to market. JEANETTE CLARK: Digitisation and technology disruptions have picked up the pace over the last two years, necessitated by the pandemic and businesses having to find new ways of doing business. In the agricultural sector some of the many new ways that were found included agricultural e-commerce – or online trading of agricultural commodities, fresh produce, and even livestock. Joining me today is John Hudson, national head, Agriculture at Nedbank, and Olebogeng Mogale, executive, Digital Fast Lane at Nedbank, as we discuss the sector and ask whether agriculture has always been a good adopter of new technology. John, from a wider perspective, please can you tell us what technology innovation and digitisation mean for agriculture? JOHN HUDSON: Thank you, Jeanette. Quite honestly, agriculture is no different from many of the other sectors. I think it is playing a vital role and, as you said, we have seen [its] uptake just increase over the pandemic. But to be honest I think farmers have been really good adopters of technology and also digital solutions, and really this has been brought about by the cost-price squeeze effect. Farmers have been under pressure, margins have been squeezed all the time. I think one of the ways that farmers have stayed in the game is to take on technology, so in that sense, it is really, really important. What I do feel is...

A regional competition watchdog is probing two major medical laboratories operating in Kenya as well as other markets over the high pricing of their Covid-19 tests. The Common Market for Eastern and Southern Africa (Comesa) Competition Commission said it had opened investigations on PathCare and Lancet on claims that the two firms could be engaging in restrictive trade practices and abusing their dominant status in the region. The companies are among the biggest pathology service providers in Kenya with operations in other markets in the region. “The commission has commenced investigations into potential violations of Articles 16 and 18 of the regulations by medical laboratories operating in the Common Market, namely… PathCare and… Lancet,” said the Comesa Commission in an April 1 statement. Consumer and other stakeholders have until May 2 to submit views to the commission on the matter. Article 16 of the Comesa Competition Regulations prohibits restrictive business practices, while Article 18 deals with abuse of dominance within the common market. In the statement, the commission said the probe was triggered by similar developments in South Africa, where medical laboratories were compelled to bring down the cost of PCR tests.PathCare and Lancet were among the firms that agreed to the demands of the South African competition authorities. “The commission has become aware that leading pathology laboratories in South Africa have submitted consent agreements to the South African Competition Tribunal following an investigation by the South African Competition Commission to reduce their prices for Covid-19 PCR tests and Covid-19...

The port of Mombasa has a capacity of 2.65m TEUs with 19 berths The Secretary-General of the AfCFTA Secretariat, Wamkele Mene, has paid a working visit to Kenya’s Port of Mombasa to witness first-hand improvements in ports infrastructure that has led to significant growth in the country’s trade within the East African region. Port Mombasa is a gateway port to most of the landlocked nations in East Africa and currently serves about eight states within the bloc including Burundi, Rwanda, Ethiopia, Uganda, and South Sudan. General Manager of Port Operations at Kenya Port Authority, Sudi Nwasinago, said the port has been able to overcome the challenge of congestion and doubled its container traffic. He said the port now has a cruise terminal which has turnaround the port’s fortunes and catapulted the nation’s tourism industry. “The cruise terminal is one area that has truly benefited the port authority and the country at large if we are to talk about tourism which is a big revenue earner to state,” he added. The Kenya Port Authority has for the past decade been working with Trademark East Africa, an organization funded by a range of development agencies with the aim of growing prosperity in East Africa through trade. In the past, cargo trucks spent 13days before completing clearance and exiting the Mombasa Port but they now take 3days. Cargo from Mombasa to Kampala, the capital of the landlocked nation of Uganda, which used to take 21days, now takes between five to six days. Mr....

Summary Report suggests that the impacts of the Russia-Ukraine war on African economies should be negligible, because of “limited trade exposure”. Countries rich in metal and mineral resources like DR Congo and Zambia are expected to grow by 4.8 percent in the next two years, as metal prices surge due to increased demand. East Africa and southern Africa are expected to register the highest growth, which the World Bank says is because it is “characterised by a diversified economy that is more integrated than other regions in sub-Saharan Africa”. Africa’s economic growth is projected to drop to 3.4 percent this year, down 0.6 percentage points from the four percent growth recorded in 2021, due to new macroeconomic shocks. The latest Africa Pulse report, a biannual analysis of Africa’s macroeconomic outlook by the World Bank, released on Wednesday, said inflation and higher costs of living contribute to the decline. According to the report, the decrease is from economic shocks including effects of new Covid-19 variants, inflation, supply disruptions, rising public debt, climate shocks and a general slowdown in the global economy, especially in the US and China. “The slowdown in growth reflects challenges facing Africa prior to the Ukraine crisis, but have been exacerbated by the war,” said Albert Zeufack, the World Bank’s chief economist for Africa. The report suggests that the impacts of the Russia-Ukraine war on African economies should be negligible, because of “limited trade exposure”. “Resource-rich countries, especially their extractive sectors, will see improved economic performance due to...

The Government has resolved to import only finished petroleum products through TAZAMA. Energy Minister PETER KAPALA says INDENI refinery will no longer refine crude petroleum products. Mr. KAPALA says the change in the supply structure will shorten the petroleum price review cycle. He says INDENI has been relying on Government support to refine crude products. The Minister says an assessment done by government has revealed that it will be cheaper to import finished products than import crude oil. And Mr. KAPALA says government is currently servicing the over 5 hundred million dollar debt in price support and subsides to oil companies. Speaking during a media briefing in Lusaka today, Mr. KAPALA also announced that the Energy Regulation Board -EEB- will next week Thursday, March 31, announce new fuel pump prices. Mr. KAPALA said despite the adverse effects that the international oil prices have on the country; the fuel supply situation has remained stable above the minimum required threshold. He said the increase in the prices of both crude and finished petroleum products has been caused by the robust demand against strained supply following the tension between Russia and Ukraine. Mr. KAPALA said it is anticipated that the price of crude oil will remain high above 100 dollars per barrel beyond March 2022. He said prices will continuously be adjusted in line with dictates that influence prices in order to maintain domestic prices at cost reflective levels. Read original article

Summary ECA says the Ukraine crisis has exacerbated the economic and social vulnerabilities of African states, with food, oil and fertiliser prices reaching 14-year highs. The crisis has caused a 75 percent rise in crude oil prices, 67 percent rise in wheat prices, and 52 percent rise in maize prices. Fertiliser prices have risen by 21 percent since the war began. ECA projects that the Ukraine war will further contract Africa’s real GDP growth by 0.7 percent in 2022, raise inflation by 2.2 percent and drive 43 African states into fiscal deficit stress. The Africa Continental Free Trade Area (AfCTA) agreement could be the continent’s Marshall Plan for recovery as the region faces a further economic disruption from the Russia-Ukraine war. Economists from the UN Economic Commission for Africa (ECA) say the continent must now implement the agreement fast as it presents insurance for the future. The experts had this week gathered for a webinar convened by the East African Business Council (EABC) to discuss the turmoil caused by Covid-19 as well as the Russian invasion of Ukraine. Mama Keita, the director of ECA sub-regional office for Eastern Africa noted that “Africa’s recovery has been hindered by higher inflation, tighter global financial conditions, rising interest rates and the Ukraine crisis further compound the situation.” ECA says the Ukraine crisis has exacerbated the economic and social vulnerabilities of African states, with food, oil and fertiliser prices reaching 14-year highs. The crisis has caused a 75 percent rise in crude oil prices,...

Mombasa, 31st March, 2022: East African Tea Trade Association (EATTA) announced the automation of the Mombasa Tea Auction by unveiling the Integrated Tea Trading System (iTTS).  The Danish International Development Agency (DANIDA) -through TradeMark Africa- funded the USD 2Million digital platform. The importance of automation has been amplified by current efforts to mitigate the negative economic impacts of the COVID-19 pandemic in the region and facilitate safe trade. The Mombasa Tea Auction is the world’s largest black CTC tea auction for export.  Each week, teas worth over US$20 million are traded from Kenya, Uganda, Tanzania, Rwanda, Burundi, Democratic Republic of Congo, Malawi, Madagascar, Mozambique and Ethiopia. Tea is one of the top export foreign exchange earners for Kenya, generating US$1.14 billion in 2021, and with more than 55 per cent of teas sold at the auction originating from small holder farmers, the auction is an important lynchpin in the industry, as well as the economy more broadly. The Integrated Tea Trading System (iTTS) project has automated the manual processes along the tea value chain. This covers the dispatch of made tea from the factory, receiving of the tea by the Warehouse, cataloguing and offering the tea for sale by the Broker, buying of the tea and paying for it by the buyer and the finally collecting the bought tea from the warehouse. The introduction of the automated trading platform sought to remedy the limitations in the old manual set-up, such as the lack of in-depth consolidated auction statistics, and limitation...

Dar es Salaam, 31st March 2022: Today, the Central Corridor Transit Transport Facilitation Agency (CCTTFA), launched the Central Corridor Transport Observatory (CCTO), a system that provides reliable and timely information to policy makers in the region, facilitating formulation of policies that lead to better transit, trade facilitation and cooperation between CCTTFA Member States. The systems was developed by CCTTFA with support from TradeMark Africa (TMA) and funding from Denmark, Ireland, Norway, UKAID and USAID. The Central Corridor Transport Observatory (CCTO) aims at assessing the efficiency of the logistics chain along the Central Corridor and in turn making all this information available the click of a button. Users will now be able to access information on more than thirty-eight indicators grouped into six categories including: Volumes of transactions, Transit times, Cost of Services, Efficiency and Productivity, Green House Gas emissions and Safety. The Observatory provides access to special features the performance of the Corridor to include joint reports with Northern Corridor Transit and Transport Coordination Authority and Green House Gas emission updates. Also available is a Geographic Information System (GIS) module that allows users to view the location and status of various infrastructure. The event was graced by Mr. Mohamed Salum, Director of Legal Services, Ministry of Transport Tanzania, who represented the Permanent Secretary Mr. Gabriel Migire, CCTTFA Executive Director Capt. Dieudonne Dukundane, and TMA Tanzania Country Director Monica Hangi. Speaking at the event, Executive Director of CCTTFA Capt. Dieudonne Dukundane acknowledged the technical and financial support from TMA that has...

After two years of physical disconnect, the moving parts of the African ecosystem have the opportunity to come together at GTR Africa. A great opportunity to connect and network – but how can we ensure synergies to implement solutions between these parts when we all go home after the event? It has never been more necessary to have the discussion of how, than now! The World Bank predicts that the African Continental Free Trade Area (AfCFTA) will boost regional income by $450bn by the year 2035 and lift 30 million people out of poverty. This environment should be a game-changer for entrepreneurs on the African continent but there are some very real questions about whether the ecosystem for entrepreneurs is primed for this growth. As an organisation that is positioning itself as the leading Pan-African banking group on the continent, we enjoy some unique insights into the ecosystem on the continent and we see critical challenges which need to be addressed before we can capture the projected growth. Let’s have a look at where we are now, before addressing how we can move forward. FRICTIONLESS COMMERCE While the Fintech eco-system has been the recipient of some significant investment and we have seen significant transactions concluded in places like Nigeria, Kenya and South Africa. African-focused entrepreneurs have voiced a key concern in relation to the alignment gaps which exist between the physical and financial “supply-chains”. Consider the textile manufacturing market and trade between Ethiopia and South Africa. These supply chains need...

As stated by President of the African Development Bank (AfDB), Akinwumi A. Adesina, “trade finance is an important instrument for influencing Africa’s long-term economic development and structural transformation”. According to a report by the AfBB and the African Export-Import Bank (Afrexim), Trade Finance in Africa: Trends Over the Past Decade and Opportunities Ahead, the region was one of the most integrated with the rest of the world in 2011. However, in the last decade, Africa’s trade growth has been one of the worst among the major regions of the world. This is as a result of a number of factors including falling commodity prices, competition, inadequate foreign exchange liquidity, regulatory challenges and access to trade finance, as banks have gradually been scaling back activities from riskier markets. The study showed that although trade finance remains a popular activity among banks in Africa, the participation rates continue to decrease, falling by 16% between 2013 and 2019. As a result, the trade finance gap in Africa averaged USD 91 billion for the period between 2011 to 2019. Furthermore, the trade uncertainty in Africa was exacerbated by the impact of the COVID-19 pandemic, which resulted in a twin supply-demand shock across the continent. Supply was affected by mass production shutdowns and supply chain blockages and demand for products from Africa decreased globally. Despite the persistently large trade finance gap, trade remains a key driver of Africa’s social and economic development. As a result, banks such as the AfDB and Afrexim have sought to stay on top of market developments...