Accra, July 17, GNA – The World Bank has identified intra-African trade and digitalisation as key drivers of economic transformation on the continent, and urged that bottlenecks are removed. The Bank said the two sectors offerred hopes for the continent’s transformation as they could provide significant opportunities for increased competition, Foreign Direct Investment (FDI) flows, and economic diversification. This is in the Bank’s 2023 Country Policy and Institutional Assessment (CPIA), which was launched in Accra on Monday, July 16, 2024. Speaking at the event, Dr Andrew Dabalen, Chief Economist, African Region, World Bank, asked African governments to create a conducive environment for the private sector, including affordable loans to the private sector to enhance productivity and expand access to market. “Trade within Africa is low in general; only 20 per cent of African exports go to another African country, but whatever is traded is mostly manufactured, so, in general, it’s likely to be much more job creation than extractives,” he said. “If the composition of trade changes, where the region could trade a lot more with itself, this could be a major engine of growth for the private sector,” the World Bank Chief Economist noted. Regarding digitalisation, Dr Dabalen, stated that while 80 per cent of Africa was covered by 3G or 4G technology, only 22 per cent used it for productive use. That, he said presented enormous potential, particularly for Small and Medium-sized Enterprises growth. He, therefore, called for complementary investment to improve electricity access, and regulatory frameworks to...

The European Union (EU) parliament and Kenya’s National Assembly recent ratification of the Economic Partnership Agreement (EPA) between the EU and Kenya is a game changer. This deal offers quota-free and duty-free market access. For the Kenyan farmers, particularly horticulture producers, this is a golden opportunity. To capitalise on this opportunity, the EU has collaborated with TradeMark Africa, to implement the Business Environment and Export Enhancement Programme (BEEEP) under the EPA. This initiative is designed to support smallholder farmers and producers, helping them cultivate high quality produce sustainably and get it to market efficiently, primarily through sea freight. The shift from air to sea freight in Kenya is driven by cost-savings, environmental concerns, and the need for supply chain resilience. Sea freight is more economical for large shipments and is seen as a greener option. The Covid-19 pandemic highlighted the vulnerabilities in air transport, prompting businesses to diversify their logistics strategies. This is where Export Supply Hubs (ESH), also known as consolidation centres, come into play. ESH can revolutionise the export of flowers, avocados, mangoes, and vegetables to the EU and other markets. These hubs signify more than just a logistical shift; it embodies a transformation that addresses critical constraints and boosts export capabilities and competitiveness. At the core of ESH is the goal to streamline and enhance the export process, ensuring efficiency and sustainability. By consolidating produce from various growers, ESH reduces the risks and complexities of individual shipments. This method builds trust in sea freight, optimises resources, such...

ZimTrade, l'organisation nationale de développement et de promotion du commerce du Zimbabwe, affirme que le port de Lamu pourrait ouvrir de nouvelles portes logistiques pour le Zimbabwe vers les marchés florissants de la côte est. Le port est une pierre angulaire de la stratégie de développement des infrastructures du gouvernement kenyan, reliant le port moderne de Lamu aux principales villes de l'intérieur, notamment Garissa, Isiolo, Maralal, Lodwar et Lokichogio. Le port s'étend également jusqu'à Moyale, à la frontière éthiopienne, avec une liaison supplémentaire vers la frontière du Sud-Soudan, positionnant le Kenya comme une plaque tournante vitale pour le commerce dans la région. Le projet s'inscrit dans le cadre des objectifs de la zone de libre-échange continentale africaine, qui visent à développer des infrastructures de soutien pour faciliter le commerce transfrontalier sur l'ensemble du continent. "Les installations de pointe permettront des connexions directes entre les ports maritimes de l'océan Indien et l'intérieur de l'Afrique, réduisant ainsi les délais et les coûts", a déclaré ZimTrade. "Pour les pays enclavés comme le Zimbabwe, le port de Lamu pourrait ouvrir de nouvelles portes logistiques vers les marchés florissants de la côte est. "Alors que le commerce intra-africain entre dans une nouvelle ère de libéralisation, la foule des grues et des porte-conteneurs à Lamu symbolise les aspirations collectives du continent à la croissance et à l'intégration par le biais du commerce". L'organisation a déclaré que le port de Lamu, dans le cadre du projet Lamu Port South Sudan Ethiopia Transport Corridor, permettra aux commerçants zimbabwéens...

Le Kenya a pour objectif de transférer 50 % de ses exportations de produits frais de l'air vers l'eau d'ici 2030. Pour étudier la faisabilité de cet objectif, le journaliste Milliam Murigi s'est entretenu avec Jonathan Kipruto, directeur général de l'horticulture chez Kakuzi Plc, une entreprise qui a utilisé avec succès ce mode de transport pour toutes ses exportations d'avocats. Votre entreprise exporte des avocats depuis un certain temps déjà. Quel mode de transport utilisez-vous et pourquoi ? Nous utilisons exclusivement le fret maritime parce qu'il nous permet d'exporter efficacement des produits en vrac, ce qui n'est pas possible avec le fret aérien. Contrairement au fret aérien, le fret maritime peut accueillir de grands volumes de marchandises à un coût nettement inférieur, ce qui en fait le mode de transport idéal pour nos besoins. En outre, le fret maritime offre une plus grande souplesse dans le traitement des articles lourds ou surdimensionnés, ce qui garantit que nos envois en vrac sont transportés en toute sécurité. Cette approche permet non seulement d'optimiser notre logistique, mais aussi de soutenir notre engagement à fournir des produits de haute qualité à nos clients dans le monde entier. Que faites-vous pour que les avocats restent frais pendant le long voyage en mer ? Nous veillons à ce que tous nos fruits soient récoltés à la bonne maturité afin de préserver leur fraîcheur et leur qualité. Nous traitons tous les fruits avec de l'eau ozonée et un fongicide de qualité alimentaire avant de les emballer afin...

Trade Catalyst Africa (TCA) a nommé Mme Antoinette Tesha au poste de Directrice des investissements. Dotée d'une solide expérience dans les domaines de l'investissement, de la finance, de la banque et du développement, Antoinette apporte plus d'une décennie d'expertise à TCA, positionnant l'organisation sur la voie de la croissance. Antoinette a récemment dirigé le programme régional de textile et d'habillement de Gatsby Africa au Kenya, en se concentrant sur la croissance des exportations en Afrique de l'Est. Sa carrière distinguée couvre plusieurs régions et rôles, depuis ses débuts à la Stanbic Bank en Tanzanie jusqu'à des postes de direction à Thomson Reuters et ABSA Capital en Afrique du Sud. Elle a excellé dans les marchés financiers, le financement du développement et les marchés des capitaux d'emprunt, et a fait ses preuves dans la gestion de programmes et le développement d'entreprises. Dans ses nouvelles fonctions, Antoinette contribuera à diriger les partenariats stratégiques de TCA dans les domaines de l'investissement d'impact, du capital-risque et du capital-investissement. Elle apporte une expérience de premier ordre dans la gestion des investissements et des sorties sur les marchés émergents afin d'obtenir des rendements commerciaux. Antoinette est une administratrice d'entreprise certifiée et un membre de Women in Africa Investments, avec des diplômes de l'Université du Sussex et de l'Université du Surrey. Le PDG de TCA, M. Duncan Onyango, a déclaré à propos de cette nomination : "Nous sommes convaincus que l'expérience diversifiée et la passion d'Antoinette seront les moteurs de notre succès : "Nous sommes convaincus que...

Kenya targets to shift 50 per cent of fresh produce exports from air to via water by 2030. To explore the feasibility of this goal, our reporter Milliam Murigi had a sit down with Jonathan Kipruto, General Manager for Horticulture at Kakuzi Plc, a company that has successfully utilised this mode of transport for all their avocado exports Your company has been in avocado export business for quite some time now, which mode of transport do you use and why? We use sea freight exclusively because it allows us to export bulk products efficiently, something that is not achievable with airfreight. Unlike airfreight, sea freight can accommodate large volumes of goods at a significantly lower cost, making it the ideal mode of transport for our needs. Additionally, sea freight provides greater flexibility in handling oversized or heavy items, ensuring that our bulk shipments are transported safely and securely. This approach not only optimises our logistics, but also supports our commitment to delivering high-quality products to our customers worldwide. How do you ensure that the avocados remain fresh during the long sea voyage? We ensure that all our fruits are harvested at the right maturity to maintain their freshness and quality. We treat all fruits with ozonated water and food-grade fungicide before packaging to eliminate pathogens and fungi. Once packaged, we implement proper cold chain management from the farm pack house to our containers. Maintaining optimal temperatures throughout the transportation process is crucial for preventing spoilage and extending the shelf life...

The AfCFTA seeks to significantly increase trade between African countries by reducing tariffs, eliminating trade barriers, and streamlining customs procedures. This single market is expected to benefit African businesses by providing access to a larger customer base, promoting competition, and encouraging innovation. Economic Integration By fostering closer economic ties between African nations, the AfCFTA aims to create a more integrated and resilient economic bloc. This integration is anticipated to attract foreign investment, stimulate economic growth, and create jobs across the continent. Moreover, it will enhance Africa’s collective bargaining power on the global stage. Progress and Challenges Since its inception, the AfCFTA has made considerable progress. Many member states have ratified the agreement and are actively working towards implementing its provisions. Infrastructure development, such as improved transport and communication networks, is also underway to support the increased trade activities. However, challenges remain. Ensuring the effective implementation of the agreement across diverse economies and regulatory environments is a complex task. Additionally, addressing non-tariff barriers, such as bureaucratic red tape and logistical inefficiencies, is crucial for the success of the AfCFTA. Positive Outlook Despite these challenges, the outlook for the AfCFTA remains overwhelmingly positive. Experts believe that the agreement has the potential to lift millions out of poverty and accelerate industrialization across Africa. The World Bank estimates that by 2035, the AfCFTA could boost Africa’s income by $450 billion and increase exports by $560 billion. A Unified Future The AfCFTA represents a significant step towards realizing the vision of a unified and economically...

NATIONAL trade development and promotion organisation, ZimTrade, says Lamu Port could open new logistical gateways for Zimbabwe to the thriving markets of the eastern seaboard. The port is a cornerstone of the Kenyan government's infrastructure development strategy, connecting the modern Port of Lamu to key inland towns, including Garissa, Isiolo, Maralal, Lodwar and Lokichogio. The port also extends to Moyale at the Ethiopian border, with a further link to the Southern Sudan border, positioning Kenya as a vital trade hub in the region. The project feeds into the African Continental Free Trade Area targets of developing supportive infrastructure that will facilitate cross border trade across the continent. “The state-of-the-art facilities will enable direct connections between Indian Ocean seaports and Africa's interior, reducing delays and costs,” ZimTrade said. “For landlocked countries like Zimbabwe, Lamu Port could open new logistical gateways to the thriving markets of the eastern seaboard. “As intra-African trade enters a new era of liberalisation, the crowds of cranes and container ships at Lamu symbolise the continent's collective aspirations for growth and integration through trade.” The organisation said the Lamu Port, as part of the Lamu Port South Sudan Ethiopia Transport Corridor project, will provide Zimbabwean traders access to new markets in Kenya, South Sudan and Ethiopia. Read original article

The Infrastructure Africa Business Forum, set to take place at the CTICC in Cape Town, South Africa, on the 16 – 17 July 2024, will delve into critical discussions on the development of Africa’s infrastructure, with a spotlight on the pivotal role of Development Finance Institutions (DFIs). This year’s forum aims to foster collaboration and innovation to accelerate the implementation of the African Continental Free Trade Area (AfCFTA). DFIs: Catalysts for Infrastructure Development Development Finance Institutions (DFIs) are instrumental in financing and facilitating infrastructure projects across Africa. By providing long-term capital, risk mitigation, and technical expertise, DFIs enable the development of essential infrastructure, such as transportation networks, energy systems, and digital connectivity, which are vital for economic growth and regional integration. Enhancing Connectivity and Trade DFIs play a crucial role in enhancing connectivity between African countries, a key objective of the AfCFTA. By investing in cross-border infrastructure projects, DFIs help to reduce trade barriers and improve supply chain efficiency. These investments are essential for creating a seamless and competitive market, allowing African businesses to thrive and compete on a global scale. Supporting Sustainable and Inclusive Growth One of the core mandates of DFIs is to promote sustainable and inclusive development. DFIs ensure that infrastructure projects adhere to environmental and social standards, fostering sustainable growth that benefits all segments of society. By focusing on projects that provide access to essential services, such as clean energy and affordable transportation, DFIs contribute to poverty reduction and improved quality of life across the continent. Financing...

What you need to know:  The excessive rainfall decreased production during the avocados' flowering stage. Avocado farmers in Kirinyaga and Thika are hopeful that their fruit trees, which were destroyed by the recent heavy rains, will recover in the next few months. Mr Peter Kangangi, an avocado farmer in Kirinyaga County and the secretary at Ndia Avocado Farmers' Cooperative Society Limited, noted that the excessive rainfall decreased production during the avocados' flowering stage. "Before the rains, we had many avocados that were not yet mature. When it rained, they all fell from the trees, but we could not sell them. That reduced fruit yields. We have only delivered between four and five tonnes to the market this time round," said Mr Kangangi. He told Climate Action that before the rains, the cooperative, which has more than 50 members, used to produce between 10 and 15 tonnes for the export market. However, he is hopeful that they will have a better harvest in December following reduced rainfall across the country. The farmers say the fruit trees have started flowering. "We have told our farmers to start adding organic manure to their avocado farms to support their health growth so that the next season we can have good flowering and harvest more fruits," Mr Kangangi told Clime Action. Most farmers who grow the fruit on large scale water the avocados through irrigation, which allows them to regulate the amount of water the plants get. But this was not possible during the heavy...