Rand Merchant Bank (RMB) recently released its list of top sectors to invest in Africa. This targets investors eyeing real assets or looking to expand businesses that rely on physical infrastructure. This year’s approach included tenets of the operating environment, fiscal scores and development plans, all of which are key to attracting investments amid Covid-19. Egypt While Egypt’s economy was hard hit by the pandemic, it was also one of the first to bounce back towards growth. The country has made itself a beacon for overseas investors, compelled by favourable incentives and a large and dynamic domestic market. Investors have been attracted to Egypt’s intoxicating mix of rapid gross domestic product (GDP) growth, a strategic geographical position, a skilled labor force and, crucially, a large domestic market. Morocco The economy of Morocco continues to benefit from political stability. A special fund to combat Covid-19 was established in 2020, representing 2.7 per cent of GDP. Two-thirds of the funds were to be provided by private sources and one third by the government. Morocco’s attractiveness as the continent’s fifth-largest business market. Morocco’s rapid technological growth has also been encouraged by various government initiatives including the country’s location which also provides an opportunity for many western countries to utilize it as an opportunity to gain an investment foothold in the rest of Africa. South Africa The country offers a strong manufacturing and retail base that continues to support southern African regional economies with goods and services. South Africa has a world-class business infrastructure,...

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...

In Summary According to KenTrade CEO Amos Wangora, the agency expects to have all government agencies migrate to the upgraded platform by March next year. The system has so far helped improve trade facilitation processes and procedures , with autotation increasing from 14 per cent to to 92 per cent. The government wants to have all trade related agencies offer services on the Kenya National Electronic Single Window System for faster facilitation. The system which was rolled out eight years ago by the Kenya Trade Network Agency (KenTarde) is currently being upgraded with over 41 stakeholder organisations including about 20 state agencies on board. Other users include 38 active insurance companies, 36 banks, 1,529 clearing agents, 46 shipping agents and shipping companies, 29 container freight stations and five cargo handling companies, all set to migrate. Some of the key agencies that have been on the platform include Kenya Ports Authority, KRA, Kenya Bureau of Standards and port health. According to KenTrade CEO Amos Wangora, the agency expects to have all government agencies migrate to the upgraded platform by March next year. The system has so far helped improve trade facilitation processes and procedures , with autotation increasing from 14 per cent to to 92 per cent. It has increased revenue yield by Sh3.44 billion with reduction in cargo clearance documentation approval time from an average of 12 days in 2013 to two days, resulting in savings along the supply chain of an estimated Sh2 billion per year. “The the system...

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...

Construction of a $3.5 mill cruise ship terminal at Mombasa is due to be completed in August next year. Kenyan Tourism and Wildlife Cabinet Secretary, Najib Balala (pictured) told local media that the terminal will be completed in time for the cruise season in November. The cruise ship terminal is being constructed with the help a funding from Kenya Ports Authority (KPA) and Trade Mark East Africa. According to Balala, Kenya is increasingly becoming attractive to cruise ships. For example, Oceania Cruises’ ‘Nautica’ will arrive at Mombasa in December, with about 700 visitors. “We have seen good interest by cruise liners attracted to Mombasa port. Kenya has been eyeing cruise tourism growth after the segment improved significantly in the last two years with thousands of visitors arriving in the country by sea,” Balala reportedly said. The modern facility, which began construction in 2016, will feature an arrival and departure areas for passengers, a passenger lounge, an immigration office, reception counters for cruise operators, restaurants and souvenir shops. “The cruise ship is good for the hospitality business. We will get many international tourists and attract big ships. We should create awareness on cruise ship tourism so that Kenyans can tap into that business,” added Balala. Read original article

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...

SUMMARY Kenyan maize imports account for 58 percent of the grain traded among East African countries between July and September, as poor weather affected the country’s production. Latest data from the Ministry of Agriculture shows that the country imported 155,610 metric tonnes of the grain in the period, followed by South Sudan at 114,660 metric tonnes. Kenyan maize imports account for 58 percent of the grain traded among East African countries between July and September, as poor weather affected the country’s production. Latest data from the Ministry of Agriculture shows that the country imported 155,610 metric tonnes of the grain in the period, followed by South Sudan at 114,660 metric tonnes. Tanzania contributed the most to the basket with 152,880 metric tonnes of exports (57 percent) while Uganda sold 117,390 metric tonnes of maize (43 percent) to Kenya and South Sudan. Underwhelming rains in Kenya’s maize producing areas have affected production this year, with the Ministry of Agriculture projecting production will drop by 20 percent this year. To bridge the gap, the government in March lifted a ban on maize imports from Tanzania, which had been barred due for containing high levels of aflatoxin. The agriculture ministry said that the lifting of the ban saw imports rise nearly six-and-a-half times to 118,329 ninety-kilogramme bags in May from 16,137 a month earlier. “The above-average volume traded was supported by seasonal exports from Tanzania to Kenya as increasingly fresh supplies from the May-to-August harvest entered the market amid high demand in Kenya...

The Kenya Private Sector Alliance (KEPSA) and the Mouvement des Entreprises de France International (MEDEF) have renewed their Memorandum of Understanding (MOU) for a period of five years, in support of trade between Kenyan and French businesses. The initial MOU, signed in 2012 has seen KEPSA and MEDEF collaborate in hosting high-level business forums both in Kenya and France to facilitate trade and investment opportunities for their respective members over the years. KEPSA CEO Carole Kariuki noted that France is the fifth top source of Foreign Direct Investment inflows to Kenya, making it one of Kenya’s leading markets in Europe. “In 2020 our businesses exported USD 87 million in products such as avocados, pineapples, cut flowers, beans, and vegetables. Likewise, we imported USD 219.1 million worth of products such as food preparations, petroleum products, pharmaceuticals, and machinery, among others. This is in addition to 46,000 French nationals who visited Kenya in 2019, a major boost for our tourism industry,” she said. In March 2019 KEPSA and MEDEF co-hosted a networking dinner with 45 French business leaders in Nairobi alongside the state visit by French President Emmanuel Macron. In October last year, KEPSA participated in a high-level luncheon hosted by MEDEF in Paris. “With the renewal of our MOU with KEPSA, MEDEF is looking to increase investment in Kenya, which is now a regional economy, through building a stronger and sustainable value chain,” said Philippe Gautier, MEDEF CEO. MEDEF Is the largest employer federation in France. Established in 1998, It has...

In Summary Guide being developed through a one-stop-shop portal housing the regulatory processes and investment opportunities that local investor needs to know. The policy is based on Kenya’s ease of doing business approach to improve efficiency and eliminate bureaucracy. Lamu County is drafting a trade and investment policy to help local firms take full advantage of the potential of the Lamu Port and Lamu-Southern Sudan-Ethiopia Transport. The policy is based on making it easy to do business, eliminating bureaucracy and improving efficiency to facilitate trade and domestic investment. The county executive for trade and industrialisation Josephat Musembi said the county guide is being developed through a one-stop-shop portal housing regulatory processes and investment opportunities local investors need to know. Speaking at the launch of Fadhili Micro-Enterprises Ltd Branch in Mpeketoni in Lamu west, Musembi said the Lamu port is a big plus for trade and industry in the county. Plans were on to ensure businesses make the most of it. He said traders and youth are essential for the success of trade and industrialisation. DO BUSINESS: Traders at the launch of the Fadhili Micro-Entreprises in Mpeketoni,Lamu West. Image: CHETI PRAXIDES "Countless milestones drive a thriving trade environment," Musembi said. He cited the installation of security lights throughout the county, construction of markets and the rehabilitation or modernisation of old retail markets, the opening up of rural roads, or cabro paving of towns and markets. He said the the Ministry of Youth and Gender will soon start sending cheques to youth, women and...