The conversation about Investing in Africa is shifting from one of deficits and gaps to one about Opportunities, Prospects, Trends, Innovation and creativity, to the Companies and industries who have paid close attention to how business in Africa operates. Despite the effects of Covid-19 Africa remains the ripe land of opportunities and as the conversation about Investing in Africa is shifting from one of deficits and gaps to one about Opportunities, Prospects, Trends, Innovation and creativity, in the Companies and industries who have paid close attention to how business in Africa operates. Africa continues to be the newest destination for emerging market investors and according to Eric Osiakwan, the managing partner at Chanzo Capital, half of the world’s fastest-growing economies have been in Africa, with Ghana and Ethiopia among the countries which showed a real GDP growth of 8 percent in 2018. Photo/Courtesy In an interview with this reporter at the Social House hotel in Lavington area of Nairobi, Eric Osiakwan a renowned tech investor and entrepreneur says that Investors seek out emerging markets for the prospect of high returns, as they often experience faster economic growth as measured by GDP. However, along with higher returns usually comes much greater risk. “Investors’ risk in emerging market economies can include political instability, domestic infrastructure problems, currency volatility and illiquid equity, as many large companies may still be state-owned or private.” Eric said Obviously there are a number of reasons why Africa presents an incredible investment opportunity, according to Eric; “Africa is perhaps the most exciting investment destination...

“Leveraging its strategic geographical location, modern legal and regulatory framework, good corporate governance, and compliance with international financial regulations and ease of setting up and doing business, KIFC has a strong value proposition which will facilitate strategic investments into Africa, and create a bridge between the continent and the rest of the world, particularly North America (US and Canada), Latin America, Europe, and Asia,….. It will fill the void in facilitating domiciliation and structuring of African focused investments.” African markets offer enormous trade and investment opportunities with high returns and strong growth potential. In the infrastructure space alone, the African Development Bank (AfDB) estimates that the minimum infrastructure needs to sustain economic growth, population, and income level of African countries, is between US$130 billion and US$170 billion per annum. With the ongoing implementation of the African Continental Free Trade Area (AfCTA), which has established a free trade area of 1.3 billion people across 55 countries with a total GDP valued at US$3.4 trillion, cross-border trade will be boosted and international investment opportunities will grow significantly. Other factors driving the investment opportunities available in African markets, include the demographic dividend, vast consumer base, and arable land. However, these growing investment opportunities are only being partially tapped, despite increasing interests from Western European countries, the USA, China, India, Japan, and Australia. There remains a perception amongst some international investors that the risks of African markets outweigh the potential benefits. The major factor dampening the appetite of potential international investors, including private equity...

Uganda has condemned the continued use of non-tariff barriers by her East African Community neighbors despite several petitions, saying it beats the purpose for which the community was created. Uganda has for long felt that her neighbors, mainly Kenya, Rwanda, and Tanzania keep backtracking when it comes to implementing the free trade treaties that govern the EAC bloc. Recently, sugar exports to Tanzania have been blocked and returned to Uganda, while Kenya has often blocked Uganda’s sugar, poultry, and dairy products. And in all instances, exporters say, there are no proper reasons given The Assistant Commissioner for Regional and Bilateral Division External Trade at the Ministry of Trade, Richard Okot Okello, says there must be renewed efforts to remove all barriers if intra-regional trade is to be revamped. He was speaking at an online regional symposium on the effects of Covid-19 on women’s economic empowerment in East Africa, organized by the Eastern African Sub-Regional Support Initiative, EASSI. Okot-Okello says regional countries have persistently put nationalist and protective measures above the regional mechanisms that were put in place to enhance regional integration. On her part, Dr Juliet Wakaisuka, a lecturer at Makerere University Business School, expressed worry that in all the support and economic recovery programs, the special plight of women is not being given special attention. She calls for affirmative action like helping women entrepreneurs formalize their business, and supporting them to adapt fully to the digital-based environment. The Commercial Attache at the Kenyan Embassy in Uganda Robert Okoth said...

Summary The Northern Corridor secretariat has a $4.4 million budget for the 2021/2022 financial year to implement and complete pending projects, as was approved by the Council of Ministers recently. In the revised Northern Corridor Transport and Transit Agreement, PPPs were touted as being key to the implementation of the $700 million RSS project. The Northern Corridor secretariat has a $4.4 million budget for the 2021/2022 financial year to implement and complete pending projects, as was approved by the Council of Ministers recently. The budget, passed at the 33rd meeting, was recommended by the executive committee as the Corridor reports inefficiencies and challenges in achieving its full potential in promoting intra-regional trade and integration. Some of the key programmes still pending include the establishment of the $700 million Road Side Stations (RSS), developing conformity testing laboratories to improve efficiency along the Corridor and implementation of uniform levies as agreed on in 2015 in Kinshasa. The RSS project seeks to put up 67 roadside stations of the 141 stations identified back in 2005 to serve as rest points for truck drivers in Kenya, Uganda, Rwanda, Burundi, South Sudan and the Democratic Republic of Congo. The Council of Ministers acknowledged the slow implementation of key Corridor projects forcing them to seek support from private sector through Public Private Partnerships (PPPs). In the revised Northern Corridor Transport and Transit Agreement, PPPs were touted as being key to the implementation of the $700 million RSS project. The chief executive of East Africa Shippers Council,...

Sector experts have expressed concerns that Africa is facing growing trade barriers from conflicting Covid-19 control measures. As such, there is need for the EAC Regional Coordination Committee (RCC) on Covid-19 to review and harmonize the East African Community (EAC) policies and measures to control the pandemic. In fact the, EAC Sectoral Council on Trade, Industry, Finance, and Investment (SCTIFI) is calling for harmonization of Covid-19 testing charges and the associated validity check of the tests. Member states f the EAC need mutual recognition of test certificates once issued otherwise, traders and transporters suffer a great deal during border crossing. Kenya, Tanzania agree on Covid-19 testing and cross-border movement - The East AfricanYou have frieghters coming from Tanzania entering Kenya only to have the latter or former country deny entry due to ‘in-validity’ of the Covid-19 test and certification. This does not only apply at Namanga or Hollili cross border points, for Tanzania and Kenya and Kenya and Uganda respectively, no it occurs across all border points for all EAC countries. It is a breathe of fresh air that SCTIFI has gone ahead and directed the Republic of South Sudan and the Republic of Uganda to operationalise the Nimule/Elegu One Stop Border Post (OSBP). The two countries are now required to place their country officials at the OSBP which at the moment they do not. The East African Community (EAC) is facing huge policy and regulation differences that affect efficiency of trade. For instance, despite having formed the ambitious EAC...

In Summary The Kenya Private Sector Alliance (KEPSA) has rolled out a five-pillar strategic plan aimed at achieving this year’s goal of emerging economically stronger. It calls for peace and stability as the country heads towards the general elections, to avoid a double impact of election uncertainties and the Covid-19 pandemic. Kenya's economy has been battered by the Covid-19 pandemic for the past one year with GDP growth decelerating to 1.4 per cent, from 5.4 per cent in 2019. Key sectors were hard hit as both domestic and international trade and investment activities reduced. The Star's Martin Mwita spoke to the Kenya Private Sector Alliance (KEPSA) CEO Carole Kariuki, on the private sector performance, Covid-19 pandemic and road to recovery. Which are the most affected sectors of the economy by the pandemic and what is the impact? Most of the Covid -19 impact was due to the containment measures imposed by governments locally and abroad. Sectors like education, tourism, sports, entertainment, events, among others have experienced intermittent closures over the period and were the most affected. This is also reflected in the Quarterly GDP reports by KNBS that indicate that the economy contracted in the second and third quarters of 2020 by -5.5% and -1.1% respectively.Accommodation and food services (tourism) was the worst hit contracting by -83.3% in Q2 and -57.9 in Q3, education (-56.2% and -41.9%); professional, administrative and support services (-15.3% and -12.3%), wholesale & retail trade (-6.9% and -2.5%); manufacturing (-3.9% and -3.2%) while transportation and storage recorded -11.6...

The high cost of electricity is the single source of worry for foreign and local investors, reflecting the impact of the struggling Kenya Power on the entire economy, according to the latest government survey. The survey also shows it takes too long for investors to get their premises connected to electricity compared to other government services. “More than 50 per cent of the respondents indicated that the cost of electricity had worsened,” the Foreign Investment 2020 report released by the Kenya National Bureau of Statistics (KNBS) last week shows. Kenya has the third most expensive domestic electricity prices in Africa according to the globalpetroleumprices.com The proportion of respondents who indicated that it takes a long time to get a power connection was 36.7 per cent. Other factors are water, access to business licence, property transfer, ease of business registration, cost of credit and transport infrastructure. Transport infrastructure was the best and most improved sector improving the ease of doing business. 67 per cent of the respondents indicated that there was an improvement in Transport and Infrastructure followed by ease of business registration and access to business licence at 46.3 per cent and 42.4 per cent, respectively. However, 21.8 per cent and 21.4 per cent of businesses showed that the supply of water and other utilities, and the cost of credit had worsened. “In contrast, 38.1 per cent and 37.7 per cent of the respondents indicated that it takes a short time to get a business licence and register with the...

SUMMARY Only 13 percent of Kenyans are using e-commerce platforms such as Jumia and Kilimall to sell and buy products, underpinning the use of social media networks by marketers and shoppers. A report on Kenya’s Digital Economy by a global advisory firm, Dalberg has shown retailers and shoppers prefer the social sites that support direct marketing, engagement between businesses and buyers, and goods are paid upon delivery. Only 13 percent of Kenyans are using e-commerce platforms such as Jumia and Kilimall to sell and buy products, underpinning the use of social media networks by marketers and shoppers. A report on Kenya’s Digital Economy by a global advisory firm, Dalberg has shown retailers and shoppers prefer the social sites that support direct marketing, engagement between businesses and buyers, and goods are paid upon delivery. The rate of adoption of online market places in Kenya remains slow due to high delivery costs, highly fragmented markets and lack of clear named streets and buildings leading to supply chain barriers. “This figure (13 percent) underestimates the real extent of e-commerce, as respondents largely reported the use of marketplace platforms like Jumia and Kilimall, while the full breadth of e-commerce also encompasses digital trade through informal platforms,” the report stated. The survey targeted 2,456 households across the country who are users of digital economy. There are over 100 online retail marketplaces and individual stores in the country. High delivery costs, importing charges, lack of a national addressing system and concerns over arrangements for returns by...

Corporate Council on Africa (CCA), the leading reputable U.S. business association with a strategic focus on connecting business interests between the United States and Africa, has held the 13th U.S.-Africa Business Summit. The U.S. government and private sector leaders together African political and corporate business leaders have been working consistently over these years to share insights on critical issues and policies influencing the U.S.-Africa economic partnership. The three-day Summit held virtually included 5 plenaries and 12 panel sessions highlighting key economic recovery strategies and focused on a range of sectors and issues, including health and vaccine access, trade, digital transformation, infrastructure, financing, small and medium scale enterprises, tourism, women's leadership and investment opportunities in various African countries. Here are some highlights: The high-level dialogue set the scene for reviewing the opportunities for United States and African public and private sector leaders, how to strengthen the economic partnership between the United States and Africa. Prosper Africa, investments in key sectors such as gas, exploration of possible new bilateral trade agreements, extension of the African Growth and Opportunity Act (AGOA). The Role of Women's Leadership in Driving an Inclusive Recovery: The United States will drive a pandemic recovery and put women at the forefront. It has contributed 25 million vaccines for Africa. It implies to make sure incorporating women's perspective in their efforts. "When women are empowered, they empower their families, they empower their communities and they empower their countries.” Thokozile Ruzvidzo, Director of the Gender, Poverty and Social Policy Division, United Nations Economic Commission...

What you need to know: The review as part of the ongoing activities to enable women build their economic resilience beyond the Covid-19 pandemic. Covid-19 has worsened inclusion of women in the labour market as economic dynamics have abruptly shifted to the disadvantage of women. The State Department for Gender is reviewing its economic empowerment policy to integrate the emerging needs of women amid a ruffled economic environment shrinking opportunities for women than men. Ministry of Public Service and Gender, senior policy advisor, Elizabeth Adongo, termed the review as part of the ongoing activities to enable women build their economic resilience beyond the Covid-19 pandemic. “A lot of money has been invested in empowerment of women like the Sh2 billion earmarked for the Biashara Kenya Fund,” she said last week during the Annual Women Rights Organisation Convention (2021) convened by Crawn Trust. Last month, Women Enterprise Fund (WEF) launched Thamini, a loan product tailored to meet the credit needs of the at least eight million widows in Kenya. This interest-free loan facility, she said, is crucial to helping the vulnerable women rebuild their lives and stabilise economically. Affirmative funds On accessing markets, she said African Continental Free Trade Area provides an opportunity for women to trade their products across the region. Last March during the launch of a survey of the top 100 brands loved by women in Kenya, Gender Chief Administrative Secretary Rachel Shebesh reckoned of the findings as important in informing design of women empowerment initiatives. The survey...