News
Year of the AfCFTA
The African Union has designated 2023 as the “Year of the African Continental Free Trade Area (AfCFTA)” and aims to accelerate implementation and expand the operational phase of the project. The AfCFTA is the world’s largest active free trade area in terms of members, population, and geographic size – 54 African states are signatories and 47 have ratified the AfCFTA Agreement which encompasses over 1.4bn people across the entire African continent. However, substantive trade under the AfCFTA has not really happened to date and there remain...
read moreKenya renews fight against corruption
President Uhuru Kenyatta is pushing ahead with an anti-corruption drive that involves a new chief prosecutor – Noordin Mohamed Haji – and a re-energised Ethics and Anti-Corruption Commission. Efforts to tackle corruption have increased following the disputed presidential election result of late 2017 and subsequent symbolic handshake in March 2018 when president Kenyatta and opposition leader Raila Odinga settled their main differences and brought to a close a period of heightened political instability. The authorities are...
read moreSouth Africa tackles water shortages
South Africa faces a precarious fresh water situation, which has seen major cities suffer from severe supply restrictions and limitations on use in recent years. Most notably, Western Cape province experienced severe drought in 2017-18, which seriously threatened water supplies for households and businesses located in the province and reduced electricity supplies from hydroelectric facilities. Indeed, Cape Town almost became the first major city worldwide to run out of potable water and the so-called ‘Day Zero’ event was narrowly avoided. To...
read moreNigeria at vanguard of African tech
Nigeria has long been a hotbed of business start-ups in the African technology sector and the “Yabacon Valley” in Lagos has emerged as a tech hub that rivals other key African tech locations in Nairobi (Kenya) and Cape Town (South Africa). Lagos is among the leading recipients of start-up funding in Africa, plays host e-commerce heavyweights, such as Jumia and Konga, and has given a platform for some of Africa’s best known tech start-ups to flourish (including the software company Andela, the internet and entertainment company...
read moreKenya goes large on trade
Kenya and the five other members of the East African Community (EAC) have decided to expand their joint trade footprint and fully roll out the trade bloc’s single customs territory (SCT). The SCT commenced in 2014 as a pilot project that largely centred on the Northern Transport Corridor running from the Kenyan port of Mombasa through to other countries in the region. The SCT arrangements include a common external tariff (CET) structure for goods imports from countries beyond the EAC, collection of taxes and duties at the point of entry...
read moreTanzania upsets miners
Tanzania has introduced various new rules and regulations in the mining space since the beginning of 2016, which has raised some concerns among international mining companies about populist policies and natural resource nationalisation. For instance, the government banned coal imports in mid-2016 and then banned the export of unprocessed minerals in early 2017. Following this, and in response to a parliamentary committee report that suggested mining firms were coming up short on their financial contribution to the state, the government...
read moreUganda clothing conundrum
Uganda (together with Tanzania and Rwanda) are currently subject to an out-of-cycle review of eligibility for preferential trade terms with the US under the African Growth and Opportunity Act (AGOA). The eligibility review has been brought about by the decision to ban the import of used clothing by member states of the East African Community, in their struggle to protect local producers and supply chains from cheap imported goods. Trading companies from the US have complained that the ban contravenes the fundamental principles of AGOA, which...
read moreSierra Leone steps towards recovery
Sierra Leone was designated Ebola free at the end of 2015 and although a few new cases have emerged since then the authorities with the support of the international community appear to have finally got the outbreak under control. Attention is turning to the post-Ebola recovery plan that could see substantial domestic and external finance flow into agriculture, education, healthcare and social protection programmes, as well as essential transport and power infrastructure. In addition to post-Ebola recovery plans, the resumption of mining...
read moreUgandan pipeline re-route
Uganda is considering its route-to-market options for the construction of an oil pipeline from oilfields in the Lake Albert basin to the East African coastline. Until recently, Kenya was convinced that it had secured the pipeline deal through to Lamu port, which would form an integral part of its northern corridor development plans. However, Tanzania has entered the fray and put forward an attractive option to route the pipeline to its northern port of Tanga. Negotiations over the proposed route are creating tension within the East African...
read moreZambian finances under immense pressure
Zambia is at the forefront of African countries that are suffering from the downturn in globally traded metal prices over the past few years. Government finances are under immense stress as revenue flows have contracted and international financing options have become much more limited and more costly. Severe drought conditions, chronic electricity shortages and the fast approaching August presidential and legislative elections are adding to the sense of uncertainty and instability in the country and among its trade partners and investors. The...
read more