Thursday, June 13

Industry and Trade

Intra-regional trade in Africa

Intra-regional trade in Africa serves as the backbone of economic transformation. East African Community (EAC) member states are increasingly trading with one another and with other African countries. At the same time, they reduced their trade with other continents like Europe, Asia, and other parts of the world, shaping the intra-regional trade in Africa’s dream projected to boost commerce and livelihoods on the continent.

The seven countries in the region (as of 2023) increased their trade with the rest of Africa by $584.6 million to $4.3 billion in the fourth quarter of 2023, a 14 per cent rise compared with a similar period in 2022, according to the latest data by the EAC Secretariat.

Cross-border trade within the region also recorded a 12 per cent rise, from the previous year’s $2.6 billion to $2.9 billion in last year’s Quarter 4, indicating rising trade within the region over the year.

During

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Guinness Nigeria
  • Singaporean firm Tolaram will acquire Diageo’s 58.02% shareholding in Guinness Nigeria PLC.
  • Tolaram has significant and extensive operations and a 50-year presence in Nigeria.
  • Diageo will also remain in the country through its wholly owned international premium spirits business built to serve a wider geographic reach across West Africa, with Nigeria as one of the main operational hubs.

In a major shake-up in Africa’s beverage industry, Guinness Nigeria has announced that Tolaram, a Singaporean company, has signed an agreement to acquire UK-based Diageo’s 58.02 per cent shareholding in the company. This acquisition is set to be completed in 2025, subject to regulatory approvals in Nigeria.

In the deal, Diageo will retain ownership of the Guinness brand, and it will be licensed to Guinness Nigeria for the long-term, enabling its continued growth and development in the country under the stewardship of Tolaram.

Abidemi Ademola, Guinness Nigeria’s secretary and legal director disclosed …

Flight Capacity in 2024
  • Flight Capacity in 2024 increased by 6 per cent increase in available seats, rising from 15.1 million in May 2023
  • In Kenya, the Kenya Civil Aviation Authority (KCAA) is leading efforts to validate draft aviation regulations aimed at enhancing safety and efficiency
  • ASK combines the capacity of an airline’s fleet with the distance those planes fly, providing a comprehensive measure of available passenger capacity over a given period.

African Airlines witnessed a 6 per cent increase in available seats, rising from 15.1 million in May 2023 to 15.9 million in May 2024, attributed to introducing new routes and increased flight frequencies.

This comes at a time when the aviation industry experienced a dynamic start to 2024, grappling with a multitude of challenges and opportunities.

African Airlines Association’s (AFRAA)’s latest data shows high demand for Available Seat Kilometers (ASK) across all regional flights.

“Despite ongoing post-pandemic hurdles, the airline sector sustained

south sudan
  • South Africa’s Strategic Fuel Fund (SSF) operates Block B2 in South Sudan in collaboration with Nilepet.
  • The company has just completed a major phase of its oil and gas exploration in Jonglei state.
  • SSF recently completed undertaking the largest geophysical survey ever done in South Sudan, covering 47,000 square kilometres.

In a move marking the strengthening bilateral relations between South Africa and South Sudan, the Strategic Fuel Fund (SFF), South Africa’s state-owned petroleum company, convened a key meeting with South Sudan’s national oil company, Nilepet, in Juba last week.

The meeting was a highlight of South African President Cyril Ramaphosa’s state visit, underscoring the growing economic ties between the two nations.

The SFF, which operates Block B2 in South Sudan and collaborates with Nilepet through the Nile Orange joint venture, has recently completed a major phase of its oil and gas exploration campaign in Jonglei state. The initial aerial survey …

Africa's agribusiness sector
  • Africa’s agribusiness sector is undergoing significant transformations driven by population growth, urbanisation, technological advancements, and shifting consumer preferences.
  • Alongside their role in stimulating economic growth, agribusiness and agro-industrial development have the potential to reduce poverty and foster social and economic growth. 
  • Technological advancements and digital transformations are revolutionising agribusiness in Africa, offering transformative opportunities.

Africa’s agribusiness sector potential

Agribusiness in Africa is undergoing significant transformations driven by population growth, urbanisation, technological advancements, and shifting consumer preferences. As a continent with abundant agricultural resources, Africa holds immense potential for agribusiness development.

African economic growth remains commodity-based, mainly on commodity exports, with minimal processing and value addition involved. To foster sustainable and inclusive growth and development in Africa, there is an urgent need to promote a new development approach based on exploiting the continent’s full agribusiness potential.

Some pressing issues call for a reorientation to support agribusiness and agro-industrial development, namely, poverty …

AIM Congress 2024
  • The key highlight of the AIM Congress 2024 is the Investment Awards, scheduled for the opening day, May 7th.
  • These awards celebrate top direct investment (FDI) projects from around the globe.
  • The awards underline the diverse ways investment can contribute to economic progress with categories ranging from Innovation and Research to Sustainability and Local Linkages.

As the global investment contours keep evolving, the AIM Congress 2024 is taking shape as a critical platform to foster global investment innovations and sustainability.

Set to convene in Abu Dhabi from May 7-9, the Annual Investment Meeting (AIM) Congress promises to be a crucial gathering for driving the new dynamics of economic resilience and growth.

This year’s congress theme, “Adapting to a shifting Investment Landscape: Harnessing New Potential for Global Economic Development,” aptly captures the current global challenges and the opportunities they present. Under the banner “Resilient Sustainable Economic Growth–Creating a Healthy and Prospective …

Kenya Ports Authority
  • Kenya Ports Authority handled 37,576 metric tons  of cargo in 2023, according to its Managing Director.
  • The KPA MD revealed the gantry cranes were procured to the tune of $31,493,808
  • One of the notable recent investments by KPA is the construction of the second phase of the Lamu Port.

The Lamu port is poised to become a key driver of economic growth and regional integration, according to industry players.

Kenya Ports Authority (KPA) Managing Director Captain William Ruto said the impressive statistics underscore the vital role that the Lamu port plays in facilitating trade and driving growth in the region.

He added that this results from its container capacity of 1.2 million twenty-foot equivalent units (TEUs) across its three berths of 4000 meters each.

 “The Lamu facility is poised to become a key driver of economic growth and regional integration,” he pointed out.

Captain Ruto disclosed last year that …

DRC Joins Organisation of Southern Cooperation
  • DRC Joins the Organisation of Southern Cooperation after depositing the Instrument of Acceptance
  • Secretary-General Manssour Bin Mussallam received the Instrument of Acceptance.
  • The OSC, aimed at fostering cooperation and development among Southern Hemisphere countries

The Republic of the Congo has consolidated its full membership status of the Organisation of Southern Cooperation (OSC) by depositing the Instrument of Acceptance by Daniel Owassa, Ambassador of the DRC to Ethiopia and Permanent Representative to the African Union.

Secretary-General Manssour Bin Mussallam received the Instrument of Acceptance at a handover ceremony yesterday at the OSC Headquarters in Addis Ababa.

The Republic of the Congo is a founding member of the OSC. The depositing of the Instrument of Acceptance signifies the completion of the full membership process by countries in the Global South.

Read Also: SkyPower, AFC, and DRC join forces for $2.3Bn Green Giant project

H.E. Bin Mussallam said the occasion marked the beginning …

Red Sea Shipping Disruptions
  • Red Sea shipping disruptions by Houthi rebels stemming from the Israel -Palestine dispute in the Gaza Strip.
  • Simultaneously, transits around the Cape of Good Hope are up by a nearly similar amount in the same period.
  • Since the first attack in November last year, data shows the numbers have risen to about 68 as of March 12.

The East African region is still at risk of future global shocks as continued Red Sea shipping disruptions and attacks on cargo vessels by Houthi rebels could likely dent the current ease in the cost of living in Kenya, with analysts predicting an increase in fuel prices.

This is likely to negate the calmness in inflation witnessed in the past three months, when the country recorded a decline in fuel and some food item prices, bringing down the level of inflation to 5.7 per cent in March.

The attacks that are stemming from …

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