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2022 U.S-Africa Summit.

Why Africa wants AGOA Act renewed this year

Industry and Trade
  • AGOA has been a cornerstone of the U.S trade policy in Sub-Saharan Africa since the year 2000.
  • The non-reciprocal trade preference programme that provides duty-free access to the U.S market.
  • A range of manufactured goods and processed mineral products account for the bulk of exports.

African countries are pulling together to lobby the U.S Congress to approve the renewal of the Africa Growth and Opportunity Act (AGOA) this year.

Kenya and South Africa are leading the push to have a 10-year extension on the pact that allows a select number of African countries to export finished products to the US.

AGOA has been a cornerstone of the U.S trade policy in Sub-Saharan Africa since the year 2000.

The non-reciprocal trade preference programme that provides duty-free access to the U.S market, for about 40 eligible African countries, is set to expire in 2025.

Initially, it was intended to last 15 years …

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East African economies struggle with rising debt amid weak currencies

Regional Markets
Before the Covid-19 Pandemic struck, East African countries had a common agenda to invest in infrastructure development.
As the three main economies of Kenya, Tanzania and Uganda they sought to become competitive and attractive investment destinations, the issue of borrowing in foreign currencies created the debt burden they face today.
The mega investments in roads, railways, ports and aviation, have all been challenges, as low revenue collections and high recurrent expenditures continue to plague their respective governments.

Most of the countries have no choice but borrow to bridge budget deficits. According to the IMF, the major EAC nations, namely Kenya, Uganda, Tanzania, Burundi and Rwanda, together, had borrowed more than $100 billion in both external and domestic borrowing.

With the global economy in teeters post Covid-19 and the impact of the Ukraine-Russia conflict, economies worldwide are contracting, leaving East African nations in a perilous situation.

According to the IMF, about

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Kenya’s ARM Cement to Meet Creditors to Discuss Liquidation Status

Business
  • Kenya’s Athi River Mining Cement PLC administrators have called for a creditors meeting to discuss liquidator’s acts and dealings.
  • The Company was placed under Administration effective 17 August 2018 and subsequently placed in liquidation effective 1 October 2021.
  • Creditors entitled to attend the meeting are entitled to appoint a proxy to attend and ask questions on their behalf.

Kenya’s Athi River Mining Cement PLC administrators have called for a creditors meeting to discuss liquidator’s acts and dealings, and the conduct of the liquidation during the preceding year.

The Company was placed under Administration effective 17 August 2018 and subsequently placed in liquidation effective 1 October 2021.

“Section 413 (1) of the Act provides that, if the liquidation of the Company continues for a period of twelve months or more, the Liquidator shall convene a meeting of the Creditors. In line with the above, notice is therefore hereby given that a …

What is in store for East Africa economies in 2023?

Regional Markets
2022 has been a mixed bag of fortunes for the East African Community (EAC) as economies in the region implemented different policy interventions and post-Covid recovery strategies. This is after a somewhat robust recovery in 2021 following a major dip in 2020 when the Covid-19 pandemic brought most sectors to a near halt. The tourism and logistics sectors were among the hardest hit sectors with the pandemic also affecting the real estate sector, finance, construction, events management, ICT, manufacturing and consultancy. The region is however on the road to recovery with reopening of economies propping GDP growth which has averaged four per cent (4%) in 2022.Going into 2023, average growth is projected at 4.7 per cent with top performers seen to be Kenya, Rwanda, Tanzania and Uganda, albeit the impact of the ongoing Russia-Ukraine war and the realities of stagflation and recession remaining a threat.

But what is expected of

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West African Economic and Monetary Union growth projections

Regional Markets

According to the Central Bank of West African States (BCEAO), growth should accelerate in the WAEMU economic region in the medium term. The increased production in the tertiary and secondary sectors remains crucial. These sectors should benefit from controlling the current health crisis in the Union and the continued implementation of the NDPs.

Growth in the Union is expected to drop from 6 per cent in 2021 to 5.9 per cent in 2022 before settling at 7.2 per cent in 2023. The contribution to growth from the tertiary sector should stand at 3.5 per cent in 2023, up by 0.3 points compared to 2022. The contribution of the secondary sector should grow by 0.9 points between the two years to settle at 2.6 per cent in 2023.…

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Should Africa be worried? Risks that could disrupt economies in 2023

Regional Markets
Economies the world over have made significant recoveries from the effects of the Covid-19 pandemic, Russia-Ukraine conflict and disruptive supply chains with positive growth recorded in 2022.
Many of these key economies are in Africa.
However, majority of the African continent remains highly exposed to risks that could hinder growth in 2023.
One of the major concerns is debt serving, where African nation's debt as a percentage of GDP has been rising faster than expected over the past decade.
It is estimated on average that most African nations' Debt to GDP ratio, as of 2022, stands at 24.1 per cent with some countries having even higher rates.
About 35 per cent of the continent’s external debt is owed to banks, asset managers and oil traders in the West, with Chinese lenders accounting for around 12 per cent.
Of the about $444 billion in debt repayments governments in the continent will
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The path towards a common currency in the EAC

Regional Markets

Should a common currency in the EAC come to fruition, the trade will be fueled by a reduction, albeit limited, in transaction costs, the elimination of exchange rate risk and region-wide price harmonisation – all of which will undoubtedly be underpinned by policy incentives.

  • Monetary Union is the third stage towards EAC regional integration, capped through Political Federation.
  • Considering individual economies are relatively small, currency harmonisation might play a significant role in improving intra-African trade.
  • The IMF, through its chief Christine Lagarde, previously warned the EAC not to rush into a currency union, pointing to the issues faced in Europe.

Interest in regional integration, including monetary, in Africa has remained intense over the decades since independence. Consequently, various regional groupings have been formed. Those initiatives were stimulated by the generally small size of individual economies. This led to a desire to promote economies of scale in production and distribution. A…

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AfCFTA crucial for Africa’s economic recovery and growth

Regional Markets

AfCFTA’s successful implementation can boost trade and promote Africa’s economic recovery and growth. The AfCFTA is the world’s most extensive free trade area in terms of size and number of nations, with a combined GDP of around $3.4 trillion.
Increased integration would improve incomes, generate employment, stimulate investment, and make establishing regional supply chains easier. In comparison to Africa’s external trade, intra-African trade remains tiny. In 2020, just 18 per cent of exports went to other African nations.…

How Kenya, UG and TZ can increase Lake Victoria’s productivity

Regional Markets

Lake Victoria’s fisheries support more than 3 million livelihoods and bring in US$500 million in revenues annually.

Nile Perch is the main fish caught in Lake Victoria. Fish maw - the air sack that aids the Nile Perch in floating and a Chinese delicacy - has been a major export source. Statistics from the Uganda Ministry of Agriculture indicate an increase in fish maw exports earning from US$27m in 2015, to US$31m in 2016, US$48m in 2017 and US$52m in 2018. These earnings exclude the earnings from Nile Perch and its eggs.

However, the lake has been invaded by water hyacinth - the floating, green mats of waxy leaves with purple blossoms - depriving the waters below of oxygen which makes it hard for aquatic life to survive.

That, plus overfishing which occurs when fishermen use undersized nets that catch fish before they reach maturity, rapid population growth, and pollution…

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