Thursday, March 28

Regional Markets

East African Cables
  • East African Cables is a private limited liability company incorporated in mainland Tanzania. It manufactures extensive cables for domestic and industrial lighting and power electricity transmission.
  • The sale is subject to regulatory and shareholders’ approval.
  • Upon completion of the sale, EAC Tanzania will cease being a subsidiary of the company.

Msufini Tanzania Limited (MTL), a chlorine and sodium hydroxide manufacturer, is set to buy a majority stake in East African Cables’s Tanzanian subsidiary if regulators and stakeholders approve an agreed deal between the two firms.

East African Cables, which is listed on the Nairobi Securities Exchange, has entered into a share purchase agreement with Msufini for the sale of 16 218,000 ordinary shares at a value of Tsh10, constituting 51 per cent of the issued share capital of East African Cables (Tanzania) Limited.

East African Cables is a private limited liability company incorporated in mainland Tanzania. It manufactures extensive …

Read More
unctad
  • UNCTAD estimates that the weekly transits going through the Suez Canal decreased by 42 per cent over the last two months.
  • The ongoing conflict in Ukraine has triggered substantial shifts in oil and grain trades, reshaping established trade patterns.
  • Simultaneously, the Panama Canal, a pivotal conduit for global trade, is grappling with diminished water levels, resulting in a staggering 36 per cent reduction in total transits over the past month compared to a year ago.

The escalating geopolitical tensions and climate change related issues affecting key shipping routes are now threatening global trade, the United Nations Conference on Trade and Development (UNCTAD) has warned, with potential to curtail economic development mainly in poor countries.

The United Nations trade and development body has expressed concerns over the disruptions, particularly stemming geopolitical tensions affecting shipping in the Black Sea, recent attacks on shipping in the Red Sea affecting the Suez

East Africa's insurance sector
  • East Africa’s insurance sector regulators held the 7th Special Meeting of the Executive Committee (ExCo)of the East African Insurers Supervisors Association (EAISA) in Kenya on Friday.
  • The East African insurance supervisors have resolved to promote the development of cross-border insurance products and services jointly.
  • The members have also agreed to coordinate joint innovation initiatives relating to insurance development in member states.

Joint resolve for East Africa’s insurance sector supervisors 

The East African insurance supervisors have resolved to jointly promote the development of cross-border insurance products and services to address the challenges of low insurance uptake and penetration in the region.

The members have also agreed to coordinate joint innovation initiatives relating to insurance development in member states.

Working under the auspices of the East African Insurance Supervisors Association (EAISA), the supervisors, at their 7th Special Meeting of the Executive Committee (ExCo) meeting held in Eldoret, Kenya, also agreed to employ …

tourism market EAC
  • Annual tourist arrivals to the EAC are anticipated to increase to about 14.05 million by 2025, from the 7.2 million recorded in 2019. 
  • Kenya targets 5.5 million international tourist arrivals and a $6.3 billion annual contribution by 2028.
  • Fast-tracking of the EAC Single Tourism Visa remains critical to sell the region as a single tourism investment hub.

Diversification of products beyond traditional attractions and joint promotion of the region is a catalyst to revamping the East African Community as a single tourism market. This call on a single tourism market was underscored by regional Ministers responsible for EAC Affairs and Tourism and Wildlife Management who converged for the opening of the 3rd EAC Regional Tourism Expo (EARTE’23) and the Magical Kenya Travel Expo in Nairobi, Kenya.

The three-day Expo that kicked off on Monday provides an opportunity for EAC Partner States to create awareness of tourism investment opportunities and …

Zambia-Tanzania Trade Route
  • This strategic agreement aims to reduce border congestion, enhancing trade flow in a key African economic corridor.
  • Congestion at borders, especially in the Tororo and Busia areas, has long slowed the efficient transport of commodities throughout the region.
  • The idea calls for new border crossings to be set up at Mulwadda and Buteba to relieve traffic at Busia and Malaba.

Kenya and Uganda have signed a historic deal to reduce congestion at key border crossings, significantly boosting East African trade. To facilitate trade between Uganda, Rwanda, Burundi, the Democratic Republic of the Congo, and South Sudan, the highest-ranking officials have signed an agreement to build a dual carriage road along the Northern Corridor.

Congestion at borders, especially in the Tororo and Busia areas, has long slowed the efficient transport of commodities throughout the region; this project aims to alleviate this problem. The economies that rely on this route for …

Lake Tanganyika
  • Kalemie, on the DRC side of Lake Tanganyika, is a vital connection point, linking the DRC with regional ports such as Bujumbura, Burundi, Mpulungu, Zambia, and Kigoma, Tanzania.
  • Tanzania’s exports to Congo were worth about $280.54M in 2022, per the United Nations’ Comtrade Database of International Trade.
  • Lake Tanganyika, an important geographical feature that serves as a natural boundary between the two countries, plays a crucial role in this developing relationship.

The trade between the Democratic Republic of the Congo (DRC) and Tanzania is growing rapidly. Both countries have great potential for economic growth and development. Lake Tanganyika, an important geographical feature that serves as a natural boundary between the two countries, plays a crucial role in this developing relationship.

Trade Corridors and Infrastructure

One particularly important corridor for trade connecting these countries is the Central Corridor in Eastern Africa. It links the DRC, Rwanda, Burundi, Uganda, and Tanzania with …

family businesses
  • Most East African family businesses believe that it is essential to be trusted by customers, employees and family members. 
  • Among those who consider trust among each group important: 56% are fully trusted by customers, 47% are fully trusted by employees and 77% are fully trusted by family members.
  • East Africa’s level of trust is slightly higher than global survey on family businesses.

Family businesses in East Africa demonstrated robust performance over the past financial year, with 64 percent experiencing growth, compared to 46 percent in 2021, as indicated by a survey conducted by the advisory firm PwC. The PwC’s East Africa Family Business Survey 2023 affirms the resilience of family businesses, consistently overcoming geopolitical challenges.

Despite their success, experts emphasize that these businesses must adopt new priorities to ensure the longevity of their legacies. The landscape of building trust in business is undergoing a fundamental and rapid transformation. Environmental, Social,

Hollard International

South Africa-based insurer Hollard International has extended its footprint into East Africa. Hollard, a privately owned insurance, has struck a deal to acquire a stake in Apollo Investments Limited, the parent company of Kenya-headquartered APA Insurance.

This strategic investment, subject to regulatory approvals, gives Hollard International a presence in the East African market. The new acquisition supplements its existing operations in Southern and West Africa. Once approved, Hollard will become the second international investor in APA Insurance, following Swiss Re, which acquired a stake in 2014.…

Nigerian Naira currency
  • The sudden collapse of the Nigerian Naira versus the US dollar has caused widespread shock and alarm in the banking and investment industries..
  • Continued loss in value of the Naira poses huge repercussions for the entire 15-member ECOWAS bloc, not just Nigeria.
  • Many ECOWAS countries rely heavily on trade with Nigeria. When the value of the naira drops, the cost of importing products into Nigeria rises, and less money is available to spend on goods from other nations.

The sudden collapse of the Nigerian Naira versus the US dollar has caused widespread shock and alarm in the banking and investment industries. The effects of the currency exchange rate dropping to an all-time low on Nigeria’s economy and regional commerce are significant.

Current exchange rate of the Naira to the Dollar

The FMDQ, where foreign currency is legally sold through the NAFEM, reported an alarmingly low exchange rate of N999 for …

Subscribe to Our Newsletter

STAY INFORMED

Unlock Business Wisdom - Join The Exchange Africa's Newsletter for Expert African Business Insights!

Stay ahead of the game with our weekly African business Newsletter
Recieve Expert analysis, commentary and Insights into the enviroment which can help you make informed decisions.