Regional Markets

Comesa programme targets horticulture production in East Africa

How COMESA project seeks to accelerate horticulture sector growth across East Africa

Regional Markets May 21, 2024

Under a new COMESA programme, farmers in the five East African countries are expected to access quality seeds, and training on how to improve production and distribution.
The five-year programme is expected to help the countries cut post-harvest losses in horticulture to 40 per cent or lower, from highs of 60 per cent, for instance in Kenya.
Agriculture is estimated to contribute on average 27% of the gross domestic product (GDP) in the EAC and accounts for the highest share of employment not only in the region but across Africa.

Agriculture is the backbone of nearly all East Africa region’s economies and the main economic activity for more than 70 per cent of the population. It is estimated to contribute on average 27 per cent of the gross domestic product (GDP) in the EAC and accounts for the highest share of employment not only in the region, but the African.…

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EAC set for fastest economic growth as Sub-Saharan Africa recovers in 2024

Regional Markets April 14, 2024

East Africa’s economic growth is projected to grow at 5.3 and 5.8 per cent in 2024 and 2025-26, respectively.
The World Bank projects African economies to grow by 3.4 per cent in 2024.
However, faster and more equitable growth is needed to reduce poverty.

East Africa’s economic growth to lead the continent

Economies in East Africa are expected to spearhead growth in Sub-Saharan Africa this year amid increased private consumption and declining inflation, which are supporting an economic rebound in the region.

The World Bank’s latest Africa’s Pulse report indicates the East African Community is projected to grow at the fastest pace at 5.3 and 5.8 per cent in 2024 and 2025–2026, respectively, thanks to robust growth in the Democratic Republic of Congo, Kenya, Rwanda, and Uganda.

This is higher than the compounded growth for Sub-Sahara Africa, which, albeit rebounding from a low of 2.6 per cent in 2023, is …

Kenya in fresh bid to regain lost petroleum exports market in EAC

Countries April 4, 2024

Kenya is keen on extending its pipeline to Malaba (Kenya-Uganda border), with Uganda expected to construct a link line to Kampala.
According to the Shippers Council of Eastern Africa (SCEA), Mombasa used to command up to 70% of transit business, but this has decreased to 60 per cent.
Uganda imports an average of 2.5 billion litres of petroleum annually, valued at about $2 billion, with KPC handling at least 90 per cent of the volumes.

Kenya is courting Uganda in a fresh bid to retain and possibly increase petroleum exports amid increased competition from neighbouring Tanzania. In recent months, East Africa's economic powerhouse has come under pressure from Tanzania, which is eyeing to tap more transit markets for imports and exports into the hinterland through the Dar es Salaam Port.

In the latest developments, Tanzania has offered to license Uganda National Oil Company (UNOC) to import petroleum products through Dar…

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NSE’s upgrade by FTSE Russell reflects rising confidence in Kenya’s equity market

Regional Markets April 2, 2024

Msufini Tanzania to buy East African Cables’ Tanzania subsidiary

March 8, 2024

UNCTAD raises red flag as geopolitical tensions, climate change hit global trade

February 1, 2024

What is in store for East Africa economies in 2023?

Regional Markets January 1, 2023

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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Agriculture driving Côte d’Ivoire’s economy

West African Economic and Monetary Union growth projections

Regional Markets January 1, 2023

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 January 1, 2023

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 January 1, 2023

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 December 6, 2022

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.…

Fishermen in Lake Victoria. Photo: Nation Media Group

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

Regional Markets October 5, 2022

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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