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East African trade and investment news

Improving quality to enhance agricultural export

Published on June 22, 2017

The amount of agricultural export commodity revenue obtained at the international market is though varied item to item, meeting the international quality standard has remained the major hindrance not to break into and navigate the global markets, the Ministry of Trade said.

Presenting his Ministry’s 11-month performance report to the House of Peoples’ Representatives recently, Trade Minister Dr. Bekele Muladu said though vigorous efforts have been exerted to increase volume of agricultural exports and diversify commodities, desirable result has not yet gained.

According to the Minister, among the other challenges, shortcoming in meeting international quality standard has posed a major setback in efforts made to enhance the performance of agricultural exports. Read more. Source | Ethiopian Herald

Hawassa Industry Park goes operational

Published on June 22, 2017

The first phase of the Hawassa Industry Park (HIP), the 1st Sustainable Textile and Apparel Grand Park in Africa, has become fully operational.

On an event organized yesterday to officially launch Park's operation, Prime Minister Hailemariam Dessalegne said the Grand Production inauguration of the Park is a demonstration of the government's commitment to deliver its promise to bring about structural transformation in the economy.

The Government of Ethiopia is unwavering in its commitment to making the country the leading manufacturing hub in Africa by 2025. In this regard, the construction of the Park will contribute a lot to realize this vision,” he said. Read more. Source | Ethiopian Herald

Dar among top 5 fastest growing economies

Published on June 22, 2017

Tanzania's Gross Domestic Products (GDP) is tipped to grow by 7.2 per cent to become the world fourth fastest economy in this year. According to World Economic Prospect June report the country economy forecasted to grow at per with India GDP.

The report showed that the fastest growing economy in the world this year is Ethiopian at 8.3 per cent and the fifth globally is Djibouti at 7.0 per cent. The three non-resourceintensive economies, the only from Africa in top five, expected to grow well above the Sub Sahara Africa average growth of 2.6 per cent in this year.

“Growth in SSA is forecast to pick up to 2.6 per cent in 2017, and average 3.4 per cent in 2018-19, slightly above population growth. “Growth in non-resource intensive countries is expected to remain solid, supported by domestic demand,” the report said. Read more. Source | Daily News

 

AfDB to create 25 million jobs for African youth

Published on June 21, 2017

The African Development Bank (AfDB) has laid out a new strategy which seeks to create 25 million jobs and positively impact a total of 50 million youth over the next decade. 
The Jobs for Youth in Africa (JfYA) Strategy (2016-2025) highlights Integration, Innovation and Investment as the key strategic areas. 

Through the implementation of the Innovation pillar of the JfYA Strategy, AfDB will create roll-out flagship programs in agriculture, industrialiation and ICT as well as an innovation lab that will test, assess, and scale promising solutions to accelerate job creation in Africa. 

To facilitate macroeconomic policies that are conducive to jobs for youth, an Enabling Youth Employment Index for Africa is being developed. Mr Akinwumi Adesina, President of the African Development Bank Group said through Integration, the bank will equip itself (projects, staff and systems) and regional member countries by means of financial support and policy dialogues to become engines for job creation. Read more. Source | Daily Monitor

Regional countries tipped on market integration

Published on June 20, 2017

Ernst and Young (EY), the global leader in assurance, tax, transactions and advisory services, has urged regional governments to invest more in market integration to help absorb global economic shocks.

According to Allan Gichuhi, the Rwanda EY partner, ensuring more market integration while embracing innovative technologies will help the region become more economically resilient and thus attract more foreign direct investments.

Gichuhi said the global political, economic and investment landscape has entered an exceptional period of transition emanating from the UK vote to leave the European Union (EU), the election of Donald Trump as the US President and China’s entry into a new phase of slower economic growth among other factors. Read more. Source | New Times

AfDB, export trading group ink $100 million to support agriculture

Published on June 20, 2017

he African Development Bank (AfDB) Group and Export Trading Group (ETG) have   signed a financial agreement worth $ 100 million loan to finance support agriculture on the African continent.

The money is expected promote employment for youths and women, and adopt an integrated value-chain approach that emphasizes access to regional and global markets.

Africa faces a significant food security challenge and continues to depend on food imports to meet ever-growing demand. The continent spent over $ 35 billion to import food in 2015 and net food imports are projected to increase to more than $ 110 billion by 2025. Read more. Source | New Times

AfDB investments in Africa hit a record Shs40 trillion

Published on June 20, 2017

The African Development Bank Group (AfDB) has invested more than US $10.80 billion (about Shs39.6 trillion) worth of projects and programmes in Africa during the year 2016 through the roll-out of its High-5 priorities and the new Development and Business Delivery Model.

According to the group’s Annual Development Effectiveness Review 2017 released recently during an annual meeting in Ahmedabad - India, the projects have created 1.6 million jobs for Africans in 2016, particularly benefitting youths and women.

Operations in 2016 rose to 305 up from 241 operations in 2015. 
The operations are core contributions to the implementation of the bank’s High-5 priorities (Light up and power Africa, Feed Africa, Industrialise Africa, Integrate Africa, and Improve the quality of life for the people of Africa) and the bank’s agenda to “transform Africa.” Read more. Source | Daily Monitor

PE firms raise $1 billion for East African investments

Published on June 20, 2017

Private equity (PE) firms raised Ksh114 billion ($1.1 billion) for East African investments between 2015 and 2016, a 41 per cent increase on the amount raised in the preceding seven years.

A sector survey by consultancy KPMG and the East Africa Venture Capital Association (EAVCA) shows that the 16 Africa focused funds have already deployed Ksh62 billion ($600 million) from these funds, with Kenya getting the lion’s share at Ksh50 billion ($483.5 million).

The amount coming to the region, however, remains only a small percentage of the global and African totals, at 0.6 and 0.06 per cent respectively. Read more. Source | The Citizen

Rwf17 billion programme to spur youth employment

Published on June 14, 2017

The United States Agency for International Development (USAID) has launched a Rwf17.2 billion initiative, Huguka Dukore, that will help train 40,000 youths in workforce readiness skills by 2021.

USAID hosted a launch event for Huguka Dukore at Kimisagara Youth Empowerment for Global Opportunities (YEGO Centre) in Kigali, yesterday.

Huguka Dukore, which loosely translates to “Get Trained and Let’s Work,” targets youth aged 16 to 30 who have attained between six and nine years of basic education. Read more. Source | New Times

What the rise in cross-border money transfer means for the economy

Published on June 14, 2017

The number of people doing cross-border transfers is progressively growing and this is due to a number of factors, including the political will to integrate the region, but also the role of financial services players, including the telecoms.

Telecommunications firms are playing a bigger role in facilitating cross-border transfers, thus revolutionalising cross-border trade and other activities and this is making significant contributions to the entire economy.

The mobile money innovation age has attracted the attention of a lot of telecoms. Today, different companies are trying to take advantage of the highest technology demands, and creating more affordable services and products. Read more. Source | New Times