East Africa’s economic growth is soaring leading other regions on the continent at close to 7 per cent while the overall outlook for the rest of Africa is cautiously positive.According to the African Development Bank (AfDB), job creation and ramping up manufacturing will continue to be major priority areas for creating growth and employment across the continent. In the Bank’s regional reports launched this week in Abuja, Nigeria, East Africa is leading the continent with GDP growth estimated at 5.7 per cent in 2018, followed by North Africa at 4.9 per cent, West Africa at 3.3 per cent, Central Africa at 2.2 per cent, and Southern Africa at 1.2 per cent. Read more. Source| The Exchange
Three years ago, we had the privilege of meeting with the President of Rwanda (as part of the YPO group) and hear in person about his priorities for Rwanda and the Made-in-Rwanda initiative.Following that meeting, we started studying all sectors of the economy in the country, to see which one would have the most impact. It became clear that the largest sector in the country, agriculture, was the one to focus on. Read more. Source | New Times
Africa’s banking, investments and asset management industry is currently dominated by private institutional players and government pension and insurance bodies. These players dominate capital flows in the financial markets. They drive liquidity and they set the direction of overall investments and asset management climate. This is not sustainable and does not necessarily fully optimize available resources and strengths of our open society, at least not in the long-run. Read more. Source | New Times
The Ministry of Agriculture and Animal Resources is calling on the private sector to invest in cereals storage and related technology as part of the efforts to tackle post-harvest losses. This, if followed through public and private investment in crop storage technologies, the government said, could curb post-harvest losses from the current 16 per cent to 5 per cent by 2024.
One of the grains storage technologies is the production of the Purdue Improved Crop Storage (PICS) bags that are a simple and cost-effective way of storing grains and seeds without using chemicals preservatives to control insect pests. Read more. Source | New Times
Rwanda has been cited as one of the emerging economies to look out for in 2019, at the ongoing One on One Conference by EFG Hermes, a leading financial services corporation in Frontier Emerging Markets (FEM). The summit, which is underway in Dubai, United Arab Emirates, convenes executives from over 180 African companies representing 26 countries who are meeting more than 500 investors representing 260 institutions and family offices, managing an aggregate USD 11 trillion in assets under management. Read more. Source | New Times
The Ministry of Finance is moving to de-risk the local agriculture sector through agriculture insurance with the hope of improving its attractiveness to the local and foreign private sector, including financial institutions. Investors continue to shy away from the sector citing reasons such as inadequate data on the sector, dependence on unpredictable weather patterns, reliance of traditional practices, low output among other challenges. Read more. Source | New Times
Rwanda’s total exports earnings in 2018 grew to $995.7m from 943.5 million in 2017 with the volume of exports growing by 17 per cent to 742,300 tonnes. However, despite the growth in exports the formal trade deficit widened by 12.4 per cent. The rise of import bill by 9.5 per cent was occasioned by the ongoing infrastructure projects such as Peat Power Plant, Bugesera Airport and road network expansion projects. Read more. Source | New Times
Fifty three offices established by private equity and venture capital companies in the East African Community (EAC) countries which comprises a cumulative minimum value of at least $5.8 billion USD under management for investments throughout the world including in East Africa. This is according to “The Map of Private Equity Firms” based in Sub-Saharan Africa by Africa’s leading private company research firm, Asoko Insight from December 2018. Read more. Source | The Exchange
Africa is the youngest continent in the world with almost 200 million people aged 15-24, and this number is expected to double by 2045. However, unemployment among East African youth is already high, at an estimated 51-57%. With a rising youth population and unemployment rate, young people are turning to entrepreneurship as both a means to generating income and jobs. 79 of every 100 jobs created by young entrepreneurs in East Africa have been for youth aged 18-34, however only 17% of entrepreneurs on the continent believe they will create a medium to high number of jobs over the next five years. Read more. Source| The Exchange
Five local small and medium enterprises could in coming months be listed on the Rwanda Stock Exchange, according to officials at the agency. The firms have been found outstanding from more than 10 SMEs, which signed Memorandum of Understanding with Rwanda Stock Exchange last year. The five small and medium enterprises have showed positive signs and ability to meet the requirements as prescribed in the last consecutive meetings held by both parties, according to Celestin Rwabukumba, the Chief Executive of Rwanda Stock Exchange.
This follows a two-month campaign, dubbed “access and grow”, launched in 2018, which was organised by Rwanda Stock Exchange in partnership with Capital Market Authority and USAID targeting about 300 SMEs from all sectors of the economy as a way to enable them access long-term investment capital. Read more. Source | New Times