A unique guide to business and investment in Africa.
Global Africa Network is proud to launch this inaugural edition of African Business 2020 at a time of energetic planning for a prosperous future for the continent.
The African Union’s Agenda 2063 is much more than a document about a hoped-for future, it contains concrete goals and deliverables. The Programme for Infrastructure Development in Africa (PIDA) and the development finance institution, the African Development Bank (AfDB) are already rolling out valuable projects that are changing the reality on the ground in vital areas of the African economy.
Perhaps the most significant event of recent times is the signing by African leaders of the African Continental Free Trade Area agreement (AfCFTA) which will bring together all 55 member states of the African Union and cover a market of more than 1.2-billion people. African Business 2020 has articles on all of these recent trends, plus overviews of the key economic sectors and regional and country profiles. In 2019 Ethiopian Prime Minister Abiy Ahmed received the Nobel Peace Prize for peace-making efforts in his region. The economic dividends of peace are beginning to be felt. In 2020 South African President Cyril Ramaphosa assumed the mantle of AU Chairperson. He brings to the role considerable experience in conflict management, constitution-writing and seeking consensus.
Global Africa Network is a proudly African company which has been producing region-specific business and investment guides since 2004, including South African Business and Nigerian Business, in addition to its online investment promotion platform www.globalafricanetwork.com
AFRICA IS READY FOR
AFRICA IS READY FOR BUSINESS …ECIC TAKES EXPORT TRADE TO ANOTHER LEVEL The Export Credit Insurance Corporation of South Africa (ECIC) is paving the way for South Africa (SA) to champion export driven industrialisation in Africa, while becoming a strong proponent of Intra Africa Trade. Since its inception in 2001, the ECIC has grown in leaps and bounds from just a capital of R1.6bn to a balance sheet of R26bn. It is now the core agency in promoting the country’s export trade and is the key insurer on behalf of government for capital goods and services. ECIC GIVES TWO TYPES OF COVERAGE. 1. Political Risk Insurance (PRI) protects the goods and services or project or plant against arbitrary political annexation of that plant. These are such occurrences as nationalisation, expropriation etc. In the same vein, it provides protection against arbitrary adverse tax that may be implemented post implementation of the project, as well as foreign currency inconvertibility. 2. Commercial risk insurance. This may entail Protection of the SA exporter against commercial insolvency of the buyer, AFRICAN BUSINESS 2020 24
ECIC CEO Kutoane Kutoane says the ECIC is geared to lead to export driven industrialisation in SA, something that is bound to impact positively on job creation and a healthy economy. “Since we are primarily a government agency that means our policies have to align with the intents and programmes of the National Development Plan (NDP). Some of these would be growing the economy and increasing employment and poverty alleviation. “We consider ourselves to be on the cutting edge of SA’s development agenda by way of actively promoting and facilitation SA’s export trade.” He says exports will earn foreign exchange and increase the country’s reserves, eventually stimulating the economic growth trajectory of the country. 25 AFRICAN BUSINESS 2020
