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
PROFILE Region: East
PROFILE Region: East Africa The population of COMESA members in 2016 was 492.5-million. across the region. These include a trade and development bank, a clearing house, a leather products institute, re-insurance and monetary institutions and a trade insurance agency. A third grouping, the Intergovernmental Authority on Development (IGAD), tackles drought and desertification in the Horn of Africa. The member states of IGAD are Djibouti, Ethiopia, Eritrea, Kenya, Somalia, the Sudan, South Sudan and Uganda. Climate Tanzania is not a member of the East Africa’s biggest Regional Economic Community (REC), the Common Market for Eastern and Southern Africa (COMESA), but it is a member of two other blocs, the Southern African Development Community (SADC) and the East African Community (EAC). This type of overlapping membership is fairly common but can create problems if an REC concludes a deal with a foreign trading partner such as the EU. African planners are hoping that the continentwide African Continental Free Trade Area (AfCFTA) will iron out the anomalies that come with multiple membership of RECs. The EAC comprises six states: Burundi, Kenya, Rwanda, South Sudan, Uganda and United Republic of Tanzania. The member states of COMESA are Burundi, the Comoros, the Democratic Republic of Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Sudan, eSwatini, Seychelles, Uganda, Zambia and Zimbabwe. COMESA has several institutions which support trade and investment East Africa has been experiencing extreme weather patterns in recent years, including droughts and storms. The high altitudes of the Ethiopian Highlands and the mountains of the lake region combine to create a cooler and drier climate than one might expect for the region’s latitude. Rather than equatorial weather, it is closer to a temperate upland climate with low temperatures. Snow occurs on the highest peaks such as Kilimanjaro. Savanna conditions allow for the cultivation of maize, cassava, potatoes, millet, pulses, sorghum and beans. Cash crops include cashew nuts, tea, coffee, cotton, tobacco, sisal and cloves. Economy East Africa was the fastest-growing African region in 2018 (5.7%) and was projected to go beyond 6% in 2020. The region is Africa’s most integrated in terms of market access (African Development Bank). COMESA established a Free Trade Area in 2000, which led to an average growth in intra-regional trade of 7%. Countries within the region have been cooperating on crossborder infrastructure and transport projects, expanding access to electricity and building capacity in renewable energy projects. The ICT sector is receiving investment. Strong foreign direct investment is led by Chinese and Turkish involvement in Ethiopia. The diverse nature of the region’s economies makes for an attractive investment proposition. Standard Bank expects the development of the Uganda-Tanzania pipeline to attract capex of -billion. Tourism is a strong earner. Resources Nickel, uranium, copper, oil, diatomite, gold. AFRICAN BUSINESS 2020 68
PROFILE Kenya Kenya is investing heavily in transport infrastructure. Capital: Nairobi Other towns/cities: Mombasa, Kisumu, Nakuru Population: 48.3-million (2018) GDP: .9-billion (2018) GDP per capita (PPP): 467 Currency: Kenyan Shilling Regional Economic Community: Common Market for Eastern and Southern Africa (COMESA), East African Community (EAC), Intergovernmental Authority on Development (IGAD) Landmass: 569 140km² Coastline: 536km Resources: Limestone, soda ash, salt, gemstones, fluorspar, zinc, diatomite, gypsum, graphite, tea, coffee, corn, wheat, sugarcane. Main economic sectors: Agriculture, tourism, horticulture. Other sectors: Oil, ship repair, ICT, steel, lead, manufacturing. New sectors for investment: Oil, infrastructure. Key projects: Presidential “Big Four” priorities: manufacturing, universal healthcare, affordable housing and food security. Lamu Port-South Sudan-Ethiopia- Transport (LAPSSET) corridor project. Various cross-border railway projects. Chief exports: Tea, flowers, coffee, fish, cement, petroleum products. Top export destinations: Uganda, Pakistan, US, Netherlands, UK, Tanzania. Top import sources: China, India, UAE, Saudi Arabia, Japan. Main imports: Motor vehicles, oil, machinery and transportation equipment, iron and steel. Infrastructure: 16 airports with paved runways; pipeline for refined products (1 432km); 177 800km of highway (14 420km paved); the Northern Corridor (a multimodal trade route) links the landlocked countries of the Great Lakes Region with the maritime seaport of Mombasa (which has an LNG terminal; other seaports: Kisumu, Lamu. ICT: Kenya is ranked 138 on the ICT Development Index 2017 (ITU). Mobile phone subscriptions per 100 inhabitants: 90. Climate: Tropical on the coast and dry inland. Mount Kenya is Africa’s second-highest mountain. The Kenyan Highlands is a fertile agricultural production region. Varied wildlife abounds. Lake Victoria is the second-largest freshwater lake in the world and the largest tropical lake. Religion: Christianity, Islam, traditional. Modern history: Worse than usual floods and landslides have hit Kenya recently, attributable to changing weather patterns. The country has experienced violence from Al-Shabab, a Somalian grouping, which made attacks on civilians in 2013 and 2015. The presidential election of 2007 led to a major social and political crisis. A peaceful election was held in 2013 but the winner, Uhuru Kenyatta, was accused of crimes against humanity in the earlier election. He won the 2017 election, but it was overturned by the Supreme Court. Kenyatta came out on top again when the opposition boycotted the second running. The World Bank believes that the new Kenyan constitution of 2010 is improving accountability and encouraging investment at local level. The document provides for a bicameral legislative house, devolved county government and a judiciary which is not dependent on politicians for tenure. 69 AFRICAN BUSINESS 2020
