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African Business 2021

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The 2021 edition of African Business is the second issue of this useful guide to business and investment on the continent. The positive reception accorded the inaugural edition in 2020 was encouraging and we are optimistic that this publication and future issues will continue to meet the need for timely and relevant information in an exciting time for African business. African Business 2021 has articles on recent trends plus overviews of the key economic sectors on the continent and regional and country profiles. There is an in-depth analysis of the implications for trade on the continent of the introduction of the African Continental Free Trade Area agreement (AfCFTA) and an article on the growth and importance of exploration for minerals, gas and oil. Namibia and Botswana feature in an article on how cooperation can drive economic growth and an opinion piece focusses on the role that digital technology can play not only in the financial sector, but in the driving progress in a broader sense. Global African 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:

The Grand Ethiopian

The Grand Ethiopian Renaissance Dam on the Blue Nile is causing tension. Nile is causing tension with its neighbours, Egypt and Sudan. A planned hydroelectric project would benefit the region but the downstream countries are concerned about waterflows. 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 continent-wide African Continental Free Trade Area (AfCFTA) will iron out the anomalies that come with multiple memberships 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, Swaziland, Seychelles, Uganda, Zambia and Zimbabwe. The building by Ethiopia of the Grand Ethiopian Renaissance Dam on the Blue 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 (before Covid-19) to go above 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 cross-border infrastructure and transport projects, expanding access to electricity and building capacity in renewable energy and ICT projects. 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 in the short term. Tourism was a strong earner. Resources Nickel, uranium, copper, oil, diatomite, gold. AFRICAN BUSINESS 2021 48

Tanzania Gas pipelines are important to the regional economy. Capital: Dar es Salaam Other towns/cities: Dodoma, Mwanza, Arusha, Mbeya, Morogoro Population: 58.5-million (2020) GDP: .2-billion (2019) GDP per capita (PPP): 9 (2019) Currency: Tanzanian shilling Regional Economic Community: East African Community (EAC), Common Market for Eastern and Southern Africa (COMESA), Southern African Development Community (SADC) Landmass: 947 300km² Coastline: 1 424 km Resources: Coal, diamonds, gemstones, gold, natural gas, nickel, phosphates, tin. Bananas, cashew nuts, cassava, cloves, coffee, cotton, sisal, tea, cotton. Main economic sectors: Tourism (Serengeti Plain, Mount Kilimanjaro). Agriculture, agro-processing, cement, fertiliser, mining, oil refining. Other sectors: Apparel, hydropower shoes, wood products. New sectors for investment: Gas and pipelines. Renewable energy. Key projects: Standard Gauge Railway (SGR) project. The fifth phase, connecting Dar es Salaam to Mwanza on Lake Victoria, was launched in 2021. Rukwa Power Plant. Hoima-Tanga crude oil pipeline. Chief exports: Cashew, coffee, cotton, gold, manufactured products. Top export destinations: India, South Africa, Kenya, Switzerland, Belgium, Democratic Republic of the Congo, China. Top import sources: India, China, UAE, Saudi Arabia, South Africa, Japan, Switzerland. Main imports: Consumer goods, machinery and transportation equipment, industrial raw materials, crude oil. Infrastructure: 10 airports with paved runways; two seaports at Dar es Salaam and Zanzibar; 4 567km of railways; 87 581km of roads (10 025km paved); commercial trade with neighbouring countries via Lake Tanganyika, Lake Victoria and Lake Nyasa (also known as Lake Malawi). ICT: Mobile subscriptions per 100 inhabitants: 82.21 (2019). Internet percentage of population: 25% (2018). ICT Development Index 2017 (ITU) ranking: 28 in Africa, 165 in world. Climate: Coastal tropical region, temperate in the highlands. Kilimanjaro is the highest point in Africa and has glaciers. The country forms part of the Great Lakes region. Religion: Christians account for about 60% and Muslim 35% but Zanzibar is almost wholly Muslim. Modern history: Swahili, English and Arabic are the primary languages of Tanzania. Germany had to give up German East Africa after World War I. Soon after gaining independence from Britain, Tanganyika and Zanzibar united to form Tanzania in 1964, but Zanzibar continues to have a degree of autonomy. A new constitution ensured that the country has had multiparty politics since 1992. John Magufuli has been president since 2015, winning reelection in 2020. Gas was discovered off the coast of Tanzania in 2012. The development of petro-gas resources to meet increasing domestic demand and for export have become vital components of economic strategy. The Tanzanian military is part of the United Nations Force Intervention Brigade (MONUSCO) in the Democratic Republic of the Congo (DRC). 49 AFRICAN BUSINESS 2021

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