Africa Trade Digest Updates

East Africa’s Regional Digital Integration

The East African Community (EAC) aims to make cross-border payments faster, safer, cheaper and more transparent. In this regard, the region is currently developing a Masterplan that is set to harmonize legal, regulatory and oversight frameworks to promote a conducive cross-border payment ecosystem in the region. According to statistics, the EAC region has seen rapid growth in digital payments, with mobile money transactions surging. However, challenges persist, including high transaction costs, limited interoperability, and regulatory disparities across Partner States. Cross-border payments remain costly, averaging 7% of the transaction value, well above the global average target of 1% for retail payments and 3% for remittances.

South Africa’s Expropriation Legislation

South African President Cyril Ramaphosa recently signed into law a bill allowing land seizures by the state without compensation - a move that has put him at odds with some members of his government and now with the USA’s President Donald Trump. The law replaces the Expropriation Act of 1975 placed an obligation on the state to pay owners it wanted to take land from, under the principle of "willing seller, willing buyer”. The new law allows for expropriation without compensation only in circumstances where it is "just and equitable and in the public interest" to do so. What remains to be seen is what impact this new law is likely to have on investments disputes.

Stay tune for more updates.