The Role of AfCFTA in Enhancing Agriculture in Africa

Welcome to your August edition of the Africa Bulletin.

This month's bulletin focuses on the role of the African Continental Free Trade Area (AfCFTA) in enhancing agriculture in Africa. Agriculture is one of the most important sectors of the African economy, accounting for 75 percent of Africa’s domestic trade. AfCFTA intends to promote agricultural growth and transformation in Africa, contributing to food security, and boosting competitiveness through regional agricultural value chain development and incentivising critical investments in production and marketing infrastructure.

It has been an eventful year for ALN. We have experienced several exciting new initiatives designed to strengthen ALN's mark on the continent, including a brand refresh, the appointment of ALN Kenya's new co-managing partners, as well as the coming on board of Nigeria's leading law firm Aluko & Oyebode. In a podcast feature with Africa Legal, ALN Kenya's new co-managing partners Rosa Nduati-Mutero and Daniel Ngumy discuss how these changes contribute to the firm's as well as ALN's strategy to provide integrated legal services across Africa.

The bulletin highlights the major business stories making headlines across Africa and how they affect their region, the continent and the globe. Closely related to these stories are select reports picked for the month, which focus on sustainable development, trade, transport as well as venture capital in Africa.

And as expected, we have picked articles and legal updates from across the ALN region to help you navigate today's business world, providing a global perspective on the legal issues relevant to your industry.

Top Story

The most important sector of the African Economy is Agriculture. It contributes 15 percent to the Gross Domestic Product in sub-Saharan Africa and employs more than 60 percent of the labour force continent-wide. Agriculture accounts for 75 percent of Africa’s domestic trade. To date, 43 out of 54 African Countries (80 percent) have deposited their instruments of the African Continental Free Trade Area (AfCFTA) ratification, and 88 percent of the negotiations on Rules of Origin have been agreed upon. The AfCFTA intends to promote agricultural growth and transformation in Africa, contributing to food security, and boosting competitiveness through regional agricultural value chain development and...Read more .

Africa | Islamic Banking to Offer Alternative Financial Solutions in Africa

Africa is emerging for Islamic finance and a new destination for Islamic financial institutions, something that analysts say will open up a new avenue for foreign...Read more .

Africa | IFC Provided a Record USD 9.4 Billion Financing in Africa in the 2022 Fiscal Year

The International Finance Corporation provided record financing in Africa over the 2022 fiscal year, making USD 9.4 billion in investments between 1 July 2021 and...Read more .

Africa | China to Eliminate Customs Duties on Imports from African Countries

China’s Ministry of Finance has announced the elimination of customs duties for 98 percent of products imported from 16 developing countries, including Mozambique...Read more .

East Africa | EAC, Equity Bank USD 13 Billion Deal to Promote Trade, Integration

Regional lender Equity Bank is seeking to piggyback on the protocols of the East African Community to implement its ambitious Africa Resilience and Recovery Plan...Read more .

Ghana | PPA Renegotiations Could Eventually Save Ghana More than USD 13 Billion

?The government in Ghana is currently renegotiating some of its power purchase agreements and if successful, will save the country upwards of USD 13...Read more .

Kenya/ Ethiopia | Ethiopia to Become Kenya’s Second Biggest Source of Electricity

Ethiopia will become Kenya’s second biggest source of hydropower from November under a deal by Kenya Power to buy 600 megawatts (MW) from East Africa’s most...Read more .

Morocco | UNDP Allocates USD 1 Billion To African Startup Hubs

The Regional Bureau for Africa of the United Nations Development Program recently launched its Timbuktoo initiative that aims to boost African entrepreneurship...Read more .

Nigeria | Federal Government Woos Investors to Developing 42 Billion Barrels of Bitumen Reserves

With a global market estimated at USD 110 billion, the Federal Government has the development of the nation’s 42 billion barrels of bitumen reserves. Speaking...Read more .

Reports

Financing for Sustainable Development Report 2022

Developing countries still have to regain lost ground from the COVID-19 pandemic. The pandemic has put more countries at risk of debt distress, constrained their fiscal space and hampered economic growth. The war in Ukraine has exacerbated all these challenges. In this context, the 2022 Financing for Sustainable Development Report identifies a “great finance divide” – the inability of poorer countries to raise sufficient resources and borrow affordably for investment.

Click here to download and read the report.

AfCFTA: Leveraging Trade and Foreign Direct Investment to Boost Growth and Reduce Poverty

?The establishment of the African Continental Free Trade Area promises to turn Africa into a modern, industrialised, cohesive, and influential player on the global stage. A modern Africa one that is no longer depleting her mineral wealth to export to foreign markets, but instead industrialising her economies, incubating the entrepreneurial zeal of her burgeoning youth population, and giving her people a chance to live a better life. The AfCFTA is more than a pledge to enhance trade.

?Click here to download and read the report.

Railways in Developing Countries: A Global Review

As a green mode of transportation, railways have an important role to play in decarbonising transport through shifting transport from more polluting modes of transport such as road and air. Railways can enable economic growth, which in turn generates increasing transport demand while keeping greenhouse gas emissions low. However, in many parts of the world, railways have lost traffic and market share to air and road transport modes.?

Click here to download and read the report.

Venture Capital in Africa Report

2021 was a great year to be a founder in Africa’s innovation ecosystem. A record-breaking year by volume and value, venture capitalists put more money to work in Africa in 2021 than the preceding seven years combined. USD 5.2 billion was raised from 604 unique companies in 2021, and the data shows an industry that has achieved, and is poised for, tremendous growth. Progressive legislation remains paramount to cradle and incentivise entrepreneurship in Africa.

Click here ?to download and read the report.