After months of reluctance over competition concerns, Nigeria’s support gives weight to a 55-nation bloc worth $3.4 trillion. Intra-African trade makes up only 17% of exports, which are hampered by poor infrastructure, taxes, bureaucracy and corruption. The trade pact aims to boost cross-border trade by reducing or eliminating duties and red tape. To help lower costs, the AU launched a pan-African payment system at the summit in Niger’s capital. African exporters want the free trade area to quickly enter into force to eliminate barriers and create free movement between states. Despite the African free trade area’s launch, much work remains before the agreement becomes effective. While all of the African Union’s 55 members except Eritrea have signed on to the free trade area, only half have ratified the deal. And even after costs are reduced, Africa’s exporters still will have to contend with non-tariff barriers that will take much longer to fix — such as corruption and poor transport links between nations.
Rand Merchant Bank has released the eighth edition of its Where to invest in Africa report, which analyzes 53 African economies according to their investment attractiveness. The theme of this year’s report is infrastructure, one of the most important aspects of doing business on the continent. Egypt appears to be the most attractive investment market.
One of the most frequently visited tourist destinations in English-speaking West Africa is Ghana, for many obvious reasons. The country is not in any way lacking in tourist attractions, especially for those interested in nature and West African slave trade era history. The Kakum National Park, Labadi Beach, Elmina Castle, the mighty Volta Lake, and the Akosombo Dam are just a few of the sites attracting foreign traffic to the country. The country featured prominently on PWC’s Hospitality Outlook 2017-2027 report as a major emerging market in Africa. Big investors are seeing the light and responding to the stimulus. That is why hotels, both locally and internationally-branded, are springing up in the country. As of May 2017, there were 2,723 hotels and lodges in Ghana. Tour operators and destination marketing, food tourism and events marketing are among the top sectors to invest in.
Grey Jabesi is a 24-year-old African entrepreneur, blockchain enthusiast, cryptocurrency evangelist, analyst and investor. He an autodidact who maintains the company of some of the best minds in business and tech, he takes a practical approach to knowledge and experience building, always with a focus on developing the best possible solutions. Recently, Jabesi was inducted as new Director of Marketing for The Blockchain Association of Africa and is based in Cape Town. He spoke to Africa.com and when asked about the role of crypto currencies and block chain in Africa, he said: “The current state of the world is status and permission based. There are always hierarchies who call shots and your fate can easily be determined by them. A good example of this is “sanctions”, someone has the power to kick you out of the economic arena. Africans are already victims to this, the majority are unbanked or do not have the resources to be identified as “people” in the current economic system. The peer to peer nature of cryptocurrencies empowers everyone including Africans to participate in the economic activity without needing a central authority, for example, banks. This does not only allow them to do business at a local level, but at a global level as well. One can create a product or service and sell it to the entire world, online and get paid instantly and frictionless.”
The Kenyan government has signed agreements with oil major Total, Tullow Oil < and Africa Oil Corp to develop a 60,000-80,000 barrels per day crude processing facility for oil discovered in the country’s northwest. Tullow and Africa Oil first discovered crude oil in the Lokichar basin in 2012, which Tullow Oil estimates contains an estimated 560 million barrels in proven and probable reserves. Tullow has said this would translate to 60,000 to 100,000 barrels per day of gross production. In addition to the processing facility, a crude oil export pipeline from Lokichar to Lamu on Kenya’s coast was also part of the deal. Tuesday’s deal is a major milestone on the way to a final investment decision on Kenya’s first oil project, which Tullow aims to reach by the end of the year. It expects first full-scale oil production in 2022.
Africa is the continent with the youngest and fastest growing population in the world, with some of the fastest growing economies in the world, but it is still not attracting significant advertising investments. Sub-Saharan Africa hosts 17% of the world’s population, but represents only 2% of the world’s gross domestic product. In terms of advertising investment it represents only 0, 47% of global investments. This is mainly because Africa is made up of many different countries with many different cultures and languages, unstable rules and regulatory environments, and a historic lack of data to help understand the marketplace.
Read the complete report by the government of Mauritius here:
The Africa Australia Council (AAC) is leading a Trade and Investment Mission to Mauritius, South Africa and Zimbabwe from the 10th to 19 October 2018 was a resounding success.
Departing from Perth, delegates will also attend the Afriasia Bank Sustainability Summit 2018 Mauritius in collaboration with the Commonwealth CLIMATE FINANCE HUB ~ translating the SDGS into your business.
The Africa Australia Councils Trade Delegation has now returned to Australia after our historic trade mission to Mauritius, South Africa and Zimbabwe. Being the first, this is a historic B2B and B2G Trade Mission from Australia to Africa, initiated by the African Diaspora. The first of many to come.
Our express objective is to connect the Australian business community to the African business community through one on one introductions on the ground, in their respective industries for mutual benefit. We believe in driving development through trade and encourage training, employment and equity in the African market. We have a zero tolerance for corruption policy. #0T4C.
I am pleased to report that the trade mission was a resounding success. We then went on to meetings in South Africa and Zimabawe. We are pleased to announce that trade and investment outcomes were achieved through this mission.
The delegation was hosted in Johannesburg by Invest South Africa. The meeting was chaired by Amb. Sadick Jaffer who discussed the investor incentives and opportunities, the vast potential for growth, intra Africa trade and the Australia /South Africa trade and investment relationship. We also met with members of the Johannesburg Chamber of Commerce.
This was followed by presentations from IDC and Gauteng Growth and Development Agency.
Delegates were hosted with a networking cocktail event by His Excellency Adam McCarthy Australian High Commissioner to South Africa and the Australia South Africa Business Council.
Zimbabwe IS OPEN FOR BUSINESS! The trade and investment opportunities in this re-emerging market are immense. The Office of the President Committee kindly transported the various delegates to the Department of Housing, Department of Agriculture and the Zimbabwe National Gallery curator.
Meetings were fruitful and delegates are pursuing various trade and investment opportunities in this highly educated market~ a ground floor investment opportunity for savvy investors.
Meeting with the Agricultural Department of Zimbabwe.
The Australian Ambassador to Zimbabwe Ms. Bronte Moules, together with the Australia Zimbabwe Business Council and the Zimbabwe
National Chamber of Commerce hosted a meeting to discuss investment and trade with Zimbabwe.
Australia is fast recognising the opportunities that the African continent represents, with about 200 Australian companies currently operating throughout the continent. Australian business and investment is worth more than $50 billion and diplomatic ties are now established with all African states and organisations. Australia–Africa relations are at a level that has never previously been reached and political co-operation between Australia and African states and organisations is now a tangible reality.
It’s important that Australia’s engagement with African countries be about establishing relations of mutual benefit. There’s a need to move beyond relations based predominately on the relationship of aid-donor and aid-recipient. Historically Australia hasn’t had significant relations with African countries or organisations, but the history of interaction between African states and other western states is one of oppression, extreme violence and the looting of natural resources. The tragic collusion between African political elites and western and non-western partners and beneficiaries has led to the enrichment of a few to the detriment of the many. The ‘many’ are left to live in severely impoverished situations within resource rich states. Although this pattern of exploitation has continued unabated throughout much of the African continent, Australia is entering relations with African states and organisations at a time when democracy and political stability and security in Africa is steadily increasing.
Australia–Africa engagement is, and must continue to be, about ‘lifting not looting’ the African continent. There’re many indications that the Australian government, universities and the business sector understand this, and are committed to ‘lifting’ Africa and establishing long-term sustainable relations based on the concept of mutual benefit. The economic growth rates in many African countries put them in the category of the fastest growing states in the world (15 of the top 30 in 2012).
The challenge for African governments is to ensure that these impressive economic success stories mean that African populations benefit and are ‘lifted’ out of poverty. External partners can help. Australian expertise in the extractive industries and in the agricultural sector can be used to assist in democracy consolidation, improving the rule of law and raising the quality of life in African states. Building relations which foster security and stability in African states will in turn lead to sustainable business, investment and political co-operation opportunities for Australia.
The African continent is the biggest market for Australian Mining, Equipment, Technology and Services (METS) companies outside of Australia. According to the latest figures from the Department of Foreign Affairs and Trade of Australia, investment in Africa in 2017 by around 170 leading METS firm has so far reached $30 billion. Australian listed companies control more than 90 mining operations in Africa.
The range of minerals is extensive and the scale of exploration, extraction and processing, involving current and potential investment is estimated to be worth more than $40 billion.
In addition, there are hundreds of Australian based non-ASX- listed companies involved in exploration, operations Australia’s trade and investment relationships with the countries of Africa and development projects in Africa.
Furthermore, about one in 20 companies listed on the Australian Stock Exchange has an investment in Africa. Other lucrative sectors for cooperation between Africa and Australia include agriculture, education, professional services and retail.
We have over 20 Years of experience in ethically connecting Africa and Australia. We use our experience assists in forging a closer, trusting working relationship between African and Australian business.
The Africa Australia Council is a business, cultural and social network created to foster, strengthen and facilitate the bilateral trade, investment and cultural relationships between Africa and Australia.
Read the report here: Government of the Republic of Mauritius
Reliable and affordable energy lies at the forefront of Africa’s pursuits, to elevate economic growth and sustain the needs of an increased urbanised population. Many African nations struggle with high costs, low capacity and constant power outages. READ MORE
Retail is a fast growing sector in the continent, experiencing exceedingly impressive growth rates, and contributing to the income distribution expanding Africa.
With every country there are differences in consumer-consumption environments; industry leaders must understand their target countries, in their growth rates, total population, urbanisation growth and their consumer power, in a highly fragmented sector.
When taking into consideration the consumer behaviour favourable to retail investing, Nigeria, Ethiopia, and the DRC have the most favourable consumption spending growth, however mainly stemming from their large population rates.
The White House hosted a conference with the Department of Commerce that brought together over 100 senior level investors to discuss our strategies for increasing US investment into Africa. I have been doing business in Africa for 20 years, and I shared my thoughts in a keynote speech entitled, “Ten Things No One Told you about Doing Business in Africa”.
Teresa Clarke giving a speech on ‘Doing Business in Africa’.
Seven out of ten of the world’s fastest growing economies are in Africa. Yet, most Americans continue to think of Africa as a hopeless continent, a destination for our pity and our charitable contributions. For most emerging economies throughout the world, the United States is the largest investor. The sophistication of American investment funds means that we are often the first country to discover investment opportunities in Asia, Eastern Europe, and Latin America. We are “first movers” when it comes to sniffing out an opportunity to make a buck. That’s the case everywhere, except when it comes to Africa.
Getting rich from African investment has been the source of wealth for innumerable European dynasties. For centuries, Europeans have looked to Africa as a wellspring for income. Countless lives have been sacrificed as Europeans battled indigenous Africans, and other European nations, for the right to control Africa’s rich resources. From the 1400s through the early1900s, almost every European power jumped in the ring in the fight to colonize Africa, including Britain, France, Germany, Belgium, Italy, Portugal, Spain, and Holland. Throughout this period, Europeans profited handsomely from trade in African slaves, oil, diamonds, gold, platinum, iron, cobalt, and uranium, among other high value commodities.
In the last 30 years, China’s investment in Africa has been nothing short of explosive: Chinese trade with Africa grew from $1 billion in 1980 to nearly $200 billion in 2012. China is Africa’s largest trade partner. It is estimated that nearly 800 Chinese companies have investments in Africa. China’s interest in African business is such a high priority that the Chinese government has placed 150, full time, paid commercial attaches in 46 African countries to facilitate Chinese-African business relations. That is a huge statement about how important African business is to China. By comparison, the US has less than 10 employees dedicated to business development in only 4 African countries.
Read more here
Africa has a global comparative advantage in agriculture, being home to more than half the world’s agriculturally suitable and highly unused land, resources and its vast water resources have hardly been tapped. 60% of the world’s uncultivated land is in Africa, while the continent is only responsible for 10% of the world’s agricultural produce. Agriculture as an untapped investment opportunity is set to be a major growth driver over the next few years, surpassing mining and metals. Southeast Asia has become competitive and expensive for doing agribusiness; it’s time for Africa to take advantage of this opportunity. READ MORE
The leaders of Africa have in recent years shown commitment to the industrialization of the continent in both the short and long-term, and have taken a number of major initiatives to meet the challenges of development as evidenced by their decision to dedicate the January 2008 Summit to the theme: “the industrialization of Africa.” The dedication of the Summit to this theme shows the great importance and recognition that the African leaders attach to industrial development on the continent. READ MORE
Africa is a diverse continent of great dynamism and economic potential. African nations are important partners in a rules-based international system that, as emphasised in the Foreign Policy White Paper, is critical to global economic growth, security and human development. The Australian Government is committed to long-term ties of friendship and cooperation with the countries of Africa and is acknowledged as a valued partner.
Australia’s two-way goods and merchandise trade with Africa was valued at $7.6 billion in 2017.
Australia has diplomatic relations with all 54 African UN-member states.
Australia has established ties with regional African organisations-accredited to the African Union, the Economic Community of West African States, the Southern African Development Community, the East African Community, the Intergovernmental Authority on Development, the International Conference for the Great Lakes Region and the Common Market for Eastern and Southern Africa.
High-level bilateral meetings between Australian and African leaders, Ministers and officials drive our engagement. Australian Ministers and senior officials have attended annual African Union Summits as well as high-level events such as Mining Indaba in South Africa and Australia-Africa Week held annually in Perth.
Economic diplomacy is at the core of the Foreign Policy White Paper and the Australian Government’s approach to international engagement. DFAT is leading the Government’s economic diplomacy agenda bringing together Australia’s foreign affairs, trade, development and other international economic activities, to deliver greater prosperity for Australia, our region and the world. Australia has a clear national interest in the security, stability and prosperity of Africa.
The annual Australia-Africa Week brings together a range of conferences and events focused on promoting and addressing Australia-Africa relations, including the Australia-Africa Universities Network forum, the Africa Down Under Mining Conference and the Africa-Australia Infrastructure + Technology Conference. In 2018, the week will be held in Perth from 26 August to 1 September. Australian investment in Africa is thriving, particularly in the resources sector. There are over 170 ASX-listed companies operating in 35 countries in Africa.
For more information on doing business and opportunities in Africa please see the Austrade website.
See Full DFAT report her:
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The Africa Australia Council (AAC) is leading a Trade and Investment Mission to Mauritius, South Africa and Zimbabwe from the 10th to 19 October 2018.
Departing from Perth, delegates will also attend the Afriasia Bank Sustainability Summit 2018 Mauritius in collaboration with the Commonwealth CLIMATE FINANCE HUB ~ translating the SDGS into your business.
The overarching platform that underpins this mission is to forge the bilateral trade and investment relationship between Africa and Australia, with best practice in Corporate / Organisation Sustainability and Responsiveness, in line with the Sustainable Development Goals (SDGs) of the United Nations Development Program. On this Trade Mission we aim to introduce ethical Australian investors to viable credible African investment opportunities.
The delegation will meet and network with key government trade and investment departments and members of Chambers of Commerce and Business associations within each country. as well as the resident Australian High Commission to gain an insight into the local market from the Australian perspective.
Investment incentives and opportunities will be presented to the delegation in each country, followed by one-on-one meetings to facilitate outcomes.
The AAC’s Trade Mission to Africa will be held in October for 9 days.