African Business 2020 edition
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
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
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SPECIAL FEATURE<br />
Towards free trade<br />
A continent-wide free trade agreement promises<br />
to unlock enormous value.<br />
By John Young<br />
The <strong>African</strong> Continental Free Trade Area<br />
(AfCFTA) will come into effect in July <strong>2020</strong>.<br />
A single market of 1.3-billion people is<br />
expected to grow to 2.5-billion by 2050.<br />
The AfCFTA aims to accelerate the growth of<br />
intra-<strong>African</strong> trade and to use trade as an engine of<br />
growth and sustainable development, which will<br />
strengthen Africa’s voice in global trade negotiations.<br />
The AfCFTA head office will be in Ghana.<br />
Currently, trade between <strong>African</strong> nations<br />
is between 15% and 18% of total trade, as<br />
against 69% in Europe and 59% in Asia (United<br />
Nations Conference on Trade and Development<br />
(UNCTAD) and Brookings Institution). Tariffs on<br />
90% of all goods are to be removed. The Boston<br />
Consulting Group notes that exports between<br />
<strong>African</strong> countries grew from $41-billion in 2007<br />
to $65-billion by 2030 but this figure will rise<br />
exponentially if AfCFTA is implemented.<br />
One prediction is that intra-regional<br />
trade could increase by 52.3% by 2022 (UN<br />
Economic Commission on Africa). The <strong>African</strong><br />
Union (AU) believes trade will increase by 60%.<br />
Just four countries currently account for 41.7%<br />
of intra-<strong>African</strong> trade, South Africa, Namibia,<br />
Nigeria and Zambia, according to the Export Credit<br />
Insurance Corporation of South Africa (ECIC). The<br />
ECIC has invested in the <strong>African</strong> Export Import<br />
Bank in an effort to boost intra-continental trade<br />
to $250-billion in 2021. The South Africa-Africa<br />
Trade and Investment Promotion Programme has<br />
the same goal.<br />
The passing of the <strong>African</strong> Growth and<br />
Opportunity Act (AGOA) in 2000 was a boon for<br />
39 Sub-Saharan <strong>African</strong> countries because 6 500<br />
products could be sold duty-free in the United<br />
States of America. The bill will expire in 2025 so it’s<br />
timely that Africa’s leaders are looking to stimulate<br />
growth in new ways. In the current political<br />
climate, it is unlikely that AGOA will be renewed.<br />
President Trump has declared himself strongly<br />
opposed to multi-lateral agreements. The AU will<br />
lobby for a continent-wide agreement, but the US<br />
is likely to seek bilateral deals.<br />
AFRICAN BUSINESS <strong>2020</strong><br />
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