Latest news with #AfricanContinentalFreeTradeArea
Forbes
3 days ago
- Business
- Forbes
Opportunity In Africa: Growth Potential Abounds—With The Right Strategy
As Africa reshapes the global workforce and consumer landscape, companies must navigate an ecosystem dominated by small and informal businesses, early-stage talent, and less standardized regulatory systems. getty On paper, Africa presents a compelling case for investment. With its rapidly expanding population, abundant natural resources, and rising digital connectivity, the continent is increasingly recognized as a high-potential growth market for sectors such as consumer goods, financial services, and high-tech. Adding to this momentum, the Trump administration has announced plans to host a summit for African leaders later this year, according to recent reports. The goal: to reframe the U.S.–Africa relationship with a focus on 'trade, not aid.' The summit is expected to prioritize commerce, migration, and peace—potentially opening new pathways for American companies to engage with the continent. However, Africa's promise comes with a caveat. According to the World Economic Forum, businesses cannot simply transplant a proven model from the West and expect it to thrive in Africa's multifaceted economic landscape. Each African market has unique dynamics—varying by language, currency, regulatory environment, and consumer behavior—making a one-size-fits-all approach ineffective. With Africa projected to host 25% of the world's population by 2050, a tailored business strategy is essential to unlocking the region's full potential. As Africa reshapes the global workforce and consumer landscape, companies must navigate an ecosystem dominated by small and informal businesses, early-stage talent, and less standardized regulatory systems. For investors and entrepreneurs, understanding these nuances is not optional—it's vital. 'Avoiding investment in Africa could be a journey to extinction,' says Joel Popoola, a partner at Anchora Advisory, a consultancy specializing in new market entry and corporate diplomacy. 'For many business leaders, investing in Africa is no longer a choice. Most mature markets are saturated. Africa offers the next frontier of meaningful growth.' Popoola emphasizes that while Africa has the resources, workforce, and untapped potential the global economy needs, underdeveloped intermediary systems and fragmented regulations remain barriers to entry. The African Continental Free Trade Area (AfCFTA), however, is a game changer. By creating a single market for goods and services across 54 countries, AfCFTA improves the ease of doing business and increases cross-border opportunities. Still, navigating this evolving landscape requires more than interest—it demands insight, local understanding, and diplomatic agility. That's where Anchora Advisory steps in. The firm offers end-to-end services to help global companies enter and succeed in African markets by bridging the gap between strategy and execution. 'Any business looking to tap into Africa's explosive growth must understand that the people, processes, and technologies within their four walls have limitations,' says Popoola. 'It takes the right local partners and a steady hand to deliver relevant products and services to the right people at the right time.' Anchora's approach is rooted in corporate diplomacy—a growing discipline also recognized by the U.S. government as a foreign policy priority, according to a recent Forbes article. By fostering cooperation between businesses, governments, and local stakeholders, corporate diplomacy helps companies navigate complex environments while creating shared value. 'Through our multinational expertise, we help companies grow while contributing to economic development in the regions where they operate,' Popoola adds. 'That's what doing business the right way in emerging markets looks like.' This includes investing in flexible, cloud-based technologies like SAP that bring data and AI together to deliver exceptional business value and help your business stay ready for what's next. 'We're very focused on internationalization and helping our clients grow beyond borders,' says Joe C. Lopez, Managing Partner at Anchora Advisory, during a recent podcast, Helping Businesses Scale in a Rapidly Evolving Marketplace. 'There's a wealth of insight and innovation we can deliver to U.S. companies from abroad—and vice versa.' As Africa's economies accelerate, companies that act now—and act smartly—stand to gain a competitive edge. With the right strategy, support, and sensitivity to local realities, Africa's vast opportunity is within reach.
The Star
4 days ago
- Business
- The Star
South Africa's steel and aluminium sectors brace for impact as US doubles tariff charges
Banele Ginindza | Published 3 hours ago South Africa must adapt to new challenges as US President Donald Trump announced a fresh round of import tariff hikes of up to 50% on steel and aluminium this week, compounding the effects of April's 25% increase, according to stakeholders and analysts. The local sector is still grappling with disrupted global supply chains, rising manufacturing costs, and reduced competitiveness for South African automotive products in the US market. Many South African businesses are now exploring alternative markets in Africa, Asia, Europe, and the Middle East to reduce reliance on the US. The announcement came as South Africa and other countries trading with the US benefited from a 90-day tariff suspension beyond the 10% base tariff, providing a window for strategic negotiations to safeguard key exports and explore new trade avenues during a recent meeting between President Cyril Ramaphosa and his US counterpart. Friday's decision to raise tariffs on imported steel and aluminium from 25% to 50% escalates Trump's global trade war, coming hours after he accused China of violating an agreement to mutually roll back levies and trade restrictions on critical minerals. The European Commission responded on Saturday, signaling readiness to retaliate against the US plan, raising the prospect of an escalating trade conflict between major economic powers. Donald MacKay, the founder and CEO of XA Global Trade Advisors, noted that while South Africa's steel exports to the US are limited, the impact will still be felt. 'Aluminium is exported in far greater volumes, but the US has limited aluminium production, so prices will likely rise. This isn't good, but it's not devastating either,' MacKay said. South Africa's aluminium sector had previously been exempted from emergency tariff decisions due to the commodity's scarcity status. Muzi Manzini, the CEO of the Aluminium Federation of South Africa, expressed optimism about a potential deal involving South Africa purchasing US liquefied natural gas for a minimum of 10 years in exchange for steel and aluminium tariff exemptions. 'Unless we're back to the US's haphazard tariff policy, the trade court's ruling that the President lacks authority to impose tariffs may hold, despite the appeal. If this stifles Trump's tariff plans, we could revert to rules-based World Trade Organisation processes,' Manzini said. According to a PricewaterhouseCoopers (PwC) report, US Tariffs vs South Africa: A New Economic Era? , published on Friday, the tariffs have disrupted trade volumes and supply chains, reducing South African exports to the US due to higher costs. In response, businesses are leveraging the African Continental Free Trade Area (AfCFTA) agreement to boost intra-African trade and regional economic integration while prioritizing the transformation of raw materials into higher-value finished goods to mitigate tariff exposure and drive innovation. The report highlights that the tariffs will likely impact key export sectors, particularly agriculture and automotive, which are critical for revenue and youth employment. As the US is South Africa's second-largest bilateral trading partner, these changes could lead to reduced exports, lower selling prices to offset higher US landed costs, and potential job losses as US buyers turn to alternative sources. Despite these challenges, PwC notes that free trade agreements like the African Growth and Opportunity Act (Agoa) and AfCFTA offer significant opportunities. 'Although Agoa's future remains uncertain, it continues to be a valuable tool for South African exporters to maintain competitiveness in the US market,' the report stated.
Business Insider
28-05-2025
- Business
- Business Insider
AfDB secures record $11 billion in new investments for 2024–2025
The African Development Bank (AfDB) has announced a record $11.1 billion in new investments for 2024–2025. The African Development Bank (AfDB) has announced $11.1 billion in investments for 2024-2025, marking record new commitments. $5.5 billion of the funding is devoted to climate finance to promote inclusive growth and resilience. The Bank's progress aligns with its High 5 strategic pillars, including energy access, food security, industrialization, integration, and quality of life improvement. The African Development Bank (AfDB) has announced a record $11.1 billion in new investments for 2024–2025, as revealed in its latest Annual Development Effectiveness Review, a comprehensive assessment of the Bank's impact over the past year in advancing development across the continent. This marks the highest volume of new commitments in the Bank's history, reinforcing its position as a key financier of Africa's development goals. Of the total, $5.5 billion has been allocated to climate finance, highlighting AfDB's central role in promoting inclusive growth and building resilience across Africa. The report outlines progress made under the Bank's five strategic pillars — known as the High 5s: Light Up and Power Africa, Feed Africa, Industrialise Africa, Integrate Africa, and Improve the Quality of Life for the People of Africa. This year's review also reflects the sharper focus of the Bank's new Results Management Framework (2024–2033), featuring a more streamlined set of indicators. These cover cross-cutting priorities such as youth empowerment, gender equality, economic governance, climate action, and resilience. "Africa's potential is boundless, but realising the opportunities requires strategic investments at scale. In a world confronting its own challenges, this is the moment for African institutions like the Bank to take the lead in driving the continent's transformation,' Dr. Akinwumi A. Adesina, President of the African Development Bank Group said. Impact report According to the report, 14 million people accessed improved healthcare services, while 5 million gained clean water. The Bank's investments created 260,000 direct jobs, reinforcing livelihoods across sectors. In transport, 3.5 million people benefited from improved access, strengthened trade corridors and supported regional integration under the African Continental Free Trade Area (AfCFTA). Energy access also expanded, with nearly 1 million people connected to electricity and over 1GW of new generation capacity, mostly from renewable sources. In agriculture, 1.5 million farmers adopted climate-smart technologies and 25,000 agribusinesses received support, boosting food security and climate resilience.
IOL News
27-05-2025
- Business
- IOL News
Ramaphosa heralds a new era of infrastructure development in South Africa
President Cyril Ramaphosa delivers the keynote address at the Century City Conference Centre during the Sustainable Infrastructure Development Symposium South Africa. Image: Supplied President Cyril Ramaphosa heralded a new era of infrastructure development in South Africa, describing it as the "flywheel" of economic growth and job creation during his address at the 2025 Sustainable Infrastructure Development Symposium South Africa (SIDSSA) in Cape Town on Monday. Ramaphosa outlined ambitious plans to leverage infrastructure to drive economic progress, reduce inequality, and position South Africa as a prime investment destination. "Infrastructure is fundamental to the development of our country," Ramaphosa said, saying it served as the backbone of economic growth and social progress. "Good infrastructure will boost trade and will reduce the cost of doing business. This is essential as we open up to the advent of the African Continental Free Trade Area. This will enable us to trade with ease with our sister countries on the continent, representing a market of 1.3 billion people." he said. He referred to the recently released Construction Book 2024/2025 by Infrastructure South Africa (ISA), which details 250 fully funded projects valued at over R238 billion. He said this marked a record for public investment in roads, energy, water, logistics, and social infrastructure, reversing a prolonged decline exacerbated by the Covis-19 pandemic. The symposium, held at Century City, showcased South Africa's commitment to transforming infrastructure development from plans to reality. Ramaphosa noted that public infrastructure spending is projected to exceed R1 trillion over the next three years, making it the fastest-growing budget item. However, he acknowledged the government's financial constraints, stressing the need for public-private partnerships (PPPs) to mobilise domestic and international capital. Reforms are underway to streamline PPP approvals for projects under R2 billion, reducing regulatory hurdles and enhancing investor confidence. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ramaphosa underscored ISA's role as a "centre of excellence," expediting project approvals and mobilising financing. Since 2020, ISA has grown the capital value of Strategic Integrated Projects from R340bn to over R1.3 trillion, with projects spanning energy, water, transport, and digital infrastructure. Notable completions include the Hazelmere Dam in KwaZulu-Natal and the 100 MW Redstone Concentrated Solar Power Plant in the Northern Cape, which powers over 100,000 households annually. The president also highlighted the Infrastructure Fund's impact, packaging 26 blended finance projects worth R102 billion, de-risking investments for pension funds and banks. Additionally, the Leaders Forum at SIDSSA fosters collaboration among African infrastructure ministers, aligning policies to support the African Continental Free Trade Area and regional integration. Ramaphosa called for infrastructure to be placed at the heart of South Africa's development agenda. "We are moving from great ideas to executable plans and implementation," he said, expressing optimism for SIDSSA 2025's outcomes in driving sustainable growth across the continent. Visit: BUSINESS REPORT
See - Sada Elbalad
26-05-2025
- Politics
- See - Sada Elbalad
UN Chief Calls for Reparatory Justice, Greater Global Inclusion on Africa Day 2025
Ahmed Emam On the occasion of Africa Day, United Nations Secretary-General António Guterres has issued a powerful message recognizing Africa's dynamic potential while urging the international community to confront historic injustices and support inclusive, sustainable development across the continent. 'Africa is rich in heritage, vibrant in diversity, and remarkable in its contributions to our global community,' Guterres said in his statement. He highlighted the continent's rapidly growing youth population and its emergence as a leader in renewable energy and technological innovation. Yet, he cautioned, Africa continues to endure the enduring consequences of slavery, colonialism, apartheid, and systemic racism. These legacies, the Secretary-General said, have left deep scars and perpetuated inequality for Africans and people of African descent worldwide. The 2025 Africa Day theme calls for confronting these shameful legacies. In response, Guterres renewed his call for 'reparatory justice that is grounded in accountability, reconciliation, and equity.' He also drew attention to the "Pact for the Future", adopted in September 2024, as a framework for global reform that includes enhanced African representation in global decision-making bodies such as the UN Security Council and a restructured international financial system that prioritizes debt relief and sustainable financing for African nations. The Pact also includes the "Global Digital Compact", a major initiative to bridge the digital divide and promote the ethical use of artificial intelligence—measures the Secretary-General emphasized as vital for Africa's equitable integration into the global economy. Praising Africa's leadership in regional cooperation, Guterres pointed to the African Continental Free Trade Area (AfCFTA) as a transformative opportunity for economic integration and growth. 'At a time when barriers are being erected, Africa leads by example,' he said. He called for continued global support in Africa's clean energy transition, emphasizing that the continent must be the primary beneficiary of its own critical mineral resources—essential to the global shift toward renewable energy. Reaffirming the UN's commitment to peace and security in Africa, Guterres pledged to continue supporting efforts to 'silence the guns, tackle terrorism, and safeguard human rights for all.' 'On this Africa Day, let us recommit to not only addressing past wrongs, but also to building a sustainable future for the people of Africa grounded in peace, dignity, and opportunity for all,' the Secretary-General concluded. read more Gold prices rise, 21 Karat at EGP 3685 NATO's Role in Israeli-Palestinian Conflict US Expresses 'Strong Opposition' to New Turkish Military Operation in Syria Shoukry Meets Director-General of FAO Lavrov: confrontation bet. nuclear powers must be avoided News Iran Summons French Ambassador over Foreign Minister Remarks News Aboul Gheit Condemns Israeli Escalation in West Bank News Greek PM: Athens Plays Key Role in Improving Energy Security in Region News One Person Injured in Explosion at Ukrainian Embassy in Madrid News Egypt confirms denial of airspace access to US B-52 bombers News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia News Australia Fines Telegram $600,000 Over Terrorism, Child Abuse Content Arts & Culture Nicole Kidman and Keith Urban's $4.7M LA Home Burglarized Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Sports Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Arts & Culture New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies
