Latest news with #intra-African
Straits Times
2 days ago
- Business
- Straits Times
'We are on our own'- Africa looks within to weather growing global tariff turmoil
Find out what's new on ST website and app. FILE PHOTO: A general view shows the 3.2 Kilometre Kigongo–Busisi Bridge, named John Pombe Magufuli Bridge that crosses the southern end of Lake Victoria at a cost of approximately $300 million, in Mwanza, Tanzania June 19, 2025. REUTERS/Emmanuel Herman/File Photo JOHANNESBURG - African leaders are pushing to speed up implementation of a continent-wide deal to boost trade as growing concerns over U.S. tariffs, including rates as high as 50% for Lesotho, threaten to decimate industries and hit economic growth. The African Continental Free Trade Area pact designed to unify all 1.4 billion people under Africa's more than 50 nations into a single market, has been legally ratified by 49 countries and officially launched trading in 2021. But translation into action has been sluggish, with less than half of member states actively trading under the framework. The World Bank estimates AfCFTA could increase Africa's intra-continental exports by 81% and proponents point to last year's 12.4% boost in intra-African trade, to $208 billion, according to Afreximbank figures, as early signs of success. "We've got to accelerate the establishment of our own value chain systems. What we are observing now — the weaponisation of trade policy, investment policy, nationalism — is unprecedented and it has a very negative impact on the multilateral trading system," AfCFTA Secretary-General Wamkele Mene told Reuters. "The lesson to observe is that we are on our own as a continent." U.S. President Donald Trump's return to the White House in January put trade relations centre-stage for policymakers worldwide, with his breathless cycle of punitive tariff policies poised to upend decades of globalisation and reshape flows of money and goods. Top stories Swipe. Select. Stay informed. Singapore Critical infrastructure in S'pore under attack by cyber espionage group: Shanmugam Singapore Who is UNC3886, the group that attacked S'pore's critical information infrastructure? Singapore HSA looking to get anti-vape cyber surveillance tool with AI capabilities Singapore Singapore police in contact with Indonesian authorities over baby trafficking allegations Singapore Alleged Kpod peddler filmed trying to flee raid in Bishan charged with 6 offences Singapore NTU upholds zero grade for student accused of using AI in essay; panel found 14 false citations or data Singapore 30% of aviation jobs could be redesigned due to AI, automation; $200m fund to support workers: CAAS Singapore Former NUH male nurse faces charges after he allegedly molested man at hospital G20 finance chiefs meeting in Durban this week, under South Africa's presidency, have trade high on the agenda. But despite the urgent need to boost African continental trade, accelerating it is beset with challenges. African Union countries have a combined GDP of some $3 trillion - not far off the size of France's economy, a G7 nation. So far, 24 countries are officially trading under AfCFTA, Mene said, including South Africa and Nigeria. Implementation has been inconsistent, said Raheema Parker of Oxford Economics, with weak governance undermining overall effectiveness and informal trade adding complexities. "These barriers are especially pronounced in smaller sub-Saharan economies, which are more vulnerable to external shocks and often lack the administrative and financial capacity," Parker said. INFRASTRUCTURE GAP The biggest constraint to intra-Africa trade is an infrastructure deficit, Mene said. The African Development Bank and Afreximbank collectively invested $65 billion in infrastructure projects since 2020 - barely making a dent in the $100 billion plus estimated annual infrastructure investment shortfall. Johannesburg-based Standard Bank CEO Bill Blackie warned that "without hardened bridges and faster rail links, AfCFTA will remain a paper promise." Other barriers include border delays and complex paperwork requirements. "We need to diminish all the commercial barriers," said Chad's ex-finance minister Abbas Mahamat Tolli. DOWN WITH THE DOLLAR? Currency is also contentious; nearly two-thirds of payments across more than 40 African currencies are clearing through dollar corridors. Afreximbank has called for a shift away from the dollar, citing volatility and high fees. "Local-currency corridors must become the norm to slash costs and tame volatility," said Afreximbank group chief economist Yemi Kale. The recently launched Pan-African Payments and Settlement System links 16 central banks and aims to reduce costs. Leaders say AfCFTA's transformative potential is worth tackling the challenges. "We have a generational chance to build value chains that keep wealth on the continent, develop competitive industries, and create millions of jobs while shaping global supply chains from a position of strength," Kenyan President William Ruto said earlier this month. REUTERS
IOL News
3 days ago
- Business
- IOL News
The African Continental Free Trade Area: a game-changer for the financial sector
Global intra-regional trade figures show Africa at roughly 16% - a stark contrast to Europe (65%) and Asia (43%). Image: James Wiseman/Unsplash Global intra-regional trade figures show Africa at roughly 16% - a stark contrast to Europe (65%) and Asia (43%). The African Continental Free Trade Area (AfCFTA) aims to address this disparity by establishing a unified market. For banking and financial institutions considering investing in Africa's future, this is a pivotal moment to engage in the continent's economic transformation. The AfCFTA encompasses 54 countries and 1.3 billion people. By 2035, intra-African trade will exceed $140 billion (R2.5 trillion), representing 15% of the continent's exports. With full implementation, these exports could reach $952bn – a 29% increase. These aren't mere statistics; they represent real opportunities for businesses. The AfCFTA investment protocol's holistic approach requires abolishing tariffs, introducing regulatory conformity, open cross-border transactions, and protecting investments and intellectual property while ensuring investor obligations. Such an investment climate will facilitate the free flow of capital and attract Foreign Direct Investment (FDI). Designed to use "Deep Trade Agreements" (DTAs) encompassing additional policy areas - free movement of goods, services, capital, people, and intellectual property - the vision aims for a broader and deeper economically integrated trade bloc. The challenge is turning this potential into reality. Recent research and our experience in African markets indicate four key areas needing attention: infrastructure investment, digital innovation, SME empowerment, and energy. Infrastructure development remains a critical hurdle. The continent needs significant investment in transportation, energy, and digital networks. The financial sector can address this by uniting government initiatives and private-sector capital. In South Africa, banks leverage the country's capacity for long-term local currency finance to support infrastructure projects and work with development finance institutions to increase funding for these investments. 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 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. Next Stay Close ✕ Digital innovation has led to substantial investment in modernising cross-border payments and developing blockchain documentation systems to reduce processing times. These innovations are crucial in markets like Kenya, where digital lending platforms enable SMEs to get rapid approvals when upgrading their infrastructure. Focusing on SMEs is crucial as they are the backbone of African economies yet struggle to access traditional trade finance. This is being addressed through innovative solutions like supply chain finance and specialised trade finance products that reduce working capital requirements. Banks are addressing the $19bn SME financing gap by providing access to invoice-based financing and creating an online marketplace connecting verified customers with pre-screened suppliers. These platforms demonstrate how digital solutions can democratise access to finance and develop new opportunities. In South Africa, trade compliance and digital adoption workshops are helping SMEs navigate new market opportunities. In Cote d'Ivoire, banks have developed specialised financing solutions for the agricultural sector. These programs combine financial support with capacity building, creating a sustainable foundation for business growth. The final pillar is renewable and sustainable energy. The AfCFTA principles emphasise that economic development should be environmentally and socially responsible. Investment in sustainable energy infrastructure is crucial for enabling trade and promoting a greener future. By focusing on ESG-compliant projects in renewable energy and agriculture, we can ensure inclusive and sustainable growth. This approach goes beyond traditional banking. Current policy discussions with governments and regulators are shaping a better environment for trade and investment. The impact of these initiatives is visible. Digital supply chain finance solutions are reducing costs and processing times for smaller businesses. Reports suggest increased adoption could boost exports of Egypt, Ghana, Kenya, Nigeria, and South Africa by $34bn by 2035. This growth potential is significant as the AfCFTA pushes the continent toward value-added industries and away from reliance on primary commodities. The future of African trade is being written now, and it's a story of integration, innovation, and inclusive growth. The AfCFTA represents more than a trade agreement: it is a platform for technological advancement, economic resilience, and food security. The agreement's success will depend on our ability to embrace digital innovation, support SMEs, and facilitate strategic investments. A combination of financial expertise, digital innovation, and strategic partnerships are helping turn the AfCFTA's social vision into an economic reality. Chris Egberink is CEO & head of banking and coverage in SA for Standard Chartered. Image: Supplied Chris Egberink is CEO & head of banking and coverage in SA for Standard Chartered. BUSINESS REPORT
Al-Ahram Weekly
4 days ago
- Politics
- Al-Ahram Weekly
Working collectively for Africa - Egypt - Al-Ahram Weekly
Egypt stressed the importance of Africa's security and integration during the African Union's Seventh Mid-Year Coordination Meeting this week 'Peace is the foundation of development, and integration is the path towards a better future for the continent,' President Abdel-Fattah Al-Sisi said during his speech addressing the African Union's (AU) Seventh Mid-Year Coordination Meeting held in Malabo, Equatorial Guinea, this week. The AU meeting gathered African leaders to discuss continental challenges including peace and security, economic integration, regional cooperation, and intra-African trade. It also focused on challenges facing the continent such as armed conflicts, the spread of terrorism, and the repercussions of climate change. Held under the theme of 'Justice for Africans and People of African Descent through Reparations', the meeting took place at a time when the African continent is facing various challenges to its stability and security, explained Mohamed Hegazy, a former deputy to Egypt's foreign minister. The situation in Sudan and Somalia, the pressure of the war on Gaza on the continent, the terrorist activities of the Houthis and the Shabab groups in Yemen and Somalia, the difficult economic situation as a result of the war in Ukraine and the new tariffs imposed by US President Donald Trump, are among the issues the continent has had to deal with, Hegazy said. Highlighting Egypt's efforts to maintain peace and security in the continent, President Al-Sisi affirmed Egypt's full commitment to supporting the North African Region Capability (NARC) as part of its broader interest in backing the African Peace and Security Architecture (APSA) and its leading role in post-conflict reconstruction and development in the continent. The NARC is a regional organisation concerned with promoting peace, security, and stability in the continent, according to the protocol establishing the AU's Peace and Security Council (PSC). The APSA is a framework established by the AU to address peace and security issues across the continent. As the current chair of the NARC, Al-Sisi reviewed Egypt's efforts to ensure its preparedness to promote peace on the African continent in the full belief in the importance of its readiness to protect the capabilities of the African peoples and meet their aspirations for security, stability, and prosperity, as he put it in his speech. Al-Sisi took part in the meeting in his capacity as chair of the NARC as well as of the Heads of State and Government Orientation Committee of the AU Development Agency (AUDA-NEPAD). In his speech as Chair of the AUDA-NEPAD, Al-Sisi called on all countries to work collectively to overcome its challenges as 'the Africa we want is not a dream but a near reality.' He outlined Egypt's key achievements as leader of the NEPAD Committee for two years, pinpointing the feasibility study that was conducted to launch a NEPAD Development Fund to cover Africa's development financing gap. He called on the AU's relevant bodies to approve the fund to start much-needed investment projects in the continent. The key points that the president focused on include closing the continent's development financing gap, accelerating the implementation of the AU's Agenda 2063, investing in human capital through health and education, as well as addressing the threat of climate change, Presidential Spokesperson Mohamed Al-Shennawi said. Al-Sisi announced the imminent launch of the NEPAD's Centre of Excellence for Climate Initiatives in Cairo, describing it as a vital step to equip the African countries with tools for adaptation and resilience. He also underscored that despite ongoing regional and international challenges Africa holds vast potential and numerous opportunities for achieving sustainable development and prosperity. 'Let us seize this summit as an opportunity to recommit ourselves to Africa's future… Together, we can transform our collective vision into reality and secure our people's rightful share of peace, prosperity, and progress,' he said. Al-Sisi's participation, according to Hegazi, showed Egypt's keenness to take part in various important issues, among them security and the stability of the continent in its capacity as chair of the NARC. Through its participation, Egypt also wants to follow up on the progress of implementing the African Continental Free Trade Area (AfCFTA) Agreement that entered into force in 2019 during Egypt's one-year chairmanship of the AU, Hegazy said. On the bilateral level, President Al-Sisi met many African leaders, among them Mauritanian President Mohamed Ould Cheikh Ghazouani, Angolan President João Lourenço, the present AU Chair, Gabonese President Brice Oligui Nguema, chairman of Libya's Presidential Council Mohamed Al-Menfi, and former Nigerien president Mahamadou Issoufou, who leads efforts on the AfCFTA. The meetings held on the sidelines of the AU's Coordination Meeting tackled ways of enhancing regional cooperation, development, and stability across Africa. In addition to focusing on bilateral relations, the African leaders also discussed several regional issues of mutual interest, particularly the situations in the Horn of Africa, Sudan, the Sahel, and Somalia. Al-Sisi highlighted the importance of African integration, achieving stability, and joint work, Hegazy said. 'This is the trilogy that Egypt focused on during this week's meeting. It will focus on the same issues when it speaks for the continent during the G20 meeting to be held in Cairo on 1 September,' he said. The AU Mid-Year Coordination Mechanism was established in 2017 to replace the AU's traditional mid-year summits. It brings together a select group of African leaders, including the chairpersons of the Regional Economic Communities, AU commissioners, and the heads of regional mechanisms. Its primary aim is to coordinate and harmonise the work of the AU Regional Economic Communities to accelerate the implementation of the AU's Agenda 2063 — Africa's strategic plan for growth and sustainable development. * A version of this article appears in print in the 17 July, 2025 edition of Al-Ahram Weekly Follow us on: Facebook Instagram Whatsapp Short link:
The Star
5 days ago
- Business
- The Star
Corridors of Opportunity: Europe and Africa Pave the Way Together
Paul Riembault | Published 3 hours ago Transport corridors are among the most powerful engines for economic transformation. In Europe, every euro invested in the continent's Trans-European Transport Network has been estimated to return four euros in GDP. The same – or even greater - potential exists in Africa – if investments are focused and coordinated. That's according to Paul Riembault of the Directorate-General for International Partnerships (DG INTPA) at the European Commission. Speaking at the 43rd Southern African Transport Conference (SATC) on 10 July, Riembault explored how Africa could leverage the European Union's long and complex corridor development experience. He encouraged African institutions, planners and financiers to continue their coordinated approach to corridor development – and to consider Europe's successes as well as challenges in transforming fragmented infrastructure into the backbone of a thriving single market. 'Transport corridors are not just about roads and rails,' Riembault told delegates. 'They're about unlocking integration, intra-African trade, and regional prosperity.' What sets Europe's TEN-T model apart is its data-driven, criteria-based approach. Corridors are not selected arbitrarily or through purely political negotiation. Instead, they are based on criteria or even hard data: e.g. ports handling more than 33 million tonnes of freight annually – corresponding to 1% of total EU freight -, cities with over one million inhabitants, capital cities and strategic industrial zones. These 'core nodes' anchor each multimodal corridor. 'In a Union of 27 Member States, it's natural that national interests may diverge,' Riembault said. 'Hence, a strong common framework serves as protection against shifting political priorities and pet projects ' Currently, TEN-T consists of nine multimodal corridors, supported by harmonised regulations in road safety, rail electrification, axle loads, rail signalling systems, and even ticketing interoperability. Infrastructure is just one layer – governance, standardisation and financing form the others. 'Without harmonisation, corridors become patchworks. We learned that the hard way in Europe. Interoperability should start from day one.' Riembault outlined Europe's difficult past – a continent once divided by war, incompatible rail gauges, and isolated national railway systems. 'Europe's map was built to divide, not connect,' he noted. But from the wreckage of conflict came the political will to unite, and with that will came the need for infrastructure that reflected integration. Corridors in Europe, he explained, were not the starting point but the outcome of political alignment. The EU's single market project created the demand for connectivity, and the Trans-European Transport Network (TEN-T) emerged to meet that demand. Riembault's presentation also highlighted how the EU is applying the approach of concentrating investment through the Global Gateway initiative – the EU's global investment strategy, which prioritises energy, digital and transport infrastructure. Through Global Gateway, the EU has identified a shortlist of African corridors – aligned with African Union (AU) and Regional Economic Community (REC) priorities – where it is focusing its transport funding between 2021 and 2027. 'The goal is not to duplicate Africa's frameworks like the Programme for Infrastructure Development in Africa (PIDA) or the African Continental Free Trade Area (AfCFTA),' he said. 'The goal is to support them strategically and at scale.' More than €1.5 billion (about R30 billion) in grants have already been earmarked to African corridor development under the Global Gateway initiative, with many projects supported through blended financing that combines EU grants with loans and private capital. Among the flagship investments is the Maputo–Walvis Bay rail corridor, where upgrades in Mozambique are set to significantly boost freight capacity. In Dakar, a Bus Rapid Transit (BRT) system has been rolled out, featuring over 120 electric buses and dedicated lanes to enhance urban mobility and reduce emissions. Meanwhile, in Lagos, the OMI EKO water transport project should improve connectivity along the Abidjan–Lagos corridor by expanding ferry services and infrastructure to better serve the region's rapidly growing population. In addition to physical infrastructure, the EU is funding soft measures such as trade facilitation, customs reform, axle load regulations, and corridor governance frameworks. The session, which brought together representatives and experts from the African Union Commission, Regional Economic Communities, the United Nations, the World Bank, and German cooperation, concluded with a vibrant discussion around a central question: Is it time to develop a more robust, African continental framework for corridor development? This would not replace existing initiatives, but rather add a layer of consistency – shared criteria, common standards, and cross-border monitoring. 'Africa doesn't need to copy Europe,' Riembault said. 'But it can draw on key lessons that fit its context' The EU, he added, stands ready to support African partners in shaping corridors that are modern, multimodal and resilient. 'This is Africa's corridor moment, the continent can transform transport corridors into economic lifelines,' he concluded. Paul Riembault from the European Commission's Directorate-General for International Partnerships
IOL News
5 days ago
- Business
- IOL News
Corridors of Opportunity: Europe and Africa Pave the Way Together
Transport corridors are among the most powerful engines for economic transformation. Image: Supplied Transport corridors are among the most powerful engines for economic transformation. In Europe, every euro invested in the continent's Trans-European Transport Network has been estimated to return four euros in GDP. The same – or even greater - potential exists in Africa – if investments are focused and coordinated. That's according to Paul Riembault of the Directorate-General for International Partnerships (DG INTPA) at the European Commission. Speaking at the 43rd Southern African Transport Conference (SATC) on 10 July, Riembault explored how Africa could leverage the European Union's long and complex corridor development experience. He encouraged African institutions, planners and financiers to continue their coordinated approach to corridor development – and to consider Europe's successes as well as challenges in transforming fragmented infrastructure into the backbone of a thriving single market. 'Transport corridors are not just about roads and rails,' Riembault told delegates. 'They're about unlocking integration, intra-African trade, and regional prosperity.' A criteria-based approach to planning What sets Europe's TEN-T model apart is its data-driven, criteria-based approach. Corridors are not selected arbitrarily or through purely political negotiation. Instead, they are based on criteria or even hard data: e.g. ports handling more than 33 million tonnes of freight annually – corresponding to 1% of total EU freight -, cities with over one million inhabitants, capital cities and strategic industrial zones. These 'core nodes' anchor each multimodal corridor. 'In a Union of 27 Member States, it's natural that national interests may diverge,' Riembault said. 'Hence, a strong common framework serves as protection against shifting political priorities and pet projects ' Currently, TEN-T consists of nine multimodal corridors, supported by harmonised regulations in road safety, rail electrification, axle loads, rail signalling systems, and even ticketing interoperability. Infrastructure is just one layer – governance, standardisation and financing form the others. 'Without harmonisation, corridors become patchworks. We learned that the hard way in Europe. Interoperability should start from day one.' From fragmentation to connectivity Riembault outlined Europe's difficult past – a continent once divided by war, incompatible rail gauges, and isolated national railway systems. 'Europe's map was built to divide, not connect,' he noted. But from the wreckage of conflict came the political will to unite, and with that will came the need for infrastructure that reflected integration. Corridors in Europe, he explained, were not the starting point but the outcome of political alignment. The EU's single market project created the demand for connectivity, and the Trans-European Transport Network (TEN-T) emerged to meet that demand. Global Gateway: Investment approach in Africa Riembault's presentation also highlighted how the EU is applying the approach of concentrating investment through the Global Gateway initiative – the EU's global investment strategy, which prioritises energy, digital and transport infrastructure. Through Global Gateway, the EU has identified a shortlist of African corridors – aligned with African Union (AU) and Regional Economic Community (REC) priorities – where it is focusing its transport funding between 2021 and 2027. 'The goal is not to duplicate Africa's frameworks like the Programme for Infrastructure Development in Africa (PIDA) or the African Continental Free Trade Area (AfCFTA),' he said. 'The goal is to support them strategically and at scale.' More than €1.5 billion (about R30 billion) in grants have already been earmarked to African corridor development under the Global Gateway initiative, with many projects supported through blended financing that combines EU grants with loans and private capital. Among the flagship investments is the Maputo–Walvis Bay rail corridor, where upgrades in Mozambique are set to significantly boost freight capacity. In Dakar, a Bus Rapid Transit (BRT) system has been rolled out, featuring over 120 electric buses and dedicated lanes to enhance urban mobility and reduce emissions. Meanwhile, in Lagos, the OMI EKO water transport project should improve connectivity along the Abidjan–Lagos corridor by expanding ferry services and infrastructure to better serve the region's rapidly growing population. In addition to physical infrastructure, the EU is funding soft measures such as trade facilitation, customs reform, axle load regulations, and corridor governance frameworks. A call for a common framework The session, which brought together representatives and experts from the African Union Commission, Regional Economic Communities, the United Nations, the World Bank, and German cooperation, concluded with a vibrant discussion around a central question: Is it time to develop a more robust, African continental framework for corridor development? This would not replace existing initiatives, but rather add a layer of consistency – shared criteria, common standards, and cross-border monitoring. 'Africa doesn't need to copy Europe,' Riembault said. 'But it can draw on key lessons that fit its context' The EU, he added, stands ready to support African partners in shaping corridors that are modern, multimodal and resilient. 'This is Africa's corridor moment, the continent can transform transport corridors into economic lifelines,' he concluded. Paul Riembault from the European Commission's Directorate-General for International Partnerships
