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Kenya - Economy continues to rise
19 September 2010 | By John David
NAIROBI, KENYA - Bright prospects are beckoning Kenya's economy, whose turn around is expected to record a double pace growth this year.
Experts say growth prospects remain firm and are projecting a 4.5 percent growth up from the 2.5 percent figure recorded in 2008. The forecasts are based on positive trends being witnessed among key economic segments.
"Increased foreign investments , good rainfall and radical reforms in key socio-political and economic realms are a sure mix to drive meaningful economic growth," Investment Banker, Renaissance Capital says in its economic outlook 0f 2010.
Interestingly, the projections match those released by the government in February, by President Mwai Kibaki when he addressed the fourth opening of the tenth parliament. Good rainfall that is currently being received across the country will result in good agricultural yields, while ongoing investments are injecting direct foreign capital into the economy as major reforms shake up governance. This will un turn restore the country's goodwill and confidence among strategic trading partners, the bank observes.
"The economy is buoyant as a result of increased inflows which are largely traced to these factors. What must be done is to ensure sustainability through concerted efforts if these pace is to be maintained," Patrick Mweheire, Renaissance Capital Kenya, Chief Executive Officer said.
Kenya's stuttering economic growth has been a causing a nightmare to its citizens and investors alike, who will certainly be assuaged by this projections. The economy has shown resilience from the effects of the debilitating 2007/8 post election rukus which pushed it to the precipice.
Tanzania - Economy seen expanding 6.8 pct in 2011
17 August 2010 | By Fumbuka Ng'wanakilala
Tanzania's economy should grow 6.3 percent this year and 6.8 percent in 2011, thanks to robust activity in all sectors, while inflation will stay in single digits through to 2011, a Reuters poll of nine economists showed.
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A previous poll in March had projected economic growth of a median of 5.1 percent in 2010.
The East African economy mainly depends on tourism, mining and agriculture and is increasingly attracting more investors worldwide interest in telecommunications, energy, manufacturing, agriculture, medical, financial services and transport.
The International Monetary Fund sees Tanzania's economy growing 6.7 percent in 2011, compared with an estimated 6.2 percent this year. It expects growth to accelerate to 7.5 percent by 2012/13.
"Our core view is for strong economic growth given the fact that Tanzania's relatively stable political climate and abundant natural resources should see foreign private sector investment continue to flow in," said Matthew Searle of Business Monitor International. |
South Africa - Africa open for business - Zuma
25 June 2010 | By BuaNews
President Jacob Zuma has declared to world leaders that Africa is open for business.
Addressing the G20 business leaders in Toronto yesterday on the eve of the G8 and G20 Summits, Zuma said Africa can no longer be viewed only as a destination for development aid.
| He said together with the developed world, there must be ways to promote stronger and more effective international partnerships for growth and development.
Zuma says African leaders do not want to create the impression that they have come cap-in-hand to ask for favours.
"We reiterate that Africa is open for business. It is open for trade and investment." Zuma said Africa's recent economic success is "proving Afro-pessimists wrong."
Sub-Saharan Africa's growth rate is only surpassed by China and India. Zuma attributed this to good policies and regulations, business rescue programmes, job retention schemes and huge infrastructure programmes."There is every expectation that Africa's current pace of growth will remain at a high level, at around six percent per year," he said, also calling for fair trade. "Our movement forward will be greatly enhanced by the speeding up of economic reforms to enable more inclusive and faster growth," he said.
He emphasised that changes in both the voting structure and leadership of the International Monetary Fund (IMF) and World Bank will be crucial in ensuring a more stable and equitable financial infrastructure.
"The developing world has an equal right to run these institutions," said Zuma. |
 South African President Jacob Zuma and his daughter Phumzile arrive in Canada to attend the G8 and G20 Summits |
Reform of global financial systems will be a priority issue for many G20 members; China, India, and Brazil who will join South Africa in arguing that their economic strength needs to be better reflected in the architecture of major institutions
Africa - Trade with China increases
14 September 2010 | By AfDB
African trade with China is growing while its imports and exports with other major global markets are either flat or on the decline, according to a new report from the African Development Bank (AfDB). The Africa-China trade represents more than 10 per cent of the continent’s trade. In value terms, it represents between $114 billion and $52 billion in exports and $62 billion in imports.
Chinese investments have increased yearly by an average of 46 per cent over the last decade, mainly targeted to water, transport, electricity and information and communication technologies. Analysts say that the reasons for the increase stems from China‘s global economic strategy, shaped by its political objectives and its demand for energy, minerals and other resources.
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In the last decade, the African exports to China almost doubled, from almost five per cent in 2000 of total exports to 10 percent in 2007. This increase has been the most significant increase among the major trade blocs that Africa trades with –Europe, Asia (excluding China), the United States and Japan.
Some 70 per cent of Chinese imports originate from four African countries:
The high concentration of China-Africa trade manifests itself not just by country, but also by sector. Approximately 70 per cent of African exports to China consist of crude oil –in particular from Angola and Sudan—and 15 per cent of raw materials. Agricultural products from other African countries have only a modest share.
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“The strong demand from China has been a boom for Africa’s exporters. But it also led to a further concentration in the export basket of countries on the continent and, hence, exposes them to volatility in world commodity markets,”
says Dr Léonce Ndikumana, the director of Research at the AfDB.
ECA to train experts on how to achieve macroeconomic policy convergence in East and North Africa
27 September 2010 | By East Africa Business Community
ECA to train experts on how to achieve macroeconomic policy convergence in East and North Africa. About 40 experts from various ministries of finance and planning; Central Banks, and regional economic communities (RECs) in North and East Africa will participate in a four-day workshop on how to enhance the capacity of African countries to achieve macroeconomic policy convergence which opens today in Cairo. The workshop is in the context of the continued work of the Economic Commission for Africa (ECA) in developing the capacity of African policy makers, RECs and research communities, to design, implement and monitor sound macroeconomic policies and better institutional frameworks.
ECA’s Economic Development and NEPAD Division (EDND) which organized the workshop, said in a statement today that the training would enhance the capacity of African policymakers to design and implement macroeconomic policies that promote high, stable and pro-poor growth as well as regional macroeconomic convergence. It will also facilitate the exchange of experiences on how to design and implement such polices. Participants will review various schools of thought in macroeconomic analysis and learn various fiscal and monetary policy tools applicable in an open economy.
They will explore the theoretical foundations and empirical evidence of macroeconomic convergence and examine the relationship between macroeconomic stability and economic growth as well as between nominal and real convergence.
Two policy studies have been prepared to assess the state of macroeconomic convergence and its importance for accelerated and sustained pro-poor growth in East and North Africa and to highlight regional and country-specific experiences as well as key constraints to enhancing macroeconomic convergence in the sub-regions. The studies provide recommendations oh how to most effectively transmit lessons learnt and issues identified to policy makers. They will provide an analytical foundation for the training materials which will be used at the workshop. EDND says the training will enhance the sharing of national and regional experiences while identifying key constraints and factors underlying macroeconomic convergence and guiding policymaker’s choices to design and implement strategies in favor of East and North African populations.
Kenya - Say No to Counterfeits
7 October 2010 | ByAllAfrica
Nairobi — Trade in counterfeits and sub-standard goods will kill industry and innovation unless governments show more courage to tackle it. Kenya, which is particularly vulnerable because of its huge market, had a real chance when the anti-counterfeits law was passed last year, but the law is yet to be implemented. In the meantime, local manufacturers continue to lose out to fakes -- Sh40 billion annually, they say, or 30 per cent of their revenues. This takes away 27 per cent of jobs from the economy. The government, too, loses in tax revenue.
Counterfeits also pose a major threat to consumer health and safety because counterfeiters target popular products like alcoholic drinks, cigarettes, juices, toothpastes, soaps and dry cells. The regional anti-illicit trade meeting that ended yesterday in Nairobi added to the urgency. The worry is that the East African Common Market has just expanded the playground for illicit traders. To win this war, the region's governments must jointly streamline and strengthen anti-counterfeiting laws. Kenya should lead the way. EAC member states also need to increase funding to the fight against illicit trade. They, too, need to prove that they are willing to fight by bringing culprits to book in their jurisdictions. |
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South Africa committed to intra-Africa trade
6 October 2010 | By Mariaan Webb
South Africa would continue to be an important source of new foreign investment in Africa, Trade and Industry Minister Rob Davies said. Speaking at a Doing Business with Botswana forum, in Centurion, Davies reiterated South Africa's commitment to contributing to the development of Africa. "We believe that South Africa's economy and the economies of our neighbours are interdependent and that our development can only be sustainable if we cooperate for mutual benefit with all our neighbours. South Africa is thus committed to utilising its technology, technical expertise and private sector capabilities to make a direct and meaningful contribution towards regional integration, economic growth and poverty alleviation on the continent," he stated. The Minister said that most African countries had the potential to develop into modern industrialised states, but only if investments were extractive and had a sustainable developmental impact.
"Major infrastructure projects such as [the] Mmamabula power project and the Trans Kalahari Railway line (TKR) can unlock economic development. They can also raise consumer expectations, and encourage local producers to improve competitiveness. Developmental approaches to private procurement can also be an important driver of local business development," noted Davies. Meanwhile, Botswana President Ian Khama, who is on a two-day State visit to South Africa, urged business people from both countries to discuss economic opportunities that could benefit the citizens of South Africa and Botswana.
Computer technology number one in boosting EAC development - Kamala
4 October 2010 | By Domnic Nkolimwa
The East Africa Ministerial Council chairperson, Dr Diodorus Kamala, has said computer technology has helped a great deal in boosting the region’s economic, social and political development. Speaking on Friday at the signing of a joint venture between Dell and Mitsumi Group, he said the regional economy was now moving forward faster because of the technological advancement, adding that the computer technology was number one in bringing about this change.
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He said his office was facing one challenge on the East Africa Common market, which he said was to control the counterfeit computers polluting the regional market. Dr Kamala said, although the East African Community had introduced non tariff barriers to products manufactured by regional members that did not mean that the market was free to receive even counterfeits.
Also Dr Kamala advised Dell and Mitsumi Group to invest in research in higher learning institutions so they could establish any impacts associated with the use of the technology in the day to day production activities. “We need to know how the computer technology has affected our development, and the negative impacts associated with it, if any,” he said.
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Meanwhile, the Dell and The Mitsumi Group joint venture will soon starts to work with the government in introducing computers in schools. For his part, Mitsumi Group director Mitesh Shah said at the signing of the joint venture that his group is preparing to work with the government in the world bank project aimed at providing computers to schools.
He said his firm has already provided one million laptops to schools in Kenya. “We own about 20 per cent of the market share in this joint venture, and we provide services in a number of African countries, including Tanzania” said Shah. He said in the entered joint venture the company is expected to invest about USD20m will also provide various opportunities to the people in Tanzania. Besides, Shah said Dell has spread its wings in sub Saharan Africa by announcing Mitsumi Group as its official distributors for Dell products in Tanzania. “The distribution includes the entire Dell products ranging from commercial as well as consumer products, accessories and peripherals” Shah said.
Tanzania - Tap opportunities created by Turkish investors - TIC
2 October 2010 | By Gaurdian
Tanzania Investment Centre (TIC) has called on entrepreneurs in the country to be aggressive in tapping opportunities unveiled by Turkish investors, who have shown keen interests in Tanzania. The remark was made on Thursday by TIC Finance Manager, Beatrice Chongo during the official launching of the second Turkish exhibition held at Diamond Jubilee Hall in Dar es Salaam.
She said the gesture of travelling all the way to Tanzania for the business exhibition shows the Turkish commitment to engage in business with the country. She said trade fairs were important in forging new partnership and stimulating business development.
| She explained that the Turkish investors will set up manufacturing projects, thus create job opportunities to Tanzanians and subsequently boost up individuals and the national income. We need to work hand in hand with the Turkish businessmen, and this will increase job opportunities, which is a problem for many Tanzanians, she noted. She added that having a good relationship with Turkish investors has created good environment for Tanzanian entrepreneurs, by exposing them to investment,business skills and knowledge.
Meanwhile, the Turkish Ambassador to Tanzania, Sander Gurbuz has expressed his gratitude to Tanzanian for their participation in the trade fair, which he said was a good forum for the development of bothcountries. He promised to invite other foreign investors to Tanzania.
Gurbuz said 30 Turkish companies are participating in the exhibition, displaying various products-textiles, telecommunications, construction, agricultural machines, cosmetics, prefabricated buildings, steel structures, living containers, bee-keeping products and water dispensers. |
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Other products include cooling units, flake ice machine, cold room, shock unit, baby diapers, monograde and multigrade engine oils, fuel treatment additives, food, high density electric cables, energy transfer lines, PVC insulated cables, plastic house wares, PVC pipes and fittings, outdoor furniture, synthetic grass carpet (artificial turf), diesel engine generator, brush cutter and water pump generators. The Turkish government is offering between 35 and 45 scholarships to Tanzanian students for high school and university, studies every year. The Ambassador also said Turkey was planning to invite Tanzanian business community to visit the country to share ideas, products, technologies and establish a business forum with East Africa Community (EAC).
Port Attracts Investors in Kenya
September 2010 | By Africa Report
The announcement of the tenders has renewed investors interest in the island. The port to be constructed in the coastal town of Lamu, will have a transport corridor to link the port with Ethiopia and south Sudan as part of the Lamu Port-Southern Sudan-Ethiopia Transport (Lapsset) Corridor.
The Lappset project will comprise the Lamu Port and Manda Bay, an oil refinery at Lamu, a railway line to Juba which handles trains moving at 160 kph, oil pipelines to Southern Sudan and Ethiopia, three airports and three resort cities at Lamu, Isiolo and Lake Turkana shores.
The first phase of the major infrastructural development will include construction of three berths to accommodate 100 000-dwt (deadweight tonnes) container ships, 30 000-dwt general cargo ships and 100 000-dwt bulk cargo carriers. The port will have a total of 22 berths with a quay that will lie on 1,000 acres of land and is expected to make Kenya a transshipment hub due to its deep waters and ability to accommodate large vessels.
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According to Mwenda Thuranira the Director of Myspace Properties, a real estate firm in Mombasa, the announcement of the tenders has spurred speculative buying of land in Lamu. Thuranira says Lamu which has a high population of Britons is expected to attract more foreigners investing in holiday homes and luxury properties in anticipation for cruise ships tourism. Currently most tourist hotels in Manda Island charge 600 US dollars per night. “The price of land has appreciated and we expected a further rise after yesterday’s announcement. One acre of land previously sold for 1240 (US$), currently it is selling for 12 402 (US$),” says Thuranira, he says speculative buying will thrive based on the impact of Mombasa port to prices of land adjacent to it. For example land in Changamwe, which is adjacent to the Mombasa port, sells at 310 055 (US$) per acre. Thuranira also speculates that real estate agents will flock to the island for prospects of a highly lucrative business. Among the sectors expected to be positively influenced by the port construction include agriculture, tourism, real estate and manufacturing sectors. The construction of access roads, railway sidings, warehouses and other buildings at Lamu’s Manda Bay is expected to further boost infrastructure. |