Main Archives - Page 11 of 19 - AfricaBusiness.com

16Feb

By Pomy KetemaNo Comments

Main

AfCFTA is Now Operational: What to Expect in the First Few Months

by Pomy Ketema, Counsel, Baker McKenzie, New York The African Continental Free Trade Area (AfCFTA) is one of the largest trading blocs in the world with the majority of African countries now operating under its preferential trade framework. Trading under AfCFTA commenced on January 1, 2021 under a liberalized trade regime that would gradually lead to an integrated continental market with tariffs phased out on 97% of tariff lines within 10 to 13 years. AfCFTA covers both goods and services, and provides a platform for individual countries or regional economic communities (RECs), as applicable, to engage in intra-African trade, through offers of tariff concessions and service commitments with reciprocal most-favored-nation treatment. There is already a degree of liberalized trade and integra...

Deal making slows across Africa but post-pandemic opportunities look interesting

6Feb

By Africa BusinessNo Comments

Deal making slows across Africa but post-pandemic opportunities look interesting

Deal making activity in sub-Saharan Africa (SSA) dropped in the second half of 2020 (H2 2020), when compared to the second half of 2019 (H2 2019) and year-on-year, deals were also down in both volume and value compared to 2019. As the continent gears up for post-pandemic recovery in 2021, the opportunities presented by free trade across the continent, foreign investment opportunities due to new partnerships and trade relationships, as well as the post-pandemic focus on technology, healthcare and renewable energy, will be key factors in attracting valuable mergers and acquisition (M&A) activity to the region. Further, South Africa’s deal volume and value both dropped in 2020, with the industrials and healthcare sector attracting the biggest investments. Ghana stood out as a country that...

29Jan

By Africa BusinessNo Comments

Egypt News, Ghana News, Kenya News, Main, Mauritius News, Nigeria News, South Africa News

African dealmaking decreases, the Africa’s Free Trade Agreement expected to boost recovery

Dealmaking activity in sub-Saharan Africa (SSA) dropped in the second half of 2020 (H2 2020), when compared to the second half of 2019 (H2 2019) and year-on-year, deals were also down in both volume and value when compared to 2019. According to Baker McKenzie’s analysis of Refinitiv data, M&A transactions dropped in SSA in H2 2020, down 4% compared to H2 2019 with 329 deals in the period. Deal value fell by 17% to USD8.9 billion in the second half of 2020, compared to the same period in 2019. For the full year 2020, transactions dropped by 8%, with 625 deals in 2020, and deal value dropped by 33%, with deals valued at USD17.4 billion in total for 2020. However, as Africa gears up for its post-pandemic recovery, it appears that the opportunities presented by the recent launch of fr...

It’s Time to Rethink Licensing Rounds: For Africa’s Oil- and Gas-Producing Countries, Negotiating the Current Environment May Require…Negotiation

18Jan

By NJ AyukNo Comments

Energy, Main

It’s Time to Rethink Licensing Rounds: For Africa’s Oil- and Gas-Producing Countries, Negotiating the Current Environment May Require…Negotiation

In late 2019, as the African oil and gas industry was looking to the future with optimism, an Offshore Engineer wrote that the continent had reason to expect a “more productive 2020.” Instead, the unforeseen happened, and the COVID-19 pandemic had a devastating impact on the oil and gas industry in Africa and around the world. But even at the end of last year, during a fairly strong period for oil and gas, the publication mentioned that “delays and hiccups” were impacting licensing rounds — that is, the processes by which investors can seek oil and gas exploration licenses from the government – and argued that improvements would have to be made going forward. This is correct. Licensing process improvements were already needed in late 2019, and now that the oil and gas industry is in the su...

Five Tech Megatrends that can Transform African economies in 2021 and beyond

15Jan

By Richard LiNo Comments

African News, Agriculture, Fintech, Main, Medicine

Five Tech Megatrends that can Transform African economies in 2021 and beyond

The world has been experiencing massive digital disruption with the relentless rollout and adoption of disruptive and innovative technologies. Embracing digital disruption is daunting, since it is extremely unsettling with the rapid change brought about within societies and the severe impact on unskilled labor. Even if the African continent will not be spared by digital disruption, Africa cannot afford to be left out of these global technology (Tech) trends. If technology is wisely implemented, developing African countries are able to hop on the digital bandwagon to rapidly undergo a digital revolution that can boost their respective economies. While disruptive technologies like artificial intelligence, additive manufacturing, augmented and virtual reality, and others are becoming more and...

14Jan

By NJ AyukNo Comments

Main, Mozambique News

Ending Violence in Mozambique Will Require United Effort; African Energy Chamber Stands Ready to Assist

I won’t sugarcoat it: The situation in Mozambique’s northern Cabo Delgado province is dire. Armed conflicts between security forces and the militant Islamic group, Ahlu Sunnah Wa-Jamo (ASWJ), known locally as “al-Shabab” even though it has no connections to the Somali group with that name, have left dozens of people dead and displaced thousands since last fall. The violence is not new: The insurgents have been mounting brutal attacks within Cabo Delgado since 2017. Some argue that these brutal incidents are a response to poverty and feelings of marginalization among the residents of the province. Others claim ASWJ is motivated by a desire to control the region’s vast natural gas and mineral resources. Government leaders have blamed global jihadism. Any certainly, many of these factors hav...

5Jan

By Jude KearneyNo Comments

Energy, Main

What the U.S. Political Transition Might Mean for Africa Generally and Its Oil and Gas Sector in Particular

2021 could be the beginning of a much needed reset for US relations with Africa and its various countries and regions. To date, most African governments have responded positively to the results of the recent U.S. presidential election, with many African leaders offering their congratulations to Joe Biden. That is no surprise: Donald Trump’s presidency has been, at best, a mixed bag for Africa and Africans. President Trump’s Africa Legacy Unfortunately for Donald Trump, his widely reported use of profane and vile language in a closed door meeting to describe African and other developing countries is now viewed by many, including most Africans, as clear evidence that he is uninterested in any meaningful or supportive relationship with Africa. While I accept it as fact that such derogation ...

18Dec

By Virusha SubbanNo Comments

Main

The US approach to Africa under Biden

By Virusha Subban, Partner specialising in Customs and Trade at Baker McKenzie in Johannesburg The United States (US) President Elect Joe Biden and his new administration are expected to take a multilateral approach to foreign policy, easing tensions and increasing engagement with allies. Trade issues are also expected to be a top priority for the Biden administration and under Biden, US engagement with African countries will likely focus on strengthening relationships in a strategic, co-operative way. Biden is also likely to continue with successful bipartisan programmes implemented by his predecessors, as well as encourage US trade and investment in the continent. This bodes well for US-Africa trade and the US position as a key trading partnership for African countries. During his electi...

1Dec

By Manqoba KhumaloNo Comments

Kingdom of Eswatini News, Main

Eswatini gears up to become a private sector-led economy

By Manqoba Khumalo, Minister of Commerce, Industry and Trade in Eswatini The Kingdom of Eswatini is gearing up to becoming a private sector-led economy committed to economic reform and determined to recover from the devastating effects of COVID-19. Before the global pandemic, the Kingdom of Eswatini was already experiencing key economic challenges characterised by sluggish growth and a budget deficit. The advent of the global pandemic further exacerbated an already fragile economic situation and added another dimension to the fiscal crisis, which demanded a differentiated and rapid approach. To save the economy and the livelihoods of the people of Eswatini, we devised a post-COVID-19 recovery plan earmarking the private sector as the new main driver of employment in the country. The logic ...

27Nov

By Wildu du PlessisNo Comments

Main, South Africa News

Environmental, Social and Governance takes centre stage in a post-pandemic Africa

By Wildu du Plessis, Head of Africa, Baker McKenzie As African businesses begin to recover and build the necessary resilience to successfully navigate COVID-19 disruption, a focus on Environmental Social and Governance (ESG) strategies is proving essential for long-term success. In order to stay competitive, organisations based in Africa are engaging meaningfully with ESG to build robust sustainability strategies that comply with global and local mandatory and voluntary ESG standards and codes, and which fit in with their overall strategic priorities. The definition of Environmental, Social and Governance (ESG) encompasses a broad range of issues across the spectrum of Environmental (climate change, biodiversity, waste, water and resource use, pollution), Social (human rights, labour pract...