Latest news with #AfCFTA
Russia Today
7 hours ago
- Business
- Russia Today
The US has just declared economic war on Africa. It will backfire
In April, US President Donald Trump implemented new tariff policies, imposing a maximum of 50% on goods entering America from African countries. They previously enjoyed free access benefits from the Africa Growth and Opportunity Act (AGOA), which, according to the Center for Global Development, used to provide sub-Saharan African countries with duty-free access to over 7,000 products. In 2023, the Office of the US Trade Representative reported that the US imported goods worth $9.7 billion under the AGOA, with South Africa ($14.0 billion), Nigeria ($5.7 billion), Ghana ($1.7 billion), Angola ($1.2 billion), and Cote d'Ivoire ($948 million) being Africa's biggest exporters. But with a 10% universal tariff now imposed on all African nations, experts believe the AGOA may have come to an end. However, the same experts also say Africa's market of 1.4 billion people can serve as the best response to external economic shocks caused by Trump's trade tariffs. Dr. Francis Owusu, a trade economist at the University of Ghana, notes that with the new tariffs, 'Trump not only made AGOA lame, but also prepared it for eventual death.' 'There is no way AGOA will be beneficial to African countries with the new tariffs in place. It makes no sense at all,' Dr. Owusu said. 'Trump's tariff policy rendered AGOA meaningless.' Dr. Owusu says that, instead of lamenting over Trump's tariff actions, African leaders must breathe life into the African Continental Free Trade Area (AfCFTA). 'What Africa needs is regional trade and economic resilience. With a population and market of over one billion people, African leaders must shift focus and use regional instruments like AfCFTA to build and insulate the continent's economy,' he told RT. According to the expert, by imposing new trade tariffs on African exports, 'Trump did Africa a big favor.' Launched in 2021, the AfCFTA boasts an estimated combined GDP of $3.4 trillion and a market of 1.4 billion people, making it the world's largest free trade area by number of participating countries. But despite the existence of the AfCFTA, intra-African trade remains below par. As of April 2025, it accounted for only 18% of total continental trade. According to Afreximbank's Africa Trade Report 2024, intra-African trade in 2023 was $192.2 billion, a 3.2% increase from the previous year. In the same year, the share of formal intra-African trade increased from 13.6% in 2022 to 14.9%. Projections by the UN Economic Commission show that a full implementation of the AfCFTA could push intra-African trade to 35% by 2045. Faith Atieno, a trade policy analyst with Kenya's Institute of Economic Affairs, argues that a lack of political will and trust among member states has hampered the full implementation of the AfCFTA. 'Africa must address existing structural barriers and disjointed customs regulations if it wants to realize its full trade potential,' Atieno told RT. She added that to unlock its dormant trade power, the continent should also invest in the enhancement of its industrial capacity and logistics infrastructure. 'For AfCFTA to succeed, Africa must start trading as a continent and invest in regional value chains. Member states must stop prioritizing trade deals with Europe and the US,' she said. According to Atieno, there is no reason why a country like Kenya cannot export its textiles and horticultural products to countries like Nigeria, Egypt, and Ghana. 'Why should African nations continue having trade barriers among themselves when they can all benefit from this ripe and huge market?' In the wake of Trump's actions, African countries are taking insulating measures. In Nigeria, the Export Promotion Council has already announced a new policy to ease bureaucratic barriers and enhance intra-African trade for its textiles, cocoa, and pharmaceutical products. Regarded as Africa's largest economy, Nigeria is among the member states that have lagged in the implementation of the AfCFTA. On the other hand, Ghana, through the Ghana Export Promotion Authority, is prioritizing intra-African trade in the implementation of the National Export Development Strategy, which aims to create a $25 billion export economy by 2029. Yodit Hailemariam, a development economist based in Addis Ababa, says Africa's trade and economic future rests in regional integration. 'As a continent, we have a promising future. Regional integration must now move from theory to reality. Regional blocs must start aligning their industrial and trade policies for intra-African trade to be effective and beneficial,' she told RT. 'For AfCFTA to succeed, we will need strong and powerful regional and continental value chains.' Afreximbank already has a $2 billion Intra-African Trade Resilience Fund to help exporters build continental logistics hubs to boost intra-continental trade. And with the African Union set to host an emergency trade summit in August 2025 in Nairobi to discuss unified responses to global trade shocks, Dr. Owusu says Trump's tariffs on African countries are a 'statement of economic freedom and independence for the continent.' A 2022 research report published by the World Bank Group forecasted that full implementation of the AfCFTA could lift at least 50 million Africans out of extreme poverty by 2035. Wamkele Mene, who heads the AfCFTA secretariat, says that to fully benefit from the protocol, member states need to focus on innovation and economic development, which requires the integration of government, industry, and academia to foster innovation and economic development. 'We urgently must address existing challenges to continental trade, enhance trade capabilities and develop sector-specific technologies,' Mene said. 'What we need are policies that promote intra-African trade and cooperation, tax incentives as a catalyst for propelling Africa towards greater economic integration.' Mene says that through the AfCFTA, Africa has a chance to accelerate the realization of the African Union Agenda 2030 goals and try to establish a sustainable economic foundation for future generations.
See - Sada Elbalad
10 hours ago
- Business
- See - Sada Elbalad
"Exploring the Uncharted Waters: Malaysian Palm Oil's Silent Entry into Egypt's Market Despite Strong Demand"
Mohamed Wadie By: SEE Editor-in-Chief Mohamed Wadie Malaysian palm oil, despite being a major global commodity and a key export product to Egypt, has not yet fully "gone public" or established a dominant direct presence in the Egyptian market in terms of local production or investment. Several factors explain this situation, rooted in economic, geopolitical, trade, and strategic considerations. Economic and Market Dynamics Egypt is a significant importer of palm oil, consuming about 1.2 million tonnes annually, with Malaysian palm oil accounting for over half of these imports. Palm oil is essential for Egyptian consumers due to its cost-effectiveness and wide use in cooking and processed foods, especially given Egypt's low consumer purchasing power amid high inflation. Despite this strong demand, Malaysian palm oil mainly enters Egypt as an imported commodity rather than through local production or public market presence. Trade Agreements and Market Access Currently, Malaysia and Egypt are negotiating a Free Trade Agreement (FTA) that aims to strengthen bilateral trade, with palm oil as a key pillar. Egypt already participates in several multilateral trade agreements such as GAFTA, AfCFTA, and COMESA, facilitating regional trade but also complicating direct Malaysian market entry strategies due to existing trade frameworks. These agreements offer opportunities for Malaysian palm oil to expand regionally via Egypt as a hub but do not yet translate into Malaysian palm oil companies going public or establishing major local operations in Egypt. Geopolitical and Regional Risks Regional geopolitical tensions, such as the conflict in Gaza and disruptions in the Red Sea, pose risks to trade flows but have not significantly deterred Malaysian palm oil exports to Egypt, which remain resilient. However, these risks may contribute to cautious investment approaches by Malaysian companies in establishing local public enterprises or manufacturing bases in Egypt. Investment and Collaboration Opportunities There is growing interest from Malaysian companies to invest in Egypt's palm oil sector, leveraging Egypt's strategic location and trade advantages like customs exemptions under AfCFTA. Discussions have involved Malaysian firms exploring joint ventures, technology transfer, and establishing refining or manufacturing facilities in Egypt to serve both local and regional markets. The Egyptian government supports such moves, offering investment incentives and aiming to develop Egypt as a regional hub for palm oil processing and re-export. However, these initiatives are still in exploratory or early stages, which explains why Malaysian palm oil has not yet "gone public" in the Egyptian market. Strategic Industry Considerations Malaysia's palm oil industry is focused on sustainability, certification (MSPO), and compliance with international environmental standards to maintain global market access. The Malaysian Palm Oil Council (MPOC) actively promotes Malaysian palm oil in Egypt through forums and regional offices, aiming to build trust and long-term partnerships rather than immediate public market entry. The industry strategy includes expanding into new markets in Africa and the Middle East while maintaining quality and sustainability credentials. Malaysian palm oil does not yet "go public" in the Egyptian market primarily because - The current trade relationship is heavily import-based rather than investment-based, with Malaysian palm oil entering Egypt mainly as a commodity. - Ongoing negotiations for a Free Trade Agreement and investment discussions indicate future potential but have not yet resulted in Malaysian companies establishing public entities or manufacturing bases in Egypt. - Geopolitical risks and regional instability encourage cautious investment. - Malaysia's strategic focus remains on sustainability, certification, and market diversification, with Egypt serving as a key import market and potential regional hub rather than a site for Malaysian public listings or local production. - Egypt's participation in multiple regional trade agreements creates a complex trade environment that Malaysian companies are navigating carefully. In conclusion, while Malaysian palm oil is a crucial import for Egypt and bilateral cooperation is deepening, the absence of Malaysian palm oil "going public" in Egypt reflects a strategic, economic, and geopolitical balancing act. The future may see greater Malaysian investment and local presence as trade agreements mature and market conditions stabilize, but for now, the relationship centers on trade and strategic partnership rather than public market entry. SeeNews Editor-in-Chief Mohamed Wadie during a visit to a palm oil farm in Malaysia Mr. Mohamed Wadie, Editor-in-Chief of Sada ElBalad English website (SEE) read more Analysis- Turkey Has 0 Regional Allies... Why? Analysis: Russia, Turkey... Libya in Return For Syria? Analysis: Who Will Gain Trump's Peace Plan Fruits? Analysis: Will Turkey's Erdogan Resort to Snap Election? Analysis: What Are Turkey's Aspirations in Iraq? Opinion & Analysis Analysis: Mercenaries In Libya... Who Should Be Blamed? 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Economic Times
16 hours ago
- Business
- Economic Times
CCI Worldwide Logistics introduces ‘Trans Africa' service with an estimated investment of 106 crore to enhance Intra-African Trade
TIL Creatives The services will be rolled out to key markets including Nigeria, Kenya, South Africa, Ghana, and Egypt, with rapid expansion into other countries like Francophone West Africa, Central Africa, and landlocked countries such as Uganda and Zambia. Mumbai– CCI Worldwide Logistics, a leading international freight forwarding vertical of CCI Group, announced the official launch of 'Trans Africa', a technology-led freight service designed to streamline cross-border logistics across the African continent. Backed by an investment of ₹106 crore, the initiative targets a significant boost in freight volumes with a projected 5,000 TEUs annually via air and sea transport, and an estimated 15% return on investment. With this launch, CCI Worldwide further strengthens its commitment to transforming Africa's trade landscape through innovation, connectivity, and scalable freight solutions. Why Africa needs a smarter freight solution According to a report by UNCTAD, trade between African countries makes up only 16% of the continent's total exports, showing a huge opportunity for growth. With the rollout of the African Continental Free Trade Area (AfCFTA), the region is expected to become a $3.4 trillion market. Whereas maritime trade is also projected to grow rapidly, from 58 million to 132 million tonnes by 2030. Therefore to support this growth, AfCFTA has launched an initiative to promote new digital solutions that can make cross-border trade faster, easier, and more efficient. However, it still remains untapped due to complex customs procedures, fragmented infrastructure, inflated costs, and limited shipment visibility. The lack of digital infrastructure has long impeded supply chain optimization and discouraged foreign investment. Building next era of African trade CCI Worldwide Logistics' 'Trans Africa' is CCI's vision of a more streamlined African trade landscape. Designed to significantly enhance export capabilities, it focuses on key commodities such as Pulses, Auto Spare Parts, Pharmaceuticals, and Automobiles. This service offers end-to-end logistics solutions, including door delivery across South, West, and East Africa, seamlessly connecting shippers, transporters, and customs agents across borders. This will also provide real-time visibility, streamlined operations, and diligent regulatory compliance from port to the final mile. Key features of Trans Africa: End-to-End Freight Management across ocean, air, road, and rail modes, with real-time tracking from pickup to delivery. AI-Powered Smart Routing & Carrier Matching to recommend optimal routes and pair clients with vetted regional transporters via a robust Customs Clearance with localized modules for over 20 African nations and API integrations with national customs systems (where available), minimizing paperwork and Visibility & Notifications via intuitive dashboards, keeping stakeholders informed at every Documentation & Compliance Tools to simplify trade operations and maintain transparency across Worldwide Logistics' Trans Africa launch phase will cover strategic markets including Nigeria, Kenya, South Africa, Ghana, and Egypt, with planned expansions into Francophone West Africa, Central Africa, and landlocked nations such as Uganda and Zambia. This phased approach supports CCI's long-term vision of building a resilient, digitally connected pan-African logistics sets Trans Africa apart is its broad pan-African reach combined with a nuanced understanding of local trade dynamics. The platform is supported by strategic partnerships at critical infrastructure hubs including ports, border posts, and regional trade blocs, ensuring smooth cross-border movement. Its mobile-first design makes the platform accessible even in low-bandwidth regions, extending its utility to a wider audience. With a commitment to transparent pricing, real-time performance metrics, and data-driven accountability, Trans Africa is built to foster long-term trust and efficiency for clients operating across diverse African Singh, Vice President - P&L, CCI Worldwide Logistics said, in a statement, "The launch of Trans Africa represents a significant milestone in our mission to empower trade across Africa. We're not just offering a service; we're providing a catalyst for growth, enabling seamless trade that will contribute to the continent's economic prosperity and connecting global economies.' He further added, 'CCI is poised to become the preferred logistics partner through 'Trans Africa' for a diverse range of clients, including importers, exporters, existing freight forwarders and 3PLs, e-commerce companies, and NGOs operating supply chain networks across the continent. By delivering unparalleled efficiency and transparency, CCI aims to bring a new dawn in intra-African and global trade."The platform's flexible revenue model encompasses per-shipment fees (based on mode and distance) and a suite of value-added services such as cargo insurance, warehousing solutions, and trade finance referrals.
Time of India
18 hours ago
- Business
- Time of India
CCI Worldwide Logistics introduces ‘Trans Africa' service with an estimated investment of 106 crore to enhance Intra-African Trade
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Rise 1. Trump's threat of more tariffs makes US trade partners wary of signing deals Mumbai– CCI Worldwide Logistics , a leading international freight forwarding vertical of CCI Group , announced the official launch of 'Trans Africa', a technology-led freight service designed to streamline cross-border logistics across the African by an investment of ₹106 crore, the initiative targets a significant boost in freight volumes with a projected 5,000 TEUs annually via air and sea transport, and an estimated 15% return on investment. With this launch, CCI Worldwide further strengthens its commitment to transforming Africa's trade landscape through innovation, connectivity, and scalable freight to a report by UNCTAD, trade between African countries makes up only 16% of the continent's total exports, showing a huge opportunity for growth. With the rollout of the African Continental Free Trade Area (AfCFTA), the region is expected to become a $3.4 trillion market. Whereas maritime trade is also projected to grow rapidly, from 58 million to 132 million tonnes by 2030. Therefore to support this growth, AfCFTA has launched an initiative to promote new digital solutions that can make cross-border trade faster, easier, and more efficient. However, it still remains untapped due to complex customs procedures, fragmented infrastructure, inflated costs, and limited shipment visibility. The lack of digital infrastructure has long impeded supply chain optimization and discouraged foreign Worldwide Logistics' 'Trans Africa' is CCI's vision of a more streamlined African trade landscape. Designed to significantly enhance export capabilities, it focuses on key commodities such as Pulses, Auto Spare Parts, Pharmaceuticals, and Automobiles. This service offers end-to-end logistics solutions, including door delivery across South, West, and East Africa, seamlessly connecting shippers, transporters, and customs agents across borders. This will also provide real-time visibility, streamlined operations, and diligent regulatory compliance from port to the final Freight Management across ocean, air, road, and rail modes, with real-time tracking from pickup to Smart Routing & Carrier Matching to recommend optimal routes and pair clients with vetted regional transporters via a robust Customs Clearance with localized modules for over 20 African nations and API integrations with national customs systems (where available), minimizing paperwork and Visibility & Notifications via intuitive dashboards, keeping stakeholders informed at every Documentation & Compliance Tools to simplify trade operations and maintain transparency across Worldwide Logistics' Trans Africa launch phase will cover strategic markets including Nigeria, Kenya, South Africa, Ghana, and Egypt, with planned expansions into Francophone West Africa, Central Africa, and landlocked nations such as Uganda and Zambia. This phased approach supports CCI's long-term vision of building a resilient, digitally connected pan-African logistics sets Trans Africa apart is its broad pan-African reach combined with a nuanced understanding of local trade dynamics. The platform is supported by strategic partnerships at critical infrastructure hubs including ports, border posts, and regional trade blocs, ensuring smooth cross-border movement. Its mobile-first design makes the platform accessible even in low-bandwidth regions, extending its utility to a wider audience. With a commitment to transparent pricing, real-time performance metrics, and data-driven accountability, Trans Africa is built to foster long-term trust and efficiency for clients operating across diverse African Singh, Vice President - Pundefined we're providing a catalyst for growth, enabling seamless trade that will contribute to the continent's economic prosperity and connecting global economies.' He further added, 'CCI is poised to become the preferred logistics partner through 'Trans Africa' for a diverse range of clients, including importers, exporters, existing freight forwarders and 3PLs, e-commerce companies, and NGOs operating supply chain networks across the continent. By delivering unparalleled efficiency and transparency, CCI aims to bring a new dawn in intra-African and global trade."The platform's flexible revenue model encompasses per-shipment fees (based on mode and distance) and a suite of value-added services such as cargo insurance, warehousing solutions, and trade finance referrals.
See - Sada Elbalad
19 hours ago
- Business
- See - Sada Elbalad
Afreximbank Projects Egypt's Economy to Grow by 3.8% in 2025
Taarek Refaat The African Export-Import Bank (Afreximbank) has projected Egypt's economy to grow by 3.8% in 2025, according to its 2025 African Trade Report, released during the bank's 32nd Annual Meetings in Abuja. The report, titled 'African Trade in a Changing Global Financial Landscape,' outlines cautious optimism for the continent's economic outlook. Regional Growth Momentum According to the report, Africa's overall economic growth is expected to accelerate to 4% in 2025, up from 3.2% in 2024, and potentially reaching 4.2% in 2026, despite mounting global economic uncertainty and structural challenges. Several key economies are set to contribute to this growth, including: -Egypt at 3.8% -Algeria at 3.5% -Ethiopia at 6.1% -Morocco at 3.9% Tanzania and Uganda, each projected at 6% The report attributes Africa's improved economic outlook to a combination of supportive factors. Chief among these is the rising global demand for African exports, which continues to strengthen the continent's trade performance and foreign exchange earnings. In parallel, inflationary pressures are easing in many African economies, helping to restore household purchasing power and stimulate private consumption. Additionally, favorable monetary policies across the continent are making credit and investment more accessible, particularly for businesses and infrastructure development. The report also highlights the positive impact of structural reforms being implemented in several countries, aimed at reducing reliance on primary commodities and fostering more diversified, resilient economic models. Despite these encouraging trends, the report warns that risks to the outlook remain tilted to the downside. Heightened geopolitical tensions, including regional conflicts and instability, pose a threat to investor confidence and cross-border cooperation. Moreover, the potential escalation of global trade disputes could undermine Africa's export growth and integration into international markets. Finally, rising uncertainty around fiscal and regulatory policies—both within Africa and among its key trading partners—may deter investment and complicate economic planning. Slowdowns in major economies such as China and the United States, which continue to dampen global financial conditions and reduce demand for African commodities The report highlights that the continued implementation of the African Continental Free Trade Area (AfCFTA) could mitigate external shocks by strengthening intra-African trade, investment flows, and regional integration, thereby boosting economic activity across the continent. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt 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 News Flights suspended at Port Sudan Airport after Drone Attacks Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream News Shell Unveils Cost-Cutting, LNG Growth Plan Technology 50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean
