Latest RSSThu, 07 Mar 2024 12:22:58 GMTDespite the growing number of women and youth entrepreneurs in Africa, they continue to face significant challenges that hinder their growth and success. A report by the African Development Bank in November 2023 highlighted some of the key barriers:Limited access to finance due to lack of collateral, credit history, and gender biasInadequate business skills and entrepreneurial training Lack of mentorship and networking opportunitiesSociocultural norms and gender stereotypes that limit women's participation in businessInsufficient access to markets and technologySuccess Stories: Women and Youth Entrepreneurs Making an ImpactDespite the challenges, there are numerous inspiring stories of women and youth entrepreneurs who are driving innovation, creating jobs, and making a positive impact in their communities. Here are a few examples:In January 2024, Ecobarter, a Nigerian startup founded by Oluwadamilola Soyombo, won the YouthADAPT Challenge for its innovative solution to combat urban flooding by transforming waste into value. The company collects and recycles plastic waste, which is then used to create eco-friendly paving tiles for flood-prone areas.Bleaglee Waste Management, a Cameroonian enterprise founded by Juveline Ngum Ngwa, is using drones and working with waste collectors to reduce waste and flood risk for urban communities. The company won the YouthADAPT Challenge in 2021 and has since expanded its operations.Kimplanter Seedlings and Nurseries Ltd., a Kenyan company founded by Carolyne Mwangi, is helping farmers adapt to climate change by providing a range of climate-resilient seedlings. The company won the YouthADAPT Challenge in 2021, which allowed it to expand its offerings and reach more farmers.These are just a few examples of the many women and youth entrepreneurs who are driving innovation and making a positive impact in Africa, despite the challenges they face.Government Initiatives to Support Women and Youth EntrepreneurshipAfrican governments a... Read more

]]>Thu, 07 Mar 2024 12:22:58 GMTIn January 2024, the Secretary-General of the AfCFTA announced that 24 new countries will join the seven already participating in the Guided Trade Initiative, the pilot phase of the free-trade project that began in October 2022. This expansion aims to boost intra-regional trade and act as a catalyst for industrialization and economic growth in Africa.The World Bank estimates that the AfCFTA could increase the continent's real income by up to 9% by 2035 if all policies under consideration regarding investment, e-commerce, and intellectual property are adopted. The free-trade agreement is also expected to make Africa more resilient to external shocks by increasing intra-regional trade and attracting more foreign direct investment (FDI).Challenges and Opportunities for Intra-African TradeThe AfCFTA, which commenced trading in January 2021, aims to create the world's largest free trade area with a potential market of 1.3 billion people and a combined GDP of $3.4 trillion. However, progress has been slower than expected due to various obstacles.The lack of logistics infrastructure, for one, remains a medium-term brake on African countries' ability to increase exports within the continent. Additionally, some argue that African economies do not complement each other well due to varying stages of economic development.African ministers meeting in Niger's capital Niamey in November 2023 also called for accelerating economic diversification, value addition, and structural transformation to boost intra-African trade. The United Nations Economic Commission for Africa (UNECA) also emphasised the need to increase regional trade to spur Africa's integrated development.On the upside, real progress has been made in reducing Africa's dependency on the rest of the world. The Pan-African Payment and Settlement System (PAPSS), launched in September 2021, allows cross-border transactions to avoid using third currencies, resulting in annual savings of USD 5 billion and faster transactions.... Read more

]]>Thu, 07 Mar 2024 12:11:40 GMTAfrica is on the cusp of an e-commerce boom, with the number of online shoppers projected to surpass 500 million by 2025, representing a steady 17% compound annual growth rate.This rapid adoption of digital commerce is being driven by increasing internet penetration, the ubiquity of mobile phones, and a young, tech-savvy population eager to embrace online shopping.Africa leads the world in mobile internet usage, with 69% of its web traffic coming from mobile devices in 2021 - 13% higher than the global average. This mobile-first environment is shaping the trajectory of e-commerce on the continent. Entrepreneurs are leveraging social media platforms like Facebook, Instagram and WhatsApp to reach customers, showcase products and facilitate sales.Local online marketplaces are also gaining prominence, catering to regional tastes and bridging the gap between sellers and consumers. However, challenges remain that are hindering the full potential of e-commerce in Africa.Barriers to E-Commerce AdoptionDespite the promising growth, Africa still lags other regions in e-commerce adoption. A study by Mobile for Development (M4D) highlighted several barriers:Poor internet connectivity and high data costsLow affordability of smartphonesLack of trust in online transactionsUnregulated online retail environmentInsufficient logistics and delivery solutionsPreference for cash payments over digital methodsThe study found that up to 97% of micro, small and medium enterprises (MSMEs) reported increased sales after adopting e-commerce, especially in Ghana and Kenya. However, most still prefer selling via social media rather than dedicated e-commerce platforms due to higher trust, flexibility and lower commissions.Experts argue that building trust through regulations on cybersecurity, data privacy and consumer protection is critical. Improving digital literacy among MSMEs and investing in logistics infrastructure are also key to unlocking Africa's e-commerce potential.New Regional Strategi... Read more

]]>Thu, 07 Mar 2024 11:18:59 GMTThe food security situation in Africa deteriorated significantly in 2021, with the continent having the highest prevalence of food insecurity globally. An estimated 322 million Africans faced severe food insecurity in 2021 - 21.5 million more than in 2020. The largest increases occurred in sub-Saharan Africa, particularly in Middle Africa. Northern Africa also saw a concerning rise in food insecurity levels from 2020 to 2021.Key drivers include climate shocks, conflict, economic downturns, and rising costs of food. The ongoing war in Ukraine has exacerbated the crisis by disrupting grain exports to Africa. With food prices remaining high, access to adequate food is increasingly out of reach for millions of households.Agribusiness Confidence Drops in South AfricaSentiment among South Africa's agricultural businesses slumped to its lowest level since the Covid-19 pandemic in the fourth quarter of 2023. An index compiled by the Agricultural Business Chamber (Agbiz) dropped to 40 points, down from 50 in the previous quarter. Port inefficiencies, poor road and rail infrastructure, and ongoing energy constraints weighed heavily on the outlook. This souring of confidence coincided with a surprise 7.4% quarter-on-quarter plunge in agricultural GDP in the second half of 2023, despite the broader economy managing to expand by 0.6% over the year. The sector faces massive challenges that are hindering its performance and dampening the business mood.World Bank Ramps Up Food Crisis Response To address rising food insecurity, the World Bank has significantly scaled up its support to countries across Africa through various programs and financing facilities. Major initiatives include:The $2.75 billion Food Systems Resilience Program for Eastern and Southern Africa, aiming to increase the resilience of the region's food systems. The $766 million West Africa Food Systems Resilience Program working to boost preparedness against food insecurity in the region.Multiple coun... Read more

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