News type: Africa Bulletin

Africa has traditionally relied on litigation for dispute resolution, but there is a growing trend toward the use of alternative mechanisms such as arbitration and mediation. Notably, South Africa, Kenya, Nigeria, Egypt, and Rwanda have established arbitration centres, with Cairo and Johannesburg being recognised as the most popular arbitral seats on the continent, according to a 2020 survey conducted by SOAS University of London.

Africa
African Fintech Markets to Hit USD 65 Billion in Six Years
With possible increases in the levels of work, investments, and policies, Africa’s fintech market is expected to see massive growth in another six years, taking it to USD 65 billion. By 2030, Africa’s fintech revenue is projected to see a compound yearly growth rate of 32 percent. Then, the African fintech market will be worth around USD 65 billion, according to a recent report by Boston Consulting Group (BCG) and QED Investors. The report found that South Africa, Nigeria, Kenya and Egypt lead the fintech race in Africa.

This is partly due to a lack of legacy infrastructure holding these countries back from exploring new financial ecosystems to serve under-banked and unbanked citizens. Less than 500 million people in Africa are unbanked, whereas just over 410 million are underbanked. Caio Anteghini, partner at BCG Johannesburg, said: “Fintech could be the vehicle to solve the access issue, with smartphones presenting major opportunities in payments and lending for regional champions with full-stack attacker models.” BCG explained that Africa is currently winning the growth race for fintech, with a predicted 13 times growth to be achieved by 2030. The continent is followed by Latin America, with a 12.5 times growth rate.

Source: The Guardian

As The African Continental Free Trade Area (AfCFTA) advances through various negotiation phases, several stakeholders have introduced operational tools to facilitate its implementation. One of these tools is the Pan-African Payment and Settlement System (PAPSS), which aims to play a key role in unlocking trade with AfCFTA. PAPSS, which hopes to achieve full Central Bank participation by year-end, recently welcomed the Central Bank of Kenya, making it the tenth African Central Bank to join the platform.

“PAPSS stands at the forefront of African trade, linking nations and central banks, eliminating barriers with instant payments in local currencies. As it expands its network, it plays a pivotal role in the realisation of The African Continental Free Trade Area (AfCFTA), fostering financial integration and efficiency across the continent.” – Tonye Krukrubo SAN, Partner, Aluko & Oyebode (ALN firm in Nigeria)

Africa
World Bank to Allocate USD 5 Billion to Provide Electricity for 100 Million Africans
The World Bank has announced that it has concluded plans to allocate USD 5 billion to bring electricity to 100 million people in Africa by the end of the decade (2030). This was made known by the President of the World Bank, Ajay Banga, while delivering his speech at the mid-term review of the International Development Association (IDA)’s USD 93 billion replenishment package in Zanzibar, Tanzania.
Banga highlighted the ambition as an example of how he plans to wield funds from the bank’s IDA, which provides zero- or low-interest loans to low-income countries, and why donor countries need to provide support. The current, 20th IDA funding round is due to be completed on 30 June 30, 2025, with the Zanzibar conference aimed at adding to that funding. Banga used to launch his campaign for the subsequent round of funding to exceed USD 93 billion.

Source: Nairametrics

Global plastic pollution remains unabated, with recent UNCTAD figures revealing global plastic trade hitting a record USD 1.2 trillion in 2022.Despite increased awareness and environmental campaigning, a recent report highlights a record 139 million metric tons of single-use plastic waste in 2021 – a 6 million metric ton increase from 2019.

Africa
Africa’s Food and Agribusiness Sector to Hit USD 1 Trillion by 2030
The African Development Bank (AfDB) has stated that Africa’s food and agribusiness sector is estimated to hit USD 1 trillion by 2030. The AfDB said this would present a significant opportunity for businesses to invest in the sector and for smallholder farmers to meet the growing demand for food on the continent. The AfDB President, Dr Akinwumi Adesina, stated this at the World Food Prize Foundation’s Norman E Borlaug dialogue in Des Moines, Iowa, United States of America.

Akinwumi said several world leaders are actively bolstering Africa’s food production and security. According to him, the move is apt considering the global population is expected to reach nine billion, which he said would create a pressing need for Africa to increase its agricultural productivity to meet the rising demands for food on the continent.

Source: This Day

In the face of climate change, a green revolution is sweeping the globe and across the African continent in the form of e-mobility. E-mobility, encompassing electric vehicles (EVs), e-bikes, and electric public transportation, is transforming the way Africans move, emerging as a powerful tool for both sustainable development and environmental preservation.

Africa

South Africa, Nigeria, Egypt Top Globally for Investment Migration
Africa is continuing its trajectory as a growth market for residence and citizenship by investment programs, with a 46 percent increase in enquiries in 2022, according to the Africa Wealth Report 2023. The report, published by Henley & Partners, highlights that South Africa, Nigeria, Egypt, and Algeria were among the top 20 nationalities in enquiries received last year for investment migration.

The Henley Global Citizens Report Q3 2022 revealed that South Africa and Nigeria were in the top 10 countries globally in terms of applications in 2022, and other African countries generating high levels of applications were Algeria, Egypt, Ghana, Kenya, Morocco, and Uganda.

“Africa’s wealthiest countries have the highest number of applicants on the continent for residence and citizenship by investment programs,” Weyinmi Oritsejafor, IMCM – Client Advisor, Henley & Partners UK, told Business Insider Africa. “This gives credence to the fact that affluent African investors are looking to protect their wealth but also significantly enhance their prosperity, enabling them to leave a greater legacy for future generations,” she added

Source: Business Insider Africa

Tackling climate change is of vital importance for Africa. The nature of the fight against climate change is complex and can come at a cost. As Africa, we must be innovative and imagine creative climate-friendly ways African economies can continue to blossom. One non-negotiable element towards realising this goal will have to be much more substantial and sustainable financing than it is today.

Africa

Afreximbank to Increase Intra-African Trade Funding to USD 40 Billion by 2026
African Export and Import Bank (Afreximbank) has disclosed plans to double its financing for intra-African trade to USD 40 billion on a revolving basis by 2026, up from USD 20 billion in 2021. At the Nigeria Intra African Trade Fair (IATF) 2023 High Level Business Road Show in Lagos, Executive Vice President, Intra-African Trade Bank, Kanayo Awani, said Afreximbank was working with the AfCFTA Secretariat to put in place the AfCFTA Adjustment Fund to facilitate and provide support through financing, technical assistance, grant and compensation to state parties and private enterprises to effectively participate in the AfCFTA. She said AfCFTA has been signed by 54 of the 55 AU member states and ratified by 47 African State parties. According to her, the board of Afreximbank has approved USD 1 billion to support the funding of the initiative and another USD 10 million grant to facilitate the establishment and operationalisation of the adjustment fund. Awoni stated that although AfCFTA is expected to serve as the bedrock for deeper economic integration and economic emancipation, it would pave the way for increased investment in productive sectors, enhance trade linkages between African member states and drive the continent’s structural transformation.

Source: The Guardian