A NEW DAWN FOR AFRICA - FREE TRADE AREA - Youth: 'Not Too Young To Run' campaign gains momentum - the United Nations
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August - November 2018 www.un.org/africarenewal
FREE TRADE AREA
A NEW DAWN FOR AFRICA
Youth: ‘Not Too Young To Run’
campaign gains momentum
Female-led tech
startups on the rise
Special focus on the Sahel:
opportunities & challenges
CONTENTS August - November 2018 | Vol. 32 No. 2
3 SPECIAL FEATURE
COVER STORY
Africa set for a massive free trade area
6 Interview: Dr. Mukhisa Kituyi, UNCTAD Secretary-General
8 Southern African trader: one stop border post will boast trading “Education is the most powerful
9 West African traders: infrastructure key to intra-African trade weapon which you can use to
change the world.” Nelson Mandela
10 Trading while caring for people and planet
ALSO IN THIS ISSUE
12 Africa-made luxury loungewear takes on big brands
14 China’s ‘Little Africa’ losing its allure Acting Editor-in-Chief
16 Interview: Prof. Eddy Maloka, CEO of the APRM Zipporah Musau
18 The state of African elections in 2018 Acting Managing Editor
20 Youth: getting ready for public office Kingsley Ighobor
22 World Cup: lessons from Russia
Staff Writers
24 Strengthening bonds in the Sahel Franck Kuwonu
26 Interview: Ibrahim Thiaw, special adviser for the Sahel Sharon Birch-Jeffrey
28 Confronting sexual violence in schools
Research & Media Liaison
29 UN calls on countries to stand against genocide Pavithra Rao
30 What future for commercial nuclear power in Africa?
Design & Production
32 Gender: women tech entrepreneurs break barriers
Paddy D. Ilos, II
DEPARTMENTS Administration
Pavithra Rao
35 UN Appointments
Distribution
Khalid Halloumi
Cover photo: Graphic depicting trade in Africa.
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2 AfricaRenewal August - November 2018
Following the unveiling of the African Continental Free Trade Agreement in Kigali, Rwanda,
in March 2018, Africa is about to become the world’s largest free trade area: 55 countries
merging into a single market of 1.2 billion people with a combined GDP of $2.5 trillion. In
this edition, we examine the benefits and challenges of a free trade area for countries and
individual traders.
FREE TRADE AREA
Africa set for a massive free trade area
Experts say the African Continental Free Trade Agreement is a game changer
BY KINGSLEY IGHOBOR
T
he shelves of Choithrams Super- countries in Kigali, Rwanda, in March 2018, (From left) African Union chairperson and
market in Freetown, Sierra Leone, is meant to create a tariff-free continent president of Rwanda Paul Kagame, president of
boast a plethora of imported prod- that can grow local businesses, boost intra- Niger Mahamadou Issoufou and African Union
ucts, including toothpicks from African trade, rev up industrialization and Commission chairperson Moussa Faki Mahamat
China, toilet paper and milk from Holland, create jobs. at the launch of AfCFTA in Kigali in March 2018.
sugar from France, chocolates from Swit- The agreement creates a single conti- Office of President Paul Kagame
zerland and matchboxes from Sweden. nental market for goods and services as well
Yet many of these products are pro- as a customs union with free movement of
duced much closer—in Ghana, Morocco, capital and business travellers. Countries The ECA adds that intra-African trade
Nigeria, South Africa, and other African joining AfCFTA must commit to removing is likely to increase by 52.3% by 2020 under
countries with an industrial base. tariffs on at least 90% of the goods they the AfCFTA.
So why do retailers source them half- produce. Five more countries signed the AfCFTA
way around the world? The answer: a patch- If all 55 African countries join a free at the African Union (AU) summit in Mau-
work of trade regulations and tariffs that trade area, it will be the world’s largest by ritania in June, bringing the total number
make intra-African commerce costly, time number of countries, covering more than of countries committing to the agreement
wasting and cumbersome. 1.2 billion people and a combined GDP of to 49 by July’s end. But a free trade area has
The African Continental Free Trade $2.5 trillion, according to the UN Economic to wait until at least 22 countries submit
Agreement (AfCFTA), signed by 44 African Commission for Africa (ECA). instruments of ratification. By July 2018,
AfricaRenewal August - November 2018 3
only six countries—Chad, Eswatini (for- Renewal, emphasizing that the youth will cooking utensils, food items—from China
merly Swaziland), Ghana, Kenya, Niger mostly benefit from such job creation. or somewhere in Europe than from South
and Rwanda—had submitted ratification In addition, African women, who Africa, Nigeria or Morocco,” Mr. Paelay
instruments, although many more coun- account for 70% of informal cross-border added.
tries are expected to do so before the end trading, will benefit from simplified trad- African leaders and other development
of the year. ing regimes and reduced import duties, experts received a piece of good news at the
Economists believe that tariff-free which will provide much-needed help to AU summit in Mauritania in June when
access to a huge and unified market will small-scale traders. South Africa, Africa’s most industrialised
encourage manufacturers and service If the agreement is successfully imple- economy, along with four other countries,
providers to leverage economies of scale; mented, a free trade area could inch Africa became the latest to sign the AfCFTA.
an increase in demand will instigate an toward its age-long economic integration Nigeria, Africa’s most populous coun-
increase in production, which in turn will ambition, possibly leading to the establish- try and another huge economy, has been
lower unit costs. Consumers will pay less ment of pan-African institutions such as one of the holdouts, with the government
for products and services as businesses the African Economic Community, African saying it needs to have further consulta-
expand operations and hire additional Monetary Union, African Customs Union tions with indigenous manufacturers and
employees. and so on. trade unions. Nigerian unions have warned
“We look to gain more industrial and that free trade may open a floodgate for
value-added jobs in Africa because of intra- A piece of good news cheap imported goods that could atrophy
African trade,” said Mukhisa Kituyi, sec- Many traders and service providers are Nigeria’s nascent industrial base.
retary-general of the UN Conference on cautiously optimistic about AfCFTA’s The Nigeria Labour Congress, an
Trade and Development, a body that deals potential benefits. “I am dreaming of the umbrella workers’ union, described
with trade, investment and development, day I can travel across borders, from Accra AfCFTA as a “radioactive neoliberal policy
in an interview with Africa Renewal (see to Lomé [in Togo] or Abidjan [in Côte initiative” that could lead to “unbridled
page 6). d’Ivoire] and buy locally manufactured foreign interference never before wit-
“The types of exports that would gain goods and bring them into Accra with- nessed in the history of the country.”
most are those that are labour intensive, out all the hassles at the borders,” Iso However, former Nigerian president
like manufacturing and agro-processing, Paelay, who manages The Place Entertain- Olusegun Obasanjo expressed the view
rather than the capital-intensive fuels and ment Complex in Community 18 in Accra, that the agreement is “where our [eco-
minerals, which Africa tends to export,” Ghana, told Africa Renewal. nomic] salvation lies.”
concurred Vera Songwe, executive secre “Right now, I find it easier to import the At a July symposium in Lagos organ-
tary of the ECA, in an interview with Africa materials we use in our business—toiletries, ised in honour of the late Adebayo Adedeji,
a onetime executive secretary of the ECA,
Yakubu Gowon, another former Nigerian
Mapping intra-Africa trade flows leader, also weighed in, saying, “I hope
Nigeria joins.”
Speaking at the same event, Ms. Songwe
Origin Destination urged Nigeria to get on board after con-
sultations, and offered her organisation’s
Central Africa Central Africa support.
Eastern Africa Eastern Africa Last April, Nigerian president Muham-
madu Buhari signalled a protectionist
Northern Africa Northern Africa stance on trade matters while defending
his country’s refusal to sign the Economic
Western Africa Western Africa Community of West African States-EU
Economic Partnership Agreement. He said
then, “Our industries cannot compete with
Southern Africa Southern Africa the more efficient and highly technologi-
cally driven industries in Europe.”
In some countries, including Nigeria
and South Africa, the government would
like to have control over industrial policy,
reports the Economist, a UK-based pub-
lication, adding, “They also worry about
losing tariff revenues, because they find
other taxes hard to collect.”
While experts believe that Africa’s big
Source: World Trade Organization
and industrialising economies will reap
4 AfricaRenewal August - November 2018
AfCFTA Countries
(by mid-July 2018)
Countries that have ratified
• Rwanda
• Ghana
• Kenya
• Chad
• Niger
• Eswatini (formerly
Swaziland)
AU Member States that have
signed the agreement
• Angola
• Algeria
• Benin
• Burkina Faso
• Burundi
• Cameroon
• Cape Verde
• Central Africa
Republic • Mauritius
the most from a free trade area, the ECA Kenyan president Uhuru Kenyatta (top) and
• Chad • Mauritania
counters that smaller countries also have Ghanaian president Nana Akufo-Addo signing
• Comoros • Mozambique
a lot to gain because factories in the big the AfCFTA. Office of President Paul Kagame
• Congo • Morocco
countries will source inputs from smaller
• Cote d’Ivoire • Namibia
countries to add value to products.
• Democratic • Niger
The AfCFTA has also been designed ambitious list of regional projects. Its 20
Republic of Congo • Rwanda
to address many countries’ multiple and priority projects have been completed
• Djibouti • Saharawi
overlapping memberships in Regional or are under construction, including the
• Egypt • Sao Tome and
Economic Communities (RECs), which Algiers-Lagos trans-Saharan highway,
• Ethiopia Principe
complicate integration efforts. Kenya, for the Lagos-Abidjan transport corridor, the
• Equatorial Guinea • Senegal
example, belongs to five RECs. The RECs Zambia-Tanzania-Kenya power transmis-
• Gambia • Seychelles
will now help achieve the continental goal sion line and the Brazzaville-Kinshasa
• Gabon • Sierra Leone
of a free trade area. bridge.
• Ghana • Somalia
Many traders complain about RECs’ The AfCFTA could change Africa’s eco-
• Guinea • South Africa
inability to execute infrastructure projects nomic fortunes, but concerns remain that
• Kenya • South Sudan
that would support trading across borders. implementation could be the agreement’s
• Lesotho • Sudan
Ibrahim Mayaki, head of the New Partner- weakest link.
• Liberia • Swaziland
ship for Africa’s Development (NEPAD), Meanwhile African leaders and devel-
• Libya • Togo
the project-implementing wing of the AU, opment experts see a free trade area as an
• Madagascar • Tunisia
says that many RECs do not have the inevitable reality. “We need to summon
• Malawi • Uganda
capacity to implement big projects. the required political will for the African
• Mali • Zimbabwe
For Mr. Mayaki, infrastructure devel- Continental Free Trade Area to finally
opment is crucial to intra-African trade. become a reality,” said AU Commission
NEPAD’s Programme for Infrastruc- chairperson Moussa Faki Mahamat, at the
Source: African Union
ture Development in Africa (PIDA) is an launch in Kigali.
AfricaRenewal August - November 2018 5
INTERVIEW
Africa has phenomenal potential
for intra-continental trade
— Dr. Mukhisa Kituyi, UNCTAD Secretary-General
F orty-nine of Africa’s 55 countries have signed the framework for the African Continental Free Trade
Agreement (AfCFTA) to create a single continental market for goods and services, with free and
unfettered movement of businesspeople and investments. When at least 22 countries ratify it, the
AfCFTA will officially come into force, potentially making the continent the largest trading bloc in the
world. Africa Renewal’s Zipporah Musau spoke with Dr. Mukhisa Kituyi, the secretary-general of the
United Nations Conference on Trade and Development (UNCTAD), on what countries stand to gain
and what challenges to expect. Excerpts:
FREE TRADE AREA
Africa Renewal: What do you say about Africa’s push industrial and value-added jobs in
for a free trade area at a time when some countries in Africa because of intra-African trade.
the West are becoming increasingly protectionist? Secondly, it will build competitiveness,
Dr. Kituyi: For Africa, a clear determination to which you can then unleash onto the
expand trade among ourselves is an important step. rest of the world. Thirdly, we will be
Uncertainties in international trade increase the removing domestic market distortions,
premium on regional intra-African trade. Secondly, which have been adding a burden to
what we have learned from the rest of the world is domestic consumers because of too much
that even if there is populist protectionism, it is a protectionism.
short-term phase that we’ll ride out. But for Africa
to learn from the experience of East Asia and Latin Will the AfCFTA influence UNCTAD’s approach
America even as we wait for protectionism to end, in its operations in Africa? Will you, for exam-
we must build productive trading capacities through ple, deal with the continent as a single entity as
regional value chains. Africa trading among its opposed to individual countries?
component states strengthens its ability to trade. At a personal level, I was involved in designing the
The experiences gained from that will deliver a architecture for AfCFTA, so I’ve been working with
greater market share internationally. Africa needs this from day one. As an organization, UNCTAD has
to build the capacity and structural transformation not only encouraged the AU to create a free trade
necessary to be a competitive international player. area, but we have also been training negotiators for
The creation of a continent with a free trade area the regions and the countries. For example, we have
is therefore an important step towards building, been training the regional technical officers from
collectively, the competitiveness of African labour ECOWAS [Economic Community of West African
and African products internally and internationally. States] and SADC [Southern African Development
Community] on service negotiations. What are the
What are the three most immediate gains for an Afri- offers? What are the implications? What can you
can country in a free trade area? do? What should you not do? What are the remedial
All studies show that what Africa sells within Africa actions in case of a flood on certain services? This
has more value added than what Africa sells to the technical support to national negotiators has
rest of the world, which is mostly raw materials. That been a role we played before the AfCFTA, and we
means intra-African trade creates more employ- are intensifying it now as we prepare for the next
ment in the source country than Africa trading phase, which is more attention to trade in services
with the rest of the world. We look to gain more beyond goods, for building a continental common
6 AfricaRenewal August - November 2018
marketplace for electronic commerce. So we are working with Cultivating goodwill requires that nontariff barriers are rolled
AU member states and organs to build capacity and translate back and trade is increased between African countries.
the promise of the AfCFTA into actual economic gains. Doesn’t this affect women traders more?
Tariffs alone are not the biggest impediment to intra-Africa trade. Last month I released a just-completed study in Nairobi on
Poor infrastructure and the low level of manufacturing in some gender and trade in East Africa. It is true women have more
countries mean they don’t produce a significant amount of than the usual challenges of cross-border trade. Sometimes they
finished goods to export. What is your take? are victims of sexual abuse and harassment. Sometimes they
Tariffs are not the only problem, that’s a mainstream are victims of the typical problems of small traders, because
truth. There is a lot standing in the way of realizing the the architecture of East Africa integration defines a 40-foot
potential of intra-African trade. But the claim that we container being transported from Dar es Salaam to Nairobi as
are producing similar goods is not true. Even neighbou- regional trade, but a 20-kilo sack of maize is seen as “smuggled
ring villages trade with each other. I come from a goods.” Because the framers were catering to the interests of big
place near the border between Kenya and Uganda business in the cities, they did not pay attention to the right of
and I know from my early days that we traded with border communities and small-scale traders to cross the border.
our neighbours. Africa trades quite a lot across The inordinate trouble that women traders go through is basi-
borders. For example, there’s a large market in West cally because they are not a politically strong constituency that
Africa for East African tea and coffee. There’s gets responses from the policymakers about regional trade. One
a large market in East Africa for plantains and of the things we have been pushing for is facilitating simplified
specialized nostalgia products out of West Africa. procedures for cross-border trade and destigmatizing small-
There’s a large market for the creative industry, for scale trade. These represent a major inhibition to the potential
example, Nigerian movies and music, in the rest of of regional trade and integration in Africa.
Africa. Africans have a phenomenal potential for
intra-continental trade. Similarly,
trade is not static. There is no law
that says that a country like Tanzania, One of the main challenges to intra-African trade
for example, must only trade in a
certain set of products. Countries will
is the nontariff barriers. When there is a deficit of
always build capacities and opportu- political goodwill, excuses are made to slow down
nities, and innovators will bring in new trade.
products that you add into the market-
place. So diversification is taken in stride as
trade deepens economic interaction.
What should be done?
What about infrastructure challenges? Agreements have always been there, but there has not been
True, we have a colonial extractive infrastructure, sufficient mobilization of political goodwill to protect the inte-
where you find a railway line is from Kasese in Uganda rests of small-scale traders, specifically artisanal traders and
to the Indian Ocean port to transport copper for export. women traders, in cross-border trade. It is not that they are
Integrative infrastructure is a critical consideration for breaking any law, but they are frustrated by officials behaving
intra-African trade, and I’m glad something is being done arbitrarily and acting with impunity.
about that. Currently we have the Cape Town to Cairo road,
which has been tarmacked up to Addis Ababa. There are Trade agreements can take years for the impact to be felt. When,
other initiatives, like the Northern Corridor, and the Chinese realistically, can all countries be expected to be on board and
are encouraging investments to build the road from Kampala begin to implement the AfCFTA?
to the Atlantic Ocean. I see the importance of the railway line If there is sufficient political goodwill, it can be done overnight.
from Dar es Salaam to Rwanda, and others. So the integrative There is no reason why we would repeat the mistakes that have
infrastructure already being built today is going to be ready been done in other countries. We have to learn these processes
for the test of infrastructure challenges tomorrow. within existing regional integration mechanisms and then scale
them up. Scale up best practices.
What then are the main challenges to intra-Africa trade?
One of the main challenges to intra-African trade is the Are there any benchmarks to assess progress?
nontariff barriers. When there is a deficit of political We must ask, what are the areas of improvement? What are
goodwill, excuses are made to slow down trade. Many times, the issues being talked about on policy and operations? For
traders will reach the border and be told, “This product example, I hope there will be more gender studies on integra-
looks too old to be sold to us” or “The quality doesn’t seem tion and trade which can unlock the potential of women traders.
to be right,” or “We cannot ascertain that this was made in Most small-scale traders in Africa are women, yet the structure
your country.” The absence of goodwill leads to the use of of regional trade caters more to men than women. So we are
too many nontariff measures as excuses to slow down trade. holding back one of our most important facilitators.
AfricaRenewal August - November 2018 7
FREE TRADE AREA
One-stop border post will boost trading
Southern African trader is cautiously optimistic about a free trade area
BY TONDERAYI MUKEREDZI
A
s the marketing executive of times as long as three weeks, and this affects Customers shopping for groceries in a supermar-
Dairibord Zimbabwe, a stock export competitiveness,” she told Africa ket in Cape Town, South Africa. Panos / N. Rixon
exchange–listed exporter of Renewal.
food and beverages in South- Countries have their own individual
ern Africa, Tracy Mutaviri is looking for- standards, and exporters must meet each The World Trade Organisation (WTO)
ward to a bigger market share for her goods one, she says. says that a one-stop border post would inte-
when the African Continental Free Trade The African Union and the Economic grate different border agencies into one that
Area (CFTA) becomes operational. Commission for Africa, two key would, among other benefits, reduce
The economies of scale of serving a players in the AfCFTA push, con- transit times for traders and trans-
larger market will mean her company tinue to assert that mechanisms porters. It will lead to an effective
can trade its beverages and food products will be in place to address these use of available resources and
beyond its current markets: Botswana, tariff and nontariff barriers. assets at a lower cost, as well
Malawi, Mozambique, South Africa and Still, Ms. Mutaviri adds as improved competitiveness
Zambia. The company may even begin to that cumbersome of goods due to reduced pro-
look at countries in West and East Africa. border documenta- cessing times—which,
Ms. Mutaviri is excited about the oppor- tion requirements the WTO assumes,
tunities that a big market presents, particu- and administrative Tracy Mutaviri, will translate into
larly the benefits of standardized proce- and bureaucratic Marketing Executive of Dairibord Zimbabwe reduced costs.
dures for export. She is currently concerned delays at ports of Particularly
about tariff and nontariff challenges to her entry can mean cumbersome is the
business. delays of seven days or more. To expedite process of getting the necessary sanitary
“We have mostly been affected by non- clearance, she suggests a one-stop border and phytosanitary documents. Sanitary
tariff barriers such as obtaining the neces- post to harmonise the export documenta- and phytosanitary measures are plant- and
sary licences or permits for trading our tion process and expedite administrative
goods. The process takes a long time, at processes. see page 34
8 AfricaRenewal August - November 2018
Infrastructure key to intra-African trade
West African traders demand investments in roads, rails and telecom
BY EFAM AWO DOVI
K
en Ukaoha knows something
about infrastructure and intra-
Africa trade. He is the founder
and chief executive officer of
Kenaux International Concept, a shoe and
garment manufacturing company based in
Aba, southeast Nigeria. Kenaux’s products
sell in Nigeria and other African countries,
including Ghana, South Africa and parts of
Central Africa.
Infrastructure challenges
The poor state of infrastructure is the bane
of Africans doing business within Africa,
says Mr. Ukaoha, who is also the presi-
dent of the Association of Nigerian Trad-
ers. Despite decades of common market
agreements within the Economic Com-
munity of West African States (ECOWAS), FREE TRADE AREA
poor transportation continues to impede
market access.
“We do not have railway to move mer- production. “All these make us uncom- Tomato trader, Margaret Lartey, in a market in
chandise from one country to the other. petitive,” Mr. Ukaoha admits. Ghana. Efam Awo Dovi
Sea-freighting goods is also a problem—the Speaking recently on the African Con-
sea links are not there,” Mr. Ukaoha told tinental Free Trade Agreement (AfCFTA),
Africa Renewal, underscoring the need for Senegalese finance minister Amadou Ba “Construction of road networks, tel-
domestic shipping lines that can transport affirmed the prospect of meaningful gains ecom and rail will dramatically open and
goods across countries. from the newly signed treaty. expand markets and grow business,” notes
Mr. Ukaoha, who is also an expert in “Our countries are individually and col- Mr. Ukaoha optimistically. “If we have a
international trade law and globalisation, lectively committed,” Mr. Ba declared, but cost-efficient and easy way of moving goods
explained the difficulties in transporting he added a cautionary note that African from Ghana to Nigeria and other parts of the
goods among ECOWAS countries: “When policy makers must prioritize investments [West African] region, that will be a market
I import raw materials like leather from in regional infrastructure that catalyse of more than 350 million people.”
Hamburg in Germany to Lagos in Nigeria, I integration and facilitate intracontinental
pay 850 euros [$986] for a 40-foot container. trade. Weakness in financial system
But the same container transporting our “In Ghana, Margaret Lartey, an Accra- Some business leaders, however, fear the
products from Lagos to Tema Port in Ghana based tomato trader, has firsthand experi- border-free agreement could harm local
costs 1,350 euros [$1566].” ence moving goods by road among different industries.
Road transportation, he adds, also pre- countries. She buys tomatoes from Burkina Trade liberalization, Mr. Ukaoha points
sents challenges. “We don’t have good roads, Faso, Côte d’Ivoire and different regions out, could be a “killer” because a flood of
and in the mix of that, you experience a lot in Ghana to sell in Accra and is appalled imports, even from other African countries,
of hiccups along the route,” including police by multiple police checkpoints on the road may dislodge the local industry. “Unre-
and customs checkpoints, where bribery is and extortion at the borders by police and stricted imports do not allow local produc-
common. customs officers. ers to grow.”
Even within countries, the state of In addition, transportation costs keep Ultimately, Mr. Ukaoha is scepti-
infrastructure is so bad that business rising due to fluctuating fuel prices. “We cal about AfCFTA. “We have ECOWAS,
owners sometimes construct the roads used to transport a truck of tomatoes from the Southern African Customs Union,
leading to their factories, dig water bore- Burkina Faso to Ghana for $738, but this
holes or buy electricity generators for has gone up to $843,” Ms. Lartey grumbles.” see page 34
AfricaRenewal August - November 2018 9
Trading while caring
for people and planet
Compliance standards can protect ecosystems
BY RICHARD MUNANG & ROBERT MGENDI
R
atifications are moving ahead, risking their lives crossing a dangerous
if slowly, on the newly signed Mediterranean Sea in search of better
African Continental Free Trade opportunities overseas. Many have died
Agreement (AfCFTA)—the on the way, some are detained, and recent
world’s largest free trade agreement (with reports claim others are sold in modern-
the most member countries) since the day slave markets.
founding of the World Trade Organization. Still, the huge and obvious problem
The African Union and its member is climate change, which is projected to
countries hope that, among other benefits, shrink average income in the poorest 40%
a free trade area will improve Africa’s of countries (most of them in Africa)by
economy. a whopping 75% by 2030, according to a
For the 49 African leaders who have 2015 study by the University of California,
signed AfCFTA’s framework agreement Beckley, USA.
(by end of July), a free trade area offers The study focused on the relationship
hope for improving socioeconomic condi- between temperature and economic activi-
tions on the continent. Africa’s current ties in countries, and found that climate
economic indicators are not exactly stel- change will exacerbate global inequality,
lar—low economic productivity, estimated which will be harmful to particularly poor
to be 2000% lower than that of devel- countries.
oped regions, is compounded by a lack of
value addition to commodities in which Africa’s “machete” FREE TRADE AREA
the region holds a comparative advantage. “The path does not close for a man with a
For example, because of low value machete,” says an African proverb, sug-
addition, Africa earns a mere 10% of the gesting the AfCFTA could be the machete industrialization, particularly in the agri-
total value of its agro-value chains. In the that catalyzes Africa’s economy. If all 55 cultural sector. An industrialized agricul-
cocoa value chain (Africa produces 70% countries join, the free trade area will con- tural sector could become Africa’s stra-
of the world’s cocoa), only a dismal $2 bil- solidate a market of 1.2 billion people with tegic growth engine and a tool to rapidly
lion out of the more than $100 billion in a combined GDP of $2.5 trillion, accord- expand its middle class, currently esti-
chocolate revenues annually returns to ing to ECA. The US business publication mated at 300 million.
the continent. Bloomberg estimates the combined GDP Africa could rake in $150 billion annu-
Similarly, up to 90% of income from at over $3 trillion. ally of value-added agro-produce, expand
coffee goes to rich consuming countries, A free trade area could boost intra- its economy, create thousands of jobs for
according to the Economic Commission Africa trade to 52%. That percentage could the youth, mitigate carbon emissions and
for Africa (ECA). And the domino effect of rise to 70% by 2022, a figure higher than enhance its ecosystems’ resilience to cli-
job loss worsens the situation. trade within the European Union, cur- mate change, states the New Partnership
Low productivity exacerbates unem- rently at 65%. for Africa’s Development, the implement-
ployment. About 12 million African youths The AfCFTA also includes a protocol ing arm of the African Union.
join the labour market every year to com- for the free movement of people that will Overall consumer spending amounted
pete for just three million new jobs. A huge consolidate labour opportunities across to $1.4 trillion in 2015, according to McK-
population of jobless youth is a ticking the continent and put a brake on brain insey & Company, a global management
time bomb, warns Alexander Chikwanda, drain. Currently about 33% of Africa’s consulting firm, and business-to-business
Zambia’s former finance minister, alluding skilled workforce is seeking greener pas- spending, including in agriculture and its
to its potential to fuel unrest and political tures overseas. ancillary sectors, would be $3.5 trillion
violence. At a glance, AfCFTA looks likely to by 2025.
With few prospects for economic create unprecedented demand that In a 2013 World Bank report titled
security, many young Africans have been will drive local manufacturing and Growing Africa: Unlocking the Potential
10 AfricaRenewal August - November 2018for Food Security Assembly (EBAFOSA)
policy implementation framework, estab-
lished and adopted by AMCEN, is pro-
viding technical assistance to countries
adopting its compliance standards.
The EBAFOSA compliance standards
are adapted from the International Organ-
ization for Standardization, a body that
promotes worldwide proprietary, indus-
trial and commercial standards to ensure
that certified products are exported to
other countries.
Evaluation criteria
Under EBFOSA’s compliance standards,
experts evaluate agro-products along the
entire supply chain—from on-farm produc-
tion, processing and distribution to mar-
keting—based on three criteria. The first is
“climate and environment compliance,” a
measure of the extent to which production
relies on nature-based approaches that
enhance ecosystems. The goal is to protect
and enhance ecosystems.
“Climate and environment compli-
ance” also involves powering processing
with clean energy and using ICT-enabled
marketing and supply chain activities to
reduce high carbon emissions.
The second criterion is “health compli-
ance,” meaning nature-based approaches
are used in production.
The third criterion is “quality and
safety compliance” along the production
of Agribusiness, the bank projects Africa’s Textile workers at a factory in Kampala, Uganda. process and value chain.
agribusiness could be worth $1 trillion Alamy Stock Photo / Jonathan Rosenthal Several African countries, including
by 2030 if it expands Africans’ access to Benin, Cameroon, Democratic Republic
capital, electricity, better technology and of the Congo, the Gambia, Ghana, Uganda
irrigated land to grow high-value nutri- for example, that attiéké, processed cassava and Zambia, are at various stages of adopt-
tious foods. from Côte d’Ivoire, is marketed to Kenyan ing the EBAFOSA compliance standards,
But how do CFTA and its market oppor- shoppers as pure, natural and grown with- which will be a step toward creating an
tunities ensure food-secure homes and out GMOs, chemicals or pesticides. A com- open market for healthy, high-quality and
increase economic productivity, wealth and pliance standard could also ensure that environmentally friendly agro-produce
the income of the ordinary citizen? How ecosystems are not damaged during pro- across the continent.
does it address climate vulnerabilities? duction and that processing and marketing As Africa moves toward full ratifica-
create no harmful emissions. tion of AfCFTA, the EBAFOSA-promoted
Compliance standards At the 16th African Ministerial Con- compliance standards represent a key item
To achieve AfCFTA’s goal of opening ference on the Environment (AMCEN) in in the agreement’s implementation toolbox.
market opportunities, Africa needs to Libreville, Gabon, in June 2017, African Socioeconomic transformation need not
adopt compliance standards, experts say. ministers and policy makers called for come at the expense of people or planet.
Africa’s disproportionate vulnerability increased investment in innovative envi-
to climate change underscores the need ronmental solutions and urged countries Dr. Richard Munang is UN Environment’s
to ensure that the process of producing, to adopt compliance standards on eco- Africa regional climate change programme
marketing and supplying products meets nomic activities in environmental, energy coordinator and Mr. Robert Mgendi is UN
certain standards and that it does not and health sectors. Environment’s adaptation policy expert.
damage the ecosystems. In response, the UN Environment, These are the authors’ views, not those of
A compliance standard could ensure, through its Ecosystems Based Adaptation their institution.
AfricaRenewal August - November 2018 11TEXTILE TRADE
Africa-made luxury loungewear takes on
A 30-year-old sets up ‘Walls of Benin’ to export finished high quality garments from Africa t
BY RAY MWAREYA
F
or centuries, unfinished materials The brand name Walls of Benin refers brand Fiorelli,” according to facetofacea-
for clothing manufacture—silk, to the world’s largest man-made structure, frica.com, an online publication.
cotton, hides—have been sold and which was completed in the 15th century: He is now setting up production opera-
shipped from Africa to the fash- a system of moats and ramparts designed tions in a “special economic zone” out-
ion capitals of the West, such as London, to defend the ancient Kingdom of Benin, side the coastal city of Mombasa, Kenya’s
Paris and New York. In return, a small which is Benin City, the capital of present- second-largest city.
number of ready-to-wear clothes, cheap day Edo State, Nigeria. “Our concept is not about riding the
shoes and secondhand garments head back Mr. Atanga calls himself “chief evange- stereotype, Africa-to-Europe, textile/raw
to Africa—at vastly marked-up prices or as list,” instead of chief executive officer, of materials value chain, but a new paradigm,”
charity donations. Walls of Benin, and says that the compa- he declares. “Can we take on the Goliath
Now an ambitious startup called the ny’s goal is “to spread soft power through Victoria’s Secret on lingerie in Africa?” he
Walls of Benin, led by 30-year-old Chi culture.” asks, and answers with a firm “Yes!”
Atanga, a man of Cameroonian descent How will it work? “Our business model
born in Manchester, England, seeks to Taking on the Goliath is simple: we take the spirit of African
break with history by building facto- Mr. Atanga researched and designed the print textiles and swap wax and heavy
ries in Africa that make sleepwear and business plan for Walls of Benin. Buoyed by cloth for more luxurious and ecological
loungewear—comfortable casual clothing $100,000 seed money from the Portuguese fabrics,” he says. Kente, Ghana’s famous
that is stylish and sophisticated, suita- government and an apprenticeship with silk-and-cotton blend, is an example of
ble for “all night raves, boats, trains and the Erasmus European Entrepreneur Pro- an African fabric, while silk and Tencel
jet planes,” according to the company’s gramme, he was able to finance his dream. are natural fibres with extra softness and
website. Finished items are sold to high- “Using his gift for networking, Mr. Atanga moisture-wicking properties. “We feel
end shops in Europe for their fashion- secured an investment from the Lunan fashion brands in top cities in Europe
hungry clientele. Group, the team behind the well-known should manufacture some of their wares
12 AfricaRenewal August - November 2018building the value chain,” enthuses Mr. jobs. Mr. Atanga predicts that with wages
Atanga. He believes that the loungewear rising, many Chinese textile companies will
fashion industry in Africa, once ignored, relocate to Africa.
has a bright future. “Monthly wages are rising to $200 per
Meanwhile, rapid changes are taking employee in China, while it’s about $120 in
place on a continent that a top British East Africa,” he says.
supermodel once chided for not having a Mr. Atanga is pleased that some coun-
Vogue magazine. “Africa’s fashion indus- tries in East Africa want to ban the import
try is right now super exciting! It is new, of secondhand clothing. Rwanda already
at the same time it is centuries old. We are has. Tanzania and Uganda were considering
talking about the 55 countries in Africa the bad, while Kenya seemed poised to but
and huge diaspora populations with bil- later backtracked on its decision. Angered
lions of dollars of spending power,” says by the ban, the US is threatening to exclude
Mr. Atanga. such countries from AGOA eligibility status.
The ban on used clothing “is a master-
Exciting times ahead stroke,” insists Mr. Atanga.
The rise of the middleclass in Africa and Also, relative political stability and the
partnerships with established foreign ease of doing business in East Africa is
brands help boost the fashion industry good for investors, according to the young
on the continent. In addition, the African entrepreneur. “In some countries, one must
Growth and Opportunity Act (AGOA), a US pay bribes to get the necessary business
law that seeks to expand trade and invest- permits, and electricity supply is pitiful,”
Walls of Benin loungewear. Lara Jacinto ments with sub-Saharan Africa, “gives he says.
duty-free access to the US for selected Other challenges abound in the textile
sub-Saharan African countries,” according industry. “Although African textile has an
big brands
to African Business, a leading publication annual value of $4 billion, only 19% of it
on Africa. American companies are looking is branded. We lack adequate finance to
to invest in Africa’s fashion industry. patent and effectively secure our fabrics
Africans can tap into the $12 billion US ecosystem. We also don’t want women and
to Europe loungewear market through AGOA, which children to spend 18 hours in factories while
was recently extended to 2025, maintains missing out on school,” Mr. Atanga adds.
Mr. Atanga. His mixed heritage is inspiring him to
His company helps to create jobs by use Africa as a backdrop for his investments
working with eucalyptus farmers and other in the loungewear industry. As a young child
in Africa and create jobs, and not merely suppliers who produce raw materials. Euca- he sold bonbons shipped from Cameroon on
export jeans, suits and other garments to lyptus pulpwood is industrially spun to pro- school playgrounds in Manchester. “I would
Africa.” duce fabrics that are breathable and cooling. add my own ‘import tax,’ because they were
His first trip to Africa as an adult was Also, a dozen local smallholder Kenyan made in Cameroon. They were a little more
to Ghana in 2014, and it was an eye-opener. cotton producers have received specialist valuable, being imported from Africa,” he
“Everything was bright, vibrant and alive. textile training from Walls of Benin to spin says, smiling.
It amazed me to see African print textiles and twist fibre into yarn, weave and knit the “I knew that creating a brand that
everywhere. It dawned on me that this was yarn into fabric, and bleach, dye and print covers African-made loungewear for sale
a part of my heritage. the fabric to create fashionable sleepwear. in Europe could be profitable. This drove
Currently, Walls of Benin operates Why begin operations in Kenya? Africa me to Portugal to work with high-quality
from Kenya and Rwanda and it is import- Renewal asked Mr. Atanga. tradesmen, brands and garments, and to
ing silk and Tencel from Portugal. In April “We chose Kenya because, along with East Africa.”
2018, the company partnered with Wildlife Ethiopia, citizens know the value of a home- On the luxury price point for the pajama
Works, a wildlife conservation group based grown fashion industry. [These countries] sets, he told facetofaceafrica, “We think at
in Kenya, to launch an African produc- have established training centres to edu- £195 [$260] we are being fair. Silk is not
tion. The hope is to export luxury loung- cate indigenous entrepreneurs about diver- cheap and we have taken a lot of time and
ewear made of extra-soft silk and Tencel sifying into luxury garments.” effort to create a luxury product but at the
to Europe and elsewhere. The production Fashion giants such as Sweden’s H&M same time keep the retail price accessible.”
is first of its kind on the continent. also have their eyes on Africa’s fashion For now, Mr. Atanga is focused on his
Wildlife Works can manufacture industry. With support from Swedfund, the passion for making quality clothes in Africa
a thousand loungewear items per week Swedish government’s development financ- and exporting them to Europe. “I want to
using digital screen prints. “From the east ing arm, H&M is establishing a textile fac- create wealth in the fashion industry in an
of Africa to the south of Europe, we are tory in Ethiopia that will create about 4,000 ethical way,” he concludes.
AfricaRenewal August - November 2018 13CHINA-AFRICA
China’s ‘Little Africa’ losing its allure
A downturn in a Chinese city once bustling with African traders and brokers
BY FRANCK KUWONU
I
n a sweltering monsoon afternoon advertising different products and services Traders from Africa buying goods in Xiaobei,
in Xiaobei, in Guangzhou, a city in are plastered on nearly all surrounding China. Gwenn Dubourthoumieu
southeast China, a group of young and buildings.
middle-aged African men take posi- This is Xiaobei, also known as ‘Little
tions up and down a street lined by shops, Africa’, in the central neighborhood of companion try to negotiate fare with a taxi
alert to the passing of potential clients. Guangzhou, China’s megacity, where the driver. Sensing a lack of progress in the
Not far from them, in an adjacent street, Oversea Trading Mall is the main attrac- negotiations, due perhaps to a language
another group of Africans—three women tion for thousands of sub-Saharan African barrier, one of the African men gathered
and a man holding a child in his arms— traders in search of good value merchan- around the porch of a nearby shop steps in
huddle around bales of merchandise. As dise. Guangzhou, nicknamed “Chocolate to facilitate the transaction.
the sun slowly sets, the town square fills up City” because of the large number of Afri- “This is what we do,” Magloire, an
with people. cans living there, is a megalopolis with a immigrant from Côte d’Ivoire, told Africa
“Welcome to Oversea Trading Mall,” population of 13 million. Renewal. “We are helping our brothers and
reads a neon sign in front of a midrise Having dragged their bales to the edge sisters with their business needs.” He was
building overlooking the square. Posters of the square, three women and their male reluctant to give his full name.
14 AfricaRenewal August - November 2018Like Magloire, hundreds of Africans Barry, a Guinean migrant who declined Africa and China is reversing as Chinese
who live in Xiaobei and its neighborhood to give his full name, is a part-time student, entrepreneurs sense greater possibilities
in Guangzhou see themselves as “brokers.” a part-time electronics dealer and a smart- offshore and Africans feel the squeeze on
As the capital city of Guangdong, phone repairman, alludes to an overall the mainland,” the paper remarked.
China’s richest province and arguably feeling of slow business. Around him and Local media in China once put the popu-
its economic powerhouse, Guangzhou is across the mall, many shops are closed at lation of Africans living in Guangzhou at
famous for numerous wholesale markets midday, while those that are open see few 100,000. Then at the height of the Ebola
and its annual International Canton Trade customers coming in. epidemic in 2014, local officials speculated,
Fair. A trader who used to attend to scores and the media report too, that up to half
Inside Xiaobei’s subway stations, on its of buyers and sellers from Africa cuts a a million Africans lived in the city, stok-
streets and at the bougainvillea-adorned lonely figure arranging her displays of ing anxieties. But authorities were quick
pedestrian overpass along the main road, wigs, weaves and hair extensions while to debunk those figures, announcing the
Africans can be found speaking Arabic, waiting for customers who now come in official number to be about 20,000.
Bambara, French, Portuguese, Lingala, trickles. Chocolate City residents routinely
Malagasy, Yoruba or Igbo—a reminder Barry, Magloire and other Africans lament what they perceive as the heavy-
of the cultural diversity of this migrant here blame the plight of Little Africa on handedness of the police in enforcing
community. an economic slump in Angola, Nigeria and immigration laws—another reason for the
Until about three years ago, Xiaobei Zambia, greater competition from Chinese population decline in Chocolate City.
bustled with business activity. Wholesale importers based in sub-Saharan African “While a first-time entry visa is rela-
traders from sub-Saharan Africa regularly countries, restrictive visa requirements tively easy to get, renewing the visa once it
streamed in. and police crackdowns on undocumented expires is anything but, compelling many
In the first nine months of 2014, for workers. in Little Africa to go underground. Those
example, 430,000 people from sub-Saha- “Angolans don’t come anymore,” who overstay their visas are subject to
ran Africa entered or left the city’s border laments Amadou from Mali. More Ango- heavy fines and detention if unable to pay.
posts, according to official Chinese data. lans than other countries’ nationals used Those who can enroll in school retain
“Booming China-Africa ties attract to come to Xiaobei to do business, he a legal right to remain in the country.
Africans to pursue dreams in Guang- explains. But the total number of sub- “Some of the migrants enroll in school
zhou,” declared China Radio International Saharan seasonal traders plummeted as while doing odd jobs on the side,” Komlan
in 2015, summing up the growing move- the Angolans sharply reduced their busi- Semanu, a West African diplomat, told
ments of population and goods between the ness trips because of economic recession Africa Renewal.
southern metropolis and several countries that led to a dip in demand for imported Barry, the part-time electronics repair-
in Africa. goods. man who is also a part-time student, is one
And just three years ago, local media example. “I’ll be going to class later in the
pointed out the economic success of some Chinese in Africa afternoon,” he told Africa Renewal.
of the migrants. A quick survey of resi- Amadou and Barry believe an appetite A growing number of Chinese entre-
dents of Little Africa showed that 2 out of for cheaper goods is still there in African preneurs export directly to local African
10 earned over 30,000 yuan (US$4,800 at cities, but decelerating economic growth, markets, cutting a big slice of the informal
the time) a month, more than the average even if temporary, has recently tamed local trade pie. And with authorities aggressively
monthly income of local Chinese workers. demands. African traders no longer find it enforcing immigration laws, Magloire and
The rest earn less, comparable to the earn- cost-effective to travel all the way to China other Africans ponder their futures in
ing of the average local Chinese worker. to purchase goods. Little Africa.
But fast-forward to 2016, and Little The change of fortune in Little Africa Some are willing to ride out the slump
Africa is losing its shine. “Commodity dip is also due to a growing number of Chinese and others will likely opt for greener pas-
hits China’s little Africa,” the Financial entrepreneurs setting up shops in coun- tures elsewhere. Many residents have set
Times reported in July of that year. tries across Africa, the Hong Kong–based their eyes on Yiwu, a town, two hours by
South China Morning Post reported in May train from Shanghai. Dubbed the world’s
Decreasing trade volume of this year. The Chinese traders based in capital of small commodities, Yiwu seems
After reaching $215.91 billion in 2014, trade Africa benefit from low import duties and more hospitable than Guangzhou to many
volume between China and Africa declined levies, which allow them to import from because, at least, the town is spared of
to $127.97 billion in 2016. The trend would mainland China and to offer cheap goods constant police checks.
be reversed in 2017, with the total amount to local markets. In sum, an economic downturn in sub-
rising by 14.1% over the previous year. Yet The South China Morning Post reported Saharan Africa, an increasing number of
the level remains below the 2014 peak. the number of Chinese living in Ghana to Chinese traders moving into the continent,
Little Africa’s Chinese and African res- be between 20,000 and 30,000, several tough enforcement of immigration laws
idents feel the pinch of the slump in trade, thousand times the number residing there in Guangzhou, among other factors, mean
which has depressed the flow of traders in the mid-1990s. “In just a decade, the that for Africans in China, Little Africa is
from the continent. flow of economic opportunity between no longer the place to be.
AfricaRenewal August - November 2018 15INTERVIEW
Good governance
is the solution to
Africa’s problems
— Prof. Eddy Maloka, CEO of the APRM
U nder the auspices of the African Union, African leaders estab-
lished the African Peer Review Mechanism (APRM) in 2003
as an instrument for monitoring governance performance among
member states. A self-monitoring instrument, APRM aims to foster
the adoption of policies, standards and practices leading to political
stability, high economic growth, sustainable development and accel-
erated regional and economic integration. Africa Renewal’s Zipporah
Musau sat down with Prof. Eddy Maloka, the CEO of the South
Africa–based APRM Secretariat, to understand how they conduct
their business. Here are excerpts:
Africa Renewal: What is APRM’s mandate and how does it The accession to the APRM is voluntary. Countries sign up at
operate? different times for different reasons. Namibia recently joined,
Prof. Maloka: We are a specialized agency created by African and several countries, such as the Comoros, have written
heads of state and governments to review each other as a to join. We work with the pace of countries because being a
way of strengthening governance. We are based in Midrand, member of the APRM comes with a responsibility. You
South Africa. We send teams to member countries to compile must be prepared to open your house for APRM to look at
comprehensive reports on governance. We focus on four areas: how you are conducting business and give you suggestions
democracy and political governance, economic governance on how to improve. Ideally, all AU members should be
and management, corporate governance and socioeconomic in APRM.
development. But recently we were asked to also be a tracking
instrument of the AU [African Union] on the state of gover- Do countries believe that peer review is in their best interest?
nance in Africa. We always tell countries that APRM is not about finding faults,
but that it is a platform to share best practices. For example,
How many countries have signed up? Uganda is one of the best models in the managing and integra-
We started in 2003 with just six members. Today we have 37 tion of refugees. So our report would capture that, although we
members, the latest being The Gambia. We have reviewed also highlight the challenges. After our review, some countries
20 countries so far, including Chad, Ghana, Kenya, Mali, may realize that they need to create new ministries, or they
Mozambique, Nigeria, Senegal, South Africa and others. We may say, “We don’t have enough women in parliament” or “We
have reviewed Kenya twice, and we have just completed the are not doing enough to fight corruption.” So they take the
second review of Uganda. We have national offices in several necessary measures—institutional and sometimes legislative
member countries. We encourage new members to create a measures—to ensure that the issues raised in our report are
national APRM office to follow up on our work. used to strengthen governance in their countries.
While you have achieved some success, some countries are reluc- Do countries have the technical and financial capacity to imple-
tant to join APRM. Why? ment your recommendations?
16 AfricaRenewal August - November 2018You can also read
