The african exportimport bank afreximbank is to implement a new strategy aimed at driving industrialization across africa and increasing intraafrican trade by at least 50 per cent in. Implications of the african continental free trade area agreement has been prepared at a time when concerted efforts are being made across the continent by both sovereign and corporate entities to deepen economic integration and boost intra. In 2012, african union au leaders endorsed a plan to set up cfta by 2017 which will be a. We have gathered analysis and commentary from politicians, practitioners, scholars and experts and asked them to give us their analysis of the major bottlenecks on the road. The editor, africa renewal room s1032 united nations, ny 1001725, usa, tel. Therefor the value of merger and acquisition deals in south africa and africa as a whole requires more robust and rigorous research like is the case in developed countries. Looking at the trade policies adopted by south africa over the past. Joint ventures, greenfield investments, and mergers and. Coe and hoffmaister 1998 argue that bilateral trade between ssa countries and industrial countries in the 1990s was not unusually low. Action plan for boosting intraafrica trade united nations. Afreximbank appoints kanayo awani md for intraafrican trade. The african exportimport bank afreximbank today announced the appointment of kanayo awani as managing director of its intraafrican trade initiative. The boosting of intraafrican trade and the deepening of africas market integration, by fostering competition among african countries, will assist. The african free trade zone aftz is a free trade zone announced at the eacsadccomesa summit on 22 october 2008 by the heads of southern african development community sadc, the common market for eastern and southern africa comesa and the east african community eac.
New afreximbank strategy to increase intraafrican trade to. Africa needs to trade with itself world economic forum. A study by mergermarket group, a ukbased media firm that specialises in corporate and financial news analysis, predicted that deal making on the continent would improve in 2015 due to increased interest from foreign investors and african companies expanding their territories. The main objective of the action plan for boosting intraafrican trade is to reach 25% of the intraafrican trade currently, is 10% % through the regional integration the final aim is to create a continental market african common market. The 2018 edition of the african exportimport banks annual flagship report the african trade report titled boosting intraafrican trade. It also endorsed an action plan for boosting intraafrica trade biat. Common market for eastern and southern africa and the southern africa development community tripartite free trade agreement tfta, as well as to the proposed 2017 continental fta cfta between cairo and cape town. This paper clearly reinforces the data warning outlining the dangers inherent in trying to analyse intraafrican trade data. Accelerating growth through improved intraafrican trade africa growth initiative at brookings january 2012 1775 massachusetts ave.
Eventually the cfa franc and the eco should merge, that being the responsibility of both the. Africas total trade has grown rapidly in value since around 2002, and has nearly doubled in the five years from 2009 to 2014. The use of mirror data, late and nonreporting and vanishing trade has been the bane of this research. East africas mergers and acquisitions market has started picking up as companies look for ways to protect their market share and ensure better returns for shareholders. Intraafrican trade an analysis tralac trade law centre. Trade between african countries has the greatest potential for building sustainable economic development and integration, says african economic outlook 2017, a flagship report of the african development bank released in ahmedabad on day 1 of its 52 nd annual meetings, which commenced on monday in the indian city.
The strategic emphasis on intraafrican trade adopted by the bank and the african union provides the opportunity to foster the process of africas industrialization and eventually set the region on an export diversification path there is the increasing attention to the blue economy with its potential to promote intraregional trade. There are many regions and countries of the world that have been able to lift their peoples from poverty to prosperity through trade. All of this makes trade integration a key element in the continents ongoing integration journey. While there has been a recent increase in intra african trade. Trade integration africa regional integration index. On average over the past decade, only about 10 12 per cent of african trade is with african nations, whilst 40% of north american trade is with other north american countries, and 63% of trade by countries in western europe is with other western european nations. Empirical facts on african trade, intraafrican trade and investment.
Intraafrican trade is key to sustainable development african economic outlook 23may2017 trade between african countries has the greatest potential for building sustainable economic development and integration, says african economic outlook 2017, a flagship report of the african development bank released in ahmedabad on day 1 of its 52. The summit will focus on solutions to the numerous impediments that hinder intraafrican trade. Challenges and opportunities for african continental integration and trade. Provide information on service sectors and on services exports, to be used for building a repository of best practices on services in africa and for creating a data. Comesa calls for increased intraregional trade from africa.
The fact that some of these countries are important in terms of regional gdp suggests that removing obstacles may help expanding intra african trade and, hence, initiate the growth spillovers. The finding that trade among some african countries is too low implies that there are obstacles to such a trade. Implementation of the biat initiative has been relatively disappointing. Consequently, the 18th ordinary african union summit held in january 2012 in addis ababa, ethiopia endorsed an action plan and a. Mergers and acquisitions in east africa on the rise. Merger can boost african trade opportunities self help africa. Organization for economic cooperation and development.
This study which is a longitudinal and time series analysis of the impact of mergers and acquisition on the financial performance of two nigerian banks, united bank for africa uba and standard. African trade persist and have impacted on the level of this trade. This first issue is dedicated to regional integration on the african continent, following last months african union summit on boosting intraafrican trade. Impediments to intraregional trade in subsaharan africa. New afreximbank strategy to increase intraafrican trade. May 23, 2017 by 2015 africas population was already more than twice that of europe, at 1,186 million, but intraafrican trade was a paltry usd 170 billion 5% of intraeu trade, 40% of which this in the. Overseas development institute 111 westminster bridge road london se1 7jd, uk tel.
Expanding intraafrican trade trademark east africa. The fact that some of these countries are important in terms of regional gdp suggests that removing obstacles may help expanding intraafrican trade and, hence, initiate the growth spillovers. African regional trade agreements as legal regimes african regional trade integration has grown exponentially in the last decade. Citing data produced by its economists and peer institutions, the report said. Ultimately it can promote trade with the rest of the world. Impediments to intraregional trade in subsaharan africa prepared for the commonwealth secretariat vi executive summary whilst there have been multilateral, regional and bilateral reductions in tariffs among countries and regions, including in subsaharan africa ssa, nontariff. On an average over the past decade, only about 10 12 per cent of african trade is with african nations, whilst 40% of north american trade is with other north american countries, and 63% of trade by countries in western europe is with other western european nations. And yet, while trade might be the gateway to development, the statistics in africa arent too impressive, especially when it comes to one of the biggest opportunities for growth. Three african trade blocs to merge international centre for trade. South africa africa trade at a glance economic and trade policy. This is expected to improve intraregional trade which stands at 20%. Economic obstacles to expanding intraafrican trade. Melvin ayogu and christian kingombe contributed as consultants.
Jul 12, 2018 the 2018 edition of the african exportimport banks annual flagship report the african trade report titled boosting intraafrican trade. When trade is more interconnected africas high number of small economies access larger markets and regional hubs source from the region and are able to use the imports to grow. Intraafrican trade in context a frica, which covers approximately 30 million square kilometers, is the secondlargest continent in the world and approximately three. Merger can boost african trade opportunities self help africa 24th july 2017 enterprise development, news developing regional trade opportunities for african businesses can create hundreds of thousands of new jobs and lift millions of people out of extreme poverty, gortaself. Watip supports the formulation of a common trade policy of ecowas and aims at strengthening regional and. Trailinks joins gortaself help africa group hoping to create more opportunities for african agricultural producers. Provide information on service sectors and on services exports, to be used for building a repository of best practices on services in africa and for creating a data base on services in the african trade observatory. The afreximbank intraafrican trade strategy, approved by the board of directors at its quarterly meeting in. Implications of the african continental free trade area agreement has been prepared at a time when concerted efforts are being made across the continent by both sovereign and corporate. Intra african trade was less than 10% of total africa trade since the nineties and african share of total trade less than 3%, in regression compared to its levels before the 60s.
Norilsk nickel, in the sale of its 20 percent stake in gold fields south africa in the largest stock sale for a south african company. The fundraising appetite for domestic financial investments is increasing, however, leading to more. Jul 04, 2012 the need to enhance intra african trade among african countries led to the formation of the eaccomesasadc east african community. Intraafrican trade is key to sustainable development. Jul 15, 2015 over the last few years the aggregate intraafrican trades imports and exports share of total african trade has consistently been around the 12% mark with a high of 14% in 2009 as shares from both the european union eu and the united states us are dramatically declining in the face of increasing brazil, russia, india and china bric. Wamz west african monetary zone wto world trade organization. The economic development in africa report 2009 was prepared by a research team consisting of norbert lebale team leader, janvier nkurunziza, shigehisa kasahara and martin halle. The subsaharan african share of intra regional trade is on average 8. Mergers and acquisitions in east africa on the rise african. Assessing regional integration in africa ix next steps for the african continental free trade area. Africas three largest regional economic communities agreed in october to work toward establishing a free trade area that would span the. Net crossborder mergers and acquisitions 19902011 and.
In 2014 in europe, for example, 69% of exports were to other countries on the continent. Informal crossborder trade and trade facilitation reform in subsaharan africa. The main objective of the action plan for boosting intra african trade is to reach 25% of the intra african trade currently, is 10% % through the regional integration. Boosting intraafrican trade and deepening regional market integration constitute a necessary response to the challenges facing africa in the multilateral trading system and the global economy. Can intraafrican trade unlock africas industrial potential. However, intraafrican trade as a proportion of the continents overall trading activities has been slower to climb, going from around 10% in 2002 to % in 2014. By 2015 africas population was already more than twice that of europe, at 1,186 million, but intraafrican trade was a paltry usd 170 billion 5% of intraeu trade, 40% of which this in the. The need to enhance intraafrican trade among african countries led to the formation of the eaccomesasadc east african community. Regional trade in africa can play a vital role in diversifying economies and reducing dependence on the export of a few mineral products, in delivering food and energy security, in generating jobs for the increasing numbers of. The work was completed under the overall supervision of charles gore, head.
Mergers and acquisitions in africa 157 downloaded by erasmus university, taco reus at 07. The african free trade zone is also referred to as the african free trade area in some official documents and. Action plan for boosting intraafrican trade fenglish. The african exportimport bank afreximbank is to implement a new strategy aimed at driving industrialization across africa and increasing intraafrican trade by at least 50 per cent in the next five years.
The common market for eastern and southern africa comesa has urged the american business community to support the push for the continental free trade area cfta in order to benefit from increased intraregional trade from africa. We have gathered analysis and commentary from politicians, practitioners, scholars and experts and asked them to give us their analysis of the major bottlenecks on the road to regional integration in africa. The subsaharan african share of intraregional trade is on average 8. Smart industrialisation through trade in the context of.
Accelerating growth through improved intra african trade africa growth initiative at brookings january 2012 1775 massachusetts ave. This historic summit decision is aimed at deepening africas market integration and using trade to serve more effectively as an instrument for the attainment of rapid and sustainable socioeconomic development. African head of states and governments will convene in addis ababa, ethiopia later this month to launch a continentwide free trade agreement cfta. The heart of it is one of africas unpopular institutions, namely. African trade market of fresh fruit, vegetables and other african products. Despite the sustained african economic growth over the last decade and the resilience of african economies to the global economic and financial crises of 200809. Trade is widely accepted as an important engine of economic growth and development.
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