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The 37th African Union Development Agency &#8211; NEPAD Heads of State and Government Orientation Committee (HSGOC) Session took place over the weekend and there, Rwandan President Paul Kagame was elected Chairperson of one of its new agencies that will drive the continent towards achieving Agenda 2063 . CNBC Africa spoke to Ibrahim Mayaki, CEO of NEPAD, for more.</p>


AU Summit 2020: 37th HSGOC Session – Kagame tasked with driving Agenda 2063

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South African president Cyril Ramaphosa flew off from Waterkloof air base near Johannesburg to take up the reins of the African Union. He is on the way to Addis Ababa to take up the chair of the AU on behalf of South Africa.  CNBC Africa&#8217;s Kopano Gumbi filed this report.</p>


AU Summit 2020: Ramaphosa on assuming the AU Chairmanship & what it means for SA

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The second day of the African Union is underway and CNBC Africa&#8217;s Godfrey Mutizwa asked South African Minister of International and Cooperation, Naledi Pandor, about key issues that have been addressed so far and what agenda South Africa is bringing to the African Union as chair.</p>


AU Summit 2020: Addressing conflicts on the continent key to achieving Agenda 2063 goals – Naledi Pandoor

AU Summit 2020: Addressing conflicts on the continent key to achieving Agenda 2063 goals – Naledi Pandor

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Director of Macroeconomic Forecasting and Research at African Development Bank (AfDB), Hanan Morsy says Africa is the least efficient in spending on education despite the very strong commitment of African governments. CNBC Africa&#8217;s Godfrey Mutizwa caught up with her on the side-lines of the Africa Union Summit for more.</p>


AU Summit 2020: “By enhancing efficiency

AU Summit 2020: “By enhancing efficiency, Africa can reach universal primary education” – AfDB’s Hanan Morsy

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Ahead of the 33rd Ordinary Session of the Assembly of the African Union Commission Summit in Addis Ababa, CNBC Africa’s Godfrey Mutizwa spoke to Dr. Hippolyte Fofack, Chief Economist and Director, Research and International Cooperation at Afreximbank on why Africa should speak with one voice on trade as a way to consolidate its bargaining power on the global stage.</p>


AU Summit 2020: Afreximbank: Why Africa should speak with one voice on trade

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<p>The Department of Trade and Industry held an Economic Policy Dialogue to debate and advance its policies with a focus on the African Continental Free Trade Area. CNBC Africa’s Karabo Letlhatlha spoke with Dr Faizel Ismail the director of Nelson Mandela School of Governance for more.</p>


Faizel Ismail on the investment case for Africa

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<p>People are talking about the African Continental Free Trade Area, the biggest thing to hit Africa for a century. How is it going to work? What agreements are needed? Mukhisa Kituyi, Secretary-General of the United Nations Conference on Trade and Development (UNCTAD) joins CNBC Africa for more.</p>


AfCFTA: How is it going to work & what agreements are needed?

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<p>DPO Group, an African payment service provider from Kenya has acquired PayFast which is a payment processor in South Africa. This acquisition is set to change the way in which African’s engage with digital payment processes, especially in the wake of the African Continental Free Trade Area. DPO Group CEO, Eran Feinstein joins CNBC Africa for more.</p>


Kenya’s DPO Group to expand African presence with PayFast acquisition

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<p>The world is increasingly becoming fractured. Trade wars have extended beyond the US and China to Japan and South Korea. Boris Johnson, the UK&#8217;s new prime minister, says Brexit will be done and dusted by 31st October. In this climate Africa&#8217;s free trade agreement makes more sense than ever. Rudi Steinbach, Africa Specialist and Senior Economist at the World Bank joins CNBC Africa for more.</p>


African Continental Free Trade Area: Is it practical?

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<p>Mahin Dissanayake, Senior Director, for EMEA Financial Institutions Group at Fitch ratings joins CNBC Africa to look at the prospects that the African free trade agreement has on the banking sector and the competition of new digital platforms for the traditional banking sector.</p>


Why the AfCFTA is a game changer for SA banks – Fitch

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<p>There are almost 300 trade treaty agreements worldwide according to data from The World Bank but none are as big as the one set in motion by the African Union. 54 countries have agreed to adopt a free trade area covering the continent. What does this mean for your next trip to the store to buy a loaf of bread? Bohani Hlungwane, Regional Head, Trade and Working Capital, Absa Corporate and Investment Bank joins CNBC Africa for more.</p>


Why Africa’s free trade agreement is a game changer for the continent

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<p>Afreximbank is providing a one-billion-dollar adjustment facility to cushion the effect of sudden significant tariff revenue losses, arising from the implementation of the African Continental Free Trade Area (AfCFTA). Theophilus Emuwa, Managing Partner at Aelex joins CNBC Africa for more.</p>


AFCFTA: Tax implications for Nigeria

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<p>Ghana says it will donate $10 million for the Operationalisation of the Secretariat of the African Continental Free Trade Area (AfCFTA) agreement this comes as the country was selected as the home for the Secretariat of the treaty. Chief Executive Officer of the Ghana Investment Promotion Council, Yofi Grant, joins CNBC Africa for more.</p>


AFCFTA: Investment case for Ghana


<p>NIAMEY (Reuters) &#8211; African leaders met on Sunday to launch a continental free-trade zone that if successful would unite 1.3 billion people, create a $3.4 trillion economic bloc and usher in a new era of development.</p>



<p>After four years of talks, an agreement to form a 55-nation trade bloc was reached in March, paving the way for Sunday’s African Union summit in Niger where attendees will unveil which nation will host the trade zone’s headquarters, when trading will start and discuss how exactly it will work.</p>



<p>It is hoped that the African Continental Free Trade Area (AfCFTA) &#8211; the largest since the creation of the World Trade Organization in 1994 &#8211; will help unlock Africa’s long-stymied economic potential by boosting intra-regional trade, strengthening supply chains and spreading expertise.</p>



<p>“The eyes of the world are turned to Africa,” Egyptian President and African Union Chairman Abdel Fattah al-Sisi said at the summit’s opening ceremony.</p>



<p>AfCFTA “will reinforce our negotiating position on the international stage. It will represent an important step.”</p>



<p>Africa has much catching up to do: its intra-regional trade accounted for just 17% of exports in 2017 versus 59% in Asia and 69% in Europe, and Africa has missed out on the economic booms that other trade blocs have experienced in recent decades.</p>



<p>Economists say significant challenges remain, including poor road and rail links, large areas of unrest, excessive border bureaucracy and petty corruption that have held back growth and integration.</p>



<p>Members have committed to eliminate tariffs on most goods, which will increase trade in the region by 15-25% in the medium term, but this would double if these other issues were dealt with, according to International Monetary Fund (IMF) estimates.</p>



<p>The IMF in a May report described a free-trade zone as a potential “economic game changer” of the kind that has boosted growth in Europe and North America, but it added a note of caution.</p>



<p>“Reducing tariffs alone is not sufficient,” it said.</p>



<h3 class="wp-block-heading">&nbsp;DIVERGENT INTERESTS</h3>



<p>&nbsp;&nbsp;&nbsp; Africa already has an alphabet soup of competing and overlapping trade zones &#8211; ECOWAS in the west, EAC in the east, SADC in the south and COMESA in the east and south.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;But only the EAC, driven mainly by Kenya, has made significant progress towards a common market in goods and services.</p>



<p>These regional economic communities (REC) will continue to trade among themselves as they do now. The role of AfCFTA is to liberalise trade among those member states that are not currently in the same REC, said Trudi Hartzenberg, director at Tralac, a South Africa-based trade law organisation.</p>



<p>&nbsp;&nbsp;&nbsp; The zone’s potential clout received a boost on Tuesday when Nigeria, the largest economy in Africa, agreed to sign the agreement at the summit. Benin has also since agreed to join. Fifty-four of the continent’s 55 states have signed up, but only 25 have ratified.</p>



<p>&nbsp;&nbsp;&nbsp; One obstacle in negotiations will be the countries’ conflicting motives.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;For undiversified but relatively developed economies like Nigeria, which relies heavily on oil exports, the benefits of membership will likely be smaller than others, said John Ashbourne, senior emerging markets economist at Capital Economics.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;Nigerian officials have expressed concern that the country could be flooded with low-priced goods, confounding efforts to encourage moribund local manufacturing and expand farming.</p>



<p>&nbsp;&nbsp;&nbsp; In contrast, South Africa’s manufacturers, which are among the most developed in Africa, could quickly expand outside their usual export markets and into West and North Africa, giving them an advantage over manufacturers from other countries, Ashbourne said.</p>



<p>&nbsp;&nbsp;&nbsp; The presidents of both countries are attending the summit.</p>



<p>The vast difference in countries’ economic heft is another complicating factor in negotiations. Nigeria, Egypt and South Africa account for over 50% of Africa’s cumulative GDP, while its six sovereign island nations represent about 1%.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;“It will be important to address those disparities to ensure that special and differential treatments for the least developed countries are adopted and successfully implemented,” said Landry Signe, a fellow at the Brookings Institution’s Africa Growth Initiative.</p>



<p>Regulations governing rules of origin, removal of non-tariff barriers and the development of a payments and settlements system are expected to be unveiled at the summit.</p>



<p>Reporting by Boureima Balima, Alessandra Prentice; Additional reporting by Alexander Winning and Edward Mcallister; Writing by Alessandra Prentice; Editing by Edward Mcallister and Dale Hudson</p>


African leaders launch free-trade zone, what you need to know about this potential economic “game changer”


<p><em>Content supplied </em></p>



<p><em>By</em> <em>Magdi Amin, an Investment Partner with </em><a href="http://www.omidyar.com/"><em>Omidyar Network</em></a> </p>



<p>Africa’s digital revolution is transforming our economy at a record pace. Africa is home to the 10 fastest growing cities in the world,<a href="#_ftn1">[1]</a> and for nearly a decade, we’ve had the world’s fastest rate of internet adoption – gaining 20 percent more users in the last year alone.<a href="#_ftn2">[2]</a> This expanded access has given rise to a powerful digital economy—one that’s expected to grow by more than US$300 billion by 2025.<a href="#_ftn3">[3]</a> But all this change begs the question: How do we ensure that Africa’s transformative technology fulfills its promise as a force for good?</p>



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<p>As Africa’s economy moves online, so do the people who engage with it. And in this digital age, we need a modern way of proving that we are who we say we are, establishing trust, and transacting from afar. Increasingly, we will access a common digital market with our “digital identities,” often via a finger scan or a digital wallet.  </p>



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<p>The African Union (AU) has recently recognized digital identification systems as essential infrastructure to unlock access to profound new social and economic opportunity, such as education, employment, financial services, mobile communication, travel, and voting. Sixty percent of Africans believe their governments will introduce new or revamped identity systems in the next two years, in part to support the African Continental Free Trade Area (AfCFTA) and to deliver public goods and services more effectively.<a href="#_ftn4">[4]</a> </p>



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<p>Studies show that Africa
stands more to gain from the adoption of digital identity than any other region
in the world; it also risks a lot if the systems are designed without
safeguards. How we treat our identity data will determine if digital identity
empowers or exploit Africans. </p>



<p>Will we have choices? Will we
be required to submit so much information, including DNA, that it puts our
privacy and security at risk? Will we be consulted to ensure everyone is
included, especially the 500 million Africans who do not have a foundational form of ID today?<a href="#_ftn5">[5]</a>
Does the digital identity system design reflect the rights and protections
afforded by law? Will our data be shared with foreign companies or governments,
and if so, will the rights I enjoy in my country with respect to my data still
protect me?</p>



<p>Human and digital rights groups have raised these questions in response to recent ID-related decisions in Kenya, Zimbabwe, and Nigeria. On April 1, Kenya’s High Court suspended some of the contentious design decisions, such as making ID mandatory for public services, pending a hearing. When ID is mandatory, we have seen less pressure on governments and businesses to ensure the system is useful, safe, and trusted by individuals.</p>



<p>Digital identity is a complex
task with many moral, economic, political, and technological choices. The AU, <a href="https://medium.com/positive-returns/why-we-invested-un-economic-commission-for-africa-c55b824f09f3">UN Economic Commission for Africa</a>, Smart Africa, Internet
Society, Africa Digital Rights Hub, the World Bank and others are actively equipping
governments, businesses, and civil society with tools and training that can
lead to good outcomes for people. </p>



<p>For example, they are helping
all 54 AU governments define and implement a shared set of principles for Good
Digital Identity in Africa. The principles convey an African view on inclusion, data
ownership, interoperability across borders, compatibility with existing
systems, privacy, security and safeguards, governance, neutrality, and
accountability. Building on both the AU Data Protection Guidelines and the
Principles on Identification for Sustainable Development, the framework also
addresses exclusion, discrimination, surveillance, consent, and other key
issues of our time. </p>



<p>As technology shapes the very
notion of identity and introduces new risks and dilemmas, civil society,
businesses, and other stakeholders should engage in this conversation. It’s up
to all of us to help ensure governments and companies deliver solutions that
protect and empower citizens. </p>



<p>It’s an opportunity Africans cannot
afford to miss. Digital identity systems could unlock as much as 6 percent GDP
growth,<a href="#_ftn6">[6]</a>
and up to 50 percent of that economic value can go straight into the hands of
citizens. But those gains are possible only if digital identity is implemented equitably
with trust, transparency, and accountability.<a href="#_ftn7">[7]</a>
</p>



<p>If we truly want to escape from hunger,&nbsp;disease,&nbsp;illiteracy,&nbsp;gender
inequality,&nbsp;and&nbsp;other global
challenges,&nbsp;everyone must have equitable access to engage in the
daily transactions that power societal and economic progress. And they must be
able to do so fearlessly—with privacy, security, and individual control. A good
digital identity will lay the foundation for the future we want.&nbsp;&nbsp; </p>



<p>Africans must ask for all ID
to be Good ID. They must trust that ID and, therefore, use it voluntarily
because it empowers without putting them at risk. Without this, Africans will continue to suffer from
unequal access to employment and educational opportunities; health and
financial services; and many of the critical social
protections they need to succeed. Good ID provides a framework to improve the quality of our
digital identities with important safeguards embedded in technology, policy,
and practice while helping millions of Africans participate in and benefit from
today’s digital economy. </p>



<p>With Gambia’s ratification,
the AfCFTA has drawn enough signatures to go into operation. This milestone
makes Africa the world’s largest free trade area. And with increased connectivity,
shared government platforms, entrepreneurship, and skills, our digital economy
is building to become a powerful force for good. Now, our challenge expands
beyond keeping pace with the digital revolution—we must enable Good ID to
thrive by placing the interests of Africans at the center of our social and
economic future. </p>



<p>Transparent, accountable, and
trust-building practices lead to Good ID. System planners, technologists,
program managers, policy makers, and investors can either build or erode trust
with digital ID holders with every choice they make. An emphasis on privacy,
inclusion, user value, user control, and security will ultimately create the
foundation for impact and mitigate most risks of digital identity. </p>



<p><em>Magdi Amin is an Investment Partner with </em><a href="http://www.omidyar.com/"><em>Omidyar Network</em></a><em>, </em><em>focused on digital identity. Prior to joining the
Omidyar Network, he worked for the World Bank Group for over two decades –
living and working across Africa, East Asia and MENA. He led the development of
the World Bank’s Africa Digital Economy strategy and recently spearheaded
Omidyar Network’s first investment in digital identity in Africa, in
collaboration with the Economic Commission for Africa.</em><br></p>



<hr class="wp-block-separator"/>



<p><a href="#_ftnref1">[1]</a> United Nations Department of Economic and
Social Affairs: <a href="https://population.un.org/wup/Publications/Files/WUP2018-KeyFacts.pdf">2018 Revision of the World Urbanization Prospects</a></p>



<p><a href="#_ftnref2">[2]</a> We Are Social &amp; Hootsuite: <a href="https://digitalreport.wearesocial.com/">Digital in 2018 Report</a></p>



<p><a href="#_ftnref3">[3]</a> McKinsey Global Institute: <a href="https://www.mckinsey.com/industries/high-tech/our-insights/lions-go-digital-the-internets-transformative-potential-in-africa">Lions go Digital: The Internet’s Transformative
Potential in Africa (2013)</a></p>



<p><a href="#_ftnref4">[4]</a> ID4Africa: <a href="https://www.biometricupdate.com/201804/id4africa-survey-shows-near-universal-support-for-biometrics-elections-among-african-identity-community">2018 survey</a></p>



<p><a href="#_ftnref5">[5]</a> World Bank: <a href="https://datacatalog.worldbank.org/dataset/identification-development-global-dataset">2018 ID4D Global Data Set</a></p>



<p><a href="#_ftnref6">[6]</a> McKinsey Global Institute: <a href="https://www.mckinsey.com/featured-insights/innovation-and-growth/the-value-of-digital-id-for-the-global-economy-and-society">Digital Identification: A Key to Inclusive Growth</a></p>



<p><a href="#_ftnref7">[7]</a> McKinsey Global Institute: <a href="https://www.mckinsey.com/featured-insights/innovation-and-growth/the-value-of-digital-id-for-the-global-economy-and-society">Digital Identification: A Key to Inclusive Growth</a></p>


As more Africans go online this is what needs to be done to protect their identities

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<p>The highly anticipated, much talked about African Continental Free Trade Area officially came into force last week as per article 23 of the of the agreement, which stipulates that it would happen 30 days after the minimum required 22 countries have ratified the agreement. With just weeks before the market is launched on July 7th, CNBC Africa spoke to Analyst and Chief Strategist of Impact Communication Strategies, Ken Agatumba on what it all means for the continent and the independent entrepreneur alike.</p>


AfCFTA goes into effect with 22 countries on board

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<p>The 52nd Session of Economic Conference in Marrakesh, Morocco dealt with the theme of fiscal policy, trade and private sector in the digital era. With a variety of topics at the side events, youth involvement and unemployment is one of the major discussions held. CNBC Africa’s Fifi Peters caught up with Bitania Berhanu the International Branches Coordinator at Youth Alliance for Leadership Development in Africa.</p>


African Continental Free Trade Area

AU Summit 2020: 37th HSGOC Session – Kagame tasked with driving Agenda 2063

AU Summit 2020: Ramaphosa on assuming the AU Chairmanship & what it means for SA

AU Summit 2020: Addressing conflicts on the continent key to achieving Agenda 2063 goals – Naledi Pandor

AU Summit 2020: “By enhancing efficiency, Africa can reach universal primary education” – AfDB’s Hanan Morsy

AU Summit 2020: Afreximbank: Why Africa should speak with one voice on trade

Faizel Ismail on the investment case for Africa

AfCFTA: How is it going to work & what agreements are needed?

Kenya’s DPO Group to expand African presence with PayFast acquisition

African Continental Free Trade Area: Is it practical?

Why the AfCFTA is a game changer for SA banks – Fitch

Why Africa’s free trade agreement is a game changer for the continent

AFCFTA: Tax implications for Nigeria

AFCFTA: Investment case for Ghana

African leaders launch free-trade zone, what you need to know about this potential economic “game changer”

As more Africans go online this is what needs to be done to protect their identities

AfCFTA goes into effect with 22 countries on board

Bitania Berhanu on tackling youth unemployment in Africa

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African Continental Free Trade Area

AU Summit 2020: 37th HSGOC Session – Kagame tasked with driving Agenda 2063

AU Summit 2020: Ramaphosa on assuming the AU Chairmanship & what it means for SA

AU Summit 2020: Addressing conflicts on the continent key to achieving Agenda 2063 goals – Naledi Pandor

AU Summit 2020: “By enhancing efficiency, Africa can reach universal primary education” – AfDB’s Hanan Morsy

AU Summit 2020: Afreximbank: Why Africa should speak with one voice on trade

Faizel Ismail on the investment case for Africa

AfCFTA: How is it going to work & what agreements are needed?

Kenya’s DPO Group to expand African presence with PayFast acquisition

African Continental Free Trade Area: Is it practical?

Why the AfCFTA is a game changer for SA banks – Fitch

Why Africa’s free trade agreement is a game changer for the continent

AFCFTA: Tax implications for Nigeria

AFCFTA: Investment case for Ghana

African leaders launch free-trade zone, what you need to know about this potential economic “game changer”

As more Africans go online this is what needs to be done to protect their identities

AfCFTA goes into effect with 22 countries on board

Bitania Berhanu on tackling youth unemployment in Africa

News Tips

Advertise With Us

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