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Africa Trade Week: Africa is open for business

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With impressive economic growth figures, Africa is becoming an attractive destination for trade and export.

Africa is open for business and the continent is looking increasingly attractive as a trade and export destination, with average annual growth for Sub Saharan Africa forecast at 8% until 2023, which is a positive outlook following the downturn between 2015 and 2017.

This is according to Liz Whitehouse, MD of Africa House and Africa research partner to dmg events.

Africa Trade Week will be held from 23 to 25 June 2019 at the Gallagher Convention Centre, in Midrand, and includes the co-location of the South African International Trade Exhibition (SAITEX), The Hotel Show Africa, and Africa’s Big 7.

Whitehouse pointed out that East Africa is primarily the driving force of growth on the continent, with the regional economy showing no contraction, as opposed to other regions.

This is largely because East Africa is not an extractives-dependent region, with mining and oil and gas only now starting to become of some importance. With South Africa and Nigeria excluded from regional data, East Africa emerged as the largest regional economy by 2018, she noted.

On the other hand, Southern Africa – even including South Africa – is the worst performing major region, with Angola, Mozambique, Zambia and DRC all hit by commodity price declines, while Zimbabwe, eSwatini and Malawi were affected by a combination of commodity prices, drought and Governance issues.

“West Africa looks relatively good, with the regional GDP growing from $600 billion to over $1 trillion and Nigeria expected to rebound in 2019 and beyond,” says Whitehouse.

“Central Africa is the smallest regional economy, but ticks along and is expected to maintain growth of around 3.5% a year – much of it driven by regional gateway Cameroon.”

Whitehouse noted that by 2023, the continent will see five economies of over $100 billion (Nigeria, South Africa, Kenya, Angola and Ethiopia); and five more of over $50 billion (Tanzania, Ghana, Cote d’Ivoire, DRC and Cameroon).

Also Read Interview With Mall for Africa Founder and CEO, Chris Folayan

She points out that in many African countries and regions, key development drivers are inextricably linked to corridors – either by design or fortune. “As such, corridor development and ‘anchor tenants’ or projects are once again becoming critical in Africa’s development story.”

Whitehouse identifies several sectors which are key development drivers on the continent: Agriculture, extractives (stranded minerals), urbanisation & rising incomes, industrial, and ICT, telecoms & power. On the point of urbanisation, Whitehouse points out: “Urban areas in Africa comprise 472 million people. That number will double over the next 25 years as migrants push to cities and due to internal city growth. The largest cities grow as fast as 4% annually.”

She describes the urban “middle class” as not yet a stable entity, but a large “floating class” that hovers just above the poverty line, while the lower-middle consumer group added two million people a year in last decade. The upper-middle class remains a relatively small group, but is growing.

“Wealthier Africans are largely urban and are driving consumption of consumer goods and building materials,” Whitehouse says.

Africa’s top import markets remain South Africa, Nigeria, Kenya, Ghana and Angola, with the key source of supply for all these markets being China. Not surprisingly, China also holds a significant part of the key supplier market share in these countries – 19% in South Africa and Angola and 33% in Nigeria, Kenya and Ghana.

According to Lynn Chamier, event director at dmg events, Africa Trade Week will bring the world to Africa and Africa to the world to source products, discuss issues and trends, and identify opportunities for international trade. More than 11 000 international industry professionals, from 53 countries, as well as more than 500 exhibitors, from more than 40 countries, will gather for the event, which will provide ample opportunity to do business and network.

This year, dmg will introduce a premium “matchmaking” service to assist exhibitors to meet their target market and will set up and facilitate personalised meetings between interested parties.

There will also be a variety of features that visitors can expect to experience at Africa Trade Week, including: The Global Pizza Challenge, Kitchen of the Future, Africa Housekeepers League of Champions, Wine Village, IID Design Pavilion (African Institute of Interior Design) and the DTI/Brand SA pavilion.

Various workshops will also be conducted at the Africa Trade Week, such as the Hospitality Leadership Forum, FoodNext.Africa, the Trade Development Forum, Restaurant Association of South Africa Workshops and South African National Halaal Association Workshops.

Africa Trade Week 2019 will incorporate three leading exhibitions – The Hotel Show Africa, Africa’s Big 7 and SAITEX, as well as their associated conferences and workshops, to create the new home of trade highlighting pan-African business opportunities, products, services, equipment, supplies, innovations, technology and solutions.

To book a stand or to register as a visitor, go to the websites: https://www.saitexafrica.com/https://thehotelshowafrica.com/ ; https://www.africabig7.com/

Press Release

AfCFTA Extends Reach To North Africa

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The African Continental Free Trade Area (AfCFTA) Secretariat and N Gage Consulting signed a Memorandum of Understanding (MoU) to enhance implementation of the AfCFTA within Africa, with a focus on North Africa and Arabic speaking countries as well as harness the potential of the AfCFTA through targeted outreach towards positive impact in Africa. The MoU was sealed by the AfCFTA Secretary General, H.E. Mr. Wamkele Mene and Mr. Karim Refaat, Chairman of N Gage Consulting and Dr. Sherif Fahmy, CEO.

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The was established as an effort to eliminate trade barriers among African countries with the aim of creating a single market size of 1.3 billion people with a combined annual GDP of $3.4 trillion. As the largest free trade area in the world, the AfCFTA is expected to increase intra-African trade and promote regional economic integration of Africa and, as a result, contribute to the sustainable economic and social development of the continent through the creation of employment opportunities and the reduction of poverty.

Pursuant to the MoU, the two parties commit to strengthen cooperation and promote concrete activities in areas of conducting webinars, tailor effective roundtable sessions, public-private dialogues and to develop a series of monthly newsletters to disseminate relevant information through social media platforms with the aim of raising awareness of business and governments on the AfCFTA, its objectives and showcasing AfCFTA’s Guided Trade Initiative and its role in powering trade among members states. 

Additionally, the collaboration will facilitate the preparation for the AfCFTA Business Forum and The Intra African Trade Fair (IATF) and the execution of different capacity building programs for the member states in order to leverage the AfCFTA to boost intra-African trade and utilise Public Private Partnership (PPP) projects to support investment in infrastructure.

The MoU is expected to promote the AfCFTA as a trade liberalisation instrument and sustainable development enabler and accelerator as well as enhance intra-African trade as an engine for economic diversification and industrialisation.

As one of the leading companies operating in the area of government relations and public policy in the MENA region, N Gage Consulting is committed to support the AfCFTA and will deploy all the necessary resources to strengthen and expand cooperation with the AfCFTA Secretariat to enhance African trade integration. 

In addition to her impressive legal background, Rosemond has cultivated a niche expertise in the tech startup ecosystem. She has consistently provided comprehensive consulting, due diligence, and investor readiness services to numerous companies in the tech sector.

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Press Release

Koa Academy Wins MEST Africa Challenge 2023, Secures $50,000 Funding

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Koa Academy team

MEST Africa, a leading Pan-African tech entrepreneurship training program, seed fund, and incubator, proudly announces Koa Academy as the grand prize winner of the 2023 MEST Africa Challenge (MAC), securing a $50,000 equity investment after a competitive pitch battle among Africa’s brightest tech innovators.

In a thrilling showcase of ingenuity and entrepreneurial spirit, Koa Academy from South Africa stood out at the MEST Africa Challenge finale in Accra, Ghana, surpassing contenders from across the continent. This coveted startup competition, known for identifying and nurturing tech talent, saw Koa Academy clinch the top spot with its groundbreaking solution, poised to transform the Edtech industry.

The competition drew applications from hundreds of early-stage tech startups, rigorously assessed on criteria such as innovation, scalability, and team strength. Finalists from Ghana, Nigeria, Senegal, South Africa and Kenya competed in the grand finale, demonstrating their unique solutions and business models to a panel of esteemed judges, including investors and industry experts.

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Koa Academy, Winner of the 2023 MEST Africa Challenge and a South African innovator in online education, offers dynamic and interactive courses for grades 4-12. With a focus on engagement and accessibility, it champions digital learning, making quality education available to anyone, anywhere, and transforming the educational landscape in South Africa. The startup impressed the judges at the MAC Finale showcasing significant market potential, revenue growth, and social impact.

“Winning the MEST Africa Challenge has been an amazing experience for the Koa Academy team. It highlights the hard work and dedication that everyone has put into growing Koa. This recognition is not just an award; it’s a testament to the passion and perseverance that drives us every day. Amidst the challenges, this journey has brought us closer to others across the continent, forging relationships and connections that fuel our mission even further. We are reminded that we’re not alone in this endeavor and are incredibly grateful for the support and learning opportunities this challenge has presented,” said Lauren Anderson, Co-founder and CEO, Koa Academy, expressing gratitude and optimism for the future of tech startups in Africa.

Ashwin Ravichandran, Portfolio Advisor at MEST Africa congratulated the winner and finalists for their exceptional achievements and resilience. The event also highlighted the support of Absa Bank Ghana for contributing to the challenge’s success. The MEST Africa Challenge continues to be a pivotal platform for emerging tech startups in Africa, offering funding, visibility, and support to innovate and scale. Koa Academy’s victory underscores the vibrant potential within Africa’s tech ecosystem, promising a brighter future for the continent’s digital landscape.

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Deel Acquires PaySpace

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Deel announced today that it is acquiring African-based payroll and HR solution company PaySpace for an undisclosed amount. It is one of Deel’s largest acquisitions to date.

PaySpace has more than 20 years of payroll technology experience, providing payroll engines and HR services in 44 countries across Europe, Latam, Middle East and Africa for more than 14,000 customers. Its size, expertise, and proprietary disruptive payroll technology give it unrivaled scale and reach. Customers include multinationals across various industries such as Heineken, Coca-Cola Beverages and Puma Sports SA.

By acquiring PaySpace, Deel will become the first global payroll & Employer of Record (EOR) with its own full-stack payroll engine localized in 50 countries and integrated into its offering. Deel has the ability to be the system of record for HR organizations worldwide and can give its customers a simple and single interface to manage their global teams. All of this results in greater efficiency and control for companies, faster payroll cycles, more localized compliance insights relevant to their workforce, plus the ability to make changes to their payroll at any time.

The news follows Deel’s acquisition of leading APAC payroll provider PayGroup. Deel now owns the full HR stack- entities, local teams (legal, HR, payroll), and local payroll engines – across six continents. Its four-year ambition is to serve 100 countries with native payroll engines, and this acquisition is a significant step toward that goal.

Deel co-founder and CEO Alex Bouaziz said, “Global payroll is hard to do and critical to get right. As a company, you want assurances you can pay your teams on time, compliantly, anywhere in the world. PaySpace’s single-platform payroll expertise and breadth of coverage, particularly in Africa and the Middle East, combined with PayGroup’s presence in APAC, will give Deel customers the reach they need to grow their businesses globally. Our long-term vision is to be the most comprehensive payroll system in the world.”

PaySpace’s proprietary technology is a cloud native framework built as a single engine. Its platform allows for easy configuration to add additional countries through localization. These localization projects normally take years to complete, but with PaySpace’s innovative technology, it can localize much faster than any other payroll provider.

Clyde van Wyk, PaySpace Director explained, ”Like PaySpace, Deel strives to evolve its offering through disruption. We set out to modernize the payroll industry, which was burdened by manual processes and stringent legislative and compliance requirements, much like Deel revolutionized global hiring. This acquisition brings together leading employment services and payroll technology expertise, delivering a unique and powerful customer offering with unrivaled automation, flexibility and scalability.”

Deel also announced today that it has achieved $500M+ in annual recurring revenue (ARR) organically, outside of this acquisition. In under five years, the company has grown to 3,000 team members in more than 100 countries. It has been EBITDA positive and consistently generating cash for a year and a half.

Since its founding, Deel has transformed into the all-in-one HR and payroll solution for global teams. It owns 150+ entities in the world and now manages in-house in-country payroll teams in over 70 countries, in addition to offering Employer of Record, contractor, immigration, HRIS, and performance management services worldwide.

 

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