By our staff reporter

Oxford Business Group (OBG) and the World Association of Investment Promotion Agencies (WAIPA) have released a comprehensive focus report titled “Economic Zones in Africa.” This landmark collaboration highlights the significant impact of Special Economic Zones (SEZs) in Africa, within the context of the African Continental Free Trade Area (AfCFTA). The report emphasizes the importance of investing in education and vocational training to enhance the competitiveness of SEZs and promote broader human capital development, leading to improved living standards for local communities and aligning economic growth with social progress.

The report also examines the strategic integration of Fourth Industrial Revolution technologies within SEZs, showcasing how these advancements drive innovation, boost productivity, and foster sustainable economic growth. It underscores the synergies between SEZs and AfCFTA, facilitating improved market access, reduced trade barriers, and increased participation in regional value chains, ultimately enhancing Africa’s overall competitiveness.

Furthermore, the report emphasizes the critical role of supportive infrastructure development in transport, energy, and digital connectivity. Robust infrastructure enhances the attractiveness of SEZs by reducing logistical barriers and promoting regional economic integration and trade. The Fourth Industrial Revolution is identified as a key driver for African SEZs, advocating for the integration of advanced technologies such as artificial intelligence, the internet of things, and automation. These innovations drive productivity, foster innovation, and create job opportunities within SEZs.

Ismail Ersahin, Executive Director of WAIPA, highlights the pivotal role of Environmental, Social, and Governance (ESG) considerations in shaping the development of SEZs in Africa. He emphasizes the importance of integrating ESG considerations, including eco-friendly infrastructure, fair labor practices, and transparent governance, to attract responsible investors to African SEZs. This approach fosters sustainable growth while promoting ethical and socially impactful initiatives.

Harry van Schaick, OBG’s Managing Editor for Africa, views the partnership with WAIPA as a significant milestone in understanding Africa’s SEZ landscape. The report showcases the immense potential of SEZs under AfCFTA, portraying them as dynamic hubs that drive innovation, economic diversification, and sustainable growth. Van Schaick highlights the imperative need for ESG considerations in the development of African SEZs, including green planning and fair labor practices. The report also emphasizes the pivotal role of supportive infrastructure and stable regulatory frameworks in amplifying the attractiveness of SEZs and fostering regional economic integration.

Investment in education and vocational training emerges as a crucial aspect in enhancing the competitiveness of SEZs while contributing to broader human capital development and improved living standards across the continent.

By Eyasu Zekarias

The Association of Ethiopian Micro-Finance Institution (AEMFI) alarms that there is a great deal of shortage in capital for public access due to the rise of the number of borrowers in the country.

According to AEMFI, the huge volume of borrowers has had a consequential effect in access to credit.

As the association strategically underlines; financial inclusion, job creation and women’s economic benefit are some of the strategies needed at the moment.

As Teshome Kebede, Director of AEMFI pointed out, microfinance (loan and savings) combined with digital technology plays a major role in solving and alleviating the problems faced by low or no income groups.

The Association head underscored that as the number of credit and savings provider institutions grows, it is important to establish a system that allows it to adapt to the reality of the increase and as a result must strengthening the common needs to utilize the full potential of the sector.

According to the information obtained by Capital, 30 of the 50 members of the institution are included in the core banking system.

AEMFI was set up two and half decades ago to deliver financials services to urban and rural households through; technical assistance, human capital development, knowledge management, research, networking and advocating and promoting the industry with mutual cooperation from its members, practitioners and key stakeholders.

By Eyasu Zekarias

Traders in Ethiopian cities, particularly in Addis Ababa, have voiced their worries to Capital about a significant decline in their daily market due to the circulation of false information regarding the availability of donkey meat for consumption. They expressed concerns that if the situation persists, it may force them to exit the market.

One trader explained, “We are now facing repeated inquiries from consumers claiming that the antelope bull they purchased for up to 80,000 birr is actually donkey meat.” He further added, “This has caused disputes among customers.”

When asked about the financial impact, Yohannes and Bekeret Butchery stated, “Aside from the income aspect, legally slaughtered ox meat, which used to be a popular choice, is losing its market value due to these false claims.”

Business owners, considering the situation as a serious matter, reported a loss of 10 to 15 percent of their income. They condemned the act, stating that it is not only offensive from a religious and personal standpoint but also goes against the cultural norms of the community.

According to the traders who spoke with Capital, the price of meat per kilogram has dropped from over 750 birr to 500 birr. They attributed this decline to the rapid spread of inaccurate information through social media platforms.

It has been reported that the Addis Ababa Regulation Enforcement Authority is actively working to address the issue of illegal slaughtering in the city. They have announced that individuals involved in or facilitating illegal slaughtering will face fines of up to 15,000 birr.

The population of donkeys in the continent is also said to be declining due to the high demand for their skins, resulting in hundreds of thousands of donkeys being slaughtered and primarily exported from African countries. The demand for donkey skins, particularly from China, stems from their use in producing gelatin known as “Ejiao,” which is utilized in Chinese traditional medicine and cosmetics.

By our staff reporter

The International Trade Centre (ITC), a United Nations agency focused on assisting small businesses, is collaborating with the TRAIDE Foundation and the Embassy of the Kingdom of the Netherlands. Their joint effort aims to promote direct and long-term trade connections between Dutch buyers of green coffee and coffee producers in Ethiopia.

The TRAIDE Foundation, which receives funding from the Netherlands Ministry of Foreign Affairs, acts as a facilitator for companies and stakeholders in Africa. They connect these groups with financing solutions and have a particular focus on the Dutch market, although they are not limited to engaging exclusively with Dutch companies. Currently, TRAIDE operates in Ethiopia and Rwanda, maintaining local offices in both countries.

Recently, ITC and TRAIDE led a tour for Dutch buyers in Ethiopia. The purpose of the tour was to allow selected green coffee buyers to meet Ethiopian coffee producers who are part of ITC’s sustainable agribusiness Alliances for Action initiative. This initiative operates under the Netherlands Trust Fund V programme in Ethiopia, which is funded by the Dutch Ministry of Foreign Affairs.

The objective of the tour was to establish relationships between buyers and producers, laying the foundation for long-term trade connections based on trust and mutual growth. This approach aims to benefit both buyers and suppliers, ensuring sustainability in the long run.

During the tour, the buyers gathered in Addis Ababa before embarking on a two-day visit to coffee farms and cooperatives belonging to the Yirgacheffe Coffee Farmers’ Cooperative Union and the Oromia Coffee Farmers Cooperative Union. They had the opportunity to examine coffee trees and cherries during the peak of the harvest season, observe the washing and drying process that transforms cherries into green beans, and engage in discussions with union and cooperative managers. Additionally, topics such as the upcoming European Union Corporate Sustainable Due Diligence Directive (CS3D), the Deforestation Act, and concepts of direct and fair trade and specialty coffee were addressed.

The tour concluded with a networking event in Addis Ababa, bringing together the buyers, the Ethiopian Coffee and Tea Authority, ITC-Alliances for Action’s network of Ethiopian coffee producers, and other Ethiopian coffee stakeholders. The event garnered significant participation, and any subsequent commercial relationships will be jointly monitored by ITC and TRAIDE through the NTFV programme.

“A relationship built on mutual trust creates a sustainable business environment and fosters a caring connection that goes beyond mere profit-making,” said Erkehun Woldegiorgis Hirbaye, General Manager of the Yirgacheffe Coffee Farmers Cooperative Union in Ethiopia.

“First-hand experience is the most convincing way for our buyers to understand the realities on the ground. Seeing is believing,” said Dejene Dadi, General Manager of Oromia Coffee Farmers Cooperative Union in Ethiopia.

“As a coffee trader, it is the dream of all coffee lovers to visit Ethiopia, the country where coffee trees grow naturally in its beautiful forests. Having direct experience and establishing connections with farmers and producer unions of some of the world’s best coffees was an incredibly insightful experience. I am immensely grateful to TRAIDE and ITC for giving me this opportunity and facilitating these connections,” said Marco Roberti, Green Coffee Trader at Daarnhouwer, Netherlands.