African countries are gradually relaxing their visa requirements and easing up their issuing processes in a bid to foster travel within the continent and enhance intra regional trade; this is according to an observation made by the African Development Bank.
Over the years it has been extremely difficult for Africans to travel within Africa than it was for non Africans to entre and move around the continent, defying African Union regional integration efforts, however recently many African countries have been opening up their immigration laws and easing up travel for fellow African travelers. The Africa Development Bank’s Visa Openness Index for 2019 has found out that for the first time Africans have travel access to 51% of the continent and now only need visas to travel to fewer than half of other African countries.
Of the 51% of countries Africans can access more freely, 26% offer visas on arrival while 25% do not require prior visas from African travelers. Much of the progress is down to several countries on the continent opting for more liberal visa requirements from African travelers.
Ethiopia announced a more liberal visa on arrival policy for African travelers last October and jumped a record 32 places on the Visa Openness index. Senegal, Angola, Ghana, Benin and Gabon are also credited with taking up more open visa policies for Africans over the past year.
Overall, 28% of African countries improved their visa openness scores in the period. There are already signs that liberalization of visa regimes in Africa will continue over the next year as well. Nigeria, Africa’s largest economy, has already committed to begin issuing visas on arrival for all African nationals this year. Seychelles an island in the Indian Ocean leads the continent with the most liberal and open Visa requirement system in place. Benin and Senegal come second and third respectfully.
Botswana lagging behind
In the case of Botswana, the landlocked country has declined in the rankings, moving down a spot from number 30 in 2018 to 31 in 2019. Botswana has been cited under the “Countries looking to open up” rank. In an effort to improve the ease of doing business in the country, Botswana announced in 2018 that it will offer Tourist Visa at point of entry effective 24th November 2018.
This announcement was made by President Mokgweetsi Masisi at the High Level Consultative Conference. Eyed to promote the tourism sector and boost the business environment, government announced this move to liberalize its visa regime by offering tourist visas on arrival. The new visa-on- arrival policy is anticipated to make travel to Botswana easier for African travelers.
Africa Air Travel
While easing visa rules is one thing, smoother air travel for travelers across the continent is quite another. Yet, the African Union has also recorded strong progress in this regard with the launch of the Single Air Transport Market initiative to ensure cheaper and more regular direct flights between African countries. The continent has been advocating and lobbying for an eased up intra continent travel and the free skies for various take homes. The benefits of a continent with more open borders for African travelers’ ranges from increased intra-Africa trade to boosting local tourism industries.
There’s already evidence of what’s possible as a 2017 report by United Nations Conference on Trade and Development showed Africans accounted for 40% of international tourist arrivals on the continent despite erstwhile visa and travel complications. However experts say despite progress recorded, there is still a long way to go exemplified by Equatorial Guinea, the tiny oil-rich state which ranks low on the Visa Openness index as it still requires pre-acquired visas from all Africans.
African Development Bank Vice President for Regional Development, Intergration and Business Delivery Dr. Khaled F. Sherif observed in the index that in 2019, a record 47 countries improved or maintained their visa openness scores, which on average are rising year-on-year. Today, African travelers no longer need a visa to travel to a quarter of other African countries, whereas visa-free travel was only possible to a fifth of the continent in 2016.
While the top 10 and top 20 continue to champion open visa policies, more countries in all regions are following this model, including most recently Africa’s upper-middle-income countries. To streamline the travelers’ experience, 21 countries Africa-wide now provide eVisa platforms boosting transparency and accessibility.
“Now, as Africa paves a pathway to prosperity with the African Continental Free Trade Area, we are all responsible for accelerating its progress. Integration depends on investments and interconnectivity, and it is imperative that Africa’s population moves with greater freedom,” he said.
African Development Bank President Akinwumi A. Adesina says Regional integration is crucial for Africa’s accelerated development. “We must connect landlocked countries to ports, we must allow free movement of people , Investors must be able to invest beyond the borders of countries and Africa must trade more with itself, apart and divided, Africa is weakened, Together and united, Africa will be unstoppable,” he said.
The state of the art jewellery manufacturing plant that has been set up by international diamond and cutting company, KGK Diamonds Botswana will create over 100 jobs, of which 89 percent will be localized.
Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.
According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.
The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.
Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.
Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the company’s market capitalization.
Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana. The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.
African heads of state and global CEOs at the World Economic Forum Annual Meeting backed the launch of the first of its kind report on how public-private partnerships can support the implementation of the African Continental Free Trade Area (AfCFTA).
AfCFTA: A New Era for Global Business and Investment in Africa outlines high-potential sectors, initiatives to support business and investment, operational tools to facilitate the AfCFTA, and illustrative examples from successful businesses in Africa to guide businesses in entering and expanding in this area.
The report aims to provide a pathway for global businesses and investors to understand the biggest trends, opportunities and strategies to successfully invest and achieve high returns in Africa, developing local, sub-regional and continental value chains and accelerating industrialization, all of which go hand in hand with the success of the AfCFTA.
The AfCFTA is the largest free trade area in the world, by area and number of participating countries. Once fully implemented, it will be the fifth-largest economy in the world, with the potential to have a combined GDP of more than $3.4 trillion. Conceived in 2018, it now has 54 national economies in Africa, could attract billions in foreign investment, and boost overseas exports by a third, double intra-continental trade, raise incomes by 8% and lift 50 million people out of poverty.
To ease the pain of transition to its new single market, Africa has learned from trade liberalization in North America and Europe. “Our wide range of partners and experience can help anticipate and mitigate potential disruptions in business and production dynamics,” said Børge Brende, President, and World Economic Forum. “The Forum’s initiatives will help to ease physical, capital and digital flows in Africa through stakeholder collaboration, private-public collaboration and information-sharing.”
Given the continent’s historically low foreign direct investment relative to other regions, the report highlights the sense of excitement as the AfCFTA lowers or removes barriers to trade and competitiveness. “The promising gains from an integrated African market should be a signal to investors around the world that the continent is ripe for business creation, integration and expansion,” said Chido Munyati, Head of Regional Agenda, Africa, World Economic Forum.
The report focuses on four key sectors that have a combined worth of $130 billion and represent high-potential opportunities for companies looking to invest in Africa: automotive; agriculture and agroprocessing; pharmaceuticals; and transport and logistics.
“Macro trends in the four key sectors and across Africa’s growth potential reveal tremendous opportunities for business expansion as population, income and connectivity are on the rise,” said Wamkele Mene, Secretary-General, AfCFTA Secretariat.
“These projections reveal an unprecedented opportunity for local and global businesses to invest in African countries and play a vital role in the development of crucial local and regional value chains on the continent,” said Landry Signé, Executive Director and Professor, Thunderbird School of Global Management and Co-Chair, World Economic Forum Regional Action Group for Africa.
The Forum is actively working towards implementing trade and investment tools through initiatives, such as Friends of the Africa Continental Free Trade Area, to align with the negotiation process of the AfCFTA. It identifies areas where public-private collaboration can help reduce barriers and facilitate investment from international firms.
About the World Economic Forum Annual Meeting 2023
The World Economic Forum Annual Meeting 2023 convenes the world’s foremost leaders under the theme, Cooperation in a Fragmented World. It calls on world leaders to address immediate economic, energy and food crises while laying the groundwork for a more sustainable, resilient world. For further information,