Economy

Zambia has agreed to reopen its border with the Democratic Republic of the Congo (DRC) after a brief closure over the weekend due to a trade dispute. Zambia had closed the border after the DRC banned the import of soft drinks and beer from its southern neighbor. The decision threatened the DRC’s mineral exports, with a significant volume transported through Zambia to coastal shipping points. Unsurprisingly, it proved unpopular, sparking protests from Congolese truckers near the border town of Kasumbalesa and criticism from Zambian business groups. Following the backlash, Zambia’s Commerce, Trade, and Industry Minister Chipoka Mulenga traveled to the Congolese city of Lubumbashi, where he met with Congolese officials to resolve the issue. Source: DW

Tanzania’s trade with India has grown at a very impressive pace, growing over 20% during the fiscal year. Media reports cited the statement from the High Commission of India in Dar es Salaam, revealing that trade between Tanzania and India increased by 22% in the last fiscal year. Their bilateral trade value went up from $6.48 billion in 2022/23, to $7.9 billion in the year leading up to May 27, 2024. This meant that Tanzania had moved past Nigeria which was previously India’s second-largest African trading partner, and has taken the country’s place. Pigeon peas, avocados, and Cashew nuts are some of the products Tanzania sells to India, while it buys petroleum products, industrial machinery, and automobiles amongst other things from India. Business Insider

A new study from Visa, the SME Megatrends report, delves into the ever-evolving financial landscape for Small and Medium Enterprises (SMEs) in Nigeria. The report identifies significant opportunities for growth and innovation, particularly in the digital and financial domains, with clear insights that can be leveraged by issuing banks to unlock new revenue opportunities and gain a competitive edge. Businesses in Nigeria are in the midst of significant transformation, as high internet and social media penetration incentivize SMEs to build an online presence and growing e-wallet use spur digitalization. This is creating a latent demand for SMEs to develop online presence and e-commerce capabilities to reach new customers, with a need for robust and simplified tools to enable access. However, SMEs remain underfunded and underbanked, requiring access to formalized credit to expand businesses and meet day-to-day cashflow constraints. Business Insider