East Africa

Saudi Arabia plans to build a bridge to Africa

Neom city bridge to Africa

Saudi Arabia plans to build a $500 billion megacity that links to Africa via a bridge over the Red Sea. The development is part of Crown Prince Mohammed bin Salman's Vision 2030 plan to diversify Saudi Arabia's oil-driven economy.

At 16,400 square kilometres, the megacity would be 33 times as large as New York City and one of the largest cities in the world to run on 100% renewable energy. Its name, Neom - from the Arabic terms for "new" and "future" - symbolises its utopian vision of robot workers and drone taxis, and it would connect to Africa via a bridge over the Red Sea.

The smart and tourist cross-border city planned for construction is located in the far north-west of Saudi Arabia and is planned to be be constructed in Tabuk. It includes marine land located within the Egyptian and Jordanian borders. It aims to embrace digital technologies and services to make the city a major commercial location in the Middle East.

The project is estimated to take between 30 to 50 years to complete, however, with the first phase due by 2025.

It will be an independent zone, with its own regulations and social norms, created specifically to be in service of economic progress and the well-being of its citizens, in the hopes of attracting the world’s top talent and making Neom a hub of trade, innovation and creativity.

Djibouti Port: Trade and Logistic Hub for Africa

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East Africa

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Chinese-built Industrial Park Provides New Momentum to Ethiopia’s Growth

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Chinese-built Industrial Park Provides New Momentum to Ethiopia’s Growth

As African countries pursue industrialization, the Chinese-built industrial parks and free trade zones have been gaining momentum in the socio-economic drive of the continent, some significantly accelerating the process of industrialization and job creation. Located about 40 km south of Addis Ababa, the Eastern Industrial Zone (EIZ), built and operated by Chinese companies, is widely viewed as the benchmark for the development of industrial parks in Ethiopia. A decade ago the land the Eastern Industry Zone currently lies on was just agricultural land, but with hard work it has today become a showcase of high quality industrial factories in sectors such as pharmaceuticals, pulp and textiles. The industrial zone was inaugurated by Ethiopian Prime Minister Abiy Ahmed, Djibouti's President Ismail Omar Guelleh and Sudanese President Omar al-Bashir who traveled to Ethiopia's western town of Jimma, approximately 350 kilometres west of Addis Ababa. At the ceremony, Ahmed said the park would help with the industrialization process of Western Ethiopia and create a large number of jobs for young Ethiopians. According to Ethiopia's Industrial Parks Development Corporation (IPDC), the park will create some 12,000 direct jobs for Ethiopians. The EIZ, Ethiopia's first industrial zone, has provided more than 10,000 jobs for local people. Developers are given income tax exemption for 10 years if building an EZ in Addis Ababa (and its surrounding special zone of Oromia), but for 15 years if EZs are built in other regions. The duration of land leasing is also longer for EZs in non-capital areas. In addition, a full exemption of customs duty on spare parts is granted to manufacturers who exclusively engage in export-oriented production, while partial exporters can receive exemptions only on parts equal to 15% of the total value of the capital goods. Manufacturers who export 80% of their products can enjoy additional years of income tax exemption. Moreover, priority is given to investment in agro-processing, textiles and garments, leather and leather products, sugar, chemicals, metal and pharmaceuticals. Although bidding for zone construction is open to both local and international contractors, in practice, local companies can hardly compete with the more experienced and financially resourceful Chinese counterparts. The IPDC is reported to prefer awarding projects, from design to construction, to contractors who come with their own financial sources. Other bidder qualifications include a minimum annual turnover of 6 billion Ethiopian Birr, prior experiences of building at least two EZs, and a sound local business record. Thanks to the industrialization driven by industrial parks, Ethiopia's gross domestic product remained at a growth rate of above 8 percent between 2010 and 2020, creating an economic miracle on the African continent. As Ethiopia envisions building 15 industrial parks in the coming few years, it is estimated that the parks alone will produce more than 150,000 direct jobs. In the 40-hectare Eastern Industrial Zone, Chinese shoemaker firm Huajian Group produces for brands like Guess, Calvin Klein, Nina and other branded items. Huajian Group has already raked in more than $35 million in foreign exchange income for Ethiopia. The Eastern Industrial Zone (EIZ) in Ethiopia is part of the story of how China has built overseas trade and economic cooperation zones in Cambodia, Vietnam, Pakistan, Zambia, Egypt, Nigeria and elsewhere. It is estimated that Chinese companies have built 75 zones for economic and trade cooperation in 24 countries along the Belt and Road routes, contributing more than $2.2 billion of taxes and creating almost 250,000 local jobs. Manufacturing in Ethiopia Being Africa's second most populous nation, Ethiopia has an abundant workforce. More than 70 percent of its 100 million population is estimated to be under the age of 30. As the East African country is exploring ways to realize its demographic dividend while transforming its agriculture-dominated economy towards a manufacturing hub of Africa, China's development model of industrial parks has been considered as an option. Currently, 15 industrial parks are in the pipeline across Ethiopia, most of which are being constructed by Chinese companies. Six of the industrial parks have officially gone operational in the past few years, attracting a large number of transnational companies from China, India, South Korea and other countries. Ethiopia now exports shoes produced by Huajian to European and American markets, while many of the taxis on the streets of the Ethiopian capital and other cities are assembled by Lifan Motors. The EIZ is Ethiopia's first industrial zone and has inspired the government to establish more such parks in the country. "These industrial parks are vital elements of the infrastructure supporting the structural transformation in Ethiopia that can attract institutional investors," said Costantinos Bt. Costantinos, an economic advisor to the African Union (AU) and the United Nations Economic Commission for Africa (ECA). Industrial Parks, Free Trade Zones Across Africa Free trade zones and industrial parks in Djibouti, Nigeria and South Africa also created jobs for local citizens and promoted the economic development of these countries. Besides Ethiopia, Djibouti, Kenya, Nigeria and South Africa, Chinese-built industrial parks and free trade zones, which are key to attracting investors, have taken root in many other African countries. Djibouti A Chinese-built international free trade zone was inaugurated in Djibouti, a country with a population of nearly 1 million. At the construction site of the free trade zone, a tall modern office building has been erected. Some 70,000 square meters of warehouses and 65,000 square meters of storage yards have also been completed. With a planned construction area of 48.2 square kilometres, the free trade zone occupies one-tenth of the country's available land area and has attracted more than 25 companies that have decided to operate from the free zone. Nigeria In the Western African nation of Nigeria, the construction of the Lekki Free Trade Zone is also progressing steadily. The free trade zone is invested, constructed and operated by the Lekki Free Trade Zone Development Company. The zone incorporates, among others, oil and gas warehousing, furniture manufacturing, garment production, trade logistics, engineering construction services, industrial real estate, automobile assembly, steel structure processing and manufacturing, steel pipe production, daily necessities and other industries. South Africa South Africa is an important platform for investors to enter the African market because it is one of the most developed countries in the region. In 2013, Chinese consumer electronics company Hisense and the China-Africa Development Fund teamed up to inject $33 million to build a home appliance industrial park in the Atlantis area, about 50 km west of Cape Town. Latest statistics show that the TV sales market share of Hisense in South Africa has reached 25.1 percent, ranking first in the market. It is followed by refrigerator sales which account for 24.2 percent of the total market share. As of July 2018, its annual TV production capacity is about 400,000 units, while the refrigerator production capacity is about 400,000 units annually. All in all, the mutually beneficial cooperation between China and South Africa in the park has impressed everyone – except for the usual critics who see China as a threat to the traditional hegemony of the western world over the African markets.

Automobiles Sector

Uganda's Automotive Spare Parts Market

Uganda's automotive spare parts market is undergoing significant transformation, driven by a combination of rising vehicle ownership, strategic local manufacturing initiatives, and the gradual digitization of parts distribution. According to a recent study conducted by the research team of Africa Business Pages, Uganda has over 2.3 million registered vehicles which has helped create a robust demand base for aftermarket spare parts. As a result, the automotive spare parts sector in Uganda has attracted both established importers and innovative domestic manufacturers. Market Overview: Demand Dynamics and Import Infrastructure According to the study, Uganda's automotive sector is characterized by a high prevalence of used vehicles, predominantly imported from Japan, South Korea, UAE and Europe. This reliance on aging fleets – averaging 10-15 years in operational lifespan – creates sustained demand for replacement components, particularly brake parts, engine parts, batteries, filters, suspension systems, and electrical components. Mandela Auto Spares, one of Uganda's largest parts stockists, maintains over 12,000 SKUs specifically tailored for Japanese models like Toyota, Mitsubishi, and Isuzu, reflecting market alignment with prevalent vehicle makes. Annual parts consumption is estimated at $8 billion continentally, with Uganda contributing a growing share amid its 11% year-on-year demand growth. Import Infrastructure and Regional Trade Networks As the East African Community's leading auto parts importer, Uganda accounts for 37% of regional shipments, with 4,364 annual import transactions. Key trade corridors include: India: 1,971 shipments, specializing in lead molds and electrical components United Arab Emirates: 1,045 shipments, focused on assorted spare parts China: 1,045 shipments, supplying engine and chassis components This import ecosystem remains critical due to limitations in local production capacity. However, rising freight costs and supply chain disruptions post-2020 have incentivized shifts toward domestic manufacturing, as seen in Standard Waves Ltd's expansion from 1 workshop to 4 production facilities since 2016. Uganda: The Hub for Re-Exports in East Africa Ugandan importers, wholesalers and distributors increasingly act as re-export hubs for landlocked neighbouring countries in East Africa. A 2024 survey found 37% of UAE goods imported via Kampala were onward-shipped to Kigali and Juba, leveraging Uganda’s COMESA-certified warehousing zones. This secondary trade generated $96 million in logistics revenue for Ugandan firms, incentivizing further imports from the UAE. Standard Waves Ltd: A Case Study in Import Substitution Founded in 2016, Standard Waves Ltd (SWA) exemplifies Uganda’s nascent manufacturing push, producing 1,000+ replacement parts for 80 vehicle models. Their product range spans oil filters, engine mounts, and specialized fasteners, capturing 20% of the domestic market through competitive pricing – 30–40% below imported equivalents. Strategic government backing, including tax incentives and land allocations for factory expansion, underscores policy alignment with the National Development Plan III’s industrialization targets. Hon. Evelyn Anite’s endorsement during SWA’s facility tour highlighted state priorities: “Local manufacturing isn’t optional; it’s essential for job creation and forex preservation.” Brick-and-Mortar and Service Integration Mandela Auto Spares’ B2B model – supplying government ministries, UN agencies, and 60+ garages – demonstrates the enduring relevance of physical distribution. Their value-added services, including direct-to-garage parts delivery with labor-only billing, reduce counterfeit risks and improve fleet maintenance outcomes for institutional clients. Kampala hosts 114 registered spare parts distributors, though market fragmentation persists, with 80% operating single-outlet models. eCommerce Acceleration and Market Democratization The vehicle parts eCommerce sector, projected to reach $1.9 million by 2025, is reshaping rural access. Platforms like Volza.com facilitate SME imports through consolidated shipping, while SWA’s digital catalog – accessed by 40% of its customers – enables just-in-time ordering for mechanics outside Kampala. However, logistical bottlenecks limit same-day delivery to major hubs, with 72-hour lead times common in Northern and Eastern Uganda. Tax Regimes and Their Market Impacts Uganda’s automotive policies present a dual-edged sword: Import Duty Waivers: Reduced tariffs on machinery imports (from 10% to 7%) aided SWA’s expansion. Excise Taxes: 20% levies on imported parts sustain price gaps favoring local manufacturers. The 2023 Automotive Industry Development Bill proposes further incentives, including VAT exemptions for locally produced parts exceeding 60% domestic content. Market Growth Trajectories The Middle East and Africa spare parts market, valued at $13.36 billion in 2024, expects 5.9% CAGR through 2031, with Uganda outperforming at 7–8% driven by: Vehicle Electrification: Emerging demand for hybrid battery components and charging parts. Aftermarket Expansion: 45% of vehicles aged 15+ years require frequent part replacements. Uganda’s automotive parts market stands at an inflection point, balancing import reliance with nascent industrialization. With strategic public-private synergies, Uganda could capture 15-20% of the regional aftermarket by 2030, translating to $2.2 billion in annual revenue. The sector’s growth will increasingly hinge on technology adoption, quality enforcement, and workforce upskilling – a roadmap requiring coordinated investment and policy agility.

Business Outlook

Africa Might Emerge As A Major Supplier of Halal Food

With the Belt and Road Initiative poised to transform market access across Asia, potential partnerships with African companies are opening as they seek to target Asian consumers. In particular, many South African halal food producers have high hopes that Hong Kong could prove the ideal gateway for boosting their exports across the region. By 2030, the global Muslim population is estimated to number some 2.2 billion, representing about a quarter of the world’s consumers. This substantial demographic shift will result in increasing demand for halal products. The global halal food industry is estimated to be worth US$2.3 trillion, and South Africa is among many countries hoping to capitalise on this rapidly expanding market. Despite its relatively small Muslim population, South Africa is a world-leader in producing and – importantly – certifying halal products. The country’s exporters see Asia as one of the fastest-growing markets for halal goods; by 2030, it’s projected that Asia will be home to 80 per cent of the world’s Muslim population. “South Africa has long had a significant number of domestic producers of halal food,” said Ebi Lockhat, a spokesman for the South African National Halaal Authority, the country’s leading halal certifying body. “Those manufacturers are now starting to become active internationally. This has seen many of them attend trade events across the Muslim world, while looking to establish a firm presence in the international markets.” South Africa’s halal production system is subject to high certification standards, ensuring compliance with the requirements of Muslim consumers. Eating only properly-certified food is mandatory for practising Muslims, with such proof of compliance providing an assurance that all such foodstuffs have been produced according to Islamic law. In line with this, plans are now in place to further enhance South Africa’s position within the sector. This includes the launch of a government-backed US$67 million halal food-processing industrial park. This new facility will ramp up South Africa’s halal food export capacity, with the aim of doubling its share of the global market. A feasibility study is underway in the Cape Town area to determine the best location for the proposed park. When completed, the park will comprise a cluster of halal manufacturing and service firms. South Africa’s Western Cape provincial government also hopes to attract a globally recognised halal certifying body to operate out of the site. Halal Food Industry in Africa For the provincial government, growing the halal industry is now a key focus as it looks to boost growth and create new jobs in the region. “This industry is growing at an estimated annual rate of 20 per cent,” said Alan Winde, Western Cape Minister of Economic Opportunities. “This is why we are now looking for significant growth in the size of the province’s halal industry. “Certification is also hugely important. In addition to developing a guide to the current certification standards, we will work with the appropriate certification bodies in order to try and establish a single standard, one that is in line with global market demands.” The new park is being planned in collaboration with the Malaysian government, which has itself identified a shortfall in the provision of halal food for the world’s growing Muslim population. As a result, the Western Cape Fine Food Initiative, another partner in the proposed park, and the Malaysian Industry Government Group for High Technology signed a long-term cooperation agreement to foster partnerships between the two countries’ halal industries. In the 1970s, Malaysia was the first country to set halal food production certification standards, which are still viewed today as a global benchmark. With Malaysia at the heart of the Asian halal market, South Africa’s halal producers are expected to greatly benefit from Malaysia’s experience and reputation in the sector. The Market for Halal Food China is also looking to increase its share of the global halal food market. This move has been partly spurred by the country’s adoption of the far-reaching Belt and Road Initiative. Significantly, many of the countries along the proposed Belt and Road routes have substantial Muslim populations. As a result, China is keen to match its export offer with the needs of its Muslim neighbours along the Belt and Road. Chinese companies currently export less than one per cent of the global total of halal foods, but want to substantially expand their share of the sector. Many Chinese suppliers, however, will be hampered by the poor reputation of the country’s domestic food industry. This leaves a clear opportunity for producers of properly-regulated and certified halal foods to work with distributors in the region. As a key player in the Belt and Road Initiative, African countries are ideally positioned to adopt a primary role in the processing and distribution of such produce, with South Africa keen to be its supply partner. The rand’s expected fall to an all-time low means that importers can buy South African products for about 33 per cent less than a few years ago. “Countries such as Malaysia, Singapore and China are critical markets for halal produce,” said Nazeem Sterras, Chief Executive of the Western Cape Fine Food Initiative. ASEAN, in particular, presents a huge opportunity for distributors, while the overall Asian halal market is estimated to be worth around US$410 billion annually.”

North Africa

Morocco Fights Illegal Imports from Ceuta

Morocco is building a free trade economic zone in the northern town of Fnideq, near the Spanish-administered enclave city of Ceuta, in a bid to reduce illegal imports. Smuggling through Ceuta has been significant. The value of smuggled goods entering Morocco through the Ceuta border at between US$620 million and US$800 million per year, resulting in substantial losses in unpaid duties. In contrast, Ceuta’s legal exports to Morocco are estimated at only about US$53 million. The new free trade zone will host several customs warehouses dedicated to high-demand goods, such as textiles and food products, that will be imported through Morocco’s Tanger Med mega port. Textiles and food products have been among the most commonly smuggled commodities through Ceuta. The facility will also have an area for the conditioning and labelling of incoming merchandise. Dining, leisure and entertainment facilities, as well as landscaped green spaces, will also be created in the zone. The current stage of construction is focusing on land levelling and road infrastructure planning, at a cost of MAD 91 million. Morocco has cracked down hard on the illegal import of goods through the Ceuta border. Aside from being another nail in the coffin for illegal imports, the free zone also seeks to improve import procedures and goods transit between Ceuta and Morocco; raise revenue by boosting export operations; and create jobs for the local workforce that have lost their source of income due to the suspension of smuggling. This is estimated at about 78,000 inhabitants of Fnideq and 380,000 residents of Tetouan. The decision is having a ripple effect in many sectors, including transportation. Traders are forecasting sharp drops in the IPSI, an indirect tax on goods, as well as port duties and sales, all of which will “trigger firings and readjustments” in Ceuta, a city of 85,200 people where unemployment is already above 25%. The enclave of Ceuta was once seen as a gateway to Europe for migrants coming from across the African continent and beyond. The Ceuta border fence forms part of the Morocco-Spain border at Ceuta. Constructed by Spain, its purpose is to prevent smuggling and to stop migrants from entering Europe. Morocco objected to the construction of the barrier since it does not recognize Spanish sovereignty in Ceuta. The crackdown has also created a political crisis that is proving difficult to handle.

Automobiles Sector

Demand for Armored Vehicles in Africa

Demand for armored vehicles in Africa is growing at an exponential rate as increasing internal and cross-border conflicts across Africa accelerate and create a huge market for security armored vehicles of all kinds. According to a recent report, the global armored vehicles market is expected to grow to US$ 26.37 billion by 2027, growing at a CAGR of 5.7%. On the other hand, the Middle-East & Africa armored vehicles market is projected to register a CAGR of more than 2.5% in the same period. In Africa, the demand for armored cars and vehicles has been growing at a steady pace due to the rising intensity of cross-border tensions across several African states. For example, in East Africa, recent tensions between Ethiopia and Somalia have always been high, even resulting in frequent border skirmishes in some cases. Similarly, cross-border skirmishes between Sudan and South Sudan have become commonplace. In many other regions also such tensions have escalated in recent years. Armored Vehicles: Rising Demand in Africa Steady ramping up of military expenditure by many African countries will prove beneficial for this market for armored vehicles. Many African countries are in the process of upgrading their defense forces with modern weaponry to better equip their soldiers in the battlefield, which augurs well for this market as armored vehicles are vital in ground-level combat as well as in border patrolling activities during peacetime. For instance, the complex military situation in Ethiopia and Eritrea has kept regions surrounding these countries in a mode of self-preservation. Moreover, historical internal conflicts such as the one in Tigray (Ethiopia) have kept governments on their toes. Armored vehicles are a key component in a nation’s military arsenal as they empower armed forces to efficiently monitor border situations and deter any forthcoming attacks. Clearly, the geopolitical and military conflicts in Africa are driving the modernization plans of various military forces in Africa. Thus, the African continent needs to replace aging armored vehicle fleet with newer-generation armored vehicles. Market for Armored Vehicles in Africa Multi-lateral collaboration between African countries such as North Atlantic Treaty Organization (NATO) and the African Union to counter terrorism and maintain peace is also expected to favour market growth. The market is also anticipated to be driven by various African governments opting for the latest machinery to counter emergencies caused by insurgencies and militant attacks. Moreover, increasing communal riots and organized crimes in regions such as East Africa as well as North Africa are expected to drive market demand. Increasing defense budgets, particularly in East Africa, is anticipated to further boost market growth. The goodwill of industry participants is expected to play a key role in contract allotments. Advancements such as increased fuel efficiency and use of high-tech sensors are expected to drive the market over the next few years. Commercial Demand for Armored Vehicles in Africa Commercial applications of armored vehicles include VIP protection, armed convoys, and patrols. Rising demand for rental and leasing protected van services owing to increasing awareness about personal safety is also expected to favor the growth of the commercial segment in the coming years. Additionally, owing to soaring crime rates across several African countries, organizations and banks are opting for protected trucks or vans to carry valuables, transfer money from banks to ATMs, and transfer cash collected at large commercial establishments to banks. Demand is specially high in Africa for Armored personnel carrier (APC), Infantry Fighting Vehicle (IFV), mine-resistant ambush-protected (MRAP), main battle tank (MBT), armored cars, vehicles carrying armored self-propelled artillery, light armored vehicles, armored ambulance, armored recovery vehicles, assault amphibious vehicle, armored vehicle-launched bridge (AVLB), armored utility vehicles, and other support vehicles. The extensive use of armored vehicles during the recent Presidential elections in Uganda is also indicative of the rising demand for aromored vehicles in African countries. United Arab Emirates: Anticipated Highest Growth Over the past few years, the military equipment procurement of the UAE increased at a rapid pace, due to the involvement of the country in regional conflicts. The country also plans to modernize all units of the UAE armed forces with new and advanced military equipment to continue developing capabilities. In May 2020, the US government approved the sales of about 4,569 Mine Resistant Ambush Protected (MRAP) armored vehicles, under the Excess Defense Articles program. Similarly, in February 2019, the UAE government signed an initial procurement contract worth US$ 2.7 million for four of the Mbombe 4x4 armored vehicles from Paramount. These vehicles can be integrated with a variety of different weapons and payloads, from 30mm cannon turret and cameras to an electronic warfare suite to support a wide range of missions. If the vehicles meet the requirements of the UAE army, the government will increase the number of Mbombe vehicles on order. Such robust plans of the government to rapidly increase the fleet of armored vehicles are anticipated to propel the growth of the market in the coming years. Competitive Landscape Some of the prominent players in the Middle-East & African armored vehicles market are Mahindra & Mahindra Limited, NIMR Automotive LLC, STREITGroup, BMC Otomotiv Sanayi ve Ticaret A?., and KocHolding AS. The market of the armored vehicles has both regional and international players with significant shares in the market. In addition to the efforts of the international players, the domestic players in the market are increasing their product portfolio to enhance their position in the market. For instance, BMC’s Tulgaarmored pickup truck, developed for the Turkish internal security forces, is expected to enter mass production. The company claims that armored vehicles are expected to become prominent options in the Middle-East in the coming years. Such factors are anticipated to help the companies increase their presence in, and attain profits from, the region in the coming years. In fact, several domestic players in the UAE market have been using marketing and promotion services of Africa Business Pages to reach buyers in Africa by advertising their products and services through Africa Business Pages and its associate network of Africa-centric B2B portals. Notable among them are Harrow Security Vehicles, SchutzCarr Armored Cars as well as Emirates Special Vehicles (ESV). Demand for Armored Vehicles in Africa “Africa is an important market for armored vehicles and we are happy to partner with Africa Business Pages to promote our products and services in the lucrative African markets,” says Saleem Ansari, Executive Director of Emirates Special Vehicles (ESV). “By showcasing our state-of-the-art armored vehicles to our target audiences through Africa Business Pages, we aim to further expand our sales network across the African continent,” he says.

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Saudi Arabia plans to build a bridge to Africa

Chinese-built Industrial Park Provides New Momentum to Ethiopia’s Growth

Uganda's Automotive Spare Parts Market

Africa Might Emerge As A Major Supplier of Halal Food

Morocco Fights Illegal Imports from Ceuta

Demand for Armored Vehicles in Africa

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