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Strong Economic Growth Boosts International Flows—DHL GCI

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By Modupe Gbadeyanka

International flows of trade, capital, information and people all intensified significantly for the first time since 2007; Mauritius is sub-Saharan Africa’s most connected country; Mozambique named as one of the countries where international flows most exceed expectations

DHL released the fifth edition of the DHL Global Connectedness Index (GCI), a detailed analysis of globalization, measured by international flows of trade, capital, information and people. The new GCI report represents the first comprehensive assessment of developments in globalization across 169 countries and territories since the Brexit referendum in the United Kingdom and the 2016 presidential election in the United States. In spite of growing anti-globalization tensions in many countries, connectedness reached an all-time high in 2017, as the flows of trade, capital, information and people across national borders all intensified significantly for the first time since 2007. Strong economic growth boosted international flows while key policy changes such as US tariff increases had not yet been implemented.

The 2018 index measures the current state of globalization, as well as individual rankings for each country, based on the depth (intensity of international flows) and breadth (geographical distribution of flows) of countries’ international connections. The world’s top five most globally connected countries in 2017 were the Netherlands, Singapore, Switzerland, Belgium and the United Arab Emirates. Eight of the top 10 most connected countries are located in Europe, helping make it the world’s most connected region, in particular for trade and people flows. North America, the leader in capital and information flows, ranked second among world regions, followed by the Middle East and North Africa in third place.

In Sub Saharan Africa, the highest ranking country was Mauritius, which featured in 40thposition, while South Africa was named the highest ranking country on the African continent itself, with an overall ranking of 56thplace. 

“As the world continues to globalize, there are still many opportunities for intercontinental & intraregional trade, particularly for emerging economies in Sub Saharan Africa,” says Hennie Heymans, CEO of DHL ExpressSub Saharan Africa. “Globalization is a key driver for growth and fiscal security, which is evident in countries that have embraced it. We are confident about continued further growth in the region with new trade agreements coming into effect, to support regional collaboration.”

“Surprisingly, even after globalization’s recent gains, the world is still less connected than most people think it is,” commented GCI co-author Steven A. Altman, Senior Research Scholar at the NYU Stern School of Business and Executive Director of NYU Stern’s Center for the Globalization of Education and Management. “This is important because, when people overestimate international flows, they tend to worry more about them. The facts in our report can help calm such fears and focus attention on real solutions to societal concerns about globalization.”

At the global level, the GCI shows, for example, that just about 20% of economic output around the world is exported, roughly 7% of phone call minutes (including calls over the internet) are international, and only 3% of people live outside the countries where they were born. The report also debunks the belief that distance is becoming irrelevant. Most countries are much more connected to their neighbours than to distant nations.

Emerging economies remain less connected than advanced economies

The GCI continues to reveal vast differences between levels of globalization in advanced versus emerging economies. Emerging economies trade almost as intensively as advanced economies, but advanced economies are more than three times as deeply integrated into international capital flows, five times for people flows, and almost nine times with respect to information flows.

Additionally, while leaders from large emerging markets have become major supporters of globalization on the world stage, emerging economies’ progress catching up in terms of global connectedness has stalled.

Mozambique beats expectations

Mozambique was named as one of the five countries where international flows exceed expectations the most. This is positive news for the region, because deeper global connectedness can help accelerate countries’ economic growth.

One cause for optimism regarding further growth potential for Sub Saharan Africa, is the signing of the African Continental Free Trade Agreement (AfCFTA), signed by 49 countries in March 2018.

According to a study by the UN Economic Commission for Africa, full implementation of the AfCFTA could double intra-African trade and boost the whole continent’s global connectedness.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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Explainer: Bashkortostan’s Modern Agricultural Technologies and Approaches Useful for Africa

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Ufa-Africa Agricultural Forum Modern Agricultural Technologies

By Kestér Kenn Klomegâh

The importance of introducing new technologies, the need for adopting innovative approaches as key drivers for the development of agriculture, as well as the need to develop an agricultural insurance system, in the context of climate change and global challenges, dominated discussions during the largest agricultural forum held in Ufa, a city in the Republic of Bashkortostan.

The main plenary session under the unique theme: “Agricultural Export: goals, trends and key development guidelines 2030” was opened by its moderator Louis Gouend, an expert of the Russia-Africa Cooperation Council under the State Duma of the Russian Federation and chairman of the commission for work with African diasporas of the Russian-African Club at Moscow State University named after M.V. Lomonosov, as well as president of the African Business Club.

Louis Gouend welcomed the participants and emphasized the importance of the issues discussed for the sustainable growth of the Russian economy. In the context of sanctions and global challenges, such as import substitution, Russia was able to maintain stability and even increase the total volume of exports.

Ilshat Ildusovich Fazrakhmanov, Deputy Prime Minister of the Government of the Republic of Bashkortostan, addressing the forum, expressed warm greetings to participants, and further emphasized the importance of international cooperation in the field of agro-export. Fazrakhmanov introduced Zalina Lerievna Aiba, Deputy Director of the Department of International Cooperation and Development of Agricultural Exports of the Ministry of Agriculture of Russia, for discussion of the federal agency’s strategies.

Zalina Lerievna Aiba singled out export growth as a key driver for the development of Russian agriculture. She noted the importance of Bashkortostan against this background and presented a program for the development of agricultural exports of the Republic of Bashkortostan until 2030, developed jointly with the Federal Center “Agroexport”. The program aims to give a new impetus to the development of the agricultural sector in the region.

Vitaly Yuryevich Nagalin presented promising areas for exporting Bashkortostan products, emphasizing the need for innovative approaches. In response to a question about products with high export potential, he emphasized the unique national products of Bashkiria that could interest the foreign market. Further, during the forum, the importance of introducing new technologies, such as digitalization and precision farming, to increase competitiveness was discussed.

The topic of supporting the agricultural sector was continued by discussing the role of Rosagroleasing. Pavel Nikolaevich Kosov spoke about the importance of material and technical equipment in the context of the Republic’s export potential. He emphasized that Rosagroleasing provides farmers with key tools for modernization, facilitating the renewal of the fleet of machinery and equipment, which is necessary for the effective use of innovations in agriculture.

Korney Datkovich Bizhdov presented a report on the importance of agricultural insurance as a mechanism for financial stability of the agricultural sector. He spoke about the support provided to Bashkortostan farmers last year, when the republic received 145 million rubles in insurance payments due to unfavorable weather conditions. Bizhdov emphasized the need to develop an agricultural insurance system in the context of climate change and global challenges. Promising development areas for the coming years were announced, including programs designed to protect agricultural producers and strengthen the position of the agro-industrial complex in international markets.

In her speech, Darya Vladimirovna Snitko emphasized the main trends in the Russian agro-industrial complex and the foreign economic challenges facing exports. She noted that it is necessary to adapt to rapidly changing global conditions and identified key strategies for strengthening the position of Russian agricultural products in the world market. Snitko also emphasized the importance of technological modernization and the need to invest in innovation to achieve a competitive advantage.

Sergey Vladimirovich Lakhtyukhov discussed the prospects for the export of poultry products, emphasizing the importance of international markets for the domestic sector. He spoke about the significant contribution of Bashkortostan to the production of poultry meat, where the region has increased production volumes by 153% over the past five years. Lakhtyukhov noted efforts in the field of import substitution of breeding material and highlighted areas that contribute to the growth of the export potential of Bashkir poultry farming, such as the production of commercial and breeding eggs.

In his speech, Roman Vyacheslavovich Kostyuk devoted attention to the strategic prospects of animal husbandry with an emphasis on export. He noted the leading positions of Bashkortostan in the production of milk and beef and emphasized that exports create new opportunities for Russian livestock breeders. In addition, Kostyuk focused on the need to increase production volumes, as well as on finding ways to successfully enter international markets, which will increase the income and competitiveness of domestic livestock farming.

At the end of the session, Louis Gouend, the African moderator and expert, invited all participants, entrepreneurs from the regions, to actively participate in the forthcoming Russia-Africa exhibition and forum in October 2025. The event will be held at the Chamber of Commerce of the Russian Federation in Moscow and expected to attract a large number of African entrepreneurs to interact with their Russian colleagues; this event is a unique platform for networking and exchanging experiences between Russian and African entrepreneurs. It is expected that the event will bring together a large number of representatives of business communities from African countries, which will create excellent opportunities for cooperation and the development of new business relations.

By participating in this forum, those present will be able to not only present their projects, but also learn about the latest trends and opportunities that the African market offers. It was strongly recommended that entrepreneurs take an active part in this significant upcoming corporate event.

In the final stage of the plenary session “Agro-Industrial Complex Export: Goals, Trends and Key Development Guidelines 2030” at the Agrocomplex Forum, Louis Gouend assertively noted that the entire discussion was a significant step towards building a sustainable and competitive agricultural export system. The meeting participants emphasized the importance of integrating new technologies and innovations that will help domestic producers take a strong position in the global market.

The future of the agro-industrial complex is mutually beneficial cooperation, sustainable development and confidence in the future, which became the main motive of the meeting. Continuing joint efforts and accumulating experience, were considered as conditions to achieve collective goals and ultimately contribute to global food security and population’s well-being.

The organizers in the Government of the Republic of Bashkortostan sincerely thanked all participants and partners for their active participation and look forward to next meetings to discuss further steps toward the successful development of agricultural exports!

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US Coast Guard Lauds Nigeria’s Port Security Efforts

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By Adedapo Adesanya

The United States Coast Guard has commended Nigeria for considerable progress in implementing the International Ships and Ports Facility Security (ISPS) Code.

The commendation came from Mr Joe Prince Larson of the US Coast Guard who led a team from the International Port Security Programme on a Working Tour of some Terminals and Ports in Nigeria to ascertain the level of implementation of the ISPS Code across Nigerian ports facilities.

The evaluations, which commenced last year as part of a three-year plan, are geared towards providing actionable insights and data-based decisions to lift the Condition of Entry (CoE) placed on vessels departing Nigeria for the US.

According to the Nigerian Maritime Administration and Safety Agency (NIMASA), the team had earlier conducted assessment visits to the Dangote Port and Lekki Free Trade Zones in Lekki, Lagos State, as well as private port facilities operated by Matrix and Julius Berger in Warri, Delta State.

While delivering an interim assessment report to NIMASA Management, Mr Larson noted that Nigeria’s compliance with the ISPS Code ranks amongst the best globally.

He added that his team would report their findings to the leadership of the US Coast Guard accordingly and expressed confidence that NIMASA had the capacity to maintain the high standards attained to date.

“We had the pleasure of visiting Matrix and Julius Berger in Warri, Delta State, before proceeding to the Lekki Deep Seaport and Dangote Port in Lagos, with the overall assessment being very positive.

“We noted that there is a clear and deep understanding on the implementation of the ISPS Code in Nigeria with the level of compliance observed to be at par with some of the best maritime nations globally. We would report our findings back to US Coast Guard headquarters accordingly.”

On his part, the Director General of NIMASA, Mr Dayo Mobereola, reaffirmed the agency’s commitment to maintaining the improved compliance standards at Nigeria’s ports.

He highlighted the positive impact of these efforts on the country’s international reputation, adding that the agency would continue to support efforts under the Minister of Marine and Blue Economy, Mr Adegboyega Oyetola, to improve standards in the Nigerian maritime industry.

According to him, “I must express my happiness at the positive feedback we have received from the USCG delegation as it serves as reward for the Federal Government’s commitment to the develop of the sector, and the work of the Agency, under the supervision of the Federal Ministry of Marine and Blue Economy, to ensure international standards are adhered to in the area of port security.”

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Somalia Joins Afreximbank as 53rd African Member

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Afreximbank

By Adedapo Adesanya

Somalia has formally joined the African Export-Import Bank (Afreximbank), becoming the 53rd African member state of the African multilateral financial institution.

Somalia has been shaped by decades of conflict, political instability, and lack of central governance, which has strongly weakened its economic strength.

Its Afreximbank membership is touted to place the country on a path of sustainable economic transformation, upgrading of the country’s trade and industrial infrastructure, and most importantly joins the rest of the continent in the push towards continental integration and self-reliance through the African Continental Free Trade Area (AfCFTA).

In the instrument of accession signed by Mr Hirsi Jama Gani, State Minister, Office of the Prime Minister, Somalia notified Afreximbank that Somalia “accepts, and hereby accedes, to the Agreement for the Establishment of the Bank” and pledged to undertake all necessary steps to expedite ratification of the Agreement.

“On behalf of the Government of Somalia and its people, I sincerely thank Afreximbank for its efforts that led our country to become a member state of the Bank. This milestone agreement signals our commitment to becoming a key player in regional and continental development, especially through trade, under the framework of the African Continental Free Trade Area (AfCFTA). This partnership is significant to Somalia’s ongoing reconstruction and economic diversification efforts, opening doors for financial and technical support.”

“We urge Afreximbank to accelerate the implementation of its programs and initiatives in Somalia, aligning them with Somalia’s National Development Plan and helping it meet its ambitious development goals. This is a critical step in realising the full potential of our country and for Somalia to regain its position as a strategic trade hub within East Africa,” Mr Ganni added.

On his part, Mr Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, emphasised the mutual benefits to both parties.

“This is a significant milestone as it widens the opportunity for the Somali public and private sectors to access financing and other related interventions that addresses their real needs. By joining the Bank, Somalia embarks on a new journey of pursuing its developmental aspirations on its own terms, backed by unwavering support from Afreximbank, a bank with proven track record of supporting its Participating States in good and bad times.

“Today, we begin a collective journey to enable the Somali economy to realise the maximum value from its natural resources while hastening its integration into the African Continental Free Trade Area.”

On his part, the Governor of the Central Bank of Somalia, Mr Abdirahman Abdullahi said Afreximbank’s visit to Mogadishu was timely as it came just after Somalia joined the East African Community regional trade bloc in 2024, and successfully completed the Highly Indebted Poor Countries (HIPC) debt relief process.

“The Somali people are renowned for their trade and entrepreneurial spirit, and I urge the business community in Somalia to fully leverage the opportunities offered by Afreximbank under its financing programs, to expand their reach, drive sustainable growth, and contribute to a more connected and competitive economy,” he said.

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