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EAC officials deliberate on current status of bloc’s integration

The EAC Secretary General Dr Peter Mathuki together with Deputy Secretaries General, Director General of Customs and Trade, and other Senior Officials of the EAC Secretariat today held a consultative meeting with Rt. Hon. Rebecca Kadaga, Uganda's 1st Deputy Prime Minister and Minister for EAC Affair The consultative meetings between the EAC Secretariat and the partner states ministries responsible for EAC Affairs and Trade are part of the innovative approaches by the EAC Secretariat to brief Partner States on a quarterly basis on the status of integration projects and programmes. In his opening remarks, Dr Mathuki told the minister that the objective of the consultative meeting was to report on the achievements and challenges of activities undertaken in various sectors and share available opportunities as well as come up with strategies to strengthen regional integration. “Hon minister, we at the secretariat thought it is important for partner states to know the status of their directives and implementation of various projects and programmes on a quarterly basis before our normal policy meetings,” said the secretary general. Highlighting some of the achievements during this period of COVID-19, Dr Mathuki told the minister that the secretariat had successfully coordinated regional COVID-19 response through effective partnerships with international and local organisations. "Some of the interventions made by the secretariat include the establishment of the Regional Electronic Cargo and Driver Tracking System (RECDTS), which facilitates free movement of people, goods and services in the region as well as distribution of essential supplies in the region,”...

‘Invest heavily in digital trade infrastructure for AfCFTA’

TO effectively participate in the African Continental Free Trade Area (AfCFTA), the country should invest heavily in digital trade infrastructure, the Southern Africa Cross Border Traders Association (SACBTA) has observed. SACBTA general secretary, Jacob Makambwe, said with the outbreak of COVID-19 pandemic not slowing down, countries would depend on digital platforms to trade. Read original article

Cellulant partners with Link Commerce in a bid to improve cross-border trade in Africa

Cellulant, a Pan-African payments company, has partnered with Link Commerce, a B2B eCommerce platform, to avail relevant digital payment options to consumers in Africa. The partnership aims to make it possible for consumers to purchase goods directly from global retailers online. According to a report by UNCTAD, the number of online shoppers in Africa has surged annually by 18% since 2014. As of 2019, the number of digital buyers in Africa increased to 233 million. The number of e-commerce users in the continent was also projected to grow significantly in the next few years, according to a Statista forecast. In 2021, there might be some 334 million online shoppers in Africa. By 2024, there could be roughly 478 million, about double the number in 2019. The most significant contributor to this surge in e-commerce is the rapid growth in smartphone penetration over the past decade in Africa and the shift in consumer-spend behaviour. The payments infrastructure has also evolved to offer payments solutions that enable more consumers across Africa to participate in online shopping without a bank account. Speaking on the partnership, Link Commerce CEO Chris Folayan stated, “With a global surge in online sales, and travel restrictions, finding the right partner to enable our customer the ability to pay locally and via mobile payment platforms is important to us. We are excited to be partnering with Cellulant as we grow cross-border trade across Africa. Removing payment and delivery barriers by ensuring everyone can pay for and receive products directly...

TradeMark Africa and UK’s Institute of Export ink agreement to boost UK – Kenya Trade

London, 26th July:  TradeMark Africa (TMA), and the Institute of Export and International Trade (IOE&IT) have today at the Kenyan High Commission in London, signed a Memorandum of Understanding, which provides a framework for collaborating to implement a digital trade corridor between the UK and Kenya. The initiative, the ‘UK-Kenya Trade Logistics Information Pipeline’ (TLIP), aims to eliminate paperwork and introduce much better visibility up and down supply chains that flow between Kenya and the UK. It will cut costs for Kenyan firms producing goods like green vegetables and cut flowers for export to the UK, reducing prices for UK consumers, importers and retailers. UK exporter will also be able to benefit from better access to one of Africa’s fastest growing markets. TLIP is the first digital trade corridor to be established between the UK and a developing country since the UK’s exit from the European Union. Indeed, TLIP is strongly aligned with the Economic Partnership Agreement (EPA) signed this year between the UK and Kenya. IOE&IT Director General Marco Forgione said: “We’re proud to be partnering in the TLIP project. We believe it can deliver substantial benefits, not only to traders in the relevant supply chains, but also to the UK in terms securing its position as a global leader in digital trade. Provisions to improve digital delivery are an increasingly important part of trade agreements – and it is initiatives like this that will make them succeed.” CEO of TMA Frank Matsaert said: “TMA is excited to be...

Dar chairs CCTTFA, vows transport costs reduction

TANZANIA has been handed the Central Corridor Transit Transport Facilitation Agency (CCTTFA) chairmanship for one year after Rwanda’s term expired. Member states - Burundi, the Democratic Republic of Congo (DRC), Rwanda and Uganda, unanimously approved Tanzania’s chairmanship. Receiving the mantle,the Minister for Works and Transport, Eng. Leonard Chamuriho Eng Chamuriho said his strategy would focus on looking at all types of transport prioritised in the infrastructures to reduce costs of transporting goods, delay and related logistic challenges traders face in the business. Handing over the chairmanship to Tanzania, Eng Chamuriho, during the 11th session of the Cabinet of Ministers of the Central Corridor held virtually to launch the institution’s five- year strategic plan (2021 - 2025), Rwanda’s Minister of Infrastructure, Ambassadors Claver Gatete said the CCTTFA has once come home in Tanzania, where it’s headquartered is Dar es Salaam. He said the institutional strategic plan for the next five years will be divided into five main sections that cover all modes of transport (water, railways, and roads) as well as the relevant infrastructure. “The first section manages water, rail and road transport infrastructure; the second section will focus on strengthening the transportation sector and increasing commercial competitiveness in the central corridor,” he said. He said the third component is to improve the policy and governance of institutions involved in the transportation sector, while the fourth part is issues of coordination, monitoring and communication within the central corridor institution. Part five is to move the central corridor into a value corridor...

Busia’s Ksh. 53 Million Sade Trade Zone

The National Government in partnership with the County Government of Busia and Trademark East Africa (TMA) is constructing a Sh53 million Safe Trade Zone market at the Soko Posta grounds, Busia Municipality. The project is being constructed on a 1.5 acre piece of land donated by the County Government and will be done in three phases. Phase I and II will cost Sh30.6 million and sh22 million respectively .160 stall will be constructed. The market which will be constructed within a period of four months has various design features that will also cater for the needs of lactating mothers, with over 400 traders set to benefit. The Principal Secretary in the Ministry of East African Dr Kevit Desai said the project once complete will have the ability to increase intratrade which currently stands at 15 per cent within partner states. "The effects of Covid-19 pandemic has prompted the government and other development partners to establish safe trade market with a view of ensuring that we are able to do business under the International protocols of World Health Organization," he said. Speaking during the ground breaking ceremony for the construction of the market, Desai who was accompanied by Busia Deputy Governor Moses Mulomi and the TMA Country Director Ahmed Farah stressed that the market will restore confidence among women to do trade efficiently and productively. Mulomi commended efforts by the National Government and other development partners for their effort towards supporting traders in the County. "Governor Sospeter Ojaamong's administration is committed...

Kenya, South Sudan abolish visa requirement for their nationals

Summary Kenya’s Foreign Affairs Principal Secretary Macharia Kamau said the move was in line with existing integration protocol at the East African Community. Kenya and South Sudan Monday announced an end to visa requirements for their nationals visiting the two countries in the latest move to boost integration. The decision means South Sudanese travelling to Kenya will be entitled to enter for free, as long as they carry a valid passport and meet other health conditions for travellers. In return, Kenyans will no longer need to apply and pay for South Sudanese visas online before travel. Kenya’s Foreign Affairs Principal Secretary Macharia Kamau said the move was in line with existing integration protocol at the East African Community. “This waiver of visa requirement for citizens of the Republic of South Sudan takes effect immediately from the date of this press release,” Kamau said in a statement on Monday. The countries said the move is in line with the treaty establishing the East African Community’s Common Market Protocol, an agreement providing for the free movement of labour and people from the member states. South Sudan joined the EAC in 2016, but had lagged behind in adopting crucial protocols of the Community including the Customs Union and the Common Market Protocol, which allow harmonisation of levies, exemption of certain taxes on produces of the region and visa-less movement in the region. At the last Summit in February, South Sudan was listed as the most indebted country to the EAC for delaying to...

SMEs facing trade facilitation challenges

The United Nations Economic Commission for Africa says small and medium-scale enterprises continue to face trade facilitation challenges despite improvements achieved on the continent. This is according to data for 34 African countries that participated in a recent United Nations (UN) survey. In a statement, David Luke, coordinator of the African Trade Policy Centre (ATPC) of the Economic Commission for Africa (ECA), said trade facilitation is critical for realising the Africa Continental Free Trade Area’s (AfCFTA) objective of increasing intra-African trade flows by lowering bureaucratic delays, inefficiencies at borders and improving administrative efficiency through technology. Luke said: “Cumulative data for 34 African countries show mixed results on trade facilitation implementation across the continent, challenges remain, particularly for SMEs.” According to a survey released last week by the UN regional commissions, countries across the globe are moving towards a seamless and efficient trading environment within and beyond national borders by simplifying and digitalising formalities in international trading. Luke: Trade facilitation is critical Compared to 2019, increases were identified in the 28 countries’ implementation rates of the categories of paperless trade (51 percent from 45 percent), formalities (65 percent from 62 percent), institutional arrangement and cooperation (64 percent from 61 percent), transparency (57 percent from 56 percent), and cross-border paperless trade which remains at 24 percent. Minister of Trade Sosten Gwengwe said the gazetting of the SME order facilitates a conducive business environment for SMEs to enjoy favourable trade facilitation in the country. He said through the one-stop border post projects being...

Harmonisation of Regulatory Framework, Key to African Trade Integration

Experts in regional trade from across Africa and Europe have called for harmonisation of regulatory framework across the 54 African countries that are driving the African Continental Free Trade Area (AFCFTA), in order to have successful trade integration among member state. They advised policy makers to develop clear regulatory policies that resonate with better regulatory framework for AFCFTA. They also called for reduction in customs duties across African countries and increase in the adoption of technology to enable AFCFTA succeed. They were of the view that reduction of Customs duties would increase trade volume among African nations. The experts who spoke at a webinar panel session organised recently by Webb Fontaine, suggested a unified tax regime across AFCFTA member countries and called for the political will of African governments to implement some of the trading instruments that Customs has developed, in order to ensure the success of AFCFTA. Tagged: Technology and Trade in Africa-Challenges and Opportunities, the discussants called on all AFCFTA member countries to consider the implementation of the national single window for trade and investment, and to reduce the number of security personnel at the borders, in order to facilitate faster movements of goods across borders. Analysing the different operating hours at the borders of different African countries, Executive Director, Corporate Services, Malawi Revenue Authority, Agnes Katsonga Phiri, with over 40 years experience in Customs and Excise, said uniformity of the different operating hours, remained key to achieving huge success in regional trade. She advised on the implementation...

EAC urged to implement measures for economic revival

The EAC bloc should urgently work to attract international investors and embark on joint regional investments in the vaccine manufacturing industry for quick economic recovery. This is according to East African Business Council Chairman Nicholas Nesbitt who is calling for a coordinated approach on COVID-19 measures to spur EAC economic recovery and growth. Nesbitt noted that joint EAC investment offers a larger pool of capital resources, expertise and market. At the same time, EAC’s board has directed the EABC Secretariat to champion advocacy on the adoption of open skies and one network area to reduce the cost of doing business in the region. The board said that open skies attract regional tourism and improve consolidation of EAC exports to overseas markets such as horticulture. According to the board, open skies are also critical in supporting the resilience and recovery of tourism, hospitality and transport sectors, which were highly impacted by the pandemic. Official data reveals that EAC Partner States lost an estimate of USD4.2 billion of international tourism receipts in 2020. Additional information also shows that low access to vaccines, slow vaccine roll-out and potentially high cost of vaccinations risk holding back the recovery of EAC economies. According to data by the African Development Bank, the EAC Gross Domestic Product growth is projected at 3.5 percent in 2021 and 4.7 percent in 2022. EABC CEO John Bosco Kalisa said the council has embarked on a regional SMEs platform to champion advocacy on access to markets, finance and roll out business...