It is the dream of many business people to take their business across the border, and thanks to the East African Community (EAC), a regional economic community consisting of five countries, movement of people and capital is not restricted. The countries include Kenya, Uganda, Tanzania, Rwanda and Burundi. Ideally, you should be able to work or do business in any of these countries. But which is the most lucrative hunting ground for a new business? There are no straightforward answers to this question. Starting a successful business depends on a myriad of factors. However, the World Bank’s Ease of Doing Business Index together with other reports has tried to make it easier for you to make this decision. The easiest… Probably, you already know the answer. Rwanda is the easiest place to start a business in the region, ranking at position 35 in the World Bank’s Ease of Doing Business. It takes less than a day to obtain an electronic signature from the Rwanda Development Board. The e-signature contains the user name and password which are used to log into the system for the registration process. Once the account is set up, a registration number is generated to enable users to proceed to online registration. This registration number is also the tax identification number (TIN) and VAT number of the company. Online registration which is free takes a day. The documents needed for submission are duly completed online application; proof of identity for each signatory of the memorandum of association form; and the...

Dr. Lawrence Haddad, Executive Director, Global Alliance for Improved Nutrition has said that the African Continental Free Trade agreement which came into place on 1st January 2021 is a great opportunity for African SMEs especially those supplying nutritious foods because it offers a platform for them to grow and shape their food system in a way that is more equitable, sustainable and nutritious Dr. Haddad made the remarks at the launch of Nutrition Conversations Africa recently. This is a platform that will enable exchange of ideas on best practices for nutrition in Africa. The initial webinar under this platform addressed ways in which nutritious food SMEs can take advantage of the African Continental Free Trade Area. Many SMEs in Africa fail to launch off efficiently or totally fail to launch fully due to challenges arising from financing. The African Development Bank (AfDB) through the Directory of Agriculture and Agro-Industry has made it possible for African SMEs in the food and nutrition sector to access finances that will enable them to scale up their businesses and offer more efficient services to the consumers. “We have three programmes that have come into effect as a result of the African Continental Free Trade agreement; One is the wholesale credit guarantee schemes which will see the AfDB guarantee up to 80 per cent pay back on financing for banks supporting SMEs in nutrition. Read original article

The African Free Trade Agreement (AfCFTA) has, in recent years, been a standing item at the Annual Conference of the Trade Law Centre (Tralac) based in South Africa. This year, it is again the case as the annual conference is, for the second year, a virtual event due to the global pandemic. In a statement, Tralac, a public benefit organisation established in 2002 to develop technical expertise and capacity in trade governance across Africa, notes that for trade in goods to take place under this free trade area, negotiated tariff concessions and preferential rules of origin are required. “While notable progress has been made in the rules of origin negotiations, we are not there yet. But, once all offers of tariff concessions, that meet the agreed modalities, have been made, the negotiations process will start in earnest. An ‘interim arrangement’ to permit trade under the schedules of tariff offers, made by end of June 2021, may be agreed, but negotiated outcomes are essential for the AfCFTA,” reads the statement. Tralac, which was set up with the financial support of the Swiss State Secretariat for Economic Affairs (SECO), further notes that trade in services negotiations are also still underway, with a focus on commitments in the priority services sectors (financial, transport, communication, tourism and business services). “Healthcare services will be included along with other services later. Work on frameworks for regulatory cooperation is also progressing. Negotiations on investment and intellectual property rights have begun. Competition policy (also on the Phase 2...

Despite agriculture being the backbone of the economy in COMESA, it accounts for only 32 per cent of the region’s GDP. Sandra Uwera, Chief Executive Officer of the COMESA Business Council, says the sector provides a pivotal role as a driver of economic growth in the region. She further highlighted the role of women as a vital link within the chain of agriculture, industry, and trade, noting that three-quarters of the employed women in COMESA work within the sector. They also dominate sub-sectors such as flowers, fresh fruits, and vegetables. Data by the bloc reveals that the sector provides livelihoods for about 80 per cent of the region’s workers, and accounts for about 65 per cent of foreign exchange earnings. The continent, which COMESA Secretary General Chileshe Kapwepwe said last month has the potential to feed its self and export to the rest of the world, has remained a net food importer for the last 15 years. Uwera spoke during the institution’s Agro-industry work group meeting that brought together stakeholders to discuss the progress made on recommendations the group put forward in 2020 and to develop a road map for the activities of 2021. The meeting was attended by various players in the agriculture sector, including dairy farmers, commercial grain farmers, tobacco leaf growers, and manufacturers, from across the region. CBC convened the meeting of the institution’s Agroindustry stakeholders to discuss the progress made on recommendations put forward by the workgroup in 2020, and to develop a road map for...

PAYMENT technologies are increasingly becoming an important means for Zambian businesses to accept transactions from its consumers through digital platforms amidst the on-going spread of COVID-19 pandemic. This is transforming how retailers operate as they are able to transact with customers seamlessly. Available digital payment platforms include; mobile money, Point of Sale (PoS) terminals, and direct bank transfers such as e-wallet, among others. Industry experts have been noting that, 30 years ago, most retailers across Africa did not accept credit cards and mobile money payments which they said were still an idea. However, over the past decade and a half, mobile money has transformed how African consumers access and use their money to pay for goods and services. The most significant shift in the use of digital payments happened in the last one year, where the Coronavirus disease accelerated digitalisation for retailers. Liquid Intelligent Technologies Zambia chief executive officer, Mark Townsend shared the same sentiments, stating that COVID-19 pandemic has had a massive impact on internet adoption, the economy and how businesses operate in the country. Mr Townsend pointed out that the businesses that adapt to using digital platforms will survive and thrive. “It is no longer about copping short-term, it’s about applying technology to create seamless collaboration, improve data security and stimulate future growth with emerging tech such as artificial intelligence. Remote and hybrid work is the future, and the right digital strategy is key to success,” he says. In his write up on enabling businesses to overcome challenges...

SUMMARY KenTrade runs the online cargo clearing system which provides information to all the players on the real-time location of their cargo while on transit. The agency is now introducing more online platforms to reduce paperwork, including online trade logistics directory. KenTrade chief executive Amos Wangora says gaps exist in the import, export and transit processes beyond the compliance requirements automated through the TradeNet environment. A trade and cross-border facilitation agency, The Kenya Trade Network Agency (KenTrade) is seeking support from the government and industry stakeholders in implementation of a logistics coordination platform which bring together importers and exporters. KenTrade runs the online cargo clearing system which provides information to all the players on the real-time location of their cargo while on transit. The agency is now introducing more online platforms to reduce paperwork, including online trade logistics directory. KenTrade chief executive Amos Wangora said the directory will list all players in the logistics sector, detailing products and services, as well as prices where applicable and their contacts. Mr Wangora said gaps exist in the import, export and transit processes beyond the compliance requirements automated through the TradeNet environment. “Traders are often left on their own to find other necessary services after fulfilling government processes and there is a need for an e-commerce platform to address these gaps through a market linkage service platform,” said Mr Wangora in a recent speech during the launch of Single Maritime Window System “This platform once implemented will also help accumulate big data for...

Malawi needs a vibrant private sector to help create jobs and recover from the Covid-19 pandemic by reforming and attracting investment in key sectors, the World Bank and the International Finance Corporation (IFC) have said. In its Country Private Sector Diagnostic (CPSD), bank notes that the energy, the digital infrastructure and services, transport and logistics, and agribusiness sectors present opportunity for growth. Said World Bank country manager Hugh Riddell in a statement accompanying the report: “We see significant private investment potential in Malawi to boost economic growth and are ready to work with our partners to seize these opportunities and create new markets.” On her part, IFC country manager Amena Arif also noted that Malawi is on a growth trajectory and investment in the four key sectors outlined in the CPSD will empower women and young people who are entrepreneurs. She said: “Supporting these entrepreneurs, by expanding digital connectivity and increasing digital literacy, could positively impact the economy.” In terms of energy, the report notes that the sector is one of the most important areas where reforms of State-owned enterprises could create more viable opportunities for private sector participation. The bank said while higher tariffs will increase costs for the private sector in the near-term, the increases are necessary to allow for cost recovery and create commercially viable investment opportunities that will expand access to electricity. On transport and logistics, the bank notes that investment in the sector will be essential to reduce the cost of trade and boost the...

13 July 2021, JUBA—National consultations and an online survey have been launched by stakeholders in South Sudan to provide a platform for women in trade and business to voice their needs and interests with regards to participation in regional and continental trade, to inform the proposed Protocol on Women in Trade of the African Continental Free Trade Area (AfCFTA). The online survey was launched by the UN Women Regional Offices of West and Central Africa, East and Southern Africa and the Arab States, in partnership with UNDP and the AfCFTA Secretariat. “South Sudanese women entrepreneurs face similar challenges to women in other locations, and our goal is to fully integrate the Women in Trade Protocol into the AfCFTA agreement. Consultations are an important element in making the development of the Women in Trade Protocol participatory, inclusive, and responsive to the needs and priorities of the women of South Sudan,” said Minister of Gender, Child and Social Welfare Hon. Ayaa Benjamin Warille, during opening remarks at the launch of the national consultations at Dembesh Hotel in Juba on Tuesday. “We know that if a woman is doing business, she will be doing it for the benefit of her family, the benefit of her community and the benefit of society,” said Hon. Agak Achuil Lual, Undersecretary of Trade for the Ministry of Trade and Industry, adding encouragement: “Although there will be challenges and people may discourage you, work with your sisters and colleagues in the 10 states, and share your ideas [on...

THE National Bureau of Statistics (NBS) is currently preparing the Harmonised Consumer Price Index (CPI) for the East African Community (EAC) and Southern African Development Community (SADC), which will determine a list of the final costs paid by consumers for items in a basket of common goods within the region. According to NBS Acting Director of Population, Census and Social Statistics, Ruth Minja, the harmonised CPI will be prepared according to terms and conditions of EAC as six countries across the region flex their muscles to seal the deal for the EAC Monetary Union protocol. “In preparing the Harmonised Index of Consumer Prices there are regulations guiding all the EAC countries on how to calculate prices of common goods, so that they remain constant from one period to another,’’ she said. Ms Minja said that Tanzania was equally doing the same in the SADC bloc, being one the member countries within the region as well. She insisted that the harmonised index for consumer prices within EAC and SADC countries is expected to be a composite measure of inflation in the regions. According to Ms Minja, since every member state has its development strategic plan based on a particular period, the CPI takes in consumer price inflation data from each member nation and weights them accordingly into an index The CPI index relies on a basket of consumer goods from both rural and urban regions of each nation. As all member states eye for the Monetary Union, the Index of Consumer...

Summary The EastAfrican has learnt that the creation of a monetary union is facing challenges. The Protocol for the establishment of the East African Monetary Union (EAMU) was signed by the heads of state in Kampala. The EAC is way behind in setting up relevant institutions to support a single currency, the most important being the East African Monetary Institute. The East African Community Council of ministers is set to meet before the end of this year to review the roadmap towards the implementation of a single currency regime after agreeing that the initial 2024 deadline was not attainable after all. The delay in implementation is set to subject regional traders and travellers to prolonged exposure to costly currency conversion transactions and exchange rate risks, which are adversely impacting the volume of intra-regional trade. EAC Secretariat Secretary General Peter Mathuki told The EastAfrican consultations on the revised timelines with the partner states are on-going with the final proposal expected to be tabled before the Council of Ministers within the next six months. “Consultations with the partner states on the revised roadmap are ongoing in which we shall form a proposal to present before the sectoral council of ministers to approve or confirm the roadmap before the end of this year,” said Dr Mathuki. The EastAfrican has learnt that the creation of a monetary union — the third pillar of regional integration after the Customs Union and the Common market — is facing challenges. This is largely due to the inability...