There are 42 currencies in Africa which makes it difficult to easily transact between countries due to conversion needs which create a lot of inconveniences. This challenge may however be a thing of the past if plans to have a uniform payment and settlement platform sail through under the African Continental Free Trade Area (AfCFTA). The secretariat has announced seeking ways to ease the burden of doing business using 42 currencies on the continent which is a major boost to trade under the trade agreement. The AfCFTA secretariat is working with the African Export-Import Bank (Afreximbank) to develop a pan-African payment and settlement platform which will help overcome the challenge posed by the multiplicity of currencies on the continent. AfCFTA Secretary-General Wamkele Mene notes that a uniform payments platform will eliminate the costly process of converting currencies which contributes to the inefficient trade patterns on the continent. In addition to this good news, the Covid-19 pandemic was a silver lining for Africa’s integration since the continent has to create its own solutions to its problems. As such, Africa needs not only to harmonise its financial systems but also step up productive and infrastructural integration. The African Regional Integration Index (ARII) which provides up-to-date data on the status of regional integration in Africa and assesses the level of integration for every regional economic community and its member countries shows that Africa needs to do more to integrate its systems into the different sectors of the economy. ARII is a joint publication...

Trade has a critical role to play in rebuilding developing and least developed countries’ economies, alleviating rising poverty and creating a greener, more inclusive future for all. This was a unifying theme that ran through three days of panels discussions and debates at the Aid-for-Trade Stocktaking event the World Trade Organization (WTO) hosted online from March 23 to 25. Covid-19 has reversed 30 years of development gains, deepening inequalities from the household to country level and threatening to push 150 million into extreme poverty, WTO Director-General Ngozi Okonjo-Iweala noted in an opening plenary session that also brought together leaders from the International Monetary Fund (IMF), Organization of Economic Cooperation and Development (OECD), UNCTAD, World Bank and World Health Organization (WHO). The opportunity to take stock of Aid for Trade’s progress so far and steer its future direction comes at a critical juncture, especially for those least developed countries (LDCs) that were hit hardest by the steepest fall in global trade on record and have benefited least from its rebound. “The post-Covid recovery must not leave anyone or any country behind,” she stressed. Here are 6 takeaways from the event: Invest in pharmaceutical supply chains and ensure equitable access to vaccines With just 10 countries receiving 76% of the Covid-19 vaccines administered globally by the time of the event, ensuring more equitable access is critical. Ramping up vaccine production by investing more in LDCs’ and developing countries’ manufacturing capacity would help, as would boosting trade cooperation to address supply bottlenecks and...

The African Union unveiled the Animal Health Strategy for Africa (AHSA) 2018-2035 to strengthen animal health, animal production, productivity, animal safety, public health and a continent for a healthy environment. AHSA 2018-2035 is “a continental framework for delivering a sustainable animal health system that meets global standards. Healthy animals for more livelihood, a safe trading community and environmental health ”. The strategy, validated in Kigali, Rwanda, in November 201 8, was endorsed by the African Union Technical Committee, which included ministers responsible for animal resources, water, agriculture and the environment. The strategy was endorsed at the Summit of Heads of State and Government in Addis Ababa, Ethiopia, in February 2020. The Animal Health Strategy for Africa (AHSA) 2018-2035 is “a continental framework for delivering a sustainable animal health system that meets global standards. Healthy animals for more livelihood, safe public and environmental health ”. The aim is to address the challenges faced in the provision of animal health services on the African continent. It is aligned with the Animal Development Strategy for Africa (LiDeSA). In addition, it offers more targeted strategic interventions and approaches to holistically address the health of bees and water bodies as part of the One Health (OH) approach. The aim is also to align animal health services on the continent with the relevant global, continental and regional strategies and frameworks. Therefore, it serves as an overarching strategy to improve the efficiency and effectiveness of animal health measures on the continent. “The strategy builds on the achievements...

In summary Though various legal interventions has resulted in substantial gains in the development of co-operative leadership and governance, incidences of poor governance are still experienced in some co-operative institutions. The sector is also dotted with incidences of ineffective leadership, micro-management of the societies by the boards, unethical business practices, and inadequate application of good financial management and lack of effective member participation. Experts say co-operatives as private enterprises offering public good require mechanisms that promote good governance for transparency and accountability to secure public confidence in their operations. As part of the reforms, according to Cooperative Alliance of Kenya CEO Daniel Marube, there is also need to put in place strong systems for credit appraisals factoring in risk management. Managements need to be keen when appraising members for loans so that they do not burden guarantors even as there are plans to introduce an insurance scheme to help in easing the burden on guarantors. Bogged down by poor governance and old laws, the multi-billion shilling Co-operatives sector is racing against time to turn around its performance. For over 10 years, the sector has found itself in a situation where it cannot continue using the old laws because they are not in tandem with the Constitution, while at the same time they do not have their own laws to guide the sector. The government is yet to operationalise the National Co-operative Policy, Non-Deposit Taking Business Regulations 2020 and deepen the prudential and market conduct measures for Back Office Services Activity...

In Summary The Kenyan has taken over from Burundian Liberat Mfumukeko who handed over the instruments of office on Friday, in Arusha, Tanzania. Among his top agenda is the finalization of the comprehensive review of the EAC Common External Tariff (CET) and its uniform application in the bloc. Outgoing Secretary General Liberat Mfumukeko (L) hands over the mandate to the incoming Peter Mathuki at an event in Arusha, on April 23. Looking on is Kenya's East Africa Community (EAC) Affairs and Regional Development CS Adan Mohamed, who is also the Chairperson of the EAC Council of Ministers/HANDOUT Incoming East African Community(EAC) Secretary General Peter Mathuki has outlined priority areas he will focus on, with an achievement target of as early as end of this year. The Kenyan has taken over from Burundian Liberat Mfumukeko who handed over the instruments of office on Friday, in Arusha, Tanzania. Among his top agenda is the finalization of the comprehensive review of the EAC Common External Tariff (CET) and its uniform application in the bloc, Mathuki pledged as his five-year tenure starts tomorrow, noting that the initiative is “ long overdue.” “I will be keen to fast-track the process by end of this year,” Mathuki said in his speech during the handover ceremony. The EAC-CET comprises a triple band structure for raw materials and capital goods (0 per cent), intermediate goods (10 per cent) and final goods (25 per cent), as well as a Sensitive Items list with exceptions to the three-band rule for...

A decent job is an essential marker of a young person’s success. It provides financial security for his or her future family and contributes to the economic growth of their country. With more than half of Africa’s population under the age of 25, the need for decent jobs is enormous. “In Africa, youth make up 37% of the working-age population, but 60% of that number is unemployed. The youth demographic is very large compared to the available opportunities in the market,” writes Obiageli Ezekwesili, former World Bank Vice President of the Africa division, in her article Youth unemployment: Challenges & Opportunities in Economic Development. In Kenya for example, a recent study by the UN Development Programme put the country’s unemployment rate at a staggering 39%, the highest in the region, compared to 24% in Tanzania and 18% in Uganda. The demand for decent jobs is only expected to grow as the Africa Institute for Development Policy estimates that the continent will account for 29% of all people aged 15 to 24 by 2050. Some organizations have taken on the youth employment challenge through innovative and broad-based public, private and civil society partnerships that have the potential to be more impactful than they could have aspired to working alone. One example is the Young African Leaders Initiative (YALI), a partnership between the U.S. Agency for International Development (USAID) and private sector representatives. Together they create opportunities for African youth by enhancing leadership skills, bolstering entrepreneurship, and connecting young African leaders with one...

One of the key strategies to revamp Zimbabwe’s economy is to ensure adequate value-added export earnings so as to boost foreign currency generation and retain high-value jobs. The weakening of domestic production in the past years and subsequent drop in exports have undoubtedly affected other sectors of the economy in general, along with the unavailability of locally-produced essential commodities and services, which have stoked persistent trade deficits. There is a need to urgently synergise public and private sector efforts in coming up with appropriate steps towards improving the country’s exports as a sustainable path to attaining real economic stability and growing the economy towards the envisaged upper middle-income status by 2030. While the National Development Strategy (NDS1:2021-2025) sets the tone for jump-starting productive capacity in key sectors such as agriculture, mining and manufacturing, economic experts have called for speedy diversification to the exportation of value-added goods and services as opposed to reliance on exportation of primary commodities. Higher value addition and import substitution are at the heart of the NDS1 re-industrialisation focus. However, in a world that is undergoing a shift from typical industrial to information-based economies, developing robust export market intelligence has become a game changer. Big corporates and governments invest more in this thrust so as to attain reliable export data, which forms the bedrock of business management decisions. Competition in the export market is ruthless and Zimbabwe has to be aggressive in order to make it. Local producers, thus, need to be assisted to build adequate export...

MAJOR upgrades in ports in Tanzania are nearing completion to boost the country's prospects of becoming a major regional transport and trading hub. The Prime Minister said in Parliament in Dodoma on Tuesday that upgrades for Dar es Salaam, Tanga and Mtwara ports were on final stages of completion as the country is focused to make optimal use of its strategic geographical location to enhance regional trade, stimulate economic growth and development and ease transportation. The premier said upgrading work on berth no 6 and 7 at the Port of Dar es Salaam had reached 90 per cent and 75 per cent respectively and dredging of 1.75 kilometre entrance channel for Tanga port was complete to allow large vessels to anchor at the port. Construction of 300 metres berth at Mtwara port, renovation of the cargo yard and warehouse number three at Mtwara Port were also complete, he said. "These projects will enable the nation to make the most of the geographical opportunities we have as well as stimulate economic growth and facilitate transportation," said the Prime Minister while tabling in the House his office's budget proposals for the 2021/2022 financial year. Dar Port Last month the fifth berth of the Dar es Salaam port was inaugurated to mark another major step for speeding up loading and unloading of cargo at the port which is a gateway for 90 per cent of domestic trade, as well as the access route to six land-linked countries including Malawi, Zambia, Burundi, Rwanda, Uganda...

The Ugandan Government has commended Kenya Ports Authority for the port infrastructural improvements which have contributed to faster handling of cargo. Ambassador Paul Mukumbya, the new Uganda Consul General to Mombasa made the observation during a courtesy call on the KPA Acting Managing Director Rashid Salim. He recollected President Yoweri Museveni’s last visit to Mombasa saying he had spent most of his time at the Port of Mombasa to show the importance of the facility in the bilateral relations of the two countries. Ambassador Mukumbya further thanked the KPA management for the provision of high service standards and for being responsive to issues raised by the Uganda business community. He held fruitful business discussions with the MD on plans towards enhancing efficiency at the Port of Mombasa and the Northern Corridor. The ambassador thanked the Authority for hosting the Uganda Revenue Authority officials at the Port of Mombasa. On his part, Eng. Rashid termed Uganda as a valuable customer saying KPA had opened a liaison office in Kampala, Uganda, for the importers and exporters in that country to be served better. “The port has also extended its services to the Inland Container Depot Naivasha linked by the Standard Gauge Railway line and the Kenya Government donated some land to Uganda as their cargo storage facility to reduce the cost of doing business,” he added. Over the last five years, Ugandan cargo at the Port of Mombasa has registered a compounded average growth of 4.9 per cent from 6.35 million tons...

Summary The decision is sweet news for Ugandan sugar exporters who were previously restricted to an export ceiling of 11,000 metric tonnes per year. The bilateral meeting was held on April 12 at the Ministry of Foreign Affairs in Kampala to discuss and resolve thorny issues impeding bilateral trade relations between the two countries. Kenya and Uganda have reached an agreement to resolve the persistent trade dispute between them following a seven-day visit by officials from Nairobi to Kampala. Led by Cabinet Secretary for Trade and Industry Betty Maina, the Kenyan officials visited Uganda from April 11 to discuss non-tariff barriers (NTBs) affecting trade between the two countries and verify the Ugandan sugar industry to ensure that exports of the product into Kenya are wholly produced in Uganda. Under the new framework of trade co-operation, Kenya will import up to 90,000 metric tonnes of Ugandan sugar per year and, from July 1, when the new financial year begins, abolish a 35 percent excise duty on liquid petroleum gas cylinders manufactured in Uganda. “Kenyan authorities would immediately implement the March 2019 Joint Ministerial Commission Decision that allowed Uganda to export to Kenya, duty free, 90,000 metric tonnes of wholly originating sugar annually,” according to a joint communique issued after the meetings. The decision is sweet news for Ugandan sugar exporters who were previously restricted to an export ceiling of 11,000 metric tonnes per year allocated by the Common Market for Eastern and Southern Africa (Comesa) Council of Ministers. Uganda’s 11 sugar...