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Focus should now be on recovery, building resilience for job creation

Summary Covid-19 is daunting, complex, and ubiquitous. It is not just a public health matter; but also affects progress in the fight against poverty in Africa, due to its direct impact on jobs and economic performance. We are living in times of great uncertainty, fuelled by the onset of Covid-19. Despite this, we have maintained our focus on supporting trade and building prosperity, creating jobs, and reducing poverty in eastern Africa. Covid-19 is daunting, complex, and ubiquitous. It is not just a public health matter; but also affects progress in the fight against poverty in Africa, due to its direct impact on jobs and economic performance. It has catalysed rethinking of global supply chains, shaken traditional patterns of partnerships, but also stimulated unanticipated innovation. It has magnified the importance of trade as a driver for development and building resilient economies. It is noteworthy that projected economic growth has more than halved in many countries, particularly in East Africa. TradeMark Africa has responded by creating a Covid-19 mitigation programme that leveraged our 10 years of experience, in addition to accelerate core programming with higher levels of innovation and forged new partnerships to address challenges to eastern Africa’s recovery. In 2019-20, we begun with an overview of the innovative Safe Trade Emergency Facility (Safe Trade) that we developed and rolled out when Covid-19 first hit East Africa. This was rolled out with the support of our development partners in the European Union, Finland, Canada, Denmark, the Netherlands and the United Kingdom. The...

COMESA, Ethiopia sign €5.6m sub-delegation agreement for upgrading border posts

COMESA and Ethiopia have signed a 5.6 million Euro sub-delegation agreement to improve coordinated border management, trade and transport facilitation at the Moyale and Galafi border posts. Moyale and Galafi borders link Ethiopia on one hand to Kenya and Djibouti on the other respectively. The project will assist Ethiopia to upgrade the single window service system, to increase inter- agency connectivity and to improve the connectivity of the two customs systems. The project is funded by the European Union under the COMESA Trade Facilitation Programme. The State Minister of Trade and Industry of Ethiopia, H.E. Ambassador Mesganu Arga, and COMESA Secretary General, Ms. Chileshe Kapwepwe separately signed the sub-delegation agreement. The EU will also finance the construction of the main building of the One Stop Border Post (OSBP) at the Ethiopian Galafi border post. Other components of the project include capacity building, training of the agencies’ staff present at the borders and holding of sensitization workshops. Appreciating the European Union for the support rendered, the State Minister said: “The support is timely as the Ethiopian government desires to build on the current trade facilitation effort that will enhance the efficiency and ultimately reduce the cost of doing business as Ethiopia grapples with the negative effects of the COVID-19 pandemic.” The State Minister also thanked the COMESA Secretary General and her staff for the technical support rendered during the development of Ethiopia’s project. Explaining the modalities of implementation of the sub-delegated activities, the Secretary General said it is envisaged the Ethiopian...

MATHUKI: Regional integration is about people and inclusivity

Peter Mathuki, the chief executive of the East African Business Council, who is the incoming secretary general of the East African Community, spoke with Luke Anami on his early engagement with the EAC and aspirations for the bloc. What are your aspirations as the sixth Secretary General? To follow the spirit of the EAC Treaty that says it is people-centred. Kenyan President Uhuru Kenyatta recently said that we should be aware that regional integration is private sector-led. Therefore, it is important that we involve the private sector and other sectors. The principle is to have inclusivity because integration is about people, all stakeholders. At what stage do you envisage the Customs and CMP should be at in 2021? We must appreciate that partner states are at different levels of economic development. And that there have been challenges to having a fully-fledged Customs Union. One of the challenges is an agreed Common External Tariff, which has been under review for the past four or five years. My target is that we focus on this and conclude it for the purpose of promoting local industries and products. Number two is to ensure that the Common Market is also functioning. We should be having a uniform travel document such as an ID across all countries. But let’s also appreciate that we already have a common passport and a common tourist visa for example. I look forward to even deepening them further so that they are applied in all the partner states. How did...

Ethiopian Airlines at the forefront to distribute #COVID19 vaccines across #Africa

Ethiopian Airlines, the largest and most successful airline in Africa, has announced that it has operated COVID-19 vaccine delivery flights from Mumbai to Addis Ababa and from Beijing to Brazzaville. Ethiopian transported the first batch of Coronavirus vaccines from Mumbai to Addis Ababa on 06th of March 2021. The airline continues to play its prominent role in the vaccine distribution and transported the vaccines from Beijing to Brazzaville via Addis Ababa on 10th of March 2021. Commenting on the operation of the vaccine delivery flights, Mr. Tewolde GebreMariam, CEO of Ethiopian Airlines remarked, “We are glad that we have launched the delivery of our mission-critical service with the distribution of much-anticipated COVID-19 vaccine. We will be repeating the remarkable and globally recognized success in leading the fast delivery of PPE few months ago with similar delivery speed, professional handling and maintaining the cool chain during the global vaccine distribution. We have made enough preparations to transport the vaccines across the world.” Ethiopian Cargo & Logistics Services, the cargo unit of Ethiopian Airlines Group, was instrumental in facilitating the flow of medical supplies including PPE across the globe in support of the fight against the COVID-19 pandemic by deploying its state-of-the-art cargo terminal, which is the largest in Africa with annual capacity of around one million tons and compartmentalized temperature controlled cold storage facilities. Equipped with different climate chambers ranging between -23 C to +25 C covering an area of 54,000m2, dedicated cool dollies, dedicated pharma team, lease/handling of Envirotainer &...

Mombasa Multi-Billion Road Projects Restoring Lost Glory

Over the past couple of years, mega infrastructure developments have been taking shape in Mombasa County geared towards enhancing its image as the gateway to East and Central Africa and as the tourism capital of the region. Prior to the multi-billion road projects, the county which is known as a hub for shipping activities, experienced setbacks in terms of traffic flow of cargo, in and out of the port of Mombasa. The construction of the new roads and upgrading of the existing ones has helped reduce travel time, improve connectivity as well as improve socio-economic activities in the coastal counties of Mombasa, Kwale and Kilifi. New Mombasa Port. FILE Mombasa Southern Bypass - Dongo Kundu (Miritini - Mwache)  The 8.96 km dual carriageway project, was budgeted to cost Ksh25 billion and involved major road works including the construction of an interchange at the Likoni-Lunga Lunga highway. Phase one of the project costing Ksh11 billion was completed and opened at an event that was presided over by President Uhuru Kenyatta in 2018. The project was designed to ease traffic pressure on the Likoni Ferry and decongest Mombasa Island. The Dongo Kundu Bypass in Mombasa TWITTER Phase two of the project involves the erection of two bridges: one at Mwache - spanning 660 metres, and another at Mteza straddling 1,440 metres. The Kenya Ports Authority is also set to establish a Special Economic Zone at Dongo Kundu which will coincide with the construction of phase three Dongo Kundu road expected to be completed by March 2021. A section o phase one of the Dongo-Kundu Bypass FILE...

Analysing long-term socio-economic impacts of COVID-19 across diverse African contexts

The COVID-19 pandemic has claimed over 100,000 African lives and nearly 4 million cases have been recorded so far. Africa’s COVID-19 story is one of nuances. Only 10 countries account for over 80% of all cases, island nations suffer peculiar impacts, rural-urban differentiation is evident, socioeconomic implications reveal gender biases, and trade patterns matter. There is no single Africa COVID-19 story. Addressing COVID-19 in Africa and designing appropriate remedial strategies requires a thorough understanding of Africa’s diverse contexts and an appreciation of the role of regional integration in defining solutions. UNDP Africa’s new report: “Analysing long-term socio-economic impacts of COVID-19 across diverse African contexts” examines the effect COVID-19 will have on macro-economic development in 10 African countries by 2030 and 2050. The study highlights the multifaceted economic and social consequences of the COVID-19 pandemic across Africa, including on human development indicators, economic interdependence, and growth and resilience patterns. Changes in mortality, economic growth and international financial flows in Angola, Cabo Verde, Chad, DRC, Ethiopia, Kenya, Mali, Mauritius, Nigeria and South Africa are analysed in the document. The report also assesses the longer-term impacts on trade, economic growth and health indicators and proposes actionable solutions. Read original article

SEATINI suggests ways of improving Uganda-Kenya trade relations

As players in maize trading between Uganda and Kenya workout modalities for improving trade relations, questions remain on whether authorities can walk-the-talk. On March 11, Kenya announced the lifting of a ban on imports of maize grain from Uganda and Tanzania with strict adherence to standards. Earlier, when East Africa’s largest economy announced the ban, it cited high levels of mycotoxins, poisonous germs, in the maize imported from the two countries. But it emerged later that Ugandan authorities had not been consulted when the decision was being made. Under the new terms, Kenya wants dealers to present the certificate of conformity indicating that the aflatoxin levels comply with the maximum required levels of 10 parts per billion. That Kenyan traders importing maize from Uganda to Kenya would be required to also have a certificate of origin from the counties of produce before they get clearance at the border points. Traders that spoke to The Independent immediately after the ban was lifted, welcomed the move, but asked the two governments to walk the talk. Other players like the Southern and Eastern Africa Trade Information and Negotiations Institute – (SEATINI) are suggesting that going forward, there have to be consultations involving the concerned states and the relevant organs of the East African Community with a view of arriving at an amicable solution in the spirit of regional integration. The negotiations also applies to other drastic actions which have been taken by other partner stats for instance, the Rwanda-Uganda boarder closure. “Partner states...

How logistics startups could make Africa’s largest free trade area work

African logistics startups are positioning themselves to play a key role in the African Continental Free Trade Area (AfCTA), the largest free-trade area in the world by the number of participating countries, which launched on Jan. 1. As businesses that tend to think about being in multiple markets from the onset, startups can help tackle some of the biggest goals of the agreement, such as common payment systems and common user experiences, says Onyekachi Izukanne, co-founder and CEO of TradeDepot, a Lagos-based startup that distributes consumer goods from manufacturers to retailers in three countries. “We are big supporters of this increased access to market that the agreement promotes, even if we recognize that there is still quite a bit of work to be done,” says Izukanne. “I look at the agreement as a promise of integration.” Tech can help tackle some of the biggest issues that have prevented trade from growing in Africa, including cutting down on red tape and easing supply-chain bottlenecks. But startups can’t do it alone. Governments will need to cooperate by creating infrastructure and ensuring that regulations don’t drag things down. Low intra-African trade AfCTA covers a market of 1.2 billion people with a combined GDP of $3 trillion. The agreement underpinning the trade area was signed by 54 out of the 55 African Union countries, with 36 countries ratifying it as at Feb. 5. The main goal of the agreement is to create a single market for goods and services in Africa and deepen the...

Uganda’s Creative Entrepreneurs Get Massive Boost

As the world celebrates the International Year of the Creative Economy, MoTIV Uganda Ltd has launched an asset financing facility for Uganda’s creative industry. The Tools to Create facility targets young women and men in creative enterprises looking to increase their production capacity, launch new product lines, invest in new technology and expand their distribution networks across the country. While speaking at the launch of the facility, the Team Lead at MoTIV Japheth Kawanguzi noted that the facility is designed to provide financing for businesses in the creative industry to be able to restructure interrupted supply chains, increase production capacity, diversify offerings and increase market share. “Uganda’s labour force is largely under the age of 30 accounting for almost 70% of Uganda’s population which in turn has led to a strain in job opportunities for the youth. In the midst of all this, the young generation brews with creativity which has inspired an investment in the acquisition of different skills that require tools to actually get work done. The ‘Tools to Create’ facility is meant to support young people to affordably improve their skills, plan and transition the acquired skills to tangible work which enables earning a living,” said Kawanguzi. In 2019 at the 74th session of the UN General Assembly, 2021 was declared the International Year of Creative Economy for sustainable development to promote sustained and inclusive economic growth, foster innovation and provide opportunities, benefits and empowerment for all. “Uganda has great potential in the creative industry and can...

Finland government, TMA ink €10.5 million deal to support regional trade

A financial agreement worth €10.5 million between the Government of Finland and TradeMark Africa (TMA) has been signed. The Government of Finland, represented by its Ambassador to Kenya H.E. Erik Lundberg, reiterated its commitment to supporting regional trade and the fight against COVID-19 pandemic in the East African region. The event was officiated by Kenya’s Ministry of East Africa and Regional Development Principal Secretary Dr. Kevit Desai and witnessed by TMA Board Chair Amb. Erastus Mwencha, TMA CEO Mr. Frank Matsaert and TMA Country Director Mr. Ahmed Farah. Through this new Finnish funding, TMA will scale up support to governments to adopt ICT for Trade systems in key trade agencies that contribute to the successful implementation of National Single Windows. TMA has laid frameworks and forged partnerships to support multimodal transport corridors which not only reduce costs associated with trade, but also reduce the carbon footprint of transport. Lake and rail transport produce much less emission per tonne of cargo moved as compared to road transport. Efforts will go towards supporting digital trade corridors, safe sanitary and phytosanitary trade corridors, bolster trade remedies structures at national, regional and continental levels, investments in standards quality infrastructure centres of excellence, scale up of regional authorised economic operator schemes and authorised supply chains frameworks. This infrastructure will be critical in reducing barriers to trade and supporting smooth implementation of the African Continental Free Trade Area (AfCFTA). The new funding will build up on results that have been achieved in previous programmes funded by...