Sub-Saharan Africa will see moderate but positive growth of 2.7% this year, a welcome rebound from the region’s first recession of 25 years in 2020 when the region shrank by an estimated -3.7%. But 2021 is probably going to be just as tough for African economies as it was in 2020. Last year, there was a 6.1% decline in per capita income in the region, the “deepest contraction on record,” says the World Bank in its latest global outlook. There’ll be a further 0.2% decline this year. Like many observers, the bank is worried that despite the commendable early efforts of African governments to lock down their economies from Covid-19 the pandemic has not really let off. Several countries are going through a second wave that is more severe than the first. These persistent outbreaks and the uncertainty they create will inhibit economic growth and ultimately set living standards back by a decade, says the bank, reiterating its early pandemic warnings. One of the many reasons, African economies have struggled has been the unprecedented capital outflows needed to help manage their economic lockdowns even as foreign direct investment all but disappeared. In 2020, FDI to Africa collapsed by 30%-40% and remittances fell by 9% leaving little room to maneuver for African finance ministers. This is likely why despite ongoing concerns about mounting debt levels, government debt in the region jumped another 8 percentage points to around 70% of GDP, says the IMF. The fear now is that rising interest payment...

Africa50, in partnership with US based Foreign Policy magazine, has launched an exciting new podcast series called Africa Forward. Africa Forward tells the largely untold story of how infrastructure is transforming the lives of people in Africa. The four-part series, which begun on Tuesday 26 January 2021, brings major African infrastructure projects to life. It highlights the Benban Solar Park in Egypt, a solar park so massive that it can be seen from outer space and showcases how cross-border projects such as the Senegambia Bridge can support the implementation of the African Continental Free Trade Area (AfCFTA), which was officially launched on 1 January 2021. The series also shares inspiring stories on the way Africans are leveraging ICT infrastructure and technology to shape the future, such as 21-year-old Betelhem Dessie in Ethiopia, who taught herself to code at nine, and has now trained more than 20,000 African youth to code. The program features visionary leaders, entrepreneurs, CEOs and heads of institutions, who will share their views and insights on the continent’s challenges and investment opportunities, and above all, on the way forward. A trailer for the show, which is hosted by journalist Carol Pineau and former CNN anchor and correspondent Isha Sesay, can be found here, on Apple Podcasts, Spotify, and other podcast platforms, as well as the Foreign Policy Playlist’s website: https://foreignpolicy.com/podcasts/africa-forward/ The first episode, focusing on trade and transport infrastructure is now available and a new episode will be released every week until 16 February 2021. The other three episodes will be broadcast as...

Sixty years since most African States attained independence, the Covid-19 pandemic has shone a fresh spotlight on the folly of the haphazard colonial boundaries. Long traffic jams at border posts across the continent, especially at the beginning of the pandemic, were the poster child of the non-tariff barriers that continue to hamper trade in Africa. These boundaries are the primary reason for the high cost of doing business in Africa and are the cause of low intra-African trade, investment, economic integration, and poverty. Covid-19 has also introduced a new economic paradigm, with digital technology taking the lead to ease the safe flow of goods across borders. If the pandemic persists late into 2021, some of the new digital technologies introduced to facilitate safe cross-border movement could become permanent fixtures across the continent and indeed other parts of the world. The concept of intra-African trade dates before the 15th century. Despite war and competitiveness among African empires, they traded among themselves, sometimes travelling long distances to do so. The Songhai Empire practically controlled the trans-Saharan trade whereby an array of goods and services including gold, slaves, ivory, silk, horses, and sugar were exchanged. As is the case today, trade was a mutual exchange of goods and services and it had two dimensions to it; commercial and societal. With increased trading activities came a well-developed system of trading. The barter trade system was eventually replaced by currencies such as coins used in northern Africa, brass rods used by the Tiv of Nigeria,...

NIMULE: TradeMark Africa and the Government of South Sudan have today launched a capacity building program that will benefit 2,000 women entrepreneurs and informal women cross border traders. The launch event was held in Nimule boarder town and had representation from senior officials from both the Ministry of Trade& Industry, TradeMark Africa, Sudan Women Entrepreneurs Association (SWEA) and Chamber of Women Entrepreneurs (COWE) The Women in Trade Programme is a 9-month programme and is funded by Global Affairs Canada through regional trade agency TradeMark Africa. The programme will train women across the borders of Nimule, Kaya and Nadapal and will focus on improving the trading environment for women in trade as well as build business capacity of women traders, SMEs and Cooperatives. Through the Programme, TradeMark Africa seeks to increase incomes and improve livelihoods for women traders and women-owned enterprises through capacity building, addressing trade barriers and advocacy for policies that will create an enabling environment for women traders and women-led SMEs. This is part of a larger initiative by TMA to tackle poverty and reduce inequality through increased trade and competitiveness. The expected end of programme outcome is “Increased Social and Economic Empowerment of Women Traders in Eastern Africa. Speaking during the launch, Undersecretary for EAC Affairs Hon. Mou Mou Athian lauded the program as one anticipated to give a major boost to women traders, women entrepreneurs, and co-operative societies in the country. “Women traders and entrepreneurs have been raring to reach regional markets but most don’t have the...

Leading Regional Trade Agency TradeMark Africa has this morning handed over Personal Protective Equipment (PPE) worth US$ 110,000 to the Government of the Republic of South Sudan to boost war against Covid19. The equipment provided includes hand sanitizers, hand washing stations, liquid hand washing soap, infrared thermometers, re-usable safety boots, full protective PPE, filtering full face respirators, reusable masks, plastic face shields, disposable gloves, hand sanitiser dispensers and disinfectant spray bottles. The equipment is expected to slow down infections and protect the lives of public officials, traders and citizens of South Sudan and was received on behalf of the government by Under Secretary for EAC Affairs, Mou Mou Athian. Other leaders at the event included Commissioner General of South Sudan National Revenue Authority Dr. Patrick Mugoya, Director General for Customs Gen Ayii Akol and EAC Youth and Women Ambassador for South Sudan. Speaking at the event, EAC Under Secretary noted that it is critical for South Sudan to continue having strong vigilance and protection against the virus, owing to its huge social economic disruption trends world over. “The PPE we have received from TradeMark Africa could not have come at a more opportune time. Whereas as a government we have made concerted efforts to minimize infections across the country, the re-emergence of the disease in parts of the continent as well as new strains of the virus continue to pose a big threat to the health of our populations. We must double efforts in order to protect the health and...

The East African Community (EAC) economy will rebound in this year if EAC Partner States governments strengthen macro-economic policy coordination and adopt a regional coordinated approach in handling the COVID-19 pandemic. COVID-19 disruptions in 2020 provided a learning curve, on the need to have sustainable EAC regional value chains integration for the development of finished products with a view of reducing industrial and trade risks arising out of external shocks. EABC Chairman Mr. Nick Nesbitt noted that the region is projected to recover steadily but it was dependent on how the pandemic is handled. According to the AfDB East Africa Economic Outlook 2020, the East Africa region is projected to recover to 3.7 percent in the baseline scenario and 2.8 percent in the worst-case scenario under the assumption that COVID-19 would be contained in the short-to-medium term. Speaking during a media engagement on the State of EAC Economies amid the pandemic in Nairobi, Mr. Nesbitt emphasized the need for the EAC secretariat to fast-track a regional harmonized approach to promptly facilitate interventions at EAC border points to unclog trade blockages and facilitate faster clearance of goods. EABC has been emphasizing the need for EAC Partner States to harmonize COVID-19 related charges and stop testing at border posts to avoid delays in truck and cargo clearance. This year, East Africa’s inflation is projected to stand at 15.4 percent in the baseline scenario and 16.0% in the worst-case scenario. This, with Kenya’s inflation, projected to stand at 4.9 percent in the baseline...

How was 2020? It was a challenging year, but thankfully, we managed to sail through. Through our trade facilitation initiatives, we are looking for solid recovery because we have done some substantive work around the border, among which include supporting trade facilitation infrastructure as well as supporting women who have been impacted by Covid-19. So, we are on the right track and a number of highlights including the completion of the $5m Nimule one stop border post (OSBP), have been noted. This is a big achievement because it anchors trade facilitation initiatives, which seek to reduce barriers that hinder movement of goods and services along the Nimule border. Secondly, we have supported South Sudan to strengthen its integration within the East African Community. The country is a new member, therefore it requires a lot of support, especially in trade policy initiatives. Thirdly, we have appropriated support towards private sector advocacy, where we have built and strengthened capacity of the private sector in South Sudan to actively engage with the East African Business Council. Beyond this, we have helped South Sudan to harmonise standards, using the sanitary and phytosanitary (SPS) measures given that the country depends mostly on imported food items, which calls for serious safe guards to promote health and safety. We have also been able to channel support towards women traders, who as you might be aware, have been heavily affected by Covid-19. This has been done through providing necessary tools and equipment such as TradeMark Africa - AMREF...

The cost of Covid-19 testing is now becoming a hindrance to free movement of people and goods within the East African Community. EAC and the private sector are concerned that the Covid-19 related Non-Tariff Barriers (NTBs) continue to hinder cross-border trade due to different measures on Covid-19 in the region. Tests are priced differently in each EAC partner state, while containment measures vary. It costs an average of $100 to carry out Covid-19 test for visitors to the six EAC states. For instance; Tanzania and Burundi charge a standard $100 for both nationals and foreigners while the other partners’ charges vary. Harmonization calls In Rwanda, it is $50 for the test and $10 for specific logistics to the airport. Rwanda Biomedical Centre requires all travelers to wait for the results in a designated transit hotel within 48 hours. Kenya has expressed concerns that fresh NTBs could affect the African Continental Free Trade Area (AfCFTA) if measures are not put in place. “We are interested and anxious in respect to the AfCFTA. Harmonization of Covid-19 tests to facilitate free movement of people and goods is a major priority this year,” said Dr Kevit Desai, Principal Secretary, Ministry of the EAC and Regional Development. Yes, Covid-19 tests might look affordable, but different testing regimes and varied waiting time requirements have made it difficult for East Africans to move and trade freely. The lack of harmonisation of Covid-19 testing rates in accredited laboratories and uncoordinated waiting time for results is disrupting cross-border trade. “We...

In Summary The Mombasa tea auction was started in 1956 to take care of the interests of the tea sector in Africa. The auction is the largest in the world and it is managed by the East African Tea Traders Association. President Uhuru Kenyatta will commission it in April. The East African Tea Traders Association managing director Edward Mudibo has confirmed that the tea auction has now been running electronically for the last six months. “We went live six months ago with funds from the Danish International Development Agency as the main donor and Trade Mark East Africa (TMA) as the implementers‚” he said. Speaking last week during an interview in Mombasa, Mudibo said they are in the final stages. In February 2015, EATTA members approved the proposal to adopt the electronic auction system. He explained that previously, members were required to physically visit the auction in Mombasa to buy tea, but now that is no longer a requirement. “With automation, members are currently buying tea from the comfort of their offices and homes. This is a big change from the past trend where all members had to be physically present,” he said. The Mombasa tea auction was started in 1956 to take care of the interests of the tea sector in Africa. The auction is the largest in the world and it is managed by the East African Tea Traders Association. Mudibo said the journey to the automation of the tea auction started in July 2011 during the First...

In Summary Stakeholders say the market is projected to spring-up cross-border trade between Kenya and other East African Community member states. The government and development partners will fund the construction of the market Traders across East Africa are set to benefit from the construction of a Sh1.4 billion modern market at the Busia border. The facility, to be built on 40 acres in Marachi on the Kenya-Uganda border, will accommodate 2,000 traders. The 40 acres is part of a 90-acre piece of land committed to the project. The remaining 50 acres will host a school, a police post and other social amenities. The government and development partners will fund the construction of the market. Last year, the National Treasury and TradeMark Africa signed an agreement worth Sh1.4 billion to facilitate the construction and completion of the project. It is not clear when the construction will start. East Africa Community and Regional Development PS Kevit Desai said on Wednesday the market would be a one-stop shop where traders will be buying a variety of products and get other services. “This investment breaks a great milestone in our efforts to create a cross-border market to serve the purpose of the informal sector and all those who would like to trade sufficiently across borders,” he said. The PS spoke during a ceremony to erect beacons on the land the facility will be built. Once complete, the modern market will constitute a business hub, a retail section and part of it will house wholesale...