THE European Union (EU) says the signing of the €3.54 million COMESA agreement that sub-delegates the implementation of coordinated border management activities between Zambia and Malawi is a welcome move. Ambassador of the EU to Zambia and COMESA Jacek Jankowski said the signing of the agreement is also a major step towards a reduction in hindrances to trade between the two countries. He added that the move will also lead to an increased seamless flow of goods between Zambia and Malawi. Yesterday, the COMESA Secretariat and the Malawian government signed the agreement a month after a similar agreement was signed with the Zambian government to upgrade its side of the border post at Mwami. Zanis reports that the chargé d’affaires at the European Union Delegation in Malawi, Aurélie Valtat, also expressed optimism that as African states start trading under the African Continental Free Trade Area (AfCFTA), the removal of any form of hindrances to cross-border trade is critical to ensure the benefits of open trade. Ms. Valtat said this is why the European Union remains committed to supporting Malawi’s trade facilitation efforts and to contribute to boosting intra-Africa trade. COMESA Secretary General Chileshe Kapwepwe and the Principal Secretary in the Ministry of Trade in Malawi, Christina Zakeyo, separately signed the sub-delegation agreement in Lilongwe and Lusaka yesterday. The project will support the implementation of key pillars of One-Stop-Border-Post operations and the implementation of major activities among them being the upgrading of the customs e-management system and bandwidth, improving inter-agency connectivity,...

The Africa Continental Free Trade Area (AfCFTA) app will enable the SMEs to sell and buy goods via a cashless and contactless platform under the low duty regime that satisfies the “know-your-customer” requirements at banks and financial institutions. AfCFTA trade promotion and programmes director Francis Mangeni said SMEs admitted onto the app will be issued with a mark of identity. “It is true that Africa has seen a number of trade agreements at regional level, but AfCFTA is different because it is being set up to fulfil aspirations of a truly single market that competes for the biggest of global opportunities,” he said. Creation of the AfCFTA is aimed at opening the 1.2 billion people market whose launched has been deferred from January 1 to a later date owing to challenges on tariff concessions, rules of origin and trade in services. The Kenya Association of Manufacturers asserts that overlapping membership to regional trade blocs, underdeveloped transport infrastructure (road, rail and air), unfamiliar or different customs and trade procedures and weak value chains also hurt AfCFTAs dreams. Intra-Africa trade remains low at 15 per cent compared to Europe’s 68 per cent, North America’s 37 per cent and Latin America’s 20 per cent, solely blamed on “national” interests by member States keen on safeguarding their own industries, trade barriers and poor transport and telecommunication connectivity. Under the AfCFTA, liberalisation of trade is being carried out through regional trading blocs — the East African Community (EAC), Common Market for Eastern and Southern Africa...

Tanzania has joined the East African Community’s (EAC) harmonised mobile roaming framework, Chimp Corps report. The move expected to lower the cost of telecommunication in the region. The regional body’s 16th Sectoral Council of Transport, Communication and Meteorology (TCM) had given Tanzania until March 31, 2020 to finalize its analysis on the implementation of the EAC roaming framework. “We wish to inform you that the United Republic of Tanzania has concluded the consultations and is now ready to start implementation of the EAC roaming framework,” said Tanzania’s Foreign Affairs Ministry Acting Permanent Secretary, Stephen Mbundi in a letter to the EAC Secretariat. The Roaming Framework which provides for the harmonisation of mobile calling and data charges had so far only been implemented by Rwanda, Kenya and Uganda. The initial deadline by the EAC Heads of State Summit for the implementation of the roaming framework was 2015. “We are, therefore, writing to officially inform you of this development as was directed by the 16th Sectoral Council of Transport, Communications and Meteorology held in June 2019, Kampala Uganda,” said Mbundi. Tanzania’s decision to implement the mobile framework will boost communication with its regional partners especially after the commencement of the African Continental Free Trade Area on January 1. Uganda’s Ambassador to Tanzania, Richard Kabonero, recently said investing in modern communication technologies and harmonizing mobile roaming charges were a prerequisite for fostering regional trade and cooperation. “If we bring down the cost of communication in the region, we will see more engagement among our people which ultimately enhances regional...

Kenya’s ICT sector has seen a 10.8% average annual growth since 2016, making it one of the fastest-growing tech environments on the continent. This success can be largely attributed to various innovations in our digital space, with the ICT sector on track to creating 250,000 jobs and contributing up to 8% of GDP by the end of 2020. Kenya has firmly established itself as a digital trendsetter in Africa, but how far have we come on our digital journey? Let’s have a look at some notable developments and partnerships that have been implemented and how they may shape the future of Kenya’s digital environment. Mobile payment platforms After the launch of Safaricom’s M-PESA in 2007, Kenya has not only emerged as a leader in mobile payment platforms but has also driven its economic growth through financial inclusion. Huawei has recently partnered with Safaricom and other network providers to aid the implementation of services like M-PESA, a mobile money platform, M-TIBA, which provides medical treatment through a mobile health wallet, and Fuliza – a service that lets users with insufficient funds borrow money to complete their transactions on M-PESA. Over Kshs 6.2 billion in transactions were processed in Fuliza’s first month, and its total loans rose by 30% when the pandemic hit East Africa. Microloan platforms like Fuliza have empowered millions of Kenyans who would otherwise not have had access to finance, and it therefore comes as no surprise that Safaricom contributed 6% to our GDP in 2020. Other international platforms...

The African Union agenda 2063 is on course. After some delays due to covid, the African continental free trade area has become a reality. As part of the free trade area, the African Union passport will be availed this year. The passport launched in 2016 had been available only for diplomats and AU officials. It will now be rolled out to ordinary citizens of the African Union. What will an African Passport mean? The rationale for the passport is for African citizens to be able to cross all borders on African soil without a visa. The passport will facilitate easier movement for people to ease trade relations. As African countries strengthen ties and seek to reap strength in numbers, the passport will spell an easier transition into seamless trade on the continent. Modeled along the lines of the European Union passport, the passport will be biometric to prevent fraud and illegal issuances. AU passport and poverty: implications Africa is counted among the poorest of the poor. With over a third of Africans living on less than $1.90 a day. According to a UNICEF study, Africa’s population is expected to double by 2050 to over two billion people. The population doubling will only put more pressure on already scarce resources. Coupled with climate issues, conflicts, and uneven trade, this presents an enormous challenge that could further exacerbate the poverty situation. In light of these challenges, an African passport could serve as a useful tool for facilitating trade within the continent. This will...

Stakeholders have expressed excitement with the ratification of the Africa Continental Free Trade Area (AfCFTA) by Malawi, which has become the 35th country to ratify the pact. The ratification follows the deposits of the agreement’s instruments, which were signed by President Lazarus Chakwera on November 1 2020, to the African Union Headquarters in Ethiopia. Speaking in an interview, Cross Border Traders Association of Malawi Chairperson Esther Tchukambiri said the pact is a great move towards widening Malawi’s market base. “This is a great move because it will help us to have more markets for our products and also to learn more from other countries as to what they are doing in terms of trade in order to develop,” she said. Tchukambiri further asked government and stakeholders to scale up the awareness drive of the agreement so that many people get to know it and effectively use it. Speaking in a separate interview, National Association for Small and Medium Enterprises Chairperson William Mwale said traders in the country have been looking forward to the ratification. He added that the ratification will broaden the market for agricultural products which Malawi mainly exports, hence contributing to the Gross domestic product growth of the country. “We will be able now to compete in a global village and exchange goods and raw materials including finished products which will help the country to grow,” he said. While welcoming the development as a great tool for trade development and improvement, Malawi Confederation of Chambers of Commerce and...

Women traders at the newly renovated Sofya market in Kasulu now hope for a bright future for their children. The construction of sheds and display facilities for products will enable approximately 1120 women and youth to sell their fruits and vegetables in suitable conditions. 894 youth from the Buhigwe district in Tanzania are looking forward to the completion of the Youth Socio Economic Development Centre in the area. This centre will provide a space where the young community can obtain the skills and knowledge needed to access information on good agricultural practices. Post-harvest losses in remote Kigoma have always remained high due to the absence of adequate storage facilities. But with the expansion of Mvugwe aggregation centre in Kasulu district, nearly 600 farmers now have access to improved storage facilities for cassava. Trainings on post-harvest management and standard operating procedures will also soon be available. Around 200 entrepreneurs dealing with gems and precious stones will be able to secure deals in the security of the newly renovated Mineral and Gems Exchange Centre in Kigoma Town. In partnership with the Small Industries Development Organization, efforts to establish a competitive palm oil value chain will help secure sustainable livelihood opportunities for 300 women smallholders associated with palm oil production. The virtual world is brimming with opportunities, and the Agribusiness Tanzania App, developed by Nyakitonto Youth for Development Tanzania is being improved to take advantage of this. The digital app will help create stronger market linkages and access to market intelligence for 60...

AUTOMATE: East African Tea Traders Association (EATTA) confirmed that it has complied with the government’s directive to automate the Mombasa tea auction, enhancing its capacity to handle all tea produced in the country. Under the new Tea Act 2020, all teas processed and manufactured in Kenya for the export market with the exception of orthodox and specialty teas will have to be offered for sale exclusively at the tea auction floor. Edward Mudibo, EATTA managing director said in an interview that automation has been undertaken with assistance of Sh217 million from the Danish International Development Agency as the main donor  and Trade Mark East Africa (TMA). Fine details “Since then we have been working the final fine details to ensure it has the capacity to handle all tea from Kenya and in the region. We are hoping soon it will be officially commissioned by the head of state,” added Mudibo. However, a section of industry players have cautioned that the idea to have all tea sold through the Mombasa tea auction is likely to  lead to loss of some market segments which Kenya has been serving globally. Tea sector stakeholders who spoke to Business Hub said regional countries that export their tea through Mombasa tea auction are likely to take over same market segments local traders have been serving through direct sales. Kenya Tea Growers Association CEO Apollo Kiarie said already regional players who are also members of the auction are gearing up to take over markets Kenya had already developed through the second window...

The East African Business Council (EABC) is urging for lowering and harmonization of COVID-19 related charges in the East African Community, in a bid to ease the cost of doing business and boost intra-EAC trade. This is set to support businesses to be more resilient and rebound amidst the COVID-19 pandemic. Currently, Covid-19 tests are priced differently in each EAC Partner States, while containment measures are varied. For instance; Tanzania and Burundi are now charging a standard rate of $100 for both nationals and foreigners while the other Partner States' charges vary. “The EAC Secretariat should fast track regional coordination and harmonisation of measures on COVID-19 for economic resilience and growth of the EAC bloc,” said Dr. Mathuki, CEO EABC. Dr.Mathuki also called for the establishment of a common quarantine period in the region and fast-tracking of the waiting time for Covid-19 test results. The lack of harmonisation of Covid-19 testing rates in accredited laboratories and uncoordinated waiting time for the test results is disrupting cross-border trade.COVID-19 related Non-Tariff Barriers (NTBs) continue to hinder cross-border trade due to different measures on COVID-19 in the region. As of October 2020, the World Bank predicted growth in Sub-Saharan Africa to fall to-3.3 percent in 2020, driven by the economic fallout of the COVID-19 global pandemic. Different preventive and restrictive measures undertaken by EAC Partner States to control the spread of COVID-19 have significantly slowed down trade, movement of persons and integration. The trickle-down effects of these measures have also been felt across...

THE Consumer Unity Trust Society (CUTS) says the recently launched African Continental Free Trade Area (AfCFTA) will boost Zambian’s access to a variety of goods and services. CUTS Programmes Officer Jane Zulu notes that it is important for the consumer to understand their rights in order to protect themselves as they interact in the various trading spaces. On January 1, 2021, the AfCFTA was launched with the goal of increasing intra- African Trade by over 50 percent and allow Africa to create its own value chain. The AfCFTA aims to create a single market for goods and services with the anticipation of boosting trade amongst the nations. “CUTS is pleased with the launch of the AfCFTA and is looking forward to the implementation of the AfCFTA. Consumers have the right to a variety of goods and services,” Ms. Zulu has said. She further adds that CUTS’ role in the AfCFTA agenda is to sensitize consumers on their consumer rights to ensure that there are fair trading practices in the trading spaces. Ms. Zulu says despite the benefits the AfCFTA has to offer there are some consequent challenges that the CFTA poses, adding that specific to Zambia, some of the challenges include, the lack of modern and efficient infrastructure. Other encounters are unclear information about the process, restrictions for women-led businesses, and the economic disturbance brought on by the COVID 19 pandemic. Ms. Zulu highlights, “It is therefore important for the government to put policies in place that will protect the...