SSCBT is important on informing policies for poverty reduction and inclusive growth The future for many Africans is uncertain as the world continues dealing with the Covid-19 pandemic whose increase and mutation is necessitating lockdowns in different parts globally. Majority of the affected millions are now either out of work or in limbo since some companies have opted for extended unpaid leave for their employees instead of laying them off. Accordingly, the Covid-19 pandemic has potential far-reaching and multifaceted indirect impacts on societies and economies. These effects could last long after the health emergency is over. The extended negative effects of the pandemic could aggravate existing instabilities or crises, or lead to new ones with repercussions on individuals’ emotional and economic wellbeing, food security, and livelihoods. With this reality, though, there are several opportunities that African governments should exploit to ensure that they cushion their people, especially the very vulnerable, from the suffering that the pandemic is leaving in its trail. While the short term interventions are welcome, there is more that can be done on the continent to ensure the sustainability of livelihoods. According to the Africa Investment Forum (AIF), domestic manufacturing is a path to expand intra-continental trade while also reasserting Africa’s position in global markets. The role of the private sector cannot be underestimated especially with the rolling out of the African Continental Free Trade Area (AfCFTA). For Foreign Direct Investment (FDI), investors should not view Africa as a single market. AIF’s Senior Director Chinelo Anohu says...

The Government has started training traders in border counties to promote Cross-border trade among East African Community (EAC) member states. The training according to the government is aimed at addressing lack of information which is one of the impediments to inter-country trade. The Government is currently training more than 60 focal persons representing various business groups in Homa Bay County to achieve the objective. Speaking during one of the training in Homa Bay town, East African Community Principal Secretary Kevit Desai said the main obstacle which impedes EAC cross-border trade is lack of information by Kenyan traders. He cited lack of awareness on goods and services allowed by each country, standards and certifications required, taxes, import and export laws of each EAC member state. Desai who was accompanied by Deputy Governor Hamilton Orata said many traders had failed to undertake cross border trade due to lack of such information. “We realised that there are many traders with interest in exporting or importing goods from an EAC member state but they cannot do it due to lack of information,” said Desai. He said the government is committed to demystifying the obstacles to increase the number of Kenyan traders who want to venture into cross-border trade. The efforts also include opening more business opportunities and harmonising legal restrictions to enhance freedom in trade. “The cross-border trade creates markets for a number of goods produced locally,” he said. Orata said the county government’s department of trade will continue training more traders on the...

There is tremendous economic growth potential for agricultural enterprises in East Africa, but expansion depends on their receiving appropriate support – including training on how to be climate-smart. Joseph Muhwanga and Teferi Demissie report. This is one of a series of blogs on ‘Accelerating adaptation action in Africa’ published by CDKN to frame the Africa segment of the Climate Adaptation Summit, January 2021. The role of MSMEs in East African economies For African countries to achieve meaningful and sustainable development, the role of the private sector and its need for enhanced, adaptive capacity in the face of climate change is undeniable. Many micro-, small- and medium-sized enterprises (MSMEs) are less likely to have adequate capacity to take the necessary measures needed to adapt to the potential risks and opportunities presented by climate change. Yet involving MSMEs is crucial as a source of employment, economic growth, social transformation and building resilience to climate change. The definition of MSMEs varies slightly per country but the main parameters used are the number of people employed and turnover per year.  In Kenya, the official definition of MSME is based on employment numbers whereby a) micro-enterprises have fewer than 10 employees, b) small enterprises have 10- 49 employees and c) medium sized enterprise have 50 to 99 employees.  In Uganda, micro-enterprises employ up to 4 people and have turnover or total assets not exceeding US$ 2690, Small enterprises employ 5-49 and have turnover or total assets of US$ 2,690 -26,906 and medium enterprises employ 50-100, with total...

A recent financial and economic review published by the Reserve Bank of Malawi (RBM) has predicted growth in the manufacturing sector of 5.6 percent in 2021. According to the report, in 2020, the sector grew by 1.2 percent from 5.1 percent in 2019. It says the sector has experienced logistical challenges due to importation restrictions which affected the importation of inputs as well as exportation of goods as neighbouring countries closed their borders as one way of containing the Covid-19 pandemic. Advertisement “While the overall growth of the sector has declined, some sub-sectors registered a significant increase in growth due to the pandemic. For example, demand for plastics, sanitisers and campaign materials entailing increased growth for the concerned subsectors; hence, the 1.2 percent growth” the report reads. In an interview, Director of Business Environment and Policy Advocacy at the Malawi Confederation of Chambers of Commerce and Industry (MCCCI) Madalitso Kazembe said the sector was likely going to rebound in 2021 but it could be too early to determine the margin. “The sector may grow better than 2020 because last year was like a shock to the system and now companies have found ways of navigating or managing the shock. So it could grow but I am not sure whether that margin is realistic or not I would have loved to see the variables that have led to such a projection,” Kazembe said. Advertisement In an earlier interview Chibuku Products Limited Business Development and Corporate Affairs Manager Gloria Zimba said 2021...

After getting delayed by eight months because of the global Coronavirus pandemic, the African Continental Free Trade Area (AfCFTA) was launched belatedly on New Year’s Day this year. Ethiopian Airlines partnered with DHL and African Electronic Trade Group to transport the first batch of parcels traded under this much anticipated free trade area agreement. In a statement, the partners hailed the effort as one that will “welcome the start of trading of the African Continental Free Trade Area with its 1.3 billion people and an estimated GDP of [USD] 3.4 trillion.” The AfCFTA, the largest in the world, garnered the signatures from 30 of the 55 nations on the continent surpassing the threshold of 22 signatories to be ratified. The objectives of the agreement include creating a single continental market for goods and services - with free movement of goods, people and investments - and thus, paving the way for an accelerated establishment of the Continental Customs Union. The ultimate vision being to further expand intra-African trade through better harmonization and coordination of trade liberalization and facilitation regimes and instruments across Regional Economic Communities (RECs). Resolving the challenges of multiple and overlapping memberships and expediting the regional and continental integration processes and enhancing competitiveness at the industry and enterprise level is also to be the principle that will guide the historic agreement. This is to be achieved by exploiting opportunities for scale production, continental market access and better reallocation of resources. The AfCFTA is said to bring about much more...

Dangote Industries Limited has said its cement expansion plan and fertiliser investments are strategies to open new trade routes for Nigeria under the Africa Continental Free Trade Area (AfCFTA). President of Dangote Industries Limited, Alhaji Aliko Dangote, said this in a statement yesterday in Lagos. AfCFTA, which took off on January 1, aims at creating a single market for the movement of capital, goods, people and investments to further deepen the economic integration of the continent. According to him, the cement company with an installed capacity of 29.3Mta in Nigeria, is targeting an expanded entity in Cameroon. He also revealed that new plants would soon be ready for commissioning in Niger, Benin, Ghana, Cote D‘Ivoire and Togo. Dangote stressed the need for Africa to deliberately improve its per capital consumption of cement to aid infrastructure development by stimulating further demand and forcing down the cost of the commodity. He said the desire for Africa’s self-sufficiency in cement production informed the signing of a $4.34 billion contract with Sinoma International Engineering Company Limited, a Chinese construction giant. The contract, the business mogul said, was for the construction of 11 new cement plants in 10 African countries, and Nepal in Asia. Dangote said the report by the United Nations Conference on Trade and Development (UNCTAD) on the development of deficit infrastructure to ensure competitiveness in the AfCFTA had moved the company to leverage the deficit with its cement investment. “For Dangote Industries Limited, moving goods, like cement by road from Nigeria, where...

Tool released ahead of the start of trading under the new African Continental Free Trade Area. new trade intelligence tool that enables firms to easily explore and compare trade opportunities across Africa has been released ahead of the start of trading under the new African Continental Free Trade Area. The African Trade Observatory was rolled out by the African Union (AU), the European Union (EU) Commission and the International Trade Centre (ITC) at an AU summit on 5 December 2020. ‘Trade information is vital to the promotion of trade in Africa,’ AU Commissioner for Trade and Industry, H.E. Amb. Albert Muchanga said. The AfCFTA lowers trade barriers and promotes regional economic integration. Trading under the continent-wide area is set to begin on 1 January 2021. ‘Economic Integration is close to the heart of the European Union and will continue to support the African Union towards its endeavour of the African Common Market,’ European Union Commissioner for International Partnerships H.E. Jutta Uripilainen said. The African Trade Observatory is especially valuable for empowering the economic operators during this COVID-19 pandemic, ITC Executive Director Pamela Coke-Hamilton said. ‘Today, we are putting an entire continent of trade intelligence at the fingertips of African entrepreneurs, especially to support small local firms, women and young people in making the most of new opportunities’. The beta version of the web platform, currently available in French and English, was released during the 13th Extraordinary Session of the Assembly of Heads of State and Government on the AfCFTA. The...

On 1st January 2021 trading under the AfCFTA started Africa. This is a historic milestone for the continent as Africa will really start to trade with Africa. Currently, the percentage of trade that African countries do with each other is a mere 16 – 18%. The bulk of the continent’s trade is with the rest of the world, and most African exports are in raw materials including extractive commodities like oil, gas and minerals which are vulnerable to market volatility. Under AfCFTA trading, tariffs on various commodities where rules of origin have been agreed will be drastically reduced and traders of all sizes will have access to a much bigger market than they used to before. Non-tariff barriers (NTBs) to trade will also be addressed and a mechanism for speedy reporting and resolution of NTBs has been put in place (www.tradebarriers.africa). The bigger market will spur producers to upscale and so support increased industrialization and value addition on the continent. More employment opportunities will thus be generated for Africa’s burgeoning youth population. It has already been demonstrated that to mitigate the Covid-19 pandemic medicines and personal protective equipment need to be produced and moved to where they are needed expeditiously. The AfCFTA will be a tool for mitigation of Covid-19 by allowing free and unhindered trade in health products across the continent. The Agreement establishing the AfCFTA was signed in March 2018, in Kigali Rwanda, following conclusion of the main legal texts. 54 Member States of the African Union have...

Hargeisa, Somaliland, 6th January 2021 - Regional Aid for Trade Agency TradeMark Africa (TMA) has this morning handed over Personal Protective Equipment (PPE) to the government of Somaliland to protect front line agents working at Somaliland’s Tog-Wajaale border. The PPEs presented were funded by UKAID through TradeMark Africa. On hand to receive the PPEs were the Somaliland Minister of Finance, Dr. Saad Ali Shire and Director General of Ministry of Health, Dr Mohamed Hergeye. The equipment provided includes N95 face masks, foot pedal hand wash, sanitizers, disinfectants, and hand wash. Speaking during the handover event, Minister Saad Shire noted that whereas infections have slowed down in Somaliland, it remains imperative for the Government, non-government actors and the citizens to continue working jointly to prevent any re-emergence of the disease. “The fight against this pandemic presents a twin challenge for our nation, we must avoid re-emergence of the disease through new infections and we must also bolster our trade with the region to safeguard our economy and the livelihoods of our people” noted by the Minister. The equipment presented today will enhance the safety and working condition of front-line workers in key borders, which are critical arteries of trade in and out of Somaliland and her neighbours. A key border where the PPEs will be distributed is Tog-Wajaale (with Ethiopia). TMA Country Representative for Somaliland, Abdirahman Osman expressed optimism that the PPEs provided will protect key borders to continue facilitating trade without becoming infection hot spots. “Our borders and corridors remain...

H.E. Uhuru Kenyatta CGH, President Republic of Kenya and H.E. Dr Abiy Ahmed, Prime Minister, Federal Republic of Ethiopia will today launch the Moyale One Stop Border Point (OSBP). The facility is expected to greatly improve efficiency by reducing the cost and time taken to cross the border. This in turn is expected to catalyse trade between the two leading economies in the region who trade has been modest. TradeMark Africa funded the Integrated Border Management (soft part of the OSBP) to a tune of US$ 690K.