“Investment and Trade for Africa’s Economic Development” – a public webinar held on Wednesday – targeted opportunities for cross-border collaboration between Africa and Germany. The African Export-Import Bank announced its plans to sign a Memorandum of Understanding with German car manufacturers to establish an automotive industry in Africa. The Germany-Africa Business Forum (GABF), Africa Oil & Power and the African Energy Chamber co-hosted the webinar, as part of a GABF cooperation-focused series. Berlin, 24th of September, The Germany-Africa Business Forum (GABF) hosted its second installment of its German-African cooperation-focused webinar series on Wednesday, aimed at outlining the opportunities for sustainable FDI between Germany and the African continent. The panel comprised H.E. Günter Nooke, Africa Envoy to German Chancellor Angela Merkel; NJ Ayuk, Executive Chairman of the African Energy Chamber; and Rene Awambeng, Global Head Client Relationship at the African Export-Import Bank (Afreximbank). Anchored by the theme of investment and trade for African economic development, the opening keynote was delivered by H.E. Nooke, and outlined four key success factors in driving Africa’s economic development: investment and business climate, transport, energy and technological infrastructure, available workforce, and access to markets. Digitalization and green energy were advanced as two of the critical sectors for facilitating Africa’s economic and social development. Africa contains a young, tech-savvy population, noted H.E. Nooke, translating to smooth technological adoption and enhanced opportunities for both consumers and businesses. Highlighting efforts to expand global market reach, H.E. Nooke noted the anticipated benefits of the recently adopted African Continental Free Trade...

In recent months, the U.S. began negotiations for a bilateral free trade agreement with Kenya. These negotiations are aligned with the current administration’s vision for trade reciprocity rather than unilateral trade preference programs. Although these negotiations could produce the first bilateral trade agreement between the U.S. and a sub-Saharan African country, a shift from regional preferential trade agreements to bilateral free trade agreements could undermine the growth of smaller countries, who may not be of enough economic interest to the United States. Bilateral agreements could also undermine efforts to create a regional economic bloc through the African Continental Free Trade Area (AfCFTA). When President Bill Clinton signed the African Growth and Opportunity Act (AGOA) in 2000, African countries were given a competitive edge by providing unilateral duty-free exports for 6,500 products from Africa to the United States. Twenty years after AGOA was first adopted, we see that it has created long-term, sustainable growth by stimulating the private sector and creating jobs in a region where many countries are battling high unemployment, thereby addressing structural challenges the region faces. Additionally, in choosing a regional approach for the trade agreement, Clinton empowered both big players like South Africa and smaller players like Lesotho. In many ways, this approach aligns with the “trade not aid” mantra. Although AGOA has been extended twice, most recently until 2025, it has come under threats over the last four years, as tariffs were imposed on key steel and aluminum products and duty-free access was suspended for apparel...

Kenya is targeting to conclude deals on services in ongoing and pending trade negotiations with various partners in order to boost export volumes amid COVID-19 pandemic going into next year. According to Industrialization, Trade, and Enterprise Development CS Betty Maina, previous trade negotiations have focused more on the sale of goods even though the services sector has indicated the fastest growth in Kenya. CS Maina says education, tourism, and medical, financial, ICT services have been identified as the fastest-growing segments which Kenya is keen to add on a list of exports in its negotiations with various countries. “One of the challenges is that we have not concluded as many trading services agreements like the East African Common Market Protocol. There are still a lot of restrictions and misunderstandings on services especially the mode and presence of service notably those to do with work permits,” Maina said. She went on, “In our negotiations with the US services are part and parcel of it but if there is contestation about the mode of export, presence, and export it would be difficult to realize growth,” Data compiled by the Observatory of Economic Complexity indicate that Kenya service exports amounted to 492 billion shillings as of 2014. Following a disruptive period marked by coronavirus pandemic which slowed exports of key products since March this year when the health crisis began, the government is also keen on expanding the volume of exports to new markets and increase investments in the production value chain. “We have...

NAIROBI, Sept. 24 (Xinhua) -- East African Community's (EAC's) tourism sector will face a 92 percent decline in cash flows due to the impact of the COVID-19 pandemic, says a report released on Thursday. According to the report by East African Business Council (EABC), the logistics and retail sector will face a 75 percent and 63 percent reduction in cash flows due to measures to contain the spread of the virus. "However, the pharmaceutical sector has recorded zero effect on cash flows. The COVID-19 pandemic has contributed to the increase of demand for pharmaceutical products as well as the decisions of EAC partner states to allow movement of essential goods," says the report on the impact of COVID-19 on businesses and investment in the EAC region and recovery strategy that was launched virtually. The survey sought to find out how COVID-19 has affected businesses in the region by looking into the impact on five critical areas: cash flow, supply chains, employees, projected period of business sustainability and areas companies are seeking support. The study urges national governments to make additional funds available to assist the tourism and hospitality sector which is under particular stress due to new travel restrictions. The findings show that the spread of COVID-19 has also generated substantial uncertainty for the regional businesses which may result in the closure of business and investments. The analysis indicates that about 41 percent of businesses in the trading bloc will not be sustainable for more than six months while another...

The Government of Uganda through the Uganda Free Zones Authority (UFZA) has inaugurated the construction of the first public Free Zone in Uganda. The free zone facility is established at Entebbe International Airport and it’s estimated to cost Government UGX48 Billion. Upon construction completion whose construction is said to last for 6 months . The Entebbe International Airport Free Zone will have facilities for Agro – processing Mineral processing warehousing and bulking, simple assembly among other like offices for government agencies that support trade. Also upon completion, the facility will support increased production, quality assurance and value addition to commodities that are widely produced by the masses to improve house hold incomes and create employment thus eliminating poverty as well as improve the value of Uganda’s export, both in the region and Internationally. Speaking at the site handing over of the 5acres piece of land to the contractor (National Enterprise Corporation), UFZA Executive Director Hez Kimoomi Alinda said, “the Entebbe based Free Zone is expected to create about 240 direct Jobs and significantly also contribute to an increase in volumes of processed goods and exports from Uganda. He also added by explaining that, although Uganda is an agricultural based state, the country’s earning from the sector is still low despite the fact that prices of manufactured and value added goods have significantly continued to rise. “This Phenomenon has created a situation where hardworking Ugandans in the agricultural sector, farm have been affected due to the country’s limited capacity to process,...

Governments in Africa are being urged to harmonise trade policies to ensure the continent strikes the right balance between tackling coronavirus and keeping trade flowing. In a report the Economic Commission for Africa (ECA) said inefficiencies and disruptions to cross-border trade risk holding back the continent’s development goals, though innovations such as a common African Union (AU) Covid-19 test certificate for truck drivers were a step forward. Read original article

This week, Kenya joins the rest of the world to mark World Maritime day to commemorate the contribution of shipping and seafarers to global economic development. The celebrations could not have come at a better time when the world is slowly winning the war against COVID 19 pandemic. This has been ably demonstrated by the International Maritime Organization (IMO) Secretary-General Kitack Lim, in his address to the world to commemorate the World Maritime Day. Lim’s clarion call on "voyage together", that rallies member States, NGOS, and multiple maritime stakeholders to work hand in hand, is almost bearing fruits here in Kenya. The Covid 19 pandemic though seen as a dark cloud in the maritime sector, we can equally agree that it came along with its silver lining. Due to the restrictions in travel during the pandemic period, the silver lining is slowly emerging to be the rapid adoption of digitization of shipping operations. This makes Lim’s dream on the willingness of member states to work together in supporting shipping, seafarers, and the maritime sector to fulfil their responsibilities a reality. Back at home, the Voyage together dream can only be realized with the implementation of the Maritime Single Window System. The system is at an advanced stage and is envisaged to be rolled out for operations in the course of this year. The system is a mandatory requirement for member states to introduce electronic information exchange between ships and ports, which came into effect from 8 April 2019. This is...

Kobero, Burundi, 24th September 2020 - Regional Aid for Trade Agency TradeMark Africa (TMA) has this morning handed over Personal Protective Equipment (PPE) to front line agents working at Burundi’s key borders- in order to protect lives in Burundi and strengthen the war against Covid-19. The PPEs presented were funded by UKAID through TradeMark Africa. On hand to receive the PPEs at Kobero One Stop Border Post, were Minister of East African Community Affairs, Youth, Sports and Culture, Honourable Ambassador Ezéchiel Nibigira, Burundi Revenue Authority (OBR) Commissioner of Customs, Mr Adolphe Manirakiza and the Chairman of the Burundi Private Sector Federation (CFCIB), Audace Ndayizeye. The equipment provided includes hand sanitizers, hand washing stations, liquid hand washing soap, infrared thermometer, re-usable safety boots, full protective PPE, filtering facepiece respirator, reusable masks, plastic face shield, disposable gloves, hand sanitiser dispensers and disinfectant spray bottles. Speaking during the handover event, Hon. EAC Minister Amb. Nibigira noted that whereas infections have slowed down in Burundi, 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 in order to safeguard our economy and the livelihoods of our people”’ noted the Amb. Nibigira. The equipment presented today will enhance the safety and working condition of front-line workers in key borders, which are...

THE 2020 Africa Agriculture Trade Monitor (AATM), published by the International Food Policy Research Institute (IFPRI), has recently been released, providing an analysis of continental and regional trends in African agricultural trade flows and policies. According to the AATM report, the third in a series of flagship reports, policy reactions among the world’s leading food and agricultural producers during the coronavirus pandemic since the beginning of the year have caused disruptions in world supply chains and threatened food-security systems in food import-dependent countries. Furthermore, measures to contain the virus have magnified the negative impact of the crisis on intra-continental trade flows and the livelihoods of millions of people across Africa. But opportunities lie in the crisis, as the foreword to the report points out. Among these is a strong political will to improve intra-African integration with the ratification of the African Continental Free Trade Area (AfCFTA) agreement. This agreement, launched in July 2019, aims to eliminate tariff and non-tariff measures on goods, improve continental integration, and speed up customs procedures that remain a serious barrier to trade performance in Africa. According to the report, countries should not let the pandemic stop progress towards economic integration. It said that agreements like the AfCFTA could provide not only a solid basis for long-term economic development, but also a means of effectively fighting future pandemics by facilitating the cross-border trade of food and medical goods. According to the report, virtual negotiations on the AfCFTA could begin in the coming days and set a...

TANZANIA and Burundi have committed to deepen and strengthen economic ties through expanded trade and investment, with a goal of achieving decent livelihoods in both countries. President John Magufuli and his Burundian counterpart, President Evariste Ndayishimiye have agreed to work together to ensure economic growth and advance peace and stability in the two countries. The two presidents have directed their Ministers for Foreign Affairs and East Africa Cooperation and Ministers for Works, Transport and Communication to meet immediately so that they can set strategies for execution of various projects. President Ndayishimiye was on his first state visit since he was elected in June, this year. The Burundian Head of State who was accompanied by his wife, ministers and other governmental officials was warmly welcome to the Western region of Kigoma with a colourful military parade and a 21-gun salute. Speaking after holding talks with his guest at the Kigoma State Lodge, President Magufuli said Tanzania was happy to receive the Burundian President, and that it was a great honour for the country to be chosen for the first state visit. "President Ndayishimiye has given us great respect, this is his first state visit since he was sworn in as the president of Burundi, and he chose Tanzania to be the first country for him to visit," said President Magufuli. The Head of State said they have agreed to strengthen economic ties by boosting businesses and working together in many areas, saying the two countries need to increase trade volume for...