Amid trade tensions between the U.S., China and Europe, and the U.K.’s fraught departure from the European Union, African leaders are moving in the opposite direction to establish the world’s largest free-trade zone. Talks on driving forward the African Continental Free Trade Area that stalled with the onset of the coronavirus pandemic are being revived by the African Union, but there is some way to go. A fully implemented deal could cover a market of more than 1.2 billion people with a combined gross domestic product of $2.5 trillion. 1. Who’s in the free-trade agreement? Just about the entire African continent. Fifty-four of the 55 nations recognized by the African Union have signed on to the organization’s initiative to liberalize intra-African trade in goods and services. Eritrea, which has a largely closed economy, is the sole holdout. More than half of the signatories have ratified the deal. 2. What’s the aim? To lower or eliminate cross-border tariffs on 90% of goods, facilitate the movement of capital and people, promote investment and pave the way for a continent-wide customs union. It will also create a liberalized market for services. Once members work out how to treat matters such as cross-border payments, telecommunications, transport and professional services, some countries will have to amend their domestic regulations to comply. 3. Has trading under the agreement started? Not yet. The trade area entered into force in May 2019, four years after negotiations started, when the required minimum of 22 nations ratified it. The first...

In Summary The commodity has been gaining week-on-week despite remaining below the two-dollar mark. This week's rise came amid a drop in traded volumes, which fell to 7.2 million kilos from last week's 8.1 million kilos, an 837,598 kilos difference. Auction prices for tea have recorded an increase for a straight fourth week, recovering from a 13-year low reported in the period ended June. The commodity has been gaining week-on-week despite remaining below the two-dollar mark, giving hope for better earnings to farmers in the second half of the year. This week, a kilo at the Mombasa Tea Auction traded at an average $1.95 (Sh210.74) up from $1.88 (Sh203.17) last week. Previous two weeks had average prices of $1.85(Sh199.93) and $1.82(Sh196.69) a kilo respectively. This week's rise came amid a drop in traded volumes, which fell to 7.2 million kilos from last week's 8.1 million kilos, an 837,598 kilos difference. Out of 136,681 packages (9,009,501 kilos) available for sale, 109,180 packages (7,235,036 kgs) were sold. 20.12 per cent packages remained unsold, the East African Tea Trade Association (EATTA) data indicates. “Kazakhstan and other CIS states lent strong support and were dominant with increased and strong inquiry from Pakistan Packers,”EATTA managing director Edward Mudibo notes. There was also strong interest from Afghanistan and Sudan while Yemen, other Middle Eastern countries and Russia showed useful activity, EATTA says in its report. Egyptian Packers were active but at lower levels while UK were active but selective with Bazaar selective. Iran were quieter with reduced...

In Summary Efficiency at the facility continues to be supported by improved cargo handling capacity and automation of systems, including exits from the ICD. The Kenya International Freight and Warehousing Association had this week raised concerns over delays at the facility which is subjecting importers to storage charges. Cargo evacuation at the Inland Container Depot-Nairobi has remained steady as imports from China, Kenya's leading source begins to pick after five months of disruption on the supply chain occasioned by Covid-19. The latest data indicates 80 per cent of cargo is cleared within zero to 4.6 days, which falls within Kenya Ports Authority(KPA) four days-free storage period, saving importers from costly storage charges while contributing to the ease of doing business in the country. 10 per cent of cargo is cleared within six to 10 day while seven per cent is moved out of the dry port within 11-20 days. Only two percent goes through the customs check processes, KPA confirmed yesterday. “Overall, we are operating within the free storage period,” Nairobi ICD manager Peter Masinde told the Star. According to Masinde, efficiency at the facility continues to be supported by improved cargo handling capacity and automation of systems, including exits from the ICD, which have seen operations remain steady despite measures to contain the spread of Covid-19 among them reduced personnel on site. Cargo dwell-time, the time a container takes to leave a port facility, reduced to five days in July into August, from six days between April-June. Average cargo dwell time in most ports in Africa is close to 20...

THE government has insisted that it is committed to constructing a railway line stretch from Mpanda Town in Katavi Region to Karema Port in Lake Tanganyika. The railway line stretch from Mpanda Town to the strategic port of Karema is seen as an important step to improve rail transport as the project is expected to be finished next year. Speaking in Mpanda at the weekend, Tanzania Railways Cooperation (TRC) Director General Masanja Kadogosa said the government had set aside over 60bn/- for the construction of Karema Port and the railway line stretch to the major zonal terminal in Lake Tanganyika. Karema Port, whose construction will cost 47.92bn/-, is expected to be completed next year and will be the major zonal terminal to be reached by the railway line from Mpanda Town. Karema Port is a strategic terminal as it will serve parts of the Eastern Democratic Republic of Congo (DRC), Zambia and Burundi. Constructing the railway line stretch from Mpanda to Karema Port will enable goods destined for some parts of the Eastern DRC to be transported by rail from Dar es Salaam to Karema Port before proceeding to the largest Central Africa nation. According to Mr Kadogosa, part of over 6bn/- set aside for the project, will be spent on the construction of the railway line which will connect the terminal to Mpanda Town. The central railway line branches off in Kaliua District, Tabora, before continuing to Mpanda in Katavi Region. Mr Kadogosa, who also serves as Tanzania Ports...

In recent history virtually every continent and economic block has been trying to establish common trade area agreements as well as political unions. Africa is no different –SADC, ECA, COMESA, ECOWAS and SACU are just some of the examples of African countries trying to collaborate to drive the many aspects of social and economic development. It is a system and an idea that promises to accelerate inclusion and promote regional prosperity among neighbours and the AfCFTA (The African Continental Free Trade Area) is rapidly becoming the embodiment of that reality – 28 African countries operating as a free trade area. As expected from an agreement of this magnitude, few people fully understand its complexity and intricacies. FurtherAfrica spoke to one of AfCFTA’s strongest advocates. Mark-Anthony Johnson, CEO of JIC Holdings – an investment, trading and acquisition entity focused in Africa and emerging economies with roots back to 1985. Mark’s JIC operations are at the heart of what is poised to become the world’s largest free trade area. Fabio Scala: Mark, it’s always great to see you and very exciting to have the opportunity to discuss AfCFTA with you, so thank you very much for your time. Let me begin by asking you to give us a brief description of what AfCFTA is and its practical impacts in the participating economies. Mark-Anthony Johnson: Thank you, Fabio. Always happy to talk about Africa. But first, congratulations are due to you and FurtherAfrica on your excellent and informative platform. I am delighted to have the opportunity to...

In Summary Revenue collection by the Domestic Taxes Department experienced a growth of four to Sh1.092 trillion. A decline in employment rate saw a slow growth on Pay As You Earn (PAYE) taxes which registered a paltry two per cent increase. Reports a performance rate of 97.9% Kenya Revenue Authority (KRA) has recorded a slight 1.7 per cent jump in revenue collection for the financial year 2019/20 despite a struggling economy ravaged by the Covid-19 pandemic. Revenue collected between July 2019 and June 2020 reached a new high of Sh1.607 trillion, compared to Sh1.580 trillion collected in the same period in 2018/19. This represents a performance rate of 97.9 per cent compared to the last financial year. “The performance is favourable and matches the prevailing economic indicators, especially the projected GDP growth of between 1.5 per cent and 2.3 per cent in 2020,” commissioner general Githii Mburu said in a statement yesterday. In addition, KRA collected other monies including Agency Fees amounting to Sh97.1 billion. This is revenue collected on behalf of other government agencies mainly at the ports of entry, which includes road maintenance levy, airport revenue, aviation revenue, and petroleum development fund. The exchequer revenue grew by 2.2 per cent with a collection of Sh1.510 trillion compared to Sh1.477 trillion collected in 2018/19, translating to a performance rate of 98.6 per cent against the target. Revenue collection by the Domestic Taxes Department experienced growth of four per cent in FY 2019/20, down from average growth of 13.9 per cent recorded in the period July...

The East African Community is a regional economic bloc comprising Uganda, Kenya, Tanzania, Rwanda, Burundi, and South Sudan. It is important to note that trade within the East African Community (EAC) has not remained the same since the outbreak of coronavirus in the region. Covid-19 is a global pandemic that is suppressing and damaging the social, economic, and political agenda of the EAC. It is sabotaging, frustrating, and obstructing trade within the region. It is greatly affecting trade within the EAC in numerous ways. From within the member states, some trade sectors like those dealing in clothes have been barred from trading. This means that some people are out of business and, therefore, the levels of unemployment have accelerated. Additionally, some traders who earn from hand-to-mouth have run out of capital and, therefore, they are unable to trade again even if the lockdown is lifted since they have used the capital they had to take care of themselves. It has enumerated delay in the clearance of the goods. Currently, Covid-19 has led to the introduction measures meant to prevent the spread of the virus, including testing and waiting for the test results for truck drivers hence raising the non-tariff barriers. Covid 19 is making transportation of goods difficult. The common mode of transport within the East African region has been road transport, yet statistics show that in Uganda, most truck drivers from Kenya and Tanzania are the ones bringing Covid-19 to Uganda. The pandemic is weakening the progress of trade...

What you need to know: Kenya has been focusing mainly on agricultural exports, following up with the Integrated National Export Development and Promotion Strategy created by President Uhuru Kenyatta in July 2018. As economies around the world shrink, Kenya continues to work on reducing its trade deficits with China. By securing a larger market for our exports to the East Asian Country, we will reduce the gap between how much China exports to Kenya versus the opposite, thereby strengthening our economy. Kenya has been focusing mainly on agricultural exports, following up with the Integrated National Export Development and Promotion Strategy created by President Uhuru Kenyatta in July 2018. By improving regulations on phytosanitary (concerning the health of plants) regulations, Kenya should be able to increase the volume of produce we send not only to China, but also to our trade partners all over the world. President Kenyatta and his Chinese counterpart Xi Jinping already signed an agreement in April 2019 to allow Kenya to export Hass avocados to China. This allowed many Kenyan avocado farmers to produce more than could be consumed by the local market alone. Following this policy, Kenya has been able to increase the amount of exported goods by Sh2 billion during the 2017-18 period, and this number keeps on increasing. If Kenya’s renewed focus on exporting more produce to China is successful, its trade deficit will be bridged. What the administration is essentially trying to do is guarantee a predictable export market through trade expansion. This...

Rwanda-DR Congo border. Rwanda is the largest exporter of textiles from the region to the DR Congo. / File. Rwanda is the largest exporter of textiles from the region to the DR Congo but Rwandan SMEs in this line of business ought to explore this business line for expansion and diversification. The study titled “The Opportunities for trade in the Democratic Republic of Congo” was launched on Wednesday, August 19, by the East African Business Council in collaboration with GIZ It reveals trade opportunities that SMEs in the region can tap into. One of the DR Congo’s most sought after textiles products is plain woven fabrics of cotton containing more than 85 per cent cotton by weight and weighing between 100 to 200 grams. “The size of this market has risen to $ 23.9 million, and is dominated by the Netherlands, India and Belgium. The market for sacks and bags for packing of goods of man-made materials, excluding polyethylene is worth exploring for SMEs in this line of business,” reads a section of the report. The report has data showing the potential for trade in textile exports from Rwanda to the DR Congo. It also lists the most-sought after products which includes clothing accessories, blankets and travelling rugs, household linen and articles. Others are sacks and bags, for the packing of goods, of polyethylene or polypropylene strips or the like. Theoneste Ntagengerwa, the Rwanda Private Sector Federation (PSF) Spokesperson, on Wednesday told The New Times that effort is being made...

NAIROBI, Kenya, Aug 19 – The East African Community has been urged to fast track the admission of the Democratic Republic of Congo into the regional bloc noting that it sources for goods that the EAC can ably supply, from very distant markets.   A study conducted by the East African Business Council reveals that the value of goods imported in the DRC in 2019, stood at USD 6.6 billion. The study reveals China is the top exporter to the country commanding a share of 31.2 percent, followed by South Africa at 15.8 percent and Zambia 13 percent. However, EAC exports to the DRC in 2018, stood at USD 855.4 million, representing 11.5 percent of total DRC imports. East African Business Council CEO Peter Mathuki says DRC will benefit from the larger EAC Common Market and Common External Tariff framework. He added that the country will also, have access to seaports of Mombasa and Dar es Salaam at competitive rates. “DRC will benefit from the larger EAC Common Market and Common External Tariff framework. It will also have access to the seaports of Mombasa and Dar es Salaam at competitive rates. Their huge population of 81 million people also provides a vast opportunity for SMEs from the EAC region,” Mathuki said. The study finds that non-tariff barriers in DRC have hampered business translating to high cost of doing business in the country. “EABC being the apex body for the private sector in the region will play a critical role in advocating for ease...