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AU Looking To Digital Technology To Save Africa Free Trade Area

NAIROBI, Kenya, Aug 15 – The Africa Union is betting on top digital solutions among them PanaBios – a bio-surveillance and bio-screening suite -, to ensure continuity of business in the region, in the advent of the coronavirus pandemic. The technology maps COVID-19 hotspots throughout the continent and builds risk models that create a base for standardized protocols to prevent transmission of the disease. Using similar risk models tied to testing across the continent, PanaBIOS makes it possible to verify the health status of international travelers across borders, at a time when air travel has resumed. The technology will see travelers use test results from one country to satisfy port clearance requirements in another country through their personal PanaBios app, which is already available on the PanaBIOS website. The technology will thus simultaneously help ease port congestion (by obviating the need for testing on arrival) and prevent importation of new Covid-19 cases at ports of entry. Furthermore, it provides the means to track vaccine administration and also adverse reactions, in a bid for transparency and confidence rebuilding in the wake of growing paranoia about vaccines. This will however only be important when vaccines for Covid-19 are widely available. Of more immediate use is the potential of the platform’s machine learning algorithms to serve as rapid screening measures to help with school reopening, workplace safety and cross-border travel through the meshing of testing-related data and geolocation intelligence. The move comes as African countries are getting ready to reopen their borders and...

AfCFTA targeting first trade deal in 2021, African Union says

The African Union announced that the first commercial deal under the African Continental Free Trade Area (AfCFTA) is expected to take place on January 1, 2021 as outstanding discussions will take place online. In April, the Secretary General of the AfCFTA Wamkele Mene said implementation of the free trade agreement will not be able to commence on July 1 as planned due to the disruptions occasioned by the coronavirus pandemic. The AU maintains that the AfCFTA will offer Africa an opportunity to reconfigure its supply chains, reduce reliance on others and speed up the establishment of regional value chains which will boost intra-Africa trade. A report by the World Bank said the successful implementation of AfCFTA would mitigate negative COVID-19 effects on economic growth by boosting regional trade and reducing trade costs. It added that most of the AfCFTA’s income gains are likely to come by cutting red tape and simplifying customs procedures. Furthermore, it said, the AfCFTA could also help increase resiliency to future economic shocks by replacing regional agreements, streamlining border procedures and prioritizing trade reforms. According to the United Nations Economic Commission for Africa, the AfCFTA is, by the number of participating countries, the largest trade agreement since the formation of the World Trade Organisation. Its implementation will form a $3.4 trillion economic bloc with 1.3 billion people across the continent. Read the original article Disclaimer: The opinions expressed herein are the author's and not necessarily those of TradeMark Africa.

Uganda to Benefit from UK’s $6.3m Program Supporting Export Chains in Developing Countries

The UK Government has announced it will help British businesses strengthen their global supply chains by supporting workers in Uganda, Kenya, Ethiopia, Tanzania, Rwanda and Ghana during the coronavirus pandemic. The facility, made up of £4.85 million (Shs 23bn) UK aid and £2 million (Shs 9.5bn) from businesses, will focus primarily on supply chains and workers in Uganda, Myanmar, Bangladesh, Kenya, Ethiopia, Tanzania, Rwanda and Ghana. These countries provide huge proportions of the world’s food, flowers and clothes. Ghana alone produces a quarter of the world’s cocoa and Bangladesh is the world’s second largest garment exporter. The programme will help UK high street businesses, including Marks & Spencer, Sainsbury’s, Tesco, Morrisons, Co-op and Waitrose, to strengthen their global supply chains by supporting workers in developing countries during the coronavirus pandemic. The UK imports 20% of its food and drink from developing countries. The coronavirus pandemic has put many of these supply chains at risk as factories and farms worldwide have been forced to close temporarily. The new Vulnerable Supply Chains Facility will help to ensure the steady supply of products like vegetables, coffee and clothes to the UK high street. The programme will strengthen community health care systems and deliver targeted health messaging in factories to help employees keep themselves and their families safe. International Development Secretary Anne-Marie Trevelyan said: “We want to ensure people in Britain can continue to buy affordable, high quality goods from around the world”. “This new fund will strengthen vital supply chains for UK consumers,...

Facilitating cross-border trade through coordinated Africa response

The Regional Integration and Trade Division at United Nations Economic Commission for Africa released a report entitled “Facilitating cross-border trade through a coordinated African response to COVID-19”. The report provides a critical assessment of existing border restrictions and regulations, with a view to providing guidance on how to strike an appropriate balance between curbing the long term spread of the virus and facilitating emergency and essential trade, according to United Nations Economic Commission for Africa. Stephen Karingi, Director of Regional Integration and Trade Division, commenting on the report, noted that COVID-19 may become the new normal for some time, forcing African Governments to adapt and innovate in order to facilitate new safe ways of conducting cross-border trade. Maintaining trade flows as much as possible during the pandemic will be crucial in providing access to essential food and medical items and in limiting negative impacts on jobs and poverty. Following the COVID-19 outbreak, nearly all African countries have imposed various degrees of restrictions on cross-border movement of goods and people, including suspension of international flights, quarantine requirements for entrants, and closures of land and maritime borders. Under a set of strict regulations, these closures target reducing movement of people while allowing exemptions for the movement of emergency and essential freight supplies. Such regulations typically cover mandatory testing, sanitizing trucks, limiting the numbers of crew members, and designating transit resting areas. These restrictions and regulations have helped in the continent’s COVID-19 battle, but they have also had negative impacts on cross-border trade...

Gov’t to build hospitals at border points

Government has embarked on a campaign to build modern medical infrastructure at the border points of Busia, Malaba, Mutukula and Elegu. The project which will require local authorities and members of the public to offer land for construction of the facilities, is aimed at improving health services for local and foreigners who use the border points. This was revealed by Diana Atwine the Permanent Secretary to the ministry of Read the original article Disclaimer: The opinions expressed herein are the author's and not necessarily those of TradeMark Africa.

Rwanda to replace all its passports with East African e-permits

Summary The move means the country will nullify all its single-nation passports. Holders of the Rwandan passport were given a two-year grace period to replace their passports with East Africa e-passports. Rwanda's Immigration department on Thursday announced it will replace all passports with East African e-passports. "All passports issued before June 27, 2019, will be phased out, and replaced by the Rwanda East African electronic passport after June 27, 2021," the Directorate General of Immigration and Emigration said in a statement, meaning it will nullify all its single-nation passports. Holders of the Rwandan passport were given a two-year grace period to replace their travel documents with East African e-passports, when the country began issuing them in line with the country's commitment to promote regional integration with EAC partner states from June 2019. The statement also urged the public not to wait until the expiry date to apply for new passports, adding that applicants are required to apply for them through the online platform Irembo, which enables the public to access government services. The e-passport, which is also used in other EAC partner countries including Uganda, Kenya and Tanzania, grants its holders access to more countries without stringent visa requirements, according to the statement. EAC Heads of State launched the East African e-passport and directed the commencement of its issuance during the 17th ordinary summit in March 2016 in Arusha, Tanzania. Read the original article Disclaimer: The opinions expressed herein are the author's and not necessarily those of TradeMark Africa.

EAC budget prioritizes Single Customs Territory, infrastructure

During the next financial year, the East African Community will focus on Consolidation of the Single Customs Territory (SCT) to cover all imports and intra-EAC traded goods, including agricultural and other widely consumed products. After much back and forth that caused enormous delay, the East African Community (EAC) has passed a 97.6m US dollars budget for the next financial year. Of the total amount, 55.6m US dollars will come from EAC partner states, while development partners will contribute 41.9m US dollars. The budget reflects the region’s top priority areas which can be shortlisted to about seven areas. During the next financial year, the community will focus on Consolidation of the Single Customs Territory (SCT) to cover all imports and intra-EAC traded goods, including agricultural and other widely consumed products. It will also cover infrastructure development including the enhancement of free movement of all factors of production as declared under the Common Market and Monetary Union Protocols. Another focus area is the enhancement of regional industrial development through investment in key priority sectors like skills development, technological advancement and innovation to stimulate economic development. For the current fiscal year,  the Council also went on to approve expenditure budget estimates of some 2.7m US dollars for the Civil Aviation Safety and Security Oversight Agency (CASSOA) in addition to partner states contributions through their own Civil Aviation Authorities for the 2020/2021 budget year. Each member is expected to chip in 458,910 US dollars. “Other key priority areas in the budget include improvement of...

FinTech programme launched to build UK-Africa trade

14 August 2020: The Tech for Growth programme, launched by the Department for International Trade this week, aims to build trading opportunities between the UK and emerging economies. The UK Department for International Trade (DIT)’s new Tech for Growth programme will build future trading opportunities between the UK and emerging economies through the use of technology to expand access to financial services, the government announced this week. The programme will initially be piloted across Africa for a year. Access to financial services remains low across the continent; aound 60% of adults in sub-Saharan African still do not have access to traditional means of financial services, including banking and insurance. Mobile phone use has risen to over 40%, and the DIT believes that technology can play an increasing role in expanding access to financial services and other sectors. In that first year, the programme aims to establish a UK-Africa ‘Tech for Growth’ community, providing more access to financial services in underserved regions. It will include events across the UK and Africa to promote partnerships between British and African technology and financial services companies. It also looks to establish UK-Africa FinTech trade by highlighting commercial opportunities and addressing any hurdles that are holding back growth in that area. The DIT wants to establish close, collaborative relationships with African governments and regulators to help stimulate the growth of the tech sector across the continent. “Diversifying and increasing trade and investment in sectors such as tech will be crucial for economic recovery from Coronavirus,...

WTO Issues New Report On How COVID-19 Crisis May Push Up Trade Costs

The WTO Secretariat has published a new information note warning of possible increases to trade costs due to COVID-19 disruptions. The note examines the pandemic’s impact on key components of trade costs, particularly those relating to travel and transport, trade policy, uncertainty, and identifies areas where higher costs may persist even after the pandemic is contained. The note estimates that travel and transport costs account for as much as a third of trade costs depending on the sector. Pandemic-related travel restrictions are therefore likely to affect trade costs for as long as they remain in place. For example, global air cargo capacity shrank by 24.6 per cent in March 2020, as passenger flights account for around half of air cargo volumes. The resulting increase in air freight prices is likely to subside only with a rebound in passenger transport, according to the report. While sea and land transport have not faced comparable shocks, maritime transport has seen a decrease in numbers of sailings, while international land transport has been affected by border closures, sanitary measures and detours. Moreover, business travel, which is important for maintaining trading relationships and managing global value chains, in addition to being a significant economic activity in its own right, is being disrupted. The quality of information and communications technology (ICT) infrastructure and digital preparedness will be important in determining how well economies can cope. Trade policy barriers and regulatory differences are estimated to account for at least 10 per cent of trade costs in all...

Exports rebound after three months of decline

In Summary Mr John Lwere, the Uganda Export Promotion Board trade and information executive, said the growing export earnings could be re-exports from DR Congo since the country’s deposits are still little. Export earnings have rebounded after three months of recording a decline. Earning, mainly from coffee, fish, flowers and cement, some of which had experienced some volatility, recovered during the period ended June to fetch Uganda growth of at least Shs172b. According to data from Bank of Uganda, Uganda exported goods worth $337m (Shs1.2 trillion) up from $290m (Shs1 trillion) in May. The earnings, which grew by 16.6 per cent could have been influenced by the easing of the lockdown that had been effected in the three months running from late March to June. During the period, Middle East and Comesa, came out as the leading export destinations with some minimal exports recorded in the previous traditional market destinations such the European Union and US. The Bank of Uganda report shows that gold, coffee, fish and fish products, sugar, tea and maize were some of the most exported commodities in the period. Although Uganda is not known to have large deposits of gold, it has for almost two years now been the country’s largest foreign exchange earner, fetching a total of $161.3m (Shs596b) up from $126.3m (Shs467b) in May. A total of 3,012 kilogrammes of gold, according to the data, were exported out of the country up from 2,470 kilogrammes in May. Most of Uganda’s gold is exported to...