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Huge Boost For AfCFTA As Nigeria Nears Ratification

The Africa Continental Free Trade Area (AfCFTA) could receive a big boost before it is officially launched in July this year – following news that Nigeria – the continent’s economic power house, is reportedly finalizing the process to ratify the agreement. In March last year, fifty African countries signed the historic Africa Continental Free Trade Area (AfCFTA) – an agreement that will create a single African market. Before the event, Nigeria had issued a statement saying it remained skeptical to endorse its signature. This attracted debate that the agreement would not be successful without Nigeria. However, after a post-launch press briefing, Rwanda’s President Paul Kagame insisted that Nigeria is “supportive” of AfCFTA. In the context, he said, “I think it’s a question of time and how fast they (Nigeria) address things they feel they should address before they make full pronouncement as to what position they ultimately want vis-avis this historic event we have witnessed today,” Kagame told the media in Kigali shortly after signing the agreement. On Monday, June 17, 2019, Dr. Abdu Mukhtar, the Director of Industrial and Trade Development at the African Development Bank – the key financier of mega projects on the continent, announced that Nigeria is on its way to join the market. “African Development Bank has expressed optimism that Nigeria, the largest country on the continent will soon ratify the African Continental Free Trade Area (AfCFTA) agreement,” AfCFTA quoted Dr. Abdu Mukhtar on its Twitter handle. Celebrations are expected to fill up Niamey –...

AU, EAC, ECOWAS meet to accelerate Free Movement in Africa process

Legislators from the East African Legislative Assembly (EALA) of the East African Community (EAC), and the Economic Community of West African States (ECOWAS) Parliament, have convened in Nairobi to deliberate on the acceleration of the ratification process and entry into force of the Protocol relating to the free movement of persons in Africa before the end of year 2020. The three-day meeting looked into the harmonization and alignment of the EAC and ECOWAS free movement frameworks with the “African Union Protocol to the Treaty Establishing the African Economic Community relating to Free Movement of Persons: Right of Residence and Right of Establishment” and its implementation roadmap. The legislators will also develop a plan to popularize the issuance of the African Passport, as a catalyst for the realization of free movement in Africa. Facilitated by the African Union Commission (AUC) Department of Political Affairs, the meeting is expected to develop a comprehensive ratification roadmap of the protocol and provide recommendations for the harmonization of the EAC and ECOWAS regional norms and policies on free movement of persons, as well as the border security management, aligned with the AU Protocol on Free Movement. The protocol needs fifteen (15) ratifications to come into force as a reflection of the commitment of African Union Member States to promote economic, social and cultural development, and the integration of African economies through seamless borders. AUC Head of Humanitarian, Refugees and Displaced Persons Division, Amb. Olabisi Dare, while urging the legislators to champion the ratification of the...

Israel opens trade attaché unit in Kenya

Israel Deputy Ambassador to Kenya Eyal David says that the unit, located at the Embassy of Israel in Kenya, is part of ongoing efforts by his government to enhance relations between Israel and Africa. The Kenya – Israel bilateral relations are set to improve especially in the sharing of experiences, ideas, business and practices in several sectors after Israel opened a commercial regional office in Nairobi. Israel’s success in agriculture despite being majorly a desert is one of the areas that Kenya is set to explore. Speaking at Zetech University in Ruiru, Israel deputy ambassador to Kenya Eyal David said his government remains committed to strengthen trade relations between the two countries. Other areas the two countries are exploring to improve relations include the resumption of direct flights between Kenya and Israel, plans which were temporarily suspended on security grounds. Israel has two other trade attaché units in the continent, namely in South Africa and Ghana with Kenya having the latest unit. Source: KBC

Kenya, South Sudan seek better trade relations

Kenya and South Sudan have said they will continue seeking ways to strengthen trade relations between them.Foreign Affairs Cabinet Secretary Monica Juma yesterday said they had planned a series of talks ahead of a visit by President Salva Kiir to Nairobi.Dr Juma said Kenya would be seeking to benefit from South Sudan's wealth as a form of payment for her peacekeeping efforts in the country.Juma said among other things, they planned to launch the first ever joint commission for cooperation with Juba. counterpart, Regional Affairs Minister Nhial Deng Nhial, in Nairobi.Juma said also to be discussed during President Kiir's visit would be review of security and management of the border between the two countries.The two delegations will also discuss how to fast-track implementation of the peace process in South Sudan and how Kenya could cooperate on regional infrastructure development.Deng said South Sudan was keen on strengthening “our relationship” as neighbours."We'll also discuss various bilateral agreements and explore ways of working together in the region," Deng said. “As always, we are grateful for Kenya's contribution to South Sudan, key among them peace and security," he said.Also expected to feature in the talks is the ease of movement of persons and goods between the two countries.Since joining the East Africa Community in April 2016, the country has been keen to improve relations with countries in the bloc. Source: Standard Digital

Rwanda: Government pumps $220mln in infrastructure and transport projects

The government of Rwanda is planning to invest about $220 million to improve infrastructure and transport facilities in the country, The New Times reports. New projects cover, according to finance minister Uzziel Ndagijimana (photo), construction, rehabilitation and extension work on various roads in many regions. Particularly, projects target the construction of the Pindura-Bweyeye highway in the Rusizi district ($5.8 million) and the Satinsyi-Rubagabaga bridge in the Ngororero district ($3.6 million). Another $27 million will be used to rationalize public transport in Kigali and build new roads to facilitate the supply of agricultural products to national markets. Other projects include the purchase of boats and construction of ports on Lake Kivu ($9.4 million) to improve river transport. Let’s note that this investment program is part of the 2019/2020 budget, amounting $3 billion+, announced a few days ago. Most investments are directed to infrastructure projects which capture $603.7 million, ahead of education with $339.8 million and health with $257.2 million. Source: Ecofin Agency

Dar port impresses Congolese

CONGOLESE importers and exporters who use the Dar es Salaam Port are expectant of bright future in their businesses, thanks to last week’s visit by their President Felix Tshisekedi. During his two-day state visit, President Tshisekedi (pictured) had talks with his host, President John Magufuli, and the two leaders put emphasis on strengthening economic ties between the two countries, considering that the Democratic Republic of Congo (DRC) remains the major user of Dar es Salaam Port. Through their association— Business Congolese International (BCI)—the traders have expressed optimism on DRC joining the East African Community (EAC), the issue that emerged during President Tshisekedi visit. “We are happy that our country’s request to join the EAC bloc emerged and was discussed… this will ease doing business in the East African countries,” BCI Vice President John Kapeta told the ‘Daily News’ in Dar es Salaam over the weekend. He cited some of the current t r a d e bar- riers that Congolese traders encounter as payment of road toll and visa because DRC is not EAC member. “We will therefore save in transport costs if our country becomes EAC member,” he argued, adding that Congolese traders will even increase the number of routes unlike currently whereby traders have to travel from DR Congo to Tanzania only. Mr Kapeta further supported Tanzania’s plan to introduce Air Tanzania Company Limited (ATCL) flights to DR Congo, saying the move will relieve Congolese traders with the burden of road transport, which is time consuming. BCI President...

EAC Banking On Railway Transport To Improve Regional Trade

East Africa Community (EAC) States are optimistic that the EAC Standard Gauge Railway once completed in different states, will enhance trading between the members as well as movement of goods and services. Development of railway lines within EAC has been underlined as a means for enhancement of connectivity and linkages between the ports and the inlands to enable cross border trade and heavy industrial development harnessed by the cheaper means of transport. According to the managing director of Kenya Railways, Atanas Maina, the development of the railway transport is one way through which EAC countries can attain middle income status. “The development of standard gauge railway is supposed to provide a transformative land transport infrastructure that will help the region move towards the middle income status” he states Kenya has been at the forefront in implementation of the Northern Corridor Standard Gauge Railway, having completed their part from Mombasa to Nairobi in 2018. Uganda and Rwanda are yet to start on the planned 1,500km-long railway from Mombasa to Kigali Although there have been delays in the implementation of the project, officials at the EAC council are impressed with the EAC states commitment to infrastructure development According to Libe’rat Mfumukeko, the Secretary General EAC, building the SGR remains a priority for all EAC and will be implemented fully as planned “Over the last three to four, most EAC countries have doubled their budgets for Infrastructure Development. This is a very good move because it is through infrastructure that we can push...

Cargo handled by Kenya’s Mombasa port up 6% in eleven months to May

Kenya’s main port of Mombasa handled 6.3% more cargo in the last eleven months thanks to higher efficiency, a surge in imports and greater capacity after the port was expanded, the facility’s management said on Monday. The rise in cargoes came despite uncertainty after 75 tax agency staff including customs workers were arrested last month over allegations of fraudulent clearance of merchandise among other charges. Mombasa, a gateway to east and central Africa, processes imports and exports for Kenya and several other countries including Uganda, Rwanda, Democratic Republic of Congo, South Sudan and Burundi. Cargo handled by the port was up 6.3% to 29.8 million tonnes in the eleven months ending May this year compared to the previous period, data released by the port’s management showed. “The positive performance was mainly driven by increased handling (of) cargo for Uganda, D.R.C and South Sudan,” Daniel Manduku, the port’s managing director, said in a report. Container traffic increased by 13.1% to 1.27 million Twenty feet equivalent units (TEUS) over the eleven-month period while cargo destined for other countries was up 10%. Mombasa port underwent expansion works in 2012 that included construction of a new container terminal and dredging to enable bigger vessels access to the port. The first phase of the expansion project partially-financed by Japan was inaugurated in 2016. Kenya is also building a second port in Lamu, north of Mombasa, with a capacity of 23 million tonnes per year. (Editing by Elias Biryabarema, editing by Deepa Babingon) Source: Reuters

East Africa: DR Congo Entry Into EAC Will Be a Game Changer

The Democratic Republic of Congo has applied to join the East African Community in a move that could potentially expand the boundaries of the trading bloc to the Atlantic coast of Africa. The application comes following months of talks between DR Congo President Felix Tshisekedi and Rwanda President Paul Kagame, who chairs the East African Community. Sources familiar with the diplomatic talks that preceded the formal application say most EAC member states are enthusiastic about DR Congo's membership. The DRC officially communicated its intention to join the EAC in a letter to President Kagame dated June 8. Kinshasa said its desire to join the bloc was informed by its increasing trade ties with the region. In response, President Kagame directed the EAC Secretariat to table DR Congo's application for discussion at the next Heads of State Summit in November. If it meets the admission requirements, members will vote on its admission. GAME CHANGER The potential membership of the Central African country is being viewed as a game-changer, given its natural resources wealth and a huge consumer market of 81 million people. It is the world's biggest producer of cobalt, a major component in the manufacture of rechargeable batteries for electric vehicles, and Africa's main copper producer. It also a major producer of gold, diamonds, uranium, coltan, oil and other precious metals, making it one of the most resource-rich countries in the world. DR Congo is also host to the world's second-longest river, the Congo, vast swathes of fertile soil, potentially...

Operationalizing the AfCFTA at the 15th CAADP Partnership

the Alliance for Commodity Trade in East and Southern Africa (ACTESA), German Society for International Corporation (GIZ) and the Kenya Agribusiness and Agroindustry Alliance (KAAA), at the 15th CAADP Partnership Platform Meeting in Nairobi, Kenya. CABI’s Dr George Oduor, Global Director Value Chains and Trade is leading the side event – entitled ‘Operationalizing AfCFTA – Partnerships and elimination of barriers to trade in Africa’ with a view to addressing some of the key challenges in agricultural value chains. Representatives from participating organizations, which also include various Ministries of Agriculture, FAO, AGRA, Common Market for East and Southern Africa, Economic Commission of West African States, Trademark East Africa and the East African Community (EAC), are taking part in the session which presents African countries and their development and technical partners with the opportunity to reflect together, share best practices and identify strategies and policies to foster integration, enhanced market access and intra-regional trade in agricultural commodities and services. “The agricultural market is growing and is currently estimated at more than US $3 trillion – about 70 percent of this comes from smallholder farmers, who are particularly vulnerable to production challenges including climate change”, said Dr Oduor. “Some of the key questions and talking points which will form the basis of the discussion will look at ways in which we can promote and attain sustainable and inclusive socio-economic development, gender equality and structural transformation.” Dr Oduor added that international trade and travel have expanded significantly in recent decades – increasing the rate...