The UN Economic Commission for Africa (ECA) on Monday called for concerted efforts to exploit the transformative economic potential of the African Continental Free Trade Area (AfCFTA) Agreement. The urgent call was made by ECA's Deputy Executive Secretary Giovanie Biha during a two-day high-level ministerial meeting concluded on Monday at the headquarters of the African Union (AU) in Ethiopia's capital Addis Ababa. "AfCFTA legally entered into force but for it to deliver its transformative economic potential, the signatory countries - and the few countries that have not yet signed - must rapidly join and ratify the Agreement to ensure that the continent moves forward together as one entity," ECA's deputy chief said. According to Biha, issues related to the scheduling of tariff offers and finalization of the rules of origin are among the vital imperatives towards the successful implementation of the continental free trade pact. "Difficult decisions must yet to be made and compromises sought, as we transform the AFCFTA legal text into an operable instrument," Biha told African trade ministers. Biha also stressed that as the continental free trade pact is set to start operationalisation during the upcoming AU summit, which is slted for next month in Niamey, Niger, "progress must be made with the AfCFTA implementation roadmap." AU Commissioner for Trade and Industry Albert Muchanga also said that "the coming into existence of the AfCFTA is a continuation of a long journey that started with the establishment of regional economic communities as building blocks of the African Economic...

This week began with good news for regional business persons, especially cross-border traders. The first news was an announcement by the Tanzanian High Commissioner to Rwanda that his country had at last heard complaints raised by businessmen operating in his country. The most pressing one was the removal of unnecessary non-tariff barriers such as the red tape involved for foreigners when opening a bank account. The High Commissioner promised that by the end of the year, all those barriers, including others that may be encountered along the way, will be no more. Some of the barriers were put in place as trade protective measures which have no place in these days of globalization and easing of trade barriers. One other positive outcome this week was the reopening of Gatuna border post for heavy commercial vehicles. The vehicles had been barred from using the border so as not to disrupt construction of the One-Stop Border Post. Work on the Rwandan part is complete unlike on the Ugandan side which is not expected to be completed anytime soon. The temporary disruption at the border had caused a lot of chatter, with many Ugandan officials going on the record to claim that Rwanda had closed the border. They were creating a storm in a teacup because, the other two entry points, Kagitumba and Cyanika were operational. So those who have been seeking to milk political points out of the Gatuna saga had better look elsewhere. What countries need to do is to honour...

The Southern African Customs Union (SACU) last week concluded bilateral tariff negotiations with the East African Community (EAC) which will enhance intra-regional trade between the respective countries. According to SACU Secretariat, the successful conclusion of these talks means that the SACU-EAC private sector will have access to new and dynamic markets for exports as well as new sources of inputs for domestic production processes. These negotiations are part of the Tripartite Free Trade Area, which was launched in June 2015 with the aim to establish a single market for 27 African countries with a combined population of about 700 million people (57% of Africa’s population), and Gross Domestic Product above US$1.4 trillion. “The conclusion of the SACU-EAC negotiations marks a significant step towards realising the benefits of the TFTA. The main aim of the SACU-EAC market access negotiations has always been to provide commercially meaningful market access for the private sector in the two regions,” the SACU Secretariat added.   Source Nambia Economist

DAR ES SALAAM Port now can load or offload over 600 containers from a vessel within 24 hours, surpassing the 330 container target. The containers terminal department had set the 330 container target, within three shifts but now can handle over 600 containers, reducing the time of vessels to stay at the port. The performance has ultimately reduced costs of cargo vessels docking at the port, thanks to purchase of sophisticated machineries. Principal Operations Officer for the Container Terminal at the port John Maghibo said in an interview yesterday that the enhanced performance has helped to attract ships that carry many containers. In the past, the ships were avoiding the port over fears of incurring more costs due to overstaying. “We used to receive vessels carrying 200 or 300 contain- ers only, but now we receive ships with capacity of carrying between 800 and 1,000 containers,” Mr Maghibo stated, noting that in the past the department could hardly load or offload 200 containers. He attributed the achievement to procurement of new machineries, naming gottwards, reach stackers and empty handlers as some of them. “For the vessel carrying, for instance between 800 and 1000 containers, we can offload or load it in just two days,” he said, elaborating that within 24 hours the department can handle 600 containers—200 containers in each of the three shifts. He further said the 24-hour working system at the port has as well helped to improve performance. Working round-the-clock was among the areas which were improved...

Common Market for Eastern and Southern Africa (COMESA) has launched a partnership with global technology firm mPedigree to improve the agro-inputs protection technology among its members. The partnership, launched under the COMESA Alliance for Commodity Trade in Eastern and Southern Africa (ACTESA) Seed programme, will help the bloc to eliminate faking and counterfeiting of agro-inputs materials like seeds and fertiliser among its member states. This move promises a deeper penetration into the supply chains and access to new ecosystem support for Kenya, where the technology is already in use. “The system will assist the region to not only eliminate cases of fake agro-inputs such as seeds, fertilisers and crop protection products, but also boost trade in quality and improved certified seed,” said Serlom Branttie, mPedigree Global Strategy Director. Fraudulent trade in fake agro-inputs has greatly contributed to the poor performance of over 80 million small-scale farmers and to food insecurity in the region. Source MediaMax

Tanzanian President John Magufuli on Friday pointed out a number of challenges that disrupted the business environment in the east African nation and vowed to address them. Magufuli criticized state-owned institutions for creating unfavorable business climate. The president was addressing prominent businessmen in the commercial capital Dar es Salaam in a meeting broadcast live by state-owned television Tanzania Broadcasting Corporation (TBC). He said the existence of excessively complicated administrative procedures in government was one of the factors that discouraged sustainable growth of business activities. He told the business people from all districts and regions across the country that the current bureaucracy in the government made it difficult for the business environment to flourish in the country. Magufuli said the tax burden was another challenge particularly in the tourism sector. The head of state condemned the tendency of some local government authorities of introducing new taxes without prior consultations with the central government. The president admitted that despite the government's efforts to end corruption, there were still some government officials who embraced the malpractice. "I am aware there are some government officials at the Tanzania Revenue Authority and Tanzania Ports Authority and other authorities who demand and receive bribes from traders," he told the businessmen at State House. At the same time, Magufuli admitted that the government has for many years failed to put in place a proper mechanism to empower small-scale entrepreneurs. However, Magufuli reassured them of his government's commitment to empower small and medium-sized enterprises (SMEs). "The SMEs contribute...

“As EAC partner states unveils their budgets for the 2019/2020 fiscal year next week, governments should consider improving transport infrastructures, energy and access to credit to ease doing business in the EAC,” said a statement by EABC that was signed by Peter Mathuki, the executive director. The council said that to enhance revenue collection, EAC partner states budgets should focus more on efficient and effective service delivery for growth and expansion of businesses in the EAC and beyond. The EABC also urged adequate budgetary allocation of resources for the implementation and monitoring of the EAC Common Market Protocol and support to national implementation committees and related activities. “The EAC partner states’ budgets for the financial year 2019/2020 should prioritize achieving the vision of the EAC industrialization strategy which includes being globally competitive, environment-friendly and ensure a sustainable industrial sector,” the statement intoned. The budgets should visualize capacity to significantly improving the living standards of the people of East Africa by 2032 and the objective of 5th EAC development strategy to building a firm foundation for transforming the EAC into a stable, competitive and sustainable lower middle income region by 2021. EABC suggested that partner states budgets for the coming fiscal year should address the challenges of EAC regional integration such as high costs of doing business and the cost of borrowing, allocate budget funds for implementation and monitoring of the Common Market and Customs Union protocols and increasing intra-EAC trade through elimination of non-tariff barriers. The budgets should also focus...

In trade, time is money. And African businesses and consumers could save billions if delays at borders are reduced. To help make this possible, one of the continent’s free trade areas – the Common Market for Eastern and Southern Africa (COMESA) – has recently enlisted UNCTAD to help make it easier and faster to move goods in the region. The heads of the two organizations met on 24 May at COMESA’s headquarters in Lusaka, Zambia, to seal the €3 million (US$3.34 million) deal, which builds on UNCTAD’s experience in helping countries on the continent to facilitate trade. In landlocked Rwanda, for example, UNCTAD’s automated customs data system, known as ASYCUDA, slashed the time needed to clear goods at the border from 11 days in 2010 to less than 2 days in 2014. This cut the cost of clearance from about US$35 to US$5. “[We] recognize the role UNCTAD plays in promoting trade facilitation, its experience and capacity in modernizing customs administrations, and the intellectual property of ASYCUDA,” COMESA Secretary-General Chileshe Kapwepwe said. “I am confident that UNCTAD will deliver the expected outcomes as enshrined in the co-delegation agreement,” she said. UNCTAD Secretary-General Mukhisa Kituyi added that the benefits of the agreement will extend beyond COMESA to all corners of the continent. This is because the success of the African Continental Free Trade Area (AfCFTA), which entered into force on 30 May, depends on the health of the continent’s regional economic communities – and COMESA is the largest in terms of members....

Uganda will invest $205 million in restoring an old railway line linking Kampala to Malaba on the Kenyan border following delays in securing funding for the standard gauge railway. The upgraded meter gauge railway line is expected to boost monthly freight capacity to 120,000 metric tonnes from the current 20,000 tonnes by 2026, Stanley Sendegeya, Uganda Railways Corporation’s chief financial officer, said in an interview. “We keep turning down customers because with the little money from government, amounting to $2 million annually, we can’t handle much business,” he said. “Customers opt to use trucks.” The SGR opened to passengers in May 2017, and to freight in January 2018. It is now uncertain whether Uganda’s joint plan with Kenya and Rwanda, conceived six years ago, to build a standard gauge railway (SGR) that connects East Africa’s land-locked nations to the Kenyan port of Mombasa, will come to fruition. In recent months, the SGR project has faced major financing challenges after the Chinese Exim-Bank, its major benefactor, delayed financing of the third and last segment of the Kenyan section from Naivasha in the heart of the Rift Valley to Malaba on the border with Uganda. Uganda has also experienced delays to the funding of the $2.3 billion Kampala-Malaba segment of the standard-gauge railway that the Export-Import Bank of China was expected to foot 85 per cent of the budget. The Kampala section of the SGR project was to be built simultaneously with the third phase of the Kenyan section. Uganda’s latest decision...

Kenya and Tanzania are pushing to resolve their long-standing trade disputes, which have slowed down the flow of goods across common borders. Trade officials from the two countries held bilateral meetings in Arusha, in April, to try and resolve the many contentious trade issues, including rules of origin for some products and persistent suspicion over the quality of products traded across the borders. People familiar with the negotiations told The EastAfrican that the first bilateral meeting was held in September 2017 and the next meeting is scheduled for Mombasa in early July. So far the trade officials have held four bilateral meetings since 2017. The meetings follow a directive by the regional Heads of State in March requiring ministers of trade and EAC affairs from Kenya and Tanzania to address and resolve non-tariff barriers affecting trade between the two countries. “Our trade teams have been meeting because we need to resolve these issues amicably,” said Kenya’s Cabinet Secretary for EAC Affairs Adan Mohamed. 19 out of 37 NTBs Kenya’s Principal Secretary in the Department of Trade Chris Kiptoo said the two countries have managed to resolve 19 out of 37 NTBs while the ministers of trade have made recommendations on how to resolve the remaining 18 NTBs. Last year, Tanzania imposed a 25 per cent import duty on Kenyan confectionery, including juice, ice cream, chocolate, sweets and chewing gums, claiming Kenya had used zero-rated industrial sugar imports to produce them. Kenya banned Tanzanian tour vans from accessing the Maasai Mara...