A team of African Union assessors who are currently in the country have given Nairobi thumbs up saying will retreat to write their recommendations. The secretariat will be tasked with coordinating activities of the Africa Continental Free Trade Area which seeks to create the biggest borderless economic bloc in the world. The Africa Continental Free Trade Area seeks to create a single continental market for goods and services, with free movement of business persons and investments, and thus pave the way for accelerating the establishment of the Continental Customs Union and the African customs union. Signed by 52 of the 55 African countries, the Africa Continental Free Trade Area will create a Ksh300 trillion shillings free-trade zone. It also seeks to expand intra African trade through better harmonization and coordination of trade liberalization and facilitation regimes. Kenya is among six countries including Ethiopia, Ghana, Egypt, Senegal and Madagascar, who are bidding to host the Africa Continental Free Trade Area secretariat. Kenya’s push to host the secretariat is being spearheaded by the Ministry of Foreign Affairs which today hosted the technical team from the Africa Union headquarters assessing all bidding countries. The team is expected to write its report next month before the host country is announced in August. Amb. Kamau says hosting the secretariat would cement Kenya’s role as a lead country in trade and multilateralism but it would also avail Africa the best venue and the best opportunity to grow free trade to its full potential. Source: VIPortal

Rwanda and Democratic Republic of Congo have agreed to come with a list of products, as well as the size of businesses, that will benefit from tax-free cross-border trade. The development followed a meeting on Saturday evening between the Minister for Trade and Industry, Soraya Hakuziyaremye and Lambert Matuku Memas, the Congolese Minister for External Trade. The bilateral meeting was held in Kigali and aimed at, among others, consider an agreement intended to promote cross-border trade between the two countries that they signed in 2016, and devise ways to address identified challenges. Matuku voiced concerns that there are traders who have been fraudulently exploiting the simplified trade regime, which posed an obstacle to the effective implementation of that business arrangement. He called for measures to curb that malpractice. The simplified trade regime (STR) was launched in 2007 by the Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC) to facilitate small-scale cross-border trade. Under the regime, small-scale cross-border traders dealing in certain types of commodities benefit from a duty-free arrangement. Goods that are originating from member countries and whose value does not exceed $1,000 or about Rwf800,000 (COMESA) or $2,000 or about Rwf1.8 million (EAC) per consignment qualify automatically for duty-free entry in the respective markets. DR Congo officials said $2,000 for small traders, which was currently the ceiling for tax exonerated beneficiary, is a huge amount, proposing that the sum be reduced to $500. The visiting minister indicated that, initially, the idea was for...

According to the press release, FSX aims to enhance the status of preparedness for and response to infectious disease outbreaks in the EAC, thereby making the region safe for the people and businesses in the region. An estimated 250 participants from Kenya, Tanzania, Burundi, Rwanda, South Sudan and Uganda and representatives from regional, supra-regional and international institutions and organisations will participate in the exercise. Experts say seventy-five percent of infectious diseases are transmitted between animals and humans. Outbreaks affect agriculture, trade and tourism and the lives and livelihoods of the people. “Involving these sectors in prevention, response and mitigation reflects what is called the “One Health” disease management approach,” officials say. The EAC region has experienced cases of Ebola, Rift Valley, Marburg and Crimean Congo Hemorrhagic fevers, Cholera, Polio and Plague among others. The current Ebola Virus Disease outbreak in the Democratic Republic of Congo (DRC), which has so far caused over 1,600 human cases and more than 1,000 deaths, remains a major threat to the health and socio-economic wellbeing of the people of East Africa, says the press release. “Therefore, the region needs to be prepared and the ongoing efforts to operationalize national and regional contingency plans need to be strengthened. In this regard, the planned cross-border Field Simulation Exercise aims to strengthen the capacities of all people involved in preventing and responding to infectious disease outbreaks across different professions and sectors of society.” An FSX is an interactive instrument to evaluate the status of preparedness for and response...

TradeMark Africa (TMA) and Rwanda’s trade body, the Private Sector Federation (PSF) announced a new public private sector dialogue (PPD) for trade and investment programme and support to women entrepreneur’s programme. TMA will fund both programmes with US$2.26 Million over a period of four years. The two organisations made the announcement during the signing of a grant agreement, which also marked the kickoff of the first phase, which will run for two years. PSF which is the umbrella of all business in Rwanda said the Public-Private Sector Dialogue (PPD) for Trade and Investment programme, will build mechanisms that support the private sector to actively and meaningfully participate resolving local and regional trade issues; and especially pushing for resolution of matters affecting Rwanda. For example, as a land locked country, Rwanda contends with numerous non-tariff barriers along the key transport corridors from port to destination, leading to high transport costs. Removal of such non-tariff barriers would greatly reduce transport related costs.  “We have identified priority issues like regional transport logistics which, if resolved can reduce transport costs and time in Rwanda,” said PSF CEO, Stephen Ruzibiza . “We may have the disadvantage of having no port. therefore our aim is to make the country land linked; and we will continue to work with the government of Rwanda to reform customs and adopt Information Communication Technology for Trade with the aim of further reducing time and costs; with a unified voice we expect to push for a reduction of tariffs, taxes and levies...

Give a brief background of European Union-Uganda relations? The European Union and Uganda have partnered in development for more than four decades now since the start of diplomatic relations in 1975. What started as a bilateral relation in development cooperation has since developed into a relationship that covers nearly all the areas of human endeavour. It is a relationship of equal partners who are working together to counter our collective global challenges; climate change, peace and security, migration, job creation, economic growth, human development and many others. Uganda is a relevant and key player on the global stage and we count on our continued partnership based on an open dialogue and mutual respect. What are key areas of the EU's development cooperation in Uganda? Our development cooperation with Uganda is designed together with our Ugandan partners to offer support in key areas, which have been jointly agreed. The main instrument of this cooperation is the European Development Fund, dedicating the sum of 558 million Euros (Shs2.3 trillion) to Uganda until 2020 covering support to sustainable development, good governance and the inclusive green economy. It is important to recognise that our support is in the form of grants, which come without any obligations for repayment or interest or strings attached as some would like to say. In many ways, this represents a true mark of trust and partnership. We are also leading the support to Uganda's refugee response through programmes run by the EU Delegation. But, together with our Member States,...

AFRICAN Development Bank (AfDB) President Dr Akinwumi Adesina has commended Tanzania for steady economic growth of an annual average seven per cent, describing it as one of the world’s fastest growing economies. Dr Adesina issued the commendation at State House in Dar es Salaam, shortly after holding talks with President John Magufuli on various issues relating to cooperation between the East African nation and the continental financial body. He hailed President Magufuli for exhibiting exemplary leadership and safeguarding the interest of his people, leading to the country’s fast economic growth, which is far above the world’s 3.5 per cent. The continental bank’s boss also congratulated Dr Magufuli for forging ahead good relationship with neighbouring Uganda, which has led to the two nations agreeing on multi-billion shillings 1,443 kilometre Hoima-Tanga oil pipeline project. Dr Adesina explained further that they also discussed with the Head of State how to improve agriculture in the country, with the financial institution pledging to address problems associated with market for the agricultural produce. On development projects, Dr Adesina noted that the bank has so far funded various projects in the country at the value of 4.55tri/-. Recently, he said AfDB approved the funding for construction of 110 kilometre ring road in the country’s capital, Dodoma and construction of Msalato International Airport in the capital. He also hailed Tanzania for starting working on the Standard Gauge Railway project that joins the country’s commercial city, Dar es Salaam and Dodoma. He pledged that the bank will fund the...

Trade Mark East Africa (TMA) has confirmed receipt of Sh600million from the British government to be used in upgrading the road leading to Busia town to a dual-carriageway.Part of the money, according to TMA officials, will be used in expanding One Stop Border Post (OSBP) in the border towns of Malaba and Busia.Expansion of the narrow road between Mundika and Busia town will get rid of the congestion of the heavy commercial vehicles that park on the road whenever there is network failure at the Customs office.Speaking yesterday after meeting Canadian High Commissioner to Kenya Lisa Stadelbauer and officers from TMA, Deputy Governor Moses Mulomi hinted that design for the dual-carriageway will be completed by June this year before works starts.He said the One Stop Border Post in Busia was overcrowded and thus need to expand it like the Ugandan side which has enough space for the trailers.“The main concern for our people is the road leading to Busia town from Mundika, it needs some expansion because it very narrow when hundreds of trailers use it daily,” said Mulomi. Source: Standard Digital

East African exports to the rest of the continent could be boosted by almost $1bn by the African Continental Free Trade Area (AfCFTA), according to the UN Economic Commission for Africa (ECA). The office for Eastern Africa of the ECA also said the AfCFTA could create between 500,000 and 1.9m jobs. Source: Supply Management

The African continental free trade area (AfCFTA) is among the most momentous of developments in trade. Signed by 52 African states, it is by number of participating countries the largest trade agreement since the formation of the World Trade Organisation. It occurs not just in an international climate of aversion to free trade, notably with stalemate at the WTO and bellicose US trade policy, but also in a climate in which trade agreements just don’t seem possible. Many negotiations have been drawn out and time consuming, often languishing without ever entering into force. These include – but are not limited to – the Regional Comprehensive Economic Partnership, Free Trade Area of the Americas, Transatlantic Trade and Investment Partnership, the European Union’s economic partnership agreements, and the tripartite free trade area. The AfCFTA is different. Despite capacity constraints and the diversity of their countries, African negotiators have worked industriously and effectively. This is an important moment for Africa. The AfCFTA consolidates progressively 55 fragmented African countries into a market of 1.3 billion people with a combined GDP of $2.3 trillion, roughly the size of the India. Research at the United Nations Economic Commission for Africa forecasts it to have the potential to boost intra-African trade by between 50 per cent-100 per cent, depending on the extent to which non-tariff barriers are also reduced. It has been driven by firm political commitment. The threshold number of country ratifications required for the agreement was reached within one year, a pace of ratifications that...

The Government of Denmark through her development arm – Danish International Development Agency (DANIDA) has confirmed that it will invest some USD 9 million ( about UGX 33.5 billion) in improving informal cross border trade and goods standards across Uganda. The money which will be channeled through TradeMark Africa comes as a major boost for the thousands of Informal Traders plying their businesses at the different borders as it will ensure that their working environments are improved. Over 70 per cent of informal cross border traders in Uganda are women. In addition, part of this money will go towards the improving of the standards of goods manufactured in Uganda. Background: Cross border trade (CBT) is important in diversifying Uganda’s exports. Cross border trade enables the movement of produce across borders from surplus to deficit areas and is therefore significant not only in providing employment and livelihoods within border communities, but also in promoting food security. Uganda’s cross border exports, from formal and informal trade, have grown from under $1billion in 2011 to over $1billion in 2016 and account for between 25% and 35% of total exports. The informal cross-border export earnings in the Financial Year 2017/18 were estimated at US$ 595.51 million, representing 17.08% of Uganda’s exports. The main informal commodities included beans, maize, sugar, other grains, bananas, fish, among others. DR Congo was the main informal partner of the country with total informal export trade amounting to US$ 291.48 million in 2017/18. It was followed by Kenya at US$ 149.94...