EAST African region will continue to lead other regions in Africa in terms of economic growth thanks to infrastructure investment and the expansion of financial and telecoms services, an Institute of Chartered in England and Wales (ICAEW)’s latest report says. The report which paints a rosy picture of growth in the region says East Africa is expected to remain the strongest growing region with a 6.3 per cent economic expansion this year. Ethiopia, Rwanda, Tanzania and Uganda are all expected to record real GDP growth above 6 per cent this year, largely due to infrastructure investment and the expansion of financial and telecoms services. African economic growth has in general been driven by public infrastructure investment and the expansion of services to a largely underserviced population. However, financial technology (FinTech) is increasingly receiving attention from both private and public sector, facilitating innovation in other sectors of the economy and allowing African nations to leapfrog more traditional infrastructure. Michael Armstrong, Regional Director, ICAEW Middle East, Africa and South Asia said “African economic growth is currently driven mostly by traditional sectors, However, FinTech has the opportunity to leapfrog other key drivers and to foster inclusive development. But this can only happen if it is managed properly.” Almost one-third of total funding on the continent was raised by fintech start-ups in 2017. This can be supported by the fact that 60 per cent of all mobile money accounts globally can be found in sub-Saharan Africa (SSA), according to an Ecobank study. The FinTech...

Cabinet Secretary for Foreign Affairs Amb. Monica Juma arrived in Washington DC on Monday afternoon for the inaugural Bilateral Strategic Dialogue between Kenya and the US. The delegation of Kenya also includes Interior CS Fred Matiangi and high level government officials from the Ministries of Defence, Interior, Trade and Foreign Affairs. The first annual meeting will be held from May 7 to May 8, 2019. This is after U.S President Donald J. Trump and President Uhuru Kenyatta established the Dialogue at the White House on August 27, 2018, when they elevated the bilateral relationship to a Strategic Partnership. The Strategic Partnership is grounded in shared values, mutual cooperation, and a common vision for free, open and secure societies. Ambassador Monica Juma will jointly sign the strategic dialogue framework agreement with Deputy Secretary John J. Sullivan on May 7. On May 8, the two countries will be holding a high-level meeting organised around four thematic pillars. These include economic prosperity, trade, and investment; defense cooperation; democracy, governance, and civilian security; and multilateral and regional issues. CS Juma thanked the US Government for convening this first session of the BSD. "I wish to thank the US Government for hosting the inaugural meeting of the BSD. This is a clear demonstration of its commitment to our strategic partnership. The Kenyan delegation looks forward to productive engagements in the light of the very successful preparatory sessions that have taken place so far," she said. The CS also met with David Trachtenberg, Deputy Undersecretary for...

The United Nations Economic Commission for Africa (ECA) has urged African countries and pan-African institutions to prepare modalities as the African Continental Free Trade Agreement (AfCFTA) edges closer to entry into force. Adeyinka Adeyemi, ECA senior adviser with the African Trade Policy Center (ATPC), called on African countries and partners to undertake trade and investment forums toward the success of the continental free trade pact, which is weeks away to entry into force. On Wednesday, the African Union (AU) set a one-month timeframe to activate the AfCFTA on May 30 as Sierra Leone and the Saharawi Republic deposited their instruments of ratification to the AU Commission earlier in the week. “The two deposits meet the minimum threshold of ratifications required under Article 23 of the AfCFTA Agreement for it to enter into force 30 days after the deposit of the 22nd deposit, which is made by the Saharawi Republic,” the AU said in statement on Wednesday. According to Adeyemi, continental and regional forums and meetings are vital instruments to deepen economic integration of African countries, which is a “vital imperative toward the success of the AfCFTA.” “There is no doubt that the AfCFTA will not only reduce or eliminate barriers to trade and harmonize standards on the continent,” Adeyemi said. “It will also provide an overarching framework within which regions can address their peculiar challenges in a specific manner. “The free trade pact “should also be used as a catalyst for inclusive and sustainable socioeconomic development in Africa,” he said....

The Government of South Sudan (GoSS) has established a committee to verify the authenticity of Ugandan traders, claiming compensation for supplying goods to South Sudan before and after the 2013 civil war. This was revealed by South Sudan’s Deputy Minister of Finance and Planning, Goc Makauc Mayol, on Monday, May 6, 2019, during a meeting with Ugandan Members of Parliament. “Our direction is now clear, the 3 ministries have agreed to form a committee to look into issues of traders, Ministry of Defence has already submitted its representatives, and ours will be ready today,” said Makauc Makauc added that “the committee we have formed will sit, strategize and call you [MPs] up with possible queries. Whatever the committee will come up with, will be brought to the attention of the 3 ministries to take a decision” The South Sudan based verification committee is a 5 man committee comprised of officials from the Ministry of Finance and Planning, Ministry of Defence and Veteran Affairs and Ministry of Trade, Industry and East African Affairs. Ugandan legislators implored the verification committee to fast track the process for traders who fall into Category A. These are the traders who claim to have been at the level of payment; some had received cheques that bounced, others had bank guarantees that failed, while some received part payment from Government of South Sudan. “Our humble prayer and request is that you check out faster those whose claims had reached the level of payment so that we guide...

Kenya has made major strides in trade facilitation since implementation of the Single Window System commenced in 2012. This was revealed during the just concluded General Assembly of the African Alliance for e-Commerce (AAEC) recently held in Dakar, Senegal, in which KenTrade CEO, Amos Wangora was re-elected to the Presidency of AAEC General Assembly for another 2-year term. Kenya was also re-elected as the Chair of the AAEC’s Technical Committee for another 2 years. On the sidelines of the General Assembly which also marked the body’s 10th anniversary, AAEC held an international Single Window conference which brought together delegates from over thirty countries and experts from international trade bodies. The conference presented an opportunity for countries implementing the single window system to exchange views and share experience on implementation of their respective single window systems in the wake of the trade facilitation enhancement initiatives by various Africa countries. While presenting the status of the Kenyan Single Window System, Amos Wangora noted that implementation of the Single Window System (Kenya TradeNet) has resulted in streamlined import and export processes and procedures, transparency, effective information sharing and provision of a reliable and dependable platform on which stakeholders involved in international trade collaborate. AAEC is part of the African-led efforts to promote the concept of national and regional single window in compliance with recommendations of international institutions, as well as championing the use of Electronic Single Window System as a tool for cross border trade. AAEC members include Kenya, Benin, Bukina Faso, Cameroun, Congo,...

REPRESENTATIVES from the six East African Community (EAC) partner states meet in Mombasa tomorrow for the ninth East African Petroleum conference and exhibitions. Dubbed the EACPCE 19, the three-day conference is expected to offer a wide range of technical presentations reflecting on developments in the oil and gas industry in East Africa and globally. A statement released by the corporate communications and public affairs department of the EAC Secretariat here yesterday said the conference will also offer a platform for discussions on the legal and policy framework as well as overall business environment prevailing in the region. “It gives stakeholders in the oil and gas sector an opportunity to interact with EAC senior government officials and decision makers,” said the statement. Some of the topics that will come up for discussion during the meeting include licensing regimes, East African Rift Basins, East African Coastal Basins, Offshore Exploration Opportunities Exploration in inland Basins and Petroleum Data Management. It will also delve on meeting the regional petroleum needs, crude oil and refined petroleum products pipelines, exploring on exportation and refining options for crude oil. Comprising of six partner states—Tanzania, Kenya, Uganda, Burundi, Rwanda and South Sudan—with a combined population of over 168 million, EAC’s broad goal is economic, social and political integration to create wealth in the region and enhance competitiveness through increased production trade and investment. The community seeks to improve the quality of life for the people in the region through its mission of widening and deepening integration and the...

The Africa Continental Free Trade Area (AfCFTA) is set to float on 30th May. On the off chance that each African nation joins, it’s required to be one of the world’s biggest single markets, accounting for $4 trillion in spending and investment across the 54 nations. The AfCFTA will give business owners over the continent access to an a lot bigger market. It’s along these lines significant that youthful African business people see how the AfCFTA could profit them and their endeavors. As mindfulness is raised, business owners should start making new exchange guides for their organizations, educated by the understanding. It’s envisioned that the free trade area will lead to increased competition, innovation and prosperity for Africa’s people in the long term. But for the AfCFTA’s gains to be realized, entrepreneurs and policy-makers must be aligned. They must engage with each other to provide structure and clarity around how goods and services will move, and around the benefits that the agreement will bring to business. These discussions between entrepreneurs and the trade ministries of their country will also enable the review and updating of national trade policies, discussions which will benefit both the government and business communities. Source: How Africa

The Government has approved setting up one of the largest textile companies under the export processing zone, in what could boost President Uhuru Kenyatta’s job creation plan. Mas Holdings Singapore, a Sri Lankan apparel and textile manufacturer, says it will create job opportunities for 3,100 Kenyans once it starts operation in Athi River, Machakos County. With an investment of Sh1.5 billion, Mass Holdings Singapore Pte EPZ Ltd leapfrogs Hela Clothing as the largest apparel and textile manufacturer in the country. Hela employs 1,500 workers. The enterprise was approved on Friday and is expected to begin operations in June. Operating under the preferential export processing zone, Mas Holding will export apparel products to the US, United Kingdom, and the Netherlands. “EPZA received an application for the above EPZ Enterprise (Manufacturing) license on April 26th, 2019. All the required documents submitted together with the required non-refundable application fee of Sh25,000 ($250) (Receipt N. 44689 & 0215180) by April 2019,” read an internal memo by the Export Processing Zone Authority (EPZA). Official figures show that the number of local employees engaged by EPZ enterprises increased by four per cent to 56,945 in 2018 from 55,486 in 2017. “Total sales by EPZ enterprises increased by 14.7 per cent to Sh 77.2 billion in 2018 from Sh67.3 billion in 2017,” according to the 2019 Economic Survey. Mas Holdings which has a presence in 16 countries is expected to increase local value from $978,000 (Sh97 million) in the first year to $9.24 million (Sh924 million) in...

The EU has today made public its text proposal on future rules and obligations on e-commerce as part of WTO negotiations on e-commerce endorsed by Ministers in the margins of the Davos World Economic Forum in January 2019. The release of the text proposal is part of the EU’s commitment to transparency and inclusiveness in the development of its trade policy. The increasing digitalization of the economy and the rapid increase in e-commerce are having a tremendous impact on businesses and consumers across the world, both in developed and developing countries. Despite this fast increase of digital trade, there are currently no multilateral rules regulating this type of trade. Businesses and consumers instead have to rely on a patchwork of rules agreed by some countries in their bilateral or regional trade agreements. The EU considers that global trade policy responses can most effectively address the global opportunities and challenges brought by digital trade. The EU is therefore fully committed to advancing the WTO negotiations on e-commerce, which have just started. It will seek to negotiate a commercially meaningful set of rules on e-commerce with as many WTO Members as possible. To this end, the EU tabled initial negotiating proposals for a broad set of rules and commitments that would for instance: Guarantee the validity of e-contracts and e-signatures Strengthen consumer consumers' trust in the on-line environment Adopt measures to effectively combat spam Tackle barriers that prevent cross-border sales today Address forced data localisation requirements, while ensuring protection of personal data...

Kenyan firms recorded an increase in new orders from Tanzania despite deteriorating operating conditions in the country, the monthly manufacturing industry index shows According to the  April Purchasing Managers’ Index by Stanbic Bank Kenya new export orders once again rose sharply at the start of the second quarter of the year. The pace in April was quicker than March but but slower than February's four-month high. “New export orders were seemingly unaffected. Anecdotal evidence showed firms receiving higher orders from foreign markets such as Tanzania,” Stanbic Bank Regional Economist Jibran Qureishi said. Even though the new orders experienced continuous growth since the end of 2017, general activities in the private sector suffered a hitch in the country due to poor weather conditions and low cash flows. According to  the Economic Survey 2019, exports to the East African nation rose slightly by 4.31 per cent to Sh29.75 billion in 2018 from Sh28.52 billion in 2017. The values had however declined in the past years from a high of Sh46 billion in 2012. Imports from the country also rose to Sh17.81 billion in 2018 from Sh17.17 billion in the previous year. The index shows that over 35 per cent of close to 400 private sector companies reduced output, to mark the first instance since November 2017. “Firms were thus led to reduce output prices as they looked for new customers,” the index shows. Input prices rose at a quicker pace, though a drier than expected weather inflated commodity prices. The managers also attributed...