At their meeting in Arusha this week, members of East Africa Business Council (EABC) who teamed up with UN Economic Commission for Africa (ECA) said they foresee large potential gains from the AfCFTA, including an increase in intra-African exports of Eastern Africa by nearly US$ 1 billion and job creation of 0.5 to 1.9 million. “Together African economies have a collective gross domestic product of U$2.5 trillion, making it the 8th largest economy in the world. That makes the continent much more attractive to investment, both from within and from outside the continent,” said Andrew Mold, acting Director of ECA in Eastern Africa. “This should encourage business people to take advantage of AfCFTA and make the investments necessary to sustain economic growth and create employment,” Mold added. EABC Chairman, Nick Nesbitt emphasized the importance of the continent having a clear vision to put an end to the fragmentation of the internal market. “I really applaud everybody who has been involved in creating the AfCFTA because their vision is the one of pan-Africanism.,” Nesbitt said. “It is something our founding founders aspired to. Our thanks to ECA for being at forefront of this conversation and pushing the agenda forward so that the continent becomes a single economic trading bloc,” he added. Speaking at the same gathering, Director General of Customs and Trade at East African Community Secretariat, Kenneth Bagamuhunda cited the experience of regional economic communities as the building blocks for the AfCFTA. “The AfCFTA should build on what has already...

Kenya and Tanzania have agreed to fully implement a single customs territory to fasten clearance of goods. The two states also struck a deal to fast track the harmonisation of domestic taxes, levies and fees in a bid to ease trade between them. This will come as good news for traders in landlocked East Africa countries who have been pushing for a single customs bond guarantee scheme for the whole region amid concerns that high cost of complying with Kenyan and Tanzanian laws have raised their cost of production. The two countries also agreed to follow procedures stipulated in the East African Community (EAC) Customs Management Act, 2004 and Standardisation, Quality Assurance, Metrology and Testing Act, 2016 in the inspection and clearance of goods. COMESA Tanzania is the only EAC state that does not recognise the Common Market for Eastern and Southern Africa (Comesa) Customs Bond Guarantee Scheme which shippers execute at the Mombasa port to move goods through Kenya, Uganda, Burundi, Rwanda and South Sudan. The country also does not belong to the Comesa trading bloc, having opted to integrate its market with Southern Africa Development Community countries. The deal was struck during the fourth bilateral trade meeting on non-tariff barriers (NTBs) to trade held in Arusha between April 23 and 27. During the meeting, Kenya was represented by Trade Principal Secretary Chris Kiptoo while Tanzania had its Industry and Trade Minister Joseph George Kakunda. “Pursuant to the meeting, it was agreed to fast track the process of verification...

COMESA, to which Uganda is a member, has become the first regional trading bloc to launch an online seed label verification system in Africa and globally. The system will assist the region eliminate cases of fake seed and boost trade in quality and improved certified seed. The region has also scored another first by introducing COMESA Regional Certificates to be issued by National Seed Authorities and this is also expected to boost seed trade in the 21 countries. Pedigree Global Strategy Director Mr Selorm Branttie has since commended COMESA for the launch which has been done through the Alliance for Commodity Trade in Eastern and Southern Africa (ACTESA) Seed programme. He was speaking at the COMESA Secretariat during the two-day training held on 24th – 25th April 2019 for seed companies on ordering, use and trading using the COMESA Seed labels and Certificates. “This is the first time that seed certificates and verification of the seeds will be done electronically, and the farmer will be able to trace the source of the seed and authenticity of the seed without difficulty,’’ Mr Branttie added. He emphasized the need to eliminate the trade and use of fake seed saying it has greatly contributed to the poor performance of 80 million small-holder farmers and food insecurity in the COMESA region. Mr Branttie, who conducted the training, said the seed labels and certificates will promote the use of genuine seed and eventual elimination of fake seed from circulation. ACTESA is implementing this programme through...

East Africa region’s gross domestic product is forecast to grow to 6.3%, reinforced by the development of Kenya’s financial technology (fintech) scene, a recent survey reveals. The Economic Insight: Africa Q1 2019 report by the Institute of Chartered in England and Wales (ICEAW) also shows that fintech in Kenya may be on course to overtake traditional economic drivers. Although traditional economic drivers remain strong performers, sectors such as agriculture could waver due to the delay in long rainsin the country. However, ICEAW Regional Director for the Middle East, Africa and South Asia Michael Armstrong said that Kenya’s economy is ripe for diversification with the growth of fintech. “Growth in Kenya is currently driven mostly by traditional sectors, however, its strong FinTech scene provides an opportunity to diversify and increase growth avenues for the economy in general,” he says. Mr Armstrong adds that this can foster inclusive development, “but it can only happen if it is managed properly.” The East Africa region has already established itself as a global leader in mobile money transfer services. Kenya, propelled by M-Pesa, has been at the forefront of this growing sector. According to the International Monetary Fund (IMF), the value of mobile money transactions in Kenya was equivalent to 47% of GDP in 2017. Kenya’s Information Technology sector is also reinforced by the presence of global tech firms Google, Microsoft, IBM and Samsung. “Widespread mobile money usage has helped to smooth consumption, reduce poverty and boost economic growth in Kenya,” said Mr. Armstrong. Mobile...

Kisumu Governor Anyang’ Nyong’o now wants the National government to source for money elsewhere to fund the Standard Gauge Railway project. Speaking on NTV talk show, Nyong’o said the project is of great economic value to the country to be allowed to fail and urged President Uhuru Kenyatta to explore every possible avenue to ensure the Sh368 billion project covering 270 km is delivered. Finance mobilisation He asked the government to reach out to East African Community member states and lobby them with a view to forming a consortium that will help in joint financing for the project. “Let us not insist on going the China route if doing so is proving futile. We need to widen our scope and consider partnering with our neighbours who also stand to benefit from the project. Let’s explore collaborative finance mobilisation strategy,” he said. The governor further argued that the planned rehabilitation of the old railway must not be tied to the SGR projects suggesting that the implementation of the two projects should be allowed to run concurrently. Nyon’go, who served as Planning minister in the Narc government under President Mwai Kibaki said SGR was mooted to boost trade within the EAC region by providing the link between Mombasa port to the land-locked countries hence the need to bring on board the partner states toward its implementation. “ We shall have lost the whole intention for which SGR was envisioned if the project is terminated in Naivasha. While it makes economic sense to...

East African business community leaders on Friday called for concerted efforts to fast-track the realization of the African Continental Free Trade Area (AfCFTA). East African business leaders, who have been convening on the potential benefits of the AfCFTA for the private sector under the umbrella of the UN Economic Commission for Africa (ECA), on Friday urged for the realization of the continental free trade pact, the ECA said in a statement on Friday. The ECA, which brought together some 40 key East African business leaders on Thursday in collaboration with the East African Business Council, in meeting outcome statement issued Friday revealed that the region's business community representatives' common position, reiterating their support to the ambitious free trade pact. "The AfCFTA is not simply a free trade agreement. It's about establishing a unified continental market with 1.2 billion potential customers and where the private sector is a major engine to make it happen," private sector leaders said after the meeting. The ECA, which stressed "large potential gains" from the free trade pact, also projected an estimated a 1 billion U.S. dollars increase in the exports of eastern African countries, as well as close to 1.9 million new job opportunities in the region. Once operational, the AfCFTA is projected to boost the level of intra-Africa trade by about 52 percent by the year 2020, according to figures from the ECA. The AfCFTA, which was launched in Kigali, capital of Rwanda, in March 2018, mainly aspires to create a tariff-free continent that...

The push to boost intra-regional trade, cross-border investment and economic integration in Africa has reached a pivotal phase. This April, Gambia became the 22nd country in the continent (Kenya was among the first ones) to ratify the Africa Continental Free Trade Agreement, helping the historic trade deal gather the minimum required ratifications to come into full effect. Signed last year in Kigali, the capital of Rwanda, the AfCFTA presents Africa with a golden opportunity to unleash the power of its industries, create jobs for the masses of unemployed youth and fast-track development. Most rich industrialised countries started the regional integration journey in the 1960s, meaning that their industries have enjoyed access to larger markets outside national borders for close to six decades. This head start in cross-border trade and investment explains why industries in these countries enjoy crucial competitive advantages such as economies of scale and specialisation. When firms produce at scale, which is possible if they have easy access to markets outside their national borders, they not only manage costs better and hence get more profitable, but also find it easier to specialise in one area. Firms become better at making any product they specialise in, allowing them to build comparative advantages, price their products more competitively and create well-paying quality jobs. The push to boost intra-regional trade, cross-border investment and economic integration in Africa has reached a pivotal phase. This April, Gambia became the 22nd country in the continent (Kenya was among the first ones) to ratify the...

The regional business community on Thursday held discussions in Arusha, Tanzania about how the East African Private Sector, including Small and Medium Enterprises (SMEs), could benefit from the African Continental Free Trade Area Agreement (AfCFTA). The meeting largely observed that the AfCFTA is not simply a free trade agreement since it is about establishing a unified continental market with 1.2 billion potential customers with the private sector regarded as a major engine to make it happen. The one-day meeting was organised by the East African Business Council (EABC) and the UN Economic Commission for Africa (ECA). Close to 40 key players from the region’s private sector attended. Early this month, the trade deal got the minimum required ratifications after the Gambia became the 22nd country to ratify it. Nick Nesbitt, EABC Chairperson, emphasised the importance of the continent having a clear vision to put an end to the fragmentation of the internal market. “I really applaud everybody who has been involved in creating the AfCFTA, because their vision is one for pan-Africanism. It is something our founding founders aspired to,” Nesbitt said. The United Nations Economic Commission for Africa Eastern Africa Sub-regional office estimates large potential gains from the deal. These include an increase in intra-African exports of Eastern Africa by nearly $1 billion and job creation of 0.5 to 1.9 million. “Together, African economies have a collective GDP of 2.5 trillion USD, making it the 8th largest economy in the world. That makes the continent much more attractive to...

That will be decided during the forthcoming African Union meeting slated to take place in the next three months, according to the officials who gathered in Arusha this week. The proposed African Continental Free Trade Area isn't simply a 'Free Trade Agreement' it's about establishing a unified continental market with 1.2 billion potential customers and where the private sector is the major engine to make it happen. This was the tone from the discussions of the meeting held in Arusha about how the East African Private sector including Small and Medium Enterprises (SMEs) could benefit from the African Continental Free Trading Area (AfCFTA). The one-day meeting, organised jointly by the East African Business Council (EABC) and the UN Economic Commission for Africa (ECA), convened close to 40 key players from the region’s private sector. The office for Eastern Africa of ECA estimates large potential gains from the AfCFTA, including an increase in intra-African exports of Eastern Africa by nearly US$ 1 billion and job creation of 0.5 to 1.9 million. "Together African economies have a collective GDP of 2.5 trillion USD, making it the 8th largest economy in the world. That makes the continent much more attractive to investment, both from within and from outside the continent", said Andrew Mold, acting Director of ECA in Eastern Africa. "This should encourage business people to take advantage of AfCFTA and make the investments necessary to sustain economic growth and create employment". Nick Nesbitt, chairman of EABC, emphasised the importance of the continent...

At their meeting in Arusha this week, members of East Africa Business Council (EABC) who teamed up with UN Economic Commission for Africa (ECA) said they foresee large potential gains from the AfCFTA, including an increase in intra-African exports of Eastern Africa by nearly US$ 1 billion and job creation of 0.5 to 1.9 million. "Together African economies have a collective gross domestic product of U$2.5 trillion, making it the 8th largest economy in the world. That makes the continent much more attractive to investment, both from within and from outside the continent," said Andrew Mold, acting Director of ECA in Eastern Africa. "This should encourage business people to take advantage of AfCFTA and make the investments necessary to sustain economic growth and create employment," Mold added. EABC Chairman, Nick Nesbitt emphasized the importance of the continent having a clear vision to put an end to the fragmentation of the internal market. "I really applaud everybody who has been involved in creating the AfCFTA because their vision is the one of pan-Africanism.,” Nesbitt said. “It is something our founding founders aspired to. Our thanks to ECA for being at forefront of this conversation and pushing the agenda forward so that the continent becomes a single economic trading bloc," he added. Speaking at the same gathering, Director General of Customs and Trade at East African Community Secretariat, Kenneth Bagamuhunda cited the experience of regional economic communities as the building blocks for the AfCFTA. "The AfCFTA should build on what has already...