The AfCFTA is a big step towards the dream of economic unity across Africa, and the fact that it has moved towards entry into force in a relatively short time period shows the dynamic of goodwill for such measures across Africa. However, it is just one part of the process. We look briefly below at the process of trade reforms that has now begun with the Treaty (2) as well as the way forward, with the potentially thorny issues of competition, intellectual property and in particular the possibility for investors to enforce their rights under the treaty – which alone has already provoked much discussion – still to be negotiated (3). Key changes:  the AfCFTA Agreement has begun the creation of the African single continental market  The AfCFTA Agreement consists of four main sets of rules aimed at enabling the creation of a single continental market for Africa: An overarching agreement that sets out the AfCFTA's institutional structure. It provides, inter alia, that the AfCFTA will be administered by four bodies, namely: (1) the Assembly (which will have the exclusive authority to interpret the AfCFTA Agreement); (2) the Council of Ministers (which will be responsible for the effective implementation and enforcement of the AfCFTA Agreement); (3) the Committee of Senior Trade Officials (which will consist of permanent officials responsible for the monitoring of the AfCFTA); and (4) the Secretariat (whose role and responsibilities remain to be defined by the Council of Ministers). A Protocol on Trade in Goods that sets...

Rwanda and Tanzania have agreed to expedite the process to implement the Isaka-Kigali Standard Gauge Railway (SGR) project, a cross-border railway link connecting the two countries. Sub-Saharan Africa’s first bullet train- rail line linking Rwanda with Tanzania’s port at Dar es Salaam to cost $2.5billion. For the 422-km Isaka-Kigali Standard Gauge Railway (SGR) project, Tanzania will pay $1.3bn and Rwanda $1.2bn. “The cross-border railway project will enable landlocked Rwanda to access the Dar es Salaam port in Tanzania.” The 400km-long SGR project will connect Tanzania’s Isaka to Kigali in Rwanda. It is expected to provide improved railway connectivity and reduce freight transportation costs in the East Africa region. The cross-border railway project will enable landlocked Rwanda to access the Dar es Salaam port in Tanzania. It will support the transfer of goods from Dar es Salaam port to Burundi and Congo. The two countries are considering various funding options for the project including from the African Development Bank (AfDB). The Isaka-Kigali SGR project was launched by the two governments in January. Source: Newz Post

The Gambia has become the 22nd nation to ratify the African Continental Free Trade Area (AfCFTA), the number required for the agreement to take effect. While this marks a significant step towards the continent’s ambition to create a single market, the free trade area will face a bumpy road to full implementation. The news of the Gambia’s approval comes one year after leaders of 44 countries first signed the free trade agreement into life in Kigali in what was described as a historic moment for Africa. Since then, another eight countries have joined the agreement. AfCFTA comes with big ambitions: if fully implemented, it will create a single African market for goods and services, covering 1.2 billion people and a GDP of US$2.5tn across 55 member states of the African Union. According to the African Union, the agreement has the potential to boost intra-African trade by 53% by eliminating import duties, and to double trade on the continent if non-tariff barriers are also reduced. Such a growth in intra-regional trade could boost the diversification of Africa’s revenues significantly, which in turn will help develop its local economies, according to Moody’s. The credit ratings agency also expects that AfCFTA will lead to improved credit profiles “given the greater stability and sophistication that intra-regional trade can offer”. While most of the continent has signed up to the deal, each nation still needs to ratify it. With 22 countries having now completed this process, AfCFTA is ready to be put into action by the African Union. “I cannot...

The International Monetary Fund lowered its forecast for Tanzania's economic growth this year and in 2020 to around 4 percent from a previous forecast. In its World Economic Outlook, released on Tuesday, the Fund also predicted the East African nation's consumer price inflation will reach 3.5 percent this year and edge up to 4.5 percent in 2020. Tanzania's economy will expand at 4 percent this year then accelerate slightly to 4.2 percent next year, from an estimated 6.6 percent in 2018, the Fund said in its forecasts. Tanzania relies heavily on mining, tourism and telecommunications for state revenues and foreign exchange earnings. The government forecasts the economy will grow 7.3 percent in 2019 after an estimated 7.2 percent expansion last year, helped by public infrastructure investments. Source: Nasdaq

Government through Uganda Development Corporation under the Ministry of Trade, Industry and Cooperatives in partnership with Korea International Cooperation Agency has completed the construction of a fruit factory in Soroti According to the Minister of Trade, Industry and Cooperatives, Amelia Kyambadde, the factory which will be launched on Saturday, April 13, 2019 by President Museveni at the Soroti Industrial and Business Park cost sh48.2B and was 57.4% financed by the Korean Government in form of a grant while the Ugandan government contributed 42.5%. The grant was channeled through the Korea International Cooperation Agency (KOICA) for civil works, machinery and equipment as well as training. “The investment is a value addition venture for the fruits (oranges and mangoes) that are abundantly produced in the region,” Kyambadde explains. The factory will also create a ready market for the farmers, which will ultimately increase on their household incomes. Source: New Vision

The Rwanda Standards Board is set to introduce a special logo of standards, the ‘S-MARK’, on approved products in a bid to promote reduction of counterfeit products and improve visibility in the international market. Anicent Muriro, from the standards body, said that the special technology is also aimed at enabling small to medium size enterprises meet quality standards as well as play part in promoting exports. According to a News Times Report, Muriro however insisted that operators in local food processing need to implement guidelines on fulfilling standards in order to ensure competitiveness and increase exports. “Certifying and standardising business is key for competitiveness on the market and increases exports that have the S-MARK,” he said. Mr Muriro noted that agro-processing is an important sector in the country’s economy which contributes to about 65% of the total products in the Rwandan market and hence certification for standards could boost exports. “This means lack of standards for food products could affect market access,” he said. However, he said that there challenges in accessing Knowledge and information on the S-MARK have been a major impediment in its actualisation. “Standards are assessed in the whole value chain of food processing. The standards are not assessed on the finished product but along the whole value chain such as post-harvest handling, hygiene, processing and ingredients, among others,” he explained. Muriro added that a special S-MARK for locally made products will soon be unveiled with a new technology to help in monitoring substandard and uncertified goods in the market. “We...

THE Tanzania-Zambia Railway Authority (TAZARA) is prepared to take the lucrative fuel transport business from Dar es Salaam port to Zambia after enforcement of legislation that reduces maximum weight on loads transported by road in Tanzania. According to a statement from TAZARA spokesperson, Conrad Simuchile, the railway authority was preparing to move over 30,000 tonnes (30 million litres) of fuel per month of Zambia after East African Community Vehicle Load Control Act, 2016 came to force last month. TAZARA Managing Director, Eng Bruno Ching’andu said TAZARA and Zambia Railways Limited (ZRL) were discussing with fuel suppliers in Zambia on how best to effectively move the petroleum cargo from the Dar Port after the road transporters abandoned the commodity following implementation of the law. Mr Ching’andu says that by the end of April, TAZARA and ZRL would have finalised Service Level Agreements with petroleum suppliers, a development that would enable the two railways to hire additional tank wagons to transport the commodity into Zambia. Tanzania passed the East African Community Vehicle Load Control Act in 2017 to protect roads in EAC member countries of Tanzania, Kenya, Uganda, Rwanda, Burundi and South Sudan by curbing overloading. The new law came into effect on the 1st of January this year but the government suspended its enforcement until the 1st of March to allow for completion of installation of new weighing system across the country. Under the law vehicles with a gross weight of 3,500 kg and more have to be weighed at every...

A Tanzanian trade authority has urged the East African nation's companies to capture the 'golden chance' provided by a trade expo to be held in China. The Tanzania Trade Development Authority (TanTrade) said in a statement issued on April 10 that the country is set to participate in the first China-Africa Economicand Trade Expo to be held in Changsha, the capital of central China's Hunan province. The statement signed by TanTrade public affairs and communication principal officer Theresa Chilambo called on Tanzanian companies and individuals to "capture the golden chance in participating in the expo." State-owned TanTrade works toward enhancing Tanzania's economic performance through development and promotion of goods and services for both local and foreign markets. The statement said the expo to be held between in June this year will be themed: Win-win cooperation for closer China-Africa economic and trade partnership. The statement also said the expo will focus on trade, investment, finance, agriculture, mining, energy, tourism and infrastructure. China launched the biennial first joint Sino-African trade expo this year to boost reciprocal trade with Africa. Officials will sign bilateral agreements during the exhibition, engage in investment promotions, and establish a "new mechanism" for future economic cooperation, Xinhua reported. Also Read: Tanzania to continue strengthening ties with China, Belt and Road Initiative plays vital role Source: Devdiscourse

The government of Tanzania has announced its intentions to construct a world class cruise ship terminal on its Dar es salaam port in an effort to improve transport from abroad through the Indian ocean to the country. Deputy Permanent Secretary in the Ministry of Nature Resources and Tourism, Dr Aloyce Nzuki revealed the reports and said construction of the special terminal would be done during the on-going expansion of the port and new facility would enable handling of tourists without disrupting activities of handling other cargo ships at the port. “Cruise ship tourism is common and popular. Currently the country is not benefiting a lot from the Cruise Ship tourism because the terminal has not been constructed. This limits the number of cruise liners docking at the port,” said Dr Nzuki. New cruise ship terminal Upon Completion the new peculiar facility, which will be built during the course of the on-going expansion of the Dar es salaam port, is set to halt this problem by enabling handling of tourists or other cruise ships without necessarily having to disrupt activities of other cargo ships. In addition the new terminal will have sate of the art security features, an immigration center, a hotel & accommodation among other social amenities. On his part the Chairman of Tanzania Tourists Board (TTB), Justice Thomas Mihayo said the board would discuss with relevant authorities to see how they could issue long-term visa to tourists who would like to stay in the country for more than a month. Silver Whisper is a cruise ship operated by...

According to Peter Masinde, the manager in charge of the Nairobi Inland Container Depot (ICD), the trains will transport tea, fruit juices and soda ash from ICD if new laws are introduced. Following the launch of the freight services in January 2018, the SGR has transported the empty containers on its return journey to Mombasa at discounted rates of Sh25,000 and Sh30,000 for the 20- and 40-foot containers respectively. “The goods will be transported from Thika using the Metre Gauge Railway (MGR) railway and we are looking at about 60 tonnes of cargo every week,” Masinde said. In addition, the KRC has also revealed that it is looking to make a deal with Magadi Soda Company to commit a full train load of 108 containers daily. Direct tea sales make up around 20% of tea exported out of Kenya, with the country exporting 436mn kilos of tea during 2018. Source: Business Chief