At least $85 billion worth of global trade is currently affected by trade restrictive measures aimed at addressing the spillovers of food insecurity brought about by the effects of the Russia-Ukraine War. This is according to the 2023 edition of the World Trade Report themed Re-globalisation For a Secure, Inclusive and Sustainable Future launched September 12 during the WTO Public Forum in Geneva. On July 17, the Black Sea Grain Initiative collapsed after Russia exited the arrangement which had paved the way since July 2022 for Ukraine, a key source of grains in global supply, to resume exports through the Black Sea, raising fears of further rise in inflation owing to re-emergence of supply related bottlenecks. Relatively high costs The World Trade Report further states that developing economies stand to lose the most if the geopolitical falling out between Russia and Ukraine is not resolved soon. Countries adopting trade restriction measures derail an ecosystem already is disadvantaged from a global standpoint owing to poor integration to global value chains. “World Trade Organisation (WTO) members have increasingly implemented new trade restrictions in the context of the war in Ukraine and food security crisis”, the global trade body states in its report. “Out of the 96 export restrictive measures on food, feed and fertilisers introduced since the start of the war in late February 2022, a whopping 68 were still in place by the end of February 2023 covering roughly $85 billion of trade”, the report added. The WTO is calling for efforts aimed...

In Summary Transport CS told the delegates Kenya is eager for innovations and technology He touted youthful population, emerging middle class and raft of areas to invest in The government has invited Dutch companies to take advantage of massive infrastructural developments and invest in the country. Speaking at Fair View Hotel on Monday, Transport CS Kipchumba Murkomen said Kenya is the largest and the most advanced economy in East and Central Africa. It has strong growth prospects supported by an emerging urban middle class and an increasing appetite for high-value goods and services, he said. “Kenya is open for business to well-positioned companies with strategic objectives of tapping into the growing potential of emerging markets in East and Central Africa,” Murkomen said. The CS was addressing Dutch delegates from 17 companies keen to invest in maritime/port development, logistics and the blue economy. Murkomen said Kenya’s investment climate is the strongest in the EAC, with Foreign Director Investment (FDI) flowing in from emerging and developed markets and a high number of multinational companies with regional and continent-wide presence. “Further, Kenya is a member of trade arrangements and a beneficiary of trade promotion schemes that include Africa Growth and Opportunity Act (AGOA), World Trade Organisation and EAC-EU Trade Agreement,” Murkomen said. “It is also a member of East Africa Community (EAC), Common Market for Eastern and Southern Africa (Comesa) that will soon be a Tripartite-Free Trade Area (FTA) cooperation, creating a potential market of more than 600 million people.” Murkomen told the delegates...

The government of Kenya has underscored the importance of 100% food and nutrition security for all Kenyans. Cabinet Secretary for Agriculture and Livestock Development Mithika Linturi, in a speech read by Principal Secretary (PS)  Kello Harsama, Linturi acknowledged the government’s mandate on safe food provision. The address comes at a time when Kenya is experiencing tough economic times which has also affected the Agricultural sector. Under Article 43 of the Kenyan Constitution, the Government is mandated and has a civic duty to achieve the right to nutritious food for all Kenyans. The speech by Linturi was delivered at Kenya Plant Health Inspectorate Service (KEPHIS) headquarters in Nairobi where KEPHIS is playing host to a number of Agricultural delegates from Europe, the United States and the African continent, who are meeting to deliberate on measures of seeds, plants, food safety and security. The forum is themed: ‘Enhancing phytosanitary systems for trade facilitation, climate-smart agriculture and Sustainable Livelihoods.’ Phytosanitary entails international measures in place for adherence to the safety of life, and the health of plants and plant products. It involves measures in control of pests, plant disease, and pesticides among other contaminants in plants. Sanitary and phytosanitary (SPS) measures refer to biosecurity measures which are applied to protect human, animal or plant health from risks arising from the introduction or establishment and spread of pests and diseases and risks arising from additives, toxins and contaminants in food and feed. Kenya’s Economic Growth has been heavily reliant on the agriculture sector, which...

Globally, much movement is underway in transitioning the transportation sector to cleaner fuel sources, and even more so across Africa. Of note is continent-wide efforts to resuscitate the rail sector. Due to its energy efficiency, reduced greenhouse gas emissions and lower cost per ton kilometre, rail transportation can play a crucial role in Africa’s industrialisation efforts. This market is vital to delivering on the promise of the African Continental Free Trade Agreement. Here is a snapshot of four projects addressing the need for rail transport infrastructure development this year so far. Apart from new build programmes, committing to continuous maintenance works on existing rail infrastructure is essential. One critical area for railway infrastructure is turnout sets. These rail configurations allow trains to change tracks smoothly without stopping. These sets also allow trains to re-route to avoid congestion and delays and to operate around maintenance work. For example, an important rail line in South Africa that connects the country’s coal to international markets experienced several such breakdowns, affecting mining companies’ ability to evacuate their coal export during H1 of 2023. Relief was reported in September after installing 18 sets during the annual July shutdown of the coal line from Lephalale in Limpopo through Mpumalanga to the Port of Richards Bay in KwaZulu-Natal. More work is underway. Register for Smarter Mobility Africa, taking place 1-3 October 2023 at Gallagher Estate in Gauteng. Use promo code ESI20MP to get the insider’s 20% discount on your ticket. DRC’s rail transportation momentum Of course, besides...

In a partnership spanning 13 years, the British High Commission and TradeMark Africa (TMA) have achieved significant milestones in reducing trade barriers for Uganda and its neighbouring countries, demonstrating why such collaborations matter, the two bodies announced recently. At a recent gathering, which was attended by notable figures including UK trade commissioner for Africa John Humphrey, Ambassador Kate Airey, the British high commissioner to Uganda, and TMA chief executive officer David Beer, highlighted their achievements since 2010. They said their work has led to substantial reductions in both the cost and time required for cross-border trade, benefiting Ugandan businesses and fostering regional economic growth. They pointed out the remarkable reduction in container transit time from Mombasa to Kampala, which dropped by a third between 2017 and 2021. General Katumba Wamala, Uganda’s minister of Works and Transport, expressed gratitude for the support received in various trade facilitation facets, including the construction and operation of One-stop border posts, road upgrades, the development of electronic cargo tracking systems, and support for farmers and traders in the grain sector. These interventions have not only reduced the cost and time of cross- border trading but have also introduced automated systems, minimized losses, and improved the economic fortunes of the region’s residents. The partnership extends beyond the UK, with significant contributions from development partners such as the European Union, Canada, Denmark, Finland, USAID and the Netherlands. These partners have bolstered trade facilitation in areas such as customs systems modernization, trade automation systems, harmonization of standards, and...

The flagship Africa Agriculture Trade Monitor (AATM) calls for the diversification of import sources to mitigate the adverse effects of the Ukraine crisis. African trade agreements can boost agricultural imports and exports and curb the adverse effects of climate change by including actionable provisions, according to the latest Africa Agriculture Trade Monitor (AATM). Published by AKADEMIYA2063 and the International Food Policy Research Institute (IFPRI), the 2023 AATM calls for concerted regional- and continental-level action toward sustainable trade flows and more environment-friendly trade policies. The report also delves into the negative impacts of the Russia-Ukraine war on fertilizers and food trade and recommends action to lessen the effects of the shocks on African countries and consumers. Unveiled at this year’s Africa Food Systems Forum (AGRF) in Dar es Salaam, Tanzania, the 2023 AATM provides high-quality trade statistics using consistent indicators to monitor trends in Africa’s participation in global trade as well as the status of intra-African trade. The report finds that Africa’s regional trade agreements (RTAs) do not exert a significant impact on its agricultural trade. The analysis attributes this to “shallow” trade agreements that focus on tariff reductions only, with limited impact on the agri-food market. The research highlights opportunities to include provisions on non-tariff measures and enhance their legal enforceability to accelerate intra-African agri-food trade. The report also calls for RTAs to include climate-related provisions to boost the contribution of trade to combat the negative impacts of climate change. “Amid global shocks like Ukraine and COVID-19, as well as the climate crisis, which is emerging as the biggest threat to...

his article comes in response to recent studies (1) which reveal that: – 45% (2) of African companies have classified Digital Transformation (DT) as a strategic priority. The adoption of digital technologies in African companies can increase productivity by up to 20% and profits by up to 25% (3). However, in Africa, the adoption of DT presents unique opportunities and challenges. In this article, I invite you to answer the question: What strategies can African companies use to maximise the return on investment (ROI) of their DT projects? Let’s look at them in turn: What is Digital Transformation (DT) in the African context. How Return on Investment (ROI) is calculated. What strategies to employ to maximise the ROI of DT projects. Conclusion 1- What is Digital Transformation (DT) in the African context? In my opinion, and according to the Draft Digital Transformation Strategy for Africa (2020-2030) (4), Digital Transformation consists of: An articulated set of initiatives: For example, by 2030, all African citizens should be digitally enabled and able to safely and securely access at least 6 Mb/s [megabits per second of Internet bandwidth] anywhere on the African continent, at an affordable price not exceeding 1 cts USD per Mb, via a smart device manufactured on the continent, at a price not exceeding 100 USD, to benefit from all basic electronic services and content, of which at least 30 per cent are developed and produced in Africa. Initiatives aimed at replacing analogue technologies (5). Actions based on digital technologies: for...

UGANDA: Reconstruction work has started on the 382 km metre-gauge railway line that links Tororo near the Kenyan border to Gulu on the northwest, Uganda Railways Corp has confirmed. The railway has not seen traffic for about three decades. A reconstruction agreement was signed on April 13 by the Ministry of Works & Transport, Uganda Railways Corp and China Roads & Bridge Corp. Rehabilitation works began on August 4 and are due to last two years, with the USh199·9bn project being fully funded by the Ugandan government. Work includes the relocation of utilities, rehabilitation of five steel girder bridges and construction of new level crossings. Tracks are to be relaid or refurbished, with older steel sleepers replaced with concrete to improve resilience against vandalism and permit an increase in line speed and capacity. Upon completion, URC plans to introduce passenger services and hopes to transport a minimum of 500,000 tonnes of freight by the 2025-26 financial year. Other improvements URC has now completed emergency rehabilitation works on the Tororo – Mukono route, and works on the Kampala – Mukono section started in April. Construction of a logistics hub at Gulu started in May 2020; this is being funded by the EU and the UK’s Department for International Development through TradeMark East Africa. Read original article

TradeMark Africa, in collaboration with the IOTA Foundation, is actively working to enhance trade efficiency across Africa by implementing advanced technology solutions. The IOTA Foundation’s partnerships with TradeMark East Africa and the European Union have led to significant advancements in the digitalization of trade processes. Aid for trade organization TradeMark Africa has been actively working on boosting trade and economic activity across Africa by adopting efficient technology systems. Recently, the CEOs of TradeMark Africa met with officials of the Kenya Revenue Authority to discuss the benefits of their previous investments and the customs efficiency. TradeMark Africa has been working on speeding up the clearance of goods, while decreasing dumping and diversion on the Northern corridor and thereby improving transparency. Aid for trade organization TradeMark Africa has been actively working on boosting trade and economic activity across Africa by adopting efficient technology systems. Recently, the CEOs of TradeMark Africa met with officials of the Kenya Revenue Authority to discuss the benefits of their previous investments and the customs efficiency. TradeMark Africa has been working on speeding up the clearance of goods, while decreasing dumping and diversion on the Northern corridor and thereby improving transparency. Read original article In addition to their work on customs efficiency and trade facilitation, TradeMark Africa is also exploring avenues to positively impact the healthcare sector, particularly in the realm of pharmaceutical trade. Recognizing the importance of affordable medication in enhancing public health across the continent, they have initiated discussions on the pricing of crucial drugs, including...

Lack of access to information on trade regulations, violence and harassment and lack of access to finance are hurting women and youth-led businesses in East African Community’s cross-border trade. This is according to the East African Women in Business Platform (EAWiBP). Women cross-border traders also often face discrimination at the borders where they have high chances of being harassed by border officials, especially when they travel alone, with cases where they are charged higher fees than men. Among the biggest impediments however is lack of information they need to navigate the complex trade rules and regulations despite the existence of a Simplified Trade Regime (STR) on customs procedures and documentation, leading to delays and penalties. “Information asymmetry is still a major challenge facing small-scale traders in the EAC region,” said Janice Kimaro, Regional Coordinator at the EAWiBP. About 47 per cent of women in cross border trade still use informal routes, according to a recent report by TradeMark Africa. This equates to more than half of the businesses, where 80 per cent of trading is run by women. According to TradeMark, the majority of the traders are unaware of Simplified Trade Regime (STR) on customs procedures and documentation, hence avoiding formal border posts leading to a higher cost of business. STR, provided under the EAC Customs Union, is aimed at attracting small traders transacting regularly in low-value consignments. The provision enables simplified certificate of origin, exempting consignments of goods that originate in the EAC and are valued under $2,000 (Sh292, 200) from payment of import duty in the EAC destination country. Speaking...