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Advancing Africa’s Industrialisation Through Regional Integration

Industrialisation is crucial for Africa’s development and the implementation of the African Continental Free Trade Area (AfCFTA) could provide crucial impetus in the coming years. Major challenges and opportunities for Africa’s transformation model present themselves continuously. African countries have responded to Covid-19 by resorting increasingly to digital solutions but to a lesser extent with greener, fiscal measures. Prospects for African manufacturing at this year’s Africa Industrialisation Day appear brighter than last year when Africa was in the middle of the largest economic crisis for decades. While economic recovery is still slow, appropriate support linked to the implementation of the AfCFTA can boost manufacturing prospects significantly. Progress in Africa’s manufacturing performance In a paper published earlier this year, Carlos Lopes and I argued that discussions around premature deindustrialisation (a decline in the contribution of manufacturing to GDP ahead of its normal development path) were in fact premature in relation to many African countries. Taking recent World Bank World Development Indicators (WDI) data for the subset for sub-Saharan African countries, the share of manufacturing in GDP in 2020 was 12%, the same as it was in 2002, but up from as low as 9.2% in 2010. Despite the downturn in 2020, annual growth in real manufacturing value added was 3.3% over the decade to 2020 (up from 3% in the previous decade), significantly better than the 2.8% (and 1.9% respectively) annual growth for the world as a whole. Some countries have really transformed their industrial sector in recent years. Morocco surpassed South...

Mombasa Port remains resilient despite Covid-19 effects

Effects of Covid-19 pandemic on Mombasa Port cargo in 2020 led to a marginal decline of 0.9 per cent while container traffic reduced by four per cent. However, acting Kenya Ports Authority Managing director John Mwangemi said notable resilience has been observed this year. During the January-September 2021 period, the Port handled some 26.17 million tonnes compared to 25.05 million tonnes in the corresponding period in 2020, noted Mwangemi. "This is an increase of 1.12 million tonnes translating to a growth of 4.4 per cent. In the same period, the port witnessed increased volumes in container traffic registering 1.1 million TEUs against one million TEUs recorded in a similar period in 2020, translating to an increase of 9.3 per cent," he added. He made the remarks during the annual KPA Corporate Golf Tournament played over the weekend at the Mombasa Golf Club, where he was represented by KPA General Manager Corporate Services, Edward Kamau. On ongoing key infrastructural projects being carried out by KPA, Mwangemi said the construction of the second container terminal (CT2) Phase II is on course. "Phase I has been operational since 2016. Phase II is ongoing and shall be ready by mid-2022. Once ready, the container capacity of the Port of Mombasa shall grow from 1.65 million TEUs to 2.2 million TEUs," he said. In regards to supporting the energy sector, the MD pointed out that KPA has progressed significantly in the construction of a bigger and modern oil terminal. He explained that the new Kipevu Oil Terminal will have facilities...

Forum national de développement du Burundi : quelle est la place de l’agriculture?

Du 18 au 19 novembre, autour du président de la République, des experts dans des domaines différents, des professeurs d’Universités, des banquiers, … ont inventorié des voies et moyens pour « faire du Burundi un pays émergent d’ici 2040 ».  Focus sur le secteur agricole.  Le rideau est tombé sur ce forum qui défrayait la chronique ces derniers temps. Ils sont partis avec le sentiment du devoir accompli et la conviction que le Burundi peut devenir un pays émergent d’ici 20 ans. « Les opportunités d’affaire ne manquent pas au Burundi surtout dans les secteurs stratégiques comme l’exploitation industrielle des mines, les infrastructures, l’agro-industrie, l’écotourisme, … », a déclaré le président Evariste Ndayishimiye, lors du lancement de ces assises. Le développement agropastoral serait très primordial dans ce combat. « Nous sommes un pays agricole où la pluie tombe neuf mois sur l’année et une population jeune prête à travailler. Ces atouts peuvent contribuer à l’augmentation de la production agricoles », a indiqué Christian Nibasumba, participant et représentant de TradeMark Africa au Burundi. Durant 48 heures, des exposés se sont relayés. Focalisons-nous sur celui du professeur Salvator Kaboneka, à savoir : « Comment accroître et améliorer la production agricole. ». Sans toutefois revenir sur les faiblesses du secteur, insistons sur les recommandations de cet expert pour booster le domaine agro-pastoral. D’abord, la gestion du sol. Ici, il propose le remembrement, la mise en commun et la gestion communautaire des terres. Il prône la libération des terres agricoles et la promotion de la villagisation. Au moment où, la ville de Bujumbura continue de s’étendre, le...

FEATURED: Outstanding tourism sector performers awarded

More than 15 private tourism business owners, private and public institutions were on Friday 26, awarded and recognized for showing resilience in the tourism sector despite challenges brought by the Covid-19 pandemic. Organized by the Rwanda Chamber of Tourism and partners, the 2021 Rwanda Tourism Awards, follows a week-long exhibition that brought together more than 50 tourism businesses and over 100 private exhibitors from the African continent. Speaking at the event Aimable Rutagarama, Chairperson of Rwanda Tourism Chamber lauded the efforts all the businesses have put in during the pandemic, adding that the awards are a recognition of the resilience they have shown. “Our sector was undeniably hit hardest by the pandemic, but many businesses did all they can to survive some even retained as many workers as possible, because tourism is not just about business but a corporate social responsibility as well,” “Although we do not have tangible results to start showing yet, by working together with all our partners we will revive the sector,” he said. Judith Uwimana, Chief Executive Officer of Judith Tours won Best Women Exhibitor, for empowering women in the tourism sector through her company. “When I started my company my aim was to fill the gap of women in the tourism sector, and now my company employs women only, and now being recognized and awarded for that, it is a boost of confidence and motivation to me and other women in the sector as well” Uwimana said. Among the awards won was the Best Southern African...

Kenya in the final stages of implementing AfCFTA

Kenya’s negotiators and implementers are in the final stages to make the Africa Continental Free Trade Area (“AfCFTA”) a reality for many Kenyan businesses. “Access to relevant and timely information regarding the implementation of AfCFTA is an important aspect of enabling businesses prepare and take advantage of the Agreement”. says Mr. Maurice Mwaniki, an Associate Director at PwC. He argues that local businesses want to know how ongoing negotiations will affect their strategies and whether the taxman, being the implementing agency, is ready to facilitate trade under the program. KRA Approves procurement & publishes AfCFTA documents The Kenya Revenue Authorityin August 2021 approved procurement and subsequent publishing of AfCFTA trading documents according to Ms. Kavata Mutuku, a representative of the Trade Facilitation arm at the Customs and Border Control Department. Ms Mutuku noted that the Customs system and procedures are currently being reviewed and aligned to accommodate trade under AfCFTA and that the tax authority is currently sensitising its own staff, the private sector and other stakeholders through a number of capacity building programmes. The AfCFTA could only come into force once it had been ratified by at least 22 countries; so far 42 countries are ratified, consequently, the Agreement was entered into force on 30 May 2019 with the initial expectation being that trade under the AfCFTA would start by 1 July 2020. Owing to the impact of the COVID-19 pandemic, the launch of the AfCFTA was postponed, eventually taking place on 1 January 2021, and thereby marking the official start...

Malawi, Mozambique relations get boost

He said: “A Mozambican President standing side by side with a Malawian President on Malawian soil and on friendly terms is a historical milestone and credit goes to Your Excellency for your solidarity and leadership in seeing that this history is made to unmake all past and future obstacles to the warm camaraderie between our sibling nations.” In his statement, Nyusi said when Malawi connects its railway at Marka to the Sena Corridor from Vila Nova de Fronteira de Mark, the country will be transporting bulky cargo at a lower cost. He said: “For instance, when this line is finally connected, Malawi can transport petroleum in bulk than what is happening at the moment and at a much lower cost. Benefits from this will trickle down to the common man. The same can be said about other commodities such as fertilisers.” Nyusi said reduced transport costs will also translate to low cost of fertiliser, thereby having a direct impact on Malawi’s agro-based economy. Chakwera expressed his gratitude for the bilateral relationship, saying: “I am delighted that our cooperation is backed by the legal instruments our two governments have just signed, in particular, the Revised Bilateral Trade Agreement and the One Stop Border Post Agreement which will simplify, harmonise and expedite border controls and enhance trade facilitation between our two countries.” Besides the bilateral agreements, Chakwera and Nyusi also launched the power interconnection project between Malawi and Mozambique to supply an initial 50 megawatts (MW) to the Malawi national electricity grid....

EAC sets out strategy for horticulture trade

EAC Deputy Secretary-General Christophe Bazivamo said that the fruits and vegetables value chain intra-trade strategy and action plan for 2021 to 2031 is projected to reach $25m in value with global exports attaining $1.3bn. The plan was unveiled at the EAC public-private dialogue on fruits and vegetables, where he said the EAC Secretariat worked on the trade of fruits and vegetables intra-trade issue as commerce at present stands at $9.9m. More investments are needed in nutritional and medicinal indigenous fruits and vegetable plants sub- sector, so as to improve production capacity, strengthen research and development, innovation, packaging, market access and trade facilitation. Other envisaged aspects are quality infrastructure, skills, policy coordination and elaborating a trade framework, he stated, highlighting that EAC bloc global exports of vegetables are billed to grow to $950m and fruits to $350m by 2031 from $416m and $125m respectively, at present. John-Bosco Kalisa, executive director for the East African Business Council (EABC) said horticulture contributes 20percent to 36 percent to the Gross Domestic Product (GDP) of EAC economies, urging the partner states to liberalize air cargo flights in the zone to enhance the consolidation of horticulture exports. EABC is committed to hosting and supporting the EAC Fruits and Vegetable Platform on its policy advocacy components such as addressing non-tariff barriers and regulations, along with costs that reduce export competitiveness in the region, he declared, laying the case for the EAC Secretariat to fast-track the development of the Sanitary and Phytosanitary Regulations bill to reduce post-harvest losses....

Locals frozen out of business opportunities at Kazungula one-stop border post, Finance Minister told

Minister of Finance Dr. Situmbeko Musokotwane yesterday visited Kazungula one-stop border post to check on operations. In his tour, Dr. Musokotwane advised Zambia Revenue Authority (ZRA) at the border to normalize economic activities so that local people can equally benefit from the benefits of having the bridge in the district. This was after Kazungula council Chairperson Ms. Mbozi Tatila requested for government’s intervention following the systematic barring of locals from benefiting from economic activities that came with the opening of the bridge in May 2021. All economic activities have been locked inside the new border with few monopolistic companies from outside the district. Insurance, clearing agents, mobile money service providers, restaurants, car wash businesses have all been affected because the border is now a One-stop border post and has restricted business inside the border to one business type in the aforementioned different sectors. Ms. Tatila suggested that it’s illegal to monopolize the business. The free-market policy that was introduced in 1991 should allow businesses to compete. The Finance minister advised that an open trading area should be identified by the Council outside the border facility to allow everyone to trade. Currently, as it stands no locals are allowed to carry out their business activities inside the border. Ms. Mbozi Tatila added that the Monopolistic trade tendencies on the border have also affected the council restaurant thereby affecting revenue. A meeting to normalize business activities at the border between ZRA and the council has been called upon. It is in this...

Call to enable smallholder farmers to access markets

Summary Investment and capacity building needed in SHPs’ organisations in order to assist them in organising, producing and searching for markets Dar es Salaam. Agriculture stakeholders have made recommendations on addressing the challenges facing smallholder producers (SHPs) in having access to domestic and international markets. The recommendations include better use of technology, improving infrastructure, access to finance, capacity building, reconsidering contract farming and investing in SHPs’ organisations. The proposals were presented on Friday during a breakfast debate organised by Policy Forum under the theme: Domestic and Export Markets: What are the opportunities and challenges facing smallholder producers? Tabling the presentation, the Agricultural Non State Actors’ Forum (Ansaf) executive director, Mr Audax Rukonge, said the use of technology in resolving the challenges facing SHPs would improve access to information, reduce labour dependency and increase shelf-life. “The youth with innovative ideas in the Information and Communication Technology (ICT), applications, mobile phones, radio and television should be assisted in increasing the bargaining power,” he said. On infrastructure development, Mr Rukonge said the public should invest in irrigation, cold-chains, ports, airports, roads and railway networks as well as in rural energy connections in order to build an enabling environment for primary processors. He said investment in the development of strategic storage facilities including warehouses close to border posts should be prioritised to increase efficiency. Regarding improving financing, he said innovative business credit packages to accommodate players, considering lease and purchase agreements, and integrated value chain funding, should be heightened. “Contract farming should be put into...

Harmonising standards key to AfCFTA success — Continental body

The Secretary General of the African Organisation for Standardisation (ARSO), Dr Hermogene Nsengimana, has called on African governments to strengthen their standards regulation agencies to position them as the springboard for economic development. He said standards played a critical role in the competitiveness of businesses and must be prioritised while the continent implemented the African Continental Free Trade Area (AfCFTA) agreement to reap the benefits of the world's biggest trade bloc. Dr Nsengimana made the call at the 65th meeting of the ARSO Council in Accra last Wednesday. The ARSO Council members, who are heads of the standards organisations of member states, have met in Accra to identify a means of facilitating seamless intra-Africa trade through harmonised infrastructure. The meeting is taking place amidst calls to accelerate the harmonisation of standards in the region to achieve the objectives of the AfCFTA. It is being held under the theme: “The beginning of trade among African countries under the AfCFTA Agreement: Boosting intra-African trade within the African single market through ‘One Standard–One Test–One Certificate–Accepted Everywhere”. Harmonisation In order to reap the benefits of the free trade agreement, Dr Nsengimana said the ease of doing business in the region must be deepened by eliminating trade barriers and harmonising standards. “When we talk about one standard, we are talking about harmonisation and we are looking at equal collaboration or mutual recognition arrangement so that we can help our private sector to trade from Ghana to Kenya or South Africa with one standard so that...