The value of Intra-COMESA total exports declined by 11 percent from Ksh.1.2 trillion (US$.10.9 billion) in 2019 to Ksh.1 trillion (US$.9.7 billion) in 2020 due to adverse effects of COVID-19 pandemic and pre-existing factors such as supply-side challenges and prevalence of Non-Tariff Barriers (NTBs). The low intra-regional trade resulted from existing gaps in information availability on trading opportunities, regulatory requirements in markets and factors that inform business decisions on production of goods and trade. This was revealed during an update that was presented at the ongoing 37th Meeting of the COMESA Trade and Customs Committee, October 13 – 15, 2021. Speaking at the opening of the meeting, Assistant Secretary General in charge of programmes, Dr Kipyego Cheluget observed that regional trade could flourish if Member States embraced the COMESA trade and customs facilitation instruments and policies. “If well implemented these could significantly increase intra-COMESA trade, reduce time and cost, increase regional competitiveness, create jobs and positively impact on living standards of our people,” he said. He also said that the implementation of regional commitments and full participation of all Member States in COMESA FTA required greater efforts and improvement. In 2020, COMESA developed COVID-19 guidelines and an online platform for exchange of information on movement of essential goods and services. The aim was to ensure safe trade continued across the region. The utilization of the platform is, however, still low and member states have been urged to mobilize national business bodies to ensure its full utilization not only to address...

This article dwells on “Effects of Berbera Corridor on Trade and Security in the Horn of Africa: the Case of Somaliland and Ethiopia”. Here, the Berbera corridor is presented as a strategic development effort to boost trade and economic integration between Ethiopia and Somaliland, and by extension, the Horn of Africa. Emphasis is made on the direction that trade links promote economic development and give citizens of the region to ponder about sustainable development and livelihood, and how these elements are likely to contribute to Gross Domestic Product (GDP) and Gross National Product (GNP). The article emphasizes the adage that “when a road passes, development follows”. The Berbera trade link has been discussed as a major contributor to the region’s political, economic, and social stability, and a timely remedy to poor land transport interconnectedness in the Horn of Africa. The article contributes to existing knowledge in that it captures the Berbera Corridor as an important contributor to the growth and development of Somaliland, Ethiopia, and the Horn of Africa. The Corridor has also been analyzed as attracting investment opportunities and generating economic activities that keep citizens focused on prioritizing peace and sustainable development options. Ayan Rashid Ibrahim Ayan Rashid Ibrahim is a researcher, lecturer, and head of the academic department of the Institute for Peace and Conflict Studies at the University of Hargeisa. Ms. Ayan engages in teaching, research, and other intellectual activities. She holds an MA in Peace and Conflict Studies from the University of Hargeisa, and two Bachelor’s...

Summary The main aim of trade facilitation in Customs is to expedite movement, release and clearance of goods across borders whilst ensuring safety and security of the trade supply chain. Trading Across Borders (Tabs) is one of the 12 World Bank trade facilitation indicators under the Ease of Doing Business Index. The current Tabs case study for Kenya examines border and documentary compliance of the exportation of tea, coffee, spices, herbs and importation of brand new motor vehicle spare parts. To facilitate trade across borders and enhance ease of doing business, there is need for the simplification, modernisation and harmonisation of export and import processes and procedures. Trade facilitation reduces the time to clear goods and cost of movement of goods and services across borders, and thus contributes to ease of doing business, which in turn stimulate growth and reforms for a country’s economy. The main aim of trade facilitation in Customs is to expedite movement, release and clearance of goods across borders whilst ensuring safety and security of the trade supply chain. Trading Across Borders (Tabs) is one of the 12 World Bank trade facilitation indicators under the Ease of Doing Business Index. As at June 30, 2021, Kenya was performing at 98 percent in as far as implementation of Tabs reforms is concerned. Trade facilitation measures entail reform and modernisation processes geared towards creation of a business enabling environment. This encompasses different types of interventions and activities put in place by the government to address the bureaucratic delays...

The East African Business Council (EABC) has signed a partnership with the Nelson Mandela African Institution of Science and Technology (NM-AIST). The partnership aims to bridge the skills gap and mismatch and upscale the digital transformation of the EAC bloc. PwC’s 22nd Annual Global CEO Survey findings have shown that 65% of African CEOs state that skills shortage prevent organizations from innovating effectively. According to East African Qualifications Framework for Higher Education (EAQFHE), Survey 2014, skills gap affect 77% of productivity, 42% efficiency and 8% competitiveness of businesses in East Africa. The agreement has proposed scientific and technical symposiums across the EAC bloc to commercialize innovations and research. These research propositions hope to improve collaboration on evidence research-based advocacy on agribusiness, health and industrial development and rolling out of professional. In his remarks, Prof. Emmanuel Luoga, Vice-Chancellor of NM-AIST said, “This partnership is built on shared values to solve societal problems, promote innovation and aspirations of Africa growth – Agenda 2063.” The Vice-Chancellor added that the partnership reinforces theoretical approaches with practical tactics responding better to industry needs in the EAC regional integration agenda. The Chief Guest Hon. John Mongella, Regional Commissioner of Arusha represented by Eng. Richard Ruyango, District Commissioner of Arumeru said, “The Government of the United Republic of Tanzania is committed to support the aspirations and implementation of the MoU between EABC and NM-AIS, as the East African people are the real beneficiaries of this remarkable partnership.” The signing ceremony was graced by Hon. Dr. Peter Mathuki,...

What you need to know: There is no clear, generally agreed definition of what South-South Cooperation includes. Many developing country governments have negotiated bilateral cooperation agreements in several areas. The concept of South-South Cooperation (SSC) is not widely recognised or understood by most citizens of developing countries, although they are meant to be its beneficiaries. Its purpose is to promote trade and the exchange of resources, technology and knowledge between developing countries in Africa, Asia, the Middle East and Latin America — the “South”. It is based on the premise that developing countries should be able learn much from one another without having to involve the industrialised countries of Western Europe, North America or Japan — the “North”. Its origins date back to the very beginnings of the “non-aligned movement” at the first Afro-Asian conference in Bandung, Indonesia, in April 1955, where many countries confirmed that they did not want to take sides between North Atlantic countries (many of whom had been colonial powers) led by the United States, or the Soviet bloc. Egypt, Ghana, India, Indonesia and Yugoslavia were the main countries involved in establishing the non-aligned movement in Belgrade in1961. In 1978, at a high level meeting in Buenos Aires, the UN adopted the term “Technical Cooperation among Developing Countries”. In the early 2000s, “South-South Cooperation” came into common usage. But despite its long history, SSC has not lived up to expectations of increasing trade and promoting cooperation among developing countries. First, there is no clear, generally agreed...

Zanzibar, 28th September 2021: The Ministry of Trade and Industrial Development, in partnership with TradeMark Africa (TMA), delivered Personal Protective Equipment (PPE) to be distributed to frontline workers in Zanzibar. This is part of TradeMark Africa’s wider support for mitigation measures against the spread of COVID-19 and continuous trade in Eastern and Southern Africa borders under its Safe Trade Emergency Facility Programme. Today’s symbolic handover will cover the needs of customs, immigration, security, and port health officials in Zanzibar for a period of 6 months. On his part, Principal Secretary Dr. Islam Seif Salum thanked TradeMark Africa for their support to the government’s efforts to fight COVID-19, further saying; “. The PPEs being handed over to the border officials will strengthen our government’s measures of making our borders safe and open for trade. Given the vulnerability and exposure of the frontline workers to the virus, protection of all border personnel is paramount in ensuring they work in safe and optimal working conditions so that trade continues uninterrupted.” The United Kingdom’s Foreign, Commonwealth and Development Office (FCDO), Ireland and Norway are funding Tanzania’s component of the TMA Safe Trade Emergency Facility (STEF) programme with a contribution of TZS 208,350,000(USD 90,000). Distribution of PPE is a key component of TMA’s Safe Trade Emergency Facility (STEF) programme, that was launched to respond to the rapid spread of the COVID-19 pandemic which has hit Eastern and Southern Africa’s border crossing points, causing some of the worst disruptions in history. The usually busy land borders...

John Bosco Kalisa, the East African Business Council (EABC)’s Chief Executive, was recently in Rwanda for a two days courtesy visit to engage local stakeholders on challenges and opportunities in the region. The New Times’ Aurore Teta Ufitiwabo spoke to him on tools for economy recovery, challenges in region and most affected sectors due to covid-19. Excerpts below: What are the top challenges you have seen in the regional private sector so far and what are the potential solution forward? So far there are a number of challenges and one is growing Non-Tariff Barriers (NTBS) to trade across the region. We see numbers of restrictions related to movement of goods and services as well as persons across region. Once those NTBS continue to grow it means it affects the intra-regional trade When you look at the statistics our intra-regional is declining from 20 per cent to now 13 per cent, it’s a big challenge and it’s demonstrated or revealed by the growing number of NTBs claiming. When covid-19 came in there were measures and they were very effective in terms of containing the spread but we have also realized that some have created trade friction and restricting trade as well as movement of persons. What are some of the potential solutions? So I am working on resolving some of the NTBs in terms of engaging and advocacy and research and ensuring that those NTBs hinder movements of goods as well as persons are moved. We also looked at Tax issues at regional level both domestic and even the current...

Vaccine inequity leaves people in developing countries vulnerable to new virus strains and slows down economic progress. Trade facilitation measures are a fast, cost-effective way to enable the smooth flow of vaccine supplies across borders to aid recovery. We outline how trade facilitation can address these key challenges and highlight the success of a project in Mozambique. As vaccine inequity hinders economic recovery in less-developed countries and threatens to reverse progress towards the Sustainable Development Goals (SDGs), trade facilitation measures offer a fast, cost-effective solution. From digitizing trade documents to cutting red tape and making border processes more efficient, they ensure vaccines travel more easily to those who need them most. While boosting COVID-19 vaccine production – especially in the countries with low immunization rates – resolving licensing disputes and eradicating trade barriers such as export restrictions are also vital for equitable vaccine access, they require significant time and investment. In contrast, implementing trade facilitation measures – as laid out in the WTO Trade Facilitation Agreement – can reap results within months rather than years, and ensure that when vaccine supplies do ramp up, they flow quickly to where they are needed most. Facilitating trade in COVID-19 vaccines also brings long-term benefits for countries’ broader health systems and economies, reducing the future cost of importing anything from perishable foods to pharmaceutical inputs. Why vaccine inequity matters According to the Global Dashboard for Vaccine Equity, a joint initiative of the United Nations Development Programme (UNDP), the World Health Organization (WHO) and the University of Oxford, just 2.14% of people...

RWANDA – The National Agriculture Export Board (NAEB) of Rwanda has officially launched the operations of its newly acquired modern coffee sorting and grading equipment worth US$1.15 million. Through the TradeMark Africa (TMA), USAID funded the procurement, delivery, installation, and operationalization of the coffee sorting and grading machines worth US$1.159 million. While the Kingdom of the Netherlands provided funding for coffee sorting tables worth US$ 217,000 under the regional TMA Safe Trade Emergency Facility. According to the NAEB Chief Financial Officer, Andre Ndikumana, “The equipment will considerably expedite operations. It is expected to reduce the costs incurred in manual sorting, improve the quality of the coffee, and enable Rwanda to better compete in international markets efficiently. ADVERT “This increased capacity will also greatly benefit the 32 coffee producer co-operatives that we serve.” In addition, farmers are expected to collect higher premium on their coffee as quality increases. One of the ways to achieve this is to remove barriers to trade in Eastern and Southern Africa and improve the competitiveness in the private sector, as expressed by TMA Country Director, Patience Mutesi. “One of the barriers is that it used to take about twelve days to fill a 40-foot container with coffee. With this machine, sorting will take less than a day,” she said. The new coffee grading and sorting equipment falls under TMA’s program to support Rwanda in meeting international Sanitary and Phyto-Sanitary Standards (SPS) of its agricultural produce to be able to access high-yielding international markets. With faster operations and improved...

At a time when the world has been shaken and businesses have been worst hit, it is now clear that future-proof establishments must adopt innovative practices to stay resilient.  Speaking during the World Trade Organization (WTO) Public Forum is driven by TradeMark Africa, Bidco Africa’s Group Director – Chris Diaz emphasized the need for collective responsibility bringing together the public and private sector players to realize the alignment and seamless operations of trade through digital technologies. “The East African region is an entrepreneurial hub and with the private sector’s contribution of more than 60% of the GDP, the economic growth potential steered by SMEs and MSMEs is massive in job creation. Adopting digitalization is at the centre stage to realizing this great vision of our motherland,” said Mr Diaz.  Bidco Africa’s Group Director – Chris Diaz Mr Diaz who is also a Director at the East African Business Council (EABC) lauded the WTO Director-General Dr Ngozi Okonjo-Iweala for her leadership and championing joint Stakeholder Engagement of players across the Eastern Africa region which has seen up to 3% economic growth, in line with the African Continental Free Trade Area (AfCFTA) spirit. With the adoption in place and the resilience in trade, we will realize the free flow of goods and services, growth of trade and eventually globalization of markets. Together with the Trade Counsellor for Kenya European Union, KRA’s Deputy Commissioner for Customs and Border Control, the Chair at All-Party Parliamentary Group and the Trade Mark CEO, the forum emphasized the need to embrace...