The UN Economic Commission for Africa (ECA) and Trademark East Africa (TMA) launched the National impact assessment report that presented the effects of the African Continental Free Trade Area (AfCFTA) on Uganda, during a national AfCFTA stakeholder consultation meeting on 31 October 2019. Emphasizing that regional platforms are “the way to go” for developing countries to overcome trade challenges, the Minister for Trade, Industry and Cooperatives; Amelia Kyambadde, used her opening statement as an opportunity to applaud the ECA/TMA partnership in supporting regional integration in Eastern Africa. Addressing key players from Government, civil society, academia and private sector, she suggested that the AfCFTA is an instrument for harvesting Africa’s many prospects, saying: “I see more opportunities in Africa than any other continent in the next ten years. AfCFTA is the way to go. I foresee interconnectivity, industrial growth, competition, entrepreneurial development, improved negotiation as a region, regional value chains, standards, and an opportunity to improve future negotiations”.  The Minister deemed the AfCFTA well aligned with Government priorities of transfoming Uganda into a developed economy through building productive capacity and market integration.  Having given credit to the crucial role Uganda played as chief negotiator and champion during the AfCFTA negotiations, the Minister gladly reaffirmed the Government’s commitment to the implementation of the agreement, which will be supported through various trade promotion and capacity enhacement programs.  What the AfCFTA means to Uganda  Uganda’s enthusiasm for AfCFTA is well founded. The forum proceeded to present an Impact Assessment Report, set out by Andrew...

TradeMark Africa has signed a partnership with African Union aimed at boosting intra-African trade and realisation of the ambitious Africa Continental Free Trade Area. The agreement was signed by Amb. Albert Muchanga, Commissioner for Trade and Industry, AU and Amb. Erastus Mwencha, TradeMark EA Board Chair and Frank Matsaert, CEO, TradeMark EA. Commenting about the development, Muchanga said, “AU is indeed excited to work with TMA, renowned organisation that has implemented successful trade facilitation programmes in East Africa. We want to complement our efforts in implementing the ambitious boosting intra African trade programme, leverage TMAs experience and ensure similar trade facilitation initiatives are implemented to boost trade and prosperity for the people in this region.” On his part,  Mwencha said: “This partnership with the African Union is an important milestone and embodies our vision for a prosperous Eastern Africa. TMA can help fast-track implementation of the AfCFTA by supporting the African Union (AU) programme for Boosting Intra-African Trade (BIAT). By implementing quick win measures to ‘thin’ borders and reduce the cost and time to trade along key corridors, TMA will help keep momentum going for this ambitious initiative to be realised, while countries are involved in the longer-term exercise of negotiating trade and tariff regimes.” TMA’s operations across eight countries, working with government, private sector and civil society to address high trade costs in Eastern Africa and support export growth, is well-positioned to support the African Union on its vision for an Integrated, Prosperous and Peaceful Africa, driven by its...

Our Reporter. The African Union (AU) has signed a partnership with TradeMark Africa (TMA) aimed at boosting intra-African trade and fast-tracking the realization of the Africa Continental Free Trade Area (AfCFTA) ) in selected Southern and Eastern Africa countries – Uganda, Kenya, Tanzania, Rwanda, Burundi, South Sudan, Ethiopia, DRC, Zambia, Malawi, and Mozambique . The agreement was signed in Addis Ababa this week by Amb. Albert Muchanga – the AU Commissioner for Trade and Industry, Amb. Erastus Mwencha – the TradeMark EA Board Chair and Frank Matsaert – the TradeMark EA CEO. Speaking at the signing, Amb. Albert Muchanga – the AU Commissioner for Trade and Industry noted that the ‘AU is indeed excited to work with TMA; renowned organisation that has implemented successful trade facilitation programmes in East Africa.’ Amb. Albert Muchanga said; “We want to complement our efforts in implementing the ambitious boosting intra African trade programme, leverage TMAs experience and ensure similar trade facilitation initiatives are implemented to boost trade and prosperity for the people in this region.” On behalf of TradeMark Africa, board Chair, Amb. Erastus Mwencha said, “This partnership with the African Union is an important milestone and embodies our vision for a prosperous Eastern Africa. TMA can help fast-track implementation of the AfCFTA by supporting the African Union (AU) programme for Boosting Intra-African Trade (BIAT).” “By implementing quick win measures to ‘thin’ borders and reduce the cost and time to trade along key corridors, TMA will help keep momentum going for this ambitious initiative to...

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The AfCFTA Forum in Tanzania raised awareness about AfCFTA implementation, and demonstrated the value of doing so. Organised by the UN Economic Commission for Africa (ECA) and Trademark East Africa (TMA), the Tanzanian edition of the AfCFTA forum was held in Dar es Salaam on Tuesday 22 Oct 2019 and was attended by policymakers, private sector and the civil society representatives. John Ulanga, CEO of Trademark East Africa (TMA) in Tanzania,  emphasised the importance of that forum, underscoring the role of development partners like TMA and ECA in raising visibility and understanding of the AfCFTA. Andrew Mold, Acting Director of ECA in Eastern Africa, made a presentation highlighting the potential benefits of AfCFTA.  “The implementation of the AfCFTA could result in welfare gains amounting to USD 1.8 billion for Eastern Africa and creating 2 million new jobs”, said Mold. Participants at the meeting affirmed that increased awareness of AfCFTA in the country is very essential. They also noted that harmonising standards across the region would tackle the issues associated with non-tariff barriers, and this translates as more – and more fruitful – trade within and between East African countries. Infrastructure will also prove instrumental in reducing the cost of doing business in Tanzania, and therefore holds another key for unlocking the full potential of AfCFTA. Meanwhile, the role of informal trade was emphasised, with it emerging that participants were keen to understand how the AfCFTA could move people into formal work. This Forum held in Dar Es Salaam is one in a...

The East African Community (EAC) is not ready for the fourth industrial revolution even as the wave sweeps across the world. This is according to experts who spoke at an industrial conference at the EAC Secretariat in Arusha this week organised by the United Nations Industrial Development Organisation (Unido) and German Society for International Cooperation. The Global Manufacturing Industrial Summit (GMIS) roadshow sought to explore the implications of the revolution for the region’s manufacturing, industrialisation and investment prospects. For us to achieve inclusive and sustainable industrialisation, we need to invest in advanced disruptive technologies like 3-D printing, Internet of Things, advanced robotics and drones, which will make manufacturing smarter, efficient and greener,” said Stephen Kargbo, Unido Representative in Tanzania, Mauritius and EAC Secretariat. He added that the advancement of these manufacturing technologies will also help improve acquisition of agro-industries, water and sanitation quality for the rapidly developing towns and cities. Most of these industrialised countries account for over 90 per cent of digital production technologies, have invested hugely in research and development campaigns and we have to move in that direction,” added Kargbo, who said there is also need for solid industrial policy. EAC first came up with an industrialisation policy for 2012-2015 but it failed to be implemented and was revised to 2021-2032. The contribution of manufacturing to the gross domestic product in East Africa is estimated at 8.9 per cent, which is considerably below the average target of about 25 per cent that all the five partner states...

The meeting is held during the “Africa Industrialization Week”, organized by the African Union from the 18th to the 22nd November 2019, according to the press statement from AFZO. The attendees include over 220 delegates representing 43 countries attended this important event, including 60 African economic zones, 30 experts, as well as several representatives of governmental authorities, international institutions and public and private organizations. Several international speakers representing international and financial institutions such as UNCTAD, UNIDO, UNECA, AfDB etc. shared during this event their expertise on effective means for economic zones development in Africa. the statement noted that various topics related to challenges and trends of African economic zones were addressed including strategic directions and effective governance model, contribution of economic zones for FDI growth and job creation, importance of logistics competitiveness within economic zones, skills development and training. The opening ceremony of the Africa Free Zones Organization’ 4th Annual Meeting was cochaired by M. Albert Muchanga the Commissioner for Trade and Industry of the African Union Commission (AUC), Ms Dagmawit Moges the Minister of Transport of Ethiopia, M Mehdi Tazi Riffi the President of the Africa Free Zones Organization. Serving the development of Economic Zones in Africa AFZO was founded back in 2015 by Tanger Med along with other African economic zones. Africa Free Zones Organization brings together the leading African economic zones and institutions in charge of the development, management and promotion of economic zones in our continent. The Africa Free Zones Organization aims to ensure: – Representation...

East Africa’s private sector players are concerned by the slow pace of resolving a common external tariff (CET) regime which is expected to usher in a free trade zone. A free trade zone will increase intra East African Community (EAC) trade, as there will be no duty on goods and services imposed amongst them. The regime will also agree on a common CET, where imports from countries outside the bloc will be subjected to the same tariff across partner states. Though Nicholas Nesbitt, the chair of East African Business Council, did not directly refer to the frustrations, it is an inference taken out of his statement when he said the issue was creating a “dilemma.” Council agenda Nesbitt said finalising the review on CET was part of an item on the council’s agenda, to be presented to the EAC council of ministers for delivery of quick wins for the region. “There are ongoing discussions whether to adopt a three-band or four-band structure with the highest rate of 35 per cent CET. The challenge is if you are a manufacturing country, you will want a high CET while trading countries will want a low CET to import finished goods for your citizens. Therein, lies the dilemma,” said Nesbitt. The implementation of CET is behind schedule, as it was to take effect on July 1, this year. The bloc’s member states had agreed there be a CET of zero per cent on raw materials and capital goods, 10 per cent on intermediate...

The African Development Bank (AfDB) has signed an unfunded $250-million (Shs920bn) Risk Participation Agreement (RPA) facility with ABSA – a pan-Africa financial institution with a solid presence in 12 African countries. The 3-year RPA facility was signed November 12, on the sidelines of the Africa Investment Form through its trade finance operations. Under this 3-year RPA facility, the Bank and ABSA will share default risk on a portfolio of eligible trade transactions originated by African Issuing Banks (IBs) and confirmed by ABSA. Leveraging the Bank’s AAA rating, ABSA will underwrite trade transactions issued by African issuing banks across key sectors like agriculture, energy, and light-manufacturing with a special focus on Small and Medium Sized Enterprises (SME’s)  in fragile and low-income African countries. The Bank’s commitment under the RPA is to assume up to 50% (and 75% in special cases) of every underlying transaction issued by the IBs, while ABSA will confirm such a transaction and bear not less than 50% of its underlying risk. Working with strategic partners like ABSA, the Bank’s  trade finance operations aim to facilitate inter and intra Africa trade by reducing the trade financing gap on the continent. Since 2013, the Bank’s RPA program has supported over 16 issuing banks with about US$650 million  limits in Southern Africa alone, with special focus on SMEs and local corporates in manufacturing, agribusiness, import/export and energy sectors. In the same period, the program supported over $4billion in trade volumes across Africa, with $938 million of that being intra-Africa trade....

For the first time, Africans need visas to travel to less than half of other African countries, the report finds. A record 87% of African countries either improved or maintained their score, an increase of 9 points from 2018. The biggest improvements were made by Ethiopia, which moved up 32 places to join the top 20 in terms of openness, mirroring the country’s progress in the World Bank’s Ease of Doing Business Index. Senegal’s move to introduce visas on arrival for some African countries and removing visas required before travel pushed it up into the top 10. Yet the freedom of movement that will be needed to make the Africa Continental Free Trade Area (AfCFTA) a success remains a work in progress. Africa’s infrastructure deficit was a central theme at the AIF, which highlighted the need to attract investment into large-scale railway and road projects. Such projects will both require and further stimulate the free movement of people. Only two African countries, Seychelles and Benin, offer visa-free access to all Africans. Higher income African countries are among the laggards. Seven out of eight of Africa’s upper-middle income economies have low visa openness scores, the report finds. Egypt, Morocco, Algeria and Cameroon remain near the bottom of the table. Trust deficit The absence of the protocol for free movement of persons was a notable omission from the agenda at the African Union Summit in Niger in July, according to a paper by Mehari Taddele Maru of the Migration Policy Centre at the European University Institute in Florence. The AfCFTA was launched at...