The Food and Agriculture Organization of the United Nations (FAO) and the African Union Commission’s Department of Agriculture, Rural Development, Blue Economy and Sustainable Development (AUC-DARBE) have launched a guide to boosting intra-African agricultural trade under the new African Continental Free Trade Area (AfCFTA) agreement. The AfCFTA began trading on 1 January 2021 and is the largest free trade area in the world in terms of the number of countries covered. It represents a market of 1.2 billion consumers. The Framework for Boosting Intra-African Trade in Agricultural Commodities and Services is a blueprint for expanding agricultural trade between African countries and aims to unlock the potential of the agricultural sector to contribute to sustainable and inclusive growth for Africa. Increased trade represents a paradigm shift away from business as usual and is an important part of the collaborative work towards boosting food security and nutrition for all Africans. “The Framework provides a timely catalyst for the transformation to more efficient, inclusive, resilient and sustainable agri-food systems, sustainable development and prosperity in Africa. A key priority is the pursuit of industrial transformation policies and programmes that support the private sector to add value to African exports, compete with imports from outside Africa and expand opportunities for job creation,” FAO Assistant Director-General and Regional Representative for Africa Abebe Haile-Gabriel, African Union Commissioner Josefa Sacko, and AfCFTA Secretary-General Wamkele Mene jointly stated in the publication’s foreword. Africa is a net food-importing region of commodities such as cereals, meat, dairy products, fats, oils and...

ANKARA (AA) – Africa needs to step up productive and infrastructural integration amid COVID-19 economic recovery process, suggested a report. African Regional Integration Index (ARII), a joint publication of the UN Economic Commission for Africa, the African Development Bank and the African Union Commission, provides up-to-date data on the status of regional integration in Africa. The report assessed the regional integration status and efforts of the countries that are members of the eight regional economic communities recognized by the African Union. The report welcomed the recent endorsement of the African Continental Free Trade Area (AfCFTA) by more than 50 African countries. “It is time for quantum leaps. Regional integration is the glue that will make that happen.” AfCFTA is a free trade area founded in 2018, with trade commencing as of Jan. 1 2021. It was created by the African Continental Free Trade Agreement among 54 of the 55 African Union nations. Africa’s economic growth is projected to exceed 4% in 2019-2020, an increase from 3.5% in 2018. The report said for free trade to happen seamlessly, African countries need to implement the Protocol on the Free Movement of People, which will in turn enable traders and investors to operate beyond their national borders. Spurred by AfCFTA, more than 40% of African countries are projected to post growth of at least 5% this year as commodity prices rise and domestic demand and infrastructure investments boost growth, according to the report. Jean-Guy Afrika, the African Development Bank’s Acting Director for the...

What you need to know: Lately, the UK-Africa relationship has been dominated by trade and investment issues. At the same time, the African Continental Free Trade Agreement (AfCFTA) gives hope to millions on the continent. As one of Africa’s leading economic partners, the United Kingdom has played a huge role in shaping policies across the continent over the years. Decades after independence, London still occupies a special place in many African capitals. As Britain explores new trade deals after its formal separation from the European Union, will Africans leverage the changes to their advantages? Will the UK and Africa work together to create opportunities for their people? Lately, the UK-Africa relationship has been dominated by trade and investment issues as London seeks to improve its relationship with countries across the globe. At the same time, the African Continental Free Trade Agreement (AfCFTA) – a pillar in the march towards a border-free Africa – gives hope to millions on the continent despite the Covid-19 pandemic that has ravaged economies the world over. Appreciating the context of what post-pandemic growth looks like will afford the interests stemming from the UK-Africa relationship a fighting chance in seeking a balance between intercontinental and intra-continental trade and investment deals. No longer tethered to the EU’s trade agreements, London’s post-Brexit agenda focuses on manoeuvring its relationship with individual states. Prime Minister Boris Johnson stated at last year’s UK-Africa Summit that Britain had all it took to become Africa’s “obvious partner of choice”. In this vein, the UK...

For decades, African women have been trapped in poverty cycles due to several underlying factors including unequal access to education, factors of production, and trade facilities; inequitable labour saving technologies; underpaid or unpaid labour; harmful cultural practices; and limited legal protection from gender inequality practices entrenched in society. To break the cycle of poverty and inequalities, the African Union continues to advocate for the development and implementation of policies and legal; frameworks that will create a wider array of opportunities for women, and which will lead to their economic empowerment at the national and regional levels, and ensuring that the development envisaged for Africa is inclusive and sustainable. With the launch of trading under the African Continental Free Trade Area (AfCFTA) in January 2021, the expectations are high as relates to the expanded business prospects for women-led businesses, which will unlock the potential for African women to grow their businesses from micro to macro enterprises. The Agreement establishing the AfCFTA recognises the need to build and improve the export capacity of both formal and informal service suppliers, with particular attention to micro, small and medium size enterprises in which women and youth actively participate. Furthermore, the AfCFTA Protocols on Trade in Goods, Trade in Services, Investment, Intellectual Property Rights and Competition Policy, provide clear guidelines to ensure emerging enterprises and infant industries are protected thus adding impetus to the Agenda 2063 goals of gender equality, women empowerment and youth development. Through the AfCFTA, informal and micro and small enterprises will...

Summary Sizeable drop in the number of projects and project value largely blamed on region’s inability to meet financing costs due to the effects of coronavirus. Eastern African countries cut $68.3 billion spending on infrastructure projects last year, the largest decline in number of projects and value of projects in sub-Saharan Africa in a year. This is as a result of the economic fallout from the Covid-19 pandemic sweeping across the region, hitting public finances and pushing governments into massive indebtedness. The Africa Construction Trends Report (2020) by consultancy firm Deloitte released last week shows that the number of infrastructure projects in the region covering Burundi, Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Rwanda, Seychelles, Somalia, Tanzania and Uganda dropped by 35 per cent to 118 in 2020 from 182 in 2019 while the total value of the projects declined by 47 per cent to $77.7 billion from $146 billion in the same period. Infrastructure projects in the transport sector accounted for 51.5 per cent ($40 billion) of the region’s total projects, followed by energy and power (23.5 per cent) and the shipping and ports (21.5 per cent) sectors. According to the report, the sizable drop in the number of projects and project value largely resulted from the region’s inability to meet financing costs due to the effects of Covid-19 pandemic resulting in the suspension of several projects. For instance, the Ethiopian government’s interest in renegotiating payment schedules for the Addis Ababa-Djibouti Railway and Addis Ababa-Sebeta-Mieso-Dewale Road Project, led to thinned financing...

In this edition of Business Day Spotlight, we talk about the performance of economies in the SA Development Community (Sadc) and East Africa regions. Host Mudiwa Gavaza is joined by Jacques Nel, head of macroeconomic research for Africa at NKC African Economics, to chat about the issues. Join the discussion: Starting with news from some of SA’s close neighbours, Nel says the muted performance of the local economy has had a negative effect on the growth prospects of the region. As an economy that anchors the Sadc region, Nel explains that the fortunes of SA’s economy have a direct effect on neighbouring economies. A drop or stagnation in local economic performance, therefore, weighs on the region. Business Day Spotlight host Mudiwa Gavaza. Picture: DOROTHY KGOSI. Heading into lockdown, SA was already expected to grow at less than 1%, seeing a huge contraction brought about by Covid-19 and subsequent lockdowns. Nel explains how neighbouring countries have performed, in the light of this apparent reliance on SA, focusing specifically on Botswana, Namibia and Mozambique. Shifting to East Africa, Nel says the region has been resilient, having entered lockdowns with good growth prospects. For now, he expects that momentum to continue with faster growth projected for the region. The discussion focuses on the economic performance of countries in the Sadc region, specifically Botswana, Namibia and Mozambique. It then looks at growth in East Africa, progress made in terms of vaccinations and an outlook for the two regions. Read original article

Tanzania President Samia Suluhu Hassana’s first state visit to Uganda has signalled the revival of East Africa’s energy arena. President Samia made her first trip outside Tanzania as head of State on Sunday, April 11, since she took oath of office on March 19 following the death of her predecessor John Pombe Magufuli, who succumbed to heart disease last month. Samia met her Ugandan counterpart Yoweri Kaguta Museveni and agreed to support and show their commitment to the realisation and implementation of the strategic East African Crude Oil Pipeline (EACOP) project. The agreement was made on Sunday at the State House in Entebbe during the bilateral talks. Accelerating the Uganda-Tanzania Energy Relationship In May 2017, both countries signed the Intergovernmental Agreement (IGA) on the implementation of the project. The last meeting regarding the project was held in September 2020 between Museveni and the late Tanzania president John Magufuli at Chato, Tanzania, where they agreed that each party was to conclude the host project, commence negotiations of pending agreements, and expedite the implementation. The meeting between the two leaders is a sign of commitment to conclude the project that was well supported by Magufuli who died on March 17, 2021. In their agreements, they said that all the outstanding issues related to the project have been amicably resolved. The Shareholding Agreement was also signed by all the stakeholders during the meeting. That having concluded the Tariff and Transportation Agreement and the host Government Agreement for Uganda and the Shareholding Agreement for...

With an enormous market presented by the African Continental Free Trade Area (AfCFTA), it is incumbent upon the Southern African Customs Union (SACU) private sector to seize and capitalise on the opportunities to grow their business through regional value chains and cross-border trade, SACU Executive Chair, Paulina Elago said. Elago said this when SACU Member States, Botswana, Eswatini, Lesotho, Namibia and South Africa came together for the first time since launch of the AfCFTA on 1 January 2021, to discuss issues related to the implementation of the trade bloc. During the virtual meeting attended by representatives from member states, the private sector and the Secretary General of the AfCFTA Secretariat, Wamkele Mene, Elago said without the participation of the business sector, efforts made towards increasing cross-border trade will be meaningless. She said the SACU Council of Ministers has agreed to prioritise industrialisation through the development of Regional Value Chains, Export and Investment promotion. “To that end, the region is currently undertaking technical work to outline a systematic approach and practical steps to scale up the region’s industrial base and to strategically positioning itself to take full advantage of the opportunities offered by the AfCFTA,” Elago said. She highlighted the importance of the Trade Facilitation component, expaling that SACU has, through its Customs Modernisation Programme, laid the groundwork that will enhance efficiency in Customs operations. SACU Member States Customs IT Management Systems are now linked to automatically exchange information. A full presentation on the SACU Customs Modernisation Programme will be given...

THE East African region is gearing to tap into opportunities emerging from the upcoming German Hannover trade fair (Hannover Messe), slated for the 12th -16th April this year. Hannover Messe is the world’s largest and impactful trade fair for promoting industrial technologies, usually held annually in Hannover City, Germany. This year, the fair will sustain its innovative knack as a hybrid knowledge and networking platform, allowing East Africans to participate virtually. The East African Business Council (EABC) in partnership with GIZ- Business Scouts for Development Programme, funded by the German Ministry for Economic Cooperation, BMZ today held a webinar to explore challenges and risks inhibiting industrial transformation in the region and shared insights on opportunities that the bloc can benefit from participating in the fair and its huge conference programme. Additionally, the webinar acted as a kick-off for an upcoming virtual fair training for business organisations fair organisers slated beginning May, 2021; courtesy of Business Scouts for Development. Speaking during the event, EABC Chief Executive Officer (CEO), Dr Peter Mathuki called for digitalisation in the region and exploration of partnerships to diversify the manufacturing base. “Industries in East Africa have been able to repurpose and transform amid the pandemic. Strategic partnerships between Europe and East Africa should build the capacity of industries to tap into the opportunities of the EAC Common Market and African Continental Free Trade Area of 1.3 billion consumers,” Dr Mathuki said. Foreseen opportunities of the Hannover Fair include: exploration of latest developments and know-how within the...

BULAWAYO, Zimbabwe (IDN) — The long-awaited African Continental Free Trade Area (AfCFTA)—set to be the world’s biggest free trade zone by size—which entered into force on January 1, 2021, promises a new era for African trade. An Africa-wide free-trade pact could bolster the region’s income by $450 billion and lift 30 million people out of extreme poverty by 2035, if accompanied by significant policy reforms and trade-facilitation measures, according to the World Bank. When fully operational, the Free Trade area will create a market of 1.2 billion and drive a combined GDP of $2.5 trillion. Dr Wim Naudé, Professor of Economics at the Department of Economics with the Cork University Business School in Ireland, explains: Trade is one of the great engines of economic growth and prosperity as it allows countries to specialize in production and diversify in consumption. Specialization in production allows for learning, innovation and higher productivity. Exchanging this for goods from elsewhere leads to higher consumption and welfare than what a country would be able to achieve in economic independence. “The free trade area will strengthen all of these effects as there will be fewer barriers to access markets, larger markets, more choice for consumers, more competition to pressurize firms to be more productive,” Naudé tells IDN in an interview. Here important excerpts: Question: Given the differences in economies across Africa, not to mention different trade policies, and in many cases barriers that exist in Africa, how do you see this free trade area harmonizing trade in...