Every day, millions of African small traders embark on a journey across land borders, fraught with challenges, determined to put food on their tables, send their children to school, and secure a decent livelihood. These unsung heroes are the lifeline of Africa’s informal trade sector, accounting for 30% to 72% of trade in many African economies. Yet, their remarkable resilience and contributions often go unnoticed due to the cash-based nature of their transactions. In 2024, Africa is poised for a historic transformation as we accelerate the implementation of the African Continental Free Trade Area (AfCFTA). This landmark agreement holds the promise of uniting diverse nations, spurring economic growth, and reducing dependence on external markets. However, amid this optimism, the plight of cross-border traders, many of whom are women and youth, have come into sharp focus. To truly understand the daily hardships faced by these traders, the AfCFTA, Smart Africa, and the Better Than Cash Alliance‘s Secretariats conducted visits to pivotal border locations. These interactions shed light on the challenges they confront and the untapped potential that lies within their grasp. Today, intra-African trade remains inaccurately measured and vulnerable to substantial financial losses due to its reliance on cash transactions. One critical hindrance to financial inclusion and digital trade is the lack of interoperability of digital payment systems, particularly for micro and small traders who dominate Africa’s economy, especially at land borders. Additionally, the recurring use of third currencies in cross-border trade payments places a significant burden on national foreign exchange...

Grain production in East Africa has received a boost after the United States (US) Government offered a three-year grant worth US$2 million (Ksh324 million) to the East African Grain Council (EAGC), aiming to increase production in the region. Through the United States Agency for International Development (USAID) Economic Recovery and Reform Activity (ERRA) program delivered by the Trade Mark Africa (TMA) with funding from Feed the Future, the initiative aims at strengthening the competitiveness of export-oriented staple food value chains in East Africa. Through the five-year ERRA US$75 million (Ksh12, 150 million) program, USAID and TMA are driving transformative trade and investment reforms in the East and Horn of Africa to create jobs in the staple crops and textiles sectors, especially for women and youth. A core part of this effort is to increase the ability of grain producers to export both regionally and to the rest of the world. The grains sector has immense potential for food production and trade but has been hindered by low production rates, poor post-harvest management, and the devastating effects of climate change. Speaking during the signing ceremony held in Nairobi, TMA’s CEO, Mr David Beer, revealed that the strategic collaboration with EAGC and USAID will boost grain exports within the region. “This includes spearheading innovative strategies such as Grain Business Hubs. They will be operated by farmers who will leverage technology to improve grain quality and drive up trade,” Mr Beer said. The challenges around grain production contribute to low competitiveness in the...

Explore how the AfCFTA protocol, guided by Dr. Maxime Houinato, is breaking barriers and empowering women traders in East and Southern Africa through gender-responsive economic policies. In the bustling markets of East and Southern Africa, a revolution is quietly unfolding, spearheaded by the African Continental Free Trade Area (AfCFTA) and championed by Dr. Maxime Houinato of UN Women. Amid the vibrant chaos of commerce, an innovative protocol emerges, designed to weave gender equality into the fabric of trade, promising an era of inclusivity and empowerment for women traders. Challenging the Status Quo For too long, women in trade have navigated a labyrinth of challenges, from the menace of violence in informal trade sectors to the persistent plague of income inequality. The AfCFTA, under the guidance of Dr. Houinato, is poised to dismantle these barriers. Inspired by the Beijing Platform for Action and the Maputo Protocol, the newly adopted protocol is not merely a policy document but a beacon of hope. It aims at ensuring fair wages, providing social safety nets, and removing barriers that hinder women's full participation in trade. Integrating Gender Equality into Economic Policies The importance of integrating principles of gender equality into the economic policies of the AfCFTA cannot be overstated. This approach not only supports the rights of women but also promotes sustainable development across the continent. By focusing on measures that support caregiving duties and bridge the income gap, the protocol aims for an equitable distribution of the benefits of economic growth. The emphasis on gender-responsive...

The direct costs of non-tariff barriers (NTBs) in the East African Community (EAC) is estimated at $16,703,970, with the total trade impact being $94,918,000, a new report shows. The EAC Regional Meeting Committee report (2023) shows that trade has decreased by an average of 58 percent. Tanzania and Uganda have been cited as having the highest number of unresolved NTBs, with Tanzania having four unresolved issues, Uganda, three, and Kenya and South Sudan having one each as at February 2024. NTBs, which are obstacles to international trade that are not import or export duties, have taken the form of import quotas, subsidies, customs delays, and technical barriers impeding trade, have been a hindrance to intra-EAC trade. The EAC Sectoral Council of Trade, Industry, Finance and Investment meeting in Arusha on February 9 chaired by William Anyuon Kuol, Minister for Trade and Industry of South Sudan and chairperson of the Council, resolved to have the NTBs resolved by June, pushing the partner states to hold bilateral meetings to resolve them. Addressing the Council on the matter, EAC Secretary-General Peter Mathuki said that while in the financial year 2021/2022, intra-trade reached $8.7 billion, followed by an increase to $9.4 billion in 2022/23, NTBs continued to pose threat to trade in the region. “This demonstrated a robust trading environment among EAC Partner States, with a notable growth of approximately 7.98 percent,” Dr Mathuki said. “However, there is a need for ministers to address issues relating to denial of preferential market access for EAC-originating...

TANZANIA: THE Tanzania Women Chamber of Commerce (TWCC) in collaboration with Trade Mark Africa has launched youth wing to empower them skills to achieve business goals. The event was graced by Ilala District Commissioner, Edward Mpologo who represented the Deputy Minister of State, in the Prime Minister’s Office (Labour, Youth, Employment and People with Disability), Patrobas Katambi. Mr Mpogolo commended TWCC for remembering youth wing, an initiative which targets to help women to build their capacity in raising families and boost the economics of their families and nation at large. “This collaboration aims to empower young individuals by providing them with the necessary skills, resources and support so that they can thrive in the world of business,” he said. About 300 women and 40 youth attended the event that was accompanied by a seminar and some presentations from entrepreneurship trainers, all of which aimed to empower them with skills and commitment for achieving commercial and business goals. Youth are the engine of the development of all countries world-wide. The population of our country which is 61 million, among whom 34 million are Youth. In 34 million youth, 11 million are female youth while 10 million are male. He said by involving 34 million young people in empowering them with knowledge and entrepreneurship skills the initiative helps the important group to boost its economy. The meeting provided a platform for women entrepreneurs to connect, share experiences, and explore opportunities for collaboration. Attendees also had the chance to engage with likeminded individuals, gain...

TradeMark Africa has received a $63 million (Sh9.9 billion) grant from the Netherlands towards sustainable and inclusive trade initiatives in the continent. The investment running to 2030 will help strengthen trade systems, benefitting local traders and Dutch businesses, fueling economic growth, and nurturing sustainable livelihoods across various sectors in Africa. "The government of the Netherlands, through its Ministry of Foreign Affairs, in a significant boost to global trade development, has announced a $63 million funding to TradeMark Africa, a leading aid-for-trade organisation," read a statement from TradeMark, formerly TradeMark East Africa. The investment is expected to improve market access for local products at the global level, in addition to bolstering initiatives that drive innovation, research, and development within the African market, enhancing competitiveness and green trading practices. "TradeMark Africa will significantly contribute to a more inclusive and prosperous trade landscape for the African continent, benefitting both African and Dutch businesses," said Mr Marchel Gerrmann, ambassador for business and development cooperation at the Dutch Ministry of Foreign Affairs. TradeMark Africa was established in 2010 as an aid-for-trade organisation aimed at growing intra-African trade and increasing the continent’s share in global trade. “We are excited to continue this partnership, focusing on the trade challenges of the coming years – not least ensuring Africa is a pioneer in green trade, and that the benefits of trade corridors reach people and geographies in most need of the economic boost that they bring,” said the company CEO, David Beer. “These programmes will contribute to a...

KAMPALA –In a game-changing move, the Kenya Ports Authority (KPA) has garnered praise from a cross-section of Kampala traders, for introducing Kargo Pay, a cutting-edge electronic payment system. This alternative cargo payment mode is set to revolutionize efficiency and expedite the settlement of port charges. One of the traders lauded the new system as a game-changer in the clearing process, predicting significant time savings and improved turnaround for traders. Clearing goods at the port, a historic challenge for traders is set to become a streamlined and secure process, sparing them from the hassles of physically transporting large sums of money to Kenya. Another trader also emphasized the newfound convenience of Kargo Pay, allowing traders to clear goods remotely, even during night hours, from the comfort of their homes—an unprecedented advantage in their trade endeavors. The system launched as a response to evolving industry needs in 2023, has been warmly received for its ability to facilitate transactions in the local Ugandan currency, a feature that aligns seamlessly with traders’ preferences. Christened “Kargo Pay”, this system not only champions currency flexibility but also introduces alternative payment methods such as bank cards and mobile transfers. By eliminating the need for physical visits to banks, Kargo Pay enhances convenience, providing a transformative solution for the clearing of goods. Kargo Pay has potential to alleviate clearing of cargo headaches. While recognizing the app’s benefits, traders suggested improvements to it, showcasing the traders’ openness and enthusiasm to embrace digital solutions that enhance operations. KPA, during a...

East Africa is taking giant strides towards eliminating Non-Tariff Barriers (NTBs), a move that promises to revolutionize trade in the region. The East African Community (EAC) Secretariat, in collaboration with Partner States, has developed and launched a mobile application aimed at easing the reporting, monitoring, and elimination of NTBs. The application, a first of its kind in the region, was unveiled on February 14, 2024, and is expected to significantly reduce trade barriers. This comes as experts in the region are urging for increased trade in agricultural, pharmaceutical, and leather products to stimulate East Africa's economy. Harmonizing Standards and Simplifying Export Procedures In the agricultural sector, emphasis is being placed on harmonizing agricultural and food safety standards, developing quality planting seeds and seedlings, and adopting a code of conduct for farmers and exporters. To facilitate this, Ministers have directed Partner States to simplify export procedures for agricultural products like avocados and other fruits and vegetables. The Secretary General of the EAC has highlighted the growth in intra-trade values, emphasizing the importance of addressing issues hindering trade within the region. "The removal of NTBs is crucial in promoting trade and investment within the EAC," the Secretary General said, "and this mobile application is a significant step towards achieving that goal." Boosting Pharmaceutical and Leather Sectors In the pharmaceutical sector, initiatives such as Biovax vaccine manufacturing plants in Kenya and a BioNTech plant in Rwanda are ongoing. The EAC partner states are encouraged to expedite pharmaceutical waste disposal approval processes and develop harmonized...

What you need to know: The East African Community (EAC) partner states have been directed to gear up for the App’s operationalization by April 30 this year Arusha. A new mobile App intended to fight trade barriers in East Africa will be rolled out soon. The East African Community (EAC) partner states have been directed to gear up for the App's operationalization by April 30 this year. The facility has been developed to ease the reporting, monitoring and elimination of non-tariff barriers (NTBs) in the bloc. This allows the users to report the complaints in any of the three official languages of the EAC, which are English, Swahili and French. The App can be downloaded from the Apple Store, Google's Play Store and other such stores. It can be accessed through https://eac-mobile.portal.africa, according to a statement from the EAC secretariat. The directive to roll out the App by April 30 was made at the ministerial meeting of the EAC held in Arusha last Friday. The App was developed with the support of Trademark Africa and finalised and piloted during the National Monitoring Committee (NMC) meetings last year. The App was officially launched in December last year in Bujumbura by the EAC secretariat but is awaiting formal operationalization. According to the EAC secretariat, operationalization of the App in April 30 will be preceded by sensitization and capacity building for relevant public and private sector officials and other stakeholders. NTBs have been a major hindrance to the free movement of goods as...

PRESIDENT Emmerson Mnangagwa has called for a speedy establishment of a one-stop border post between Zimbabwe and Botswana. He said this while addressing delegates attending the 4th Zimbabwe-Botswana Binational Commission Summit underway in Botswana. “The unrestricted movement of our citizens as well as goods and services is an essential cog to stronger economic cooperation. In this spirit, the establishment of the One Stop Border Posts should be expedited,” he said. In the same vein, the President said the proposed railway line between Botswana, Mozambique and Zimbabwe must be pursued as it will promote rail connectivity in the region. “The development of cross border infrastructure projects to increase our economic efficiencies and competitiveness must be pursued with greater vigour and confidence. The proposed railway line between Zimbabwe and Mozambique (known as the Ponta Techibanjne Inter-Regional Heavy Haul Railwa Project) is highly anticipated for greater rail connectivity in the region.” President Mnangagwa also called for investment and cooperation by the private sectors in the renewable space to support industrialisation of economies. The 4th Zim-Botswana Bi-National Commission is set to further solidify the already strong bond between the two neighbouring countries as well as unlock avenues for collaboration. Read original article