Dr. Olusola Oloba, the Agriculture Sector Coordinator at the Secretariat of the National Action Committee of AfCFTA, Abuja, in this interview with EHIME ALEX, explains why AfCFTA may take longer time to realise its objective Could you bring us to speed with what African Continental Free Trade Area has been doing since it commenced work in January? The African Continental Free Trade Area is a trade body that aims to create a single market for goods and services in Africa, while the AfCFTA agreement is one of the major trade components that explain economic integration and talk about free trade. We also have the Customs Union. This happens when state parties begin to look at common external tariffs. Precisely, AfCFTA came into play in May 2019 after about 22 states ratified the agreement. But Nigeria signed the agreement in July 2019, making her the 53rd out of the 55 countries in Africa. What the agreement aims, majorly, is to create a single market for goods and services in Africa, as well as liberalise the market. When people are free to move across borders, goods and services are also free to move. It also contributes to the movement of capital and persons. What do I mean by this? The second phase of the agreement intends to look at what we call “cross-border investment” – the possibility of countries investing in other countries within the continent; for instance, a business tycoon from South Africa coming to invest in Nigeria. There are phases, actually....

A mantra that will be often heard in the corridors of power, whether in the developed or developing world, is that ‘the future belongs to the nations of the global south’. While this might seem like hyperbole, the potential of the Global South to become the driver of the world economy is absolutely real because the numbers reveal that to be true. Africa has 50% of the world's unused arable land (food demand is expected to increase on our continent by over 200% by 2030 and globally by over 50% by 2050). In addition, with improved logistics, the harnessing of better agricultural practices, and strong government and multilateral support, the future for agriculture and agri-business on the continent is bright. Among the many factors that will turn the obvious potential of Africa’s agriculture into reality is the strength of the continent’s commodity markets. Commodity markets have been dominated by the traditional global powerhouses (The United States of America, Japan, Australia, Germany, and Canada). However, what we are now seeing is that some of the largest commodity exchanges are now operating in emerging markets like India, Brazil, and China. While CME Group Inc (founded in 1848 at the Chicago Board of Trade) dominates the commodity exchange industry with over 20 million individual contracts transacted daily in recent years, others such as the ICE (International Exchange) and TOCOM (Tokyo Commodity Exchange) transact millions of commodity transactions daily worth tens of billions of dollars. The ability of these exchanges to connect producers to...

The African Export-Import Bank (Afreximbank) and AfCFTA Secretariat announced the operational roll-out of the Pan-African Payment and Settlement System (PAPSS), a Financial Market Infrastructure to enable instant, cross-border payments in local currencies between African markets. By simplifying cross-border transactions and reducing the dependency on hard currencies for these transactions, PAPSS is set to boost intra-African trade significantly and underpin the implementation of the African Continental Free Trade Area (AfCFTA). PAPSS will serve as a continent-wide platform for the processing, clearing and settling of intra-African trade and commerce payments, leveraging a multilateral net settlement system. Its full implementation is expected to save the continent more than $5 billion in payment transaction costs each year. Benedict Oramah, President of Afreximbank and Chairman person of PAPSS Management Board, said: “With the implementation of PAPSS, Africa can expect to begin to reap the fruits of the African Continental Free Trade Agreement. Afreximbank is proud to have contributed in the realization of the multi-decade dream that seemed unachievable just a few years ago. PAPSS is not positioned to replace existing regional and national payment systems but to collaborate and work with them in better integrating African economies for the benefit of all. We thank the African Union, the AfCFTA Secretariat, the West African Monetary Institute and African Central banks for a remarkable outcome.” The development of a pan-African payments infrastructure has been made possible by some of the continent’s leading institutions. The platform has been developed by Afreximbank, who also acts as the main Settlement...

SUMMARY The platform will enable traders to conduct cross-border trade using information technology to minimise physical barriers. Sokokuu is Swahili for big market. The platform enables manufacturers and suppliers in different member states to share information on their potential to produce and supply products. The Comesa Federation of Women in Business and the African e-Trade Group (Ae-Trade) have launched an online platform Sokokuu for traders in the regional bloc. The platform will enable traders to conduct cross-border trade using information technology to minimise physical barriers. Sokokuu is Swahili for big market. The platform enables manufacturers and suppliers in different member states to share information on their potential to produce and supply products. Sokokuu will complement existing platforms such as the womenconnect, which is used by women entrepreneurs in regional states to exchange information on the availability of essential products within the region. Two other Common Market for Eastern and Southern Africa (Comesa) institutions, such as the Comesa Business Council and the African Leather and Leather products) have already signed memoranda of understanding with Ae-Trade to implement the Sokokuu platform. The AeTrade is a multi-stakeholder group of African professionals and business owners with a vision to develop and implement an e-empowerment programme, which will enhance intra-and inter-African trade. The group brings together public and private sector partners to develop projects that leverage the power of information and communication technologies (ICTs) for the benefit of entrepreneurs in Africa. Speaking at the launch, during the Second Comesa Federation of Women in Business Annual...

Summary The two countries will form a committee to identify how to address hitches holding back the growth of the key economic sector summary The two countries will form a committee to identify how to address hitches holding back the growth of the key economic sector Arusha. Tanzania and Kenya have agreed to come closer in the tourism sector. The two countries will form a committee to identify how to address hitches holding back the growth of the key economic sector. The committee will, in turn, suggest ways to ensure the two states and the East African region in general, attracted more tourists. This was agreed during a high-level meeting of ministers/cabinet secretaries responsible for Tourism and senior officials from both sides in Arusha on Friday. The committee of technical experts will prepare a report on how to improve cooperation of the two countries which lead in attracting visitors from abroad. The recommendations would be forwarded to the ministers and be followed by drafting of a Memorandum of Understanding (MoU) on the same. Speaking at the meeting, the minister for Natural Resources and Tourism Damas Ndumbaro said Tanzania was determined to work with its northern neighbour in tourism development. “Once recommendations are made we ministers will meet to agree on the way forward,” he told reporters at the Ngorongoro Tourism Tower. Dr Ndumbaro said tourism was a key sector for the economies of both Tanzania and Kenya despite the outbreak of Covid-19. For Tanzania, the sector contributed 21.5 percent of the...

Department of Economics, Faculty of Management Sciences, Mangosuthu University, Umlazi 4031, South Africa Academic Editor: George R.G. Clarke Economies 2021, 9(4), 135; https://doi.org/10.3390/economies9040135 (registering DOI) Received: 7 July 2021 / Revised: 21 August 2021 / Accepted: 25 August 2021 / Published: 24 September 2021 Download PDF   Abstract Maritime transport remains the main gateway to the global marketplace. Ocean ports are a central and necessary component in facilitating trade. Ports are essentially a channel of integration into the global economic system. Resourceful and well-connected container ports empowered by regular and consistent shipping services are key to reducing trade costs, including transport costs, connecting supply chains and supporting global trade. Consequently, port performance is an important factor that can influence countries’ trade competitiveness. However, for Africa, the ports are dilapidated, lack essential infrastructure, are congested and perform poorly. Africa’s shipping and ports do not always match global trends and standards. In light of this, this study seeks to assess Africa’s current port performance and test the relationship between Africa’s port performance and trade performance. Very few studies have attempted to investigate the impact of port performance on trade. Hence, it was worthwhile to study the impact of port performance on Africa’s trade. The study used panel data that covering the period 2005–2018. An ARDL panel technique was used for estimation purposes. Results showed that port performance positively affects trade. This study argues that African ports require expensive infrastructure to be able to compete successfully. Africa needs to pursue an intensive course of infrastructure development...

Small cross border trade between Burundi and the Democratic Republic of Congo (DRC) is set to flourish after the two countries begun the process towards implementation of the COMESA Simplified Trade Regime (STR). This will be done under the soon to be launched Great Lakes Trade Facilitation and Regional Integration Project, (GLTFIP) which covers the two States and COMESA Secretariat. The project is aimed at facilitating trade and increasing the competitiveness of certain value chains for traders, especially small-scale traders and women traders, in targeted locations in the border areas of the Great Lakes Region, focusing on Burundi and DR Congo. Among the planned activities include improving connectivity to markets across the borders through policy and procedural reforms, commercial infrastructure improvements and capacity building of both border agencies and traders. Under the GLTFIP, COMESA Secretariat will implement specific activities related to trade facilitation, policy harmonization and collaboration between Burundi and DR Congo and use its convening power to support the participating countries to fully implement the STR. As part of preparations for the STR rollout, COMESA Secretariat through the current Great Lakes Trade Facilitation Project (GLTFP), convened a bilateral meeting between the two States in Bujumbura, Burundi. The GLTFP is the forerunner to the GLTFIP and is lapsing at the end of this year paving way for the launch and implementation of the latter. At the meeting, experts drawn from ministries of trade, trade facilitation institutions, customs and standard, and Sanitary and Phytosanitary Standards (SPS) agencies, private sector and project...

ECA simulations stress that AfCFTA is set to boost Eastern Africa manufactured exports, in particular, textiles & clothing exports will increase by 100 per cent KIGALI, Rwanda, September 24, 2021/APO Group/ -- The business community is a key part of the African Continental Free Trade Area (AfCFTA) and could benefit immensely in terms of access to raw materials, technology and also increasing economies of scale for participation in regional and global value chains, said Ms Mama Keita, Director of UN Economic Commission for Africa, Office for Eastern Africa. Ms Keita was speaking during a webinar organized by ECA in collaboration with the East African Business Council (EABC) to discuss with the private sector of East Africa about the AfCFTA implementation in East Africa. The e-meeting participants exchanged views on how to harness the potential of the African markets and on how businesses can seize the moment to implement and benefit from the AfCFTA agreement. ECA simulations stress that AfCFTA is set to boost Eastern Africa manufactured exports, in particular, textiles & clothing exports will increase by 100 per cent, heavy manufacturing by 63 per cent, light manufacturing by 61percent, Processed food by 54 per cent while livestock & meat products by 39 per cent. In his presentation, Mr Rodgers Mukwaya, an Economic Affairs Officer at ECA said that the implementation of AfCFTA would increase intra-African Trade by over 50 per cent. The agreement would also boost the continent’s GDP by more than $40 billion, and its exports by more than...

The centres are expected to develop the next generation of African business leaders ADDIS ABABA, Ethiopia, September 17, 2021/APO Group/ -- The Economic Commission for Africa (ECA) and International Chamber of Commerce have jointly launched Centres of Entrepreneurship in Africa, under the theme, ‘Creating Livelihoods for Inclusion’. With strategic locations across Africa, the ECA - ICC Centres of Entrepreneurship will work with various stakeholders, including businesses, chambers of commerce, academic institutions, intergovernmental and governmental agencies, to connect local entrepreneurs to global markets and enhance regulatory conditions for SMEs to thrive. The entrepreneurship centres will develop the skills of young people who face uncertain employment prospects to mentoring local start-ups and entrepreneurs. The centres are expected to develop the next generation of African business leaders. Speaking during the virtual launch on 16 September 2021, Oliver Chinganya, Director of the Africa Centre for Statistics at the ECA, said “the launch of the Centres of Entrepreneurship comes at the right time when Africa is trying to build back better from the effects of Covid-19. We believe that these Centres, based in different regions of the continent, and with tailored-made solutions, can mobilize the next generation of entrepreneurship in Africa.” Mr Chinganya said the Centres will provide Micro, Small and Medium Enterprises (MSMEs) with the tools and pathways to expand their business and play an effective role in the goods and services supply chain. They will also provide pathways to accelerate women and youth empowerment a necessary action to accelerate Africa’s growth and recovery...

African shippers are currently experiencing a tragedy in liner services, with historic port bottlenecks now compounded by a surge in freight rates, making shipping operations difficult for many. Alphaliner released new data showing shipping lines deploying greater tonnage to the profitable East-West, transpacific, and transatlantic trade lanes, owing to COVID era supply chain disruption. Specifically, the data revealed liner services capacity to and from Africa had declined by 6.5 percent compared to a year ago. The data analytics firm gave the example of MSC, which had shifted some 13,000 TEU of ship capacity from African trading routes in favor of the Pacific. The report noted that the major reason behind the shift was due to the high revenue earned along the East-West trade routes. This has a significant impact on African shippers. For instance, Nigeria - sub-Saharan Africa's largest economy - has been unable to overcome persistent inefficiencies in port operations. As a result, exporters have lost about $218 million in perishables and other damaged products over the last one year due to gridlock at Apapa Port. In an interview with The Guardian Nigeria, Shippers Association of Lagos President Jonathan Nicol said that some trucks took three months to access the filled-up terminals, as there was no space to drop export containers. “The infrastructure on the ground cannot cope with the volume of cargo accessing the port and at the same time, costs are uncontrollable. This results in exporters hiring barges and berthing by the sides of vessels to load...