Felix Tshisekedi has been busy on the regional integration front since he became president of the Democratic Republic of Congo two years ago. But he has particularly been busier this year. On June 25, President Tshisekedi met his Rwandan counterpart Paul Kagame in Rubavu to allegedly assess the damage caused by the recent Nyiragongo volcanic eruption among other bilateral discussions. A week earlier, on June 16, Tshisekedi and President Museveni met at the border post of Mpondwe in the western district of Kasese to launch joint infrastructure construction projects. Museveni says Uganda’s footing of a substantial amount of money to construct the roads inside Congolese territory is aimed at boosting trade between the neigbouring countries. In April this year, Kenya and the DR Congo signed four framework cooperation agreements covering several economic sectors, security and defence as well as maritime transport. Among the four pacts, signed on the second day of President Uhuru Kenyatta’s three-day state visit to DR Congo, was the general cooperation agreement which provides a framework for joint promotion of economic, technical, scientific and socio-cultural programmes. The economic sectors targetted by the broad framework are agriculture, education, health, sports and tourism. Others are environment, SMEs, housing, energy and infrastructure development. Also signed were two separate bilateral agreements on security and defence which provide mechanisms for cooperation between Kenya and DR Congo in areas such as counterterrorism, immigration, cyber security, and customs and border control. The revitalised agreement on maritime freight is aimed at repositioning the port of...

TDB and TMA will work together towards developing trade supportive infrastructure in the region; Institutions will collaborate on supporting information technology innovations in trade, logistics and transportation; Via trade, institutions will contribute to combatting the effects of the COVID- 19 Nairobi, 18 June 2021 – TradeMark Africa (TMA) and the Eastern and Southern African Trade & Development Bank (TDB) have today signed a Memorandum of Understanding (MoU) that establishes a framework for collaboration ultimately seeking to boost trade in the region served by both institutions. By leveraging the two institutions’ expertise in project development and finance, TMA and TDB will endeavour to jointly pursue targeted investments in trade logistics and production systems, including roads, ports and industrial parks projects, and to facilitate structured trade finance transactions of commodities. Moreover, institutions will work to collaborate in carrying-out analytical and advisory services aiming, among other things, to support the digitization of trade and investment processes as well as information technology innovations in trade, logistics and transportation. Additionally, the MoU provides for the facilitation of innovation and capacity development for regional businesses, so as to enable them to effectively engage in global and regional trade transactions with high development impact. The agreement will also enable TMA and TDB to jointly contribute to mitigating the adverse effects of the COVID-19 pandemic in the region, via enhanced regional trade, trade supportive infrastructure, and digitalization of trade. Speaking during the MoU signing TMA Chairman Amb. Erastus Mwencha hailed the collaboration as one that will greatly support...

UAE port operator DP World and the government of Somaliland opened a new container terminal in the Berbera port this week. The new terminal increases the port’s container capacity from 150,000 Twenty-Foot Equivalent Units (TEUs) to 500,000 TEUs annually, and is the first phase in a broader expansion that aims to position Berbera port as a major oil and gas trade corridor for landlocked Ethiopia. The port is strategically located on the Gulf of Aden, a crucial maritime hub for a fast-growing region that processes up to 20% of global trade annually. The first phase is part of an expansion deal signed with DP World in 2016 worth a total of $442 million. Designed to transform the dusty East African port into one of the continent’s premier facilities, it heralded a new dawn for Somaliland, one of the world’s poorest jurisdictions. While the state has many of the hallmarks of nationhood, including a currency, army and democratically-elected leaders, its bid for international recognition has stalled. Yet leaders in the capital, Hargeisa, hope international investment holds the key to official independence. “DP World is a big international company that dared to come to Somaliland, and I hope that a lot of other companies will follow,” said President Musa Bihi Abdi in 2018. Read original article

Many emerging economies – from the Middle East & Africa (MEA) to Latin America to parts of Asia – have seen great economic growth and the rise of digital transformation. Even before COVID-19, the increase and potential of cross-border digital transactions – such as with the likes of financial technologies (or fintech) – has grown; the pandemic further accelerated that. For those that follow international trade news, a major headline has been the new African Continental Free Trade Agreement (AfCFTA) that began into force this year. It brings the majority of African Union member countries, which the continent as a whole is home to over 1.3 billion people, a free trade agreement. Free trade agreements are nothing new, but specifically with emerging economies, how can they use it to their advantage by promoting overall economic development and also opening digital borders? OVERVIEW OF FREE TRADE Simply, a Free trade Agreement (FTA), according to the International Trade Administration (ITA), is an agreement between two or more countries that agree on something pertaining to trade in goods and services. Topics that can be covered and could be protected include the likes of intellectual property rights, protections of certain industries – to name a few.  Examples include the likes of the former North American Free Trade Agreement (NAFTA) – now known as the United States–Mexico–Canada Agreement (USMCA) that was championed by former US President Donald Trump. An FTA also sets a foundation for more integrated relations that can stem into a customs union – such as South America’s MERCOSUR and even more intertwined such...

Foodborne diseases are thought to impose a health burden on society comparable to the "big three": malaria, HIV/AIDs and tuberculosis. Common foodborne diseases affect tens of millions of people every year. They include salmonellosis, which causes stomach upsets, norovirus, which can cause severe vomiting and diarrhoea, and listeriosis, which can cause severe infections of the bloodstream and brain. Children and people with weak immune systems are affected most. Foodborne diseases can enter the food supply chain - from the farm to our tables - at many stages. For instance, most low-income consumers source their foods from informal markets. For food to get to these markets, there are many actors involved and this makes it difficult to regulate activities. Infrastructure that supports good hygienic handling of food in these markets, such as potable water and refrigeration, is normally lacking. Meat, fish, seafood and fresh vegetables are the most risky from a food safety perspective. This is because they act as a reservoir for many pathogens and provide an excellent medium for pathogens to survive and grow. Cereals are less of a food safety risk as they are not handled multiple times, and present a less attractive medium for pathogens to survive. We wanted to know whether the COVID-19 pandemic's restriction measures were having an effect on food safety. To understand the extent of the problem in East Africa we surveyed experts on food safety in the region. The countries included in this study were all those in the East African Community (except Rwanda) along with Ethiopia. Data were collected in...

The East African Community (EAC) will this financial year prioritise harmonisation of air charges and taxes in a bid to reduce the cost of intra-EAC air travel, according to Mr Adan Mohamed, the Council of Ministers chairperson. While reading the EAC 2021/22 budget, Mr Mohamed, who is also Kenya's Minister for EAC, said the civil aviation and airports sub-sector, although there has been some delays, will focus on implementation of the EAC Upper Airspace Seamless Operations earmarked under the 2017-22 project. During this financial year, he said, the region will implement strategies that seek to reduce the cost of intra-EAC air tickets and air operations. This, Mr Mohamed noted, will be achieved through harmonisation of air travel-related charges and tax regimes, which feed into the price of air travel. EAC has one of the most expensive flight routes, with Entebbe-Nairobi taking the lead. However, despite the high cost, air travel within East Africa has been growing, rising by 3.4 per cent in the past decade against a global rate of 5.5 per cent. It is estimated that 43 per cent of air ticket prices in EAC comprise of regulatory charges and taxes, with regulatory fees accounting for up to 24 per cent. According to a research commissioned by the East African Business Council about air liberalisation, it was found that harmonisation could lead to a reduction in air fares by 9 per cent. The reduction, the report noted, would lead to a 41 per cent increase in frequencies, which in...

One prediction at the outbreak of COVID-19 was that Africa could be the epicentre of fatalities from the pandemic. This hasn't happened. The record of rate of infections, fatalities and recoveries shows that Africa is the second least affected region of the world. The fear that Africa would be the epicentre of the pandemic was fuelled by a few factors. One was the presence of overcrowded informal settlements. Another was weak systems in many countries and the inadequate number of medical personnel across the board. In addition, hospitals lack critical equipment such as testing kits, personal protective equipment and oxygen machines. Most countries adopted national strategies, such as closing borders. Others took a more regional approach. In a recent study I looked at what role regionalism played in containing the pandemic. The porous borders between many countries in Africa presented additional challenges – as well as opportunities – for a regional response to COVID-19. I concluded that a regional approach did help in containing the pandemic because of the opportunity it provided for sharing resources, information, training and testing. For example, effective monitoring and deployment of testing equipment at the borders contributed to limiting cross border transmission of the virus. But I also concluded that, for the future, there is a need to build more regional health infrastructure that can help the continent manage new epidemic outbreaks. Reasons for a regional approach Since March 2020, African countries have adopted various measures to manage the COVID-19 pandemic. Beyond the national responses...

WTO members had a first exchange on 11 June on how to monitor Aid for Trade ahead of next year’s Global Review. The discussions at the Committee on Trade and Development were informed by a 10 June workshop on the circular economy. The committee also received updates from donors, international organizations and South-South partners on their Aid for Trade activities, including on “green” projects that promote economic recovery from the COVID-19 pandemic. Committee on Trade and Development Aid for Trade Session The Monitoring and Evaluation (M&E) exercise that will underpin the Aid for Trade Global Review, due to take place in mid-2022, was one item discussed by members at the meeting. Ambassador Mujtaba Piracha of Pakistan, the chair of the committee, outlined the process that he envisaged would lead to the Aid for Trade Global Review based on the theme “Empowering connected, sustainable trade”. The need to facilitate economic recovery from the COVID-19 pandemic was highlighted by some members as a theme to be explored. Members noted that the Aid for Trade Stocktaking event last March was a first attempt to survey the trade impact of the COVID-19 pandemic. Another theme that several delegations highlighted as a topic for consideration was the gender dimension to Aid for Trade and how it can contribute to the work in the Informal Working Group on Trade and Gender. Several WTO members provided overviews of their Aid for Trade activities. The European Union updated members on the European Green Deal and the Third Gender...

Summary Leaders say the infrastructure will transform the socio-economic welfare of citizens in both countries. Uganda and the Democratic Republic of Congo (DRC) on Wednesday launched a 223km road project linking the two countries, with the   project envisioned to boost cross border trade, improve security and connectivity between the two countries. According Mr Bageya Waiswa, the permanent secretary in the Ministry of Works and Transport, the project was initiated with major objectives of boosting trade and commerce, addressing the issue of security, easing movement and welfare of the people, and strengthening relations between Kampala and Kinshasa. At the ground breaking ceremony held at Mpondwe (Uganda) and Kasindi (DRC), President Museveni and his DRC counterpart Felix Tshisekedi said the infrastructure will transform the socio economic welfare of the citizens in both countries. President Tshisekedi described the project as a reinforcement of relations between the two neighbouring countries.  “I thank him [Museveni] for this initiative because it caters for the idea of the integration of our countries. As brothers, instead of looking to build walls, it is better to build bridges,” Mr Tshisekedi said. “I am happy to be here for this project. Tshishekedi came with an open position because he does not want any suspicion with his neighbours. We are here to break ground for this project and ready for more projects,” Mr Museveni said. In a joint communique issued by the two heads of state, the infrastructure project is part of a coordinated effort between the two countries to promote...

Global Britain should look towards supporting the development of Africa’s digital landscape, argue Pauline Girma and Oona Palmer (LSE). In this post, they explain that given that seven of the ten fastest-growing internet populations are located in Africa, and that it is home to what is the youngest population in the world, the future growth of the global e-commerce market depends upon unlocking the continent’s potential. The British Prime Minister has invited President Ramaphosa of South Africa to join the G7 summit in Cornwall, England in early June. The summit will discuss among other things trade and the digital economy. A number of African states are taking part in the WTO negotiations on digital trade, but South Africa has opposed the whole idea of the current WTO negotiations on the topic. Africa presents both significant opportunities and challenges for those looking to expand e-commerce. Despite changing demographics and improving business environments, which have contributed to rising household consumption, infrastructural and technical constraints continue to undermine efforts to scale e-commerce, and hinder Africa’s integration in the global digital economy. Fewer than a quarter of Africa’s roads are paved according to the World Bank, and even the relatively large markets of Nigeria and Kenya struggle with access to electricity. Moreover, the lack of widespread internet connectivity remains a fundamental barrier to the uptake of e-commerce in Africa, with less than one-third of Africans able to access the Internet. Yet the potential for the widespread adoption of e-commerce to facilitate technological ‘leapfrogging’ has...