According to the DHL Global Connectedness Index, Africa is the world’s least connected continent, when considering the ease of moving people, trade, information and finance. All African countries need to focus on developing connectedness on the continent and building a good trade relationship. During the ongoing 2017 Africa Export-Import Bank Annual General Meeting, (AfreximAGM) taking place in Kigali, Rwanda, the President and Chairman of the Board of Directors, Afreximbank, Benedict Oramah and Claver Gatete, Minister for Finance and Economic Planning, Republic of Rwanda also spoke about Intra-African trade which is also part of the discussion for this year’s Annual General Meeting. Africa contributes about 15 percent to intra-African trade, which is very low when compared with other continents such as Asia and Europe with 50 percent and 70 percent respectively. Benedict Oramah highlighted what Afrexim is doing to boost intra-African trade. He revealed that Afrexim is trying to deal with the biggest constraint with intra-African trade, which is the knowledge of the market in other countries. The bank is also working on developing standards and certification programs. He also explained that Afrexim Intra-African trade is not just trade between African countries but also between Africans and Africans in the Diaspora. “We regard Africans in the Diaspora as the 55th African country,” said Benedict Oramah. So far, Rwanda is making headways in ensuring that it boosts intra-African trade in the East African Region and the entire continent. The country has taken a number of laudable steps to ensure that this is achieved. According...

As you take on the mantle, what key areas are you focusing on to ease doing business in the region? One of the issues I want to look at is harmonising domestic taxes and free movement of persons. We want to see Ugandan workers, Tanzanian workers or Burundian workers seeking temporary employment crossing the borders to any of the member states freely. But this has not been happening and it is inhibiting the principles of the Common Market which seeks for free movement of services, free movement of persons and free movement of capital. But we also want to see the EAC partner states harmonise the laws to control illicit trade in the region. The laws are taking long yet we want them to be done very fast to improve trade in the region. Illicit trade has continued to affect industrial growth in the region going by substandard and counterfeit goods and products clogging our market. What is stalling these processes? The East African Community (EAC) is an independent organ and we have no capacity to push them to do things according to the speed of the private sector. Private sector is profit oriented and we want to see things done yesterday, not or tomorrow. We are now involving Heads of State in the challenges we are facing in doing business so that decisions are made quickly. How are you going to boost intra-regional trade as a Council? I am glad to mention that intra-regional trade is booming among the...

In recent days, the big story in the East African region has been the US threat to withdraw export benefits enjoyed by Tanzania, Kenya, Rwanda and Burundi through what is popularly known as Agoa. Agoa is the acronym for "African Growth and Opportunity Act", backed by a law passed in 2000 in the US to provide a window in which tax-free products would be exported to the US domestic market from Agoa qualifying countries in Africa, including those in our East African Community bloc. For countries which fully utilised the opportunity, Agoa benefits have been immense. Kenya, for example, has so created nearly 70,000 Agoa-related jobs and in 2016, it exported to the US products valued at Sh867 billion, eight times more than the combined exports of Sh100 billion by Tanzania, Rwanda and Burundi. The Agoa Act has thus been a signature trade deal between the US and African fledgling economies. With another extension of the benefits in the last term of President Obama's presidency, the Agoa deal was expected to continue. But now things are changing. A powerful US trade lobby group wants Agoa benefits for EAC withdrawn and have petitioned President Donald Trump to kick the EAC out of the arrangement. The lobby group is targeting Tanzania, Rwanda and Burundi because of their decision to phase out importation of second hand clothes and shoes. Kenya is spared because it has rescinded on the EAC agreement to ban "mitumba" or impose huge taxes on such imports. The US lobby...

In line with what was reported last year, there continues to be a noticeable disparity in performance between the two core trade corridors of East Africa. Container trade in the Northern Corridor, which serves Kenya, Uganda, South Sudan and parts of Rwanda, expanded by 1%, whereas the Central Corridor, serving Tanzania, parts of Rwanda, Burundi, Zambia, Malawi and DRC, saw a contraction of 12%. This is according to Steve Felder, Managing Director at Maersk Line Eastern Africa – a member of A.P. Moller–Maersk – who says the 2017 First Quarter East Africa Trade Report issued by the company reveals that aggregate trade levels in the region have improved slightly since 2016, resulting in overall year-on-year growth of 1%. “While conditions in the East Africa region have continued to be challenging due to political instability, ongoing macro-economic headwinds and drought conditions affecting certain countries, we’re seeing healthy competition between the two corridors, both fighting for position in terms of some of the ‘swing’ countries that could export or import cargo through either corridor, specifically Rwanda, Burundi, Uganda.” The Northern Corridor While the Northern Corridor (serving Kenya, Uganda, South Sudan, and parts of Rwanda) import market experienced year-on-year growth of 6% in the first quarter, it declined slightly (by 1%) from the last quarter of 2016, says Felder. “In Kenya, liquidity is still very tight, caused by last year’s interest rate capping on the bank lending rate. In the next quarter we are expecting to see a slowdown in the import market...

Ethiopia's move and interaction on the economic fronts has not been as anticipated as its contribution and influence on the continent politics and peace building efforts, scholars argue. Scholars argue that owing to the ever growing economy of the county and market the country need to focus on Africa market as well, according to a report filed by Addis Zemen daily. According to 2016 African Development Bank Report, Benin, Botswana, Côte d'Ivoire and Senegal are the leading countries for their market supply to other African countries. Ethiopia and other African countries have the lowest share in this regard. Africa's GDP has reached over 5.8 trillion USD, registering on average five per cent growth and predicts to reach 29 trillion USD by 2050. The same report indicated that the African foreign trade volume has grown by 200 per cent. Having such growth and market potential, the share of Ethiopia is very much limited, according to scholars. Jimma University Economics Lecturer Dr.Wondaferahu Mulugeta said Ethiopia's trade relations with African countries is very much low. He attributed similar products, lack of infrastructure connectivity with African countries to the reason for low level of the trade relations. According to him, industrial parks and agro processing factories are expanding. The FDI is also increasing. The government is also working to be hub of the light and medium manufacturing in 2025. He said against this backdrop the African market would be essential for Ethiopia in the coming couple of years. President of the Pan African Chamber...

The East African Community (EAC) leaders were on Tuesday urged to pool together and initiate dialogue with the Burundi leaders to end the stalemate in the country. Deo Hakizimana, President of the Independent Centre for Research and Initiatives for Dialogue (CIRID), a Geneva-based civil society organization, called on leaders of the regional bloc to work together to solve the stalemate through dialogue to save citizens from suffering. "The EAC is a respected strong bloc hence the need for the leaders in the region to strongly come out and engage the Burundian leadership and the opposition in solving the long standing misunderstanding in the country," Hakizimana said in Nairobi during the launch of Macky Sall Prize for Dialogue in Africa (PMSDA) in Kenya. The tiny central African nation has been in the midst of a political crisis since President Pierre Nkurunziza decided to run for a controversial third term earlier in April 2015. Since then several people have been killed, with the toll possibly considerably higher, and 250,000 have fled to neighbouring States with many others internally displaced. The UN has warned of a relapse into full-fledged civil war, calling the government to take all necessary steps to disarm pro-government militias and bring operations of the police, intelligence services and other security forces under the mantle of the law. The Burundi diplomat, who has been involved in peace initiatives, said that Africa is not rich in resources alone but has a wide range of bright people that could help solve internal...

The U.K. government unveiled plans over the weekend to replicate current European Union-negotiated trade terms with the poorest 48 countries after it leaves the bloc, signaling the first major milestone for Secretary of State for International Development Priti Patel’s pledge to put post-Brexit trade at the center of her department’s new economic development strategy. The announcement commits to maintaining the current quota-free, duty-free trade access to the British market currently enjoyed by the poorest 48 countries through the EU. The government also announced it intends to maintain current trade advantages for other developing countries and, in some cases, to “explore options to expand relationships,” although specific terms can only be announced after bilateral negotiations. The news falls in line with the Department for International Development's new economic development strategy, released in January, as well as its cross-government strategy, which commits to spending 30 percent of U.K. aid through departments other than DfID by 2020. It will likely mean a greater emphasis on some of the work DfID is doing around trade facilitation and through the CDC, the U.K.’s development finance institution, a DfID official told Devex. Rachel Turner, director-general of economic development at DfID, said the primary objective behind the announcement is to provide continuity for current and potential investors in the region. She emphasized some of the new strategies DfID is considering to promote better access to global markets. About 20 billion pounds ($25 billion) worth of goods are exported to the U.K. from developing countries every year, according to government statistics. “We...

The United States has raised concerns that future trade and investment deals with East African countries based on a continent-wide free trade agreement may be unrealistic due to their diverse interests. According to Washington, the differences could lead to a lowest common denominator agreement and consensus on the African Growth and Opportunity Act (Agoa) would be difficult. Last year, the EAC told the US that, in order to increase trade and investment between the two parties, the general outlook of post-Agoa should take on a development dimension based on trade facilitation and investment promotion as well as address supply constraints and improve the business environment in the region. “Future agreements with the US, post-Agoa, should be discussed at the continental level in line with the African Regional Integration Agenda,” said Beyond African Growth and Opportunity Act, a report of the meeting of the Sectoral Council on Trade, Industry, Finance and Investment held on June 2 in Arusha. “Special and differential treatment should be factored into any trade and investment agreement post Agoa, as well as development support, in order to enhance EAC capacity to trade with the US. Therefore, there may be a need to qualify reciprocity that would take into account the asymmetrical nature of the economies involved.” According to the EAC, although policy reforms can have a positive impact on the private sector and influence the global competitiveness of the region’s firms, future trade relations should not be made conditional on these reforms. Such agreements should focus on trade...

Agriculture will now be placed as number one engine of economic growth in the East African Community (EAC) integration process. This follows last week's signing of the EAC Comprehensive Africa Agriculture Development Programme (CAADP) Compact. "The Compact is designed to facilitate coordination of regional and cross cutting programmes that complement agricultural programmes and projects at national and regional levels," said the EAC deputy secretary general (Productive and Social Sectors) Christophe Bazivamo. He said after the signing ceremony at the EAC headquarters that the process of developing the EAC-CAADP Compact has been lengthy, inclusive and consultative and that the partner states should embrace it. The programme details regional development priorities and defines actions, commitments and partnerships required to achieve agricultural transformation in line with the CAADP goals and targets. Uganda's Minister of Agriculture, Animal Industry and Fisheries, Mr Ssempijja Bamulangaki, reaffirmed the EAC Partner States' commitment to transforming agriculture for inclusive economic growth in the region. "Over the years, efforts have been put in different sectors of integration such as infrastructure. It is now time that we assert ourselves, move with greater speed and ensure we take agriculture to the lead," the minister said. CAADP's overall goal is to use agriculture to eliminate hunger and reduce poverty in Africa. Through the CAADP agenda, African governments have agreed to increase public investment in agriculture to ten per cent of national budgets per year and to raise and maintain agricultural productivity and annual growth by at least six per cent. With the vision...

Dodoma. Two days after the US Trade Representative announced that Tanzania, Uganda and Rwanda risk losing access to the American market through the African Growth and Opportunity Act (Agoa) following plans by the East African member states to ban imports of second-hand clothes and shoes, a former Cabinet minister has asked the government to take the issue seriously. The US Trade Representative announced on Tuesday the initiation of an out-of-cycle review of the eligibility of Rwanda, Tanzania and Uganda to receive benefits under the act after concerns that the planned ban will impose significant economic hardship on the US used clothing industry. The launch of the review is in response to a petition filed by the Secondary Materials and Recycled Textiles Association (Smart), which asserts that a March 2016 decision by the East African Community, which includes Rwanda, Tanzania and Uganda, to phase in a ban on imports of used clothing and footwear is imposing significant economic hardship on the US used clothing industry. Having read the article in The Citizen on Thursday, Dr Diodorus Kamala (CCM - Nkenge), said the government needs to take the issue seriously and come up with necessary plan of action. “There is a story in The Citizen today which shows how serious this issue might be. The government needs to come up with relevant measures to protect the economy from the negative outcomes of what might be reached under Agoa,” he told the House yesterday during a debate on the 2017 Finance Bill. Dr...