United Nations Economic Commission for Africa (Addis Ababa) Nairobi — The African Continental Free Trade Area (AfCFTA) is still the agreement with great potential to foster regional economic integration and economic growth, and take Africa to the next level, even in the midst of a crippling coronavirus crisis, panellists on a COVID-19 Recovery Mechanism and AfCFTA webinar agreed Thursday. The panelists agreed the AfCFTA was a crucial move towards removing the continent's heavy reliance on commodity and agricultural exports leading to exponential growth in the manufacturing sector, export diversification and creation of quality jobs if its full potential to be transformational for all Africans is tapped. Regional Integration Division Director at the Economic Commission for Africa, Mr. Stephen Karingi, in his remarks said a lot of empirical work had been done by ECA showing what the AfCFTA means for Africa. "One of the things we have been able to demonstrate empirically is that the AfCFTA has the potential to deepen not only the regional integration of the continent but also to allow us to do more value addition in our production processes," he said. This, added Mr. Karingi, presents an opportunity not only to create economic resilience but also create quality and more valuable jobs compared to jobs that are not based on industry. "We know what the AfCFTA means for this continent. COVID-19 has exposed that had we implemented the AfCFTA earlier, we would be in a better position than we are now," he said, adding the ECA's analytical...

This financial year, EAC Partner States are challenged with COVID-19 pandemic and some have reviewed their targeted economic growth downward by nearly 50 percent. The COVID-19 pandemic is both a health crisis and fundamentally an economic crisis. Four East African Community member states will on the 11th of June this year. The countries, Kenya, Tanzania, Uganda and Rwanda will jointly unveil their Budgets for the Fiscal Year 2020/2021. The EAC Partner States except for Burundi and South Sudan usually unveil their budgets on the same day in June every year after holding Pre-budget Consultations of EAC Ministers of Finance and Economic Planning. Through the Pre-budget consultations, Ministers discuss and agree on various tax measures each Partner State is going to implement in the coming financial year. This financial year, EAC Partner States are challenged with COVID-19 pandemic and some have reviewed their targeted economic growth downward by nearly 50 percent.  The COVID-19 pandemic is both a health crisis and fundamentally an economic crisis. In the region, the impact of the pandemic has been felt differently across sectors depending on the measures instituted to contain the spread of the pandemic as well as the linkage of the particular sector to the global economy. According to an analysis from the East African Business Council (EABC), the expectation of the EAC private sector is that the EAC budgets for 2020/21 will contain economic stimulus packages that will mitigate the impact of the COVID-19 pandemic on businesses and East Africans, stimulate economic growth and recovery....

The East African Community (EAC) stands to be affected by shortages of raw materials, capital goods and delays in getting consumer goods, which were originally imported from the Asia region. Following the first reports of Covid-19 in mainland China in late 2019, over 300,000 people have since died of the disease, with over five million infections reported worldwide. To limit infections, several countries in Asia, Middle East, Europe and the Americas have banned large gatherings and imposed strict travel restrictions. The global pandemic will most likely continue as efforts to find a potential cure are made. STRICT MEASURES South Korea has started seeing the reduction in the number of Covid -19 cases after it moved swiftly to implement tough measures. The same was seen in China. Governments are racing to implement safety measures to avoid a situation like Italy's, where cases skyrocketed before lockdowns were put in place. In Africa, the Covid-19 cases present a significant challenge to the EAC economies due to the countries' links with the world economy. EAC trade is set to be affected negatively, given the region's trade ties to China, Europe and the Middle East, which are among the regions heavily affected by the pandemic. The region stands to be affected by shortages of raw materials, capital goods, and delays in getting consumer goods from the Asia region. Already some EAC states are experiencing declines in imports from China, including raw materials, capital goods, intermediate goods, and final products. However, medical supplies and essential goods...

The East African Community (EAC) Partner States have adopted the EAC Regional Electronic Cargo and Drivers Tracking System that will be hosted at the EAC Headquarters in Arusha, Tanzania. The system is expected to share truck driver’s information leveraging on that which is managed and operated by Revenue Authorities in the region, and the existing health information systems in Partner States. The system allows the users to share information across borders in a transparent manner, and the truck drivers will need to upload the phone app on their phones. Continuous screening will be done at selected check points along the transport corridors, which have already been designated, and information made available for all Partner States. Verification of documents will be done by customs, immigration, law enforcement agencies/ persons who will confirm if a particular traveller is fit to proceed on their journey. The Digital surveillance tracker will interface and connect directly to designated laboratories in the Partner States to allow the Partner States, for purposes of COVID -19 laboratory results needed to generate the COVID-19 Test Certificates / attestation Certificates for COVID-19 test results. The system will be supported by four (4) Command Operating Centres (COCs) located in four locations at designated national Revenue authorities in Kenya, Uganda, DRC and Rwanda, with one additional COC to be set up at the Nimule border post for the Republic of South Sudan. The Ministers/Cabinet Secretaries were further informed that the truck driver and crew members’ mobile phones will be used as the...

Of all the legacies of colonialism, one of those which has most hampered economic growth and the alleviation of poverty is fragmentation – neighbours with different currencies, regulations enabling trade with Europe but not with other Africans, and a neglect of intra-African transport and infrastructure links to facilitate this trade. In good times, with Europe accounting for around 30% of African trade, there has been little appetite to upset the status quo. In times of economic unease, African nations, like many around the world, have tended to withdraw into themselves rather than pursue broader trading options. Repeating this pattern for a generation, African nations have historically ceded economic power to external actors, remaining price-takers and struggling to develop their own solutions at times of crisis. Change is in the air A confluence of factors is lining up to shift Africa from the old way of doing things and drive the continent towards greater prosperity and resilience. The rise of China as an economic force and major partner (19% of Africa’s trade) has given African leaders experience in opening new trade routes and the benefits this brings. At the same time, regional trading blocs like SADC, EAC, COMESA or ECOWAS have grown in strength as countries became more adept at spotting gaps in their neighbors’ markets and adjusting areas of specialization to meet demand. Building on a decade long trajectory towards greater continental integration and more diverse trading relations, the ratification of the African Continental Free Trade Area (‘AfCFTA’) now has the capacity to...

The African Import-Export Bank (Afreximbank) and International Trade Centre (ITC) team up to help businesses make the most of the African Continental Free Trade Area (Cairo/Geneva) − Afreximbank is teaming up with ITC to train small business owners and young entrepreneurs in Africa to trade with other African countries as part of the new African Continental Free Trade Area (AfCFTA). The training programme, How to Export within the AfCFTA, is being launched as the new free-trade area comes on stream and amid the economic strain of climate change and the coronavirus pandemic. The training will give business owners the knowledge and skills they need to engage effectively in cross-border trade under terms of the emerging free-trade area for Africa. Intra-African trade is structurally low at 15% (compared to Europe at nearly 70%, for example), and the AfCFTA will open a market of 1.2 billion people. 'Against the backdrop of the current COVID-19 health and economic crisis, African micro, small and medium enterprises (MSMEs) need support to take full advantage of the continental market,' ITC acting Executive Director Dorothy Tembo said. 'Through this partnership, African businesses will have the opportunity to learn, plan and succeed in growing their business by taking full advantage of the AfCFTA.' Kanayo Awani, Managing Director of Afreximbank's Intra-African Trade Initiative, said that the initiative was necessary because promoting intra-African trade through increased exports of goods and services by small and medium-sized enterprises (SMEs) was the cornerstone of the AFCFTA. It signals an optimal strategy to aid businesses...

The revamping of the Sh800 million Kisumu port, coupled with the rehabilitation of the old railway lines in the larger western region, now spells hope for regional trade between Kenya and other EAC States. Lack of supporting infrastructure had posed the biggest threat to the success of the port, but with the government’s commitment to repair the old railway system to the lakeside city, there is hope that the viability of the project would be guaranteed. President Kenyatta said that ports are gateways to regional and international markets, and hence their rehabilitation is a positive move towards resuscitating regional trade. “Apart from the port of Lamu, which will change regional trade dynamically, the other project is the port of Kisumu. “This port was built by the colonisers, but it collapsed at some point. We have since revived it for strategic purposes. Lake Victoria serves both the Northern and the Southern corridors,” he stated in his speech during the 57th Madaraka Day celebrations at State House, Nairobi. President Kenyatta said that with the refurbished Kisumu port, Kenya can serve the region from Mwanza and Bukoba in Tanzania, to Jinja and Entebbe in Uganda; and Muhoma Bay in Rwanda at affordable costs and decent timing. “Beyond serving the region, the port is poised to promote the ship-building and repair industry in Kenya,” he said. It will also catalyse the development of other small ports, the President added. Apart from Kisumu port, others targeted are Muhuru and Sori in Migori County; Mbita, Kendu...

East African Community (EAC) partner states have adopted a Regional Electronic Cargo and Drivers Tracking System that will be hosted at the bloc’s headquarters in Arusha, Tanzania. The system will share the truck driver’s information leveraging on that which is already managed and operated by Revenue Authorities in the region, and the existing health information systems in the six EAC countries.An official explained that the development of a regional Covid-19 surveillance system for trucks and their crew is another tool to help mitigate the disruption of domestic, regional and global supply chain systems serving the region. On Monday, June 1, Daniel Murenzi, the Principal Information Technology Officer at the EAC headquarters, took The New Times through “the technical functionalities of the system” which allows users to share information across borders in a transparent manner. Murenzi said: “The system will work in all EAC Partner States. It will be interlinked to EAC Ministries of Health and accredited laboratories for the accurate information. “The system will bring on board the truck owners or companies so that information can be shared across. In case a truck driver is tested positive in another country the system will notify the Ministry of Health of the driver’s originating country.” The EAC is collaborating with Trademark East Africa in the development, implementation and operation of the surveillance system. Explaining what they hope will be achieved, Patience Mutesi, TMA country director, noted that lately, the new coronavirus has been spreading between countries largely through land borders which economies...

The Economic Commission for Africa has reported that between 300,000 and 3.3 million people on the continent could lose their lives to COVID-19. It has the opportunity to implement systems to support its nations through coronavirus, and into the future. These include free trade, regional value chains and infrastructure investment. The African Continental Free Trade Area was launched two years ago at an African Union (AU) summit in Kigali. It was scheduled to be implemented from 1 July 2020. But this has been pushed out until 2021 because of the impact of COVID-19 and the need for leaders to focus on saving lives. Studies by the International Monetary Fund (IMF), the United Nations Economic Commission for Africa and others state that the free trade area has the potential to increase growth, raise welfare and stimulate industrial development on the continent. But there are concerns. Some countries, particularly smaller and more vulnerable states, could be hurt. For example, they could suffer revenue losses and other negative effects from premature liberalisation. The impact of COVID-19 will only worsen these structural weaknesses. The Economic Commission for Africa has reported that between 300,000 and 3.3 million people could lose their lives if appropriate measures are not taken. There are several reasons for this level of high risk. These include the fact that 56% of urban dwellings are in overcrowded slums, 71% of Africa’s workforce is informally employed and cannot work from home and 40% of children on the continent are undernourished. Free Trade has the potential to increase growth and...

  | FAIZEL ISMAIL | The African Continental Free Trade Area was launched two years ago at an African Union (AU) summit in Kigali. It was scheduled to be implemented from July 1, 2020. But this has been pushed out until 2021 because of the impact of COVID-19 and the need for leaders to focus on saving lives. Studies by the International Monetary Fund (IMF), the United Nations Economic Commission for Africa and others state that the free trade area has the potential to increase growth, raise welfare and stimulate industrial development on the continent. But there are concerns. Some countries, particularly smaller and more vulnerable states, could be hurt. For example, they could suffer revenue losses and other negative effects from premature liberalisation. The impact of COVID-19 will only worsen these structural weaknesses. The Economic Commission for Africa has reported that between 300,000 and 3.3 million people could lose their lives if appropriate measures are not taken. There are several reasons for this level of high risk. These include the fact that 56% of urban dwellings are in overcrowded slums, 71% of Africa’s workforce is informally employed and cannot work from home and 40% of children on the continent are undernourished. Africa is also more vulnerable to the impact of COVID-19 because it is highly dependent on imports for its medicinal and pharmaceutical products and on commodity exports. The latter include oil, which has suffered a severe collapse in price. Other contributing factors are high public debt due to higher...