African countries are facing a dual crisis – the impact of COVID-19 on their populations and the global economic slow-down which threatens to undo the hard-fought gains of the last 25 years Nestled in the undulating hills of central Ghana is a Fair Trade cooperative cocoa farm that produces chocolate for export to the world, including to supermarkets across the UK. When I visited the farm last summer, I saw for myself the many jobs the farm provides – many taken by women – and the families that these support. Consumers of the chocolate that originates from Ghana include, no doubt, thousands of workers in my constituency of Stafford, like those in the General Electric factory in Stafford. They manufacture transformers for the energy grid across the globe, including in developing countries like Ghana, where electricity supply can often be insecure or not available. That’s how trade works. Both sides win. For the UK and Africa, our two-way trade has enormous value – a total of £35.1bn of goods and services in 2018 according to ONS – creating and sustaining countless jobs across our country and on the continent. The Prime Minister has been quick to seize the opportunity. At the inaugural Africa Investment Summit in London earlier this year, he promised to renew our economic partnership with Africa, containing some of the fastest-growing economies in the world. Today, however, African countries are facing a dual crisis – the impact of COVID-19 on their populations and the global economic slow-down...

CEGA is committed to sharing a diversity of voices and perspectives. This post, written by Anthony Mveyange (EASST Fellow, TradeMark Africa) and Andrew Mold (United Nations Economic Commission for Africa), was originally published on the Brookings Institution website. Recent global trends like the COVID-19 pandemic, the climate change crisis, and heightened trade disputes among the world’s leading trade partners have highlighted the vulnerability of global value chains (GVCs). At present, the scale of the disruption in East Africa is quite dire — imports from China (a common source of intermediate goods) through the Mombasa Port declined by a drastic 20 percent shortly after the onset of the pandemic, between January and February 2020. In light of these trends, governments and industries in East Africa should consider rapidly shifting from focusing on global value chains (GVCs) to regional ones (RVCs). Given the region’s past difficulties with entering global value chains and consolidating the gains from regional integration processes, heightened emphasis on regional value chains could reap compounding benefits. The time is ripe: As documented in our recent report, the recently signed and ratified African Continental Free Trade Area (AfCFTA) can be the great enabler of that shift. THE STAGNATION IN GVCS The literature on GVCs emerged in the 1990s, after which the development community began to frame development success in terms of the ability of countries to insert themselves into these GVCs. Although not uncontested, academic research provided evidence of the benefits to workers and improved prospects for poverty reduction from participating in GVCs. However, the...

On February 27, Nigeria confirmed the first case of Covid-19 in Sub-Saharan Africa. Since then, the virus has spread to all corners of the continent. Even before the first cases were recorded in Africa, Covid-19 was already impacting international demand for exports in key sectors such as textiles and horticulture. Flower exports are down by more than 90 per cent and tourist arrivals have ground to a halt. The Kenya National Bureau of Statistics reported that imports dropped by more than 20 per cent in the first two months of 2020, with Chinese imports plummeting around 37 per cent. As the pandemic continues, the projected losses grow. Trade volumes in the EAC are down by up to 25 per cent since the beginning of 2020, with even greater reductions in the informal sector. African countries, conscious of the fragility of their public health systems and limited intensive care capacity, have instituted strict measures to stem the spread of the virus. However, for many in the region, their livelihood depends on moving about freely. There is no work-from-home option for the hundreds of thousands of small-scale traders. A day of work missed often translates to a day without food on the table. While health considerations are of primary importance, the prospects for tackling the challenges the pandemic presents are inextricably linked to trade and the economy. Continued trade at this time is crucial for three main reasons. First, trade is essential in ensuring people and governments have what they need to...

The Acting Chief Trade Negotiator/Director General, Nigerian Office for Trade Negotiations, Mr. Victor Liman, has said that the African Continental Free Trade Agreement (AfCFTA) is now expected to commence from January 1, 2021.Speaking on Nigeria’s Channels Television programme on Thursday, Liman  said that the AfCFTA, which was earlier scheduled to kick-off on July 1, 2020, was postponed due to the ravaging impact of COVID-19 pandemic on Africa. The Continental trade agreement entered its operational phase on July 7, 2019, following the ratification by 54 of all the 55 African countries. Liman disclosed that the Extraordinary Africa Union Summits scheduled to hold in South Africa on May 30, 2020 has been postponed to December 5, 2020. According to Liman, the summit is aimed at encouraging trade negotiators to complete their bargaining on tariff reductions, rules of origin and other necessary regulations and that the new date will also give sufficient time for trade ministers and their experts to finalise negotiations and prepare adequately for the Summits. The agreement for the largest regional market in the world was organised by the African Union and signed on by 44 of its 55 member states in Kigali, Rwanda on March 21, 2018. Source: Journal du Cameroun

Freedom of movement and economic integration are the cornerstone of the African Union’s (AU) Agenda 2063 which includes, among other things, the progressive aim of abolishing visa requirements for all African citizens. However multiple obstacles to free movement on the continent persist. A protectionist approach to managing migration still prevails as states avoid ceding their sovereignty to regional and supra-national organisations in migration affairs in the name of state security and national interest. So far, with the exception of the Economic Community of West African States (ECOWAS), little tangible progress has been made to implement a free movement regime. In this context, the global COVID-19 pandemic and states’ responses to it, raise questions about open borders and free movement of people. By 29 April, more than 34 000 people in Africa were infected with the coronavirus and just over 1 500 had died. If governments struggle to contain the spread, strict immigration laws and the militarisation of border control may be invoked, as has happened in South Africa. These types of measures would be antithetical to the continent’s integration agenda. More than half of African countries have closed their borders to human traffic in response to COVID-19 As the pandemic flared up across Europe, borders were progressively shut down until the Schengen agreement was suspended. At the same time, populists have challenged the European Union (EU) borderless system in an attempt to crack down on immigration. French right-wing politician Aurélia Beigneux went further: ‘The free circulation of goods and people,...

May 5, 2020//-Ahead of the AU ministerial meeting on the 5-6th of May that will be discussing the trade response to Covid-19 and the state of the African Continental Free Trade Agreement (AfCFTA), a number of business leaders have signed a joint letter calling for ministers and Heads of State to ensure they stick to the deadline of July 1 for the Agreement to come into force. The letter has been written in response to rumours in international media that the AfCFTA date of July 1 will be postponed until next year. The signatories say that there is no legitimate reason to postpone the AfCFTA even if they understand that a staggered approach can be used given current circumstances. One of the signatories of the letter is Paulo Gomes, former Executive Director of the World Bank and Chair of Executive committee of AfroChampions. The AfroChampions network has been mandated by the African Union to coordinate private sector discussions around the AfCFTA. He said that ministers meeting next week had a duty to respect the current deadline. “We understand that certain parts of the AfCFTA are sensitive. The rules of origins and tariffs need time but we can start with trading of essential goods. That will send a strong message to the world that we are serious about the AfCFTA and to African businesses. The private sector is the biggest beneficiary of the AfCFTA and with supply chains being disrupted globally, it is even more urgent that we have a functioning...

Social networks have become an integral part of our day to day lives and it is really difficult to imagine our lives without it. The Crypto industry itself is no stranger to the disruptive capabilities of social media as it has thrived on platforms like Facebook, Twitter, Reddit, Instagram etc. However, the centralised nature of these platforms has seen growing concerns regarding the safety of one’s personal data and privacy.  With recent scandals involving Facebook and Cambridge Analytica, people have started to question the privacy policies of these internet giants impose on their users and how they utilize user data. Privacy, which is an innate human right, is no more in the control of the people. Creators have lost control over their content, and unfair censorships have hampered growth and development of emerging industries like crypto and blockchain. This has fuelled the move towards uncensored social networks, with the crypto community leading the revolution. IOTA powered social network In order to overcome the various discrepancies, the SOCIETY2 team has proposed a social network powered by IOTA’s distributed ledger technology, which returns control of data, privacy and identity to the users of the platform. Developed on the IOTA network, SOCIETY2 enables the construction of decentralized social networks, taking the use of DLT beyond finance. The primary goal here is to allow social network users to regain authority of their data and personal information that they share on the internet. The user data will be stored securely on IOTA’s Tangle network and the information will be completely portable....

The region was expanding at more than double the continental average in 2019. East Africa’s economy is tremendously dynamic and until now, it has been one of the fastest-growing sub-regions in Africa since 2013. As of 2019, before the COVID-19 coronavirus pandemic, the region was expanding at more than double the continental average. Boasting of having three of the world’s ten fastest-growing economies in 2019, the East African countries of Ethiopia, Rwanda and Tanzania, it is now time for the region to put in place measures that will assure the growth of the region post the coronavirus pandemic. Despite the low per capita incomes that have prevailed for decades, the region has experienced some notable social gains including East Africans living 6.7 years longer now on average than they did a decade ago. But even with these positive trends, the region still suffers from a number of serious vulnerabilities to its ability to sustain this strong economic performance. A joint report by the United Nations Economic Commission for Africa (UNECA) and Trademark East Africa (TMA) shows that the areas that need urgent attention to keep the region’s economy on an upward trajectory are majorly in intra-regional trade and investment. The limited intra-regional trade and investment constrain the structural transformation of the sub-region’s economies making it difficult for countries to achieve global, regional and national developmental objectives. The global economy is dominated by large countries such as the United States, China and India and small developing economies cannot effectively compete unless...

East African Community Headquarters, Arusha, Tanzania, 30th April, 2020: The East African Community has unveiled a comprehensive COVID-19 Response Plan to reinforce measures to protect and prevent further spread of the novel coronavirus pandemic within the region. The response plan was developed following a directive by the Joint Meeting of Ministers responsible for Health, Trade and EAC Affairs held via Video Conference, which directed the EAC Secretariat to finalize and submit the EAC Regional COVID-19 Response Plan to the Partner States. Among the key interventions proposed in the plan that was unveiled by the EAC Deputy Secretary General in charge of the Productive and Social Sectors, Hon. Christophe Bazivamo, on behalf on behalf of the Secretary General, are risk communication and community engagement, which will entail strengthening sensitization programmes and awareness creation on COVID-19. The response plan further seeks to ensure access to Infection, Prevention and Control (IPC) materials, laboratory supplies and equipment by the EAC Organs and Institutions, and the EAC Partner States. Another key intervention is to strengthen the region’s capacity for COVID-19 surveillance and reporting at all key border points, and build knowledge on safety measures, existing prevention and control strategies, and relevant regional guidelines. Mitigation of the fundamental impacts of the pandemic on the vital economic and social sectors of the region including Micro, Small and Medium Enterprises is another key intervention outlined in the document. Other proposed measures include: building regional capacity to support Partner States on surveillance, monitoring and coordination of preparedness and response to the...

A blockbuster African trade deal is unlikely to be implemented before early next year, an official said on Friday, after the disruption caused by the new coronavirus made the current July 1 deadline unworkable.Wamkele Mene, Secretary-General of the African Continental Free Trade Area, told Reuters that while only the heads of state of the 55-member AfCFTA could sanction changes to the deadlines, the cancelled summit between leaders planned for May in South Africa left few options. “It is only after the summit that you can say we have a new trading date. The next opportunity of a summit is on 2 January 2021,” Mene said.The continental free-trade zone would, if successful, become the largest since the creation of the World Trade Organization in 1994, stitching 1.3 billion people together in a $3.4 trillion economic bloc. Mene’s role is effectively chief adviser to government leaders, who hold the exclusive right to approve all parts of the deal and its implementation. He has advised them to defer the July 1 implementation deadline due to the extraordinary circumstances. It would have required nations to liberalize at least 97 per cent of their tariff lines and 90 per cent of imports. Mene is instead advising them to allow free movement of goods, despite borders being closed to human traffic as part of virus containment efforts, and to allow zero duties on 40 specific goods that would help combat the virus, such as soap, disinfectant and personal protective gear. “The current circumstances simply are not...