African Business leaders have appealed to governments to take the African Continental Free Trade Agreement (AfCFTA) deal negotiations on July 1 seriously to enable the continent is to economically recover from the coronavirus pandemic. The call comes just two days before the planned African Union (AU) ministerial meeting to be held on the May 5-6th that will be discussing the trade response to Covid-19 and the state of the African Continental Free Trade Agreement (AfCFTA). Ahead of the meeting, business leaders have petitioned heads of state to uphold the AfCTA deal discussion deadline in which member states are supposed to make a landmark decision on the trade agreements to kick start business between each other. The commencement of trading within the AfCFTA is slated for 1st July 2020. Driven by President Paul Kagame, the AcFTA deal that was signed in Kigali on March 21st 2018 by several countries (over 50) and July 1 was set for the agreement to come into force. To push the deal, business leaders, through the AfroChampions network, have signed a petition a joint letter in response to rumours in international media that the AfCFTA date of July 1 will be postponed until next year. The AfroChampions network was mandated by the African Union to coordinate private sector discussions around the AfCFTA. One of the signatories of the letter, Paulo Gomes, the former Executive Director of the World Bank and Chair of Executive committee of AfroChampions said that ministers meeting next week had a duty to...

Africa’s extreme vulnerability to the disruption of international supply chains during the COVID-19 pandemic highlights the need to reduce the continent’s dependence on non-African trading partners and unlock Africa’s business potential. While African countries are right to focus their energy on managing the immediate health crisis, they must not lose sight of finalizing the Africa Continental Free Trade Agreement (AfCFTA), which can be a tool to help them do just that. Africa’s economy is highly dependent on international markets—for both its imports and exports. Given that an estimated 53 percent of African imports originate in countries that have been highly impacted by COVID-19, the pandemic is interrupting the region’s access to critical products. With two-thirds of African countries being net importers of food and medicine, global trade restrictions and cross-border blockages risk creating shortages and increasing the cost of items essential to mitigate the immediate effects of the pandemic. At the same time, global supply chain disruptions are expected to result in export earnings losses of $101 billion, with an estimated $65 billion for oil-producing countries and massive hits in other export sectors, such as the garment and cut-flower industries. Similarly, the pandemic has seriously disrupted key services industries on the continent, including tourism, transport, and logistics services. The operational launch of the AfCFTA—originally scheduled for July 2020—is now postponed. The next round of negotiations, scheduled for May 30, will likely not happen before November or December. Wamkele Mene, the newly elected secretary-general of the AfCFTA Secretariat, has noted that...

In 2019, Africa remained the leading destination of Kenya’s exports accounting for 37.6 per cent of the total exports at Sh224.2 billion, with exports to East African Community partner states, accounting for 62.6 per cent of the total exports to Africa. This is according to the recent economic survey 2020 by the Kenya National Bureau of Statistics (KNBS). The region is followed by Europe which is the country’s second-leading export destination with 25.4 per cent of the total exports at Sh151.3 billion. The data carves a sculpture of the sprouting fruits of the efforts put in place by the East African Community (EAC) treaty which aims to accelerate economic integration and political development of the 6 partner states. The community has for decades now been working on a system that will facilitate the achievement of the monetary union (having a single currency in the community) and ultimately a political federation of East African countries. All these steps together with the customs union and common market which have already been established will see that economies of trade are achieved, command respect and a stronger voice in the world community and improve social interactions between states. “Exports to African countries was Sh224.2 billion in 2019 with Uganda remaining the leading export destination, accounting for 28.6 per cent of total exports to Africa,” reads the report by KNBS. Exports to Rwanda and Tanzania also increased by 29.9 per cent and 13.0 per cent, respectively increasing the exports to EAC by 8.0 per cent to...

Movement of trucks and cargo is now classified under essential services in the East African Community in line Covid-19 Administrative Guidelines. The measures, outlined in a 17-page document, and seen as a response to rising cases of positive Covid-19 cases among long distance truck drivers, further directs country Commissioners of Customs and other agencies to allow scanned documents in lieu of original documents that may take longer to be physically couriered to facilitate faster movement of goods. Further, transporters must use the EAC gazetted transit routes along the Northern and Central corridors while partner states should waive fees on port and border handling charges for essential goods required during this period. Closures opposed The joint EAC team chaired by deputy secretary general in charge Productive and Social Sectors, Dr Christoph Bazivamo, head of Health department Dr Michael Katende, and the director of Customs and Trade, Kenneth Bagamuhunda, cautioned partner states against closing border crossings by imposing measures that impede access to all designated points of entry and exit of cargo. “We are seeing Uganda issue guidelines limiting the number of people per truck to one, while Rwanda has directed that goods be offloaded to warehouses at the border, causing delay in movement of goods,” said Mr Bagamuhunda. “Movement of trucks and cargo must be treated as essential services,” he said. EAC is opposed to Rwanda’s directive that truck drivers offload their goods into a warehouse at the border and drive back without proper arrangements at the border with Uganda. It...

Informality is pervasive across the developing world. It is estimated that a substantial share (30%-40%) of Africa’s regional trade is informal, and that four times as many cross border traders are likely to be operating outside the formal economy than within it. Cross-border trade can encourage entrepreneurial activity and regional trade integration, and create employment opportunities for vulnerable groups. In fact, a key feature of informal cross-border trade is that most traders are women, for whom such trade is often their main or even only source of income. UNCTAD’s research found that African cross-border traders, especially women, face various obstacles that hinder their growth opportunities. Obstacles at the border include poor facilities, cumbersome processes, weak governance, payment of undue fees, harassment, bribery, and corruption. Traders also face supply-side barriers, such as misinformation about customs procedures and regulations, lack of access to capital and assets, limited literacy and entrepreneurial skills, among others. Moreover, when crossing the border through unofficial paths, female traders can be subject to fines, confiscation of goods, and sexual assault. Among these obstacles, access to finance was identified as one of the most pressing challenges for traders. However, field findings also show that most women traders have a mobile phone, which can open up opportunities to enable them to become financially included. Innovative technologies like mobile-phone-enabled solutions can expand access to basic financial services. Mobile money, for example, enables individuals to store and transact money in digital form without the need of a bank account. Research has also...

Concerned by the need to curb the spread of the Coronavirus among long distance truck drivers in the region, plans are underway to deploy mobile lab clinics at border crossings. An emergency bilateral meeting on Wednesday between Kenya and Uganda’s Health and EAC Affairs ministries also resolved to increase Covid-19 testing points on the Northern Corridor, the most affected route in the region. Nine mobile laboratories were deployed to the EAC partner states as part of a $1.8 million donation by the Mobile Laboratory Project funded by the German government through Kfw. They are equipped to also test for Ebola and Marburg, kitted with personal protective equipment but lack the Polymerase Chain Reaction (PCR) and antibody testing machine that is reliably used to test Covid-19 in humans. “Following the increase of Covid-19 cases among truck drivers from Kenya transiting through Uganda, we have proposed four testing centres in Mombasa, Kemri-Nairobi, Eldoret and at Malaba-Uganda border,” said Dr Michael Katende, the acting head of Health in the EAC Secretariat in Arusha. “We do not have testing facilities at the Kenya-Uganda border. Therefore, the region is planning to deploy mobile laboratory kits at Malaba on the Kenya-Uganda border to carry out testing,” he said. Essential goods “The PCR have arrived in Dar es Salaam and plans are underway to fit each vehicle by Monday. Kenya will collect their labs once they are fitted with PCR,” said Dr Katende. “Rwanda, Tanzania, Uganda and Burundi have already received their mobile labs” said Dr Katende....

Ugandan President, Yoweri Museveni has revealed that he has been on private talks with fellow East African Heads of State, Dr John Magufuli and Kenya’s Uhuru Kenyatta on matters concerning the region in these pandemic times. “I had very long discussion with HE Uhuru Kenyatta and HE Paul Kagame regarding truck drivers. I also talked to HE John Magufuli on slightly different subject,” Tweeted the Ugandan Head of State through his Twitter account, without mentioning what exactly he was discussing with his Tanzanian counterpart. President Museveni explained that Presidents, Kagame, Kenyatta and He, have agreed to hatch common plan for truck drivers whose transit vehicles criss-cross the region delivering cargo goods; still whatever agreement or plan that the trio endorsed remains under tight folds for now. The issues of treatment of truck drivers from Tanzania and Kenya destined to Uganda and Rwanda has made headlines recently as host landlocked countries have been accused of deporting instead of treating truckers who test positive for Covid-19. In another development, the EAC Partner States have been urged to treat truck drivers and crew who test positive for COVID-19 in the host Partner State rather than deporting them to the country of origin as this will result in further spread of the disease. Through a 17-page document titled ‘EAC Administrative Guidelines to Facilitate Movement of Goods and Services During the COVID-19 Pandemic’ sent to Partner States, the Arusha-based Secretariat calls on Partner States to enforce mandatory screening or testing of truck drivers and crew...

COVID-19 is a global pandemic that has killed over 200 000 people, more than the World War II as observed by the UN Secretary General Antonio Gueterres. The IMF has summed the pandemic’s economic effects as the Great Lockdown that far exceeds effects of the 1930s Great Depression. Domestic and international trade has stalled save for trade in pharmaceuticals, protective equipment and other life-saving essentials as countries have closed their borders in an effort to contain the spread of the coronavirus. Stalling operationalisation of the African Continental Free Trade Agreement may be one of the major casualties of Covid-19 as discussions to postpone AfCFTA to January 2021 gain momentum. The rationale behind stalling AfCFTA in the face of the marauding Covid-19 is grudgingly acceptable as it sadly means delaying the onset of Africa’s industrialisation. AfCFTA is premised on the success associated with trade liberalisation which is also linked to trade facilitation. While in the short term, Micro Small Medium Enterprises (MSMEs) and women businesses may not benefit from trade liberalisation, it is in the long term that the country experiences welfare gains. This will be evident in growth of MSMEs, increased competition, economies of scale, reduced trade barriers, total growth of the economy, employment creation and positive flows to the fiscus. Women-owned businesses and MSMEs account for almost 70 percent of informal cross border trade. Women have been disproportionately affected by Covid-19 due to the multiple roles they play in the economy as workers, traders, tax payers and consumers. As...

EAST African Community (EAC) partner states have been urged to treat Covid-19 truck drivers and crew in a specific host state instead of deporting them to their countries of origin.The call has been made as deporting them would result in further spread of the deadly disease. The EAC Secretariat has called on the states to enforce mandatory screening or testing of truck drivers and crew at border posts and undertake mobile monitoring during transit at selected inland points. In its 17-page document titled ‘EAC Administrative Guidelines to Facilitate Movement of Goods and Services During the Covid-19 Pandemic’ that has been sent to partner states, the Secretariat has urged member states to quarantine those with symptoms for 14 days under the supervision of the respective ministry responsible for health. The member countries are supposed to facilitate cross-border trade during the ongoing crisis occasioned by the novel coronavirus, adopt a multi-sectoral and coordinated approach, provide access at all designated points for entry and exit of goods, treat cross-border movement of trucks and cargo as essential services. The guidelines released by the Senior Public Relations Officer, Corporate Communications and Public Affairs Department at the EAC Secretariat, Mr Simon Owaka, the Secretariat says that among items that are supposed to be prioritised as essential goods to mitigate the Covid-19 pandemic are food, fuel, medicaments, agricultural products and inputs, security supplies, emergency and humanitarian relief goods. “To mitigate critical shortages of equipment and supplies, partner states have been called upon to promote local production of...

In a 17-page document titled 'EAC Administrative Guidelines to Facilitate Movement of Goods and Services During the Covid-19 Pandemic' sent to the six partner states, the EAC Secretariat called on member states to enforce mandatory screening or testing of truck drivers and crew at border posts. Undertaking mobile monitoring during transit at selected inland points is also important, it said. Partner states were further advised to quarantine those with symptoms for 14 days under the supervision of the respective health ministries. To facilitate cross-border trade during the ongoing crisis occasioned by the novel coronavirus, member countries must adopt a multi-sectoral and coordinated approach, it said. They need to provide access at all designated points for entry and exit of goods and treat cross-border movement of trucks and cargo as essential services, the document underlined. Items to be prioritized as essential goods to mitigate the Covid-19 pandemic are food, fuel, medicaments, agricultural products and inputs, security supplies, emergency and humanitarian relief goods, it said. To mitigate critical shortages of equipment and supplies, member states need to promote local production of the items required to contain Covid-19, for example, medicaments, sanitizers, protective gear and ventilators, it said. “Partner states have further been advised to support the micro, small and medium enterprises (MSMEs) sector which employs many East Africans by exploring avenues to enable MSMEs to remain in business and expand as a foundation for the post-Covid-19 recovery process,” the statement reads in part. Transporters and transporters' associations must adhere to the requirement...