The African Continental Free Trade Area is a continental agreement which came into force in May 2019. It covers trade in goods and services, investment, intellectual property rights and competition policy. Of the 55 African Union member states, only Eritrea has yet to sign it. The immediate objective of the free trade area is principally to boost trade within Africa by eliminating up to 90% of the tariffs on goods and reducing non-tariff barriers to trade. In 2017, the exports and imports between African countries represented only 16.6% of Africa’s total exports. This figure is low compared with exports within other regions: 68.1% in Europe, 59.4% in Asia, and 55.0% in America. Proponents of the free trade area say that increasing intra-Africa trade will provide larger markets for African producers and encourage manufacturing. It will also help achieve a better connection between production and consumption. The United Nations Conference on Trade and Development argues that the phase of transition to the free trade area alone could boost intra-African trade by 33% and increase manufacturing in Africa. This line of argument is that free trade leads to industrialisation and structural change. But in my view it works the other way round: industrialisation leads to free trade. Industrialisation should come first Low intra-Africa trade is indeed an indication that African countries do not consume what they produce. But this is a problem of production (product focus), not trade. The export products of most African countries, which follow the colonial pattern, influence the...

A digital platform specifically designed to address the information needs of women in business and connect them via a custom-built social networking tool was launched over the weekend in Kigali, Rwanda. The platform, known as 50 Million African Women Speak, was unveiled during the Global Gender Summit in the Rwandan capital. It primarily seeks to help economically empower women by providing a one-stop-shop for a wide range of financial and non-financial services that women need to start and grow successful businesses. The initiative which is accessible at www.womenconnect.org is implemented by the Common Market for Eastern and Southern Africa (COMESA), East African Community (EAC) and the Economic Community of West African States (ECOWAS). It will allow women in 38 African countries to find information on running businesses, accessing financial services, create business opportunities online and access training resources, ultimately contributing to their economic empowerment. “I certainly believe that the creation of this platform is a very practical way of speaking to the general agenda of empowering women. I think a lot has been said and now we have come to a stage where we have practical initiatives such as this one,” said COMESA Secretary General Chileshe Kapwepwe. Through a robust social networking functionality that has been embedded in the platform, women will have opportunities for peer-to-peer learning, mentoring and sharing information and knowledge, connecting via the web-based platform or through the 50 Million African Women Speak mobile app. The platform is touted as having the potential to unleash a dynamic...

As the East African Community (EAC) Marks 20 years of regional integration, the East African Business Council has organized a high level business and investment summit. Slated for November 28th and 29th this year, the meeting is intended to discuss wys of making East Africa a leading trade and investment destination and how to increase intra EAC trade. This year, EAC is celebrating 20 years since its revival, marking the signing of the Treaty for the Establishment of the East African Community which was signed on 30th November 1999. EAC is one of Africa’s fastest-growing regional blocs that registered an economic growth of 5.7 percent in 2018. “While we have achieved many milestones, such as the establishment of the Single Customs Territory and One-Stop Border Posts (OSBP), which have eased the free movement of persons and goods and facilitated trade, there are still several challenges to be addressed, including reducing Non-Tariff Barriers (NTBs), protectionist tendencies by Partner States, and delays in harmonization and domestication of EAC-agreed decisions and directives.” A statement from EABC reads in part. The Business Summit will discuss and address some of the challenges hindering businesses to thrive. According to Article 7 of the Treaty for the Establishment of the EAC states on people-centered and market-driven cooperation as a principle to govern practical achievements of the objectives of the EAC integration process. Article 128 emphasizes on strengthening of the Private Sector as a key partner in the EAC integration. But the question is:  How do we make business the top agenda for the...

The UN Economic Commission for Africa (ECA) and Trademark East Africa (TMA) launched the National impact assessment report that presented the effects of the African Continental Free Trade Area (AfCFTA) on Uganda, during a national AfCFTA stakeholder consultation meeting on 31 October 2019. Emphasizing that regional platforms are “the way to go” for developing countries to overcome trade challenges, the Minister for Trade, Industry and Cooperatives; Amelia Kyambadde, used her opening statement as an opportunity to applaud the ECA/TMA partnership in supporting regional integration in Eastern Africa. Addressing key players from Government, civil society, academia and private sector, she suggested that the AfCFTA is an instrument for harvesting Africa’s many prospects, saying: “I see more opportunities in Africa than any other continent in the next ten years. AfCFTA is the way to go. I foresee interconnectivity, industrial growth, competition, entrepreneurial development, improved negotiation as a region, regional value chains, standards, and an opportunity to improve future negotiations”.  The Minister deemed the AfCFTA well aligned with Government priorities of transfoming Uganda into a developed economy through building productive capacity and market integration.  Having given credit to the crucial role Uganda played as chief negotiator and champion during the AfCFTA negotiations, the Minister gladly reaffirmed the Government’s commitment to the implementation of the agreement, which will be supported through various trade promotion and capacity enhacement programs.  What the AfCFTA means to Uganda  Uganda’s enthusiasm for AfCFTA is well founded. The forum proceeded to present an Impact Assessment Report, set out by Andrew...

TradeMark Africa has signed a partnership with African Union aimed at boosting intra-African trade and realisation of the ambitious Africa Continental Free Trade Area. The agreement was signed by Amb. Albert Muchanga, Commissioner for Trade and Industry, AU and Amb. Erastus Mwencha, TradeMark EA Board Chair and Frank Matsaert, CEO, TradeMark EA. Commenting about the development, Muchanga said, “AU is indeed excited to work with TMA, renowned organisation that has implemented successful trade facilitation programmes in East Africa. We want to complement our efforts in implementing the ambitious boosting intra African trade programme, leverage TMAs experience and ensure similar trade facilitation initiatives are implemented to boost trade and prosperity for the people in this region.” On his part,  Mwencha said: “This partnership with the African Union is an important milestone and embodies our vision for a prosperous Eastern Africa. TMA can help fast-track implementation of the AfCFTA by supporting the African Union (AU) programme for Boosting Intra-African Trade (BIAT). By implementing quick win measures to ‘thin’ borders and reduce the cost and time to trade along key corridors, TMA will help keep momentum going for this ambitious initiative to be realised, while countries are involved in the longer-term exercise of negotiating trade and tariff regimes.” TMA’s operations across eight countries, working with government, private sector and civil society to address high trade costs in Eastern Africa and support export growth, is well-positioned to support the African Union on its vision for an Integrated, Prosperous and Peaceful Africa, driven by its...

Our Reporter. The African Union (AU) has signed a partnership with TradeMark Africa (TMA) aimed at boosting intra-African trade and fast-tracking the realization of the Africa Continental Free Trade Area (AfCFTA) ) in selected Southern and Eastern Africa countries – Uganda, Kenya, Tanzania, Rwanda, Burundi, South Sudan, Ethiopia, DRC, Zambia, Malawi, and Mozambique . The agreement was signed in Addis Ababa this week by Amb. Albert Muchanga – the AU Commissioner for Trade and Industry, Amb. Erastus Mwencha – the TradeMark EA Board Chair and Frank Matsaert – the TradeMark EA CEO. Speaking at the signing, Amb. Albert Muchanga – the AU Commissioner for Trade and Industry noted that the ‘AU is indeed excited to work with TMA; renowned organisation that has implemented successful trade facilitation programmes in East Africa.’ Amb. Albert Muchanga said; “We want to complement our efforts in implementing the ambitious boosting intra African trade programme, leverage TMAs experience and ensure similar trade facilitation initiatives are implemented to boost trade and prosperity for the people in this region.” On behalf of TradeMark Africa, board Chair, Amb. Erastus Mwencha said, “This partnership with the African Union is an important milestone and embodies our vision for a prosperous Eastern Africa. TMA can help fast-track implementation of the AfCFTA by supporting the African Union (AU) programme for Boosting Intra-African Trade (BIAT).” “By implementing quick win measures to ‘thin’ borders and reduce the cost and time to trade along key corridors, TMA will help keep momentum going for this ambitious initiative to...

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Trade into Africa The signing of the Kigali Declaration in 2018 marks a significant shift in expectations for intra-African trade. Regarded as the first step towards the establishment of a Continental Free Trade Area (AfCTA), the commitment shown by African political leaders shows that the issue is receiving priority status. The continent’s population of 1.2-billion represents a huge and potentially lucrative market, with the 55 members states of the African Union having a combined gross domestic product (GDP) of $2.5-trillion. However, many African countries have stronger trading ties with countries on other continents that they do with their neighbours. The reasons for this are long-standing and complex and will require investment in logistics and infrastructure to overcome. But political will is a major component in the equation and the Kigali Declaration shows an intention to make trading among Africans easier. An AfCFTA Business Forum has been established to allow for private sector engagement with the formulators of policy. This should allow for realistic and workable trade agreements. The United Nations Economic Commission for Africa (ECA) has suggested that by the year 2022, the AfCFTA could lead to an increase in intra-African trade by as much as 52%. Fully 30% of South Africa’s exports are to other countries in Africa, but a massive 83% of this volume is into Southern Africa. This means that the potential for South Africa to grow its exports into other parts of Africa is enormous, if the infrastructural obstacles can be overcome. The Southern African Development Community (SADC) is a 16-member inter-governmental organisation with...

The financial services sector continued to dominate the East African deals space in the 10 months to October, helping drive the number of disclosed deals higher by 46 percent to 91. Analysis by advisory firm I&M Burbidge Capital shows there has been increased activity in the region, largely led by private equity investments, mergers and acquisitions. The number of disclosed deals has gone up to 91 from 62 in the same period of last year, with the disclosed value of transactions hitting $1.6 billion (Sh162.6 billion). Kenya led the region with 68 deals, followed by Tanzania (14), Uganda (13), Ethiopia (7) and Rwanda (6). “The highest volume of deals in the year to date has been recorded in the financial services sector— 20 out of the 91 disclosed deals. Other sectors that have seen significant deal activity are the agribusiness sector and the energy, oil and gas sector,” said I&M Burbidge in the October 2019 East Africa financial review report. The disclosed value of deals in the same period last year stood at $1.16 billion (Sh118 billion), although due to the large number of deals whose value remains a secret, pinpointing the exact financial value of activity is difficult. In terms of disclosed value, the energy, oil and gas sector contributed the lion’s share at $797.5 million (Sh81 billion) even though it had only half the number of deals as the financial sector at 10. Deals in this sector tend to be large ticket, with the most significant this year...

Harmonizing airspace is one of the issues that the East Africa Business Council will discuss during the East African Business and Investment summit slated to take place in Arusha, Tanzania from November 28 to 29. Denis Karera, the Vice Chairman of the Council told members of the press on Wednesday that the summit seeks to address the most pressing issues challenging business in the region, especially cross border trade. "Non-tariff barriers impede cross border trade. One of the key things we want to raise, again, is domestication of airspace so that our airlines can move easily and quickly and tickets can become cheaper as well," he said. He said that none harmonized and heavy duties imposed on airlines landing at different African airports drives up the flight ticket prices. "You have to wonder why flight tickets are expensive in the region. Rwanda charges taxes, Kenya charges taxes, and Uganda charges taxes among others on handling services for every landing. We have to deal with this and domesticate airspace as it is happening elsewhere. We want to advocate so that governments slash such heavy taxes. We have been discussing this for so many years and now we need harmonization of the airspace," he raised. He cited an example of some airlines that charge $800 for a passenger flying from Kigali to Nairobi for one hour. "This impedes movement of people. A flight ticket price could go for $110 but due to heavy taxes, it rises," he said. Other issues to be...