For the first time, Africans need visas to travel to less than half of other African countries, the report finds. A record 87% of African countries either improved or maintained their score, an increase of 9 points from 2018. The biggest improvements were made by Ethiopia, which moved up 32 places to join the top 20 in terms of openness, mirroring the country’s progress in the World Bank’s Ease of Doing Business Index. Senegal’s move to introduce visas on arrival for some African countries and removing visas required before travel pushed it up into the top 10. Yet the freedom of movement that will be needed to make the Africa Continental Free Trade Area (AfCFTA) a success remains a work in progress. Africa’s infrastructure deficit was a central theme at the AIF, which highlighted the need to attract investment into large-scale railway and road projects. Such projects will both require and further stimulate the free movement of people. Only two African countries, Seychelles and Benin, offer visa-free access to all Africans. Higher income African countries are among the laggards. Seven out of eight of Africa’s upper-middle income economies have low visa openness scores, the report finds. Egypt, Morocco, Algeria and Cameroon remain near the bottom of the table. Trust deficit The absence of the protocol for free movement of persons was a notable omission from the agenda at the African Union Summit in Niger in July, according to a paper by Mehari Taddele Maru of the Migration Policy Centre at the European University Institute in Florence. The AfCFTA was launched at...

First international digital road freight platform to be launched in the continent; Provides shippers and carriers a one-stop platform for road freight connections for domestic shipments within South Africa and international movements to several neighbouring countries; Further expansion to connect shippers and carriers within Sub-Saharan Africa (SSA) is planned for early 2020. Digital freight forwarder Saloodo! a subsidiary of DHL Global Forwarding, the leading international provider of air, sea and road freight services, today launched its digital logistics platform for shippers and transport providers in South Africa, bringing the first digital road freight solution to the region. An efficient road freight network is a key conduit of trade within a geographically wide-spread country such as South Africa but also with 16 landlocked countries within Sub-Saharan Africa (SSA). However, much of the region’s road freight operations remain fragmented and highly traditional, missing out on the visibility, efficiency and security that logistics technology offers. “Digital transformation is a top priority for the industry and given the demographics, we expect demand for digital transformation to be driven by emerging markets globally,” said Tobias Maier, CEO of Saloodo! Middle East and Africa. “Africa is the world’s youngest continent with 60% of the continent below 25. This is a dynamic generation of digitally-minded young adults, demanding smart, digital solutions both on the business and home front.” With South Africa as its launch pad into Sub-Saharan Africa, Saloodo! is the first digital logistics platform available in the region that offers a single, simple and reliable interface...

Growing momentum behind regional integration, economic reforms, technological advances and infrastructure development are among the key factors fuelling business growth in sub-Sahara Africa, said a new whitepaper released by Dubai Chamber of Commerce and Industry in cooperation with the Economist Intelligence Unit (EIU). The report, entitled “Promise and Perils: Scaling up businesses in sub-Sahara Africa”, was issued ahead of GBF Africa 2019 in Dubai. The findings shed light on the current business climate in sub-Sahara Africa and examined attractive business prospects offering the most potential for investors in the UAE and wider GCC region. Key growth drivers The report highlighted the importance of regional integration initiatives such as the East Africa Economic Community, Single African Air Transport Market and African Continental Free Trade Area (AfCFTA) in removing trade barriers and driving business exchange. The AfCFTA is expected to liberalising trade and investment policies and ease easing operational challenges related to international money transfers and payments. Combined, these allow African SMEs to expand operations across markets, creating attractive opportunities for investors too. Expanding telecommunications networks are facilitating the growth of internet connectivity, mobile money and new digital services that build on it. Mobile money, which facilitates money transfers and payments, is also a growth enabler as it moves into business lending. Improved internet connectivity is expected to drive the next wave of technological innovation, enabling companies to develop new, digital services for consumers on the continent. By 2025, 3G mobile network coverage is expected to account for 60% of the mobile...

The business summit scheduled to take place in Arusha from November 28th -29th, this year will bring together more than 500 business people with top chief executive officers (ceos), industry champions, investors from the region and beyond to engage in dialogue with the high-level policy decision makers, including the EAC Secretary General, the EAC Council of Ministers and the East African Legislative Assembly. Executive Director of Tanzania Private Sector (TPSF) Godfrey Simbeye said in Dar es Salaam yesterday that the summit will also discuss measures on how they can boost intra trade level between the EAC countries up to 50 per cent from the current 12 per cent. “The summit will have various sessions including trade and investment climate, harmonization of the tax regime and enhancing public-private collaboration session which will both together explore various issues”, he said. According to Simbeye, the trade and investment climate session will explore main challenges inhibiting intra-EAC trade, key recommendations to significantly diversify EAC economies and to enhance EAC trade and key policy recommendations to boost investments into the EAC. The conference will also discuss on key issues to be addressed to promote the community as a single investment area and how EAC as a region can leverage reforms to address the cost of doing business and attract significant FDI. The harmonization of the tax regime will look at establishment of a regional tax and regulatory partnership for development initiative with the participation of the business community, governments and tax regulatory authorities will also...

The value of intra-trade among East African Community partner states increased to $5.98 billion in 2018 from $5.46 billion in 2017, accounting for a 9.4 per cent growth. This comes as member countries opted to trade with each other in the wake of falling demand for the region’s agricultural products in the US and the rest of the world. The East African Community Trade and Investment Report (2018) shows that all EAC member states save for Burundi recorded growth in trade with their regional counterparts. The report prepared by the EAC Secretariat shows that Uganda, Tanzania, Rwanda, South Sudan and Kenya’s combined exports to the EAC and Southern African Development Community regions amounted to $3.1 billion and $1.9 billion in 2018 respectively. This shows, however, the growth in intra-EAC trade slowed down to 9.4 per cent last year compared with 24.8 per cent in 2017. The positive trend signals the importance of intra-EAC trade that has been stifled by persistent trade disputes on rules of origin, non-tariff barriers, inadequate value addition to the agricultural sector and competition from other producers and regional blocs that benefit from export subsidies. In 2015 and 2016, intra-EAC trade was in the negative territory. Burundi’s total trade with other EAC partner states fell by 11 per cent to $150.9 million in 2018, from $162.6 million in 2017. Kenya’s total trade with EAC partner states increased by 4.7 per cent to $1.95 billion in 2018 from $1.86 billion in 2017, mainly on account of increased total trade...

The East African Community (EAC) and the Development Bank of South Africa entered into a Memorandum of Understanding (MoU) at the Africa Investment Forum held in Sandton from 11 to 13 November. CNBC Africa’s Kopano Gumbi spoke to Kenneth Bagamuhunda, Director General, East African Community and Mohan Vivekanandan, Group Executive, Origination and Coverage at the DBSA about what the MOU entails. Source: CNBC Africa

African countries have been urged to carefully analyze global lessons and think beyond short-termism so as to effectively tap into the benefits offered by the African Continental Free Trade Area (AfCFTA) Agreement. The latest call was made by the Institute for Security Studies (ISS), an African non-profit organization, as it stressed that "global lessons show that for AfCFTA to work, the continent's leaders must think beyond short-term election cycles." The ISS, in its latest publication on Thursday entitled "Can African leaders put free trade above nationalism?" also noted that the signing of the continental free trade pact "couldn't have come at a better time for the continent," emphasizing some of the latest developments in the global trade relations. According to the institute, the collective effort required to get 54 of the 55 African Union (AU) member countries to sign the AfCFTA, "particularly on a continent divided by disparate political agendas, short-termism and sporadic diplomatic standoffs, shouldn't be underestimated." "While the agreement is lauded as an African solution to African problems, it is worth remembering the pitfalls of those who've traveled a similar journey to avoid the same mistakes. This is even more important as trade agreements worldwide show signs of unraveling," the ISS said. Noting that trade relations in Europe were forged over decades following World War II to counteract the factors that caused the war, and collaborate for sustained economic growth and prosperity. Reaching agreement was an arduous process, the ISS stressed that "Africa seeks the same outcome in...

The business summit scheduled to take place in Arusha from November 28th -29th, this year will bring together more than 500 business people with top chief executive officers (ceos), industry champions, investors from the region and beyond to engage in dialogue with the high-level policy decision makers, including the EAC Secretary General, the EAC Council of Ministers and the East African Legislative Assembly. Executive Director of Tanzania Private Sector (TPSF) Godfrey Simbeye said in Dar es Salaam yesterday that the summit will also discuss measures on how they can boost intra trade level between the EAC countries up to 50 per cent from the current 12 per cent. “The summit will have various sessions including trade and investment climate, harmonization of the tax regime and enhancing public-private collaboration session which will both together explore various issues”, he said. According to Simbeye, the trade and investment climate session will explore main challenges inhibiting intra-EAC trade, key recommendations to significantly diversify EAC economies and to enhance EAC trade and key policy recommendations to boost investments into the EAC. The conference will also discuss on key issues to be addressed to promote the community as a single investment area and how EAC as a region can leverage reforms to address the cost of doing business and attract significant FDI. The harmonization of the tax regime will look at establishment of a regional tax and regulatory partnership for development initiative with the participation of the business community, governments and tax regulatory authorities will also...

The East African Community (EAC) and the Development Bank of Southern Africa (DBSA) signed a strategic partnership agreement at the African Investment Forum in South Africa. The strategic partnership with EAC will enable the DBSA to support collaborative initiatives that will crowd-in resources for the development of infrastructure that promotes regional integration. The partners will also work together on project preparation and ultimately co-financing of projects and capacity building. Speaking at the signing ceremony Mohan Vivekanandan, DBSA’s Group Executive said, “These partnerships are vital for the development of infrastructure on the continent.  The signing of the two strategic partnerships today with EAC will enable us to work together and support African governments in expediting key infrastructure projects.” On his part, Mr Kenneth Bagamuhunda, EAC Director General Customs and Trade, speaking on behalf of the EAC Secretary General, Liberat Mfumukeko, said that the scope of partnership with DBSA is quite big and comes at an opportune time when EAC is mobilizing funding to implement the Heads of States approved priority projects in infrastructure and health, as well as projects in other sectors. EAC is looking forward to leverage on this partnership to support the development, packaging, and financing of these projects. Source: Eagle online

Intra-regional trade within the East African Community (EAC) bloc rose by 10.3 per cent last year, courtesy of harmonisation of cross-border rules and procedures. “Reforms taken under the Customs Union has also boosted intra-regional trade,” Christophe Bazivamo, EAC deputy secretary general responsible for productive and social sectors, said in Arusha November 11. He said intra-EAC trade catapulted to $3.2 billion last year from $2.7 billion in 2016 and $2.9 billion in 2017. Bazivamo disclosed this at the just concluded second meeting of the EAC Development Partners’ Group (DPG). The meeting held at the EAC headquarters deliberated on key aspects of the economic integration and infrastructure development. Officials at the EAC secretariat officials say there was “no one rule or procedure” introduced but insisted generally most of the trade procedures within the region have been simplified. They cite the operationalisation of the EAC Single Customs Territory (SCT), the Authorised Economic Operator (AEO) and One Stop Border Post (OSBP) and their respective rules and regulations as having a multiplier effect on the ease of doing business in the region. Alongside with these is enhanced customs operations inter-connectivity in the region which has seen the introduction of Electronic Cargo Tracking System to monitor the movement of traded goods across the region. Bazivamo told representatives of development partners that despite a host of challenges like scarcity of resources, the EAC integration process was on course. “A number of achievements have been made in the four pillars of integration which include the Customs Union and...