Experts in regional trade from across Africa and Europe have called for harmonisation of regulatory framework across the 54 African countries that are driving the African Continental Free Trade Area (AFCFTA), in order to have successful trade integration among member state. They advised policy makers to develop clear regulatory policies that resonate with better regulatory framework for AFCFTA. They also called for reduction in customs duties across African countries and increase in the adoption of technology to enable AFCFTA succeed. They were of the view that reduction of Customs duties would increase trade volume among African nations. The experts who spoke at a webinar panel session organised recently by Webb Fontaine, suggested a unified tax regime across AFCFTA member countries and called for the political will of African governments to implement some of the trading instruments that Customs has developed, in order to ensure the success of AFCFTA. Tagged: Technology and Trade in Africa-Challenges and Opportunities, the discussants called on all AFCFTA member countries to consider the implementation of the national single window for trade and investment, and to reduce the number of security personnel at the borders, in order to facilitate faster movements of goods across borders. Analysing the different operating hours at the borders of different African countries, Executive Director, Corporate Services, Malawi Revenue Authority, Agnes Katsonga Phiri, with over 40 years experience in Customs and Excise, said uniformity of the different operating hours, remained key to achieving huge success in regional trade. She advised on the implementation...

A new worldwide wave of Covid-19. Natural disasters in China and Germany. A cyber-attack targeting key South African ports. Events have conspired to drive global supply chains towards breaking point, threatening the fragile flow of raw materials, parts and consumer goods, according to companies, economists and shipping specialists. The Delta variant of the coronavirus has devastated parts of Asia and prompted many nations to cut off land access for sailors. That has left captains unable to rotate weary crews and about 100,000 seafarers stranded at sea beyond their stints in a flashback to 2020 and the height of lockdowns. "We're no longer on the cusp of a second crew change crisis, we're in one," Guy Platten, secretary general of the International Chamber of Shipping, told Reuters. "This is a perilous moment for global supply chains." Given ships transport around 90 per cent of the world's trade, the crew crisis is disrupting the supply of everything from oil and iron ore to food and electronics. German container line Hapag Lloyd described the situation as "extremely challenging". "Vessel capacity is very tight, empty containers are scarce and the operational situation at certain ports and terminals is not really improving," it said. "We expect this to last probably into the fourth quarter – but it is very difficult to predict." Meanwhile, deadly floods in economic giants China and Germany have further ruptured global supply lines that had yet to recover from the first wave of the pandemic, compromising trillions of dollars of economic activity...

The African Development Bank Group (www.AfDB.org) and the Government of Ethiopia have signed two separate grant agreements for new projects to boost youth employment and electricity trade between Ethiopia and Djibouti. The grants fall under the Bank Group’s concessional lending window, the African Development Fund, and will go towards the Productivity Enhancement to Support Agro Industrial Parks and Youth Employment Project worth $47 million, and the $71 million Ethiopia-Djibouti Second Power Interconnection Project, which aims to boost electricity trade between Ethiopia and neighbouring Djibouti. The industrial parks and youth project will see the development of irrigation and water management infrastructure around the Integrated Agro-Industrial Parks, offering opportunities for graduate “agri-preneurs” to establish agro-related, commercially viable businesses. The $102 million venture is being co-financed with the Arab Bank for Economic Development in Africa (BADEA), with a $5.25 million contribution by the Ethiopian government. Under the scheme, 12,607 ha of irrigated land would be developed and about 3,000 youths will receive both agronomic/agriculture and business development training. Bank financing is expected to cover 4,607 ha and BADEA financing another 8,000 ha. The irrigation infrastructure will strengthen water users’ associations; protect the water-shed areas around the irrigation schemes; go towards training farmers and youth agri-preneurs on soil and water conservation practices, agricultural production, value addition and marketing; and support established youth SMEs to access credit. The project will be implemented over a five-year period (2021-2026) under the supervision of the Ministry of Water, Irrigation and Energy and the country’s Irrigation Development Commission. The...

Dr. Lawrence Haddad, Executive Director, Global Alliance for Improved Nutrition has said that the African Continental Free Trade agreement which came into place on 1st January 2021 is a great opportunity for African SMEs especially those supplying nutritious foods because it offers a platform for them to grow and shape their food system in a way that is more equitable, sustainable and nutritious Dr. Haddad made the remarks at the launch of Nutrition Conversations Africa recently. This is a platform that will enable exchange of ideas on best practices for nutrition in Africa. The initial webinar under this platform addressed ways in which nutritious food SMEs can take advantage of the African Continental Free Trade Area. Many SMEs in Africa fail to launch off efficiently or totally fail to launch fully due to challenges arising from financing. The African Development Bank (AfDB) through the Directory of Agriculture and Agro-Industry has made it possible for African SMEs in the food and nutrition sector to access finances that will enable them to scale up their businesses and offer more efficient services to the consumers. “We have three programmes that have come into effect as a result of the African Continental Free Trade agreement; One is the wholesale credit guarantee schemes which will see the AfDB guarantee up to 80 per cent pay back on financing for banks supporting SMEs in nutrition. Read original article

The African Free Trade Agreement (AfCFTA) has, in recent years, been a standing item at the Annual Conference of the Trade Law Centre (Tralac) based in South Africa. This year, it is again the case as the annual conference is, for the second year, a virtual event due to the global pandemic. In a statement, Tralac, a public benefit organisation established in 2002 to develop technical expertise and capacity in trade governance across Africa, notes that for trade in goods to take place under this free trade area, negotiated tariff concessions and preferential rules of origin are required. “While notable progress has been made in the rules of origin negotiations, we are not there yet. But, once all offers of tariff concessions, that meet the agreed modalities, have been made, the negotiations process will start in earnest. An ‘interim arrangement’ to permit trade under the schedules of tariff offers, made by end of June 2021, may be agreed, but negotiated outcomes are essential for the AfCFTA,” reads the statement. Tralac, which was set up with the financial support of the Swiss State Secretariat for Economic Affairs (SECO), further notes that trade in services negotiations are also still underway, with a focus on commitments in the priority services sectors (financial, transport, communication, tourism and business services). “Healthcare services will be included along with other services later. Work on frameworks for regulatory cooperation is also progressing. Negotiations on investment and intellectual property rights have begun. Competition policy (also on the Phase 2...

Despite agriculture being the backbone of the economy in COMESA, it accounts for only 32 per cent of the region’s GDP. Sandra Uwera, Chief Executive Officer of the COMESA Business Council, says the sector provides a pivotal role as a driver of economic growth in the region. She further highlighted the role of women as a vital link within the chain of agriculture, industry, and trade, noting that three-quarters of the employed women in COMESA work within the sector. They also dominate sub-sectors such as flowers, fresh fruits, and vegetables. Data by the bloc reveals that the sector provides livelihoods for about 80 per cent of the region’s workers, and accounts for about 65 per cent of foreign exchange earnings. The continent, which COMESA Secretary General Chileshe Kapwepwe said last month has the potential to feed its self and export to the rest of the world, has remained a net food importer for the last 15 years. Uwera spoke during the institution’s Agro-industry work group meeting that brought together stakeholders to discuss the progress made on recommendations the group put forward in 2020 and to develop a road map for the activities of 2021. The meeting was attended by various players in the agriculture sector, including dairy farmers, commercial grain farmers, tobacco leaf growers, and manufacturers, from across the region. CBC convened the meeting of the institution’s Agroindustry stakeholders to discuss the progress made on recommendations put forward by the workgroup in 2020, and to develop a road map for...

THE National Bureau of Statistics (NBS) is currently preparing the Harmonised Consumer Price Index (CPI) for the East African Community (EAC) and Southern African Development Community (SADC), which will determine a list of the final costs paid by consumers for items in a basket of common goods within the region. According to NBS Acting Director of Population, Census and Social Statistics, Ruth Minja, the harmonised CPI will be prepared according to terms and conditions of EAC as six countries across the region flex their muscles to seal the deal for the EAC Monetary Union protocol. “In preparing the Harmonised Index of Consumer Prices there are regulations guiding all the EAC countries on how to calculate prices of common goods, so that they remain constant from one period to another,’’ she said. Ms Minja said that Tanzania was equally doing the same in the SADC bloc, being one the member countries within the region as well. She insisted that the harmonised index for consumer prices within EAC and SADC countries is expected to be a composite measure of inflation in the regions. According to Ms Minja, since every member state has its development strategic plan based on a particular period, the CPI takes in consumer price inflation data from each member nation and weights them accordingly into an index The CPI index relies on a basket of consumer goods from both rural and urban regions of each nation. As all member states eye for the Monetary Union, the Index of Consumer...

The number of countries that ratified the African Continental Free Trade Area (AfCFTA) agreement has increased to 40 with the recent ratification of Zambia, Malawi, Algeria and Burundi, a top official told reporters on Friday, July 9. Secretary-General Wamkele Mene was addressing his second quarterly press briefing. He noted that the DR Congo, Seychelles and Burundi ratified but are yet to deposit their instruments of ratification, quickly adding: "But it's a very positive signal, the fact that 40 countries have ratified." "This is a very important development," Mene noted, adding that he recently visited Tanzania and had fruitful discussions with its leaders. End last month, the Secretary-General visited the country and met with President Samia Suluhu Hassan. "Its President told me that Tanzania will ratify by September and that means that one of the biggest economies in Africa is also going to ratify," he said. "With Tanzania (ratifying) it means that EAC, the entire Customs Union, will now be part of the implementation of the AfCFTA." Burundi ratified the AfCFTA on June 17, becoming the fourth East African Community (EAC) country to ratify following in the footsteps of Rwanda, the most committed country to the Agreement, Kenya and Uganda. The agreement initialed in Kigali, on March 21, 2018, aims to create the largest free-trade area in the world and the EAC business community wants things fast-tracked. The Continental Free Trade Area aims to reduce all trade costs – eliminate 90% of tariffs – and enable Africa to integrate further into...

African countries need to integrate their digital strategies in order to make goals of the Africa Continental Free Trade Area (AfCFTA) achievable and bring benefits to millions of people on the continent. This is part of the submissions of Managing Partner at Chanzo Capital, Eric Osiakwan while speaking at the recent special edition of the MTN Business Executive Breakfast Series on the theme “Accelerating SME Growth and Development – the role of Digitization”. Watch event here. Because digitization is going to play a key role in actualizing AfCFTA, governments of member countries must commit to a workable and sustainable digitization process by providing the support infrastructure and policies to help foster digital innovation notably within the private sector. Ghana has already taken the lead in providing infrastructure and the policies to drive digitization, said Osiakwan pointing to the ghana.gov platform, GHQR and the soon to be introduced e-cedi by the Bank of Ghana. But AfCFTA’s success across countries will hinge on a continent-wide approach to integrating policy-efforts and infrastructure developments of all its members. Benefits from AfCFTA cannot be achieved in silos, said Osiakwan who has extensive experience in policies and investments on the continent. “The only way to make AfCFTA work is for us to have an Africa-wide digital strategy that bring everyone along and that means we need to quickly start integrating the digital strategies for the benefit of the entire continent,” he said. Touching on the pace at which African countries are adopting blockchain technology, he argued that there is need...

Achieving African integration is not an end in itself. The purpose must be to offer the African citizenry prosperity and security. The objective of both regional and continental integration must enable African countries benefit from economies of scale, trade amongst themselves, move freely across the continent and most importantly, benefit from the common goals of Africa’s Agenda 2063, aimed at shared prosperity, unity and integration. The commemorative activities of the African Integration Day that kicked off on the 7th of July, will examine into details, the status of the continental integration and with particular focus on the role of continental integration in accelerating African economic recovery from the COVID-19 Pandemic. In the last two decades, Africa has recorded a 4.6 percent growth rate on average, despite an unfavourable international economic and financial environment. The current COVID-19 pandemic has however plunged the continent into its first recession in 25 years exposing the vulnerability of African economies. The cumulative loss of Africa's GDP is estimated at between $145 and $190 billion with worrying projections that 39 million more people could be pushed into extreme poverty, if urgent and purposed measures are not taken to address the socio-economic difficulties caused by the pandemic. Accelerating African economic recovery has brought to the fore, yet again, the need to piece the puzzle of African integration. With a fragile recovery based on the health, economic and financial measures member states were quick to implement at the onset to curb the spread of COVID-19 and mitigate the...