Ghana’s exports to the UK remain largely primary products The Business Climate Report has urged the country to change its old practice of exporting primary products to the United Kingdom (UK), which has persistently resulted in a negative trade balance at the country’s expense. The 2020 report indicated that the UK imported US$242million worth of goods, while Ghana on the other hand imported US$473million worth of goods from the UK – presenting a negative trade balance of about US$231million. This, the report said, is attributed to factors such as the country’s continuous export of raw materials and import of manufactured goods, coupled with a drop in the level of exports against imports in trade with the UK – a trend that may continue for a long time if nothing concrete is done to change the narrative. “The goods traded between the two countries have not changed substantially over the period. Ghana’s exports to the UK remain largely primary products, while imports from the UK have mainly been manufactured goods. This accounts for the negative trade balance to the disadvantage of Ghana. Our forecasts show that this trend is likely to continue into the near future,” the report stated. Top-five exports from Ghana to UK, which are mostly in their raw state, remain as follows: mineral fuels, oils, and distillation products; meat, fish and seafood preparations; cocoa and cocoa preparations; edible fruit, nuts, peel of citrus fruit, melons; and edible vegetables and certain roots and tubers. On the other hand, top-five...

Fintech companies in Africa are flourishing by producing digital systems and infrastructure to make financial services more efficient. And with the launch of the African Continental Free Trade Area (AfCFTA) at the start of this year, the companies are well positioned to replicate this success by providing solutions for what is the largest free trade area globally by the number of countries taking part in it. Solving cross-border payment within the continent could “exponentially increase intra-Africa trade,” according to the United Nations Development Programme and the AfCFTA secretariat. In a case study cited in one of their recent reports, Godwin Benson, the CEO of Tuteria, a Nigerian peer-to-peer learning platform, says: “It should be easy for customers in Egypt or Rwanda to pay a business in Nigeria. Recently, a customer from Cameroon wanted to pay us but could not carry out the transaction. Without seamless intra-African payments, businesses like Tuteria, especially those run by young entrepreneurs, may not be able to trade across the continent.” AfCFTA aims to increase intra-African trade by the creation of a single market There’s relatively low trade amongst African countries, compared to other parts of the world. For instance, intra-African trade (the average of intra-African exports and imports), was around 2% in 2015-2017, compared to 61% for Asia and 67% for Europe. AfCFTA aims to create a single market for goods and services in Africa by progressively eliminating tariffs and non-tariff barriers to trade. It was brought about by the African Continental Free Trade Agreement , which has been signed by 54 of the...

TradeMark Africa (TMA) and the Agence Française de Développement (AFD), signed this afternoon a €29.9 million (approx. USD 35.5 million) grant agreement to contribute to more sustainable and inclusive regional economic integration in the Horn of Africa. The funding comes from the European Union, who delegated it to AFD via a €32 million total financing agreement, signed one week earlier between the two parties. The TMA-AFD project will focus on the Djibouti corridor as the main artery of trade for Ethiopia, whilst also supporting more inclusive trade between Djibouti and Ethiopia. The overall objective is to enhance the competitiveness of this corridor through logistical and regulatory improvements (reduction of transport and transit times at ports and border crossings, simplification of procedures and reduction of associated costs) and strengthening the capacity of stakeholders to benefit from these improvements, including the most vulnerable. It will be implemented according to four lines of operation: Reduction of trade costs and time along the Djibouti-Ethiopia corridor, from Djibouti Port to the Galafi border post and the dry ports in Simplification and harmonisation of procedures, standards and regulations governing trade between the two countries, bringing them into line with the various trade agreements signed, with a view to their Support to enterprises and producers in the logistics sector both in Ethiopia and in Djibouti and in the export Support to the most vulnerable populations: small traders at the borders, women operating in export sectors, , to enable them to take advantage of these improvements. In 2019,...

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...

The IOTA NFT Marketplace aims to solve the existing challenges of other NFT platforms like a high-fee structure. Access to the test version of the IOTA NFT marketplace is now available as users can create free accounts on the platform. IOTA, the open-source distributed ledger and IoT-specific blockchain platform, is now diving into the world of NFTs. On Monday, July 12, the IOTA community announced the launch of the IOTA NFT marketplace. The launch happened on the IOTA 2.0 DevNet illustrating the future of digital assets and NFTs that are accessible to all. IOTA notes that its feeless protocol helps it to deliver the right NFT infrastructure while solving some of the existing limitations of the NFT market. Non-fungible tokens have created a massive rage in the crypto space over the last six months. Besides, the market has witnessed NFT sales worth Millions-of-dollars in a short time. As the name suggests, non-fungible tokens help in the unique representation of assets. This could be anything like a piece of artwork, videos, images, etc. Thus, NFTs are basically cryptographic tokens representing something unique in a digitized form. In today’s world, anything can be digitized and represented as an NFT. While NFTs have seen major market acceptance because of their value proposition, IOTA thinks that there are still many drawbacks. With the existing setup of the NFT market, getting the NFTs to the buyer is very expensive. It involves high-end costs like the minting fee for creating the NFT, platform listing costs additional, then comes...

Most African governments seem lost to find the solution to Covid-induced economic problems. Africa recorded its first Covid case in Egypt on February 14 2020. Since then, all the countries have reported cases with some economic distress plunging in. Initially confined to capital cities, cases are now reported in a significant number of countries, multiple provinces and regions. By May 4 2020, the number of confirmed Covid cases had risen to 44, 873 and caused 1, 807 deaths. The African countries with the highest number of infections are South Africa, Egypt, Morocco and Algeria. However, the full scope of the pandemic remains uncertain, as cases are underreported and the accuracy of data collection varies considerably. On April 17 2020, the World Health Organisation (WHO) warned that Africa could be the next epicentre of the coronavirus. Although the number of Covid cases and fatalities might still appear comparatively low in Africa than in other regions, the looming health shock of Covid could have disastrous impacts on the continent already strained health systems, and could quickly turn into a social and economic emergency. Beyond health risks, the Covid shock to African economies is coming in three waves: Lower trade and investment from China in the immediate term; a demand slump associated with the lockdowns in the European Union and a continental supply shock affecting domestic and intra-African trade. It is shaking commodity-driven growth models that had largely failed to create more and better jobs or improve well-being. On the health front, greater...

In a bid to drive U.S. investment in the African energy sector, the U.S.-Africa Energy Forum (USAEF) 2021 kicked off on Monday with a virtual session – organized by Energy Capital & Power – featuring petroleum ministers from Republic of the Congo and Equatorial Guinea along with leading energy and finance industry leaders. Under the theme, The U.S.-Africa Energy Partnership: Successes and New Horizons, the first of two virtual sessions identified key factors behind investment success stories on the continent, as well as leading opportunities for future cooperation, centering on the clean energy value chain and full implementation of the African Continental Free Trade Agreement (AfCFTA). Opening remarks were given by H.E. Bruno Jean Richard Itoua, Minister of Hydrocarbons of Republic of the Congo – a veteran of the oil and gas industry and one of the founding members of the National Petroleum Company of Congo – and NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC). “Cooperation between America and Africa will be a key factor for the global future,” said H.E. Minister Itoua. “In energy, Africa is not the problem. Africa is the solution. This becomes even more true when you talk about the transition. We have substantial quantities of oil, but more importantly, we have substantial quantities of gas – which is the first part of the energy transition – as well as one of the most important potentials for renewables.” “We can no longer accept that more than 650 million on the African continent go without electricity every day,...

Summary Trade information portals (TIPs) are now operational in Uganda, Kenya and Rwanda while it is still being developed in Burundi Arusha. Trade within the East African Community (EAC) bloc received a boost this week as Tanzania launched her Trade Information Portal. Trade Information Portals (TIPs) are now operational in Uganda, Kenya and Rwanda while it is still being developed in Burundi. “The portal is expected to boost intra-regional trade in East Africa as well as the region’s share in international trade,” the EAC secretariat has said. The facility was launched during the Dar es Salaam International Trade Fair (DITF) by Zanzibar’s Trade and Industry Development minister Said Omari Shabaan. TIPs are intended to map out all imports, exports and transit procedures, fees as well as scrapping all unnecessary bottlenecks. According to the EAC secretariat, the facility will be launched in Burundi on July 23rd while itr will be developed in South Sudan later. Speaking at the event, Mr Shabaan underscored the importance of the portal “and how it can help traders to get right and accurate information on trade”. For his part, Tantrade director general Edwin Rutageruka urged the private sector to exploit the opportunity availed by TIP. He said the micro; small and medium enterprises (MSMEs) can use the facility “to grow their businesses by tapping into new markets”. EAC’s TIP Project regional coordinator Munyampundu Evariste hailed Tanzania for her efforts to facilitate trade in the region. He said the newly-launched TIP would have a positive impact on intra-EAC...

In Summary Kenya’s Principal Secretary for East Africa Community, Kevit Desai, said that the region was putting in place strategies to ensure economic recovery in all partner states. The Principal Secretary also said that the EAC budget for the Financial Year 2021/2022 will also prioritize Private Sector engagement by putting in place appropriate strategies to ensure the private sector takes an active and participatory role in the EAC integration agenda. East Africa countries will focus the 2021-2022 financial year with a focus on economic recovery through industrialization and inclusive growth following the adverse effects of the Covid-19 pandemic on the region. Kenya’s Principal Secretary for East Africa Community, Kevit Desai, said that the region was putting in place strategies to ensure economic recovery in all partner states from the destructive effects of the Covid-19 pandemic. “As a region, we have witnessed the devastation created within the economies of the partner states, including the fall in intra-regional trade, job losses, limited mobility within the region, and loss of lives,” said the PS. Desai, who is also the Chairperson of the Coordination Committee that brings together Permanent, Principal, Under Secretaries for EAC Affairs in the Partner States, was addressing the media at the EAC Headquarters in Arusha on Monday. Desai said that intra-regional mobility has further been hindered by the Covid-19 mitigation measures that require travellers to have valid test certificates to travel within the region and often times subjected to double testing - before departure and upon arrival at the destination...

Kenya and Tanzania manufacturers are calling for East African Community (EAC) member states to promptly resolve pending non-tariff barriers to enhance intra-trade within the region. During a trade investment forum held on Thursday hosted by Kenya Association of Manufacturers (KAM) and Confederation of Tanzania Industries (CTI) in Dar Es Salaam, Tanzania, the industry stakeholders called for speedy resolution of non-tariff barriers (NTBs) and the review of the East African Community Common External Tariff (EAC CET). Trade between Kenya and Tanzania has improved in recent years in favour of the latter and is expected to be boosted by renewed talks after a long period of hard stance. “The visit by Her Excellency the President of Tanzania, Samia Suluhu heralded a new dawn, in the relationship between Kenya and Tanzania. Let us take advantage of this enhanced friendship, to resolve outstanding non-trade barriers that hinder trade between the two countries. A win for our community, means prosperity for us all,” said Dan Kazungu, Kenya’s High Commissioner to Tanzania. Kenya’s exports to Tanzania declined from Kshs. 34 billion in 2016 to Kshs. 31.6 billion in 2020 while Tanzania’s exports to Kenya grew from Kshs. 12.6 billion to Kshs. 27.6 billion in 2020. EAC Principal Secretary Dr Kevit Desai, urged traders in the region to embrace the Buy East Africa Build East Africa Initiative in order to enhance regional intra-trade “Through this initiative, governments will be more encouraged, to promote their respective local content. Additionally, it is important that all stakeholders complement each other’s...