Addis Ababa, January 22/2021(ENA) The African Continental Free Trade Area (AfCFTA) can help drive the continent’s economic recovery from the deadly coronavirus pandemic and spur transformation, according to Economic Commission for Africa (ECA). ECA Regional Integration and Trade Division Director,Stephen Karingi said during the 6th Program for Infrastructure Development in Africa (PIDA) Week that given that Africa does not have the fiscal space for trillion-dollar stimulus packages as it attempts to build, the AfCFTA, driven by the private sector, is going to be key in unlocking Africa’s potential. He stressed that Africa will have to look for innovative alternatives to push its recovery efforts. Quality infrastructure development is crucial, too, if the AfCFTA is to spur economic growth on the continent. Results from the liberalization of trade in goods alone under the AfCFTA reform show that Africa’s global GDP and exports would increase, the director pointed out. According to him, Africa’s GDP is forecasted to increase between 28 and 44 billion USD after full implementation in 2040, as compared to a baseline without tariff liberalization. The bulk of the benefits of exports would be for intra-African trade, with intra-African exports foreseen to increase by around 50-70 billion USD. “It is worth emphasizing that two-thirds of the latter gains would be realized in the manufacturing sector, providing invaluable opportunities for industrialization,” Karingi elaborated. Furthermore, he emphasized that “integration policies should lead to convergence of incomes, and our findings are an important result.” The AfCFTA agreement instructs state parties to liberalize trade...

African Development Bank President Akinwumi A. Adesina said on Wednesday that Africa remains a fertile ground for investment, hinging on the continent’s ability to boost its healthcare sector. Adesina was speaking during the U.K Africa Investment Conference, a virtual one-day event organized by the UK Department for International Trade, which brought together UK and African business and government leaders to discuss investment and partnership opportunities. The conference highlighted four sectors; sustainable infrastructure, renewable energy, financial and professional services, and agriculture and agri-tech. As part of the conference, Emma Wade-Smith, Her Majesty’s UK Trade Commissioner for Africa, joined Adesina in a fireside chat on the theme “Building back better – utilizing UK private sector strengths and values, and business-to-business opportunities working with UK government and others going forward.” Africa, Adesina said, still possesses the same fundamentals that drove the continent’s phenomenal growth over the past decade. “The fundamentals in those phenomenal growth rates in Africa are still there. Africa still leads in terms of ease of doing business. It’s very exciting, the digital explosion that you see in Africa today,” Adesina said, listing among others the tide of mergers and acquisitions among African firms. Wade-Smith said she was heartened to learn that 10 of the fastest-growing economies were still in Africa, adding that there was not enough awareness of how much innovation was happening in the region. She said there was an opportunity to blend African and UK innovation. “I’ve been struck by how many opportunities there are,” Wade-Smith said. British...

ADDIS ABABA, Ethiopia, January 14, 2021/APO Group/ -- On 1 January 2021, at the launch of the start of trading on the basis of the AfCFTA, the Pan-African Private Sector, under the umbrella body of the African Business Council (AfBC), issued a press statement in support of this initiative. In it, the AfBC acknowledged that the start of trading under the AfCFTA presents enormous business opportunities for the Pan-African Private Sector, SMEs, Women and Youths as the continent takes this bold move towards Boosting Intra-African Trade. The launch of start of trading on the basis of the AfCFTA on follows the African Union Assembly decision made on 5 December 2020 at the 13th Extra Ordinary Session of the Assembly of the Union on the AfCFTA. The African Business Council thus took the opportunity in its statement to reiterate its support to the political leaders in this endeavour. It also highlighted the AfCFTA as an opportunity for the Pan-African Private Sector to build Africa through manufacturing, distribution, transportation, health eco-systems, among others. “The AfCFTA gives us an opportunity to drive our agenda. For many years, the African business community has been individualistic in driving the continent’s agenda. It is an opportunity for us as the African Business Council to come together and support the implementation of the AfCFTA. We are a united voice, and we can do this together”, Dr. Amany Asfour, Interim Chair Person of the African Business Council. “It is a new year, and new opportunities are emerging. As...

Rwanda Development Board (RDB) and Rwanda Chamber of Tourism (RCT) have inked an agreement with the Kenya Association of Travel Agents (KATA) and the East African Tourism Platform (EATP) to develop business and leisure travel in the East African Community. Signed this week in Nairobi Kenya, the deal will see RDB, RCT and KATA work together to implement tourism marketing and promotional programs of both countries (Rwanda and Kenya) by conducting joint-marketing activities that will drive visitors to the countries’ attractions and experiences. Under the deal, the signatory parties will also organise familiarization trips and educational webinars to promote regional travel, aimed at creating increased opportunities for private sector actors in the travel industry. “As part of the agreement, the partners will collaborate on addressing challenges faced in the region’s travel industry and explore a range of solutions and initiatives that can help transform businesses in the sector; market the region’s tourism offerings to new audiences and promote regional travel,” read a statement from RDB, concerning the deal. Among other activities agreed upon, RDB, RCT and KATA will work to provide opportunities for exchanging knowledge, expertise and best practices on travel; promote the exchange of familiarisation visits between Kenya and Rwanda; encourage tourists flows between Kenya and Rwanda and share the countries’ respective calendars of events for stakeholders information and attendance. “We are very excited about this cooperation and look forward to working more closely across the board with all the players in the travel and tourism industry as we...

THE European Union (EU) says the signing of the €3.54 million COMESA agreement that sub-delegates the implementation of coordinated border management activities between Zambia and Malawi is a welcome move. Ambassador of the EU to Zambia and COMESA Jacek Jankowski said the signing of the agreement is also a major step towards a reduction in hindrances to trade between the two countries. He added that the move will also lead to an increased seamless flow of goods between Zambia and Malawi. Yesterday, the COMESA Secretariat and the Malawian government signed the agreement a month after a similar agreement was signed with the Zambian government to upgrade its side of the border post at Mwami. Zanis reports that the chargé d’affaires at the European Union Delegation in Malawi, Aurélie Valtat, also expressed optimism that as African states start trading under the African Continental Free Trade Area (AfCFTA), the removal of any form of hindrances to cross-border trade is critical to ensure the benefits of open trade. Ms. Valtat said this is why the European Union remains committed to supporting Malawi’s trade facilitation efforts and to contribute to boosting intra-Africa trade. COMESA Secretary General Chileshe Kapwepwe and the Principal Secretary in the Ministry of Trade in Malawi, Christina Zakeyo, separately signed the sub-delegation agreement in Lilongwe and Lusaka yesterday. The project will support the implementation of key pillars of One-Stop-Border-Post operations and the implementation of major activities among them being the upgrading of the customs e-management system and bandwidth, improving inter-agency connectivity,...

Kenya’s ICT sector has seen a 10.8% average annual growth since 2016, making it one of the fastest-growing tech environments on the continent. This success can be largely attributed to various innovations in our digital space, with the ICT sector on track to creating 250,000 jobs and contributing up to 8% of GDP by the end of 2020. Kenya has firmly established itself as a digital trendsetter in Africa, but how far have we come on our digital journey? Let’s have a look at some notable developments and partnerships that have been implemented and how they may shape the future of Kenya’s digital environment. Mobile payment platforms After the launch of Safaricom’s M-PESA in 2007, Kenya has not only emerged as a leader in mobile payment platforms but has also driven its economic growth through financial inclusion. Huawei has recently partnered with Safaricom and other network providers to aid the implementation of services like M-PESA, a mobile money platform, M-TIBA, which provides medical treatment through a mobile health wallet, and Fuliza – a service that lets users with insufficient funds borrow money to complete their transactions on M-PESA. Over Kshs 6.2 billion in transactions were processed in Fuliza’s first month, and its total loans rose by 30% when the pandemic hit East Africa. Microloan platforms like Fuliza have empowered millions of Kenyans who would otherwise not have had access to finance, and it therefore comes as no surprise that Safaricom contributed 6% to our GDP in 2020. Other international platforms...

The African Union agenda 2063 is on course. After some delays due to covid, the African continental free trade area has become a reality. As part of the free trade area, the African Union passport will be availed this year. The passport launched in 2016 had been available only for diplomats and AU officials. It will now be rolled out to ordinary citizens of the African Union. What will an African Passport mean? The rationale for the passport is for African citizens to be able to cross all borders on African soil without a visa. The passport will facilitate easier movement for people to ease trade relations. As African countries strengthen ties and seek to reap strength in numbers, the passport will spell an easier transition into seamless trade on the continent. Modeled along the lines of the European Union passport, the passport will be biometric to prevent fraud and illegal issuances. AU passport and poverty: implications Africa is counted among the poorest of the poor. With over a third of Africans living on less than $1.90 a day. According to a UNICEF study, Africa’s population is expected to double by 2050 to over two billion people. The population doubling will only put more pressure on already scarce resources. Coupled with climate issues, conflicts, and uneven trade, this presents an enormous challenge that could further exacerbate the poverty situation. In light of these challenges, an African passport could serve as a useful tool for facilitating trade within the continent. This will...

AUTOMATE: East African Tea Traders Association (EATTA) confirmed that it has complied with the government’s directive to automate the Mombasa tea auction, enhancing its capacity to handle all tea produced in the country. Under the new Tea Act 2020, all teas processed and manufactured in Kenya for the export market with the exception of orthodox and specialty teas will have to be offered for sale exclusively at the tea auction floor. Edward Mudibo, EATTA managing director said in an interview that automation has been undertaken with assistance of Sh217 million from the Danish International Development Agency as the main donor  and Trade Mark East Africa (TMA). Fine details “Since then we have been working the final fine details to ensure it has the capacity to handle all tea from Kenya and in the region. We are hoping soon it will be officially commissioned by the head of state,” added Mudibo. However, a section of industry players have cautioned that the idea to have all tea sold through the Mombasa tea auction is likely to  lead to loss of some market segments which Kenya has been serving globally. Tea sector stakeholders who spoke to Business Hub said regional countries that export their tea through Mombasa tea auction are likely to take over same market segments local traders have been serving through direct sales. Kenya Tea Growers Association CEO Apollo Kiarie said already regional players who are also members of the auction are gearing up to take over markets Kenya had already developed through the second window...

THE Consumer Unity Trust Society (CUTS) says the recently launched African Continental Free Trade Area (AfCFTA) will boost Zambian’s access to a variety of goods and services. CUTS Programmes Officer Jane Zulu notes that it is important for the consumer to understand their rights in order to protect themselves as they interact in the various trading spaces. On January 1, 2021, the AfCFTA was launched with the goal of increasing intra- African Trade by over 50 percent and allow Africa to create its own value chain. The AfCFTA aims to create a single market for goods and services with the anticipation of boosting trade amongst the nations. “CUTS is pleased with the launch of the AfCFTA and is looking forward to the implementation of the AfCFTA. Consumers have the right to a variety of goods and services,” Ms. Zulu has said. She further adds that CUTS’ role in the AfCFTA agenda is to sensitize consumers on their consumer rights to ensure that there are fair trading practices in the trading spaces. Ms. Zulu says despite the benefits the AfCFTA has to offer there are some consequent challenges that the CFTA poses, adding that specific to Zambia, some of the challenges include, the lack of modern and efficient infrastructure. Other encounters are unclear information about the process, restrictions for women-led businesses, and the economic disturbance brought on by the COVID 19 pandemic. Ms. Zulu highlights, “It is therefore important for the government to put policies in place that will protect the...

After much anticipation, the African Continental Free Trade Area (AfCFTA) launched on 1 January 2021. Hailed as a catalyst for continental integration, the agreement aims to "create a single market for goods and services, facilitate the movement of persons, and promote industrial development and sustainable and inclusive socio-economic growth on the continent". However, experts caution that full implementation of the historic pact, signed in March 2018 at the AU Kigali Summit, may take years to materialise. The previous deadline for operationalising the AfCFTA was 1 July 2020, but it was pushed out to the new year after the pandemic made in-person negotiations impossible. If implemented fully, the agreement is expected to provide an economic boost of US$3.4 trillion to the continent, which is even more critical given the socioeconomic impact COVID-19 is having across Africa. Nevertheless, the truth remains that it will only live up to its potential if the benefits from intracontinental trade are inclusive for all Africans. While the AfCFTA promises to boost intra-Africa trade as whole, little is said on the impact it will have on Informal Cross Border Trade (ICBT) which is pre-dominantly led by women. Globally, ICBT is defined as trade between neighbouring countries conducted by vulnerable, small, unregistered traders. The Southern African Development Community (SADC) defines it as “businesses operating in goods and services that trades across the border, which have no official export/import license or permit within a defined threshold and frequency”. For Africa’s most vulnerable people such as women and youth, who usually constitute the majority of informal cross border traders, ICBT...