Kenya could be allowed to secure its own preferential market access for exports to the European Union if the regional Economic Partnership Agreement fails to take shape, EU has signaled. This comes amid continued delays by the East Africa Community(EAC) member states to ratify the EPA deal as a bloc, which would secure duty-free quota-free market access with the 28-member union. While Kenya and Rwanda signed the EPA in September 2016, with Kenya ratifying the pact the same year,Tanzania, Uganda and Burundi are yet to ratify the EPA. For the EPA to enter into force, the three remaining EAC members need to sign and ratify the agreement. The delay is threatening Kenya's free market access for its exports to Europe. EU ambassador to Kenya Simon Mordue yesterday said Kenya could be allowed to go ahead solo under the "variable geometry" provision, which allows certain members states to implement trade agreements faster than others or before others which are not ready. “Kenya is obviously very keen together with Rwanda to move forward and start this trading arrangement with European Union as quickly as possible because they full understand the benefits of this agreement,” EU ambassador to Kenya Simon Mordue said in Nairobi yesterday. “You come to us and send a signal that there is a wish to pursue variable geometry. This is something that the EU would look at very carefully and say how we would best be able to respond,” Mordue added. Tanzania in 2016 rejected the deal on claims...

A Kenyan specialty coffee auction has been launched in America, with a capacity of 38,000 tonnes to sell Kenya’s top coffee grades AA, AB and PB directly to the US with all the lots having attained over 84 points specialty coffee standard scores. The Zabuni Specialty Kenyan Coffee Auction, based in Nebraska, was officially launched by Kenya’s Cabinet Secretary of Trade, Industry and Co-operative Peter Munya. The CS highlighted that coffee roasters from North America would no longer have to travel to Kenya to bid for the beverage as they can get it at the auction and the new marketing platform will give the farmers control over their coffee. The first auction was undertaken which featured export coffee from smallholders and small estate growers from Nandi and Kiambu counties in Kenya, who appointed Kenya Planters Cooperatives Union their agent. Most of Kenya’s coffee is sold through the Nairobi Coffee Exchange with only 12 percent going through direct sales. According to Laban Njuguna, Chief Executive of Zabuni auction, the roasters who will be purchasing the coffee would know for certain that the farmer is fairly paid because the centre recognises traceability, competitiveness and transparency from the beginning to the end. “It’s about making sure the people that matter in the value chain get recognised and compensated for what they do,” said Laban Njuguna. Mr Munya said the government will continue giving support to the initiative through the formulation of appropriate policies and legal framework. The launch came ahead of the 2019...

Kenya is quickly losing its position as The East African Community (EAC) exports powerhouse, a regional trade report has shown. Nairobi-manufactured products are increasingly finding it difficult to compete with cheaper imports from China and India and those produced by regional rivals, shrinking Kenya’s share of exports to its EAC neighbours. Increase in counterfeits, non-tariff barriers (NTBs), lack of product diversification and high cost of production have also rendered Kenyan products less competitive in the market. The study by the EAC Secretariat, in partnership with TradeMark Africa, shows that Kenya’s exports to Uganda, Tanzania, Rwanda, Burundi and South Sudan are facing new threats posed by regional manufacturers who have upped their game in the production of similar products. The EAC Trade and Investment Report (2018) shows that Kenya’s exports to other EAC member states grew at a slower pace of 0.1 per cent in 2018 compared to a high of 6.1 per cent in 2017, largely due to increased efforts by regional peers in strengthening their manufacturing capacity to produce corresponding industrial products. According to the report, Kenya’s total exports to EAC Partner States have been on a downward trend for the past five years falling 11 per cent to $1.27 billion in 2018 from a high of $1.43 billion in 2014. The country’s exports to the region increased marginally to $1.273 billion last year from $1.272 billion in 2017. Among Kenya’s manufactured exports to EAC countries are processed foods, mineral products, chemical and chemical products, metals, pharmaceutical and botanical...

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...

Besides being the largest infrastructure project in post-independence Kenya, the Standard Gauge Railway, popularly known as SGR, is also one of the most controversial and misunderstood in the country’s history. Its economic impact, cost, viability and potential has been the subject of intense debate over the years and most recently with the completion of the first two phases of the project. While some hail it as an economic game-changer, others term the SGR a burden on the country citing the high level of debt used in financing it. Whatever the opinion, one thing is not in doubt – SGR is a highly transformational national enterprise. When fully harnessed, it will catapult the economies of many counties and the country as a whole to a whole new level. SGR is also a Vision 2030 flagship project underlining its long-term role in the country’s social and economic development. Phase 1 completed in May 2017 is now fully operational with 14 freight and 4 passenger trains and hit most of its targets within one year, signalling demand for cargo and passenger traffic along the corridor. For a project of this scale to be delivered within schedule is a lesson that with proper planning, political goodwill and zero corruption, the country can achieve its goal of becoming a middle income, competitive economy within the next few years. Of course, we have to do a lot more in terms of ensuring that resources allocated to projects are shielded from corruption cartels and political mischief. Let’s...

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...