Despite the current pessimism surrounding the future of Kenya Airways, the International Air Transport Association forecasts more than double growth for the country’s air transport sector in the next 20 years. According to IATA, the sector will grow by 249 per cent over the period if the current trends are maintained, contributing $11.3 billion annually to Kenya’s GDP and supporting an estimated 859,000 jobs by 2037. BUSY ROUTE The findings were made in the Value of Aviation Report for Kenya that was launched during IATA’s Regional Aviation Forum hosted by Kenya Airways on September 17. The report looked at the total contribution of jobs and spending generated by airlines and their supply chain; trade and tourism flows; investments by users of all airlines serving a particular country as well as the city pair connections that make these flows possible. According to IATA, the air transport sector contributed $3.2 billion to the economy, amounting to 4.6 per cent of the country’s GDP in 2017. Kenya received 4.8 million foreign passengers in 2017, which supported 410,000 jobs. About $0.9 billion was spent directly by passengers, which supported 15,000 jobs. Another $0.6 billion was spent on the industry’s supply chain, supporting 96,000 jobs. Tourists who arrived by air spent $1.6 billion, supporting 257,000 jobs in the hospitality sector. According to the report, Africa remains the biggest source of air passengers to Kenya, contributing 3.1 million passengers or 70 per cent of total visitors in 2017. Europe came next with 585,000 passengers followed by Asia-Pacific 284,000,...

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Speaking ahead of upcoming annual research symposium on Sustainable and inclusive aid for trade, Atuheirwe urged governments in the region to do all that they can to ensure women have the right information to thrive in business. This is against a finding by Global entrepreneurship monitor report 2016/17 indicating that East Africa has some of the highest numbers of women entrepreneurs in the world, although, their businesses fail in high numbers. Reasons for discontinuing include unprofitability at 42 percent, lack of finance at 14 percent and other reasons at 44 percent. “We must acknowledge that women’s entrepreneurship is pivotal to East Africa’s economic transformation. It is crucial to ensure that all its citizens, especially women, are involved in trade and other economic activities”,” says Atuheirwe. The symposium, which will be held in Nairobi, is in partnership with University of Portsmouth (London). The conference will bring together 250 selected stakeholders forming a fusion of research, policy and practice. Those expected include East Africa’s government ministers, global trade policy experts, scholars, private sector players, regional women entrepreneurs and development partners. “The discussion from the symposium will offer practical solutions that will shape policies and interventions, which resonate with grassroot needs,” she says. It will explore wide ranging topics relating to empowerment of women in trade. The topics include legal and institutional barriers, inclusion and exclusion in global markets, trade policy advocacy, ICT for trade, socio-cultural enablers and limiters among other relatable issues.  Source: Capital Business

On July 6-7, 2019 I was in Niamey both for the pre-Summit Business Forum and for the African Union’s Extra-Ordinary Summit to celebrate the first Anniversary of the Signing of the African Continental Free Trade Area (AfCFTA) and launch of its operational phase. What is the outlook for the World’s largest single market? As I write, the AfCFTA process is well on track to be ready for trading in July 2020 as planned and Accra, Ghana has been chosen as a location of the AfCFTA Secretariat. In the 2019 edition of our UNCTAD Economic Development in Africa Report, titled Made in Africa: Rules of Origin for enhanced intra-African trade, we argue that it is Rules of Origin that will make or break the AfCFTA. Essentially, rules of origin are a passport for goods. Rules of Origin are at the cornerstone of what it means for goods to be labelled “Made in Africa”. They are a set of technical requirements that define goods’ eligibility for preferential tariffs on imports in a Free Trade Area. Rules of Origin Rules of origin are situated at the nexus of trade and industrial policy. Make them soft and a Free Trade Zone runs the risk of not spurring the creation of local value. Make them too strong and countries risk being considered too protectionist and firms may find them too difficult to comply with. The complexity and incompatibility of different sets of rules of origin across regional economic communities in Africa is one of the many...

The UK has this week (Tuesday 10th September) initialled an Economic Partnership Agreement with the Southern African Customs Union and Mozambique (SACU+M) that will allow business to keep trading freely after Brexit. This marks the end of formal trade discussions and the UK-SACU+M Economic Partnership Agreement will be subject to final checks before it is formally signed. The agreement allows businesses to continue to trade on preferential terms with South Africa, Botswana, Lesotho, Namibia, Eswatini and Mozambique. It also supports the economic development of these Commonwealth partners laying the foundations for new trade and investment in the future. This will help to strengthen further the trading relationship between the UK and SACU+M nations, which was worth £9.7 billion last year. The SACU+M nations are an important market for UK exports of machinery and mechanical appliances worth £409 million in 2018, motor vehicles worth £335 million, and beverages including whisky worth £136 million. Consumers and businesses in the UK will continue to benefit from more choice and lower prices on goods imported from SACU+M countries. Major imports to the UK from these countries last year included edible fruit and nuts (£547 million) and motor vehicles (£409 million). Trade continuity agreements signed cover countries accounting for £89billion of the UK’s trade. When the SACU+M agreement is signed and takes effect, this will go up to £99bn. International Trade Secretary Liz Truss said: “This trade agreement, once it is signed and takes effect, will allow businesses to keep trading after Brexit without any...

Somaliland is seeking investors to boost trade and ultimately the local economy. The semi-desert territory on the Coast of the Gulf of Aden, declared its independence from Somalia in 1991. It is a main livestock exporter. The World Bank pegs its Gross Domestic Product at $1.9 billion. As at 2017, the population of Somaliland stands at 3.5 million. The country has been working to secure recognition as a sovereign nation by the international community. In recent times, it has opened it doors for investors. Internationally acclaimed logistics company, DP world has pumped over $400 million to support the governments plans for diversification. We hear from my colleague Ronald Kato who spent a few days in Hergeisa and the port of Berbera. Kato speaks to Somaliland’s Finance Minister and Chief Executive of DP World about the company’s ongoing port expansion program. But how does this impact locals? Source: africa news

Free Trade Areas (FTAs) need institutions to oversee, promote and monitor the implementation of obligations by the State Parties. The African Continental Free Trade Agreement (AfCFTA) establishes four key institutions, in addition to various technical bodies that are provided for in the different Protocols. These institutions will be responsible for ensuring that this ambitious undertaking succeeds. The functions of the new AfCFTA institutions include political oversight and policy direction, as well as technical guidance and assistance. This will entail a new challenge for the structures of the African Union (AU); when it moves into the world of international trade regulation and ensuring compliance with multilateral trade rules. (Only five of the 55 AU members do not belong to the World Trade Organization – WTO). The Assembly of the AU is the highest decision-making organ of the AfCFTA and shall provide oversight and strategic guidance on the AfCFTA, including the Action Plan for Boosting Intra-African Trade (BIAT). It also has the exclusive authority to adopt interpretations of this Agreement on the recommendation of the Council of Ministers. The decision to adopt an interpretation shall be taken by consensus.[1] The Council of Ministers (those Ministers of the State Parties responsible for trade) must ensure the effective implementation and enforcement of the Agreement and must take all measures necessary for promoting the AfCFTA objectives. The Council of Ministers shall report to the Assembly through the Executive Council of the AU.[2] The Committee of Senior Trade Officials (consisting of Permanent or Principal Secretaries designated by each State Party) must implement...

Nippon Export and Investment Insurance (Nexi), Japan’s export credit agency, has inked partnership agreements with three international financial institutions to accelerate trade and investment in Africa by Japanese companies. The deals were struck with the Islamic Development Bank (IsDB), Islamic Corporation for the Insurance of Investments and Export Credit (ICIEC) and African Trade Insurance Agency (ATI). These partnerships will lead to the establishment of a “co-operative framework to promote setting up projects” on the continent, Nexi says. Nexi and ATI are also collaborating on the launch of a Japan desk, to be housed by ATI in Nairobi. The desk will provide tailored risk mitigation support to Japanese companies and investors doing business in Africa. A spokesperson for ATI tells GTR that the desk will be headed up by ATI underwriter Annabelle Buzingo, a recent recruit who joined at the start of the year from Export Development Canada. She will be supported in the role by an ATI credit analyst. In a release, Nexi says that it will conduct a trade and investment insurance training programme for staff from each of the three institutions, who will then work as Japan desk officers to create a supportive environment for Japanese companies. “We are very pleased to announce that the Japan desk will be set up in ATI to support African projects so that Japanese companies can obtain easy access to the reliable risk mitigation solution provided by ATI,” says Nexi chairman and CEO Atsuo Kuroda. The African market provides great potential for Japanese companies...

Kenya Ports Authority (KPA) has affirmed its readiness for operationalisation of revamped Kisumu Port, as government remains focused in reviving maritime activities at Lake Victoria. KPA managing director Daniel Manduku yesterday said works have been completed and the facility is ready to start handling cargo, with a main focus on shipments to the hinterlands. Kisumu Port has been refurbished at a cost of Sh700 million, Manduku noted, as opposed to media reports that it cost Sh3 billion. Completed works include concreting of the port yard, construction of the quayside, repairs of the linkspan, repairs of the dry dock and rehabilitation of all buildings. Quayside is an area along the banks of a water body while a linkspan is a type of drawbridge used mainly in the operation of moving vehicles on and off a vessel. All roads within and the link roads to the port facility have also been repaired, Manduku said. “We are just waiting for the official opening ceremony. Anytime the visiting heads of state confirm availability. We are ready,” Manduku said. Transport CS James Macharia and Manduku inspected the facility last Friday. “The CS was very impressed with the amount, quality and speed of work done,” Manduku told the Star on phone. According to Manduku, Kisumu port can handle 50,000 TEUs or an equivalent of  200,000 metric tonnes. TEU stands for Twenty-Foot Equivalent Unit which can be used to measure a ship’s cargo carrying capacity. “It (Kisumu Port) will handle all types of cargo,” Manduku said, which...

One year ago, at the opening ceremony of the 2018 Beijing Summit of the Forum on China-Africa Cooperation, Chinese President Xi Jinping said Africa's development has great potential and this great continent is full of hope. In the first decade of the 21st century, six of the world's 10 fastest-growing economies were in sub-Saharan Africa. After decades of efforts to catch up, Africa now has a real chance to achieve stable development, accelerate its integration process and raise its international status. STABILIZED POLITICS Between 1896 and 1901, British colonists built a meter gauge railway in Kenya to link the port of Mombasa and Uganda to tighten control of the "British East Africa," a proof of the continent's history of colonial oppression. It was only after the 1960s and 1970s that most African countries emerged from many decades of colonial rule after a long and arduous struggle. Afterwards, however, the dark cloud of colonialism still shadowed the continent with many of these countries plunged into turbulence due to historical issues such as boundary demarcation, tribal and religious conflicts left by Western colonialists. Such factors as the imitation of the western political system, the lack of governance capacity by various African governments, and the intervention and manipulation of foreign forces also fueled the turmoil. Drawing on the bitter history lessons, African countries realized that development could not be achieved without a stable political environment. Since the beginning of the 21st century, African countries have gradually embarked on the road of unity and...