Africa's tripartite free trade area (TFTA) will be operational in early 2020, an official said on Tuesday. Francis Mangeni, director of trade and customs with the Common Market for Eastern and Southern Africa (COMESA) told Xinhua in Nairobi that so far five countries have ratified the TFTA that brings together COMESA, East African Community (EAC) and the Southern African Development Community (SADC) trading blocs. "We expect another 11 countries to ratify the agreement before the end of the year so that the TFTA could be operationalized," Mangeni said on the sidelines of the sixth COMESA annual research forum. The five-day event will bring together policymakers, academia, think tanks, and the private sector from the 21 member states to discuss emerging topical issues in regional integration. Mangeni said that the TFTA will also be a building bloc for the African Continental Free Trade Area. The COMESA official added that East African Customs Union and Southern African Customs Union have already completed negotiations on tariff reductions. He noted that countries that are not members of either EAC or SADC will use the current trade liberalization trade regime of COMESA. Mangeni revealed that the ultimate aim of the TFTA is to reduce gradually the tariffs for all goods traded in the bloc to zero percent. "In the first year of operations countries (are) to fully liberalize trade on 66 percent of all goods and achieve 100 percent in five years," he said. Source: Xinhau

While the African Union (AU) has developed ambitious plans for continental free trade it is becoming clear that free movement of people lags behind. This blog identifies six obstacles that impede progress on free movement for people in Africa and considers the prospects for future development. The AU Summit held in Niger on July 7 2019 witnessed the rapid ratification of the African Continental Free Trade Area (AfCFTA). One of the most rapidly ratified and fastest treaties to enter into effect (it took little more than a year from inception), AfCFTA has now been ratified by 27 African countries, including Egypt, Ethiopia, Kenya, South Africa and Ghana, although Nigeria, Algeria, Tanzania and some others have not yet ratified the agreement. Remarkably, at that Summit the Protocol for a Free Movement of Persons was once again missing from the agenda. Intertwined as they must be if they are to operate effectively, the free trade treaty should have been ratified and implemented hand in hand with arrangements for the free movement of people under the Protocol on Free Movement for Africa, adopted by the AU in January 2018. Unfortunately, only four countries (Madagascar, Niger, Rwanda and Sao Tome & Principe) have signed up to the latter arrangement; none of the bigger countries, such as Algeria, Egypt, Nigeria, South Africa and Ethiopia, have ratified it. According to the African Development Bank’s Africa Visa Openness Report 2018, African citizens need a visa to travel to 51% of other African countries, 24% demand a visa on arrival and only 25% operate...

He urged Japan to learn from the example of the Tony Elumelu Foundation, which champions empowering African entrepreneurs, as the most sustainable means of accelerating the development of Africa. “At TICAD 2016 in Kenya, Japan pledged $30b (sh110.5 trillion) for Africa. This year you have generously increased this to $50b (sh184.2 trillion),” Elumelu said. “If we invested just 5% in Africa’s new generation of entrepreneurs, following my Foundation’s robust, proven model of getting capital directly to those best placed to catalyze growth and create real impact, we could touch 500,000 lives, across the 54 African countries, broadening markets, facilitating job creation, improving income per capita, and laying the key foundation for political and economic stability”, he added. Elumelu’s statement captured his vision of a relationship between Japan and Africa, which prioritises economic and shared prosperity. He outlined the three key pillars of a bold and transformative structure: investment in infrastructure, partnership with the African private sector, and investment in Africa’s youth. He urged Japan to learn from the example of the Tony Elumelu Foundation, which champions empowering African entrepreneurs, as the most sustainable means of accelerating the development of Africa. The Tony Elumelu Foundation, in just five years has assisted over 7,500 African entrepreneurs across every Africa, with seed capital, capacity building, mentorship and networking opportunities through its $100 million Entrepreneurship Programme. Elumelu’s advice carried the weight of his track record of business success, founding Africa’s global bank, United Bank for Africa (UBA), which has grown its presence to 20...

Globalisation, which has driven economic growth but has also been criticised for leading to unacceptable levels of inequality, will be high on the agenda at the 28th World Economic Forum (WEF) on Africa tomorrow. The WEF said in a statement yesterday that it would also discuss government policies and responsible business practices to provide a foundation for a more inclusive society. It said tackling corruption, universal healthcare provision and the protection of workers in the gig economy had a role to play in building more equitable societies. This year’s WEF on Africa will convene 1100 leaders from 100 countries, representing business, government, academia, civil society, media and the arts under the theme “Shaping inclusive growth and shared futures in the 4th Industrial Revolution (4IR)”. Elsie Kanza, the head of Africa at the forum, said top leaders would come together to create the conditions for socio-economic investment to take place. “Africa, like all regions of the world, faces great challenges. "For the region to prosper in an increasingly globalised world, it needs transparent governance, competitive economies and peaceful societies.” Heads of state or governments participating in the meeting include President Cyril Ramaphosa; Mok- gweetsi Masisi, President of Bo- tswana; Azali Assoumani, President of the Union of the Comoros; Ma- ndulo Ambrose Dlamini, Prime Minister of eSwatini; Sahle-Work Zewde, President of Ethiopia; Peter Mutharika, President of Malawi; Hage Geingob, President of Namibia; Yemi Osi- nbajo, Vice-President of Nigeria; Yo- weri Museveni, President of Uganda; Danny Faure, President of Seychelles; and Emmerson Mnangagwa,...

Africa's tripartite free trade area (TFTA) will be operational in early 2020, an official said on Tuesday. Francis Mangeni, director of trade and customs with the Common Market for Eastern and Southern Africa (COMESA) told Xinhua in Nairobi that so far five countries have ratified the TFTA that brings together COMESA, East African Community (EAC) and the Southern African Development Community (SADC) trading blocs. "We expect another 11 countries to ratify the agreement before the end of the year so that the TFTA could be operationalized," Mangeni said on the sidelines of the sixth COMESA annual research forum. The five-day event will bring together policymakers, academia, think tanks, and the private sector from the 21 member states to discuss emerging topical issues in regional integration. Mangeni said that the TFTA will also be a building bloc for the African Continental Free Trade Area. The COMESA official added that East African Customs Union and Southern African Customs Union have already completed negotiations on tariff reductions. He noted that countries that are not members of either EAC or SADC will use the current trade liberalization trade regime of COMESA. Mangeni revealed that the ultimate aim of the TFTA is to reduce gradually the tariffs for all goods traded in the bloc to zero percent. "In the first year of operations countries (are) to fully liberalize trade on 66 percent of all goods and achieve 100 percent in five years," he said. Source: China Org

Plant and animal products traded across the world are subjected to global standards under what is known as Sanitary and Phytosanitary (SPS) measures set by the World Trade Organisation (WTO), a body that deals with global rules of trade. These measures are generally meant to protect human, animal and plant health from risks arising from contaminants, toxins, additives, or disease organisms. They are also meant to protect animal or plant life from pests, diseases, and disease-causing organisms. In essence, if a Rwandan trader exports fruits to the European market or any other market, the products are usually subject to inspection to check if they live up to those standards. In other markets, the products will be subject to testing of packaging and labeling standards, processing methods and certification. In many cases, countries with stronger SPS standards tend to trade less with countries that have weaker SPS standards. More developed nations normally have stronger standards and demand a lot from less developed countries and less developed countries end up being victims. For instance, between 1995 and 2017, developed countries raised 242 SPS trade concerns as opposed to only 7 concerns raised by least developed countries. 226 measures were maintained as opposed to only 1 measure, according to WTO. Rwanda has particularly experienced these issues as exporters of food and other agricultural products have had their products rejected at the borders of the European Union country, the country’s largest export destination of horticulture products. According to data from the Ministry of Agriculture, Rwandan traders...

A WCO Revenue Package national workshop on the implementation of an Advance Rulings system for classification and origin, funded by the Finland Project for ESA, was held in Nairobi, Kenya, from 26 to 30 August 2019.  23 Customs officers from the Kenya Revenue Authority (KRA) participated in the workshop, which was facilitated by an origin expert from the WCO Secretariat and an accredited Revenue Package Expert. The workshop focused, in particular, on advance rulings for classification and origin since they will play a vital role in promoting trade facilitation, as required by the WTO Agreement on Trade Facilitation, which entered into force on 22 February 2017. Being a follow-up mission to a national mission held on the same topic in 2017, the Workshop focused on further developing the legislation and procedures for the implementation of the Advance Rulings programme, as set out in the WTO Trade Facilitation Agreement. During the workshop, the participants worked on several action points stemming from the action plan developed during the workshop in 2017, including the development of a list of necessary information to include in an Advance Ruling application, procedures for internal guidance to officers and guidelines to sensitize and guide the external stakeholders for their easy understanding and active use of the programme During the workshop, several presentations with respect to Advance Rulings, as well as tools and instruments developed under the Revenue Package, were delivered.   KRA officials gave presentations on the current situation within the Administration in the areas of tariff...

Plant and animal products traded across the world are subjected to global standards under what is known as Sanitary and Phytosanitary (SPS) measures set by the World Trade Organisation (WTO), a body that deals with global rules of trade. These measures are generally meant to protect human, animal and plant health from risks arising from contaminants, toxins, additives, or disease organisms. They are also meant to protect animal or plant life from pests, diseases, and disease-causing organisms. In essence, if a Rwandan trader exports fruits to the European market or any other market, the products are usually subject to inspection to check if they live up to those standards. In other markets, the products will be subject to testing of packaging and labeling standards, processing methods and certification. In many cases, countries with stronger SPS standards tend to trade less with countries that have weaker SPS standards. More developed nations normally have stronger standards and demand a lot from less developed countries and less developed countries end up being victims. For instance, between 1995 and 2017, developed countries raised 242 SPS trade concerns as opposed to only 7 concerns raised by least developed countries. 226 measures were maintained as opposed to only 1 measure, according to WTO. Rwanda has particularly experienced these issues as exporters of food and other agricultural products have had their products rejected at the borders of the European Union country, the country's largest export destination of horticulture products. According to data from the Ministry of Agriculture,...

The first berth of the Lamu Port is now 98 per cent complete and is set to be unveiled next month. The construction has been ongoing for three years. Stakeholders are optimistic that it will have a socio-economic transformation of the region through trade. It will open up the corridor counties to the rest of the country and neighbouring states. At least 33 shipping companies have shown interest and their representatives have either toured the site or will do so before the opening date. Lamu Port will be actively involved in the transhipment business as its depth can accommodate big ships from which cargo can be loaded to smaller ships bound for Mombasa, according to Abdullahi Samatar, Kenya Ports Authority general manager in charge of Infrastructure development. Samatar dismisses fears that Lamu will eclipse the Kilindini. Instead, it will complement the Mombasa Port and ease container congestion. “Show me a country that has developed with only one port,” he said, adding that for Kenya to realise its potential as a logistics hub, it needs more than one port. The Sh2 trillion LAPSSET project has attracted diplomats, foreign and local investors. The port will transform the fortunes of the country’s Northern Corridor. Some of the counties that will immediately benefit are the previously marginalised Lamu, Isiolo, Garissa, Marsabit and Turkana. LAPSSET director-general Silvester Kasuku told KNA last Friday that new employment and trade opportunities will be created, raising the status of Kenya asmiddle-income country. “The ongoing and planned north-bound road projects connecting the Northern Corridor to...

At least 33 shipping companies are expected to tour the Lamu port in the coming month, as Kenya prepares to commission the operations of its first berth in October. President Uhuru Kenyatta is expected to officially launch the port’s operations later in October when the first ship is anticipated to make call at the port. Kenya is said to be in talks with possible operators, including South African logistics giant Transnet SOC. “The first berth of the port is complete. We are now in the process of acquiring land for a 500-metre-wide corridor that will enable construction of the crude oil pipeline and standard gauge railway. We want to secure the entire corridor for business,” said Lapsset corporate affairs manager Benson Thuita. COMPETITION The tour by the shipping lines is part of a Kenya Ports Authority-driven charm offensive to market and position the port as competitive among its regional peers, Djibouti and Port Sudan. Source: The East African