Africa's largest trading bloc plans to promote intra-regional trade through innovation, an official said on Monday. Kipyego Cheluget, assistant secretary-general, Common Market for Eastern and Southern Africa (COMESA) told a regional trade forum in Nairobi that innovation creates technological and comparative advantage, which in turn drives trade. "Regions with robust innovation activities have higher productivity, economic growth and job creation and have more government revenues available to support spending in core public priorities such as health, education and infrastructure," Cheluget said during the opening ceremony of the sixth Comesa annual research forum. The key objective of the five-day event was to bring together academia, think tanks, government officials and the private sector from the 21 member states to discuss emerging topical issues in regional integration. Cheluget said that members of the economic bloc recognize the importance of science, technology and innovation in socio-economic and cultural development and have agreed to cooperate in the various fields. Chris Kiptoo, principal secretary of Kenya's Ministry of Industry, Trade and Cooperatives said that a more integrated region will enhance economic growth and poverty reduction in eastern and southern Africa. Kiptoo said that the best way to achieve productivity growth is through greater innovation, which can be defined as the development of new or improved products, services and processes. He noted that the region's average high growth rate has not been accompanied by high job growth rates in the face of a rapidly growing population. Source: Xinhau

Japan and the African Development Bank on Friday announced a joint target of $3.5 billion under the Enhanced Private Sector Assistance for Africa initiative (EPSA4), during the 7th Tokyo International Conference on African Development (TICAD 7). Both Japan and the Bank have set a target of $1.75 billion each, from 2020-2022, to enhance the fourth phase of EPSA to spur private-sector-led sustainable and inclusive growth in Africa. “Building on the successful achievements so far, Japan and the Bank have decided to upgrade EPSA in both quality and quantity to meet financial needs for infrastructure development as well as for the private sector development in Africa,” Japan’s State Minister of Finance,” Keisuke Suzuki said at the EPSA4 launch ceremony held in Yokohama and attended by government officials and a high-level delegation from the Bank as well as representations of the business community. “I wish that the new EPSA initiative will lead to business, investment promotion, and job creation in Africa,” Suzuki noted. Electricity, transportation, and health will be key priorities under EPSA4. Projects and programs for the 3 key priorities will be formulated and implemented in line with the G20 Principles for Quality Infrastructure Investment and G20 Shared Understanding on the Importance of UHC Financing in Developing Countries. African countries will also be provided with support to improve and create conducive business environments to attract private investments. “Today marks another day to celebrate the strong and impactful partnership between Japan and the African Development Bank. The African Development Bank and the...

The African Continental Free Trade Area (AfCFTA) came into effect last May 30, with 54 states signing the agreement at the time of writing. This pan-African agreement was made in the hopes of bolstering local economies by breaking down existing trade barriers and reducing tariffs for regional exchange. Nigeria has just signed onto this agreement — a monumental feat considering that the country represents Africa’s largest economy. About the agreement The AfCFTA is poised to be the world’s largest trading bloc. This bloc will economically join over a billion people, with experts hoping that this will speed up modernisation efforts across the continent. Africa’s labour force has been steadily growing, and with the businesses promoted by the AfCTA creating new jobs, there will be further growth. The beginnings of the AfCFTA started in 2012, when leaders at the African Union summit began grappling with the idea of free trade across Africa. Negotiations officially began during the 2015 summit, and a total of ten negotiating sessions were held before reaching the final agreement in 2018. Experts estimate that this agreement will kick-start Africa’s growth on its way to become a huge economic player. Possible developments include free movement of people across the continent’s borders and the adoption of a single currency. What does this mean for intra-African business? Africa News reports that trade between African countries is the continent’s weak spot, citing lack of infrastructure and investment. They estimate that about $300 billion will be needed by 2020 in order to build...

African political and business leaders at the World Economic Forum in Cape Town will be urged to follow through with commitments made to regional integration, trade experts say. As the African Continental Free Trade Agreement (AfCFTA) enters the implementation phase, WEF Africa can jumpstart discussions on the process of dismantling barriers to regional trade, says co-chair Arancha González Laya. “I hope to shine a spotlight on integration of the African market, because it is very important to keep the momentum that has been generated with the launch of the African Continental Free Trade Agreement,” says González. “What’s important is that the negotiators don’t drop the pen the day the agreement has been signed. The most important phase starts now and it’s called implementation.” The road less travelled African countries have traditionally sold raw materials to global powers rather than trade among themselves. As the only continent in the world trading more externally that internally, Africa is missing out, González says. “Essentially Africa is to a large extent trading outside the continent in lower value-added raw materials and commodities and it’s foregoing the opportunity to trade more value-added [products] within the African continent. We know that what Africa trades within its borders has more value-added than what it trades outside its borders. So it’s important that Africa finds a way to better integrate its markets, to provide opportunities for all those entrepreneurs that can build the regional value chain.” Within the new economic zone, 90% of tariffs would be scrapped within...

Kenyan cut flowers could be locked out of Australian markets as Canberra moves to implement new biosecurity measures. The new regulations coming into force on September 1 also cover Colombia and Ecuador, the other important cut flower exporters to Australia, who have complied. For Kenya, which largely exports cut flowers to Europe, the Australia is critical for the growth of the sector as it offers an alternative market. STRINGENT REGULATIONS But Nairobi has unsuccessfully tried to negotiate for an extension of the deadline to comply with the biosecurity measures. The compliance date has been moved several times since March last year, with the latest being July 1, 2019 before it was moved to September 1. The Australian Department of Agriculture has said there will be no further extension. Now, there are fears among producers and exporters that the European Union may borrow a leaf from Australia. Source: The East Africa

Trade and political disputes between member states of the East African Community (EAC) are resulting into an increase in Non-Tariff barriers and other hindrances to trade in the region. To find out solutions, Kenneth Bagamuhunda, Director General of Customs and Trade at the East African Community joins CNBC Africa for more. Source: CNBCAfrica

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Trade activity is rooted in basic supply and demand. The female population is estimated to account for 50% of Africa’s total population, and so it is essential to consider women when deliberating on implementation of crucial policies such as the Africa Continental Free Trade Area (AfCFTA) agreement. The AfCFTA aims to create a single continental market for goods and services in member nations of the African Union. It is expected to be the largest global trade bloc, consolidating a market of 1.3 billion consumers with a combined GDP of about $3.3 trillion. Africa could add at least 4.5% to that on the back of enhanced trade activities, according to the Africa Development Bank. The role of women in driving general consumption patterns cannot be overemphasized. Across households, women are more likely to spend their income on products and services that will benefit the smooth running of their homes. Evidence from a range of countries shows that increasing the share of household income controlled by women, either through their own earnings or cash transfers, changes spending patterns that benefit children. Industry sources suggest that women reinvest 90% of their income back into their families, while men reinvest only 30-40%. Therefore, women have a critical part in achieving the desired demand boost that would support the exchange of goods and services among countries throughout the AfCFTA. In most of the African countries signed up to this agreement, the agriculture sector is a primary driver. The contribution of women to the agricultural labour force ranges between...

Japan and the African Development Bank on Friday announced a joint target of $3.5 billion under the Enhanced Private Sector Assistance for Africa initiative (EPSA4), during the 7th Tokyo International Conference on African Development (TICAD 7). Both Japan and the Bank have set a target of $1.75 billion each, from 2020-2022, to enhance the fourth phase of EPSA to spur private-sector-led sustainable and inclusive growth in Africa. “Building on the successful achievements so far, Japan and the Bank have decided to upgrade EPSA in both quality and quantity to meet financial needs for infrastructure development as well as for the private sector development in Africa,” Japan’s State Minister of Finance,” Mr. Keisuke Suzuki said at the EPSA4 launch ceremony held in Yokohama and attended by government officials and a high-level delegation from the Bank as well as representations of the business community. “I wish that the new EPSA initiative will lead to business, investment promotion, and job creation in Africa,” Mr. Suzuki noted. Electricity, transportation, and health will be key priorities under EPSA4. Projects and programs for the three key priorities will be formulated and implemented in line with the G20 Principles for Quality Infrastructure Investment and G20 Shared Understanding on the Importance of UHC Financing in Developing Countries. African countries will also be provided with support to improve and create conducive business environments to attract private investments. “Today marks another day to celebrate the strong and impactful partnership between Japan and the African Development Bank. The African Development Bank...

The Central Corridor of the East African Community (EAC) has embarked on various infrastructure projects that aim to facilitate trade in the region. However, lack of financing among other deterrents has been hindering their completion. Dieudonne Dukundane, Executive Secretary of the Central Corridor Transit Transport Facilitation Agency joins CNBC Africa for more. Source: CNBC Africa