The West African Regional Director of CUTS International, Mr Appiah Kusi Adomako has urged Ghanaian SMEs to collaborate and build partnerships to reduce the cost of exporting and trading under African Continental Free Trade Area. Speaking at a Public Private Dialogue organized by CUTS International Accra with support from Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) on the theme “Making logistics work for Ghanaian SMEs to trade under the African Continental Free Trade Area,” in Accra, Mr Adomako said Ghanaian SMEs face logistical challenges in trading. These challenges include high cost of freight, unmotorable roads, non-existence of rail lines on the continent. This, according to him, makes it almost impossible for SMEs to trade under the AfCFTA. “SMEs who deal in the same goods should consider coming together, so they can save cost of production and export under the AfCFTA” he added. He further reiterated the importance of stakeholder collaboration to address the issue of trade logistics. “AfCFTA will not become successful if we do not address the issue of trade logistics, but this is something that the Government alone cannot do; it involves the private sector too. We need to decolonize trade logistics and Africans must own and operate shipping lines that can facilitate trade. Governments must provide the enabling framework to allow for the organic growth trade infrastructures, ” he said. Dr Stephen Amoah, a Deputy Finance Minister addressing participants He, however, noted that, “it is when the Government creates the enabling framework, the private sector will be able...

Kenyan legislators have ratified a preferential trade agreement with the European Union (EU), resolving a longstanding issue with fellow East African Community (EAC) members who declined a collective agreement in 2016. The Economic Partnership Agreement (EPA) will afford Kenyan merchants duty-free and quota-free entry into the $13.9 trillion European market. According to the EU, total trade with Kenya soared to $3.5 billion in 2022, marking a 27% increase since 2018. As stipulated by the agreement, over the next 25 years, Kenya will progressively reduce tariffs on imports from the EU and offer incentives for European businesses to establish operations within the nation. The trade agreement commits the Kenyan government to uphold international labor standards and incorporates clauses addressing climate change. “The agreement contains binding, enforceable measures concerning international labor and environmental standards, including gender equality and climate change. It prohibits both parties from reducing these standards,” stated the European Parliament in a release dated March 1. Following the European Union lawmakers’ endorsement of the partnership in March 2023, the Kenyan parliament ratified the Economic Partnership Agreement (EPA). The next step involves the trade minister, who is required to hold a public consultation before implementing the agreement. “This is the inaugural agreement with a developing nation that mirrors the EU’s new strategy towards trade and sustainable development,” remarked the EU Parliament. The EU imports goods from Kenya valued at $1.28 billion, including prominent items such as cut flowers, vegetables, and fruits. Kenya stands as one of the principal suppliers of flowers...

IN a strong call to stakeholders at the opening of the tenth Africa Regional Forum on Sustainable Development, ARFSD-10, in Addis Ababa, Ethiopia, Amina Mohammed, UN Deputy Secretary-General said urgent action is needed to increase capital flows into developing countries, particularly in Africa to make the SDGs stimulus a reality. She also urged the international community to support Africa in its efforts to deliver its vision for development through the SDGs 2030 agenda and Agenda 2063. Mohammed told the multi-stakeholder forum of member states representatives, youth, civil society and private sector actors that African countries are facing significant challenges, including debt servicing, rising interest rates and limited fiscal space. “Debt servicing in Africa is at an all-time high due to external shocks, leaving very little fiscal space or nothing to invest in sustainable development.” Furthermore, debt servicing “accounted for a staggering 47.5% of government revenue in Sub Saharan Africa last year. This is the primary expenditure on essential services, as well as investments in the continent’s future in areas of education and health,” she said. According to Mohammed, at least $500 billion a year is needed to scale up affordable long-term financing for development, alongside structural reforms within the very institutions and rules that make up the international financial architecture. Echoing the Deputy Secretary-General, Robinah Nabbanja, Prime Minister of Uganda, stressed the need for reform of the global financial architecture to ensure favorable financing terms, stressing the need for long-term financing for developing countries to trigger sustainable economies. She said...

What you need to know: The grant marks a significant milestone in their ongoing efforts to enhance the global competitiveness of Tanzania’s horticultural products Arusha. Better days for the multi-million-dollar horticultural industry are in the offing, thanks to the latest strategic partnership between international and local organisations. Yesterday, TradeMark Africa (TMA) and the Tanzania Horticultural Association (TAHA) sealed an ambitious grant agreement to initiate Phase II of the jointly run project. The primary aim is to enhance access to regional and international markets for Tanzania's fresh produce. The three-year partnership, backed by a $2.1 million (Sh5.4 billion) grant from the Foreign, Commonwealth & Development Office (FCDO), Norway, and Ireland-Funded TMA, also focuses on fostering sustainable trade practices and empowering local farmers in the horticultural industry. Details show that the ambitious project will upscale the production volume of strategic horticultural value chains destined for regional and overseas markets from 50,000 tonnes worth $18.3 million to 89,754 tonnes, with a potential for fetching $30.6 million per annum. Furthermore, the scheme will directly benefit an expanded cohort of horticultural growers nationwide, benefiting 55,708 individuals, a significant increase from the current 27,854 farmers. Notably, this group comprises predominantly women and youth who are actively engaged in cultivating strategic horticultural crops destined for export markets. Tanzania, known for its vibrant agriculture, has been a key player in the horticultural arena, exporting flowers, vegetables, spices, herbs and fruits like mangoes and avocados. However, despite the sub-sector's potential, challenges such as inadequate market access, limited logistical support,...

Non-tariff barriers have pushed down Kenya’s maize imports from Tanzania to 63 percent of the total imports of the grain in 2022/2023 marketing year, from 97 percent in 2021/2022. A new report by the US Department of Agriculture (USDA) shows that Kenyan traders imported maize from Tanzania, Zambia, Uganda and South Africa, but imports from Tanzania dropped as a result of the imposition of export restrictions by Dodoma. Tanzanian restrictions on maize exports were in the form of requirements that exporters to Kenya apply for export certificates. “Kenya traders have begun to source more corn from non-traditional sources such as Zambia and South Africa,” reads the report. “Historically, Kenya has sourced most of its imported corn from Tanzania. However, traders have had difficulty exporting corn from Tanzania following the implementation of new export procedures. In the past, the Government of Tanzania has imposed export bans or restricted access to export permits when domestic supplies are low.” Imports from Zambia and South Africa increased to 13 percent and 10 percent from one percent and 0.38 percent respectively. Maize imports from Uganda constituted five percent of the total maize imports from 0.36 percent. In absolute figures, Kenya’s maize imports from Tanzania declined by 41.78 percent to 412,755 tonnes in the marketing year 20222/2023, from 708,978 tonnes in MY 2021/2022 — a 97 percent decline. On the other hand, imports from Zambia increased eightfold to 88,050 tonnes from 10,728 tonnes while imports from South Africa increased by 2,218.94 percent to 64,513 tonnes from...

Des sénateurs américains ont présenté un projet de loi visant à prolonger jusqu'en 2041 le programme commercial du pays avec une quarantaine de pays d'Afrique subsaharienne, afin de les aider à conserver un accès en franchise de droits à la plus grande économie du monde. Jim Risch, républicain de l'Idaho, et Chris Coons, démocrate du Delaware, ont présenté jeudi un projet de loi visant à proroger l'African Growth and Opportunity Act (Agoa), qui a été adopté pour la première fois en 2000. L'actuelle version de l'Agoa doit expirer en 2025. Cette prorogation "offrirait aux entreprises la certitude dont elles ont besoin pour accroître leurs investissements en Afrique subsaharienne à un moment où de nombreuses sociétés cherchent à diversifier leurs chaînes d'approvisionnement en s'éloignant de la Chine", a déclaré la commission sénatoriale des affaires étrangères dans un communiqué. "L'Afrique subsaharienne abrite la population la plus jeune du monde et de nombreuses économies à croissance rapide, et l'AGOA a joué un rôle essentiel dans la promotion du développement économique et le renforcement de l'engagement économique des États-Unis dans la région. Le projet de loi actualiserait la manière dont les États-Unis évaluent et font respecter l'éligibilité des pays à l'Agoa. Dans sa forme actuelle, la loi exige des examens annuels de l'éligibilité de tous les pays d'Afrique subsaharienne ; la nouvelle législation réduirait la fréquence à tous les deux ans, libérant ainsi des ressources pour se concentrer sur la mise en œuvre de la loi et l'application de ses règles, a déclaré la...

The bill would update how the US evaluates and enforces nations’ eligibility to benefit from the African Growth and Opportunity Act. Image: Jasper Juinen/Bloomberg US senators introduced a bill to extend the nation’s trade programme with about 40 sub-Saharan African nations until 2041, helping them maintain duty-free access to the world’s biggest economy. Jim Risch, a Republican from Idaho, and Delaware Democrat Chris Coons introduced the legislation to extend the African Growth and Opportunity Act (Agoa), which was first enacted in 2000, on Thursday. The current iteration of Agoa is due to expire in 2025. The extension “would offer businesses the certainty they need to increase investment in sub-Saharan Africa at a time when many firms are looking to diversify their supply chains away from China,” the Senate Foreign Relations Committee said in a statement. “Sub-Saharan Africa is home to the world’s youngest population and many fast-growing economies, and AGOA has played a critical role in advancing economic development and strengthening US economic engagement in the region.” Last year, President Joe Biden terminated four nations’ eligibility for the act’s benefits because they failed to meet Congress’s requirements on respecting human rights and democracy. These include Uganda – dropped in response to its draconian anti-LBGTQ laws – as well as the Central African Republic, where Russian mercenary group Wagner established a presence in recent years. Gabon and Niger, both of which had coups in 2023, were also excluded. The bill would update how the US evaluates and enforces nations’ eligibility to benefit from Agoa....

Collaboration and data sharing remain major challenges in the supply chain and logistics industry. This, despite enormous progress in technological development. The virtual watch tower / VWT initiative takes a novel angle to address these two shortcomings. The vision is to create an ever-growing global community that co-creates a digital solution / VWTnet for enhanced visibility and improved supply chain risk management through private and public data-driven analytics and collaboration across supply chain networks worldwide. VWT combines collaborative software development for data sharing with community building for collaboration co-creating a public good. It is co-evolution that leads to transparency, which, alongside neutrality, brings trust as the basis for data sharing and collaboration. The goal is to establish a neutral entity backed by trustworthy and impartial actors to ensure continuity of the effort and solution for improved supply chain management. A public good is like a lighthouse, nobody can be excluded, and everyone benefits. VWT’s primary goal is to drive on-demand collaboration around specified shipments based on improved visibility through data sharing. The VWT Community members stay in full control of the data. Everything happens in their Towers, and the data that is pushed and not pulled is governed by a commonly accepted code of conduct. No central database, no central infrastructure, and no central control is needed. There is no star topology but an ecosystem enabling unit that sits with the VWT Entity that holds the rules, registries, and the key to participation in VWT. VWT can be perceived as the internet of watchtowers. A co-created solution...

The East African Community’s (EAC) Council of Ministers has appointed Uganda’s Deputy Secretary General, Annette Ssemuwemba, to act as Secretary General until a new appointment is made. This decision follows Kenya’s former SG, Dr. Peter Mathuki, being appointed as Kenya’s ambassador to Russia. Ssemuwemba, who previously oversaw customs, trade, and monetary affairs at EAC, assumed her new role on April 16, 2024. “The EAC Council of Ministers has directed Deputy Secretary General, Ms. Annette Ssemuwemba to perform the duties of the Secretary General of the Community with effect from 16 April 2024 until the appointment and assumption of duty by the new Secretary General,” the Secretariat said through X. Ssemuwemba served as the Deputy Executive Director at the Executive Secretariat for the Enhanced Integrated Framework at the World Trade Organization. In this role, she is designated as the Chief Operating Officer responsible for the design of projects and programmes to support the least developed countries (LDC) trade capacity development. Ms Ssemuwemba was previously the Chief Strategy and Results Officer and member of the Senior Leadership team at TradeMark East Africa now Trade Mark Africa. In this role, she was responsible for strategy execution and results delivery across a portfolio of countries in East Africa. She is an international development professional with over 20 years of experience in international trade and development, primarily trade policy formulation, regional integration, trade facilitation and trade-related capacity-building at national and regional levels. Ms Ssemuwemba holds a wealth of experience in designing and implementing trade capacity-building programmes that...

Uganda National Bureau of Standards (UNBS) is hosting Partner States from the East African Community (EAC) to develop harmonized procedures for calibration and verification of road tankers, to facilitate trade. This is in line with the UNBS mandate of ensuring fairness in trade and precision in industry through reliable measurement systems. Road tankers are vehicles with mounted measures of capacity used for the transportation of liquids for purposes of trade. These tankers are very critical in the intra-EAC trade because they are used to transport and distribute various commodities like petroleum products, Liquefied Petroleum Gas (LPG), raw materials for soap and cooking oil production. However, each EAC partner state legislates its own regulations and procedures for the calibration and verification of road tankers, resulting in measurement variations, which may constitute unnecessary technical barriers to trade when the measurements in question traverse the different partner states. “We need to eliminate irregularities and inconsistencies during inspections at the borders to facilitate smooth flow of goods within the EAC region which boosts trade,” said Eng. John Paul Musimami, the UNBS Deputy Executive Director in charge of Compliance. Some of the issues reported include; Variations in the limits of error (Minimum Permissible Errors) during verification, for example, the limit of error in Uganda is + or -0.25% for both initial and subsequent verification while the limit of error for Tanzania is + or – 0.2% for initial verification and + or – 0.5 for subsequent verification. Inconsistency in respect to stamping dipsticks and verification charts...