Kigali 2 July 2019 (ECA) - In an effort to accelerate the implementation of the AfCFTA, Trademark East Africa and the UN Economic Commission for Africa (ECA) signed in June 2019 a Memorandum of Understanding, which provides the two parties with the framework to collaborate, with the aim of paving the way for stronger cooperation in helping countries increase their levels of intra-regional trade and investments. To cement that partnership, the two institutions successfully collaborated in an event organised by TradeMark Africa under the topic: Africa Continental Free Trade Area (AfCFTA): Women and Youth are Crucial to Africa's Economic Transformation. The session was held during the 2019 European Development Days meeting on the 18th-19thJune in Brussels, During the meeting, Andrew Mold, Acting Director of ECA in Eastern Africa explained the ambitious nature of the AfCFTA, saying that AfCFTA is not, as its name denotes, simply a 'free trade area'. 'It encompasses ambitions to proceed to a single unified continental market', he said. Mold stressed that the elimination of tariff and non-tariff barriers and harmonization of standards called for under the AfCFTA represent a unique opportunity to boost intra-regional trade and investment, allowing companies and farmers to tap into rapidly growing markets of Africa. 'Sectors that are set to benefit the most are the labour-intensive manufacturing and services industries where women and youth are well represented,' he emphasized. The Chief Technical Officer of TradeMark Africa, Allen Asiimwe, told the participants at the meeting that: 'Policymakers should start looking at the collective power...

JUBA South Sudan (Xinhua) -- South Sudan said Tuesday it has already integrated an online portal aimed at eliminating various non-tariff barriers (NTBs). The move aims in a bid to ease trade and expedite timely delivery of humanitarian aid as the country seeks recovery from more than five years of conflict. Mou Mou Athian, Undersecretary for East African Community (EAC) under the ministry of trade, industry and EAC Affairs, said the online portal is the first trade-related online tool in South Sudan designed to provide information on institutions and mechanisms to fight NTBs. "It is designed as the virtual center that provides information on national, regional and international themes related to the elimination of NTBs," Athian told journalists in Juba during training of officials on use of the portal. He disclosed that they developed two tools that will help with the identification, registration and elimination of NTBs. Athian revealed that the first tool is the national response system for NTBs that will enable quick resolution of specific NTBs particularly those related to non-compliance to the existing rules. He disclosed that the second tool is specifically designed to assist humanitarian organizations in South Sudan and revenue authorities to streamline the process of tax exemptions and enable faster flow of humanitarian assistance to people in need in South Sudan. "The NTB portal directly addresses South Sudan’s commitments arising from its membership to the EAC and will help South Sudan’s participation in regional forums that are established to address NTBs," said Athian. He added...

After four years of talks, an agreement to form a 55-nation trade bloc was reached in March, paving the way for Sunday’s African Union summit in Niger where Ghana was announced as the host of the trade zone’s future headquarters and discussions were held on how exactly the bloc will operate. It is hoped that the African Continental Free Trade Area (AfCFTA) - the largest since the creation of the World Trade Organisation in 1994 - will help unlock Africa’s long-stymied economic potential by boosting intra-regional trade, strengthening supply chains and spreading expertise. “The eyes of the world are turned towards Africa,” Egyptian President and African Union Chairman Abdel Fattah al-Sisi said at the summit’s opening ceremony. “The success of the AfCFTA will be the real test to achieve the economic growth that will turn our people’s dream of welfare and quality of life into a reality,” he said. Africa has much catching up to do: its intra-regional trade accounted for just 17 per cent of exports in 2017 versus 59 per cent in Asia and 69 per cent in Europe, and Africa has missed out on the economic booms that other trade blocs have experienced in recent decades. Economists say significant challenges remain, including poor road and rail links, large areas of unrest, excessive border bureaucracy and petty corruption that have held back growth and integration. Members have committed to eliminating tariffs on most goods, which will increase trade in the region by 15-25 per cent in the medium...

Kenya’s current account deficit narrowed to 4.2 percent of GDP in the 12 months to May from 5.8 percent in the corresponding period in 2018 buoyed by higher horticulture and tourism inflows. The current account measures the balance between hard currency inflows and outflows and affects the strength of the shilling. By the end of last year, the deficit stood at five percent, but has been progressively narrowing this year. In the 12 months to April the deficit stood at 4.5 percent, meaning the country’s position improved in May. “This reflects strong performance of exports particularly horticulture, resilient diaspora remittances, and higher receipts from tourism and transport services. Lower food imports also contributed to the narrower trade balance,” said CBK in its latest weekly bulletin. In the last Monetary Policy Committee briefing held end of May, CBK had attributed the growth in horticulture export earnings to increased acreage under cultivation, better internal surveillance (hence lower losses), improved market access for crops such as avocado and access to new markets such as China. In the 12-months to April, horticulture earnings stood at Sh107.6 billion ($1.046 billion), up by Sh11.2 billion ($109 million) or 11.6 percent compared to the 12-month period to April 2018. Tourism earnings rose to Sh106.7 billion in the 12-months to April 2019 compared to Sh101.4 billion in similar period in 2018. Horticulture export and tourism earnings for May 2019 are yet to be announced. The growth in the two categories has partly covered for the slower growth in...

The Common Market for Eastern and Southern Africa has partnered with the Government of Kenya during the 3rd Edition of the Kenya Trade Week which will be hosting the Source 21 COMESA International Trade Fair and high-level business summit this coming week. The Kenya Trade Week running under the theme “Powering Regional Integration through Trade” is set to take place from 15th to 21st July at the Kenyatta International Convention Centre (KICC) in Nairobi. The theme is in tandem with the COMESA trading block which seeks “To be a fully integrated economic community that is prosperous, internationally competitive, and ready to merge into the African Economic Community”. The much awaited Expo will bring together policymakers and the private sector from the 21 COMESA member states who are the drivers of trade and economic development to deliberate on how to promote and advance cross border trade across this giant economic trading block. Among the highlights of the Expo will be the presidential public private roundtable where heads of states will interact with business leaders on key strategies to enhance industry competitiveness and formulate strategies to enhance local sourcing and intra-regional trade. Other activities during the Source 21 Summit themed “The Hallmark of Quality” will include the launch of COMESA Source 21 Handbook and, the 50 Million Women speak initiative which aims at empowering women entrepreneurs by providing financial and non financial information to help them grow their businesses. The forum will offer a great opportunity for unlimited networking among businesses with...

At the time of writing, US commerce secretary Wilbur Ross was set to provide the details of the new US-Africa policy, Prosper Africa, on the sidelines of the US-Africa Business Council 2019. This new initiative seeks to accelerate two-way investment and trade with Africa as a way to advance the US’s competitive advantage. In the following article, I detail my thoughts on what the policy needs to include in order to fulfil the promise of the African Continental Free Trade Area (CFTA). The place and timing of this announcement, on June 19-21 in Maputo, Mozambique, could not be more propitious. In March this year, Cyclone Idai made landfall in Mozambique, levelling a city of 400,000 and – along with Cyclone Kenneth – leaving in its wake $3.2bn worth of destruction. This was a foreshadowing of Africa’s acute vulnerability to the increasing intensity of extreme weather events and limited ability to adapt. Climate change compounds existing challenges of state fragility, infrastructure deficit, and high unemployment. Meanwhile, the CFTA went into force on 30 May. It carries the continent’s hopes and ambitions for connectivity, industrial development, job creation, and improved quality of life. The CFTA will be of mutual benefit to both the US and Africa. It will open new markets for American goods and services. When Ross takes the stage in Maputo, his speech will be the first substantive response by a major development partner to the latest vehicle on which Africans have pinned their hopes. This mix of challenge and...

Africa’s free-trade pact will help shift the continent away from its over-reliance on volatile commodity exports and boost manufacturing, according to the African Development Bankm (AfDB).Sectors where African products already have a competitive advantage have the most to gain from the deal that joins the markets of more than 50 countries, making it the largest free-trade zone in the world, AfDB President Akinwumi Adesina (pictured) said in an interview in Niger’s capital, Niamey.This was after Benin and Nigeria signed the African Continental Free-Trade Agreement at the weekend, paving the way for trade with reduced tariffs to start next July. “Manufacturing, trading in value-added products and strengthening supply chains will allow for markets to grow and for new markets to emerge,” Adesina said.“SMEs that account for 80 per cent of all trade on the continent will benefit, as well as the financial sector, as digital payments will be needed to transact.”Commodity exports dominate even in Africa’s two biggest economies, with mining production accounting for about half of South Africa’s shipments while crude oil generates 90 per cent of Nigeria’s foreign income.The mechanics of the deal now has to be negotiated.A digital system for payments converging one country’s currency to another member state’s is the most important mechanism to have in place before trading starts, Adesina said.That’s where the Economic Community of West African States’ plan to adopt a common trade currency will also help because it could reduce foreign-exchange risks, he said.Infrastructure gapAccess to the continental market and an increased focus on...

Local manufacturers are likely to benefit immensely from a newly implemented Africa-wide trade pact that provides access to a bigger market for their goods. The African Continent Free Trade Area (AfCFTA) protocol, launched at the Africa Union summit in Niger on Sunday after five years of deliberations, provides a single market of goods and services for 1.2 billion people with an aggregate Gross Domestic Product (GDP) of over $2 trillion (Sh200 trillion). ELIMINATE DEFICIT The adoption of the historic 55-nation agreement makes the whole continent a single market. Protocols will be aligned such that a Kenyan farmer can export avocado to Egypt duty-free, just as a Rwandese will be able to buy cocoa from Ghana. Kenyan manufacturers and exporters are upbeat that the trading bloc will be a boon for the country’s trade. Export Promotion Council chief executive Peter Biwott said Africa-wide trade, if well planned, could double the country’s exports, thereby eliminating the Sh1.15 trillion gap between exports and imports. “We import [goods worth] Sh1.7 trillion and we export Sh613 billion. The deficit can be eliminated if we increase our manufacturing and export enterprises. We target to get our exports to the mark of Sh2.3 trillion,” said Mr Biwott. Robust plan The government, he said, has a robust plan to make export trade efficient for existing enterprises as they recruit and train new ones in collaboration with the county governments. This is in a bid to scale up the range of products besides improving the manufacturing sector as a...

A Turkish diplomat in Kenya has revealed that both countries are set to sign a double taxation avoidance agreement by the end of this year. Turkey’s ambassador to Kenya, Ahmet Cemil Miroglu said the two countries are keen to improve investment and trade opportunities. “The officials of the two countries have already exchanged the draft of the double taxation avoidance agreement and so the treaty should be signed by end of 2019,” Miroglu said. He disclosed that at the moment the level of bilateral trade is below the potential of the two countries. Miroglu further said bilateral trade hit 23. 3 billion shillings (227 million U.S. dollars) in 2018 and was in favor of Turkey. The envoy noted that Turkey exported machinery, textiles and furniture to Kenya while the east African nation sold coffee, tea, horticulture and fruits to Turkey. He said that bilateral trade between Kenya and Turkey must be based on win-win relations. “We are looking for a way to enable more Kenyan goods to be sold in Turkey,” he added. This coming even as he further revealed that in September this year a delegation from Turkey’s health sector will be on a trade mission to Kenya to survey opportunities in the country’s health sector. The delegation will showcase the latest health medical equipment from Turkey that could improve health outcomes for Kenyans. Source: CGTN Africa

The success of the African Continental Free Trade Area (AfCFTA) will be measured largely by its ability to change lives, reduce poverty and contribute to economic development in Africa. This is according to the ninth edition of the flagship Assessing Regional Integration in Africa report (ARIA IX) launched during the African Business Forum. Expounding on the report, United Nations Conference on Trade and Development Secretary General Mukhisa Kituyi said that competition, investment and intellectual property rights are crucial requirements in the next phase of the agreement. He also urged the African business community to take ownership of the integration effort on the continent. The report highlights challenges facing regional integration which include limited energy and infrastructure development, insecurity and conflicts and limited financial resources among others. Going forward, the report says e-commerce is likely to be a significant driver and outcome of intra-African trade. “The public and private sectors are increasingly adopting e-commerce platforms. Governments deliver services through them, electronic marketplaces aggregate consumer and producer demand as well as trade-related services, traditional businesses have incorporated e-commerce into their business models and operations and individual entrepreneurs and small businesses use social media platforms to engage with market opportunities,” reads the report. Source: Capital Fm