Trade experts from the Common Market for Eastern and Southern Africa (COMESA) are meeting in Nairobi this week to discuss ways to address industrial disparities in the region. The experts said the implementation of the COMESA Industrial Policy, which was adopted by COMESA Council of Ministers in 2015, is expected to provide the pathway towards addressing the growth gaps that exist on the supply-side such as low-value addition, low employment rates and weak cross-border trade volumes. Betty Maina, Principal Secretary in charge of industry at Kenya's Ministry of Industry, Trade and Cooperatives who opened the meeting late on Tuesday said a robust GDP growth of near 6.5 percent in the region has not led to economic transformation. Maina said this disparity has resulted from preoccupation with low value-added products and trading in primary products and natural resources. "Despite regional integration being of special importance in Africa, COMESA member states still trade more than 90 percent with other parts of the world due to lack of industrial diversification and products' complementarity among themselves," said Maina. Maina said the affected products are mainly those with few forward and backward linkages to the rest of the economy. The three-day meeting will thus discuss the draft action plan of the implementation on the COMESA Industrial Policy and review the COMESA regional guidelines on the local content policy. "The low level of intra-COMESA trade, which has not broken the 10 percent threshold of total exports over the years, is a reflection of a low level...

Kenya on Wednesday called for harmonized quality products standards across African countries in order to enhance intra-Africa trade. Peter Munya, cabinet secretary in the Ministry of Industry, Trade and Cooperatives, called on the African continent to commit to the progressive elimination of tariffs and non-tariff barriers to trade in order to contribute to the sustainable development of Africa. "Kenya is in talks with the African Organization for Standardisation (ARSO) member states to develop a common regulatory framework that will fast-track the implementation of the African Continental Free Trade Area (AfCFTA) agreement," Munya said during the official opening ceremony of the 25th ARSO general assembly and the Africa day of Standardisation forum. He reaffirmed Kenya's commitment in promoting intra-African trade through elimination of import duties and non-tariff barriers, especially the technical barriers to trade (TBT). Bernard Njiraini, acting managing director of the Kenya Bureau of Standards called on African countries and the regional economic communities to harmonize standards, technical regulations and conformity assessment systems so as to realize the full benefits of the AfCFTA. "We are cognizant of the central role that standards and conformity assessment plays in the realization of the full benefits of the Free Trade Area Agreements (FTAs)," said Njiraini. Kenya, having been among the first batch of countries to ratify the AfCFTA agreement, is in the process of putting in place economic and trade policies that will support standards development systems and the quality infrastructure necessary to ensure conformity to standards, including testing, certification, and laboratory accreditation,...

East Africa remains a top destination for foreign direct investment, with new data for 2018 showing that the region attracted inflows of $4 billion. The latest World Investment Report 2019 by the United Nations Conference on Trade and Development shows that despite flat growth in FDI in the larger East Africa, which remained largely unchanged at $9 billion due to contractions in Ethiopia, the East African Community partner states recorded impressive growth. In Uganda, inflows reached a historic high, increasing by 67 per cent to $1.3 billion, while Kenya posted a 27 per cent growth to $1.6 billion. In Tanzania, inflows grew by 18 per cent to $1.1 billion. During the year, investment flows were channelled to diverse industries, with manufacturing, chemicals, hospitality and oil and gas being the main attraction for foreign investors. Inflows to Ethiopia contracted by 18 per cent to $3.3 billion, although the country remains the biggest FDI recipient in the region, with investments in petroleum refining, mineral extraction, real estate, manufacturing and renewable energy. “Prospects in Ethiopia remain positive due to economic liberalisation, investment facilitation measures and the presence of investment ready special economic zones,” says the report. The report shows that Africa escaped the global decline in FDIs as flows to the continent cumulatively rose to $46 billion in 2018, an increase of 11 per cent. Flows to sub-Saharan Africa increased by 13 per cent to $32 billion. GROWTH The growth in Africa was attributed to rising demand for commodities that saw commodity prices surge. Africa...

The US has also built a Central Alarm Station and provided portable monitors to ensure any radiological or nuclear materials are immediately detected and analyzed at the facility. According to US Ambassador to Kenya, Kyle McCarter, the special equipment provided to the port of Mombasa will help in detecting material or chemicals used in manufacturing of weapons of mass destruction and other illicit goods. McCarter said the installation of the equipment is US support to Kenya’s effort in countering terrorism, smuggling of drugs, illicit goods and wildlife trophies through the port of Mombasa. He Wednesday handed over a modern server that will be installed at Kenya Ports Authority’s Central Alarm Station and connected to the 11 radiation portal monitors. “Today, what we are seeing here at the port of Mombasa is very costly technology. However, it is not about the technology alone, but the partnership we have created with Kenya,” said McCarter. The US has also trained multi-agency security team working at the port of Mombasa on how to detect proliferation of conventional weapons, drugs and other illicit goods. The team has also been trained on how to analyze shipping documents to assess a potential security risk associated to strategic goods. “We need to rejuvenate this economy for our young people. I believe if Kenya succeeds to grow, the East Africa region also grows,” said McCarter. The US has been supporting the port of Mombasa for the last one decade with the joint mission of bolstering security and boosting trade....

President Paul Kagame has expressed his confidence that Africa will soon expand the horizon of opportunities through the recently established African Continental Free Trade Area (AfCTA). AfCTA will be formally launched next month at the African Union Summit in Niger. While attending the opening ceremony of this year’s European Development Days (EDD) under the theme “Inequalities: trends and challenges in the context of globalization, Kagame said that Africa is still lagging behind in the Sustainable Development Goals (SDGs) implementation. In this Kagame said that there is more work ahead but all in all Africa is ready to kick start the deal but with a call for external collaborative help. “It is more imperative than ever that developing countries take more effective lead of their general development agenda, as well as raising the level of prosperity. It is not something that can be done by external actors alone,” Kagame said. This was not the first time the president attends EDD. Kagame participated in the 2017 and 2018 sessions with various leaders including the Belgian PM Charles Michel, and Jean-Claude Juncker, President of the European Union Commission. In the previous meets, Kagame also reminded global leaders of the need for Africa and Europe to see each other as partners and friends rather than foes. This year, Kagame acknowledged that there has been an increasing understanding and acceptance by development partners of the need for those on the receiving end of assistance to drive their own development agenda. Using the Rwandan example, Kagame...

Somalia has joined DR Congo in seeking to join the fast-growing East African Community. The community currently consists of six nations namely; Kenya, Tanzania, Uganda, Rwanda, Burundi, and South Sudan. Somalia has been pushing to join the bloc since 2013 when it presented its application to the EAC secretariat. In July 2018, the Horn of Africa nation secured a place in the Common Market for Eastern and Southern Africa (COMESA), a free trade zone comprising of 21 African nations. Since joining COMESA, Somalia’s standing on the continent has improved. The move has taken it a step closer to gaining membership in the East African Community. DR Congo submitted their official request to join EAC on 8th June through a letter addressed to the leader of the community President Paul Kagame. The country has a wealth of natural resources such as cobalt, gold, diamond, copper, and oil which could drive economic growth in the region. DR Congo already shares strong trade ties with most East African countries like Kenya, Uganda, Rwanda, and Tanzania. By allowing the two countries into the East African bloc, the region will benefit from a large consumer market comprising of over 235 million residents up from roughly 150 million people currently found in the EAC. Additionally, intra-regional trade is set to increase with the addition of new members into the community. Somalia’s long coastline along the Indian Ocean is also likely to contribute to the economic expansion of the East African region. Even with the huge economic potential in...

The construction of the transnational highway between east African countries Kenya and Tanzania will begin in early 2020, the financier said on Tuesday. Gabriel Negatu, east Africa director general of the African Development Bank (AfDB) said in Nairobi that funding for the 460km road should be approved in September. "Both the Kenya and Tanzania governments have finalized all their requirements to pave way for the construction of the coastal highway," Negatu said during the Kenya roadshow for the upcoming second edition of the Africa Investment Forum. The forum which is scheduled to take place from Nov. 11 to 13 in South Africa is the continent's investment marketplace for accelerated economic transformation. Negatu said that the Kenya-Tanzania transnational highway is expected to cost 75.1 billion Kenyan shillings (751 million U.S. dollars). Negatu said that highway runs through Malindi, Mombasa and Lunga Lunga on the Kenyan side and Horohoro, Tanga and Bagamoyo on the Tanzanian side. The transnational highway is among the infrastructure projects being prioritized by the East African Community. AfDB will finance 70 percent of the coastal highway while the governments of Kenya and Tanzania will cover the remaining 30 percent. Source: Xinhau

  Tshisekedi expressed his wish for the DRC to become a member in a letter sent on 8 June to Rwandan president Paul Kagame, who presides over the regional bloc. The last country to join the EAC was South Sudan in 2016. Should its membership be ratified, the DRC would become the seventh member of the bloc. This request is “a confirmation of President Tshisekedi’s stated priority to focus his regional policy on cooperation and integration,” says Olivier Nduhungirehe, secretary of state for the EAC at the Rwandan ministry of foreign affairs. Tshisekedi’s request, the letter states, “follows the ever-increasing trade between operators in the Democratic Republic of Congo and those in the States of the aforementioned Community”. Among the examples of this cooperation, a few days after Tshisekedi’s first visit to Kigali the Rwandan national carrier RwandAir launched direct flights between Kigali and Kinshasa, beginning on 17 April. Security matters Tshisekedi, who was invested as DRC president on 24 January, has already visited several EAC member countries, starting with Kenya on his first regional tour and travelling to Uganda and Rwanda in March, followed by Tanzania and Burundi on 13 and 14 June. Discussions between the Congolese president and his counterparts have, so far, focused largely on security issues. Tshisekedi, who has promised to bring peace to the troubled North Kivu province, hosted a meeting of the region’s intelligence services in Kinshasa on 5 and 6 June. Burundi did not attend. Tshisekedi and Kagame, who succeeded Yoweri Museveni of...

The Africa Continental Free Trade Area (AfCFTA) could receive a big boost before it is officially launched in July this year – following news that Nigeria – the continent’s economic power house, is reportedly finalizing the process to ratify the agreement. In March last year, fifty African countries signed the historic Africa Continental Free Trade Area (AfCFTA) – an agreement that will create a single African market. Before the event, Nigeria had issued a statement saying it remained skeptical to endorse its signature. This attracted debate that the agreement would not be successful without Nigeria. However, after a post-launch press briefing, Rwanda’s President Paul Kagame insisted that Nigeria is “supportive” of AfCFTA. In the context, he said, “I think it’s a question of time and how fast they (Nigeria) address things they feel they should address before they make full pronouncement as to what position they ultimately want vis-avis this historic event we have witnessed today,” Kagame told the media in Kigali shortly after signing the agreement. On Monday, June 17, 2019, Dr. Abdu Mukhtar, the Director of Industrial and Trade Development at the African Development Bank – the key financier of mega projects on the continent, announced that Nigeria is on its way to join the market. “African Development Bank has expressed optimism that Nigeria, the largest country on the continent will soon ratify the African Continental Free Trade Area (AfCFTA) agreement,” AfCFTA quoted Dr. Abdu Mukhtar on its Twitter handle. Celebrations are expected to fill up Niamey –...

Legislators from the East African Legislative Assembly (EALA) of the East African Community (EAC), and the Economic Community of West African States (ECOWAS) Parliament, have convened in Nairobi to deliberate on the acceleration of the ratification process and entry into force of the Protocol relating to the free movement of persons in Africa before the end of year 2020. The three-day meeting looked into the harmonization and alignment of the EAC and ECOWAS free movement frameworks with the “African Union Protocol to the Treaty Establishing the African Economic Community relating to Free Movement of Persons: Right of Residence and Right of Establishment” and its implementation roadmap. The legislators will also develop a plan to popularize the issuance of the African Passport, as a catalyst for the realization of free movement in Africa. Facilitated by the African Union Commission (AUC) Department of Political Affairs, the meeting is expected to develop a comprehensive ratification roadmap of the protocol and provide recommendations for the harmonization of the EAC and ECOWAS regional norms and policies on free movement of persons, as well as the border security management, aligned with the AU Protocol on Free Movement. The protocol needs fifteen (15) ratifications to come into force as a reflection of the commitment of African Union Member States to promote economic, social and cultural development, and the integration of African economies through seamless borders. AUC Head of Humanitarian, Refugees and Displaced Persons Division, Amb. Olabisi Dare, while urging the legislators to champion the ratification of the...