The United Nations Economic Commission for Africa (ECA) has urged African countries and pan-African institutions to prepare modalities as the African Continental Free Trade Agreement (AfCFTA) edges closer to entry into force. Adeyinka Adeyemi, ECA senior adviser with the African Trade Policy Center (ATPC), called on African countries and partners to undertake trade and investment forums toward the success of the continental free trade pact, which is weeks away to entry into force. On Wednesday, the African Union (AU) set a one-month timeframe to activate the AfCFTA on May 30 as Sierra Leone and the Saharawi Republic deposited their instruments of ratification to the AU Commission earlier in the week. “The two deposits meet the minimum threshold of ratifications required under Article 23 of the AfCFTA Agreement for it to enter into force 30 days after the deposit of the 22nd deposit, which is made by the Saharawi Republic,” the AU said in statement on Wednesday. According to Adeyemi, continental and regional forums and meetings are vital instruments to deepen economic integration of African countries, which is a “vital imperative toward the success of the AfCFTA.”  “There is no doubt that the AfCFTA will not only reduce or eliminate barriers to trade and harmonize standards on the continent,” Adeyemi said. “It will also provide an overarching framework within which regions can address their peculiar challenges in a specific manner. “The free trade pact “should also be used as a catalyst for inclusive and sustainable socioeconomic development in Africa,” he said....

Kenya on Wednesday called on East African financial market regulators to invest in robust information technology (IT) systems to reduce losses occasioned by failure of the bourses trading systems. Speaking during the launch of the Capital Markets Soundness Report in Nairobi, Luke Ombara, director of regulatory policy and strategy at Kenya's Capital Markets Authority (CMA), said the automated trading systems (ATS) across the region had experienced a rise of system hitches which impact trading activity at the bourses. "On April 1, the market trading infrastructure experienced a delay in opening due to unavailability of the central depository system, with trading commencing at 2.55 p.m. with 15 minutes pre-open and two hours and ten minutes of continuous trading to close 5:00 p.m., resulting in a turnover value of 369.7 million shillings (3.69 million U.S. dollars) for the day, a decrease of 44.4 percent from the previous trading day," he said. Ombara said similar challenges occurred in October 2018, leading to an extended delay in trading hours by more than four hours, an impact which led to a drop in equity turnover for the day. Ombara said improved systems will increase opportunities for improved capital markets' infrastructure in future within the region as well as on the global landscape. "Adopting a strong IT system within the market infrastructure will see safer, cheaper, more robust and efficient transactions within the markets which can in turn significantly boost trading liquidity," he added. Wycliffe Shamiah, CMA's director of market operations, hailed concerted efforts by the...

As far as trading blocs go, the European Union (EU) has been a global case study of how to turn a free market into a common market.    Faced with notable challenges in the integration process such as the consecutive crises in the Exchange Rate Mechanism in the early 90’s, the EU defied all odds and continued to expand in depth and geography in a historic feat. However, two years ago, this ideal trading bloc was hard hit by the Brexit vote, which triggered a global conversation on regional trading, agreements and integration towards creating shared prosperity for the countries involved.   In our own context, a snapshot of East African Community (EAC) intra-trade in the past few years will reveal tension-filled trade-relations, as well as an overall cloud of uncertainty on the future of the bloc.   Yet with our geographical advantages, natural resources and global reputation, EAC holds huge potential to set the pace for the Africa Continental Free Trade Area (AfCFTA) and lead the continent into a new age trading with the world on a mutually beneficial platform. Whilst there isn’t much comparison to be made with the EU, one undisputable thing is that their integration process was marred by political and social differences especially with bringing on board Eastern European countries. Through the chaos, nonetheless, members designed new institutions with a view to open up markets and ideological alignments. Our challenges in integration are also hampered by political and social differences, which manifest in seemingly endless Non-Tariff Barriers...

Non-tariff barriers (NTBs) remain a key challenge to east African integration since the establishment of Custom Union (CU) Protocol in 2005. It is clear that trade liberalisation is the central objective of East Africa Community (EAC) and it cannot be achieved with the continuous persistence of old and emergence of new NTBs. NTBs are restrictions that result from prohibitions, conditions or specific market requirements that make importation or exportation of products difficult and/or costly. The EAC Elimination of NTB Act, 2017, also defines NTB as laws, regulations, administrative and technical requirements other than tariffs imposed by a partner state, whose effect is to impede trade. The objectives of EAC Elimination of NTB Act, 2017, are to provide a legal framework for removal of NTBs, provide a process for identification and monitoring the removal of NTBs. The removal of all restrictions to trade will create a truly single market in the region with a market of close to 184 million people. There are several initiatives in place to address NTBs in the EAC. First, the main instrument was the EAC Time-Bound Programme for Elimination of Identified NTBs (EACS, 2009). The strategy of EACS, 2009, was to come up with a list of NTBs reported by partner states and update them during quarterly NTB review meetings. During the meeting new NTBs are reported and the resolved ones are moved to the end of the list. However, the report does not explain how the NTBs have been resolved or how to ensure that...

Kenya plans to modernise an old railway track to link a newer line to neighbouring Uganda at a cost of $210 million (Ksh.21.3billion). According to Reuters, the funding for the project is expected from an unidentified private backer rather than building another modern one with Chinese money. The development of Kenya’s railways has been part of China’s “One Belt, One Road” initiative, a multi-billion dollar series of infrastructure projects upgrading land and maritime trade routes between China and Europe, Asia and Africa. Kenya opened a modern railway linking the port of Mombasa with the capital Nairobi in 2017 at a cost of $3.2 billion (Ksh.323.9billion). This was then linked with another new line, costing $1.5 billion (Ksh.151.7billion) and also funded by Chinese loans, to Naivasha in the Rift Valley. The Nairobi-Naivasha standard gauge rail (SGR) line, will be opened in August but does not yet extend to Uganda. “We need to make sure that when we commission the SGR in August, we have connectivity to Uganda from the SGR so we have to rehabilitate that line to make sure it is properly functional,” Kenyan transport minister James Macharia told Reuters, adding that the work will take a year to complete. Macharia said that spending $150 million (Ksh.15billion) to rehabilitate a decades-old line from Malaba on the border with Uganda and using the rest to build another short track connecting the SGR at Naivasha would be a quicker option than building another SGR. A Chinese loan worth $3.7 billion (Ksh.374billion) for...

EAST African region will continue to lead other regions in Africa in terms of economic growth thanks to infrastructure investment and the expansion of financial and telecoms services, an Institute of Chartered in England and Wales (ICAEW)’s latest report says. The report which paints a rosy picture of growth in the region says East Africa is expected to remain the strongest growing region with a 6.3 per cent economic expansion this year. Ethiopia, Rwanda, Tanzania and Uganda are all expected to record real GDP growth above 6 per cent this year, largely due to infrastructure investment and the expansion of financial and telecoms services. African economic growth has in general been driven by public infrastructure investment and the expansion of services to a largely underserviced population. However, financial technology (FinTech) is increasingly receiving attention from both private and public sector, facilitating innovation in other sectors of the economy and allowing African nations to leapfrog more traditional infrastructure. Michael Armstrong, Regional Director, ICAEW Middle East, Africa and South Asia said “African economic growth is currently driven mostly by traditional sectors, However, FinTech has the opportunity to leapfrog other key drivers and to foster inclusive development. But this can only happen if it is managed properly.” Almost one-third of total funding on the continent was raised by fintech start-ups in 2017. This can be supported by the fact that 60 per cent of all mobile money accounts globally can be found in sub-Saharan Africa (SSA), according to an Ecobank study. The FinTech...

Cabinet Secretary for Foreign Affairs Amb. Monica Juma arrived in Washington DC on Monday afternoon for the inaugural Bilateral Strategic Dialogue between Kenya and the US. The delegation of Kenya also includes Interior CS Fred Matiangi and high level government officials from the Ministries of Defence, Interior, Trade and Foreign Affairs. The first annual meeting will be held from May 7 to May 8, 2019. This is after U.S President Donald J. Trump and President Uhuru Kenyatta established the Dialogue at the White House on August 27, 2018, when they elevated the bilateral relationship to a Strategic Partnership. The Strategic Partnership is grounded in shared values, mutual cooperation, and a common vision for free, open and secure societies. Ambassador Monica Juma will jointly sign the strategic dialogue framework agreement with Deputy Secretary John J. Sullivan on May 7. On May 8, the two countries will be holding a high-level meeting organised around four thematic pillars. These include economic prosperity, trade, and investment; defense cooperation; democracy, governance, and civilian security; and multilateral and regional issues. CS Juma thanked the US Government for convening this first session of the BSD. "I wish to thank the US Government for hosting the inaugural meeting of the BSD. This is a clear demonstration of its commitment to our strategic partnership. The Kenyan delegation looks forward to productive engagements in the light of the very successful preparatory sessions that have taken place so far," she said. The CS also met with David Trachtenberg, Deputy Undersecretary for...

The United Nations Economic Commission for Africa (ECA) has urged African countries and pan-African institutions to prepare modalities as the African Continental Free Trade Agreement (AfCFTA) edges closer to entry into force. Adeyinka Adeyemi, ECA senior adviser with the African Trade Policy Center (ATPC), called on African countries and partners to undertake trade and investment forums toward the success of the continental free trade pact, which is weeks away to entry into force. On Wednesday, the African Union (AU) set a one-month timeframe to activate the AfCFTA on May 30 as Sierra Leone and the Saharawi Republic deposited their instruments of ratification to the AU Commission earlier in the week. “The two deposits meet the minimum threshold of ratifications required under Article 23 of the AfCFTA Agreement for it to enter into force 30 days after the deposit of the 22nd deposit, which is made by the Saharawi Republic,” the AU said in statement on Wednesday. According to Adeyemi, continental and regional forums and meetings are vital instruments to deepen economic integration of African countries, which is a “vital imperative toward the success of the AfCFTA.” “There is no doubt that the AfCFTA will not only reduce or eliminate barriers to trade and harmonize standards on the continent,” Adeyemi said. “It will also provide an overarching framework within which regions can address their peculiar challenges in a specific manner. “The free trade pact “should also be used as a catalyst for inclusive and sustainable socioeconomic development in Africa,” he said....

Kenya has made major strides in trade facilitation since implementation of the Single Window System commenced in 2012. This was revealed during the just concluded General Assembly of the African Alliance for e-Commerce (AAEC) recently held in Dakar, Senegal, in which KenTrade CEO, Amos Wangora was re-elected to the Presidency of AAEC General Assembly for another 2-year term. Kenya was also re-elected as the Chair of the AAEC’s Technical Committee for another 2 years. On the sidelines of the General Assembly which also marked the body’s 10th anniversary, AAEC held an international Single Window conference which brought together delegates from over thirty countries and experts from international trade bodies. The conference presented an opportunity for countries implementing the single window system to exchange views and share experience on implementation of their respective single window systems in the wake of the trade facilitation enhancement initiatives by various Africa countries. While presenting the status of the Kenyan Single Window System, Amos Wangora noted that implementation of the Single Window System (Kenya TradeNet) has resulted in streamlined import and export processes and procedures, transparency, effective information sharing and provision of a reliable and dependable platform on which stakeholders involved in international trade collaborate. AAEC is part of the African-led efforts to promote the concept of national and regional single window in compliance with recommendations of international institutions, as well as championing the use of Electronic Single Window System as a tool for cross border trade. AAEC members include Kenya, Benin, Bukina Faso, Cameroun, Congo,...

REPRESENTATIVES from the six East African Community (EAC) partner states meet in Mombasa tomorrow for the ninth East African Petroleum conference and exhibitions. Dubbed the EACPCE 19, the three-day conference is expected to offer a wide range of technical presentations reflecting on developments in the oil and gas industry in East Africa and globally. A statement released by the corporate communications and public affairs department of the EAC Secretariat here yesterday said the conference will also offer a platform for discussions on the legal and policy framework as well as overall business environment prevailing in the region. “It gives stakeholders in the oil and gas sector an opportunity to interact with EAC senior government officials and decision makers,” said the statement. Some of the topics that will come up for discussion during the meeting include licensing regimes, East African Rift Basins, East African Coastal Basins, Offshore Exploration Opportunities Exploration in inland Basins and Petroleum Data Management. It will also delve on meeting the regional petroleum needs, crude oil and refined petroleum products pipelines, exploring on exportation and refining options for crude oil. Comprising of six partner states—Tanzania, Kenya, Uganda, Burundi, Rwanda and South Sudan—with a combined population of over 168 million, EAC’s broad goal is economic, social and political integration to create wealth in the region and enhance competitiveness through increased production trade and investment. The community seeks to improve the quality of life for the people in the region through its mission of widening and deepening integration and the...