International trade has brought great benefits, but also inequities. By incorporating the philosophy of the SDGs into trade agreements, trade has the potential to benefit all. The value of world trade has nearly quintupled over the past 20 years from $5 trillion to about $24 trillion. Over the same period, trade has proved to be an excellent medium to leverage and promote economic growth, helping lift a billion people around the globe out of extreme and abject poverty. But in the last 10 years there has been a significant change in how international integration is perceived by the public and pursued in policymaking. As new middle classes have emerged in developing countries, middle-class prosperity in developed countries has found itself wavering. After the financial crisis of 2008, and especially in the last few years, the debate around the benefits of international trade has become much more fractious. One particularly contentious point is whether trade integration – establishing freer trade between countries – has resulted in inequitable economic growth, with some people and nations benefiting at the expense of others. Even the simplest classroom trade models acknowledge that trade benefits accrue unevenly. Trade integration can polarise the gap between the low and high skilled, suppress wage growth for workers facing overseas competition and create hardship and displacement for those who lose their jobs. As it happens, trade agreements are generally devised to reduce trade frictions across borders, while paying little attention to the distribution of the costs and benefits of trade...

Women Entrepreneurs in Kenya will hold a business meeting next month to discuss innovation solutions. Dubbed "Breakthrough to excellence: Uncovering business opportunities that give you a competitive edge" the forum will focus on changing the African traditional business model. The networking event, to be held at Karen Country Club, will bring together Carole Kariuki CEO, Kenya Private Sector Alliance, Wandia Gichuru MD of Vivo Activewear and Maggie Ireri director of TIFA Research among others. “Women compose over half of Africa’s rising population and their inclusion in social, political and economic spheres is critical if Africa is to reach elevated growth levels” FEWA founder and chairperson,  Joanne Mwangi-Yelbert, said in a statement.  According to a report by Ernst and Young, due to limited possibilities for advancement in their home continent, a significant proportion of degreed African women, nearly a third at 28 per cent, migrate out of Africa in search of suitable job opportunities. This is in contrast with only 17 per cent of educated men.  The rallying call is now out for African women entrepreneurs to rise to the challenge of finding solutions for Africa.  “African women are very entrepreneurial, owning a third of all businesses across Africa, however, many women entrepreneurs typically run microenterprises in the informal sector, often in businesses that reap low marginal returns due to minimal value addition on their products. This is a trend we need to change,” she said. Source: The Star

An economist and the Mombasa senator have raised fears the county will be losing at least Sh40 billion in revenue annually once the Naivasha dry port becomes operational. The government has directed all un-nominated containers belonging to upcountry importers transported on the SGR to the Inland Container Depot in Embakasi, Nairobi, for final clearance. Director of Stratton Consulting Ltd Johnson Ngila said of the 30 million tonnes of imports through the Kenya Ports Authority last year, 70 per cent was local cargo, the rest on transit. "Ninety per cent of local cargo was for Nairobi and its environs. This means the Naivasha port will really be taking a lot of cargo from Mombasa," he said. "This is good for the general economy but for Mombasa, it might have adverse effects depending on how businesses reorganise themselves to manage the disruption that will eventually happen because of the dry port." He spoke on Friday in Mombasa at a breakfast meeting organised by Senator Mohamed Faki. Ngila said the three SGR cargo trains that transport 300 containers daily, eliminating an equal number of trucks from the roads. "On average, the best we see the SGR doing this year is about 300,000 containers. And looking at the standard and average cost of ferrying a container to Nairobi, it will translate to about Sh21 billion in terms of lost businesses for truck owners," Ngila said. The director said the Container Freight Stations in Mombasa will lose the same number of containers and about Sh12...

Regional governments should move fast and expedite integration process to give the East African Community a competitive edge in proposed continental free trade zone, the East African Business Council (EABC) leaders have said. Last week, 44 African Heads of State and government officials signed the historic agreement which will enable the creation of the African Continental Free Trade Area (CFTA). The treaty, signed in Kagali on March 21, is expected to create largest trade bloc globally, with market share of almost $3.4 trillion and a population of over 1.2 billion people. However, EABC leaders say the slow implementation of projects expected to improve business climate in the region could put the region at a disadvantage when the treaty finally comes into force. This may leave the region behind if nothing is done to have the projects fast-tracked and late alone cost the region an opportunity to fully participate in the bigger “African market”. EABC vice-chairman and managing director Kigali Heights, Denis Karera, said full EAC integration will give the region competitive advantage, enabling it to benefit more from continental free trade zone. According to experts, the creation of African free trade area means regional blocs like EAC must find ways that will enable them to compete and benefit from the bigger market. Karera said delaying to ratify or implement some of the important regional treaties and projects could lender EAC almost non-player and irrelevant once CFTA comes to life. “The competition that comes up with CFTA can only be dealt...

The world's largest producer and consumer of peanut oil, China, which had a bad harvest in 2015, has since turned to Senegal, one of the few countries in the world not to consume all its production but also world's leading exporter of groundnuts. In 2015, the value of exports of this product in Senegal to Asia jumped from 1.7 to 30 billion CFA francs in 2017, according to the Ministry of Commerce, as per Afirmag. A vital sector for African economies Like Senegal, agricultural products are essential for trade in West Africa, for example. Their place in the various countries of this part of the continent remains globally important in terms of exports, whether for the different cash crops such as cocoa or cotton, but also in terms of imports: rice, wheat palm oil are essential to meet the needs of the people. Figures published by the World Trade Organization (WTO) show that, on average, for the twelve countries in the area where statistics are available, agricultural exports account for 23.5 percent of the total for this sector. This percentage varies greatly from one country to another. For Côte d'Ivoire, 69 percent is achieved; in contrast, for Nigeria, this contributes only four percent, or again, five percent for Guinea. According to Afirmag, for some countries, a product predominates widely. This is the case in Côte d'Ivoire (more than 50 percent for cocoa and more than 70 percent if cocoa by-products are added) or Benin, Burkina Faso and Mali for cotton (over 60 percent, 40 percent, and 70percent...

Public and private sector players should have a common approach that will help expedite the implementation of regional integration, thus drive the East African Community into a large market. Rwanda’s businessman, Denis Karera, the managing director of Kigali Heights, said a hormonised strategy is important, especially as the Africa prepares for the recently-endorsed continental free trade area. The deal to establish the Africa Continental Free Trade Area, of over 1.2 billion people, was signed on March 21 during the 10th African Union extraordinary summit in Kigali. Karera is also the current vice-chairman of EABC. Karera is was speaking during the inaugural East Africa Business Council (EABC) Excellence Awards 2018 in Nairobi, Kenya last week. The former EABC chairman, and another Rwanda businessman, Faustin Mbundu, the chairman MFK Group, were awarded for their exemplary leadership while leading the regional private sector umbrella body. Karera said the awards were a “great milestone toward building a united East African business community”. Other winners Local social enterprise that offers water solutions, Water Access Rwanda, scooped the Best East African Company award in SME category. Equity Group Holdings emerged overall winners, scooping the Chairman’s Award during a dinner held at the Kenyatta International Convention Centre, followed by Mabati Rolling Mills and Chandaria Industries based in Kenya. KCB Group was recognised as the Best East African Company in financial services, Bidco Africa won the manufacturing category, followed by Chandaria Industries and Mabati Rolling Mills, respectively. The awards recognise companies that have demonstrated exceptional business performance in...

State leaders from 44 African countries have agreed a deal to create a Continental Free Trade Area, set to become one of the largest in the world. The agreement was signed during a summit in the Rwandan capital, Kigali, although 10 countries refused to sign the deal, which will need to be ratified by all the signatories’ national parliaments before it can be put into effect. CFTA deal signed by African nations The African Continental Free Trade Area (CFTA) will remove a number of barriers to trade between African nations, including tariffs and import quotas, while allowing the free flow of goods and services between member countries – similar to the way the European Union operates now. The aim is to boost commerce, growth and employment in member states and make intra-African trade more profitable. Africa’s largest economy, Nigeria, is among the countries refusing to sign the deal and convincing the West African nation to get on board remains one of the biggest obstacles in the way of implementing the agreement. Nigerian president Muhammadu Buhari pulled out of last week’s summit after certain trade unions and businesses complained about not being consulted over the agreement. The African Union says it hopes the remaining countries will be persuaded to sign at a later date. Source: The East Africa Monitor

More than 40 countries signed the protocol to the treaty establishing the African Continental Free Trade Area (AfCFTA) in Kigali. The AfCFTA faces hurdles, but the eminent African tasked with reforming the African Union, Donald Kaberuka, remains optimistic. He spoke to Berna Namata. Before the AfCFTA, there were advanced talks on a tripartite area to bring together the EAC, SADC and Comesa, which could have covered about half of Africa. This trade deal is an acceleration of that process. Second, what we have learnt in this region is that it is possible to increase trade once you bring down tariffs as we have done in East Africa, because the level of trade within the region has almost reached the Association of Southeast Asian Nations levels -- just under 30 per cent. This is very significant. We now know that tariffs were not the most difficult thing to overcome: It is non-tariff restrictions. I hope and expect that as we launch the AfCFTA, we will bring these lessons to bare. There are gains to opening up, but we need to work hard on logistics, non-tariff restrictions and freedom of movement of people. There are several issues that need to be settled to make the AfCFTA agreement effective, but they require stronger political commitment. How much of a concern is this? I wouldn't say political will as such; it is how you address the fears of those who think that when you come together, it is a zero-sum game. There will of...

Kenya’s growing importance as a global hub for trade explains why the nation has been experiencing the fastest rise in foreign direct investment in the continent. Speaking specifically about the logistics sector, a number of international companies acquiring local players in Kenya is a clear indication of the lucrative nature of the business here, particularly with perishables. That apart, the Kenyan government has initiated a wide number of infrastructural projects to set the ball rolling, Surya Kannoth reports. One of Africa’s most developed nations, Kenya moved up 21 places in the 2017 World Bank report on ‘Ease of Doing Business Index’ to position 92 globally, making it the third most improved economy in 2017. This jump in ranking came following a similar improvement of 21 slots in 2016. This speaks volumes about how the country has emerged from its days of political instability and economic downturn. Initiating a broad range of business reforms, the Kenyan government is leaving no stone unturned to attract more investments into the country. Recently, Nairobi Governor Mike Sonko promised international investors at global forum facilitation to acquire land for setting up special economic zones. The Nairobi County government has announced plans to reduce levies for foreign investors as it seeks to transform the city into a global investment destination. “The national government in conjunction with my office is working towards ensuring Nairobi becomes a logistics hub for both imports and exports,” he announced. “A lot of infrastructure developments have been undertaken, including major road bypasses,...

Kenya’s exports to Tanzania plunged to a nine-year low as the country’s share of the regional market in 2017 shrunk significantly. Latest data from the Central Bank of Kenya (CBK) shows that exports to the rest of the East African Community (EAC) member states were not any better, pointing to Kenya’s dwindling fortune in the region despite a protocol allowing free movement of goods in the five EAC member states. It is a worrying trend that certainly casts doubt on the future of EAC whose member countries ratified the Common Market Protocol in 2010 to ease the free-flow of goods among the five states. Exports to Tanzania in 2017 declined from a high of Sh46 billion in 2012 to Sh28.5 billion, even as exports to Uganda and Rwanda flattened. Imports from Tanzania to Kenya have also gone down, declining from Sh19 billion to Sh13 billion in 2017. Exports to Uganda- for long Kenya’s main export destination- have also under-performed, declining from an all-time high of Sh76 billion in 2011 to Sh61.8 billion in 2017. Kenya’s exports to Uganda rose steadily from a low of Sh27.8 billion in 2006 touching an all-time high of Sh76 billion in 2011 before they flattened to an average of Sh63.3 billion. POLICY OF INDUSTRIALISATION There was a pronounced bump in Nairobi’s exports to Kampala a year after the signing of the common market protocol. The value of goods exported to Uganda increased by 46 per cent from Sh52.1 billion to Sh76 billion, as optimism of...