President Trump has reportedly decided to impose new tariffs of 25 percent on imports of steel and 10 percent on imports of aluminum. This comes after the Commerce Department conducted two lengthy — but mostly closed-door — investigations under Section 232 of the Trade Expansion Act of 1962. Under this law, Commerce Secretary Wilbur Ross concluded that imports of steel and aluminum threaten America’s national security and recommended that Trump impose comprehensive new import restrictions. Imposing trade restrictions to protect national security would be an unprecedented shift in U.S. policy. While there have been many historical episodes of the U.S. steel industry demanding — and being granted — import protection of some form, what is taking place this time is truly different. This kind of protection would have tremendous economic and institutional repercussions well beyond the two cases currently on Trump’s desk. Here are five reasons for that: 1) This cuts a significant amount of imports. The two investigations cover about 2 percent of total U.S. goods imports in 2017: Imports of steel were $29 billion and aluminum $17 billion. These two are the largest of all trade investigations the Trump administration has conducted — each involves much more trade than the combined imports hit by Trump’s tariffs on solar panels and washing machines, announced in January. And the proposed cuts in imports are sizable. Trump’s tariffs would go further than Ross’s recommendations, which aimed to slash steel imports by 37 percent and aluminum by 13 percent. New tariffs would probably...

Africa Ministers of Trade have approved an agreement to give local traders access to the continental trade market, trade Principal Secretary Chris Kiptoo said. Describing the move as a big achievement for Africa’s regional integration efforts, Kiptoo, on his official twitter account said the agreement is now awaiting approval by Africa heads of state. “Today in Kigali, Africa ministers of trade approved the agreement establishing the Africa Continental Free Trade Area expected to be signed during Extra Ordinary Summit of AU on 21 March 2018,” he said. The ministerial approval came six years after the decision to form the free trade area was adopted during the 18th ordinary session of the Assembly of Heads of State and Government of the African Union held in January 2012 in Ethiopia. Cabinet Secretary Industry, Trade and cooperatives Adan Mohamed led a Kenyan delegation to the two day conference which aimed at adopting the agreement which has detailed legal measure on how the trade will be practiced. Some of the protocols and Annexes in the agreement include Protocol on Trade in Goods, Protocol on Trade in Services, and Protocol on Dispute Settlement. “The AFCFTA will bring together 55 African countries with a combined population of more than 1.2 billion people, with a vibrant and growing middle class, and a combined gross domestic product of more than Sh344.08 trillion ,” Mohamed said According to a statement from the Ministry of Trade, Industry and cooperatives, the agreement, once signed by the Africa heads of state, will...

The African Development Bank (AfDB) has said it is in talks with its Governors to unravel strategies that are effective and efficient in closing Africa’s $170 billion infrastructure investment gap. The bank also canvassed for support among its East and North African Governors on the need for urgent measures to match the continent’s growing population and youth unemployment, which it likened to a “ticking time bomb.” At a two-day consultation at the bank’s headquarters in Abidjan, CÕte d’Ivoire, they however, described the continent’s growing young population as a potential growth engine for the world, when harnessed. AfDB President, Akinwumi Adesina, said the good news is that the solution is within our reach and will require investments. Already, to bridge the investment gap, ensure inclusive growth, and create employment for the continent’s population, the meeting endorsed the African Development Bank-led African Investment Forum and described it as a timely opportunity to catalyse investments into projects and attract social impact financing to Africa. Tanzania’s Minister for Finance and Planning, Isdor Mpango, called for closer involvement of the private sector in financing development on the continent. “The African Development Bank is well positioned to advise and assist governments and the private sector to come up with bankable projects,” Mpango said, calling for “direct resources to provide budget support and investment opportunities.” Through the AIF scheduled for November 7 to 9, 2018, in Johannesburg, South Africa, the region’s development bank and its partners intend to showcase bankable projects, attract financing, and provide platforms for...

East African Development Bank (EADB) has secured a Sh1.5 billion ($15 million) loan from the Arab Bank for Economic Development in Africa (Badea) for onward lending to traders in Kenya and other member countries. The purpose of the credit is to enable EADB finance imports from eligible Arab exporters to particular importers in the East African Community (EAC) countries. EADB – owned by Kenya, Uganda, Tanzania and Rwanda – usually funds regional projects in infrastructure, manufacturing, agribusiness and education sectors. “We have continued to build relations with new lenders and development partners. To this end, the Arab Bank for Economic Development in Africa (Badea) has established a line of credit with the EADB of an amount of $15 million,” said EADB director-general Viviane Yeda in a statement. As at end of 2016, the EAC member states had a stake of 87.3 per cent, with African Development Bank (AfDB) holding most of the remaining shares through its 8.8 per cent shareholding, callable capital, technical assistance and funding lines. The EADB strategic plan for the period 2016 to 2020 follows a period of business growth over the previous plan period 2011 to 2015 and an in-depth review of EADB operations and related operations policies in 2015. In December last year, Global Credit Ratings (GCR) affirmed the long-term and short-term national scale ratings assigned to the regional lender of AA+ (UG), (KE), (TZ), (RW), and accorded it a stable outlook, besides affirming its foreign currency international scale rating of BB+. Source: Business Daily

The East African Community member countries have been asked on to increase intra-regional trade so as to support the industrialisation agenda of the region. According to statistics from the World Bank, Africa’s share of global trade was at 2% three years ago and has gone down further by a percentage point. This means that the rest of Africa is growing its share in global market while Africa is not. This is backed by reports that the amount of trade Africa does within itself compared to other regions is low at 11%. Ali Mufuriki, a businessman and board chairman of Trademark East Africa, said Europe is at 60%, Asia has 60% and yet these do not have a free trade area. He made the remarks during the opening of the East Africa Trade and Development Forum recently. The event was organised by the trade ministry with support from Trademark East Africa. The two-day forum was aimed at creating a platform for partners and stakeholders in trade development to review, reflect and exchange ideas on the progress of Trademark East Africa and its partners. Mufuruki said for the region to achieve its industrialisation potential, there is need for member states to focus on the production of high value goods. People should be empowered with skills that will enable them work, own and drive the industries, which will in turn create jobs. He noted that EAC regional trade may not grow if cross border trade is one sided. Mufuruki cited the example of...

The UK should turn to Saudi Arabia for new trade and investment opportunities after Brexit and not a backward-looking Commonwealth, Saudi ministers said on the second day of a controversial visit to the UK by the country’s crown prince. As the UK and Saudi Arabia set out a broad ambition to strike nearly $100m of commercial deals over the next decade, the powerful Saudi energy minister, Kalid A al-Falih, told a business conference in London: “I would like to think that Saudis can be the pivotal link to a new partnership sphere for the UK that is perhaps not positioned in the past, as is the Commonwealth, but forward-looking, looking at the demographics of the Middle East, Africa, and Islamic world to which Saudi Arabia is central.” The UK should regard the kingdom as the dominant force in the Gulf and “your gateway to Africa, one of the next frontiers”, he said. Al-Falih’s pitch, emphasising that both the UK and Saudi Arabia were at “inflection points”, underlines the extent to which the Saudis sense the UK will need to step up its search for new trade partners after Brexit to replace lost EU markets. UK and Saudi entities on Thursday signed more than 18 economic agreements worth more than £1.5bn, covering education, pharmaceuticals and banking. Before heading to Chequers for a private dinner with the prime minister, the 32-year-old crown prince, Mohammed bin Salman, held a round of meetings mainly at the Saudi embassy in Mayfair. Seen as the dominant...

Amidst big talk on how to raise over US$78 billion for regional infrastructure projects, Tanzania’s President John Pombe Magufuli Magufuli had tough questions for the East African Community Council of Ministers. “I am sorry I am harsh but why did the Secretary-General not tell us why they only implemented 14 out of the 200 projects earmarked in 2014?” Magufuli asked at the recently concluded 19th ordinary summit of the East African Community Heads of State at Speke Resort Munyonyo, a Kampala suburb. His question also echoed concerns the East African Community Integration process has been too slow. Political will from frontline Presidents to implement initiatives of the integration process; the appetite to spend on big infrastructure projects to connect the region and ease the cost of doing business and how to fund the planned projects appeared the central issues at the meeting. This year’s retreat was the 4th on Infrastructure Development and Financing and it aimed at reviewing progress on the implementation of the priority projects agreed upon in the 3rd Retreat held in November 2014. It also served as the 1st Retreat on Health Sector Financing and Development. Apart from current EAC Chairman and host President Museveni, Kenya’s Uhuru Kenyatta, South Sudan’s Salva Kiir, Magufuli, First Vice President of the Republic of Burundi, Gaston Sindimwo attended the meeting. Rwanda’s Minister of Infrastructure, James Musoni, represented President Paul Kagame. The meeting was organized under the theme ‘Enhancing Socio-Economic Development for Deeper Integration of the Community.’ The Presidents plan to complete...

Three criteria often cited as being key criteria in the pursuit of sustainable economic growth and social development include adequate infrastructure, macroeconomic stability and an articulate and achievable development strategy. Despite the equal importance of the three criteria noted, our focus today shall be infrastructure. The importance of infrastructure development to achieving economic posterity is a topic well canvassed. Indeed, it is commonly noted that infrastructure development is a foundation on which to build an economy. Efficient infrastructure supports economic growth, improves the quality of life, and is necessary for national security. Zeroing in to quality of life, numerous studies point at there being a direct correlation between investment in public infrastructure and quality of life. These include investments in transportation, power and communication facilities and social infrastructures to name a few. In acknowledgement of the necessity of quality infrastructure to the achievement of economic advancement, the East African region has pointed out infrastructure development as a key tool for regional development. As a step toward the achievement of this, East African Community (EAC) leaders, in the recently concluded retreat on infrastructure development and health financing and development, pledged to invest $78 billion (Sh7.9 trillion) on infrastructure development over the next ten years. This will be utilised to fund over 200 capital intensive projects, such as the Standard Gauge Railway, renewable energy and various oil and gas projects in the region. As evident from the price tag of $78 billion, infrastructure projects are highly capital intensive. Often times, these are financed...

‘Potential’ is a word that crops up pretty frequently when discussing developments in East Africa’s ports sector. Certainly there are a number of significant projects moving ahead to provide deeper water, expanded facilities and entirely new ports. But for this region, ‘potential’ stretches far beyond national borders. In the tussle to serve landlocked countries, a port’s success is as much about its hinterland links and IT infrastructure as it is about straightforward quays and cranes. As such, there is significant investment in rail, bridges and inland terminals and dry ports. “There is a lot of investment in Africa, particularly from the Chinese. I am sure the potential is there – but how many years have we been saying Africa has potential?” says Dean Davison of London-based Clipper Maritime. “Certain ports benefit from their geographical location but they can’t control other factors such as national economic developments, local population and levels of demand.” Sultan Ahmed Bin Sulayem, DP World’s chief executive, recently said: “Africa’s trade potential is enormous, evident in the 400% increase in trade between Africa and the rest of the world in the last two decades. Infrastructure development is more important than ever to maintain and increase this growth momentum.” Public-private partnerships (PPP) are the route to progress in Africa, he said – they are an effective model to fund projects, especially those on infrastructure, “while robust government policy and transparency are essential to its success”. In all of the countries where DP World has operations in Africa, it...

In a historic first, East African Governors of the African Development Bank met with the President Akinwumi Adesina and Executives to discuss economic challenges, opportunities and successes in the continent’s fast-growing powerhouse region East African Governors of the African Development Bank (AfDB.org) met with the President Akinwumi Adesina and Executives to discuss economic challenges, opportunities and successes in the continent’s fast-growing powerhouse region. On the agenda: closing the $170 billion infrastructure gap across the continent, keeping pace with the region’s booming youth population, creating jobs and safeguarding peace and security. President Adesina assured the gathering that the Bank intends to make the strategic regional consultations an annual event to allow for more open dialogue, constructive feedback and the acceleration of development reforms. “We have 12 years left to the SDGs. It is an alarm bell because if Africa does not achieve the SDGs, the world won’t achieve them. The African Development Bank is accelerating development across Africa through the High 5s,” he stressed. “We are leveraging more resources for Africa’s development and the impact of our interventions is being felt.” The Governors – chiefly Finance Ministers and Ministers of Economic Planning representing Burundi, Comoros, Djibouti, Ethiopia, Kenya, Rwanda, Somalia, South Sudan, Sudan and Tanzania – shared these sentiments. “The High 5s are what Africa needs now,” said Henry Rotich, Kenyan Minister of Finance. “The Bank has financed one of our key interventions, the Last Mile Project, thanks to which 70 percent of Kenyans now have access to power in rural...