NAIROBI (IDN) — When the COVID-19 pandemic crisis started, most people were extremely pessimistic. They thought that the region would drown in terms of trade declining catastrophically. But a new report reveals that the East Africa Community economies — Burundi, Kenya, Rwanda, South Sudan, Tanzania, and Uganda — have, by global standards, proven to be relatively resilient. The report was launched on February 17 by UN Economic Commission for Africa (UNECA), TradeMark Africa (TMA) and African Economic Research Consortium (AERC). The Office for Eastern Africa of the UN Economic Commission for Africa (UNECA) serves 14 countries: Burundi, Comoros, Democratic Republic of Congo, Djibouti, Ethiopia, Eritrea, Kenya, Madagascar, Rwanda, Seychelles, Somalia, South Sudan, Tanzania and Uganda. TMA has its headquarters in Nairobi, Kenya, with operations and offices in EAC-Arusha, Burundi (Bujumbura), Tanzania (Dar es Salaam), Democratic Republic of Congo (Bukavu), Ethiopia (Addis-Ababa), Malawi, Zambia, South Sudan, Uganda (Kampala) and Rwanda (Kigali). TMA is an aid-for-trade organisation established in 2010, with the aim of promoting prosperity in East Africa through increased trade. It operates on a not-for-profit basis and is funded by the development agencies of the following countries: Belgium, Canada, Denmark, Finland, Ireland, Netherlands, Norway, United Kingdom, United States of America as well as the European Union. African Economic Research Consortium established in 1988, is a premier capacity building institution in the advancement of research and training to inform economic policies in sub-Saharan Africa. Entitled "Waving or Drowning? The Impact of the COVID-19 Pandemic on East African Trade", the report notes...

Insecurity and political tension continue to undermine Africa by disrupting peacebuilding, development and governance efforts. A key driver of insecurity has been the effects of the arbitrary borders bequeathed to the African continent by the ravages of predatory colonialism. Traditional interstate wars have been increasingly replaced by intrastate conflicts. The African Continental Free Trade Area (AfCFTA) was formally launched this year and was discussed during the annual African Union (AU) heads of state and government meeting, which was held on 6 and 7 February 2021, in Addis Ababa, Ethiopia. South Africa’s chairing of the assembly of heads of state was also concluded during this meeting. The AfCFTA was launched due to the realisation that intracontinental trade in Africa is still relatively weak when compared with other regions of the world, and accounts for only 16%-17% of all of Africa’s exports and imports. The establishment of a continent-wide geographic zone where goods and services move among member states of the African Union with no restrictions has also created one of the world’s largest trading blocs. However, the fact that there are pockets of instability and conflict around the continent requires some reflection to be applied to how to leverage the AfCFTA to also promote peace and security. The regionalism which has been accelerated by the adoption of the AfCFTA will bring with it a combination of threats and opportunities which will impact upon the peace and security situation across the continent. The predominant fear is that the AfCFTA, and its effects...

In Summary KPA has taken over operations at Port Reitz Yard increasing cargo handling space. Introduction of double deck wagons on the SGR have also significantly contributed to increased cargo evacuation from the port. Kenya Ports Authority (KPA) has posted reduced cargo dwell-time at the Port of Mombasa after acquiring more space outside the port, according to the acting managing director Rashid Salim This, together with increased haulage capacity by the Standard Gauge Railways (SGR) has helped cut dwell-time (the time cargo takes before leaving the port), to an average 4.6 days in January, from 5.6 days in December. Salim said centralised operations have helped drive efficiency at the facility amid a rebound on economic activities after a slow down last year. Recently, KPA took over the operations at Port Reitz Yard, an adjacent space to the port formerly occupied by private Container Freight Stations. Salim said the authority has reorganised the planning units of the logistics partners, increasing harmony in the operations of the unit leading to end-to-end efficiency in port operations. Loading of double deck wagons has greatly boosted the number of containers being evacuated. We started with one double deck train of 38 wagons hauling 114 TEUs and this has now stabilised at two trains per week. KPA acting managing director Rashid Salim Dangerous cargo loading which was previously experiencing great delays due to distance of the loading zone from stacking blocks was improved by allowing it to be loaded at Port Reitz. Additionally, centralisation of the...

The United Nations Secretary General Antonio Guterres has appointed a Belgian Isabelle Durant as the Secretary General of UNCTAD at an acting capacity. Durant was appointed to replace Mukhisa Kituyi who resigned to pursue his political ambitions in the oncoming General Elections in Kenya. "She is committed to working with all stakeholders to ensure the people served by the organization get the support they need during the crisis and on the path to recovery," announced UNCTAD Tuesday afternoon EAT. Ms. Durant will not serve in a full capacity as she is expected to ensure a smooth transition ahead of the main recruitment. She expressed gratitude and promised to propel the UN's trade organ. “I’m deeply honoured to lead UNCTAD at this critical time as countries all over the world battle a deadly pandemic and the worst economic crisis in nearly a century,” Ms. Durant said. “I’m committed to working with all stakeholders to ensure the people we serve are supported during this crisis and feel us by their side on the path to recovery,” she said. She added “I’ll work closely with UNCTAD’s 195 member states to prepare the organization for a meaningful 15th quadrennial conference in Barbados in October, for a more resilient and inclusive world of shared prosperity.” UNCTAD praised Ms.Durant as gender crusader who has made international trade more inclusive. Ms. Durant has been heavily involved in the socio-economic response of the UN to the coronavirus crisis and has led the work of UNCTAD in this area,...

In Summary The pact which remains open to other regional states seeks to have customs duties applicable to products originating in the UK progressively abolished. The first move is the reduction of basic duty on UK imports to 80 per cent, seven years after the entry into force of the agreement. Kenya's Economic Partnership Agreement (EPA) with the UK has specific provisions protecting the local market from unfair competition from UK producers, the government has said. It equally protects the East African Community (EAC), according to Kenya’s Trade ministry, this as parliaments from the two countries move to ratify the deal signed last December. The pact which remains open to other regional states seeks to have customs duties applicable to products originating in the UK into the EAC partner states, progressively abolished, a move that has raised the question of unfair competition. "What the UK is providing for Kenya and the EAC is a secure, long-term and predictable basis for deepening their access to the UK market" Faynie Mwakio, Public Communications Officer, State Department for Trade and Enterprise Development  The first move is the reduction of basic duty on UK imports to 80 per cent, seven years after the entry into force of the agreement, with a final abolishment after 15 years. Between seven and fifteen years, the duty will be reduced from between 80 per cent (after seven years) to 10 percent (fourteen years after the entry into force of the agreement). It however provides a platform for reviewing...

MINISTERS from the tripartite group of regional economic communities in eastern and southern Africa have set June 2021 as the deadline to achieve the threshold of 14 ratifications required to enable the Tripartite Free Trade Area (TFTA) to enter into force. The deadline was set during the 2nd Extra-Ordinary Meeting of the Tripartite Council of Ministers held virtually last week. It coincides with the 6th anniversary since the launch of the TFTA agreement on 10 June 2015 in Egypt, said the Common Market for Eastern and Southern Africa (Comesa) in a statement. The tripartite group brings together member States of Comesa, the East African Community (EAC) and the Southern Africa Development Community (Sadc). “The countries that ratified the agreement earlier have not realised the benefits they had expected as they have been held back by those that have not,” the ministers were quoted as saying, noting that some member States have ratified the African Free Trade Area (AfCFTA) but not the TFTA. “The ministers advised countries to delink ratification with the ongoing negotiations. Besides, the team of experts conducting the negotiations confirmed they will be concluded before June this year,” said Comesa. Currently, 10 member States, which are Botswana, Eswatini (Swaziland), South Africa, Zambia, Namibia, Burundi, Egypt, Kenya, Uganda, and Rwanda have ratified the agreement with four more needed to attain the ratification threshold. The Comesa, EAC and SADC member and partner States represent 53 percent of the African Union membership, constitute over US$1,4 trillion Gross Domestic Product (GDP), which...

At the end of December 2020, after intensive negotiations, the approval of a trade deal between the UK and the EU was rushed through the British Parliament. There is, however, still little clarity on what Brexit will mean in practice in the long run. What are the threats and opportunities for international development resulting from the UK-EU agreement? Let’s see what international experts say about that. What are the threats and opportunities for international development resulting from the UK-EU agreement?  Adrian Green, Independent expert “The transition is over and Britain is fully out of the European Union. The Brexit agreement references sustainable development, climate change, public goods, but solely as principles underpinning UK-EU relationships on trade and commerce. On aid, the agreement is silent. Are there major risks or opportunities? Whether the UK contribution to EuropAid will revert into UKAid is a moot point just now with the aid budget reducing, but one direct threat is already evident – many UK development-focused NGOs and private sector bodies face an EU-aid freeze out.  Looking wider, there may be an opportunity to reshape how the UK ‘does’ aid – leading to greater impact in selected focal areas, as a ‘force for good’. The upcoming UK leadership of the G7 and Glasgow COP could be useful divining rods. Among these, topical in the Brexit environment, are: beefing up British business ethics, stronger illicit finance/tax avoidance rules, offering vastly better trade and invest B2B partnership terms than the EU does for developing nations. Backed by significant...

26th February, Nairobi - United Kingdom (UK) Trade Envoy to Kenya Theo Clarke has today virtually visited projects funded by UK government in Kenya among them the Integrated Customs Management System (iCMS), Regional Electronic Cargo Tracking System (RECTS) and Regional Electronic Cargo and Driver Tracking System (RECTDS) implemented in partnership with the Kenya Revenue Authority (KRA). Speaking during the virtual visit, attended by senior government officials and officials from TradeMark Africa (TMA), through which these projects were funded, the envoy underscored the special trade relationship between Kenya and the UK. Trade between the two nations was worth Ksh 79 billion in 2019 with the trade balance in favour of Kenya. Main Kenyan exports to the UK in the year were coffee, tea and spices at Ksh 18.6 billion (£121 million), vegetables at Ksh 12.1 billion (£79 million) and live plants mainly flowers at Ksh 8.3 billion (£54 million). The UK market accounted for 43% of total exports from Kenya as well as 9% of her cut flowers. British firms sold East Africa’s leading economy goods worth Ksh 125 billion (£815 million) mainly in machinery, pharmaceuticals, and automobiles. The UK is the largest European foreign investor in Kenya, with more than 100 British firms based in Kenya among them Vodafone, BAT, Diageo, Standard Chartered Bank, GlaxoSmithKline, ACTIS, Unilever and De La Rue. The UK Prime Minister’s Trade Envoy to Kenya, Theo Clarke MP, said: “I am pleased that during the day of my first virtual visit as the Prime Minister’s Trade...

Regional economies proved resilient but not yet out of the woods. Nairobi, Friday, 17 February 2021: TradeMark Africa (TMA), in partnership with the UN Economic Commission for Africa (UNECA) and African Economic Research Consortium (AERC), today launched a flagship report titled, "Waving or Drowning? The Impact of the COVID-19 Pandemic on East African Trade". The virtual session of policy makers, researchers, academics, and non-state actors discussed the link between COVID-19 pandemic and trade within the East African region. The report establishes that the EAC economies were resilient against the pandemic, with exports holding up well and the regional trade balance improving due to lower imports. Furthermore, the report notes that although intra-regional trade initially suffered serious disruptions, it quickly recovered, as Partner States ensured the movement of essential goods and adopted measures to minimize disruption on the main transport corridors while still observing the COVID-19 health protocols. The report highlights the recovery in key export sectors. For example, Burundi raw coffee exports increased from an average of Burundia Franc (BIF) 654 in the second quarter to Burundian Franc  (BIF) 4500 in the third quarter; while Uganda exports increased by approx. 21 percent between the second and the third quarter, while in Rwanda non-mineral exports increased by 46%. Speaking at the event  AERC Executive Director Professor Njuguna Ndungu, said; “The advent of the COVID-19 sent shockwaves into the emerging new sectors, such as tourism, manufacturing and financial intermediation thus compromising the recovery. Several indicators from diverse studies seem to indicate that...

The Intergovernmental Authority on Development (IGAD), the delegation of the European Union to Kenya and the United Nations Office for Project Services (UNOPS) on Monday handed over of medical supplies to the Kenyan Government. The supplies are part of the EU-IGAD COVID-19 Response project in the IGAD region and consists of assortment of Personal Protective Equipment (PPE), Laboratory test kits for COVID-19 (25,056 tests), two standard ambulance, one advanced ambulance and a mobile laboratory worth 1.9 million Euros. “The EU has responded to us immediately after the IGAD Summit on COVID-19. We are aspiring to be very close to the communities. We thank the government of Kenya, our partners, the European Union, UNOPS, Germany Embassy, World Food Program (WFP), GIZ, International organization for Migration (IOM), Trade Mark East Africa (TMA) and all other partners working with IGAD. IGAD is working very closely with each and every one of you in different areas’, Dr. Fatuma said, on behalf of the Executive Secretary for IGAD Dr. Workneh Gebeyehu. She expressed her satisfaction in witnessing that the supplies meant to fight COVID-19 have reached the people they were intended to reach. They will be put in use at cross-border areas. Two ambulances and the mobile laboratory are expected in the country at a later date and will be handed over to the respective priority cross border site in the country. Similar events are planned at all the IGAD member countries. Others present during the official ceremony at the Kenya Medical Training College (KMTC),...