The Minister of Trade Sosten Gwengwe has challenged the private sector to take advantage of the prevailing market opportunities created by African Continental Free Trade Agreement (AfCFTA) to expand their businesses in Africa and beyond. Gwengwe lamented that only15 percent of goods traded in Africa are produced within the continent, a scenario that dates back to the time of colonial masters. He urged African countries to utilize the agreement to change this status quo. “When all is done, the onus is on the private sector to take advantage of the prevailing market opportunities created by AfCFTA. This initiative should inform and encourage all the stakeholders, particularly, the private sector to take advantage of the huge regional open market opportunities available now,” he said. Gwengwe made the remarks in Lilongwe on Wednesday when he opened the validation Workshop for the National Implementation Strategy under AfCFTA. The objective of the workshop is to validate a draft a National Strategy for the implementation of AfCFTA, which consultants Nelson Nsiku and Pilirani Chuma have prepared. AfCFTA is premised on the realization that African countries have, for a long time, been trading with the outside world more than other economies on the continent. AfCFTA, therefore, is there to ensure that African countries start trading more among themselves, and create wealth for Africa to benefit African populations. Gwengwe said it is lamentable that 85 percent of goods traded in Africa come from outside the continent, with the remainder being produced with the continent. “I consider AfCFTA...

Invest Africa (www.InvestAfrica.com), a Pan-African business and investment platform, aims to build constructive dialogue between policy makers and business leaders from the UK and Africa during the Forum. James Duddridge MP, Minister for Africa, Emma Wade-Smith OBE, H.M. Trade Commissioner for Africa, and His Excellency Ken Ofori-Atta, Minister of Finance of the Republic of Ghana will feature in the programme. The Forum will feature Dr Mo Ibrahim in conversation with CNBC Africa, discussing why supporting good governance is essential to driving growth and improving livelihoods across the continent. Speaking earlier this month, the Sudanese-British businessman called attention to the impact of Covid-19 on governance in Africa, highlighting job creation, improved education and healthcare and investment in economic development as essential conditions to building healthy democracies. The Forum brings together speakers from Invest Africa’s membership, including Absa international; DHL; Casa Orascom; TTRO; Mischon de Reya; Tysers; Pernod Ricard and Afreximbank. An explosion of trade with Africa The Forum comes at an opportune time as trading under the AfCFTA commenced on the 1 January 2021, accelerating intra-African trade, and boosting Africa’s trading position in the global market. This, combined with the UK’s departure from the European Union, has seen a rise in investment interest in Africa. The UK trade envoy to Egypt was recently quoted in the UK press, saying that Egypt ‘can be the “gateway” to an explosion of trade with Africa.’ Earlier this year, Helen Grant, Conservative MP and trade envoy to Nigeria claimed a trade deal with the country could be significant...

Abuja, June 8, 2021 The African Export-Import Bank (Afreximbank) has pledged support for African Organisation for Standardisation (ARSO) in harmonising standards for automotive sector on the continent. This is against the backdrop of plans by ARSO to inaugurate the completed harmonised African Automotive Standards by June in Nigeria, Rwanda, Ghana, Malawi, South Africa and Zimbabwe. Afreximbank in a statement on Tuesday in Cairo, Egypt said that the harmonised standards would facilitate an accelerated development of the sector across the continent. It added that the harmonised standards were to be adopted by individual African countries, facilitating cross-border trade, under the African Continental Free Trade Agreement (AfCFTA). The bank said that there were 1,432 international automotive standards worldwide, largely developed by the International Organisation for Standardisation and the American Society for Testing and Materials. It said that to initiate the process of developing African Automotive standards, ARSO prioritised “Whole Vehicle Standards” encompassing motor vehicle components, accessories and replacement parts. “It is anticipated that some 250 standards will need to be harmonised based on the basic components, accessories and replacement parts which are necessary to keep a vehicle safe and operational. “ARSO had initially targeted 18 basic standards based on the demands of the industry to facilitate development of the automotive sector on the continent. “Since inception of the project in 2019, ARSO has, with the support of Afreximbank, been successful in harmonising 42 international standards, well above the targeted 18.” The bank said that an initial grant provided by it was critical...

As policymakers in the least developed countries address COVID-19’s social and economic consequences, they must ensure recovery efforts are gender-responsive. Although the number of confirmed COVID-19 cases per capita has been lower in the least developed countries (LDCs) than expected, the socio-economic fallout for their populations has been dire, pushing an estimated 32 million more people into extreme poverty in 2020. Women in these countries have borne the brunt of the crisis, as they work mainly in the hardest-hit sectors, such as tourism, horticulture and textiles. A new study by UNCTAD and the Enhanced Integrated Framework (EIF) warns that the gender gap in income and overall well-being in LDCs will continue to worsen unless COVID-19 recovery efforts adopt a gender perspective. “As policymakers urgently try to restart their economies, they should ensure that both women and men receive the necessary means and support to recover from this crisis,” UNCTAD Acting Secretary-General Isabelle Durant said as she presented the study on 8 March. “For an inclusive and better recovery, policies must be gender-sensitive.” Gender-responsive trade policies needed The study, Trade and Gender Linkages: An analysis of Least Developed Countries, provides recommendations to help LDC governments adopt trade-related polices that are more gender responsive. EIF head Ratnakar Adhikari said: “We had a long way to go to fix the world’s gender gap, and the pandemic has made the journey even more arduous, especially in the world’s poorest countries, where the challenges facing women are even more dire.” “But if we’re committed to...

In Summary It is expected that up to 90 per cent of goods and services traded within the continent will benefit from preferential trade terms. This includes elimination of tariff barriers. The Africa Continental Free Trade Area (AfCFTA), billed as a catalyst for intra-African trade, officially commenced operations on January 1, 2021, six months later than initially anticipated. Through the AfCFTA, tariff and non-tariff barriers that have historically posed as an impediment to intra-African trade will be conclusively dealt with. Specifically, it is expected that up to 90 per cent of goods and services traded within the continent will benefit from preferential trade terms, inclusive of the elimination of tariff barriers. To date, all African states, save for Eritrea, have signed up to the AfCFTA, while all but twenty African states have ratified the AfCFTA. Within the East African region, only Tanzania, Burundi and South Sudan are yet to ratify the agreement. In a bid to ensure that the East African Community (EAC) is not left behind in taking advantage of the agreement, Tanzania, Burundi and South Sudan have been urged to complete the ratification process of the AfCFTA before 01 June 2021. It is anticipated that the successful implementation of the AfCFTA will have tangible benefits on the African continent, inclusive of accelerated industrial development, expanded economic diversification and enhanced job creation. Indeed, where AfCFTA is successfully implemented, intra-African trade stands to increase by 33 per cent in the medium term, from the current 16 per cent. This will...

Thrust five years into the future by Covid-19, as management firm McKinsey puts it, most of what we expected to see in 2030 will soon be upon us. A disruption in the workplace in 2020 changed the fortunes of millions, either throwing them out of their jobs or elevating their profiles. Most of those who had an upturn in fortunes were in technology and automation. The World Economic Forum (WEF) late last year released a list of jobs that, it said, will be marketable in the future - which we might already be in - and those that will be obsolete because of automation. It is not surprising from the data that technology will be taking over a significant number of jobs. It was certain the world was always inching closer to this by the day. The world is welcoming artificial intelligence (AI) and robotics on an unprecedented scale and the Internet of Things (IoT) is now common talk. The need to cut overheads and reduce office population amid the pandemic prompted industry leaders to find ways of using automated systems to deliver, with many people losing their jobs. “The past two years have seen a clear acceleration in the adoption of new technologies among the companies surveyed,” said WEF. “Cloud computing, big data and e-commerce remain high priorities, following a trend established in previous years.” Job loss Sectors such as the arts, entertainment and recreation, hospitality, retail, mining, real estate, rental and leasing saw many employees lose their jobs....

In Summary Freight charges from Mombasa to Kampala increased from $2,200 (Sh238,150) to $2,500 (Sh 270,625 ) per container. This is pegged mainly on the delays along the corridor and especially at the ports of loading and the exit borders. Transport cost along the Northern Corridor has jumped 48 per cent in the wake of the Covid-19 pandemic, mainly on measures to contain the virus by regional states. A report by the Shippers Council of Eastern Africa (SCEA) indicates road freight rates increased in the key trading route which runs from the Port of Mombasa, across the country, into Uganda, Rwanda, DR Congo, Burindi and South Sudan. Freight charges from Mombasa to Kampala increased from $2,200 (Sh238,150) in the pre-pandemic period to $2,500 (Sh 270,625 ) per container (both 20 and 40 foot), which extended into the first half of this year. The cost of moving containerised goods to Kigali from Mombasa also increased from $3,400 (Sh 368,050) to $3800 (Sh 411,350), pegged mainly on the delays along the corridor and especially at the ports of loading and the exit borders. Uganda is the biggest destination for transit cargo along the corridor, accounting for about 83.2 per cent of total transit volumes. That of transporting a container from Mombasa to South Sudan increased to $4,500 (Sh487,125 ) from $3,600 (Sh 389,700) while moving a container to DRC went up to $6,000( Sh649,500 ) between March and June this year, from $5,000 (Sh 541,250). In terms of border crossing times, it...

In May 2021, the bridge across the Zambezi River linking Botswana and Zambia was opened by the presidents of the two countries. The construction of the bridge, which replaces the longstanding, slow ferry service across the river, means trucks on regional routes can now cross the river in a few hours, or less, rather than the previous three days to a week. It also means they can avoid using the biggest crossing between the ports and factories of South Africa and the rest of Southern Africa – Beit Bridge, which is also one of the most congested borders in Africa. A one-stop border post at the bridge will allow easier thoroughfare. This project embodies the benefits that good infrastructure and joined-up bureaucracy offer regional trade, both of them generally in short supply. More than 250 trucks a day should be able to cross the Zambezi instead of the handful that were able to cross before, bringing down costs, increasing the security of cargo and providing an alternative route for trade to the sea for inland markets. It is not without potential pitfalls. One is the congestion that is likely to develop at Martin’s Drift border post, currently an alternative to the main border post at Gaborone into Botswana, as demand increases. And sections of the roads along this main trade route, an integral part of the North South Corridor, are in urgent need of repair, for example several hundred kilometres of a two-lane highway through Botswana to Kazungula, with eroded...

Mozambique has launched reconstruction works of the Sena railway line which connects Malawi to the port of Beira. The development comes just a day after the two countries signed a memorandum of understanding (MoU) that will revive this important, but neglected, railway line. This follows discussions, last October, between President Lazarus Chakwera and his Mozambican counterpart Felipe Nyusi. During the talks in Maputo, the two leaders decided to reopen the railway line which, some years ago, proved vital for intra-regional trade. Speaking at the launch of the reconstruction work in Mutarara District, Nyusi described the line as an important step in making regional integration a reality. He said as a member of Sadc, he is as enthusiastic about the project as Chakwera is. Mozambique has already done a good part of the 44-kilometre stretch that starts from Mutarare to Marka (Nsanje) from where Malawi is supposed to pick up. In her remarks during the launch, Malawi’s acting consular general for Tete Province Jane Asani said the line is vital to Malawi which has millions of tonnes of its import passing through Mozambique every year. “This speaks of how a good neighbour Mozambique is to Malawi. This is not just about our two countries but a fulfilment of Sadc regional integration which you (Nyusi) are currently chairing and agenda 2063,” she said. Asani said while Malawi is yet to start the rehabilitation works, there is huge political interest to have the project done on time. She also said Covid-19, among other...

The Malawi Confederation of Chambers of Commerce and Industry (MCCCI), an umbrella body for private sector players in the country, feels the next decade is scaring as its members face stiff competition from counterparts within Africa. The chamber says most products it lobbied to be protected under the African Continental Free Trade Area (AfCFTA) have been included on the sensitive list to be covered within the first 13 years of implementing the pact. The development has sent private sector players shivering over possible intense competition. According to articles of the AfCFTA, least developed countries, Malawi inclusive, will be given three opportunities including a list of goods that are categorised as non-sensitive products that will be traded for free in the next 10 years. The second opportunity entails that sensitive products will be traded for free in the next 13 years from date of ratification and lastly an exclusion list containing local products that will be protected and will attract duty if imported. MCCCI Director of Business Environment and Policy Advocacy Madalitso Kazembe said the requirement is that non-sensitive products must be 90 percent of tariff lines, sensitive products must be more than 7 percent of tariff lines while exclusion list must be not more than 3 percent of the tariff lines. “We gave our advice accordingly on the products that we felt needed protection but, at the end of the day, based on the structure of the agreement, it is leaning more towards opening up as such most of the...