IOTA Ecosystem DLT Foundation in the UAE has taken a big step toward digitizing global trade and making trade finance solutions more accessible. The foundation intends to invest over $10 million in early-stage startups, ventures, pilots, and infrastructure rollouts. It aims to accelerate TradeTech, Trade Finance, and real-world asset tokenization innovation. https://twitter.com/iota/status/1763189658597367885?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1763189658597367885%7Ctwgr%5E530be5b627ceb84002447886a9ba6bbc6adbc8f6%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fblockchainreporter.net%2Fiota-foundation-commits-10-million-to-boost-global-trade-digitization%2F IOTA Accelerates Trade Innovation with Startup Investments This announcement is a big step for blockchain and DLT giant IOTA. IOTA invests heavily in digital trade infrastructure to solve global trade ecosystem issues and make the future more connected and efficient. Tradetech ecosystem strengthening is the goal of this investment. Tradetech streamlines trade. It covers logistics, supply chain, trade finance, and compliance. IOTA wants to help early-stage startups create trade technology solutions that improve global trade operations by providing tools and guidance. Besides helping startups, IOTA will invest in Tradetech accelerator programs to develop talent. These programs mentor, fund, and network entrepreneurs to launch their businesses. IOTA wants to attract top Tradetech talent and foster innovation and collaboration. IOTA invested in Tradetech because they believe digital technologies can change global trade. Blockchain, AI, and the IoT promise unprecedented opportunities to digitize trade processes, reduce waste, and find new value sources across the trade value chain. IOTA wants to use these technologies to simplify, open, and include trade for businesses, consumers, and economies worldwide. IOTA Foundation’s Investment Paves the Way for Global Trade Digitization Following a WTO MC13 Trade Logistics Information Pipeline agreement, investment news emerged. Public global trade infrastructure...

On Thursday, MEPs voted to approve the EU’s Economic Partnership Agreement with Kenya, East Africa's main economic hub. MEPs voted by 366 in favour, 86 against and 56 abstentions to give their consent to the EU-Kenya Economic Partnership Agreement (EPA) that aims to strengthen trade and economic ties with the African country. It is the first agreement with a developing country in which the EU's new approach to trade and sustainable development is reflected. The agreement includes binding and enforceable provisions on international standards and agreements on labour, gender equality, climate and the environment, and prevents both parties from lowering labour and environmental standards. The trade and sustainable development clauses, which are new compared to the EU-East African Community EPA, will be binding: possible issues will be addressed through a dedicated dispute resolution mechanism. The EU is Kenya’s second largest trading partner, and its most important export market. Total trade between the EU and Kenya reached €3.3 billion in 2022, according to Commission data. The EU’s imports from Kenya amount to €1.2 billion and are mainly vegetables, fruits, and flowers. EU’s exports amount to €2.02 billion and are mainly in mineral and chemical products and in machinery. Quote Alessandra Mussolini (EPP, IT), rapporteur for the file said: “This agreement it's a catalyst for economic growth, job creation and sustainable development. It will provide duty-free, quota-free EU market access to all exports from Kenya as soon as it enters into force, as well as partial and gradual opening of the Kenyan...

IOTA’s mission to launch the Trade Logistics Information Pipeline (TLIP) to get the private and public sectors to come together to facilitate paperless international trade has been realised as it gains popularity in the payment industry. In 2022, it collaborated with TradeMark Africa to launch a digital portal to highlight its benefits while providing an opportunity to follow the progress of the project. In posts shared by TradeMark Africa on the social media network X, TLIP was identified to be the missing piece of the puzzle meant to address the challenges border agents face. According to reports, border agents have been dealing with document delays over the years, leading to consignment hold-ups and financial loss. On top of that, there has been limited data visibility as agencies use various systems to gather trade data from different supply chain actors. The system of customs agencies is also susceptible to fraud, leading to misdeclaration and misclassification. According to Trademark Africa, TLIP could address almost all of these challenges, and make border trade efficient. Role of TLIP in MISSION Recently, TLIP was selected as one of the 30 organizations to participate in the MISSION (MaritIme juSt in time optimiSatION). This program is reportedly part of the €95.5 billion ($102 billion) Horizon Europe program, and it got €7.5 million ($8 million) from the European Union to develop a new digital communication and logistics platform. The involvement of TLIP is reported to solve the issue of fragmentation in the maritime transport ecosystem. Maritime transport accounts...

The EAC Secretariat’s statistics show that the region's total trade value with the rest of the world (ROW) in the 3rd quarter of 2023 (July to September 2023) was US$ 21.0 billion, which was a one percent decline compared to US$ 21.2 billion in the similar quarter of 2022 Uganda’s Foreign Affairs Permanent Secretary Vincent Bagiire has underscored the significance of intra-EAC trade and collaboration among partner states in aggregating exports to the African Continental Free Trade Area (AfCFTA) and the European Union (EU). Bagiire said the “shared resources such as Lake Victoria, present abundant opportunities for export collaboration and aggregation.” The Permanent Secretary spoke on Thursday during high-level talks between Ugandan officials and the East African Business Council (EABC) in Arusha, Tanzania aimed at fortifying regional trade and economic cooperation. The discussions encompassed various areas, including the analysis of non-tariff barriers, private sector proposals to Joint Permanent Commission Meetings, statistics, the rollout of the AfCFTA strategy, and the role of peace in facilitating trade. Bagiire was accompanied by the Director of Regional Economic Cooperation, Amb. Richard Kabonero and Amb. Anne Katusiime Kageye, Head of the Uganda Consulate in Arusha at EABC headquarters in Arusha. The EAC Secretariat’s statistics show that the region’s total trade value with the rest of the world (ROW) in the 3rd quarter of 2023 (July to September 2023) was US$ 21.0 billion, which was a one percent decline compared to US$ 21.2 billion in the similar quarter of 2022 Four of the EAC Partner States...

The Authority of the Heads of State of the African Union (AU) has reappointed Wamkele Mene as Secretary-General of the Secretariat of the African Continental Free Trade Area (AfCFTA) for a second four-year term, the continental free trade body said Monday. The decision was endorsed during the 37th Ordinary Session of the Assembly of Heads of States and Government of the AU ongoing in Addis Ababa, Ethiopia. “At the last session of AU Summit, the Heads of State and Government of the African Union unanimously expressed their confidence in H.E. Mene Wamkele reappointing him for another four years as Secretary-General of the AfCFTA Secretariat,” according to the post on the secretariat’s official X (Twitter) handle AfCFTA Secretariat Official @AfCFTA. The South African was first elected to the position by the 33rd Ordinary Session of the Assembly of Heads of States & Government of the African Union in February 2020 with the responsibility to coordinate and facilitate the implementation of the agreement among African states. His first term at the position saw 47 countries ratifying and depositing their instruments of ratification, and 46 schedules of tariff concessions representing 85 percent of AU member states received. The AfCFTA Dispute Settlement Mechanism has also become operational, and the AfCFTA Secretariat teamed up with the Afreximbank to launch the Pan-African Payments and Settlements System (PAPSS) to facilitate easy transactions on the continent. In addition, Rules of Origin have been negotiated with 88.3 percent high coverage, and national implementation of AfCFTA has commenced with 25...

Every day, millions of African small traders embark on a journey across land borders, fraught with challenges, determined to put food on their tables, send their children to school, and secure a decent livelihood. These unsung heroes are the lifeline of Africa’s informal trade sector, accounting for 30% to 72% of trade in many African economies. Yet, their remarkable resilience and contributions often go unnoticed due to the cash-based nature of their transactions. In 2024, Africa is poised for a historic transformation as we accelerate the implementation of the African Continental Free Trade Area (AfCFTA). This landmark agreement holds the promise of uniting diverse nations, spurring economic growth, and reducing dependence on external markets. However, amid this optimism, the plight of cross-border traders, many of whom are women and youth, have come into sharp focus. To truly understand the daily hardships faced by these traders, the AfCFTA, Smart Africa, and the Better Than Cash Alliance‘s Secretariats conducted visits to pivotal border locations. These interactions shed light on the challenges they confront and the untapped potential that lies within their grasp. Today, intra-African trade remains inaccurately measured and vulnerable to substantial financial losses due to its reliance on cash transactions. One critical hindrance to financial inclusion and digital trade is the lack of interoperability of digital payment systems, particularly for micro and small traders who dominate Africa’s economy, especially at land borders. Additionally, the recurring use of third currencies in cross-border trade payments places a significant burden on national foreign exchange...

Grain production in East Africa has received a boost after the United States (US) Government offered a three-year grant worth US$2 million (Ksh324 million) to the East African Grain Council (EAGC), aiming to increase production in the region. Through the United States Agency for International Development (USAID) Economic Recovery and Reform Activity (ERRA) program delivered by the Trade Mark Africa (TMA) with funding from Feed the Future, the initiative aims at strengthening the competitiveness of export-oriented staple food value chains in East Africa. Through the five-year ERRA US$75 million (Ksh12, 150 million) program, USAID and TMA are driving transformative trade and investment reforms in the East and Horn of Africa to create jobs in the staple crops and textiles sectors, especially for women and youth. A core part of this effort is to increase the ability of grain producers to export both regionally and to the rest of the world. The grains sector has immense potential for food production and trade but has been hindered by low production rates, poor post-harvest management, and the devastating effects of climate change. Speaking during the signing ceremony held in Nairobi, TMA’s CEO, Mr David Beer, revealed that the strategic collaboration with EAGC and USAID will boost grain exports within the region. “This includes spearheading innovative strategies such as Grain Business Hubs. They will be operated by farmers who will leverage technology to improve grain quality and drive up trade,” Mr Beer said. The challenges around grain production contribute to low competitiveness in the...

Explore how the AfCFTA protocol, guided by Dr. Maxime Houinato, is breaking barriers and empowering women traders in East and Southern Africa through gender-responsive economic policies. In the bustling markets of East and Southern Africa, a revolution is quietly unfolding, spearheaded by the African Continental Free Trade Area (AfCFTA) and championed by Dr. Maxime Houinato of UN Women. Amid the vibrant chaos of commerce, an innovative protocol emerges, designed to weave gender equality into the fabric of trade, promising an era of inclusivity and empowerment for women traders. Challenging the Status Quo For too long, women in trade have navigated a labyrinth of challenges, from the menace of violence in informal trade sectors to the persistent plague of income inequality. The AfCFTA, under the guidance of Dr. Houinato, is poised to dismantle these barriers. Inspired by the Beijing Platform for Action and the Maputo Protocol, the newly adopted protocol is not merely a policy document but a beacon of hope. It aims at ensuring fair wages, providing social safety nets, and removing barriers that hinder women's full participation in trade. Integrating Gender Equality into Economic Policies The importance of integrating principles of gender equality into the economic policies of the AfCFTA cannot be overstated. This approach not only supports the rights of women but also promotes sustainable development across the continent. By focusing on measures that support caregiving duties and bridge the income gap, the protocol aims for an equitable distribution of the benefits of economic growth. The emphasis on gender-responsive...

The direct costs of non-tariff barriers (NTBs) in the East African Community (EAC) is estimated at $16,703,970, with the total trade impact being $94,918,000, a new report shows. The EAC Regional Meeting Committee report (2023) shows that trade has decreased by an average of 58 percent. Tanzania and Uganda have been cited as having the highest number of unresolved NTBs, with Tanzania having four unresolved issues, Uganda, three, and Kenya and South Sudan having one each as at February 2024. NTBs, which are obstacles to international trade that are not import or export duties, have taken the form of import quotas, subsidies, customs delays, and technical barriers impeding trade, have been a hindrance to intra-EAC trade. The EAC Sectoral Council of Trade, Industry, Finance and Investment meeting in Arusha on February 9 chaired by William Anyuon Kuol, Minister for Trade and Industry of South Sudan and chairperson of the Council, resolved to have the NTBs resolved by June, pushing the partner states to hold bilateral meetings to resolve them. Addressing the Council on the matter, EAC Secretary-General Peter Mathuki said that while in the financial year 2021/2022, intra-trade reached $8.7 billion, followed by an increase to $9.4 billion in 2022/23, NTBs continued to pose threat to trade in the region. “This demonstrated a robust trading environment among EAC Partner States, with a notable growth of approximately 7.98 percent,” Dr Mathuki said. “However, there is a need for ministers to address issues relating to denial of preferential market access for EAC-originating...

TANZANIA: THE Tanzania Women Chamber of Commerce (TWCC) in collaboration with Trade Mark Africa has launched youth wing to empower them skills to achieve business goals. The event was graced by Ilala District Commissioner, Edward Mpologo who represented the Deputy Minister of State, in the Prime Minister’s Office (Labour, Youth, Employment and People with Disability), Patrobas Katambi. Mr Mpogolo commended TWCC for remembering youth wing, an initiative which targets to help women to build their capacity in raising families and boost the economics of their families and nation at large. “This collaboration aims to empower young individuals by providing them with the necessary skills, resources and support so that they can thrive in the world of business,” he said. About 300 women and 40 youth attended the event that was accompanied by a seminar and some presentations from entrepreneurship trainers, all of which aimed to empower them with skills and commitment for achieving commercial and business goals. Youth are the engine of the development of all countries world-wide. The population of our country which is 61 million, among whom 34 million are Youth. In 34 million youth, 11 million are female youth while 10 million are male. He said by involving 34 million young people in empowering them with knowledge and entrepreneurship skills the initiative helps the important group to boost its economy. The meeting provided a platform for women entrepreneurs to connect, share experiences, and explore opportunities for collaboration. Attendees also had the chance to engage with likeminded individuals, gain...