President Paul Kagame has requested African leaders to move with a sense of urgency in the implementation of the African Continental Free Trade Area (AfCFTA) to boost economic value on the continent. He was speaking during a televised conversation dubbed ‘Ask the President’ on the national broadcaster, on Tuesday, July 4, where he got to answer some of the national key concerns across different sectors. With the operationalization to establish a unified market of 1.3 billion people and a GDP of around $3.4 trillion in 2021, the AfCFTA is poised to become the world’s largest free trade area with 55 member states. However, some of the important protocols of rules of origin have not yet taken shape while about 47 countries have ratified their instruments of AfCFTA agreement. Kagame said that having AfCFTA that works for everybody is still hindered by some legacy problems and misinterpretation of what the agreement means whereby countries stick to protecting the sovereignty and miss out on opportunities presented. “Your sovereignty is just a name if it does not entail freedom of people to work within and across the countries,” he emphasized. Political will is always going to be important because it is what will allow freedom of movement of people and goods, he added. “If we can have people cross borders with what they produce and the others do the same, they benefit more with having such a big market. AfCFTA is a huge asset and not a liability.” In his view, having the...

Initiated by UNECA, the Trans-African Highway project aims to integrate the continent through an expansive road system. Despite political obstacles, renewed momentum from the African Continental Free Trade Agreement (AfCFTA) is rejuvenating this grand vision. With gradual removal of barriers to internal trade, Africa stands on the brink of a historic opportunity to enhance trade, tourism, and growth. The Trans-African Highway network, a bold blueprint conceived to foster economic integration on the African continent, has been a captivating vision since its inception in 1971. Initiated by the United Nations Economic Commission for Africa (UNECA), the project aims to integrate the continent through an expansive road network. Despite political obstacles and inconsistent collaboration between countries, renewed momentum from the African Continental Free Trade Agreement (AfCFTA) is rejuvenating this grand vision. In recent years, the UNECA, the African Union (AU), and the African Development Bank (AfDB) have worked jointly to promote this ambition that could set Africa on an unprecedented economic trajectory. Understanding the Trans-African Highway Network The Trans-African Highway Network envisioned as a web of nine highways lacing the continent, would be nothing short of an economic revolution if and when built. These arteries, including the Cairo-Cape Town (TAH 4, 10,228 km), Dakar–Lagos (TAH 7, 4,560 km), and Lagos-Mombasa (TAH 8, 6,259 km), would transform transportation, reduce road transport costs, and ignite a surge of commercial and tourism activity. AfCFTA and the Promise of Enhanced Trade AfCFTA heralds a pivotal shift in intra-African trade, leveling the playing field for producers and...

Ugandan grain dealers under their umbrella body, the Nation Millers Association have suspended  food export to South Sudan over the trade crisis at the Nimule border, where more than 70 maize-laden trucks have been stranded for nearly two months after the Ugandan northern neighbor raised quality concerns. The South Sudan National Bureau of Standards (SSNBS) impounded a number of Ugandan trucks loaded with maize grains, maize flour, and wheat on allegations of failing to pass the test for contamination with aflatoxin. A few weeks ago,South Sudan officials at the Nimule border point confiscated  tons of food items from Uganda that were deemed unsuitable for human consumption with claims that the samples had tested positive for aflatoxin. “In those trucks that we have mentioned that have Maize, Sorghum, or whatever grains that have been tested and failed have to be destroyed,” she stressed, adding that “We detained the trucks for a very good reason because of the level of aflatoxin, especially B1 which is very dangerous and it causes cancer if it accumulates in your body”. However, addressing journalists in Kampala, the Ugandan traders expressed concern over the decision by South Sudan to destroy maize flour estimated at about shs10 billion. They argue that the tests done by South Sudan were not transparent. “The number of samples (27) claimed to have been taken isn’t representative enough to generalize results on the entire consignments of over 74 trucks under detention.UNBS staff were denied access to take samples by South Sudan authorities, therefore...

In Summary The exercise attracted condemnation with critics describing the order by Lands, Housing and Urban Development chief executive Peter Odima as 'painful'. But the governor said restructuring of mainly Busia and Malaba towns aims at ensuring business is orderly while guaranteeing traders’ safety. Governor Paul Otuoma has denied claims that the ongoing reorganisation of towns is meant to undermine traders. The governor said restructuring of mainly Busia and Malaba towns aims at ensuring the business is conducted in an orderly manner while guaranteeing traders’ safety. Busia and Malaba are the county’s main towns raking in approximately Sh5 billion, each, yearly, for the national government in cross-border trade between Kenya and her landlocked neighbours. There are, however, thousands of informal traders in the two towns supporting the county government in taxes. The county in January embarked on an ambitious plan to reorganise Busia and Malaba, a development that led to the demolition of hundreds of structures particularly those located near the main roads. The exercise attracted widespread condemnation with critics describing the order by Lands, Housing and Urban Development chief executive Peter Odima as a ‘painful and costly’ decision. But Otuoma, speaking on June 20, while opening Soko Posta market in Busia town said although the demolition came with costs on traders, the bringing down of buildings will help improve working environments for the affected traders. “It is our duty to make sure that our markets work, and our markets cannot work when we undermine,” the county chief said. “We...

By Elias Hakizimana. Women investors in cross-border trade are encouraged to embrace cooperatives in order to make it easier to move from informal to formal trade, with quality and safety assurance of products that fit for local and regional markets. The message was delivered by Richard Niwenshuti, Permanent Secretary in the Ministry of Trade on Friday, June 23, 2023 during the exhibition and graduation ceremony of Women Cross-Border Traders (WCBT) who were supported by Profemmes-Twese Hamwe (PFTH) to improve their businesses. The event was held in the premises of PFTH, gathering together over 70 women who represents 143 cooperatives of over 7,000 WCBTs from the nine (9) borders countrywide. The impacts of their activities reach to over 18,000 households. Richard Niwenshuti, Permanent Secretary in the Ministry of Trade said that the achievements by these women in advancing trade means that Rwandans now understands the policy of working under cooperatives. Richard Niwenshuti, Permanent Secretary in the Ministry of Trade addressing WCBTs. “The activities they showcased here testify that they have understood the rationale of working in cooperatives, secondly, improving their businesses from informal to formal trade by investing in locally-made products that qualify local and regional markets is also a success, thanks to the efforts by partner institutions; Profemmes Twese Hamwe and Trade Mark East Africa (TMEA) who are supporting the Made in Rwanda Policy, working in cooperatives and cross-border trade.” Niwenshuti said. He added that the government will continue to support women cross-border traders to have access to the regional...

Trade is an essential driver of economic transformation, growth, and prosperity. At a time of global uncertainty and policy fluidity, this comprehensive volume demystifies African trade and trade policy to provide a deeper understanding of how trade impacts the lives of all Africans and the continent’s development aspirations. Featuring a wealth of data-driven evaluations of trade negotiations and policy choices, How Africa Trades is an invaluable open access resource for making sense of the continent’s major trade challenges, including commodity dependence, competitiveness, and how African countries engage with often unconducive international trade rules that distort global markets. In-depth analysis focuses on intra-African trade initiatives, including the African Continental Free Trade Area (AfCFTA), trade between African countries and their major trading partners, and how the short-term shocks of Covid-19 restrictions brought about longer-term changes in informal and formal trade patterns, and sped-up shifts in digital trade. Edited by Professor David Luke, and featuring vital contributions on trade economics, international law and sustainable development, How Africa Trades draws on the research expertise of LSE’s Firoz Lalji Institute for Africa. This volume provides information, expertise and tools for policymakers, stakeholders and scholars with an interest in understanding the dynamics of trade and in making effective policy decisions that centre development and inclusivity for Africa and its people. Early praise for How Africa Trades "This is an authoritative book on what needs to be done in Africa and its major trading partners to make the undersized and underperforming Africa’s trade become an engine of development, poverty reduction, industrialization and...

Digitization has shaped the way millions across Africa shop, bank, and communicate. It has also changed the prospects of the continent’s trade landscape and has the potential to unlock new pathways for economic growth. The next step in Africa’s digital future will be regional, fulfilling the vision outlined in the African Union’s Digital Transformation Strategy for Africa through strong frameworks and policies offered by the African Continental Free Trade Area (AfCFTA) that can help the continent get there. How the digital economy and regional integration through the AfCFTA can transform African trade, lift economic growth, and support livelihoods across the continent dominated discussion at the latest Kenya International Investment Conference (KIICO.) At the invitation of the Cabinet Secretary for Trade of Kenya Moses Kuria and the Kenya Investment Authority (KenInvest)’s Managing Director June Chepkemei, the U.S. Chamber’s U.S.-Africa Business Center (USAfBC) was the strategic partner of this year’s conference, "Unlocking Africa's Gateway." The conference took place May 29 – 31 in Nairobi, Kenya, on the periphery of negotiations held by the AfCFTA Council of Ministers, and marked the U.S. Chamber’s second high-level delegation to Kenya this year, following this March’s AmCham Business Summit, which convened 1,200 public and private sector leaders to increase U.S.-East Africa commercial ties. USAfBC Vice President Kendra Gaither delivers remarks at the welcome dinner for the Kenya International Investment Conference. The USAfBC’s role highlighted its longstanding collaboration with Kenya’s public and private sectors and continental thought leaders, all helping to shape the conference’s AfCFTA Digital Policy Dialogue....

The East African Community is prioritising infrastructure development in the next fiscal year, signalling a break from a three-year lull blamed on the Covid-19 pandemic. The EAC on Tuesday tabled before the East African Legislative Assembly (Eala) budget estimates totalling $103,842,880 for 2023/2024, out of which 43 percent ($44 million), funded by development partners, will be used on infrastructure projects to spur intra-EAC trade, which increased by 13.4 percent to $74.03 billion in 2022 from $65.268 billion in 2021. The bloc has this year secured funding for road projects connecting Kenya and Tanzania though Lunga Lunga; Tanzania to Burundi through Kasulu; and Kenya to Uganda through the Busia border. It has also prioritised railway, air and water/port transport. “The secretariat will continue implementing successor multinational road projects linking partner states and the Phase II OSBP (One Stop Border Post) programme including the design, construction and operationalisation of prioritised OSBPs within the region to enhance regional integration and trade facilitation,” said council chair, Burundi’s minister for EAC affairs Ezechiel Nibigira. The Kenya-Tanzania road sections are in different stages of completion after the two governments secured €375 million ($410 million) from the African Development Bank (AfDB) and the European Union (EU). But some remaining sections still need funding to connect the entire stretch of the coastal corridor. “Construction of the multinational Tanzania/Burundi road: Kabingo-Kasulu-Manyovu (260 kilometres) in Tanzania and Gitaza-Rumonge (45km) in Burundi is ongoing following Burundi and Tanzania securing financing amounting to $322.35 million in the form of grants and loans from...

In Summary New market offers a safe business environment for cross-border traders in Busia The outbreak of the Covid-19 pandemic in 2020 took a huge toll on women traders A new market has been opened in Busia to facilitate business between traders in Kenya and Uganda. The Sh40 million market comes as a relief to women traders who were hit hard by the Covid-19 pandemic. Busia Governor Paul Otuoma on Tuesday said the investment will go a long way in ensuring a safe business environment for cross-border traders. “What we want are innovative solutions to economic challenges facing our people,” he said. The market is an initiative of the county government of Busia, the Ministry of East African Community Affairs, TradeMark Africa and development partners. “We are grateful for the support because all this is geared towards providing safe spaces for our people especially in trade,” the county chief said. The construction of the market started in July 2021 as part of the Safe Trade Emergency Facility. TradeMark Africa implemented it together with the Busia government with funding from Canada, Ireland, the European Union and Denmark. The outbreak of the Covid-19 pandemic in 2020 took a huge toll on local and international trade. Informal cross-border traders, particularly women, were hard hit. The effects of the pandemic led to a drastic reduction in business operations on the border. Traders recorded up to 90 per cent income losses that resulted from stringent government-enforced restrictions of social distancing to combat the spread of...

Startups, micro, small, and medium enterprises (MSMEs) will benefit from an app aimed at facilitating access to markets and networks for women traders. The platform, called Isoko, will operate in the Mt Kenya region, helping women trade with ease across counties. During a sensitisation workshop in Nyeri for traders in Nyeri, Laikipia, Kirinyaga, and Muranga counties, Communication Specialist Rachael Wangechi said the platform is targeting women traders, light processors and manufacturers, and producer women groups. "Isoko is an integrated platform that enables users to access everything they need in one place and learn more," she said. Networking Wangechi further said the application offers various features to assist entrepreneurs, including the ability to upload their products and services, place orders, manage bookkeeping, calculate taxes, and exchange currencies. "You can utilise your phone to access markets, information, service providers, and network with other traders in Kenya," she said. She added that through the news segment, one can explore opportunities to unlock the potential of their business. "Our trade regulations module ensures that you remain compliant with the latest regulations, while our value-added services grant you access to essential services such as banking and logistics providers," she said. The mobile app was launched in March and has since expanded its services to various countries, including Kenya, Uganda, Tanzania, with plans to further extend its reach to Rwanda and Burundi. Online business Martin Ndirangu, CEO of the Nyeri chapter of the Kenya National Chamber of Commerce and Industry (KNCCI), expressed his appreciation for the...