African countries are facing a dual crisis – the impact of COVID-19 on their populations and the global economic slow-down which threatens to undo the hard-fought gains of the last 25 years Nestled in the undulating hills of central Ghana is a Fair Trade cooperative cocoa farm that produces chocolate for export to the world, including to supermarkets across the UK. When I visited the farm last summer, I saw for myself the many jobs the farm provides – many taken by women – and the families that these support. Consumers of the chocolate that originates from Ghana include, no doubt, thousands of workers in my constituency of Stafford, like those in the General Electric factory in Stafford. They manufacture transformers for the energy grid across the globe, including in developing countries like Ghana, where electricity supply can often be insecure or not available. That’s how trade works. Both sides win. For the UK and Africa, our two-way trade has enormous value – a total of £35.1bn of goods and services in 2018 according to ONS – creating and sustaining countless jobs across our country and on the continent. The Prime Minister has been quick to seize the opportunity. At the inaugural Africa Investment Summit in London earlier this year, he promised to renew our economic partnership with Africa, containing some of the fastest-growing economies in the world. Today, however, African countries are facing a dual crisis – the impact of COVID-19 on their populations and the global economic slow-down...

CEGA is committed to sharing a diversity of voices and perspectives. This post, written by Anthony Mveyange (EASST Fellow, TradeMark Africa) and Andrew Mold (United Nations Economic Commission for Africa), was originally published on the Brookings Institution website. Recent global trends like the COVID-19 pandemic, the climate change crisis, and heightened trade disputes among the world’s leading trade partners have highlighted the vulnerability of global value chains (GVCs). At present, the scale of the disruption in East Africa is quite dire — imports from China (a common source of intermediate goods) through the Mombasa Port declined by a drastic 20 percent shortly after the onset of the pandemic, between January and February 2020. In light of these trends, governments and industries in East Africa should consider rapidly shifting from focusing on global value chains (GVCs) to regional ones (RVCs). Given the region’s past difficulties with entering global value chains and consolidating the gains from regional integration processes, heightened emphasis on regional value chains could reap compounding benefits. The time is ripe: As documented in our recent report, the recently signed and ratified African Continental Free Trade Area (AfCFTA) can be the great enabler of that shift. THE STAGNATION IN GVCS The literature on GVCs emerged in the 1990s, after which the development community began to frame development success in terms of the ability of countries to insert themselves into these GVCs. Although not uncontested, academic research provided evidence of the benefits to workers and improved prospects for poverty reduction from participating in GVCs. However, the...

On February 27, Nigeria confirmed the first case of Covid-19 in Sub-Saharan Africa. Since then, the virus has spread to all corners of the continent. Even before the first cases were recorded in Africa, Covid-19 was already impacting international demand for exports in key sectors such as textiles and horticulture. Flower exports are down by more than 90 per cent and tourist arrivals have ground to a halt. The Kenya National Bureau of Statistics reported that imports dropped by more than 20 per cent in the first two months of 2020, with Chinese imports plummeting around 37 per cent. As the pandemic continues, the projected losses grow. Trade volumes in the EAC are down by up to 25 per cent since the beginning of 2020, with even greater reductions in the informal sector. African countries, conscious of the fragility of their public health systems and limited intensive care capacity, have instituted strict measures to stem the spread of the virus. However, for many in the region, their livelihood depends on moving about freely. There is no work-from-home option for the hundreds of thousands of small-scale traders. A day of work missed often translates to a day without food on the table. While health considerations are of primary importance, the prospects for tackling the challenges the pandemic presents are inextricably linked to trade and the economy. Continued trade at this time is crucial for three main reasons. First, trade is essential in ensuring people and governments have what they need to...

Social networks have become an integral part of our day to day lives and it is really difficult to imagine our lives without it. The Crypto industry itself is no stranger to the disruptive capabilities of social media as it has thrived on platforms like Facebook, Twitter, Reddit, Instagram etc. However, the centralised nature of these platforms has seen growing concerns regarding the safety of one’s personal data and privacy.  With recent scandals involving Facebook and Cambridge Analytica, people have started to question the privacy policies of these internet giants impose on their users and how they utilize user data. Privacy, which is an innate human right, is no more in the control of the people. Creators have lost control over their content, and unfair censorships have hampered growth and development of emerging industries like crypto and blockchain. This has fuelled the move towards uncensored social networks, with the crypto community leading the revolution. IOTA powered social network In order to overcome the various discrepancies, the SOCIETY2 team has proposed a social network powered by IOTA’s distributed ledger technology, which returns control of data, privacy and identity to the users of the platform. Developed on the IOTA network, SOCIETY2 enables the construction of decentralized social networks, taking the use of DLT beyond finance. The primary goal here is to allow social network users to regain authority of their data and personal information that they share on the internet. The user data will be stored securely on IOTA’s Tangle network and the information will be completely portable....

CHIEF executive officers of national private sector apex body associations of the East African Community (EAC), have called for swift action to overcome impediments to cross-border cargo movement in the region. Noting the importance of the free movement of cargo across the EAC partner states during the current Covid-19 pandemic in their meeting, the officers from the six member countries of the regional grouping have recommended that they should implement a coordinated regional approach for facilitating free movement of cargo. They want to see leaders ensure that health measures do not cause unnecessary cost and time burden to the free movement of goods and services across borders in the region. Plus, that there should be facilitation of free movement of cargo from the point of origin to the destination. Under the coordination of the East African B usiness Council (EAB C), the CEOs called upon the states to ensure that cargo flows smoothly and a relay system and transshipments of cargo is adopted. They noted that the process does not lead to exorbitant costs that could adversely affect transporters and consequently consumers. We call for issuance of certificates to truck drivers valid for a period of at least two weeks. The certificate notwithstanding, the drivers will also undergo mandatory temperature checks at the designated checkpoints. “ Ensure that all clearing and forwarding services loading and offloading equipment, as well as warehousing facilities are available at the borders to reduce border clearance time. Embark on rapid testing and joint border management....

The region was expanding at more than double the continental average in 2019. East Africa’s economy is tremendously dynamic and until now, it has been one of the fastest-growing sub-regions in Africa since 2013. As of 2019, before the COVID-19 coronavirus pandemic, the region was expanding at more than double the continental average. Boasting of having three of the world’s ten fastest-growing economies in 2019, the East African countries of Ethiopia, Rwanda and Tanzania, it is now time for the region to put in place measures that will assure the growth of the region post the coronavirus pandemic. Despite the low per capita incomes that have prevailed for decades, the region has experienced some notable social gains including East Africans living 6.7 years longer now on average than they did a decade ago. But even with these positive trends, the region still suffers from a number of serious vulnerabilities to its ability to sustain this strong economic performance. A joint report by the United Nations Economic Commission for Africa (UNECA) and Trademark East Africa (TMA) shows that the areas that need urgent attention to keep the region’s economy on an upward trajectory are majorly in intra-regional trade and investment. The limited intra-regional trade and investment constrain the structural transformation of the sub-region’s economies making it difficult for countries to achieve global, regional and national developmental objectives. The global economy is dominated by large countries such as the United States, China and India and small developing economies cannot effectively compete unless...

East African Community Headquarters, Arusha, Tanzania, 30th April, 2020: The East African Community has unveiled a comprehensive COVID-19 Response Plan to reinforce measures to protect and prevent further spread of the novel coronavirus pandemic within the region. The response plan was developed following a directive by the Joint Meeting of Ministers responsible for Health, Trade and EAC Affairs held via Video Conference, which directed the EAC Secretariat to finalize and submit the EAC Regional COVID-19 Response Plan to the Partner States. Among the key interventions proposed in the plan that was unveiled by the EAC Deputy Secretary General in charge of the Productive and Social Sectors, Hon. Christophe Bazivamo, on behalf on behalf of the Secretary General, are risk communication and community engagement, which will entail strengthening sensitization programmes and awareness creation on COVID-19. The response plan further seeks to ensure access to Infection, Prevention and Control (IPC) materials, laboratory supplies and equipment by the EAC Organs and Institutions, and the EAC Partner States. Another key intervention is to strengthen the region’s capacity for COVID-19 surveillance and reporting at all key border points, and build knowledge on safety measures, existing prevention and control strategies, and relevant regional guidelines. Mitigation of the fundamental impacts of the pandemic on the vital economic and social sectors of the region including Micro, Small and Medium Enterprises is another key intervention outlined in the document. Other proposed measures include: building regional capacity to support Partner States on surveillance, monitoring and coordination of preparedness and response to the...

The Office of the Prime Minister through the National Secretariat for the National Task Force on Covid-19 has issued strong guidelines for cross border trade trucks and their drivers operating in Uganda. These guidelines are expected to curb imported Coronavirus cases by cargo transporters. In the last 2 weeks, about 20 trucks drivers have tested positive of this dreaded disease, to the bitterness of Ugandans who fear that these new cases that are largely imported may force government to extend the ongoing 21 days lock-down that is ending on 5th May. The transporters are largely agreeable to these guidelines save for one – introduction of relay driving. Byron Kinene, the Chairman Regional Transporters Association in Uganda has called for mandatory testing of drivers at port of origin, border posts and final destination. While appearing on UBC TV, he thanked TradeMark Africa for investing in Regional Electronic Cargo Tracking System and urged Uganda Revenue Authority to add 10 minutes alarms for bad drivers that park in ‘undesignated’ areas. He called for drivers and population discipline including drivers chasing away the public mainly women from coming to their trucks and vice versa. Mr Kinene nonetheless asked Uganda not to undertake RELAY DRIVING as it is dangerous for trade, trucks, drivers & population alike. Kenya Transporters Association is also strongly opposed to the RELAY DRIVING idea. Below are the complete guidelines as issued by the Uganda COVID-19 task-force. Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page...

The Covid-19 pandemic despite disrupting businesses that depend on international trade has presented various opportunities that the businesses should develop on. Disrupted supply chain have seen markets lack various products but they have seen to rise and start producing on their own. Kenya for one has started producing and manufacturing protective gear to combat the virus, which the country usually imports. In a webinar hosted by the Kenya Chamber of Commerce, various business leaders noted the potential Africa has, that will provide opportunities post covid. “We need to diversify our supply chain to be able to bounce back in business by creating Special Economic Zones in Africa,” said Mark Priestley, Senior Director, Trade Logistics at Trade Mark East Africa. Nations such as China and Dubai where most people source raw materials could set up in the SEZs and provide supply in Africa so that we are not heavily dependent on them. “However we need to protect our existing investors, as we reevaluate our supply chain to be more regional,” said Priestly. However according to the Kenya Association of Manufacturers (KAM), we are challenged by the competitiveness of our products. “To be able to maintain stable supply in Africa we need to heavily invest in logistics, power and labour to be able to compete globally,” said Job Wanjohi, Head of Policy and Research, KAM. Intra-African trade was at around 15.2 per cent in the period 2018, indicating that trade across the region is low. “We need to integrate the Africa value...

In a 17-page document titled 'EAC Administrative Guidelines to Facilitate Movement of Goods and Services During the Covid-19 Pandemic' sent to the six partner states, the EAC Secretariat called on member states to enforce mandatory screening or testing of truck drivers and crew at border posts. Undertaking mobile monitoring during transit at selected inland points is also important, it said. Partner states were further advised to quarantine those with symptoms for 14 days under the supervision of the respective health ministries. To facilitate cross-border trade during the ongoing crisis occasioned by the novel coronavirus, member countries must adopt a multi-sectoral and coordinated approach, it said. They need to provide access at all designated points for entry and exit of goods and treat cross-border movement of trucks and cargo as essential services, the document underlined. Items to be prioritized as essential goods to mitigate the Covid-19 pandemic are food, fuel, medicaments, agricultural products and inputs, security supplies, emergency and humanitarian relief goods, it said. To mitigate critical shortages of equipment and supplies, member states need to promote local production of the items required to contain Covid-19, for example, medicaments, sanitizers, protective gear and ventilators, it said. “Partner states have further been advised to support the micro, small and medium enterprises (MSMEs) sector which employs many East Africans by exploring avenues to enable MSMEs to remain in business and expand as a foundation for the post-Covid-19 recovery process,” the statement reads in part. Transporters and transporters' associations must adhere to the requirement...