The Minister of Trade, Industry and Cooperatives, Hon Amelia Kyambadde is expected to make a strong case for the African Continental Free Trade Area (AfCFTA) at the second Regional Logistics Expo 2019 (RLE2019), to be held next week on August 21st and 22nd, 2019 at the Sheraton Kampala Hotel. The operational phase of the AfCFTA was launched at the Niger Summit of the African Union, last month, with the free trade area expected to tear down borders and ensure full continental integration. AfCFTA is also expected to drive growth and innovation for Africa, and to create opportunities for sustainable development and realizing Agenda 2063. The AfCFTA will be one of the largest free trade areas since the formation of the World Trade Organisation, given Africa’s current population of 1.2 billion people, which is expected to grow to 2.5 billion by 2050. The Trade Ministry has been rallying Ugandan businesses to be ready to exploit the opportunities that will arise with the continental agreement, with Hon Kyambadde at the forefront. “She is very passionate about AfCFTA,” Mr Julius Kasirye, the Senior Commercial Officer at the Trade Ministry, said. “When she begins speaking about AfCFTA, she convinces you that anything is possible,” Mrs Merian Sebunya, the chairperson of the National Logistics Platform, one of the partners of the RLE2019, added. Both were speaking recently during an Expo preparatory meeting held at the Ministry of Works and Transport (MoWT) offices. The Uganda Freight and Forwarders Association (UFFA) is hosting the Expo, in partnership...

Rwanda’s tea is selling at premium rates at the Mombasa Tea Auction, overshadowing price offers on Kenyan produce as international buyers focus on quality. Weekly price offers for Rwandan teas have been on the rise in the last three months, outshining produce from Kenya Tea Development Agency (KTDA) outlets. This week, broken pekoe-1 (BP1) tea from Gisovu factory — Rwanda’s top outlet — attracted a highest bid of Sh550 per kilo compared to Sh428 per kilo offer that the same grade from Meru-based Githongo factory (Kenya’s best) attracted. Traditionally, Kenya tea has attracted top prices. “Since the grade of tea is the same across the region, that implies quality is what is creating the price difference,” said Mr William Tindi, an executive at the African Tea Brokers. “Buyers may bid high or low depending on quality.” The regional teas are offered for sale at the Mombasa auction by the East African Tea Traders Association before they are shipped out of the country. Kenya, a leading tea exporter in the world, accounts for three quarter of the produce traded at the Mombasa auction. While prices have generally remained low at the auction in the recent months on the back of high volumes, Kenya’s tea is apparently shedding its attractiveness even as factories in Rwanda work to improve the quality for export market. While the produce from the two states, which were almost at par through the April auctions, only one of the KTDA’s 65 processing factories was able to cross the...

President Paul Kagame says the African Continental Free Trade Area (AfCFTA) should ease free movement of people as it will for goods because goods cannot move on their own if people cannot move freely. President Kagame made the observation on Friday at the inaugural Private Sector Federation (PSF) Golden Business Forum which brought together over 600 members of the business community from Rwanda and 22 other countries under the theme “Unlocking Intra-Africa Trade”. The Head of State said the pace of regional and continental integration has accelerated significantly in recent years, citing the AfCFTA under which African countries will begin trading in July 2020 as one of the key milestones of integration on the continent, adding that they should ease free movement. “The Protocol on the Free Movement of People has been signed, and the ratification process is underway. Once in effect, Africans will no longer require visas to travel within Africa, among other valuable rights,” “How are we going to allow free movement of goods but you don’t allow free movement of people?” President Kagame wondered. He noted that African countries have to understand that even with most restrictions on movement of people and visas, people have been moving. “They move across borders whether you give them visas or not. Some of these people are brothers and sisters, only that they live on opposite side of what is known as the border,” “It is up to us the leaders to really make it easy for all of us because...

East Africa's intra-regional trade has fallen to 0.2 per cent of global trade due to persistent trade disputes and barriers. The United Nations Conference on Trade and Development (Unctad) has now launched a study on the impact of non-tariff barriers (NTBs) on trade. The study was announced after a meeting between Kenya and Tanzania called to resolve outstanding NTBs in July failed to take off. The EastAfrican has learnt that Unctad is looking for national consultancies from Kenya, Uganda, Tanzania, Rwanda and Burundi to come up with a report on NTBs for each country. The national reports will then be compiled into a regional document. Unctad Secretary-General Mukhisa Kituyi confirmed that the study is underway, but it was too early to discuss it. "I will comment when we have the results of the survey," he said. Despite EAC partner states committing themselves to remove NTBs, they remain prevalent. Attempts by regional states to deal with NTBs through various initiatives like the EAC Time-Bound Programme for Elimination of Identified NTBs (EACS, 2009) seem to have achieved little. Under the EACS, member states were supposed to come up with a list of NTBs reported by partner states, and update them during quarterly review meetings. During the meetings, new NTBs would be reported and those that had been resolved would be moved to the end of the list. Intra-EAC trade is just 20 per cent compared with other regional economic blocs like the South African Development Community (SADC) which stands at 58 per...

The African Development Bank Group has signed a $4.8 million institutional support grant to the African Union (AU) for implementation   of the African Continental Free Trade Area (AfCFTA). The grant, approved by the Group’s Board of Directors on 01 April 2019, forms part of a series of interventions by the Bank in its lead role to accelerate implementation of the Free Trade Agreement, seen as a major force for integrating the 55-nation continent and transforming its economy. Albert Muchanga, AU’s Commissioner for Trade and Industry, for the continental body, while Obed Andoh Mensah, representing the Bank’s Director of the Industrial and Trade Development Department (PITD), signed on behalf of the Bank, signaling the startup of implementation. African leaders meeting in Niamey, Niger in early July launched the implementation phase of the free trade area agreement established in March 2018 after it became operational at the end of May this year. Currently, 54 states have signed the deal and are set to begin formal trading next July. “The AfCFTA is going to work and we are confident that by the 1st of July next year, all the 55 countries would have been state parties – meaning, they would have signed and ratified the agreement and intra-African will start,” Muchanga said in a statement and urged countries to use this period to complete the parliamentary processes. In the statement, Muchanga commended the Bank’s strong and consistent support to ensure smooth implementation of the Agreement, saying the grant would be used judiciously for the...

EAC and Regional Development Cabinet Secretary Adan Mohamed speaking during the East African Business Council 20th annual general meeting said that the Monetary Union envisages a situation where there are common monetary and fiscal policies that enable people to trade in a common currency. He noted that the future role of the East African Business Council should usher in a more dynamic and strengthened self regulation mechanism for the private sector, that focuses on critical issues that will be game changers for the region. The CS said this will enable the citizens in the member states to trade seamlessly with one another more than is currently happening. According to Mohammed, the regional economic groupings are anchored on market-based policies, mainly liberalization, wide public, civil society and private stakeholder involvement and convergence of macro-economic policies. The CS said that the EAC is a strong regional bloc that is the most integrated on the continent, that has seen a lot of growth over the years adding that the private sector in the region continues to play a critical role in economic development. He noted that as an economic block the EAC must make themselves attractive on our Ease of Doing Business agenda. “We must make ourselves attractive on our Ease of Doing Business agenda, infrastructure development and other enablers that support business growth,” said CS Mohammed. He emphasized to the member states the need to stick together as EAC in order to compete at the global stage noting that EAC’s combined market size is...

The draft programme of the 2019 WTO Public Forum is now online (click here). This year's Forum takes place from 7-11 October under the headline of 'Trading Forward: Adapting to a Changing World'. A number of grain trade participants will be leading sessions, including Gafta, the Grain and Feed Trade Association, who will table 'Digital Transformation of the Agricultural Trade', and Cargill, Incorporated who will lead on 'Global Trade Systems and the Next Generation: Connecting Our World'. Other trending issues at the Public Forum include: Digitalization and digital trade (Gafta, ITC, WEF, ICC) Millennials and Gen Z expectations for the future of trade (WTO, UNCTAD, ITC, Cargill, Incorporated, Government of Canada, farming unions of Norway and Switzerland) WTO reform (Africa Trade Network, Government of Brazil, Apex-Brazil, AEGIS Europe) WTO dispute resolution (Bertelsmann Stiftung) Sustainability and trade (ECOSOC, Confederation of British Industry, Government of France, Governmnent of Canada) Developing countries and the international trade agenda (World Bank, IICA) Gender and trade (Gender and Trade Coalition, Trade Mark East Africa) Source: Public

East African Community member states are working towards linking the regional electronic payment system to other payment solutions in Africa, to ease trade around the continent following the launch of the African Continent Free Trade Area (AfCFTA). The performance of the East African Payment System (EAPS), which was launched in May 2014, has been hampered by the reluctance of member countries to trade in each other’s currency, leaving Kenya to control over 98 per cent of the transactions through the system. EAC central banks are now exploring ways of transforming the system by linking it with other payment solutions in Africa to enable seamless transfer of cash across the continent at both retail and wholesale levels. Bank of Uganda’s deputy governor Dr Louis Kasekende said the move will help boost intra-Africa trade and support the growth of regional firms. Currently, Kenya dominates transactions in the EAPS, which allows citizens of member countries to make and receive payments in regional currencies — the Kenyan shilling, Ugandan shilling, Tanzanian shilling, Rwandan franc and Burundian franc. During the 2017/2018 financial year, Kenyans accounted for over 98 per cent of the transactions in this system amounting to $ 2.37 billion out of $2.41 billion, with a paltry $40 million being transacted by Uganda, Rwanda, Tanzania and Burundi. Source: The East African

The Workshop brought together key Stakeholders, Transport Corridors and Development Partners to discuss the challenges posed by GHG emissions and agree on a common methodology for measurement. Stakeholders and Development Partners from Member countries of three Transport Corridors namely; Northern Corridor, Dar es Salaam Corridor and Central Corridor established a road map of actions towards a joint effort of reducing Greenhouse Gas Emissions and Pollution in the transport sector by harmonizing emissions data collection, sources and estimation methodologies. As a way forward, after a two day mobilization workshop on Reduction of Greenhouse Gas Emissions and Pollution in the Transport Sector held in Nairobi,  Kenya, from 30th to 31st July 2019,  participants recommended that emissions data collection requirements should include among others, Vehicle/equipment type, distances covered, tonnage carried, amount and type of fuel consumed, and Emission Factors. The aim of the two day workshop was to mobilize key Stakeholders towards reducing Greenhouse Gas Emissions and Pollution by fostering a common understanding in harmonisation of comparability of indications and methods of collecting emissions data, calculation methods and agreeing on common emissions factors to be used. Specific objectives were to have a common understanding of the environmental impact of GHG emissions, the principles and evaluation methods of GHG emissions,the importance of monitoring & evaluation processesrequired, Carbon off-setting options, the use and options for sustainable energy utilization; and identifying the reporting requirements and validation techniques for GHG emissions, assessing the benefits of a GHG reduction program as well as sharing experiences on GHG evaluation in the transport and...

In the past 10 years, Kenya has adopted a new spine for national economic growth, shifting from the initial focus on agriculture and service industry, with infrastructure now largely considered the enabler to development in hitherto neglected regions and sectors. MASS EVICTIONS In Nairobi, the quest to rejuvenate the capital city’s infrastructure has been so upbeat, more so in 2018, that we now speak of mega infrastructure projects. Road construction has seen the largest of these ventures. Planned and ongoing construction projects include A104 (Mombasa Road) from the Likoni Road junction to James Gichuru Road junction by the government and Nutrip, funded by the World Bank; European Union-funded ‘Missing Link 15 B’, commonly known as Deep Sea road; James Gichuru-Rironi road; and dualling of Ngong Road. There are also plans to build a highway bridge connecting Jomo Kenyatta International Airport on Mombasa Road to Kangemi on the Nakuru highway. The 28km bridge, an expressway, is expected to stem the problem of passengers missing flights at the JKIA due to perennial traffic congestion in the city centre. The same mega road projects have happened in Mombasa, as seen in the expansion of the Sh6 billion Moi International Airport-Port Reitz-Magongo and Mombasa-Miritini roads into dual carriageways, interchanges and overpasses. Ongoing projects include the dualling of the Mombasa-Mariakani highway, Dongo-Kundu Bypass and Mombasa Northern Bypass, which were set to increase efficiency in the Port of Mombasa. Construction of a road connecting the Mombasa port to Bujumbura, which a recent report indicated is finally...