TradeMark Africa (TMA) has signed a $3.14 M financing agreement with the United Nations Conference on Trade and Development (UNCTAD) which is aimed at ensuring that EAC countries comply with the WTO Trade Facilitation Agreement (TFA). The agreement was signed by TradeMark Africa (TMA) CEO, Frank Matsaert and the Secretary General of UNCTAD, Dr Mukhisa Kituyi in Geneva. The initial TradeMark Africa (TMA) and United Nations Conference on Trade and Development (UNCTAD) Financial Aid Arrangement was signed in 2015 and implemented from early 2016 with three components: Trade Facilitation (TF); Trade Portals and Gender. The main objective of component I was to assist in setting up the institutional environment for Trade Facilitation in five East African Community (EAC) Partner States (PS); Burundi, Kenya, Rwanda, Tanzania and Uganda. The main activity was focused on creating the National Trade Facilitation Committees (NTFCs) in the five mentioned PS and to empower them through a capacity building program allowing them to coordinate and supervise their national TF processes, including implementation of the World Trade Organisation Trade Facilitation Agreement (WTO TFA). The main achievements of the capacity building program were WTO TFA ratification by Kenya, Rwanda and Uganda and the notification of A measures by the EAC PS in 2015 and the B and C measures for Rwanda in June 2018. As of 2017, the five EACcountries have had their NTFC legally established and operationally functional. The current cooperation agreement was foreseen to end in December 2017. However, due to several delays at national levels...

On a recent trip to Ethiopia, Britain’s new international development secretary Alok Sharma announced plans for a new commission to mobilise private sector investment for bankable infrastructure projects in developing countries. During his two-day visit, Sharma allocated £10m of infrastructure investments to East Africa’s fastest growing economy, Ethiopia. The funds were earmarked for clean energy and sustainable infrastructure projects in Ethiopian cities, the Department of International Development (DFID) said.As one of Africa’s fastest growing economies, Ethiopia has “huge potential for future trade with the UK,” DFID added. Commissioning infrastructure The new commission aims to mine the expertise of UK and international business leaders in order to scale up infrastructure development in Africa and other emerging economies, according to DFID. Deploying a team of experts with experience in infrastructure development in Africa and Asia will help mitigate the risks of infrastructure projects and make such ventures more attractive to foreign investors, especially those in the City of London, Sharma said. “The focus will be to help make investment in infrastructure in developing countries more attractive to businesses and investors,” the department said. African economies on the continent currently face a £140 billion annual infrastructure gap, which requires urgent private sector investment, the African Development Fund says. The Commission hopes to facilitate private equity support to build infrastructure projects and create better trading partners for Britain, Sharma said. This Commission will aim to turbo-charge investment in green, sustainable infrastructure, leading to more jobs, better access to basic services and opportunities for businesses, creating the UK’s...

In about two weeks-time the 39th Summit of Heads of State and Government of the Southern African Development Community (SADC) begins in Dar es Salaam. President John Magufuli, who is currently the deputy chairperson of SADC, will take over the rotating leadership of the regional organization from his Namibian counterpart Hage Geingob at the Summit. The theme for this year’s meeting is on the focus of the past four SADC Summits that sought to advance industrial development and takes into account the need for sufficient infrastructure to support industrialisation and the need to engage the youth, who are no question the bulk of the SADC population and headache for those responsible to come up with way to absorb them efficiently in economic undertakings. I recognize contributors would love to have their voices head, from presentations that will look at encounters and prospects in financing infrastructure projects that are key in stimulating industrialization program to those who might contemplate on openings for developing regional value chains within SADC and their benefits in stimulating intratrading within the region et cetera. As I join other contributors I would like to re-examine industrial development in Tanzania and what would take to make it take off swiftly in the prevailing business environment that is increasingly becoming very competitive. To begin with, I would like to examine the possibilities requirements and nature of industrialisation suitable for SADC member states with a clear understanding of the nature and magnitude of Tanzania’s journey to middle income and the...

Africa is a continent of immense contrasts. It has vast reserves of natural resources but suffers from severe economic inequality. Nevertheless, the African Continental Free Trade Agreement (AfCFTA) has brought some reasons for optimism as it presents an important component for economic transformation. Yet, such development must be coupled with clear regulations and guidelines if we are to have any hope of attaining the primary goal of boosting intra-African trade. This, from the beginning should be pioneered with the practical implementation of normative frameworks to support the course. Part of this normative framework is a combination of innovative trends on exported products and intra-country trade which ought to be shaped by policies at the local, national and global levels. In order to optimally leverage on AfCFTA for collective progress and prosperity, we need governance frameworks, protocols and policy systems that ensure inclusive and equitable benefits. Most importantly, we need to embrace the fact that there is a disconnect when it comes to the goods exported within African countries by African countries vis-aʹ-vis the goods exported by African countries outside the continent. To ensure that the member countries reap the benefits that come with AfCTA, this asymmetry ought to be addressed with utmost urgency. According to a study by United Nations Conference on Trade and Development (UNCTAD), the share of intra-African exports as a percentage of total African exports has increased from about ten percent in 1995 to around seventeen percent in 2017. Meanwhile, only 13 per cent of Africa’s world...

Central bankers across Africa are paying special attention to the noises coming out of the U.S. Federal Reserve as they mull impending calls on monetary policy easing. On Thursday, the South African Reserve Bank announced its first cut to interest rates in over a year, lowering rates by 25 basis points to 6.5% as the continent’s most industrialized economy tackles low inflation and its starkest contraction for over a decade in the first quarter. Ghana, Nigeria, Kenya and Angola will all set rates this week. Nigeria recently passed measures compelling banks to boost lending, while a drought in Kenya drove up inflation. “Monetary policy in Africa has been held hostage to the Fed hiking cycle for the past 18 months, with African central banks maintaining nominally high domestic interest rates to protect their currencies against capital outflows, despite an improving inflation outlook,” Ipek de Vilder, European executive director at international brokerage network Auerbach Grayson, told CNBC. “The policy is working as 2018 was the first year since 2015, when African currencies were essentially flat vis-à-vis the U.S. dollar relative to annual deprecation about -10% over the previous four years,” she added. When the Fed tightens policy for an extended period it tends to lower demand for traditional U.S.-based safe haven assets, sending investors searching for return elsewhere. This often facilitates a windfall for emerging markets and causes central banks to mirror Fed measures to stabilize supply and demand. The recent shift to a more dovish tone from the Fed has...

African Continental Free Trade Agreement (AfCFTA) was signed during the African Union Summit in Kigali, Rwanda on March 21, 2018. Uganda is part of this bloc. Focusing on the bloc’s modus operandi, the operational phase for AfCFTA was launched on Sunday, July 7 during the African Union summit in Niamey, Niger where Ghana was announced as the host of the trade zone’s headquarters. Countries were required to ratify before bringing into force the trade framework, that is designed to free the continent of tariff barriers, bolster trade among African countries, drive industrialisation and create jobs. At present, 24 countries have submitted their instruments of AfCFTA ratification, including Uganda. Five others have also started the ratification process. How Uganda stands to benefit from the world’s largest trading bloc According to UNCTAD’s December 2018 report, more than 90 per cent of African countries are on the List of Least Developed Countries. AfCTA could be a silver lining for possible relief from predators that have continued to blackmail African economies unfairly through conditional debts, sanctions and other forms of exploitation. Uganda’s commitment to be part of AfCFTA, which is a continentwide economic integration presents enormous opportunities for Ugandans as ensuing benefits for Africa will be immense. If all 55 African countries join a free trade area, it will be the world’s largest (going by the number of countries); covering more than 1.2 billion people and with a combined GDP of 52.5 trillion. It will be the world’s largest free trade area since the...

The African Development Bank re-affirmed its intention to boost economic and regional development on the African continent when its Board of Directors approved a $300 million support facility for the Eastern and Southern African Trade & Development Bank (TDB) on Wednesday, 17 July, 2019. The COMESA regional trade and project finance package consists of a composite funded trade finance and project finance facility, and an unfunded trade finance risk participation agreement (RPA). This comes on the heels of the African Continental Free Trade Area (AfCFTA) agreement, which came into force in July 2019; and the Bank’s partnership framework featuring African DFIs, including the TDB, which committed to working together to scale up, speed up, and synergise African development. The facility’s trade finance component will enhance the TDB’s confirmation capacity, support its rapidly expanding forfeiture business, and help it become a globally acceptable confirming bank. The project finance component will facilitate the delivery of export-oriented infrastructure, which will promote regional trade within the COMESA region.  The facility further demonstrates the Bank’s longstanding and growing partnership with the TDB as a regional development finance institution in pursuit of shared development goals. In presenting the project to the Board, the Bank’s Director for financial sector development, Stefan Nalletamby, said that the RPA “will enable the Bank and the TDB to share confirmation risk on African issuing banks. This will promote broad-based economic growth on the African continent by making international trade easier. It will benefit no less than 43 financial institutions operating in...

It will spend the funds on helping developing countries learn from UK expertise on trade deals and attracting foreign investment. The move will see Liam Fox's department spending funds earmarked as Official Development Assistance. The funds will still count towards the government's target of spending 0.7% of national income on overseas aid. The measure was confirmed by Trade Secretary Liam Fox in an interview with BBC News. "We want to bring development and trade closer together," he said. "Rather than having developing countries dependent on the largesse of rich countries, we want them able to get sustainable development and trade their way out of poverty, and one of the ways in which we can do that is to give them the skills that will attract the investment into their country... to develop some of those attributes that helped us get investment into the UK and helps them get investment on a stable basis." Shift overseas aid 'away from humans' Labour accused the government of "pinching aid money from the world's poorest to prop up rich investors". "As the government desperately chase post-Brexit trade deals, they must rule out raiding the aid budget for anything other than fighting global poverty," said Dan Carden, Labour's Shadow Secretary of State for International Development. Moving the existing spread of aid spending away from the primary responsibility of the Department for International Development is already controversial. More than a quarter of the budget is now spent by other departments, including the Foreign and Commonwealth Office,...

COMESA Secretary General Chileshe Kapwepwe said the regional economic bloc counts on President Kenyatta’s support to guide and move forward the implementation of AfCFTA. “As COMESA, we are confident that your commitment and support will play a big role in the realization of AfCTA as we work to ensure COMESA’s voice is heard and its interests safeguarded at the continental level,” Ms Kapwepwe told President Kenyatta. Ms Kapwepwe, who is the country for the 21st COMESA International Trade Fair and High-Level Business Summit, was speaking today when she paid a courtesy call on the President at State House, Nairobi. She said COMESA will continue to play a key role in addressing unemployment and trade imbalance in the region. Implementation of AfCTA was launched early this month at the 12th Extraordinary Session of the Assembly of Africa Union (AU) in Niamey, Niger. President Kenyatta assured of Kenya’s support to COMESA as it moves to consolidate its position as an economic powerhouse on the continent. He reiterated his call for COMESA member states to come together and take advantage of their collective strengths as an economic bloc. “Our success as COMESA member states will largely depend on us stopping to look at each other as competitors and instead unite for economic integration that will make us all winners,” President Kenyatta said. “We must focus on removing the obstacles that are hindering our people from working and doing business together,” he added. At a separate meeting at State House Nairobi, President Kenyatta met...

The recently signed African Continental Free Trade Area agreement (AfCFTA), which came into force on May 30, represents a unique opportunity to grow intra-Africa trade and diversify trade exports with the rest of the world. The agreement establishing AfCTA is not only creating the biggest trade agreement since the World Trade Organisation was established in 1994, but is also the most significant step towards economic integration which has already been achieved in other regions in Africa. The impact of AfCFTA can be seen in the context of the current very low levels of intra-Africa trade. Intra-regional trade represents an average of 15% of global trade across both imports and exports as of 2017. According to the UN Conference on Trade and Development, regional intra-trade accounts for 59% of Asia’s exports and 69% in Europe. With customs procedures eased under the AfCFTA, intra-Africa trade is expected to grow to at least 53% by the mid-2020s, thus effectively contributing in the region of $70bn to the continent’s GDP. The growth in intra-Africa trade will ensure that an increasing proportion of Africa’s more than US$2-trillion economy is traded internally. For the financial sector, there will be increased demand for trade financing to aid the anticipated overall growth in intra-Africa trade. For example, to support the expected increase in intra-Africa trade of $119.6bn by 2022, it will require nearly $40bn in trade financing alone. To achieve growth to the value of $27.9bn in industrial goods by 2022, an estimated $9.3bn in trade financing will...