The biggest news in May will not be the resignation of UK Prime Minister Theresa May but the coming into force, of the much anticipated Africa Continental Free Trade Area (AfCFTA) exactly four years today, since negotiations for the treaty begun in June 2015; it is a milestone worth celebrating. While it is without doubt a collective achievement of African leadership, Rwanda rightly deserves a special mention for the crucial role played by President Paul Kagame, under his mandate as the African Union Chairperson for the year 2018 in which he helped accelerate the actualization of the AfCFTA dream. His charisma and passionate drive quickly set things in accelerated action towards March 21, 2018 when the AfCFTA agreement was signed in Kigali. He continued engaging with counterparts on the continent towards May 30, 2019 when the AfCFTA officially came into force after the 22nd nation threshold to ratify was achieved in April. The AfCFTA excitement is based on what experts have ably articulated as the projected potential benefit to Africans such as turning colonial borders into bridges of cooperation and allow for a single continental market of goods and services and with free movement of persons. It will also facilitate cross-border investment and pave the way for accelerating the establishment of the Continental Customs Union; intra-Africa trade will grow to the tune of between US$50 and 70billion by 2040 with a combined GDP of nearly US$3trillion, according to UNECA. Statistics indicate that trade among African countries is at 15 percent...

The U.S. ditched the Trans-Pacific Partnership, while across the Atlantic, the U.K. is trying to extract itself from the European Union and its single market. But while free trade is under threat in much of the world, African countries are heading in the other direction: the continent is on track to create the largest free trade agreement by population that the world has seen since the 1995 creation of the World Trade Organization. That organization has 164 member countries. On May 30, the African Continental Free Trade Area (AfCFTA) will become a reality. All but three of Africa’s 55 countries have signed up, creating a free trade area that covers more than a billion people and a collective GDP of over $2 trillion, and includes most of Africa’s largest economies, including South Africa and Egypt. If hold-outs Benin, Eritrea and Nigeria—Africa’s largest economy—join in, that’s a total of 1.2 billion people and $2.3 trillion in GDP. By way of comparison, NAFTA and the EU-Japan free trade agreement each cover a collective GDP of around $22 trillion. But even when added together, they don’t cover as many people as the AfCFTA will if every African nation joins. Here’s what you need to know about the deal that could transform Africa’s business landscape. WHAT’S THE GOAL? Trade within Africa is in a dire state. A mere 17% of African countries’ exports go to other African countries—compare that with intra-regional trade levels of 59% in Asia and 69% in Europe. That means Africa doesn’t feature much in the way of cross-border value chains. Why? There’s currently a...

Rwanda still imports more than it exports to other foreign markets and this puzzle continues to elude local economic planners that spend sleepless nights cracking through moves that would balance trade. Experts have realised that the biggest problem is lack of correct information among local firms and that this challenge does not require rocket science to fix. Another complex huddle that local firms have to jump over is the intricate trade barriers. On Wednesday the European Union Delegation to Rwanda conducted Market Access training for Rwandan companies in conjunction with ITC’s Market Analysis, Private Sector Federation, Ministry of Trade & Industry, Agriculture Ministry and the Agricultural Export Development Board (NAEB). This training According to the EU delegation in Rwanda is “an initiative that complements our development support to the agriculture sector in Rwanda.” Nicola Bellomo EU Ambassador to Rwanda told the trainees that Rwanda has free access to the EU market (everything but arms) but volumes of exports remain low. “Most of our trade consists of EU imports to Rwanda; our objective is to balance our trade relations – and to help create jobs and economic growth in the process,” Bellomo said. This training is considered a great opportunity for our export SMEs, for those that did not get a chance this time more training and support soon!” says the chief executive officer of the National Agricultural Export Development Board. According to the International Trade Centre (ITC), Rwanda still has an untapped potential to export $14.5M more to Europe. In...

The Kenya Revenue Authority (KRA), The Kenya Ports Authority (KPA) and the Kenya Shipping Agents Association (KSSA) have signed a charter to enhance cargo clearance efficiency and boost regional trade. The Transhipment Standard Operating Procedures (SOPs) charter is part of a commitment to boost port operations and clear bottlenecks affecting efficient cargo movement. The charter will ensure clear performance targets and processes for the agencies operating at the Mombasa port. Each party will be given clear timelines while emphasis will be placed on the provision of adequate resources to clear transhipment cargo expeditiously. At the signing ceremony, which was held at the KPA headquarters in Mombasa last week, the KRA Customs and Border Control Commissioner, Kevin Safari described the formulation of SOPs as a key milestone for the shipping stakeholders. Mr Safari was accompanied by KPA general manager (operations) Captain William Ruto, and the Kenya Shipping Agents Association CEO Juma Ali Tellah. Source: Business Daily

The coming into force of the African Continental Free Trade Area (AfCFTA) Agreement, on May 30, 2019, is a turning point for the African continent, experts and integrationists have said. The development means that AfCFTA is now a binding international legal instrument. “For many who have yearned for an integrated Africa, today is that day where hope of an Africa that trades more with itself than the rest of the world is palpable,” Chijioke Odo, Trade Advisor at international accounting firm Deloitte, tweeted yesterday. He added: “Whilst some would argue that removing tariffs would not necessarily increase intra-Africa trade (with logistics, free movement of persons and territorial protectionism being the notorious impediments to intra-Africa trade), it is my view that AfCFTA will galvanise progress.” Change is coming to Africa and those who have not recalibrated their business for the incoming market would be left behind,” he added. Francis Mangeni, Director for Trade, Customs and Monetary Affairs at the COMESA Secretariat, told The New Times on Thursday that the entry into force of the trade deal is “a turning point in African history.” The development, he said, opens up a “market of over 1.2 billion people”. The region’s consumer and business spending is over US$4 trillion annually and is estimated to hit US$5.6 trillion by 2025. “The private sector is awake to these prospects and is mobilising,” Mangeni said, adding that “125 companies already have a multinational presence across Africa and a number of developed countries.” Some 400 pan-African companies have...

INTRODUCTION As of April 29, 2019, 22 countries have deposited their instruments of ratification of the African Continental Free Trade Area (AfCFTA) agreement[1] to the African Union (AU), meeting the threshold for the agreement to come into effect. The AfCFTA entered into force on May 30, 2019. The significance of the AfCFTA cannot be overstated: It will be the world’s largest free trade area since the establishment of the World Trade Organization (WTO) in 1994.Landry Signé has estimated that under a successfully implemented AfCFTA, Africa will have a combined consumer and business spending of $6.7 trillion in 2030.He also finds that the AfCFTA will have a significant impact on manufacturing and industrial development,tourism,intra-African cooperation, and economic transformationUNECA has predicted it will raise intra-African trade by 15 to 25 percent, or $50 billion to $70 billion, by 2040, compared to an Africa without the AfCFTA. The International Monetary Fund (IMF) similarly projects that, under the AfCFTA, Africa’s expanded and more efficient goods and labor markets will significantly increase the continent’s overall ranking on the Global Competitiveness Index.Increased market access, in turn, is expected to enhance the competitiveness of industries and enterprises, the exploitation of economies of scale, and the efficacy of resource allocation. While the AfCFTA’s ratification is a cause for celebration, much work remains as critical parts of the agreement have yet to be completed—including countries’ schedules of tariff concessions and services commitments, rules of origin, investment, intellectual property, competition, and a possible protocol on e-commerce. The extent to which the...

Rwanda is looking for $1.3 billion to fund the construction of the proposed Isaka-Kigali standard gauge railway that links Rwanda and Tanzania, a senior Rwandan official said Tuesday. The figure is higher than $1.2 billion revealed during the launch of the 400 km railway line on January 20, 2018 in Dar es Salaam. "The study for Isaka-Kigali SGR is completed," said Jean de Dieu Uwihanganye, Minister of State in charge of Transport, while speaking at a local radio station talk show. "Rwanda is looking for a staggering around $1.3 billion to finance its portion with the aim of reducing logistics costs, boosting trade and easing the movement of people between Rwanda and Tanzania." Investing in transport projects is among the Rwandan government's top priorities as a way to attract investment in productive sectors, improve business environment and increase jobs opportunities, he said. Initial studies had shown that the project that will connect landlocked Rwanda to the Dar es Salaam port was estimated to cost $2.5 billion. Source: Rwanda Today

According to engineers supervising construction works at the border post on Rwandan side, the progress of the project is at 96% and will have been completed by next month. In March this year, Rwanda closed Gatuna border to heavy vehicles that were directed to cross through Kagitumba and Cyabika corders as construction activities are underway. The border is expected to improve cross border trade upon completion and reduce the time spent at the border during clearance processes.As IGIHE visited the construction site, workers on the Rwandan side were working tirelessly to have it completed the soonest possible. Tarmac roads on Rwanda side have already been completed as efforts to make them green, planting grasses along the road sides are underway.Buildings are also in final phases as workers are currently painting and doing other light works. “Construction works stands at 96% on Rwanda side. This means activities will be completed within two weeks. By then, the remaining thing will be relocating equipment from old to new buildings and installing internet,” one of engineers supervising the project has told IGIHE. Gatuna border post project is expected to be completed at a cost of Rwf 15 billion. Even though construction works nears completion on the Rwandan side, Uganda is not putting in much effort in the project. By the time IGIHE visited the border recently, no works were being executed on the side of Uganda expect cattle seen grazing around the project’s premises with the presence of old structures. The construction of some buildings has also stalled while no tarmac road...

The U.S. ditched the Trans-Pacific Partnership, while across the Atlantic, the U.K. is trying to extract itself from the European Union and its single market. But while free trade is under threat in much of the world, African countries are heading in the other direction: the continent is on track to create the largest free trade agreement by population that the world has seen since the 1995 creation of the World Trade Organization. That organization has 164 member countries. On May 30, the African Continental Free Trade Area (AfCFTA) will become a reality. All but three of Africa’s 55 countries have signed up, creating a free trade area that covers more than a billion people and a collective GDP of over $2 trillion, and includes most of Africa’s largest economies, including South Africa and Egypt. If hold-outs Benin, Eritrea and Nigeria—Africa’s largest economy—join in, that’s a total of 1.2 billion people and $2.3 trillion in GDP. By way of comparison, NAFTA and the EU-Japan free trade agreement each cover a collective GDP of around $22 trillion. But even when added together, they don’t cover as many people as the AfCFTA will if every African nation joins. Here’s what you need to know about the deal that could transform Africa’s business landscape. WHAT’S THE GOAL? Trade within Africa is in a dire state. A mere 17% of African countries’ exports go to other African countries—compare that with intra-regional trade levels of 59% in Asia and 69% in Europe. That means Africa doesn’t feature much in the way of cross-border value chains. Why? There’s currently a...

THE Congolese Minister for External Trade, Lambert Matuku Memas, on Monday evening toured Northern Province where he was briefed on various economic activities that can benefit citizens of both countries. The minister was in Rwanda for a working visit to witness how rural residents put into practice various policies meant to boost trade activities. As part of his visit to the province, regarded as the country’s food basket, he toured different development activities in Rulindo District, including businesses owned by individuals who promote the Made-in-Rwanda initiative, through agro-processing. The minister observed how juice, wine and biscuits, among other products, are made out of farm produce mainly, passion fruit, at Urwibutso Entreprise owned by Sina Gerard. He also heard from some businesses from the district on how the Government provides them incentives when starting their business through tax holidays and finding them markets abroad. Matuku reiterated his government’s commitment to strengthening ties with Rwanda, particularly through boosting trade between the two countries. He particularly requested that products from Urwibutso Enterprise and other locally made products, including foodstuff, should be regularly exported to Kinshasa. Speaking toThe New Times, the Governor of Northern Province, Jean Marie Vianney Gatabazi, who accompanied the visiting minister, said the province was ready to take advantage of the DR Congo market. “We have a new cement plant which will be functional by September that will be supplying high quality cement to Goma and in other parts of Eastern DR Congo. We also have Burera garment factory, which is set...