that the government has so far done a commendable job towards making the country a middle-income industrial economy. The task force has presented its report to a closed-door meeting of the TNBC Executive Committee, which is chaired by the Chief Secretary. The committee is the second supreme organ of the TNBC. The national business council is chaired by the president of Tanzania. Addressing the press after presenting the report, the co-chairman of the task force (private sector), Ali Mufuruki said the task force was satisfied with the measures taken by the government in a fresh bid to modernise and industrialise Tanzania. “We had exhaustive consultations with a wide range of people on this important issue from both sides. We are content with step taken by the government in pursuit of this goal,” assured Mufuruki. Steps taken include securing airplanes, building of roads, power projects and establishment of other types of physical infrastructure, the chairman said. As a result of the consultations, he explained, the private sector has submitted to the committee a draft policy on industries. Asked to shed light on the submitted document, Mufuruki said experts proposed the kind of industries to be given priority, the importance of research, the importance of having an education system that prepares students for the kind of work and life they will face after studies. “In that document we are calling for a fresh approach that pays sufficient attention to the capabilities of our people, the existing opportunities, economic empowerment of Tanzanians and...

As far as trading blocs go, the EU has been a global case study of turning a free market into a common market. Faced with notable challenges in the integration process such as the consecutive crises in the Exchange Rate Mechanism in the early 90’s, the EU defied all odds and continued to expand in depth and geography in a historic feat. However, only two years ago, this ideal trading bloc took a hit with the Brexit vote, which triggered a global conversation on regional trading, agreements and integration towards creating shared prosperity for the countries involved. In our own context, a snapshot of intra–EAC trade in the past few years will reveal tension-filled and sometimes hectic trade-relations, as well as an overall cloud of uncertainty on the future of the regional community.  Yet with our geographical advantages, natural resources and global reputation, the EAC holds huge potential to set the pace for the Africa Continental Free Trade Area (AfCFTA) and lead the continent into a new age trading with the world on an equal and mutually beneficial platform. Whilst there isn’t much comparison to be made with the EU, one indisputable thing is that their integration process was marred by political and social differences, especially with bringing on board Eastern-European countries. This often caused uproar in member states with populations demanding that their nations’ ‘needs come first’. Through the chaos, nonetheless, members designed new institutions with a view to open up markets and for ideological alignments. Our challenges in integration...

A team from the Department for International Development – United Kingdom (DFID-UK), has pledged to continue supporting Kenya Ports Authority (KPA) to achieve operational efficiencies especially in the area of innovation. Led by Head of DFID-Kenya, Julius Court and officials from Trade Mark East Africa, the team visited Mombasa Port where they were impressed by the degree of planning and investments at the port and vowed to continue with the collaboration. KPA General Manager Engineering services, Eng Rashid Salim and the Head of Corporate Development Martin Mutuku took the delegation through a presentation, followed by a tour of key facilities. Trade Mark East Africa collaborates with KPA in a number of projects including the Green Port Policy, one of the most significant projects that KPA is spearheading, to protect the environment. Last year KPA acquired 4 eco-hoppers funded by Trade Mark East Africa to reduce dust emission when handling dirty cargo. Source: Vash Media

The Africa Continental Free Trade Area (AfCFTA) is set to launch on 30th May. If every African country joins, it’s expected to be one of the world’s largest single markets, accounting for $4 trillion in spending and investment across the 54 countries. The AfCFTA will give entrepreneurs across the continent access to a much larger market. It's therefore important that young African entrepreneurs understand how the AfCFTA could benefit them and their ventures. As awareness is raised, entrepreneurs should begin crafting new trade roadmaps for their businesses, informed by the agreement. It's envisioned that the free trade area will lead to increased competition, innovation and prosperity for Africa’s people in the long term. But for the AfCFTA’s gains to be realized, entrepreneurs and policy-makers must be aligned. They must engage with each other to provide structure and clarity around how goods and services will move, and around the benefits that the agreement will bring to business. These discussions between entrepreneurs and the trade ministries of their country will also enable the review and updating of national trade policies, discussions which will benefit both the government and business communities. Source: Luvictatics

What is arguably Africa’s most ambitious economic programme in recent times is the African Continental Free Trade Area (AfCFTA), whose agreement was signed in Rwanda on March 21, 2018. Briefly, AfCFTA’s overriding objective is to create “a single continental market for goods and services, with free movement of people and investments”. If – and when – that happens, AfCFTA would become the world’s largest trade area, and the key to unlock the continent’s economic potential by making it that much easier for African countries to freely trade with one another. Indeed, a united African continent of 55 countries working towards common goals would be a major force on the global economic stage. To that end, 44 African state leaders signed the agreement last year, with half that number needed to ratify the same to move the project forward. In due course of time and events, Gambia became the 22nd country to ratify the agreement – joining some of Africa’s largest economies, including Egypt and South Africa – thereby crossing the threshold and officially setting in motion the wheels of project implementation. Despite meeting the 22-country threshold, the fact that Africa’s biggest economy, Nigeria, has yet to sign the agreement, let alone ratify the same, is likely to complicate the negotiations. And, while Tanzania, Burundi and South Sudan within the six-member East African Community signed the agreement, they have yet to ratify it. This is also another problem, especially when the negotiations involve regional economic blocs such as the EAC, which...

At their meeting in Arusha on Thursday 25th April,2019, members of East Africa Business Council (EABC) who teamed up with United Nations Economic Commission for Africa (ECA) said they foresee large potential gains from the AfCFTA, including an increase in intra-African exports of Eastern Africa by nearly Tshs.2.3 trillion ($1 billion) and job creation of 0.5 to 1.9 million `Together African economies have a collective gross domestic product (GDP) of $2.5 trillion, making it the 8th largest economy in the world. That makes the continent much more attractive to investment, both from within and from outside the continent, ` said Andrew Mold, the acting Director of ECA in Eastern Africa.`This should encourage business people to take advantage of AfCFTA and make the investments necessary to sustain economic growth and create employment, ` Mold added. EABC Chairman, Nick Nesbitt emphasized the importance of the continent having a clear vision to put an end to the fragmentation of the internal market. `I really applaud everybody who has been involved in creating the AfCFTA because their vision is the one of pan-Africanism,` Nesbitt said. `It is something our founding fathers aspired to. Our thanks to ECA for being at forefront of this conversation and pushing the agenda forward so that the continent becomes a single economic trading bloc, ` he added. Speaking at the same gathering, Director General of Customs and Trade at the East African Community Secretariat, Kenneth Bagamuhunda cited the experience of regional economic communities as the building blocks for the AfCFTA. `The AfCFTA should...

THE private sector has a crucial role to play in making regional integration work for East Africa and African continent in general as they are the ones that understand the constraints facing enterprises and take advantage of opportunities in trade agreements signed by governments. According to Trade Law Centre (TRALAC), the private sector is a major engine for sustainable economic growth and development, job creation and poverty alleviation in Africa and across the world. In Africa, the private sector accounts for 80 per cent of the total production, two thirds of investment, and three q uarters of credit, and employs 90 per cent of the working age population. In addition, 90 per cent of the firms within the African private sector are small and medium enterprises (SMEs). However these businesses’ participation in cross-border trade is limited due to tariffs, non-tariff barriers which include complex customs and trade procedures, lack of access to finance, high transportation costs and lack of access to information, among others. It is because of that the private sector is seen crucial in the implementation of the African Continental Free Trade Area which is about establishing a unified continental market with 1.2 billion potential customers and where the private sector is a major engine to make it happen. This was the tone from the discussions of the meeting held last week in Arusha about how the East African Private sector including Small and Medium Enterprises (SMEs) could benefit from the AfCFTA. The one-day meeting, organised jointly between...

As far as trading blocs go, the European Union (EU) has been a global case study of turning a free market into a common market. Faced with notable challenges in the integration process such as the consecutive crises in the Exchange Rate Mechanism in the early 90s, the EU defied all odds and continued to expand in depth and geography in a historic feat. However, only two years ago, this ideal trading bloc took a hit with the Brexit vote, which triggered a global conversation on regional trading, agreements and integration towards creating shared prosperity for the countries involved. In our own context, a snapshot of intra-East African Community (EAC) trade in the past few years will reveal tension-filled and sometimes hectic trade-relations, as well as an overall cloud of uncertainty on the future of the EAC. Yet with our geographical advantages, natural resources and global reputation, the EAC holds huge potential to set the pace for the Africa Continental Free Trade Area (AfCFTA) and lead the continent into a new age trading with the world on an equal and mutually beneficial platform. While there isn’t much comparison to be made with the EU, one indisputable thing is that their integration process was marred by political and social differences especially with bringing on board of Eastern European countries. This, many times, caused uproar in member States with populations demanding that their nations’needs come first’. Through the chaos, nonetheless, members designed new institutions with a view to open up markets and...

African industrialisation has to be among the most important things happening in the world right now. The vast continent, with a population of more than 1.2 billion people, is home to an increasing fraction of people who are still mired in extreme poverty: By 2030, the World Bank projects that almost all the people in extreme poverty will live in sub-Saharan Africa. The reason is twofold. First, Africa’s population is growing rapidly. Second, Africa has lagged in the industrialisation necessary to generate mass employment. The lack of strong, stable governments — a legacy of colonialism — has made it difficult to provide the education, infrastructure, court systems and other public goods that help prepare countries for the leap from subsistence farming to factory work. Well-meaning Western aid and international development agencies couldn’t fill the gap. Meanwhile, nations in East Asia and Southeast Asia became the world’s factories before Africa did. But late doesn’t mean never. Rising labour costs in China, and the threat of US tariffs are finally causing manufacturers to diversify their supply chains. Some of their factories will go to Vietnam and Bangladesh, two rising stars of the developing world. But those countries won’t be big enough to replace China, which means that if manufacturers really want to keep costs down, many will have to look to Africa. INVESTMENT This process is already well underway. In her The Next Factory of the World: How Chinese Investment Is Reshaping Africa, Irene Yuan Sun — a development-aid worker turned McKinsey &...

In March 2018, 44 African countries committed to the launch of a common market for Africa - the African Continental Free Trade Area (AfCFTA). Although 52 African countries have signed the agreement establishing the AfCFTA, so far 22 countries have ratified it; and 22 ratifications are needed in 2019 to enable it enter into force. The AfCFTA Agreement will enter into force 30 days after the required number of ratifications have been deposited with the AU. It is intended to bring together 55 member states of the African Union covering a market of more than 1.2 billion people and a combined gross domestic product (GDP) of more than $3.4 trillion. It will be the world’s largest free trade area since the formation of the World Trade Organisation in terms of participating member states. The Economic Commission for Africa (UNECA) suggests that the AfCFTA has the potential both to boost intra-African trade by 52.3 per cent (by 2022) by eliminating import duties (90 per cent), and to double this trade if non-tariff barriers are also reduced. The current intra-Africa trade fluctuates between 15 and 18 per cent only. There is a debate on what this means for African countries, with optimists arguing that the new agreement creates a fertile ground for the development of stronger and more productive economic ties, while the skeptics dismiss it altogether. This undertaking includes commitment by member states to progressively eliminate tariffs and non-tariff barriers to trade in goods and liberalise trade in services; cooperate on...