In the recently released World Economic Situation and Prospects for 2018 report, Africa’s economic growth for 2019 is projected at 3.4%, a marginal increase of 0.9% from 2018. What do countries need to do to accelerate economic growth? Low productivity is a problem. There must be higher uptakes in innovations and new technologies to propel productivity in the agriculture and small-scale enterprises. Agricultural modernization in most countries is low, as it is still rudimentary, not capitalized and not commercialized. This means we have a huge potential there. The continent’s economies are vulnerable to the volatility of commodity prices in the global market. That’s why diversification is the solution. Africa must diversify its agricultural products, and add value to its primary commodities and exports to avoid exporting its jobs to the rest of the world. In 2003 African leaders met in Maputo, Mozambique, and agreed to invest at least 10% of their national budgets in agriculture. Only a few countries have met that commitment. Why is this so? Fifteen years after the Maputo Declaration, only seven countries—Burkina Faso, Ethiopia, Niger, Mali, Malawi, Senegal and Zambia—have consistently met this target. In fact, countries like Malawi even went beyond the target, achieving as high as 21% in 2013 compared to the average of 3.1% for sub-Saharan Africa. Several factors account for underinvestment in agriculture in Africa. The implementation of the Structural Adjustment Programme in Africa reduced agriculture financing; low international funding of agriculture weakens policy space for agricultural spending; low political will to...

At their meeting in Arusha this week, members of East Africa Business Council (EABC) who teamed up with UN 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 US$ 1 billion and job creation of 0.5 to 1.9 million. “Together African economies have a collective gross domestic product of U$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, 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 founders 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 East African Community Secretariat, Kenneth Bagamuhunda cited the experience of regional economic communities as the building blocks for the AfCFTA. “The AfCFTA should build on what has already...

COMESA, to which Uganda is a member, has become the first regional trading bloc to launch an online seed label verification system in Africa and globally. The system will assist the region eliminate cases of fake seed and boost trade in quality and improved certified seed. The region has also scored another first by introducing COMESA Regional Certificates to be issued by National Seed Authorities and this is also expected to boost seed trade in the 21 countries. Pedigree Global Strategy Director Mr Selorm Branttie has since commended COMESA for the launch which has been done through the Alliance for Commodity Trade in Eastern and Southern Africa (ACTESA) Seed programme. He was speaking at the COMESA Secretariat during the two-day training held on 24th – 25th April 2019 for seed companies on ordering, use and trading using the COMESA Seed labels and Certificates. “This is the first time that seed certificates and verification of the seeds will be done electronically, and the farmer will be able to trace the source of the seed and authenticity of the seed without difficulty,’’ Mr Branttie added. He emphasized the need to eliminate the trade and use of fake seed saying it has greatly contributed to the poor performance of 80 million small-holder farmers and food insecurity in the COMESA region. Mr Branttie, who conducted the training, said the seed labels and certificates will promote the use of genuine seed and eventual elimination of fake seed from circulation. ACTESA is implementing this programme through...

East African business community leaders on Friday called for concerted efforts to fast-track the realization of the African Continental Free Trade Area (AfCFTA). East African business leaders, who have been convening on the potential benefits of the AfCFTA for the private sector under the umbrella of the UN Economic Commission for Africa (ECA), on Friday urged for the realization of the continental free trade pact, the ECA said in a statement on Friday. The ECA, which brought together some 40 key East African business leaders on Thursday in collaboration with the East African Business Council, in meeting outcome statement issued Friday revealed that the region's business community representatives' common position, reiterating their support to the ambitious free trade pact. "The AfCFTA is not simply a free trade agreement. It's 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," private sector leaders said after the meeting. The ECA, which stressed "large potential gains" from the free trade pact, also projected an estimated a 1 billion U.S. dollars increase in the exports of eastern African countries, as well as close to 1.9 million new job opportunities in the region. Once operational, the AfCFTA is projected to boost the level of intra-Africa trade by about 52 percent by the year 2020, according to figures from the ECA. The AfCFTA, which was launched in Kigali, capital of Rwanda, in March 2018, mainly aspires to create a tariff-free continent that...

The push to boost intra-regional trade, cross-border investment and economic integration in Africa has reached a pivotal phase. This April, Gambia became the 22nd country in the continent (Kenya was among the first ones) to ratify the Africa Continental Free Trade Agreement, helping the historic trade deal gather the minimum required ratifications to come into full effect. Signed last year in Kigali, the capital of Rwanda, the AfCFTA presents Africa with a golden opportunity to unleash the power of its industries, create jobs for the masses of unemployed youth and fast-track development. Most rich industrialised countries started the regional integration journey in the 1960s, meaning that their industries have enjoyed access to larger markets outside national borders for close to six decades. This head start in cross-border trade and investment explains why industries in these countries enjoy crucial competitive advantages such as economies of scale and specialisation. When firms produce at scale, which is possible if they have easy access to markets outside their national borders, they not only manage costs better and hence get more profitable, but also find it easier to specialise in one area. Firms become better at making any product they specialise in, allowing them to build comparative advantages, price their products more competitively and create well-paying quality jobs. The push to boost intra-regional trade, cross-border investment and economic integration in Africa has reached a pivotal phase. This April, Gambia became the 22nd country in the continent (Kenya was among the first ones) to ratify the...

The regional business community on Thursday held discussions in Arusha, Tanzania about how the East African Private Sector, including Small and Medium Enterprises (SMEs), could benefit from the African Continental Free Trade Area Agreement (AfCFTA). The meeting largely observed that the AfCFTA is not simply a free trade agreement since it is about establishing a unified continental market with 1.2 billion potential customers with the private sector regarded as a major engine to make it happen. The one-day meeting was organised by the East African Business Council (EABC) and the UN Economic Commission for Africa (ECA). Close to 40 key players from the region’s private sector attended. Early this month, the trade deal got the minimum required ratifications after the Gambia became the 22nd country to ratify it. Nick Nesbitt, EABC Chairperson, emphasised 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 one for pan-Africanism. It is something our founding founders aspired to,” Nesbitt said. The United Nations Economic Commission for Africa Eastern Africa Sub-regional office estimates large potential gains from the deal. These include an increase in intra-African exports of Eastern Africa by nearly $1 billion and job creation of 0.5 to 1.9 million. “Together, African economies have a collective GDP of 2.5 trillion USD, making it the 8th largest economy in the world. That makes the continent much more attractive to...

That will be decided during the forthcoming African Union meeting slated to take place in the next three months, according to the officials who gathered in Arusha this week. The proposed African Continental Free Trade Area isn't simply a 'Free Trade Agreement' it's about establishing a unified continental market with 1.2 billion potential customers and where the private sector is the major engine to make it happen. This was the tone from the discussions of the meeting held in Arusha about how the East African Private sector including Small and Medium Enterprises (SMEs) could benefit from the African Continental Free Trading Area (AfCFTA). The one-day meeting, organised jointly by the East African Business Council (EABC) and the UN Economic Commission for Africa (ECA), convened close to 40 key players from the region’s private sector. The office for Eastern Africa of ECA estimates large potential gains from the AfCFTA, including an increase in intra-African exports of Eastern Africa by nearly US$ 1 billion and job creation of 0.5 to 1.9 million. "Together African economies have a collective GDP of 2.5 trillion USD, 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, 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". Nick Nesbitt, chairman of EABC, emphasised the importance of the continent...

At their meeting in Arusha this week, members of East Africa Business Council (EABC) who teamed up with UN 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 US$ 1 billion and job creation of 0.5 to 1.9 million. "Together African economies have a collective gross domestic product of U$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, 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 founders 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 East African Community Secretariat, Kenneth Bagamuhunda cited the experience of regional economic communities as the building blocks for the AfCFTA. "The AfCFTA should build on what has already...

Arusha. Comesa and the South African Development Community (Sadc) blocs remain the leading trading partners for the East African Community (EAC). Statistics indicate so even as the envisaged African Continental Free Trade Area (AfCFTA) is set for launch in July. EAC partner states' exports to the Tripartite Free Trade Area (TFTA), made up of Sadc, Comesa and the Community itself, were worth $ 2.5billion between 2010 and 2016. During the same period, EAC exports to the rest of Africa on average amounted to $ 312.4million, a report has indicated. The Democratic Republic of Congo (DRC) is leading the pack with a 29.7 per cent share of exports from the EAC. It is closely followed by the continent's economic power house, South Africa, with a 29.5 per cent of the shares, according to the East African Business Council (EABC). Other leading trading partners for the Community were Egypt and Zambia (9.5 per cent each), Sudan (7.2 per cent) and the Comoros 3.8 per cent. DR Congo also leads in imports to the EAC with a 39 per cent share followed by Somalia (28 per cent, Nigeria (11 per cent) and Morocco and Algeria 5 per cent and 3 per cent respectively. The brief was released during last week's meeting here to deliberate on the road map by EAC on the continental free trade pact. TFTA is made up of EAC, Sadc and the Common Market for Eastern and Southern Africa (Comesa) and was initiated to become the continent's single economic bloc....

> Arusha. The East African Community (EAC) admitted yesterday that tariff liberalisation was a challenge to the proposed continental free trade area. It says a mechanism has to be worked out on how tariffs would be liberalised without affecting the economies of various trading blocs. “Tariff liberation has not been easy and there has to be a mechanism to negotiate it,” said Mr Kenneth Bagamuhunda, the EAC director general of Customs and Trade. He was speaking during a meeting on the role the private sector on the African Continental Free Trade Area (AfCFTA) expected to come into force in July this year. The trade pact was unveiled by the African Union in Kigali, Rwanda, a year ago and is aimed at boosting intra-African trade currently estimated to be a half of its potential. He said EAC would negotiate on tariff liberalisation within the continental FTA framework “in a holistic way and as a bloc”. He added that the East African Business Council has been given a platform to spearhead the negotiations on behalf of the bloc. Source: The Citizen