The East African Community (EAC) appears to be reverting to its original membership of Kenya, Tanzania and Uganda. The new EAC members, especially Rwanda, are a headache. Rwanda dared to shut down its border with Uganda. General Paul Kagame is turning Rwanda into an even more irrelevant and irrational entity in East African political economy. The problem begins with Kagame fantasying about Rwanda’s economic might. In his article published by The Wall Street Journal (WSJ) in 2013, Kagame boasted that Rwanda is “an economic lion.” Kagame further boasted: “There is a view that development is a marathon, not a sprint. We do not agree. Development is a marathon that must be run at a sprint. In our pursuit of progress, we have of course looked to East Asia’s so-called “tiger” economies for inspiration…So while being described as an “African tiger” is a welcome recognition of how far Rwanda has come, perhaps it isn’t quite right. After all, our continent has its own big cat. Step forward the new lions of Africa.” In reality, Kagame’s Rwanda does not compare to the original EAC members whether in terms of the size of their respective economies or their trade within the EAC. Let us analyze Kenya, Tanzania, Uganda, and Rwanda in terms of the size of their respective economies or their trade within EAC. The data used here are from the World Bank, 2017. Rwandan trade figures for 2017 come from the National Bank of Rwanda, as indicated. Kenya ’s economy and trade within EAC Kenya is by...

Seven years in the making, the Continental Free Trade Area is almost established. A minimum of 22 states is needed to bring the trade bloc into force; only 21 African states have so far ratified the agreement. Nigeria, the continent’s largest economy, is still considering whether to join the club. The idea of an African common market has been circulating for decades and it was adopted at an African Union heads of state conference in 2012. On 21 March 2018, 49 of the African Union's 55 member states signed the agreement. A minimum of 22 countries need to ratify the accord before Africa's single market can finally be launched. The Continental Free Trade Area (CFTA) will create an African common market worth $3 trillion where 1.2 billion people will be able to move freely. Rwanda’s President Paul Kagame, one of the leaders spearheading the CFTA, once wrote that “in Africa, our biggest threats are also opportunities”. He was referring to Africa’s booming youth population. “In less than a generation, it is projected that Africa will have the world’s biggest workforce. That means 1.1 billion working-age Africans, which is more than China or India,” said Kagame at the Africa CEO Forum in Kigali. “We don’t have any time to waste to do what is necessary, so that this statistic becomes Africa’s greatest asset, rather than a burden for our continent and the world.” Intra-African trade Trade among African countries is more costly than with Asia. According to Carlos Lopes, professor at the University of Cape...

The seventh edition of the Africa CEO Forum closed on a high note in the Rwandan capital Kigali with two Presidents, Rwanda’s Paul Kagame and Democratic Republic of Congo’s Felix Tshisekedi pledging commitment to support a new era of regional and bilateral cooperation to create new business opportunities that will transform the lives of all Africans. Both Presidents were present at the opening of the two-day Africa CEO Forum that was officially flagged off on Tuesday March 25, 2019 by the host leader Paul Kagame; with Togolese Faure Gnassingbé and Ethiopia’s Sahle-Work Zewde joining over 1800 business leaders from all over Africa. In a special and historic 30-minute session moderated by the Africa Report’s Editor in Chief Patrick Smith, the two presidents addressed issues that have shaped the largely frosty bilateral ties between the neigbouring countries often affecting integration initiatives such as cross-border trade due to conflict and resultant insecurity. Issues discussed by the two leaders included the future of bilateral ties between their two countries and whether long-lasting reconciliation is possible; they also discussed opportunities to collaborate on transformative projects such as investment in energy, mining and environmental protection. Kagame noted that regional instability will not be solved by playing blame games instead recommending that constant engagement with peers, is best, until mutually satisfying solutions are found. To the people of DR Congo and the region, President Tshesekedi has promised a new era of politics that seeks to burry historical hatchets and identifying with opportunities that benefit all. “We...

Africa still lags behind the rest of the world in its digital transformation, and in spite of a growing number of innovative solutions, the ongoing lack of adequate infrastructure and connectivity is preventing the continent from realising its true economic potential. The best and fastest way to overcome these barriers, may lie in heightened cooperation between countries and their various regulators. This is according to James Claude, CEO of Global Voice Group (GVG) (www.GlobalVoiceGroup.com) – a provider of IT solutions to governments and regulatory authorities – who says that while many countries in Africa are individually working to increase their infrastructure and digital capabilities, the most effective solution will be to approach these challenges from a regional perspective. While attending the 5thCrans Montana Forum in Dakhla, Morocco in March of this year, Claude noted that African governments have a crucial role to play in taking the continent to the next stage in its digital evolution. “Businesses, universities and young entrepreneurs are increasingly contributing to the digital economy and fostering innovation in Africa. Governments now need to work towards helping these private sector players to grow their solutions more rapidly and affect real change on the continent. This will require harmonising regulations that allow businesses and services to expand beyond country borders.” Africa’s potential as a global leader in the world’s digital economy grows significantly with each passing year. Africa’s population is increasing exponentially, and is expected to reach between 1.379 billion and 1.486 billion by 2025. In addition to this,...

At least four people are reported to have died, with hundreds hospitalized over complications associated with stomach pain, vomiting and diarrhoea after consuming a cereal supplied by the World Food Programme (WFP). The issue of food poisoning should not be treated as an isolated incident localised to Amudat or Uganda, East Africa and Africa. In 2009, hundreds of tonnes of maize and other assortments of genetically engineered foods were impounded in Mombasa, a lot of powdered milk and other relief items had been supplied as humanitarian aid, in what is today popularly known as the cancer belt of Kisumu. Attempts to explain away the damaging effects of genetically modified organisms (GMOs) in Kisumu have taken other twists, most commonly that the people in the cancer belt of Kisumu ate maize contaminated by afflatoxins. Because of the high stakes and power of the actors, the Kisumu incident and that of the GMOs intercepted on Port Mombasa seem to have been swept under the carpet and life allowed to continue. A few years ago, there was a related incident in Haiti in which a number of people died of the same conditions similar to what has just happened in Amudat. The CNN blamed the cholera outbreak on the UN soldiers, effectively sweeping the real problem under the carpet in Haiti. The world of scientific literature is awash with research published in peer-reviewed journals indicating how cattle, pigs, rats, etc., have died soon after feeding on GMOs. It is imperative that rigorous tests...

Rwandan President Paul Kagame said while opening the Africa CEO Forum at the Kigali Convention Center in Rwanda that 21 countries had ratified the Continental Free Trade Area. Ethiopia last week took the agreement through Parliament, becoming the 21st country to do so. For the trade deal that would create a market of $3 trillion and a market of 1.2 billion people with no tariff and border restrictions to be enforceable, 22 countries are required to ratify. The deal was negotiated over two years before being signed in Kigali last year. In panel discussions, President Kagame said political will was key to resolving challenges that confront regional economic groups. ‘CFTA does not solve problems people have to make it work,” the President said in reaction to suggestions that countries were hesitant to ratify because past experiences with integration such as dumping. “What is important is that the benefits of other arrangements and CFTA are not being questioned. It’s the only way to maximize on benefits such as job creation for the continent. Political will must come first as it allows things that must work to work,” President Kagame said. The seventh edition of The Africa CEO Forum opened with four Presidents and three other heads of government fervently calling for leading decision makers to help realize the ambition of CFTA. More than 1800 business and political leaders are in attendance. They are led by President Kagame, Ethiopian President Sahle-Work Zewde, Democratic republic of Congo President Felix Tshisekedi and Togo President...

The ease to invest in Rwanda is a fact that can greatly entice Japanese companies to invest in the country, Kenji Yamada, Japan’s parliamentary vice minister for foreign affairs has said. The official is in the country to attend the Africa CEOs Forum which started on Monday in Kigali bringing together over 1800 business leaders, top politicians and experts from different countries within and outside Africa. He came to Rwanda accompanied by a high level delegation of senior executives from 13 top Japanese companies including globally renowned car makers Toyota, Nissan, and Mitsubishi. According to Takayuki Miyashita, the Japanese Ambassador to Rwanda, the vice minister came to the country among other things to interact with African business leaders, as well as check on the reality of Rwanda’s business atmosphere especially in regard to the ease of doing business where Rwanda has been ranked second in Africa, with a steadily growing GDP per capita. “The Africa CEOs Forum is a good occasion to meet the business people of Africa and get to know what is happening in Rwanda and Africa by interacting with the CEOs. It is a good chance to listen to them,” said Ambassador Miyashita. In an interview, Vice Minister Yamada said that the investment environment in the country is good enough to attract investors from Japan. “One of the factors to attract investment from Japanese companies is the fact that Rwanda is the second easiest country to invest in Africa. To announce this fact to Japanese companies will be one...

The African Continental Free Trade Area (AFTA) is here and will formally be launched at the next summit of the African Union this July in Niamey in Niger. This is one of the biggest achievements and landmarks of all time to come out of Africa. Big and small economies including South Africa, Egypt, Ethiopia, Kenya, Ghana, Uganda, Rwanda, Namibia and Eswatini, are on board. Fifty-two of the 55 African countries have already signed the AFTA. Through sheer political drive, and against all odds, African political leaders have in a short period of time, of just over 12 months, brought into force the largest Free Trade Area in modern history. Africa has achieved the unthinkable. Only way back in 1995 did the world see a trade liberalization agreement on this scale when the World Trade Organization was formed, following which a backlash against unabated economic liberalism has been a significant force in the international economic order. The winning strategy has been proactive leadership by Africa’s Heads of State and Government. At the biannual summits, progress reports have been presented, for review of progress against set targets and timelines, and corrective action taken through clear guidance and instructions. They have reached out to each other to compare notes and mobilize their constituencies and negotiators to the effort. The dedicated champion for AFTA, President Mahamadou Issoufou of Niger, has been tireless in reaching out to his colleague Heads of State and Government, the African Union Commission and other stakeholders, and made an indelible...

Rwandan President Paul Kagame on Monday accused Uganda of erecting non-tariff barriers to trade in the region, which are detrimental to integration. Responding to a question by Ellen Giokos, a CNN business reporter, at the Africa CEO Forum in Kigali on whether the closure of the Gatuna border point was impacting economic integration in the East African Community, he cited past incidents in which Ugandan authorities have held goods in transit over flimsy reasons. “Mineral containers from Kigali to Mombasa were held in Uganda for five months...Kenyans who bought milk from Rwanda had containers held in Uganda for days until tens of thousands of litres were spoilt. Politics is behind this rather than anything else," he said. Last year, Ugandan authorities impounded two trucks belonging to Mineral Supply Africa transporting 40 tonnes of tantalum and tin valued at about $750,000 while on their way to Mombasa, claiming that the transporters were using forged tracking certificates. The trucks were later cleared and allowed to continue their journey to Mombasa after three months. President Kagame also told the delegates, among them Congolese President Felix Tshisekedi and Ethiopia’s Sahle-Work Zewde, that Uganda had imprisoned hundreds of Rwandans and denying them consular services. "We have our people imprisoned in Uganda in places that are not known. We have brought this up with Uganda for the past two years and are getting nowhere," he said. “We have three border points that connect us with Uganda and it is only one that is not working at...

President Paul Kagame has said politics is behind the Rwanda-Uganda border impasse and once again blamed Uganda for imposing non-tariff barriers that are detrimental to regional integration. Mr Kagame was addressing delegates from more than 60 countries that were attending the African CEO Forum in Kigali yesterday. He was responding to a question by Mr Ellen Giokos, a CNN business reporter, on whether the closure of Gatuna/Katuna border would not hamper efforts for economic integration of the East African Community. “Mineral containers leaving Kigali to Mombasa were held in Uganda for five months... Kenyans who bought milk from Rwanda had containers held in Uganda for days until tens of thousands of litres were spoilt. Politics is behind this rather than anything else,” Mr Kagame said. He was referring to an incident last year when Ugandan authorities impounded two trucks carrying a combined 40 tonnes of tantalum and tin valued at about $750,000 (Rwf650 million), belonging to Mineral Supply Africa, while on their way to Mombasa. The action threatened to sever the relations between both countries, with Ugandan officials claiming the trucks were transporting minerals using forged certificates. The trucks were later cleared and allowed to continue to Mombasa for shipping, after three months. Mr Kagame also told the delegates, who included President Felix Tshisekedi of DR Congo and President of Ethiopia, Mr Sahle-Work Zewde, that Uganda was imprisoning hundreds of Rwandans and denying them services. “We have brought this up with Uganda for the last two years and are getting...