Early this year, President William Ruto hinted at scrapping visa restrictions for African travellers within the continent. In his speech during the opening of the Private Sector Dialogue on the African Continental Free Trade Area (AfCFTA), the President stated that Africa must work towards integrating more, eliminating barriers to international trade and pushing for the establishment of a more secure, reliable and efficient cross-border payments system that will deepen financial inclusion and foster growth in the continent. “This is home. We support wholeheartedly the AfCFTA and we must remove any impediments to the movement of people around our continent. Africa presents an attractive and expansive market for investors seeking new business opportunities,” President Ruto said. In his commitment to ensure that this happens, the president has ensured that more countries allow Kenyans to travel without visa restrictions. Apart from South Africa, Eritrea, Senegal, Comoros and Djibouti, are now on the list. Consequently, according to the latest Henley Passport Index Report, the Kenyan passport has improved six places in the global mobility rank to position 67 from 73 and now occupies the seventh position as one of Africa’s most powerful passports. Destination of choice When it comes to tourism, there has been an impact to business operators who offer packages in regional travels. For instance, following the removal of the visa restrictions to South Africa, it is said that close to 10,000 Kenyans visited South Africa in the first quarter of the year. Data released by South Africa Tourism indicate that...

Food prices remain relatively high in Africa from the economic turbulence occasioned by the Russia-Ukraine war and the Covid-19 pandemic, but in Kenya, they are alarmingly high. Data from the UN Food and Agriculture Organisation (Fao) shows that globally food prices have substantially decreased since the peak in March 2022, and continue on a downward trajectory. The Fao Global Food Price Index, which measures the change in prices of a basket of five food items – including meat, dairy, cereals, oil and sugar – has dropped by 37.4 points since March 2022. In Kenya, however, the inflation rate was 7.9 percent in June, driven mostly by a rise in prices foods and non-alcoholic beverages, which have increased by 10.3 percent since last year, according to latest data by the Kenya National Bureau of Statistics (KNBS). Other countries in the region, although still grappling with inflation, are recording easing food prices, albeit at a pace slower than the global food prices. Tanzania, for instance, reported an inflation rate of 3.6 percent in June, a slowdown from the 4.0 percent in May. Food prices increased by 7.8 percent in the past year, but are on a downward trajectory, having fallen by 0.3 percent between May and June, figures from the National Bureau of Statistics show. Uganda trends In Uganda, general consumer prices, including food, have relatively been stable for the past six months, based on data from the Uganda Bureau of Statistics. So, why are Kenyan consumers still paying so much for food?...

The South Sudan Public Procurement and Disposal of Assets Authority (PPDAA) says its board members are currently visiting their counterparts in the East African Community (EAC) to benchmark on their procurement systems. Speaking during a visit to the PPDA Offices in Kampala yesterday, Mr Deng Akuei Kak, the executive director PPDA, said they seek to understand the procurement systems used by their peers before they can join the East African Public Procurement system. “We have come here to meet our counterparts. We came as a board because we are joining the East African Public Procurement System. Uganda has offered us the experience they have so that the delegation gets to know the procurement system in East Africa based on South African law,” he said. Mr Deng explained that when the East African Community member states made the laws, South Sudan was not part of the process but now they have come here to complete the process, study the documents and see how the systems run before they can establish their own. According to Mr Benson Turamye,  the executive director of Public Procurement and Disposal of Public Assets Authority Uganda, they shared with their South Sudan counterparts the procurement reforms that they have implemented since 2003. “South Sudan got independence in 2011 and they established the PPDA Act in 2018.They do not have regulations and structures but they have established an office equivalent to PPDA Uganda; they have 26 staff running the body,” he said. Mr Turamye said it is important...

The stewardship of the Tripartite Free Trade Area (TFTA) has changed hands with COMESA handing over the chair of the Tripartite Task Force (TTF) to the Southern African Development Community (SADC). The handing over was conducted on 14 July 2023 during the 36th TTF meeting on the sidelines of the 5th Africa Union Mid-Year Coordination Review Meeting in Nairobi, Kenya. COMESA Secretary General Chileshe Kapwepwe handed over to her SADC counterpart Amb. Alias Mpedi Magosi. The TTF is responsible for the coordination of the TFTA programmes, and its leadership rotates among the chief executives of the three regional economic blocs.  COMESA took over the chair from the East African Community in July 2022. Speaking at the function, Ms Kapwepwe underscored the importance of the Tripartite FTA in addressing economic development challenges and fostering Africa’s continental economic integration. She highlighted the achievements realized during COMESA’s tenure under the three pillars of the tripartite, namely market integration, infrastructure development and industrial development. Specifically, under market integration pillar, she said 11 Member States have so far ratified the Tripartite FTA and that only three were required to reach the requisite 14 ratifications.  Substantial progress has however been realized under negotiation of Tripartite Rules of Origin and developing of systems to address non-tariff barriers to trade. She emphasized the need to strengthen coordination and collaboration between the TFTA and the AfCFTA processes to avoid duplication of efforts, wastage of resources and possible conflicts. She thanked SADC and EAC Secretariats for their steadfast support in...

In Summary KEBS ensures that products conform to quality and safety requirements, enabling Kenyan businesses to compete effectively in the African market. The stage is set, and the time is now. As Africa charts a path toward economic growth and development through the African Continental Free Trade Area (AfCFTA), it is essential that we acknowledge the potential impact on the lives of diverse industry players. The success of this initiative will not only benefit governments and businesses but also have a profound impact on the daily lives of ordinary Africans, touching the very fabric of their existence. Indeed, the transformative power of the AfCFTA cannot be understated; as an African proverb wisely reminds us, "When the music changes, so does the dance." This shift in rhythm ushers in a new era filled with a multitude of opportunities, challenges, and aspirations waiting to be seized and fulfilled, thus creating a harmonious symphony of progress across the continent. To ensure the realisation of the AfCFTA’ s potential, key stakeholders such as the Kenya Bureau of Standards (KEBS) and the African Organisation for Standardisation (ARSO) have been actively working towards increasing intra-African trade and facilitating the implementation of the AfCFTA. KEBS, as a leading standardisation body in the region, plays a vital role in enhancing intra-African trade. The organisation has been at the forefront of efforts to develop and implement harmonised standards that promote trade and economic integration within the continent. It ensures that products conform to quality and safety requirements, enabling Kenyan...

The Government of Zambia, through the Ministry of Commerce, Trade and Industry (MCTI) has signed an agreement with the United Nations Conference on Trade and Development (UNCTAD) to modernize customs procedures using the Automated System for Customs Data (ASYCUDA). The ASYCUDA is an integrated customs management system for international trade and transport operations in a modern automated environment. It has advanced software applications which are designed and developed for customs administrations and the trade community to comply with international standards when fulfilling import, export and transit related procedures. The Zambia Revenue Authority (ZRA) is a key beneficiary of the system which is being provided under the MCTI Zambia Border Posts Upgrading (ZBPUP) Project, funded under the 11th European Development Fund, COMESA Trade Facilitation Programme. The ASYCUDA support to ZRA is valued at €548,000 and will involve strengthening of existing automated customs processes through harmonisation of clearance processes in all customs offices and ensuring that there is adherence to the agreed customs and trade facilitation principles and procedures. It will involve automation of the remaining processes on the Automated System for Customs Data world system and deployment of new ASYCUDA functionalities. These improvements will be made available and configured with the use of the latest ASYCUDA World version of the software, already deployed at ZRA, so as to maximize the benefits for the customs authority. Once fully operationalised, it is anticipated that, this support will ultimately speed up customs clearance processes, improve revenue control and reduce legacy related administrative challenges faced...

Realising the benefits and opportunities of the African Continental Free Trade Agreement (AfCFTA) requires proactive collaboration between all levels of government and businesses, says Director of Africa Bilateral Economic Trade at the Department of Trade, Industry and Competition, Calvin Phume. Phume was addressing the AfCFTA awareness workshop, which took place in Bloemfontein, in the Free State. The workshop was part of a nationwide series aimed at equipping export-ready South African Small, Micro and Medium Enterprises (SMMEs), private sector, women and youth-owned enterprises with knowledge on the benefits of trading under the AfCFTA, The AfCFTA is a flagship project of the African Union’s (AU) Agenda 2063 and aims to build an integrated market anchored on development integration. It seeks to enhance intra-African trade through progressive elimination of tariffs, introduction of rules to manage non-tariff barriers among other things, opening up vast markets of over 1.3 billion people and a combined GDP of over $3.4 trillion. Phume said beyond the policy transformation and reforms, the AfCFTA seeks to ensure inclusivity of women and youth, including youth in the rural areas, development of SMMEs and overall industrialisation of the Continent. “Africa has the youngest population in the world, with 70% of the population under the age of 30. Women make significant contributions to cross-border trade in many African countries. “However, women and young people face challenges such as underemployment, lack of opportunities and other structural and financial challenges that hinder their ability to trade. “The AU Assembly took a cautious decision to also...

A mobile laboratory was handed over to the Ministry of Health of Uganda on Wednesday in Kampala, Uganda, as part of an ongoing European Union-funded Programme to support countries in the IGAD region to strengthen surveillance and the healthcare system. The mobile laboratory will be stationed in the Central Health Laboratories at Butabika- Ministry of Health Headquarters. The mobile lab, worth EUR 167,300 (approximately 700 million Uganda Shillings), will be used to collect specimens from suspected patients across the country and within the cross-border areas in case of an outbreak of an infectious disease and for sample transportation to the nearest lab for testing. The mobile laboratory will help the medical workers to reach out to the patients from the cross-border areas, areas of emergency response, truck drivers in main truck stops and parking areas as well as people crossing the border in case of mass population movement or displacement. The mobile lab was handed over to the Minister of State for Health (Primary Health Care),  Margaret Muhanga Mugisa by the Deputy Ambassador of the European Union in Uganda, Ambassador Guilaume Chartrain and witnessed by IGAD officials represented by the Health Expert EU-IGAD Response Programme – Dr. Hamid Idrees on behalf of the Director IGAD Health and Social Development Division as well as representatives from the UN family and senior Ministry of Health officials. Previously under the programme, an advanced and two standard ambulances; 803,230 PPEs (Personal Protective Equipment), 25,056 COVID-19 test kits were delivered to the Ministry of Health...

Heads of African Commodity Exchanges from Ghana, Nigeria, Tanzania and Ethiopia have identified the standardisation of commodities as a significant challenge in their respective countries’ efforts to take advantage of the African Continental Free Trade Area (AfCFTA). The volume of trade on the Ghana Commodity Exchange (GCX), APEX Commodity Exchange and the Egypt Commodities Exchange is 2,037.1539; 526,850; and 130,354.200, respectively. The Chief Executive Officer of Ghana Commodity Exchange (GCX), Tucci Goka Ivowi, emphasised that achieving a universal commodity standard remains a persistent challenge in the cross-border market. He also highlighted the expectation of similar issues as African countries expand their trade across borders. Resolving this challenge requires recognising what is widely acceptable in intra-African trade, which would serve as a minimum standard. Speaking as a panellist at a webinar organised by the GCX on the theme ‘Preparedness of African Commodity Exchanges for AfCFTA’, Ms. Ivowi maintained that commodities – despite being simpler products compared to processed and branded goods – have numerous complexities. While she expressed optimism about the continent’s ability to overcome these challenges, she cautioned that it will take time to achieve fully harmonised standards across countries. She urged stakeholders to be prepared for the time-consuming process. The Director of Trade in Goods and Competition at the AfCFTA secretariat, Mohammed Ali, suggested that addressing the issue of standards could involve identifying a specific group of commodities of interest and finalising their standards. He further explained that harmonising the standards can be achieved by leveraging the AfCFTA’s convening...

Small and medium enterprises (SMEs) are critical to economic growth in Africa. Financing is a challenge for SMEs in Africa, but other factors are also critical to SME growth on the continent. A healthy and expanding small business segment in Africa increases employment, broadens the tax base, grows national revenue and frees African governments to fund social and economic infrastructure. Although small and medium businesses (SMEs) account for 95% of all registered businesses and contribute about 50% to the total GDP of sub-Saharan countries, entrepreneurs still face significant obstacles to growth and prosperity, which go beyond the traditional barrier of acquiring finance. Addressing their needs and ability to reach their potential is essential to creating a prosperous Africa. About 40% of SMEs in developing countries grapple with access to finance. This indicates that the financial sector generally struggles to understand and serve SMEs. Balanced against this must be that information irregularity in financial markets has left many small enterprises knowledge poor. Lack of available collateral or cash flow data means financial service providers often view SMEs as too risky. Another critical factor impacting SMEs is bureaucratic onboarding procedures. And, vetting and financial procedures can also place additional pressure on small businesses, especially when they cannot access the warranties, assets and resources that some financial institutions require. A lack of infrastructure isolates SMEs from markets, opportunities and access to capital. Business owners, because of unaffordable wage costs, are often forced to undertake tasks that are not within their skill sets. Inevitably, aspects of the business...