Summary A number of African countries have enacted visa application process rules that could take up to more than 72 hours for one to get a visa. African states currently import $36.8 worth of logistics goods, from passenger freight and transport to parcel and courier services every year. The World Economic Forum expects an increase in intra-African freight demand of 28 percent, translating to additional demand for almost 2 million trucks. The umbrella bodies of the African Continental Free Trade Area (AfCFTA) private sector have called for the removal of visas and reduction of custom processes to ease movement of goods within the African continent. The African Business Council (AfBC) that brings together regional economic communities (RECs) decried inconsistent and inadequate freight and logistics at the borders saying they have long hindered intra-African trade. Speaking during the official opening of the AfCFTA Business Forum held last week at the Cape Town International Convention Center in South Africa, the AU Commission Deputy Chairperson Monique Nsanzabaganwa disclosed that so far, 47 member states had ratified the agreement but decried the existence of many non-tariff barriers to trade, especially transport logistics. “A number of instruments have been put before you to start trading under the AfCFTA, and these include the AfCFTA e-Tariff Book, the Rules of Origin Manual, the African Business Council, the Pan-African Payments and Settlement System (Papss), and the AfCFTA Dispute Settlement Mechanism, among others. All these instruments and tools are designed to ensure that legitimate business transactions thrive,” said Dr...

What you need to know: The AU Peace and Security Council held its 1144th open session, which was dedicated to discussions on integration of  women, peace and security agenda in the implementation of African Continental Free Trade Area. The council reaffirmed the critical role women traders play in the eradication of household poverty. The African Union (AU) Peace and Security Council has applauded African governments and its partners for launching initiatives empowering women cross-border traders. During its 1144th open session, dedicated to discussions on integration of women, peace and security agenda in the implementation of African Continental Free Trade Area (AfCFTA), the council reaffirmed the critical role women traders play in the eradication of household poverty. It, however, expressed concern that the gains made in unlocking the economic potential of informal cross-border women traders is under constant threat of being rolled back by conflicts in AU member states. “[The Council] notes with deep concern that women continue to be disproportionately affected in conflict and post-conflict situations, including the adverse impact faced by women traders,“ it noted in its communique released after the session. According to United Nations Conference on Trade and Development, informal cross-border trade represents up to 40 per cent of regional trade in Africa, with women being the largest shareholders. They constitute 70-80 per cent of the informal traders in the region. The informal economy is a major employer in Africa absorbing 30 and 90 per cent of total non-agricultural employees. In countries such as Benin, Tanzania and...

Construction work to build four one-stop border posts along the highway linking Mozambique and Malawi is due to start in 2024. The initiative is part of the Southern Africa trade and connectivity project and will facilitate the movement of people, stimulate international trade by reducing costs between Mozambique and Malawi, as well as facilitate the coordinated and efficient border control and movement of people and customs clearance of goods at the one stop border posts of Mandimba in Niassa, Milanje in Zambezia and Zóbué and Calómuè in Tete. Southern Africa’s infrastructure, trade and connectivity coordinator, Paulo Baúque, told Radio Mozambique (RM) that Mozambique is advanced in this process. “The hiring of the consultant for the Mandimba border in Niassa and the feasibility studies are proof of progress,” he said, and for the remaining three borders the process of hiring the consultant has not yet been concluded. Baúque also said that US$30 million from the World Bank was available for the three borders, which will take two years to build. On the Malawian side, specifically in Dedza and Mwanza, which border Calómue and Zòbuue in Tete province, respectively, work of this kind has already been concluded. A similar project has already been implemented between Malawi, Zambia and Tanzania. Read original article

Stakeholders from across the public and private sectors pledged to strengthen collaboration with Governments to address infrastructure deficit, ineffective trade facilitation processes, and invest in innovation and technology to promote trade across borders in Africa, to accelerate sustainable development. This commitment was made at the maiden Africa Sustainable Supply Chain Summit hosted by the International Chamber of Commerce (ICC) in Ghana, in partnership with the United Nations Development Programme (UNDP), and the Africa Investment Group in Accra on 29-30 March 2023. “Growing competitive African businesses for the One Africa market requires better supply chain governance and more investment by multiple actors including diaspora investors. It requires collaborative approaches to attract innovative and new forms of financing for MSMEs”, said Angela Lusigi, UNDP Resident Representative in Ghana. Ms. Lusigi called for new partnerships to ensure that supply chains are sustainable and work to facilitate made in Africa, supplied by Africa, and moved by Africa. The summit drew on key information on Africa’s trade infrastructure deficit which is estimated between 68-108 billion dollars per year. Against this backdrop, the Secretary General of the African Continental Free Trade Area (AfCFTA) Secretariat, Wamkele Mene, while speaking at the Summit noted that, “there must be more investment in adequate infrastructure and infrastructure that supports trade to address Africa’s needs to double intra-Africa trade by 2025”. The Deputy Minister of Trade and Industry, Hon. Michael Okyere Baafi pledged the Government of Ghana’s commitment to facilitating trade across borders. “We will work closely with the ICC, UNDP,...

ABUJA, NIGERIA – ECOWAS Ministers in charge of the national tourism sectors in member states have come together to give the tourism in West Africa great boost with the validation and adoption of the regulatory texts of the Tourist Accommodation Establishment in the ECOWAS region, Friday, 7th April 2023. This working document with recommendations was presented to the ministers by tourism experts who spent the last 3 days drafting a well-researched legal framework that covers all aspects of hotel accommodation classification and grading. Mrs. Massandjé Toure-Litse, ECOWAS Commission’s Commissioner for Economic Affairs and Agriculture, in her welcome address, on behalf of the President of the ECOWAS Commission, His Excellency, Dr. Omar Alieu Touray expressed her sincere appreciation to the Honarable Ministers for accepting to be part of a historic event in the tourism sector. She also extended ECOWAS’ sincere gratitude to the President of Togolese Republic, His Excellency Faure Essozimna Gnassingbe, for accepting to host this all important meeting as the ECOWAS takes key steps towards adopting relevant instruments to give a boost to our tourism sector in line with emerging trends and hailed the critical role played by the Government of Togo in the integration and economic development of ECOWAS since its establishment which is reiterated by the presence and the support received in the facilitation this meeting from Dr. Lamadokou Kossi Honorable Minister of Culture and Tourism of Togo and his very able team. She further praised the tenacity and commitment of the Member States in the development of tourism industry which will ECOWAS a tourist...

Tanzania and Burundi are planning to build an electrified Standard Gauge Railway (SGR) line that will initially connect the two countries and pass through the Democratic Republic of Congo (DRC) as the countries look to tap the African Continental Free Trade Agreement (AfCFTA), the world’s largest single market. The railway line will be about 282 kilometers long and will be built from Uvinza in Tanzania, across the international border along the Malagarasi river to Musongati, and onwards to Gitega, both in Burundi. According to the tender document, the two governments have floated a tender for designing and constructing the railway line and have applied for construction funding from the African Development Bank. The estimated cost of the Tanzania-Burundi railway project is $900 million Reuters reported. The project will be financed jointly by the two countries governments, and the financial details of the project will be released soon. The railway project will be implemented for a period of five years. Upon completion, it will become Africa’s second cross-border electrified rail after Ethiopia and Djibouti launched the continent’s first fully electric multinational railway line in 2016. Tanzania has recently begun an aggressive push to modernize its railway infrastructure, revamping its aging regional rail networks to facilitate cross-border trade. The Turkish firm Yapi Merkezi is currently working on the construction of the 1,457-kilometer SGR line from Dar es Salaam to Morogoro, which is expected to be completed in 2024. Read original article

In Summary The countries are investing heavily in expanding and rehabilitating existing ports as they roll out newer facilities. The Mombasa Port and Northern Corridor Charter is aimed at ensuring Kenya remains a leading gateway to the region. Mombasa could lose out to neighbouring facilities if stakeholders fail on key performance indicators, mainly under the Mombasa Port Charter, its leadership has warned. While some signatories, mainly state agencies, have lived up to the set targets, a number of entities both public and private sector have slowed down on key implementations which could affect efficiency, the Mombasa Port and Northern Corridor Charter steering committee now says. The charter was signed in July 2014, during former President Uhuru Kenyatta’s tenure, where a total of 13 public entities committed to improve movement of cargo from the port into the hinterland. The second edition of the Mombasa Port and Northern Corridor Community Charter 2019 (the Charter), proclaims the desire of the Port and Northern Corridor community to realise the full trade facilitation potential of the port and Northern Corridor. It is the culmination of extensive consultations with private and public sector stakeholders, including government agencies, the business community, civil society organisations and special interest groups, on the upgrading and improvement of logistics services. The Steering Committee for the Charter - comprising the Shippers Council of Eastern Africa (SCEA), the Kenya Maritime Authority, tKenya Ports Authority, Kenya Revenue Authority, Kenya Trade Network Agency, TradeMark East Africa, Kenya Ship Agents Association and the Northern Corridor Transit and Transport...

Ghana has declared intentions to maximise gains from the African Continental Free Trade Agreement (AfCFTA) through strengthening of commercial ties with Kenya. As a result, it is planning to establish an Export Trade House (ETH) next month in Kenya as part of measures to promote trade relations between the two countries. When established, the ETH would serve as a special vehicle that specialises in facilitating transactions between a home country and foreign countries. It will be positioned at a central location where Made-in-Ghana products can be shipped, displayed and distributed in Kenya and other countries in East Africa. The trade house is being established because exports have become a tool the government must embrace to improve and promote the country’s products to the global market. To this end, Ghana will organise a three-day business expedition before the trade fair to highlight the goods it plans to export into Kenya. Stakeholders including the Ministry of Trade and Industry (MoTI), the Association of Ghana Industries (AGI), the National AfCFTA Coordination Office (NCO) and the Ghana Export Promotion Authority (GEPA), are working together to organise the exhibition. Trade barriers between the nations of East and West Africa have historically been low because of regulatory restrictions. Nonetheless, many African countries are now trading more independently thanks to the AfCFTA, the largest free trade area in the world. World Bank report According to the World Bank, the African Continental Free Trade Area could deliver far greater benefits in terms of jobs, growth and poverty reduction...

Cape Town, South Africa – The AfCFTA Business Forum is set to take place on 16-18 April 2023 at the Cape Town International Convention Centre in South Africa, under the patronage of H.E. President Cyril Ramaphosa. The forum aims to accelerate the implementation of the African Continental Free Trade Area (AfCFTA), the world’s largest free trade area in terms of participating countries. The AfCFTA brings together 55 countries with a combined GDP of $3.5 trillion and a market of 1.4 billion consumers. Its aim is to boost intra-African trade, raise Africa’s trading position on the global market, and accelerate economic growth, industrialization, production, and job creation. The AfCFTA Business Forum seeks to create awareness of the current business and investment opportunities in the AfCFTA among Africa’s business community. It also aims to establish a private sector engagement platform for continued consultations on private sector needs in the implementation of the AfCFTA, and promote a private sector-friendly environment, especially for MSMEs led by Women and Youth, to unlock more accessible and affordable access to finance and markets. The forum invites broad participation of Africa’s private sector, strategic investors, financial institutions, investment promotion agencies, business councils, chambers of commerce, multinational corporations, African women and youth business organisations, as well as Heads of States and Government, and AfCFTA Partners. With the completion of phase I of the AfCFTA and components of phase II covering Trade in Goods, Trade in Services, the Dispute Settlement Mechanism, Investments, Competition Policy, and Intellectual Property Rights, the AfCFTA Business Forum...

Summary Queries are being raised about a slowdown in growth of manufacturing value addition within the East African Community bloc Arusha. Queries are being raised over the falling manufacturing value addition (MVA) in the East African Community (EAC) bloc. The trend fell short of the annual growth rate envisaged under the region’s industrialisation drive. “We are not doing well in meeting the aspirations of the regional industrial policy targets,” said Mr Jean Baptiste Havugimana, the EAC director of productive sectors. According to him, MVA growth has slowed down in recent years. The growth rate fell from 5.3 percent between 2005 and 2010 to 4.6 percent between 2010 and 2021. The fall, he further said, was short of the 10 percent annual growth rate envisaged in the EAC Industrialisation Policy (2008-2032). “This is nowhere near the double-digit growth envisioned,” Mr Havugimana told a meeting of the EAC sectoral council on trade, industry, finance and investment. He said that due to the slow pace of MVA growth, relative to Gross Domestic Product (GDP), the share of manufacturing in GDP has been contracting. Previously manufacturing contributed more than ten percent of the region’s GDP but has now dropped to less than eight percent. “This is raising doubts about structural transformation through industrialisation,” Mr Havugimana said at the meeting held in Moshi. He challenged the EAC partner states to adopt “revolutionary and innovative” approaches to implementing industrial policies. New approaches in industrial policies, he stressed, can meet the anticipated economic growth in the industrial...