THE European Union (EU) says the signing of the €3.54 million COMESA agreement that sub-delegates the implementation of coordinated border management activities between Zambia and Malawi is a welcome move. Ambassador of the EU to Zambia and COMESA Jacek Jankowski said the signing of the agreement is also a major step towards a reduction in hindrances to trade between the two countries. He added that the move will also lead to an increased seamless flow of goods between Zambia and Malawi. Yesterday, the COMESA Secretariat and the Malawian government signed the agreement a month after a similar agreement was signed with the Zambian government to upgrade its side of the border post at Mwami. Zanis reports that the chargé d’affaires at the European Union Delegation in Malawi, Aurélie Valtat, also expressed optimism that as African states start trading under the African Continental Free Trade Area (AfCFTA), the removal of any form of hindrances to cross-border trade is critical to ensure the benefits of open trade. Ms. Valtat said this is why the European Union remains committed to supporting Malawi’s trade facilitation efforts and to contribute to boosting intra-Africa trade. COMESA Secretary General Chileshe Kapwepwe and the Principal Secretary in the Ministry of Trade in Malawi, Christina Zakeyo, separately signed the sub-delegation agreement in Lilongwe and Lusaka yesterday. The project will support the implementation of key pillars of One-Stop-Border-Post operations and the implementation of major activities among them being the upgrading of the customs e-management system and bandwidth, improving inter-agency connectivity,...

The African Union agenda 2063 is on course. After some delays due to covid, the African continental free trade area has become a reality. As part of the free trade area, the African Union passport will be availed this year. The passport launched in 2016 had been available only for diplomats and AU officials. It will now be rolled out to ordinary citizens of the African Union. What will an African Passport mean? The rationale for the passport is for African citizens to be able to cross all borders on African soil without a visa. The passport will facilitate easier movement for people to ease trade relations. As African countries strengthen ties and seek to reap strength in numbers, the passport will spell an easier transition into seamless trade on the continent. Modeled along the lines of the European Union passport, the passport will be biometric to prevent fraud and illegal issuances. AU passport and poverty: implications Africa is counted among the poorest of the poor. With over a third of Africans living on less than $1.90 a day. According to a UNICEF study, Africa’s population is expected to double by 2050 to over two billion people. The population doubling will only put more pressure on already scarce resources. Coupled with climate issues, conflicts, and uneven trade, this presents an enormous challenge that could further exacerbate the poverty situation. In light of these challenges, an African passport could serve as a useful tool for facilitating trade within the continent. This will...

THE Consumer Unity Trust Society (CUTS) says the recently launched African Continental Free Trade Area (AfCFTA) will boost Zambian’s access to a variety of goods and services. CUTS Programmes Officer Jane Zulu notes that it is important for the consumer to understand their rights in order to protect themselves as they interact in the various trading spaces. On January 1, 2021, the AfCFTA was launched with the goal of increasing intra- African Trade by over 50 percent and allow Africa to create its own value chain. The AfCFTA aims to create a single market for goods and services with the anticipation of boosting trade amongst the nations. “CUTS is pleased with the launch of the AfCFTA and is looking forward to the implementation of the AfCFTA. Consumers have the right to a variety of goods and services,” Ms. Zulu has said. She further adds that CUTS’ role in the AfCFTA agenda is to sensitize consumers on their consumer rights to ensure that there are fair trading practices in the trading spaces. Ms. Zulu says despite the benefits the AfCFTA has to offer there are some consequent challenges that the CFTA poses, adding that specific to Zambia, some of the challenges include, the lack of modern and efficient infrastructure. Other encounters are unclear information about the process, restrictions for women-led businesses, and the economic disturbance brought on by the COVID 19 pandemic. Ms. Zulu highlights, “It is therefore important for the government to put policies in place that will protect the...

After much anticipation, the African Continental Free Trade Area (AfCFTA) launched on 1 January 2021. Hailed as a catalyst for continental integration, the agreement aims to "create a single market for goods and services, facilitate the movement of persons, and promote industrial development and sustainable and inclusive socio-economic growth on the continent". However, experts caution that full implementation of the historic pact, signed in March 2018 at the AU Kigali Summit, may take years to materialise. The previous deadline for operationalising the AfCFTA was 1 July 2020, but it was pushed out to the new year after the pandemic made in-person negotiations impossible. If implemented fully, the agreement is expected to provide an economic boost of US$3.4 trillion to the continent, which is even more critical given the socioeconomic impact COVID-19 is having across Africa. Nevertheless, the truth remains that it will only live up to its potential if the benefits from intracontinental trade are inclusive for all Africans. While the AfCFTA promises to boost intra-Africa trade as whole, little is said on the impact it will have on Informal Cross Border Trade (ICBT) which is pre-dominantly led by women. Globally, ICBT is defined as trade between neighbouring countries conducted by vulnerable, small, unregistered traders. The Southern African Development Community (SADC) defines it as “businesses operating in goods and services that trades across the border, which have no official export/import license or permit within a defined threshold and frequency”. For Africa’s most vulnerable people such as women and youth, who usually constitute the majority of informal cross border traders, ICBT...

The Rwandan government has identified opportunities in several local products for exports under the recently launched Africa Continental Free Trade Area. Among the products that have been found to be market-ready, according to The Ministry of Trade and Industry include agro-processing products including tea, coffee, cereals as well as diary, animal and vegetable oil products. Other products that are export-ready according to the Ministry of Trade and Industry include products from mining operations including ores and base metals. Rwanda is also looking to export construction materials, agro-products, hides and skins and textiles. The products are expected to drive Rwanda’s exports to the African continent from the current $1.6 billion annually to about $5 billion in 10 years. The products being targeted for exports under the new regime are largely those that have significant production and have been among the top exports from Rwanda. Rwanda’s tea and coffee production has been increasing steadily over time and are mostly exported to the Middle East and Europe. The development could see the products enter new markets on the continent which have previously had high tariffs limiting exporters’ interest. Michel Sebera, the Permanent Secretary at the Ministry of Trade and Industry, said following consultations to identify market-ready products and will be working with producers to support exports. The Private Sector Federation told The New Times that they are working with local firms to enable them meet standards and compliance requirements. “We are working with standard organisations like Rwanda Standards Bureau and the Food and Drug Authority to...

MON 18 JAN, 2021-theGBJournal- The Nigeria Office for Trade Negotiations (NOTN) has outlined requisite steps for Nigerian exporters gearing to begin exporting to other African Continental Free Trade Area (AfCFTA) countries as member states kick-start trading activities. NOTN the institutional framework and foundation for Nigeria’s trade policy infrastructure, leads, manages and co-ordinates all trade negations for Nigeria. According to NOTN, exporters or agent must secure all necessary licences, permits, certificates and necessary documents from relevant agencies like NEPC, SON, NAFDAC, NAQS and others and ensure that the product qualifies for export under AfCFTA. Next step is to create a bill of entry, attach all relevant permits from government agencies and secure reservation with shipping or airline company and apply for Nigeria Customs Service, AfCFTA Certificate of Origin after paying a fee. NOTN said, the Nigeria Customs Service is the issuer of the certificate, ‘’however, NACCIMA must vet the application.’’ Other accompanying documents required for shipment under AfCFTA trading activities include certificate of origin, Nigeria Customs Bill of Entry, Bill of Lading, Commercial Invoice, Packing list, and Certificate of analysis. The Trade Negotiation Office also listed Supplier/Producer’s declaration form, Origin of Declaration form, and Certificate of Origin as the compulsory trading documents. President Muhammadu Buhari on Sunday, 7th July, 2019, at the 12th Extraordinary Summit of African Union (AU) Heads of State and Government, in Niamey, Niger Republic, signed the agreement establishing the African Continental Free Trade Area (AfCFTA), involving 54 countries. The AfCFTA aims to create a single continental market...

The coronavirus has emphasised the importance of the agriculture sector in South Africa and across Africa because of its potential to support economic growth, create and sustain jobs and boost exports. At a time when most industries will be reducing employment, it is hoped that agriculture will at least maintain employment in primary activities. Agriculture has kept employment levels going because by nature, it is a labour-intensive sector, employing for example nearly 900 000 people in SA directly. There are many agricultural sectors that are increasing employment now, although seasonal, such as the fruit export sector. We have clients that are currently expanding employment to cater for seasonal expansion. Another reason why agriculture must be emphasised is because of its employment ability – agriculture on a commercial level has a strong employment multiplier. This will assist in alleviating poverty and even the establishment of new businesses and investment. It is a proven fact that food production and availability is of strategic importance to any country, but this crisis has shown the importance of being food secure, meaning being able to produce the bulk of your staple food requirements. What is important is not only the production of food, but also the logistics and supply chain to make this food available at affordable prices throughout a population. In this regard the role of the informal sector is being illuminated. There is a complex supply chain in the informal sector, the importance of which is becoming increasingly apparent. In this respect, future...

Towards the end of 2020, Washington Post asked its readers to describe the year in a single word. The responses were as comical as they were insightful. From the hundreds of feedbacks received, “exhausting”, “lost” and “chaotic” came top as the most popular descriptions. The three words are reflective of the trouble the global community had to stumble through in the year. Individuals were drained and exhausted as they struggled to cope with the new normal and bear the brunt of the additional financial burden that came along. For students, other categories of people and even businesses whose ‘lives’ were paused, it was nothing short of a lost year. One could only marvel at the speed which the strange virus threw countries, businesses and individuals into unprecedented pandemonium. Perhaps, “chaotic” was the most suitable description but “exhausting” won the word-popularity contest. And by mid-2020, it was already clear that 2021 would be a transitioning year. Certainly, the COVID-19 will continue to change the social landscape and human relations but the character of the new world it will unveil, many experts have argued, is still fluid and uncertain. Hence, a mathematician, perhaps, would label 2021 as undefined. To show that the world is not ready to bet in 2021, economic projections (by most credible institutions) are largely conditioned by the character of the new strain of COVID-19, global response to the second wave as well as vaccine logistics/distribution. For instance, the World Bank, last week, projected global economic growth of four...

On 1st January 2021, trading under the African Continental Free Trade Area (AfCFTA) Agreement commenced after months of delays caused by the COVID-19 pandemic. The AfCFTA aims to bring together 1.3 billion people in a $3.4 trillion economic bloc, making it the largest free trade area since the establishment of the World Trade Organization. Ghana is hosting the AfCFTA Secretariat in its capital city, Accra. A pathway to achieving development goals If African countries enhance competitiveness through trade and create more efficient regional value chains and labour markets, as envisaged in the AfCFTA Agreement, they would increase momentum towards implementing the 2030 Agenda for Sustainable Development. Poverty and inequality would be greatly reduced through sustainable structural transformation that prioritizes reaching those farthest behind. In addition, the expansion of choices and capabilities for women and youth through intra-Africa trade and interconnectivity would help to achieve several goals under the Agenda 2063 of the African Union, including Goal 4 on transformed economies through sustainable and inclusive economic growth, Goal 17 on full gender equality in all spheres of life and Goal 18 on engaged and empowered youth and children. The AfCFTA as a driver of structural transformation and job creation The AfCFTA could transform Africa's economic landscape and create productive opportunities. The potential increase in manufacturing jobs, commercial enterprises and agribusinesses could change the lives of millions of women and youth who often face higher levels of unemployment and are overrepresented in vulnerable jobs. According to the United Nations Economic Commission for...

SSCBT is important on informing policies for poverty reduction and inclusive growth The future for many Africans is uncertain as the world continues dealing with the Covid-19 pandemic whose increase and mutation is necessitating lockdowns in different parts globally. Majority of the affected millions are now either out of work or in limbo since some companies have opted for extended unpaid leave for their employees instead of laying them off. Accordingly, the Covid-19 pandemic has potential far-reaching and multifaceted indirect impacts on societies and economies. These effects could last long after the health emergency is over. The extended negative effects of the pandemic could aggravate existing instabilities or crises, or lead to new ones with repercussions on individuals’ emotional and economic wellbeing, food security, and livelihoods. With this reality, though, there are several opportunities that African governments should exploit to ensure that they cushion their people, especially the very vulnerable, from the suffering that the pandemic is leaving in its trail. While the short term interventions are welcome, there is more that can be done on the continent to ensure the sustainability of livelihoods. According to the Africa Investment Forum (AIF), domestic manufacturing is a path to expand intra-continental trade while also reasserting Africa’s position in global markets. The role of the private sector cannot be underestimated especially with the rolling out of the African Continental Free Trade Area (AfCFTA). For Foreign Direct Investment (FDI), investors should not view Africa as a single market. AIF’s Senior Director Chinelo Anohu says...