Transnet is embedding the “new normal” of the Covid-19 environment for the staff of its freight and transport operations and is dismantling a command centre it set up during the earlier lockdown to make it part of regular operations. CAPE TOWN – Transnet is embedding the “new normal” of the Covid-19 environment for the staff of its freight and transport operations and is dismantling a command centre it set up during the earlier lockdown to make it part of regular operations. This was according to Transnet chief executive Portia Derby, who spoke about the impact of the pandemic on the freight and logistics environment at an SA Transport Conference and International Road Federation-hosted webinar yesterday. Derby said the pandemic had a big impact on trade flows. Some vessels had been delayed at Cape Town harbour due to infections among port workers. Sometimes, vessels would by-pass Cape Town on their return route, and vessels calling at South African ports faced problems in meeting their European port schedules. At one stage, workers had to be brought in from Durban to help boost Cape Town’s port operations, she said. She said the transport and logistics sectors still faced some tough months. She questioned the view among many economists that gross domestic product (GDP) growth would suddenly recover to 3.1 percent in 2021, from the GDP decline of up to -9.3 percent that was expected this year. She said virtually every country in Africa with which Transnet dealt had a large budget deficit and high debt,...

The private sectors of Rwanda and Sweden Friday entered a partnership, opening up exchange of investments in both countries. A Memorandum of Understanding, signed by Rwanda’s Private Sector Federation (PSF) and Swedish East African Chamber of Commerce (SWEACC), is intended to boost investment and promote trade. According to the agreement, both parties will assist their members in establishing and strengthening business contacts through meetings and study tours with the objective of promoting the growth of trade. Speaking on behalf of PSF, the Chief Advocacy Officer Callixte Kanamugire welcomed the new initiative adding that Rwandan investors were ready to cooperate with their Swedish counterparts in order to tap into existing opportunities in both countries. “There is a lot we can do together and we are willing to follow up closely for better implementation of this agreement, Kanamugire said during the signing event that was held virtually. “Rwanda is strategically located and we have enormous opportunities in different sectors including coffee and tea exports among others.” Sweden is a Scandinavian nation that boasts of an export-oriented economy. It has built a modern distribution system and a skilled labour-force. The country’s engineering sector accounts for over 50 percent of its output and exports, according to available data. Timber, hydropower and iron ore constitute the resource base of the Swedish economy heavily oriented toward foreign trade. Jan Furuvald, Chairman of SWEACC, reiterated the need to look at potential investment sectors where investors from both countries can venture into business-to-business relationships. “I’m so excited to...

NAIROBI, Kenya, Aug 15 – The Africa Union is betting on top digital solutions among them PanaBios – a bio-surveillance and bio-screening suite -, to ensure continuity of business in the region, in the advent of the coronavirus pandemic. The technology maps COVID-19 hotspots throughout the continent and builds risk models that create a base for standardized protocols to prevent transmission of the disease. Using similar risk models tied to testing across the continent, PanaBIOS makes it possible to verify the health status of international travelers across borders, at a time when air travel has resumed. The technology will see travelers use test results from one country to satisfy port clearance requirements in another country through their personal PanaBios app, which is already available on the PanaBIOS website. The technology will thus simultaneously help ease port congestion (by obviating the need for testing on arrival) and prevent importation of new Covid-19 cases at ports of entry. Furthermore, it provides the means to track vaccine administration and also adverse reactions, in a bid for transparency and confidence rebuilding in the wake of growing paranoia about vaccines. This will however only be important when vaccines for Covid-19 are widely available. Of more immediate use is the potential of the platform’s machine learning algorithms to serve as rapid screening measures to help with school reopening, workplace safety and cross-border travel through the meshing of testing-related data and geolocation intelligence. The move comes as African countries are getting ready to reopen their borders and...

The African Union announced that the first commercial deal under the African Continental Free Trade Area (AfCFTA) is expected to take place on January 1, 2021 as outstanding discussions will take place online. In April, the Secretary General of the AfCFTA Wamkele Mene said implementation of the free trade agreement will not be able to commence on July 1 as planned due to the disruptions occasioned by the coronavirus pandemic. The AU maintains that the AfCFTA will offer Africa an opportunity to reconfigure its supply chains, reduce reliance on others and speed up the establishment of regional value chains which will boost intra-Africa trade. A report by the World Bank said the successful implementation of AfCFTA would mitigate negative COVID-19 effects on economic growth by boosting regional trade and reducing trade costs. It added that most of the AfCFTA’s income gains are likely to come by cutting red tape and simplifying customs procedures. Furthermore, it said, the AfCFTA could also help increase resiliency to future economic shocks by replacing regional agreements, streamlining border procedures and prioritizing trade reforms. According to the United Nations Economic Commission for Africa, the AfCFTA is, by the number of participating countries, the largest trade agreement since the formation of the World Trade Organisation. Its implementation will form a $3.4 trillion economic bloc with 1.3 billion people across the continent. Read the original article Disclaimer: The opinions expressed herein are the author's and not necessarily those of TradeMark Africa.

The Regional Integration and Trade Division at United Nations Economic Commission for Africa released a report entitled “Facilitating cross-border trade through a coordinated African response to COVID-19”. The report provides a critical assessment of existing border restrictions and regulations, with a view to providing guidance on how to strike an appropriate balance between curbing the long term spread of the virus and facilitating emergency and essential trade, according to United Nations Economic Commission for Africa. Stephen Karingi, Director of Regional Integration and Trade Division, commenting on the report, noted that COVID-19 may become the new normal for some time, forcing African Governments to adapt and innovate in order to facilitate new safe ways of conducting cross-border trade. Maintaining trade flows as much as possible during the pandemic will be crucial in providing access to essential food and medical items and in limiting negative impacts on jobs and poverty. Following the COVID-19 outbreak, nearly all African countries have imposed various degrees of restrictions on cross-border movement of goods and people, including suspension of international flights, quarantine requirements for entrants, and closures of land and maritime borders. Under a set of strict regulations, these closures target reducing movement of people while allowing exemptions for the movement of emergency and essential freight supplies. Such regulations typically cover mandatory testing, sanitizing trucks, limiting the numbers of crew members, and designating transit resting areas. These restrictions and regulations have helped in the continent’s COVID-19 battle, but they have also had negative impacts on cross-border trade...

Summary The move means the country will nullify all its single-nation passports. Holders of the Rwandan passport were given a two-year grace period to replace their passports with East Africa e-passports. Rwanda's Immigration department on Thursday announced it will replace all passports with East African e-passports. "All passports issued before June 27, 2019, will be phased out, and replaced by the Rwanda East African electronic passport after June 27, 2021," the Directorate General of Immigration and Emigration said in a statement, meaning it will nullify all its single-nation passports. Holders of the Rwandan passport were given a two-year grace period to replace their travel documents with East African e-passports, when the country began issuing them in line with the country's commitment to promote regional integration with EAC partner states from June 2019. The statement also urged the public not to wait until the expiry date to apply for new passports, adding that applicants are required to apply for them through the online platform Irembo, which enables the public to access government services. The e-passport, which is also used in other EAC partner countries including Uganda, Kenya and Tanzania, grants its holders access to more countries without stringent visa requirements, according to the statement. EAC Heads of State launched the East African e-passport and directed the commencement of its issuance during the 17th ordinary summit in March 2016 in Arusha, Tanzania. Read the original article Disclaimer: The opinions expressed herein are the author's and not necessarily those of TradeMark Africa.

14 August 2020: The Tech for Growth programme, launched by the Department for International Trade this week, aims to build trading opportunities between the UK and emerging economies. The UK Department for International Trade (DIT)’s new Tech for Growth programme will build future trading opportunities between the UK and emerging economies through the use of technology to expand access to financial services, the government announced this week. The programme will initially be piloted across Africa for a year. Access to financial services remains low across the continent; aound 60% of adults in sub-Saharan African still do not have access to traditional means of financial services, including banking and insurance. Mobile phone use has risen to over 40%, and the DIT believes that technology can play an increasing role in expanding access to financial services and other sectors. In that first year, the programme aims to establish a UK-Africa ‘Tech for Growth’ community, providing more access to financial services in underserved regions. It will include events across the UK and Africa to promote partnerships between British and African technology and financial services companies. It also looks to establish UK-Africa FinTech trade by highlighting commercial opportunities and addressing any hurdles that are holding back growth in that area. The DIT wants to establish close, collaborative relationships with African governments and regulators to help stimulate the growth of the tech sector across the continent. “Diversifying and increasing trade and investment in sectors such as tech will be crucial for economic recovery from Coronavirus,...

The WTO Secretariat has published a new information note warning of possible increases to trade costs due to COVID-19 disruptions. The note examines the pandemic’s impact on key components of trade costs, particularly those relating to travel and transport, trade policy, uncertainty, and identifies areas where higher costs may persist even after the pandemic is contained. The note estimates that travel and transport costs account for as much as a third of trade costs depending on the sector. Pandemic-related travel restrictions are therefore likely to affect trade costs for as long as they remain in place. For example, global air cargo capacity shrank by 24.6 per cent in March 2020, as passenger flights account for around half of air cargo volumes. The resulting increase in air freight prices is likely to subside only with a rebound in passenger transport, according to the report. While sea and land transport have not faced comparable shocks, maritime transport has seen a decrease in numbers of sailings, while international land transport has been affected by border closures, sanitary measures and detours. Moreover, business travel, which is important for maintaining trading relationships and managing global value chains, in addition to being a significant economic activity in its own right, is being disrupted. The quality of information and communications technology (ICT) infrastructure and digital preparedness will be important in determining how well economies can cope. Trade policy barriers and regulatory differences are estimated to account for at least 10 per cent of trade costs in all...

DP World this week announced the completion of a 400-meter expansion of the Berbera port in Somaliland. The Dubai Port Company that is contracted to expand the port said once operational, it will increase the terminal’s capacity by 500,000 TEUs per year and further strengthen Berbera as a major regional trade hub servicing the Horn of Africa. In a tweet, DP World stated: “We have just completed a 400m quay and a new extension at Berbera Port, Somaliland. Once operational, it will increase the terminal’s capacity by 500,000 TEUs per year and will further strengthen Berbera as a major regional trade hub servicing the Horn of Africa.” The news has elicited excitement within the Somaliland government with the vice president Abdirahman Abdilahi saying: “As Deputy President of Somaliland and on behalf of the people, words can’t express my great excitement about the nearing completion of the Berbera port expansion. my gratitude goes to the Sheikhs of the UAE and the DP World.” DP world, the Dubai based world’s largest port operator is the key player in the rebuilding of Berbera, they have invested $442 million for the expansion of the port and are also the economic free zone. It has projected to complete work by February next year. In 2017 when the original agreement was signed, the CEO of DP World Mr. Sultan Ahmed bin Sulayem drew a parallel between the growth of Dubai and the development path Somaliland is on and added “Our vision is to make Berbera a trading and transportation hub for the Horn of Africa.”...

Construction at the Rusizi and Rubavu ports started early this year, with Rutsiro and Karongi works scheduled to start January 2021. Construction of ports on Lake Kivu has kicked off in the districts of Rubavu, Rusizi, Rutsiro and Karongi to facilitate the transport of goods and people on Lake Kivu. The lake is also shared with DR Congo, one of Rwanda’s main trading partners. A budget of $28 million (approximately Rwf26bn) was set aside by the government in partnership with development partners. Construction at the Rusizi and Rubavu ports started early this year with Rutsiro and Karongi works scheduled to start January 2021. A ferry with a capacity to carry three tonnes and 30 passengers between the ports is scheduled to begin operations by the end of the year. A bigger ferry has also been commissioned and is expected to be operational by the end of 2021. The bigger ferry will have the capacity to carry 150 passengers and 10 tonnes of cargo. This will be welcome news for DR Congo-Rwanda traders as the new water transportation will enhance doing business between the two countries. In an interview with The New Times, Emile Baganizi, the Deputy Director-General of Rwanda Transport Development Agency, said that the goal of the investment and constructing the ports is to cut cost and time required to transport goods between Rwanda and DR Congo. Baganizi explained that passenger transport on the lake is still low because of limited infrastructures such as modern ferries and port facilities on...