Implementing the World Trade Organization’s (WTO) Trade Facilitation Agreement (TFA) could increase the value of global exports by up to $1 trillion a year, according to a study. The report is the first detailed study by the WTO into the potential effects of the TFA, which aims to standardise, streamline and speed up customs processes around the world. The WTO said “fuller, faster” implementation of the agreement would increase the value generated and the TFA could result in a 0.5 per cent boost to global annual GDP. The report said developing countries would benefit most from the TFA and they are expected to enter 30 per cent more foreign markets as a result of the agreement, with a 20 per cent increase in the number of new products exported. The WTO said the agreement would help firms in developing countries enter supply chains because “timeliness and predictability in the delivery of intermediate goods are essential to the successful management of global value chains”. The report said the TFA would reduce trade costs among members by an average of 14.5 per cent and cut the risk of corruption. “There is evidence to show that the likelihood to engage in fraudulent practices at the border is higher the longer the time needed to clear goods,” said the report.“By simplifying trade procedures and reducing the time to move goods across borders, the TFA will increase the volume of goods flowing through customs, reduce the scope for corruption and increase the amount of revenues...

The South Sudan Transitional Government of National Unity could be constituted mid next month. The initial date was November 26, but now, regional leaders and stakeholders in the South Sudan Peace Agreement will meet in Juba next week to set a specific date for the constitution and also officially inaugurate the Joint Monitoring and Evaluation Commission (JMEC). Led by former Botswana president Festus Mogae, the JMEC will monitor and oversee the implementation of the agreement. The meeting, under the Inter-Governmental Authority on Development (Igad), was called after both partners to the peace agreement indicated that the constitution of the transitional government could be delayed since the implementation is behind schedule. Dr Cirino Hiteng, a member of the former detainees group, told The Eastafrican the GNU can only be formed from mid-December since the government has indicated to Igad that it is not ready to receive  the Sudan People’s Liberation Movement-In Opposition (SPLM-IO) by November 15 as agreed. Government ‘is ready’ However, South Sudan ambassador to Kenya Mariano Deng said the government has put in place all the components of the implementation of the agreement and is ready for the transitional government anytime. He blamed the lag on the delay in signing of the security arrangements. The rebels had initially decided to send an advance team of 500 people, led by the movement’s lead negotiator Taban Deng, to prepare the ground for the arrival of their leader, former vice-president Dr Riek Machar, in terms of security arrangements. The advance party was...

Four Burundi citizens and a similar number of Kenyans are in the race to succeed Dr Richard Sezibera when his term as Secretary-General of the East African Community ends early next year. Although it is Burundi’s turn to nominate a citizen to the position, the insecurity in the country could prove a hindrance, hence the Kenyans’ decision to wait in the wings. The SG’s post is rotational and the occupant of the seat is chosen by the head of state of the appointing country. Burundi’s contestants are Foreign Affairs Minister Alain Nyamitwe; former EAC deputy SG - productive and social sector Jean Claude Nsengiyumva; EAC Deputy SG - Finance and Administration Libérat Mfumukeko; and the country’s East African Legislative Assembly MP Hafsa Mossi, a former journalist. The Kenyans said to be lobbying for the position are Abdirahin Abdi, the former EALA speaker; Peter Kiguta, the EAC Director-General of Customs & Trade; EAC Deputy SG Charles Njoroge; and Joseph Nyagah, national co-ordinator for the Northern Corridor Integration Project and a former Cabinet minister. It is expected that the new secretary-general will be sworn in at the EAC Ordinary Heads of State Summit in Dar es Salaam in February and not in April as earlier thought. “The summit that was to be held this month (November 30) has been pushed to February next year to allow Tanzania’s new government under the new president John Magufuli to settle into office,” said a source privy to the arrangements. “Thus it is better for the presidents to have a new secretary-general sworn...

(Seychelles News Agency) - In spite of being small in size compared to other African countries, Seychelles an archipelago in the western Indian Ocean is aiming to become the hub for trade between African countries. The island nation wants to emulate countries like Singapore which is today the centre in Asia for trading in commodities globally. After taking steps to promote the blue economy concept on the international scene, Seychelles is now looking at bringing African nations together through trade. Speaking to the press at a meeting dubbed the ‘African Prosperity conference’ that is being hosted by the island nation since Tuesday, the Chairman of the Seychelles Chamber of Commerce and Industry, (SCCI) Marco Francis called for greater partnership between African nations. "I have travelled to many parts of Africa. Africa has some very good structures to do business. African businessmen have the same vision as we do, they want to do business and they want to expand. Let’s partner together.” Francis noted that today trade between African countries stands at only 16 percent while the majority of the continent’s imports are from European and Asian countries. As part of efforts to boost regional trade, leaders from 26 African countries joined together in June this year to sign an ambitious declaration in Sharm El Sheikh, Egypt to establish a wide-reaching free-trade zone across almost the entire eastern half of the African continent. The Tripartite Free Trade Agreement (TFTA), which incorporates member countries from the East African Community (EAC), the Common Market for...

In preparation for the 10th Ministerial Conference of the World Trade Organization (WTO) which is scheduled to take place in Nairobi-Kenya from 15-18 December 2015, the African Union held a Meeting of Trade Ministers on 20th July 2015 in Nairobi-Kenya. During the deliberations, the AU Ministers were unanimous in reaffirming the strategic objectives for an African Trade Policy, which should be based on Africa’s industrialization in order to achieve the structural transformation of African economies. The Conference was addressed by a distinguished cadre of personalities including H.E. Mrs. Fatima Haram Acyl, AU Commissioner for Trade and Industry, H.E. Mr. Mukhisa Khituyi, the UNCTAD Secretary General, Mr. David Shark, WTO Deputy Director General and, Mrs. Dorothy Tembo, Deputy Exeutive Director of the International Trade Center. The meeting was chaired by H.E. Ambassador (Dr.) Amina C. Mohamed, the Kenya Minister for Foreign Affairs and International Trade. During the meeting, the Ghana Minister for Trade and Industry, Hon. Dr. Ekwow Spio –Garbrah as is customary with his reputed leadership demeanor which excels on clear strategic vision, advocated the setting up of an unprecedented “African Trade Information Sharing Portal to boost trade and investment ties between African countries”. For a full decade and for most of the time as his Chairman, I have witnessed Minister Dr. Spio-Garbrah’s highly acclaimed professional work in the area of ICT and telecommunications during his term of office as the CEO of the Commonwealth Telecommunications Organization. It was, therefore, of no surprise that he has opted to tap his...

The East African Community (EAC) countries are leveraging on a single online visa to help increase tourist arrivals in the region, Kenyan Deputy President William Ruto has said. Ruto told a tourism conference in Nairobi that Kenya, Uganda and Rwanda, which had launched a single visa initiative earlier this year, were leveraging on technology to remove hurdles in the promotion of tourism in the region. "We are leveraging on technology to market the region as a single destination with diverse tourist attractions, and I assure our visitors that we will make it worthy their while," he said when he officiated at the opening of the 40th Conference of the Africa Travel Association (ATA). Ruto noted that the decision to issue a single visa for visitors coming to Kenya, Uganda and Rwanda was a milestone in promoting the three countries as a single tourism destination. The lack of a regional common visa has been a major drawback towards marketing East Africa as a single tourist destination. Foreign tour operators had complained of cumbersome immigration procedures at border entry points for those who wish to cover various circuits in East Africa. Sources said the five East African Community countries, which also include Burundi and Tanzania, are also in the final stages of implementing a single visa. Ruto said that efforts put into the promotion of tourism in Kenya were bearing fruit, with tourist arrivals in the country hitting 1.13 million last year, up 5 percent year on year. Source: Coast Week

Despite popular opinion, Africa has been very active on the international trading stage, though results have been disappointing. At the ministerial conference in Bali, Indonesia in 2013, African countries failed to push for their needs. After progress and losses, what is the place of Africa in the multilateral trading system as the continent heads into the WTO ministerial conference in Nairobi, Kenya?
 As the world is rushing towards regional and mega-regional trade agreements, it is necessary to review the place and role of the African continent in all of its evolutions. These have already transformed international trade relations and set the next boundaries of the global economic governance system. Africa’s place in the multilateral trading system has often received special attention, even though ithas mostly focused on the contextual and factual analysis of the weakness of the continent’s contribution to global commercial transactions or the vagaries of the participation of African states in trade negotiations. There has been more than enough criticism suggesting that Africa is not making sufficient effort to take part in international trade. On the contrary, African countries merit a spotlight on their significant progress to open up to trade. A continent that has come a long way Africa’s place in the international trading system has often been simplified to a single statistic: less than 2 percent of international trade. The analyses that support the theory that African countries barely participate in international trade are mostly based on a quantitative approach. However, such a static approach hides...

EXPORTS from East African Community bloc to the United States, under the African Growth and Opportunity Act, will be increased by 50 per cent in five years, an official of the East Africa Trade and Investment Hub said yesterday. The director for trade promotion and AGOA Finn Holm-Olsen said they will also bring in $100 million (Sh12.02 billion) in new investment to the region, which will create about 10,000 jobs in the period through to 2019. He said the programme sponsored by the USAid will enable the business community in Kenya and the region to fully utilise AGOA. “We are looking to increase exports from the region to the US by 50 per cent. The $100 million comprises of new investments coming in and expansion of current businesses,” he said in an interview during a national capacity building forum to educate micro, small and medium-sized enterprises on the benefits of AGOA, in Nairobi. “In one year alone, the project has supported $81 million (Sh8.28 billion) in exports to the US under the AGOA,” he said. The AGOA Act provides African countries with free access to the US market. Kenya has mainly been exporting textiles and apparels, leather and fisheries, and processed agricultural products. Micro and Small Enterprises Authority chief executive Patrick Mwangi said many MSMEs have not benefited in the AGOA framework due to lack of information. He said most of the products that are being exported to the US under the AGOA are from the various export processing zones...

South Sudan will push for admission into the East African Community at the Heads of State Summit in two weeks time, despite having not met all the eligibility criteria. Government officials argue that Juba has already opened its economy to EAC members though questions on governance, democracy, human rights and security linger. Foreign Minister Barnaba Marial Benjamin, who led a high level ministerial committee to the latest EAC session on South Sudan accession in mid-October, said that a technical committee had recommended that Juba “is now qualified” to join the bloc. The EastAfrican was unable to independently verify this because the committee’s report is being kept under wraps until it is presented to the EAC Council of Ministers meeting in November 15. “It is just like when Burundi and Rwanda were admitted in June 2007 while they had similar challenges, and managed to solve them from within,” said Dr Benjamin. “We believe that South Sudan has a better chance of resolving its challenges faster and more effectively as a member of the EAC.” In a briefing to parliament on October 26, the presidential advisor for economic affairs and co-chair of the High Level Committee on South Sudan Accession to the EAC, Aggrey Tisa Sabuni, said that the recommendations clearly state that there is a strong push by the ministers of EAC affairs for South Sudan to be admitted into the regional bloc within the shortest time possible. “While the ultimate decision lies with the heads of state, they will almost...

The Common Market for Eastern and Southern Africa (COMESA) officials have lauded Rwandan cross-border transporters for embracing the yellow card scheme, noting that it has helped local logistics firms to reduce costs, and ease movement of goods and persons within the region. Sindiso Ngwenya, the COMESA secretary general, said the number of subscribers under the scheme is growing annually, adding that the amount of claim compensations paid to road accident victims has also gone up. "Through the yellow card scheme, COMESA has contributed to region's competitiveness by reducing cross-border transport and transaction costs... It saves transporters and business community time and money," he added. This was in a speech read for him by COMESA's Berhane Gidy during the group's meeting on regional third party motor vehicle insurance in Kigali last week. The meeting attracted participants from all the 19 COMESA countries. The yellow card scheme is a regional third party motor vehicle insurance scheme for medical expenses resulting from road traffic accidents caused by visiting motorists. It also offers emergency medical cover for the driver and passengers of foreign trucks involved in traffic accidents. Speaking at the conference, Emmanuel Hategeka, the trade and industry ministry permanent secretary, said economic integration is essential to support the private sector, improve operations and ease cost of doing business. He added that COMESA has created a favourable legal, economic, political and social environment, "which opens up tremendous opportunities for business". Hategeka said major economic reforms have been implemented with the trade bloc, but called...