The East African Business Council has commended the government of South Sudan for providing security escorts to cargo transporters entering the country. It also appreciates the traders and the government for finding a quick solution to the cross-border trade impasse that could have impacted negatively the region’s economy. For two weeks, cargo transporters refused to deliver commercial goods to South Sudan after the killing of their colleagues along the Juba-Nimule highway and the Yei-Juba road. After several meetings, the cargo drivers and the government resolved to resume the importation of goods, but with security guarantees. The SSPDF deployed heavily along the routes and removed all unnecessary roadblocks that were extorting money from the traders. In a statement issued on Tuesday, the East African Business Council said this move should secure the free flow of cargo and services into and out of South Sudan along the Juba route. It urges the Ministries in charge of Interstate Security in the East African Community to find lasting solutions to guarantee peace and security for business people and their properties. The body maintained that peace and security are prerequisites to social and economic development, and for increased intra-EAC trade and investments and ease of doing business across borders Statistics show that South Sudan imported goods valued at approximately $377 million from the EAC region and exported 17.9 million dollars into the bloc in 2018. In 2019, Kenya alone exported goods valued at approximately $122.9 million to South Sudan. The region’s Business Council states that the...

For decades, African women have been trapped in poverty cycles due to several underlying factors including unequal access to education, factors of production, and trade facilities; inequitable labour-saving technologies; underpaid or unpaid labour; harmful cultural practices; and limited legal protection from gender inequality practices entrenched in society. To break the cycle of poverty and inequalities, the African Union continues to advocate for the development and implementation of policies and legal; frameworks that will create a wider array of opportunities for women, and which will lead to their economic empowerment at the national and regional levels and ensuring that the development envisaged for Africa is inclusively sustainable. With the launch of trading under the African Continental Free Trade Area (AfCFTA) in January 2021, the expectations are high as relates to the expanded business prospects for women-led business which will unlock the potential for African women to grow their business from micro to macro enterprises. The Agreement establishing the AfCFTA recognises the need to build and improve the export capacity of both formal and informal service suppliers, with particular attention to micro, small and medium-sized enterprises in which women and youth actively participate. Furthermore, the AfCFTA Protocols on Trade in Goods, Trade in Services, Investment, Intellectual Property Rights and Competition Policy provide clear guidelines to ensure emerging enterprises and infant industries are protected thus adding impetus to the Agenda 2063 goals of gender equality, women empowerment and youth development. Through the AfCFTA, informal and micro and small enterprises will be integrated into the continental markets breaking the barriers...

The Ghana Export Promotion Authority (GEPA) has partnered two international bodies to equip exporters and companies in the export trade business with the relevant skills to face emerging challenges. The authority collaborated with the Institute of Export and International Trade (IOE) and the International Trade Centre (ITC) to launch a one-year online diploma programme in export trade aimed at building the requisite human resource for the sector. The programme was launched yesterday as part of efforts by the export trade facilitation and promotion body to prepare businesses to take advantage of the opportunities under the Africa Continental Free Trade Area (AfCFTA). It is also meant to strengthen them in the face of risks emerging from the Covid-19 pandemic. At the launch in Accra, the Chief Executive Officer of GEPA, Dr Afua Asabea Asare, said it was only by empowering Small and Medium Enterprises (SMEs) to be globally competitive that we could talk about building their productive capacity to integrate global value chains and take advantage of trade opportunities externally. “One of the ways we can do this is to encourage participants to sign up for this one-year modular programme. Advances in globalisation and international trade mean career prospects in the industry are both lucrative and abundant,” she said. According to her, the speed at which Covid-19 spread around the world was a reminder of the risks associated with the deepening process of globalisation. “The up-side is that there is a growing demand for persons who understand the management and operational...

The Food and Agriculture Organization of the United Nations (FAO) and the African Union Commission’s Department of Agriculture, Rural Development, Blue Economy and Sustainable Development (AUC-DARBE) have launched a guide to boosting intra-African agricultural trade under the new African Continental Free Trade Area (AfCFTA) agreement. The AfCFTA began trading on 1 January 2021 and is the largest free trade area in the world in terms of the number of countries covered. It represents a market of 1.2 billion consumers. The Framework for Boosting Intra-African Trade in Agricultural Commodities and Services is a blueprint for expanding agricultural trade between African countries and aims to unlock the potential of the agricultural sector to contribute to sustainable and inclusive growth for Africa. Increased trade represents a paradigm shift away from business as usual and is an important part of the collaborative work towards boosting food security and nutrition for all Africans. “The Framework provides a timely catalyst for the transformation to more efficient, inclusive, resilient and sustainable agri-food systems, sustainable development and prosperity in Africa. A key priority is the pursuit of industrial transformation policies and programmes that support the private sector to add value to African exports, compete with imports from outside Africa and expand opportunities for job creation,” FAO Assistant Director-General and Regional Representative for Africa Abebe Haile-Gabriel, African Union Commissioner Josefa Sacko, and AfCFTA Secretary-General Wamkele Mene jointly stated in the publication’s foreword. Africa is a net food-importing region of commodities such as cereals, meat, dairy products, fats, oils and...

ANKARA (AA) – Africa needs to step up productive and infrastructural integration amid COVID-19 economic recovery process, suggested a report. African Regional Integration Index (ARII), a joint publication of the UN Economic Commission for Africa, the African Development Bank and the African Union Commission, provides up-to-date data on the status of regional integration in Africa. The report assessed the regional integration status and efforts of the countries that are members of the eight regional economic communities recognized by the African Union. The report welcomed the recent endorsement of the African Continental Free Trade Area (AfCFTA) by more than 50 African countries. “It is time for quantum leaps. Regional integration is the glue that will make that happen.” AfCFTA is a free trade area founded in 2018, with trade commencing as of Jan. 1 2021. It was created by the African Continental Free Trade Agreement among 54 of the 55 African Union nations. Africa’s economic growth is projected to exceed 4% in 2019-2020, an increase from 3.5% in 2018. The report said for free trade to happen seamlessly, African countries need to implement the Protocol on the Free Movement of People, which will in turn enable traders and investors to operate beyond their national borders. Spurred by AfCFTA, more than 40% of African countries are projected to post growth of at least 5% this year as commodity prices rise and domestic demand and infrastructure investments boost growth, according to the report. Jean-Guy Afrika, the African Development Bank’s Acting Director for the...

What you need to know: Lately, the UK-Africa relationship has been dominated by trade and investment issues. At the same time, the African Continental Free Trade Agreement (AfCFTA) gives hope to millions on the continent. As one of Africa’s leading economic partners, the United Kingdom has played a huge role in shaping policies across the continent over the years. Decades after independence, London still occupies a special place in many African capitals. As Britain explores new trade deals after its formal separation from the European Union, will Africans leverage the changes to their advantages? Will the UK and Africa work together to create opportunities for their people? Lately, the UK-Africa relationship has been dominated by trade and investment issues as London seeks to improve its relationship with countries across the globe. At the same time, the African Continental Free Trade Agreement (AfCFTA) – a pillar in the march towards a border-free Africa – gives hope to millions on the continent despite the Covid-19 pandemic that has ravaged economies the world over. Appreciating the context of what post-pandemic growth looks like will afford the interests stemming from the UK-Africa relationship a fighting chance in seeking a balance between intercontinental and intra-continental trade and investment deals. No longer tethered to the EU’s trade agreements, London’s post-Brexit agenda focuses on manoeuvring its relationship with individual states. Prime Minister Boris Johnson stated at last year’s UK-Africa Summit that Britain had all it took to become Africa’s “obvious partner of choice”. In this vein, the UK...

For decades, African women have been trapped in poverty cycles due to several underlying factors including unequal access to education, factors of production, and trade facilities; inequitable labour saving technologies; underpaid or unpaid labour; harmful cultural practices; and limited legal protection from gender inequality practices entrenched in society. To break the cycle of poverty and inequalities, the African Union continues to advocate for the development and implementation of policies and legal; frameworks that will create a wider array of opportunities for women, and which will lead to their economic empowerment at the national and regional levels, and ensuring that the development envisaged for Africa is inclusive and sustainable. With the launch of trading under the African Continental Free Trade Area (AfCFTA) in January 2021, the expectations are high as relates to the expanded business prospects for women-led businesses, which will unlock the potential for African women to grow their businesses from micro to macro enterprises. The Agreement establishing the AfCFTA recognises the need to build and improve the export capacity of both formal and informal service suppliers, with particular attention to micro, small and medium size enterprises in which women and youth actively participate. Furthermore, the AfCFTA Protocols on Trade in Goods, Trade in Services, Investment, Intellectual Property Rights and Competition Policy, provide clear guidelines to ensure emerging enterprises and infant industries are protected thus adding impetus to the Agenda 2063 goals of gender equality, women empowerment and youth development. Through the AfCFTA, informal and micro and small enterprises will...

Summary Sizeable drop in the number of projects and project value largely blamed on region’s inability to meet financing costs due to the effects of coronavirus. Eastern African countries cut $68.3 billion spending on infrastructure projects last year, the largest decline in number of projects and value of projects in sub-Saharan Africa in a year. This is as a result of the economic fallout from the Covid-19 pandemic sweeping across the region, hitting public finances and pushing governments into massive indebtedness. The Africa Construction Trends Report (2020) by consultancy firm Deloitte released last week shows that the number of infrastructure projects in the region covering Burundi, Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Rwanda, Seychelles, Somalia, Tanzania and Uganda dropped by 35 per cent to 118 in 2020 from 182 in 2019 while the total value of the projects declined by 47 per cent to $77.7 billion from $146 billion in the same period. Infrastructure projects in the transport sector accounted for 51.5 per cent ($40 billion) of the region’s total projects, followed by energy and power (23.5 per cent) and the shipping and ports (21.5 per cent) sectors. According to the report, the sizable drop in the number of projects and project value largely resulted from the region’s inability to meet financing costs due to the effects of Covid-19 pandemic resulting in the suspension of several projects. For instance, the Ethiopian government’s interest in renegotiating payment schedules for the Addis Ababa-Djibouti Railway and Addis Ababa-Sebeta-Mieso-Dewale Road Project, led to thinned financing...

In this edition of Business Day Spotlight, we talk about the performance of economies in the SA Development Community (Sadc) and East Africa regions. Host Mudiwa Gavaza is joined by Jacques Nel, head of macroeconomic research for Africa at NKC African Economics, to chat about the issues. Join the discussion: Starting with news from some of SA’s close neighbours, Nel says the muted performance of the local economy has had a negative effect on the growth prospects of the region. As an economy that anchors the Sadc region, Nel explains that the fortunes of SA’s economy have a direct effect on neighbouring economies. A drop or stagnation in local economic performance, therefore, weighs on the region. Business Day Spotlight host Mudiwa Gavaza. Picture: DOROTHY KGOSI. Heading into lockdown, SA was already expected to grow at less than 1%, seeing a huge contraction brought about by Covid-19 and subsequent lockdowns. Nel explains how neighbouring countries have performed, in the light of this apparent reliance on SA, focusing specifically on Botswana, Namibia and Mozambique. Shifting to East Africa, Nel says the region has been resilient, having entered lockdowns with good growth prospects. For now, he expects that momentum to continue with faster growth projected for the region. The discussion focuses on the economic performance of countries in the Sadc region, specifically Botswana, Namibia and Mozambique. It then looks at growth in East Africa, progress made in terms of vaccinations and an outlook for the two regions. Read original article

Tanzania President Samia Suluhu Hassana’s first state visit to Uganda has signalled the revival of East Africa’s energy arena. President Samia made her first trip outside Tanzania as head of State on Sunday, April 11, since she took oath of office on March 19 following the death of her predecessor John Pombe Magufuli, who succumbed to heart disease last month. Samia met her Ugandan counterpart Yoweri Kaguta Museveni and agreed to support and show their commitment to the realisation and implementation of the strategic East African Crude Oil Pipeline (EACOP) project. The agreement was made on Sunday at the State House in Entebbe during the bilateral talks. Accelerating the Uganda-Tanzania Energy Relationship In May 2017, both countries signed the Intergovernmental Agreement (IGA) on the implementation of the project. The last meeting regarding the project was held in September 2020 between Museveni and the late Tanzania president John Magufuli at Chato, Tanzania, where they agreed that each party was to conclude the host project, commence negotiations of pending agreements, and expedite the implementation. The meeting between the two leaders is a sign of commitment to conclude the project that was well supported by Magufuli who died on March 17, 2021. In their agreements, they said that all the outstanding issues related to the project have been amicably resolved. The Shareholding Agreement was also signed by all the stakeholders during the meeting. That having concluded the Tariff and Transportation Agreement and the host Government Agreement for Uganda and the Shareholding Agreement for...