The East African Business Council has lauded the President of the United Republic of Tanzania, H.E. John Pombe Joseph Magufuli and the President of the Republic of Kenya, H.E. Uhuru Kenyatta, for their directives on ensuring free movement of goods across borders between Kenya and Tanzania, which will facilitate increased trade between the two countries. In a statement, EABC therefore urges the Ministers Responsible for Transport, Health and EAC to convene and find a win-win lasting solution to the barriers hindering the free movement of cargo across EAC borders and in particular, the borders between the two countries. “The fourteen (14) days standstill on the movement of goods between Kenya and Tanzania borders risks business continuity and affects intra-EAC trade. There are over 1000 trucks stranded at both sides of the border, this is significantly affecting the intra-EAC trade and movement of essential and perishable goods across borders.” The statement read in part. The council also noted that there is also a  slowdown in movement of cargo across all EAC borders, this is disrupting regional value chains due to the emerging challenges restricting the movement of truck drivers in a bid to contain the spread of COVID-19. According to the International Trade Centre, In 2018, Kenya imported products valued approx. USD. 175.9 million from Tanzania and exports approx. USD.293.5 million while Rwanda imported products approx. USD. 134.5million and approx. 2 million from Tanzania. EAC Partner States are relying on sourcing final products, intermediate input and raw materials within the region due to the disruption...

It is hard to see how African economies will bounce back to the vibrant fast growing hubs that they were over the past two decades, the pre-corona era. Countries like Rwanda that led East Africa (and most of the World) with annual economic growth averaging 9.4 percent now looks at annual growth rates of a mere 2 percent.  When the tourism and hospitality industries reopen their doors, will tourists and holiday maker flock in triple and quadruple their previous numbers and will they do so long enough for the industries to stabilize and resume growth? Will air travel shake off the blow it has taken, will it be willing to pocket less profit to attract business or will it hike prices to capitalize the anticipated initial high demand post the pandemic?  How individual industries will raise from the ashes of the pandemic is anyone’s guess but should recovery of global economies, especially of vulnerable third world countries like those in Africa be left to the invisible hands of commerce or should concerted regional and continental strategies be tabled?  Dare I say, it seems that the continent has again been stooped into the ill fated philosophy of individualism; it has again been divided and is again on the verge of been conquered. Just like they took individual course of action when the pandemic befell the continent, countries are destined to make individual response strategies, prioritizing self over whole.  Already this autonomy approach to the pandemic has rendered regional blocs asunder. Hard...

As Covid-19 caseload surpassed 225,105 on Saturday across the African continent, 43 African countries are now under full border closure due to the rapid spread of the coronavirus. The death toll from the pandemic has reached 6,040, while some 102,846 people have recovered, according to the latest data from the Africa Centres for Disease Control and Prevention (Africa CDC). The Africa CDC said that the northern African region is the most affected area across the continent both in terms of positive Covid-19 cases and the number of deaths. HIGHLY AFFECTED The highly affected African countries include South Africa, Egypt, Morocco, Djibouti, Nigeria, and Algeria, said the specialized healthcare agency of the African Union (AU) Commission. Some countries on Saturday reported new records for their daily increases in Covid-19 infections. Egypt registered 1,677 new Covid-19 cases in the last 24 hours, the highest daily surge so far, raising the national count to 42,980, the Egyptian health ministry said. The country has also reported a record single-day increase of 62 in Covid-19 deaths, taking the death toll to 1,484, said Khaled Megahed, the health ministry's spokesman. Ethiopia, Africa's second most populous nation with a population of about 107 million, reported 268 new cases on Saturday, the highest daily increase so far, taking the country's tally to 3,166, the Ethiopian Ministry of Health said. WORST HIT South Africa, the worst-hit country on the continent, has registered a total of 65,736 cases and 1,423 deaths so far, according to Johns Hopkins University's latest tally....

Rwanda and Kenyan transport officials are expected to hold fresh talks separately with their Tanzanian counterparts over continuing truckers stalemate at their respective borders. Tanzania cross-border cargo truck owners want unconditional access into Rwanda, protesting the Covid-19 control measures requiring them to terminate their trips at the Rwanda border, with exception of perishables and petroleum products as per the deal reached by the governments on May 15. According to media reports, the Tanzania Truck Owners Association has requested the government to have talks with neighbouring countries and review its members claim that their Covid-19 certificates are being rejected at the borders while others have to wait for long to offload cargo at the Namanga (with Kenya) and Rusumo (Rwanda) borders. Rwanda’s Ministry of Foreign Affairs and International Co-operation Vincent Biruta confirmed to The EastAfrican that parties were expected to meet, on a date yet to be set. He, however, did not reveal the specific demands presented by Tanzania, and whether the talks signal a setback to the previously reached deal. Clearance certificates “It will be a follow up on the implementation of the resolutions of the previous bilateral meeting with Tanzania,” he said through the Office of the Government Spokesperson. On the Tanzania-Kenya borders, the situation is the same, as drivers from the two countries are stranded and cannot enter or exit both sides at the Namanga and Holili/Taveta One Stop Border Posts. Tanzania’s Transport Minister Isaack Kamwelwe told The EastAfrican, the two countries are making arrangements to have talks...

Current state of play of the AfCFTA The secretary-general of the Africa Continental Free Trade Area (AfCFTA) secretariat, Mr Wemkele Mene made an announcement on 28 April 2020 of the postponement of the 1 July 2020 official implementation start date. Mr Mene cited the adverse effects of Covid-19 currently devastating Africa and the world at large as the primary reason. This postponement came after significant lobbying of African leaders not to move this long-awaited launch date as there are real concerns that Africa could lose momentum towards the implementation of the new trade architecture. He made no announcement of an alternative start date, though speculation is swirling that it may now be set for January 2021. As indicated in my previous article ‘In a post-Covid-19 World, the Africa Continental Free Trade Area could not come soon enough’, which featured in Engineering News, Mining Weekly and How we made it in Africa on 22 May 2020, the pitfalls of open-ended postponements were laid out. Africa needs to move forward at pace to implement the agreement or risk losing momentum, political will and failure to negotiate meaningfully with global trade partners to correct the existing highly skewed trade architecture – especially if Africa appears to the world as being incapable of multi-tasking! Once fully implemented, the AfCFTA aims to reshape the continent’s social, investment and trade arena in a fundamental manner. It lays the foundation for the African Customs Union, a cornerstone of the African Union (AU) Agenda 2063. The goal is...

Content type: Graphic Analysis Location: AFRICA Keywords associated with this article: Geographic: Africa, ME/NAF, Central Africa, East Africa, North Africa, Southern Africa, West Africa Topical: economy, international relations, emergency, fiscal, foreign trade, government, health, immigration, infrastructure, investment, policy, regional, talks ISSN: 2633-304X Lagging regional integration is further complicated by the COVID-19 crisis Impacts COVID-19-related border and trade restrictions will strain various bilateral relationships over the short-to-medium term. Progress on freedom of movement and visa openness could face renewed setbacks. Recent continental efforts on procuring COVID-19-related supplies will intensify efforts to improve medical regional value chains. COVID-19-related border closures will exacerbate ongoing and emerging food security crises. Conclusion The latest Africa Regional Integration Index Report shows states and regional economic communities generally not well integrated, with the EAC overall the most integrated community across five criteria: trade integration; productive integration; macroeconomic integration; infrastructural integration; and the free movement of people. Sub-Saharan Africa’s growth is set to contract by at least 1.6% in 2020, and global growth by at least 3%, with severe impacts for regional heavyweights Nigeria and South Africa. With the African Continental Free Trade Area (AfCFTA)’s implementation now delayed (potentially until 2021), and COVID-19-related disruptions to global trade and financial markets, enhanced regional integration will become even more pressing to offset expected economic downturns. Source: Emerald

Rwanda and Uganda have recorded a reduction in trade flows in April and May 2020, according to the latest report from the COMESA Statistics on ‘COVID 19 Impact on Trade’. The report was prepared in the first two months in which COVID-19 spread to the region. Imports into Rwanda declined by 32 % in April compared to March. Rusumo and Airport borders posts recorded declines in imports of 35% and 16% respectively. In Uganda a drop in imports were recorded at 30% in April compared to March. Malabo, Busia and Entebbe border posts recorded declines in imports of 35%, 28% and 24% respectively. Imports for the month of May were projected to decline by 20%. Exports for Rwanda also declined by 8% in April compared to March 2020 while Uganda recorded a decline in Exports by 15% in April compared to March. According to the report, reduction in customs duties are listed as among the critical challenges faced by the Rwanda Revenue Authority. Customs duty receipts declined by 55% in April compared to March. Rusumo, Kagitumba and the Airport border posts recorded declines in customs duty receipts of 52%, 71% and 41% respectively. For Uganda, a reduction in customs duties was listed among the critical challenges faced by the Uganda Revenue Authority with declines of 42% recorded in April compared to March. Malaba, Busia and Entebbe recorded declined duties of 43%, 36% and 21% respectively. Both countries have however put in place measures to respond to the COVID-19. In Rwanda for...

Findings of the 2019 African Regional Integration Index indicate that regional integration in Africa remains low with the continent recording an average index score of 0.327 out of a possible 1. The latest index, published late May by the United Nations Economic Commission for Africa, the African Union, and the African Development Bank, builds on the first edition published back in 2016. It provides up-to-date data on the status and progress of regional integration in Africa. The ARII uses 16 indicators, grouped into five dimensions – free movement of people, trade, productive capacity, infrastructure, and macroeconomic policy – to measure how well each country and region is integrated with its neighbors. It shows the continent is still particularly poorly integrated on the productive and infrastructural dimensions, which are key aspects of the foundations of regional integration while free movement of people is the strongest dimension. Although 20 countries score above average, no African country can be considered well integrated with its region, the report said. Much more needs to be done to link regional economies to make them more resilient to shocks such as the current COVID-19 pandemic, it said. “The present COVID-19 pandemic has reopened the question of whether enough is being done in advancing regional integration as a means to help Africa withstand systematic shocks such as the one being experienced today,” said Stephen Karingi, Regional Integration Division Director at the ECA. By the metrics, the East African Community is ranked the best integrated among the eight Regional Economic Communities in Africa, while the Southern...

Shamim Sserunjogi and her brother Moses were forced to become digital entrepreneurs when COVID-19 restrictions in Uganda forced everyone to remain at home. "He had a motorcycle, I had a plan. That's how we started," 32-year-old Shamim told DW. Before the COVID-19 pandemic, Shamim sold tilapia and Nile perch from nearby Lake Victoria. But when coronavirus lockdown measures were implemented, her clients stayed away. To keep her business running, she thought she could connect with her clients via Facebook, WhatsApp, and other online social media platforms. Shamim is now able to sell her goods with the help of her brother Moses, who makes about eight deliveries a day on his motorbike, navigating Kampala city traffic. Her new business model was so successful, it even brought her more clients than she had before the pandemic hit the east African nation. Jumia CEO Juliet Anammah (center) celebrates on the floor of the New York Stock Exchange. Jumia is the first African tech startup company to be listed on the NYSE Shamim's story resonates in many African countries. While the pandemic severely restricts people's movement, online trade is picking up fast. Small, medium, and large entrepreneurs alike are now doing business online. The Ivorian online fashion label Afrikrea told DW that orders have doubled since February, resulting in a 53% increase in turnover. Every third order includes hand-sewn protective masks. Nigerian online retailer Jumia – which has been struggling with heavy price losses since its US IPO a year ago – also reported its highest earnings in...

DAR ES SALAAM (Reuters) - Tanzania’s economic growth is expected to drop to 2.5% in 2020 from 6.9% last year, the World Bank said on Monday, citing the impact of the coronavirus pandemic. “International travel bans and caution against contracting the virus have severely hurt the tourism sector, which had been one of the fastest-growing sectors in the economy,” the bank said in a statement. It said the east African country’s economy would also be hurt by a decline in export demand, supply chain disruptions for domestic manufacturers and weak domestic consumption. Source: Reuters