COVID-19 is a global pandemic that has killed over 200 000 people, more than the World War II as observed by the UN Secretary General Antonio Gueterres. The IMF has summed the pandemic’s economic effects as the Great Lockdown that far exceeds effects of the 1930s Great Depression. Domestic and international trade has stalled save for trade in pharmaceuticals, protective equipment and other life-saving essentials as countries have closed their borders in an effort to contain the spread of the coronavirus. Stalling operationalisation of the African Continental Free Trade Agreement may be one of the major casualties of Covid-19 as discussions to postpone AfCFTA to January 2021 gain momentum. The rationale behind stalling AfCFTA in the face of the marauding Covid-19 is grudgingly acceptable as it sadly means delaying the onset of Africa’s industrialisation. AfCFTA is premised on the success associated with trade liberalisation which is also linked to trade facilitation. While in the short term, Micro Small Medium Enterprises (MSMEs) and women businesses may not benefit from trade liberalisation, it is in the long term that the country experiences welfare gains. This will be evident in growth of MSMEs, increased competition, economies of scale, reduced trade barriers, total growth of the economy, employment creation and positive flows to the fiscus. Women-owned businesses and MSMEs account for almost 70 percent of informal cross border trade. Women have been disproportionately affected by Covid-19 due to the multiple roles they play in the economy as workers, traders, tax payers and consumers. As...

Kampala, Uganda | THE INDEPENDENT | President Yoweri Museveni has assented to the controversial Sugar Bill putting to an end the push and pull he had with parliament. The president had earlier on declined to assent the bill saying the absence of zoning in the sugar industry would kill the economy and directed Parliament to ensure that zoning is added in the proposed law. He also advised that small farmers with less than six acres should not be allowed into growing sugarcane but medium and large scale farmers should partner with the factories. But Committee chairperson Robert Kasule Ssebunya also said that they had no further amendments to make to the draft. In the same spirit, the Speaker of Parliament Rebecca Kadaga ruled without debate that the house considered the bill after careful scrutiny, enacted it and it was sent for assent adding that Parliament found no reason to interfere with the position previously taken. The parliament committee on trade had recommended that a 25 Kilometer radius be stipulated in the sugar bill as the minimum distance between millers and that the factories that fall within the radius be relocated at a cost met by the government that had earlier issued the license. The talk was also rife in the corridors of power of how some MPs had been bribed to pass the bill. In a press statement issued by Linda Nabusayi, the president’s press secretary, it was confirmed that president assented to the bill on Friday. On top of...

THE volume of cargo handled through Tanzania ports increased to 4.7 million tonnes in the quarter ending December last year compared with 4.2 million tonnes in the corresponding quarter 2018, with Dar es Salaam port accounting for 94.2 per cent. According to the Bank of Tanzania (BoT), consolidated zonal economic performance report for the quarter ending December shows that the increase in the volume of cargoes was dominantly handled in Dar es Salaam and Mtwara ports. The increase in volume of cargo handled reflected the government efforts to improve and expand the ports by modernizing and harmonising operations as well as improvement in infrastructure especially roads. The expansion of Dar es Salaam port under the Dar es Salaam Maritime Gateway Project (DMGP), aimed at improving the effectiveness and efficiency of the port for the benefit of public and private stakeholders. It involves two components, including improving the physical infrastructure and institutional strengthening and implementation assistance. The first phase involves deepening of berth number one to seven to enable large vessels to dock as opposed to the current situation. During the period under review, the Dar es Salaam port handled 4.4 million tonnes which is equivalent to 94.2 per cent compared to 3.9 million tonnes in the corresponding period 2018. The volume of cargo handled through Mtwara port increased by four folds on account of increase in shipment of cashew nuts to foreign markets, which is equivalent to 66.1 per cent increase. Cargo handled through the Mtwara port during the reference...

In a 17-page document titled 'EAC Administrative Guidelines to Facilitate Movement of Goods and Services During the Covid-19 Pandemic' sent to the six partner states, the EAC Secretariat called on member states to enforce mandatory screening or testing of truck drivers and crew at border posts. Undertaking mobile monitoring during transit at selected inland points is also important, it said. Partner states were further advised to quarantine those with symptoms for 14 days under the supervision of the respective health ministries. To facilitate cross-border trade during the ongoing crisis occasioned by the novel coronavirus, member countries must adopt a multi-sectoral and coordinated approach, it said. They need to provide access at all designated points for entry and exit of goods and treat cross-border movement of trucks and cargo as essential services, the document underlined. Items to be prioritized as essential goods to mitigate the Covid-19 pandemic are food, fuel, medicaments, agricultural products and inputs, security supplies, emergency and humanitarian relief goods, it said. To mitigate critical shortages of equipment and supplies, member states need to promote local production of the items required to contain Covid-19, for example, medicaments, sanitizers, protective gear and ventilators, it said. “Partner states have further been advised to support the micro, small and medium enterprises (MSMEs) sector which employs many East Africans by exploring avenues to enable MSMEs to remain in business and expand as a foundation for the post-Covid-19 recovery process,” the statement reads in part. Transporters and transporters' associations must adhere to the requirement...

The Covid-19 pandemic is literally changing the way we live.. Several countries have imposed stringent lockdown measures a way of combating the dreaded disease. The Stay at Home restrictions have resulted into a slowdown of the social and economic life, with most activities coming to a near standstill and haunting images of empty streets from Lagos to Kampala, to Cape Town to Addis Ababa becoming part of the ‘new normal’. Unlike other global crises, such as the 2008 financial crisis, or the 2014 commodities crisis, which put stress on capital markets and the macro and formal economies, the Covid-19 pandemic has impacted both formal and informal economies. The lockdowns and curfews have had a disproportionate impact on the most vulnerable people of our societies; particularly women and the urban poor, who are mostly engaged in informal activities with a daily income, and do not have the luxury of working from home. Majority of the daily income earners, as well as micro and small entrepreneurs, will not be able to meet their loan obligations because their sources of income have literally dried up. Also, the collection of microfinance loans, which usually happens on a cash basis during weekly group meetings, has come to a halt as authorities have put in place strong social distancing guidelines. Most of these people have not only lost their livelihoods, in this Covid-19 lockdown, but have also lost the capital that they had for their informal activities. Such capital normally ranges from between $30 and $100....

The increasing calls for more economic protectionism spell disaster for Africa – and the UK must use its new freedom to rebut them Covid-19 has now spread to all corners of Africa and, as the rate of infections increase, the continent's economies are coming to a crashing halt, risking the reversal of two decades of economic progress. Trade has been the heartbeat of Africa's economic success, with the UK alone importing £12.7bn in goods and services from Africa in 2016, much of which from the agriculture sector. But this vital economic activity, and the millions of livelihoods it sustains, is under threat. Trade volumes in the East African Community are down by up to 25pc since the beginning of 2020, with even worse damage in the informal sector. There are warnings of a food security disaster on the continent. The threat is not only from Covid-19 itself. As Dr Dirk Willem te Velde, of the Overseas Development Institute, explains: "Some in the UK – and other large economies around the world – are arguing for autarky or increasingly protectionist policies that would wreak havoc on trade with Africa, often disguised as well-meaning social and environmental objectives, or attempts to protect domestic businesses and jobs. These protectionist voices must be resisted." Policymakers must understand the full consequences if stringent new production standards are imposed on imports, as some in the UK are calling for. Proxy export embargo Exports from much of Africa would be effectively locked out from the UK and...

Protectionism is seemingly on the rise and this, combined with the already devastating economic effects of the COVID-19 pandemic, may have serious repercussions for African trade. CNBC Africa spoke with Frank Matsaert, CEO of Trade Mark East Africa on how to keep trade between Africa and the rest of the world flowing. Source: CNBC Africa

AS the Covid-19 pandemic shatters global trade and the World Bank warns of that sub-Saharan Africa is on the brink of sliding into a first recession in 25 years, the Tanzania Private Sector Foundation (TPSF) and the government remain united to curb the effects of the looming recession. All along the TPSF has said it stands together with the government in ensuring agricultural and industrial producers do not put working tools aside for that will be catastrophic. Instead, the economically active population must struggle to sustain production while simultaneously fighting against the vexing disease. The TPSF has held a series of meetings- alone or jointly with the government encouraging its members to promote production in all sectors of the national economy despite hurdles created by the corona epidemic. In a press statement released on April 21, 2020, the TPSF said: “Tanzania, like any other country, has suffered adversely from the global Covid-19 outbreak. The TPSF commends the government for effective measures undertaken to combat the spread and impact of Covid-19 in collaboration with the private sector. In all meetings and on other occasions, the TPSF urges its members to do three things to win the coronavirus war. On March 23, 2020, at a function in Dar es Salaam to salute the Tanzania Horticultural Association (Taha) for striking an innovative cargo deal with the Ethiopian Airlines under which Tanzania’s horticultural exports are flown to Arabian, European and American markets thrice a week, TPSF Chairperson, Angelina Ngalula stressed three elements on the...

COVID-19 has now spread to all corners of Africa and, as the rate of infections increase, the continent’s economies are coming to a crashing halt, risking the reversal of two decades of economic progress. Trade has been the heartbeat of Africa’s economic success, with the UK alone importing £12.7bn in goods and services from Africa in 2016, much of which from the agriculture sector. But this vital economic activity, and the millions of livelihoods it sustains, is under threat. Trade volumes in the East African Community are down by up to 25% since the beginning of 2020, with even worse damage in the informal sector. There are warnings of a food security disaster on the continent. The threat is not only from COVID-19 itself. As the Overseas Development Institute’s Dirk Willem te Velde explains: “Some in the UK – and other large economies around the world – are arguing for autarky or increasingly protectionist policies that would wreak havoc on trade with Africa, often disguised as well-meaning social and environmental objectives, or attempts to protect domestic businesses and jobs. These protectionist voices must be resisted.” Policy makers must understand the full consequences if stringent new production standards are imposed on imports, as some in the UK are calling for. Exports from much of Africa would be effectively locked-out from the UK and their other major markets around the world, leading to countless jobs being lost on the Continent where unemployment rates are already as high as 70%. At the same...

Trade in the East African community has been greatly affected by the COVID-19 pandemic with exports in the region declining by more than 60 per cent in the past two months according to the East Africa Business Council. Join this CNBC Africa panel of stakeholders and experts for more on this Source: CNBC Africa