ABIDJAN, Côte d'Ivoire, 19 November 2015 / PRN Africa / — A key activity of the just concluded Programme for Infrastructure Development in Africa (PIDA) Week was a site visit to the Abidjan-Lagos corridor, where participants came face to face with the reality of integrating Africa through infrastructure. The Abidjan –Lagos Corridor is a PIDA flagship project. The 1,028-kilometre road, under construction, connects Abidjan, Accra, Cotonou, Lagos and Lome, considered to be West Africa's largest and most economically dynamic cities, with a combined population of more than 35 million people. The six-lane corridor also links vibrant sea ports, serving all the region's landlocked countries, thus facilitating intra and inter regional trade. “The corridor is one of the most important developments in the region; it accounts for about 75 percent of trade in the ECOWAS region”, said Edy Anthony, a transport expert with Abidjan-Lagos Corridor Organisation (ALCO). “When you connect one country with another; one region with another, you reduce transport and trade barriers, expanding business opportunities between countries. This leads to growth of local economies and the region's at large, Anthony emphasised. The corridor is perceived as an instrument for driving the implementation of ECOWAS's flagship protocol on free movement of people and goods. The presidents of the five countries- Cote d'Ivoire, Ghana, Benin, Nigeria and Togo – approved the facility, which is a pilot project under the PIDA Service Delivery Mechanism. The African Development Bank (AfDB) is considering US$16 million support package to finance preparatory studies for sections of...

Regional free trade agreements promise to unify the continent's fragmented markets, writes Julians Amboko By and large, the world is caught in a phase of global economic transition: the possibility of the US and Europe exiting the zero-interest-rate terrain lurks in the horizon, despite seeming remote in the recent past; in China, the government is attempting to rebalance growth from over-reliance on exports as aggregate growth moderates toward the 6-to-7 percent band in 2015 (data from the statistical agency indicates growth in the second quarter stood at 6.9 percent) and in Japan, Abenomics is still firefighting further economic downturn. In Africa, economies are grappling with spillovers from adverse economic conditions in emerging markets such as China and Brazil, as well as a slump in commodity prices that has left countries exposed to elevated fiscal and foreign exchange pressures. In February, Nigeria, Africa’s largest oil producer, slashed capital expenditure to 8.9 percent of planned expenditure from 23.7 percent in 2014, while the tanking of copper prices has seen the Zambian Kwacha depreciate 96.7 percent year-over-year as of 28 October this year. This explains why African economies are increasingly reaching for more robust regional integration and trade, in a bid to put foam on the runway and cushion themselves from a volatile external environment. As far as regional integration within the East African Community goes, it is not the typical occurrence of rhetoric moving ahead of evidence. For instance, all that is needed in cross-border travel for citizens of Kenya, Uganda and...

Dar es Salaam — Congolese business community which uses the Dar es Salaam port yesterday said they are optimistic that new President John Magufuli will use his experience in the transport sector to address challenges that traders have been encountering at the Dar es Salaam port. The Community of Congolese Businessmen in Tanzania (CCBT) chairman, Mr Mukendi Kabobu Kabobu, told The Citizen that they have confidence that Dr Magufuli can strengthen the relationship between Tanzania Revenue Authority (TRA). "The business community is optimistic that the problems we have been facing will be addressed under Dr Magufuli's administration," said Mr Kabobu. DRC is the second country in the list of countries that use Dar es Salaam Port to import cargo prominently behind Zambia. Late last year during then minister for Transport Harrison Mwakyembe's visit to the port CCBT asked him to extend the deadline for returning empty containers. They told the minister that 30 days weren't enough for them to return empty containers due to the days that it takes a truck to transport a cargo to DRC and some delays that they encounter on the road. Source: All Africa

In 2010, Kenyan and Chinese archaeologists digging on the Indian Ocean coast found a haul of brass coins that have rewritten Africa’s trade history. Minted in the early 15th century, the coins show that Chinese missions were reaching the African continent 100 years before Europeans arrived. In the 1950s, newly-independent economies across Asia and Africa began to revive this ancient shipping route, but progress was slow. Trade between China and Africa only reached the US$1bn mark in the 1980s, with India-Africa trade following in 1991. This century, however, Asia-Africa trade has hit the fast lane. Trade between China and Africa has ballooned nearly seventeen-fold to $135bn, with trade between Africa and India surging six-fold to $55bn. This means more markets for African exports and access for Africans to a wider variety of consumer goods – often cheaper and better adapted to local conditions. Africa’s developing Meanwhile, imports of more affordable industrial goods – from 3G phone masts to efficient machine tools – have accelerated Africa’s own growth and development. Global Asian companies spanning agriculture, telecommunications, and infrastructure, such as Samsung and China Communications Construction Corp have made Africa-based enterprises a focal point for their foreign investments. Africa has also begun, slowly, to trade with itself. Companies like the Nigerian conglomerate Dangote Group are leading the way, expanding across the continent, whilst MTN’s telecoms presence across the continent continues to grow – where trade and connectivity are inextricably linked. Trade between Africa countries has doubled since 1990, in part jump-started by the...

As markets around the world become more integrated, trade policy is increasingly looked to as a path for building robust market systems, generating economic growth, and encouraging private entrepreneurship. Throughout the world, trade and development are closely intertwined, as evidenced by the recent launch of both the Tripartite Free Trade Agreement (TFTA) that will unite the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA), and the Southern African Development Community (SADC), and the larger African Continental Free Trade Agreement (CFTA). These landmark trade initiatives are centred on how to use trade policy as a lever for regional integration and economic development, and they will require not only in-depth negotiations, but also ongoing legal and regulatory reform to align rules and strengthen institutions. As this paper will demonstrate, a stronger focus on development-led legal and regulatory reform will be needed to support negotiation and implementation of both trade agreements and World Trade Organization (WTO) disciplines and should be the lens through which trade and development is approached nationally, regionally, and multilaterally. Within institutions like the WTO, current approaches to trade and development focus primarily on generating and expanding market access to developed country markets, mainly through trade preference programmes, and special and differential (S&D) treatment for developing countries. While these aspects are important, they are not sufficient to achieve long-term economic diversification, improvements in livelihoods, and poverty reduction. Throughout the market, aid for trade (AfT) plays a pivotal role in helping countries and their stakeholders take...

LAST week, key stakeholders in the transport sector met in Dar es Salaam to deliberate on issues that push cost of doing business, particularly along the Dar es Salaam corridor extending from the port to Tunduma, Lusaka and Lubumbashi. The meeting attracted members from the Tanzania Truck Owners Association (TATOA), Tanzania’s Ambassador to the DRC, Mr Anthony Cheche, and Tanzania Drivers Workers Union (TADWU). Transporters identified various areas and factors that cause delays in the whole transport chain from the Dar es Salaam port, traffic jam, weighing bridges and checkpoints as well as at the border post. They asked the government to intervene to reduce the cost of doing business. More investment have been directed into the improvement of the central corridor from Dar port to Kigali and Bujumbura and very little extended to the Dar es Salaam corridor from the Dar port to Lubumbashi and Lusaka. Statistics show that about 4 million tons are served through the Dar es Salaam corridor to DRC and Zambia annually and only less than a million tones ferried through the Central Corridor to Kigali and Bujumbura. This gives clear indication that the Dar es Salaam corridor is earning the country substantial amount of revenues compared to the central corridor. Thus the government should consider removing road impediments to foster timely delivery of transit goods and improve its competitiveness in the Dar es Salaam corridor. They said despite the improvements made on network systems intended to increase cargo clearance efficiency at the port, it...

MOMBASA, KENYA — A washed-out road in Kenya has blocked the flow of goods from Kenya's Indian Ocean port of Mombasa for a second straight day, officials said on Wednesday, choking the main trade route into East Africa. Mombasa handles imports such as fuel and other vital goods for Uganda, Burundi, Rwanda, South Sudan and eastern Democratic Republic of the Congo. Queues began forming at about 10 a.m. local time (0700GMT) on Wednesday when heavy rains swept away a temporary road about 50km from Mombasa. The road was being used as a diversion while the main highway leading to the capital, Nairobi, was repaired. Police and truckers stuck on the road say the queues are now almost 50km long, with many trucks, busses and cars stranded far from towns and villages where they can purchase water and food. “I have not eaten since yesterday morning, not showered and not even changed clothes,” Nathaniel Chweya, a truck driver hauling 10 cars to the Ugandan capital of Kampala, told Reuters. Police urged patience as some motorists threatened to stage protests. “We are working on it. This is not an easy task and we are all affected. Give us time,” Martin Kariuki, Coast regional traffic police commandant, said. Willingtone Kiberenge, acting chief executive of the truck owners' umbrella body, Kenya Transporters Association, said the delays were piling on losses for trucking companies. “We have more than 1,500 trucks stuck in the traffic since yesterday. Nothing much has changed and the problem is escalating....

Valentine Rugwabiza, the Minister for East African Community, Affairs has urged border communities to take advantage of regional integration to develop. Addressing residents of Kirehe District at the official closure of the ministry's awareness week, over the weekend, Rugwabiza observed that it was the responsibility of the private sector to make good use of the opportunities that the region presents. The awareness was conducted to sensitise Rwandans on the benefits and opportunities of the EAC integration. The event was attended among others by Rwanda's Mps to the East African Legislative Assembly, Dr James Ndahiro and Valerie Nyirahabineza, and the Governor of Eastern Province Odette Uwamariya. Rugwabiza called on Rwandans to be aggressive if they are to benefit from the regional integration process. She said the East African Community put in place policies and structures to support and create an enabling environment for micro cross border traders in the region. "There's a lot we can get from the integration... for the past eight years we have been committed to ensuring that local businesses receive all the support they need to do their businesses... it can be done better through public private partnerships," she said. "Small businesses across borders are supposed to be tax free... you must know your rights so that no one exploits you. We shall be on close look to make sure all the agreed protocols are observed." Rugwabiza added. The minister pointed out that Rwanda joined the EAC with an aim of tapping into the region's economic benefits,...

Increasing political and economic integration is gaining ground in East Africa, but how are the states in this region likely to benefit from the process and what can they learn from the European model? The East African Community (EAC), which comprises Tanzania, Kenya, Uganda, Rwanda and Burundi, is further strengthening ties as the five states push towards closer integration. The region already counts as one of the most integrated areas in the world after Europe, and is largely based on other communities particularly the European Union. This also reflects a global trend, as states seek greater cross-border cooperation. Tom Ottervanger, of counsel at Allen & Overy in Amsterdam notes that there has already been significant progress: “This is the second attempt  [after the collapse of the original EAC in 1977] in East Africa to integrate their economies, although this is more than an attempt, a lot has already been accomplished.” However, he notes that although a lot has been accomplished on paper, there is still some way to go. Allen & Overy has been working with local law firms and people from different jurisdictions – including civil servants and judges – to promote integration in the East African region. However, Ottervanger states that “it is important to note that we are taking a comparative approach rather than a colonial approach in regards to what can be done in East Africa”. Economic integration is part of a wider gradual trend across Africa and Ottervanger notes that promoting further integration across Africa...

Despite being dwarfed by other African countries, the Seychelles archipelago in the western Indian Ocean is aiming to become a hub for trade between African nations, emulating small countries such as Singapore which acts as an Asian hub for the global commodities trade. Speaking at the island’s ‘African Prosperity conference’ the Chairman of the Seychelles Chamber of Commerce and Industry, (SCCI) Marco Francis said: "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.” In an effort to boost trade, leaders from 26 African countries met earlier this year to sign a declaration to this end in Sharm El Sheikh, Egypt which will establish a free-trade zone spanning almost the entire eastern half of the continent. The Tripartite Free Trade Agreement (TFTA) incorporates member countries from the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Community (SADC). It therefore stretches from the southernmost tip of the continent to Egypt, which is the continent’s most northern nation. Although Seychelles’ regional imports to these nations totalled as much as $214 million in 2012, this was offset by weak reciprocal exports of $3.8 million, which indicates that, if nothing else, much more still can be achieved in this area. Francis said: “We need to remove barriers…air access, vessel infrastructure to transport containers. These are...