THE Civic United Front (CUF) flag bearer, Prof Ibrahim Lipumba has pledged to strengthen the economy and improve provision of education if elected in the forthcoming general election. Prof Lipumba said that to strengthen the economy, his government will put much effort in improving the agricultural sector, as the majority of Tanzanians complain over the sector’s poor performance. The CUF presidential candidate made the pledges yesterday when addressing a campaign rally at Bukoba municipality in Kagera Region. He appealed to the residents to vote for him as his party has the best manifesto where education sector improvement and economic growth are well addressed. He said that Kagera Region is strategically positioned with a number of agricultural potentials, where it can trade in cereals with Burundi, Uganda and Rwanda. “We will create an enabling business environment that will allow farmers to sell their food and cash crops in neighbouring countries,” he stated, alluding to setting up irrigation schemes as Kagera is blessed with a number of rivers emptying into Lake Victoria. He expressed concern that Lake Regions with a population of over five million people uses little of its irrigation potential, underlining that the residents will generate good incomes through agro-sector improvements. Kagera is blessed with various resources in agriculture, livestock and fish farming which if properly tapped could lift the majority of the residents out of poverty, he asserted. “If elected, I will make sure you benefit with available markets in the East African Community (EAC). For our economy to...

“Investment and Trade for Africa’s Economic Development” – a public webinar held on Wednesday – targeted opportunities for cross-border collaboration between Africa and Germany. The African Export-Import Bank announced its plans to sign a Memorandum of Understanding with German car manufacturers to establish an automotive industry in Africa. The Germany-Africa Business Forum (GABF), Africa Oil & Power and the African Energy Chamber co-hosted the webinar, as part of a GABF cooperation-focused series. Berlin, 24th of September, The Germany-Africa Business Forum (GABF) hosted its second installment of its German-African cooperation-focused webinar series on Wednesday, aimed at outlining the opportunities for sustainable FDI between Germany and the African continent. The panel comprised H.E. Günter Nooke, Africa Envoy to German Chancellor Angela Merkel; NJ Ayuk, Executive Chairman of the African Energy Chamber; and Rene Awambeng, Global Head Client Relationship at the African Export-Import Bank (Afreximbank). Anchored by the theme of investment and trade for African economic development, the opening keynote was delivered by H.E. Nooke, and outlined four key success factors in driving Africa’s economic development: investment and business climate, transport, energy and technological infrastructure, available workforce, and access to markets. Digitalization and green energy were advanced as two of the critical sectors for facilitating Africa’s economic and social development. Africa contains a young, tech-savvy population, noted H.E. Nooke, translating to smooth technological adoption and enhanced opportunities for both consumers and businesses. Highlighting efforts to expand global market reach, H.E. Nooke noted the anticipated benefits of the recently adopted African Continental Free Trade...

In recent months, the U.S. began negotiations for a bilateral free trade agreement with Kenya. These negotiations are aligned with the current administration’s vision for trade reciprocity rather than unilateral trade preference programs. Although these negotiations could produce the first bilateral trade agreement between the U.S. and a sub-Saharan African country, a shift from regional preferential trade agreements to bilateral free trade agreements could undermine the growth of smaller countries, who may not be of enough economic interest to the United States. Bilateral agreements could also undermine efforts to create a regional economic bloc through the African Continental Free Trade Area (AfCFTA). When President Bill Clinton signed the African Growth and Opportunity Act (AGOA) in 2000, African countries were given a competitive edge by providing unilateral duty-free exports for 6,500 products from Africa to the United States. Twenty years after AGOA was first adopted, we see that it has created long-term, sustainable growth by stimulating the private sector and creating jobs in a region where many countries are battling high unemployment, thereby addressing structural challenges the region faces. Additionally, in choosing a regional approach for the trade agreement, Clinton empowered both big players like South Africa and smaller players like Lesotho. In many ways, this approach aligns with the “trade not aid” mantra. Although AGOA has been extended twice, most recently until 2025, it has come under threats over the last four years, as tariffs were imposed on key steel and aluminum products and duty-free access was suspended for apparel...

Governments in Africa are being urged to harmonise trade policies to ensure the continent strikes the right balance between tackling coronavirus and keeping trade flowing. In a report the Economic Commission for Africa (ECA) said inefficiencies and disruptions to cross-border trade risk holding back the continent’s development goals, though innovations such as a common African Union (AU) Covid-19 test certificate for truck drivers were a step forward. Read original article

THE 2020 Africa Agriculture Trade Monitor (AATM), published by the International Food Policy Research Institute (IFPRI), has recently been released, providing an analysis of continental and regional trends in African agricultural trade flows and policies. According to the AATM report, the third in a series of flagship reports, policy reactions among the world’s leading food and agricultural producers during the coronavirus pandemic since the beginning of the year have caused disruptions in world supply chains and threatened food-security systems in food import-dependent countries. Furthermore, measures to contain the virus have magnified the negative impact of the crisis on intra-continental trade flows and the livelihoods of millions of people across Africa. But opportunities lie in the crisis, as the foreword to the report points out. Among these is a strong political will to improve intra-African integration with the ratification of the African Continental Free Trade Area (AfCFTA) agreement. This agreement, launched in July 2019, aims to eliminate tariff and non-tariff measures on goods, improve continental integration, and speed up customs procedures that remain a serious barrier to trade performance in Africa. According to the report, countries should not let the pandemic stop progress towards economic integration. It said that agreements like the AfCFTA could provide not only a solid basis for long-term economic development, but also a means of effectively fighting future pandemics by facilitating the cross-border trade of food and medical goods. According to the report, virtual negotiations on the AfCFTA could begin in the coming days and set a...

TANZANIA and Burundi have committed to deepen and strengthen economic ties through expanded trade and investment, with a goal of achieving decent livelihoods in both countries. President John Magufuli and his Burundian counterpart, President Evariste Ndayishimiye have agreed to work together to ensure economic growth and advance peace and stability in the two countries. The two presidents have directed their Ministers for Foreign Affairs and East Africa Cooperation and Ministers for Works, Transport and Communication to meet immediately so that they can set strategies for execution of various projects. President Ndayishimiye was on his first state visit since he was elected in June, this year. The Burundian Head of State who was accompanied by his wife, ministers and other governmental officials was warmly welcome to the Western region of Kigoma with a colourful military parade and a 21-gun salute. Speaking after holding talks with his guest at the Kigoma State Lodge, President Magufuli said Tanzania was happy to receive the Burundian President, and that it was a great honour for the country to be chosen for the first state visit. "President Ndayishimiye has given us great respect, this is his first state visit since he was sworn in as the president of Burundi, and he chose Tanzania to be the first country for him to visit," said President Magufuli. The Head of State said they have agreed to strengthen economic ties by boosting businesses and working together in many areas, saying the two countries need to increase trade volume for...

In Summary Tanzania had last month banned Kenyan airlines from its space. It lifted the suspension last week after Kenya opened its skies to her flights. The resumption of flights between Kenya and Tanzania is key for bilateral trade, the East African Business Council has said. It will help grow trade and investments between the two countries, the council says. "This will spur regional tourism, intra-EAC trade and bilateral trade between Kenya and Tanzania offering steady business and economic rebound,” chief executive Peter Mathuki said over the weekend. Tanzania had last month banned Kenyan airlines from its space, in retaliation to Kenya’s decision to put in place strict travel measures for its citizens over Covid-19 concerns. It lifted the suspension last week after Kenya opened its skies to her flights. "For the purpose of this release, therefore, the resumption and restoration of flights for all operators are with immediate effect," Tanzanian Civil Aviation Authority director-general Hamza Johari said. The Kenyan Government added Tanzania to the list of 147 nations whose citizens are exempted from the 14-day mandatory quarantine upon arrival. Other countries that have been added to the list include Ghana, Nigeria and Sierra Leone. Though Kenyan and Tanzania have been falling in and out of love, the latest developments are expected to boost trade which is slightly in favour of Kenya. In 2019, the value of Kenya’s exports to Tanzania stood at approximately $336 million (Sh 36.4 billion) while imports were valued at $275. Million (Sh29.7 billion). “The East...

SUMMARY Women stand to gain up to 2.5 percent more in real income with removal of trade barriers, a new World Bank report has shown. The joint report by the World Bank Group and the World Trade Organisation has revealed that trade openness can increase women income and welfare by easing business activities and reducing the amount spent on specific goods such as food, clothing and childcare items that are highly demanded by women. The report, Women and Trade: The Role of Trade in Promoting Women’s Equality, cites that higher tax burden is the result of many applied duties and higher spending on imported goods by women consumers. Women stand to gain up to 2.5 percent more in real income with removal of trade barriers, a new World Bank report has shown. The joint report by the World Bank Group and the World Trade Organisation has revealed that trade openness can increase women income and welfare by easing business activities and reducing the amount spent on specific goods such as food, clothing and childcare items that are highly demanded by women. The report, Women and Trade: The Role of Trade in Promoting Women’s Equality, cites that higher tax burden is the result of many applied duties and higher spending on imported goods by women consumers. In a sample conducted in 54 developing economies, the current tariff structure in 78 percent of countries benefit male- headed households. Even though Kenya surpassed most economies, higher tariffs which translate to a lower share...

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. he 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. Also read: The East African region lays plans of opening-up 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....

TANZANIA and Rwanda have agreed to meet at the end of this month to discuss and address various bottlenecks that impede smooth flow of trade between them. Rwandan High Commissioner to Tanzania, Maj.Gen. Charles Karamba unveiled this in Dar es Salaam on Tuesday in a brief meeting with the Tanzania Private Sector Foundation (TPSF), aimed at cementing trade relations between the countries. Speaking at the meeting, the TPSF official, Mr Kennedy Rwehumbiza said one of the trading barriers include Rwanda's refusal to accept Covid-19 test certificates from Tanzania and denial of Tanzanians truck drivers to cross Rwanda border, who want to off load cargos at the border, thus causing delay, increase cost and time of doing business. "Despite the agreement between the two countries, there are still challenges to facilitate transit of perishable, petroleum and transit goods via Rwanda," he said, adding that: On the other side, he added, Rwanda has been hesitating to use Dar es Salaam port due to un-harmonized trade policies, congestion (at the port), numerous checkpoints along the route, and theft, among others. He said that despite the challenges, the statistics show that Rwanda imports from Tanzania was 224.54 million US dollars and Rwanda exports to Tanzania 5.1 million US dollars during 2019, according to the United Nations COMTRADE database on international trade. Responding, the High Commissioner stressed that: "I see the meeting is of importance and should take place in these few coming days, and include Private Foundations of both sides and other stakeholders, mostly...