Trade among the interstate EAC members is still very low despite the various protocols that allow free movement of people and goods in the region. The East African Business Council says the volumes in trade among member states are as low 2%. Peter Mathuki, the CEO East African Business Council spoke at a meeting with private sector players at Busia border. Source: NTV

Kampala, Uganda | JULIUS BUSINGE | Private sector companies have a chance to triple their growth once they adapt to the changing technology and business environment. This was the key message delivered by Dr. Geci Karuri – Sebina in a keynote speech at the second 2019 Mkutano Economic Forum held at Sheraton Hotel, Kampala on Sept.12. Sebina is a well-respected thought leader on innovation, urbanisation and the 4th industrial revolution. On the other hand, Mkutano is a “Gathering for a Purpose” where open debate leads to solutions, according to David Ofungi, the brain behind the Mkutano.  This Mkutano edition was in line with the United Nation’s 9thSustainable Development Goal (SDG 9) that focuses on industry, innovation and infrastructure. This year’s Forum was attended by slightly over 200 participants mainly from the private sector and research institutions. The focus this time around was on the role of Science, Technology and innovation in Economic Development. Sebina told business leaders to understand their own institutions well, do what they can and organise to do it innovatively. She added that investments in innovation should connect with research and development, human resource, capital development and physical infrastructure put in place by the private sector and the government. The key drivers of innovation, she said, are research institutes, innovators, technology, entrepreneurs, knowledge brokers, innovation policymakers, local intermediates, innovation brokers and funding organisations. “Focus on generating new knowledge and technologies and creating customer value,” she said. From a policy angle, she said focus should be on the government...

President Paul Kagame on Tuesday said that Africa is ready to play her role in addressing global challenges such as global inequality and others which affect the continent directly, which can only be addressed by working together. President Kagame made the remarks while addressing the United Nations General Assembly (UNGA) as global leaders gather in New York to galvanize multilateral efforts for poverty eradication, quality education, climate action, and inclusion. In his speech, President said the international community stands at a crossroads because the next decade could be remembered in history as a turning point, or as the moment when multilateralism lost its way, highlighting some of the key milestones that will set the momentum ahead. “Fortunately, the path forward is clear. Never before have we had such well-defined road-maps for joint action on development, climate change, and global health,” President Kagame said, citing the Universal Health Care and Climate Action declarations adopted this week as key steps. “The transformational potential of Universal Health Coverage is now at the top of the global health agenda. This is thanks to the outstanding leadership of the World Health Organisation and many other stakeholders,” “In Rwanda, more than 90 percent of the population has insurance coverage. This has contributed to significant improvement in health outcomes. It shows that it is possible for countries at every income level to make health care affordable and accessible for all,” President Kagame said. The Head of State called on global leaders to commit to replenishing the Global...

For many African economies, promoting trade is a priority. Rightfully so, considering its potential snowball effect. When trade flourishes, it sets off a virtuous circle, a country’s goods enjoy ready market, producers and the entire value chain benefit and growth spreads out. However, turning this vision into a reality is a challenge. Trade remains depressed below optimum levels despite sustained investment in smoothening movement of goods. Over the years, billions of dollars have gone into interconnecting the continent by expanding existing roads, railways, air and waterways while building new ones. The rollout of infrastructure has been backed by sustained diplomatic efforts under the auspices of regional trade blocs to ease movement of goods and people, as well as free trade protocols, such as the East African Community common market. These recently climaxed with the proposed African Continental Free Trade Area (ACFTA) that is being ratified and is expected to be a game-changer in unlocking intra-African trade. All these notwithstanding, the higher cost of goods made in Africa has rendered them uncompetitive on the global market. Source: Business Daily

Tax directors and commissioner generals from across the continent are in Kampala to lobby for the creation and adoption of one single window system as the African Continental Free Trade Area plans to roll out next year. According to the AfCFTA, the single window system could reduce transaction time and costs especially in the process of documentation of exports and imports across the continent. Speaking at the opening of the five-day 11th African Union Directors conference at the Commonwealth Resort, Munyonyo, Rossette Nyirikindi Katungye, the advisor on Regional Integration, Office of the Chairperson at AU, said intra-African trade is expected to grow when the tax bodies deepen their linkages. “The first thing is to have clear rules on how we are going to trade and some of the contentious issues include quick dispute resettlements, clear rules of origin and reduction of non-tax barriers. All these will reduce the cost of doing business and increase our trading as Africa,” she said. The conference is under the theme ‘The Entry into Force of the Agreement Establishing the African Continental Free Trade Area (AfCFTA): Implications to African Customs Administrations.’ Dicksons Kateshumbwa, the commissioner for Customs at Uganda Revenue Authority, said some issues have been resolved to promote intra-Africa trade. “We are discussing issues of borders, tonnage, compliance, capacity building, gender, among others; the recommendations will be tabled before the director generals,” he said. According to Kateshumbwa, just like Uganda has the East African single window system, countries hope the single window system can...

Despite the current pessimism surrounding the future of Kenya Airways, the International Air Transport Association forecasts more than double growth for the country’s air transport sector in the next 20 years. According to IATA, the sector will grow by 249 per cent over the period if the current trends are maintained, contributing $11.3 billion annually to Kenya’s GDP and supporting an estimated 859,000 jobs by 2037. BUSY ROUTE The findings were made in the Value of Aviation Report for Kenya that was launched during IATA’s Regional Aviation Forum hosted by Kenya Airways on September 17. The report looked at the total contribution of jobs and spending generated by airlines and their supply chain; trade and tourism flows; investments by users of all airlines serving a particular country as well as the city pair connections that make these flows possible. According to IATA, the air transport sector contributed $3.2 billion to the economy, amounting to 4.6 per cent of the country’s GDP in 2017. Kenya received 4.8 million foreign passengers in 2017, which supported 410,000 jobs. About $0.9 billion was spent directly by passengers, which supported 15,000 jobs. Another $0.6 billion was spent on the industry’s supply chain, supporting 96,000 jobs. Tourists who arrived by air spent $1.6 billion, supporting 257,000 jobs in the hospitality sector. According to the report, Africa remains the biggest source of air passengers to Kenya, contributing 3.1 million passengers or 70 per cent of total visitors in 2017. Europe came next with 585,000 passengers followed by Asia-Pacific 284,000,...

Source: Youtube

On July 6-7, 2019 I was in Niamey both for the pre-Summit Business Forum and for the African Union’s Extra-Ordinary Summit to celebrate the first Anniversary of the Signing of the African Continental Free Trade Area (AfCFTA) and launch of its operational phase. What is the outlook for the World’s largest single market? As I write, the AfCFTA process is well on track to be ready for trading in July 2020 as planned and Accra, Ghana has been chosen as a location of the AfCFTA Secretariat. In the 2019 edition of our UNCTAD Economic Development in Africa Report, titled Made in Africa: Rules of Origin for enhanced intra-African trade, we argue that it is Rules of Origin that will make or break the AfCFTA. Essentially, rules of origin are a passport for goods. Rules of Origin are at the cornerstone of what it means for goods to be labelled “Made in Africa”. They are a set of technical requirements that define goods’ eligibility for preferential tariffs on imports in a Free Trade Area. Rules of Origin Rules of origin are situated at the nexus of trade and industrial policy. Make them soft and a Free Trade Zone runs the risk of not spurring the creation of local value. Make them too strong and countries risk being considered too protectionist and firms may find them too difficult to comply with. The complexity and incompatibility of different sets of rules of origin across regional economic communities in Africa is one of the many...

Somaliland is seeking investors to boost trade and ultimately the local economy. The semi-desert territory on the Coast of the Gulf of Aden, declared its independence from Somalia in 1991. It is a main livestock exporter. The World Bank pegs its Gross Domestic Product at $1.9 billion. As at 2017, the population of Somaliland stands at 3.5 million. The country has been working to secure recognition as a sovereign nation by the international community. In recent times, it has opened it doors for investors. Internationally acclaimed logistics company, DP world has pumped over $400 million to support the governments plans for diversification. We hear from my colleague Ronald Kato who spent a few days in Hergeisa and the port of Berbera. Kato speaks to Somaliland’s Finance Minister and Chief Executive of DP World about the company’s ongoing port expansion program. But how does this impact locals? Source: africa news

Free Trade Areas (FTAs) need institutions to oversee, promote and monitor the implementation of obligations by the State Parties. The African Continental Free Trade Agreement (AfCFTA) establishes four key institutions, in addition to various technical bodies that are provided for in the different Protocols. These institutions will be responsible for ensuring that this ambitious undertaking succeeds. The functions of the new AfCFTA institutions include political oversight and policy direction, as well as technical guidance and assistance. This will entail a new challenge for the structures of the African Union (AU); when it moves into the world of international trade regulation and ensuring compliance with multilateral trade rules. (Only five of the 55 AU members do not belong to the World Trade Organization – WTO). The Assembly of the AU is the highest decision-making organ of the AfCFTA and shall provide oversight and strategic guidance on the AfCFTA, including the Action Plan for Boosting Intra-African Trade (BIAT). It also has the exclusive authority to adopt interpretations of this Agreement on the recommendation of the Council of Ministers. The decision to adopt an interpretation shall be taken by consensus.[1] The Council of Ministers (those Ministers of the State Parties responsible for trade) must ensure the effective implementation and enforcement of the Agreement and must take all measures necessary for promoting the AfCFTA objectives. The Council of Ministers shall report to the Assembly through the Executive Council of the AU.[2] The Committee of Senior Trade Officials (consisting of Permanent or Principal Secretaries designated by each State Party) must implement...