The East African Community should channel its resources to the implementation of the African Continental Free Trade Area (CFTA) as an alternative to pacts with Europe, Asia and the US. “Africa has a lot of potential in intra-regional trade that is untapped; that is why we are exploited by the West and Asia, who offer trade deals that benefit them more than they do African states,” said Seth Kwizera, the co-ordinator of think tank Economic Policy and Research Network. “When over 40 states signed the CFTA, it was a strong statement. Once it is in force and the major barriers to regional trade are eliminated, liberal trade will start across the continent. This will give a stronger voice to countries and regions when dealing with global economic powers.” It is thought that intra-Africa trade could double under the CFTA, and benefit blocs like the EAC that are at advanced stages of free trade protocols such as free movement of people and establishment of a Common Market. The United Nations Economic Commission for Africa (Uneca) said that the “Anything But Arms” deal with the European Union, established in 2001, has not brought about the expected industrial growth in EAC economies despite exports from the region enjoying duty-free and quota-free access to the EU. The region’s trade deficit with EU has stagnated at an average of $1 billion every year for the past three years, according to data from the European Commission. In addition, Economic Partnership Agreements (EPAs) with Europe have met...

The East African Rift Valley is generally considered to be the area in which modern humans first appeared. Fast forward 200,000 years and this 'Cradle of Humankind' has been reborn economically. Three of the 10 fastest-growing economies in the world last year were located in East Africa. The African Development Bank (AfDB) has forecast growth of 5.9pc in the region this year and 6.1pc in 2019, with Djibouti, Ethiopia, Kenya, Rwanda, Tanzania and Uganda all reporting GDP growth in excess of 5pc. Trade between Ireland and Africa is also on the rise, forecast to reach €24bn by 2020. This year East Africa will be the continent's fastest-growing region. It is little wonder then that the region's burgeoning middle class, estimated to comprise about 10-15pc of its 430 million-strong population, is on the radar for exporters. Opportunities also abound in other high-value sectors, such as healthcare, fintech, and ICT. Nairobi, Kenya's capital, is at the heart of East Africa's transformation. Indeed, its reputation as an ICT hub has earned Kenya the moniker 'Silicon Savannah'. It was in Kenya that mobile money technology was pioneered. The electronic wallet service - which allows users to store, send, and receive money using their mobile phone - has transformed how many Africans receive their pay and spend funds. The service is actively used by an estimated 66pc of all adults in Kenya, Rwanda, Tanzania, and Uganda. Dublin-based provider Oxygen 8 offers mobile payment solutions through its Tola subsidiaries in Kenya, Mozambique, Tanzania, Uganda, and Rwanda,...

The East African Community (EAC) is mobilising funds for renewable energy projects which can lead to the reduction of firewood and charcoal use by 50 per cent. The new drive would start with formulation of the Regional Renewable Energy Master plan alongside with energy efficiency and conservation programmes. “Our main focus is on ensuring environmentally friendly energy sources through attracting investments and promoting competitiveness and trade,” said the EAC deputy secretary general (Productive and Social Sectors) Christophe Bazivamo. He was speaking during the on-going exhibition of renewable energy technologies by the German energy initiative called Energiewende. The July 23 to August 10 exhibition at the EAC headquarters is aimed at exposing the region to efficient energy technologies from Germany, which intends to stop the use of nuclear energy. “Modern energy services mean accessing 50 per cent of the population that currently uses traditional cooking fuel to renewable sources,” he said. Available statistics indicate that modern energy consumption in EA was about 130 KwH per capita, which is considered one of the lowest in the world. In an effort to promote renewable energy, the community last year created the EA Centre of Excellence for Renewable Energy and Efficiency based in Kampala, Uganda. According to Bazivamo, funds are also being mobilized to facilitate the formation of the proposed Regional Renewable Energy Association and harmonisation of the standards. The Germany government pledged to assist the region in the renewable energy drive, saying it would increase energy efficiency and protect the climate. “We are glad to demonstrate how to move towards secure,...

Uganda has made its maiden beef export to Egypt shipping 50 tonnes of the commodity to the Middle Eastern country. The consignment, which is equivalent to 5,000 kilogrammes, was the first batch from the Egypt-Uganda Food Security Company situated north of Kampala in Luweero District. The company has been undergoing two years of development. In a statement, Mr Sherif el-Kallini, the Egypt-Uganda Food Security Company chief executive officer, said Ugandan meat stands a better opportunity because of its high quality. The shipment has been a culmination of three agreements that President Museveni signed with Egyptian leader Abdel Fatah al-Sisi during a visit to Cairo last May. President Museveni inaugurated the Egypt-Uganda Food Security Company in 2016, as one of Africa's largest slaughterhouse. He underscored the need for Uganda to export its beef products, arguing that it would be the preferred choice because it is produced from organically fed livestock. Mr Hishem Jahffal, the Egypt-Uganda Food Security Company project manager, told Daily Monitor yesterday this was a trial shipment after a series of challenges. "This is going to be continuous. It was our first order. We have had a lot of challenges [but] now we have shipped the first consignment," he said. The Egypt-Uganda Food Security Company was registered in 2011 with a planned turnover of $10m (Shs37b). It has the potential to create 1,000 jobs. The slaughterhouse was commissioned by President Museveni in May 2016 but had not exported any beef since pointing to a number of challenges which among...

What are the challenges to commercialisation of agriculture in Africa? The greatest is how to take advantage of the tremendous opportunity presenting itself right now across Africa because of the shift in consumer behaviour and consumer demand globally towards higher quality agricultural products. This can potentially lift millions of farmers out of poverty. This provides tremendous revenue generation potential and job growth. So, the key challenge for governments is how to support the agriculture sector to take advantage of this. In addition, you see many countries in the region are focused on mineral resources but once the commodities’ super cycle ends, agriculture will still be here. This poses a challenge because governments once had their eye on precious earths and mineral oil and forgot the principles for inclusive growth. East Africa must take advantage of this opportunity-based narrative. The second big challenge is, of course, how can countries position themselves in the face of volatile environment in terms of climate and international markets. We live in an age of increasing protectionism and with little regard for the principles of international trade and that often leads to volatility rather than creating solidarity among countries through trade. How about how Qatar, a desert country, which has reacted to its being blockaded by its neighbours to the extent of importing cows so it can become self-sufficient in milk? This is a reaction we would have recommended for small countries about 15 years ago rather than strive for integration into international trade, because that...

Africa’s most populous nation and biggest economy, Nigeria, Eritrea and Guinea Bissau are the only African nations that are yet to make any commitment to the African Union’s Continental Free Trade Area (AfCFTA). According to the A.U. Commission chairperson, Moussa Faki Mahamat, these three have made no commitment to the deal signed in Kigali in March 2018. The A.U. chief said the body’s projection was to have all nations on board so that the AfCFTA could enter into force in January 2019. On the flip side, six African countries have since ratified the deal while the vast majority of countries have only signed it. The six are: Rwanda, Niger, Chad, Kenya, Ghana and Swaziland (eSwatini.) Three others; Tanzania, Zambia and Botswana, have only signed the Kigali Declaration but have yet to sign the deal and deposit instruments of ratification with the A.U. Back in Kigali, 44 of the 55 African Union Heads of State and Government enacted the AfCFTA at its 10th Extraordinary Session, under the leadership of Nigerien President Mahamadou Issoufou. The Kigali Declaration, as it is known, was also witnessed by President Paul Kagame of Rwanda as current AU Chairperson, and Chairperson of the AU Commission. Nigeria and South Africa’s refusal to join from the beginning raised issues with the deal given that the two were the continent’s economic powerhouses. South Africa subsequently signed the deal but Nigeria insisted that it was doing broader consultations back home before any concrete decision is made. President Buhari recently intimated that he...

Arusha. The East African Community (EAC) is mobilising funds for renewable energy projects which can lead to reduction of firewood and charcoal use by 50 per cent. The new drive would start with formulation of the Regional Renewable Energy Master plan alongside with energy efficiency and conservation programmes. “Our main focus is on ensuring environmentally friendly energy sources through attracting investments and promoting competitiveness and trade,” said the EAC deputy secretary general (Productive and Social Sectors) Christophe Bazivamo. He was speaking during the on-going exhibition of renewable energy technologies by the German energy initiative called Energiewende. The July 23 to August 10 exhibition at the EAC headquarters is aimed at exposing the region to efficient energy technologies from Germany, which intends to stop the use of nuclear energy. “Modern energy services mean accessing 50 per cent of the population that currently uses traditional cooking fuel to renewable sources,” he said. Available statistics indicate that modern energy consumption in EA was about 130 KwH per capita, which is considered one of the lowest in the world. In an effort to promote renewable energy, the community last year created the EA Centre of Excellence for Renewable Energy and Efficiency based in Kampala, Uganda. According to Mr Bazivamo, funds are also being mobilised to facilitate the formation of the proposed Regional Renewable Energy Association and harmonisation of the standards. The Germany government pledged to assist the region in the renewable energy drive, saying it would increase energy efficiency and protect the climate. “We...

Intra- Common Market for Eastern and Southern Africa (Comesa) exports recorded a slight drop in value, partly due to the decline in oil prices and commodity prices since 2014. Total intra-Comesa exports fell by 1.76 per cent to Shs29.2 trillion in 2017, down from Shs29.7 trillion recorded the previous year. According to records, Egypt, Kenya, Uganda, Zambia and Sudan took the lead in inter-Comesa exports out of all the 21 member countries after Tunisia and Sudan joined the bloc. Egypt in the year ending, exported goods worth Shs5.6 trillion to mostly Comesa members. Kenya followed with trade worth Shs5.3 trillion. Uganda took the distant third position at Shs3.7 trillion. Zambia and Sudan were in the fourth and fifth position with export trade worth Shs3.4 trillion and Shs2.9 trillion, respectively. Ms Yvette Sylla, the chairperson of Comesa Council of minister, however, added that intra-Comesa exports recorded a negative. The other factor associated with the decline in 2016 is the drought which affected most of the countries especially in eastern Africa. Intra Comesa trade Uganda is among the top five member countries that have contributed to the 81 per cent growth of intra-Comesa trade since the Free Trade Area started that started in 2000. Latest records from the Comesa Secretariat, show that trade has risen to nearly $8 billion (Shs29.6 trillion) as of 2017, up from $1.5 billion (Shs5.5 trillion) recorded in 2000. Ms Sylla said: “Comesa’s programmes and approaches to market integration, including the resolution of non-tariff barriers served as a...

East African Business Council (EABC) was established to foster private sector interests in the East African Community. But over the years, this task has proven tougher to chew. Prosper’s Ismail Musa Ladu interviewed the director Madhvani Group and chairman Uganda Sugar Manufacturers’ Association, Mr Jim Mwine Kabeho, who last month completed a one-year term (2017/18) at the helm of EABC. Excerpts below. How would you account for your time at the helm of EABC?  During the one year, I concentrated on promoting local content. This is because currently, all partner states are carrying out mega projects in oil and gas, mining, building dams and bridges, construction of roads, railways and establishing airports and harbours. All these need materials such as cement and steel which can be sourced locally. Even skills, food and labour can all be sourced domestically. But because we do not have an EAC Content Bill for the region, contractors, most of whom are foreigners, are taking advantage of that gap and importing all materials outside East Africa. This is not acceptable! I also advocated for increased agricultural sector funding. I encouraged women in business programmes and made a call for businesses in the region to embrace innovation and technology, let alone getting involved in climate change mitigation measures. Issues of Non-Tariff Barriers (NTBs) remain a challenge for private sector in the region. How did you handle this perennial problem? Over the 12 months, we massively fought Non-Tariff Barriers (NTBs). This was done by trying to harmonise positions...

The Economic Commission for Africa has said that the entire continent stands to gain much more from AfCFTA than it benefits from other trading arrangements with regions outside the continent. The statements were made during a policy dialogue to discuss the African Continental Free Trade Area (AfCFTA) and assess the country’s readiness to tap into the agreement’s potential. The Economic Policy Research Network (EPRN) of Rwanda in partnership with UN Economic Commission for Africa (ECA) and Rwanda Ministry of Trade and Industry were part of the stakeholders at the dialogue. Andrew Mold, Officer-in-Charge of ECA in Eastern Africa said that Africa stands to gain much more from AfCFTA than it benefits from other trading arrangements with regions outside the continent. He noted that the ECA has estimated that if fully implemented, the AfCFTA could double the amount of intra-African trade. Mr Mold explained that despite having been granted preferential market access to high-income markets for many decades now most countries on the continent are still import-dependent and export excessive amounts of unprocessed commodities, and, as a consequence, run up large trade deficits. “Large trade deficits slow down the pace of economic growth and development”, he said. “We clearly need a new approach to tackle these problems – the implementation of the AfCFTA is that approach,” Mold said. “We are talking about 1.2 billion people with a combined GDP of $2.2 trillion, so it’s a huge market”, said Michel Sebera, Permanent Secretary in Rwanda’s Ministry of Trade and Industry. Sebera added...