The East African Business Council (EABC) just released its Barometer on Business & Investment in the EAC & Outlook 2022/2023, which captures the sentiment of the business stakeholders about how they see the business environment within the EAC. EABC is the apex advocacy body of private sector associations and corporates from the six East African Community (EAC) partner states Burundi, Kenya, Rwanda, South Sudan, Tanzania, Uganda, and DRC. It was established in 1997 to foster the interest of the private sector interests in the EAC integration process with the primary mission of promoting sustainable private sector-driven growth. EABC has Observer Status at the EAC level which offers an avenue for advocating the private sector interests in the EAC integration agenda with a view to promoting a conducive business environment in the region. This year’s EABC barometer shows the rate of investments, operation, and performance of businesses in the EAC bloc is recovering, and business stakeholders are optimistic about business in EAC. Economic Recovery from Covid-19 in EAC The Covid-19 pandemic has had a profound effect on businesses in the East African Community and globally. Some containment measures employed by EAC partner states to curb the pandemic such as curfews and closure of certain businesses negatively affected businesses in various ways. On the other hand, other businesses thrived by taking advantage of the new opportunities provided by the pandemic for instance manufacture of protective equipment, and medical care among others. The economic effect of the pandemic has been a subdued GDP...

Aid for trade is a crucial part of the integrated policy approach needed for trade and trade policies to advance sustainable development and support environmental objectives in least developed countries. At the Eighth Global Review of Aid for Trade on 27–29 July 2022, governments and stakeholders shared views on how best to harness aid for trade to support a just transition to sustainable trade that addresses the needs of developing and least developed countries. Extreme weather events and changing climate conditions are causing hundreds of millions in economic damage and severe suffering in least developed countries (LDCs). Eritrea, Madagascar, Mauritania, Chad, the Democratic Republic of Congo, Sudan, Mali, Ethiopia, and Congo face climate adaptation costs higher than their national spending on healthcare, with these adaptation costs ranging from around 5–22% of gross domestic product. The ocean states of Kiribati, the Solomon Islands, and Tuvalu and countries like Bangladesh, Senegal, Tanzania, and Uganda are flooded with plastic pollution with tremendous economic and health costs. From Laos to Madagascar and Guinea, rural populations, which account for two thirds of people living in LDCs, are experiencing the loss of biodiversity and ecosystems on which they directly depend for their subsistence. Faced with the huge social and economic toll of these planetary environmental crises, despite bearing the least historical responsibility for them, the world’s poorest nations have repeatedly highlighted the need for international support measures, including through Aid for Trade to address their trade-related impacts. Fostering aid for trade for sustainable development As governments and stakeholders...

Trade initiatives must keep up with the evolving needs of developing and least developed countries (LDCs) in order to adapt to climate change as part of a global economic strategy, participants heard at the Aid for Trade Global Review on 28 July. Open trade and lowering barriers to environmental goods and services must play a critical role in providing affordable access to advanced technologies needed to transition to a low-carbon economy, speakers said. At a plenary session on the second day of the Aid for Trade event, speakers focused on how this initiative can help develop critical trade infrastructure while supporting resilient, climate friendly and inclusive trade outcomes. The session benefited from the expertise and practical insights of experts and financing partners engaged in green transition activities. In his opening remarks, WTO Deputy Director-General Xiangchen Zhang told participants that climate change is one of the most pressing challenges of our time. The World Bank estimates that natural disasters already cost low- and middle-income countries USD 390 billion per year regarding damage related to water, transport and power infrastructure. “In that context, adapting to climate change by reducing climate-related risks and vulnerability is a key economic strategy. International trade can contribute to climate change adaptation efforts by enhancing economic resilience to extreme weather events through diversified supply chains, timely provision of essential goods and services, improved food security, and greater access to climate-related adaptation technologies,” he said. DDG Zhang stressed that the transition to a low-carbon economy entails a substantive transformation...

Digitalization brings new opportunities in trade and creates the potential to underpin resilience in times of crisis The digital transformation of customs and borders in Africa could improve efficiencies in processes and yield trade gains on the continent of US$20 billion a year Single Window can cross-check credentials for consistency and traceability, reducing errors and fraud The digital transformation of customs and borders in Africa could improve efficiencies in processes and yield trade gains on the continent of US$20 billion a year. Digitalization brings new opportunities in trade and creates the potential to underpin resilience in times of crisis. The digital transformation of customs and borders in Africa could improve efficiencies in processes and yield trade gains on the continent of US$20 billion a year. With digital trade in place, pre-existing bottlenecks in infrastructure can be tackled, efficiencies can be leveraged, and Innovative solutions can be harnessed. However, countries in Africa vary greatly in their readiness for digital trade. In African countries where economic resilience must be fostered, jobs must be created and entrepreneurship must be facilitated, digital trade must be in full swing. How digital automation is easing the flow of trade Thanks to technological advances, importing and exporting goods and services in Nigeria has become easier thanks to the rise of online international trade administration portals. These online portals automate the experience for many stakeholders including customs officials, businesses importing finished goods and raw materials for manufacturing, and those exporting their goods across the globe. Blockchain technology, Artificial Intelligence (AI),...

Summary The EABC Business Barometer is an index that captures the sentiment of the business stakeholders about how they see the business environment within the EAC. Businesses in Burundi, Kenya and Uganda reported reduced cost of doing business during the pandemic. Business captains in the region are optimistic that business in the East African Community bloc will increase by 11 per cent in 2022 and 2023. The East Africa Business Community Barometer on Business and Investment links the slight optimism to perception of business owners on the effectiveness of measures introduced by governments in response to the Covid-19 pandemic. Several states imposed key discretionary actions and policies in 2020 and 2021 to limit the human and economic impact of the pandemic. In Kenya, for instance, a package of tax measures was adopted, including full income tax relief for persons earning below Sh24,000  per month and reduction of the top pay-as you earn rate from 30 to 25 per cent, There was also a reduction of the base corporate income tax rate from 30 to 25 per cent, reduction of the turnover tax rate on small businesses from three to one per cent, and a reduction of the standard VAT rate from 16 to 14 per cent. These conditions, according to business owners, plus other loan flexibility policies, contributed a large extent of the growth. The EABC Business Barometer is an index that captures the sentiment of the business stakeholders about how they see the business environment within the EAC. It shows the...

Discover IOTA Use Cases with the IOTA Lighthouse Projects Dashboard This blog post gives an overview of IOTA’s role in different use cases and explains how its unique features contribute to several lighthouse projects. The solutions developed in these projects are suitable for any industry that requires transparency, immutability and secure data transfers. Our new project dashboard provides a comprehensive overview of the projects along with the IOTA wiki of the tools developed, free for anyone to use and replicate to continue building on IOTA. Gone are the days when IOTA’s catalog of projects could be summarized in a brief overview. Today, the Foundation is a crucial player in several public and private sector projects. Whether multi-year EU-funded collaborative research and development endeavors between a dozen organizations or projects carried out with a single partner, IOTA’s unique characteristics and frameworks make it an indispensable technology for different kinds of projects. The versatility of IOTA makes it suitable for any field, as demonstrated by the sheer diversity of use cases among its projects, including audit trails for supply chain processes, monitoring, and different kinds of marketplaces. These lighthouse projects are torchbearers for the adoption of a technology that offers integrity and verifiability of data and value exchange. To provide a comprehensive overview of IOTA’s lighthouse projects and demonstrate how its features are utilized, the Foundation has launched a new project dashboard. The dashboard includes a summary and key information about each project, such as consortium partners, timeline, and use cases, as...

Zimbabwe is set to import 400 000 metric tonnes (MT) of Maize from Zambia and Malawi to be delivered this June to alleviate a food crisis in the country. This will cost the country at least US$120 million before haulage and other costs are considered. Total grain imports will likely total 700 000MT in 2022. According to the World Food Programme (WFP), an estimated 6 million people (roughly 40% of the population) need food aid in the country with an increasing number of urban dwellers now food insecure. The government has forecast maize production for the 2021/22 season to be 1.56 million MT, down from the previous season's multi-year record of 2.72 million MT. Zimbabwe requires 2.2 million MT annually for industrial, human and livestock consumption. The government has encouraged private business players to import grain to plug the deficit, while subsidized farmers are obligated by law to supply the government. Grain Net Importer Harare has been a net importer of cereals since 2006 with maize production averaging less than 1.3 million MT per year in the last 10 years. Wheat production has averaged 110 000MT for the past 10 years against a national demand of 450 000MT per year. Yield per hectare for maize (the staple crop) remains very low with average national yield less than 0.7 tons per hectare (Lower than the African average of 1.8 tons/ha). The yield is also lower than Southern African peers who are largely affected by the same climatic conditions, with Namibia, Malawi...

Intra-African trade, at the behest of African Continental Free Trade Area (AfCFTA), will make every state in Nigeria economically viable and resilient, Michael Faniran, Strategy, Planning and Coordination Lead, National Action Committee on AfCFTA has said. Faniran, who was speaking at the AfCFTA/POFON Oil Palm Stakeholders Meeting which held recently in Benin via Zoom said AfCFTA would capture 10% of Africa’s imports from the world to double Nigeria’s export revenue by 2035. Faniran listed a number of strategic goals of the institution as including growing export capacity of every state to $1.2 billion, focusing on specific products/service chains, growing high productivity workforce to earn premium wages in Nigeria and Africa, engendering friendly business environment to attract investment and boost competitiveness and growing local demands to boost local content, capacity and utilization, preserving local market share and laying foundation for experts. Read original article

Six British nationals based in Kenya are among 1,134 recipients of Queen Elizabeth’s birthday honours for their contributions to public life, including TradeMark Africa chief executive Frank Matsaert. The awards were given ahead of the Queen’s platinum jubilee celebrations as she marks 70 years on the throne in a four-day fete in the UK, which began on Thursday. The honours went to UK nationals worldwide for their contribution to “sustained public service, the environment and sustainability, and youth engagement.” Mr Matsaert is the founding CEO of the trade aid agency that has been helping in the integration of the East African Community (EAC) by supporting cross-border trade since 2010. The Nairobi-based TradeMark Africa has been involved in the development of one-stop border posts in EAC, the Mombasa port, and the upgrade of customs systems for revenue authorities in Kenya, Uganda, Burundi, and Rwanda. “I am deeply honoured by the Queen and UK Government for this recognition of TradeMark Africa’s work in supporting trade and economic development in Eastern Africa over the last twelve years. It has been a privilege and an honour to found and lead such a dynamic and impactful organisation,” said Mr Matsaert. Mr Matsaert was awarded the Member of the Order of the British Empire (MBE) for his “services to trade and economic development in East Africa.” Reverend Clive Beckenham and his wife Mary, founders of Nairobi-based children’s New Life Home Trust, got an MBE for “services to abandoned and vulnerable children with HIV in Kenya.” The...

The outbreak of the COVID-19 pandemic in 2020 coupled with conflicts in some parts of the Democratic Republic of Congo (DRC) will delay the completion of the one-stop border post (OSBP) at Goli and Mahagi. DRC and TradeMark Africa (TMA) signed the contract to begin construction of the OSBP at Mahagi in Ituri Province, on the border with Uganda on April 16, 2020. “With Goli-Mahagi, we have had a few challenges on the DRC side. The Ugandan side was complete in a period of about six months. The DRC side is a bit more complex because of some unrest on the DRC side which interrupted civil works and there have been some cost overruns. “We may be able to complete probably in the next nine months,” Frank Matsaert, the chief executive officer of TMA, said. Matsaert was addressing the media on some of the ongoing projects being implemented by TMA to smoothen trade flow across borders in Kampala on Thursday. Matsaert added: “The balance sheets of construction companies were also weak (due to the effects of the pandemic) and what we found is that this has been a challenge across the region.” The Goli-Mahagi border is one of DRC’s busiest border crossings, located at the axis linking the popular centres of Arua (Uganda), Bunia (DRC), Kisangani (DRC) and the port of Mombasa (Kenya) along the Northern Corridor. The planned OSBP border between Uganda and DRC is aimed at modernising the border infrastructure at Goli-Mahagi and to improve the handling of...