The Government of Zambia, through the Ministry of Commerce, Trade and Industry (MCTI) has signed an agreement with the United Nations Conference on Trade and Development (UNCTAD) to modernize customs procedures using the Automated System for Customs Data (ASYCUDA). The ASYCUDA is an integrated customs management system for international trade and transport operations in a modern automated environment. It has advanced software applications which are designed and developed for customs administrations and the trade community to comply with international standards when fulfilling import, export and transit related procedures. The Zambia Revenue Authority (ZRA) is a key beneficiary of the system which is being provided under the MCTI Zambia Border Posts Upgrading (ZBPUP) Project, funded under the 11th European Development Fund, COMESA Trade Facilitation Programme. The ASYCUDA support to ZRA is valued at €548,000 and will involve strengthening of existing automated customs processes through harmonisation of clearance processes in all customs offices and ensuring that there is adherence to the agreed customs and trade facilitation principles and procedures. It will involve automation of the remaining processes on the Automated System for Customs Data world system and deployment of new ASYCUDA functionalities. These improvements will be made available and configured with the use of the latest ASYCUDA World version of the software, already deployed at ZRA, so as to maximize the benefits for the customs authority. Once fully operationalised, it is anticipated that, this support will ultimately speed up customs clearance processes, improve revenue control and reduce legacy related administrative challenges faced...

Realising the benefits and opportunities of the African Continental Free Trade Agreement (AfCFTA) requires proactive collaboration between all levels of government and businesses, says Director of Africa Bilateral Economic Trade at the Department of Trade, Industry and Competition, Calvin Phume. Phume was addressing the AfCFTA awareness workshop, which took place in Bloemfontein, in the Free State. The workshop was part of a nationwide series aimed at equipping export-ready South African Small, Micro and Medium Enterprises (SMMEs), private sector, women and youth-owned enterprises with knowledge on the benefits of trading under the AfCFTA, The AfCFTA is a flagship project of the African Union’s (AU) Agenda 2063 and aims to build an integrated market anchored on development integration. It seeks to enhance intra-African trade through progressive elimination of tariffs, introduction of rules to manage non-tariff barriers among other things, opening up vast markets of over 1.3 billion people and a combined GDP of over $3.4 trillion. Phume said beyond the policy transformation and reforms, the AfCFTA seeks to ensure inclusivity of women and youth, including youth in the rural areas, development of SMMEs and overall industrialisation of the Continent. “Africa has the youngest population in the world, with 70% of the population under the age of 30. Women make significant contributions to cross-border trade in many African countries. “However, women and young people face challenges such as underemployment, lack of opportunities and other structural and financial challenges that hinder their ability to trade. “The AU Assembly took a cautious decision to also...

A mobile laboratory was handed over to the Ministry of Health of Uganda on Wednesday in Kampala, Uganda, as part of an ongoing European Union-funded Programme to support countries in the IGAD region to strengthen surveillance and the healthcare system. The mobile laboratory will be stationed in the Central Health Laboratories at Butabika- Ministry of Health Headquarters. The mobile lab, worth EUR 167,300 (approximately 700 million Uganda Shillings), will be used to collect specimens from suspected patients across the country and within the cross-border areas in case of an outbreak of an infectious disease and for sample transportation to the nearest lab for testing. The mobile laboratory will help the medical workers to reach out to the patients from the cross-border areas, areas of emergency response, truck drivers in main truck stops and parking areas as well as people crossing the border in case of mass population movement or displacement. The mobile lab was handed over to the Minister of State for Health (Primary Health Care),  Margaret Muhanga Mugisa by the Deputy Ambassador of the European Union in Uganda, Ambassador Guilaume Chartrain and witnessed by IGAD officials represented by the Health Expert EU-IGAD Response Programme – Dr. Hamid Idrees on behalf of the Director IGAD Health and Social Development Division as well as representatives from the UN family and senior Ministry of Health officials. Previously under the programme, an advanced and two standard ambulances; 803,230 PPEs (Personal Protective Equipment), 25,056 COVID-19 test kits were delivered to the Ministry of Health...

Heads of African Commodity Exchanges from Ghana, Nigeria, Tanzania and Ethiopia have identified the standardisation of commodities as a significant challenge in their respective countries’ efforts to take advantage of the African Continental Free Trade Area (AfCFTA). The volume of trade on the Ghana Commodity Exchange (GCX), APEX Commodity Exchange and the Egypt Commodities Exchange is 2,037.1539; 526,850; and 130,354.200, respectively. The Chief Executive Officer of Ghana Commodity Exchange (GCX), Tucci Goka Ivowi, emphasised that achieving a universal commodity standard remains a persistent challenge in the cross-border market. He also highlighted the expectation of similar issues as African countries expand their trade across borders. Resolving this challenge requires recognising what is widely acceptable in intra-African trade, which would serve as a minimum standard. Speaking as a panellist at a webinar organised by the GCX on the theme ‘Preparedness of African Commodity Exchanges for AfCFTA’, Ms. Ivowi maintained that commodities – despite being simpler products compared to processed and branded goods – have numerous complexities. While she expressed optimism about the continent’s ability to overcome these challenges, she cautioned that it will take time to achieve fully harmonised standards across countries. She urged stakeholders to be prepared for the time-consuming process. The Director of Trade in Goods and Competition at the AfCFTA secretariat, Mohammed Ali, suggested that addressing the issue of standards could involve identifying a specific group of commodities of interest and finalising their standards. He further explained that harmonising the standards can be achieved by leveraging the AfCFTA’s convening...

Small and medium enterprises (SMEs) are critical to economic growth in Africa. Financing is a challenge for SMEs in Africa, but other factors are also critical to SME growth on the continent. A healthy and expanding small business segment in Africa increases employment, broadens the tax base, grows national revenue and frees African governments to fund social and economic infrastructure. Although small and medium businesses (SMEs) account for 95% of all registered businesses and contribute about 50% to the total GDP of sub-Saharan countries, entrepreneurs still face significant obstacles to growth and prosperity, which go beyond the traditional barrier of acquiring finance. Addressing their needs and ability to reach their potential is essential to creating a prosperous Africa. About 40% of SMEs in developing countries grapple with access to finance. This indicates that the financial sector generally struggles to understand and serve SMEs. Balanced against this must be that information irregularity in financial markets has left many small enterprises knowledge poor. Lack of available collateral or cash flow data means financial service providers often view SMEs as too risky. Another critical factor impacting SMEs is bureaucratic onboarding procedures. And, vetting and financial procedures can also place additional pressure on small businesses, especially when they cannot access the warranties, assets and resources that some financial institutions require. A lack of infrastructure isolates SMEs from markets, opportunities and access to capital. Business owners, because of unaffordable wage costs, are often forced to undertake tasks that are not within their skill sets. Inevitably, aspects of the business...

AFRICAN Union member states have been called upon to adopt policies which encourage intra-African trade in food production by among other things, removing Non-Tariff Barriers (NTBs). It is said that NTBs currently make imports from outside the continent costly, compared to locally produced food. AU member states were further urged to invest in irrigation agriculture by moving away from the reliance on rain-fed agriculture. Equally, African countries were called upon to adopt policies that motivate the youth to take part in agriculture to ensure increased production and reduce food insecurity. These were some of the resolutions of the 14th African Union High Level Private Sector Forum that was held at the Kenyatta International Convention Centre in Nairobi, Kenya from July 10th – 12th, this year. The forum further encouraged AU Member States to build resilient food systems which are climate resilient by employing technologies which promote investments in technologies that also address post-harvest losses. The three-day forum vouched for Public-Private-Partnerships (PPP) to promote partnerships for ensuring sustainable financing and management of national and regional agro-industrial parks and regional value chains. Member states were encouraged to align their agribusiness priorities in line with the Malabo and Maputo declarations and the Comprehensive African Agriculture Development Programme (CAADP). The forum resolved that investments in transport and logistics should be supported to ensure agribusinesses are scaled up and sustainable to ensure food security in the African continent. On ensuring access to reliable and affordable energy supplies, the forum urged AU member states to mobilise additional financing...

Ministry of Trade and Industry and the Common Market for Eastern and Southern Africa (Comesa) have admitted non-tariff barriers (NTBs) continue to affect trade, a development that has compelled the two institutions to engage an extra gear to protect traders. Lately, cross border businesses in Malawi have singled out NTBs such as excessive import documents or unjustified packaging requirements as one of the key challenges in intra-Africa trade, ultimately affecting business profitability and revenues. But director of trade in goods in the Ministry of Trade and Industry Charity Musonzo in an interview on the sidelines of an awareness workshop on NTBs reporting mechanisms on Tuesday said the ministry has taken the lead to ensure that traders are protected. She said: “NTBs are a big hindrance to trade. Most challenges include arbitrary charges. We are, therefore, participating in the tripartite arrangement which is a grouping of Comesa, Southern Africa Development Community and the Eastern African Community in which every trader is required to report the NTBs through the online system. “We have focal points at the Ministry of Trade and Industry, Malawi Investment Trade Centre and the Malawi Confederation of Chambers of Commerce and Industry to collect NTBs and send them to the secretariat to resolve the same.” On her part, Comesa senior customs affairs officer Balness Sumani also observed that the prevalence of reported and unreported NTBs, have partly been responsible for the constrained intra-regional trade. She said: “Currently, the rate of intra-regional trade is minimal, at seven percent, partly...

The inaugural chief executive of Trade Catalyst Africa, Duncan Onyango, spoke to Vincent Owino on the reasons behind the formation of the commercial arm of the non-profit Trademark Africa. What are the most pressing issues facing trade in Africa today? It is a fact that as Africans, we trade more with other countries outside the continent than with each other for a variety of reasons. But the main one is because the trade infrastructure has a lot of gaps in it. We have inefficient ports, poor roads, and border crossing takes much longer than it’s supposed to. The trade infrastructure gap is estimated at between $130 billion-$170 billion each year, with no sign of the funding gap diminishing. Also, the regulatory environment in many countries is not conducive. All these, combined with the non-tariff barriers, the net effect is the low trading volumes and export capabilities. Trademark relies heavily on donor funding for its projects, but the money from donors is not enough. We must appreciate the fact that a lot of money is needed, because we are starting from zero when it comes to building trading and export capability. We see a time when there will be less donor money, so the question we need to ask is: who else can pay to build these infrastructures we need for trade? If you turn to governments, their budgets are shrinking and not enough revenues are coming in. So, because the need is still there, we believe that the funding needs...

The meeting brings together Regional Economic Communities (RECs), Regional Mechanism (RMs) and member states to review the progress of the continental integration agenda. Egyptian President Abdel-Fattah El-Sisi is participating in the summit as the current chair of the New Partnership for Africa's Development (NEPAD). The meeting will explore ways to enhance integration, including promoting free movement and the African passport, as well as connecting infrastructure and financial markets. It will also explore establishing a common African market to accelerate trade, agriculture, establishment of businesses, and transfer of skills in Africa. To accelerate these efforts, the meeting will discuss the division of labour between the AU, RECs, RMs, and member states, anchored on the principles of subsidiarity, complementary, and competitive advantage. The division of labour is centred around six pillars: policy planning and formulation; policy adoption; policy implementation; monitoring, evaluation and reporting; resource mobilization; and partnerships. Also on the agenda will be the financing of Agenda 2063, focusing on Africa’s economic recovery and the implementation of initiatives to address challenges in agriculture, infrastructure, debt, climate change, security, energy, and health. This year’s meeting will be preceded by the meeting of the AU’s Executive Council on 13-14 July. The ministerial meeting will discuss the implementation of the African Continental Free Trade Area. It will consider next year’s theme (education); budget matters; African candidacies to international bodies; treaty ratification and implementation; the status of institutional reforms and Agenda 2063, among others. The Executive Council will also appoint some members of the African Commission...

The Council of Ministers of the Economic Community of West African States (ECOWAS) endorsed a regional e-commerce strategy for the organization’s 15 member nations on 7 July. The strategy will boost e-commerce in West Africa through specific measures responding to the needs of ECOWAS, identified by UNCTAD’s recent eTrade readiness assessment for the region. “The newly endorsed strategy is the beginning of a transformative journey, aimed at bridging the regional digital divide and boosting e-commerce development,” said Shamika N. Sirimanne, director of technology and logistics at UNCTAD. “It is a milestone that UNCTAD is proud to have supported, in the framework of our longstanding partnership with ECOWAS,” Ms. Sirimanne added. Multistakeholder process Developed through a multistakeholder and participatory process, the strategy aims at accelerating structural change and development, and fostering regional integration through economic diversification and job creation. “ECOWAS is committed to increasing the adoption and use of e-commerce to promote the implementation of the ECOWAS Vision 2050 for an inclusive and sustainable development for the region,” said Massandjé Toure-Litse, commissioner for economic affairs and agriculture at the ECOWAS Commission. “The e-commerce strategy will support the digital-driven structural transformation of the economies of Member States, and deepen regional trade integration,” the commissioner added. Boosting economic resilience ECOWAS member nations are Benin, Burkina Faso, Cabo Verde, Côte d’Ivoire, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, The Gambia and Togo. Among them, 11 are least developed countries that are generally more vulnerable to external shocks. The new strategy seeks to mitigate such...