NEGOTIATIONS for the Tripartite Free Trade Area (TFTA) will be concluded by the end of next month to provide a single trade regime covering three regional blocs to accelerate trade. Speaking at the fourth regional sensitisation workshop, Common Market for Eastern and Southern Africa (Comesa) director of trade and customs, Francis Mangeni said 20 countries have signed all annexes on key areas such as standards, non-tariff barriers and interim arrangements for rules of origin. Trade remedies and tariff offers were also agreed upon. “At the moment some countries are saying they want things done properly and when everything is finished then they will sign the agreements. One of these countries was South Africa and a few others. So in about two months, when we have finally finished all the outstanding issues, then South Africa will sign. This is what has delayed, but countries are saying about the same argument on ratification that after all these issues then there can also sign and then ratify. When all these outstanding issues are finally resolved we will see more progress,” he said. “Currently, we are left with only six countries to sign the agreements and that’s not a problem and ratification now is the problem. “When the ministers met in Kampala in July they set a deadline for October 30, 2017.” The TFTA is a proposed African free trade agreement between the Comesa, East African Community (EAC) and Southern African Development Community (Sadc). Mangeni said countries have set three deadlines to complete the...

 How can central banks in the East African Community boost private sector credit that has since last year slowed down?   That was one of the issues that the Central Bank Governors in the region deliberated on during the 21st Ordinary East African Community (EAC) Monetary Affairs Committee held in Kampala on Aug. 25. Emmanuel Tumusiime-Mutebile, the Governor of Bank of Uganda and the current chairperson of the Monetary Affairs Committee told his guests that they have attained a lot of progress towards the operationalisation of the East African Common Market protocol but there have been a number of emerging issues which pose serious challenges to our integration efforts. “Some partner states have faced a slowdown in economic growth, both in the growth of private sector credit and the economic activities coupled with an increase in the non-performing loans,” Mutebile said. He said further reduction in private sector credit could weaken aggregate demand going forward and threaten the continent’s fastest-growing region. As such, he said, central governments in the region should do whatever it takes to encourage private sector access credit. But while the Governors said they do not have immediate plans to stir private sector credit uptake and improve economies of their respective countries, outgoing governor, Bank of Tanzania, Prof. Benno Ndulu, tried to offer a solution. He said at the time he assumed the job in 2008, the Tanzanian economy was in turmoil characterised by low private sector credit as business firms were unable to either access or repay...

The business meet set for October 5 and 6 is projected to bring together over 2500 investors from Kenya, France and other African countries. Dubbed ‘The Encounters Africa 2017’, the event is already attracting strong interest from French companies, as well as from Francophone countries. Event Coordinator Annemijn Perrin says they expect to connect businesses with the aim of closing deals at the summit. “Most companies are coming here to find partners to work together with Kenyan companies, either to set up in these countries, or to find a partnership to develop their business. Over 100 French companies have already signed up to come, dealing with agriculture, manufacturing, energy, education among others,” Perrin told Capital FM Business. The first edition was launched in 2016 in Paris, bringing together 2700 decision makers from 30 countries. Bilateral trade between Kenya and France remains heavily skewed in favour of France as it’s the is the third largest source market for Kenya’s imports in Western Europe, and the sixth largest market for Kenya’s exports in the bloc. Official data shows that Kenya’s exports to France grew 12 per cent to Sh5.6 billion between 2010 and 2014, while imports rose 20.4 per cent to Sh22.4 billion in the same period. Business France opened its office in Nairobi in 2013 to assist French firms interested in investing in Kenya and neighboring East African nations. Over 70 firms have invested in the country. Source: Capital Business

The East African Community Secretariat will have to borrow $3.38 million from its General Reserve Fund to pay salaries and suppliers after member states delayed remitting their share of the budget. The sectoral Council of Ministers responsible for EAC Affairs and planning, in their meeting held from August 21 to 25 in Arusha, directed the Secretariat to present to the Finance and Administration Committee the request for funds for approval. The money will be refunded immediately the remittances are effected by the partner states. The Council’s report says that a number of EAC institutions and organs are unable to meet their financial obligations due to the delays in remittance by the partner states. “Late contributions or no contributions by partner states is a constraint to the smooth operations of the community,” said the ministers. “The Sectoral Council of Legal and Judicial Affairs should have their input in the proposed sanctions to the partner states who do not remit their contributions or delay to do so.” The council also raised concerns that following the deposit of instruments of ratification by South Sudan to join the community, it was supposed to pay $6,715,064 for the 2016/2017 financial year but the amount was not appropriated by the East African Legislative Assembly (EALA) and neither has South Sudan paid. READ: Funding for EAC secretariat drops by $12m According to the provisions of the EAC Treaty, the budget of the community is supposed to be contributed equally by all the partner states. From the 2016/17 budget,...

Under the auspices of the gender ministry, Uganda is set to host the third edition of Jumuiya ya Afrika Mashariki Utamaduni Festival (JAMAFEST). It is a cultural festival that is every two years graced by participants from six partner states of the East African Community (EAC) on a rotational basis. According to Naumo Juliana, a commissioner of culture and family affairs at the gender ministry, the main objective of the festival is to promote regional socio-cultural integration through arts and culture by providing a regional platform to showcase culture as a prime driver of the EAC integration. Naumo told New Vision that each EAC partner state is expected to send “on average, 200 participants.”   This would take the number of participants that will grace the cultural festival between September 7 and 15 to over 1000. The festival is a result of the 23rd Council of the Ministers directive to the Secretariat to organize and hold regional arts and culture festivals and sports tournaments as one of the strategies for fostering socio-cohesion among East Africans. “We intend to better market this year’s JAMAFEST in order to help our people benefit from the festivities showcasing our art and culture,” said Pius Bigirimana, the gender ministry's permanent secretary, while opening the third meeting of the joint steering committee organizing the cultural festival. The steering committee is composed of technocrats from the six EAC partner states whose role is to tie the loose ends to the impending cultural festival. Bigirimana cautioned against blind aping of foreign...

Since the beginning of this century, the rapid economic growth of Asian economies, particularly China, has brought about immense economic benefits for Africa. This is because over the last few decades, to support its economic development, China has voraciously bought and consumed all types of commodities in Africa and globally. This enormous demand for commodities not only made the African natural resources more valuable, but also brought about a substantial amount of export revenues to Africa. Moreover, the massive inflow of export revenues has translated into a relatively high growth rate, that eventually caused people to start talking about the ‘Africa rising’ narrative. However, the impact of the 2008 global financial crisis, as well as the recent economic slowdown in China, has been hugely felt in the continent. Hence, a better insight in Africa’s global trade may provide a better idea of how Africa will fare in the future. Trends in Africa’s global trade According to data from the International Trade Centre, the 2016 global trade of the African continent had increased by a significant 238% to reach US$794.7bn from $235.4bn in 2001. Moreover, during those last 16 years, Africa received a cumulative amount of $5.8tn for its exports. This has definitely helped the African countries to grow. However, looking at a granular level, we find that trade is in fact on a decline. From 2001 until 2012, the African global trade had increased steadily to reach a peak of $1.2tn (a tremendous 427% increase), but from 2012 to 2016,...

According to JLL's 2017 Africa Prime Industrial Report, within Africa's more diversified economies, the prime industrial sector is set to emerge as an attractive asset class over the short to medium term. Anthony Lewis, head of investor services for JLL Sub-Saharan Africa comments, “With forecasts of sustained high economic growth rates in several African countries, there is quite some room for the development of prime logistics and warehousing space in markets that have historically been under-served. This trend, when coupled with the growing logistics requirements of sophisticated occupiers entering these high-growth markets, suggests that sturdy growth drivers should push the establishment of the prime industrial sector. JLL’s demand analysis finds that: In the top 11 African countries, demand stands at c.15-million m2 for all grades of space as at Q2 of 2017. If only 10% of this demand is for prime space, the market should be providing c.1.5-million m2 of prime space to the market. The reality is that far less than this is being provided currently. In addition, over the next decade total demand is forecasted to grow to over 20 million m2. Once again if only 10% of this demand is for prime space, the market should be able to sustainably provide 2-million m2 of prime space to the market by 2027. Given the clear lack of good quality prime industrial space, particularly in the distribution and logistics markets, many new prime developments should be springing up over the next decade. On a regional basis, demand in East Africa...

Euromonitor International’s new data showed international arrivals to Africa grew by 6.5 percent in 2017, with more than 18.6 million people traveling to the continent. Five years ago, that number was 16.4 million. Africa’s key travel markets include South Africa, Kenya, Nigeria, Mozambique, Cameroon, Mauritius and Tanzania. These countries accounted for 70 percent of international trips to the Sub-Saharan African region. One of the key growth drivers at the moment is digital integration, which is helping increase Africa’s footprint on the world travel map. Another is the increasing interaction between hotels, airlines and car rental companies. Platforms such as social media, meta-search engines and the penetration of online travel agents to better communicate with one another provide more robust travel options for visitors. “Many countries are moving away from only promoting Africa as a traditional safari destination, exploring other niche categories such as beach and medical tourism,” said Euromonitor Research Analyst Christy Tawii. “The travel and tourism market continues to introduce products that suit different types of travelers, accounting for strong growth in major cities across Sub-Saharan Africa,” Tawii added. The outlook for Sub-Saharan Africa continues to be strong. Euromonitor predicts a growth to 25 million trips by 2022 and says that ongoing growth will be driven by increased interest from overseas visitors due to more competitive rates. While price will be a factor, destination marketing campaigns and an increase in airlift, especially from long-haul markets, will also drive inbound tourism. Making Africa easier to reach is key. Air prices for travel to the continent remain...

The contrast couldn’t be starker. As U.S. President Donald Trump’s government continues to champion isolationism and undermine decades-old international relationships, China is rolling out its Belt and Road Initiative, or BRI, a project to build a new “Silk Road” that could change the meaning of globalization itself. Africa is at the margins of both of these developments, but its future will be determined by them. As someone who grew up in Africa, the project stirs a tangle of emotions. While it will directly affect East and North Africa, there is the chance that it could spur desperately needed development all along Africa’s eastern seaboard, where countries are still trying to recover from the proxy conflicts of the Cold War. For me, it comes down to African agency: Are African governments doing enough to achieve gains that can be shared? Or are their citizens being left to pick up the tab? The issue isn’t just about an increasing amount of Chinese power in Africa, but about what local leaders will allow outside forces like China to do with that influence as well. The breakdown of trust between African leaders and the African population is being put to the test ― and even exacerbated ― by ventures like Beijing’s Belt and Road Initiative. Breaking Down The Belt And Road Initiative The Belt and Road Initiative breaks down into two parts, one over land and another over sea. The former, known as the Silk Road Economic Belt, is made up of interlinked rail lines, communications networks, and oil and gas pipelines running from Chongqing in China...

President Paul Kagame has said that the African tourism sector can accelerate its pace of growth by increasing regional and continental collaboration which would ease movement of citizens. Kagame was speaking Tuesday at the opening of the 41st Annual World Tourism Conference which is currently underway in Kigali. The three-day forum is convened by The Corporate Council on Africa and Africa Travel Association to look into how tourism can be utilised as an engine for economic growth and job creation through innovative business models, new technologies and strategic partnerships. Kagame said collaboration in areas such as open sky policies, appropriate visa regimes across the continent and visa free movement among others can play a huge role in facilitating the growth of the sector in Africa. "We need more cooperation on the continent in order to increase the numbers of visitors as well as facilitate trade and investment within Africa. Implementing existing agreements on open skies and easing visa restrictions are steps in the right direction," the Head of State said. In light of this, Kagame said that Rwanda had begun implementing initiatives such as as the passport free travel to encourage intra-African tourism and the single tourist visa alongside some members of the East African Community. "In Rwanda, we also want to strengthen the collaboration in our region and across the continent. A single tourist visa and passport free travel between Kenya, Rwanda and Uganda is already a reality. So is visa on arrival for all Africans," he added. The...