China has asked East Africa countries to consider its free trade proposal, saying it will be of great economic benefit to the region. Chinese Embassy's economic and commercial affairs counsellor, Guo Ce further downplayed claims that Kenya had declined the plan, noting that they are yet to receive any formal response on the proposal from any of the EAC member countries. "Claims that Kenya has opposed free trade proposal are not true. Not a single country has responded to this proposal. The proposed trade arrangement will deepen economic and cultural ties between China and East Africa, opening numerous opportunities for business operators,’’ said Guo. Last week, Trade PS Chris Kiptoo told a local daily that Kenya will not sign a free trade agreement that China is advancing with EAC but instead propose for a preferential trade agreement with the Asian economic giant. Kiptoo said that the free trade pact will worsen the huge trade imbalance between the two countries and would further benefit China at the detriment of Kenya's economy. According to Economic Survey 2018, Kenya’s imports from China narrowly missed the Sh400 billion mark to hit Sh390 billion, accounting for 23 per cent of total imports. The glaring trade imbalance between Kenya and China resonates across Africa, with data from China Africa Research Initiative (CARI) showing that the continent sold $34 billion (Sh3.4 trillion) with China on a total trade of Sh17.2 trillion in 2015. "It is time we review our trade partnership with China if we want to...

The African Continental Free Trade Area (CFTA) summit held in Kigali, Rwanda in March 2018 was supposed to be the culmination of former Ghanaian President Kwame Nkrumah’s dream of a truly united Africa. The CFTA, which was drafted in Niger in December 2017, envisages a trade area across the continent covering a market of 1.2bn people with a combined GDP of $2.5 trillion. According to research conducted by the UN Economic Commission for Africa (UNECA), the agreement could boost African economic output to around $29 trillion by 2050, and increase intra-African trade significantly. Currently, it stands at around 18% of total trade, which compares negatively to 59% in Asia and 69% in Europe. But just days before leaders from across the continent were supposed to sign the agreement, Nigeria’s President Muhammadu Buhari announced that Africa’s largest economy would not sign up to the historic accord pending further discussions with local trade unions and the business community. The move surprised most delegates in the opulent conference hall of the Kigali Convention Centre, especially because part of the agreement was negotiated under the chairpersonship of Nigeria. The country’s absence was compounded by the fact that South Africa, which is the continent’s second-largest economy, also did not sign up to the agreement. The absence of the two largest economies, however, did not come as a shock to one of the architects of the agreement, David Luke, coordinator of the African Trade Policy Centre (ATPC) at UNECA. “It’s not all that surprising that we...

Regional integration ranks among the most beneficial policies pursued by Kenya and its neighbours. By creating one large market, pooling resources and influence, East Africa is able to punch way above the weight of individual members. A bigger market is better placed to create jobs and prosperity. It is also more attractive to external investment. The East African Community (EAC) has travelled further down this road than many people realise. On all four fronts — creation of a customs union, common market, monetary union and a political federation — progress has been made, albeit, of course, amid challenges. The challenges are, however, tackled in an atmosphere of amity, mutual respect and trust. ONE MARKET A customs union has existed in East Africa since 2005. Tanzania, Uganda, Rwanda, Kenya, Burundi and South Sudan have agreed to trade freely without charging goods and services originating from these countries any taxes and all goods entering their markets are charged a standard duty, the common external tariff. This, effectively, creates one market. Subsequent to the customs union, which became fully fledged in 2010, is the common market — in force for eight years. This allows the movement of goods, labour and capital and citizens to travel, work and live anywhere in the community. Member states do not move at the same speed but they do not have to — so long as they are committed and moving in the same direction. Kenya has opened its doors to all East Africans, setting an example to...

LUSAKA, ZAMBIA- There are basically three ways to earn an income – stealing, inheriting or trading goods, services and assets. Stealing in its myriad forms is contrary to good public policy. Inheritance would be limited and subject to vicissitudes. Trade at various levels has been acceptable architecture for incomes. The higher the trade values, the better for income generation. Lots of jeremiads about low intra-Africa trade have been churned out. Figures of a decade ago, putting intra-Africa trade at 10 to 12 percent of total trade, still haunt recent analysis. According to the COMTRADE data base, 2016 figures put intra-Africa trade at 21.2 percent. This is still low relative to EU at 61.7 percent, NAFTA at 50.3 percent and ASEAN at 24.3 percent, which are more developed regions. Intra-Africa trade levels, however, are comparable to or higher than those of other developing regions, with MERCOSUR and CARICOM at 13.6 and 9.7 percent in 2016 respectively. It can be noted also that the COMESA-EAC-SADC Tripartite region accounts for 72 percent of intra-Africa trade, and Africa is the No.1 export market for the Tripartite region and several other countries. In a global environment of protectionist tit-for-tats sparked off by the Donald Trump of the United States, threatening a melt-down of the international trade system, conclusion of the African Continental Free Trade Area by 44 countries on 21 March 2018 in Rwanda, sent delightful reverberations around the world. This Agreement is expected to double intra-African trade, and as such a panacea to the low levels. A...

The Access Bank UK looking into Shariah-compliant offerings The Access Bank UK, a wholly-owned subsidiary of Nigeria's Access Bank, aims to strengthen its Dubai position as local operations here are performing better than expected due to strong and growing trade ties between China, the Middle East and Sub-Sahara Africa, said a senior official. Jamie Simmonds, CEO and managing director of The Access Bank UK, said the amount of business flows between the UAE and Sub-Saharan Africa are expanding rapidly and the decision to have representation has reaped to have its benefits here. "For more broad views, the handshake between China and Sub-Saharan [Africa] is equally growing. We have a good presence in China; it also required good representation here and we are seeing benefit of that," he said. The bank's profit grew by 80 per cent from £9.9 million to £17.8 million. Included within these results was an improving performance from the bank's international branch in Dubai, which delivered income of £671,00 (Dh3.4 million), ensuring positive contribution after meeting its direct costs. "It [profits from Dubai operations] may not sound a lot but it covered more than cost base for us. And we are seeing considerable increase on the performance delivered in 2017. For Dubai, we are slightly ahead of what we expected to be; we want a sustainable base to be built around relationship. It takes time but once it happens it give rapid pace to the growth," he said. The bank has an office at the Dubai International...

One major factor that has continued to stigmatize the continent of Africa is lack of infrastructure. The African Development Bank (AFDB) reported that Africa has an infrastructure gap that would require approximately $112 billion per year over the next decade to fix. This situation explains why both intra-and extra-African trade has been negatively impacted over the years. The development of infrastructure in the transport sector including rail systems, roads, new maritime routes and ports expansion, are crucial to trade facilitation and economic growth. Now, it appears this critical issue is receiving some attention following an aggressive push from all stakeholders including multilateral agencies. Many African countries have started addressing this challenge as we have seen turnkey projects being undertaken across the region through different partnership vehicles and financial models. According to Deloitte’s Africa Construction Trends (ACT) report of 2017, 303 projects valued at $307 billion are currently ongoing in the continent with Transport and Power sectors dominating. Sub-Saharan Africa is experiencing unprecedented magnitude of infrastructural development in the transportation industry especially railways. In East Africa – Djibouti, Ethiopia, Kenya and Tanzania have launched major transportation programs linking ports expansion to modern rail systems and road networks to facilitate easy access to market. To reference a few of these key projects, under the East African Railway Master Plan, the Standard Gauge Railway (SGR) system connecting port of Mombasa to Nairobi will eventually be extended to Uganda, Rwanda, South Sudan and Ethiopia. This megaproject is currently transforming logistics in the sub-region. Ports...

The ability of global trade to feed the world is one of the great success stories of the past generation. More than 1 billion people faced hunger on a planet of 5.6 billion a quarter-century ago; that number has fallen to 800 million, even as the population has grown to 7.6 billion. Trade has brought much of that progress: Shippers and exporters have become better and better at getting affordable food from places of surplus to regions of scarcity. But the planet is at rising risk of choking on its good fortune. More people, less hunger In billions, 2000-2016 Population Undernourished The shipping of farm commodities by road, rail and sea—the basics of how a harvest gets from Point A to Point B—remains concentrated on increasingly vulnerable trade routes that, when disrupted, become “chokepoints” in the global food supply, suddenly raising food prices and cutting off supplies when they fail. From aging locks and dams on the Mississippi River and days-long traffic delays in the heart of Brazil to political unrest on routes serving the Black Sea, the Middle East and China, transit networks are strained from growing agricultural shipments. Agricultural goods exported worldwide Billions of tons, 1990-2016 Global farm-commodity trade volume nearly tripled from 2000 to 2016, to 1.66 billion tons, according to UN data. Nearly half of all soybeans, almost a quarter of all wheat and more than an eighth of all corn is traded internationally, according to U.S. Department of Agriculture data. Percentage of major crops exported...

Chief justices from the East African Community member states want to be officially involved in the activities of the bloc so they can help coordinate legal affairs and strengthen administration of justice in the region. The chief justices said they are ready to offer legal solutions to “the controversies standing in the way of integration process.” They said that the treaty which established the EAC envisaged judiciary cooperation but felt short of giving proper elaboration on the engagements. COLLABORATION The CJs resolved to revive the East African Community Chief Justices Forum (EACJF) to enable them engage with other arms of regional governments and the regional integration body. The chief justices were in Nairobi for a consultative forum on enhancing regional collaboration in the administration of justice. Those in attendance were David Maraga (Kenya), Ibrahim Juma (Tanzania), Bart Katureebe (Uganda), Omar Makungu (Zanzibar), Chan Madut (South Sudan) and Sam Rugege (Rwanda). Somalia Chief Justice Ibrahim Suleiman attended as an observer. East African Chief Justices Forum President Emmanuel Ugirashebuja was also present. They said EACJF, where the President of East African Court of Justice will also sit, will also help enhance judiciaries' contribution to regional and national development, protection of rule of law and promotion of East Africa citizens’ well-being. STRATEGIES “We urge EAC partner states to include the EACJF as an official actor in the EAC processes particularly on the administration of justice, make the EACJF engagements part of the calendar of EAC activities, and provide for regular and structured direct...

ADDIS ABABA, May 14 (Xinhua) -- Ethiopian Prime Minister Abiy Ahmed on Monday said his country would ratify the African Continental Free Trade Area (AfCFTA) agreement, giving a major boost to the continental economic initiative. The PM made the remark during the opening of the Conference of African Ministers of Finance, Planning and Economic Development in Addis Ababa. Ahmed said ratifying the AfCFTA agreement will boost intra-Africa trade and boost employment opportunities for Africa's predominantly young population. Ethiopia, Africa's second most populous nation at around 100 million people which also happens to be East Africa's largest economy, is home to the AU headquarters, making its expected ratification of AfCFTA especially significant. So far, Ghana and Kenya have ratified the Continental Free Trade Area, though 44 African countries have signed the AfCFTA document. A minimum of 22 countries need to ratify the AfCFTA document for it to come into force. Source: Xinhua News

KAMPALA, Uganda–A new monthly market report for the month of April   on East African grains indicates that prices for staple grains in East Africa remain relatively  stable  thanks to good supplies for  grains to the markets in the region. A report from the East African Grain Council titled “East Africa grain markets and trade” shows that during the month of Aprils 2018, prices for rice, sorghum, wheat and beans declined as comparedto the previous month. The report shows that for the month of April, a metric ton of maize in Kampala went for USD 194 in compared to the USD 191 in March.  In Nairobi, the price was USD 330 in March and 313 USD  in April , in Kigali the price for maize stood at USD  212 in March and USD  198 in April and in Dar es Salaam  a metric ton went at USD 267 in March and USD  266 respectively . For the case of red sorghum the price were as follows, Nairobi USD  492 in march  and USD  474 in April, in Kampala the price was USD  244 in March  and USD  239, for Nairobi the price decline by -3.7% and that of Kigali went down by -1.8%. In Burundi and Rwanda, domestic stocks eased pressure on demand resulting to the decline in prices as observed. However supply of rice remained tightened in the monitored markets with demand mainly met by supplies from the global market. Maize prices continued on a downward trend with Kampala recording the...