The Continental Free Trade Area (CFTA) is widely seen as a potential stimulant for economic growth, industrialisation and sustainable development in Africa, despite some challenges which need to be addressed. Fears of significant tariff revenue losses and an uneven distribution of benefits are among the main obstacles to the continent's market integration. Trade liberalisation in the CFTA will lower trade costs and allow consumers to access a greater variety of products at lower prices. Lower costs for imported raw materials and intermediate inputs will increase the competitiveness of downstream producers and promote the growth of regional value chains. Trade liberalisation in Africa will also allow agribusinesses to access a large continental market of 1,284 billion people, thereby creating economies of scale. In the long run, increased competition is expected to improve agribusiness efficiency. However, small and medium-sized enterprises may struggle to compete when they are exposed to competition from more established firms as a result of the CFTA. Thriving agribusiness will drive economic growth Agricultural production is one of the most important economic sectors in the majority of African countries. Approximately 75% of Africans rely on agriculture for their livelihoods. History illustrates that agriculture, particularly the agribusiness and agro-industry sectors, have been a driver of economic growth in many countries across the globe, such as Brazil and China. In Africa, agribusiness and agro-industries account for more than 30% of national incomes, as well as the bulk of export revenues and employment. Scaling up agribusiness could be the next growth frontier....

The new African Continental Free Trade Agreement (AfCFTA) is expected to be a game changer, boosting inter-African trade, spurring manufacturing, and creating economic opportunities. But for its benefits to be realised, the details need to be negotiated; and Africa’s leaders need to commit to AfCFTA for the long haul. On 21 March 2018, 44 African states signed the African Union’s (AU) AfCFTA in Kigali, Rwanda. According to the AU, which initiated the process in 2015, the goal is to “Create a single continental market for goods and services, with free movement of business persons and investments,” with the purpose of accelerating intra-African trade. If, and when, all 55-member states of the AU sign the AfCFTA, the African Trade Policy Centre (ATPC) notes that the trade agreement will, “Cover a market of 1.2 billion people and a GDP of US$2.5 trillion [more than €2 trillion].”   Among the largest African economies, Nigeria and South Africa have not yet signed the AfCFTA. Nigeria’s President is facing pressure from labour unions and other groups who believe that the agreement will hurt the Nigerian economy by undermining local businesses. South Africa indicated its political support for the AfCFTA but stated that further internal consultations, as mandated by its constitution, were needed before signing it.   IMPLICATIONS FOR TARIFFS AND TRADE With current tariffs of 6%, ATPC notes that African businesses face higher tariffs when they export within Africa than when they export outside the continent. As AfCFTA eliminates tariffs on intra-African trade, this should encourage African businesses to trade within Africa. Intra-African trade could be boosted by...

Rwanda is a country of immense potential and countless opportunities.In December 2017, the Rwanda Standards Board (RSB), received the endorsement of the Dutch Accreditation Council (RvA), creating access for Rwandan products to compete in international markets. The RVA is an internationally recognised standards accreditation body. Rwanda Standards Board has been working with TradeMark Africa (TMA), to acquire a modern technology laboratory as well as international recognition of its mark of quality. TMA has also offered training to private sector and RSB staff on standards compliance. These efforts paid off with the certification of RSB for ISO 9001 and accreditation of Hazard Analysis and Critical Control Points (HACCP) and Food Safety Management Systems (FSMS) certification schemes. The Rwanda TMA Country Director, Patience Mutesi says: “TMA commends RSB’s commitment and effort to ensure delivery of standardisation services are internationally recognised and trusted.” This is crucial to expanding market access for locally manufactured products and opportunities for cross-border trade, growth and export promotion. “We are happy to keep supporting a good cause to promote cross-border trade in the region,” she adds.  Earlier, on October 26th, 2017 the RvA granted the RSB accreditation to carry out certification for HACCP and FSMS or ISO 22000. This process, delivered through TMA, was supported by the United Kingdom’s Department for International Development (DFID), and technically managed by the British Standards Institute (BSI). Accreditation elevates the RSB’s competence to provide certification, in this case HACCP and FSMS. It also indicates Rwanda’s maturity in the management of food safety....

The SET programme has highlighted Kenya’s lagging industrialisation, characterised by falling manufacturing to GDP ratios in the past few decades. Nonetheless, there is a real opportunity in the coming few years to get it right, doubling manufacturing output and creating 300,000 manufacturing jobs in the country. This will require implementation of a range of appropriate policies. The SET programme worked with the Kenya Association of Manufacturers, in consultation with others, to propose 10 policy priorities, ranging from target investment climate reforms to improved skills, better financing and quality infrastructure. After a successful engagement strategy, political parties signed up to these policies during a meeting in July 2017, and they are expected to carry this initiative forward to the upcoming election. One specific constraint is the lack of quality transport infrastructure in terms of roads and ports underpinning the transport corridor between Mombasa, Nairobi, Eldoret, Kampala and Kigali. Of course, any concerns should not ignore the considerable progress that has already been made. For example, with support from the UK DFID-funded (other donors also contribute) programme TradeMark Africa(TMA), the port of Mombasa is becoming more efficient and relying more on electronic systems. I myself witnessed the offloading of a DFID-funded crane, which will make the port more efficient and greener. A more efficient port has contributed to an 12% increase in cargo in the first half of 2017 (compared to the same period the previous year). In the past, CDC, the UK’s development finance institution, invested in Grain Bulk Handlers Ltd through Actis, but it exited this in 2016, citing success including...

In December 2013, Member Countries of the World Trade Organisation (WTO) concluded negotiations on a Trade Facilitation Agreement (TFA) at their 9th Ministerial Conference as part of the wider “Bali Package”. The TFA is about simplification, standardisation, harmonisation and transparency of trade-related procedures. According to the WTO 2015 Global Trade Report, the impact of implementing WTO TFA measures would potentially reduce the cost of trade by as much as 14%.  The agreement recommends members of a customs union or a regional economic arrangement to adopt regional approaches in the implementation of their obligations including through regional bodies. Following its adoption, WTO members undertook a legal review of its initial legal instruments to prepare for incorporation of the Bali decisions and on November 27, 2014 adopted a Protocol of Amendment to insert the new Agreement into Annex 1A of the WTO Agreement. At a country level, and with assistance from international and regional partners like TMA, members of the WTO (especially developing and least developed members) undertook a gap analysis of their trade related rules and regulations to better understand the necessary changes for them to comply with the TFA measures. The TFA will enter into force once two-thirds (110) of its 164 members complete domestic ratification process. At the moment, 108 countries have ratified the agreement, and its entry into force is imminent. Within East African Community, TMA in collaboration with partners like UNCTAD and GIZ have been providing necessary support for the 5 Partner States to prepare for its...

Tanzania has recorded an impressive improvement in the area of logistics according to the Global Logistics Index Report prepared by the World Bank in 2016. The country has jumped by about 70 positions to be number 61 out of 156 economies that were ranked as compared to 2014 when it was ranked number 138. The Logistics Performance Index is an interactive benchmarking tool created to help countries identify the challenges and opportunities they face in their performance on trade logistics and what they can do to improve their performance. Improvement in logistics can transform economies. Think of connecting the EAC region through efficient infrastructures where roads are passable in all seasons of the year, railway networks are operational and borders are traversable. That may amount to a significant gain to the consumers since logistical costs contribute substantially to final prices of goods in the region. Consumer gains resulting from reduced logistics cost can be very impactful in poverty reduction when goods such as agricultural inputs, medications, food, machineries are involved. Simplifying import processes with the rest of the world through enhancing logistic performance is an important mileage that should be achieved. Much as trading with the rest of the world is inexorable, ensuring the logistics processes within the region are at the top is a prerequisite requirement to augmenting the regional economic growth. Such efforts may lead to the increased intra-regional trade that ideally should be a building block to the increased regional exports to the rest of the world....

Tanzania has recorded an impressive improvement in the area of logistics according to the Global Logistics Index Report prepared by the World Bank in 2016. The country has jumped by about 70 positions to be number 61 out of 156 economies that were ranked as compared to 2014 when it was ranked number 138. The Logistics Performance Index is an interactive benchmarking tool created to help countries identify the challenges and opportunities they face in their performance on trade logistics and what they can do to improve their performance. Improvement in logistics can transform economies. Think of connecting the EAC region through efficient infrastructures where roads are passable in all seasons of the year, railway networks are operational and borders are traversable. That may amount to a significant gain to the consumers since logistical costs contribute substantially to final prices of goods in the region. Consumer gains resulting from reduced logistics cost can be very impactful in poverty reduction when goods such as agricultural inputs, medications, food, machineries are involved. Simplifying import processes with the rest of the world through enhancing logistic performance is an important mileage that should be achieved. Much as trading with the rest of the world is inexorable, ensuring the logistics processes within the region are at the top is a prerequisite requirement to augmenting the regional economic growth. Such efforts may lead to the increased intra-regional trade that ideally should be a building block to the increased regional exports to the rest of the world....

Trade facilitation and the role it plays in unlocking the growth of nations have never been as important as today. The World Trade Organization's Trade Facilitation Agreement (WTO TFA) signed in December 2013 is about simplification, standardisation, harmonisation and transparency of trade procedures. According to the WTO 2015 Global Trade Report, the impact of implementing WTO TFA measures would potentially reduce the cost of trade by as much as 14%. The agreement recommends to members of a customs union or a regional economic arrangement to adopt regional approaches in the implementation of their obligations including through regional bodies. In East Africa and the member states of the East African Community (EAC), Burundi, Kenya, Rwanda, South Sudan, Tanzania and Uganda, The Treaty establishing the EAC provides the legal framework for Partner States to develop and adopt an East African Trade Regime, and co-operate in trade liberalization. This includes simplification and harmonisation of trade documentation and procedures - also detailed in the EAC Customs Union Protocol. Based on this framework, the EAC has undertaken major trade facilitation initiatives. It is therefore no surprise that it has been ranked the highest performing Regional Economic Community on Trade Integration (Africa Regional Integration Index Report 2016 published by the AU, AfDB and UNECA). The support of Trade and Markets East Africa However, important challenges constraining cross-border trade and investment such as infrastructure gaps and non-tariff barriers remain, and remedial actions are being undertaken. Since 2010 TradeMark Africa has been partnering with the EAC Secretariat and...

Setting targets, measuring results and informing the world TradeMark Africa aims to reduce poverty through trade with a budget of about $560 million for around 150 projects targeting poverty reduction through trade development in East Africa. Quantifiable targets are essential when it comes to measuring and communicating results. This is especially so considering that TMA, a not-for-profit organisation working across six countries, works in partnership with Governments, the private sector and civil society, targeting results through different funding methods, from grants and financial aid, to technical assistance and hard infrastructure. We support our partners through a private sector approach that assesses their needs and fiduciary risks, to achieve tangible results. We are a facilitator rather than an implementer working through a partnership model. We are proactive, flexible and speedy delivering quicker than traditional aid agencies. TMA offices in each of the targeted countries - Burundi, Kenya, Rwanda, Tanzania, Uganda and South Sudan that ensure constant interaction with our partners to guarantee effective delivery. This may be in the form of infrastructure and systems support (hardware) or technical and policy know-how (software). Our experience shows that mixing hardware and software generates greater impact and value for money. Funding for TMA projects ranges from $100,000 to over a $1 million across different sectors. We ensure synergy across projects, coordinating and prioritising resources to achieve optimal value for money. Our programme and project cycle management processes are the foundation for setting targets, measuring progress and reporting the results. Our Theory of Change TMA’s...

Ensuring that both women and men benefited from customs digitalization was a major concern of the TradeMark Africa (TMA) Uganda team. How do you ensure that the needs and perspectives of women in large ICT projects are recognised? This was the question faced by the TMA Uganda Country Programme (UCP) as it supported the Uganda Revenue Authority (URA) to kick off the first phase of the US$5 million customs project - the National Electronic Single Window (NESW). Bearing in mind that studies suggest that a failure to recognise gender perspectives reduces women’s participation and limits the contribution of ICT, especially to poverty reduction, the UCP took measures to ensure that benefits of the NESW are accessible to both men and women. The first step was to develop terms of reference for the collection of baseline data disaggregated by gender. Data revealed that the ratio of men to women was ten to one in some of the institutions used in the data collection process. This revelation was used to inform the monitoring and evaluation (M&E) indicators, which adopted a requirement that at least 30% (about 900) of trainees learning the electronic single window system must be women. Additionally, at least 30% (about 300) of the final users of the NESW should be women, in line with the Uganda National Gender Policy, which prescribes that at least 30% of all positions in government ministries, departments and agencies be occupied by women. Applying lessons learned Lessons learned from implementation of the electronic cargo...