Since its establishment at the African Union meeting in Kigali in March 2018, much ink has been spilt and much media attention has been heaped upon the African Continental Free Trade Area (AfCFTA). Yet a lot of misconceptions persist. Borderless Africa was written essentially to clarify those misconceptions and to reemphasise the political economic case for the AfCFTA. We advance the argument that if it wants to achieve its long-term developmental goals, Africa no longer has any viable strategic alternative but to accelerate continental integration under the aegis of the AfCFTA. Despite its name, the AfCFTA actually goes well beyond the creation of a free trade area – it is about forming a continental market. Yet the wording ‘free trade’ understandably provokes adverse reactions in certain quarters, as it is often associated with economic liberalisation programmes of the 1980s and 1990s – ‘Structural Adjustment Programmes’ – that caused a lot of economic pain in Africa with very little gain. However, the critics are guilty of making a false equivalence – if it were true that the AfCFTA were a neoliberal project, then all attempts at regional integration would be open to the same accusation. An idea whose time has come In fact, the AfCFTA is firmly grounded in longstanding pan-African ideas of how to achieve greater unity among African countries. This goes beyond the usual names associated with pan-Africanism (Nkrumah, Nyerere, Senghor, etc.): Borderless Africa builds heavily on insights of two intellectuals that were deeply committed to pan-African ideals – Adebajo Adedeji and Thandika Mkandawire. In fact, Adedeji was one of the principal...

Trade within the East African Community has recorded a significant increase at the expense of trade with markets outside the continent. The EAC has also increased its trade with African countries outside of its sub-region. This is a result of the region’s deliberate efforts to boost intra-Africa trade. As reported by the East African, the seven countries that make up the East African Community, according to the most recent data from the EAC Secretariat grew their trade with the rest of Africa by $584.6 million to $4.3 billion in the fourth quarter of 2023, a 14% increase over the same time in 2022. Also trade amongst the community grew by 12% from $2.6 billion to $2.9 billion in the fourth quarter of the previous year, a sign of increasing commerce throughout the area throughout the year. In contrast, the EAC’s trade with the European Union, which would typically account for 10% of all its trades fell by 14% from $2.04 billion in the three months to December 2022, to $1.7 billion in the last quarter of 2023. Belgium saw the most steep decline in its trade with the EAC, dropping by 45% from $263 million in Q4 of 2023 to $188 million in Q4 of the same year. The USA recorded a 19% drop from $200 million in 2022’s October–December to $161 million in the previous year. Germany, Italy, and Switzerland’s trade with the EAC fell by 12%, 2%, and 23%, respectively. The EAC’s trade with its Asian partners also...

The Lamu Port-South Sudan-Ethiopia (Lapsset) Corridor Development Authority has rolled out plans to establish a special economic zone (SEZ) with the search for a consultant to draw a masterplan for land use. The agency says in a request for proposal (RFP) that the special zone seeks to attract firms dealing in food and beverage, textiles, leather, automotive, warehousing and logistics. “The key objectives of the master plan preparation for the SEZ include but are not limited to … creating a basis on which future physical and land use development plans within the SEZ will be prepared,” the agency said in the RFP. The consultant will also identify sectors that are likely to thrive within the SEZ and design the infrastructure to enable the zone to open up the Lamu Port. Tax incentives offered to firms operating in SEZs and the location at the port is expected to attract firms to the zone and create more jobs. SEZ enterprises do not register for value added tax (VAT) while firms supplying goods and taxable services to a SEZ pay zero VAT, allowing them to recover input tax. They also pay lower corporate income taxes –10 percent in the first 10 years and 15 percent in the subsequent decade. The standard corporate income tax in Kenya is 30 percent. “The consultant will be expected to prepare master plan designs, prototypes and implementation plans will guide the zoning development of the infrastructure and physical structures of the Lapsset Lamu SEZ,” the agency said. “The designs...

he ECOWAS Commission organized the 5th Meeting of the ECOWAS Regional Trade Facilitation Committee (RTFC) in Cotonou, Benin from 30th April to 3rd May 2024. The meeting aimed to advance the status of regional trade facilitation initiatives within the ECOWAS region whilst focusing on enhancing the implementation of existing initiatives, addressing non-tariff barriers, and strengthening the agri-food value chain.   On behalf of Madam Shadiya Alimatou Assouman, the Honourable Minister of Industry and Trade of Benin, Mr. Benjamin ALAMENOU welcomed participants to Cotonou. In his remarks, he outlined the need to overcome trade barriers to realize the vision of free trade and the importance of initiatives like the ECOWAS Trade Liberalisation Scheme (ETLS), Brown Card Scheme, and Common External Tariff (CET) towards achieving the ECOWAS Vision 2050. He called upon Member States to leverage the meeting as a platform for engaging in productive discussions to collaboratively address trade barriers and foster regional trade growth.  The ECOWAS Resident Representative to Benin, Ambassador Amadou DIONGUE extended a warm welcome to the meeting’s participants and partners collaborating with Member States to advance trade facilitation in the region. He highlighted the significance of the World Trade Organisation’s (WTO) Trade Facilitation Agreement (TFA) and highlighted the progress made in implementing trade facilitation measures in the region including the establishment of National Trade Facilitation Committees (NTFC) and the RTFC.  Inspection Of Seme Krake Jbp By Rtfc The representative of the Ministry of Industry, Trade and Investment from the Federal Republic of Nigeria and the Chairperson of the...

The Ethiopian government has received the first shipment of 60,000 tonnes of fertiliser imported through the Port of Lamu from Morocco. This is the first time Ethiopia is importing cargo through Lamu Port since its operationalisation three years ago. In the past few months, a delegation from Ethiopia has been assessing the viability of Lamu Port-South Sudan-Ethiopia Transit (Lapsset) corridor. For many years, Ethiopia has been mainly using the Port of Djibouti and Mombasa. On Saturday, an Ethiopian ship, MV Abbay II, started offloading the 60,000 tonnes of bulk fertiliser. Kenya Ports Authority managing director William Ruto said this is the largest consignment of bulk fertiliser to have docked in Kenya. “Indeed, this is a testament to many years of planning, dedication and hard work towards positioning the Port of Lamu as a logistics hub in the region,” he said. The fertiliser was bagged at the port, before being loaded on the waiting trucks for transportation to Ethiopia. “We are thankful and believe this is the first of the many vessels carrying Ethiopian bound cargo that we shall handle going forward,” Ruto said. Ethiopia’s Minister of Agriculture Girma Amante said the Lamu Port-South Sudan-Ethiopia Transit Corridor is a transformative project critical for Africa's ambition to establish a continental free trade area, as it supports the free movement of goods, services and people across the borders. “Ethiopia is one of the fastest-growing economies in Africa, given the size of its population, as the second most populous country in Africa. Therefore, it...

Uganda and Kenya have agreed to remove all the tariff and non-tariff barriers that have been increasing the cost of trade in order to promote mutual economic growth. This is according to the joint communique of the Second Session of Uganda-Kenya Joint Ministerial Commission (JMC) in Kampala that was issued by the host country’s foreign affairs ministry on Tuesday, May 14, 2024. Ministry of Foreign Affairs reported that the outbreak of the COVID-19 pandemic had delayed the convening of the 2nd session of JMC which had been scheduled to be held in 2021. Over the weekend, the two-day session, at the Sheraton Hotel, kicked off on May 12, with the delegation of the Kenya being led by Dr. Musalia Mudavadi, the Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs, while that of Uganda being led by Gen (rtd)  A.Jeje Odongo, the Minister of Foreign Affairs. The communique issued on Tuesday evening (today) states that the two ministers identified the opportunities existing in their two countries that could be exploited for the socio-economic transformation of their respective citizens. “They also identified the challenges that have affected the free flow of bilateral trade and agreed to resolve all the tariff and non-tariff barriers in order to promote mutual growth, development and prosperity. In this regard, they directed their technical officials to meet and consult regularly,” it said. They welcomed the proposal to hold a joint technical committee meeting to address any trade and investment issues that may still be...

L'Organisation africaine de la normalisation a déclaré que tous les pays du continent doivent harmoniser leurs normes pour pouvoir commercer efficacement dans le cadre de la Zone de libre-échange continentale africaine. S'exprimant lors du 38e atelier du Comité d'évaluation de la conformité de l'Organisation internationale de normalisation (ISO), organisé par le Bureau national ougandais de normalisation (UNBS), M. Hermogene Nsengimana, secrétaire général de l'Organisation africaine de normalisation, a déclaré que si le rêve de la zone de libre-échange continentale africaine devait se réaliser, tous les pays devraient veiller à ce que leurs normes soient harmonisées afin de réduire la duplication des efforts. "Nous devrions suivre l'exemple de la Communauté d'Afrique de l'Est, qui a commencé à harmoniser ses normes. Nous devons avancer ensemble si nous voulons stimuler le commerce intracontinental", a-t-il déclaré, notant qu'il y a eu une tentative d'harmonisation des normes de traitement pour les produits agricoles, les produits pharmaceutiques, les automobiles et les transports au niveau continental. "Nous comptons plus de 1 800 normes. En juin, 200 d'entre elles auront été harmonisées. Cela permettra de réduire les doublons et nous essayons également de simplifier les règles pour les commerçants", a-t-il déclaré. Les échanges commerciaux à travers l'Afrique continuent d'être perturbés en raison des variations dans les normes des produits et les spécifications des pays. Par exemple, l'année dernière, le Bureau national des normes du Sud-Soudan a confisqué plusieurs camions ougandais transportant des céréales, de la farine et du blé, sous prétexte qu'ils n'avaient pas passé les tests de...

L'Éthiopie s'est engagée dans la transformation de son secteur agricole en lançant le développement du système intégré de certification des exportations et des importations (IEICS), également connu sous le nom de système e-Phyto. Cette initiative numérique, fruit d'une collaboration entre l'Autorité agricole éthiopienne (EAA) et TradeMark Africa (TMA), vise à rationaliser le processus commercial des exportations et des importations agricoles. L'Union européenne, par l'intermédiaire de l'Agence française de développement (AFD), a financé le projet à hauteur de 9,1 millions d'ETB (149 000 euros). Ce passage au numérique remplacera les processus de certification traditionnels basés sur le papier, ce qui réduira considérablement les coûts de transaction et, en fin de compte, les émissions de carbone. Le système e-Phyto, qui est sur le point de remplacer les processus archaïques de certification manuelle et sur papier, représente un grand pas en avant pour le secteur agricole éthiopien. En adoptant des solutions numériques, l'Éthiopie cherche à rationaliser les processus, à améliorer l'efficacité et à favoriser la transparence tout au long de la chaîne de valeur agricole. Grâce à une intégration transparente avec les systèmes internationaux de certificats phytosanitaires, le système e-Phyto fournira des services dématérialisés de bout en bout pour la certification des importations et des exportations, depuis la soumission de la demande jusqu'à la délivrance du certificat. Le directeur adjoint de l'Autorité agricole éthiopienne (EAA) et chef de l'ONPV éthiopienne, Ato Wondale Habtamu, a déclaré que la transition du secteur agricole éthiopien vers un système e-Phyto s'aligne sur les tendances mondiales vers des...

Kenya-Ethiopia trade relations have been on the rise in the past 27 years, with Kenya having the upper hand.  Ethiopia, on the other hand, recorded an increase at an annualised rate of 23.7 per cent. During the Meeting Kenyan investors also undertook exhibitions showcasing some of their products. Kenya and Ethiopia have renewed the push to streamline the bottlenecks that are hampering trade growth between the two states. A delegation of the National Assembly to the Kenya-Ethiopia Trade and Investment Mission held in Addis Ababa, Ethiopia, has rooted for the speedy removal of bottlenecks hampering cross-border trade between both Nations. Kenya and Ethiopia have engaged in bilateral trade across multiple sectors, including agriculture, manufacturing, energy, and services, with the balance of trade hugely in favour of Kenya. In 2022, Kenya exported $95.1M (Sh12.8billion) to Ethiopia, mainly Palm Oil $12.4M (Sh1.7billion), Metal Stoppers $7.95M (Sh1.1billion), and Yeast $6.92M (Sh934million). This compares to just $26.6m (Sh3.6billion) that Ethiopia exported to Kenya in the period, mainly comprising dried legumes $6.26M (Sh845million), dried vegetables $5.01M (Sh675million), and corn $2.68M (Sh362million). According to the Observatory of Economic Complexity (OEC) a platform focused on the geography and dynamics of economic activities, during the last 27 years the exports of Kenya to Ethiopia have increased at an annualized rate of 4 percent, from $33M (Sh4.5billion) in 1995 to $95.1M (Sh12.8billion) in 2022. Electricity is among Ethiopia’s exports to Kenya [photo/East African] Ethiopia, on the other hand, recorded an increase at an annualised rate of 23.7 per cent, from $85.8k...

Malawi has ratified the Tripartite Free Trade Agreement, bringing the total number of state that have done so to 12. Now, only two are remaining to reach the requisite threshold of 14 to enable the agreement to enter into force. The ratification instrument, signed by Malawi Minister of Foreign Affairs, Hon Nancy Tembo was delivered to the office of the Secretary General of COMESA, Chileshe Mpundu Kapwepwe. The Tripartite FTA is an inter-regional co-operation and integration arrangement amongst countries of the Common Market for Eastern and Southern Africa (COMESA), the East African Community (EAC) and the Southern African Development Community (SADC). To date, 22 Member States have signed the TFTA Agreement, and 12 have ratified it. These are Egypt, Uganda, Kenya, Rwanda, Burundi, Eswatini, Botswana, Namibia, South Africa, Zambia, Zimbabwe and Malawi. The Tripartite FTA was launched in June 2015 in Egypt to enhance integration among the Tripartite Member/Partner States for their mutual benefit and to pursue the development of common programmes which will enable all parties to utilise the available resources effectively. In addition, it is intended to harmonise trade and investment regimes and in particular to establish a Free Trade Area amongst COMESA, EAC and SADC; enhance inter-REC economic cooperation. It is also intended to harmonise infrastructure programmes focusing on developing joint inter-regional infrastructure, and co-operation on transport and communications and financing of regional infrastructure projects. The implementation of the TFTA will facilitate the movement of businesspersons in the Tripartite region and enable the development of joint programmes...