Nigeria Customs Service (NCS), yesterday, announced a partnership with the African Continental Free Trade Area (AfCFTA) Secretariat to facilitate trade on the continent. It also highlighted the stagnated growth of African trade system at 14 to 15 per cent over the past few years. NCS Comptroller-General, Bashir Adewale Adeniyi, while speaking during a meeting with AfCFTA members in Abuja, regretted the low trade volume in Africa, stating that the continent currently accounts for a paltry three to four per cent of global trade. Recognising the benefits of trade, including economic growth, job creation and poverty alleviation, Adeniyi expressed enthusiasm for the potential of AfCFTA and its objective of creating a continental free trade area. He described the Guide Trade Initiative as an important tool for countries to expand their markets, emphasising the need for collaboration to verify goods at ports of origin. The Customs boss noted that his administration had implemented measures to improve trade facilitation in Nigeria. In the first quarter of the year, the parties plan to conduct a time-release study in collaboration with other government agencies to streamline processes. Adeniyi equally underlined data analysis, announcing plans to train officers in this field. In his remarks, Secretary-General of AfCFTA, Wamkele Mene, while congratulating Adeniyi on his appointment, expressed excitement about finding solutions to trade challenges in Africa. He underscored the importance of cooperation between the two organisations in addressing trade impediments. Mene said the collaboration would significantly enhance trade and revenue generation in various African countries. The partnership...

What you need to know: Fostering regional trade, resource mobilisation and integrating new partner states are at the core of the EAC’s New Year agenda Arusha. The East African Community (EAC) is seeking to boost intra-regional trade to at least 40 percent of its trade with the rest of the world in five years – up from 11 percent currently. Fostering regional trade, resource mobilisation and integrating new partner states are at the core of the EAC’s New Year agenda. Attaining the target means increased efforts to eliminate a host of trade barriers that have persisted for years. EAC secretary-general Peter Mathuki has outlined measures, which he believes will foster intra-regional trade to the desired level. These include optimising the implementation of the Customs Union and Common Market protocols and implementing the four-band Common External Tariff (CET) to enhance trade competitiveness. Two years ago, the regional economic bloc adopted a CET structure of zero percent, 10 percent, 25 percent and 30-35 percent.”We endeavour to continue with its implementation to facilitate trade competitiveness,” Dr Mathuki said in his New Year address to EAC staff. He added that non-tariff barriers (NTBs) were to blame for low intra-regional trade that was in 2022 estimated to be only 11 percent of EAC’s trade with the rest of the world. “We need to work together to eliminate NTBs hindering intra-regional trade,” Dr Mathuki said, adding that he was optimistic intra-regional trade in East Africa would rise to at least 40 percent in the next five...

Kenya is the largest African producer with 345,000 tons, followed by South Africa and Tanzania. Other major producers include Côte d’Ivoire, Ghana, and Ethiopia. However, the potential is much greater. Avocado trees thrive in Africa’s climate, and production could easily double or triple with improved farming techniques and investments in infrastructure and technology. Currently, the majority of African avocados are destined for domestic markets. Less than 10% of production is exported. African avocados have huge export potential, especially for European markets where demand is growing exponentially. Currently, Europe relies heavily on imports from Latin America and Israel. But Africa has advantages, including lower labour costs and proximity to European markets. AfCFTA, which eliminates tariffs on 90% of goods traded between members, could be a major catalyst for Africa’s avocado export industry. By reducing trade barriers between African countries, AfCFTA will enable avocado producers to access larger regional markets. Farmers will also benefit from economies of scale, incentivising investments that will boost productivity. The African Development Bank has funded several avocado projects in East Africa through its Enable Youth programme. This includes supporting avocado farmers and youth agripreneurs in Kenya, Mozambique, Tanzania, and Ethiopia to boost their productivity, access markets, and develop value-added products. The Kenya Agricultural and Livestock Research Organisation (KALRO) has an ongoing avocado breeding programme aimed at developing new, high-yield varieties that are resistant to pests and diseases. KALRO is also conducting research on post-harvest handling, value addition, and integrated pest management for avocados. The World Agroforestry Research...

Zimbabwe has recorded an exceptional 115,6 percent increase in tourist arrivals to resorts such as Victoria Falls. Correspondent African countries are set to record an increase in tourism numbers in 2024, as more countries continue to open their borders to other African countries by abolishing visa requirements. In 2023, most African countries made significant strides to liberalise their visa regimes, with Rwanda and Kenya being the latest to completely remove visa requirements for all African travellers, joining Gambia, Benin, and Seychelles. Kenya’s transition towards a visa-free regime saw the country’s Immigration Department receive almost 10,000 applications for the new Electronic Travel Authorisation (ETA) allowing foreign nationals to visit or transit through the country by air, in the first week of January 2024 alone. The Immigration department was processing the applications based on the travel schedule submitted by each applicant, according to Kenya’s Immigration Principal Secretary Julius Bitok. Kenya expects to more than double its tourism numbers from 2 million visitors to 5 million arrivals every year, thanks to the new system. The African Development Bank’s 2023 Africa Visa Openness Index, reports that 50 countries have now improved, or maintained, their openness scores. The increase has been attributed to the rise in country-to-country and, in some instances, multi-country agreements to completely remove or ease visa restrictions. A concerted effort by African countries to promote the free movement of people across the continent is seen growing in the New Year, to bolster tourism and trade. “Sustaining the momentum on visa liberalisation is...

In October last year, horticulture stakeholders agreed on restricting avocado exports to air shipments due to low volume of the fruit for exports in the country. As a result, there has been a widespread speculation about whether Kenya imposed a ban on avocado exports. The true position is, over the past 10 years, avocado exports have been restricted to air shipments between the months of November and February, due to insufficient volumes to fill sea containers. During this restricted period, exceptions may be granted to specific orchards upon request, provided that they undergo a 100 per cent inspection conducted by relevant government agencies. This decision was informed by the realisation that certain traders exploited the high demand for avocados. These traders shipped immature fruits, resulting in complaints about the produce not ripening properly at the end market, a development that could damage reputation of Kenya’s fruits. This restriction thus was enforced to safeguard the country’s markets and reputation as a source of quality avocados. Following media reports that Kenya had banned avocado exports, buyers went into panic. Export markets operate on long-term relationships; buyers place orders over time relying on supplier consistency. Any disruption in this chain can cause significant disruptions in the export market thus loss of revenue for the industry and the country. Recently, various organisations took journalists through training on some of the technical aspects affecting trade in fresh produce industry. Such trainings are important to note what substances can and cannot be used for particular markets...

The recently inked Economic Partnership Agreement (EPA) granting Kenya duty-free access for over 80 percent of exports into the European Union represents a milestone for the country. However, the unilateral nature of the pact and resulting tensions with regional partners underline the delicate diplomacy required to balance national and collective interests. As the largest East African economy, Kenya’s bigger challenge is converting preferential European access into an engine of growth for communities across the region. Given recent history, scepticism from fellow East African Community (EAC) members over Kenya forfeiting regional solidarity is understandable. The original EU-EAC EPA signed in 2014 was held up over reluctance by Tanzania and Uganda to open their markets, resulting in the current Kenya-specific deal. With other regional commitments like the AfCFTA also in play, this bilateral tactic reinforces impressions that the EAC lacks cohesion in engaging with external parties. There is concurrently a sense that Kenya leveraged its economic muscle to secure a sweetheart arrangement without considering regional impacts, especially around trade diversion. Kenya could, however, employ savvy diplomacy and commercial policies to change the narrative. Tanzania's and Uganda’s wariness stems from fears of losing tax revenues and being swamped by EU goods re-routed through Kenya. But with a 15-year transition period, gradual impact on regional tariffs and exemptions for sensitive sectors, these impacts can be jointly evaluated and managed. Open communication and data exchange with EAC authorities would build confidence in Kenya’s commitment to mitigate harm. More broadly, Kenya can spearhead collective gains by...

Cabinet Secretary for Investment, Trade and Industry Rebecca Miano spoke to Luke Anami on benefit of recently signed Kenya-EU Economic Partnership Agreement. ******* Critics of the Economic Partnership Agreement (EPA) say Kenya should brace itself for cheap imports from Europe, such as powdered milk, which was not liberalised… Kenya should instead brace itself for increased investments targeting the 27 countries; the €14 million ($15.5 million) EU market where, given permanence of the pact, investors can be assured of long-term revenue and start diversifying to increase capacity for their firms. We also expect more investment from the EU targeting sale of goods into Comesa, the East African Community and the African Continental Free Trade Area is a free trade area encompassing most of Africa — established in 2018 by the African Continental Free Trade Agreement (AfCFTA). The dairy sector largely remains a protected industry under the terms of the Epa. Several products derived from milk remain closed for further liberalisation. These include whey powder, powdered milk, yogurt, cheeses, butter and dairy spreads. Kenyans should focus on building competence to turn these into world-class industries with capacity to export. Will the rest of the EAC sign the same EPA as Kenya's? Yes, they will accede to the current document as individuals or as groups. The document actually anticipates that this will happen and is designed to ease such entry. What is the impact of the EPA in terms of intra-EAC trade? The EPA that was negotiated in its most substantial parts by...

In the dynamic world of trade, where aspirations of growth and prosperity are painted on a vibrant canvas, there lurks an ominous spectre - Gender-Based Violence (GBV). This silent adversary creeps into the fabric of trade, gnawing away at the potential of women entrepreneurs and obstructing the path to inclusivity. Recent dialogues, spearheaded by TradeMark Africa, following the culmination of 16 Days of Activism against GBV, echoed a resounding call to action. Within the bustling corridors of trade, GBV emerges not merely as an obstacle but as an insurmountable impediment, inflicting profound physical, emotional, and financial wounds on women. Survivors grapple not just with the trauma of violence but also with societal stigma, limited access to essential services, and a dire absence of safe havens. The promise of empowerment through trade transmutes into a perilous odyssey veiled in fear and uncertainty for these individuals. It’s imperative to acknowledge that women entrepreneurs across East Africa serve as the backbone of trade, constituting up to 70 per cent of informal cross-border traders. However, they grapple with disproportionate challenges - from sexual harassment to physical violence impacting their pursuit of economic opportunities. This issue transcends regional borders, resonating across Africa and reverberating globally. The World Bank reports that women’s involvement in trade remains hindered, with one in three women facing violence, often intersecting with their trade activities. These statistics underscore that GBV not only hampers progress but inflicts profound wounds, rendering trade a perilous journey for survivors. This necessitates a societal shift, reshaping...

Ethiopia has taken the first legal steps on a path that could one day enable the landlocked country to gain access to the sea, its government says. It has signed what is known as a memorandum of understanding (MoU) with the self-declared republic of Somaliland to use one of its ports. Ethiopia's Prime Minister Abiy Ahmed has previously described sea access as an existential issue for his country. His statement in October prompted tensions across the Horn of Africa. There were some fears, quickly dampened by the authorities, that this implied trying to take land from another of Ethiopia's neighbours, Eritrea. The details of Monday's agreement with Somaliland have not been made public but a statement from Mr Abiy's office said it would "pave the way to realise the aspiration of Ethiopia to secure access to the sea". Talks leading up to the MoU have focused on the Somaliland port of Berbera. Mr Abiy's national security adviser, Redwan Hussien, also said on X that the arrangement could also enable Ethiopia to access a "leased military base" on the sea. An MoU is not legally binding, though it is seen as a statement of intent and can lead to a treaty imposing obligations on those parties who have signed. Nevertheless, the development is being portrayed by Addis Ababa as a major diplomatic victory. The prime minister, who signed the MoU with Somaliland's President Muse Bihi Abdi in the Ethiopian capital, wrote on X that "all that can be said is thank God". Speaking...

For decades, Africa has been the world’s most commodity-dependent continent. At the same time, it has become overly reliant on imports from the rest of the world: intracontinental trade accounts for only 15 percent of total African trade, compared to 60 percent in Asia and 70 percent in the EU. Worryingly, imports of manufactured goods into African countries have grown by more than 25 percent over the decade ending in 2022. The continent’s import dependency can be explained primarily by the dearth of African industrial entrepreneurs. And Africa’s projected population growth and burgeoning middle class suggests that this dependency will only grow in the medium term, with significant implications for macroeconomic stability, unless local actors begin driving innovation and creating new products and services to meet the needs and desires of domestic consumers. The problem, however, is not sustained import growth per se, especially when the rise of global value chains and increasing fragmentation of production have reduced the power of exports as a driver of short-term demand. Instead, the main issue is that African countries are participating in global value chains largely through backward activities, systematically exporting natural resources and primary commodities and importing manufactured goods, an imbalance that drains wealth away from the continent. For African fossil fuel-producing countries, the carbon-intensive “round-tripping” model of exporting crude oil and importing refined petroleum has been costly, resulting in immense deadweight losses and foreign exchange leakages. In Nigeria, for example, the opening of a much-anticipated oil refinery could save the country...