TradeMark Africa (TMA) has signed a technical and financial support agreement with the National Horticulture Taskforce (NHT). The two partners committed to strengthen and sustain investments in Kenya's fresh produce exports. The agreement was signed as part of the EU-funded Business Environment and Export Enhancement Programme (BEEEP), which is among other areas supporting the transition of 50% of fresh produce exports from Kenya from air to sea-freight by the year 2030. The agreement was signed at an event which brought together stakeholders from the logistics sector to assess the state of agro logistics in Kenya and review development of Kenya’s Masterplan on the modal shift of fresh produce exports from air to sea freight. Kenya’s transitioning from airfreight to seafreight is not only an environmental choice but a vital economic advantage to secure its fresh produce exports, as supermarkets in the UK and Europe seek to diminish their climate footprint. Airfreighting from Kenya to Europe generates substantially higher greenhouse gases compared to sea freight (1 kilogramme of airfreighted green beans emits as much as 177 kilogrammes of sea freighted green beans). Part of the targeted initiatives by the NHT include building the capacity of producers of horticultural products to utilise sustainable processes including the use of renewable energy in farms, implementing various water conservation methods and transitioning exports of fresh produce from air freight to sea freight. Henriette Geiger, Ambassador of the European Union to Kenya said, “We are fully in support of the NHT as we transition the avocado, mango and vegetable value chains towards more sustainable production processes from farm to fork. This also aligns with our...

Malawi has commissioned a smart gate at Mwami Border Post in Mchinji District which will facilitate efficient cross-border trade between Malawi, Zambia and other countries in the Common Market for Eastern and Southern Africa (Comesa) region. In her remarks during the commissioning on Monday, Ministry of Trade and Industry Principal Secretary Christina Zakeyu said the smart gate will help speed up processes in clearing goods and services. She said: “Before the smart gate, we were using manual clearing system and this would take time, but now it will be more like self-service because the machine will be doing it all and just sending data. “Traders will be taking less time at the border; hence, they will be meeting customer targets.” Zakeyu also appreciated laboratory equipment for the Ministry of Agriculture and the Malawi Bureau of Standards which was commissioned alongside the smart gate, saying it will play a vital role in certifying the quality of goods entering the country. On her part, Malawi Revenue Authority executive director of corporate services Agnes Katsonga Phiri said the smart gate will also contribute significantly to revenue collection on vehicles that over-stay. She said: “The smart gate will be producing reports indicating dates and times trucks enter and exit the country which will help to eliminate allegations of delays in clearance of goods.” The project has been implemented by Comesa with funding from the European Union (EU) to facilitate smooth flow of goods, persons and services across the region. Comesa European Development Fund programme...

What you need to know: The NTBs pose a major problem for traders and producers, as they can reduce profits and limit market access. NTBs include issues that can hinder trading effectively such as discriminatory requirements for special licenses and permits, excessive paperwork, complicated customs procedures, and bureaucratic delays at borders The East African Community Secretariat has said it still has unresolved complaints of the Non-Tariff Barriers standing at 43.75 percent by June 2023, which still affects the follow-up trade in the regional bloc. The NTBs pose a major problem for traders and producers, as they can reduce profits and limit market access. NTBs include issues that can hinder trading effectively such as discriminatory requirements for special licenses and permits, excessive paperwork, complicated customs procedures, and bureaucratic delays at borders. “A significant number of NTB complaints were addressed (56.25%) and resolved within the given timeframe. However, a notable portion of complaints, specifically (43.75%) were still in progress by the end of June 2023," EAC said in a press statement it issued over the weekend. The EAC secretariat said a recent EAC Regional Meeting Committee (RMC) report (2023) estimated the direct costs of NTBs at $16.7 million and total trade impact at $94.9 million decreasing trade by an average of 58 percent. However, on the other hand in the press statement, EAC said since 2017, EAC has resolved 89.5% of the reported NTBs (EAC Time Bound Programme report, 2023). “In addition, there has been a relatively steady decrease in reported NTBs....

Africa is making strides in its visa openness policies boding well for cross border travel, ease of movement and trade in 2024 and beyond. The Africa Visa Openness Index 2023, published on Tuesday, reveals much progress since the seventh edition of the report was published in December 2022, reports African Development Bank. The visa openness achieved its highest score ever in 2023, surpassing levels last seen prior to the Covid-19 pandemic. The Africa Visa Openness Index (AVOI) measures the extent to which African countries are open to visitors from other African countries. Over the period 2020-21, massive border closures to curb the spread of COVID-19, affected land and air travel, with additional restrictions due to screening measures, bans on gatherings, quarantines and such, causing stagnation in 2022. In 2023, data from the report shows that 50 countries improved or maintained their 2022 score, with only 4 countries scoring lower. Since the first report was published in 2016, 36 countries have improved their score on the index. Forty-two (42) countries extend visa-free entry to citizens from at least 5 other African countries, while 33 countries do so to citizens of at least 10 countries. Four countries – up from three last year, –  have eliminated all visa requirements for African travelers. They are Rwanda, Benin, The Gambia, and Seychelles. All key overall matrices have shown improvements in 2023. In 28% of all intra-Africa travel scenarios, African citizens do not require a visa (an improvement from 27% in 2022 and 20% in...

NAIROBI, Kenya, Dec 11 – Over 300 MSMEs from all 47 counties are representing Kenya during the ongoing 23rd Edition of the East African Community (EAC) Micro, Small, and Medium Enterprises (MSMEs) Trade Fair, formerly known as the Jua Kali/Nguvu Kazi Exhibition, at Cercle Hyppique grounds in Bujumbura, Burundi. The theme for this year is ‘Connecting East Africa MSMEs to Enhance Intra-EAC Trade’ and has drawn over 1,500 MSMEs in trade, manufacturing, agribusiness, and services sectors from the seven EAC partner states. The EAC Trade Fair was officially opened by the Vice President of Burundi, Prosper Bazombanza, on December 8, 2023. In his remarks, the Vice President noted that the trade fair has been a vital platform for enhancing and revamping the socioeconomic integration of the people of East Africa. It also provides a platform and opportunities for MSMEs to showcase their products, facilitate business-to-business engagements, and share information on trade-related matters. The opening ceremony also doubled up as the launch of the EAC Non-Tariff Barriers (NTBs) App that was developed by the EAC Secretariat and Trade Mark East Africa with the aim of easing the reporting, monitoring, and elimination of NTBs in the EAC community. The app will also provide different access levels for traders and NTB focal points in each partner state. Kenya celebrated its country day with a showcase of its unique products and innovations, patriotic songs, fashion showcasing creative designs, apparel, artifacts, and dances from all the cultures represented. “This trade fair will not only avail...

By Ahmed Fara In the face of escalating global environmental challenges, African nations are at a pivotal moment. With less than four percent contribution to global greenhouse gas emissions (GHGs), Africa faces the daunting task of balancing economic growth with environmental sustainability. But this is not just a challenge; it's an opportunity for transformation. At the core of this transformation is the shift from traditional, fossil fuel-driven industrialisation to a model that leverages Africa's abundant renewable energy resources and minerals essential for green growth. Kenya, for instance, is leading by example, generating nearly 90 percent of its electricity from renewable sources, according to the Energy and Petroleum Regulatory Authority. Kenya’s case, pundits say, proves that industrialisation doesn't have to follow the pollute-first, clean-up-later pathway. It's a lesson in how environmental conservation and economic development can go hand in hand. The increasing preference for eco-friendly products in export markets affects African traders. For example, the environmental impact of airfreighting fresh produce from Kenya to Europe is significantly higher compared to sea freight. This not only impacts the environment but also the profitability of industries reliant on airfreight. However, transitioning to sea freight presents an advantageous solution. It is environmentally friendly and economically viable, aligning climate action with development goals. How significant are the environmental concerns with air freight? Air freight constitutes about 2.5 percent of global carbon emissions while transporting just 1 percent of total global cargo. This environmental impact is a driving force behind the shift. The transition to sea...

Preparations for the 23rd Edition of the East African Community’s (EAC) micro, small and medium enterprises (MSMEs) trade fair that is expected to showcase the region’s innovations and trade are in top gear. The trade fair, dubbed, the Jua Kali-Nguvu Kazi Exhibition is expected to attract more than 1,500 firms from all the seven EAC partner States. Themed, “Connecting East African MSMEs to Enhance Intra EAC Trade,” the exhibition will run from December 5 to 15, 2023 at the Cercle Hyppique Grounds in Bujumbura, Burundi. The trade fair is expected to contribute towards realising the region’s development goals and aspirations by lending support to this budding sector of the economy, which needs public patronage and government support to make it sustainable. “The trade fairs further create a considerable impact on the image of the sector, which is today seen as the panacea to the daunting question of unemployment and poverty alleviation in the region,” noted the EAC Secretariat in a statement. The trade fair will also feature a daily symposium aimed at enhancing awareness of and the capacity of MSMEs. Preparations for the 23rd Edition of the East African Community’s (EAC) micro, small and medium enterprises (MSMEs) trade fair that is expected to showcase the region’s innovations and trade are in top gear. The trade fair, dubbed, the Jua Kali-Nguvu Kazi Exhibition is expected to attract more than 1,500 firms from all the seven EAC partner States. Themed, “Connecting East African MSMEs to Enhance Intra EAC Trade,” the exhibition will run from December...

When the European Union (EU) and the United States of America (US) announced their collaboration by signing a joint communique in September 2023 to construct Africa's inaugural transcontinental Lubito trade corridor, it symbolised a pivotal moment in Africa's economic journey. Should this venture succeed, it will span the mineral-rich Angola, the Democratic Republic of Congo (DRC), and Zambia. The region's strategic significance extends to the supply of other critical minerals such as lithium, copper, manganese and coltan. The new infrastructure is poised to play a pivotal role in collecting these minerals, which are crucial for producing electric vehicles, wind turbines, and computers. Thus, transforming it into a robust regional economic community comprising 16 Member States, it also promises to revolutionise the entire Southern African Development Community (SADC) region, calling for a clear strategy that can be used to support the local value additions. Reflecting on the growing desire among African countries, particularly those rich in raw materials, to move away from traditional exports and foster local job creation, the project holds the potential to transform the Southern African Development Community (SADC) into a robust economic hub and foster regional competitiveness. As the corridor unfolds, its broader implications for harmonising regulations and propelling the Africa Continental Free Trade Area (AfCFTA) also underscores the importance of a comprehensive continental infrastructure roadmap. Currently, Africa stands at a crossroads, and with strategic partnerships and inclusive development, it can redefine its narrative, offering a brighter future for its youth and becoming a global exemplar of...

Non-tariff barriers (NTBs) remain a key challenge to intra-African trade even after the launch of the African Continental Free Trade Area Agreement (AfCTA), experts have warned. Speaking during the fourth World Transport Congress which was held in Nairobi last week, players in the shipping and logistics industry said without tackling the commercial challenges posed by NTBs, the AfCTA dream will never be realised. NTBs include quotas, embargoes, sanctions, discriminatory levies among others. AfCTA aims to accelerate intra-African trade and boost Africa’s trading position in the global market. The forum also highlighted how the shipping industry is embracing technology and the role of transport and logistics service providers in promoting green shipping. George Kidenda, a shipping and logistics analyst in Nairobi, said in efforts to increase free trade, African governments must aim to reduce up to 97 per cent of taxes. “We need proper infrastructure and free transportation of goods to achieve this. Most of our roads are not passable. Our airlines do not have free landing rights,” Kidenda said. “We also lack internet connectivity.” Head of Kenya Airways cargo business division Peter Musola, while speaking at the meeting, emphasised the need for trade liberalisation in Africa. “One of the biggest challenges in Africa is the issue of mutual demand. Airplanes or cargo ships will go in one direction full and return empty and this has the effect of increasing the price of goods. Trade liberalisation will stimulate domestic trade. The price will drop,” Musola said. According to the 2021 UNCTAD...

The recent admission of Somalia into the East African Community (EAC) has brought to the forefront the complexities and challenges associated with trade within this regional bloc. Despite the opportunities that come with Somalia’s inclusion, a new report underlines vital issues that need to be addressed for the EAC to fully benefit from the potential of regional trade. Challenges in Regulatory Compliance The report highlights the difficulty of navigating the different regulatory frameworks that member countries have in place. These disparities can create barriers and inefficiencies in trade, affecting the smooth flow of goods and services across borders. The economic disparities between member states, such as Somalia, with its ongoing conflict and vulnerabilities to climate change, and more stable countries like Kenya and Uganda, can lead to imbalances and tensions within the trading bloc. Infrastructure and Economic Disparities Infrastructural inadequacies, particularly in the road and rail networks, are another significant issue. Inconsistent and underdeveloped infrastructure can hamper the movement of goods, increase costs, and further widen the economic disparities between countries. The report emphasizes that for the EAC to truly thrive, there needs to be a concerted effort to address these inequalities and invest in robust infrastructure. The Path Forward The report suggests that harmonizing regulations can significantly reduce trade barriers and inefficiencies. It also stresses the need to address economic inequalities among member states. Investments in infrastructure, particularly in transport networks, are essential in facilitating the movement of goods and reducing costs. Additionally, the report mentions the potential benefits...