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...

Non-tariff barriers (NTBs), a complex web of regulatory and procedural stumbling blocks, are mounting considerable challenges for businesses within East Africa. These barriers, stretching beyond conventional tariff measures, are stifling the free movement of goods and services, consequently escalating operational costs and hampering trade in the region. NTBs: Obstructing Aspirations of Regional Integration These hindrances are emerging as a formidable threat to the hopes of regional integration among East African nations. The pursuit of a unified market, with its promise of fostering economic growth and competitiveness, is being thwarted by NTBs. The business environment is complicated by these barriers, which discourage cross-border trade and deter potential investors. Impact on Economic Development The elimination or significant reduction of these barriers is viewed as crucial in realizing the envisioned level of integration. Such a level is expected to stimulate investments, bolster intra-regional trade, and spur economic development in East Africa. However, the persisting presence of NTBs poses a significant challenge to this ambitious blueprint. Climate Reality and Economic Disruption In parallel, the Middle East and Central Asia are grappling with a grim climate reality. The regions are witnessing temperatures rising at double the global average, along with increasingly unpredictable and scarce rainfall. These adverse climate conditions are poised to exacerbate existing conflicts and disproportionately affect fragile states. The economic disruption that ensues is set to intensify. Despite the challenging climate situation, many countries within these regions are initiating measures to mitigate the impacts of climate change. Nevertheless, the need for more ambitious...

Leaders and experts from various sectors and regions shared their insights and experiences about the role of transport infrastructure in transforming the continent at the Africa Investment Forum (AIF), an annual business gathering that aims to raise funding for infrastructure and other projects in Africa. Participants gave examples of how transport infrastructure, such as roads, railways, ports and airports, can foster trade, integration, and growth in Africa. They generally agreed that Africa still has a huge infrastructure gap that hinders its development, stressing the need to increase infrastructure financing through innovative solutions such as those promoted at the AIF. Participants heard that African countries have a dual challenge in developing their transport infrastructure: they must ensure efficient, safe, and affordable mobility for all, while reducing the environmental impact of that infrastructure. This is a complex and urgent challenge that requires innovative ways of managing risks and attracting capital, particularly from the more risk-averse private sector. Dr. Akinwumi Adesina, President of the African Development Bank (AfDB), noted that AIF brings together world-class financiers that have the ability to use innovative financing instruments and mechanisms – such as pooled financing facilities, blended finance, and guarantees – to lower risks and increase returns. He called for significant investments to build better roads, bridges and ports, noting that the AfDB was leading the way in championing big ticket investments in transport infrastructure across the continent. “As of 2022, the African Development Bank had financed 25 transport corridors, constructed over 18,000 kilometres of roads, 27...