East African Community (EAC) Secretary-General Peter Mathuki says Somalia could be admitted to the bloc this month. An Ordinary Heads of State Summit is scheduled for November 23-24 in Arusha, and the region’s presidents are expected to endorse Somalia’s accession. Dr Mathuki told a panel at the Africa Investment Forum in Marrakech, Morocco, on November 9 that the bloc is looking to expand to the entire Horn of Africa, with Ethiopia having expressed interest in joining it after Mogadishu. “The East African Community is one of the building blocks of the African Union and it’s fast growing. We have DR Congo as the latest member, plus Kenya, Uganda, Tanzania, South Sudan, Burundi, Rwanda, and Uganda. That is a market of around 300 million people. And this November, we are likely to admit Somalia into the Community. The coastline of the East African Community will stretch almost 500,000 kilometres. And we look forward to more expansion; we are looking at Ethiopia, which has shown interest in joining the Community. So, at the end of the day, we are looking at a market of close to 700 million people,” he said. The panel comprising leaders of African economic blocs, EAC, Comesa, Southern African Development Community and Ecowas, was discussing the quest to integrate Africa. Dr Mathuki said the EAC is people-centred and emphasised the role of the private sector in driving intra-regional trade and integration. He said intra-EAC trade had grown twofold in the past decade, from less than 10 percent to...

Africa is the most food insecure continent in the world despite its huge agricultural potential. In 2021, about a fifth of the continent’s population faced hunger. Furthermore, AU’s Comprehensive African Agriculture Development Programme (CAADP) Biennial Review report (2019-2021) reveals that the continent is not on track to meet its goal of ending hunger by 2025. With its ballooning population, which is expected to constitute 25% of the world population by 2050, Africa’s food demand is expected to soar by 60% in 2030 compared to 2015 according to a World Bank report. Factors accounting food insecurity on the continent are diverse and multifaceted. As a region, it is the worst affected by long term shifts in temperature and weather patterns caused by climate change and global warming. Climate change continues to have a catastrophic impact on agriculture; the backbone of the continent’s economy. Recent external factors that led to food supply chain disruptions and, consequently grave food security challenges for the continent, have created an imperative for intra-African trade to meet its current and future food security objectives. The COVID-19 pandemic had a severe impact on food prices and by extension food security. This has all been aggravated by the ongoing Russia-Ukraine war that disrupted the supply of key commodities such as wheat and fertilizer; a critical agro input. Indeed, sharp price increases of bread, a staple food in many African countries triggered unrest as witnessed in instances such as Sudan. All these factors have exposed the fragilities of Africa’s food...

Uganda’s economic indicators spell better conditions for the private sector and business compared to other countries in the region, according to an expert study, the Africa Trade Barometer (ATB). Uganda’s overall macroeconomic conditions are “average with a slight positive outlook relative to the other countries in the Stanbic Bank Africa Trade Barometer.” “As such, Uganda’s macroeconomic conditions have a moderate to positive impact (neither too positive nor too negative) on its overall tradability attractiveness,” says the just-issued report, courtesy of the Standard Bank Group. The favorable conditions cited include the economy and the growing foreign direct investments (FDI) net inflows, which have been recovering from the worst effects of the COVID-19 pandemic and a relatively low inflation rate, compared to other countries covered by the ATB. While these factors have had a positive impact on the country’s tradability attractiveness, there are other variables that have had a negative impact, according to the report. These include merchandise trade, which still forms a relatively small portion of Uganda’s GDP and thereby signals a low level of trade openness as well as a low share of exports as a percentage of GDP. It adds that although businesses in Uganda are optimistic about the future performance of their economy, Uganda’s business confidence score of 57 remains slightly below the average of 58 for SB ATB markets. The positive outlook adopted by Ugandan businesses arises from the expected positive economic growth rate that is relatively higher than the average for Sub-Saharan Africa. The weaknesses of...

The high cost of air travel in Africa has been described as a barrier to tourism. Travellers within the continent not only pay higher ticket prices but also more tax to board a commercial aircraft. This emerged at the just-ended World Travel and Tourism Council (WTTC) global summit in Kigali, Rwanda. Speakers at the high-profile event—heads of state, business executives, and travel experts—said intra-Africa air travel remains prohibitive. “It is often cheaper to fly to another continent than to another African country,” they said as the meeting drew to a close. They cited an air ticket between Berlin in Germany and Istanbul costing a mere $150 for a direct flight taking less than three hours. Flying a similar distance between Kinshasa and Lagos in Nigeria would cost between $500 and $850, with the trip taking up to 20 hours. On the other hand, the cost of a flight from Entebbe in Uganda to the Kenyan port of Mombasa (916km) will cost up to $200. This is roughly eight times the cost of flying the same distance in Europe. There are also reports that a flight from Kampala to Arusha costs a staggering $480. Yet one can fly from Washington to Dallas (both in the vast US) using only $180, with a longer distance compared to Entebbe-Arusha. “This makes doing business within Africa incredibly difficult and expensive,” said Kamil al Awadhi,the regional vice president for Africa and the Middle East of the International Air Traffic Association (Iata). An assistant professor of...

The Abidjan-Lagos highway corridor, a crucial infrastructure project in West Africa, has secured a substantial $15.5 billion in investment interest, as revealed by Dr. Akinwumi Adesina, President of the African Development Bank, at the 2023 Africa Investment Forum (AIF) Market Days in Marrakech, Morocco. This corridor is anticipated to boost regional integration, sustainable economic development, and augment trade opportunities across West Africa. Unleashing Africa’s Potential Adesina emphasized the potential of African economies, citing a real GDP growth of 3.8% in 2022, surpassing the global average. He also highlighted the promising prospects for African economies, with five of the six pre-pandemic top-performing African countries projected to be among the world’s 10 fastest-growing economies for 2023–2024. Moreover, Adesina underscored the significance of the African Continental Free Trade Area (AfCFTA), which represents a consolidated market size of $3.4 trillion, and he encouraged investors to recognize Africa’s potential. Africa’s Role in the Electric Vehicle Market Adesina discussed the burgeoning opportunity in the electric vehicle market, emphasizing Africa’s pivotal role as a significant source of green metals essential for electric vehicle development. He pointed out that Africa’s resource wealth is key to the future of electric vehicles, with the electric vehicle value chain projected to increase from $7 trillion to $57 trillion by 2050. Agricultural Sector and SAPZs Beyond infrastructure and economic developments, Adesina addressed the agricultural sector, stressing the importance of Special Agro-Industrial Processing Zones (SAPZs) in Africa. He highlighted the immense potential of Africa’s food and agriculture market, projected to reach $1 trillion...

Kenya has accepted to host the headquarters of the Pan-African Payment and Settlement System (PAPSS), which is expected to enable traders on the continent to settle deals in their respective national currencies. According to President William Ruto, during the African Continental Free Trade Area Conference at Strathmore University on November 7th 2023, Kenya as a leader in the technology space in Africa was asked to host the headquarters of PAPSS, which he gladly accepted. “We have been asked to host the headquarters of the Pan-African Payment and Settlement System in Kenya. Because we are leaders in the technology space and because we are also promoters of the ACFTA and any institution that supports the integration of our continent, we have gladly accepted to host the headquarters of PAPSS,” he said. PAPSS, which is a brainchild of African Export-Import Bank (Afreximbank), is a centralized financial market infrastructure that allows a trader in one country to instruct his or her financial institution to pay another trader in a different country using their local currency. The platform is projected to save the continent billions that are incurred when traders have to convert and trade in dollars. With 11 African central banks having already been incorporated into PAPSS so far, and many more expected to join up, the system will be effective in the continent by when the platform will be adopted by African Union’s Assembly of Heads of State and Government, come 2024. The dollar, the global reserve currency, still dominates global trade....

TradeMark Africa (TMA) recently welcomed a high-level delegation of Tunisian Customs officials in Nairobi. The meeting focused on trade facilitation initiatives, eyeing potential future collaborations to connect the continent’s northern and southern regions. Alongside Tunisian Ministry for Trade and Export Development and a team from GIZ’s Support to Trade Agreements with Africa project, the delegation learned about TMA’s impactful infrastructure projects over the past 13 years, which have significantly reduced both the time and cost associated with trade. The talks also explored enhancing continental connectivity, using the corridor approaches for trade facilitation, and the principles of integrated and coordinated border management. TMA CEO Mr. David Beer briefed the delegation and highlighted TMA’s planned works in supporting trade that is not only inclusive but also green, particularly in its third strategic period 2023 to 2030. Benedict Musengele, TMA’s Director of Trade and Customs, emphasized the strategic advantage of linking North and South African trade corridors, noting Tunisia’s key role as a gateway to the European market. He highlighted that 90% of the countries TMA supports in the East African Community and Southern Africa are members of the Common Market for Eastern and Southern Africa (COMESA), to which Tunisia belongs. Additionally, the Tunisian delegation also met with various government agencies, including the Kenya Revenue Authority, a crucial partner in TMA’s initiatives like the integrated Customs Management System (iCMS) and the regional electronic cargo tracking system (RECTS) which are crucial to the integrated corridor management approach. Stefan Moses, an international trade expert and...

Ghana and Togo have pledged to address challenges affecting the smooth operation of the Noepe-Akanu Joint Border Post within six months.  This is to ensure efficient operations at the post ahead of its management by ECOWAS next year. Per the bilateral agreement, Ghana is to provide water and information and communication technology (ICT), while Togo will provide electricity for the facility. They have further agreed on a clear demarcation of roles of various focal persons of the two countries. This was the outcome of an inter-ministerial meeting on the operationalisation of the Noepe-Akanu joint border post between the two countries last Tuesday. Delegation The Ghanaian delegation was led by the Minister of Roads and Highways, Kwasi Amoako-Attah, while the Togolese side was led by the Minister of Public Works, Zourehatou Kassau-Traoe. The event was chaired by the Commissioner of Infrastructure, Energy and Digitalisation of ECOWAS, Sediko Douka. Also present were officials of customs and immigration of the two countries. Other members of the Ghanaian delegation included Rita Ohene Sarfoh (Director, Policy, Planning and Budgetting - Ghana’s Focal Person for the Joint Border Post); Ambassador Hannah Nyarko (Coordinating Director, Ministry of Foreign Affairs and Regional Integration), and the Director of Ghana Embassy, Lome, Adisa Yakubu. The rest were Bernice Hudegbeke (Director for Africa Bilateral Bureau, Ministry of Foreign Affairs and Regional Integration); Dr Fareed Kwesi Arthur (National Coordinator for AfCFTA Coordination Office); Alhaji Seidu Iddrisu Iddisah (Commissioner, GRA-Customs Division); Joseph Allan (GRA-Customs, Aflao Sector Commander); Peter Ofori Antobre (Head of Transit Unit,...

What you need to know: Horticultural Crops Directorate has suspended the export of Hass, Pinkerton, Fuerte and Jumbo avocado varieties by sea. The directorate says the decision follows a survey it undertook to establish the maturity indices of avocados in major production zones. Kenya has stopped export of avocados from Friday to allow the fruits to mature as part of measures to protect the country’s lucrative external market. In a notice on Tuesday, the Horticultural Crops Directorate (HCD) suspended the export of Hass, Pinkerton, Fuerte and Jumbo avocado varieties by sea but cleared air shipment of the fruit, including those on transit from other East African Community (EAC) countries. The directorate says the decision follows a survey it undertook to establish the maturity indices of avocados in major production zones. “Following the findings of the survey, we hereby notify the Kenyan avocado stakeholders that the closing of Hass, Pinkerton, Fuerte and Jumbo harvesting season and export by sea for the 2023/2024 fiscal year shall be in force with effect from 3rd November 2023,” said HCD acting director-general Willis Audi. He added: “Export clearance (including fruit consignments from the EAC region) shall be granted for air shipment, subject to inspection by the directorate. Traceability information will be required for all consignments.” Temporary bans on export is one the measures Kenya takes to deter premature harvesting of the popular fruit, which leads to export of low-quality produce putting at risk the country’s outside markets. This comes at a time demand for avocado...

The Taveta-Holili border post offers Kenya the best route to Burundi, Rwanda, and parts of Tanzania via the Voi-Taveta-Singida-Kobero road. Tanzania has failed to establish a geofence on a 15 km road beyond Taveta-Holili OSBP to open the transit corridor. This Non-Tariff Barrier is forcing truckers to take longer routes to deliver goods to Rwanda, Burundi, and parts of Tanzania. Across East Africa’s vibrant economic landscape, Kenya and Tanzania hold a prominent position as trading partners and nations engaging in a fierce economic rivalry. Collectively, the two countries collaborate in business, yet never-ending feuds often erupt into disruptions that hurt cross-border trade. Overall, the Kenya-Tanzania trade wars have slowed regional integration. These tensions have also limited the nations’ ability to exploit the full potential of the EAC market. Tanzania, with a projected economic growth of 5.5 per cent in 2023/2024, is actively positioning itself as a critical player in regional trade. In particular, Tanzania is tactfully intensifying competition with Kenya to control vital transit corridors. The ultimate goal is for Tanzania, which has outperformed Kenya as the top investment destination for investors looking to enter the region in the next two years, to enhance its position in the regional economy. The Taveta-Holili one-stop border post conundrum Built at an estimated cost of $12 million by TradeMark Africa (TMA), the Taveta-Holili One-Stop Border Post (OSBP) was launched in 2016. The post, which hosts key government agencies on trade from both countries, was established to enhance bilateral trade. Trade statistics indicate that the Taveta-Holili OSBP...