Globally, much movement is underway in transitioning the transportation sector to cleaner fuel sources, and even more so across Africa. Of note is continent-wide efforts to resuscitate the rail sector. Due to its energy efficiency, reduced greenhouse gas emissions and lower cost per ton kilometre, rail transportation can play a crucial role in Africa’s industrialisation efforts. This market is vital to delivering on the promise of the African Continental Free Trade Agreement. Here is a snapshot of four projects addressing the need for rail transport infrastructure development this year so far. Apart from new build programmes, committing to continuous maintenance works on existing rail infrastructure is essential. One critical area for railway infrastructure is turnout sets. These rail configurations allow trains to change tracks smoothly without stopping. These sets also allow trains to re-route to avoid congestion and delays and to operate around maintenance work. For example, an important rail line in South Africa that connects the country’s coal to international markets experienced several such breakdowns, affecting mining companies’ ability to evacuate their coal export during H1 of 2023. Relief was reported in September after installing 18 sets during the annual July shutdown of the coal line from Lephalale in Limpopo through Mpumalanga to the Port of Richards Bay in KwaZulu-Natal. More work is underway. Register for Smarter Mobility Africa, taking place 1-3 October 2023 at Gallagher Estate in Gauteng. Use promo code ESI20MP to get the insider’s 20% discount on your ticket. DRC’s rail transportation momentum Of course, besides...

In a partnership spanning 13 years, the British High Commission and TradeMark Africa (TMA) have achieved significant milestones in reducing trade barriers for Uganda and its neighbouring countries, demonstrating why such collaborations matter, the two bodies announced recently. At a recent gathering, which was attended by notable figures including UK trade commissioner for Africa John Humphrey, Ambassador Kate Airey, the British high commissioner to Uganda, and TMA chief executive officer David Beer, highlighted their achievements since 2010. They said their work has led to substantial reductions in both the cost and time required for cross-border trade, benefiting Ugandan businesses and fostering regional economic growth. They pointed out the remarkable reduction in container transit time from Mombasa to Kampala, which dropped by a third between 2017 and 2021. General Katumba Wamala, Uganda’s minister of Works and Transport, expressed gratitude for the support received in various trade facilitation facets, including the construction and operation of One-stop border posts, road upgrades, the development of electronic cargo tracking systems, and support for farmers and traders in the grain sector. These interventions have not only reduced the cost and time of cross- border trading but have also introduced automated systems, minimized losses, and improved the economic fortunes of the region’s residents. The partnership extends beyond the UK, with significant contributions from development partners such as the European Union, Canada, Denmark, Finland, USAID and the Netherlands. These partners have bolstered trade facilitation in areas such as customs systems modernization, trade automation systems, harmonization of standards, and...

The flagship Africa Agriculture Trade Monitor (AATM) calls for the diversification of import sources to mitigate the adverse effects of the Ukraine crisis. African trade agreements can boost agricultural imports and exports and curb the adverse effects of climate change by including actionable provisions, according to the latest Africa Agriculture Trade Monitor (AATM). Published by AKADEMIYA2063 and the International Food Policy Research Institute (IFPRI), the 2023 AATM calls for concerted regional- and continental-level action toward sustainable trade flows and more environment-friendly trade policies. The report also delves into the negative impacts of the Russia-Ukraine war on fertilizers and food trade and recommends action to lessen the effects of the shocks on African countries and consumers. Unveiled at this year’s Africa Food Systems Forum (AGRF) in Dar es Salaam, Tanzania, the 2023 AATM provides high-quality trade statistics using consistent indicators to monitor trends in Africa’s participation in global trade as well as the status of intra-African trade. The report finds that Africa’s regional trade agreements (RTAs) do not exert a significant impact on its agricultural trade. The analysis attributes this to “shallow” trade agreements that focus on tariff reductions only, with limited impact on the agri-food market. The research highlights opportunities to include provisions on non-tariff measures and enhance their legal enforceability to accelerate intra-African agri-food trade. The report also calls for RTAs to include climate-related provisions to boost the contribution of trade to combat the negative impacts of climate change. “Amid global shocks like Ukraine and COVID-19, as well as the climate crisis, which is emerging as the biggest threat to...

his article comes in response to recent studies (1) which reveal that: – 45% (2) of African companies have classified Digital Transformation (DT) as a strategic priority. The adoption of digital technologies in African companies can increase productivity by up to 20% and profits by up to 25% (3). However, in Africa, the adoption of DT presents unique opportunities and challenges. In this article, I invite you to answer the question: What strategies can African companies use to maximise the return on investment (ROI) of their DT projects? Let’s look at them in turn: What is Digital Transformation (DT) in the African context. How Return on Investment (ROI) is calculated. What strategies to employ to maximise the ROI of DT projects. Conclusion 1- What is Digital Transformation (DT) in the African context? In my opinion, and according to the Draft Digital Transformation Strategy for Africa (2020-2030) (4), Digital Transformation consists of: An articulated set of initiatives: For example, by 2030, all African citizens should be digitally enabled and able to safely and securely access at least 6 Mb/s [megabits per second of Internet bandwidth] anywhere on the African continent, at an affordable price not exceeding 1 cts USD per Mb, via a smart device manufactured on the continent, at a price not exceeding 100 USD, to benefit from all basic electronic services and content, of which at least 30 per cent are developed and produced in Africa. Initiatives aimed at replacing analogue technologies (5). Actions based on digital technologies: for...

TradeMark Africa, in collaboration with the IOTA Foundation, is actively working to enhance trade efficiency across Africa by implementing advanced technology solutions. The IOTA Foundation’s partnerships with TradeMark East Africa and the European Union have led to significant advancements in the digitalization of trade processes. Aid for trade organization TradeMark Africa has been actively working on boosting trade and economic activity across Africa by adopting efficient technology systems. Recently, the CEOs of TradeMark Africa met with officials of the Kenya Revenue Authority to discuss the benefits of their previous investments and the customs efficiency. TradeMark Africa has been working on speeding up the clearance of goods, while decreasing dumping and diversion on the Northern corridor and thereby improving transparency. Aid for trade organization TradeMark Africa has been actively working on boosting trade and economic activity across Africa by adopting efficient technology systems. Recently, the CEOs of TradeMark Africa met with officials of the Kenya Revenue Authority to discuss the benefits of their previous investments and the customs efficiency. TradeMark Africa has been working on speeding up the clearance of goods, while decreasing dumping and diversion on the Northern corridor and thereby improving transparency. Read original article In addition to their work on customs efficiency and trade facilitation, TradeMark Africa is also exploring avenues to positively impact the healthcare sector, particularly in the realm of pharmaceutical trade. Recognizing the importance of affordable medication in enhancing public health across the continent, they have initiated discussions on the pricing of crucial drugs, including...

Lack of access to information on trade regulations, violence and harassment and lack of access to finance are hurting women and youth-led businesses in East African Community’s cross-border trade. This is according to the East African Women in Business Platform (EAWiBP). Women cross-border traders also often face discrimination at the borders where they have high chances of being harassed by border officials, especially when they travel alone, with cases where they are charged higher fees than men. Among the biggest impediments however is lack of information they need to navigate the complex trade rules and regulations despite the existence of a Simplified Trade Regime (STR) on customs procedures and documentation, leading to delays and penalties. “Information asymmetry is still a major challenge facing small-scale traders in the EAC region,” said Janice Kimaro, Regional Coordinator at the EAWiBP. About 47 per cent of women in cross border trade still use informal routes, according to a recent report by TradeMark Africa. This equates to more than half of the businesses, where 80 per cent of trading is run by women. According to TradeMark, the majority of the traders are unaware of Simplified Trade Regime (STR) on customs procedures and documentation, hence avoiding formal border posts leading to a higher cost of business. STR, provided under the EAC Customs Union, is aimed at attracting small traders transacting regularly in low-value consignments. The provision enables simplified certificate of origin, exempting consignments of goods that originate in the EAC and are valued under $2,000 (Sh292, 200) from payment of import duty in the EAC destination country. Speaking...

The Economic Community of West African States (ECOWAS) has adopted a regional strategy to accelerate the implementation of the African Continental Free Trade Area (AfCFTA) agreement in the ECOWAS region and leverage on opportunities for growth and prosperity. The 90th Session of the ECOWAS council of ministers endorsed the ECOWAS implementation strategy for the agreement on July 6 and 7, 2023, in Bissau, Guinea-Bissau. This step follows the Strategy’s adoption by ECOWAS Ministers of Trade and Industry (ECOMOTI) at the 3rd ministerial meeting which was held on April 27 and 28, in Abidjan Implementation Strategy for the free trade agreement to effectively integrate West African economies into the continental market, by building on the progress and success of regional integration in West Africa to better take advantage of the economic gains of a common African Market. The ECOWAS implementation strategy for the free trade agreement is timely, as it responds to the African Unions 2023 ambition geared towards the acceleration of AfCFTA’s Implementation, which came into operation on January 1, 2021, marking the commencement of trade in a single African market of 54 countries, including 13 ECOWAS Member States. The strategy is geared towards improving the effectiveness of the region’s trade integration framework, increasing coordination between member states on their national implementation strategies, strengthening the productive capacity of Member States, building the capacity of member states to engage in strategic African trade policy and ensuring the AfCFTA is a positive tool for women’s and youth economic empowerment. “The strategy is...

The Democratic Republic of Congo on Wednesday lifted visa restrictions on Kenyans, reciprocating to a gesture by Nairobi announced five days earlier. The Directorate General of Migration in the DR Congo said the move, in fact, was effective on the same day Kenya lifted its visa requirements on Congolese on September 01, 2023. A circular publicised on Wednesday by the Directorate said Kenyan nationals will no longer be required to get visas before travelling to the DRC. This is a new policy between the DRC and Kenya, both sides say, is to facilitate the movement of people for better integration into the East African community to which both countries belong. The DRC says this could also offer an opportunity to increase trade with Kenya through which it imports goods to eastern regions of the country. With the size of 2.4 million kilometres squared and a population of 100 million, the DRC has been seen by Kenya as a potential market for its banking sector, and other sectors such as transportation. Less than 10 percent of the population have bank accounts and just 13 percent can access mobile financial services, according to official data. Kenya has already increased its investment in this sector with Equity bank and KCB Bank already in the DRC. DRC joined the East African Community in May last year, becoming the seventh member. It is yet to ratify some of the Community’s instruments, however. But it has received favourable welcome.  Tanzania has also lifted the visa requirement for Congolese citizens. In a...

NAIROBI, Kenya (AP) — The first African Climate Summit opened Monday with heads of state and others asserting a stronger voice on a worldwide issue that affects their continent the most even though its 1.3 billion people contribute to global warming the least. Kenyan President William Ruto’s government and the African Union launched a ministerial session as more than a dozen heads of state began to arrive, determined to wield more global influence and bring in far more financing and support. The first speakers included young people, who demanded a bigger voice in the process. “For a very long time we have looked at this as a problem. There are immense opportunities as well,” Ruto said of the climate crisis, speaking of multibillion-dollar economic possibilities, new financial structures, Africa’s huge mineral wealth and the ideal of shared prosperity. “We are not here to catalog grievances,” he said. And yet there is some frustration on the continent about being asked to develop in cleaner ways than the world’s richest countries — which have long produced most of the emissions that endanger climate — and to do it while much of the support that has been pledged hasn’t appeared. “This is our time,” Mithika Mwenda of the Pan African Climate Justice Alliance told the gathering, claiming that the annual flow of climate assistance to the continent is a tenth or less of what is needed and a “fraction” of the budget of some polluting companies. “We need to immediately see the delivery of the $100 billion” of climate finance...

https://www.youtube.com/watch?v=i0d4tfgGvlw Climate finance, loss and damage and climate justice were the big themes emerging from Africa Climate Week and the Africa Climate Summit 2023 held in Nairobi, Kenya. African heads of state, United Nations Secretary-General António Guterres and Executive Director of the UN Environment Programme (UNEP) Inger Andersen all spoke of the need for climate finance for Africa that is commensurate with the scale of the crisis facing the continent Policymakers, business leaders and environmental campaigners came to Nairobi to find solutions for mitigation, adaptation and finance for Africa – the continent least responsible for carbon emissions but suffering its impact the most. Temperatures are rising faster there than in many other parts of the world, causing more frequent extreme weather events and prolonged droughts, leading to food shortages and loss of lives. Africa Climate Week is one of four regional weeks held this year that will build momentum ahead of the UN Climate Change Conference in Dubai. The Week is organized by the UN Framework Convention on Climate Change, the UN Development Programme, the UNEP and the World Bank, with the support of regional partners. Read original article