Agricultural and allied experts yesterday raised another red alert on food insecurity in East Africa Agricultural and allied experts yesterday raised another red alert on food insecurity in East Africa, largely blamed on climate change. They have called for urgent interventions to address the crisis, noting that 63 percent of the bloc’s population is undernourished. “The impact of climate change is visible everywhere in the region. We should tackle it from the underlying causes”, warned Jean Baptiste Havugimana, the Productive Sector director at the East African Community (EAC) secretariat. He said that despite last-minute rains during the last farming season, he was still worried that there would be sufficient rains during the coming season. Mr Havugimana challenged governments and other stakeholders in the EAC partner states to waste no time in tackling the underlying causes of the crisis. He raised the alert here before a group of cyclists moving across the region to raise awareness of the impact of climate change at the Arusha Technical College (ATC). A programme manager with GIZ, a German aid agency, Max Middeke, said the situation was worrying because more than half of the bloc’s population (63 percent) was food insecure. “In East Africa, climate change is causing devastating impacts on food security, leading to harvest failure and livestock losses,” he pointed out. He implored the regional leaders to act swiftly to help manage the adverse impacts of climate change “and reduce the threat of food insecurity.” In the EAC, Mr Middeke went on to...

With abundant resources and growing consumer market, Africa can become a prominent manufacturing destination for tech-intensive industries and a key link in global supply chains. Geneva, 16 August 2023 African economies can become major participants in global supply chains by harnessing their vast resources of materials needed by high-technology sectors and their own growing consumer markets, the United Nations Conference on Trade and Development (UNCTAD) said in its Economic Development in Africa Report 2023 launched today in Nairobi. Supply chains encompass the systems and resources needed to develop, produce and transport goods and services from suppliers to customers. "This is Africa's moment to bolster its position in global supply chains as diversification efforts continue. It's also an opportunity for the continent to strengthen its emerging industries, foster economic growth and create jobs for millions of its people," UNCTAD Secretary-General Rebeca Grynspan said. Africa's abundance of critical minerals and metals, including aluminum, cobalt, copper, lithium and manganese, vital components in technology-intensive industries, positions the continent as an attractive destination for manufacturing, as recent upheavals caused by trade turbulence, geopolitical events and economic uncertainty compel manufacturers to diversify their production locations. Africa also offers advantages such as shorter and simpler access to primary inputs, a younger, technology-aware, and adaptable labour force and a burgeoning middle class, known for its growing demand for more sophisticated goods and services. Strengthening African supply chains is key for the region’s growth The report highlights that creating an environment conducive to technology-intensive industries would help raise wages on the...

East African Community Secretariat, Arusha, Tanzania, 16th August, 2023: Non-tariff Barriers (NTBs) and protectionism at the national level have been identified as the key factors impeding the growth of intra-EAC trade. The East African Community (EAC) Secretary General Hon. (Dr.) Peter Mathuki said that the region was therefore working continuously to eliminate NTBs with 26 NTBs having been resolved out of the 33 that had been reported as of June 2023. Dr. Mathuki added that seven (7) NTBs remained outstanding but were at different levels of resolution. “To facilitate free movement of goods, Partner States have effectively eliminated Non-Tariff Barriers (NTBs) as they arise and have cumulatively eliminated a significant number of 184 NTBs with only a few remain outstanding,” said Dr. Mathuki. The Secretary General who was delivering the annual State of the EAC Address at the EAC Headquarters in Arusha, Tanzania, disclosed that EAC total trade increased by 13.4 percent to US$74.1 billion in 2022 from US$65.3billion in 2021, while the total Intra-EAC trade grew by 11.2 percent to US$10.9billion in 2022 from US$9.8 billion in 2021. The SG further stated that the percentage share of Intra-EAC trade to EAC total trade stood at 15 percent in 2022, and 2023 has indicated a positive trend with 16% in January and 19% in February recorded of total EAC trade. “The increase is attributed to a strong collaboration with Partner States to promote EAC trade including admission of DRC, timely resolution of Non-Tariff Barriers, enhanced trade facilitation initiatives, harmonization of 2,568 East...

Construction of the Rubavu port, which is anticipated to enhance tourism and facilitate cross-border trade between Rwanda and DR Congo, is making progress. With works underway, the port, covering two hectares, is located in Rubavu District’s Nyamyumba Sector along the shores of Lake Kivu. According to the Senior Engineer at Railway and Cable Car Transport at Rwanda Transport Development Agency (RTDA), Jean Népo Ndayambaje, the development of the port will open up Western Province for tourism and trade. “It will increase connectivity between districts along the Lake Kivu shores as well as boost cross-border trade between Rwanda and DR Congo. It is anticipated that the port will reduce costs of existing trade flow along Lake Kivu,” Ndayambaje noted. The innovative facility is currently under construction and will be completed in two phases. It is comprised of two main sections: a cargo terminal and a passenger terminal. The cargo section meant for trade purposes has accommodation building for staff, a petrol station, waste water treatment plant, store and quay; whereas the passenger terminal has maintenance, an electrical substation, workshop, a-two-level building for a restaurant and the main offices of the port and security check.   Inside a break bulk store of Rubavu Port that is still under construction. The New Times recently toured the port, accompanied by Mohamed Salah Allani, a structural engineer from Société centrale pour l'équipement du Territoire (SCET-Tunisie), the company overseeing the construction. Allani, the construction supervisor who has 44 years of experience, mentioned that the construction project was...

In Summary So far, the EAC Partner States have agreed on 308 tariff lines under category B; hence they are remaining with 90 tariff lines that have not been agreed upon. Under Category C, the EAC Partner States have agreed on 75 tariff lines, remaining with 96 tariff lines that are yet to be agreed upon. East Africa is at an advanced stage in implementing trade modalities under the African Continental Free Trade Area (AfCFTA), making it among the first blocs to embrace the continental deal. Led by the East African Business Council (EABC), with support from the German Technical Cooperation (GIZ) in EAC, the region is in the progress of developing the EAC Tariff Offer under AfCFTA for sensitive products and the exclusion list. According to AfCFTA modalities for the submission of tariff offers, the sensitive goods under category B require seven per cent of the tariff lines to be liberalised over a period of 13 years for Least Developed Countries (LDCs), and 10 years for developing countries. For the EAC, the required tariff lines under this category are 398. The excluded goods, which are under category C, cover three per cent of the total tariff lines and must meet the anti-concentration clause; that is, not more than 10 per cent of intra-African imports should be excluded from preferential terms. For the EAC, the required tariff lines are 171. The exclusion list will be reviewed after five years from the commencement of trading. So far, the EAC Partner States...

As part of efforts to build a more resilient regional economy largely depends on several factors. What specifically is under discussion here is the Economic Community of West African States (ECOWAS), and  the strategic mechanism through which the region’s economy can be raised up to standard, taking cognizance of the fast growing population and its associated demand for employment and ensuring food security as well as sustaining certain level of appreciable living standards. Understanding explicitly the enormous untapped resources, both natural and human, is very essential and indivisible interconnected to the West African region’s development. As we know, there are 16 member states constituting the regional bloc, ECOWAS. As mid-July 2023, the World Population Review and the World Atlas, both estimated population 439 million. More than half of the population is under the age of 25. In fact, Africa’s population is exceptionally young compared to other world regions that have been aging at a fast rate, and demographers indicated that the region’s population will experience either steady or rapid growth. For three decades, at least, in our faculty academic studies and research, part of the written research papers at conferences unpack lessons on the relationships between demographic growth and economic development in Africa. That is to say Africa’s demographic profile has played a key role in its development. Specifically for West Africa, governments have to capitalise on its demographic profile through policies, engage them with them in various sectors especially in food production sectors for two main reasons: to ensure...

President Filipe Nyusi on 4 August inaugurated a road in Mueda district, in the northern province of Cabo Delgado, which provides easier access to the border with Tanzania. The 70-kilometre paved road runs from Moma to Negomano. It ends at the Unity Bridge over the Rovuma River, which forms the boundary between Mozambique and Tanzania. The first stone for the new road was laid in October 2018. It was budgeted at two billion meticais (US$31.3 million), and financed by the African Development Bank (ADB). President Nyusi told the ceremony that the road will facilitate trade and the movement of people between the two countries. It would reduce journey time and the cost of maintaining vehicles. "This road will facilitate national, international and cross-border trade, contributing to an increase in incomes, and a growth of the economy", he stated. Paving the Roma-Negomano road, President Nyusi continued, is part of the government's vision of connecting the entire country by road, "from the Rovuma to the Maputo" (the rivers marking Mozambique's northern and southern limits), from the village of Negomano to the resort of Ponta de Ouro (on the frontier with the South African province of Kwazulu-Natal). "The Roma-Negomano road is a palpable asset for implementing the goals of the African Continental Free Trade Area", the President added. He believed the road will stimulate tourism since it is near the eastern end of the Niassa National Reserve, the country's largest conservation area. It could also develop agricultural value chains and promote the industrialisation...

THE East African Business Council (EABC) together with Afreximbank entered a strategic partnership aimed at fostering Intra-African trade and regional economic integration to maximise opportunities between the country members. According to a statement issued by EABC on Wednesday, the agreement will raise awareness among small and medium-sized enterprises (SMEs) especially the youth and women in business about African Continental Free Trade Area (AfCFTA) Protocols and its significance for business growth. Speaking at the sensitisation workshop for the SMEs held yesterday, EABC’s Executive Director and CEO, Mr John Bosco Kalisa said Business within the EAC has been doing well despite the financial challenges attributed to the Covid-19 and the Russia-Ukraine conflict such that the agreement will continue flourishing businesses. “The East African bloc has shown economic resilience despite Covid-19 and the Russia-Ukraine war,” said Mr Kalisa. He stressed that the purpose of such workshops is to focus on trade facilitation procedures and strategies to access markets effectively under the African Continental Free Trade Area (AfCFTA). He further urged the governments of the EAC Partner States to continue improving the business environment for youths to be innovative and drive integration and prosperity in Africa. Under the partnership, the two bodies will promote the implementation of the AfCFTA by engaging in specific activities that strengthen the private sector’s capacity, enhance trade facilitation and unlock new opportunities for businesses across East Africa. On his part, the Assistant Commissioner, Technological Research and Innovation/MSME, Ministry of Trade Industry and Cooperatives Uganda, Mr Okot Okeello Richard said...

If the Covid-19 pandemic demonstrated our interdependence and hyper-connectedness, Russia’s war in Ukraine and its economic consequences have further underscored that no country or region can stand alone. We are all integrated – politically and by trade and investment linkages – into the global economy. Given growing awareness of this, policymakers around the world are rethinking their approach to sustainable development and re-examining the role of multilateral development banks (MDBs). These institutions are of course still relevant. But whether they are fit for purpose in their current form is open to debate. To determine how MDBs can best support developing countries, let us consider the difficulties facing Nigeria, where I served as minister of finance, budget, and national planning from 2019 until this year. During the pandemic, more of our citizens were pushed into poverty, and our economy faltered. The breakdown in global supply chains caused the price of crude oil, our largest export product, to crash, tipping Africa’s largest economy into recession. The economy rebounded after a series of reforms, but Russia’s war in Ukraine now confronts us with higher food, oil, and fertilizer prices. Nigeria is also dealing with fiscal stress, exacerbated by historically low non-oil revenues and adverse global economic conditions. A significant portion of the country’s revenues goes toward servicing its debt, and rising interest rates are pushing up debt-service costs further. Against this backdrop, our biggest challenge is getting the economy back on track and ensuring that our citizens live dignified lives. MDBs, including the...

Earlier this month, United Bank for Africa (UBA) Plc, signed an agreement with the Africa Continental Free Trade Area (AfCFTA) Secretariat to provide financing to Small and Medium scale Enterprises (SMEs) across Africa. This partnership seeks to address a critical challenge hindering SME growth on the continent: the lack of financial access and other obstacles such as non-tariff barriers, inadequate infrastructure, digital technology adoption, limited logistics networks, and regulatory disparities across countries. The AfCFTA is actively addressing these challenges, aiming to unlock the full potential of SMEs and drive their growth, while strengthening Africa’s regional value chain. In December 2021, Kenya imposed a ban on Ugandan poultry products, prompting Uganda to respond in kind by banning Kenya’s agricultural exports. This non-tariff barrier significantly hampered trade between these East African countries until earlier this year when Kenyan President William Ruto reversed the ban on Ugandan agricultural produce. Similarly, West Africa’s trade relations faced challenges following the closure of Nigerian land borders in August 2019 to curb smuggling. Although some borders reopened in December 2020 during the COVID-19 pandemic, the protectionist policy affected Nigeria’s exports and balance of trade. The policies implemented in Kenya and Nigeria had a profound ripple effect on SMEs within and outside these countries, forcing some to shut down or seek alternative markets for their goods. Mozambique’s initially commendable introduction of the Temporary Import Permit (TIP) has now become a significant hindrance for individuals and businesses involved in transit cargo from South Africa to the Port of Maputo. The manual processing of TIPs at the entry point incurs...