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...

President Paul Kagame on Thursday, August 3, issued a rallying call to fellow African leaders saying that governments must step up and enact enabling investment policies, to be able to attract major impactful investments such as the just-inaugurated Anjia Prefabricated Construction Cement Factory in Muhanga district, Southern Province. “That’s what we have been doing here in Rwanda for a number of years,” he pointed out. The Head of State made the call shortly after launching and also touring the $100 million facility which targets an annual output of a million metric tonnes output in order to address the supply deficit in the market. The development is part of the investments made by the West International Holding Ltd, a subsidiary of China West Cement Group. Already the company’s initial injection of over $50 million has seen the setup of a high-performance cement grinding station system with two kinds of Cement; the CEM II/A-M 42.5 Ordinary Portland Cement as well as the CEM II/B-M 32.5 ordinary Portland cement. Following a guided tour, President Kagame commended West China Cement Group’s commitment to the infrastructure development of “not just Rwanda but our continent.” “Over the years, West China Cement, and West International Holding, the company have become key players in Africa’s efforts to reach self-sufficiency in cement production,” he added. “Earlier I had the opportunity to tour the plant, you have set the bar high in terms of quality and we appreciate that.” Prospects look promising The African cement, concrete and construction business is...

Early this year, President William Ruto hinted at scrapping visa restrictions for African travellers within the continent. In his speech during the opening of the Private Sector Dialogue on the African Continental Free Trade Area (AfCFTA), the President stated that Africa must work towards integrating more, eliminating barriers to international trade and pushing for the establishment of a more secure, reliable and efficient cross-border payments system that will deepen financial inclusion and foster growth in the continent. “This is home. We support wholeheartedly the AfCFTA and we must remove any impediments to the movement of people around our continent. Africa presents an attractive and expansive market for investors seeking new business opportunities,” President Ruto said. In his commitment to ensure that this happens, the president has ensured that more countries allow Kenyans to travel without visa restrictions. Apart from South Africa, Eritrea, Senegal, Comoros and Djibouti, are now on the list. Consequently, according to the latest Henley Passport Index Report, the Kenyan passport has improved six places in the global mobility rank to position 67 from 73 and now occupies the seventh position as one of Africa’s most powerful passports. Destination of choice When it comes to tourism, there has been an impact to business operators who offer packages in regional travels. For instance, following the removal of the visa restrictions to South Africa, it is said that close to 10,000 Kenyans visited South Africa in the first quarter of the year. Data released by South Africa Tourism indicate that...

Food prices remain relatively high in Africa from the economic turbulence occasioned by the Russia-Ukraine war and the Covid-19 pandemic, but in Kenya, they are alarmingly high. Data from the UN Food and Agriculture Organisation (Fao) shows that globally food prices have substantially decreased since the peak in March 2022, and continue on a downward trajectory. The Fao Global Food Price Index, which measures the change in prices of a basket of five food items – including meat, dairy, cereals, oil and sugar – has dropped by 37.4 points since March 2022. In Kenya, however, the inflation rate was 7.9 percent in June, driven mostly by a rise in prices foods and non-alcoholic beverages, which have increased by 10.3 percent since last year, according to latest data by the Kenya National Bureau of Statistics (KNBS). Other countries in the region, although still grappling with inflation, are recording easing food prices, albeit at a pace slower than the global food prices. Tanzania, for instance, reported an inflation rate of 3.6 percent in June, a slowdown from the 4.0 percent in May. Food prices increased by 7.8 percent in the past year, but are on a downward trajectory, having fallen by 0.3 percent between May and June, figures from the National Bureau of Statistics show. Uganda trends In Uganda, general consumer prices, including food, have relatively been stable for the past six months, based on data from the Uganda Bureau of Statistics. So, why are Kenyan consumers still paying so much for food?...

The South Sudan Public Procurement and Disposal of Assets Authority (PPDAA) says its board members are currently visiting their counterparts in the East African Community (EAC) to benchmark on their procurement systems. Speaking during a visit to the PPDA Offices in Kampala yesterday, Mr Deng Akuei Kak, the executive director PPDA, said they seek to understand the procurement systems used by their peers before they can join the East African Public Procurement system. “We have come here to meet our counterparts. We came as a board because we are joining the East African Public Procurement System. Uganda has offered us the experience they have so that the delegation gets to know the procurement system in East Africa based on South African law,” he said. Mr Deng explained that when the East African Community member states made the laws, South Sudan was not part of the process but now they have come here to complete the process, study the documents and see how the systems run before they can establish their own. According to Mr Benson Turamye,  the executive director of Public Procurement and Disposal of Public Assets Authority Uganda, they shared with their South Sudan counterparts the procurement reforms that they have implemented since 2003. “South Sudan got independence in 2011 and they established the PPDA Act in 2018.They do not have regulations and structures but they have established an office equivalent to PPDA Uganda; they have 26 staff running the body,” he said. Mr Turamye said it is important...

The stewardship of the Tripartite Free Trade Area (TFTA) has changed hands with COMESA handing over the chair of the Tripartite Task Force (TTF) to the Southern African Development Community (SADC). The handing over was conducted on 14 July 2023 during the 36th TTF meeting on the sidelines of the 5th Africa Union Mid-Year Coordination Review Meeting in Nairobi, Kenya. COMESA Secretary General Chileshe Kapwepwe handed over to her SADC counterpart Amb. Alias Mpedi Magosi. The TTF is responsible for the coordination of the TFTA programmes, and its leadership rotates among the chief executives of the three regional economic blocs.  COMESA took over the chair from the East African Community in July 2022. Speaking at the function, Ms Kapwepwe underscored the importance of the Tripartite FTA in addressing economic development challenges and fostering Africa’s continental economic integration. She highlighted the achievements realized during COMESA’s tenure under the three pillars of the tripartite, namely market integration, infrastructure development and industrial development. Specifically, under market integration pillar, she said 11 Member States have so far ratified the Tripartite FTA and that only three were required to reach the requisite 14 ratifications.  Substantial progress has however been realized under negotiation of Tripartite Rules of Origin and developing of systems to address non-tariff barriers to trade. She emphasized the need to strengthen coordination and collaboration between the TFTA and the AfCFTA processes to avoid duplication of efforts, wastage of resources and possible conflicts. She thanked SADC and EAC Secretariats for their steadfast support in...

In Summary KEBS ensures that products conform to quality and safety requirements, enabling Kenyan businesses to compete effectively in the African market. The stage is set, and the time is now. As Africa charts a path toward economic growth and development through the African Continental Free Trade Area (AfCFTA), it is essential that we acknowledge the potential impact on the lives of diverse industry players. The success of this initiative will not only benefit governments and businesses but also have a profound impact on the daily lives of ordinary Africans, touching the very fabric of their existence. Indeed, the transformative power of the AfCFTA cannot be understated; as an African proverb wisely reminds us, "When the music changes, so does the dance." This shift in rhythm ushers in a new era filled with a multitude of opportunities, challenges, and aspirations waiting to be seized and fulfilled, thus creating a harmonious symphony of progress across the continent. To ensure the realisation of the AfCFTA’ s potential, key stakeholders such as the Kenya Bureau of Standards (KEBS) and the African Organisation for Standardisation (ARSO) have been actively working towards increasing intra-African trade and facilitating the implementation of the AfCFTA. KEBS, as a leading standardisation body in the region, plays a vital role in enhancing intra-African trade. The organisation has been at the forefront of efforts to develop and implement harmonised standards that promote trade and economic integration within the continent. It ensures that products conform to quality and safety requirements, enabling Kenyan...

The Government of Zambia, through the Ministry of Commerce, Trade and Industry (MCTI) has signed an agreement with the United Nations Conference on Trade and Development (UNCTAD) to modernize customs procedures using the Automated System for Customs Data (ASYCUDA). The ASYCUDA is an integrated customs management system for international trade and transport operations in a modern automated environment. It has advanced software applications which are designed and developed for customs administrations and the trade community to comply with international standards when fulfilling import, export and transit related procedures. The Zambia Revenue Authority (ZRA) is a key beneficiary of the system which is being provided under the MCTI Zambia Border Posts Upgrading (ZBPUP) Project, funded under the 11th European Development Fund, COMESA Trade Facilitation Programme. The ASYCUDA support to ZRA is valued at €548,000 and will involve strengthening of existing automated customs processes through harmonisation of clearance processes in all customs offices and ensuring that there is adherence to the agreed customs and trade facilitation principles and procedures. It will involve automation of the remaining processes on the Automated System for Customs Data world system and deployment of new ASYCUDA functionalities. These improvements will be made available and configured with the use of the latest ASYCUDA World version of the software, already deployed at ZRA, so as to maximize the benefits for the customs authority. Once fully operationalised, it is anticipated that, this support will ultimately speed up customs clearance processes, improve revenue control and reduce legacy related administrative challenges faced...

Realising the benefits and opportunities of the African Continental Free Trade Agreement (AfCFTA) requires proactive collaboration between all levels of government and businesses, says Director of Africa Bilateral Economic Trade at the Department of Trade, Industry and Competition, Calvin Phume. Phume was addressing the AfCFTA awareness workshop, which took place in Bloemfontein, in the Free State. The workshop was part of a nationwide series aimed at equipping export-ready South African Small, Micro and Medium Enterprises (SMMEs), private sector, women and youth-owned enterprises with knowledge on the benefits of trading under the AfCFTA, The AfCFTA is a flagship project of the African Union’s (AU) Agenda 2063 and aims to build an integrated market anchored on development integration. It seeks to enhance intra-African trade through progressive elimination of tariffs, introduction of rules to manage non-tariff barriers among other things, opening up vast markets of over 1.3 billion people and a combined GDP of over $3.4 trillion. Phume said beyond the policy transformation and reforms, the AfCFTA seeks to ensure inclusivity of women and youth, including youth in the rural areas, development of SMMEs and overall industrialisation of the Continent. “Africa has the youngest population in the world, with 70% of the population under the age of 30. Women make significant contributions to cross-border trade in many African countries. “However, women and young people face challenges such as underemployment, lack of opportunities and other structural and financial challenges that hinder their ability to trade. “The AU Assembly took a cautious decision to also...