Issuance of passports for free to East African Community (EAC) citizens is one of the practices that can boost air travel in the region, a study published by A regional private sector lobby suggests. Airlines in the region can also consolidate, going the European or American way, which the study by the East African Business Council (EABC) notes, would stimulate passenger and cargo movement by air. The study, which analyses aviation laws, reports and academic publications, pokes holes into the current industry practices against the cost of operations and the push for open skies initiative. https://www.youtube.com/watch?v=P8slRBiwlL8 It is titled Study on Air Space Liberalisation in the East African Community: Focus on Cost Drivers and Regulations. The study, commissioned by EABC in partnership with Trade Mark East Africa and funded by Kenya’s Ministry of Foreign Affairs and the Dutch government, focused on six areas - operational costs, existing air transport regulations in EAC, effects of domesticated EAC space, benefits of adoption of the EAC Single Space Agreement and the impact of aviation costs on cargo volumes and evaluation of best practices in other regions. One of the best practices suggested in the study published in April is the consolidation of the airline business in the region through mergers and acquisitions. It argues that airline consolidation, mergers and acquisitions in the United States and Europe resulted from the need to stimulate growth within the industry. “It is a practice that can be adopted,” reads the study. It documents that from 2000 to 2010, the...

  The East African Community (EAC) has initiated a campaign aimed at raising awareness about the trade opportunities in agricultural exports generated by the EU-EAC Market Access Upgrade Programme (MARKUP). The campaign targets small and medium-sized businesses (SMBs) involved in the agricultural supply chain, as well as cooperatives, farmers, and government agencies within the EAC. It aims to provide them with valuable information and resources concerning agri-export trade. During the campaign launch, Ms. Flavia Busingye, Acting Director of Customs at the EAC Secretariat, expressed that MARKUP has opened numerous trade prospects for agri-SMBs in the region. She emphasized that since its inception in 2018, MARKUP has facilitated the growth of agri-exports in five EAC Partner States, namely Burundi, Kenya, Rwanda, Uganda, and Tanzania. MARKUP, a collaborative effort between the EAC, the EU, the German government, and other development partners, has developed several resources to support the expansion of the agricultural export industry. Notable resources include the EAC Quality Portal, the Financing Gateway, and the Burundi Trade Information Portal. The program has also conducted market studies, published practical guides, handbooks, and policy briefs. Ms. Busingye added that MARKUP has played a significant role in strengthening the region’s quality infrastructure, particularly in harmonizing standards and frameworks for intra-regional trade in food products. She encouraged active participation in the campaign through various communication channels and platforms. Ms. Busingye further acknowledged that small and medium-sized enterprises (SMEs) in the agricultural sector encounter various challenges when conducting trade within the East African Community (EAC). Among...

President Paul Kagame has requested African leaders to move with a sense of urgency in the implementation of the African Continental Free Trade Area (AfCFTA) to boost economic value on the continent. He was speaking during a televised conversation dubbed ‘Ask the President’ on the national broadcaster, on Tuesday, July 4, where he got to answer some of the national key concerns across different sectors. With the operationalization to establish a unified market of 1.3 billion people and a GDP of around $3.4 trillion in 2021, the AfCFTA is poised to become the world’s largest free trade area with 55 member states. However, some of the important protocols of rules of origin have not yet taken shape while about 47 countries have ratified their instruments of AfCFTA agreement. Kagame said that having AfCFTA that works for everybody is still hindered by some legacy problems and misinterpretation of what the agreement means whereby countries stick to protecting the sovereignty and miss out on opportunities presented. “Your sovereignty is just a name if it does not entail freedom of people to work within and across the countries,” he emphasized. Political will is always going to be important because it is what will allow freedom of movement of people and goods, he added. “If we can have people cross borders with what they produce and the others do the same, they benefit more with having such a big market. AfCFTA is a huge asset and not a liability.” In his view, having the...

Initiated by UNECA, the Trans-African Highway project aims to integrate the continent through an expansive road system. Despite political obstacles, renewed momentum from the African Continental Free Trade Agreement (AfCFTA) is rejuvenating this grand vision. With gradual removal of barriers to internal trade, Africa stands on the brink of a historic opportunity to enhance trade, tourism, and growth. The Trans-African Highway network, a bold blueprint conceived to foster economic integration on the African continent, has been a captivating vision since its inception in 1971. Initiated by the United Nations Economic Commission for Africa (UNECA), the project aims to integrate the continent through an expansive road network. Despite political obstacles and inconsistent collaboration between countries, renewed momentum from the African Continental Free Trade Agreement (AfCFTA) is rejuvenating this grand vision. In recent years, the UNECA, the African Union (AU), and the African Development Bank (AfDB) have worked jointly to promote this ambition that could set Africa on an unprecedented economic trajectory. Understanding the Trans-African Highway Network The Trans-African Highway Network envisioned as a web of nine highways lacing the continent, would be nothing short of an economic revolution if and when built. These arteries, including the Cairo-Cape Town (TAH 4, 10,228 km), Dakar–Lagos (TAH 7, 4,560 km), and Lagos-Mombasa (TAH 8, 6,259 km), would transform transportation, reduce road transport costs, and ignite a surge of commercial and tourism activity. AfCFTA and the Promise of Enhanced Trade AfCFTA heralds a pivotal shift in intra-African trade, leveling the playing field for producers and...

Ugandan grain dealers under their umbrella body, the Nation Millers Association have suspended  food export to South Sudan over the trade crisis at the Nimule border, where more than 70 maize-laden trucks have been stranded for nearly two months after the Ugandan northern neighbor raised quality concerns. The South Sudan National Bureau of Standards (SSNBS) impounded a number of Ugandan trucks loaded with maize grains, maize flour, and wheat on allegations of failing to pass the test for contamination with aflatoxin. A few weeks ago,South Sudan officials at the Nimule border point confiscated  tons of food items from Uganda that were deemed unsuitable for human consumption with claims that the samples had tested positive for aflatoxin. “In those trucks that we have mentioned that have Maize, Sorghum, or whatever grains that have been tested and failed have to be destroyed,” she stressed, adding that “We detained the trucks for a very good reason because of the level of aflatoxin, especially B1 which is very dangerous and it causes cancer if it accumulates in your body”. However, addressing journalists in Kampala, the Ugandan traders expressed concern over the decision by South Sudan to destroy maize flour estimated at about shs10 billion. They argue that the tests done by South Sudan were not transparent. “The number of samples (27) claimed to have been taken isn’t representative enough to generalize results on the entire consignments of over 74 trucks under detention.UNBS staff were denied access to take samples by South Sudan authorities, therefore...

Trade is an essential driver of economic transformation, growth, and prosperity. At a time of global uncertainty and policy fluidity, this comprehensive volume demystifies African trade and trade policy to provide a deeper understanding of how trade impacts the lives of all Africans and the continent’s development aspirations. Featuring a wealth of data-driven evaluations of trade negotiations and policy choices, How Africa Trades is an invaluable open access resource for making sense of the continent’s major trade challenges, including commodity dependence, competitiveness, and how African countries engage with often unconducive international trade rules that distort global markets. In-depth analysis focuses on intra-African trade initiatives, including the African Continental Free Trade Area (AfCFTA), trade between African countries and their major trading partners, and how the short-term shocks of Covid-19 restrictions brought about longer-term changes in informal and formal trade patterns, and sped-up shifts in digital trade. Edited by Professor David Luke, and featuring vital contributions on trade economics, international law and sustainable development, How Africa Trades draws on the research expertise of LSE’s Firoz Lalji Institute for Africa. This volume provides information, expertise and tools for policymakers, stakeholders and scholars with an interest in understanding the dynamics of trade and in making effective policy decisions that centre development and inclusivity for Africa and its people. Early praise for How Africa Trades "This is an authoritative book on what needs to be done in Africa and its major trading partners to make the undersized and underperforming Africa’s trade become an engine of development, poverty reduction, industrialization and...

Digitization has shaped the way millions across Africa shop, bank, and communicate. It has also changed the prospects of the continent’s trade landscape and has the potential to unlock new pathways for economic growth. The next step in Africa’s digital future will be regional, fulfilling the vision outlined in the African Union’s Digital Transformation Strategy for Africa through strong frameworks and policies offered by the African Continental Free Trade Area (AfCFTA) that can help the continent get there. How the digital economy and regional integration through the AfCFTA can transform African trade, lift economic growth, and support livelihoods across the continent dominated discussion at the latest Kenya International Investment Conference (KIICO.) At the invitation of the Cabinet Secretary for Trade of Kenya Moses Kuria and the Kenya Investment Authority (KenInvest)’s Managing Director June Chepkemei, the U.S. Chamber’s U.S.-Africa Business Center (USAfBC) was the strategic partner of this year’s conference, "Unlocking Africa's Gateway." The conference took place May 29 – 31 in Nairobi, Kenya, on the periphery of negotiations held by the AfCFTA Council of Ministers, and marked the U.S. Chamber’s second high-level delegation to Kenya this year, following this March’s AmCham Business Summit, which convened 1,200 public and private sector leaders to increase U.S.-East Africa commercial ties. USAfBC Vice President Kendra Gaither delivers remarks at the welcome dinner for the Kenya International Investment Conference. The USAfBC’s role highlighted its longstanding collaboration with Kenya’s public and private sectors and continental thought leaders, all helping to shape the conference’s AfCFTA Digital Policy Dialogue....

The East African Community is prioritising infrastructure development in the next fiscal year, signalling a break from a three-year lull blamed on the Covid-19 pandemic. The EAC on Tuesday tabled before the East African Legislative Assembly (Eala) budget estimates totalling $103,842,880 for 2023/2024, out of which 43 percent ($44 million), funded by development partners, will be used on infrastructure projects to spur intra-EAC trade, which increased by 13.4 percent to $74.03 billion in 2022 from $65.268 billion in 2021. The bloc has this year secured funding for road projects connecting Kenya and Tanzania though Lunga Lunga; Tanzania to Burundi through Kasulu; and Kenya to Uganda through the Busia border. It has also prioritised railway, air and water/port transport. “The secretariat will continue implementing successor multinational road projects linking partner states and the Phase II OSBP (One Stop Border Post) programme including the design, construction and operationalisation of prioritised OSBPs within the region to enhance regional integration and trade facilitation,” said council chair, Burundi’s minister for EAC affairs Ezechiel Nibigira. The Kenya-Tanzania road sections are in different stages of completion after the two governments secured €375 million ($410 million) from the African Development Bank (AfDB) and the European Union (EU). But some remaining sections still need funding to connect the entire stretch of the coastal corridor. “Construction of the multinational Tanzania/Burundi road: Kabingo-Kasulu-Manyovu (260 kilometres) in Tanzania and Gitaza-Rumonge (45km) in Burundi is ongoing following Burundi and Tanzania securing financing amounting to $322.35 million in the form of grants and loans from...

In Summary New market offers a safe business environment for cross-border traders in Busia The outbreak of the Covid-19 pandemic in 2020 took a huge toll on women traders A new market has been opened in Busia to facilitate business between traders in Kenya and Uganda. The Sh40 million market comes as a relief to women traders who were hit hard by the Covid-19 pandemic. Busia Governor Paul Otuoma on Tuesday said the investment will go a long way in ensuring a safe business environment for cross-border traders. “What we want are innovative solutions to economic challenges facing our people,” he said. The market is an initiative of the county government of Busia, the Ministry of East African Community Affairs, TradeMark Africa and development partners. “We are grateful for the support because all this is geared towards providing safe spaces for our people especially in trade,” the county chief said. The construction of the market started in July 2021 as part of the Safe Trade Emergency Facility. TradeMark Africa implemented it together with the Busia government with funding from Canada, Ireland, the European Union and Denmark. The outbreak of the Covid-19 pandemic in 2020 took a huge toll on local and international trade. Informal cross-border traders, particularly women, were hard hit. The effects of the pandemic led to a drastic reduction in business operations on the border. Traders recorded up to 90 per cent income losses that resulted from stringent government-enforced restrictions of social distancing to combat the spread of...

Accra, 18 June 2023: – The African Export-Import Bank (Afreximbank) today in Accra launched its wholly owned insurance management services subsidiary, AFREXInsure, with a commitment to provide a single-entry point for all specialty insurance needs to assist in optimally managing related risks for the trade and commerce sector in Africa. Established in 2021, AFREXInsure is set up to offer specialty insurance solutions for trade and trade-related investments across Africa with access to quality, best-in-breed specialty insurance that are tailor-made for Africa. With credible knowledge of Africa, AFREXInsure will leverage on its risk expertise by using its continent-wide presence and deep understanding of the African market to provide solutions around cargo handling, construction, operations and energy – sectors critical for the growth and establishment of trade and investment intercontinentally. Speaking during the launch, which took place on the sidelines of Afreximbank’s 30th Anniversary Annual Meetings, Kanayo Awani, Executive Vice President, Intra-African Trade Bank, speaking on behalf of Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, said that AFREXInsure was established to facilitate the insurance of specialty risks in order to support businesses in Afreximbank member countries to mitigate the problem of Africa having to rely on external partners to architect the continent’s economic resilience and development. “By reducing the risk of transactions or investments, insurance can help drive forward business strategy for those engaged in intra-African trade and enable global partners to further their commercial interests and ambitions in Africa,” said Ms. Awani. Insurance penetration is relatively low...