The recently inked Economic Partnership Agreement (EPA) granting Kenya duty-free access for over 80 percent of exports into the European Union represents a milestone for the country. However, the unilateral nature of the pact and resulting tensions with regional partners underline the delicate diplomacy required to balance national and collective interests. As the largest East African economy, Kenya’s bigger challenge is converting preferential European access into an engine of growth for communities across the region. Given recent history, scepticism from fellow East African Community (EAC) members over Kenya forfeiting regional solidarity is understandable. The original EU-EAC EPA signed in 2014 was held up over reluctance by Tanzania and Uganda to open their markets, resulting in the current Kenya-specific deal. With other regional commitments like the AfCFTA also in play, this bilateral tactic reinforces impressions that the EAC lacks cohesion in engaging with external parties. There is concurrently a sense that Kenya leveraged its economic muscle to secure a sweetheart arrangement without considering regional impacts, especially around trade diversion. Kenya could, however, employ savvy diplomacy and commercial policies to change the narrative. Tanzania's and Uganda’s wariness stems from fears of losing tax revenues and being swamped by EU goods re-routed through Kenya. But with a 15-year transition period, gradual impact on regional tariffs and exemptions for sensitive sectors, these impacts can be jointly evaluated and managed. Open communication and data exchange with EAC authorities would build confidence in Kenya’s commitment to mitigate harm. More broadly, Kenya can spearhead collective gains by...

Cabinet Secretary for Investment, Trade and Industry Rebecca Miano spoke to Luke Anami on benefit of recently signed Kenya-EU Economic Partnership Agreement. ******* Critics of the Economic Partnership Agreement (EPA) say Kenya should brace itself for cheap imports from Europe, such as powdered milk, which was not liberalised… Kenya should instead brace itself for increased investments targeting the 27 countries; the €14 million ($15.5 million) EU market where, given permanence of the pact, investors can be assured of long-term revenue and start diversifying to increase capacity for their firms. We also expect more investment from the EU targeting sale of goods into Comesa, the East African Community and the African Continental Free Trade Area is a free trade area encompassing most of Africa — established in 2018 by the African Continental Free Trade Agreement (AfCFTA). The dairy sector largely remains a protected industry under the terms of the Epa. Several products derived from milk remain closed for further liberalisation. These include whey powder, powdered milk, yogurt, cheeses, butter and dairy spreads. Kenyans should focus on building competence to turn these into world-class industries with capacity to export. Will the rest of the EAC sign the same EPA as Kenya's? Yes, they will accede to the current document as individuals or as groups. The document actually anticipates that this will happen and is designed to ease such entry. What is the impact of the EPA in terms of intra-EAC trade? The EPA that was negotiated in its most substantial parts by...

In the dynamic world of trade, where aspirations of growth and prosperity are painted on a vibrant canvas, there lurks an ominous spectre - Gender-Based Violence (GBV). This silent adversary creeps into the fabric of trade, gnawing away at the potential of women entrepreneurs and obstructing the path to inclusivity. Recent dialogues, spearheaded by TradeMark Africa, following the culmination of 16 Days of Activism against GBV, echoed a resounding call to action. Within the bustling corridors of trade, GBV emerges not merely as an obstacle but as an insurmountable impediment, inflicting profound physical, emotional, and financial wounds on women. Survivors grapple not just with the trauma of violence but also with societal stigma, limited access to essential services, and a dire absence of safe havens. The promise of empowerment through trade transmutes into a perilous odyssey veiled in fear and uncertainty for these individuals. It’s imperative to acknowledge that women entrepreneurs across East Africa serve as the backbone of trade, constituting up to 70 per cent of informal cross-border traders. However, they grapple with disproportionate challenges - from sexual harassment to physical violence impacting their pursuit of economic opportunities. This issue transcends regional borders, resonating across Africa and reverberating globally. The World Bank reports that women’s involvement in trade remains hindered, with one in three women facing violence, often intersecting with their trade activities. These statistics underscore that GBV not only hampers progress but inflicts profound wounds, rendering trade a perilous journey for survivors. This necessitates a societal shift, reshaping...

Ethiopia has taken the first legal steps on a path that could one day enable the landlocked country to gain access to the sea, its government says. It has signed what is known as a memorandum of understanding (MoU) with the self-declared republic of Somaliland to use one of its ports. Ethiopia's Prime Minister Abiy Ahmed has previously described sea access as an existential issue for his country. His statement in October prompted tensions across the Horn of Africa. There were some fears, quickly dampened by the authorities, that this implied trying to take land from another of Ethiopia's neighbours, Eritrea. The details of Monday's agreement with Somaliland have not been made public but a statement from Mr Abiy's office said it would "pave the way to realise the aspiration of Ethiopia to secure access to the sea". Talks leading up to the MoU have focused on the Somaliland port of Berbera. Mr Abiy's national security adviser, Redwan Hussien, also said on X that the arrangement could also enable Ethiopia to access a "leased military base" on the sea. An MoU is not legally binding, though it is seen as a statement of intent and can lead to a treaty imposing obligations on those parties who have signed. Nevertheless, the development is being portrayed by Addis Ababa as a major diplomatic victory. The prime minister, who signed the MoU with Somaliland's President Muse Bihi Abdi in the Ethiopian capital, wrote on X that "all that can be said is thank God". Speaking...

For decades, Africa has been the world’s most commodity-dependent continent. At the same time, it has become overly reliant on imports from the rest of the world: intracontinental trade accounts for only 15 percent of total African trade, compared to 60 percent in Asia and 70 percent in the EU. Worryingly, imports of manufactured goods into African countries have grown by more than 25 percent over the decade ending in 2022. The continent’s import dependency can be explained primarily by the dearth of African industrial entrepreneurs. And Africa’s projected population growth and burgeoning middle class suggests that this dependency will only grow in the medium term, with significant implications for macroeconomic stability, unless local actors begin driving innovation and creating new products and services to meet the needs and desires of domestic consumers. The problem, however, is not sustained import growth per se, especially when the rise of global value chains and increasing fragmentation of production have reduced the power of exports as a driver of short-term demand. Instead, the main issue is that African countries are participating in global value chains largely through backward activities, systematically exporting natural resources and primary commodities and importing manufactured goods, an imbalance that drains wealth away from the continent. For African fossil fuel-producing countries, the carbon-intensive “round-tripping” model of exporting crude oil and importing refined petroleum has been costly, resulting in immense deadweight losses and foreign exchange leakages. In Nigeria, for example, the opening of a much-anticipated oil refinery could save the country...

TradeMark Africa (TMA) has signed a technical and financial support agreement with the National Horticulture Taskforce (NHT). The two partners committed to strengthen and sustain investments in Kenya's fresh produce exports. The agreement was signed as part of the EU-funded Business Environment and Export Enhancement Programme (BEEEP), which is among other areas supporting the transition of 50% of fresh produce exports from Kenya from air to sea-freight by the year 2030. The agreement was signed at an event which brought together stakeholders from the logistics sector to assess the state of agro logistics in Kenya and review development of Kenya’s Masterplan on the modal shift of fresh produce exports from air to sea freight. Kenya’s transitioning from airfreight to seafreight is not only an environmental choice but a vital economic advantage to secure its fresh produce exports, as supermarkets in the UK and Europe seek to diminish their climate footprint. Airfreighting from Kenya to Europe generates substantially higher greenhouse gases compared to sea freight (1 kilogramme of airfreighted green beans emits as much as 177 kilogrammes of sea freighted green beans). Part of the targeted initiatives by the NHT include building the capacity of producers of horticultural products to utilise sustainable processes including the use of renewable energy in farms, implementing various water conservation methods and transitioning exports of fresh produce from air freight to sea freight. Henriette Geiger, Ambassador of the European Union to Kenya said, “We are fully in support of the NHT as we transition the avocado, mango and vegetable value chains towards more sustainable production processes from farm to fork. This also aligns with our...

Malawi has commissioned a smart gate at Mwami Border Post in Mchinji District which will facilitate efficient cross-border trade between Malawi, Zambia and other countries in the Common Market for Eastern and Southern Africa (Comesa) region. In her remarks during the commissioning on Monday, Ministry of Trade and Industry Principal Secretary Christina Zakeyu said the smart gate will help speed up processes in clearing goods and services. She said: “Before the smart gate, we were using manual clearing system and this would take time, but now it will be more like self-service because the machine will be doing it all and just sending data. “Traders will be taking less time at the border; hence, they will be meeting customer targets.” Zakeyu also appreciated laboratory equipment for the Ministry of Agriculture and the Malawi Bureau of Standards which was commissioned alongside the smart gate, saying it will play a vital role in certifying the quality of goods entering the country. On her part, Malawi Revenue Authority executive director of corporate services Agnes Katsonga Phiri said the smart gate will also contribute significantly to revenue collection on vehicles that over-stay. She said: “The smart gate will be producing reports indicating dates and times trucks enter and exit the country which will help to eliminate allegations of delays in clearance of goods.” The project has been implemented by Comesa with funding from the European Union (EU) to facilitate smooth flow of goods, persons and services across the region. Comesa European Development Fund programme...

What you need to know: The NTBs pose a major problem for traders and producers, as they can reduce profits and limit market access. NTBs include issues that can hinder trading effectively such as discriminatory requirements for special licenses and permits, excessive paperwork, complicated customs procedures, and bureaucratic delays at borders The East African Community Secretariat has said it still has unresolved complaints of the Non-Tariff Barriers standing at 43.75 percent by June 2023, which still affects the follow-up trade in the regional bloc. The NTBs pose a major problem for traders and producers, as they can reduce profits and limit market access. NTBs include issues that can hinder trading effectively such as discriminatory requirements for special licenses and permits, excessive paperwork, complicated customs procedures, and bureaucratic delays at borders. “A significant number of NTB complaints were addressed (56.25%) and resolved within the given timeframe. However, a notable portion of complaints, specifically (43.75%) were still in progress by the end of June 2023," EAC said in a press statement it issued over the weekend. The EAC secretariat said a recent EAC Regional Meeting Committee (RMC) report (2023) estimated the direct costs of NTBs at $16.7 million and total trade impact at $94.9 million decreasing trade by an average of 58 percent. However, on the other hand in the press statement, EAC said since 2017, EAC has resolved 89.5% of the reported NTBs (EAC Time Bound Programme report, 2023). “In addition, there has been a relatively steady decrease in reported NTBs....

Africa is making strides in its visa openness policies boding well for cross border travel, ease of movement and trade in 2024 and beyond. The Africa Visa Openness Index 2023, published on Tuesday, reveals much progress since the seventh edition of the report was published in December 2022, reports African Development Bank. The visa openness achieved its highest score ever in 2023, surpassing levels last seen prior to the Covid-19 pandemic. The Africa Visa Openness Index (AVOI) measures the extent to which African countries are open to visitors from other African countries. Over the period 2020-21, massive border closures to curb the spread of COVID-19, affected land and air travel, with additional restrictions due to screening measures, bans on gatherings, quarantines and such, causing stagnation in 2022. In 2023, data from the report shows that 50 countries improved or maintained their 2022 score, with only 4 countries scoring lower. Since the first report was published in 2016, 36 countries have improved their score on the index. Forty-two (42) countries extend visa-free entry to citizens from at least 5 other African countries, while 33 countries do so to citizens of at least 10 countries. Four countries – up from three last year, –  have eliminated all visa requirements for African travelers. They are Rwanda, Benin, The Gambia, and Seychelles. All key overall matrices have shown improvements in 2023. In 28% of all intra-Africa travel scenarios, African citizens do not require a visa (an improvement from 27% in 2022 and 20% in...

NAIROBI, Kenya, Dec 11 – Over 300 MSMEs from all 47 counties are representing Kenya during the ongoing 23rd Edition of the East African Community (EAC) Micro, Small, and Medium Enterprises (MSMEs) Trade Fair, formerly known as the Jua Kali/Nguvu Kazi Exhibition, at Cercle Hyppique grounds in Bujumbura, Burundi. The theme for this year is ‘Connecting East Africa MSMEs to Enhance Intra-EAC Trade’ and has drawn over 1,500 MSMEs in trade, manufacturing, agribusiness, and services sectors from the seven EAC partner states. The EAC Trade Fair was officially opened by the Vice President of Burundi, Prosper Bazombanza, on December 8, 2023. In his remarks, the Vice President noted that the trade fair has been a vital platform for enhancing and revamping the socioeconomic integration of the people of East Africa. It also provides a platform and opportunities for MSMEs to showcase their products, facilitate business-to-business engagements, and share information on trade-related matters. The opening ceremony also doubled up as the launch of the EAC Non-Tariff Barriers (NTBs) App that was developed by the EAC Secretariat and Trade Mark East Africa with the aim of easing the reporting, monitoring, and elimination of NTBs in the EAC community. The app will also provide different access levels for traders and NTB focal points in each partner state. Kenya celebrated its country day with a showcase of its unique products and innovations, patriotic songs, fashion showcasing creative designs, apparel, artifacts, and dances from all the cultures represented. “This trade fair will not only avail...