The high cost of air travel in Africa has been described as a barrier to tourism. Travellers within the continent not only pay higher ticket prices but also more tax to board a commercial aircraft. This emerged at the just-ended World Travel and Tourism Council (WTTC) global summit in Kigali, Rwanda. Speakers at the high-profile event—heads of state, business executives, and travel experts—said intra-Africa air travel remains prohibitive. “It is often cheaper to fly to another continent than to another African country,” they said as the meeting drew to a close. They cited an air ticket between Berlin in Germany and Istanbul costing a mere $150 for a direct flight taking less than three hours. Flying a similar distance between Kinshasa and Lagos in Nigeria would cost between $500 and $850, with the trip taking up to 20 hours. On the other hand, the cost of a flight from Entebbe in Uganda to the Kenyan port of Mombasa (916km) will cost up to $200. This is roughly eight times the cost of flying the same distance in Europe. There are also reports that a flight from Kampala to Arusha costs a staggering $480. Yet one can fly from Washington to Dallas (both in the vast US) using only $180, with a longer distance compared to Entebbe-Arusha. “This makes doing business within Africa incredibly difficult and expensive,” said Kamil al Awadhi,the regional vice president for Africa and the Middle East of the International Air Traffic Association (Iata). An assistant professor of...

The Abidjan-Lagos highway corridor, a crucial infrastructure project in West Africa, has secured a substantial $15.5 billion in investment interest, as revealed by Dr. Akinwumi Adesina, President of the African Development Bank, at the 2023 Africa Investment Forum (AIF) Market Days in Marrakech, Morocco. This corridor is anticipated to boost regional integration, sustainable economic development, and augment trade opportunities across West Africa. Unleashing Africa’s Potential Adesina emphasized the potential of African economies, citing a real GDP growth of 3.8% in 2022, surpassing the global average. He also highlighted the promising prospects for African economies, with five of the six pre-pandemic top-performing African countries projected to be among the world’s 10 fastest-growing economies for 2023–2024. Moreover, Adesina underscored the significance of the African Continental Free Trade Area (AfCFTA), which represents a consolidated market size of $3.4 trillion, and he encouraged investors to recognize Africa’s potential. Africa’s Role in the Electric Vehicle Market Adesina discussed the burgeoning opportunity in the electric vehicle market, emphasizing Africa’s pivotal role as a significant source of green metals essential for electric vehicle development. He pointed out that Africa’s resource wealth is key to the future of electric vehicles, with the electric vehicle value chain projected to increase from $7 trillion to $57 trillion by 2050. Agricultural Sector and SAPZs Beyond infrastructure and economic developments, Adesina addressed the agricultural sector, stressing the importance of Special Agro-Industrial Processing Zones (SAPZs) in Africa. He highlighted the immense potential of Africa’s food and agriculture market, projected to reach $1 trillion...

Kenya has accepted to host the headquarters of the Pan-African Payment and Settlement System (PAPSS), which is expected to enable traders on the continent to settle deals in their respective national currencies. According to President William Ruto, during the African Continental Free Trade Area Conference at Strathmore University on November 7th 2023, Kenya as a leader in the technology space in Africa was asked to host the headquarters of PAPSS, which he gladly accepted. “We have been asked to host the headquarters of the Pan-African Payment and Settlement System in Kenya. Because we are leaders in the technology space and because we are also promoters of the ACFTA and any institution that supports the integration of our continent, we have gladly accepted to host the headquarters of PAPSS,” he said. PAPSS, which is a brainchild of African Export-Import Bank (Afreximbank), is a centralized financial market infrastructure that allows a trader in one country to instruct his or her financial institution to pay another trader in a different country using their local currency. The platform is projected to save the continent billions that are incurred when traders have to convert and trade in dollars. With 11 African central banks having already been incorporated into PAPSS so far, and many more expected to join up, the system will be effective in the continent by when the platform will be adopted by African Union’s Assembly of Heads of State and Government, come 2024. The dollar, the global reserve currency, still dominates global trade....

TradeMark Africa (TMA) recently welcomed a high-level delegation of Tunisian Customs officials in Nairobi. The meeting focused on trade facilitation initiatives, eyeing potential future collaborations to connect the continent’s northern and southern regions. Alongside Tunisian Ministry for Trade and Export Development and a team from GIZ’s Support to Trade Agreements with Africa project, the delegation learned about TMA’s impactful infrastructure projects over the past 13 years, which have significantly reduced both the time and cost associated with trade. The talks also explored enhancing continental connectivity, using the corridor approaches for trade facilitation, and the principles of integrated and coordinated border management. TMA CEO Mr. David Beer briefed the delegation and highlighted TMA’s planned works in supporting trade that is not only inclusive but also green, particularly in its third strategic period 2023 to 2030. Benedict Musengele, TMA’s Director of Trade and Customs, emphasized the strategic advantage of linking North and South African trade corridors, noting Tunisia’s key role as a gateway to the European market. He highlighted that 90% of the countries TMA supports in the East African Community and Southern Africa are members of the Common Market for Eastern and Southern Africa (COMESA), to which Tunisia belongs. Additionally, the Tunisian delegation also met with various government agencies, including the Kenya Revenue Authority, a crucial partner in TMA’s initiatives like the integrated Customs Management System (iCMS) and the regional electronic cargo tracking system (RECTS) which are crucial to the integrated corridor management approach. Stefan Moses, an international trade expert and...

Ghana and Togo have pledged to address challenges affecting the smooth operation of the Noepe-Akanu Joint Border Post within six months.  This is to ensure efficient operations at the post ahead of its management by ECOWAS next year. Per the bilateral agreement, Ghana is to provide water and information and communication technology (ICT), while Togo will provide electricity for the facility. They have further agreed on a clear demarcation of roles of various focal persons of the two countries. This was the outcome of an inter-ministerial meeting on the operationalisation of the Noepe-Akanu joint border post between the two countries last Tuesday. Delegation The Ghanaian delegation was led by the Minister of Roads and Highways, Kwasi Amoako-Attah, while the Togolese side was led by the Minister of Public Works, Zourehatou Kassau-Traoe. The event was chaired by the Commissioner of Infrastructure, Energy and Digitalisation of ECOWAS, Sediko Douka. Also present were officials of customs and immigration of the two countries. Other members of the Ghanaian delegation included Rita Ohene Sarfoh (Director, Policy, Planning and Budgetting - Ghana’s Focal Person for the Joint Border Post); Ambassador Hannah Nyarko (Coordinating Director, Ministry of Foreign Affairs and Regional Integration), and the Director of Ghana Embassy, Lome, Adisa Yakubu. The rest were Bernice Hudegbeke (Director for Africa Bilateral Bureau, Ministry of Foreign Affairs and Regional Integration); Dr Fareed Kwesi Arthur (National Coordinator for AfCFTA Coordination Office); Alhaji Seidu Iddrisu Iddisah (Commissioner, GRA-Customs Division); Joseph Allan (GRA-Customs, Aflao Sector Commander); Peter Ofori Antobre (Head of Transit Unit,...

What you need to know: Horticultural Crops Directorate has suspended the export of Hass, Pinkerton, Fuerte and Jumbo avocado varieties by sea. The directorate says the decision follows a survey it undertook to establish the maturity indices of avocados in major production zones. Kenya has stopped export of avocados from Friday to allow the fruits to mature as part of measures to protect the country’s lucrative external market. In a notice on Tuesday, the Horticultural Crops Directorate (HCD) suspended the export of Hass, Pinkerton, Fuerte and Jumbo avocado varieties by sea but cleared air shipment of the fruit, including those on transit from other East African Community (EAC) countries. The directorate says the decision follows a survey it undertook to establish the maturity indices of avocados in major production zones. “Following the findings of the survey, we hereby notify the Kenyan avocado stakeholders that the closing of Hass, Pinkerton, Fuerte and Jumbo harvesting season and export by sea for the 2023/2024 fiscal year shall be in force with effect from 3rd November 2023,” said HCD acting director-general Willis Audi. He added: “Export clearance (including fruit consignments from the EAC region) shall be granted for air shipment, subject to inspection by the directorate. Traceability information will be required for all consignments.” Temporary bans on export is one the measures Kenya takes to deter premature harvesting of the popular fruit, which leads to export of low-quality produce putting at risk the country’s outside markets. This comes at a time demand for avocado...

The Taveta-Holili border post offers Kenya the best route to Burundi, Rwanda, and parts of Tanzania via the Voi-Taveta-Singida-Kobero road. Tanzania has failed to establish a geofence on a 15 km road beyond Taveta-Holili OSBP to open the transit corridor. This Non-Tariff Barrier is forcing truckers to take longer routes to deliver goods to Rwanda, Burundi, and parts of Tanzania. Across East Africa’s vibrant economic landscape, Kenya and Tanzania hold a prominent position as trading partners and nations engaging in a fierce economic rivalry. Collectively, the two countries collaborate in business, yet never-ending feuds often erupt into disruptions that hurt cross-border trade. Overall, the Kenya-Tanzania trade wars have slowed regional integration. These tensions have also limited the nations’ ability to exploit the full potential of the EAC market. Tanzania, with a projected economic growth of 5.5 per cent in 2023/2024, is actively positioning itself as a critical player in regional trade. In particular, Tanzania is tactfully intensifying competition with Kenya to control vital transit corridors. The ultimate goal is for Tanzania, which has outperformed Kenya as the top investment destination for investors looking to enter the region in the next two years, to enhance its position in the regional economy. The Taveta-Holili one-stop border post conundrum Built at an estimated cost of $12 million by TradeMark Africa (TMA), the Taveta-Holili One-Stop Border Post (OSBP) was launched in 2016. The post, which hosts key government agencies on trade from both countries, was established to enhance bilateral trade. Trade statistics indicate that the Taveta-Holili OSBP...

Zambia’s President Hakainde Hichilema has expressed a strong desire for the prompt restoration of the Tanzania-Zambia Railway Authority (TAZARA Corridor), which connects Zambia to Tanzania, to facilitate the efficient transportation of goods and petroleum products. TAZARA, originally constructed by the Chinese government in the 1970s, faces several challenges, including outdated infrastructure and a debt burden. During Zambia’s 59th Independence celebrations, President Hichilema engaged in numerous bilateral meetings with Tanzanian President Samia Suluhu Hassan in the Zambian capital, Lusaka. In September, it was revealed that a Chinese concessionaire is poised to assume control of the railway as early as the first quarter of 2024. President Hichilema conveyed to President Hassan that Tanzania should consider the Lobito Corridor through Angola as a complement to, rather than a competitor of, TAZARA. This plan involves the development of the Zambia-Lobito rail line, connecting northwest Zambia to the Lobito Atlantic Railway and the port of Lobito. The Lobito Corridor is a significant transport infrastructure project supported by the United States and is anticipated to enhance regional trade and provide open-access rail connections from the Atlantic Ocean to the Indian Ocean. Hichilema emphasized Zambia’s goal of establishing a 24-hour economy, underpinned by advanced digital technology. He proposed the transition from multiple border checks to a seamless, borderless movement of goods on both sides. President Hassan disclosed that Tanzania has allocated land for the construction of a dry port in Zambia and extended the storage time for Zambian goods at the Dar-es-Salaam Port. Zambia will be granted...

It is not every day that good news in one country brings joy to residents of another country. James Phiri, a merchant who imports and sells merchandise in Malawi’s Capital Lilongwe, smiles as he reads a news update that has just popped up on his mobile phone. It is about the upgrading, expanding and modernising of the Nacala Port facility in neighbouring Mozambique. “This is fantastic,” he says as he shows the update to his wife. For a long time, the long distance to the port has given Phiri a headache when importing mechandise due to the high transport costs which have to be factored into the final price, thereby making the goods expensive. Nacala is just 932km from Lilongwe and 700km from Liwonde, which is currently connected by rail to the Indian Ocean port. “This will definitely help to bring down the cost of transport, thereby making the goods more affordable,” he says. About 100km from Lilongwe in Zambia’s border town of Chipata, Jarson Mwendwa is equally excited by the refurbishment of the Nacala Port. PARTNERS – The three presidents and a Japanese official hold hands during the inauguration To Mwendwa, an improved Nacala provides shortest access to the sea. On October 7 this year, Mozambique President Filipe Nyusi, Malawi President Lazarus Chakwera and Zambia President Hakainde Hichilema opened the upgraded, expanded and modernised Nacala Port facility that seeks to improve regional trade and integration. The Nacala Port is Malawi’s shortest and cheapest route and will serve as a...

The cost of accessing regional and continental markets for Kenyan businesses is gradually easing, findings of a survey suggest, citing falling tariffs and customs procedures. Traders who participated in a survey conducted by top-tier lender, Stanbic Bank, said that the burden of high taxes, infrastructure challenges, political instability, and conflict when buying and selling goods with other African countries was on the decline. About 31 percent of Kenyan firms reported cross border trade landscape to be either “very or extremely easy” in May, according to the Africa Trade Barometer index, nearly doubled from 17 percent in September last year. “This result may be driven by the fact that the majority of the businesses exports are sold to fellow EAC member states, where the existence of the EAC Common Market Protocol and EAC Customs Union has eliminated or significantly reduced tariffs and trade barriers,” research analysts at Stanbic Bank wrote in the report released to media last week. “The EAC has also harmonised customs procedures among member states and thereby significantly simplified trade processes between member states, which may explain why the majority of businesses are not significantly impacted by customs regulations.” The findings further suggest that the proportion of surveyed businesses that were aware of opportunities under the African Continental Free Trade Area (AfCFTA) has nearly tripled to 43 percent in the review period compared with 15 percent previously. This came after the Accra-based AfCFTA secretariat launched a year-long Guided Trade Initiative (GTI) in October last year aimed at stress-testing...