The world’s trade is expected to grow at a much slower pace this year and next year than previously anticipated. This is blamed on the “escalating trade tensions” and uncertainties around Brexit, according to the World Trade Organisation (WTO). World trade in merchandise is expected to expand by only 1.2 per cent this year, less than half the rate of 2.6 per cent growth anticipated in April, the WTO said in a statement released on Tuesday morning. World trade is forecast to reach 2.7 per cent next year, below the 3 per cent previously foreseen. WTO Director-General Roberto Azevêdo said the darkening outlook for trade is discouraging but not unexpected. “Beyond their direct effects, trade conflicts heighten uncertainty, which is leading some businesses to delay the productivity-enhancing investments that are essential to raising living standards,” he said. WTO economists had warned during its annual forecast in April that systemic threats to global trade – notably retaliatory tariffs between China and the United States – would continue to hamper the flow of goods. In September, US President Donald Trump increased tariffs on $112 billion worth of Chinese imports, threatening American consumers with higher costs for shoes, apparel and electronics. As China slapped retaliatory tariffs on $75 billion of American imports, President Trump threatened to extend tariffs to $550 billion worth of Chinese imports. The president last month delayed by two weeks a planned increase in tariffs on $250 billion worth of Chinese goods, momentarily restoring hopes for a trade deal. But...

Three African trade blocks have come up with two new projects aimed at increasing formal small-scale cross- border trade flows in the region, a spokesperson said on Tuesday. The Common Market for Eastern and Southern Africa (COMESA), the East Africa Community (EAC) and the Southern African Development Community (SADC) have come up with a 15-million-euro Regional Small-Scale Cross Border Trade Initiative and a 53-million-euro Trade Facilitation Project. The projects are funded by the European Union (EU) under the 11th European Union Development Fund, Mwangi Gakunga, Head Corporate Communications at COMESA said in a statement. He said the implementation of the two projects was expected to contribute to higher revenue collection for governments at the borders, increased security and improved incomes for traders. The first project was designed to address challenges facing small-scale traders which include high transactions costs arising from delays at the border, high taxes and high transport costs, corruption and harassment. According to the statement, the second project aims at increasing intra-regional trade flows of goods, persons and services by reducing the cost and delays of imports and exports at specific border posts. This will be addressed through reduction of non-tariff barriers, implementation of digital free trade area, improvement of coordinated border management and liberalization of trade in services and free movement of persons. Source: Xinhau

THE Micro Small and Medium-sized Entreprises (MSME), is contributing about 85 per cent of employment and 25 per cent to the Gross Domestic Product (GDP), making it the fastest growing sector in the East Africa Community (EAC), partner states. This was said by the Chief Executive Officer (CEO), of the Confederation of Micro and Small Enterprises Organisation East Africa (CMSEOEA), Mr Richard Muteti, during today’s inaugural of regional consultative forum on MSMEs held at East African Business Council Secretariat in Arusha on Monday. “Despite the importance of the MSMEs to the economy, there isn’t a tailor-made policy at EAC level focusing on the promotion of MSMEs,” said the East Africa Business Council Chief Executive Officer, Peter Mathuki. Lack of standards specifications, poor production methods, poor finish, reduced lifespan, sub- standard issues hindering the export growth of the products manufactured by MSMEs in the region. The chairman of CMSEOEA Mr Josephat Rweyemamu said, “Partnership with EABC will enhance us to speak in one voice on common issues facing business such as non-tariff barriers (NTBs) and harmonisation of standards,” The partnership is expected to increase economic vibrancy by enhancing forward and backward linkages to boost job creation, quality of the jobs and products manufactured by MSMEs. The EABC Director said in her remarks, “EABC will represent MSMEs issues in the high-level meeting with the EAC Heads of State and Council of Ministers” Innovations, exposure visits, capacity building, business to business linkages between micro and large industries and access to market are among...

The Democratic Republic of Congo (DRC), sub-Saharan Africa’s largest country, is known for being a tough place to do business but also one of unexploited economic potential. Although the country has had a dark cloud looming over it for years, it recently held its first democratic transfer of power since it gained independence from Belgium in 1960. And like other African countries, the DRC is in pursuit of a stronger and thriving economy. The IMF has the country’s economy‘s growing at a rate of 4.3% in 2019; and nothing suggests that this will not improve in the future. For the DRC, the pursuit for a thriving economy is well within reach given its endowment with vast natural resources that could enable it to be a contributor to Africa’s economic growth and global supply of raw materials such as copper. The DRC’s new government seems to be committed to exploiting these natural resources, as demonstrated through the several sector reforms that have already been implemented. The most impactful, both short and long term, being investment infrastructure development & renewable energy, amendments to mining and oil & gas legislation as well as its participation in the Extractive Industries Transparency Initiative. In respect of infrastructure and energy, the DRC captured global attention with the world’s largest proposed hydropower scheme known as the Grand Inga project. A project that aimed to generate about 40,000 megawatts of power from water sourced at the mouth of the Congo River. This amount of energy can cater for...

East African Community ( EAC )member states have been urged to should eliminate NTBs and implement agreed EAC directives to boost intra EAC trade to 50 percent. According to the East African Business Council CEO Mr. Peter Mathuki, business community and officials from Trade Facilitation Agencies should embrace the vision of a borderless East Africa for trade. Intra EAC trade is currently at 12 percent. Last week, EABC – and Trade Mark East Africa (TMA) kicked off the second Public-Private Dialogue (PPD) with Trade Facilitation Agencies at Busia One-Stop Border Post to interrogate if EAC agreements and practices ease doing business across EAC borders. The EABC-TMA Public-Private Dialogue was held with Trade Facilitation Agencies at Busia One-Stop Border Post. The PPDs focus is on the extent to which Partner States are translating the EAC Common Market and Customs Union Protocols into policies that support the actualization of free movement of goods and people. In a statement from EABC, Mr. Mathuki urged the business community and officials from Trade Facilitation Agencies to embrace the vision of a borderless East Africa for trade. He also called for open dialogue aimed at coming up with solutions to barriers to the movement of goods and services at the Busia Border. “Let’s talk openly one another to facilitate trade, political goodwill is there, so let’s action, if we don’t get it right at the EAC level it will be more challenging at the AfCFTA level,” said Hon. Mathuki. During the dialogue, Uganda Revenue Authority enlightened small...

The East African Business Council (EABC) and Trade and Markets East Africa (TMA) are calling on East African Community borders to eliminate Non-Tariff Barriers (NTBs) and implement agreed EAC directives to boost intra EAC trade to 50 percent which currently stands at 12 percent. This was said by Hon. Peter Mathuki, EABC CEO on Monday during the the second Public-Private Dialogue (PPD) with Trade Facilitation Agencies at Busia One-Stop Border Post as they interrogated if EAC agreements and practices ease doing business across East African Community borders. The PPDs focus is on the extent to which Partner States are translating the EAC Common Market and Customs Union Protocols into policies that support the actualization of free movement of goods and people. Hon. Mathuki urged the business community and officials from Trade Facilitation Agencies to embrace the vision of a borderless East Africa for trade. He called for open dialogue aimed at coming up with solutions to barriers to the movement of goods and services at the Busia Border. “Let’s talk openly one another to facilitate trade, political goodwill is there, so let’s action, if we don’t get it right at the EAC level it will be more challenging at the AfCFTA level” said Hon. Mathuki. During the dialogue, Uganda Revenue Authority enlightened small-scale trades about the export levy on fish (appx. 0.02% per Kg of fish). Small Scale traders of fish have insufficient knowledge on the levy hence more vulnerable to harassment, corruption, bribes and excessive charges by unscrupulous customs...

Collaboration between Trademark East Africa (TMA) and the UN Economic Commission for Africa resulted last week in a dinner roundtable to discuss how to make the African Continental Free Trade Area work for women and youth. Speaking at the event, Andrew Mold, Acting Director praised the collaboration between ECA and TMA, saying that such partnerships between ECA, TMA, the African Union Commission, UNCTAD, and others are going to be fundamental in moving forward the regional integration agenda. The roundtable was held in Nairobi on 18th September 2019 and attracted a wide participation of Government officials, business leaders, representatives of women and youth traders of East Africa as well as representatives of international organizations. In his keynote address, Adan Mohamed, Kenya's Cabinet Secretary for East African Community and Regional Development, stressed the need to ensure that the wealth created as part of the AFCFTA agreement is inclusive and sustainable: "For the African Continental Free Trade Area to be successful, it is absolutely essential to create an enabling environment for women and youth businesses to prosper", he said. The UNCTAD Secretary-General Mukhisa Kituyi called on governments not to drag their feet in the implementation of the AfCFTA. In the face of dramatic changes in the global economy, he appealed to African countries to abandon outdated forms of economic nationalism and embrace a regional perspective. Mukhisa also encouraged African leaders and youth to grasp the rapidly growing opportunity of electronic commerce - e-commerce - worth $29 trillion globally or risk quickly falling behind....

The tectonic plates of the global political economy are shifting, and with an accelerating pace: “Trade wars”; “Brexit”; “fake news” and election manipulation; “populism”; the appointment of a “geopolitical commission” in Brussels; unprecedented protests in Hong Kong; South China sea military confrontations; an increasingly assertive Chinese Communist Party—the list goes on. Facing these dramatic changes, smaller, relatively fragile, states, particularly those in Africa, need to build new reference points to anchor their future development or risk being swallowed in the emerging crevasses. Rather than focus on current events Africans need to discern their underlying drivers and how they frame opportunities, as well as responses. The modern world economy is now characterized by a rapidly shifting technological frontier within which several previously distinct realms are now converging. Sub-Saharan Africa could benefit from the increasingly interconnected global economy. At the same time, the United States’ tough response to China’s growing economic heft, as well as increased worldwide backlash to globalization, is incentivizing some economies to look inward. Trade policy and strategy is back in focus with a vengeance, and increasingly contested. How might an Africa caught in the middle of these opposing forces navigate this new global trade environment while maintaining its growth momentum of the last two decades? Trade integration is creating opportunities for growth Under the “Fourth Industrial Revolution” the world of work is transforming, placing ever-higher premiums on skills, curtailing the significance of geographic distance as a main shaper of production patterns, and promoting structural transformation. This new, more...

Africa, despite being a rich continent endowed with vast natural resources, is still lagging behind other regions of the world when it comes to industrialisation. Member countries still export commodities in their raw form and get next to nothing for these commodities and at the same time spend billions in scarce foreign currency to import finished goods for consumption by their people. African countries are failing to trade among themselves due to ineffective manufacturing industry, even in the wake of the coming on board of the African Continental Free Trade Area (AfCFTA) earlier this year. It is against this background that senior journalists, business writers, and experts from across the continent, as well as experts and representatives from partner organisations this week, met in the Ethiopian capital Addis Ababa, to interrogate how the continent can move forward and industrialise. Organised by the Industry Division in the Department of Trade and Industry of the African Union Commission, the meeting sought to build media awareness on the Accelerated Industrial Development of Africa (AIDA)’s framework and related strategies. As we have previously mentioned, Africa continues to part way with its raw minerals and buying them back as finished products for a high fee from international markets. Exports from the continent remain dominated by unprocessed or minimally processed products, mainly from the agricultural and mineral sectors, resulting in very low-value returns. It should be noted that Africa’s Regional Economic Communities namely the Southern Africa Development Community (SADC), East African Community (EAC), the Economic Community...

NAIROBI, Sept. 27 (Xinhua) -- South Sudan is likely to seek an extension to become compliant with the requirements of the East African Community (EAC) customs union, an official said on Friday. Aggrey Tisa Sabuni, presidential advisor on economic affairs of South Sudan told Xinhua in Nairobi that the period of three-year that his country was granted to ready itself to assume its role and responsibilities is not sufficient. "The likely course of action is that we will require an additional period of not less than one year to implement the EAC customs union protocol due to challenges of legal frameworks and capacity issues," Sabuni said on the sidelines of the high-level conference on EAC trade integration. The three-day event brought together policymakers and academia from the six partner states to review the level of trade in the economic bloc. In 2016, South Sudan became a member of the six-country trading bloc but is yet to fully implement the customs union and common market protocol. Sabuni noted that for his country to implement the customs union it will require to undertake reforms of its immigration, customs, taxation and labor laws. The custom union requires member states to remove internal tariffs for goods produced within the region and maintain a common external tariff for goods imported into the economic bloc. Sabuni noted that South Sudan is likely to experience loss of revenue of import duty that is currently charged on goods from the EAC partner states once it fully operationalizes the...