Plant and animal products traded across the world are subjected to global standards under what is known as Sanitary and Phytosanitary (SPS) measures set by the World Trade Organisation (WTO), a body that deals with global rules of trade. These measures are generally meant to protect human, animal and plant health from risks arising from contaminants, toxins, additives, or disease organisms. They are also meant to protect animal or plant life from pests, diseases, and disease-causing organisms. In essence, if a Rwandan trader exports fruits to the European market or any other market, the products are usually subject to inspection to check if they live up to those standards. In other markets, the products will be subject to testing of packaging and labeling standards, processing methods and certification. In many cases, countries with stronger SPS standards tend to trade less with countries that have weaker SPS standards. More developed nations normally have stronger standards and demand a lot from less developed countries and less developed countries end up being victims. For instance, between 1995 and 2017, developed countries raised 242 SPS trade concerns as opposed to only 7 concerns raised by least developed countries. 226 measures were maintained as opposed to only 1 measure, according to WTO. Rwanda has particularly experienced these issues as exporters of food and other agricultural products have had their products rejected at the borders of the European Union country, the country's largest export destination of horticulture products. According to data from the Ministry of Agriculture,...

Africa's largest trading bloc plans to promote intra-regional trade through innovation, an official said on Monday. Kipyego Cheluget, assistant secretary-general, Common Market for Eastern and Southern Africa (COMESA) told a regional trade forum in Nairobi that innovation creates technological and comparative advantage, which in turn drives trade. "Regions with robust innovation activities have higher productivity, economic growth and job creation and have more government revenues available to support spending in core public priorities such as health, education and infrastructure," Cheluget said during the opening ceremony of the sixth Comesa annual research forum. The key objective of the five-day event was to bring together academia, think tanks, government officials and the private sector from the 21 member states to discuss emerging topical issues in regional integration. Cheluget said that members of the economic bloc recognize the importance of science, technology and innovation in socio-economic and cultural development and have agreed to cooperate in the various fields. Chris Kiptoo, principal secretary of Kenya's Ministry of Industry, Trade and Cooperatives said that a more integrated region will enhance economic growth and poverty reduction in eastern and southern Africa. Kiptoo said that the best way to achieve productivity growth is through greater innovation, which can be defined as the development of new or improved products, services and processes. He noted that the region's average high growth rate has not been accompanied by high job growth rates in the face of a rapidly growing population. Source: Xinhau

The African Continental Free Trade Area (AfCFTA) came into effect last May 30, with 54 states signing the agreement at the time of writing. This pan-African agreement was made in the hopes of bolstering local economies by breaking down existing trade barriers and reducing tariffs for regional exchange. Nigeria has just signed onto this agreement — a monumental feat considering that the country represents Africa’s largest economy. About the agreement The AfCFTA is poised to be the world’s largest trading bloc. This bloc will economically join over a billion people, with experts hoping that this will speed up modernisation efforts across the continent. Africa’s labour force has been steadily growing, and with the businesses promoted by the AfCTA creating new jobs, there will be further growth. The beginnings of the AfCFTA started in 2012, when leaders at the African Union summit began grappling with the idea of free trade across Africa. Negotiations officially began during the 2015 summit, and a total of ten negotiating sessions were held before reaching the final agreement in 2018. Experts estimate that this agreement will kick-start Africa’s growth on its way to become a huge economic player. Possible developments include free movement of people across the continent’s borders and the adoption of a single currency. What does this mean for intra-African business? Africa News reports that trade between African countries is the continent’s weak spot, citing lack of infrastructure and investment. They estimate that about $300 billion will be needed by 2020 in order to build...

African political and business leaders at the World Economic Forum in Cape Town will be urged to follow through with commitments made to regional integration, trade experts say. As the African Continental Free Trade Agreement (AfCFTA) enters the implementation phase, WEF Africa can jumpstart discussions on the process of dismantling barriers to regional trade, says co-chair Arancha González Laya. “I hope to shine a spotlight on integration of the African market, because it is very important to keep the momentum that has been generated with the launch of the African Continental Free Trade Agreement,” says González. “What’s important is that the negotiators don’t drop the pen the day the agreement has been signed. The most important phase starts now and it’s called implementation.” The road less travelled African countries have traditionally sold raw materials to global powers rather than trade among themselves. As the only continent in the world trading more externally that internally, Africa is missing out, González says. “Essentially Africa is to a large extent trading outside the continent in lower value-added raw materials and commodities and it’s foregoing the opportunity to trade more value-added [products] within the African continent. We know that what Africa trades within its borders has more value-added than what it trades outside its borders. So it’s important that Africa finds a way to better integrate its markets, to provide opportunities for all those entrepreneurs that can build the regional value chain.” Within the new economic zone, 90% of tariffs would be scrapped within...

Trade and political disputes between member states of the East African Community (EAC) are resulting into an increase in Non-Tariff barriers and other hindrances to trade in the region. To find out solutions, Kenneth Bagamuhunda, Director General of Customs and Trade at the East African Community joins CNBC Africa for more. Source: CNBCAfrica

Trade activity is rooted in basic supply and demand. The female population is estimated to account for 50% of Africa’s total population, and so it is essential to consider women when deliberating on implementation of crucial policies such as the Africa Continental Free Trade Area (AfCFTA) agreement. The AfCFTA aims to create a single continental market for goods and services in member nations of the African Union. It is expected to be the largest global trade bloc, consolidating a market of 1.3 billion consumers with a combined GDP of about $3.3 trillion. Africa could add at least 4.5% to that on the back of enhanced trade activities, according to the Africa Development Bank. The role of women in driving general consumption patterns cannot be overemphasized. Across households, women are more likely to spend their income on products and services that will benefit the smooth running of their homes. Evidence from a range of countries shows that increasing the share of household income controlled by women, either through their own earnings or cash transfers, changes spending patterns that benefit children. Industry sources suggest that women reinvest 90% of their income back into their families, while men reinvest only 30-40%. Therefore, women have a critical part in achieving the desired demand boost that would support the exchange of goods and services among countries throughout the AfCFTA. In most of the African countries signed up to this agreement, the agriculture sector is a primary driver. The contribution of women to the agricultural labour force ranges between...

Japan and the African Development Bank on Friday announced a joint target of $3.5 billion under the Enhanced Private Sector Assistance for Africa initiative (EPSA4), during the 7th Tokyo International Conference on African Development (TICAD 7). Both Japan and the Bank have set a target of $1.75 billion each, from 2020-2022, to enhance the fourth phase of EPSA to spur private-sector-led sustainable and inclusive growth in Africa. “Building on the successful achievements so far, Japan and the Bank have decided to upgrade EPSA in both quality and quantity to meet financial needs for infrastructure development as well as for the private sector development in Africa,” Japan’s State Minister of Finance,” Mr. Keisuke Suzuki said at the EPSA4 launch ceremony held in Yokohama and attended by government officials and a high-level delegation from the Bank as well as representations of the business community. “I wish that the new EPSA initiative will lead to business, investment promotion, and job creation in Africa,” Mr. Suzuki noted. Electricity, transportation, and health will be key priorities under EPSA4. Projects and programs for the three key priorities will be formulated and implemented in line with the G20 Principles for Quality Infrastructure Investment and G20 Shared Understanding on the Importance of UHC Financing in Developing Countries. African countries will also be provided with support to improve and create conducive business environments to attract private investments. “Today marks another day to celebrate the strong and impactful partnership between Japan and the African Development Bank. The African Development Bank...

The Central Corridor of the East African Community (EAC) has embarked on various infrastructure projects that aim to facilitate trade in the region. However, lack of financing among other deterrents has been hindering their completion. Dieudonne Dukundane, Executive Secretary of the Central Corridor Transit Transport Facilitation Agency joins CNBC Africa for more. Source: CNBC Africa

Shippers demand high performing corridors that reduce cost and time spent on transport and logistics and increase the reliability and predictability of the corridors. Hence trade facilitation is key to continued trade growth. However, recent studies conducted by World Bank indicates that 75% of the delays in the movements of goods are from trade facilitation and that 25% is attributed to infrastructure. In this regard intra-regional trade, is often hindered by long procedures involved in passing through two sets of identical controls on each side of the border. Lengthy transit times increase the cost of trade and make African businesses less competitive. Given that Africa comprises 54 countries, 16 of which are land-locked, the negative impact of inefficient border controls on Africa’s economy is significant. Coincide with TICAD VII, where one of the main pillars empathizes on ‘Economic Transformation and Improvement in business environment and Institutions through private investment and innovation’’ shares the same aspirations of AUDA-NEPAD to create an enabling efficient environment to facilitate trade. To strengthen the development and operations of One Stop Border Post (OSBP), in each Regional Economic Community (REC), ‘’training of trainers (ToT) and data collection seminar for RECs’’ took place in Kigali, Rwanda from 29th to 31st July 2019. The objective of the seminar was for the REC participants to; share knowledge and experiences in the development and operations of OSBPs. The seminar was co-sponsored by African Union Development Agency (AUDA-NEPAD) and Japan International Cooperation Agency (JICA), and hosted by the East Africa Community...

Rwanda's dry port will ease trade not only in Rwanda, but also in the neighbouring markets, Mohammed Al Kamali the Deputy Chief Executive Officer of Dubai Exports has said. Dubai Exports is the promotion agency of the Department of Economic Development - a government body entrusted to set and drive Dubai's economic agenda within the broader governance systems of the United Arab Emirates. Al Kamali and a delegation from the UAE yesterday paid a visit to the facility owned by Dubai Ports World (DPW), a Dubai based global port operator. The United Arab Emirates firm signed a 25-year concession agreement with government in 2016 to construct and manage the mega facility that sits on about 30 hectares of land. Located in Masaka the dry port is the country's largest inland cargo handling facility having become operational in June. It has mega cargo handling facility with features such as container yard and bonded warehouse. According to DPW, the first phase of the facility is now ready, with an annual capacity of 50,000 tonnes and 640,000 tonnes of warehousing space. A delegation of over 17 business executives from UAE look at spare parts imported from Sharjah City at the Dubai Port World in Kigali on August 30. Emmanuel Kwizera. Speaking to The New Times during the facility tour, Al Kamali said that the facility is as a solution that will ease trade in Rwanda, and close markets. "It is not only going to serve this country but it is going also to...