Amid trade tensions between the U.S., China and Europe, and the U.K.’s fraught departure from the European Union, African leaders are moving in the opposite direction to establish the world’s largest free-trade zone. Talks on driving forward the African Continental Free Trade Area that stalled with the onset of the coronavirus pandemic are being revived by the African Union, but there is some way to go. A fully implemented deal could cover a market of more than 1.2 billion people with a combined gross domestic product of $2.5 trillion. 1. Who’s in the free-trade agreement? Just about the entire African continent. Fifty-four of the 55 nations recognized by the African Union have signed on to the organization’s initiative to liberalize intra-African trade in goods and services. Eritrea, which has a largely closed economy, is the sole holdout. More than half of the signatories have ratified the deal. 2. What’s the aim? To lower or eliminate cross-border tariffs on 90% of goods, facilitate the movement of capital and people, promote investment and pave the way for a continent-wide customs union. It will also create a liberalized market for services. Once members work out how to treat matters such as cross-border payments, telecommunications, transport and professional services, some countries will have to amend their domestic regulations to comply. 3. Has trading under the agreement started? Not yet. The trade area entered into force in May 2019, four years after negotiations started, when the required minimum of 22 nations ratified it. The first...

In Summary The commodity has been gaining week-on-week despite remaining below the two-dollar mark. This week's rise came amid a drop in traded volumes, which fell to 7.2 million kilos from last week's 8.1 million kilos, an 837,598 kilos difference. Auction prices for tea have recorded an increase for a straight fourth week, recovering from a 13-year low reported in the period ended June. The commodity has been gaining week-on-week despite remaining below the two-dollar mark, giving hope for better earnings to farmers in the second half of the year. This week, a kilo at the Mombasa Tea Auction traded at an average $1.95 (Sh210.74) up from $1.88 (Sh203.17) last week. Previous two weeks had average prices of $1.85(Sh199.93) and $1.82(Sh196.69) a kilo respectively. This week's rise came amid a drop in traded volumes, which fell to 7.2 million kilos from last week's 8.1 million kilos, an 837,598 kilos difference. Out of 136,681 packages (9,009,501 kilos) available for sale, 109,180 packages (7,235,036 kgs) were sold. 20.12 per cent packages remained unsold, the East African Tea Trade Association (EATTA) data indicates. “Kazakhstan and other CIS states lent strong support and were dominant with increased and strong inquiry from Pakistan Packers,”EATTA managing director Edward Mudibo notes. There was also strong interest from Afghanistan and Sudan while Yemen, other Middle Eastern countries and Russia showed useful activity, EATTA says in its report. Egyptian Packers were active but at lower levels while UK were active but selective with Bazaar selective. Iran were quieter with reduced...

In Summary Efficiency at the facility continues to be supported by improved cargo handling capacity and automation of systems, including exits from the ICD. The Kenya International Freight and Warehousing Association had this week raised concerns over delays at the facility which is subjecting importers to storage charges. Cargo evacuation at the Inland Container Depot-Nairobi has remained steady as imports from China, Kenya's leading source begins to pick after five months of disruption on the supply chain occasioned by Covid-19. The latest data indicates 80 per cent of cargo is cleared within zero to 4.6 days, which falls within Kenya Ports Authority(KPA) four days-free storage period, saving importers from costly storage charges while contributing to the ease of doing business in the country. 10 per cent of cargo is cleared within six to 10 day while seven per cent is moved out of the dry port within 11-20 days. Only two percent goes through the customs check processes, KPA confirmed yesterday. “Overall, we are operating within the free storage period,” Nairobi ICD manager Peter Masinde told the Star. According to Masinde, efficiency at the facility continues to be supported by improved cargo handling capacity and automation of systems, including exits from the ICD, which have seen operations remain steady despite measures to contain the spread of Covid-19 among them reduced personnel on site. Cargo dwell-time, the time a container takes to leave a port facility, reduced to five days in July into August, from six days between April-June. Average cargo dwell time in most ports in Africa is close to 20...

In recent history virtually every continent and economic block has been trying to establish common trade area agreements as well as political unions. Africa is no different –SADC, ECA, COMESA, ECOWAS and SACU are just some of the examples of African countries trying to collaborate to drive the many aspects of social and economic development. It is a system and an idea that promises to accelerate inclusion and promote regional prosperity among neighbours and the AfCFTA (The African Continental Free Trade Area) is rapidly becoming the embodiment of that reality – 28 African countries operating as a free trade area. As expected from an agreement of this magnitude, few people fully understand its complexity and intricacies. FurtherAfrica spoke to one of AfCFTA’s strongest advocates. Mark-Anthony Johnson, CEO of JIC Holdings – an investment, trading and acquisition entity focused in Africa and emerging economies with roots back to 1985. Mark’s JIC operations are at the heart of what is poised to become the world’s largest free trade area. Fabio Scala: Mark, it’s always great to see you and very exciting to have the opportunity to discuss AfCFTA with you, so thank you very much for your time. Let me begin by asking you to give us a brief description of what AfCFTA is and its practical impacts in the participating economies. Mark-Anthony Johnson: Thank you, Fabio. Always happy to talk about Africa. But first, congratulations are due to you and FurtherAfrica on your excellent and informative platform. I am delighted to have the opportunity to...

In Summary Revenue collection by the Domestic Taxes Department experienced a growth of four to Sh1.092 trillion. A decline in employment rate saw a slow growth on Pay As You Earn (PAYE) taxes which registered a paltry two per cent increase. Reports a performance rate of 97.9% Kenya Revenue Authority (KRA) has recorded a slight 1.7 per cent jump in revenue collection for the financial year 2019/20 despite a struggling economy ravaged by the Covid-19 pandemic. Revenue collected between July 2019 and June 2020 reached a new high of Sh1.607 trillion, compared to Sh1.580 trillion collected in the same period in 2018/19. This represents a performance rate of 97.9 per cent compared to the last financial year. “The performance is favourable and matches the prevailing economic indicators, especially the projected GDP growth of between 1.5 per cent and 2.3 per cent in 2020,” commissioner general Githii Mburu said in a statement yesterday. In addition, KRA collected other monies including Agency Fees amounting to Sh97.1 billion. This is revenue collected on behalf of other government agencies mainly at the ports of entry, which includes road maintenance levy, airport revenue, aviation revenue, and petroleum development fund. The exchequer revenue grew by 2.2 per cent with a collection of Sh1.510 trillion compared to Sh1.477 trillion collected in 2018/19, translating to a performance rate of 98.6 per cent against the target. Revenue collection by the Domestic Taxes Department experienced growth of four per cent in FY 2019/20, down from average growth of 13.9 per cent recorded in the period July...

What you need to know: Kenya has been focusing mainly on agricultural exports, following up with the Integrated National Export Development and Promotion Strategy created by President Uhuru Kenyatta in July 2018. As economies around the world shrink, Kenya continues to work on reducing its trade deficits with China. By securing a larger market for our exports to the East Asian Country, we will reduce the gap between how much China exports to Kenya versus the opposite, thereby strengthening our economy. Kenya has been focusing mainly on agricultural exports, following up with the Integrated National Export Development and Promotion Strategy created by President Uhuru Kenyatta in July 2018. By improving regulations on phytosanitary (concerning the health of plants) regulations, Kenya should be able to increase the volume of produce we send not only to China, but also to our trade partners all over the world. President Kenyatta and his Chinese counterpart Xi Jinping already signed an agreement in April 2019 to allow Kenya to export Hass avocados to China. This allowed many Kenyan avocado farmers to produce more than could be consumed by the local market alone. Following this policy, Kenya has been able to increase the amount of exported goods by Sh2 billion during the 2017-18 period, and this number keeps on increasing. If Kenya’s renewed focus on exporting more produce to China is successful, its trade deficit will be bridged. What the administration is essentially trying to do is guarantee a predictable export market through trade expansion. This...

The new facility will provide another connection between Ethiopia and global markets, and a transshipment hub where large container ships can offload their freight to feeder ships able to negotiate the Horn of Africa's shallow ports. The recent announcement by the Port Berbera in Somaliland of major progress has opened up a new competition for the Lamu port as the two facilities target Ethiopia as their main transit market. Lamu port has already completed its first three berths, waiting commissioning while Berbera port has announced finishing the construction of 400 metres quay and a 250,000-square-metre extension. There has been an ongoing initiative to open up another corridor for Ethiopia- the Berbera Corridor Project that is set to connect the country to Somaliland. In a strange turn of events, with the Arab Gulf States growing interests in the Horn of Africa region, due to geopolitical and strategic consideration, in May 2016, DP World, a global mega port operator agreed to develop Berbera port and manage the facility for 30 years. The groundbreaking ceremony was held early last year, by the Somaliland president, who said the investment would “bring economic stability and create employment opportunities for our youth”. According to authorities, it was expected that the project would increase trade volumes with Ethiopia by 30% when it is completed fully in early 2022. Port Berbera is now the closest sea route to Ethiopia, a journey of 11 hours. The expansion will give the port capacity to handle up to 500,000 containers yearly....

The African logistics sector is on an upward trajectory as startups in the sector secure growing amounts of funding as the potential for the space to power a commerce revolution on the continent becomes clearer and clearer. According to the latest edition of the African Tech Startups Funding Report released each year by Disrupt Africa, logistics startups had a record-breaking 2019. Twenty-three logistics startups secured investment, up 91.7 per cent on 2018 numbers, which in turn were an increase of 140 per cent on the year before. Total funding increased by 264.6 per cent to US$69,627,000, with logistics startups securing the biggest share of investment by any sector bar fintech. Total annual funding in this sector has been growing at hugely impressive rates, jumping an astonishing 6,746 per cent since 2016. Though much of the logistics sector’s growth funding-wise over the last few years has been driven by two companies, with more than 80 per cent of the space’s investment total in 2019 raised by Nigeria’s Kobo360 and Kenya’s Lori Systems, we are seeing a trickle-down effect, and startups raising at all levels. Powered by opportunity The development of the sector and its increased attractiveness to investors can be attributed to the size of the opportunity. The ability of e-logistics solutions to power the growth of African commerce – and e-commerce – as that undergoes a revolution of sorts is key. Tonye Membere-Otaji is founder of Nigerian company MVXchange, a tech-driven maritime platform that matches vessel charter requests with available Offshore Support Vessels (OSVs), helping users...

COMESA will start conducting national launches of a digital platform known as the 50 Million African Women Speak (50MAWSP) Project specifically designed to address the information needs of women in business in the region. According to statement from COMESA, the trade bloc will roll out the Platform in 14 Member States between August and November 2020 largely through virtual means owing to restrictions imposed by the COVID-19 pandemic. The launches are tentatively scheduled to kick off in Zimbabwe followed by Seychelles on 25 August. The platform which Is accessible at www.womenconnect.org primarily seeks to economically empower women by providing a one-stop shop for a wide range of financial and non-financial services that women need to start and grow successful businesses. It is jointly implemented by COMESA, the East African Community (EAC) and the Economic Community of West African States (ECOWAS) and is funded by the African Development Bank. Continentally unveiled during the Global Gender Summit in November 2019 in Kigali, Rwanda, the platform enables women in Member/partner States of COMESA, EAC and ECOWAS and other African countries to find information on how to run businesses, where to access financial services, how to create business opportunities online and where to access training resources. Secretary General Chileshe Kapwepwe has described the initiative as a very practical way of speaking to the general agenda of empowering women with its business resources and custom-built social networking features already attracting thousands of women and connecting them to do business with each other  and share experiences in ways...

The renewed push by manufacturers in Kenya for higher taxation of finished products imported into East African Community (EAC) bloc is a double-edged sword that requires sober reflections. The Kenya Association of Manufacturers (KAM) says Kenya’s decision to apply a 30 percent Common External Tariff (CET) on imported finished products distorts the regional market because other partner of the EAC Customs Union such as Tanzania and Uganda had settled on 35 percent. To that extent the lobby has a point because a lower CET on finished products comparative to Tanzania and Uganda technically means that such products are likely to be dumped into the Kenyan market despite its sufficient manufacturing capacity for items such as iron and steel products, wood products, textile products, paper and paperboard products, and vegetable oil. In theory, when a higher tariff is imposed, the additional costs loaded upon the affected items discourage imports, which in turn sways the balance of trade. Globally, tariff protection is a preferred policy response by countries seeking to protect infant domestic industries from international competition, providing them ample time to nurture and grow into competitive entities and safeguard jobs. Tariffs are also popular in stances where a country is experiencing import surges from countries known to adopt unfair trade practices such as export rebates. In the case of Kenya, the current CET structure is based on three bands which set a zero percent tariff on raw materials and capital goods, 10 percent on intermediate products and 25 percent on finished...