News Categories: Kenya News

Seizing the opportunities of the African Continental Free Trade Area for Africa’s women

Opinion piece by Abebe Haile-Gabriel Assistant Director-General and Regional Representative for Africa Food and Agriculture Organization of the United Nations March 8 is marked around the world as International Women’s Day. For many women in Africa, including those in the agriculture sector, it will be just another day where invisible barriers hold them back from their true potential. At the United Nations Food and Agriculture Organization, we believe that inclusivity and fairness are key to achieving sustainable development in agriculture, and that this objective cannot be obtained without accounting for the central role played by women in the sector, including in agriculture markets, trade and value-chain development. The African Continental Free Trade Area or AfCFTA is a major opportunity to boost economic growth, reduce poverty, and broaden economic inclusion. We must seize this opportunity for gender equality as well. The agricultural and agribusiness market in Africa is undergoing rapid expansion, with its value estimated to reach USD 1 trillion by 2030, according to the World Bank. This represents an immense potential for Africa to boost food and non-food trade within the continent and enhance food security and resilience for all. The AfCFTA has opened up immense new market and trading opportunities to capitalize on this potential. The agreement, signed by 54 African Union member states and covering a market of 1.2 billion consumers, establishes the largest free-trade area in the world since the creation of the World Trade Organization almost 30 years ago. The agreement creates a regional single market...

Intra-Africa trade in need of more investment to move cargo

Summary Amani Abou-Zeid, the commissioner for Infrastructure and Energy at the African Union Commission, has urged countries to embrace transnational projects to facilitate the movement of cargo, noting that no meaningful development can take place without significant investment in infrastructure. The African Union High Representative for Infrastructure Development Raila Odinga noted that while countries have increased budgetary allocations to infrastructure projects, funding from private and institutional investors was missing to bridge the continent’s infrastructure deficit. Lack of infrastructure is a bigger hurdle to trade within Africa than uncertain non-tariff barriers, eating up close to 40 percent of logistics expenses and affecting free movement of goods, officials have warned. Amani Abou-Zeid, the commissioner for Infrastructure and Energy at the African Union Commission, has urged countries to embrace transnational projects to facilitate the movement of cargo, noting that no meaningful development can take place without significant investment in infrastructure. “We need to invest in infrastructure to boost our intra-trade on the continent. This can only be achieved by increasing budgetary allocation toward infrastructure projects,” said Ms Zeid in a speech during the official launch of the Programme For Infrastructure Development in Africa (Pida) Week in Nairobi, organised by the African Union Development Agency (Auda)-Nepad. The African Union High Representative for Infrastructure Development Raila Odinga noted that while countries have increased budgetary allocations to infrastructure projects, funding from private and institutional investors was missing to bridge the continent’s infrastructure deficit. Mr Odinga said Covid-19 had also negatively impacted cross-border trade as AU members...

Goods registration plan to reduce cross-border delays

Summary Waiting times at the border stations are commonly used as an indicator of trade facilitation performance. All registered products require a local certificate of conformity to be permitted into the country. Kebs shall register products based on test reports from laboratories accredited to ISO/IEC 17025, product certification by the National Standards Body and/or under IECEE scheme. The import, export and transit of goods and the means of transporting them are subjected to national and international regulations. Compliance with these regulations is checked and enforced when the goods arrive in the country of transit or destination. In most countries, this is at the border crossings or stations close to the geographical boundary of the country. Unfortunately, traders, their representatives and drivers in most cases are forced to undertake multiple formalities at border crossings to release and clear the goods. At times this becomes a lengthy or speedy process depending on the organisation of the border crossings, the procedures in place and management of those formalities. As a result, delays have become common, with pictures of endless lines of waiting trucks depicting trade barriers, particularly in developing countries in Africa. Waiting times at the border stations are commonly used as an indicator of trade facilitation performance. However, the delays and incalculable timelines harm transit traffic and cross border trade. They cause unpredictable delivery times for traders and make it difficult for them to participate in a time-sensitive logistics chain of business with the producer and cargo owner. Uncertain timelines also increase...

Opening up new frontiers for young people and refugees in agribusiness

The Food and Agriculture Organization of the United Nations (FAO) Subregional office for Eastern Africa and Agricycle Global Inc. agreed to work together in nurturing youth groups in Kenya, and refugees and host communities in Uganda in the development of fruit and vegetable value-chains. Areas of collaboration include capacity development for youth on fruit and vegetable value chain development; od safety standards and fruit and vegetable-related agribusiness; documentation of youth empowerment business models; transfer of knowledge and skills for adoption of technologies and equipment for fruit drying; and publishing of best practices. Through this agreement, targeted beneficiaries will improve their access to market, as well as technology, such as solar driers/ dehydrators, and gain capacity development trainings on quality control of their produce. These interventions will eventually help them to improve their incomes and livelihoods, contributing to decent rural (youth) employment and reduction of food waste and loss. Women and youth have been historically excluded/ discriminated against in the agricultural value-chain even though they have an important role to play in the agri-food systems Signing the agreement, David Phiri, FAO Subregional Coordinator for Eastern Africa and Representative to the African Union and United Nations Economic Commission for Africa, noted that youth employment in the food and agriculture sector in the subregion was a key area of focus given that youth constituted a large segment of the population. “In order to address issues such as rural exodus, unemployment, and food and nutrition insecurity, it is critical to engage and invest in...

A ‘blossoming partnership’: digital corridor drives Kenyan flower exports to UK

International trade, however, has a huge part to play in keeping the UK’s florists stocked with fresh cut flowers. The second top import market to the UK for flowers is Kenya, which supplies just over 8 percent of British-sold flowers, or 10,000 tons, worth not far off £67 million. Cut flowers account for 25% of all Kenyan imports to the UK. The Institute of Export & International Trade has been working with donor organization TradeMark Africa (TMA) to implement a ‘digital trade corridor’ between the UK and Kenya to help simplify trade between the two nations. The initiative, called the ‘UK-Kenya Trade Logistics Information Pipeline’ (TLIP), aims to eliminate documentation and introduce better visibility in the supply chains flowing between the UK and Kenya. This initiative builds upon on the Kenya-UK Economic Partnership Agreement, which was signed in December 2020. TLIP's system uses blockchain technology to link all those in a supply chain together, enabling faster logistics and easier trading. Marco Forgione, director general of the IOE&IT, said: “This Valentine’s Day when you were giving your loved one a beautiful bouquet of flowers, consider the journey they have taken to put that smile on their face. Around nine different organizations are involved with the transportation of flowers from Kenya before they enter your home and all of these actions in the supply chain require documentation to move the goods along on their journey. “The trade corridor we are creating will provide more transparency and enable all actors to view the...

Govt equips private sector to tap AfCFTA opportunities

THE government has challenged the private sector to produce high quality goods at low costs to compete in the African Continental Free Trade Area (AfCFTA) market. Deputy Minister for Investment, Industry and Trade, Mr Exaud Kigahe made the remarks on Monday at the opening of a three-day workshop on a capacity building programme for the private sector in Dar es Salaam to grasp AfCFTA opportunities. “This market is likely to create trade competition, so I urge you to ensure that we continue to produce high quality products that will be able to enter other African countries and encourage market competition,” he said. The workshop was organised by TradeMark Africa. He said the government is committed to creating a friendly environment by ensuring the availability of reliable and affordable electricity which is fundamental in producing goods at low cost. He also said the government is in the process of conducting a comprehensive analysis of the AfCFTA agreement on the country’s economy and preparing the national AfCFTA charter. “Recognizing the importance of the AfCFTA agreement, the government has engaged various experts to obtain information and stakeholders views on the implementation of the agreement,” said Kigahe. He added, “The strategy will help us to organize ourselves as a country to ensure that we take full advantage of the AfCFTA agreement opportunities,” He said the AfCFTA market was an opportunity that could be used by Tanzanians to attract investors who would produce their products and sell them on the local market and the AfCFTA...

Public Health Experts in Kenya Confirm Food Safety Policy

Nairobi, Kenya: Food safety is central to public health, food security, and improved livelihoods through trade facilitation and sustainable development. The need to put in place stringent regulations and guidelines to ascertain such protection for the wellbeing has been defective. This is despite the Constitution of Kenya 2010 which allows for access to safe food as a fundamental right prescribed in Article 43. It sets provisions regarding safety, cleanliness, and orderliness of food and water for Kenyans. The implementation of this law to the letter has been lacking. While Article 46 states; Consumers have the right– to goods and services of reasonable quality; to the information necessary for them to gain full benefit from goods and services; to the protection of their health, safety, and economic interests; and to compensation for loss or injury arising from defects in goods or services. Again, it adds that; Parliament shall enact legislation to provide for consumer protection and for fair, honest, and decent advertising. This Article applies to goods and services offered by public entities or private persons. How hygienic are the street food vendors/ Henry Owino. Over the years, concerted efforts and initiatives have been directed at addressing the improvement of food safety systems with some degree of success. However, the situation surrounding eating habits in Kenya has changed drastically over the past three years. New and evolving technologies have been developed and implemented to produce all types of foods with the view of meeting demands for the ever-increasing population, including foods derived...

Tanzania, Kenya: Cooperative relay or dash for regional economic supremacy?

Protectionism and non-tariff barriers persist between the two countries countries have varying processes which seriously delays the movement of goods due to the need for multiple certification processes across borders Harmonizing infrastructure projects key to boosting trade Tanzania Kenya EAC Trade Investment Regulations It is only through economic growth that the East African Community (EAC) can successfully realize its much-coveted regional integration. For this to happen, a delicate balance must be achieved between competition and cooperation; therein lies the dilemma, a race or partnership? As far back as two decades, in 2004, Kenya Uganda, and Tanzania, the founding partners of the East African Community, signed the Protocol for the Establishment of the East African Community (EAC) Customs Union that is known as the Customs Protocol yet to date bottlenecks remain. Three years after the founders inked the Customs Protocol, the next parties followed suit,  Burundi and Rwanda adopted the Customs Protocol in 2007. Yet they joined a protocol that is very much alive on paper but needs life support on the ground. The trouble with the integration is wrought by none other than the need to iron out competition-rooted policies among the bloc’s members. While the integration of the EAC was intended to create a large market for trade, member countries are increasingly finding it difficult to freely open their borders as per the signed Customs Protocol. The reason for this is the obvious difference in the economic development of the member states. As matters stand, numerous non-tariff barriers still remain even after the...

Investors look beyond polls to pump billions into Kenya

Summary The investors say Kenya and Africa, in general, have a myriad of glaring opportunities that need to be tapped. Last December, the African Import and Export Bank (Afrexim Bank) said it wants to pump money into Kenyan firms in various sectors as the Pan-African lender eyes an increased role in the Kenyan economy. Despite mounting concerns on political and business risks associated with the looming August 2022 general election and the Coronavirus crisis, global private equity firms are pumping billions into the Kenyan economy as they look to reap returns in the medium to long term. The private equity (PE) firms — a class of investors keen on maximising profits — have stepped up their focus on Kenyan companies renewing hopes that Nairobi is back on the global radar as an investment hotspot. An increasing number of PE firms are now competing to unlock billions of investment deals in Nairobi. The investors say Kenya and Africa, in general, have a myriad of glaring opportunities that need to be tapped. “Africa is the place to be for European development financiers. It is a continent where jobs and investments are very much needed, and at the same time, it is the new frontier where opportunities abound, and life is getting better for millions of people,” Finnfund chief executive officer Jaakko Kangasniemi explained recently while underlining why Finland’s sovereign wealth company Finnfund has chosen Nairobi as a launchpad for its regional operations. “Some of our best and most impactful investments are in...

COMESA signs AU protocol

MBABANE - Secretary General of COMESA Chileshe Mpundu Kapwepwe is said to have signed the Protocol on Relations between the African Union (AU) and the Regional Economic Communities (RECs). Eswatini is among the 21 member States of the Common Market for Eastern and Southern Africa (COMESA). According to a correspondence from COMESA, the Protocol is meant to consolidate relations with the continental mother body. Witnessed by the Chairperson of the African Union Commission Moussa Faki Mahamat and East African Community (EAC) Secretary General Dr. Peter Mutuku Mathuki, the signing ceremony took place on February 4 this year at the AU Headquarters in Addis Ababa. The Protocol aims to, among other things; formalise, consolidate and promote closer cooperation among the RECS and between them and the AU through coordination and harmonisation of their policies, measures, programmes and activities in all fields and sectors in line with the principle of subsidiarity and complementarity. Signed Other Regional Economic Communities that have already signed the Protocol include the Economic Community of Central African States (ECCAS), the Community of Sahel-Saharian States (CENSAD) and the Southern African Development Community (SADC). This Protocol entered into force on November 10 last year after being signed by the Chairperson of the Commission and three Chief Executives of three Regional Economic Communities. Kapwepwe was in Ethiopia attending the 40th Ordinary Session of the Executive Council and the 35th Ordinary Session of the Assembly of Heads of State and Government of the African Union. The Assembly of Heads of State and...