The inaugural chief executive of Trade Catalyst Africa, Duncan Onyango, spoke to Vincent Owino on the reasons behind the formation of the commercial arm of the non-profit Trademark Africa. What are the most pressing issues facing trade in Africa today? It is a fact that as Africans, we trade more with other countries outside the continent than with each other for a variety of reasons. But the main one is because the trade infrastructure has a lot of gaps in it. We have inefficient ports, poor roads, and border crossing takes much longer than it’s supposed to. The trade infrastructure gap is estimated at between $130 billion-$170 billion each year, with no sign of the funding gap diminishing. Also, the regulatory environment in many countries is not conducive. All these, combined with the non-tariff barriers, the net effect is the low trading volumes and export capabilities. Trademark relies heavily on donor funding for its projects, but the money from donors is not enough. We must appreciate the fact that a lot of money is needed, because we are starting from zero when it comes to building trading and export capability. We see a time when there will be less donor money, so the question we need to ask is: who else can pay to build these infrastructures we need for trade? If you turn to governments, their budgets are shrinking and not enough revenues are coming in. So, because the need is still there, we believe that the funding needs...

The meeting brings together Regional Economic Communities (RECs), Regional Mechanism (RMs) and member states to review the progress of the continental integration agenda. Egyptian President Abdel-Fattah El-Sisi is participating in the summit as the current chair of the New Partnership for Africa's Development (NEPAD). The meeting will explore ways to enhance integration, including promoting free movement and the African passport, as well as connecting infrastructure and financial markets. It will also explore establishing a common African market to accelerate trade, agriculture, establishment of businesses, and transfer of skills in Africa. To accelerate these efforts, the meeting will discuss the division of labour between the AU, RECs, RMs, and member states, anchored on the principles of subsidiarity, complementary, and competitive advantage. The division of labour is centred around six pillars: policy planning and formulation; policy adoption; policy implementation; monitoring, evaluation and reporting; resource mobilization; and partnerships. Also on the agenda will be the financing of Agenda 2063, focusing on Africa’s economic recovery and the implementation of initiatives to address challenges in agriculture, infrastructure, debt, climate change, security, energy, and health. This year’s meeting will be preceded by the meeting of the AU’s Executive Council on 13-14 July. The ministerial meeting will discuss the implementation of the African Continental Free Trade Area. It will consider next year’s theme (education); budget matters; African candidacies to international bodies; treaty ratification and implementation; the status of institutional reforms and Agenda 2063, among others. The Executive Council will also appoint some members of the African Commission...

The Council of Ministers of the Economic Community of West African States (ECOWAS) endorsed a regional e-commerce strategy for the organization’s 15 member nations on 7 July. The strategy will boost e-commerce in West Africa through specific measures responding to the needs of ECOWAS, identified by UNCTAD’s recent eTrade readiness assessment for the region. “The newly endorsed strategy is the beginning of a transformative journey, aimed at bridging the regional digital divide and boosting e-commerce development,” said Shamika N. Sirimanne, director of technology and logistics at UNCTAD. “It is a milestone that UNCTAD is proud to have supported, in the framework of our longstanding partnership with ECOWAS,” Ms. Sirimanne added. Multistakeholder process Developed through a multistakeholder and participatory process, the strategy aims at accelerating structural change and development, and fostering regional integration through economic diversification and job creation. “ECOWAS is committed to increasing the adoption and use of e-commerce to promote the implementation of the ECOWAS Vision 2050 for an inclusive and sustainable development for the region,” said Massandjé Toure-Litse, commissioner for economic affairs and agriculture at the ECOWAS Commission. “The e-commerce strategy will support the digital-driven structural transformation of the economies of Member States, and deepen regional trade integration,” the commissioner added. Boosting economic resilience ECOWAS member nations are Benin, Burkina Faso, Cabo Verde, Côte d’Ivoire, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, The Gambia and Togo. Among them, 11 are least developed countries that are generally more vulnerable to external shocks. The new strategy seeks to mitigate such...

Despite the potential of digitalisation in achieving regional integration, Africa experiences relatively slow adoption. Delays in clearing goods at countries’ borders and ports impede their timely and cost-efficient movement across the continent. Sub-Saharan Africa ranks lower in the border logistic index than the rest of the world. Import and export goods get delayed at borders due to administrative burdens and paperwork. One way to mitigate these challenges is by digitalising custom operations and clearance for efficiency and timeliness. Over the last ten years, digitalisation has become a driver of economy and innovation in the financial and telecommunication sectors in Nigeria, South Africa, Kenya, and Egypt. There is enormous potential in leveraging digitalisation to scale up the Africa Continental Free Trade Agreement (AfCFTA) and address barriers to trade across the continent. The free movement of goods and persons across borders is critical to the success of the AfCFTA. The ability of goods and people to move across borders efficiently characterizes a strengthened regional chain. AfCFTA heavily relies on moving people and goods across borders and ports. Goods sometimes pass through different borders as they undergo various value-addition processes before becoming finished products. A country’s readiness to trade is evident in the ease at which people and goods pass through its borders/ports. As observed across African borders, administrative issues like obtaining permits and clearance procedures are often daunting and time-consuming. These processes involve too many touchpoints in document verification. The long process often results in additional costs to importers and exporters. The...

Nairobi — The United Kingdom's (UK's) trade body, the Institute of Export & International Trade (IOE&IT), has opened its first office in Nairobi with a focus on trade and training. The Kenyan office will also act as an expansion pad on the African continent. Its entry into the country follows the signing of the UK-Kenya Economic Partnership Agreement. IOE&IT has developed and delivered training, education, and consulting services on the continent. The opening of the office follows the successful delivery of educational courses, with IOE&IT delivering qualifications in Kenya, Ghana, and Nigeria. "This new office, our first in Africa, is an exciting development of our growing partnership," IOE&IT Director General Marco Forgione said. "I look forward to using all our knowledge, expertise and experience to support Africa's entrepreneurs grow their intra-Africa and international trade." The launch of the event took place at the Deputy British High Commissioner's Residence (Air House), with Josephine Gauld, Deputy British High Commissioner to Kenya and Permanent Representative to the UNEP and UN Habitat, in attendance. The Institute has worked with the International Trade Centre, along with the Ghana Export Promotion Authority, the Nigerian Export Promotion Council, and the Kenya Export Promotion and Branding Agency. In partnership with TradeMark Africa and the IOTA Foundation, IOE&IT has developed an interoperable digital supply chain infrastructure, the Trade and Information Pipeline (TLIP). IOE&IT has successfully led a Consortium of experienced technology, traders, logistics, and supporting partners to test a pilot scheme to implement improvements on end-to-end supply chain processes...

The EAC Secretary General in charge of Customs, Trade and Monetary Affairs, Annette Ssemuwumba, unveiled the One Stop Border Post Performance Measurement Tool on behalf of the EAC Secretary General, Dr. Peter Mathuki, during the opening session of the 14th African Union High Level Private Sector Forum that is taking place in Nairobi, Kenya this week. Ssemuwemba announced that the tool is now ready for use and that Partner States and stakeholders will embark on data collection, sensitisation on use and full roll out. OSPBs are an important infrastructure at border crossing points and contribute to spur intra-regional trade by reducing the costs of doing business through reduction of time and costs taken to cross borders. Further, OSBPs eliminate multiplicity of documentation associated with two-stop border posts’ bureaucracies. Lack of data to inform decision making on major aspects such as OSBP performance, human resources and state of the physical and digital infrastructure have often slowed down collective action for optimal performance of existing OSBPs. The OSBP Performance Measurement Tool will involve a range of measurements including time spent on administrative procedures, reduction of transport costs, reduction of inventory costs, and an increase in revenue collection and trade. Customs administrators in the EAC region will use the data generated by the measurement tool to assess OSBP performance and institute improvement strategies.  Specifically, the tool has been developed to provide the necessary mechanism to measure the performance of OSBPs on six fronts, namely: Time, Cost, Volume/ Throughput, Infrastructure, Inter-Agency Coordination and User...

While member countries have made huge progress in increasing intra-EAC trade, which has grown to $10.17 billion as of last year, numerous tariff and Non-Tariff Barriers (NTBs) still exist. The Northern Corridor Transit and Transport Coordination Authority (NCTTCA) have led the region in ironing out NTBs, while legislators put policies in place to address tariff issues. NCTTCA authority facilitates and promotes trade and transport to reduce regional business costs. The East African Community has a long history of cooperation stretching back to 1900 when a Single Customs Collection point was established at Mombasa. Still, Non-Tariff Barriers remain a challenge to trade. The first instance of regional integration dates back to 1917 between Uganda and Kenya. Tanganyika joined later in 1919. After independence, the East African Community was established in 1967, which due to several factors, collapsed in 1977. Notwithstanding the collapse, the East African Community recorded numerous successes, including policy, institutional and operational programmes. Acknowledging the centrality of regional integration to development, the Heads of State of Kenya, Uganda and Tanzania met in 1999. They signed a Cooperation Agreement culminating in a fully-fledged East African Community in 2000. The scope of the East African Community Treaty includes economic, social, cultural and political spheres. “The integration process is progressive starting with a Customs Union as the entry point followed by Common Market, Monetary Union and Political Federation,” the EAC secretariat notes. Challenges in trade While member countries have made huge progress in increasing intra-EAC trade, which has grown to $10.17 billion...

Issuance of passports for free to East African Community (EAC) citizens is one of the practices that can boost air travel in the region, a study published by A regional private sector lobby suggests. Airlines in the region can also consolidate, going the European or American way, which the study by the East African Business Council (EABC) notes, would stimulate passenger and cargo movement by air. The study, which analyses aviation laws, reports and academic publications, pokes holes into the current industry practices against the cost of operations and the push for open skies initiative. https://www.youtube.com/watch?v=P8slRBiwlL8 It is titled Study on Air Space Liberalisation in the East African Community: Focus on Cost Drivers and Regulations. The study, commissioned by EABC in partnership with Trade Mark East Africa and funded by Kenya’s Ministry of Foreign Affairs and the Dutch government, focused on six areas - operational costs, existing air transport regulations in EAC, effects of domesticated EAC space, benefits of adoption of the EAC Single Space Agreement and the impact of aviation costs on cargo volumes and evaluation of best practices in other regions. One of the best practices suggested in the study published in April is the consolidation of the airline business in the region through mergers and acquisitions. It argues that airline consolidation, mergers and acquisitions in the United States and Europe resulted from the need to stimulate growth within the industry. “It is a practice that can be adopted,” reads the study. It documents that from 2000 to 2010, the...

  The East African Community (EAC) has initiated a campaign aimed at raising awareness about the trade opportunities in agricultural exports generated by the EU-EAC Market Access Upgrade Programme (MARKUP). The campaign targets small and medium-sized businesses (SMBs) involved in the agricultural supply chain, as well as cooperatives, farmers, and government agencies within the EAC. It aims to provide them with valuable information and resources concerning agri-export trade. During the campaign launch, Ms. Flavia Busingye, Acting Director of Customs at the EAC Secretariat, expressed that MARKUP has opened numerous trade prospects for agri-SMBs in the region. She emphasized that since its inception in 2018, MARKUP has facilitated the growth of agri-exports in five EAC Partner States, namely Burundi, Kenya, Rwanda, Uganda, and Tanzania. MARKUP, a collaborative effort between the EAC, the EU, the German government, and other development partners, has developed several resources to support the expansion of the agricultural export industry. Notable resources include the EAC Quality Portal, the Financing Gateway, and the Burundi Trade Information Portal. The program has also conducted market studies, published practical guides, handbooks, and policy briefs. Ms. Busingye added that MARKUP has played a significant role in strengthening the region’s quality infrastructure, particularly in harmonizing standards and frameworks for intra-regional trade in food products. She encouraged active participation in the campaign through various communication channels and platforms. Ms. Busingye further acknowledged that small and medium-sized enterprises (SMEs) in the agricultural sector encounter various challenges when conducting trade within the East African Community (EAC). Among...

President Paul Kagame has requested African leaders to move with a sense of urgency in the implementation of the African Continental Free Trade Area (AfCFTA) to boost economic value on the continent. He was speaking during a televised conversation dubbed ‘Ask the President’ on the national broadcaster, on Tuesday, July 4, where he got to answer some of the national key concerns across different sectors. With the operationalization to establish a unified market of 1.3 billion people and a GDP of around $3.4 trillion in 2021, the AfCFTA is poised to become the world’s largest free trade area with 55 member states. However, some of the important protocols of rules of origin have not yet taken shape while about 47 countries have ratified their instruments of AfCFTA agreement. Kagame said that having AfCFTA that works for everybody is still hindered by some legacy problems and misinterpretation of what the agreement means whereby countries stick to protecting the sovereignty and miss out on opportunities presented. “Your sovereignty is just a name if it does not entail freedom of people to work within and across the countries,” he emphasized. Political will is always going to be important because it is what will allow freedom of movement of people and goods, he added. “If we can have people cross borders with what they produce and the others do the same, they benefit more with having such a big market. AfCFTA is a huge asset and not a liability.” In his view, having the...