As part of efforts to build a more resilient regional economy largely depends on several factors. What specifically is under discussion here is the Economic Community of West African States (ECOWAS), and  the strategic mechanism through which the region’s economy can be raised up to standard, taking cognizance of the fast growing population and its associated demand for employment and ensuring food security as well as sustaining certain level of appreciable living standards. Understanding explicitly the enormous untapped resources, both natural and human, is very essential and indivisible interconnected to the West African region’s development. As we know, there are 16 member states constituting the regional bloc, ECOWAS. As mid-July 2023, the World Population Review and the World Atlas, both estimated population 439 million. More than half of the population is under the age of 25. In fact, Africa’s population is exceptionally young compared to other world regions that have been aging at a fast rate, and demographers indicated that the region’s population will experience either steady or rapid growth. For three decades, at least, in our faculty academic studies and research, part of the written research papers at conferences unpack lessons on the relationships between demographic growth and economic development in Africa. That is to say Africa’s demographic profile has played a key role in its development. Specifically for West Africa, governments have to capitalise on its demographic profile through policies, engage them with them in various sectors especially in food production sectors for two main reasons: to ensure...

President Filipe Nyusi on 4 August inaugurated a road in Mueda district, in the northern province of Cabo Delgado, which provides easier access to the border with Tanzania. The 70-kilometre paved road runs from Moma to Negomano. It ends at the Unity Bridge over the Rovuma River, which forms the boundary between Mozambique and Tanzania. The first stone for the new road was laid in October 2018. It was budgeted at two billion meticais (US$31.3 million), and financed by the African Development Bank (ADB). President Nyusi told the ceremony that the road will facilitate trade and the movement of people between the two countries. It would reduce journey time and the cost of maintaining vehicles. "This road will facilitate national, international and cross-border trade, contributing to an increase in incomes, and a growth of the economy", he stated. Paving the Roma-Negomano road, President Nyusi continued, is part of the government's vision of connecting the entire country by road, "from the Rovuma to the Maputo" (the rivers marking Mozambique's northern and southern limits), from the village of Negomano to the resort of Ponta de Ouro (on the frontier with the South African province of Kwazulu-Natal). "The Roma-Negomano road is a palpable asset for implementing the goals of the African Continental Free Trade Area", the President added. He believed the road will stimulate tourism since it is near the eastern end of the Niassa National Reserve, the country's largest conservation area. It could also develop agricultural value chains and promote the industrialisation...

THE East African Business Council (EABC) together with Afreximbank entered a strategic partnership aimed at fostering Intra-African trade and regional economic integration to maximise opportunities between the country members. According to a statement issued by EABC on Wednesday, the agreement will raise awareness among small and medium-sized enterprises (SMEs) especially the youth and women in business about African Continental Free Trade Area (AfCFTA) Protocols and its significance for business growth. Speaking at the sensitisation workshop for the SMEs held yesterday, EABC’s Executive Director and CEO, Mr John Bosco Kalisa said Business within the EAC has been doing well despite the financial challenges attributed to the Covid-19 and the Russia-Ukraine conflict such that the agreement will continue flourishing businesses. “The East African bloc has shown economic resilience despite Covid-19 and the Russia-Ukraine war,” said Mr Kalisa. He stressed that the purpose of such workshops is to focus on trade facilitation procedures and strategies to access markets effectively under the African Continental Free Trade Area (AfCFTA). He further urged the governments of the EAC Partner States to continue improving the business environment for youths to be innovative and drive integration and prosperity in Africa. Under the partnership, the two bodies will promote the implementation of the AfCFTA by engaging in specific activities that strengthen the private sector’s capacity, enhance trade facilitation and unlock new opportunities for businesses across East Africa. On his part, the Assistant Commissioner, Technological Research and Innovation/MSME, Ministry of Trade Industry and Cooperatives Uganda, Mr Okot Okeello Richard said...

If the Covid-19 pandemic demonstrated our interdependence and hyper-connectedness, Russia’s war in Ukraine and its economic consequences have further underscored that no country or region can stand alone. We are all integrated – politically and by trade and investment linkages – into the global economy. Given growing awareness of this, policymakers around the world are rethinking their approach to sustainable development and re-examining the role of multilateral development banks (MDBs). These institutions are of course still relevant. But whether they are fit for purpose in their current form is open to debate. To determine how MDBs can best support developing countries, let us consider the difficulties facing Nigeria, where I served as minister of finance, budget, and national planning from 2019 until this year. During the pandemic, more of our citizens were pushed into poverty, and our economy faltered. The breakdown in global supply chains caused the price of crude oil, our largest export product, to crash, tipping Africa’s largest economy into recession. The economy rebounded after a series of reforms, but Russia’s war in Ukraine now confronts us with higher food, oil, and fertilizer prices. Nigeria is also dealing with fiscal stress, exacerbated by historically low non-oil revenues and adverse global economic conditions. A significant portion of the country’s revenues goes toward servicing its debt, and rising interest rates are pushing up debt-service costs further. Against this backdrop, our biggest challenge is getting the economy back on track and ensuring that our citizens live dignified lives. MDBs, including the...

Earlier this month, United Bank for Africa (UBA) Plc, signed an agreement with the Africa Continental Free Trade Area (AfCFTA) Secretariat to provide financing to Small and Medium scale Enterprises (SMEs) across Africa. This partnership seeks to address a critical challenge hindering SME growth on the continent: the lack of financial access and other obstacles such as non-tariff barriers, inadequate infrastructure, digital technology adoption, limited logistics networks, and regulatory disparities across countries. The AfCFTA is actively addressing these challenges, aiming to unlock the full potential of SMEs and drive their growth, while strengthening Africa’s regional value chain. In December 2021, Kenya imposed a ban on Ugandan poultry products, prompting Uganda to respond in kind by banning Kenya’s agricultural exports. This non-tariff barrier significantly hampered trade between these East African countries until earlier this year when Kenyan President William Ruto reversed the ban on Ugandan agricultural produce. Similarly, West Africa’s trade relations faced challenges following the closure of Nigerian land borders in August 2019 to curb smuggling. Although some borders reopened in December 2020 during the COVID-19 pandemic, the protectionist policy affected Nigeria’s exports and balance of trade. The policies implemented in Kenya and Nigeria had a profound ripple effect on SMEs within and outside these countries, forcing some to shut down or seek alternative markets for their goods. Mozambique’s initially commendable introduction of the Temporary Import Permit (TIP) has now become a significant hindrance for individuals and businesses involved in transit cargo from South Africa to the Port of Maputo. The manual processing of TIPs at the entry point incurs...

President Paul Kagame on Thursday, August 3, issued a rallying call to fellow African leaders saying that governments must step up and enact enabling investment policies, to be able to attract major impactful investments such as the just-inaugurated Anjia Prefabricated Construction Cement Factory in Muhanga district, Southern Province. “That’s what we have been doing here in Rwanda for a number of years,” he pointed out. The Head of State made the call shortly after launching and also touring the $100 million facility which targets an annual output of a million metric tonnes output in order to address the supply deficit in the market. The development is part of the investments made by the West International Holding Ltd, a subsidiary of China West Cement Group. Already the company’s initial injection of over $50 million has seen the setup of a high-performance cement grinding station system with two kinds of Cement; the CEM II/A-M 42.5 Ordinary Portland Cement as well as the CEM II/B-M 32.5 ordinary Portland cement. Following a guided tour, President Kagame commended West China Cement Group’s commitment to the infrastructure development of “not just Rwanda but our continent.” “Over the years, West China Cement, and West International Holding, the company have become key players in Africa’s efforts to reach self-sufficiency in cement production,” he added. “Earlier I had the opportunity to tour the plant, you have set the bar high in terms of quality and we appreciate that.” Prospects look promising The African cement, concrete and construction business is...

Early this year, President William Ruto hinted at scrapping visa restrictions for African travellers within the continent. In his speech during the opening of the Private Sector Dialogue on the African Continental Free Trade Area (AfCFTA), the President stated that Africa must work towards integrating more, eliminating barriers to international trade and pushing for the establishment of a more secure, reliable and efficient cross-border payments system that will deepen financial inclusion and foster growth in the continent. “This is home. We support wholeheartedly the AfCFTA and we must remove any impediments to the movement of people around our continent. Africa presents an attractive and expansive market for investors seeking new business opportunities,” President Ruto said. In his commitment to ensure that this happens, the president has ensured that more countries allow Kenyans to travel without visa restrictions. Apart from South Africa, Eritrea, Senegal, Comoros and Djibouti, are now on the list. Consequently, according to the latest Henley Passport Index Report, the Kenyan passport has improved six places in the global mobility rank to position 67 from 73 and now occupies the seventh position as one of Africa’s most powerful passports. Destination of choice When it comes to tourism, there has been an impact to business operators who offer packages in regional travels. For instance, following the removal of the visa restrictions to South Africa, it is said that close to 10,000 Kenyans visited South Africa in the first quarter of the year. Data released by South Africa Tourism indicate that...

Food prices remain relatively high in Africa from the economic turbulence occasioned by the Russia-Ukraine war and the Covid-19 pandemic, but in Kenya, they are alarmingly high. Data from the UN Food and Agriculture Organisation (Fao) shows that globally food prices have substantially decreased since the peak in March 2022, and continue on a downward trajectory. The Fao Global Food Price Index, which measures the change in prices of a basket of five food items – including meat, dairy, cereals, oil and sugar – has dropped by 37.4 points since March 2022. In Kenya, however, the inflation rate was 7.9 percent in June, driven mostly by a rise in prices foods and non-alcoholic beverages, which have increased by 10.3 percent since last year, according to latest data by the Kenya National Bureau of Statistics (KNBS). Other countries in the region, although still grappling with inflation, are recording easing food prices, albeit at a pace slower than the global food prices. Tanzania, for instance, reported an inflation rate of 3.6 percent in June, a slowdown from the 4.0 percent in May. Food prices increased by 7.8 percent in the past year, but are on a downward trajectory, having fallen by 0.3 percent between May and June, figures from the National Bureau of Statistics show. Uganda trends In Uganda, general consumer prices, including food, have relatively been stable for the past six months, based on data from the Uganda Bureau of Statistics. So, why are Kenyan consumers still paying so much for food?...

The South Sudan Public Procurement and Disposal of Assets Authority (PPDAA) says its board members are currently visiting their counterparts in the East African Community (EAC) to benchmark on their procurement systems. Speaking during a visit to the PPDA Offices in Kampala yesterday, Mr Deng Akuei Kak, the executive director PPDA, said they seek to understand the procurement systems used by their peers before they can join the East African Public Procurement system. “We have come here to meet our counterparts. We came as a board because we are joining the East African Public Procurement System. Uganda has offered us the experience they have so that the delegation gets to know the procurement system in East Africa based on South African law,” he said. Mr Deng explained that when the East African Community member states made the laws, South Sudan was not part of the process but now they have come here to complete the process, study the documents and see how the systems run before they can establish their own. According to Mr Benson Turamye,  the executive director of Public Procurement and Disposal of Public Assets Authority Uganda, they shared with their South Sudan counterparts the procurement reforms that they have implemented since 2003. “South Sudan got independence in 2011 and they established the PPDA Act in 2018.They do not have regulations and structures but they have established an office equivalent to PPDA Uganda; they have 26 staff running the body,” he said. Mr Turamye said it is important...

The stewardship of the Tripartite Free Trade Area (TFTA) has changed hands with COMESA handing over the chair of the Tripartite Task Force (TTF) to the Southern African Development Community (SADC). The handing over was conducted on 14 July 2023 during the 36th TTF meeting on the sidelines of the 5th Africa Union Mid-Year Coordination Review Meeting in Nairobi, Kenya. COMESA Secretary General Chileshe Kapwepwe handed over to her SADC counterpart Amb. Alias Mpedi Magosi. The TTF is responsible for the coordination of the TFTA programmes, and its leadership rotates among the chief executives of the three regional economic blocs.  COMESA took over the chair from the East African Community in July 2022. Speaking at the function, Ms Kapwepwe underscored the importance of the Tripartite FTA in addressing economic development challenges and fostering Africa’s continental economic integration. She highlighted the achievements realized during COMESA’s tenure under the three pillars of the tripartite, namely market integration, infrastructure development and industrial development. Specifically, under market integration pillar, she said 11 Member States have so far ratified the Tripartite FTA and that only three were required to reach the requisite 14 ratifications.  Substantial progress has however been realized under negotiation of Tripartite Rules of Origin and developing of systems to address non-tariff barriers to trade. She emphasized the need to strengthen coordination and collaboration between the TFTA and the AfCFTA processes to avoid duplication of efforts, wastage of resources and possible conflicts. She thanked SADC and EAC Secretariats for their steadfast support in...