Twenty years ago, I hoped for an Africa that would draw closer and forge forward boldly, despite a bag of mixed fortunes. Rwanda had just been blighted by genocide; the ubiquitous coup d’état still reared its ugly head in West Africa; although a tentative calm prevailed in Central Africa, political tensions simmered below the surface; Zaïre was in the throes of the ‘first Congo war’; the civil war in Somalia grew in magnitude and intensity; Ethiopia began an experiment in state-led macroeconomic planning; a democratic South Africa rose from the ashes of Apartheid, a veritable validation of the OAU’s ultimate goal of political liberation for Africa. An interim period of positive change ensued, a growth fuelled by new media including the Internet, greater multiculturalism and a stronger attachment to democratic principles. In March 2018, 44 of the 55 African Union Heads of State and Government enacted the African Continental Free Trade Area agreement (CFTA) in Kigali, Rwanda at its 10th Extraordinary Session, under the able leadership of H.E. President Mahamadou Issoufou of Niger, with H.E. President Paul Kagame of Rwanda as current AU Chairperson and H.E. Moussa Faki Mahamat, Chairperson of the AU Commission. Once in force CFTA will be the largest trade zone in the world, increase intra-African trade by 52% by the year 2022, remove tariffs on 90% of goods, liberalise services and tackle other barriers to intra-African trade, such as long delays at border posts. The end of colonialism in the early 1960s created 55 African countries...

JOHANNESBURG - Rwanda has told the US that it has the right to withdraw benefits of the Africa Growth and Opportunity Act (Agoa) following a decision by Washington to suspend duty-free status for Rwandan apparel products. The U.S. move came after East African countries resolved to raise tariffs on second-hand clothing imports in a bid to boost local manufacturing capacity. Kenya, Tanzania and Uganda have abandoned the joint position, choosing instead to save the economic benefits that accrue under Agoa. In a brief statement on Tuesday, Kigali said the US had the right to withdraw the benefits but that Rwanda would not reverse its decision to restrict imports of used clothes and shoes known locally as mitumba, the East African reported. “Agoa is a commendable unilateral gesture to African countries, including Rwanda, meant to promote trade and development through exports. The withdrawal of Agoa benefits is at the discretion of the United States,” it said. Agoa is a trade deal that allows beneficiary countries in sub-Saharan Africa to export their products to the US duty-free. It was enacted in 2000 to run to 2015 and was renewed to 2025. The decision by the US to suspend benefits instead of terminating Rwanda’s status as an Agoa beneficiary means that continued engagement on restoring market access and bringing Rwanda into compliance with the Agoa eligibility requirements will continue. Rwanda increased tariffs on imported used clothes from $0.20 to $2.50 per kilo in 2016, aiming to eventually phase out importation. Source: Business Report

KIGALI, Rwanda—The government of the Republic of Rwanda has responded to the news that came in early this week that the country has been withdraw as one of the beneficiary under the American African Growth and Opportunity Act (AGOA) project. In a statement posted on the government website, Rwanda said the notification by the United States on suspension of duty-free status for Rwandan apparel products under the African Growth and Opportunity Act (AGOA) follows a decision by East African countries to raise tariffs on second-hand clothing imports, in order to promote local manufacturing capacity in garment and other industries. AGOA is a commendable unilateral gesture to African countries, including Rwanda, meant to promote trade and development through exports. The withdrawal of AGOA benefits is at the discretion of the United States. The News Times Rwanda reports that in 2006, the Heads of State of Kenya, Rwanda, Tanzania and Uganda agreed to take measures to gradually phase out second-hand clothing. On 29th, March, 2018, AGOA posted a statement on its website announcing that the U.S. said it plans to suspend duty-free access to Rwandan textile imports because of the African nation’s refusal to lower trade barriers for American-made clothing and shoes. The suspension applies to all AGOA-eligible apparel products from Rwanda in 60 days, the U.S. Trade Representative’s office said in a statement on Thursday. It was quoted that the USTR last year began an “out-of-cycle" review to determine the eligibility of Rwanda, Tanzania and Uganda to keep their trade benefits...

NAIROBI, April 4 (Xinhua) -- East Africa's bloc on Wednesday lauded Kenya for being one of the first countries to approve the framework establishing the African Continental Free Trade Area (AfCFTA) which will create a single market for goods and services in the continent. The Inter-Governmental Authority on Development (IGAD) said the quick approval of the bill to ratify the AfCFTA demonstrates the strong political will of the Kenyan government to strengthen inter-African linkages on trade through the elimination of trade barriers to foster a liberalized single continental market. "The IGAD Secretariat also welcomes the signature of the African Continental Free Trade Area by all Member States of IGAD - Djibouti, Ethiopia, Somalia, South Sudan, Sudan and Uganda - and will endeavor together with the African Union to work alongside its Members States to facilitate efforts to enhance free trade within its respective region and across the continent," the bloc said in a statement. All the East African countries except Burundi which did not attend the Summit on March 21 in Rwanda signed all the three protocols. Only 22 member countries were required to sign the agreement to make the AfCFTA treaty operational. According to the Africa Union, AfCFTA aims to establish a single liberalized market that will spur industrialization, infrastructural development, economic diversification and trade across the continent that is home to some 1.2 billion people. IGAD said the trade pact which requires ratification by 22 countries before entering into force seeks to increase intra-African trade by 52 percent,...

The Rwanda n government has said the United States has the right to withdraw benefits of Africa Growth and Opportunity Act ( AGOA), responding to the suspension of its eligibility for apparel exports. In a statement issued on Tuesday, Kigali signalled that it would not reverse restrictions on importation of used clothes and shoes, including those from the United States. “The notification by the United States on suspension of duty-free status for Rwandan apparel products under the African Growth and Opportunity Act ( AGOA) follows a decision by East African countries to raise tariffs on second-hand clothing imports, in order to promote local manufacturing capacity in garment and other industries,” read the statement. AGOA is a commendable unilateral gesture to African countries, including Rwanda, meant to promote trade and development through exports. The withdrawal of AGOA benefits is at the discretion of the United States. While the decision was agreed by members of the East African community, Kenya, Tanzania and Uganda have since succumbed to pressure, choosing the economic benefits that accrue under AGOA. The AGOA trade program provides eligible sub-Saharan countries duty-free access to the United States on condition they meet certain statutory eligibility requirements, including eliminating barriers to U.S. trade and investment, among others. It was enacted in the US in 2000 to run to 2015 and renewed to 2025. “ AGOA is a commendable unilateral gesture to African countries, including Rwanda, meant to promote trade and development through exports. The withdrawal of AGOA benefits is at the...

The African Union recently announced the creation of a Continental Free Trade Area in Kigali, in what has been termed a historic event. The heads of 44 African nations signed the bill establishing the Free Trade Area, immediately fast-tracking Africa’s economy by 50 years. However, there is still some more work to be done for the African trade area to be ‘modern’. Other than the fact that intra-African trade is the lowest among its ilk in the world at 11 percent (which was a reason for the creation of the Free Trade Area),  the Continental Free trade area also needs to be digitized. In a world of high-speed internet, emerging technologies and economies, digital networks and data flows, and the traditional boundaries regarding trade will no longer suffice. Ventures Africa spoke to Microsoft’s Director for Corporate Affairs in Africa Mr. Louis Otieno last week on the sidelines of the Africa CEO Forum in Abidjan, Ivory Coast. He says Africa needs to digitize its Free Trade Area to enable it to incorporate at scale. “Digital data flows is what defines the economic area as opposed to traditional boundaries,” he said. “For Africa to complete globally with the likes of China, we have to incorporate at scale. We have a billion people, which makes us a viable market today, with the youngest billion people, which makes us a viable market tomorrow.” His solution to digitizing the CFTA is for African governments to initiate policies that would make it easier for data flows...

US President Donald Trump on Thursday announced plans to suspend the duty-free treatment of clothing imported from Rwanda under the African Growth and Opportunity Act (AGOA). In a letter to the US Congress, Trump says Rwanda’s duty-free status will end in 60 days, unless the East African nation lifts barriers recently imposed on used clothing imports from the US. Trump retaliates to Rwanda tariffs Last year, Rwanda was one of various East African nations – including Kenya, Tanzania, Uganda and Burundi – to create a policy seeking to end the import of used clothing and motor vehicles from the US and other western countries. Experts in Rwanda say the import of used clothes from the US is stifling the country’s own textile and fashion industries. Some also argue that the import and sale of second-hand clothing insults Rwandans’ integrity. However, it also supports an estimated 40,000 jobs in the US and the Trump administration is piling pressure on East African nations to soften their stance on used clothing imports. Uganda and Tanzania have already toned down their verdict on the issue, according to the Office of the United States Trade Representative. Rwanda now has 60 days to change its own stance or lose its duty-free status for clothes exported to the US. Trump points to AGOA agreement The Office of the United States Trade Representative says the president’s decision follows the verdict of a government review looking into the impact of Rwanda’s tariffs on second-hand clothing imports. Key players in the US used clothing industry filed a...

Cross-border traders are blaming Customs officials for harassment, high taxes, and inspection of their products by the customs authorities at the border points. According to the traders, the officials lack information on the Customs Union and the Common Market Protocol. The traders were speaking at the recently concluded 20-year anniversary celebrations of the East African Business Council in Nairobi. “Most of these officers do not understand what the Common Market Protocol entails. You will be charged taxes at the border on every product even when you try to explain that you are East African and it is not right,” said Charity Githinji, the managing director of Tandaza Tanzania Ltd. She said that although the one stop border posts have helped ease the cost and time of doing business, not all the Customs officers understand how they work. “If, for example, I am crossing the border from Tanzania to Kenya, I am subjected to checks on both sides instead of just one side,” said Ms Githinji. She cited the single tourist visa as one of the boosts for business in the region, even though only Kenya, Uganda and Rwanda have signed it. Hajjat Nakasujja, the chief executive of Aloesha Organic Natural Health Products, said there was a need to sensitise Customs officials on what free trade under the EAC entails. “New rules, regulations and agreements are passed but the information does not reach the border officials. This is where the challenge is,” said Ms Nakasujja. EABC chairman, Jim Kabeho recommended implementation of...

March 21 in Kigali, Rwanda, saw African leaders launch the biggest free trade agreement since the establishment of the Geneva-based World Trade Organization 23 years ago. The African Continental Free Trade Area is a culmination of an agreement reached in 2012 and the intense negotiations of African heads of government that started in earnest in 2015. Initially the accord was to be signed by 55 member states. Only 44 signed the document after Nigeria, Africa's biggest economy, absconded. Whichever way you look at it, Rwanda's President Paul Kagame, also the African Union chairman, rightly put it: "Some horses decided to drink the water. Others have excuses and they end up dying of thirst." The new free trade area brings together an estimated 1.2 billion people with a combined gross domestic product of more than $2 trillion. The draft agreement commits countries to removing tariffs on 90 percent of goods, with 10 percent of what they referred to as "sensitive items" to be phased in later. Crucially, the covenant liberalizes services and aims to address the perpetual problem of non-tariff barriers, which have become the biggest headache in intra-African trade. Such barriers come in the form of government laws, regulations, policies, conditions, restrictions or specific requirements or prohibitions that protect domestic industries from foreign competition. Once the bottlenecks are done away with, African states look forward to a situation where there will be free movement of labor and the establishment of a single currency like the eurozone monetary union of 19...

Delta Air Lines has said it added a second non-stop route from Lagos to the United States (U.S.), with the aim of boosting trade and commerce between both nations put at $9 billion as at 2016. The airline also affirmed that the move came as Nigeria opens up greater investment opportunities, as well as to provide business travellers more opportunities to reunite with families and friends.Records have shown that the U.S. is Nigeria’s largest foreign investor and the airline carried more than 89,000 passengers between Lagos and the country in 2017, while the new strategy is expected to increase the indices. Unveiling the new commercial schedules to newsmen last week, in Lagos, alongside the Commercial Director, West and East Africa, Bobby Bryan, the company’s Senior Vice President, Europe, Middle East, Africa and India, Corneel Koster, said the Lagos to New York-JFK route is planned to connect both financial headquarters. Launched on March 25, 2018, as the first ever direct operations on the route, he disclosed that the flights depart Lagos at 11.30p.m (23:30hrs) on Tuesday, Thursday and Sunday to arrive New York-JFK at 5.30a.m (05:30hrs), while in-bound flights arrive Lagos Monday, Wednesday and Saturday. According to Koster, the new arrangement will afford customers flying to Delta’s New York-JFK hub the benefit of over 20 connections across the U.S. to destinations including Washington D.C., Baltimore and Chicago, while also complementing the existing Lagos-Atlanta route with more travel options to and from the U.S. “With the U.S. the largest foreign investor in...