It is too early to be certain, but this may be the first sign of African countries using Brexit to renegotiate and leverage fairer trade terms. The last few months have seen some significant developments for African trade and integration. These advances come at a crucial time for African countries, which have been particularly hard hit by the slump in commodity prices, China’s economic downturn, and higher external borrowing costs. This has resulted in slower GDP growth than expected, currency fluctuations and reduced investment – particularly in resource-rich countries. New dynamics are emerging as a result of two major developments: first, a set of agreements between regional African blocs and the European Union, as well as between African countries themselves. Second, Brexit may change the thrust of African trade with both the EU and Britain. Combined, they are likely to have some positive economic implications for Africa. Intra-African trade has comprised about 15% of Africa’s total trade over the last decade. This compares with intra-regional trade rates of, for example, 17% in South and Central America, and 62% in Asia. African exports to the EU have increased substantially in recent years, from €85 billion in 2004 to more than €150 billion in 2014. The recent trade and integration developments should raise economic activity and competitiveness in non-extractive sectors, leading to higher GDP growth and greater economic diversification. They are intended to boost intra-African trade, particularly in goods, and may increase African trade with the EU and Britain. Trade to drive...

In this special report, Dr. Einir Young and  Jalia Nabukalu Packwood of Bangor University, take a look at the market challenges and development issues facing used clothing exports and East Africa. The Textiles Recycling Conference in London will hear more about this market (see the conference website for more details). In March 2016, the heads of state of the East African Community (EAC) agreed to phase out the importation of used textiles and leather products from third countries within three years (by 2019), with the view of promoting vertical integration of the industries in the textile and leather sector within the EAC. When looking at this decision from the outside, one has to wonder why the EAC leaders came to such a conclusion given that almost 80% of the population of some EAC countries such as Uganda purchase used clothes and the trade employs thousands of people who would otherwise be without work. It isn’t clear how it will be possible to grow the new textile and leather industry in the EAC as the appropriate infrastructure to support the sector’s growth is limited. This directive and previous EAC policies aimed at stopping the trade in used textiles is not good news for the UK textile recycling sector or that of Europe, America and other exporting countries. UK charities, textile sorters, processors and traders have been affected as a result of a reduction in demand and falling prices per bale.  This in turn threatens the progress made in the UK and...

East Africa is set to be the fastest growing region in Africa this year after posting a regional growth rate of 6.7 percent, prompted by the sharp rise is cement use. Throughout the region, the use of cement has been on the rise as construction sites crop up. Kenya National Bureau of Statistics (KNBS) data shows the consumption of cement in Kenya reached 5.23 million metric tonnes in November 2015, slightly higher than the 5.19 million metric tonnes registered in 2014. The data show construction sector grew by 11.3 per cent in the first quarter of 2015 compared to a growth of 7.6 per cent in a similar period in 2014. The construction sector is estimated to have expanded by 14.1 per cent between July to September compared to a growth of 8.8 per cent in the same period of 2014. The growth was on account of increased public infrastructure projects and private sector development in the real estate sector. In Uganda, cement consumption is expected to increase by at least 12% over the next 3 years. Tanzania has made great strides in improving its infrastructure with the cement industry being a key beneficiary of the building boom. The East African governments are now focused on infrastructural delivery and ways to close the most important infrastructure gaps in planning for new cities. Both the transport and power sectors have critical infrastructure needs in the region and ICT infrastructure is another growing sector now considered key to development. Africa has the...

By Sam Okwakol Trade in professional and education and health services features high on the agenda of policy makers and regional organizations in Sub-Saharan Africa, but a host of roadblocks are in the way preventing this from happening. For example, according to 'The Unexplored Potential of Trade in Services in Africa' a report commissioned by the World Bank, all five East African Community (EAC) countries have committed to removing the most explicit barriers to trade in education and health services as part of the 2010 EAC Common Market Protocol. Several EAC countries have placed professional services at the top of the list to be integrated in the EAC Common Market. But despite progress in recent years, most regional services markets remain fragmented by restrictive policies, such as nationality requirements, and regulatory heterogeneity (these are non-tariff barriers that originate from national regulations), for licensing, qualification, and educational requirements. Critics say the central issue is 'protecting one's turf'. Lawyers, accountants, doctors and the other professionals do not want nationals from neighbouring EAC member states upsetting their cosy relationships. Consequently, several barriers, beyond perhaps a lengthy accreditation process, are then put in place to frustrate allcomers. Despite strong demand for services provided by foreign suppliers, undertaking trade is not easy. Multiple barriers are placed on the physical movement of service suppliers, including high-priced visas, difficulties obtaining work permits, and elusive residence status. To circumvent such barriers, most services providers form networks. For instance, Tanzanian Maasai hair stylists organize themselves to avoid these restrictions...

EAC countries have been advised to build the capacity of Agro processing industries in respective countries, so that they can be able to cope with emerging issues of climate change. Effects of climate change on the industry include reduced raw materials due to either prolonged dry spell or flooding which all lead to food losses among others. The call was made by the minister of state for Industry in the ministry of trade, Michael Werikhe Kafabusa while officiating at the first PACT EAC regional meeting at Silver Springs Hotel recently. It was organized by SEATINI Uganda and CUTS International. The project Promoting Agriculture climate Trade (PACT) linkages in East Africa Phase2 builds capacities of East Africans for climate change awareness, trade driven, and foods security enhancing agro processing in the region. Werikhe said that Agro industrial development presents substantial prospects for the region generating economic growth, new sources of food and income leading to poverty reduction. "It is therefore important to support them through capacity building so that they are aware of the realities of climate change in their works and prepare them so that they can remain productive in the face of effects of climate change," said Werikhe. According to the minister, the first phase of the PACT EAC project have already influenced Uganda Policy, notably the National Trade Sector Development plan which has a linkage between climate change to food security. He told participants to identify key agro processing sectors so as to ably advocate for them with...

Arusha — The East African Legislative Assembly (Eala) has passed a resolution to make Kiswahili an official language of the East African Community alongside English. The resolution sailed through after hours of heated debate at a special session held here on Thursday evening during which, the lawmakers underscored the need to elevate Kiswahili as one of the official languages of EAC from the current status of lingua franca. The motion to recognise Kiswahili as one of the official languages of the Community was tabled by three legislators being Mr Abdullah Mwinyi and Ms Shy-Rose Bhanji, both from Tanzania and Mr Abubakar Zein from Kenya. "It is our conviction that the Heads of State of EAC will endorse this motion to enable amendment of the EAC Treaty which has only English as the official language," said Ms Bhanji when she moved the motion before the House before it adjourned for the weekend recess. Pressure is mounting and intensive lobbying is already underway to have the issue brought up before the Extra-ordinary Summit of the regional leaders slated for Dar es Salaam early next month. After a heated debate in the House the legislators eventually agreed that the move to legalise Kiswahili as one of the official languages was long overdue and for it to be realised, the EAC Treaty has to be amended. The outspoken legislator said Kiswahili played a big role in uniting the people of EA from the pre-independence days and that, even the colonial administrators did not lose...

Rwanda’s informal cross border exports continue to surge by 28.3 percent in the first half of 2016, despite trade hiccups since the beginning of 2016 before climaxing in July with Burundi closing its trade borders. Central bank of Rwanda indicates in its half year results that the country’s informal cross border  export receipts which accounts  for  24.6% of  its total  exports amounted to U$ 66.2 million in the first half of 2016 from U$ 51.6 million in the same period of 2015. Informal trade captures trade between borders that is normally done by communities around borders and may not be recorded among the country’s main trade statistics but is the trade driver along the borders. Over 75 percent of this trade is done by women. Democratic Republic of Congo accounts for 65.8% of Rwanda’s total informal cross border exports, while Uganda accounted for 26.9% and Tanzania, 7.3 percent. Informal trade with Burundi is lagging behind with 0.03 percent. The positive outlook in total informal export receipts John Rwangombwa, Governor of Central Bank says “is due to the high exportation of livestock as well as mobile phones to Uganda,” with Uganda taking over from Burundi. In July this year, second vice president of Burundi, Joseph Butore warned that any local leader or police officer who will endorse export to Rwanda “will have problems”. While this declaration was just a public announcement, Rwandan communities neighboring with Burundi told KT Press that trade with Burundi; the smallest economy in the region has been...

President Uhuru Kenyatta and Japan's Prime Minister Shinzo Abe witness the signing of agreements between Kenya and Japan at State House, Nairobi. /PSCU   A total of 73 Memorandums of Understanding were signed during the 6 th TICAD conference that came to a close on Sunday in an unprecedented move to boost trade between the African continent and Japan. This follows closely the Asian economic giant’s pledge to commit three trillion shillings in public and private support for infrastructure development, education and healthcare expansion in Africa. The package would be spread over three years from this year and include one trillion shillings for infrastructure projects, to be executed through cooperation with the African Development Bank. Another two trillion shillings would be injected by private investors, and included some of the MOUs signed on Sunday. The three trillion is in addition to the 3.2 trillion that Japan pledged to Africa over a five-year period at the last TICAD meeting in 2013. Japan Prime Minister Shinzo Abe said 67 per cent of the previous funds that his country had pledged to Africa had already been put to use in various projects. Under the MOU signed Sunday, the funds will focus on infrastructure, education, health, agriculture, ICT and mining among other sectors. The funding is in addition to measures taken by Japanese businesses as well as the governments of Japan and African countries and relevant organizations, to promote Japanese business activities in Africa. The 73 MOU’s involve 22 Japanese companies and universities with...

The EALA lawmakers said dissolution of key units at the EAC secretariat had interrupted the critical projects on climate change mitigation, and they wanted it revived. climate changeShy-Rose Bhanji, an EALA member from Tanzania, said without climate change programs, the region’s environment, including flora and fauna, would be at risk. “Let us take an example of Mount Kilimanjaro whose ice is diminishing at the moment due to the impacts of climate change. A day may come when the mountain has no ice or water. There is a dire need to re-establish the unit,” said Bhanji. Abubakar Zein, an EALA member from Kenya, said revival of the EAC climate change program should go hand in hand with the creation of a budget line for it. Dora Byamukama from Uganda said: “We should move beyond mitigation to include adaptation, which requires us to look at green housing, irrigation and planting of seeds among others.” Enditem Source: News Ghana

Recently I was in an argument with some friends who insisted that since such an influential country like  Britain is abandoning the European Union, why bother with the East African Community? It is sometimes forgetten that long before the EU, the former East African Common Services arrangement was working out quite will until nationalisitc politics set in. Imagine where we would be after 50 years! With all due respect to the British decision, it does not mean economic integration cannot work. One only has to see what this region hwas achieved during the past 17 years. Even better, East Africans  should look further afield across Africa and see how the rest are faring. The EAC has many problems, which eventually we will solve, but the point is that regional integration has boosted the profile of our part of Africa. International multilateral bodies talks about the EAC with some respect. Many are willing to lend a heling hand, in terms of financial and technical know-how to make sure we have the best chances of suceeding. Without a doubt, Brexit was a blow to the concept of integration, but in my opinion, being on an island with a long history, the British never really got used to having to kowtow to ‘faceless’ beings in Brussels. Source: Business Week