Trade among East African Community states has declined by 31.4 per cent, thanks to non-tariff barriers and increasing imports from Asia. A new report by the United Nations Economic Commission for Africa (Uneca) shows that intra-EAC trade fell to $2.4 billion in 2017, from $3.5 billion in 2013, with Kenya and Tanzania being blamed for the decline.The situation may not change soon, as partner states grapple with trade and political tensions between Rwanda and Uganda over the lock down of the Gatuna border post; and Rwanda and Burundi continue to differ over security matters. Read more. Source| The East African
The 7th edition of the Africa CEO Forum has officially opened in Kigali Rwanda with business leaders and trade experts calling for more reforms to make the continent more attractive to investments.The forum, which is arguably the continent’s largest international meeting of Africa’s private sector, has brought together more than 1,800 CEOs from top companies, international investors, experts and high-level policy makers from the continent and beyond. Read more. Source | EA Business Weekly
Tanzania and Kenya are yet to resolve the standoff over the testing of goods crossing their borders, subjecting traders from both countries to increased losses. “I have spoken to my Tanzanian counterpart on the release of goods from both sides, pending consultations on a bilateral basis. Although the actual process has to be followed there is no need of holding goods in a manner that is painful to traders,” said Adan Mohamed, Kenya’s EAC Affairs Cabinet Secretary told the East African. Read more. Source | The East African
The private sector in Tanzania has called for expedited harmonization of standards among East African countries to ease trade between member states and increase trade volumes.Tanzania Private Sector director for membership service Louis Accaro said that they have been pushing for harmonization of standards between Tanzania, Uganda and Kenya for many years and they will continue to do so to benefit traders from all countries. Read more. Source | East African
The Extraordinary Summit on the African Continental Free Trade Area (AfCTFA) that took place in Kigali, Rwanda last year brought together African leaders during which the agreement for establishing the free trade area was presented for signatures. The agreement was signed by 44 of the 55 African Union (AU) member states adding another 5 during the AU summit in Mauritania in June bringing the total number of committed countries to 49 by the end of July 2018. The Continental Free Trade Area (CTFA), will unleash Africa’s potential assembling a population of 1.2 billion people, with a GDP of $3.4 trillion as the world’s largest free trade area since the inception of the World Trade Organisation (WTO). Read more. Source | The Eaxchange
The East African Business Council (EABC) has said they have started moving across EAC member states to understand why goods and services are not moving freely as envisaged. Speaking at the CEO’s roundtable breakfast meeting yesterday, Mr Peter Mathuki, the EABC chief executive officer, said they want to understand why goods and services are not moving freely within the East African region yet we claim to be a regional market without trade barriers. Read more. Source | Daily Monitor
Ethiopia is the latest country to approve the African Union’s Africa Continental Free Trade Area, AfCFTA pact after the cabinet passed the deal on Saturday, the Prime Minister’s office confirmed.
The PM’s office said: “The decision is consistent with PM Abiy’s vision of creating a closer & full regional integration — where minds are open to ideas & markets are open to trade. Ethiopia’s decision & track record of advocating Pan African causes will bring to reality an integrated Africa.” Read more. Source | New Times
Sub-Saharan Africa is among regions in the world projected to record accelerated economic growth in 2019, amid a slowdown in global growth precipitated by heightened trade tensions and rising interest rates in the US. The International Monetary Fund says that GDP growth in sub-Saharan Africa will rise from 2.9 per cent posted last year to 3.5 per cent this year, and 3.6 per cent in 2020. Read more. Source | East African
Private sector’s continuous engagement with governments in the six East African Community (EAC) partner states is vital in boosting intra-regional trade, which currently stands at only 20 percent. The Chief Executive Officer (CEO) of the East African Business Council (EABC), Mr Peter Mathuki made the observation in Dar es Salaam yesterday on the sidelines of a breakfast meeting with heads of the business community in the country. Read more. Source | Daily News
Foresight Africa 2019 is a report by the Brookings Institution highlighting the triumphs of the past years as well as strategies from our experts to tackle the remaining obstacles that influence outcomes in various sectors such as trade, governance, youth development and climate change.
On matters trade and investment, the authors assess the potential of the African Continental Free Trade Agreement (AfCFTA) and look at the implications of the new free trade agreement. AfCFTA stands to knock down barriers to intracontinental trade and investment, thus accelerating industrialization, and facilitating economic diversification and inclusion.