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Browsing: AfCTA
Despite enormous opportunities, Africa’s supply chains remain inadequate in supporting regional economies. The COVID-19 pandemic exposed the vulnerability of existing African supply chains, sending shock waves across markets. With proper optimization, Africa’s supply chains hold transformative economic potential for the continent.…
The African Continental Free Trade Area (AfCFTA) could deliver far greater benefits in terms of jobs, growth, and poverty reduction than previously estimated – making it a potential game changer for Africa’s economic development if its ambitious goals are fully realized, a World Bank 2022 report indicates.
Two key points stand out in that World Bank statement, first ‘AfCFTA could deliver greater benefits…than previously estimated,’ and second, ‘if it’s ambitious goals are fully realized.’
The first point begs the question how could a continent-wide trade pact be undervalued,’ and the second is the possibility that the one trade zone might not take off as planned.
Also Read: East African SMES ready to tap into the wider African market
Let us look at the AfCFTA goals and determine whether they are indeed ambitious or just realistic and if so, let us review the hurdles that may derail AfCFTA from achieving …
Africa is huge continent with untapped potential. With the rest of the world opening up for the best international trade and travel relations, Africa is learning and following the same path, with countries such as Uganda, Kenya and Rwanda easing entry restrictions by issuing visa on arrival and hence turning themselves towards open borders opportunities as members of the East African Community (EAC).
Unrestricted movement of people and goods between African countries holds the key to unlocking this trade potential. That is why trade analysts are touting the African Continent Free Trade Area (AfCTA) as a game changer in inter-Africa trade.
According to United Nations Conference on Trade and Development (UNCTAD), Intra-African trade is currently low at 14.4 percent of total African exports. UNCTAD estimates that the AfCFTA could boost intra-African trade by about 33 percent and cut the continent’s trade deficit by 51 percent.
The possibility of more open …
For years, the East African Community (EAC) struggled with divisions among member states mainly on key trade agreements slowing down the region from achieving a full working common market.
Countries have been playing protectionism targeted mainly at protecting local industries, with fallouts witnessed among states.
Kenya, Uganda and Tanzania have had their fair share of the trade wars with both tariff and non-tariff barriers affecting regional integration.
Poor infrastructure in some parts of the region has also been affecting easy movement of trade volumes while businesses have suffered lack of enough capital to do trade.
However, recent developments have set the region for growth both on intra-EAC trade, continental trade and of course international trade.
Over the course of 2022, there has been progress on the East African Community’s Common External Tariffs (CETs) which had dragged since 2016.This exposed the region to cheaper imports mainly from China and India, making
… 
One of the few spoken regional trade blocs of Africa is the Economic Community of Central African States (ECCAS).
Despite such little being spoken of this resource rich area, it is home to some of Africa’s richest countries, yet it has for decades encountered various obstacles that have stunted social and economic progress. Human capital development is a major issue in the region, along with armed conflicts, natural disasters, and health crises.
As a result, the region’s economy have not been able to flourish despite their abundance of natural resources.
Oil in Central Africa
Roughly 30% of Africa’s crude oil is located in the ECCAS region.
Angola, located there, just surpassed Nigeria as Africa’s largest oil producer, pumping out about1.16 million barrels per day.
Chad, the Congo, Equatorial Guinea, Gabon, and Cameroon are some of the other oil-producing countries in the area. Yet the resource has not contributed as much
… 
Nearly 90 per cent of the world’s trade is carried by the global shipping industry.
Without shipping, global cargo trade via imports and exports would essentially cripple nations and international markets.
The sector was heavily hit by the Covid-pandemic disrupting global supply chains yielding a sharp increase in freight costs.
This came with the partial closure of key ports in China, one of Africa’s leading market sources.
Despite this, data shows China-Africa trade reached $185.2 billion between January and September 2021, up 38.2 percent year-on-year.
As shipping lines suspended operations, many factories followed suit essentially shutting down much of the global international trade.
Following the 2020 global shipment shutdown, another shipping crisis forced goods to be locked down for weeks.
The blockage of the Suez Canal by giant cargo vessel, the 400 meter-long-Ever Given operated by global shipping firm Evergreen, became wedged across the Suez after being blown off course
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- The agreement reaffirms the US commitment to elevating a strong private sector voice in AfCFTA implementation.
- Through exploring these challenges and opportunities in-depth, the U.S.-Africa Leaders Summit seeks to chart new avenues for improved U.S.-Africa cooperation.
- The business forum focuses on growing the commercial partnership between the U.S. and Africa, with priority discussion topics including the U.S.-Africa commitment to trade and investment.
The United States Chamber of Commerce’s U.S.-Africa Business Center (USAfBC) and the African Continental Free Trade Area Secretariat (AfCFTA) on Wednesday signed a Memorandum of Understanding (MoU) to launch a working group to help advance trade and investment between the U.S. and Africa.
The agreement reaffirms the US commitment to elevating a strong private sector voice in AfCFTA implementation.
Scott Eisner, President of the U.S.-Africa Business Center, said coordination between the private sector and the AfCFTA is key to unlocking Africa’s full economic potential.
“As the world’s leading …
A recent index report showed that Tanzania’s agro sector is mechanizing rapidly on the back drop of value addition mini-factories, the revolution is not unique to Tanzania, it is happening continent wide and North Africa is leading.
Evidence to this fact lies in the pages of the Africa Industrialization Index (AII) report that show more than 35 of Africa’s 52 countries have become more industrialized over the span of the last decade.
The multi-stakeholder report, prepared by the African Development Bank, the African Union and the United Nations Industrial Development Organization (UNIDO), attests to an ongoing industrial revolution in Africa.
The Africa Industrialization Index (AII) uses 19 indicators to rate each country’s level of industrialization ranging from performance of its manufacturing sector, capital, labor to a country’s business environment, its infrastructure and even its entire macroeconomic status.…
The transformative effects of DeFi on advancing financial inclusion, assisting African trade, and strengthening Africa’s economy match the technology with the global sustainability agenda and the UN Sustainable Development Goals. As a result, the industry is an attractive investment for investors, asset managers, and pension funds seeking to make their portfolios more sustainable while directly addressing social implications.…
UNCTAD argued that in the fourth quarter of 2021, all major trading economies saw imports and exports rise well above pre-pandemic levels of 2019. Moreover, the report pointed out that trade in goods increased more strongly in developing countries than in developed ones.
It is essential to realize that Africa has more to tap into the intra-African trade, standing at around $21.9 billion, according to UNCTAD.
Further, exports of developing countries were about 30 per cent higher than during the same period in 2020, compared with 15 per cent for wealthier nations.
The UNCTAD report argued that growth spiked in commodity-exporting regions as commodity prices increased. …