Browsing: COMESA

Open borders, open borders in EAC, East African Community

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

A report published by Lexology on January 18, 2022, Zimbabwe's economy is largely driven by the mining, agriculture, and tourism sectors. However, because of Zimbabwe's foreign currency shortages, there is a significant focus on export-oriented and foreign currency-generating activities.

This allows investors, businesses, and the government to retain value and meet the country's forex needs. Zimbabwe's main exports are minerals, agricultural produce, and soft commodities. She also has large reserves of chromite, coal, gold, and iron ore, among others. The country is also one of the world's largest growers of tobacco.

According to research by Mordor Intelligence, Zimbabwe is a signatory of several bilateral and international agreements (MIGA, OPIC, ICSID, and UNCITRAL) that protect the investments of the companies in Zimbabwe. Zimbabwe has cheap educated, and competitive labour, well-developed infrastructure, and easy access to regional and global markets through its membership in AU, COMESA, SADC, COPAC, and CISSA. Zimbabwe offers…

The company was struggling following a significant decline in the late 90s. In a related article published by ZBC News at its utmost, the giant used to employ over 4,500 people thereby making it one of the country’s biggest employers.

Further, in addition to beef production, the company also produced a large variety of by-products such as hides, neat’s foot oil, ox gall, edible offal’s, tallow and dripping, canned meats, ham, blood meal, meat and bone meal and pork sausages among others. The institution is the lifeblood of livestock farmers and the leather value chain.

The government is targeting the revitalization of the institution under the National Development Strategy One (NDS1). The government in May 2019, signed a US$400 million joint venture farming Concession Agreement with Boustead Beef Zimbabwe, a United Kingdom-based investor. The venture was reportedly based on a Concession Agreement under Rehabilitation, Operate and Transfer (ROT) Terms.

The …

Data by the bloc reveals that the sector provides livelihoods for about 80 per cent of the region’s workers, and accounts for about 65 per cent of foreign exchange earnings.

The continent, which COMESA Secretary General Chileshe Kapwepwe said last month has the potential to feed its self and export to the rest of the world, has remained a net food importer for the last 15 years.…

The SADC Chairperson who is also the President of the Republic of Mozambique, His Excellency Filipe Jacinto Nyusi, says the Southern African Development Community (SADC) has made significant progress in strengthening its efforts to integrate its economies and promote peace and security among the member states.

Speaking in the foreword to the SADC 40th anniversary publication titled, 40 Years of SADC of Enhancing Regional Cooperation and Integration a publication that brings to light the history of SADC and key achievements that the Region has made since 1980, The SADC Chairperson Filipe Nyusi said the bloc also takes the opportunity to hail its founders and thank them for their vision, dedication, courage and values, which the Region has inherited.

The publication that was launched in Maputo, Mozambique, on June 23rd, 2021 during the Extraordinary SADC Summit of Heads of State and Government was Published by the SADC Secretariat …

More than half of the African countries have ratified the trade agreement with Nigeria, the biggest economy on the continent, being the latest to ratify.…

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Zambia – Tanzania relations

It’s no secret that Zambia’s economic situation has gone from bad to worse over the years. In mid-2018 the country’s debt reached 9.4 billion USD and has become worse as we stand in 2020, in just a period of 2 years (Ofstad & Tjønneland, 2019).

In May 2020, the Tanzania-Zambia borders were closed due to the pandemic, however, the reopening of trade between the two countries seems to be normalized as nations are now gung-ho in pushing cross border trade.

Zambia’s Economic Snapshot

 


source: tradingeconomics.com

The graph above shows Zambia’s development from the year 1990 to the year 2019. The country’s economy improved from the year 2011 to the year 2018, as one can see the national GDP output increasing as a result of its healthy inflation rate. In 2019 the country’s economy took a dive and started to falter given that it’s inflation rate …

In recent history virtually every continent and economic block has been trying to establish common trade area agreements as well as political unions. Africa is no different –SADC, ECA, COMESA, ECOWAS and SACU are just some of the examples of African countries trying to collaborate to drive the many aspects of social and economic development.

It is a system and an idea that promises to accelerate inclusion and promote regional prosperity among neighbours and the AfCFTA (The African Continental Free Trade Area) is rapidly becoming the embodiment of that reality – 28 African countries operating as a free trade area. As expected from an agreement of this magnitude, few people fully understand its complexity and intricacies.

FurtherAfrica spoke to one of AfCFTA’s strongest advocates. Mark-Anthony Johnson, CEO of JIC Holdings – an investment, trading and acquisition entity focused in Africa and emerging economies with roots back to 1985. Mark’s JIC …

Egypt sees a 3.2 per cent increase in its total exports to the world trade organisations member countries in 2019.

The export increased to $29.8  billion in 2019 compared to the $28.9 billion recorded in 2018. The statistics came in the Annual Bulletin of Intraregional Trade Groups 2019 by the Central Agency for Public Mobilization and Statistics (CAPMAS).

CAPMAS report covers intraregional trade organisations in which Egypt is a member state. These include the Community of Sahel-Saharan States, COMESA, the United Nations Economic and Social Commission for Western Asia (ESCWA), the Arab Free Trade Area, the Group of 15 and the Developing Eight Islamic Countries Group (D-8).

According to the report, in 2019, Egypt recorded the largest amount of export to the Arab Free Trade Area with $10.1billion compared to $9.5 billion in 2018, an increase of 5.9 per cent. It was followed by Egypt’s export to United Nations Economic …