
<h3 class="wp-block-heading">Key Points:</h3>



<ul class="wp-block-list"><li>The AfCFTA, which was due to be implemented on July 1, will be the largest free trade area in the world, uniting 1.3 billion people in a $3.4 trillion economic bloc.</li><li>Given the impact of the outbreak on Africa’s traditional intercontinental trade routes, intra-Africa trade will be key to economic recovery, according to Thomas Birgen, Nairobi-based Treasury Manager for AZA.</li><li>Executive Director of the International Trade Centre, Dorothy Tembo, told CNBC Africa that despite the risks to the AfCFTA’s implementation, African leaders had a unique opportunity to spur greater collaboration.</li></ul>



<figure class="wp-block-image alignwide"><img decoding="async" src="https://image.cnbcfm.com/api/v1/image/105314733-1530885025991gettyimages-992361246.jpg?v=1530890377&amp;w=678&amp;h=381" alt="A container truck passes the main gate of Djibouti International Free Trade Zone after an inauguration ceremony in Djibouti on July 5, 2018."/><figcaption>A container truck passes the main gate of Djibouti International Free Trade Zone after an inauguration ceremony in Djibouti on July 5, 2018.Yasuyoshi Chiba | AFP | Getty Images</figcaption></figure>



<p></p>



<p>The&nbsp;<a href="https://www.cnbc.com/2019/07/11/africa-free-trade-what-is-the-afcfta.html">African Continental Free Trade Area (AfCFTA)</a>&nbsp;must not be allowed to fall by the wayside, according to experts, after its launch was postponed by the coronavirus pandemic.</p>



<p>The AfCFTA, which was due to be implemented on July 1, will be the largest free trade area in the world, uniting 1.3 billion people in a $3.4 trillion economic bloc, and came after protracted negotiations between the leaders of 54 African nations.</p>



<p>However, it was postponed in late April, with AfCFTA Secretary-General Wamkele Mene telling Reuters it was the “responsible thing to do” to avoid distracting leaders during the pandemic, adding that he was confident the deal will go through eventually.</p>



<p>The continent’s key trading partners, such as China, and now to a greater extent Europe and the U.S., have been blighted by the pandemic, while&nbsp;<a href="https://www.cnbc.com/2020/04/02/lockdowns-curfews-and-doorstep-testing-africas-crackdown-on-the-coronavirus.html">Africa has for the most part managed to avoid</a>&nbsp;an exponential spread of Covid-19.</p>



<h2 class="wp-block-heading">An opportunity amid the crisis</h2>



<p>Given the impact of the outbreak on Africa’s traditional intercontinental trade routes, intra-Africa trade will be key to getting the region’s nations back up and running, according to Thomas Birgen, Nairobi-based Treasury Manager for AZA, Africa’s largest non-bank currency broker.</p>



<p>“We need to see a situation where your cargo isn’t returned at the port because you don’t belong to a certain economic bloc,” Birgen said in a recent webinar.</p>



<p>“Here in Kenya, we killed our textile industry because we import second-hand clothes from China and everywhere else. Now with the closure of borders, we cannot live without these products that we have become used to importing.”</p>



<p>Birgen noted the manufacturing of protective masks in Kenya and Nigeria as an example of the opportunities available for African nations to produce their own products and trade within the continent.</p>



<figure class="wp-block-image alignwide"><img decoding="async" src="https://image.cnbcfm.com/api/v1/image/104385107-GettyImages-534435412.jpg?v=1529474721&amp;w=678&amp;h=381" alt="A truck carries rocks extracted from a cobalt mine at a copper quarry and cobalt pit in Lubumbashi, Democratic Republic of the Congo, on May 23, 2016."/><figcaption>A truck carries rocks extracted from a cobalt mine at a copper quarry and cobalt pit in Lubumbashi, Democratic Republic of the Congo, on May 23, 2016.Junior Kannah | AFP | Getty Images</figcaption></figure>



<p></p>



<p>Executive Director of the International Trade Centre, Dorothy Tembo,&nbsp;<a href="https://www.cnbcafrica.com/videos/2020/05/17/afcfta-why-covid-19-presents-the-best-opportunity-to-spur-intra-africa-trade/" target="_blank" rel="noreferrer noopener">told CNBC Africa</a>&nbsp;that despite the risks to the AfCFTA’s implementation, African leaders had a unique opportunity to spur greater collaboration if specific policies were fast-tracked.</p>



<p>“This is a time for Africa to rethink and reposition itself. Part of what we are seeing is that there is a shift in the demand in the context of the different value chains that African companies and businesses are involved in,” Tembo said.</p>



<p>Like Birgen, she noted the shift in demand from textiles and garments to masks and health-related products, and suggested that other opportunities will also arise.</p>



<p>“It is a dark moment for Africa in terms of the public health impact, but it is also one that demands that on the economic side, we are not losing truck on the efforts that have been made, particularly with respect to the continental free trade area,” Tembo added.</p>



<h2 class="wp-block-heading">AfCFTA will take time to fulfill its promise</h2>



<p>Jeff Gable, chief economist at African banking group Absa, told CNBC that Africa should be “applauded and supported” for moving towards collaboration, while the rest of the world moves towards isolationism.</p>



<p>However, he cautioned that the necessary integration will take much longer than two or three years, with smaller economies unlikely to see any early benefit as businesses will need to be created from scratch to participate in core value chains.</p>



<p>“For manufacturers in Ghana, this is great news — for Kenya, South Africa,” he said. “But this doesn’t suddenly unleash a manufacturing boom in the DRC (Democratic Republic of the Congo).”</p>



<p>A common qualm with intercontinental trade is that African nations extract and export raw materials, which are then manufactured into products elsewhere and shipped back with a substantial value addition.</p>



<figure class="wp-block-image alignwide"><img decoding="async" src="https://image.cnbcfm.com/api/v1/image/106546102-15900040332020-05-20t092112z_1754615962_rc28sg9qx880_rtrmadp_0_health-coronavirus-safrica-hungry.jpeg?v=1590004145&amp;w=678&amp;h=381" alt="People stand in a queue to receive food aid amid the spread of the coronavirus disease (COVID-19), at the Itireleng informal settlement, near Laudium suburb in Pretoria, South Africa, May 20, 2020."/><figcaption>People stand in a queue to receive food aid amid the spread of the coronavirus disease (COVID-19), at the Itireleng informal settlement, near Laudium suburb in Pretoria, South Africa, May 20, 2020.Siphiwe Sibeko | Reuters</figcaption></figure>



<p></p>



<p>Gable said that AfCFTA “does not change that very quickly” due to massive discrepancies in the industrialization of component economies.</p>



<p>“There are very few examples of economies on the (African) continent that capture enough of a value chain that you can really call it a manufacturing sector. South Africa runs a huge trade surplus with the rest of the continent because we trade in consumer goods, we trade in investment goods, and so on, but that is not true for Botswana,” Gable said.</p>



<p>Botswana’s economic output, he added, had not been “constrained by the lack of an African continental free trade agreement, vis-a-vis its relations with its neighboring countries.”</p>



<p>Gable also highlighted the logistical challenges faced by Africa’s existing regional economic communities, such as the East African Community (EAC).</p>



<p>“What you expect is that those borders are freed up to goods, and you should expect to see an export intensification between those countries. We’re now more than 10 years later and we’re not seeing much of that,” Gable said.</p>



<p>Trade frictions at borders between neighboring states have also become commonplace in recent years, creating logjams. Nigeria, Africa’s largest economy, for example, has been a regular purveyor of protectionist trade policies with its neighbors.</p>


105314733-1530885025991gettyimages-992361246

Africa’s free trade area is delayed by the coronavirus, but experts say it’s vital to recovery

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<p>Burundi&#8217;s election commission declared the governing party&#8217;s candidate, Evariste Ndayishimiye, the winner of the country&#8217;s presidential election amid accusations of rigging by the leading opposition challenger. Ndayishimiye, a retired army general, won 68.72 per cent of the votes in last week&#8217;s ballot, while Agathon Rwasa, the main opposition leader, received 24.19 per cent according to the electoral commission. Political and Economic Analyst, Jean Claude Nkundwa joins CNBC Africa for more.</p>


Evariste Ndayishimiye declared victor of Burundi’s bitter presidential election

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<p>The uptake of e-commerce has seen a rapid increase in the months of the lock-down as consumers turned to e platforms for the delivery of their goods. But will this momentum be maintained now that many countries are opening up again? Egide Butare, Managing Director of the e-commerce platform, Store 2 Door spoke to CNBC Africa for more.</p>


How e-commerce is helping businesses navigate the economic fallout of COVID-19

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<p>In the past couple of weeks since the total lock-down was lifted in Rwanda, we’ve seen the number of Covid-19 confirmed cases fluctuate, at some point even dropping down to zero. Some people have taken the falling numbers to mean progress in the fight against the virus, but now as the numbers begin to build again, the uncertainty has returned. So what does it all mean? And how should we be reacting? Epidemiologist, Enatha Mukantwali joins CNBC Africa for more.</p>


COVID-19: What to expect during a pandemic


<p>By Louw Nel – Political Analyst</p>



<p>Divisions within the ruling Jubilee Party have seemingly given way to an all-out battle for control with the realignment of the party and the purging of senior officials.</p>



<p>A coalition deal has been formalised between Jubilee and the once-powerful Kenya African National Union (Kanu) – they notified the Registrar of Political Parties, Anne Nderitu, on May 4.</p>



<p>An agreement was entered into prior to the 2017 elections but was never formalised.</p>



<p>However, several senior Jubilee members have lodged a dispute with the registrar, saying that Secretary General Raphael Tuju and acting Chairperson Nelson Dzuya do not have the authority to engage Jubilee, as the party’s National Executive Committee (NEC) never passed a resolution on the matter. The Political Parties Dispute Tribunal (PPDT) is expected to consider the matter on Thursday, May 21.</p>



<p>Meanwhile, President Uhuru Kenyatta has seemingly set about purging Jubilee of members aligned to his deputy, William Ruto: both Senate Majority Leader Kipchumba Murkomen and Majority Whip Susan Kihika were removed on May 11. Mr Murkomen and Ms Kihika have both been outspoken public critics of the president.</p>



<p>In addition, five nominated senators aligned to Mr Ruto’s so-called Tangatanga faction appeared before a party disciplinary committee on Wednesday, May 20, over their failure to attend the parliamentary group meeting at State House on May 11.</p>



<p>According to reports, several chairs of senate committees are also expected to be replaced imminently and a Cabinet reshuffle is under discussion as Mr Kenyatta’s Kieleweke faction seizes the initiative.</p>



<p>More background to the development is Mr Kenyatta’s rapprochement with Raila Odinga, leader of the main opposition, the Orange Democratic Movement (ODM). Messrs Kenyatta and Odinga have joined forces in promoting the Building Bridges Initiative (BBI), with Mr Odinga championing calls for a referendum on the BBI’s final recommendations.</p>



<p>Mr Ruto’s attitude to the BBI has oscillated between ambivalence and hostility, notably to its recommended creation of a prime minister position.</p>



<p>It is increasingly clear that the relationship between Messrs Kenyatta and Ruto has broken down irretrievably, and that the battle over Jubilee is set to grow acrimonious as opposition to the latter’s 2022 succession bid grows.</p>



<p>Many shots have been fired in recent months, including calls by Jubilee and opposition MPs for Mr Ruto to resign on March 11 and Mr Ruto’s social media tirade against the “fraudulent changes” to Jubilee’s NEC by “political rejects, conmen &amp; fraudsters” in early April.</p>



<p>The coalition agreement between Jubilee and Kanu is certain to antagonise Mr Ruto, as his adversarial relationship with Kanu leader and fellow Kalenjin, Gideon Moi, is well documented.</p>



<p>The possibility of the ODM or the Wiper Democratic Movement – Kenya (WDM – K) entering into coalition talks with Jubilee-Kanu cannot be dismissed, especially as Wiper leader, Kalonzo Musyoka, stated on May 11 that his party was exploring the possibility despite being a member of the National Super Alliance (Nasa) alongside the ODM.</p>



<p>The dissolution/reconstitution of Jubilee does not necessarily portend political instability in Kenya, as parties are generally viewed as election vehicles rather than institutions in their own right.</p>



<p>Indeed, political development and democratic consolidation in the country are held back by the absence of durable political parties that are based on principles rather than ethnic ‘big men’ or election strategies.</p>



<p>Recent developments seem to suggest that this isn’t about to change.</p>


Op-Ed: Jubilee, Kanu formalise coalition as internal battles rage in Kenya

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<p>The auditor general annual report revealed that for the year ended June 2019, irregular expenditure increased to Rwf 8.6 billion from Rwf 5.6 billion the previous year. Auditor General, Obadiah Biraro joins CNBC Africa to unpack the report&#8230;.</p>


Rwanda’s irregular expenditure increases to Rwf8.6 billion in 2019

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<p>In Kenya diesel prices fell by the largest margin in 13 years on lower global crude prices. The prices would have fallen deeper were it not for the new levies imposed on fuel last month following changes to the laws that also introduced tax reliefs to protect the economy against the COVID-19 pandemic. Moreover, the country will continue with plans to build a $1.135 billion pipeline from Lokichar to Lamu to boost its crude oil exports despite the concern over falling prices of the commodity in the global market. Odhiambo Ramogi, Economic Analyst joins CNBC Africa for more.</p>


COVID-19: Kenya continues pipeline plan despite drop in oil prices

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<p>According to Sudan’s Central Bureau of Statistics, the annual inflation rate rose to 98.81 per cent in April, up from 81.64 per cent in March, due to rising prices of food, drink and fuel. Moreover, Sudan has extended a lock-down of the state of Khartoum by an additional two weeks from to try to slow the spread of COVID-19. Hajooj Kuka, Analyst &#038; Activist spoke to CNBC Africa for more.</p>


How Sudan is dealing with the economic impact of Covid-19

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<p>According to a Moody&#8217;s report, measures taken by Tanzania&#8217;s Central Bank will support the market-funded banks in meeting their funding and liquidity needs amid the Covid-19 pandemic. However, these measures are not enough to prevent a decline in bank asset quality. Peter Mushangwe, Banking Analyst at Moody’s joins CNBC Africa for more.</p>


Moody’s: Tanzania’s monetary policy to support banks’ liquidity

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<p>The World Bank Group approved today a $500 million program to help countries in Africa and the Middle East fight the locust swarms that are threatening the food security and livelihoods of millions of people. The bank’s financing package will deliver immediate and long-term support to help hard-hit farmers and rural communities control the swarms, withstand the dual crises of COVID19 and locusts and restore their livelihoods. World Bank Group President, David Malpass joins CNBC Africa for more.</p>


World Bank approves $500mn to aid Africa’s fight against locust plague

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<p>Standard Chartered Bank Kenya has announced loan reliefs and extended mortgage repayment periods for its clientele as part of the measures to help customers  deal with setbacks from the Covid-19 pandemic.</p>


StanChart Kenya unveils relief measures to support customers amid COVID-19 crisis

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<p>The World Bank has predicted a global plunge in remittances with sub-Saharan Africa anticipated to record a 23.1 per cent decline from $48 billion last year to $37 billion this year. East Africa is a leading beneficiary of remittances that have been central in propping up foreign exchange reserves and protecting regional currencies from excessive volatility. Sharon Karuga Kinyanjui, Head of East and Central Africa at World Remit joins CNBC Africa for more.</p>


COVID-19 takes toll on SSA diaspora remittances

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<p>Members of the African union had set July 1 as the day to operationalize The African Free Trade Area Agreement but with COVID-19 pandemic affecting all member countries, this has been pushed back to a yet to be named date though some experts believe the AFCFTA implementation should go ahead. So could this be an opportunity for improved intra Africa trade? DR. Hippolyte Fofack joins CNBC Africa for more.</p>


COVID-19: An opportunity for improved intra-Africa trade?

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<p>North Eastern Kenya is largely made of pastoral communities whose livelihood is dependent on livestock trading. These communities haven’t been spared either by lockdown measures but how are they surviving? BOMA COVID-19 has released a report on the impact and CNBC Africa spoke to the Global Programs Director, Wendy Chamberlain.</p>


The impact of COVID-19 on Kenya’s pastoral communities

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<p>Rwanda yesterday said the country will put five high-tech robots into use to fight COVID-19 in its treatment centers. The smart mobile robots also have functions like facial recognition, temperature screening, and monitoring patient&#8217;s status and keep medical records of the patients, CNBC Africa spoke to Benjamin Karenzi, CEO Zorabots Africa for more.</p>


Rwanda deploys high tech robots to fight coronavirus

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<p>It&#8217;s been a week since South Sudan&#8217;s Civil Aviation reopened airports and announced the resumption of domestic and international flights in line with the presidential directive to ease COVID-19 lockdown measures; but as reports fly about the country&#8217;s Vice President Riek Machar and his wife testing positive for the virus; will the phase down efforts still stand? Political and Economic Affairs Analyst, Akol Dok joins CNBC Africa for more.</p>


South Sudan relaxes COVID-19 lock-down measures

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<p>Burundians are going to the polls today to elect a new president for the first time in 15 years. Incumbent Pierre Nkurunziza is set to step down after today&#8217;s election and will go by a new title of supreme guide, CNBC Africa is joined by Jean Claude Nkundwa, Burundi based political analyst for more on today’s election.</p>


East Africa

Africa’s free trade area is delayed by the coronavirus, but experts say it’s vital to recovery

Evariste Ndayishimiye declared victor of Burundi’s bitter presidential election

How e-commerce is helping businesses navigate the economic fallout of COVID-19

COVID-19: What to expect during a pandemic

Op-Ed: Jubilee, Kanu formalise coalition as internal battles rage in Kenya

Rwanda’s irregular expenditure increases to Rwf8.6 billion in 2019

COVID-19: Kenya continues pipeline plan despite drop in oil prices

How Sudan is dealing with the economic impact of Covid-19

Moody’s: Tanzania’s monetary policy to support banks’ liquidity

World Bank approves $500mn to aid Africa’s fight against locust plague

StanChart Kenya unveils relief measures to support customers amid COVID-19 crisis

COVID-19 takes toll on SSA diaspora remittances

COVID-19: An opportunity for improved intra-Africa trade?

The impact of COVID-19 on Kenya’s pastoral communities

Rwanda deploys high tech robots to fight coronavirus

South Sudan relaxes COVID-19 lock-down measures

Here’s what’s on the line as Burundians head to the polls

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Advertise With Us

East Africa

Africa’s free trade area is delayed by the coronavirus, but experts say it’s vital to recovery

Evariste Ndayishimiye declared victor of Burundi’s bitter presidential election

How e-commerce is helping businesses navigate the economic fallout of COVID-19

COVID-19: What to expect during a pandemic

Op-Ed: Jubilee, Kanu formalise coalition as internal battles rage in Kenya

Rwanda’s irregular expenditure increases to Rwf8.6 billion in 2019

COVID-19: Kenya continues pipeline plan despite drop in oil prices

How Sudan is dealing with the economic impact of Covid-19

Moody’s: Tanzania’s monetary policy to support banks’ liquidity

World Bank approves $500mn to aid Africa’s fight against locust plague

StanChart Kenya unveils relief measures to support customers amid COVID-19 crisis

COVID-19 takes toll on SSA diaspora remittances

COVID-19: An opportunity for improved intra-Africa trade?

The impact of COVID-19 on Kenya’s pastoral communities

Rwanda deploys high tech robots to fight coronavirus

South Sudan relaxes COVID-19 lock-down measures

Here’s what’s on the line as Burundians head to the polls

News Tips

Advertise With Us

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