TICTRADE INDUSTRY Ta AND CUSTOMSlk

Issue N°7 July 2019 The Newsletter of the Department of Trade and Industry Head of Industry Division

Mr. Hussein serves as the Head of Industry Division in the Trade and

Industry Department since August 2007, where his key duties are:

Formulate appropriate policies and plans of action- develop programs

and project proposals relating to Industrial policies and coordinate

and harmonize it among the AU Member States and REC’s; small

of industrial development; Industrial cooperation with International

Organizations, Academia, private sector and Civil Societies; and

Monitoring and Evaluation of Implementation of AU programs of

developing industrial in Africa. Mr. Hussein holds a master of Public

Policy and Management (MPP) majoring in “Trade and Industry” from

the Korean Development Institute of Public Policy and Management

Ministers of Trade and Industry (From 1990- until end of July 2007) in

Cairo, Egypt.

DTI Portfolio 2017

AfCFTA One Year Later: The Road Travelled and the Road towards Launch of the Operational Phase

The 8 th African Union Ministers of Trade (AMOT) Meeting ends with optimistic tone and clear way forward for the Official Launch of the Operational Phase of the AfCFTA Editorial The Newsletter of the Department of Trade and Industry Africa is poised to launch the operational phase of the AfCFTA By H.E. Amb. Albert M. Muchanga - Commissioner for Trade and Industry

he current issue of the DTI integration in Africa. With Africa is poised to launch Newsletter celebrates these additional protocols, the operational phase of Tthe delivery of one of the we are further transforming the African Continental Flagship Projects of African Africa by removing physical Free Trade Area at an Union Agenda 2063: The and commercial barriers that Extraordinary Summit of Africa We Want. This is the have hitherto hindered trade African Union Heads of State African Continental Free among our countries. With and Government to be held Trade Area. this landmark achievement, in Niamey, Niger on 7th July the Continent is poised this year. In so doing, we aim Through it, Africa is reshaping to develop a harmonized at coming up with an active her small and fragmented market space which and efficient market. markets to create one will in turn promote the integrated market with large development of regional The Department has been economies of scale and value chains that will be very active in other areas of scope. The project brings linked competitively to global Continental and international with it additional protocols value chains. The African development cooperation on Investment, competition Continental Free Trade Area as will be seen in the policy and intellectual is in this respect expected to contributions in this edition. property rights. promote the development These are equally informative of manufacturing and agro- and will keep readers up to Their negotiation will date on the work of the start this year and these processing across Africa, and with them, accelerated Department of Trade and protocols, when concluded, Industry. will greatly contribute economic diversification and to deepening economic competitiveness.

2 3 The Newsletter of the Department of Trade and Industry On a Technical Note Accompanying the Implementation of the African Continental Free Trade Area: Part II By Chiza Charles CHIUMYA - Officer In Charge, Trade Division

n Issue No. 5 of the TIC Talk aimed at dealing with all 2019. Given the signatures Newsletter, the Technical other bottlenecks that affect and the ratifications so far, INote therein celebrated intra African trade including the African 32nd Summit the signing of the African issues of inconsistent trade of Heads of States and Continental Free Trade policies, inadequate trade government decided to Area (AfCFTA) Agreement facilitation, availability and hold a commemorative that took place during accessibility of trade finance, Extraordinary Summit in July 10th African Union Extra and trade information 2019 in Niamey, Niger. This Ordinary Summit of Heads asymmetries, among others. will be very symbolic as the of States and Government. President of the Republic Thereafter, a lot of progress of Niger H.E. Mahamadou The Technical Note has been registered towards Issoufou is the Champion emphasized the need to the entry into force of the of the AfCFTA. If all the 55 ensure that the AfCFTA Agreement. Among others, members of the African is accompanied by as we went to press, 53 out Union sign and ratify the implementation of all the of the 55 member States of Agreement, the AfCFTA will necessary and sufficient the African Union had signed have the largest membership flanking measures so that it the Agreement and on 30th of a Free Trade Area in the yields the expected results April, history was once again world since the launch of the and thereby achieves what is made as the required 22 GATT (now the World Trade has been designed to do. In deposits of instrument of Organization, WTO) 70 years this regard, it dwelt much on ratification, required for the ago. the need to fully implement Agreement to enter into the Action Plan for Boosting force, were attained. Thus This Technical Note takes the Intra African Trade given that the AfCFTA Agreement discussion further by looking its programs and actions are enters into force on 30th May, at other aspects that would

2 3 On a Technical Note The Newsletter of the Department of Trade and Industry enable the AfCFTA to deliver Committees will ensure swiftly in establishing the upon its promises to the the proper coordination various institutions envisaged African people. of all stakeholders in both in the Agreement. the implementation of the The first aspect of the Strategy and in establishing The mandate to establish same is to ensure that the a continuous loop of some of these institutions AfCFTA is mainstreamed in consultations especially has already been given to the the trade policies at both among the civil society, and African Union Commission the national and regional the public and private sectors. but the Commission will levels. The AfCFTA will not It will also be value adding require all the necessary operate in a vacuum of other to have Regional AfCFTA support from Member states trade arrangements, either Strategies and Committees as well as partners to make the bilateral or multilateral. The in the same breath. same possible. For instance, implementation of the other the establishment of the trade arrangements may The third aspect is to ensure AfCFTA Secretariat and the either foster or hinder the that there is adequate African Trade Observatory, functioning of the AfCFTA. information about the which is already underway AfCFTA at all levels. This will needs to be expedited. The key therefore is to clearly require a vigorous period Having the supporting identify interoperability of sensitization campaigns. institutions in place at all of these agreements and Whilst this process has levels will play a vital role arrangements with the been ongoing for a while in the implementation AfCFTA. The guiding light and larger African masses and administrations of this for all stakeholders therefore have heard about the landmark Agreement. needs to be that this is the AfCFTA, there is need now first time in the history of to inform the populace and African Integration that a other stakeholders that the trade agreement covering Agreement has now entered the entire continent has been into force and that its time birthed. It is this same wisdom for them to utilize the same. that guided both the 31st ‘‘ To buttress and 32nd Ordinary Summits The messaging therefore the first point, of the African Union to urge needs to deliberately target and reiterate the need for how the Agreement can be the second aspect Member States to abstain utilized. The private sector, from entering into bilateral organized or otherwise, who is for State parties trading arrangements until are the main beneficiaries of to the AfCFTA the entry into force of the this agreement will need to Agreement establishing the be specifically targeted with Agreement to AfCFTA. this information. Accessibility invest effectively of information on the AfCFTA To buttress the first point, will therefore need to be in the process the second aspect is for given special priority taking State parties to the AfCFTA into account the modes of developing Agreement to invest of access as well as the AfCFTA National effectively in the process languages of the continent. of developing AfCFTA Thus a robust communication Strategies as well National Strategies as well as Strategy should form part establishing National AfCFTA and parcel of the AfCFTA roll as establishing Committees. The Strategies out implementation plan. National AfCFTA are key in providing the required direction on how For all the above to work Committees each respective State seamlessly especially at the party plans to utilize the onset of the Agreement, the Agreement and the National African Union needs to move ‘‘

4 5 The Newsletter of the Department of Trade and Industry Point of View

AfCFTA One Year Later: The Road Travelled and the Road Towards Launch of the Operational Phase

By H.E. Amb. Albert M. Muchanga - African Union Commissioner for Trade and Industry

n this commemorative Summit of the Assembly of 2063: The Africa We Want. article, the African Union African Union Heads of State ICommissioner for Trade and Government in Kigali, Making the Agreement and Industry outlines what Rwanda. At that Summit, operational is as important has been achieved since forty-four African Union as having signatories. While the AfCFTA Agreement Member States signed the awaiting the remaining was opened for signature historic Agreement. The three Member-States to sign on 21st March, 2018 in number rose to forty-nine at on, Africa is progressing Kigali, Rwanda and what the July, 2018 Nouakchott, very well in the direction is expected as the African Mauritania Summit. Three of securing deposits of Union moves to launch of more signatures were added instruments of ratification on the operational phase of the during the February, 2019 the Agreement Establishing continental market in July Addis Ababa Summit, the African Continental Free this year. bringing the figure to fifty- Trade Area. So far, twenty- two as we commemorate the four National Parliaments of On 21st March this year, the first Anniversary of this major the African Union Member- Agreement Establishing the milestone in Africa’s resolute States have approved African Continental Free use of the lever of continental ratification of the Agreement, Trade Area marked one year economic integration to with twenty Member-States of existence. It was opened deliver prosperity to her depositing their instruments for signature on 21st March, people in line with Agenda of ratification. At this point 2018 at an Extra-Ordinary in time, Africa is just short of

4 5 Point of View The Newsletter of the Department of Trade and Industry Continental Free Trade Area. The Assembly of African Union Heads of State and Government shall, at the Niamey Extra-ordinary Summit also make a decision on the location of the secretariat of the African Continental Free Trade Area which will have the principal function of implementing the Agreement through a focused work programme. Seven Member-States: Egypt, Eswatini, Ethiopia, Kenya, two deposits of instruments information as well as actual Ghana, Madagascar and of ratification to have the growth of intra-African trade. Senegal submitted bids by Agreement enter into force, the deadline of 20th March thirty days after receiving the Africa is on target to launch this year. An assessment twenty second instrument the operational phase of mission will be visiting these of ratification. At the time of the African Continental Free countries during May on the going to press, the remaining Trade Area in July this year in basis of which a report will be two Member States assured Niamey, Niger where we shall prepared for consideration the Chairperson of the African hold another Extra-Ordinary by the African Ministers of Union Commission that they Summit for that purpose as Trade and the Extra-Ordinary would shortly be depositing. well as formally commemorate its First Anniversary. During Summit. It is the results of It has been a momentous the launch, the African the assessment mission which year of hard and smart Continental Free Trade Area will guide the Extra-Ordinary work to create an African shall be fully supported Summit on deciding the host Continental Free Trade Area with well-defined rules of of the permanent AfCFTA with commercial substance. origin; schedules of tariff Secretariat. We wish all the As we commemorate the concessions in trade in bidders, good luck. first year of this large market goods; an online continental The work for the interim and space, we do so with concrete non-tariff barriers monitoring permanent secretariats of the achievements. The African and elimination mechanism; a AfCFTA is already being cut Continental Free Trade Area Pan-African digital payments out for them. A post launch is already delivering results and settlement platform AfCFTA implementation plan well before it enters into as well as an African Trade is under preparation and will force. In December, 2018, we Observatory portal. After be submitted to the African held the First Intra-African July this year, traders across Ministers of Trade in the first Trade Fair, in Cairo, Egypt, Africa will be able to make week of June this year, who, if which attracted above target use of preferential trading satisfied with it, will convey it exhibitions and business arrangements offered by to the Extra-Ordinary Summit transactions. At the Cairo the Agreement Establishing for its consideration and Fair, we had 1,086 exhibitors, the African Continental Free adoption in July this year. 86 above target. We also Trade Area as long as the had business deals over trade relations involve the The vision is to create US$32 billion, well above the twenty-two or more countries one African market. In target of US$25 billion. This that would have deposited this respect, the historic sterling achievement signals instruments of ratification as obligation for each and every the potent force of the Intra- well as conform to agreed Member State of the African African Trade Fair as a viable provisions on rules of origin Union is to sign and ratify platform and brand for trade governing trade in the African the Agreement Establishing

6 7 The Newsletter of the Department of Trade and Industry Point of View

the African Continental Free integrated, prosperous, and Africa is laying the ground Trade Area. As we move peaceful Africa, driven by work for the establishment of towards celebrating the its citizens, representing a an African Common Market joyous occasion of the First dynamic force in the global or Internal Market, in line with Anniversary, we call, in the full arena.’ the Treaty Establishing the spirit of Pan-Africanism and African Economic Community, oneness; on all African Union We are creating more than signed in Abuja, Nigeria in Member-States to sign and a free trade area. In January, 1991 and ratified in 1994. To ratify the Agreement before 2018, the Assembly of African this end, the February 2019 the July, 2019 Extra-Ordinary Union Heads of State and Assembly of Heads of State Summit. Government launched the and Government directed the Single African Air Transport African Union Commission In launching the African Market as well as opened to undertake a readiness Continental Free Trade for signature, the Protocol assessment for this stage of Area and making it work, to the Treaty Establishing deeper economic integration Africa is overcoming the the African Economic and policy harmonization historic fragmentation and Community Relating to the among African countries. isolation of her economies by Free Movement of Persons, Work is already underway opening up huge commercial Right of Residence and Right to implement this strategic opportunities as well as of Establishment. Moving Summit decision. improving transport and forward, Africa shall, during communication linkages this year, conclude work With a strong foundation that among our countries. This on schedules of specific has been created, Africa is now aggregation and connectivity commitments on trade in better positioned to speak are forces for accelerated services as well as commence and act as a united entity in growth and sustainable negotiations on Protocols global trade negotiations and development of African on Investment, Competition in the process, leverage her countries will enable us and Policy and Intellectual strength to secure trade and realize the vision of the African Property Rights. All these investment deals that offer Union and Agenda 2063: ‘An developments show that accelerated and inclusive

6 7 Point of View The Newsletter of the Department of Trade and Industry

sustainable development involvement, the United When Africa looks back to the for her people. There is Nations Commission for Kigali Extra-Ordinary Summit, hence political, economic, Africa is collaborating with the she does so with pride and commercial and diplomatic African Union Commission to satisfaction that a lot has been value in establishing the assist African Union Member- achieved in this one year. African Continental Free States to formulate and True, a lot remains to be done Trade Area. Indeed Africa implement National African in the years ahead. But Africa is, by creating the African Continental Free Trade Area is committed to build on Continental Free Trade Area Implementation Strategies, this momentum and achieve also signalling to the wider with appropriate national much more to deepen her world that she is committed institutional arrangements. economic integration. to multilateralism and global This will achieve two strategic interdependence. In this objectives. In the first instance, It is in this spirit that we invite respect Africa calls on the rest Africa shall be bringing all Africans on the Continent, of the world to re-commit in her continental integration in the Diaspora and the friends using and strengthening the project closer to the people. of Africa to commemorate multilateral trading system to Secondly, African Union this historic day in July this promote shared prosperity Member-States shall be able year. In so doing, Africa shall among all the people of the to align national development be communicating to herself world. policies and programmes to and the rest of the world, the African Continental Free her resolve to create one The African Continental Free Trade Area legal provisions African market and use this Trade Area is an inclusive and work programme. With continental market to deliver undertaking for Africans from such alignment and policy accelerated and inclusive all walks of life: Government, harmonisation, Africa’s sustainable development Civil Society, Academia, prospects for rapid socio- as well as contribute to Women, Youth, Diaspora, economic development will strengthening the multilateral Labour, Entrepreneurs and be enhanced. trading system. several other stakeholders at the national level. With a view to broadening stakeholder

8 9 The Newsletter of the Department of Trade and Industry Activities The 8th African Union Ministers of Trade (AMOT) Meeting ends with optimistic tone and clear way forward for the Official Launch of the Operational Phase of the AfCFTA

he Eighth Meeting of the Africa (COMESA), the East In her opening speech, on African Union Ministers African Community (EAC), behalf of Dr Vera Songwe, Tof Trade (AMOT) was held the Economic Community Ms Giovanie Biha, the Deputy from 7 to 8 June 2019, at the of Central African States Executive Secretary of the African Union Headquarters, (ECCAS), the Economic Economic Commission for Addis Ababa, Ethiopia. Community of West African Africa (ECA), noted that the States (ECOWAS), the 8th Meeting of the African The purpose of the Meeting Intergovernmental Authority Union Ministers of Trade was to consider the report for Development (IGAD), comes at a critical juncture of the Eighth Meeting of the the Southern African for the AfCFTA. She stressed Senior Trade Officials as well Development Community that after the well justified as preparatory work for the (SADC), and observers from celebration that accompanied 12th Extraordinary Summit to the African Development the launch of the AfCFTA be held in Niamey, Niger on Bank (AfDB), the African in Kigali last year, Member 7th July 2019. The Meeting Import and Export Bank States must now prepare for was attended by AU Ministers (Afreximbank), United its operationalization. “As of Trade from Member Nations Conference on Trade a flagship initiative of the States and officials from the and Development (UNCTAD) African Union’s Agenda 2063, African Union Commission and United Nations Economic the AfCFTA is not merely (AUC), Arab Maghreb Union Commission for Africa a project of a small sub-set (UMA), the Common Market (UNECA). of African Union members. for Eastern and Southern

8 9 Activities The Newsletter of the Department of Trade and Industry We should aim for no less Niger. He informed the He advised the meeting that ambition than every country Ministers that the AfCFTA business was ready to trade in this continent signs and Extraordinary Summit would and was now waiting for ratifies the Agreement, to be preceded by side events finalization of the outstanding ensure that our continent such as Civil Society Forum work to enable them to take moves forward collectively, on 3rd July and Business advantage of the enlarged and meaningfully, in trade Forum on 6th July, 2019. He market. He also informed integration”, she underlined. indicated that the meeting the Ministers that the She applauded the signatory during the Summit would AMOT report will feed into countries and invited the few launch some supporting the Report of the AfCFTA countries that have not yet tools for the AfCFTA and Champion, the President of signed to rapidly join and it was therefore important Niger who will be hosting ratify the Agreement to make that the Ministers conclude the meeting. The Champion’s progress with the AfCFTA them. The supporting tools report will be considered in a implementation roadmap he mentioned were: the closed session of the Summit and ensure that the continent Pan-African Payments and and decisions will be adopted moves forward together as Settlements Platform; Online by the Summit on the basis one entity. Mechanism for Monitoring, of the Champion’s Report. Reporting and Elimination She concluded her speech of Non-Tariff Barriers within by emphasizing that the the AfCFTA; The password The Chairperson of the Economic Commission for protected online portal AMOT, Honourable Amelia Africa (ECA) is working with 15 for tariff concessions and Kyambadde welcomed African countries to develop Dashboard of the African Ministers of Trade and National AfCFTA Strategies Union Trade Observatory. started out her remarks by to guide implementation. In addition, the July Summit commending the active The organisation is also is expected to adopt the participation of all AU hosting 3 regional AfCFTA agreed Rules of Origin for the Member States that have forums to build advocacy, AfCFTA. The Commissioner enabled achievement of and is developing an AfCFTA thanked the Ministers for the entry into force on 30 Country Business Index to their strategic guidance which May 2019 of the Agreement support monitoring and contributed to the successes establishing the African evaluation with wholly new so far achieved during the Continental Free Trade Area primary data. The ECA had whole AfCFTA process. “If (AfCFTA). reaffirmed its readiness you Honourable Ministers fail She thanked the AMOT and to support and assist all to resolve the outstanding stakeholders to ensure that the bureau for the support issues on the supporting rendered to Uganda during the AfCFTA is effectively instruments, the message implemented for real her chairmanship and that will be going out is that highlighted the key areas development benefits in nobody seems to care about Africa. of success attained during authority anymore! the previous year being: the The Commissioner for I am sure you Honourable entry into force of AfCFTA Trade and Industry, His Ministers do not want to on 30th May 2019; agreed Excellency Amb. Albert M. convey such a powerful product specific rules of Muchanga, welcomed the and negative message” he origin at 88 percent; Africa African Ministers of Trade to articulated. He also urged Trade Observatory; NTB the AU Headquarters and them to provide the necessary monitoring and elimination emphasized that the primary political oversight to the mechanism; and approved purpose of the meeting remaining negotiations on guidelines and roadmap for was to prepare for the 12th the AfCFTA while providing the negotiations of trade in Extraordinary Summit which further guidance to any services. She underscored is scheduled to take place remaining sticky areas. that with the entry into force on 7th July 2019 in Niamey, of the AfCFTA, the focus

10 11 The Newsletter of the Department of Trade and Industry Activities should now shift to how Africa Trade; Infrastructure service market schedules Africa can strategize to take interconnectivity and and trade remedies, she advantage of the huge market trade facilitating logistics; urged Ministers, to take the opportunities and boost Industrialisation and opportunity to transform intra Africa trade. “Africa’s development of regional Africa for the benefit of future population has been on the value chains; Employment; generations. increase over the past 50 and beneficiation of minerals years. The continent is home and natural resources. to over 1.2 billion people, Before she concluded, the over 60% of whom fall below Chairperson stressed that a the age of 25. The population united Africa will be powerful, of Africa is projected to attractive to investment and double by 2050 to around a solid negotiating force. 2.4 billion people”, she While noting that there is still mentioned. She highlighted outstanding work on product five key priorities for Member rules of origin, finalization States as Boosting of Intra- of tariff offers, trade in

PDAC 2019: Commissioner Muchanga urges Canadian Investors and African Diaspora to invest in Africa as the Continent is creating a large market anchored on the African Continental Free Trade Area (AfCFTA)

10 11 Activities The Newsletter of the Department of Trade and Industry he African Union It was also an opportunity As the trusted Commission (AUC) for the AUC to promote representative of the Tparticipated in the value addition and sector, PDAC encourages Prospectors and commodity-based best practices in Developers Association industrialization as part technical, operational, of Canada (PDAC) Trade of the African Union environmental, safety and Show event from 03-06 Commodity Strategy social performance. March 2019. guided by the aspirations The African Union of the Agenda 2063 and The key objective of the Commission’s Delegation the principles of the Africa African Union Commission was led by H.E. Amb. Albert Mining Vision. led Delegation was to Muchanga, Commissioner provide a platform for PDAC is the leading voice for Trade and Industry business dialogue and of the mineral exploration of the African Union establishment of linkages and development Commission including the between the African community. With over Chairpersons/Presidents Private Sector, the diaspora 8,000 members around of the African Chambers and the Canadian Private the world in all sectors of Mines and Other Sector with a view to of the mining industry, Mining Associations of promoting investments in the PDAC’s mission is Africa (ACMMAA) and the exploitation of mineral to promote a globally- Sub-Regional Associations resources and to share responsible, vibrant and of the Chamber of Mines best practices in Public sustainable minerals for Eastern, Central and Private Partnerships. industry. Southern Africa.

12 13 The Newsletter of the Department of Trade and Industry Activities

In his keynote speech at “This will be anchored “The market will have the 20th Annual African on the development of rules of origin, schedules Mining Breakfast hosted Regional Value Chains. of concessions on tariffs by the Canada-Africa We are also working on on trade in goods, non- Chamber of Business Protocols of Investment, tariff barriers monitoring and MineAfrica Inc., H.E Competition Policy and mechanism, digital Amb. Albert Muchanga IPRs. These will make payments and settlements underscored the Africa more attractive platform as well as a Trade importance of government to investment”, he Observatory. We are to ensure that they have underscored. The hence launching a market stable mining law and Commissioner for Trade that will be ready for use policies in order to attract and Industry furthermore, by the market players”, & sustain investments. announced that the he echoed and adding Commissioner Muchanga operational phase of the that Africa is going into informed the audience African Continental Free beneficiation through the that the African Union Trade Area (AfCFTA) development of regional Commission is in the which offers large market value chains, in line with process of drafting a opportunities for large the AMV. Commodity Strategy to scale and long term In his opening address, complement the Africa investments, will be H.E. Assefa Kumssa, Mining Vision (AMV) in launched in July 2019 in State Minister, Mines value addition. Niamey, Niger. and Petroleum of the Federal Republic of

12 13 Activities The Newsletter of the Department of Trade and Industry Ethiopia, highlighted the implementing are mapped It provided essential importance of geological against the 9 clusters of contacts and information data regretting that there the AMV, firmly rooting our about the AUC and also is not enough investment mining strategy, policy and displayed information in this particular area in legislation within a broader from across the continent Africa. continental framework”, on mineral resources he concluded.Earlier on development to be “If we make this 3th March 2019 the AUC provided by the Sub- investment, we can organized the first ever regional Associations of negotiate with companies African Union Diaspora the Chamber of Mines. from an informed Minerals Forum. The perspective. We can also At the PDAC 2019 Closing objective of the forum, attract higher quality Ceremony, the African was to develop a platform exploration companies”, Delegation including the for dialogue between the he mentioned. Commissioner for Trade African Diaspora in Canada and Industry of the AUC, H. The Honourable State and the AUC delegation E. Amb. Albert Muchanga, Minister also pointed out to PDAC. got for the third time, that African Governments The forum was also set the privilege to close the should ensure that there is with a view to facilitating Toronto Stock Exchange generational benefit from consultation and Index (TMX). the natural resources the engagement on selected continent is endowed with. topics related to Mineral He indicated that one of Resources Development the tools for achieving this, and Africa’s Broader is through fiscal regimes We are witnessing Development Agenda. In ‘‘ such as royalties and growing his opening statement, taxation with a long term remittances Commissioner Muchanga perspective as they need reiterated to the African by the African to be fair, transparent and Diaspora that Africa is Diaspora. predictable. creating a large market Before he concluded, anchored on the AfCFTA These are the State Minister and call on them to set up projected by the Kumssa informed the a mechanism in order to World Bank to grow into a vital platform Seminar that Ethiopia be US939 billion is currently working for continuous dialogue this year. The closely with the Canadian and networking. International Resources African Diaspora At the PDAC 2019 Trade and Development Institute has embarked on Show, the AUC managed (CIRDI) which, he said, feasibility study to to secure a booth that is the genesis of the provided high visibility for set up investment Ethiopian Mining Reform in its activities as well as for facility on the line with the Africa Mining other African countries. Continent. Vision. “All reforms we are ‘‘

14 15 The Newsletter of the Department of Trade and Industry Point of View Fostering Customs Cooperation with the Regional Economic Communities and Building Capacity on Harmonized System By Dhunraj Kassee - Senior Policy Officer, Customs Cooperation Division It is expected that this will also limit, if not eliminate the duplication of efforts and resources into competing projects and activities and will provide a platform for generating synergies, sharing of experiences and best practices and mutual assistance etc. Since then, the Committee have met for eight times and the last meeting of its kind was held in February 2019 in Arusha, Tanzania.

The major objective of the 8th meeting was, inter alia, to update he institutional and cooperation. It is in and exchange ideas Tarchitecture as that regard that a forum, on the various customs enshrined in the Abuja very well known as the modernization and trade Treaty recognizes the ‘AUC-RECs Customs facilitation initiatives being eight (8) Regional Coordination Committee’ implemented by the RECs, Economic Communities was established around as well as to ensure the (RECs) as ‘building 2008/2009. proper coordination of blocks’ necessary for projects, programmes The principal objective the establishment of and activities between the of the Coordination the African Economic Customs Departments of Committee is to provide Community. the RECs and the Customs for the proper coordination Cooperation Division However, it is an of projects, programmes of the Commission undeniable fact that these and activities necessary for more specifically within RECs are actually governed an efficient, effective and the context of new by specific mandates, orderly implementation of developments such as objectives, plans and the customs cooperation the development of the programmes in addition and trade facilitation AU Trade Facilitation to different institutional measures under the Abuja Strategy and the African and legal framework Treaty. Continental Free Trade hence the pressing need Area (AfCFTA). for proper coordination

14 15 Point of View The Newsletter of the Department of Trade and Industry

Participants attending the AUC-RECs CoordinationCommittee meeting in Arusha, Tanzania

It is expected that the It is worth noting that He urged the participants deliberations would other Partners and to discuss in details matters also permit an effective Organizations were of cooperation in Customs implementation of the added into this essential and come up with the way recommendations and grouping with the same forward so as to enable decisions of the AU Sub view to ensure that there proper coordination Committee of Directors is no further duplication of among the RECs to avoid General of Customs efforts and resources while duplication and mainly to (AUSCDGC) -a statutory the required synergies put in good use the limited body created by the are in fact strengthened resources available. Assembly to deal with with the ultimate aim of Customs and Trade advancing the continent in Earlier, the Head of the Facilitation matters at the the supply chain of goods. Customs Cooperation African Union level. Division, Mr Aly Iboura Speaking during the Moussa had reminded The meeting was attended official opening session, delegates of the by experts from seven the Director of Trade important role played by out of the eight RECs at the EAC Secretariat, RECs in Africa’s Regional namely COMESA, EAC, Mr Alhaj Rashid Kibowa Integration Agenda as well ECOWAS, ECCAS, stated that the Sub- as in facilitating trade in IGAD, SADC and UMA Committee Meeting on respective regions. Secretariats, the World Customs Cooperation is Customs Organization an opportunity for AUC Interestingly, the meeting (WCO), UNCTAD, UNECA and RECs to strengthen that was in fact hosted and the Regional Office cooperation on matters by the EAC Secretariat, for Capacity Building (East regarding Customs as well also benefitted from the and Southern Africa and as trade facilitation presentation of the new West and Central Africa EU-WCO Programme for region). the Harmonized System in Africa.

16 17 The Newsletter of the Department of Trade and Industry Point of View

Participants at the African Union Commission for the launch of the EU-WCO Programme for the Harmonized System in Africa.

The Harmonized System required organizational While officially launching is actually an international capacities and resources the Programme, the terminology for the to apply future HS versions Director of the Department classification of products (especially HS 2022) in a of Trade and Industry, and allows participating timely and coordinated Mrs Treasure Thembisile countries to classify traded manner throughout the Maphanga stressed that goods on a common basis respective regions and the there is need for Africa for customs and trade entire continent. to have the capacity to related purposes. play an equally important The official launch of the role to ensure that those This programme is funded Project was in fact done commodities which are of by the European Union in Addis Ababa, Ethiopia interest to the Continent (EU) as part of the EU’s at the seat of the African are properly identified, External Investment Plan Union Commission on the described and coded. and the Joint Africa-EU 27th February 2019. Strategy and implemented by the WCO. A considerable number of Member States and RECs It is designed to were present at the event. complement other Member States and RECs efforts aiming at the have been strongly urged implementation of the to take advantage of this African Continental Free initiative that will not only Trade Area (AfCFTA) build capacity on the and the World Trade Harmonized System but Organization Trade also ensure proper tariff Facilitation Agreement negotiations in the context (WTO-TFA). The longer- of the AfCFTA. term objective is to provide African countries with the

16 17 Point of View The Newsletter of the Department of Trade and Industry Role of Customs Admistrations during Preparations of the Schedules of Tariff Concessions under the AfCFTA By Willie Shumba, Senior Expert, Customs more than 10% of intra- African imports. The exclusion list would be subjected to double qualification and anti- concentration clauses where the excluded products should not exceed 10% of total import value from other State Parties. In other words, products to be excluded from liberalization will represent no more than 3% of tariff lines accounting for no more than 10 percent of the he 32nd Ordinary The decision by the 32nd Ordinary value of imports from other Session of the African African countries. This was TUnion Assembly of Heads Session requested the African Union Ministers to ensure a commercially of State and Government, viable AfCFTA. There is which met in January responsible for trade to submit the schedules of a transitional period of 5 2019 in Addis Ababa, years or less that may be amongst its resolutions, tariff concessions, in line with agreed modalities to used for countries which endorsed a template on require flexibility before tariff liberalization, which the July 2019 Assembly for adoption. the start of liberalization will be used by Member of sensitive products. States in preparing the schedules of tariff Overview of Modalities This means that during this concessions under the on Tariff Liberalization period, tariffs applicable African Continental Free to sensitive products may Trade Area (AfCFTA). The modalities for tariff liberalization are be based be maintained as long Member States will then on 90% of the tariff lines as they are eliminated use the template to being duty free within a by the end of the phase- identify those goods which period of five years for down period provided would be granted duty LDCs and 10 years for for under the modalities. free concession under the non-LDCs. The remaining Sensitive products will be AfCFTA. In addition, the 10% covers both sensitive liberalized over 10 years template also provides products and those for developing countries details of the sensitive on the exclusion list. and 13 years for the LDCs. products that would be Sensitive products should liberalised over a longer not exceed 7% of total Role of Customs period and goods on the tariff lines, whereas the As Member States exclusion list. exclusion list should not embark on preparation exceed 3% of total tariff of tariff offers, Customs lines and not constituting administrations will have

18 19 The Newsletter of the Department of Trade and Industry Point of View

a role to play in the data It is an international legal or provide splits going analysis and giving the instrument which has beyond the 6 digit to, necessary support to their been adopted globally for example, the eight or respective governments. as a method of coding more digits in order to The modalities already goods and it uses meet national or regional refer to certain Customs standard commodity requirements. elements such as tariff descriptions. Through the lines, use of statistics and use of numeric coding of It will follow that countries valuation. commodities, goods are using the 8 or more digit methodically grouped and code will have more than Amongst others the classified into sections, 5387 tariff lines. The WCO following three roles chapters, headings and and its regional structures illustrate the relevance of subheadings. The HS has together with Customs Customs administrations gone beyond describing administrations have in the process of preparing and coding goods. It is invested resources in the tariff offers: also used for such other training of customs officials purposes such as the in order to build the Interpretation of the collection of statistics, necessary required skills Harmonized System trade negotiations, for the implementation of allocation of rates of the HS. Collaboration with The Harmonized System customs duties, and in and the engagement of (HS) is based on the World determining certain rules Customs administration at Customs Organization’s of origin. national level will be able (WCO) “International to assist Governments in Convention on the The WCO’s HS is based on the preparation of tariff Harmonized Commodity 6 digits and has a total of concessions. Member Description and Coding 5387 tariff lines. Countries States can therefore System” which entered using the HS are at liberty utilize the Customs into force in 1988. to further identify goods skills in identifying

18 19 Point of View The Newsletter of the Department of Trade and Industry The involvement of Customs in the completion and submission of the template of tariff liberalization is important. It is therefore important for Member States to engage with their own Customs administrations and to tap on the available expertise as they prepare tariff offers. Customs administrations are just one of the agencies which can assist in the preparation of the schedules of tariff goods of interest to Statistics concessions. Some of them and ensuring that these agencies would be such commodities are Many Governments utilize departments responsible appropriately identified Customs services in the for eg Finance, Economic and coded. collection of raw trade data. Planning, Statistics, The data is then passed on Foreign Trade and the Interpreting Issues to the appropriate national Central Banks. Relating to Rates of agencies for processing Duties into national statistics. There is therefore need for Customs Administrations Customs to engage with The HS is used as a tool would therefore also other stakeholders in this for the allocation of rates be able to assist with exercise. Member States the supply, clarifications also need to be aware of of customs duties to the the resources or expertise, various tariff lines and or interpretation of certain data within which includes Customs, codes. These tariff rates and which they can utilize come in various forms. their competencies. Preparations of tariff during the preparation of They can be ad valorem offers, sensitive or tariff offers. (percentage of value) exclusive lists involve or specific rates (when the use or simulation of customs duty is based on basic information such as some specific measurable quantities and valuation of units such as quantity). goods imported. The rates can also be given as alternative rates (which provides the use of either/ or as options) and at times it can be a combination of the different formats. The interpretation of these rates is required to determine the possible losses or gain or impacts on revenue collection per tariff line or global. The expertise of Customs would again be required in reading or utilising the information.

20 21 The Newsletter of the Department of Trade and Industry Activities

The African Union Commission participates in the 2nd High-Level UN Conference on South-South Cooperation (BAPA + 40) in Buenos Aires, Argentina

delegation from the Mr. Tabaré Vázquez, and the During the next two days, AU Commission led UN Secretary General, H.E. the delegates will review and byA AU Commissioner for Antonio Guterres as well as adopt the Draft Outcomes Trade and Industry, H.E. other Dignitaries. Document, which will charter Albert M. Muchanga a new course for South-South and AU Commissioner The President of Argentina cooperation over the next for Economic Affairs, reminded the Delegates that decades. H.E. Pr. Victor Harison, is 40 years after the Buenos participating in the 2nd Plan of Action was adopted in On the eve of the Official High-Level UN Conference Argentina in 1978, the issues opening of the BAPA+40 on South-South Cooperation and challenges that led to Conference, on March 19, (BAPA + 40), which takes the said Plan remain relevant, 2019, AU Commissioner place from 20 to the 22 although the context was for Trade and Industry, H.E. of March 2019 in Buenos different. Albert M. Muchanga and AU Aires, Argentina under the Commissioner for Economic In his statement, the UN Affairs, H.E. Victor Harison theme “The role of South- Secretary General highlighted South cooperation and the shared the experience of five key issues, which could the African Union in building implementation of the 2030 be improved through South- Agenda for Sustainable and strengthening South- South Cooperation: rising South Cooperation among Development: Challenges social inequalities, climate and opportunities”. African regional economic change, and infrastructure communities, during two The Official opening was and power deficit, gender side events: the first was the presided by H.E. Mr. inequalities and support for High Level Panel Session Mauricio Macri, President of multilateralism. jointly organized by the Argentina, in presence of the Organization Internationale President of Uruguay, H.E. de la Francophonie (OIF)

20 21 Activities The Newsletter of the Department of Trade and Industry and the UN Office for 2063 goals is “productive –south Cooperation. He South-South Cooperation transformation”. According requested the Commissioner (UNOSSC), Regional to Prof. Harison, this would to convey to the AUC Representation for Africa allow to (i) add value to Chairperson, UNDPs under the theme “Enhancing unprocessed raw materials commitment in supporting South-South Cooperation before export, (ii) create Africa’s women and youth through the African decent and productive jobs programs including providing Continental Free Trade Area for the growing youth on the funding for the recruitment (AfCFTA) and Promotion continent, and (iii) ensure of 20 Women under the AUC of the interconnection of the integration of African Junior Professional Program, Francophone economic economies into the global the AUC governance areas through South- economy. He also invited programs and as well as South and tripartite partners from the South holding a retreat on the new cooperation.” During this region for co-production, role of the NEPAD-AUDA. Session, Commissioner co-investment and joint- Muchanga highlighted that ventures, particularly in the Commissioner Muchanga is the AfCFTA opens new sectors of agriculture and also expected to participate avenues for enhanced South- digital economy, recalling in the Panel discussion on South Cooperation among the natural resources and “South-South Cooperation between African regions as minerals available to the for Economic Integration: well as between Africa and continent. UNCTAD’s Platform” on other countries or regions of March 21, 2019, which will the South. The second Session discuss opportunities that BRI was organized by the could provide in facilitating Some of the areas of Association of South East- knowledge sharing and cooperation include Asian Nations (ASEAN), on policy experience exchange conclusion of trade the theme “Shaping the among developing countries. agreements with other Future of Regional South- regions of the South, the South Cooperation: Sharing Commissioner Harison is development of regional the ASEAN Experiences also expected to participate value chains for commodities and Nurturing Synergies in the Panel discussions on such as cotton, as well across Regions.” During his “Transition to sustainable as trade and investment intervention, Commissioner development: New pathways promotion through events Muchanga highlighted for co-operation to fulfil such as the Intra-African that the AfCFTA opens Agenda 2030” organized Trade Fair (IATF). new avenues for enhanced by the Organisation for Cooperation between Africa Economic Co-operation and In this regard, Commissioner and ASEAN. As Africa Development (OECD) and Muchanga indicated that a moves to set up AfCFTA “Illicit financial flows and number of countries from the institutions and implement illicit trade in Africa” jointly South (China and Indonesia) the Agreement, ASEAN’s organized by UNCTAD and had countries’ pavilion at experience would be very United Nations Development the inaugural IATF in Cairo, useful. Programme (UNDP). Egypt, in December 2018 and several others where On the sidelines, Commissioner Muchanga represented through their Commissioner Muchanga and Commissioner Harison companies. He invited more also held a bilateral meeting are supported Mr. Jean countries from the South to with Achim Steiner, the Bertrand Azapmo, Regional attend the second edition, UNDP Administrator. He Trade Adviser, Mr. Charles, which will take place in briefed him on the various Mr. Chiza Charles Newton August, 2020 in Kigali, programs that the AUC is Chiumya, Senior Trade Rwanda. implementing, including policy officer, Mr. Mohamed the progress in the AfCFTA El Alaoui, Officer, AU In his intervention, H.E. process. Permanent Mission to New Prof. Victor Harison, AU York and Ms. Anais Georges, Commissioner for Economic On his part the UNDP Special Assistant to AU Affairs, highlighted one of Administrator commended Commissioner for Economic the African Union's strategies the progress being made Affairs. for achieving Agenda in Africa including on south

22 23 The Newsletter of the Department of Trade and Industry Activities

Cooperation between the African Union and Argentina: Commissioner Muchanga meets Amb. Jorge Marcelo Faurie, Minister of Foreign Affairs of Argentina

n the last day of the Jorge Marcelo Faurie, with the entire continent. O2nd High-Level UN Minister of Foreign Conference on South- Affairs and Worship Commissioner South Cooperation of the Republic of Muchanga began by (BAPA + 40) that took Argentina. The Meeting, conveying to Minister place in Buenos Aires, which started at 11:00 Faurie the greetings Argentina, H.E. Amb. hrs and lasted for close of the Chairperson of Albert M. Muchanga, AU to one hour, provided the AU Commission, Commissioner for Trade an opportunity to review H.E. Mr. Moussa Faki and Industry and Head of the state of cooperation Mahamat. He expressed the AU Delegation, paid and relations between his appreciation for a courtesy call on H.E. Argentina and the the courtesy and Amb. African Union as well as hospitality afforded to

22 23 Activities The Newsletter of the Department of Trade and Industry the Delegation of the Minister Faurie further discuss the issue AU Commission since thanked Commissioner with the Chairperson of their arrival in Buenos Muchanga for the the AU Commission. AU Aires on March 18, courtesy call and renewed Commissioner for Trade 2019. Commissioner the appreciation of and Industry informed Muchanga stated that the Government of Minister Faurie that 21 the recurrent message Argentina for the National Parliaments from the BAPA+40 statement in the have already approved Conference was that Declaration of the the ratification of the “the principles and Malabo Summit on the AfCFTA and that the last spirit, which came out Malvinas Islands. In one will be secured in of the Buenos Aires addition, he inquired the coming days. Conference in 1978 were about the status of still alive and growing”. ratification of the AfCFTA On cooperation with and indicated that one MERCOSUR, he pledged One of the initiatives avenue for South-South to bring the issue to through which the Africa cooperation, which the attention of H.E. Union Commission is should be considered Moussa Faki Mahamat, operationalizing South- and pursued, is the the Chairperson of the South Cooperation is by cooperation between AU Commission and promoting the African Africa, through the promised to work for Continental Free Trade AfCFTA, and the the materialization of Area (AfCFTA), which Southern Common the visit of the President will be officially launched Market (MERCOSUR). of MERCOSUR to in July 2019, in Niamey, the African Union Niger. The AfCFTA In this regard, Minister Commission to take will in turn facilitate Faurie informed place as soon as the cooperation between Commissioner opportunity arises. Africa and other Regions Muchanga that the of South. current President of Attending the courtesy MERCOSUR is a national call were close aides of Commissioner Albert of Argentina and that Minister Faurie as well Muchanga concluded the Government of as the Ambassador of by recalling the Argentina could help Argentina to Ethiopia cooperation between facilitate the process. and to the African Union, Africa and Argentina on One action to be H.E. Amb.Gustavo the issue of the Malvinas undertaken in the Teodoro Grippo. Islands as evidenced in short term would be an the Declaration of the invitation to the President Malabo Summit. of MERCOSUR to Addis Ababa, Ethiopia, to

24 25 The Newsletter of the Department of Trade and Industry Activities African Union, European Commission, International Trade Centre launch online Trade Observatory of up-to-date trade data

Source: ITC News will enable them to identify H.E. Ambassador Albert market opportunities M. Muchanga, the African he African Union and will facilitate the Union’s Commissioner for TCommission together effective monitoring of Trade and Industry, said: with the European the implementation of the ‘In an era where everything Commission and the agreement once it enters revolves around data and International Trade Centre into force. Data and analyses information and where data have set up the African will be available through a has become the new oil , I Union Trade Observatory, web-based platform. would like to appeal to other a key pillar of the African partners, private or public, to Continental Free Trade Area (AfCFTA). Chief executive officers of regional economic communities and other partners attended this event.

The Observatory will provide entrepreneurs, policymakers and other key stakeholders with up-to-date, reliable trade data and statistics across the continent.The Observatory

24 25 Activities The Newsletter of the Department of Trade and Industry

join us in building a robust We thank the African Union is another example of the AU Trade Observatory. for the confidence it has Africa-Europe Alliance in placed in us to deliver the motion.’ Common Market This will enable African Trade Observatory, and we for Eastern and Southern policymakers and the African thank the European Union for Africa Secretary-General private sector to make data- its support. We look forward Chileshe Kapwepwe, on driven and evidenced-based to this being an integral tool behalf of the African regional trade and trade-related as the continent moves to economic communities, said: policies and decisions and closer integration.’ ‘We play a fundamental role to take full advantage of as implementing partners of the African Continental Free European Commissioner for the African Continental Free Trade Area.’ International Cooperation Trade Area, represented in and Development Neven the Committee of Senior Arancha González, Executive Mimica said: ‘The new African Trade Officials. Director of the International Union Trade Observatory is Trade Centre, said: ‘Data another step towards the Our organization already is the new gold. The future African Continental Free collects data that could success of countries is Trade Area, which will help be fed into the Trade premised on how well they the continent harness its Observatory and aims to use data to make strategic economic potential. coordinate actions to resolve decisions, craft evidence- non-tariff barriers, harmonize based policies and transform It will provide the African standards and monitor it into intelligence for the Union, the African countries practices at sub-regional and small and medium-sized and the private sector with national levels.’ companies that make up the data and statistics that are vast expanse of the trade essential for the sound and business ecosystem. monitoring of continental trade and evidence-based policymaking. Our support of €4 million to this Observatory

26 27 The Newsletter of the Department of Trade and Industry Activities The African Union Commission Holds a Meeting on Trade Information prior to the Establishment of the AU Trade Observatory

he first Consultative thereby necessitating the In his opening remarks, Mr. Meeting on Trade need to establish a functional Nadir Merah, Head of Trade TInformation and the Trade Observatory that will Division of the Department of Establishment of the AU serve as the main repository Trade and Industry, stressed Trade Observatory was of both quantitative and that reliable, up-to-date and held from 6-8 March, 2019 qualitative trade data and easily accessible Trade data in Dar Es Salaam, Tanzania. trade information at the and statistics are essential for continental level to support taking full advantage of intra- The meeting discussed, Governmental institutions African Trade opportunities. among others, ways to and the private sector enhance synergies between to make evidence-based The meeting has brought the various trade information and informed policies and together officials from the initiatives and systems across business decisions. African Union Commission, Africa, which are critical for African Union Member an effective implementation The meeting was officially States, the Private Sector, of various regional trade opened by Dr. John Mduma, AU Partners and experts agreements, the African Director General of Tanzania involved in trade information Continental Free Trade Area Fair Competition Commission and related issues. (AfCFTA) Agreement and under the Ministry of Industry the Boosting of Intra-African and Trade. He stressed the Trade (BIAT), taking into challenge of use of unreliable consideration the upcoming and outdated trade, poor execution of the Project Intra-African Trade, informal for the establishment of cross border trade, critical the African Union Trade role that the ATO will play Observatory (ATO). in achieving the AfCFTA. He further encouraged The Intra-African Trade participants to engage stands at 14% for imports and fully during this important 18% for exports as of 2015 consultative meeting.

26 27 Point of View The Newsletter of the Department of Trade and Industry The International System of Units (SI) and the Road for Africa to the Revised SI By Dr Wynand Louw and Dr Aletta Karsten, NMISA and AFRIMETS In 1875 the Metre Convention (Convention du Mètre) was signed by 17 major industrial countries that introduced the “metre”, the “second” and the “kilogram” as the basic units of measurement for length, time and mass respectively. The metre was defined as 1/10 millionth of the distance from the North Pole to the equator. From the metre the kilogram was deduced by defining it as the mass of a volume of 1 000 cubic centimetres or 1 litre, of pure water.

Platinum/iridium copies of the metre and the kilogram were made to represent the quantities as defined, and were placed in Paris at the International Bureau ccurate and This made it difficult to of Weights and Measures comparable trade fairly and virtually (BIPM). Countries measurementsA depend on impossible to manufacture that signed the Metre globally agreed units of components for systems in convention procured measure, an independent different parts of the world copies of these standards way of realising “base” that would fit together that were periodically units according to an perfectly. compared to the agreed method and the international prototypes. establishment of common During the 19th century the “Metric system” was references traceable to Time was defined in terms introduced that based the realisations of these of the duration of one measurement units on base units. full rotation of the earth, “global constants” such as divided into hours, minutes Prior to the 19th century the earth’s circumference and seconds, with the a myriad of measurement and rotation that allowed a second, the base unit of units was in use in the comparable measurement time, defined as 1/86 400 world. system across the globe. of one full earth rotation.

28 29 The Newsletter of the Department of Trade and Industry Point of View The other four base units The definitions of the At this point, only the (kelvin, candela, ampere units of time (second), International Prototype and mole) were added in and luminous intensity of the Kilogram (IPK) the following 100 years and (candela) were also re- remained as an artefact in 1960 the International defined in terms of international standard of System of Units (SI) with its “quantum” constants, measurement. 7 base units and derived i.e., caesium frequency units, were introduced. and frequency of But it became evident monochromatic radiation since the late 1900’s that For the next 58 years this respectively. the mass of the IPK may system served the world be drifting and the system and fostered fair trade, A new definition based was no longer accurate industrial development, on a quantum constant enough for modern accurate environmental was therefore also needed advances in technology - monitoring, assisted health for temperature. The an unsatisfactory situation. care and allowed for law Kelvin, the base unit enforcement. for temperature, was In addition, the definitions defined in terms of an of two other units, namely Revision of the SI intrinsic property of water the ampere (electricity) (known as the Boltzmann and mole (amount of Over the years numerous substance), were also changes were made to constant) that, while being an invariant of nature, related to mass. It seemed the International System logical therefore to re- of Units, with the ultimate in practice depends on the purity and isotopic define the kilogram in aim being to define all terms of a “quantum” the SI units independently composition of the water used. The re-definitions of constant also, and the anywhere in the world. Metrology community By the end of the 1970’s these units were therefore as follows: over a period of more all the units were defined than 30 years developed based on fundamental • Length or dimension - the theory and practical constants of nature with a measured in metres in realisations to be able to “recipe” approved by the terms of the speed of redefine the three mass- International Committee light; related units as follows; for Weights and Measures (CIPM), so that the SI units • Thermodynamic Mass - measured in could be realised in any temperature - kilogram (kg) in terms of country with the required measured in kelvin the Planck constant, h, expertise and equipment. (K) in terms of the Boltzmann constant, Electric current - measured The definitions of the units in in ampere (A) in terms were updated in terms • Time - measured in of the elementary charge of scientific parameters seconds based on (electron or proton), and known as “quantum Caesium frequency defining constants”. For Luminous intensity Amount of substance - example the metre was measured in mole (mol) later re-defined in terms • measured in Candela in terms of the Avogadro of the distance that light based on a stated constant. travelled in one second in a frequency Hz, ,) vacuum (the speed of light of monochromatic All seven SI unit definitions is a universal constant). radiation. could now be based on constants that describe

28 29 Point of View The Newsletter of the Department of Trade and Industry At least two countries in Africa (South Africa and Tunisia) have indicated that they will introduce new primary standards for mass, i.e. either a Kibble (Watt) balance or the X-ray Crystal Density (XRCD) standard, to ensure that Africa has a primary realisation of the unit of mass. Other major National Metrology Institutes (NMIs) operating as “regional hubs” in the sub-regions of Africa such as NIS (Egypt), KEBS (Kenya), NMIE (Ethiopia) and GSB (Ghana) are collaborating with other NMIs to ensure that the Revised SI is implemented throughout Africa.

It is envisaged that the implementation of new the natural world (the so Realising the Mass methods for the realisation called defining constants). of temperature and This culminated in the Unit electric current will take a “Revised SI” that was Accurate mass few years and until then, officially adopted on 16 measurement is important the current realisations November 2018 by the 59 for many everyday activities of the temperature scale Member countries of the including trade. Two and the use of voltage and Metre Convention (and methods were proposed resistance standards to witnessed by 42 Associate to realise mass. The first is calculate the ampere, will member countries). through a Kibble balance remain. (formerly called the Watt Four African nations took The NMIs mentioned balance). part in the voting. The above are also Revised SI will come into The second is the X-ray discussing plans for the effect on 20 May 2019 Crystal Density (XRCD) implementation of new (World Metrology Day). method, where the primary temperature From this date the new dimensions of a smoothly standards and the definitions will be used to polished Silicon sphere is measurement of the realise the units. More info determined and using the electron charge as a on the background of the Avogadro constant and primary standard for revised SI units is available the mass of a Silicon atom, current, once the methods on the BIPM website, the mass of the sphere can of realisation are changed. (https://www.bipm.org/ be calculated. en/si-download-area).

30 31 The Newsletter of the Department of Trade and Industry Point of View Harnessing the 4th Industrial Revolution for Inclusive and Sustainable Development in Africa By Chiza Charles CHIUMYA - Officer In Charge, Trade Division

Since the turn of this century, Compared to East Asia a youth and to generate the Africa has moved from a few decades ago, where knowledge and skills base to hopeless continent to a rising the foundations for manage a rapid process of one through the commitment dynamic growth were laid urbanization and to reap the of its Member States and by the formation of dense potentials of a demographic some valuable partners. production networks, dividend. In a major part assisted modernization of agriculture, by its natural resources these elements seem to be The 21st century’s global and endowments, Africa’s growth lacking for Africa to propel regional economic activities has been precedent in the itself into a virtuous circle will be characterized past 20 years. of growth and poverty by a high degree of reduction. interconnectedness in the However, a growth fuelled trade– investment–services– by a commodity boom The perpetual and key intellectual property alone and based on export challenge for African nexus, in which: trade will of raw materials did not countries is to ensure the be dominated by cross- translate into commensurate design and implementation border trade in parts and economic diversification nor of effective policies that components rather than in structural transformation that promote inclusive economic final goods, international would have led to inclusive and structural transformation investment will be in nor sustainable development and address the continent’s production facilities, training, for the African people deficiencies such as technology and long-term infrastructural development business; and infrastructure The sustainability and as well as institutional services such as in telecom inclusiveness of Africa’s capacity building. Africa sectors. The traditional impressive recent will need to redouble its model of trade is being growth depends on the efforts to ensure that these slowly but surely relegated to structural transformation challenges are counteracted. the same location where one of its economies, through In addition, careful pursuit of finds the old age barter trade enhanced productivity and Industrialization cannot be in modern times. greater diversification of postponed any longer. production and exports. Yet This is where the 4th Industrial manufacturing still accounts It is key to not only structural Revolution can be Africa’s for a meagre share of GDP in transformation but also to ally in its pursuit for inclusive most of its economies. the creation of the much and sustainable economic needed jobs for Africa’s growth and development.

30 31 Point of View The Newsletter of the Department of Trade and Industry Infrastructure deficit, and foster entrepreneurship development

In the context of the 4th industrial revolution, education, is essential to enable people to use the achievements of the industrial revolution, and by among others adjusting them to their environment, and to devise new, innovative ideas, As indicated before, whilst The growth of e-commerce procedures and solutions. Africa’s economic growth in Africa attest to this. In Infrastructure deficits are has shown some resilience, addition, a large number rated as one of Africa’s the growth itself has not of previously excluded constraint to development. been very inclusive let populations can now play alone sustainable. The a part in the economy due Within this, the level of women and youth have to a reduction of barriers development differs widely continued to be marginalized to entry. For example, the across sectors, for instance, especially in the areas of cost of some essential whilst the development sustainable employment. technologies and automation of water, electricity, and The Mediterranean Sea is will drastically be reduced transport infrastructure is now a mass grave of Africa’s and this will enable flexible, low, comparatively better youth who try to cross over small-scale manufacturing. outcomes have been to Europe as they seek Technology is becoming seen in telephony and greener pastures. The 4th better, cheaper, faster, more communication. With an Industrial Revolution offers a scalable and easier to use average of 204 kilometers new opportunity for Africa to than ever before. of roads per 1,000 square attain inclusive and suitable kilometers of which only development as it brings HOWEVER, thinking of Africa one quarter is paved, Africa myriad new possibilities harnessing the benefits of lags far behind the world through the use emerging the 4th Industrial revolution average of 944 kilometers physical, digital, and is akin to a student who is per 1,000 square kilometers. biological technologies. The writing a 4 part examination. This is not only a barrier to example of the revolutionary Whilst the rest of the students the connectivity between M-PESA that has now been are in part 4, this student is settlements – regions and adopted and adapted almost still dealing with issues of part countries. throughout Africa and has 2 and 3. Africa will need to immensely fostered financial do some catching up where Lastly, entrepreneurship inclusion comes to mind. necessary and immediately development goes hand leapfrog where possible. in hand with innovation. The 4th industrial revolution Fostering entrepreneurship will bring radical gains in There is need to reform, will encourage Africa, productivity, a chance for develop, improve, and adapt especially the youth to creation of new range of essential frameworks in such develop market based products and services for areas as good governance, solutions that would greatly trade as well as shift towards efficient infrastructure, assist in Africa’s agenda for more sustainable production flexible labor markets, inclusive and sustainable and consumption and a truly responsive legal systems, development. circular economy. It will also supportive and appropriate offer numerous chances rules and regulations, and By constructively addressing for countries to leapfrog institutions. Innovation these three, the 4th Industrial to the latest technologies policies and institutions revolution will assist Africa to and standards and thereby should play a leading role in term fundamental drivers and enabling access to new this context. Africa will need manifestations of exclusion markets which have remained to refocus its the education on the continent. closed. system, solve the perpetual

32 33 The Newsletter of the Department of Trade and Industry Point of View

SOAC (WAAS) Delivers its First Accreditation Certificates

By Mr. Marcel GBAGUIDI - SOAC Director General and Dr. Oswald Chinyamakobvu - Senior Technical Advisor - QI, AUC

s part of sustained obtain their accreditation ECOWAS Commissions quality assurance from foreign or far placed trusted UNIDO, through the andA creating confidence accreditation bodies at high quality programs financed in the market, conformity cost since an important by the European Union since assessment services part of accreditation costs 2000, to put an end to this providers (e.g. test relates to transport costs situation by supporting the laboratories, inspection for assessors travelling from growth of local accreditation agencies and certification their base countries. bodies. bodies) are required to be accredited as independent To recoup their expenses they Thus, with the aim of attestation of their would pass on these costs pooling resources and competence to provide to their clients as well. This enhancing efficiency, one of those services. situation was a hindrance to the solutions proposed was the development of several the establishment of the For a long time there were sectors of activity, including West African Accreditation no accreditation bodies trade. System (WAAS), a multi- in many regions of Africa economy accreditation body and conformity assessment As part of the implementation (AB) covering eight Member services providers had to of their industrial and trade States in West Africa (Benin, policies, the UEMOA and

32 33 The Newsletter of the Department of Trade and Industry

Burkina Faso, Côte d’Ivoire, for economic operators to comply with EU sanitary and Guinea Bissau, Mali, Niger, carry out the testing of their phytosanitary standards. Senegal and Togo). WAAS products in competent SOAC SOAC operation is therefore is more popularly known by accredited laboratories, timely. Laboratories involved its French acronym, SOAC, now able to provide their in the range of products standing for Systeme Ouest services at reasonable costs covered by the EPA may Africain d’Accreditation. to their customers. SAOC's require accreditation from proximity to its market SOAC to, in turn, offer their Today, SOAC, an atypical together with operating services to the economic model of accreditation body costs support received from operators involved at lower (there are less than five multi- the two Commissions and costs. For UEMOA and economy ABs in the world the Ivorian Government, ECOWAS, it is a concrete and only two in Africa) is enables SOAC to offer positive response to the fully functional. Based in the accreditation services 30% development of the agri- Republic of Côte d'Ivoire, to 55% cheaper than under food products sector, one of SOAC recently issued its previous arrangements. the priorities of the region. first accreditation certificates to four laboratories, For Côte d'Ivoire specifically, Beyond trade, SOAC including three in the agro- SOAC's operation coincides accreditation is useful food sector (Côte d'Ivoire: with the entry into force on for other sectors such as BIOTITIALE, VAGNY LAB 1 January 2019 of the Interim health. The LNSP has been and the National Laboratory Economic Partnership accredited for the testing of Public Health (LNSP )), Agreement (EPA) signed of iodine in salt. Iodine and one from the field of with the European Union. deficiency is a major global mass calibration (the LEMA The agreement allows a public health problem with of Benin).This development free access for certain food about 2 billion patients in opens new perspectives, products to the European 2014 in no less than 130 especially the possibility market, provided that they countries. The most affected

34 35 The Newsletter of the Department of Trade and Industry With its SOAC accreditation, the LNSP is helping to fill this gap.

The DG of the LNSP, 4th from the R and his team receiving their certificate from the hands of the President of the SOAC, Mr. A. Baro The Minister of Commerce, Industry and Promotion of SMEs of Côte d’Ivoire,

Mr. DIARASSOUBA (3rd from left), at the presentation ceremony of the accreditation certificate of the LNSP. social strata are pregnant In attempting to address this women and young children problem in Cote D’Ivoire, From L to R: Mr. Marcel with diseases such as goiter, one of the challenges faced GBAGUIDI, SOAC DG and Mr J.G. SANON, UEMOA Representative in Côte d’Ivoire

cretinism, low birth weight, was the non-availability of endemic mental deficiency competent laboratories to and perinatal mortality rate. test the iodine content of the salt sold on the markets.

For more details on SOAC/ WAAS contact:

http://www.soac-waas.org/; Email: [email protected]

Téléphone : (+225) 22 45 64 06;

34 35 a n i y a b

25 e p e p Editorial Team Mr. Hussein serves as the Head of Industry Division in the Trade and

Industry Department since August 2007, where his key duties are:

Formulate appropriate policies and plans of action- develop programs and project proposals relating to Industrial policies and coordinate and harmonize it among the AU Member States and REC’s; small

of industrial development; Industrial cooperation with International

Organizations, Academia, private sector and Civil Societies; and

Monitoring and Evaluation of Implementation of AU programs of developing industrial in Africa. Mr. Hussein holds a master of Public Policy and Management (MPP) majoring in “Trade and Industry” from Publishing Director the Korean Development Institute of Public Policy and Management Mr. Hussein Hassan

Ministers of Trade and Industry (From 1990- until end of July 2007) in Mr. Hussein Hassan Head of Industry Division

Editor-in-Chief Editor Associate Patient Atcho Meaza Tezera

Department of Trade and Industry 9th floor – New Complex Building P.O. Box: 3243 Roosevelt Street (Old Airport Area) W21K19 Addis Ababa, Ethiopia Mobile: (+251) 984 872 960 E-mail: [email protected] Website: http://www.au.africa/Web/TI Facebook: @AUTradeIndustry Twitter: @AUTradeIndustry Youtube: @AUTradeIndustry