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Finance & Economics

Trade

responses to

the covid-19

crisis in Africa Map of Africa showing EAC countries and flags

ike all countries across the globe, reduced trade, amidst suspicions rules, long queues of trucks are seen at
LAfrican countries responded to the regarding each others’ effectiveness in border points with truck drivers and the
pronouncement of the corona virus controlling the spread. business community raising concern
spread as a pandemic, by the WHO, in Each of the five countries constituting delays and possible loses owing to
March, with a flurry of activities and the EAC, have had different approaches, increased spoilage and damage of goods.
actions meant to stop the spread. Cargo moved between EAC countries
to some degree, and varying levels
These included, like elsewhere of restrictions in their fight against by truck is mostly food and agricultural
shutdowns and lockdowns of their the corona virus. While Uganda commodities.
borders. However, according to Trade and Rwanda have affected complete Non food and agricultural commodities
and COVID 19 Guidance Note by the lockdowns of economic activity for are largely imports entering the region
Word Bank, released in April, countries renewable intervals, Kenya, South through the ports of Mombasa and Dar-
in Africa should strive to maintain trade Sudan and Burundi implemented partial es-salaam, destined to the landlocked
flows during the crisis to secure access shutdowns. countries of Uganda, Rwanda, Burundi
to medical goods and services, and food On the extreme, Tanzania has to a and South Sudan. These ports also
and other essential items such as farm serve countries in Central and Southern
inputs. greater extent ignored all pressure and African, including DRC, Zambia and
panic buttons, allowing the population
This, according to the note, requires to continue with economic activity Malawi.
keeping borders open to the largest as usual. President Pombe Magufuli, According the Word Bank, trade in
extent possible and avoiding measures has argued that lockdowns would be both goods and services will play a
such as export bans or taxes. Countries detrimental to the economy and world key role in overcoming the pandemic
should take action to reduce taxes and hurt the poor most. This is despite the and limiting its health and economic
duties on trade, to streamline trade increasing infections in the country. impact, especially on the poor. The main
procedures and to support transport and East African countries have a customs purpose of this note is to highlight the
logistics services in maintaining cross- union in place, allowing the free moving opportunities and potential benefits
border and international value chains. of people, goods and services. Indeed, for African countries from coordinated
“By joining together, countries in despite the restriction, EAC countries measures on trade in response to the
Africa can implement coordinated have allowed movement of goods, aimed COVID19 pandemic.
trade measures that result in better at providing a lifeline for supplies, not In a recent live televised meeting, held
responses to the crisis. Joint actions only between member states, but from via zoom, Head of states, finally agreed
include bilateral cooperation on anywhere else. Cargo planes continue to on a coordinated approach to dealing
border management, joint information land at airports in the region to deliver with the movement of cargo trucks,
campaigns, coordinated purchasing goods—including medical supplies— or particularly, testing of truck drivers;
of medical equipment, partnering on pick up commodities for export.. however, implementation is becoming
repurposing production to produce yet another challenge.
medical goods, and management of The challenge however, is how to
manage movement of trucks hauling
health specialists to deal with emerging “Trade contributes by providing
hotspots on the continent” cargo across borders, with truck drivers countries access to essential medical
identified as asymptomatic carriers of goods (including material inputs for
In East Africa for instance, lockdowns the coronavirus, with a number of them their production) and services to help
across the EAC member states whose having tested positive. contain the pandemic and treat those
economies are interlinked has seen With each country issuing its own affected” say the note.

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