In Summary Desai says promoting business activities is one of the government's key agendas as far as the EAC trade is concerned. The PS said there is need to sensitize the traders on the relevant standard cross borders legislation and policies. Kenya is seeking to strengthen its relationship with the East African communities to promote intra- and cross-border trade. EAC Principal Secretary Kevit Desai said Kenya is in the process of building capacity among small-scale cross border traders and creating an enabling business environment across the Kenyan borders. He said promoting business is one of the government key agendas as far as the EAC trade is concerned. "The EAC trade has to be equally accessed by all the countries' members and that's why local traders must be empowered and presented with various business opportunities," he said. Desai said the East African Community is trading at 15 per cent on which they are looking forward to increase to 60 per cent. He said the cross-border traders are of great essence to promoting business amongst the EAC member states, if properly facilitated. He spoke on Friday while opening the training workshop for youth and cross border women traders on EAC regulations and procedures in Diani, Kwale county. At least over 40 Lunga Lunga cross border traders successfully received the training. The PS said there is need to sensitise the traders on the relevant standard cross borders legislation and policies to help establish strong ties and a good market for the traded commodities....

The government has said it is ready to reap the most of the United Kingdom (UK)’s new scheme aimed at growing trade with lower income nations, while supporting jobs and growth. On Monday, Britain commenced consultations on the UK Developing Countries Trading Scheme (DCTS) which aims at developing free and fair trading between the country and developing countries. According to a statement from UK’s International Trade Secretariat, the DCTS will apply to 47 countries in the Least Developed Country Framework (LDCF) and 23 additional countries classified by the World Bank as low-income and lower-middle-income countries. The statement says the proposed new UK scheme will mean more opportunity and less bureaucracy for developing countries by, among other things, simplifying rules of origin requirements or reducing tariffs on imports. The UK Secretary for International Trade Liz Truss said in the statement that trade, fundamentally empowers people and has done more than any single policy in history to lift millions around the world out of poverty. “Now that the UK is an independent trading nation, we have a huge opportunity do things differently, taking a more liberal, pro-trade approach that leads to growth and opportunity,” Truss said. Reacting in an interview, Minister of Trade Sosten Gwengwe said the country is ready to enter into agreements that will help spar trade moving forward. Gwengwe said, with the UK now out of the European Union, countries including Malawi are looking forward to striking trade deals that will propel development and working trade relations. “Government is...

African countries need to integrate their digital strategies in order to make goals of the Africa Continental Free Trade Area (AfCFTA) achievable and bring benefits to millions of people on the continent. This is part of the submissions of Managing Partner at Chanzo Capital, Eric Osiakwan while speaking at the recent special edition of the MTN Business Executive Breakfast Series on the theme “Accelerating SME Growth and Development – the role of Digitization”. Watch event here. Because digitization is going to play a key role in actualizing AfCFTA, governments of member countries must commit to a workable and sustainable digitization process by providing the support infrastructure and policies to help foster digital innovation notably within the private sector. Ghana has already taken the lead in providing infrastructure and the policies to drive digitization, said Osiakwan pointing to the ghana.gov platform, GHQR and the soon to be introduced e-cedi by the Bank of Ghana. But AfCFTA’s success across countries will hinge on a continent-wide approach to integrating policy-efforts and infrastructure developments of all its members. Benefits from AfCFTA cannot be achieved in silos, said Osiakwan who has extensive experience in policies and investments on the continent. “The only way to make AfCFTA work is for us to have an Africa-wide digital strategy that bring everyone along and that means we need to quickly start integrating the digital strategies for the benefit of the entire continent,” he said. Touching on the pace at which African countries are adopting blockchain technology, he argued that there is need...

Uganda is exploring ways to cut its reliance on Kenya for fuel imports, routing shipments through neighboring Tanzania as an alternative source of supply. The potential move to diversify its imports could jeopardize business for Kenya’s Mombasa port, since about three-quarters of the terminal’s transit cargo is sent to Uganda. Mombasa has already been fighting to stave off growing competition from the Tanzanian ports of Dar es Salaam and Tanga. Uganda Railways Corp. last week began a trial delivery of 500,000 liters of petroleum products across Lake Victoria, resuming shipments after a 16-year hiatus, acting Managing Director Stephen Wakasenza said by phone. The fuel initially landed in Dar es Salaam and was transported by train to Mwanza port, before being sent onward to Uganda over the giant fresh-water lake. Mombasa also serves South Sudan, the Democratic Republic of Congo, Rwanda and Tanzania. The region’s over-reliance on the Kenyan port came into sharp focus in 2007 when post-election violence that rocked East Africa’s biggest economy disrupted supply chains to the landlocked nations. “We are comfortable with Mombasa, but as a country we need an alternative route for strategic reasons,” Wakasenza said Tuesday. “We are targeting oil because it is a product used daily.” Uganda plans to start its own oil production, but that’s unlikely to happen until 2025. The government intends to build a crude-export pipeline via Tanzania. Rising Demand The trial fuel cargo was for Stabex International Ltd., Wakasenza said, suggesting there may be interest in the route from other...

In commemorating today the French National Day, the Ambassador of France to Tanzania, H.E. Frédéric CLAVIER, gave an exclusive interview to The Citizen and reasserted France eagerness to boost... In commemorating today the French National Day, the Ambassador of France to Tanzania, H.E. Frédéric CLAVIER, gave an exclusive interview to The Citizen and reasserted France eagerness to boost bilateral economic relations. Question: You’re Excellency, what does Bastille Day represent to the French people and the world? F.C.: “Historically speaking, Bastille Day celebrates the victory of the people against injustice and an oppressive political system lead-ing to the sovereignty of the whole nation. Since then, Bastille Day has become an occasion to remind us the core values and motto of the French nation: Liberty, Equality, and Fraternity. In this sense, France and Tanzania share many values, thus enabling a mutual understanding and a trustful relationship since the independence of Tanganyika in December 1961. This trust that we have built throughout the years allows us to enjoy a strong cooperation on various and important subjects, economic, political, cultural and soci-etal. The most recent example is our work together for the success of the Generation Equality Forum, held in Paris between June 30th to July 2nd, with the exceptional visit of the Vice-President, H.E. Dr. Philip Mpango, embodying Tanzania’s commitments to gender equality.” Q: You’re Excellency, could you tell us what is the status of the France-Tanzania economic and business relations? F.C.: “Bilateral trade between France and Tanzania is increasing but is not, in my...

The Kenya Revenue Authority (KRA) has expressed optimism it will surpass Sh1.86 trillion 2021/2022 target as it moves to seal revenue loopholes and end illicit trade at the Port of Mombasa through adoption of technology. The operationalisation of the Sh2.6 billion ICT project funded by the World Bank will connect all 23 cargo checkpoints at the Mombasa port with the KRA main office in Nairobi to increase efficiency in cargo clearance and monitoring movement of goods. The project, which is the first phase of the Sh50 billion Eastern Africa Regional Transport, Trade and Development Facilitation Project, will be fibre optic-based Metropolitan Area Network (MAN) and Local Area Networks (LANs) connecting Mombasa port and KRA’s Nairobi headquarters. Before the ICT project was launched, all the 23 cargo checkpoints were being manned differently and there was a delay in decision making on whether to verify cargo whenever there is suspicion on mis-declaration or any illicit cargo detection. KRA commissioner, corporate support services, David Kinuu said the new ICT infrastructure will improve efficiency in revenue collection. “Last fiscal year, KRA managed to surpass its target but with the new investments we are making, we shall surpass Sh1.86 trillion,” said commissioner Kinuu. The project which started in 2015 will also involve improvement of road and ICT infrastructure along Northern Corridor and once completed, will connect Kenya and South Sudan through fibre optic, hence reduce time and cost of doing business. In the project, KRA will ensure there is harmonization of customs and other border...

Achieving African integration is not an end in itself. The purpose must be to offer the African citizenry prosperity and security. The objective of both regional and continental integration must enable African countries benefit from economies of scale, trade amongst themselves, move freely across the continent and most importantly, benefit from the common goals of Africa’s Agenda 2063, aimed at shared prosperity, unity and integration. The commemorative activities of the African Integration Day that kicked off on the 7th of July, will examine into details, the status of the continental integration and with particular focus on the role of continental integration in accelerating African economic recovery from the COVID-19 Pandemic. In the last two decades, Africa has recorded a 4.6 percent growth rate on average, despite an unfavourable international economic and financial environment. The current COVID-19 pandemic has however plunged the continent into its first recession in 25 years exposing the vulnerability of African economies. The cumulative loss of Africa's GDP is estimated at between $145 and $190 billion with worrying projections that 39 million more people could be pushed into extreme poverty, if urgent and purposed measures are not taken to address the socio-economic difficulties caused by the pandemic. Accelerating African economic recovery has brought to the fore, yet again, the need to piece the puzzle of African integration. With a fragile recovery based on the health, economic and financial measures member states were quick to implement at the onset to curb the spread of COVID-19 and mitigate the...

Ghana’s exports to the UK remain largely primary products The Business Climate Report has urged the country to change its old practice of exporting primary products to the United Kingdom (UK), which has persistently resulted in a negative trade balance at the country’s expense. The 2020 report indicated that the UK imported US$242million worth of goods, while Ghana on the other hand imported US$473million worth of goods from the UK – presenting a negative trade balance of about US$231million. This, the report said, is attributed to factors such as the country’s continuous export of raw materials and import of manufactured goods, coupled with a drop in the level of exports against imports in trade with the UK – a trend that may continue for a long time if nothing concrete is done to change the narrative. “The goods traded between the two countries have not changed substantially over the period. Ghana’s exports to the UK remain largely primary products, while imports from the UK have mainly been manufactured goods. This accounts for the negative trade balance to the disadvantage of Ghana. Our forecasts show that this trend is likely to continue into the near future,” the report stated. Top-five exports from Ghana to UK, which are mostly in their raw state, remain as follows: mineral fuels, oils, and distillation products; meat, fish and seafood preparations; cocoa and cocoa preparations; edible fruit, nuts, peel of citrus fruit, melons; and edible vegetables and certain roots and tubers. On the other hand, top-five...

Fintech companies in Africa are flourishing by producing digital systems and infrastructure to make financial services more efficient. And with the launch of the African Continental Free Trade Area (AfCFTA) at the start of this year, the companies are well positioned to replicate this success by providing solutions for what is the largest free trade area globally by the number of countries taking part in it. Solving cross-border payment within the continent could “exponentially increase intra-Africa trade,” according to the United Nations Development Programme and the AfCFTA secretariat. In a case study cited in one of their recent reports, Godwin Benson, the CEO of Tuteria, a Nigerian peer-to-peer learning platform, says: “It should be easy for customers in Egypt or Rwanda to pay a business in Nigeria. Recently, a customer from Cameroon wanted to pay us but could not carry out the transaction. Without seamless intra-African payments, businesses like Tuteria, especially those run by young entrepreneurs, may not be able to trade across the continent.” AfCFTA aims to increase intra-African trade by the creation of a single market There’s relatively low trade amongst African countries, compared to other parts of the world. For instance, intra-African trade (the average of intra-African exports and imports), was around 2% in 2015-2017, compared to 61% for Asia and 67% for Europe. AfCFTA aims to create a single market for goods and services in Africa by progressively eliminating tariffs and non-tariff barriers to trade. It was brought about by the African Continental Free Trade Agreement , which has been signed by 54 of the...

Uganda has decided to end the lucrative oil trade as Kenya renews its trade pact with its Tanzanian neighbors. Last week, the Uganda Railways Corporation began a test delivery of 500,000 liters of petroleum products through Lake Victoria, resuming shipments after a 16-year break with Tanzania. The move jeopardizes business with the port of Mombasa, as Uganda accounts for about three quarters of the cargo in transit from the port of Mombasa. The port of Mombasa. Deposit The decision to end business with Kenya risks further damaging the port of Mombasa which is currently struggling and faces intense competition from the Tanzanian ocean ports of Dar es Salaam and Tanga. Uganda, which is a landlocked country, consumes around 185 million liters of petroleum products per month. Most of the fuel consumed in Uganda is trucked through Kenya via the port of Mombasa which is the main distributor according to John Friday, the deputy commissioner for petroleum supplies. The Port of Mombasa serves South Sudan, the Democratic Republic of the Congo, Rwanda and parts of Tanzania. It comes just months after the two countries struck a deal to resolve the lingering trade dispute between them following a seven-day visit by Nairobi officials to Kampala. Led by Cabinet Secretary for Trade and Industry Betty Maina, Kenyan officials visited Uganda on April 11 to discuss non-tariff barriers (NTBs) affecting trade between the two countries and to check on the Ugandan sugar industry. to ensure that exports of the product to Kenya are produced...