Archives: News

EAC adopts high tech in digital trade

EAST African Community (EAC) partner states are bringing in Singapore’s technology to facilitate digital trade document flows. It is in line with the work to improve the EAC’s Single Customs Territory (SCT) that goes on with the selection of a Singaporean technology provider to design the right system for the bloc. The EAC that has seen its new Secretary General, Dr Peter Mathuki take over office, launched the single customs territory in 2013. Dr Mathuki has taken over from Ambassador Liberat Mfumukeko, whose term has expired. SCT is designed to ease trade between EAC member states and trim costs by clearing shipments at their first port of arrival or departure, easing the otherwise inefficient flows of customs information that have hindered its effectiveness. Singapore’s GUUD Company, through its subsidiary -vCargo Cloud Kenya, won a tender to create a centralised platform for the SCT that will allow customs documentation to be easily shared by member states’ authorities. “As the official technology partner for the project, GUUD will now embark on creating a centralised system that will facilitate trade document flows within the region for all intra-trade, transit, as well as imports and exports,” the company said in its statement. GUUD, a group of companies launched last year by Information Communication Technology (ICT) provider - vCargo Cloud, said the platform is expected to go live in early next year. EAC Customs Information Systems Expert, Mr Gabriel Kinu said the solution will integrate mechanisms such as cargo scanners and smart gates across the...

Kenya & Tanzania Lift Barriers on Cross Border Trade, Ink Gas Pipeline Deal

Kenya and Tanzania have agreed to lift barriers on cross border trade, which has hindered the smooth flow of people and trade between the countries. Therefore, a joint team of experts will be set up to address the disjointed enforcement of cross-border Covid-19 containment protocols, which is one of the most pronounced non-tariff trade barriers between the two countries. The decision was arrived at during bilateral talks led by President Uhuru Kenyatta and Tanzania’s President, Samia Suluhu Hassan, during her maiden visit to the country on 4th May 2021. Furthermore, President Uhuru Kenyatta said the two countries have also agreed to reorganize their Joint Commission for Cooperation (JCC), enabling it to deal with trade issues. The JCC will be tasked to ensure investors from either country do not face difficulties by ensuring a structured system is implemented. We will strengthen railway, aviation, road, sea and lake transport. We also discussed the need to quicken the construction of the Malindi-Lungalunga-Bagamoyo Road to ease the movement of goods and people. The two countries also agreed to start working on a gas pipeline from Dar es Salaam to Mombasa as part of a long-term project to share energy resources. President Kenyatta said the resource would help Kenya meet its growing energy demand, lower energy costs, and help industries access environmentally friendly energy. The MoU on Cooperation in Natural Gas Transportation means respective Ministers of Energy can start negotiating the design, cost and other logistical needs for the pipeline to be built. However, no...

Tourism in the post-COVID world: Three steps to build better forward

Tourism is among the industries that have been hit hardest by the COVID-19 crisis. Over a year since the onset of the pandemic, the numbers are staggering: Tourism destinations recorded one billion fewer international arrivals in 2020 than in 2019. A deep decline in international travel led to a loss of about USD 1.3 trillion in export revenues, more than 11 times the loss during the last economic crisis in 2009. 100 to 120 million tourism jobs were put at risk, a large portion in small and medium-sized enterprises. This is a grave concern for developing economies as they chart a course towards recovery. Driven by both public and private sectors, not only is tourism a vital source of foreign currency, it has the potential to serve as a development 'tool' to strengthen supply chains, improve local firm productivity, creates one out of ten jobs and provide income for women and young people. As a former minister for tourism myself, I have seen up close, the value tourism creates for local communities and how sustainable tourism creates economic value while preserving culture and natural assets. At a recent panel on tourism resilience and building forward better, during the WTO's Aid for Trade Stocktaking event last month, we discussed the future of tourism given the current challenges. Industry leaders from Costa Rica, Jordan, Kenya and Sri Lanka shared experiences from their own countries in responding and learning from crises, and insights on how they see the way forward for tourism. Three...

Global Britain should look towards supporting the development of Africa’s digital landscape

Global Britain should look towards supporting the development of Africa’s digital landscape, argue Pauline Girma and Oona Palmer (LSE). In this post, they explain that given that seven of the ten fastest-growing internet populations are located in Africa, and that it is home to what is the youngest population in the world, the future growth of the global e-commerce market depends upon unlocking the continent’s potential. The British Prime Minister has invited President Ramaphosa of South Africa to join the G7 summit in Cornwall, England in early June. The summit will discuss among other things trade and the digital economy. A number of African states are taking part in the WTO negotiations on digital trade, but South Africa has opposed the whole idea of the current WTO negotiations on the topic. Africa presents both significant opportunities and challenges for those looking to expand e-commerce. Despite changing demographics and improving business environments, which have contributed to rising household consumption, infrastructural and technical constraints continue to undermine efforts to scale e-commerce, and hinder Africa’s integration in the global digital economy. Fewer than a quarter of Africa’s roads are paved according to the World Bank, and even the relatively large markets of Nigeria and Kenya struggle with access to electricity. Moreover, the lack of widespread internet connectivity remains a fundamental barrier to the uptake of e-commerce in Africa, with less than one-third of Africans able to access the Internet. Yet the potential for the widespread adoption of e-commerce to facilitate technological ‘leapfrogging’ has led to...

Ground-breaking report on ‘Trade Finance Landscape in East Africa& Horn of Africa’ launched by TradeMark E.A & FSD Africa

TradeMark E.A and FSD Africa have partnered to launch a ground-breaking report on the trade finance landscape in East Africa and the Horn of Africa region. The report titled ‘Trade Finance Landscape in East Africa and Horn of Africa: Barriers, opportunities& potential interventions to drive uptake’ has highlighted limited access to trade finance as a key barrier hindering the region from playing a more significant role in global commerce. Whereas Africa comprises for 17% of the global population for instance, it only accounts for just 1.8% of global trade exports and 2.1% of global trade imports as per 2018 data. Of all sub-regions of the continent, East Africa continue to post the lowest total export trade in goods and services compared to other sub-regions, demanding concerted actions by all actors. Speaking during the launch of the report TradeMark CEO Frank Matsaert noted that the report provided a good starting point in tackling key challenges limiting the regions performance in global trade ‘The low intra-regional trade in Africa is because trading activities across the continent are inhibited, For SMEs in particular by limited access to finance but also due to high export costs, political instability, poor infrastructure and high taxation’ he observed. The study focussed on three priority sectors namely, agriculture, construction and textiles& garments and found key barriers to uptake exist both at ecosystem and trade finance provision level, underscoring the importance of holistic interventions for meaningful impact. FSD Director for Credit Markets Jared Osoro, called for a comprehensive address...

UK Ambassador launches construction of the Hargeisa bypass during her first visit to Somaliland

The British Ambassador, Kate Foster, visited Hargeisa this week to reaffirm the strength of the UK’s partnership with Somaliland including in the trade and development sector. In her first visit to Somaliland since her appointment in February, Ms. Foster joined President Muse Bihi in launching the main construction phase of the 22.5 km Hargeisa bypass. The UK-supported bypass will reduce the time and cost of transporting goods between Berbera Port and landlocked Ethiopia by addressing a strategic chokepoint on the Berbera corridor. In the construction phase, particular attention will be paid to climate proofing, ensuring the road is built to last. Protection of local heritage is also a key consideration, recognising the road’s proximity to the iconic Nasa Hablood hills – the symbol of Hargeisa city. The corridor is already facilitating the delivery of much-needed humanitarian assistance to vulnerable communities in the wider region. The World Food Programme uses Berbera to bring 65% of its food aid into Ethiopia. With Ethiopia’s trade volumes projected to continue expanding, Berbera also represents an alternative for increasing trade and prosperity in the Horn of Africa. The continued development of the Berbera corridor will ensure that ordinary people from across Somaliland will benefit from inclusive economic development. Future UK support will focus on more efficient cross border trade between Somaliland and Ethiopia including through the use of one-stop border posts, cargo tracking systems and efficient regulation at the border. At the launch event, Somaliland President, Muse Bihi, said: “I would like to thank the UK and partners for their role in investing...

Training, Standardisation and Quality Control of products and services in Tanzania to be done online

Dar es Salaam, 30th April 2021: Today, the Ministry of Industry and Trade through Tanzania Bureau of Standards (TBS) launched a system that automates the standardisation and quality control of products and services provided by the Tanzania Bureau of Standards (TBS), the National Standards body. The system is named the “Integrated Standards, Quality Assurance, Metrology and Testing” (iSQMT) system. At the same time, TBS unveiled an online system for conducting trainings to stakeholders, named the e-Learning Portal. The two systems were developed by TBS and TradeMark Africa (TMA). Foreign Commonwealth Development Office, Ireland, and Norway funded the development of these systems with a contribution of US$600,000 for the iSQMT portal and US$350,000 for the e-learning platform. Through iSQMT, TBS has automated the following core processes: standards development, product certification, system certification, import inspection, metrology and testing. iSQMT has been integrated to the eGovernment payment gateway platforms which guarantees fully automated processes from application, payment and acquisition of the final product (certificate/permit). Some of the expected benefits are a reduction in time and transaction costs as stakeholders will no longer need to visit TBS offices for services related to standards and quality control, training, collection of permits and certificates. TBS predicts to significantly reduce incidences of loss and duplication of records since all the information required to process requests from stakeholders will be hosted within one system. The data collected via the system will inform better decision making in the regulation and administration of TBS processes. E-Learning Portal Part of TBS...

Mozambique to Improve Trading Environment and Promotion of Safe Trade with MOU between Mozambique Revenue Authority and TradeMark Africa.

Maputo, 3rd May: The Mozambique Revenue Authority (MRA) has signed a Memorandum of Understanding (MOU) with TradeMark Africa (TMA) paving the way for TMA expansion into Mozambique. The agreement was signed by the AT Director General of Planning, Studies and International Cooperation, Dr. Augusto Paulo Tacarindua, and TMA Chief Executive Officer (CEO), Frank Matsaert. TMA aims to collaborate with AT: in the establishment of commercial systems and procedures to support the effective and efficient clearance and transit of goods; in the implementation of measures to ensure safe trade at the borders with neighbouring countries through provision of PPEs; in the dissemination of Southern African Development Community (SADC) COVID-19 operational guidelines; strengthening the joint border committee framework; and raising awareness among border agencies and cross border women traders. Furthermore, TMA will replicate its success in contributing to the ease of trading across borders and through its Safe Trade Emergency Facility (Safe Trade) program, support the Government of Mozambique to undertake critical measures along the transport and trade routes that will ensure trade continues safely while protecting livelihoods. TMA CEO Frank Matsaert noted, “We are excited with this new phase of growth that adds an important country and economy into our operations. Our programme will contribute to improved trading environment for Mozambique with its trading partners on key corridors, which as a result, will propel Mozambique into a leading economy and grow prosperity for its citizens.” TMA’s Mozambique programme will be designed to deliver maximum value for money and effectiveness. It will draw...

SMEs Drive To Employ Skilled Employees

East Africa’s leading online jobs platform BrighterMonday Kenya has increased efforts to provide a solution addressing the recruitment challenges faced by Small and Micro Enterprises (SMEs) in the country. maua2005 The campaign, dubbed ‘Hire the BrighterMonday way’, seeks to solve the hiring needs of growing enterprises by introducing them to the right way of recruitment which is reliable, efficient, affordable, and easy to use. The campaign seeks to help enterprises in SME sector to recruit skilled and professional personnel. SMEs play a major role in the country’s economy, significantly contributing to job creation but often, they grapple with sourcing the right talent, banking on gut feelings, word of mouth, and nepotism to recruit. However, there are inexpensive solutions that can help them advertise jobs, access a quality pool of candidates, as well as rapidly filter and shortlist applicants. According to BrighterMonday Kenya Chief Executive Officer (CEO) Emmanuel Mutuma, leaders of growing businesses need to invest in robust hiring processes to attract the right talent by publishing their jobs out and wide. “Currently 85% of Kenyans are accessing the internet on their devices; advertising a role on our platform isn’t only affordable but efficient in getting top talent. As a hiring partner, we will help SMEs access digital tools that use AI to sieve and shortlist the best applicants and in turn, increase profitability,” he said. Mutuma added that the firm signed a deal with the SME Founders Association in early April to assist the businesses to recruit effectively and benefit...

Education as a catalyst for economic growth – FBNQuest

Across the globe, organisations have intensified efforts towards preparing their workforce for the demands of the future. The preparation comes in the form of education (or training), that is, upskilling (technical, soft skills, mentorship) and digitisation training programs which will avail workers the ability to acquire knowledge, skills, tools and the ability to use the ever-changing technologies in their workplaces and private affairs. As a critical component of a country’s human capital, evidence abounds as justifications for investing in educating the workforce: a leading determinant of economic growth, employment, and earnings. The need for education in all its form cannot be overemphasised in this rapidly changing world. For instance, 2020 in retrospect, particularly between the second (Q2) and third quarter (Q3), have it that the global economy witnessed a significant amount of disruption. From SMEs to big corporations, economic activities were at a standstill. Despite the technological advancement of Organisation for Economic Co-operation and Development (OECD) countries, the tale was not palatable. The world’s biggest economy, the United States, was not left out as its economy plunged by 31.4 percent within the period. The Eurozone witnessed a 12.1 percent decline in its real GDP growth rate by the same period, and the impacted some economies within the Euro area. Spain’s real GDP growth rate declined by 18.5 percent; France’s fell by 13.8 percent, Italy saw its real GDP decline by 12.4 percent, while Germany’s sank by 10.1 percent. Further, some countries including Africa’s biggest economy, Nigeria, slumped into recession. This...