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Boost for EAC green trade

DENMARK has committed to support green trade and the fight against the Covid-19 pandemic in the East Africa Community (EAC) region. The funding will be channeled through TradeMark Africa (TMA), a leading Aid for Trade Organisation renowned for partnering with Eastern African governments to reduce barriers to trade, through automation and adoption of sustainable physical infrastructures such as One Stop Border Posts (OSBPs) and ports, among others. In the two agreements, 14.5 million US dollars will support Kenya's efforts to transition to green trade and create sustainable jobs under the Denmark and Kenya Strategic Framework for 2021 to 2025. The second agreement of 3 million US dollars will support continued response to Covid-19 under TradeMark Africa's Safe Trade Emergency Facility Programme. Denmark Ambassador to Kenya, Mr Ole Thonke was quoted as saying that with the green trade funding (14.5 million US dollars), TMA will partner with government institutions and private sector in adopting sustainable and efficient transport, infrastructure for reduced barriers to trade, improving trading standards, sanitary and phytosanitary issues and improving business competitiveness. The new funding will build up on results that have been achieved in previous programs funded by Denmark, including support to non-motorised transport in the ongoing construction of Mbaraki Road in Mombasa, to include construction of storm water drainage facilities for climate change adaptation, installation of street lighting, construction of footpaths, walkways, and access ramps to enhance movement and safety of people living with disabilities. In automation, Denmark's funding will ensure that government agencies in partnership...

CNN’s Connecting Africa explores transport infrastructure across the continent

February 2020 – In the latest episode of Connecting Africa, CNN International’s Eleni Giokos explores how data and technology are transforming transport infrastructure across the continent. First up, Giokos visits the Kenya Standard Gauge Railway (S-G-R) to see how it is benefitting the import and export industry. Since it was launched in 2017, the S-G-R has moved more than four million tons of cargo along a vital transportation corridor connecting Naivasha and Nairobi with the Port of Mombasa. “Our whole transport system has been realigned. For the longest time, very little cargo was moving by rail, up to 95% of the cargo was moving by road. Suddenly, there has been a massive shift where for containerised cargo from Mombasa to Nairobi 60% of the imports are moving by rail. So, it’s a whole different way in which things are being done.” In a region with many landlocked countries, logistics costs can add up to 60% on the consumer price of imported basic commodities. Sharma speaks about the positive impact the S-G-R has had on reducing these costs, “Any intervention which reduces the cost of logistics in our region, makes a big difference to what the people in our region can achieve in terms of their health outcomes and educational outcomes, as well as, you know, to be able to save a bit more.” CNN’s Connecting Africa explores transport infrastructure across the continent Brandspurng In the future, the S-G-R project is planned to connect Mombasa to Malaba on the border with...

Relief as new horticulture project to ease thousands of Z’bar farmers

Horticulture farmers have long complained of lack of expertise in the production, handling and transportation of produce from the farm. Horticulture has traditionally been grown for subsistence use but recently has been turned into cash crops. Farmers believe the coming up of a joint project, dubbed  ‘Value Web Horticulture and Income Growth’ or Viungo Project which is a collaboration between government and civil society organizations, will end the problems. “This project has come to liberate organic vegetable and fruit growers, we believe now we will prosper,” said Haji Ramadhani Issa chairman of the Zanzibar Vegetable and Fruit Growers Association (UWAMWIMA). The association was established with the aim to help fruit and vegetable growers, who have long complained on the access to market and expertise in agriculture. Currently, the association has more than 90 members operating from the agriculture industry which employ more than 90 percent of the Zanzibar population. He said there are many other problems to be addressed including isolation from the international markets which makes famers rely on domestic markets only which are however uncertain. The association members including women produce a number of fruits and vegetables like avocados, passion fruits, bell pepper, chili pepper, tomatoes and vanilla. "The problem is affecting many fruit and vegetable growers," said Haji adding that lack of a reliable market for their farm produce was also a big challenge. The Research and Monitoring Manager, Ali Mbarouk, the project is jointly implemented by the People Development Forum (PDF), Community Pemba Forest (CPF) and...

At the Crossroads of Inclusion and Growth: Blending Prizes with #ICTforAg in Tanzania

February 10, 2021 This blog post was originally published on the Agrilinks website. In development, inclusion and economic growth can sometimes be at odds: A program that prioritizes inclusion may struggle to stimulate the market, while a program focusing purely on economic growth could overlook marginalized populations. A Pay-for-Results prize competition is well-positioned to address both obstacles simultaneously. Prize competitions, such as those designed and implemented by AgResults, are innovative development finance projects that encourage the private sector to ‘solve’ a market failure and work toward a defined goal to receive a monetary award. AgResults’ prize competition model encourages businesses to overcome agricultural market failures by scaling up agricultural technologies for smallholder farmers. What could enable a prize competition to improve economic growth and inclusion? It has to do with how the competition engages the private sector and the kind of market system it encourages. By demonstrating the economic potential of expanding into untapped offerings and/or investing in underserved markets, AgResults’ prize competitions appeal to businesses — using prizes to ‘nudge’ these actors to take risks. By prioritizing delivery to populations who historically have been excluded from transactions, AgResults’ prize competitions emphasize participation all along the value chain. The Role of ICT in AgResults Prize Competitions AgResults prize competitions often use ICT to verify that competing actors are eligible for monetary prizes based on their sales and/or outputs. Beyond helping to accurately distribute prizes, a well-designed and tailored ICT solution can help actors in a value chain capture and share...

Data, tech drive Africa’s transport renaissance

Africa has been betting on data and technology to transform transport infrastructure which continues to boost trade and enhance integration. Since Kenya’s Standard Gauge Railway, SGR, was launched in 2017, it has moved more than four million tons of cargo along a vital transportation corridor connecting Naivasha and Nairobi with the Port of Mombasa. Abhishek Sharma, Senior Director of Transport at TradeMark Africa, in an interview with CNN International’s Connecting Africa programme explained how the railway has impacted trade at the port, “Our whole transport system has been realigned. For the longest time, very little cargo was moving by rail, up to 95% of the cargo was moving by road. Suddenly, there has been a massive shift where for containerised cargo from Mombasa to Nairobi 60% of the imports are moving by rail. So, it's a whole different way in which things are being done.” In a region with many landlocked countries, logistics costs can add up to 60% on the consumer price of imported basic commodities. Sharma speaks about the positive impact the SGR has had on reducing these costs, “Any intervention which reduces the cost of logistics in our region, makes a big difference to what the people in our region can achieve in terms of their health outcomes and educational outcomes, as well as, you know, to be able to save a bit more.” In the future, the SGR project is planned to connect Mombasa to Malaba on the border with Uganda and continue onward to Kampala....

The Giant Project Coming Up In Mombasa(PHOTOS)

The Kenyan government have continued to show commitment towards the betterment of it's country's citizens through employment of massive developments in the country. Infrastructural development has been a key agenda for the government of the day. Robust development of manufacturing sector in the country is one of the golden agenda of the Jubilee government. This was particularly meant to provide employment opportunities for the large number of youths in the country and at the same time acting as a means to increase the country's GDP. The government to realize this noble purpose is setting up a special economic zone in Mombasa. This is the Mombasa special economic zone. A special economic zone is an area in a country where different favourable and condusive economic regulations are applied to attract foreign direct investment. The project will sit on 600 acre of land in Miritimi and will form part of the Miritimi Industrial Complex. The county government is in partnership with the TradeMark Africa to undertake this noble purpose. The county in September last year received a loan of 36.39 billon Kenyan shillings from JICA towards the development of this project. Below are the artistic impression of this special area to be constructed in Mombasa county. Read original article

Sustainable trade is the best solution to African poverty

We’re delighted to hear that it’s now possible to buy incredible African products while supporting sustainable job creation in countries like Madagascar, Ethiopia, Uganda and Kenya. Proudly Made in Africa (PMIA) is an Irish charity promoting Africa’s world-class products globally. They strive to promote “trade not aid” messaging in everything they do and emphasise that creating sustainable African jobs is the best solution to African poverty. Feena Kirrkamm, Head of Operations at Proudly Made in Africa, says, “We’re changing up charity. We empower African producers to trade their world-class products globally. The result? Sustainable trade, not aid. By supporting African producers, connecting them with buyers, promoting their products and educating consumers, Proudly Made in Africa is empowering people.” These innovative African businesses not only produce organic, fairly traded, environmentally-friendly, award-winning products but also support female empowerment in Nairobi, Kenya and Tanzania, add value to improve livelihoods working towards living income, and are leading habitat conservation efforts of the mountain gorilla. PMIA supports, connects and promotes these African businesses and now sells their products through the online store. Shop everything from organic teas, spices and cocoa beans to handmade soft toys, natural soaps, vegan certified Great Taste Award-winning chocolate, and the world’s first Fair Chain coffee. You can also make a donation here to ensure PMIA can continue their important work. Feena adds, “We are so excited to see our online store live. Our vision for PMIA is a world where African communities thrive, trading on equal terms with the rest of the world, and our shop...

Poor infrastructure among major trade barriers in EAC

Trucks took longer times to return to their departure points due to the restrictions imposed to contain the pandemic. Such disruptions led also to delays in the return of empty containers to the ports- UNCTAD In the East African community trading bloc, poor infrastructure continues to be a huge trade barrier and a major constraint to regional integration and development. This especially affects shippers who rely on road transport to get goods distributed across the region. Poor infrastructure increases dwell time on the roar which means higher costs making goods to compete unfairly with imports from around the world. According to a report by the United Nations Conference on Trade and Development (UNCTAD)’s Review of Maritime Transport last year, restrictions affecting inland transportation have created some challenges to cross-border crossings. “For example, in some African countries, the time taken to pick up cargo after customs release increased in 2020 compared to the same period in 2019. Trucks took longer times to return to their departure points due to the restrictions imposed to contain the pandemic. Such disruptions led also to delays in the return of empty containers to the ports (e.g. port Mombasa), which often led to retention charges set by shipping lines.” The analysis reads in part. The snarl-ups are also disrupting the flow of goods thus increasing operational costs for traders, causing wastage of volumes of perishable goods and fueling corruption cases. Recently, the East African Business Council (EABC) has called upon the East Africa Partner States to...

EAC single market good for consumer

In Summary The price of eggs has shot up because Kenya has blocked imports from Uganda The EAC is supposed to be a common market but member states impose non-tariff barriers to block the movement of goods The price of a tray of eggs went up from Sh240 to Sh340 last year. The price of eggs went up because government was controlling imports to protect Kenya farmers. In the last year, Kenya has been blocking agricultural imports from Uganda, including eggs, milk and sugar. It has also blocked maize imports from Tanzania. Yet the East African Community is supposed to be a common market with free movement of goods, labour and services. Kenya has not officially banned any East African imports but has just created 'non-tariff barriers' to block them. Uganda's smallholder farmers can undercut Kenya's larger commercial farmers who then protest about "unfair" competition. Government then protects them but, as a result, prices go up and Kenyan consumers have to pay more for milk, eggs and maize. As a tit for tat, Uganda then started taxing imports of frozen Kenchic chickens. Both sides lose. Kenya needs a dynamic regional economy for its manufacturing and service industries so it should accept that there will always be winners and losers in any common market. It should allow food imports from Uganda and Tanzania to resume to benefit the Kenyan consumer. Quote of the day: "To become truly great, one has to stand with people, not above them." Baron de Montesquieu The...

Feature: Agriculture online marketplaces enhancing food trade in East Africa

NAIROBI, Feb. 13 (Xinhua) -- When Kenyan farmer and grains trader David Waweru recently put up for sale his bean harvest on an agricultural online marketplace, he received several requests from buyers in neighboring Uganda. Waweru talked to some of the traders and realized there was a shortage of grain in the country. The information enabled him to source beans from other farmers and sell them to a buyer who wanted them in bulk. "I sold at least 5,000 kilos of beans. This is a business that I would not have gotten if it were not for the online marketplace," he said. Waweru is among dozens of Kenyan farmers, traders and other business people who are monitoring the online sites to know what is in surplus and on high demand in which region in Kenya and across the border. The traders are thus able to buy produce from one region or country where there is a surplus and supply to where there is a shortage. The new mode of gathering market intelligence has helped boost food trade not only in Kenya but also across the East African Community, where countries have free trade policies. "These days there is no need to call fellow traders in the neighboring country or have friends to help me monitor the market. All I do is monitor the online marketplaces which provide real-time information," said Urbanas Mutuku, a grain trader in Kitengela, south of the capital in Nairobi. With the suburb being in a county...