Archives: News

KEBS ready to support business recovery as economy reopens

Summary KEBS has reviewed its product certification process to allow for online applications and remote assessment of production processes to allow for faster turnaround time in issuance of product permits. KEBS is also encouraging micro, small and medium enterprises (MSMEs) to get the Standardization Mark certification for their products to access regional markets under the mutual recognition of quality marks in accordance to common market protocol. Kenya Bureau of Standards’ (KEBS) business continuity plan has seen it ride the Covid-19 storm that precipitated a global decline in economic activity. With President Uhuru Kenyatta having reopened the economy, the standards’ watchdog is prepared to handle more business in support of manufacturers and traders. KEBS Managing Director Bernard Njiraini says the organisation has been able to conduct its operations even at the height of the Covid-19 pandemic. The standards body has been holding online ISO Zoom meetings to develop standards for Covid-19 products such as hand sanitizers, personal protective equipment (PPEs) and masks. These standards are available to the public free of charge as KEBS’ contribution to the fight against the pandemic. KEBS has certified over 130 firms for the production of face masks; over 540 firms for instant hand sanitizers; two firms for hospital beds; more than 80 firms for other PPEs such as coveralls and gloves; and two firms for critical care ventilators. The product certification programme is a continuous activity at the agency with the aim of ensuring consumer safety. KEBS also reviewed its product certification process to allow...

Rwanda’s Trade ministry endorses CS Amina for WTO job

In Summary The Geneva-based body is seeking a replacement for Brazil’s Roberto Azevedo who stepped down a year early at the end of August at a critical juncture WTO. Other finalists include Ngozi Okonjo-Iweala of Nigeria, Yoo Myung-hee of South Korea, Mohammad Maziad Al-Tuwaijri of Saudi Arabia and Liam Fox of the UK. Rwanda's Ministry of Trade and Industry has endorsed Sports CS Amina Mohamed as she vies for the postion of WTO DG position. In a statement released on Friday, Vincent Biruta stated that as Chiar of the EAC Sectoral Council on Trade, Industry, Finance and Investement (SCTIFI), he is pleased to notify the public of the unanimous support and endorsement offered by the SCTIFI to the candidacy of Amina Mohamed for the position of the WTO Director General. "The EAC partner states, through their Ministers of Trade, offered their support and assurance that they would stand by Kenya's candidate," the statement read. Mohamed is among five candidates who will progress to the next stage of interviews for the World Trade Organization's top job. She was nominated on July 7 by the Kenyan government. Other finalists include Ngozi Okonjo-Iweala of Nigeria, Yoo Myung-hee of South Korea, Mohammad Maziad Al-Tuwaijri of Saudi Arabia and Liam Fox of the UK. The Geneva-based body is seeking a replacement for Brazil’s Roberto Azevedo who stepped down a year early at the end of August at a critical juncture WTO. His successor will need to steer reforms and negotiations in the face of rising...

Upgraded Kenya TradeNet System piloting set for April next year

The process to upgrade the system, dubbed Trade Facilitation Platform (TFP), started in December last year with gap analysis. KenTrade has unveiled a schedule to upgrade TradeNet System to enhance its users’ experience and avoid the system becoming technologically obsolete. This was after the stakeholders were invited early this year to give their inputs in a gap analysis process that the KenTrade had initiated. RWANDAIR In liaison with KenTrade internal team, the system developers are currently deploying the developed system solution to the production environment in readiness for the next step which is User Acceptance Testing, Mr Amos Wangora said recently. This is scheduled to commence by mid-October and will run until March 2021. The new system is scheduled to Go-Live with Phase 1- Piloting with Selected Users for April 5, 2021. “It will take approximately 18 months to finalize on the Upgrade but I want to assure you that the process will have minimum interference with the normal operations of the System,” KenTrade CEO Amos Wangora assured the stakeholders The upgrade, which according to the agency is long overdue, will address the challenges of delays in document processing, lack of a 2-factor user authentication mechanism and address the problem of the limited document security features. Other challenges the system has experienced in the past and which the upgraded system seeks to cure are limited visibility of information to users due to lack of dashboards and few standard reports and cumbersome user registration process delaying registration process. The upgraded system...

Govt establishes first free zone at Entebbe airport

Summary The project targets sectors that include; food processing, mineral processing, warehousing, storage and simple assembly. All operators in the public free zone will process their products for onward export through Entebbe International Airport. The Uganda Free Zones Authority is mandated to spearhead and oversee the establishment, development, management, marketing, maintenance, supervision and control of free zones. Arrangements have been finalised for government to establish the first public free zone at Entebbe International Airport to boost export-oriented investment in the country. The development of Public Free Zone is expected to cost Shs48b. It will house seven production units and trade houses such as offices of the Uganda Free Zones Authority, Uganda Revenue Authority, and other government offices to facilitate the smooth flow of business. Under the arrangement, the project targets sectors which include food processing, mineral processing, warehousing, storage and simple assembly, where all operators in the public free zone will process their products for onward export through Entebbe International Airport. Mr Hez Kimoomi Alinda, the Uganda Free Zones Authority executive director, said the project is testimony of government’s commitment towards the creation of an economic environment, which is conducive to private sector investment and growth. “On completion, the project will support increased production quality assurance and value addition to commodities that are widely produced by the masses to improve household incomes, create employment and eliminate poverty as well as improve the value of Uganda’s exports,” he said,. Mr Alinda was speaking while handing over the site for the construction...

Trade deficit falls on lower import bill, exports rise

Summary New data from the Central Bank of Kenya (CBK) show the gap between imports and exports dropped by 18.7 percent to Sh629.75 billion from Sh774.75 billion recorded in the same period last year. In the period, export receipts improved by five percent to Sh423.34 billion compared to Sh403.21 billion last year. On the other hand, imports were valued Sh1.05 trillion, a 10.6 percent drop from last year. Kenya’s trade deficit has fallen in the eight months to August, owing to a lower import bill amid continued recovery of exports as global trade reopens. New data from the Central Bank of Kenya (CBK) show the gap between imports and exports dropped by 18.7 percent to Sh629.75 billion from Sh774.75 billion recorded in the same period last year. In the period, export receipts improved by five percent to Sh423.34 billion compared to Sh403.21 billion last year. On the other hand, imports were valued Sh1.05 trillion, a 10.6 percent drop from last year. Exports in August were valued Sh54.16 billion up from Sh52 billion in July, while imports dropped slightly to Sh137.78 billion from Sh138.76 billion. “Exports have rebounded quite well, particularly horticulture after the decline in April. This reflects normalisation of demand in international destination countries and adequate cargo space,” said CBK governor Patrick Njoroge last week. The flower industry was particularly hit hard by the pandemic outbreak which saw cancellation of flights and lower demand experienced in the three months to May. This saw the growers throw away most cut...

African Union unveils online platform to tackle non-tariff barriers

The African Union has amplified action to tackle non-tariff barriers and increase small businesses’ use of the tradebarriers.africa tool through its new online platform The African continent is about to become the world’s largest free trade area. If not addressed, non-tariff barriers (NTBs) may slow down this effort. Although the negative impact of NTBs on intra-regional trade is recognized, so far there has been limited success in addressing them. “The success of the AfCFTA depends in part on how well governments can track and remove non-tariff barriers,” said Ambassador Albert Muchanga the African Union Commissioner for Trade and Industry. A new campaign to spotlight and remove non-tariff barriers (NTBs) in intra-continental trade launches this week. The #TradeEasier campaign aims to promote the uptake and use of the African Union’s tradebarriers.africa, a non-tariff barriers reporting mechanism tool. The tool, developed by the African Union in partnership with UNCTAD, supports efforts to make continental trade easier and less costly by helping African businesses report such barriers and supporting their elimination with the help of governments. NTBs slow down the movement of goods and costs importers and exporters billions of dollars annually. They also stand in the way of the success of the African Continental Free Trade Area (AfCFTA). “If we want the AfCFTA to thrive, we have to ensure operational barriers are dropped and businesses and traders, especially small ones; don’t suffer from undue limitations placed on them as they try do the basic thing that makes economies work – trade.” Every...

Fed up with the noise around Covid-19 certificates? Try an app

Slow Covid-19 testing result in long queues such as this on Bungoma-Malaba highway, and costly delays. FILE PHOTO | NMG As the East African economies re-open after many months of hiding from coronavirus, Covid-19 tests have become the latest non-tariff barrier to regional trade. The EastAfrican reported that Rwandan cross-border transporters are losing money as the impasse over Covid-19 testing of drivers continues to hold up the movement of goods from the port of Dar es Salaam to Kigali. Rwanda too does not accept Tanzanian Covid-19 certificates presented by Tanzanian truck drivers, preferring to do its own tests. Uganda and Kenya are holding their noses, and looking away pragmatically. They accept anyone’s certificates. But even with the system “working”, it is still very slow compared to the pro-pandemic times — which themselves were actually quite shambolic. These Covid-19 penalties, say economists, are now the biggest source of the increase in prices of goods and services in the region. With projections of vaccines getting to the region at the end of 2021, we are in for some bleak times unless enlightenment descends upon governments soon. There are ways out if there are people bold enough in East African executive mansions to seize on them. Beyond the health concerns, there is some narrow nationalism, and a sense that competitive advantages might somehow be extracted through this Covid-19 tests politics. But if that can be overcome, technology offers a path to speed everything up. First, to manage the politics and save face, let...

Rwanda goes for quality tea to get good prices

Summary Rwanda is banking on the quality of tea it produces as the one value proposition to help it weather the falling global prices. The first eight months of this year saw a sharp drop in tea prices on the international market, but the country performed well at auctions. According to the latest data from the National Agriculture Export Board (NAEB), the country generated more than Rwf90 billion ($93 million) in 2019/2020, a 12 per cent growth in revenue from Rwf80billion ($83 million) recorded in 2018/2019. “This was driven by a combination of quality and good prices at auctions. We focused on ensuring we produce the best quality and it paid off,” said Cynthia Uwacu, the export market development and innovation manager at NAEB. Despite the high numbers, the demand on the international market has not yet fully recovered from the effects of Covid-19. Export volumes increased by seven per cent from more than 30,500 tonnes in 2018/2019 to more than 32,600 tonnes in 2019/2020,. Last year, the government came up with a policy in which farmers earn at least 50 per cent of the price that a kilogramme of processed tea is sold on the international market, an incentive that is boosting production. Tea exporters are however still reeling from falling prices. Bela Nyirahuku, the sales and marketing manager at Rwanda Mountain Tea, said tea prices are irregular. “The market is responding by bidding at lower rates and buying sparingly, therefore prices are low and tea stocks are comparatively...

Burundi is stable, safe for investment, says Ndayishimiye

Burundian President Evariste Ndayishimiye has assured the world that the country is stable, calm and entirely safe. He said Burundi is open and ready to nourish its partnership with her neighbours for economic development. Ndayishimiye (pictured above) spoke during this year’s virtual address by various Heads of State at the United Nations General Assembly (UNGA). In his debut address to the 75th UN General Assembly, Ndayishimiye said Burundi progressed in peacebuilding and consolidation of democracy despite the challenges the East African nation is facing. Burundi has repatriated thousands of refugees from neighbouring countries, and particularly Rwanda. Burundians who fled the nation after political violence in 2015 sparked by then-President Pierre Nkurunziza’s decision to run for office for a third term have already started returning home. During his address, Ndayishimiye said the country welcomes the voluntary return of refugees who had fled the nation following the sorry episodes that have left a sad mark on Burundi’s history. Ndayishimiye further noted that the mass voluntary return is a clear demonstration of the restoration of peace, calm and stability in the country. Political analysts argue that the process of repatriating the people back shows that the nation is ready and willing to bury the past and rekindle the deteriorating diplomatic relations with her neighbour- Rwanda. Kigali has accused Bujumbura of being ‘’ disinterested’’ in solving the issue. The two neighbours have had their fair share of challenges, politically and diplomatically. Peaceful elections President Ndayishimiye added Burundi managed to organise and fund a free,...

Bold steps taken to make African trade easier, help small businesses

The African Union has amplified action to tackle non-tariff barriers and increase small businesses’ use of the tradebarriers.africa tool through its new online platform The African continent is about to become the world’s largest free trade area. If not addressed, non-tariff barriers (NTBs) may slow down this effort. Although the negative impact of NTBs on intra-regional trade is recognized, so far there has been limited success in addressing them. “The success of the AfCFTA depends in part on how well governments can track and remove non-tariff barriers,” said Ambassador Albert Muchanga the African Union Commissioner for Trade and Industry. A new campaign to spotlight and remove non-tariff barriers (NTBs) in intra-continental trade launches this week. The #TradeEasier campaign aims to promote the uptake and use of the African Union’s tradebarriers.africa, a non-tariff barriers reporting mechanism tool. The tool, developed by the African Union in partnership with UNCTAD, supports efforts to make continental trade easier and less costly by helping African businesses report such barriers and supporting their elimination with the help of governments. NTBs slow down the movement of goods and costs importers and exporters billions of dollars annually. They also stand in the way of the success of the African Continental Free Trade Area (AfCFTA). “If we want the AfCFTA to thrive, we have to ensure operational barriers are dropped and businesses and traders, especially small ones; don’t suffer from undue limitations placed on them as they try do the basic thing that makes economies work – trade.” Trade...