Archives: News

The future is uncertain but WTO must first make a case for trade

Summary Trade is a force for good. So, when we see the trend towards protectionism, we should all worry. The world is at a crossroads, on matters trade. Everywhere, more measures are being taken to ‘protect’ domestic economies from ‘unfair’ competition. And these is often playing well with domestic audiences, encouraging those in charge to double down and do more of the same. If you doubt this, here’s a startling fact: In 2009, following the financial crisis, only 0.7 per cent of imports into G20 countries faced new restrictive measures, a figure which by 2019 had risen to 10.3 per cent. In short, some of the world’s richest countries are raising barriers to markets access for some of the poorest. Trade is a force for good. If you doubt this, ask any South Korean of a certain age, working women in Bangladesh, someone now in their 50s in many parts of China, many living in states that were part of the former Soviet Union, across swathes of Latin America, and in parts of north, east, west and southern Africa and many other parts of the globe. So, when we see the trend towards protectionism, we should all worry. There are still billions of people in the global South as yet left untouched by the benefits of the ability to trade more widely than their own domestic markets, and billions more who have taken steps along the trading path whose progress is threatened. Of course trade is not a panacea, far...

Covid19: EAC Countries Called to Reopen Borders

Business people operating in the East African region have asked member state governments to open up their borders to enable them freely transact businesses in observance of Standard Operating Procedures (SOPs) Following the outbreak of Covid19 pandemic in the region, EAC countries restricted movement of people across their boundaries, allowing only cargo trucks. This left out small scale traders who used to move with their goods on buses and other means of transport stranded with their merchandise. Speaking at a two-day regional conference held in Kampala yesterday, small scale traders who comprised of mostly women suggested that proper emphasis should be put on preventing the pandemic instead of closing regional trade entirely. “Covid19 is here to stay; we must all work to keep each other safe and productive instead of increasing vulnerability to those who have been already marginalized,” said Shiela Kawamara executive Director EASSI one of the participants. Jane Nalunga the country director SEATINI Uganda said from this Covid period Government should help all business people recover from the losses they incurred through negotiations with other countries to open borders. “We need to fight Covid at a regional level not as a country because we don’t know when the vaccine will be discovered.” During this conference, some of the participants confessed that due to border closure they resorted to smuggling their goods through porous borders which is very risky. Read original article

EAC rolls out regional electronic cargo, driver tracking system

The East Africa Community (EAC) Secretariat and its Partner States have rolled out a Regional Electronic Cargo and Driver Tracking System (RECDTS) in a virtual event held Tuesday. RECDTS is designed as a mobile phone application and will enable the issuance of the EAC COVID-19 digital certificates that are mutually recognised by Partner States, thus eliminating need for multiple testing as well as contributing to alleviating ongoing congestion at East Africa border crossing points. The RECDTS App is designed to stop Corona in its tracks along EAC key transport corridors. The roll out was witnessed by the EU Ambassador to Kenya H.E Simon Mordue and the Ministries of Health in Kenya, Uganda and Rwanda and the Ministries of East Africa Community in the Partner states. RECDTS provides a surveillance system to monitor long distance truckers crew health and enable contact tracing. It allows partner states to electronically share truck drivers’ COVID-19 test results; therefore, minimising need for multiple COVID-19 tests in a single trip. The reliance on manual certificates and delayed test results at the borders has been reported as one of the main reasons for costly long delays at border points, such as those witnessed in Busia, Malaba, Nimule and Elegu. Some of the delays have caused tail backs of trucks measuring tens of kilometres in some cases. Also Read  WHO ramps up COVID-19 support to hotspot countries in Africa The EAC developed the app with funding from European Union, Global Affairs Canada, Danida, Finland, Netherlands and United Kingdom through...

EAC rolls out Regional Electronic Cargo and Driver Tracking System

The RECDTS App is designed to stop Corona in its tracks along EAC key transport corridors The East Africa Community (EAC) Secretariat and its Partner States today held a virtual roll out event to mark the technical completion and development of the Regional Electronic Cargo and Driver Tracking System (RECDTS). RECDTS is designed as a mobile phone application and will enable the issuance of the EAC COVID-19 digital certificates that are mutually recognised by Partner States, thus eliminating need for multiple testing as well as contributing to alleviating ongoing congestion at East Africa border crossing points. The roll out was witnessed by the Chair of the EAC Council of Minister, Hon Prof Nshuti Manasseh,  Ministers of Health from Kenya and Uganda as well as the EU Ambassador to Kenya, H.E Simon Mordue. RECDTS provides a surveillance system to monitor long distance truckers crew health and enables contact tracing. It allows Partner States to electronically share truck drivers’ COVID-19 test results; therefore, minimising need for multiple COVID-19 tests in a single trip. The reliance on manual certificates and delayed test results at the borders has been reported as one of the main reasons of long delays at border points, such as those witnessed in Busia, Malaba, Nimule and Elegu. Some of the delays have caused tail backs of trucks measuring tens of kilometres in some cases. The development of EAC the app with funding from European Union, Global Affairs Canada, Danida, Finland, Netherlands and United Kingdom through TradeMark Africa was in accordance with...

Regional electronic cargo tracking system launched

The launch of a regional electronic cargo and driver tracking system which had been slated to take place mid last month and later postponed was launched virtually on Tuesday, September 8. It is one of the measures introduced by the East African Community to prevent further spread of the coronavirus (Covid-19) infections in the region. The virtual rollout of the East Africa Community Regional Electronic Cargo and Driver Tracking System (RECDTS) was broadcast live from the Malaba-Malaba border crossing point between Uganda and Kenya and the Mirama Hills-Kagitumba border crossing point between Uganda and Rwanda. During the event, officials linked and transmitted a real-time demonstration of driver registration and verification of EAC digital certificate at the borders. The system will issue jointly recognised EAC Covid-19 digital certificates, which will improve efficiency in regional freight transport, by avoiding multi testing for drivers at all points of entry. Despite the borders being closed to human traffic in most regional countries, cargo transport has remained in operation, but drivers are subjected to multiple tests at borders which leads to delays. The EAC developed the App with funding from the European Union, Global Affairs Canada, Danida, Finland, Netherlands and the United Kingdom through TradeMark Africa and in accordance with the mandate given by a joint ministerial meeting of EAC ministers responsible for Health and EAC Affairs. The App provides a surveillance system to monitor the health of long-distance truck crew members and enable contact tracing. It allows partner states to electronically share truck drivers’...

Why the new Foreign, Commonwealth and Development Office must also focus on economic development

The launch of the new Foreign, Commonwealth & Development Office (FCDO) last week provides an excellent opportunity to reset the UK’s economic engagement with low- and middle-income countries. As the new department takes shape, it is crucial to consider the stated benefits of bringing development and diplomacy together through this merger of the Department for International Development (DFID) and the Foreign & Commonwealth Office (FCO). One area in which the benefits could be large and visible is economic development, but so far there has been little attention to the role of the FCDO as an economics ministry. This is perhaps surprising: DFID is rightly proud of its recent experience in managing economic development programmes such as Trademark East Africa and Nepal’s Economic Policy Incubator. A new set of essays, published last week by ODI, considers 10 ways the experience of the FCO and DFID could underpin economic policy in the FCDO. Ten new opportunities for the FCDO The essays offer 10 economic development proposals for an imaginative new approach to capitalise on mutual interest and help achieve development goals. They are: 1. Publish a coherent UK–Africa strategy This must help to reinvigorate UK-Africa trade and investment relationships following a decade of stagnation, during which time Africa has stepped up engagement with other parts of the world. Leaving the EU means the UK needs to consider new trading arrangements with African countries, which are set to integrate through the Africa Continental Free Trade Agreement (AfCFTA). The UK-Africa Investment Summit in January also needs follow up. It is time for an ambitious Africa strategy. 2....

COVID-19: Business slightly affected at the Mombasa port

No cruise ships are docking at the port of Mombasa but the business has continued uninterrupted with cargo ships delivering goods from across the globe. The business at East Africa’s largest port is further buoyed by the resumption of flights and increased demand for jet fuel, after a six months suspension due to the coronavirus pandemic. “We’re now importing jet fuel, we’re seeing a little bit of growth on that side. In terms of bulk cargo and general cargo, it’s okay, we have not seen much drop, maybe 3 percent,” Captain William Ruto, the General Manager harbor operations master said. According to Ruto, there is a steady rise in operations as compared to the last three months where general cargo and petroleum products slumped slightly. “In terms of bulk cargo, that’s general cargo, we were not hit that much. The decline was less than 3 percent. In terms of container vessels calling, we had few blank sailings, that’s ships not calling on schedule which I can say on average from 2020 Feb. to Aug. we had about 6-8 percent.” Data from the Kenya Ports Authority (KPA) shows the Mombasa port’s overall throughput was 34.44 million tonnes in 2019 compared to 30.92 million the previous year, marking a growth of 11.4 percent. Total transit throughput also posted a growth of 3.6 percent to 9.95 million tonnes in the same year. Captain Ruto however submitted that during the six months of the pandemic, those results were slightly affected. Mombasa’s port is crucial to serving landlocked countries including Uganda, Rwanda, South Sudan, and the Democratic Republic of Congo. Figures...

Rwanda: Kigali Arbitration Centre Gains International Recognition

The Kigali International Arbitration Centre (KIAC) received 33 cases from July 2019 to June this year, highlighting yet another milestone for the dispute settlement institution. The record included three emergency arbitration cases, according to KIAC. Beyond Rwanda, the cases registered in the year 2019/20 came from eight countries including India, Singapore, Egypt, China, Kenya and France. Overall, 67 per cent of the new cases were domestic in nature while 33 per cent were international. KIAC says the increase in international cases is a statement of confidence that Rwanda is playing a key role in positioning Africa on the market of international arbitration, as well as its global appeal to users from diverse legal systems and cultures. Launched in 2012, KIAC was established by the Rwanda Private Sector Federation (PSF) in partnership with the government. Since then, about 160 cases have been submitted to the centre missioned to do commercial justice by the use of arbitration and other alternative dispute resolutions such as mediation and adjudication. The biennial 2020 SOAS Arbitration in Africa Survey Report ranks KIAC amongst the top three arbitration centres that were chosen in Africa. This, KIAC says, confirms that fact that it is now one of the leading arbitration institutions in Africa providing ADR services in both national and international contexts. KIAC administers cases under its arbitration rules and those of the United Nations Commission on International Trade Law (UNCITRAL) arbitration. The Secretary General of KIAC, Fidele Masengo, said the centre has achieved a "milestone". "When we...

IGAD Receives COVID-19 Relief

The Intergovernmental Authority on Development (IGAD) has received support from six partnering organisations amounting to 60 million euros to combat the Novel Coronavirus (COVID-19) pandemic. The initiative, funded by the European Union (EU), involves German development agency GIZ, International Organisation for Migration (IOM), TradeMark Africa (TMA), UNICEF and UNOPS. The initiative is primarily aimed at increasing access to health and socioeconomic support for vulnerable groups. The eight countries under IGAD will receive the support as part of the EU’s Team Europe Global Response Package for partnering countries and will reach twenty cross-border communities, six refugee camps and five migrant refugee centres in the region. It is expected to provide health services to more than 400,000 people and provide critical water, sanitation and hygiene supplies to over 500,000 people. The partnering organisations will support the programme by procuring essential personal protective equipment, creating safe trade zones, and promoting digital solutions for the response to the pandemic. Read the original article

Tanzania: Eabc Out to Boost Public, Private Sector On Intra-Trade

...Lauds JPM for keeping economy open amid Covid-19 THE East African Business Council (EABC) has called for a deeper collaboration between the Public and Private sectors to boost East African Community (EAC) intra-trade. Also, the council has lauded President John Magufuli for a job well done, especially in spearheading major economic reforms in the country. Amid the global economic disruptions caused by the Coronavirus pandemic, EAC private sector wants to steer better relations as a strategy to boost trade and investment in the region. The leaders noted that the decision by President Magufuli to keep the economy open, offered the private sector a major relief in terms of business resilience as it also strengthened local supply chains. EABC Chief Executive Officer (CEO), Dr Peter Mathuki said that is the spirit for the region - both public and private sector to move forward and business to prosper. It came about after consultations of CEOs at a roundtable meeting organized by the EABC in collaboration with German Development Agency (GIZ) with a theme 'Creating Perspectives Project', convening companies' CEOs with an aim of deliberating on approaches that the private sector can explore to revamp businesses amid the pandemic. Tanzania took absolutely a different approach in dealing with Covid-19, by President Magufuli who seeks a second term in office led the nation in style, by ruling out lockdown, letting business go on but with taking reasonable protective measures and it paid handsomely. In spite of the situation in the bloc, Africa and world...