In Summary Traders from both sides of the border cross over to buy and sell grains and fruits, defying Covid-19 restrictions. Many Ugandans trading in Malaba said Kenya is their primary market and they have no option but make the short trip across. Small-scale grocery and fruit traders from Kenya and Uganda have returned to business in Malaba despite a ban on cross-border movement. Traders from both sides of the border cross over to buy and sell grains and fruits, defying Covid-19 restrictions to make ends meet. Many Ugandans trading in Malaba said Kenya is their primary market and they have no option but make the short trip across. Richard Maasai, a Ugandan a wholesaler of ripe bananas in Malaba, Kenya said business has been badly hit by the border closure. “Since the border was shut, we have not been selling our stock. We have been forced to cross the border because we need money. Taking care of our families has been difficult.” Maasai said local prices for the fruit have skyrocketed due to restrictions on the Ugandan side of the border. He buys the bananas from Mbale in eastern Uganda and ferries them using friendly cargo truck drivers. Maasai sends the money to drivers to bring the goods. Once delivered, he crosses the border into Kenya where he sells during the day and returns home to Uganda in the evening. “We are appealing to the Kenyan and Ugandan governments to reopen the border. Our businesses are dying. We will...

Uganda has condemned the continued use of non-tariff barriers by her East African Community neighbors despite several petitions, saying it beats the purpose for which the community was created. Uganda has for long felt that her neighbors, mainly Kenya, Rwanda, and Tanzania keep backtracking when it comes to implementing the free trade treaties that govern the EAC bloc. Recently, sugar exports to Tanzania have been blocked and returned to Uganda, while Kenya has often blocked Uganda’s sugar, poultry, and dairy products. And in all instances, exporters say, there are no proper reasons given The Assistant Commissioner for Regional and Bilateral Division External Trade at the Ministry of Trade, Richard Okot Okello, says there must be renewed efforts to remove all barriers if intra-regional trade is to be revamped. He was speaking at an online regional symposium on the effects of Covid-19 on women’s economic empowerment in East Africa, organized by the Eastern African Sub-Regional Support Initiative, EASSI. Okot-Okello says regional countries have persistently put nationalist and protective measures above the regional mechanisms that were put in place to enhance regional integration. On her part, Dr Juliet Wakaisuka, a lecturer at Makerere University Business School, expressed worry that in all the support and economic recovery programs, the special plight of women is not being given special attention. She calls for affirmative action like helping women entrepreneurs formalize their business, and supporting them to adapt fully to the digital-based environment. The Commercial Attache at the Kenyan Embassy in Uganda Robert Okoth said...

Nairobi — Kenya's volume of trade rose from Sh169.65 billion in June 2020 to Sh190.76 billion in July 2020. This is according to a study conducted by the Kenya National Bureau of Statistics which also reveals that the value of total exports increased from Sh48.05 billion in June 2020 to Sh52.00 billion in July 2020. Meanwhile, the value of imports increased from Sh121.60 billion in June 2020 to Sh138.76 billion in July 2020. Domestic exports by Broad Economic Category (BEC) indicated that food and beverages were the main export category in July 2020 accounting for 46.06 percent of exports, while non-food industrial supplies accounted for 22.29 percent of the total exports. The quantity of coffee exported decreased from 5,414.08 MT in June 2020 to 3,546.25 MT in July 2020 and its value dropped from Sh2,956.33 million to Sh1,799.26 million over the same period. The quantity of tea exported increased from 46,399.01 MT in June 2020 to 46,850.57 MT in July 2020. However, the value of exported tea dropped from Sh10,293.00 million to Sh10,013.83 million over the same period. Imports by BEC indicate that non-food industrial supplies were the main import category in July 2020 with a share of 39.35 percent. Machinery & other capital equipment; Fuel and lubricants; and transport equipment constituted 19.26, 12.32, and 8.24, percent of the total value of imports, respectively. Foods and beverages accounted for 9.77 percent of the total imports in July 2020. Read the original article

With three of the eight candidates to become the next leader of the World Trade Organization (WTO) coming from Africa, BBC Africa business editor Zawadi Mudibo looks at what difference having one of them at the helm would make for the continent. There is a growing feeling among African diplomats that someone from the continent should be at the helm of one of the world's top economic institutions. Whereas an American has always led the World Bank and a European has always been at the head of the International Monetary Fund, an African has never taken an equivalent position. But if one from Nigeria's Ngozi Okonjo-Iweala, Kenya's Amina Mohamed or Egypt's Abdel-Hamid Mamdouh emerges from the long selection process as the WTO's next director-general, the continent can feel that it is playing in the same league as the rest of the world. [caption id="" align="alignnone" width="976"] IMAGE COPYRIGHTGETTY IMAGES: image captionGarment factories, like this one in Kenya, could benefit if trade opened up[/caption] The WTO sets the rules for global trade and adjudicates in trade disputes between nations. It is also, according to its website, supposed to "open trade for the benefit of all". The Geneva-based organisation's ability to get global agreements of basic principles that every country signs up to has been hamstrung in recent years but the WTO leader has influence and a bully pulpit. The director-general attends G7 and G20 meeting and can broker disputes between world leaders. But is there more to be gained for the...

In Summary Last week, Ethiopian Airlines which was the first to resume flights to Julius Nyerere International Airport is set to increases flights from four landings weekly to 14. Dar es Salaam. Ethiopian Airlines is set to join Rwandair when it launches cargo flight service to Mwanza with effect from September 9, adding its already available passenger flights to other parts of Tanzania. The carrier announced the new move on its twitter account. Rwandair has been operating cargo flights from Mwanza Airport to Europe since April, mainly airlifting fish from Lake Victoria. Last week, Ethiopian Airlines which was the first to resume flights to Julius Nyerere International Airport is set to increases flights from four landings weekly to 14. Apart from Ethiopian Airlines, KLM has increased flight frequency from one to four whereas Qatar Airways on the other hand has increased scheduled flights from two to 14. Tanzania was the first East African country to open its airspace following the reduction in the number of coronavirus cases; Kenya on the other hand opened its skies on August 1. Latest reports show that Uganda is scheduled to open its borders and Entebbe International Airport on October 1, the facility has been closed since March when the country recorded its first Covid-19 case. Read the original article

The transport and logistics sector is set for a major transformation following the launch of the Kenya Transport and Logistics Network that brings the running of the ports, railway services and pipeline under one parastatal. The new outfit will manage the Kenya Ports Authority, Kenya Pipeline Corporation and Kenya Railways under the Industrial and Commercial Development Corporation (ICDC). Treasury Cabinet Secretary Ukur Yatani will today preside over the signing of the network’s framework agreement in Mombasa. A programme of events shows board chairmen of the three parastatals will grace the event besides the network’s chairman John Ngumi, who also chairs the ICDC. After the official signing, the team will tour some installations of the three agencies domiciled in Mombasa. The framework and operation of the parastatal is yet to be unveiled and understood by many in the logistics sector. Some stakeholders are demanding clarity and a legal framework to support the new arrangement. Some experts, however, have confidence in the new arrangement, saying it has worked efficiently in other countries including South Africa. Earlier, the Dock Workers Union threatened court action to force the government to enact and amend relevant laws. Already the declaration of KTLN, through an Executive Order on August 7, has had ripple effects at KPA where the appointment of the managing director has been suspended by the board to seek clarity. Sought clarity He said the board has sought clarity to avert legal hurdles that may arise from the formation of KTLN. Kibwana said the team...

The Port of Mombasa which was once among the first public institutions to record early cases of Covid-19 has managed to suppress the spread of the virus at the crucial installation, an official has said. Kenya Ports Authority (KPA) Head of Corporate Affairs, Mr Bernard Osero said that an 11 man committee set up to oversee the coordination and implementation of containment measures has recorded success. ''Guided by the Ministry of Health and World Health Organisation (WHO) recommendations, KPA effected operational and health safety measures that steadily decreased infections amongst staff and port users,'' Osero said. Three KPA staff have so far succumbed to the disease while multiple others who tested positive have recovered after undergoing treatment. It is not clear how many tested positive for the virus and how many are still on treatment. ''The stringent measures in place have ensured that the Port of Mombasa remains operational 24/7 while diligently adhering to the safety regulations,'' Osero said. He added that while the experience has been unpleasant, the lessons learnt in containing Covid-19 and living under the new normal has have been valuable. ''These will go along way in informing how we conduct business now and in the future,'' said Osero. Among the lessons learnt include discovering the institution's ability to acquire 'smart port status' which is in line with KPA's vision of a world-class port of choice. Read the original article

According to the African Union, in order to get maximum benefit of the arrangement as a country, we need to work on minimising or eliminating non-tariff barriers altogether. The Africa Continental Free Trade Area (ACFTA) was supposed to be launched at the beginning of July, but due to the coronavirus crisis, this has been pushed back to January next year. ACFTA will liberalise the movement of goods, services and people throughout the continent which is an important ingredient for the transformation of Africa's people. A major challenge for Africa is that it does more trade with the outside world than it does within itself. This is a historical arrangement that was set in place by the colonialists. Trade between African countries accounts for 15% of all trade done by the continent. This is woefully small compared to Asia's 58% or the European Union's 75%. Being the major markets for our products means the former colonial powers can set the price of our coffee, tea, cotton and even gold. Increasing trade within the continent will break this monopoly market, create greater interdependence between our countries and unlock the vast potential of our continent. It will also make us a more attractive investment destination, aid in technology transfer and in so doing reduce poverty and aid the transformation of our countries. We have evidence here at home of how through the opening of regional markets, the East African Community (EAC) has boosted our farmers' production of grain. Imagine if the same concept...

SUMMARY In the half-finished EPA deal, the EU allowed Kenya interim duty-free market access although this cannot be relied on until other remaining partners of the EAC put ink to paper to make it legally binding. The deal allows EAC products total access to the EU market, while 82.6 percent of imports from the EU are allowed into EAC market duty-free. Losing such preferential terms due to the inconclusive EPA negotiations remains the biggest nightmare for Kenyan exporters because they would be the hardest hit should trade between the two blocs revert to ordinary conditions. Of significance is that Kenya is the only EAC country not classified as a Least Developed Country (LDC), meaning that should the EPAs negotiations fail to conclude, then the country would be hardest hit because it would lose preferential access to the European market. Amidst a spirited race to beat a deadline for a post-Brexit trade deal with the United Kingdom by December 31, a common debate has been the fate of Kenya’s existing commitments under the East African Community (EAC) which is the overseer of regional trade. Some critics maintained that Kenya’s pursuit of bilateral trade pact with the United Kingdom (UK) contravenes the principle of Article 37 of the EAC Common Market Protocol which advocates for a coordinated and common negotiated international trade and investment deals that are mutually beneficial to all members of the bloc. Kenyan flower exporters, rattled by the experience from the previous joint negotiation of an Economic Partnership Agreement(EPA)...

COVID-19’s dire short-term economic consequences have the potential to act as a catalyst for much needed change for SEZs across Africa. Many marginal Special Economic Zones (SEZ) programs, which were already underutilized prior to the pandemic, may fail. This will create room for new and better projects with a focus on knowledge transfer and long-term investment. The World Trade Organisation (WTO) expects world trade to fall by 13-32% in 2020. Statistics from the International Monetary Fund’s (IMF) World Economic Outlook Database suggest that Africa’s exports represent an estimated 2.6% of total world exports in 2018. According to this data, this would mean a 2020 loss of export earnings for the African continent of more than $500 billion.[1] Additionally, logistics bottlenecks related to lockdowns and quarantines have significantly increased the costs of doing business in Africa. Large economies such as South Africa and Nigeria will suffer the most from this chokepoint in trade competitiveness. Certain growing economies, such as Rwanda and others, may successfully use SEZs to benefit from COVID-19. African economies dependent on international Foreign Direct Investment (FDI) flow will have to now rely on their local neighbours for trade. A combination of factors will cause international FDI flows to continue slowing down. COVID-19, commodity and tariff trade wars, as well as US military withdrawal worldwide will decrease international trade.[2] UNCTAD’s report outlines that 2019 was one of the worst years for African FDI in the past 15 years. View source. This is problematic because intra-regional trade among African countries only...