The World Bank has agreed to a no cost extension for the Great Lakes Trade Facilitation Project (GLTFP) to December 2021. The five million US dollars project was launched in 2016 for a five-year period. COMESA’s Assistant Secretary General for Programmes Ambassador Kipyego Cheluget said the Project has been crucial in facilitating trade for small scale cross border traders by promoting the Simplified Trade Regime and providing necessary information needed to conduct business across the three project countries of Democratic Republic of Congo, Rwanda and Uganda. He added that though most traders have been affected by COVID-19 and the restrictions that have been imposed by countries, the GLTFP has ensured that Trade Information Officers are available at border posts to attend to those who are trading. COVID-19 also halted most of the project’s field-based activities such as regular visits to project countries and borders in order to hold consultations with relevant stakeholders.  The Project Team has adapted to using online communication platforms provided by COMESA Secretariat and have continued implementing the project. “The use of online meetings has had its positive effect in terms of saving resources which can be used during the no-cost extension of the project that now ends in December 2021,” said Amb. Cheluget, who is also the PSC Chairperson. Another major activity that the project is focusing on is the continued provision of technical support and coordination of activities aimed at rolling out effective implementation of the COMESA Simplified Trade Regime (STR). The STR seeks to help in...

SUMMARY The Kenya Ports Authority (KPA) said cruise ship sector will bounce back once Covid-19 pandemic is contained. Like almost every sector of the economy, tourism has been adversely affected by the effects of the pandemic. Kenya’s Sh1.3 billion cruise ship terminal is lying idle at the Port of Mombasa with six cruise ships which were expected to call this year cancelled due to the disease. Kenya is looking beyond the challenges posed by Covid-19 as it seeks to position the country as a top cruise tourism destination globally. The Kenya Ports Authority (KPA) said cruise ship sector will bounce back once Covid-19 pandemic is contained. Like almost every sector of the economy, tourism has been adversely affected by the effects of the pandemic. Kenya’s Sh1.3 billion cruise ship terminal is lying idle at the Port of Mombasa with six cruise ships which were expected to call this year cancelled due to the disease. KPA principal communication officer Hajji Masemo said the prospects of the country’s cruise tourism look bright, noting that the agency is collaborating with the Cruise Africa, an association that incorporates the Indian Ocean, to market cruise tourism. He said for Kenya to tap the full potential of the sector, the Port of Mombasa needs a “home vessel”. "This means the ship will be domiciled here, start her journeys from Mombasa to other destinations,” he said. The cruise sector, Mr Masemo added is one of the fastest growing maritime segments in the world. "It is growing at...

SUMMARY Port services competition is growing in East and Horn of Africa after the construction of 400 metres quay and a 250,000-square-metre extension of Berbera Port in Somaliland . The expansion will give the port capacity to handle up to 500,000 containers yearly. Dubai-based port operator, DP World which took over management of the port in May 2017 for the next 25 years announced the completion of the expansion at a cost of $442 million. Port services competition is growing in East and Horn of Africa after the construction of 400 metres quay and a 250,000-square-metre extension of Berbera Port in Somaliland . The expansion will give the port capacity to handle up to 500,000 containers yearly. Dubai-based port operator, DP World which took over management of the port in May 2017 for the next 25 years announced the completion of the expansion at a cost of $442 million. The new facility will provide another connection between Ethiopia and global markets, and a transshipment hub where large container ships can offload their freight to feeder ships able to negotiate the Horn of Africa's shallow ports. "We have just completed a 400m quay and a new extension at Berbera Port, Somaliland. Once operational, it will increase the terminal's capacity by 500,000 TEUs per year, and will further strengthen Berbera as a major regional trade hub servicing the Horn of Africa," read a tweet by DP-World. During the takeover of the port's management in 2017, DP World chief executive Sultan Ahmed bin...

Uganda has recorded an increase in export value for two consecutive months, an indication the East African nation is emerging from the economic decline caused by the Covid19 pandemic. According to the July 'Performance of the Economy Report' released by the Ministry of Finance, Planning and Economic Development (MoFPED), export earnings increased for the second consecutive month to $337.19 million in June 2020 from $290.93 million in May 2020. Additionally, the value of imports increased to $543.6m in June from $435.6m in May. Generally, the month of July registered improvement in economic activity and this has been majorly attributed to the easing of some of the containment measures that were instituted to prevent spread of the virus. MoFPED further says that monetary policy actions implemented by the government since April have also supported this improvement. Specifically, the Bank of Uganda maintained the Central Bank Rate at 7 percent in July 2020 and continued to provide liquidity support to the banking sector. To continue supporting economic recovery during the COVID-19 pandemic, the report says, the government plans to implement various fiscal measures in FY 2020/21. For instance, the government is recapitalizing Uganda Development Bank, increasing funding to Uganda Development Corporation to facilitate public-private partnership investments as part of the import substitution and export promotion strategy, and it is expediting payment of arrears owed to the private sector in order to address liquidity constraints faced by suppliers of the government. Sector breakdown The report says the Annual Headline Inflation rose to 4.7...

Mombasa, 20th August: The European Union (EU) Ambassador to Kenya H.E. Simon Mordue conducted a two-day visit of Mombasa during which he handed over Personal Protective Equipment (PPEs) to Kenya Ports Authority to support its fight against COVID-19. The Ambassador was hosted by Mombasa Governor H.E Ali Hassan Joho, Permanent Secretary Ministry of East Africa Community (EAC) Kevit Desai, Kenya Ports Authority Managing Director Rashid Salim, and TMA Kenya Country Director, Ahmed Farah. Today’s PPE’s delivery will meet the needs of 2,730 Kenya Ports Authority staff, Port Police, Kenya Revenue Authority staff, Port health staff and sustain them for 60 days. The 2730 staff were prioritised as they are the first responders and most vulnerable dealing with port health, first aiders and handling of cargo as it arrives. The PPE’s include Reusable masks, Hand sanitisers, Hand washing points, Disinfectant spray, Infrared Thermometer, Reusable Safety Boots, Full protective PPE for front line health workers, N95 face masks and face shields, as agreed with KPA in consultation with KRA and port health and advice from medical agencies at regional and international levels. The European Union is the largest donor to Kenya’s component of TMA’s Safe Trade Emergency Facility (STEF) programme with a contribution of KES 600 million (EUR 5 million). Its under this programme that the PPE delivery has been made as part EU’s wider support for mitigation against the spread of COVID-19 and promotion of continous safe trade in Kenya. The delivery to Port of Mombasa is critical as the port...

Transnet CEO Portia Derby has said the state-owned rail and port operator is eyeing regional trade as an increasingly important part of its business strategy, as the ongoing Covid-19 pandemic continues to depress global economic activity. Derby was speaking during an online webinar at the Southern Africa Transport Conference on Wednesday morning. “The linkages in SADC are crucial for South Africa. For South Africa to grow, our region also needs to grow. The north-south corridor is an important priority for us, and we will continue to push on that front, ” said Derby. In a frank assessment of what is expected in the coming year, Derby said she was not sure that the optimism around overcoming the Covid-19 pandemic by 2021 was warranted. She said she would personally expect a return to normality when the world successfully develops and distributes a vaccine. While the global slump in demand at the start of the pandemic affected Transnet’s operations, Derby said that entity proactively sought out advice from other countries to formulate its response plan. “When we started to see the flu spreading, we spoke to Singapore. It gave us a bit of a head start. We set up a command centre led by some amazing South Africans. Whenever a new regulation came out, we addressed it quickly insofar as its impact on our operation.” This yielded benefits, said Derby, as Transnet only had to completely close for three days during the lockdown. In April Transnet Port Terminals said its port utilities were only...

The CPD will test three major components; technical competencies, emerging issues and matters on leadership & personal development. The Federation of East African Freight Forwarders Associations (FEAFFA) has finalized development of the Continuing Professional Development (CPD) policy framework and its implementation guidelines and tools in readiness for start of piloting in Uganda and Rwanda planned for this year. The new training curriculum update, which has been supported by the Trademark East Africa (TMA) under the EAC logistics skills enhancement program, will ensure that all the East Africa Customs and Freight Forwarding Practicing Certificate (EACFFPC) graduates are kept technically and professionally updated, as the industry takes new and dynamic trends. The CPD will test three major components; technical competencies, emerging issues and matters on leadership & personal development. “FEAFFA has already developed the CPD policy framework with the implementation guidelines and tools. The tools will guide the National Curriculum Implementation Committee (NCIC) of national associations of customs agents and freight forwarders in the region in piloting and rolling out the program in their respective countries,” FEAFFA President Mr. Fred Seka told Freight Logistics magazine Uganda and Rwanda were earmarked for the piloting of the CPD program to ascertain its success before rolling it out fully in the entire East Africa Community (EAC) region. Preparatory meetings for piloting the program have already been held in the two countries. These meetings helped in drawing roadmaps on how the program piloting should be rolled out. “The focus now is to make sure that the training is in...

The East African Community is one of Africa’s most integrated regional blocs, but the Covid-19 pandemic has caused massive disruption to both its internal and external trade. Tom Collins reports At the Kenya-Uganda border towns of Malaba and Busia during the initial stages of Covid-19, queues of lorries stretched up to 65km as the Ugandan authorities imposed compulsory coronavirus tests on Kenyan lorry drivers before they entered the country. Kampala implemented the measure in late April when it became clear that truck drivers were key vectors of transmission. Similar issues unfolded at busy border crossings across the six countries that make up the East African Community (EAC) as governments failed to harmonise preventative measures at the regional level. At the Rwanda-Tanzania border crossing of Rusumo, for example, Tanzanian drivers were forced to hand cargo over to Rwandan counterparts who took it onwards to Kigali. The sudden disruption spelt disaster for the industries and businesses that rely on fluid borders in a region routinely heralded as the most integrated in Africa. The cost of moving goods around the region rose by an initial 30%, according to TradeMark Africa (TMA), though the trade body believes this figure has since decreased as the region adopts a more coordinated response. “Covid-19 has been really disruptive in terms of cost structures,” says Frank Matsaert, TMA’s CEO. “I expect things to normalise now that we have much more agreement between EAC member states. The tailbacks at the Ugandan border are down to 15km – that’s more than it’s been in many...

Transnet is embedding the “new normal” of the Covid-19 environment for the staff of its freight and transport operations and is dismantling a command centre it set up during the earlier lockdown to make it part of regular operations. CAPE TOWN – Transnet is embedding the “new normal” of the Covid-19 environment for the staff of its freight and transport operations and is dismantling a command centre it set up during the earlier lockdown to make it part of regular operations. This was according to Transnet chief executive Portia Derby, who spoke about the impact of the pandemic on the freight and logistics environment at an SA Transport Conference and International Road Federation-hosted webinar yesterday. Derby said the pandemic had a big impact on trade flows. Some vessels had been delayed at Cape Town harbour due to infections among port workers. Sometimes, vessels would by-pass Cape Town on their return route, and vessels calling at South African ports faced problems in meeting their European port schedules. At one stage, workers had to be brought in from Durban to help boost Cape Town’s port operations, she said. She said the transport and logistics sectors still faced some tough months. She questioned the view among many economists that gross domestic product (GDP) growth would suddenly recover to 3.1 percent in 2021, from the GDP decline of up to -9.3 percent that was expected this year. She said virtually every country in Africa with which Transnet dealt had a large budget deficit and high debt,...

The private sectors of Rwanda and Sweden Friday entered a partnership, opening up exchange of investments in both countries. A Memorandum of Understanding, signed by Rwanda’s Private Sector Federation (PSF) and Swedish East African Chamber of Commerce (SWEACC), is intended to boost investment and promote trade. According to the agreement, both parties will assist their members in establishing and strengthening business contacts through meetings and study tours with the objective of promoting the growth of trade. Speaking on behalf of PSF, the Chief Advocacy Officer Callixte Kanamugire welcomed the new initiative adding that Rwandan investors were ready to cooperate with their Swedish counterparts in order to tap into existing opportunities in both countries. “There is a lot we can do together and we are willing to follow up closely for better implementation of this agreement, Kanamugire said during the signing event that was held virtually. “Rwanda is strategically located and we have enormous opportunities in different sectors including coffee and tea exports among others.” Sweden is a Scandinavian nation that boasts of an export-oriented economy. It has built a modern distribution system and a skilled labour-force. The country’s engineering sector accounts for over 50 percent of its output and exports, according to available data. Timber, hydropower and iron ore constitute the resource base of the Swedish economy heavily oriented toward foreign trade. Jan Furuvald, Chairman of SWEACC, reiterated the need to look at potential investment sectors where investors from both countries can venture into business-to-business relationships. “I’m so excited to...