In Summary The two countries have recently had some misunderstanding over handling of the Covid-19 the pandemic. The residents said the duo should sort out their differences and strengthen economic and social ties. Communities living in Vanga, Lunga Lunga, Kwale want President Uhuru Kenyatta and his Tanzanian counterpart Pombe Magufuli to end the economic cold war. The two countries have recently had some misunderstanding over handling of the Covid-19 the pandemic. According to residents, the ongoing grudge between the two countries has negatively affected trade. Led by Feroz Mohammed, the residents said the duo should sort out their differences and strengthen economic and social ties. “We want them to end their fights. Before these coronavirus restrictions businesses were doing great unlike now,” he said. Tanzania and Kenya have for years depended on each other on trade as border residents will cross over for business. There are popular open-air markets called ‘chete’ whereby businesspeople from both sides trade at cheap prices. Mohammed said the stringent Covid-19 rules for foreigners at the border have paralysed businesses, raising the prices of commodities. Vanga is known for fishing and the biggest markets are in Tanzania. The residents said they were forced to travel to Mombasa to find a market for their products, which is expensive. “Vanga to Tanga is about 60km compared to going to Mombasa which is almost 150km. That's time-wasting and consumes a lot of money, " he said. Wholesaler Hamdu Hamadi said they used to get wheat flour, rice and maize among...

The revival of the 240-Kilometre Nairobi-Nanyuki metre-gauge railway line is now complete and has started operations by transporting petroleum products to the Shell Vivo Energy depot in Nanyuki town. The  Mining and Petroleum Cabinet Secretary (CS), John Munyes who toured the petroleum facility on  Wednesday accompanied by a government delegation that rode the passenger train from Thika station to Nanyuki on a test run said the revival would offer a safer way of transporting petroleum products to  Mt. Kenya region and Northern parts of the country. “What this brings as far as the petroleum sector is concerned is efficiency, the security of our products is going to be achieved with this railway, it’s going to be cheap, safe because we are taking away trucks off our roads,” Munyes said. The  CS  added that the transportation of petroleum via the railway will greatly minimize cases of fuel adulteration often common when the same is transported by trucks on roads. “We have had cases of neighbouring countries complaining that fuel transported there through Kenyan roads is adulterated, but if we can restrict ourselves to transporting fuel via pipeline or railway, it means the security of our products is achieved,” the CS said. Munyes  who  was  accompanied by the  Principal Secretaries, Andrew Kamau (Petroleum) and Kirimi Kaberia (Mining), termed the revival of the railway line a great milestone that would not only boost the agricultural potential of Mt Kenya but added the mining sector was likewise set to reap big as the train...

DP World this week announced the completion of a 400-meter expansion of the Berbera port in Somaliland. The Dubai Port Company that is contracted to expand the port said once operational, it will increase the terminal’s capacity by 500,000 TEUs per year and further strengthen Berbera as a major regional trade hub servicing the Horn of Africa. In a tweet, DP World stated: “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.” The news has elicited excitement within the Somaliland government with the vice president Abdirahman Abdilahi saying: “As Deputy President of Somaliland and on behalf of the people, words can’t express my great excitement about the nearing completion of the Berbera port expansion. my gratitude goes to the Sheikhs of the UAE and the DP World.” DP world, the Dubai based world’s largest port operator is the key player in the rebuilding of Berbera, they have invested $442 million for the expansion of the port and are also the economic free zone. It has projected to complete work by February next year. In 2017 when the original agreement was signed, the CEO of DP World Mr. Sultan Ahmed bin Sulayem drew a parallel between the growth of Dubai and the development path Somaliland is on and added “Our vision is to make Berbera a trading and transportation hub for the Horn of Africa.”...

The government of the Republic of Uganda led by Amelia Kyambadde, the Minister of Trade Industry and Cooperatives, has broken grounds for the construction of Busia Border Export Zone in Busia, a town located in the Eastern Region of Uganda at the border with the neighboring Republic of Kenya. The construction works of the project, whose procurement process has already been finalized, will be undertaken by local firms that include BAM Construction & Surveyors Ltd, and Global Trust Consults Ltd within a period of not more than five months from the date of commencement. The project is partly funded by the European Union, which through COMESA, has already provided a grant of over US$ 2M to the trade ministry to commence the works. The Busia Border Export Zone is one of five more export zones planned to be constructed at Malaba, Katuna, Oraba, Lwakhakha, and Elegu at a total cost of over US$ 108M. They will consist of warehouses, commercial buildings, and a central market as well as other export/import related facilities. Importance of the Border Export Zones The proposed export zones are expected to promote regional trade through increased and faster cross border flows of export goods and services, as well as increased export earnings as a result of improved trade infrastructure and capacity building to the cross-border traders. They are also expected to provide employment opportunities in the course of construction and upon completion, and they are also expected to promote investment through Public-Private Partnerships. According to the Minister of Trade Industry and Cooperatives, some...

Construction at the Rusizi and Rubavu ports started early this year, with Rutsiro and Karongi works scheduled to start January 2021. Construction of ports on Lake Kivu has kicked off in the districts of Rubavu, Rusizi, Rutsiro and Karongi to facilitate the transport of goods and people on Lake Kivu. The lake is also shared with DR Congo, one of Rwanda’s main trading partners. A budget of $28 million (approximately Rwf26bn) was set aside by the government in partnership with development partners. Construction at the Rusizi and Rubavu ports started early this year with Rutsiro and Karongi works scheduled to start January 2021. A ferry with a capacity to carry three tonnes and 30 passengers between the ports is scheduled to begin operations by the end of the year. A bigger ferry has also been commissioned and is expected to be operational by the end of 2021. The bigger ferry will have the capacity to carry 150 passengers and 10 tonnes of cargo. This will be welcome news for DR Congo-Rwanda traders as the new water transportation will enhance doing business between the two countries. In an interview with The New Times, Emile Baganizi, the Deputy Director-General of Rwanda Transport Development Agency, said that the goal of the investment and constructing the ports is to cut cost and time required to transport goods between Rwanda and DR Congo. Baganizi explained that passenger transport on the lake is still low because of limited infrastructures such as modern ferries and port facilities on...

Summary In 2019, transit cargo from Dar es Salaam to Uganda, Rwanda, and Burundi was at 37 percent, up from 22 percent in 2018. On average it costs $1.80 per kilometre per container to transport goods from the port of Dar es Salaam to Bujumbura compared with $3.10 per kilometre per container from the port of Mombasa. The turnaround of the Central Corridor has been attributed to the revival of the Central line metre gauge railway. This may have prompted Kenya Railways — after two decades of neglect — to rehabilitate the old meter-gauge railway from Nakuru to Kisumu at a cost of Ksh3.8 billion ($35 million). The Dar es Salaam port could attract lucrative business away from the Mombasa as the Central Corridor proves to be cheaper compared with the Northern Corridor transport route. On average it costs $1.80 per kilometre per container to transport goods from the port of Dar es Salaam to Bujumbura compared with $3.10 per kilometre per container from the port of Mombasa. The recently released the Central Corridor Transport Observatory 2019 report, which measures the performance of the Central Corridor, also shows that the average costs per km per container from Dar es Salaam to Kigali is $1.90 compared with $2.10 from the port of Mombasa. Importers from Uganda, also pay less at $1.80 per km per container to transport goods from the port of Dar es Salaam compared with $1.90 per km per container charged from Mombasa, while those from Goma pay $2.60...

In Summary Free trade policies in general provides for free movement of goods and services between countries. This approach is based on the argument that enhanced trade increases wealth and is therefore a good thing to both Kenya and the US. Kenya and the United States of America (USA) formally launched negotiations on 8th July 2020 to seal a Free Trade Agreement (FTA). This will be first of its kind in Sub-Saharan Africa. This follows the U.S.-Kenya Trade and Investment Working Group established by President Trump and President Kenyatta in August 2018, which was tasked with laying the groundwork for a stronger bilateral trade relationship. It is expected that this deal will form a model for other African countries upon the expiry of the African Growth and Opportunities Act (AGOA) in 2025. Free trade policies in general provides for free movement of goods and services between countries. This approach is based on the argument that enhanced trade increases wealth and is therefore a good thing to both Kenya and the US. The announcement of Kenya’s trade deal with the US is a testament to the realization of Kenya’s growing market diversification and offers a myriad of opportunities especially with regards to market penetration, job opportunities, technological advancements and innovation to spur economic growth and help Kenya raise standards to meet new manufacturing American requirements for export; and open up local industry to new investments. In order to understand and appreciate how these benefits would accrue it is important to first...

In Summary A kilo at the Mombasa auction averaged $1.85 (Sh199.87) this week, a slight increase from $1.82(Sh196.63) in last week's trading. The commodity however continues to trade below the two-dollar mark for 13 weeks. Tea auction prices have shown a sign of recovery after maintaining an upward trend for the second week, despite remaining below the traditional two-dollar mark. A kilo at the Mombasa auction averaged $1.85 (Sh199.87) this week, a slight increase from $1.82(Sh196.63) in last week's trading. Out of 171,065 packages (11,363,081 kilos) available for sale this week,140,022 packages (9,268,419 kgs) were sold. 18.15 per cent packages remained unsold. Kazakhstan and other CIS states lent strong support and were dominant while Sudan showed strong activity with increased interest from Pakistan packers, Yemen, other Middle Eastern countries and Russia, the East African Tea Trade Association (EATTA) data indicates. “Afghanistan showed strong support with useful inquiry from Bazaar and UK. There was reduced interest from Egyptian packers while Iran were selective with strong activity from local packers,” EATTA managing director Edward Mudibo said. Somalia were more active at the lower end on the market. Last week, Kazakhstan, other CIS states and Sudan showed more and strong interest and were forceful while Afghanistan and Bazaar increased activity and were also forceful, according to EATTA. Out of 176,602 packages (11,716,349 kilos) available for sale last week,139,925 packages (9,246,702 kgs) were sold, meaning this weeks sold packages went high. 20.77 per cent packages remained unsold last week. The upward trend comes as a relief after three straight weeks of trading at an average $1.73 (Sh186.91),...

DAR ES SALAAM, Aug. 7 (Xinhua) -- Tanzanian Prime Minister Kassim Majaliwa on Friday inspected construction of the 300-km standard gauge railway (SGR) from the commercial capital Dar es Salaam to Morogoro, said a statement issued by his office. The statement said relevant officials told Majaliwa that construction of the 300-km SGR is 87 percent complete. "The government has embarked on the construction of the transportation infrastructure to enhance trade within and outside the country," said the statement, adding that improvement of the infrastructure was also aimed at giving Tanzanians more choices for the mode of transportation. In November 2019, Tanzanian President John Magufuli said the governments of Tanzania and Rwanda were in final stages of negotiations to construct an SGR from Isaka dry port in Tanzania to Rwanda. Magufuli said the SGR will also serve landlocked countries of Burundi and the Democratic Republic of Congo. He said feasibility studies for the SGR linking Tanzania and Rwanda have already been undertaken, adding that the two countries are now looking for financiers of the project. Also in November 2019, the Trade and Development Bank (TDB), a trade and development financial institution in Africa, approved a loan of 1 billion U.S. dollars to Tanzania for infrastructure projects. A statement issued by the Directorate of Presidential Communications at Chamwino State House in Dodoma said the release of the loan was announced by TDB President and Chief Executive Officer Admassu Tadesse during talks with President Magufuli. Enditem Read the original article Disclaimer: The opinions expressed...

Kenya's standard gauge railway maintained a steady movement of cargo from the port of Mombasa to the capital Nairobi despite the COVID-19 pandemic disrupting various sectors. The service moved about 1.98 million tons of cargo between January and June. NAIROBI, Aug. 7 (Xinhua) -- Kenya's standard gauge railway (SGR) maintained a steady movement of cargo from the port of Mombasa to the capital Nairobi despite the COVID-19 pandemic disrupting various sectors in the first half of the year. New data from the Kenya National Bureau of Statistics seen on Friday showed that the service moved about 1.98 million tons of cargo between January and June. This was a slight decline from a similar period in 2019, where 2.20 million tons of cargo was moved in the first half. Considering the fact that COVID-19 pandemic hit Kenya from March, affecting port operations, the movement of cargo this year was stable. Most of the cargo in the first half of this year was moved between April and June, when some 1.05 million tons were ferried on the SGR, with the rest between January and March, according to the bureau. During the period, it said the SGR's cargo business generated 5.53 billion shillings (about 51.7 million U.S. dollars) in revenue, a slight fall from 52.6 million dollars in a similar period in 2019. Most of the cargo ferried in the period under review was medical supplies and grains, as demand for the trains rose as the country battled COVID-19 pandemic. According to Afristar...