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DR Congo opens economy as coronavirus tensions ease

he Democratic Republic of Congo has lifted the nationwide state of emergency that was declared in March to curb the spread of the coronavirus, after seeing a slowdown in the number of new infections and deaths. Commercial activities resumed Wednesday with banks, restaurants, and bars allowed to reopen while social gatherings and public transport also resumed, President Félix Tshisekedi said, in a phased reopening of the country that had shut its national borders as well. “The death rate has dropped from 11 percent to 2.4 percent. The mortality rate is on a decline this month of July,” the President Tshisekedi was quoted as saying by The EastAfrican. As of 2 am (WAT) Friday, DRC had recorded a total of 8,720 confirmed coronavirus cases, with 201 deaths and 5,105 recoveries. Only 14 out of the country’s 26 provinces have reported cases. Schools are to reopen from August 3, starting with learners in the final year of studies across all levels of education – primary, secondary, colleges, and universities. Reopening of places of worship, stadiums, performance halls including discotheques is expected to follow from August 15 but burial ceremonies remain prohibited. Interprovincial and international travel restrictions will end on the same day, with the reopening of ports of entry. The DRC will relearn how to carry on with normal life “while respecting the containment measures,” the Tshisekedi said, urging citizens to observe social distancing, washing and sanitizing of hands, compulsory wearing of masks in public places and regular disinfecting of places of activity....

Port business rebounds after end of restrictions

Business has slowly picked up over the past two weeks at the port of Mombasa, raising hopes of a rebound after months of depressed activity attributed to the coronavirus pandemic. The positive trend is largely attributed to the lifting of movement restrictions into Mombasa and the reopening of the National Transport and Safety Authority and Kenya Revenue Authority offices. Operations in these key agencies had either been scaled back or suspended as the virus swept through the organisations. In April, health officials embarked on a mass testing exercise targeting nearly 5,000 staff at the Kenya Ports Authority (KPA) after two employees died of Covid-19. Traders said the July 6 directive that allowed the resumption of air and road transport had a positive effect on the logistics, shipping and vehicle sales sectors. Car Importers Association of Kenya chairman Peter Otieno said they had seen a jump in sales. “Over 4,000 imported vehicles have moved from Mombasa to Nairobi since the lockdown was lifted. We used to move only 300 units per week during the travel restrictions,” said Otieno. He continued: “During the lockdown, importers would bring in 6,000 to 8,000 vehicle units a month, but they now expect orders to be in the range of 9,000 to 15,000.” Data released by KPA showed that the number of containers that passed through the port last week increased by 1,000 20-foot equivalent units (TEUs) compared to the previous week. Of the 13,991 TEUs handled at the port last week, 8,641 TEUs were hauled by the...

State begins global marketing of Lapsset

In Summary On Monday, Foreign Affairs PS Macharia Kamau said Lapsset was an integral project for the region as it will boost Africa’s economic integration through infrastructure development and trade. Macharia said when he toured the port that the government was focusing more on marketing the port to foreign markets to achieve its objectives. The government has started marketing the Lapsset project as a platform for enhancing regional and economic integration. The development follows the recent completion of the first three berths at the project site in Kililana area in Lamu west. On Monday, Foreign Affairs PS Macharia Kamau said Lapsset was an integral project for the region as it will boost Africa’s economic integration through infrastructure development and trade. Macharia said when he toured the port that the government was focusing more on marketing the port to foreign markets to achieve its objectives. The Lamu Port Corridor Development Authority-LCDA said the first three berths cost Sh48 billion. The first berth was completed in August last year while the other two were completed last month. The three berths are 1.2 kilometres in length and have a depth of 17.5 meters. “Through such infrastructure development, new enormous markets will be established which will, in turn, grow intra-African trade that is currently at a low rate,” Kamau said. LCDA director general Sylvestre Kasuku said massive private sector interests have been registered to develop and operate the additional 29 berths. Of much interest is also the new Lamu Port Industrial City which will make Lapsset an...

COVID-19 pandemic to promote re-engineering of Customs processes

As the spread of the Coronavirus (COVID-19 persists, the movement of relief goods including Medical supplies and equipment through borders all over the world has increased dramatically. Customs officials have found themselves in the frontline in the fight against the virus. This calls for them to strike a balance between their own safety and facilitating trade to support the fight against the pandemic by timely clearance of medical supplies but also clear other goods necessary for economic recovery. Following the declaration by the World Health Organization (WHO) on 11th March 2020 that the Coronavirus was a global pandemic, the World Customs Organization advised its members to not only continue facilitating the movement of essential supplies to fight the virus but also goods that can mitigate the overall impact of the COVID-19 outbreak to the economy and societies in general. Like many other industries and professions, COVID-19 has disrupted the way of doing business for Customs officials because of the risk of exposure to officials, and complicated Customs border control management. The crisis has raised the need for Customs Organizations to come up with innovations and inventions on customs processes during and post COVID-19 era to ensure the timely clearance of goods while safeguarding the safety of officers on the other hand, since the World health organization indicated that the virus is here to stay. For instance, some of the processes that require physical solutions include the following: letters by clearing agents letters by importers requesting for extension of the period for...

East Africa: Why the Kenya-Tanzania Border Row Undermines Prospective African Free Trade

The Kenya-Tanzania trade row was occasioned by failure of the two countries to agree on Covid-19 protocols to be followed in the cross-border movement of people and goods. Tanzanian authorities have retaliated against Kenya's decision to restrict movement between the Kenya-Tanzania border over Coronavirus by forbidding all automobiles and persons from Kenya. This decision follows fears of cross-border transmission between Kenya and Tanzania that was first expressed by Kenya after identifying the Kenya-Tanzania and Kenya-Somalia borders as hotspots for coronavirus.[i] As a preventive measure, Kenya maintained that cross-border long distance truck drivers must be tested for Covid-19 before being granted entry into Kenya. The diplomatic tiff[ii] between Kenya and Tanzania came shortly after President Magufuli skipped the video-conference between East African Community (EAC) heads of state and governments on 12 May 2020.[iii] According to the EAC, the consultative video-conference was meant to assess the development of Covid-19 in the region in a bid to develop a regional approach. President Magufuli would later in June suggest that Tanzania is free of Covid-19 as God had "answered" their prayers.[iv] While public health is essential for both Kenya and Tanzania, bilateral consultation must be conducted between the two countries before any cross-border Coronavirus protocols are developed and implemented. Indeed, such consultation should apply to any other aspects like customs and immigration among others to enable seamless transactions at points of entry. This is the only sure way to promote free trade and enhance good neighbourliness between the two countries. Indeed the standoff has already negatively affected livelihoods of...

Gulu logistics hub in Uganda begins construction

Construction of Gulu logistics hub in Uganda is underway Gulu district secretary for works Patrick Kinyera has confirmed. The US$ 29 million (approximately 107.3 billion shillings) project is being undertaken by Ambitious Construction. The logistics hub will comprise of a dry port with both rail and truck terminals, according to the Independent. The logistics hub is located on a 54 acres piece of land in Layibi division, Gulu Municipality. The land was allocated by the Uganda Railway Corporation and the project funded by the European Union together with UK`s Department for International Development (DFID) through Trade Mark East Africa (TMA). Mr Kinyera said that the project is expected to be completed withing eighteen months. Moses Sabitti, the country director for TMA says that the hub will be able to handle more than 500,000 containers at a time. Major features of Gulu logistics hub in Uganda will include container freight station, customs clearing site, container holding station, container cleaning and repair station and vehicle holding stations. He said other services will include tax payment, maintenance and repair, banking, information and communication technology among others. The hub is located adjacent to the current Gulu railway station. Gulu district chairperson, Martin Ojara Mapenduzi is optimistic that the hub will not only provide job opportunities but also facilitate movement in Uganda through the Northern region by reducing on transport costs, improving efficiency in the movement of goods for farming communities of Northern Uganda.

EAC rolls out electronic Covid-19 certificates to ease transportation

Summary The EAC regional Electronic Cargo and Driver Tracking system, will enable authorities to share test results of the drivers and crew. Kenya Transporters Association executive officer Dennis Ombok said they have not been trained on the usage of the system and he only learnt of the implementation last week during stakeholder virtual meeting. East African countries have moved to ease movement of goods with the roll-out of a system that will allow them to share Covid-19 test results of truck drivers electronically. The reliance of hard to verify manual certificates has been blamed for costly long delays at the different border points that sometimes last for weeks. The EAC regional Electronic Cargo and Driver Tracking system, however, will enable authorities to share test results of the drivers and crew facilitating easy information exchange along the transport corridor. This means no transit cargo will leave the port of Mombasa or any Kenya Ports Authority (KPA) facility without a driver being aligned with the truck and the cargo in the system. According to a notice by the EAC secretariat to relevant ministries of the member countries, all drivers must upload their Covid-19 certificates to the new system before cargo is armed with tracking gadgets,  a directive which has already been opposed by transporters faulting the short implementation notice. MINISTERIAL MEETING “Following a joint ministerial meeting responsible for Health, Trade and EAC held by video Conference on March 25 and in line with the directive of the Sectoral Council on Trade, Industry,...

Regional traders seek answers on cross-border cargo delays

East African traders have always dreamt of a smooth movement of goods across the region. However a number of bottlenecks have always scuttled this aspiration. The outbreak of the Covid-19 has complicated the matter, resulting in too much delays at the border points. It is against this backdrop that private businesses have sanctioned a study to inform future mitigations on costly delays that impede movement of imported and export goods across countries. The traders, through the East African Business Council (EABC), say the assessment to be conducted within 21 days will help create a “recovery path based on lessons learnt during the Covid-19 era”. In a tender posted on its website, EABC said consultancy firms should file their bids seeking EABC’s nod to conduct the survey. “EABC wants to understand the impact of Covid-19 on the transport and logistics industry in terms of movement of goods and people within East African countries and from outside the region,” it said. The business lobby said the study, which is supported by TradeMark Africa, will seek to flag painpoints, identify hardest hit sectors, especially small and medium enterprises, on rail, air, road and maritime transport. The tender also said the consultant is expected to offer country-specific recovery solutions that will facilitate public-private sector engagements. The Federation of East African Freight Forwarders Associations (Feaffa), that comprises clearing agents in Uganda, Tanzania, Rwanda, Burundi and Kenya, has welcomed the study saying it is has come at the right time as East African countries have started...

Malawi to reap from $50 million trade fund

Malawi’s exports to the east African market are expected to be enhanced during and beyond the Covid-19 pandemic period, following Britain’s offer to support the Trade Mark East Africa (TMA) project with $50 million. TMA was established as a non-profit making institution for aid for trade delivery in East Africa. In one of its recent proposals for aid, the organisation highlighted the need to help the Malawi government focus on diversifying exports and reducing vulnerability of rain-fed agriculture. It expressed abilities to support these efforts by reducing costs and time of trade and ensuring that Malawian products are competitive on international markets. The UK, through the Department for International Development (DFID), has since shown strong interest in funding the five year programme in full, as part of its planned Malawi Trade and Investment Programme (M-TIP). This came out when Acting UK High Commissioner to Malawi, Dave Beer, visited the new Minister of Trade, Sosten Gwengwe, last week. Beer indicated that TMA would help in the implementation of Covid-19 safe trade emergency plan aimed at facilitating smooth trade flows across borders and corridors by enhancing safety measures for frontline officers at the borders. “The aim is to improve Malawi’s trade infrastructure, enhance the trade environment, and boost business competitiveness,” Beer said. In an interview, Gwengwe said the project will enhance corridor connectivity and help Malawi boost its trade potential. “The project will focus on two dominant themes; first improving trade along the key trade corridors for Malawi. “Secondly, it will support...

COVID-19 eats up 40% of Intra EAC trade

In a recent study by TMA, the restrictions on movement of people also cut off operations of informal cross border traders who significantly contribute to regional trade. BUSINESS   VIRUS The current outbreak of the coronavirus pandemic continues to threaten the already fragile intra East African Community (EAC) trade, pulling it back by 40%, according to TradeMark Africa (TMA). Already standing at a measley20%, TMA said a further drop in intra-regional trade was first registered in March, following measures undertaken by regional governments to curb the spread of the coronavirus outbreak. Regional governments instituted measure to control the movement of people across borders, after the outbreak, and allowed only the movement of goods. In a recent study by TMA, the restrictions on movement of people also cut off operations of informal cross border traders who significantly contribute to regional trade. Informal cross border traders, who mostly comprise women, contribute approximately 60% to trade across the region's borders. The trade represents produced goods and services, which directly or indirectly do not pass through the regulatory framework for taxation and other procedures set by Partner States. TMA said since the outbreak, most manufacturers across the region have also resorted to focusing on local markets, leaving only agricultural goods and products to swing across the borders. It also noted that: "Due to the current coronavirus pandemic, regional trade has been heavily impacted leading to a rise in NTBs." Prior to the COVID -19 outbreak, intra-regional trade had been projected to grow 5%, driven by...