Illicit trade has a detrimental impact on the substantial growth of legitimate business in the country. Not only does it negatively impact our economy but has also proven hazardous to the health and safety of the citizens of this country. A review of a recent study by the Anti Counterfeit Authority (ACA) demonstrates how illicit trade has infiltrated the sustainability of our local enterprises. The study highlights that 7,484 jobs were lost between 2016 and 2018 as a result of illicit trade. The report also states that losses as a result of pirated products stood at Sh2.2 billion over the same period, with the government losing KSh 102.99 billion in revenue in 2018. Illicit trade manifests itself in six major and interrelated ways: smuggling, transit fraud/dumping, trade in prohibited goods or products, illicit cash flows, human and wildlife trafficking, trade in small arms and light weapons and counterfeiting, piracy and substandard goods. Industry continues to grapple with illicit trade in the forms of smuggled, counterfeit and substandard goods. And even at this time when we are facing a pandemic, it is discouraging to note that we have seen an upsurge in the vice as a result of the supply gaps created by some containment measures. Such is the case, that counterfeiters have taken advantage of the increased demand for Fast Moving Consumer Goods as well as closure and time restrictions on the operations of some sectors. Combating illicit trade continues to be a challenge locally, regionally and globally. The Business...

COMESA has developed an online portal to be used by Member States to exchange information on availability of essential products within the region. This is in response to a directive issued by the COMESA Council of Ministers in May this year to develop the platform to support regional trade, during the COVID-19 pandemic. Secretary General Ms. Chileshe Kapwepwe launched the prototype platform to representatives of Member States, during a virtual meeting on Friday. The focal points will coordinate with the private sector in populating the platform with information on essential supplies. This is expected to boost local production and address shortages in supply from outside the region. Ms. Kapwepwe said the platform will enable Member States to share information on availability of products and their potential to produce and supply all different types of goods. It will connect buyers to suppliers of essential goods thereby promoting and fostering regional intra-COMESA trade. As part of the roll out and implementation of the platform, the Secretariat conducted a training programme considering that multiple stakeholder use is needed to make it versatile, functional and sustainable. Secretary General said the platform will also help small-scale cross-border traders and SMEs to have access to market information and linking producers, sellers and buyers. She noted that measures being implemented by Member States such as closing borders to prevent the spread of the pandemic are slowing down economic activity and have severely impacted cross border trade. She said the implementation of the Digital Trade Facilitation programme and...

Kenya, has finally accepted seafarers’ crew change through Port of Mombasa after the COVID-19 pandemic forced maritime states to close their borders, leaving thousands of sailors stranded aboard ships in the high-seas for months. Kenya now joins 13 countries that agreed to the new international measures to open up borders for seafarers and to increase the number of commercial flights to expedite seafarers repatriation efforts following an international crew change summit held in London 9th July, 2020. Kenya, thus becomes the second African country to bow to the pressure by the international communities to have maritime states open their borders for thousands of seafarers who had been denied entry into foreign countries due to the coronavirus. Djibouti carried out the first crew change of merchant sailors in its territory  on July 3rd, 2020 and is ready to do more as more seafarers look forward to joining their loved ones on land who have been stranded by the coronavirus, a senior port official said. Lying on the Bab al-Mandab strait, which is one of the world’s busiest shipping chokepoints, Djibouti is a critical transit hub. More than 2,500 ships transit and call at its ports annually. Continued complications with changing over ship crews due to coronavirus restrictions in some jurisdictions is still affecting supply chains despite an easing of lockdown in many parts of the world. Some 400,000 seafarers are affected on land or on ships – with many at sea for longer than an 11-month limit laid out in a...

A number of countries are considering establishing a "Single Window" for the exchange of information between trade and government. The purpose of this publication is to provide these countries with concrete examples of the operation, costs and benefits of such facilities in other countries. A Single Window is a facility that allows parties involved in trade and transport to lodge standardized information and documents with a single entry point to fulfill all import, export, and transit-related regulatory requirements. If information is electronic, then individual data elements should only be submitted once. The Government of Ethiopia has launched an electronic platform on last January to enhance efficiency in trade logistics landscape of the country by speeding the customs process for importers and exporters. According to Robel Tesfaye, Program Director of Ethiopian Electronics Single Window Program Office, each private and public bank in Ethiopia and other offices have started offering eSW service from last January. Accordingly, it was able to save about Birr 18 million and 400 thousand working hours. Early results are already being voiced by the private sector. "The new eSW system has eliminated the need to physically apply and get permits for each export shipment from the Ministry of Trade," Robel added. "This not only has saved us time, but also reduced our transport costs to and from the Ministry Office." He further stated more than two thousand traders and five hundred regulatory institutions have started giving this e-service. He also added that the clients are forwarding positive feedback...

Construction works of the first three Lamu port berths are complete with handover and commissioning of the Sh. 42 billion project expected in December 2020. A tour by KNA of the Lamu Port project revealed that the three berths are complete, while construction of the container yards for berth 2 and 3 is ongoing where dredging works is underway alongside construction   of part of the 1.2 Kilometre causeway. The project has remained on course despite the global economic slowdown that COVID-19 crisis has wrought upon government projects across the country, with the project receiving a further shot in the arm, where Sh 6 billion funding has been earmarked by the treasury for the 2020/2021 financial year. Foreign affairs principal secretary macharia kamau (blue shirt) flanked by lapseet regional manager Salim Bunu and Housing PS Charles Hinga during a recent visit of the Lamu Port Project in Kililana which is near complete with commissioning works expected in December this year “The LAPSSET project has the confidence of the President who understands the sum of the LAPSSET’s parts in enabling the country achieve its status as a burgeoning middle income economy. it is illustrated in his administration’s political and economic support despite the tough economic times that the country and the whole world is experiencing,” Lamu Port-South Sudan-Ethiopia-Transport Corridor project (LAPSSET), Director General (DG), Sylvester Kasuku intimates. Speaking exclusively to KNA, the LAPSSET DG Kasuku, further underscored that the construction and completion of the first three berths, presents a strong case for...

Naftali Elude Mzota, a driver for the Impala Shuttle Company in Tanzania, has been driving between Tanzania and Kenya for over 23 years. Asked about the difficulties of crossing the border, Mzota sighs. “Customs clearance used to be a real challenge here, because there were two borders. You had to go through at the Tanzanian immigration office, and then repeat the exercise on the Kenyan side. It used to take between one and a half and two hours,” he said, smiling. “That’s all changed now. When passengers arrive, it doesn’t matter which side they come from, a single checkpoint does all the administration and they are able to carry on across the border.” The land border between these two East African countries, now has just a single border post. This project, the One-Stop Border Post, was set up at Namanga, a town of 16,000 inhabitants that straddles Longido District in Tanzania and Kenya’s Kajiado County in Kenya. By cutting the crossing time to a maximum of half an hour, the One-Stop Border Post project has boosted trade and tourism between Kenya and Tanzania. To set up the border post, the African Development Bank in 2007 approved $185 million in funding, of which $108 million went to Kenya and $77 million to Tanzania. The Bank co-financed the project with Japan International Cooperation Agency. “Thanks to the new crossing point, road traffic has increased,” said Edward Wilson Lyimo, the owner for more than 20 years of a hotel on the Tanzanian side...

The 150 million people strong EAC Common Market has opened a window for cross-border expansion, nurturing homegrown multinationals that now straddle the region. Kenyan companies have been the most adventurous, with their cross-border advances returning a mixed bag of fortunes. Some firms have recorded huge successes while others have rued the decision to venture outside their home markets. Fast-growing sectors such as financial services, manufacturing, retail, transport and ICT have provided launch pads for those itching to venture outside their comfort zones. “The spirit of the Common Market Protocol encouraged Kenyan companies to venture into the region but most realised the situation on the ground was quite different. Despite the challenges, Kenyan companies have benefitted specifically when it comes to free movement of persons, labour and capital,” said Meshack Kipturgo, managing director of logistics company, Siginon Group. EAC countries have to a large extent domesticated the Common Market Protocol making it easier for private companies to establish cross-border operations, but some have gone against the agreement on areas like free movement of people and land use that remains restricted. Some of the notable Kenyan companies with regional operations include KCB, Equity, DTB and NCBA banks, East Africa Breweries, Bidco Oil Refineries, Brookside Dairy, Siginon Group, Nation Media Group and Britam. Stiff competition For most of these companies, the search for revenue growth opportunities and stiff competition in the domestic market both from local companies and global conglomerates coming into the region forced them to seek new opportunities regionally. Efforts to...

Summary Kenya and Tanzania’s rise to lower-middle-income countries raises the bar for fellow East African Community (EAC) member states. I would argue that we should not be thinking of when Uganda, Rwanda, Burundi, and South Sudan will become middle-income countries, but how. The World Bank on July 1 categorised Tanzania as a lower middle-income country (MIC), becoming the second country in the East African region to achieve this milestone after Kenya. The World Bank categorises a middle-income country as one with gross national income (GNI) per capita between $1,006 and $12,235. Tanzania’s GNI per capita was reported at $3,140 in 2018, according to the World Bank collection of development indicators. Becoming a middle-income country reflects the hard work and sacrifices of citizens, and sustainable, people-centred development programmes by the Kenya and Tanzania governments. It requires a quantum of resources and discipline in the governments’ expenditure pattern. Kenya and Tanzania’s rise to lower-middle-income countries raises the bar for fellow East African Community (EAC) member states. I would argue that we should not be thinking of when Uganda, Rwanda, Burundi, and South Sudan will become middle-income countries, but how: How they effectively implement their development plans, and if they strategically identify the key priority sectors they can massively invest in to accelerate growth based on each country’s comparative advantage. Several factors contribute to attaining the middle-income status. Kenya and Tanzania’s long-term political stability provided a solid foundation for growth and development, providing the impetus for citizens to focus on and achieve individual...

Summary In its latest African Economic Outlook 2020 Supplement report, the African Development Bank (AfDB) says that despite countries embarking on a cautious reopening of economies to stem further damage, the impact of the pandemic is bound to be severe. Losses are expected to be carried over to 2021 because the projected recovery will only be partial with losses ranging from $27.6 billion (baseline) up to $47 billion (worst case) from the potential GDP of $2.76 trillion without the pandemic. Cumulatively, the pandemic could lead to GDP losses in 2020–21 of between $173.1 billion and $236.7 billion in current value terms. At mid-year, African economies, already battered by the Covid-19 pandemic are now facing a total GDP loss of at least $145.5 billion. With many countries recording an unprecedented surge in the number of infections, and the continent’s total cases surpassing the half million mark as per World Health Organisation data, Africa is forecast to suffer GDP losses of between $145.5 billion and $189.7 billion from the pre-Covid-19 estimated GDP of $2.59 trillion. In its latest African Economic Outlook 2020 Supplement report, the African Development Bank (AfDB) says that despite countries embarking on a cautious reopening of economies to stem further damage, the impact of the pandemic is bound to be severe. Losses are expected to be carried over to 2021 because the projected recovery will only be partial with losses ranging from $27.6 billion (baseline) up to $47 billion (worst case) from the potential GDP of $2.76 trillion without the...

Kenya Railways will in the next two weeks start the upgrade of the old track from Nakuru to Kisumu after dropping the use of external contractors. Philip Mainga, the Kenya Railways managing director, said that the refurbishment of the rail network, which is more than a century old, would start on August 1 and take eight months. The project marks a policy U-turn given that the State earlier ruled out reviving the line that had fallen into disrepair. Mr Mainga told the Business Daily that Kenya Railway engineers and National Youth Service will refurbish the line in a bid to cut the upgrade cost. Initially, Kenya had plans of tapping the Chinese for the upgrade. The 216km line will connect to the recently refurbished Sh3 billion Kisumu port, which will enable ferrying of cargo and passengers to Uganda, Rwanda, Burundi and Democratic Republic of Congo on ships via Lake Victoria. Kenya dropped its plan to extend the standard gauge railway (SGR) to Kisumu and later on to the Ugandan border after failing to secure a multi-billion shilling loan from China, which funded the first and second phases of the project. The old line, which had a thriving passenger service in the 1990s, will form the major supply route to deliver cargo to the neighbouring countries through the Kisumu port. Plans to upgrade it came after Uganda also announced that would start refurbishing the old rail network to boost bulk cargo transportation, after failing to secure $2.2 billion in Chinese funding...