Senior Rwandan officials and their counterparts from the Democratic Republic of the Congo (RDC), on Thursday, May 27 agreed on a set of mechanisms to revive cross-border trade despite the Covid-19 outbreak. The senior officials met in Rubavu District at La Corniche One Stop Border Post a closed door meeting that lasted over five hours. The Rwanda delegation was made of Health Minister Dr. Daniel Ngamije, Trade and Industry Minister Soraya Hakuziyaremenye and Local Government Minister Prof. Anastase Shyaka among other officials. The DR Congo delegation comprised Innocent Bokele Walaka, the deputy minister for internal affairs, the deputy minister of health – Dr. Albert M’PETI Biyombo and the Governor of North Kivu Province, Carly Kasivita Nzanzu among others. In their remarks, officials from both sides noted that the bilateral meeting was made possible thanks to the political will by heads of state of the two countries. On the agenda, the senior officials discussed collaborations towards improving public health in the two countries. The purpose of the meeting, according to officials, was to formulate proposals for high-level political commitments meant to guide the strengthening of cross-border cooperation in surveillance of Covid-19 pandemic and its implication for cross-border trade in compliance with the specific measures taken by either country. The bilateral meeting was held after both countries closed their borders two months ago, as a measure to contain the spread of the virus. The decision, while it was important for public health, significantly affected informal cross-border traders who are dominated by women from both countries. The...

Since the first case of Covid-19 was reported in the Great Lakes region in mid-March 2020, small scale traders have been unable to cross borders as they have traditionally done either to buy or sell goods. The regional supply of primary agricultural commodities, most of which are traded under the Simplified Trade Regime (STR), especially foodstuffs from surplus to deficit areas has also been disrupted by the long delays at borders as truck drivers wait to be tested for Covid-19 before crossing. To support cross border trade, which is the lifeline of a huge community in the region, the Great Lakes Trade Facilitation Project (GLTFP) engaged stakeholders to come up with innovative means of trading across the borders of the three countries covered by the project. These innovations are meant to ease the movement of goods and avoid food shortages. The project region covers eastern DR Congo bordering western Rwanda and Uganda. Subsequently, a new concept of bulk-buying has been developed whereby goods are procured in large consignments in collaboration with suppliers across the borders. This ensures there is no mass movement of traders crossing the borders. Led by the Cross-Border Traders’ Associations (CBTA),  this concept has helped traders minimize the risk of COVID- 19 spread and allow safe trade. It consists of packaging similar goods from either side of the borders and moving them across the border using joint means of transport. This limits the movement of people to a strict minimum. Only the driver conveys the goods accompanied...

A JOINT East African Community (EAC) response against the Covid-19 pandemic is being prepared by regional civil society and private sector organisations, to facilitate life returning back to normal. Delegates of the apex bodies of the private sector and civil society organisations that met virtually on Friday discussed the agenda for the Regional Dialogue Committee (RDC) meeting that will prepare possible interventions of the RDC to suit the needs of the region and developed a joint work plan for the Incubator for Integration and Development in East Africa (IIDEA). The IIDEA will stretch from June 2020 to June 2021 and the meeting agreed on a joint statement for the Regional Apex Bodies on Covid-19 impacts and responses in the region. The half day meeting was attended by representatives of the East African Civil Society Organisations Forum (EACSOF), the East Africa Law Society (EALS), the East African Local Government Association (EALGA) and the East African Health Platform (EAHP). It came as countries are forging a way forward in post Covid-19, with some, including Tanzania, having opened up their skies and have completed preparations to get back tourism as life has gotten to normal with most empty beds at centres that were meant for patients suffering from Covid-19. The members discussed a joint Covid-19 response to mitigate the effects that have been caused by the virus, impacting the entire world, in- cluding the EAC region. Ms Generose Minani, the Principal Gender and Community Development Officer for EAC, commended the apex bodies for...

As more details emerge on the proposed US-Kenya Free Trade Agreement, Kendall Keough and Sheng Lu from the University of Delaware look at various industry views on the pact – and why apparel-specific provisions are the focal point of the debate. In March this year, the Trump administration notified Congress of its plans to negotiate a free trade agreement (FTA) with Kenya, aiming to both deepen the economic ties between the two countries and complement Africa’s regional economic integration efforts. Further details around the specific negotiating objectives of the proposed US-Kenya Free Trade Agreement were released by the Office of the US Trade Representative (USTR) on 22 May. Overall, the pact intends to “build on the objectives of the African Growth and Opportunity Act (AGOA) and serve as an enduring foundation to expand US-Africa trade and investment across the continent.” It could also become a model trade agreement between the United States and sub-Saharan Africa countries and eventually replace the AGOA a trade preference programme currently set to expire in 2025. With regards to the textiles and apparel sector, USTR says it will: “Secure duty-free access for US textile and apparel products and seek to improve competitive opportunities for exports of US textile and apparel products while taking into account US import sensitivities.” The proposed agreement will also: “Establish origin procedures that streamline the certification and verification of rules of origin and that promote strong enforcement, including with respect to textiles.” The same or very similar language is used in...

For quite long, Kenya has been basking in the glory and pleasures that come with being a hegemon within the East African region. It is now conventional wisdom that Kenya bestrides the East African region like a colossus. It dominates business, technology, commerce and communications, its economy is the most successful in the region, and its diplomatic tact and influence is second to none. For quite long, Kenya has been basking in the glory and pleasures that come with being a hegemon within the East African region. Acting as a critical entrance route to the East African region - and enjoying relative peace in the region as compared to her neighbours ­­­­­­­­­­­­­­- Kenya has attracted bilateral and multilateral trade and investments, thereby boosting her outlook as an affluent diplomatic and economic powerhouse. However, this may change if the country does not rethink its diplomatic priorities. The country now finds itself in a train wreck with some of her neighbours, a make or break situation that could shift her diplomatic influence in the entire horn of Africa region for good. Coming at a time when there is a quest for hegemonic supremacy between Kenya and Ethiopia, the country appears to be making more foes than friends within the region, a phenomenon that could have dire repercussions on the country’s regional influence. Amidst the fight against coronavirus, Tanzania announced a ban on Kenya truck drivers entering their country. The decision was informed by the allegation by Tanzanian authorities that Kenyans are contributing...

Dar es Salaam — The Southern African Development Community (Sadc) is gearing up for a full reopening of cross-border trading. This comes after experts in the region expressed satisfaction over the precautionary measures countries within the 16-member bloc have taken to prevent further spread of the novel coronavirus which causes Covid-19. The move comes after about 50 days when the body adopted its regional guidelines for harmonising and facilitating movement of critical goods and services across the region during the Covid-19 pandemic. The guidelines, adopted after a meeting of the Sadc Council of Ministers on April 6, 2020, aimed at limiting the spread of Covid-19 through transport across borders; facilitating the implementation of transport related national Covid-19 measures in cross-border transportation and facilitating flow of essential goods such as fuel, food and medicines. The guidelines also sought to limit unnecessary and mass movement of passengers across borders and harmonising and coordinating transport-related national Covid-19 policies, regulations and response measures. But with some countries - including Tanzania - making some important milestones in their fight against Covid-19, a virtual meeting of experts met yesterday to draw the roadmap for a meeting of Sadc Council of Ministers today (Thursday, May 28) resolved that some things must now change. "This meeting is being held in preparation for a meeting for the Sadc Council of Ministers. Key on the agenda that we will be presenting to the Sadc Council of Ministers is that some of the issues that we knew about Covid-19 must now...

Delegations from Rwanda and Democratic Republic of Congo (DRC) have met to enhance trans-border cooperation in order to strengthen #Covid-19 surveillance and trade between the two countries. Officials from both countries met this Thursday in Rubavu district in Western Rwanda, making the first face-to-face meeting since the coronavirus pandemic outbreak in Rwanda, March 13. Both parties met to discuss and agree on concrete measures to control coronavirus spread especially with their cross border trade activities. The Rwanda team was led by Rwanda’s minister of Health, Dr Daniel Ngamije and consisted of ministers of local government, trade and industry, Professor Anastase Shyaka and Soraya M. Hakuziyaremye respectively. Ngamije said that the objective of the meeting is for both countries to share common understanding on fighting the Covid-19 pandemic since both share a common border and cross border trade must continue across all sides. “Trade between both countries is needed but during this coronavirus pandemic we have to put in place measures, like compulsory Covid-19 testing so that we can control the virus spread across  the borders,” Ngamije said. The discussion with DRC comes just after Rwanda and Tanzania have also agreed on a common ground to test and control coronavirus spread which is currently significant among cross border movements especially with truck drivers. The DRC team, led by Internal minister, Innocent Bakole Walaka, said that his country has been equally affected by the coronavirus crisis which called for closure of border activities and putting in place strict measures. “Even with these...

Transit goods transports have raised concerns over a directive that cargo destined for neighboring countries be ferried from the Port of Mombasa to the Naivasha Inland Container Depot via the Standard Gauge Railway.They noted that they will adversely affect livelihoods of thousands of Kenyans when it is effected next month. The government says the decision would help reduce the spread of Covid-19 as well as improve efficiency at the Port of Mombasa. But the directive has attracted debate with coastal leaders and those involved in the transport business raising concerns about the decision rendering thousands of Kenyans jobless. Kenya Transporters Association Chief Executive Officer Dennis Ombok says importers should be allowed to choose the mode of transport for their cargo.Early this month, Transport CS James Macharia, accompanied by KPA officials launched the Naivasha Inland Container Depot that will mainly process cargo destined for neighboring countries for transporters to pick it for onward delivery. Source: KBC

Plans by the government to transport all transit cargo from the Port of Mombasa to Naivasha Inland Container Depot (ICD) through the Standard Gauge Railway (SGR) effective June 1, have elicited protest from road transporters. They have termed the move as a deliberate plan by the government to “kill” the economy of Mombasa. Last Friday, the government directed that all transit cargo be moved and cleared at the Naivasha ICD for delivery to Uganda, Rwanda and South Sudan. Kenya Transporters Association (KTA) chief executive Dennis Ombok accused the government of overlooking them during decision making on cargo transport matters. The government said in a statement on Friday 22, that some of the cargo will be moved on the old metre-gauge railway directly to Tororo in eastern Uganda or Kampala, while fuel will be transported by pipeline to Kisumu, Kenya and thereafter by water through Lake Victoria to Portbell in Luzira, Kampala or Jinja. Ombok dismissed the government’s claims that transporting cargo by railway is cheaper than using trucks. He made the remarks during a joint briefing convened by Muslim for Human Rights (Muhuri) in collaboration with Okoa Mombasa lobby group. Hidden costs “The government does not want to tell the public the hidden costs of using the SGR to ferry containers. If Uganda says its comfortable with cargo going by road, why is the government forcing this mandatory cargo transportation through SGR?” posed Ombok. Now, the Kenya Long Distance Truck Drivers Association (KLDTDA) has threatened to mobilise its members to...

The domino effect of the coronavirus pandemic will plunge many economies into recession and means the African Continental Free Trade Agreement (AfCFTA) is now needed more than ever to ensure that member states are trading with each other and supporting one another at this time, according to Banji Fehintola, senior director and head of treasury at the Africa Finance Corporation (AFC). He says South Africa has a very important part to play. It is the most industrialised and diversified economy on the continent and is one of the only financial markets that is sound enough to be tapped for infrastructure projects. “Trade finance and infrastructure finance are incredibly important in the creation of growth across Africa. However, since the global financial crisis of 2008/2009, some global banks have retreated from emerging markets, including Africa. These means credit capacity from global banks for African Financial Institutions (FI) has reduced considerably, constraining their ability to serve clients’ needs,” he tells Fin24. No amount of policy change or cuts in taxes will truly make Africa competitive when the physical hinderances are ignored, according to Fehintola. He says the AfCFTA is not just a dream, but there is a long way still go before it becomes a tangible reality. The next phase comprises a new set of challenges as the ratifying countries commence implementing the AfCFTA with the goal of truly unlocking Africa’s potential through the free movement of goods, services and people. He points out that the elimination of tariff and nontariff barriers...