East African countries have borrowed nearly $2.3 billion new loans in less than three months since reporting the first Covid-19 positive case, adding to the region’s mounting debts at a time of shrinking tax revenue. The biggest chunk of the loans, taken to fund the region’s response to the Covid-19 pandemic and cushion the economies against disruptions caused by the virus, have come mainly from the International Monetary Fund (IMF). Kenya has borrowed the most out of the six East African Community (EAC) members, having signed an estimated $1.5 billion since reporting the first Covid-19 positive case on March 13. Uganda has added $540.2 million to its debt load, while Rwanda has borrowed $223.65 million. President John Magufuli has called for cancellation of Tanzania’s foreign debts, but Dar es Salaam together with Burundi and South Sudan is yet to announce any new loans during this period. The estimated $2.26 billion new debt accumulated in less than three months adds to the more than $110 billion loans that EAC countries were holding at the onset of the pandemic. “The impact of this new debt on the economies is going to be huge. Export earnings and diaspora remittances are in trouble. Local currencies are going to be under a lot of pressure and when they depreciate then our debts, which are largely denominated in foreign currency become very expensive. That is a big issue,” said Nikhil Hira, a director and tax consultant at Kenya-based law firm, Bowmans. The EAC agreement on debt...

The UN Economic Commission for Africa is helping to bring unique African products and their promoters to the platform in a practical COVID-19 response move Imagine using one second to sell three thousand (3000) bags of a coffee produce which lay fallow hitherto in storehouses in Rwanda for months due to freighting stand-stills caused by the COVID-19 global lockdown! This is what happened on 14 May 2020 during a livestream by coordinated by the Alibaba Business Group to position small-scale world brands on the Electronic World Trade Platform (eWTP), a the six-year-old initiative which facilitates business-to-consumer (B2C) sales. The UN Economic Commission for Africa is helping to bring unique African products and their promoters to the platform in a practical COVID-19 response move. The sale was made by the Rwandan brand known as Gorilla's Coffee whose CEO, Mr. David Ngarabe, rejoiced at the feat following months of slack business as the COVID-19 lockdowns ruptured the supply chains especially to cafés and hotels. The cash-in is explained in terms of the wide reach to customers especially in China via the eWTP whose huge demand, in terms of economies of scale, would now lower overall freighting costs for the supplies. Ms. Vera Songwe, Under-Secretary-General of United Nations and Executive Secretary of the Economic Commission for Africa (ECA), who addressed participants of the livestream from Addis Ababa, said the Commission was taking action to getting many more small brands from Africa with distinct products to access the platform and make sales during and after the current health crisis....

Horticulture produce is expected to drop in the next month as the sector reels from the effects of heavy rains and diseases that have slowed down production amid rising orders in the European market. Fresh Produce Consortium (FPC) chief executive Ojepat Okesegere anticipates production to fall by between 20 and 30 percent because of heavy rains that came with pests and diseases. Europe, which is Kenya’s main market, has been easing restrictions as it opens up the economy following months of lockdown to curb the spread of coronavirus. “The shortage is as a result of a number of things that include too much rain, transitioning of the crops from the old to the new one and a lack of motivation as farmers relaxed when their orders were cancelled during the Covid-19 lockdowns,” he said. Mr Okesegere said the new crop is expected to get to the market after a month and would boost Kenya’s export market as the industry slowly recovers from the shocks. The decline in volumes comes at a time the number of international airlines at the Jomo Kenyatta International Airport (JKIA) have gone up following high demand for freight services for horticulture produce. The latest entrants are British Airways and Singapore Airlines which had stopped plying the route following restrictions put in place and low demand for horticultural produce in Europe after many orders were cancelled. Airlines have also increased frequencies with Ethiopian Airlines flying daily from JKIA, KLM three times a week with KQ  also making a...

Kenya Ports Authority (KPA) has extended the free storage period for importers and exporters in view of the slow truck turn-around occasioned by the impact of the  Covid-19. “Kenya Ports Authority wishes to announce to the general public of extension of free storage period to its customers. This is in line with our continuous and deliberate efforts of cushioning our customers on effects of the Coronavirus,” acting managing director Rashid Salim said in a statement. He said the virus has impacted the whole transport logistics chain. The approved new free storage period is effective May 18 runs for three months, KPA notes. Free storage for domestic export containers has been increased from nine to 15 days. Transit import containers will now enjoy 14 days of free storage at the port and the Inland Container Depot-Nairobi(ICDN), from the previous nine. Transit import containers at the Naivasha ICD will have 30 days free period. All transit export containers are now being stored for 20 days free of any charges from the previous 15 days. Storage for domestic import containers, however, remain unchanged where cargoes are stored free for four days, before starting to attract charges. Importers and exporters incur charges of between $30 (Sh 3,212) and $90 (Sh9,636) per day for cargo that has stayed beyond the free storage period and more than 24 days, depending on the size of the container. Containers released by KRA and not collected after 24 hours are charged $100 (Sh10,707)and $200 (Sh21,415) per day for 20ft and 40ft respectively. “Please note that...

More laboratories are to be set up at Kenya-Tanzania border posts to ramp up testing for the coronavirus and facilitate faster movement of cargo into and out of the country amid complaints by truck drivers and businesses about losses related to delayed results. Health Chief Administrative Secretary Rashid Aman said Monday that testing centres will be opened in Migori town or Isebania, Taita Taveta and Lunga Lunga in addition to the Namanga mobile laboratory that is to be installed soon. The Ministry of Health confirmed 25 new cases of the virus, bringing the national total to 912. At the moment, samples collected at the border points are sent to the 16 laboratories spread across the country, with most of them in Nairobi and Mombasa. Truck drivers have complained about being forced to wait for over three days for the tests results causing snarl-ups at the border points and goods to go bad. “The problem we currently have is along the Tanzanian border at Isebania, Namanga, and Taita Taveta where we do not yet have functional laboratories that can do the test and turn around the results very quickly," said Dr Aman. “Waiting for four days to get results is not an acceptable turnaround time, I think we will have to do much better in turning around the results as fast as possible.” He noted that the country has enough capacity to test truckers at the border posts with Uganda, with laboratories in Busia and Kisumu. On Monday's test results indicated...

Cargo freighters in East Africa have applauded the move by the Kenya Ports Authority (KPA) to consider their plea to have the free storage period extended. The Federation of East African Freight Forwarders Associations (FEAFFA) had written to KPA to have the number of days increased to 14 days for domestic cargo and 21 days for transit cargo. FEAFFA, the umbrella body of the clearing agents in the East Africa, also made a similar plea to the Tanzania Ports Authority (TPA). Domestic export containers will enjoy a free storage period of 15 days compared to earlier 9 days. Transit import containers at the port and Inland Container Depot in Embakasi will enjoy a 14 days free storage period from 9 days with transit import container in Naivasha enjoying 30 days. Transit export container will now enjoy a 20 days free storage period from the current 15 days, KPA announced in a public notice. These changes that takes effect immediately for the next 90 days, however, did not extend the domestic import cargo as requested by the freighters, which remains at 4 days. “We welcome the KPA move. It will now enable our members to carry out their business operations smoothly. However, we will continue to engage KPA based on how the situation unfolds to have similar concession extended on domestic imports as well,” Mr. Fred Seka, FEAFFA president said, adding that they will also continue engaging TPA to initiate a similar move. East African Community Partner States, the World Health...

Rwanda and Tanzania are set to reach an agreement on the way forward on the issue of cross-border trucks whose movement has been hampered by measures to curb the spread of New Coronavirus.  On Tuesday President Paul Kagame, the sitting Chairman of the East African Community (EAC), chaired a virtual Consultative Meeting with Heads of State of Uganda, Kenya and South Sudan on the regional response to COVID-19 during which the countries agreed to handle cross-border transmission together.  Though the meeting was not attended by Tanzanian President John Pombe Magufuli, Rwanda and Tanzania have been working to address the border stalemate that resulted from new measures imposed by Rwanda to minimise cross-border infections which are attributed to truck drivers and their assistants.  The measures would see driver’s handover the trucks to their Rwandan counterparts at border points who would then ferry the goods to their final destination. The move was met by resistance as some drivers remained adamant to handover their vehicles.  Videos of Tanzanian drivers protesting in Benaco, blocking Rwandan drivers from proceeding to Dar es Salaam until Rwanda allows them to enter circulated on social media but Rwanda maintained the measure which has since seen the decline in cross-border transmission of COVID-19. The Minister of Foreign Affairs and Cooperation Dr. Vincent Biruta told KT Press on Thursday that Tanzania and Rwanda would arrive on an agreement on Friday. He however said the issue on Kagitumba One Stop Border Post has been resolved and trucks from Kenya have begun...

Joseph Ebalo, the Amuru district Internal Security Officer (ISO) says currently there are over 600 trucks parked inside and outside the designated parking yard. He says the genesis of the truck congestion is from South Sudan because of  inadequate deployment of personnel controlling the customs and immigration offices on their side. Michael Lakony, Amuru district LCV chairperson says some of the petroleum truck drivers have even resorted to siphoning fuel and sell to local dealers which increases the risk of a fire outbreak. According to Lakony, some of the commercial sex workers within the town council have also resorted to renting houses where they take the truck drivers as they wait for clearance from the customs and immigration offices. Lakony observes that this is also increasing the risk of spreading of the coronavirus (COVID-19) in case any of the drivers tests positive. Lakony now wants a police fire fighting truck deployed at the town council in case of any outbreak as well as security increased at the town council so that the girls and drivers are arrested to avert possible spread of the coronavirus and also other sexually transmitted infections. Ezekiel Emitu, the Aswa region police commander says they contacted the director fire department at the police headquarters so that a fire fighter truck is deployed in the area. Richard Omony, a resident and a vendor at Elegu border market says they are living in fear that another fire outbreak could occur given the number of truck drivers transporting fuel....



Global trade is predicted to fall by a record 27% in the second quarter of 2020, according to the United Nations Conference on Trade and Development (UNCTAD), an organisation that tracks trade flows. This comes after the coronavirus pandemic distorted the supply and demand for products across the world leading to a severe decline in world trade. There has also been a slump in the export of cars, machine parts, and oil, among other global exports. Almost every category of goods is expected to suffer a fall in trade over the coming months, adding to a 3% decline in the first quarter of the year. According to UNCTAD, the report revealed a huge shock to the global economy from the Covid-19 pandemic. China was the first country to report a decline in trade ahead of a lockdown put in place by the authorities in Beijing in February. The country’s economy shrunk by 6.8% percent in the first quarter of this year. However, China also reported that her trade and Africa plummeted by around 14 per cent estimated at $41 billion in the first three months of 2020 compared to the same period in 2019, according to official figures released by China’s General Administration of Customs. The rest of the developed world followed in March when similar lockdowns were announced. Last week, the International Monetary Fund (IMF) warned that a previous forecast for an unprecedented decline in global GDP growth of 3% this year, the worst since the 1930s depression era, was looking optimistic. The...