Informality is pervasive across the developing world. It is estimated that a substantial share (30%-40%) of Africa’s regional trade is informal, and that four times as many cross border traders are likely to be operating outside the formal economy than within it. Cross-border trade can encourage entrepreneurial activity and regional trade integration, and create employment opportunities for vulnerable groups. In fact, a key feature of informal cross-border trade is that most traders are women, for whom such trade is often their main or even only source of income. UNCTAD’s research found that African cross-border traders, especially women, face various obstacles that hinder their growth opportunities. Obstacles at the border include poor facilities, cumbersome processes, weak governance, payment of undue fees, harassment, bribery, and corruption. Traders also face supply-side barriers, such as misinformation about customs procedures and regulations, lack of access to capital and assets, limited literacy and entrepreneurial skills, among others. Moreover, when crossing the border through unofficial paths, female traders can be subject to fines, confiscation of goods, and sexual assault. Among these obstacles, access to finance was identified as one of the most pressing challenges for traders. However, field findings also show that most women traders have a mobile phone, which can open up opportunities to enable them to become financially included. Innovative technologies like mobile-phone-enabled solutions can expand access to basic financial services. Mobile money, for example, enables individuals to store and transact money in digital form without the need of a bank account. Research has also...

Concerned by the need to curb the spread of the Coronavirus among long distance truck drivers in the region, plans are underway to deploy mobile lab clinics at border crossings. An emergency bilateral meeting on Wednesday between Kenya and Uganda’s Health and EAC Affairs ministries also resolved to increase Covid-19 testing points on the Northern Corridor, the most affected route in the region. Nine mobile laboratories were deployed to the EAC partner states as part of a $1.8 million donation by the Mobile Laboratory Project funded by the German government through Kfw. They are equipped to also test for Ebola and Marburg, kitted with personal protective equipment but lack the Polymerase Chain Reaction (PCR) and antibody testing machine that is reliably used to test Covid-19 in humans. “Following the increase of Covid-19 cases among truck drivers from Kenya transiting through Uganda, we have proposed four testing centres in Mombasa, Kemri-Nairobi, Eldoret and at Malaba-Uganda border,” said Dr Michael Katende, the acting head of Health in the EAC Secretariat in Arusha. “We do not have testing facilities at the Kenya-Uganda border. Therefore, the region is planning to deploy mobile laboratory kits at Malaba on the Kenya-Uganda border to carry out testing,” he said. Essential goods “The PCR have arrived in Dar es Salaam and plans are underway to fit each vehicle by Monday. Kenya will collect their labs once they are fitted with PCR,” said Dr Katende. “Rwanda, Tanzania, Uganda and Burundi have already received their mobile labs” said Dr Katende....

Ugandan President, Yoweri Museveni has revealed that he has been on private talks with fellow East African Heads of State, Dr John Magufuli and Kenya’s Uhuru Kenyatta on matters concerning the region in these pandemic times. “I had very long discussion with HE Uhuru Kenyatta and HE Paul Kagame regarding truck drivers. I also talked to HE John Magufuli on slightly different subject,” Tweeted the Ugandan Head of State through his Twitter account, without mentioning what exactly he was discussing with his Tanzanian counterpart. President Museveni explained that Presidents, Kagame, Kenyatta and He, have agreed to hatch common plan for truck drivers whose transit vehicles criss-cross the region delivering cargo goods; still whatever agreement or plan that the trio endorsed remains under tight folds for now. The issues of treatment of truck drivers from Tanzania and Kenya destined to Uganda and Rwanda has made headlines recently as host landlocked countries have been accused of deporting instead of treating truckers who test positive for Covid-19. In another development, the EAC Partner States have been urged to treat truck drivers and crew who test positive for COVID-19 in the host Partner State rather than deporting them to the country of origin as this will result in further spread of the disease. Through a 17-page document titled ‘EAC Administrative Guidelines to Facilitate Movement of Goods and Services During the COVID-19 Pandemic’ sent to Partner States, the Arusha-based Secretariat calls on Partner States to enforce mandatory screening or testing of truck drivers and crew...

Trucks carrying a variety of goods drive through an expansive site with tented warehouses, and before they could park hazmat-suited workers run to spray down the trucks.The cargo trucks from Tanzania entered Rwanda through Rusumo border post. Sanitation workers are making all necessary attempts to disinfect the vehicles. “This is an exercise done as part of the efforts to contain the spread of the new coronavirus,” one healthcare worker tells The New Times.After being disinfected, trucks proceed to be cleared by customs officers who clear goods, before they could be transhipped. Last week on Friday, Rwanda recorded 22 new coronavirus cases, the highest number the country had registered. The cases were linked to cross border drivers and their crew. As part of the plan to contain the virus, the government decided to take serious measures that included extending customs clearance to border posts. The Government has set up a new facility in Rusumo near the Rwanda-Tanzania border to handle all customs clearing processes as part of the move to contain the rising cases of the new coronavirus. Customs services were previously offered by customs offices in Kigali and other customs controlled areas like Magerwa, Dubai Ports Word (Kigali Logistics Platform) and Bollore Logistics. The past six days, new cases of COVID-19 recorded in Rwanda have been linked to truck drivers and their crew, who along transport corridors, interact with many communities. To manage the drivers, the Government last week devised several measures, part of which was a decision to extend...

One of the never-ending issues that complicate public perception about the Kenya Ports Authority (KPA) is the confusion between the institution and the Port of Mombasa. Actually, they say the easiest way to pull the rug from under a port’s success is failing to understand the various stakeholders and their role in making the Port of Mombasa a success. The world over, the distinct roles of the port community and the institution that runs the port are always interrelated but unique in terms of interests, goals and objectives. How each seaport defines their stakeholder groups, identifies movers and shakers, carries out two-way communications and incorporates input varies by port and by country, but there are some commonalities and melting points. On a normal day, an average of over 20,000 people enter and leave the port. Out of this massive human traffic, only 6,800 are KPA employees. The rest are drawn from the port ecosystem, comprising cargo interveners such as shipping agents, clearing and forwarding firms, government agencies, suppliers and primary customers, transporters, residents of maritime districts, security agents, northern corridor actors, and business partners. This number has remained constant despite the continued business expansion, courtesy of advancement in automation of key port services. The interaction level of all these people inside the port is high. Depending on one’s work location, an employee has high chances of closely interacting with our different partners either in person or exchange paperwork for business transaction. The fact that each unique partner demands a unique...

COVID-19 is a global pandemic that has killed over 200 000 people, more than the World War II as observed by the UN Secretary General Antonio Gueterres. The IMF has summed the pandemic’s economic effects as the Great Lockdown that far exceeds effects of the 1930s Great Depression. Domestic and international trade has stalled save for trade in pharmaceuticals, protective equipment and other life-saving essentials as countries have closed their borders in an effort to contain the spread of the coronavirus. Stalling operationalisation of the African Continental Free Trade Agreement may be one of the major casualties of Covid-19 as discussions to postpone AfCFTA to January 2021 gain momentum. The rationale behind stalling AfCFTA in the face of the marauding Covid-19 is grudgingly acceptable as it sadly means delaying the onset of Africa’s industrialisation. AfCFTA is premised on the success associated with trade liberalisation which is also linked to trade facilitation. While in the short term, Micro Small Medium Enterprises (MSMEs) and women businesses may not benefit from trade liberalisation, it is in the long term that the country experiences welfare gains. This will be evident in growth of MSMEs, increased competition, economies of scale, reduced trade barriers, total growth of the economy, employment creation and positive flows to the fiscus. Women-owned businesses and MSMEs account for almost 70 percent of informal cross border trade. Women have been disproportionately affected by Covid-19 due to the multiple roles they play in the economy as workers, traders, tax payers and consumers. As...

EAST African Community (EAC) partner states have been urged to treat Covid-19 truck drivers and crew in a specific host state instead of deporting them to their countries of origin.The call has been made as deporting them would result in further spread of the deadly disease. The EAC Secretariat has called on the states to enforce mandatory screening or testing of truck drivers and crew at border posts and undertake mobile monitoring during transit at selected inland points. In its 17-page document titled ‘EAC Administrative Guidelines to Facilitate Movement of Goods and Services During the Covid-19 Pandemic’ that has been sent to partner states, the Secretariat has urged member states to quarantine those with symptoms for 14 days under the supervision of the respective ministry responsible for health. The member countries are supposed to facilitate cross-border trade during the ongoing crisis occasioned by the novel coronavirus, adopt a multi-sectoral and coordinated approach, provide access at all designated points for entry and exit of goods, treat cross-border movement of trucks and cargo as essential services. The guidelines released by the Senior Public Relations Officer, Corporate Communications and Public Affairs Department at the EAC Secretariat, Mr Simon Owaka, the Secretariat says that among items that are supposed to be prioritised as essential goods to mitigate the Covid-19 pandemic are food, fuel, medicaments, agricultural products and inputs, security supplies, emergency and humanitarian relief goods. “To mitigate critical shortages of equipment and supplies, partner states have been called upon to promote local production of...

Kampala, Uganda | THE INDEPENDENT | President Yoweri Museveni has assented to the controversial Sugar Bill putting to an end the push and pull he had with parliament. The president had earlier on declined to assent the bill saying the absence of zoning in the sugar industry would kill the economy and directed Parliament to ensure that zoning is added in the proposed law. He also advised that small farmers with less than six acres should not be allowed into growing sugarcane but medium and large scale farmers should partner with the factories. But Committee chairperson Robert Kasule Ssebunya also said that they had no further amendments to make to the draft. In the same spirit, the Speaker of Parliament Rebecca Kadaga ruled without debate that the house considered the bill after careful scrutiny, enacted it and it was sent for assent adding that Parliament found no reason to interfere with the position previously taken. The parliament committee on trade had recommended that a 25 Kilometer radius be stipulated in the sugar bill as the minimum distance between millers and that the factories that fall within the radius be relocated at a cost met by the government that had earlier issued the license. The talk was also rife in the corridors of power of how some MPs had been bribed to pass the bill. In a press statement issued by Linda Nabusayi, the president’s press secretary, it was confirmed that president assented to the bill on Friday. On top of...

THE volume of cargo handled through Tanzania ports increased to 4.7 million tonnes in the quarter ending December last year compared with 4.2 million tonnes in the corresponding quarter 2018, with Dar es Salaam port accounting for 94.2 per cent. According to the Bank of Tanzania (BoT), consolidated zonal economic performance report for the quarter ending December shows that the increase in the volume of cargoes was dominantly handled in Dar es Salaam and Mtwara ports. The increase in volume of cargo handled reflected the government efforts to improve and expand the ports by modernizing and harmonising operations as well as improvement in infrastructure especially roads. The expansion of Dar es Salaam port under the Dar es Salaam Maritime Gateway Project (DMGP), aimed at improving the effectiveness and efficiency of the port for the benefit of public and private stakeholders. It involves two components, including improving the physical infrastructure and institutional strengthening and implementation assistance. The first phase involves deepening of berth number one to seven to enable large vessels to dock as opposed to the current situation. During the period under review, the Dar es Salaam port handled 4.4 million tonnes which is equivalent to 94.2 per cent compared to 3.9 million tonnes in the corresponding period 2018. The volume of cargo handled through Mtwara port increased by four folds on account of increase in shipment of cashew nuts to foreign markets, which is equivalent to 66.1 per cent increase. Cargo handled through the Mtwara port during the reference...

The standard gauge railway (SGR) line raked in sales of Sh13.5 billion in its second full year of operations, signalling that the mega project will take longer to break even. The revenues largely driven by a jump in income from freight services, which began charging commercial rates after the end of promotional tariffs in 2018 while increased use of first class tickets in the passenger service compensated for fewer journeys, official data show. The Kenya National Bureau of Statistics (KNBS) data indicate that SGR generated sales of Sh5.7 billion in 2018, reflecting a 136 percent rise in growth. The revenues were not enough to meet the operation costs, which are estimated at Sh1.5 billion a month or Sh18 billion a year. “The substantial increase in revenue from freight transport is partly explained by use of normal tariffs in 2019 compared to promotional tariffs in 2018,” said the KNBS. Cargo charges on the SGR line from Mombasa to Nairobi were increased by up to 79 percent from January last year in a bid to raise more revenue to pay the Chinese operator. But some importers said their transport costs shot up by nearly 50 percent when they used the rail due to extra fees, more time spent clearing goods at the Nairobi train depot and the need to send a truck to collect the goods from there. The data also show that China Communications Construction Company, the operator, increased cargo volumes 43.5 percent to ferry 4,159 tonnes in 2019 even as...