Plant and animal products traded across the world are subjected to global standards under what is known as Sanitary and Phytosanitary (SPS) measures set by the World Trade Organisation (WTO), a body that deals with global rules of trade. These measures are generally meant to protect human, animal and plant health from risks arising from contaminants, toxins, additives, or disease organisms. They are also meant to protect animal or plant life from pests, diseases, and disease-causing organisms. In essence, if a Rwandan trader exports fruits to the European market or any other market, the products are usually subject to inspection to check if they live up to those standards. In other markets, the products will be subject to testing of packaging and labeling standards, processing methods and certification. In many cases, countries with stronger SPS standards tend to trade less with countries that have weaker SPS standards. More developed nations normally have stronger standards and demand a lot from less developed countries and less developed countries end up being victims. For instance, between 1995 and 2017, developed countries raised 242 SPS trade concerns as opposed to only 7 concerns raised by least developed countries. 226 measures were maintained as opposed to only 1 measure, according to WTO. Rwanda has particularly experienced these issues as exporters of food and other agricultural products have had their products rejected at the borders of the European Union country, the country's largest export destination of horticulture products. According to data from the Ministry of Agriculture,...

The first berth of the Lamu Port is now 98 per cent complete and is set to be unveiled next month. The construction has been ongoing for three years. Stakeholders are optimistic that it will have a socio-economic transformation of the region through trade. It will open up the corridor counties to the rest of the country and neighbouring states. At least 33 shipping companies have shown interest and their representatives have either toured the site or will do so before the opening date. Lamu Port will be actively involved in the transhipment business as its depth can accommodate big ships from which cargo can be loaded to smaller ships bound for Mombasa, according to Abdullahi Samatar, Kenya Ports Authority general manager in charge of Infrastructure development. Samatar dismisses fears that Lamu will eclipse the Kilindini. Instead, it will complement the Mombasa Port and ease container congestion. “Show me a country that has developed with only one port,” he said, adding that for Kenya to realise its potential as a logistics hub, it needs more than one port. The Sh2 trillion LAPSSET project has attracted diplomats, foreign and local investors. The port will transform the fortunes of the country’s Northern Corridor. Some of the counties that will immediately benefit are the previously marginalised Lamu, Isiolo, Garissa, Marsabit and Turkana. LAPSSET director-general Silvester Kasuku told KNA last Friday that new employment and trade opportunities will be created, raising the status of Kenya asmiddle-income country. “The ongoing and planned north-bound road projects connecting the Northern Corridor to...

At least 33 shipping companies are expected to tour the Lamu port in the coming month, as Kenya prepares to commission the operations of its first berth in October. President Uhuru Kenyatta is expected to officially launch the port’s operations later in October when the first ship is anticipated to make call at the port. Kenya is said to be in talks with possible operators, including South African logistics giant Transnet SOC. “The first berth of the port is complete. We are now in the process of acquiring land for a 500-metre-wide corridor that will enable construction of the crude oil pipeline and standard gauge railway. We want to secure the entire corridor for business,” said Lapsset corporate affairs manager Benson Thuita. COMPETITION The tour by the shipping lines is part of a Kenya Ports Authority-driven charm offensive to market and position the port as competitive among its regional peers, Djibouti and Port Sudan. Source: The East African

Any traveler would always find stuck vehicles on the road. They would be carrying merchandise, livestock (cows, sheep, goats, and pigs), milk and agricultural produces, stuck in huge potholes for hours and days. Other vehicles would break down or fail to maneuver slippery sections causing enormous delays for the goods and services. It took travelers, traders, transporters, and motorists plying the route quite several hours to reach the main highways, towns, and markets respectively. And roadside businesses had deserted the route due to dust. In a bid to redeem the road users and residents of the plight, the Government through the Uganda National Roads Authority (UNRA) apportioned sh360b to tarmac the road to interconnect the four districts. In 2016, UNRA contracted Energoprojekt and China Railway No.3 Engineering Group Co. Ltd (CR3) to construct the road. Energoprojekt constructed 64km Mpigi to Kanoni in Gomba district and CR3 took up the 110km-section from Kanoni through Sembabule up to Villa Maria in Masaka. Mpigi-Kanoni section is complete while Kanoni-Sembabule-Villa Maria is nearly complete with a few sections left (especially within Sembabule town and Villa Maria). However, the once poor and unlikable road/route has become a major highway and transformed lives in the four districts in various ways including easing transportation, stimulating economic activities for development as detailed below. Travel time and space Even when petrol prices went up and pushed transport fares up countrywide, the transporters and road users plying the highway appreciate the swiftness and convenience on the road. According to Leonard...

Africa's largest trading bloc plans to promote intra-regional trade through innovation, an official said on Monday. Kipyego Cheluget, assistant secretary-general, Common Market for Eastern and Southern Africa (COMESA) told a regional trade forum in Nairobi that innovation creates technological and comparative advantage, which in turn drives trade. "Regions with robust innovation activities have higher productivity, economic growth and job creation and have more government revenues available to support spending in core public priorities such as health, education and infrastructure," Cheluget said during the opening ceremony of the sixth Comesa annual research forum. The key objective of the five-day event was to bring together academia, think tanks, government officials and the private sector from the 21 member states to discuss emerging topical issues in regional integration. Cheluget said that members of the economic bloc recognize the importance of science, technology and innovation in socio-economic and cultural development and have agreed to cooperate in the various fields. Chris Kiptoo, principal secretary of Kenya's Ministry of Industry, Trade and Cooperatives said that a more integrated region will enhance economic growth and poverty reduction in eastern and southern Africa. Kiptoo said that the best way to achieve productivity growth is through greater innovation, which can be defined as the development of new or improved products, services and processes. He noted that the region's average high growth rate has not been accompanied by high job growth rates in the face of a rapidly growing population. Source: Xinhau

Japan and the African Development Bank on Friday announced a joint target of $3.5 billion under the Enhanced Private Sector Assistance for Africa initiative (EPSA4), during the 7th Tokyo International Conference on African Development (TICAD 7). Both Japan and the Bank have set a target of $1.75 billion each, from 2020-2022, to enhance the fourth phase of EPSA to spur private-sector-led sustainable and inclusive growth in Africa. “Building on the successful achievements so far, Japan and the Bank have decided to upgrade EPSA in both quality and quantity to meet financial needs for infrastructure development as well as for the private sector development in Africa,” Japan’s State Minister of Finance,” Keisuke Suzuki said at the EPSA4 launch ceremony held in Yokohama and attended by government officials and a high-level delegation from the Bank as well as representations of the business community. “I wish that the new EPSA initiative will lead to business, investment promotion, and job creation in Africa,” Suzuki noted. Electricity, transportation, and health will be key priorities under EPSA4. Projects and programs for the 3 key priorities will be formulated and implemented in line with the G20 Principles for Quality Infrastructure Investment and G20 Shared Understanding on the Importance of UHC Financing in Developing Countries. African countries will also be provided with support to improve and create conducive business environments to attract private investments. “Today marks another day to celebrate the strong and impactful partnership between Japan and the African Development Bank. The African Development Bank and the...

The African Continental Free Trade Area (AfCFTA) came into effect last May 30, with 54 states signing the agreement at the time of writing. This pan-African agreement was made in the hopes of bolstering local economies by breaking down existing trade barriers and reducing tariffs for regional exchange. Nigeria has just signed onto this agreement — a monumental feat considering that the country represents Africa’s largest economy. About the agreement The AfCFTA is poised to be the world’s largest trading bloc. This bloc will economically join over a billion people, with experts hoping that this will speed up modernisation efforts across the continent. Africa’s labour force has been steadily growing, and with the businesses promoted by the AfCTA creating new jobs, there will be further growth. The beginnings of the AfCFTA started in 2012, when leaders at the African Union summit began grappling with the idea of free trade across Africa. Negotiations officially began during the 2015 summit, and a total of ten negotiating sessions were held before reaching the final agreement in 2018. Experts estimate that this agreement will kick-start Africa’s growth on its way to become a huge economic player. Possible developments include free movement of people across the continent’s borders and the adoption of a single currency. What does this mean for intra-African business? Africa News reports that trade between African countries is the continent’s weak spot, citing lack of infrastructure and investment. They estimate that about $300 billion will be needed by 2020 in order to build...

African political and business leaders at the World Economic Forum in Cape Town will be urged to follow through with commitments made to regional integration, trade experts say. As the African Continental Free Trade Agreement (AfCFTA) enters the implementation phase, WEF Africa can jumpstart discussions on the process of dismantling barriers to regional trade, says co-chair Arancha González Laya. “I hope to shine a spotlight on integration of the African market, because it is very important to keep the momentum that has been generated with the launch of the African Continental Free Trade Agreement,” says González. “What’s important is that the negotiators don’t drop the pen the day the agreement has been signed. The most important phase starts now and it’s called implementation.” The road less travelled African countries have traditionally sold raw materials to global powers rather than trade among themselves. As the only continent in the world trading more externally that internally, Africa is missing out, González says. “Essentially Africa is to a large extent trading outside the continent in lower value-added raw materials and commodities and it’s foregoing the opportunity to trade more value-added [products] within the African continent. We know that what Africa trades within its borders has more value-added than what it trades outside its borders. So it’s important that Africa finds a way to better integrate its markets, to provide opportunities for all those entrepreneurs that can build the regional value chain.” Within the new economic zone, 90% of tariffs would be scrapped within...

Kenyan cut flowers could be locked out of Australian markets as Canberra moves to implement new biosecurity measures. The new regulations coming into force on September 1 also cover Colombia and Ecuador, the other important cut flower exporters to Australia, who have complied. For Kenya, which largely exports cut flowers to Europe, the Australia is critical for the growth of the sector as it offers an alternative market. STRINGENT REGULATIONS But Nairobi has unsuccessfully tried to negotiate for an extension of the deadline to comply with the biosecurity measures. The compliance date has been moved several times since March last year, with the latest being July 1, 2019 before it was moved to September 1. The Australian Department of Agriculture has said there will be no further extension. Now, there are fears among producers and exporters that the European Union may borrow a leaf from Australia. Source: The East Africa

Dar es Salaam. Days are numbered for availability of counterfeit products in the market, as the Tanzania Revenue Authority (TRA) prepares to roll out the remaining phases of the Electronic Tax Stamps (ETS) system. The first phase of the system covered wines, spirits and cigarettes starting last January. The system was fully rolled out for all alcoholic drinks, cigarettes and bottled water on June 15. The government embarked on Phase Two of ETS on August 1, 2019. The TRA commissioner general, Dr Edwin Mhede, announced through a newspaper advertisement recently that, in line with Regulation 29 of the 2018 ETS legislation, the second phase of the project would be rolled out on sweetened or flavoured waters and other non-alcoholic beverages - with the exclusion of vegetable juices, which are under tariff heading 20.09, according to the tariff classifications. For his part, the TRA Taxpayer Education director, Mr Richard Kayombo, said at the weekend that the exercise was going hand in hand with a system which allows companies and individuals to verify the authenticity of tax stamps on various products by using their smartphones. The verification can also be conducted using barcodes. “Counterfeits are a challenge to members of the business community and to the government alike. We lose revenues through counterfeits and this is one of the benefits that will come with the ETS project,” he said. He was speaking on the sidelines of a breakfast meeting organised by the Confederation for Tanzania Industries (CTI). “Through the barcode and the...