East African Community member states are working towards linking the regional electronic payment system to other payment solutions in Africa, to moderate trade around the continent following the launch of the African Continent Free Trade Area (AfCFTA). EAC central banks are now finding ways of transforming the system by linking it with other payment solutions in Africa to allow seamless transfer of cash across the continent at both retail and wholesale levels. Bank of Uganda’s deputy governor Dr Louis Kasekende said the move will help improve intra-Africa trade and support the growth of regional firms. At present, Kenya controls transactions in the EAPS, which allows citizens of member countries to make and receive payments in regional currencies — the Kenyan shilling, Ugandan shilling, Tanzanian shilling, Rwandan franc and Burundian franc. South Sudan is yet to join the system, which links the respective real time gross settlements (RTGS) systems of Kenya, Uganda, Tanzania, Rwanda and Burundi. The operationalisation of the EAPS was largely meant to stregnthen regional currency convertibility. Kenya’s Central Bank is working in partnership with other regional central banks to smoothen the acceptance of the EAC domestic currencies as a way of enhancing regional trade and lowering transaction costs. In other regional blocs such as the Common Market for Eastern and Southern Africa, execution of currency convertibility has been enhanced by grouping member states into clusters. These are the Southern African subgroup, Northern African subgroup, Central and Eastern African subgroup and the Indian Ocean subgroup. According to the Comesa...

Stakeholders in the logistics sector hope the third Global Logistics Convention, taking place on August 29-30 at the Kigali International Convention Centre, can spur countries to enhance rail and water transport, embrace technology and curb political friction, among others. Local and regional freight forwarders, truckers, sector experts, and others, believe the conference comes in handy as regards finding solutions to challenges in the sector. Abhishek Sharma, TradeMark Africa’s Senior Director for Transport told Sunday Times that the whole idea has been that the logistics industry needs to come together to discuss issues jointly and improve dialogue with governments in the region. Sharma said: “The main player that invests money in logistics infrastructure is the government. But the main user of the infrastructure is the industry; the freight forwarders, and others. It is very important that when we are planning logistics, there is a constant dialogue between the government and the logistics players.” By and large, however, Sharma said that even though challenges persist in the region’s logistics sector, in the last 10 years, the status of logistics in the region has improved significantly. “The [transit] time and the cost have come down dramatically along both the northern corridor and the central corridor. On the central corridor, for Rwanda, while the average speed of truck on transit was 7 kilometers an hour it has now improved to as much as 14 kilometers an hour, he said.” The World Bank’s Logistics Performance Index – a tool created to help countries identify the...

Kenya sent off its inaugural shipment of crude oil on Monday, becoming the first East African nation to join the ranks of petroleum-exporting countries. Though Kenya is still years away from building the infrastructure necessary to unlock its full commercial oil-producing potential, Monday's maiden shipment of more than 200,000 barrels revealed possible tensions over how the nation's crude wealth should be divided. In March, President Uhuru Kenyatta signed into law the Petroleum Act of 2019, which allocates 75 percent of state-designated oil profits to the central government, 20 percent to oil-producing counties, and five percent to local communities. But speaking at the sendoff ceremony for the maiden consignment in the port of Mombasa, Peter Emuria Lotethiro, Deputy Governor of Turkana County, invoked the metaphor of a goat to lay claim to what he sees as his region's share of the spoils. "According to our culture as the Turkana people, when we slaughter a goat for a visitor, the owner of the goat must be left with the limbs," said Lotethiro. "The people of Turkana have instructed me that in this oil deal, the limb should be ours." Salim Mvurya, governor of Kwale County, used the occasion to also signal displeasure. "We are speaking about the division of revenues from our minerals, and we're aware that the president signed into law the Mining Act, but that law hasn't really translated into revenues to the county and the people of Kenya," he said. President Kenyatta seized upon the governors' remarks to highlight...

The Tokyo International Conference on African Development (TICAD7), is set to be an important platform that bases on the advocacy of African’s Ownership and International community’s partnership. TICAD7 aims to revolve around three big agenda items; The economic transformation and improvements in business environment and institution through private investment and innovation, the promotion of resilient and sustainable society for human security and the peace and stability. With TICAD 7 just around the corner, set to kick off on 28th to 30th August this year in Yokohama, the embassy of Japan held a press tour visiting projects in Dar es Salaam, Moshi, and Arusha, that was set to convey the contents of the historical support Japan has to Tanzania. The amount of Official Development Assistance (ODA), in the 10 years to 2017 is approximately $ 1.4 billion, making Tanzania the largest beneficiary country in Sub-Saharan Africa, revealed The tour introduced three main areas of cooperation beginning with the support for the agricultural sector, which is very important for the industrial sector drive for Tanzania, especially in this 5th phase government, construction of road infrastructure symbolized by Mfugale ‘Tazara’ Flyover, and the grassroots support to education sector in Tanzania. History of friend ship between Japan and Tanzania Giving a brief history of these two countries, Ambassador Goto said that Japan maintains good diplomatic relations with Tanzania which was established since 1961 right after independence. “Due to close ties between our countries, there have been many high official visits between the two countries. Just...

EAST African Business Council (EABC) leaders paid a visit to President Yoweri Museveni of Uganda to engage him on measures to boost intra-regional trade in the EAC region, regional integration and private sector involvement in development activities. This is a good move by the council, which creates a platform for business titans in the region, to engage government leaders on matters pertaining to our wellbeing. Tak ing initiatives like that to push for measures that will drive regional integration process is commendable. The EABC leaders seem to be applying the wisdom from the old proverb of strik ing while the iron is hot as their initiative came at the most opportune time to tak e advantage of a strong political will by the regional leaders to enhance regional integration. The EAC Partner States with the foresightedness of the Heads of State are fully committed to the success of the regional integration agenda. The 19th Summit of the EAC Heads of State held in Kampala, Uganda on February this year deliberated on the status of the EAC integration and directed the Council of Ministers to tak e appropriate measures to fully implement the Single Customs Territory. The Heads of State summit also directed council of ministers to fast-track full implementation of the Common Market Protocol, speed up implementation of the Monetary Union, and make preparations for the drafting of the Constitution of the EAC Political Confederation as a transitional model to the Political Federation. The matters brought for the attention of...

In recent times, Kisumu has been a high-profile development arena receiving the highest possible government attention and resources specifically targeting the port upgrade. And this is the way it should be, not just for Kisumu but any part of Kenya that has significant value-adding economic opportunities. In the 1970s, Kisumu was a booming regional economic and logistics hub whose growth was frozen by bad regional politics and poor national economic governance. At the end of a busy railway line from Mombasa port, Kisumu was connected by an efficient cargo and passenger lake transport system to the Lake Victoria ports of Mwanza, Musoma, Bukoba and Port Bell. The entire logistics chain was under the East African the Railways and Harbours (EARH), which belonged to the old East African Community (EAC). When the EAC collapsed in 1977, Tanzania unilaterally closed all its borders with Kenya, thus severing all the land, air and lake transport links with Tanzania. By the time Tanzania opened the borders in 1984, it was already too late for Kisumu port which was by now a ghost port. Trade transactions with Port Bell were already minimal as a result of political chaos in Uganda in 1970s and early 1980s. The poor economic governance sweeping across Kenya in 1980/90s led to collapse of the lake region flagship cotton and sugar based agro-industries. Kicomi textile mill closed as most sugar factories started to wobble. Then the hyacinth weed came from nowhere in early 1990s and this choked out of existence the...

As Kenyan prepares to chair the Contact Group on Piracy off the Coast of Somalia (CGCPS) from January next year, it faces the tough task of ensuring maritime security as the stature of the blue economy grows. Securing sea transport in Kenya is particularly significant taking into account the fact that the Port of Mombasa is the gateway for the region’s imports. “Maritime security provides a platform for sustainable sea resource exploitation to guarantee wealth and job creation. Ninety per cent of trade transacted in Africa passes through the Indian Ocean with Kenyan transacting about 92 per cent of its trade through the Indian Ocean,” said a 2017 report by the International Peace Support Training Centre Nairobi, titled An Assessment of Maritime Insecurity in the Kenya Maritime Domain’. The study comprehensively spelt out the state of maritime insecurity along the coast line and the possible measures that need to be taken to address the menace. According to the report , Kenya’s Indian Ocean domain occupies an area measuring 245,320 Km2 made up of an Exclusive Economic Zones(EEZ) of 142,000 Km2 and an extended continental shelf of 103,320 Km2. Geographically, Kenya has an expansive coastal ocean line of 536 Km in length. “By 2010, maritime insecurity in eastern Africa had caused the global community equivalent of Sh1.8 trillion and the cost to Kenya alone was between Sh30 billion and 40 billion raising insurance cost with negative effects on regional economies,” added the report. Maritime consultant, Andrew Mwangura told Shipping that the...

Kenya’s dream to join the league of petroleum exporting countries became a reality as the first consignment of Kenyan crude oil left the Port of Mombasa on Monday. The consignment of 200,000 barrels of low sulphur crude from Kenya’s oil fields in Turkana County destined for Malaysia is worth Ksh.1.2 billion, a price much higher than what was initially projected. Kenya is using this initial export to test the global market before it embarks on large scale commercial production of its oil. The inaugural shipment of the crude oil makes Kenya the first Eastern Africa country to become an oil exporting nation. The Celsius Riga, the ship carrying the Kenyan crude oil left the Mombasa Port shortly after midday on Monday after it was flagged off by President Uhuru Kenyatta. President Kenyatta said it was a milestone moment for Kenya as it becomes the first East African country to become an oil exporter. “I am proud to say Kenya’s grand march to oil and gas production and export has begun. The flagging-off of this maiden consignment represents a new dawn for Kenya; and the beginning of an era of greater prosperity for all Kenyans,” President Kenyatta said. The President said the government is committed to achieve sustainable development through prudent use of the country’s resources. “We will ensure that Kenya’s natural resources are utilized in a manner that yields maximum dividends today but without compromising the interests of future generations,” said the President. Kenya’s Early Oil Pilot Scheme (EOPS) commenced...

Revenue collection’s role in customs could be changing to trade facilitation. What does that mean to the future of customs? This is a healthy trend. We need to rely more on domestic revenues rather than taxes from imports. Globally, the focus is on trade facilitation and border control. The days when URA would heavily rely on taxes collected from imports are slowly vanishing. This financial year, we expect to collect about 36 per cent of the total revenue from customs. And we are going to do this from 23 per cent of dutiable imports. So, yes we have to facilitate trade because that has a direct bearing on our economy and revenue generation. So as a country it is a healthy trend for us to be relying more and more on domestic taxes than on imported revenues. In developed economies like in Europe, customs contribute less than 2 per cent of the total revenues collected. And there is nothing wrong with that. So with the evolution of the role of customs aren’t you bothered that it will worsen the country’s tax base? Not at all. As more internal investments crops up and the economy continues to grow, there shouldn’t be any worry. Investments that are popping up now will sustain the future of Uganda by creating jobs. And once that happens many people will pay taxes. I am very comfortable about that and as a country we are on walking the path of Industrialisation. We are already manufacturing and exporting...

Bigirwa noted that research organizations continue releasing improved crop varieties and technologies, yet uptake by the majority of farmers remains low because of the markets constraint. AGRICULTURE The vice president of the Alliance for a Green Revolution in Africa (AGRA), Dr. George Bigirwa, has said there is need to help smallholder farmers in the region to access markets to reduce poverty levels in the East African Community (EAC) member states. Bigirwa noted that research organizations continue releasing improved crop varieties and technologies, yet uptake by the majority of farmers remains low because of the constraint of the market. The result is that they cannot adopt these new innovations and technologies as well as improved crop varieties for fear of wasting their efforts. “Technologies that will increase production have been developed and even shared among farmers, but we know that those technologies can only benefit smallholder farmers if there is a ready market. That is the main hindrance to increased production and farmers’ incomes,” Bigirwa said. He added that they have supported the development of improved technologies like seeds in Uganda and the harmonization processes within the EAC member states for such technologies to be accessed by the farmers Bigirwa, who visited the ministry of East African Community Affairs recently, said the member states should also play their role in helping their smallholder farmers to access bigger markets. He had led a team from Nairobi, to assess the impact of the Regional East African Community Trade in Staples Project (REACTS) II...