Rwanda is looking for $1.3 billion to fund the construction of the proposed Isaka-Kigali standard gauge railway that links Rwanda and Tanzania, a senior Rwandan official said Tuesday. The figure is higher than $1.2 billion revealed during the launch of the 400 km railway line on January 20, 2018 in Dar es Salaam. "The study for Isaka-Kigali SGR is completed," said Jean de Dieu Uwihanganye, Minister of State in charge of Transport, while speaking at a local radio station talk show. "Rwanda is looking for a staggering around $1.3 billion to finance its portion with the aim of reducing logistics costs, boosting trade and easing the movement of people between Rwanda and Tanzania." Investing in transport projects is among the Rwandan government's top priorities as a way to attract investment in productive sectors, improve business environment and increase jobs opportunities, he said. Initial studies had shown that the project that will connect landlocked Rwanda to the Dar es Salaam port was estimated to cost $2.5 billion. Source: Rwanda Today

The United Nations Conference on Trade and Development (Unctad) will trade facilitation portals in Africa through a €3 million (Sh339.7 million) kitty drawn from a €85 million (Sh9.6 billion) fund by the EU to Comesa under the 11th European Development Fund Trade Facilitation Programme. Through a partnership with the Common Market for Eastern and Southern Africa (Comesa), Unctad is seeking to increase trade at the continental level by facilitating financial support to Comesa member states. Under the Agreement, Unctad will design and develop the national and regional trade information portals (TIPS) and the customs automation regional centre (CARC) at a cost of €3 million (Sh339.7 million). TIPs will facilitate access to essential trade information in one platform while CARC will support technical and functional training on the Automated System for Customs Data (ASYCUDA) World Platform thereby improving skills to use applications. This is in addition to developing the latest ASYCUDA Applications to enhance trade facilitation systems at the national, regional and continental levels. Out of the €85 million (Sh9.6 billion) EU kitty, €68 million (Sh7.7 billion) will be used to implement trade facilitation and small-scale cross-border trade. Unctad secretary general Mukhisa Kituyi sealed the agreement at the Comesa headquarters in Lusaka, Zambia. He told his host and Comesa counterpart Chileshe Kapwepwe that the regional body needs support for the spirit of regional trade and integration to bear fruit. “We are not going to downplay the centrality facilitated in trade, not only as a way of making Africa competitive but also overcoming...

Dar es Salaam. Taasisi ya Sekta Binafsi Tanzania (TPSF) na Trademark East Africa (TMA) wamesaini mkataba wa makubaliano ya kufadhili mikutano ya kibiashara baina ya sekta binafsi na umma (PPDs). Mkataba huo utagharimu Sh2.7 bilioni ndani ya miaka mitatu ambapo unatarajiwa kufikia mwisho Juni 2022. Akizunguza wakati wa utiaji saini leo Jumatatu Juni 3, 2019, mkurugenzi wa Trademark Tanzania, John Ulanga amesema fedha hizo zitasaidia majadiliano ambayo yatajikita katika masuala ya biashara, usafirishaji, saera na sheria mbalimbali ambazo zitarahisisha mazingira ya biashara na kuvutia uwekezaji. "Tanzania ina fursa nyingi sana kibiashara ukilinganisha na nchi nyingine za Afrika mashariki kutokana na Jiografia yake ya kupakana na nchi sita zisizo na bandari, tunaamini fedha hizi zitasaidia mijadala ambayo itaifanya nchi kutumia vema fursa iliyopo," amesema. Mkurugenzi Mtendaji wa TPSF, Godfrey Simbeye amesema fedha hizo zitatatua changamoto ya uhaba wa fedha uliokuwa kikwazo kikubwa wakati wa kuandaa mijadala. "Tukiwa na fedha hizi hata tafiti nyingi zitafanyika ili kujua tatizo kiundani kabla ya kupendekeza kwenye mijadala," amesema. Source: Mwananchi

The biggest news in May will not be the resignation of UK Prime Minister Theresa May but the coming into force, of the much anticipated Africa Continental Free Trade Area (AfCFTA) exactly four years today, since negotiations for the treaty begun in June 2015; it is a milestone worth celebrating. While it is without doubt a collective achievement of African leadership, Rwanda rightly deserves a special mention for the crucial role played by President Paul Kagame, under his mandate as the African Union Chairperson for the year 2018 in which he helped accelerate the actualization of the AfCFTA dream. His charisma and passionate drive quickly set things in accelerated action towards March 21, 2018 when the AfCFTA agreement was signed in Kigali. He continued engaging with counterparts on the continent towards May 30, 2019 when the AfCFTA officially came into force after the 22nd nation threshold to ratify was achieved in April. The AfCFTA excitement is based on what experts have ably articulated as the projected potential benefit to Africans such as turning colonial borders into bridges of cooperation and allow for a single continental market of goods and services and with free movement of persons. It will also facilitate cross-border investment and pave the way for accelerating the establishment of the Continental Customs Union; intra-Africa trade will grow to the tune of between US$50 and 70billion by 2040 with a combined GDP of nearly US$3trillion, according to UNECA. Statistics indicate that trade among African countries is at 15 percent...

The U.S. ditched the Trans-Pacific Partnership, while across the Atlantic, the U.K. is trying to extract itself from the European Union and its single market. But while free trade is under threat in much of the world, African countries are heading in the other direction: the continent is on track to create the largest free trade agreement by population that the world has seen since the 1995 creation of the World Trade Organization. That organization has 164 member countries. On May 30, the African Continental Free Trade Area (AfCFTA) will become a reality. All but three of Africa’s 55 countries have signed up, creating a free trade area that covers more than a billion people and a collective GDP of over $2 trillion, and includes most of Africa’s largest economies, including South Africa and Egypt. If hold-outs Benin, Eritrea and Nigeria—Africa’s largest economy—join in, that’s a total of 1.2 billion people and $2.3 trillion in GDP. By way of comparison, NAFTA and the EU-Japan free trade agreement each cover a collective GDP of around $22 trillion. But even when added together, they don’t cover as many people as the AfCFTA will if every African nation joins. Here’s what you need to know about the deal that could transform Africa’s business landscape. WHAT’S THE GOAL? Trade within Africa is in a dire state. A mere 17% of African countries’ exports go to other African countries—compare that with intra-regional trade levels of 59% in Asia and 69% in Europe. That means Africa doesn’t feature much in the way of cross-border value chains. Why? There’s currently a...

Rwanda still imports more than it exports to other foreign markets and this puzzle continues to elude local economic planners that spend sleepless nights cracking through moves that would balance trade. Experts have realised that the biggest problem is lack of correct information among local firms and that this challenge does not require rocket science to fix. Another complex huddle that local firms have to jump over is the intricate trade barriers. On Wednesday the European Union Delegation to Rwanda conducted Market Access training for Rwandan companies in conjunction with ITC’s Market Analysis, Private Sector Federation, Ministry of Trade & Industry, Agriculture Ministry and the Agricultural Export Development Board (NAEB). This training According to the EU delegation in Rwanda is “an initiative that complements our development support to the agriculture sector in Rwanda.” Nicola Bellomo EU Ambassador to Rwanda told the trainees that Rwanda has free access to the EU market (everything but arms) but volumes of exports remain low. “Most of our trade consists of EU imports to Rwanda; our objective is to balance our trade relations – and to help create jobs and economic growth in the process,” Bellomo said. This training is considered a great opportunity for our export SMEs, for those that did not get a chance this time more training and support soon!” says the chief executive officer of the National Agricultural Export Development Board. According to the International Trade Centre (ITC), Rwanda still has an untapped potential to export $14.5M more to Europe. In...

Uganda sold more goods to the East African Community (EAC), the rest of Africa, and the rest of Europe than it imported in the month of March, according to the ministry of Finance April report. The rest of Europe is made up of all countries outside the European Union: Bulgaria, Norway, Switzerland, and Turkey. The rest of Africa are all countries on the continent outside the EAC. According to the ministry of Finance, Uganda’s trade balance with the rest of Europe and EAC posted surpluses of $111.6m and $10.1m in March from deficits of $2.7m and $4.9m respectively, in February. Also, according to the ministry of Finance, the country continued to trade at surpluses with Middle East ($187.3m) and rest of Africa ($23m), similar to February 2019. A trade surplus means exports exceed imports. It is an indicator that businesses are having a good time and are earning more from goods taken abroad. It creates employment and growth. In many cases, a trade surplus helps to strengthen a country’s currency, as it earns more foreign currency than it spends to import goods. On the other hand, Uganda’s trade deficit – where imports were more than exports – widened with the European Union, Asia, America and others mainly due to the increase in imports from these blocs. Uganda’s largest trade deficit remains with Asia, the report says. The trade deficit with Asia deteriorated from $179m in February 2019 to $185.2m in March 2019. On the whole, the report says, Uganda’s trade...

The Ugandan and Kenyan government with the mediation of the United Nations-UN have agreed on joint collaboration to promote peace at the different border points especially in places with Normads and Pastoralists. The agreement comes following week long discussions between different stakeholders including the Karamoja Affairs Minister, John Byabagambi, Eugene Kijana Wamalwa, Kenya’s Devolution, Arid and Semi-Arid Lands Cabinet Secretary, the Aterker community in Karamoja, Members of the local development groups in Kenya and Uganda and the local leaders from districts around the Uganda-Kenya border. Groups of people speaking the same language including the Turkana in Kenya, Nyangatong of South Ethiopia, Topoth of South Sudan, Karamojong and Iteso in Uganda used to live in harmony more than 100 years ago  since they had the same cultural origin, the Nilo Hermites. However, the groups started fighting each other after the partition of Africa in 1930. The fights fueled cattle rustling leading to cross border killings. Whereas several leaders called for harmony and an end to cattle rustling and infighting among these people, the killings continued prompting the intervention of UN. Now, Rosa Malango the UN Resident Coordinator, says both Uganda and Kenya have agreed on the Joint Cross-Border Program to promote peace amongst the pastoral communities in the region. “We need to work with the governments of Uganda and Kenya to bring the region together because in nomadic communities there is an issue of competition for resources like water and pasture. We need to find a way we can work with the...

Lake Tanganyika ports may shoot up to fourfold from the next four years, as the ports eye a big share in handling lithium mineral cargo set for extraction in the Democratic Republic of Congo (DRC). Speaking during an interview with the ‘Daily News’ yesterday, Kigoma Port Manager, Ajuaye Msese, who is also managing all Lake Tanganyika ports, said to start with they expected to handle 500,000 tonnes of lithium per year after mining was expected to start in DRC in the near future. “As in the last financial year the ports collected 6bn/- after handling 200,000 tonnes, I believe lithium cargo will make cargo handling at the Lake Tanganyika ports shoot up to 800,000 tonnes in the next four years, thus making revenue collection reach about 20bn/-,” he said. He explained that the ports’ future was promising due to ongoing ports’ improvement and railway infrastructure linking the ports with economic activities in neighbouring countries. For his part, Kigoma Station Master Ally Shamte told the ‘Daily News’ that the railway line would play a big role in feeding Kigoma Port with cargo from Dar es Salaam Port to neighbouring countries. He said Kigoma Railway Station planned to handle the envisaged increase in cargo at Kigoma Port because the government was implementing a major project to upgrade the central railway line that connected Dar es Salaam- Mwanza-Kigoma to a Standard Gauge Railway (SGR). This is due to ongoing efforts of connecting Lake Tanganyika ports that link Tanzania with neighbouring countries, thus raising...

The Kenya Revenue Authority (KRA), The Kenya Ports Authority (KPA) and the Kenya Shipping Agents Association (KSSA) have signed a charter to enhance cargo clearance efficiency and boost regional trade. The Transhipment Standard Operating Procedures (SOPs) charter is part of a commitment to boost port operations and clear bottlenecks affecting efficient cargo movement. The charter will ensure clear performance targets and processes for the agencies operating at the Mombasa port. Each party will be given clear timelines while emphasis will be placed on the provision of adequate resources to clear transhipment cargo expeditiously. At the signing ceremony, which was held at the KPA headquarters in Mombasa last week, the KRA Customs and Border Control Commissioner, Kevin Safari described the formulation of SOPs as a key milestone for the shipping stakeholders. Mr Safari was accompanied by KPA general manager (operations) Captain William Ruto, and the Kenya Shipping Agents Association CEO Juma Ali Tellah. Source: Business Daily