The various stakeholders described the formulation of the Transshipment SOPs as a key milestone for shipping. The adoption of a bidding SOPs, they explained, will play a key role in raising efficiency levels at the Port of Mombasa. The SOPs have been developed to international standards and will enhance the transshipment process by removing process bottlenecks that have previously occasioned cargo clearance delays. It is expected that inter-agency relations at the Port of Mombasa will be streamlined with clear performance targets and processes. They will provide clear timelines to each party and emphasise the provision of adequate resources to clear transshipment cargo expeditiously. Mombasa Port handled 12,189 Twenty-Foot equivalent unit in transshipment in April 2019, an increase of only 2 per cent from April 2018. This is expected to increase rapidly in future with the implementation of the SOPs. Source: Capital Business

The Standard Gauge Railway (SGR) is losing out business from tea firms because of the exorbitant transport rates from Nairobi to Mombasa. Tea firms, especially the multinationals, have now opted to use road in transporting millions of kilos of tea arguing that it is 60 percent cheaper than using the train. The move is likely to further complicate the loan repayment for the SGR. Apollo Kiarii, the chief executive of Kenya Tea Growers Association (KTGA), said the last mile connectivity involved in transportation of the tea and the revised cargo rates have made the use of SGR too expensive. “We have reached a point whereby we have decided to abandon the use of SGR because it does not make any economic sense to us given its expensive nature,” said Mr Kiarii. Source: Business Daily

Issues like negotiations on key instruments and more ratification numbers have to be achieved for effective implementation of the African Continental Free Trade Area (AfCFTA) Agreement, Rwandan experts told Xinhua recently, as the African Union (AU) Commission set a time frame to activate the AfCFTA agreement on May 30. According to the AU, the remaining work for the AfCFTA is for the AU and African ministers of trade to finalize work on supporting instruments to facilitate the launch of the operational phase of the AfCFTA during an extra-ordinary heads of state and government summit on July 7. These instruments include rules of origin, schedules of tariff concessions on trade in goods, online non-tariff barriers monitoring and elimination mechanism, digital payments and settlement platform and African Trade Observatory Portal. Permanent Secretary of Rwanda's Ministry of Trade and Industry Michel Minega Sebera said the implementation can't be effective before negotiations on some key implementing instruments, including rules of origin and tariff concessions are completed. Despite the fact that the required 22 ratifications for the AfCFTA agreement to enter into force have been reached, the rest of African countries should join for its effective implementation, said Sebera, who is also an expert in international trade and development industry. Nigeria, Africa's largest economy, has so far opted not to ratify the agreement. Over 50 percent of the continent's cumulative GDP are contributed by Egypt, Nigeria and South Africa, while Africa's six sovereign island nations collectively contribute just 1 percent, according to reports. African countries...

African policy makers, Regional Economic Communities, African business leaders and others are set to hold a two-day policy dialogue in Addis Ababa, Ethiopia to map out a strategy for successful implementation of the African Continental Free Trade Agreement (AfCFTA). The May 27-28 policy dialogue is co-organised by the AU and the Coalition for Dialogue on Africa (CoDA), a 10-year old development platform for discussions and reflections, for stakeholders to map out a strategy for implementation of trade agreement and therefore lead to the realization of Africa’s aspiration enunciated in Agenda 2063. AGENDA 2063 is Africa’s blueprint and master plan for transforming the continent into the global powerhouse of the future. A concept note on the upcoming policy dialogue indicates that: “The planned policy dialogue will further enhance stakeholder engagement on the implementation of the AfCFTA.” It also aims to: build knowledge and expertise of all stakeholders on priority trade issues of the AfCFTA; improve regular information flow on trade issues to key stakeholders, and suggest a framework for the establishment of AfCFTA national committees; and improve co-ordination among relevant government ministries and agencies including through clear mandates and assigning of responsibilities. Improving the participation opportunities for stakeholders in the work programme of the AfCFTA; and strengthening the culture of dialogue and inclusiveness, are the other specific goals of the policy dialogue. The AfCFTA was first signed by African leaders on March 21, 2018, in Kigali. Among other benefits, experts estimate that the AfCFTA will increase intra-African trade by over 50...

Kenya’s dependence on commodities has worsened, a new United Nations Conference on Trade and Development (UNCTAD) report has shown, pointing to increased exposure to price shocks. Kenya’s commodity exports as a share of total value of merchandise exports rose to 72 percent in 2017, from an average of 67 percent of the value between 2013 and 2017, the new report shows. It is also above the 71 percent posted in 1995. This means that Kenya is more vulnerable to negative commodity price shocks and price volatility. UNCTAD Secretary-General Mukhisa Kituyi called for diversification of the economy to lower dependence on commodities. “Given that commodity dependence often negatively impacts a country’s economic development, it is important and urgent to reduce it to make faster progress towards meeting the sustainable development goals,” said Dr Kituyi. Commodity dependence can affect economic growth and welfare in the short and medium terms as it increases the vulnerability of countries to price shocks. UNCTAD considers an economy to be dependent on commodities when the share of its commodity exports in total merchandise sales is more than 60 percent. According to the UNCTAD report, commodity-dependent countries have increased from 92 between 1998 and 2002 to 102 between 2013 and 2017, being the highest level in 20 years. Kenya’s commodity exports were valued at $4.148 billion (Sh419.5 billion), equivalent to 5.2 percent of gross domestic product (GDP). This is down from 9.7 percent of GDP in 1995 when earnings totalled Sh132 billion. Agricultural commodities take up 61 percent...

Common Market for Eastern and Southern Africa (COMESA) has launched a partnership with global technology firm mPedigree to improve the agro-inputs protection technology among its members. The partnership, launched under the COMESA Alliance for Commodity Trade in Eastern and Southern Africa (ACTESA) Seed programme, will help the bloc to eliminate faking and counterfeiting of agro-inputs materials like seeds and fertiliser among its member states. This move promises a deeper penetration into the supply chains and access to new ecosystem support for Kenya, where the technology is already in use. “The system will assist the region to not only eliminate cases of fake agro-inputs such as seeds, fertilisers and crop protection products, but also boost trade in quality and improved certified seed,” said Serlom Branttie, mPedigree Global Strategy Director. Fraudulent trade in fake agro-inputs has greatly contributed to the poor performance of over 80 million small-scale farmers and to food insecurity in the region. Source: Media Max

In their meeting with a team from of the Ugandan Ministry East Community Affairs at Mutukula border in Kyotera district, Uganda traders have bemoaned the unclear trade restrictions imposed upon them when they attempt to cross with their merchandise into Tanzania. Jenifer Nassiwa, the Vice Chairperson of Mutukula Traders’ Association, has in her report indicated that many traders have incurred losses when their merchandise are denied free movement into Tanzania. Source: URN

Trade Mark East Africa wants Busia Kenya and Uganda to get a higher percentage of improved customs revenue at the border points. TMA chief technical officer Allen Asiimwe said integrated border management has improved systems at Busia and Malaba. “Through transparency, a lot of increased customs revenue has been realised. I hope some of that money comes back to Busia,” she said. Kenya and Uganda revenue officers agree that customs revenue has recorded tremendous increase due to improved border management at the Busia One Stop Border Post. Despite the increase in revenue, KRA cited some problems including the fact that the Kisumu-Busia road leading to the OSBP is too narrow and in a poor state. Other problems are insufficient facilities like scanners, screening machines and an ambulance and obstruction of traffic to and from the OSBP caused by buses /matatus picking and dropping passengers. Busia Governor Sospeter Ojaamong in February cited lack of terms of engagement as the main reason border counties were losing resources. The Governor said failure by the national government to execute its mandate has put leaders of such counties on a coalition course with their residents. Source: The Star

Plans for the construction of the Gulu trade logistic hub are in high gear with the actual construction expected to start by July 2020, according to TradeMark Africa (TMA) officials. Moses Sabiiti, the TMA Country Director says t they have the contracted Design and Supervision Consultant, who have already finished the final detailed designs for the site “We are on ground and plans are going on smoothly. By June 2020, we will have tended a contractor and actual construction should start immediately after that. For now, we are searching for a transaction advisor to finalize on the mode to be used for the site construction.” he said Mr. Sabiiti explained that TMA has already secured funds totaling $8.8m from Department for International Development (DFID), UK government, European Union and the Government of Uganda. Moses Sabiiti, the TMA Country Director says t they have the contracted Design and Supervision Consultant, who have already finished the final detailed designs for the site. "We are on ground and plans are going on smoothly. By June 2020, we will have tended a contractor and actual construction should start immediately after that. For now, we are searching for a transaction advisor to finalize on the mode to be used for the site construction."he said. Sabiiti explained that TMA has already secured funds totaling $8.8m from Department for International Development (DFID), UK government, European Union and the Government of Uganda. This was during a field visit to the site on Thursday by TMA officials and the...

The ambitious African Continental Free Trade Agreement (AfCFTA) which technically enters into force on 30 May could be the game changer for Africa’s hitherto lacklustre economy. Driven by Rwandan President Paul Kagame, the process of reaching this point may well have broken all African records. African Union member states launched negotiations to create this huge market of 1.2-billion people with a GDP of over $3.4-trillion in only March last year. Jakkie Cilliers, head of African Futures and Innovation at the Institute for Security Studies, calculates that the AfCFTA, if properly implemented, would boost Africa’s economic growth and reduce extreme poverty more than any other single factor in the long term. In a forthcoming book on Africa’s future, Cilliers reports on the results of forecasts done using the International Futures software on the likely impacts of 11 major transitions: social grants, rejuvenated education, peace, a fourth wave of democracy, improved health, external support, a demographic dividend (a timely bulge in the size of the working-age population), an upsurge in local manufacturing, an African agricultural revolution, leapfrogging outdated technologies – and the AfCFTA. Cilliers found that other drivers such as social grants, agriculture, leapfrogging and manufacturing would make the biggest difference in the short term. But by 2050, the AfCFTA would clearly be exerting the greatest impact on GDP per capita and extreme poverty. For example in lower-middle-income countries it would be boosting annual GDP per capita by over $1 500, compared to the next biggest factor, technology leapfrogging, which would be...