Kenyan firms recorded an increase in new orders from Tanzania despite deteriorating operating conditions in the country, the monthly manufacturing industry index shows According to the  April Purchasing Managers’ Index by Stanbic Bank Kenya new export orders once again rose sharply at the start of the second quarter of the year. The pace in April was quicker than March but but slower than February's four-month high. “New export orders were seemingly unaffected. Anecdotal evidence showed firms receiving higher orders from foreign markets such as Tanzania,” Stanbic Bank Regional Economist Jibran Qureishi said. Even though the new orders experienced continuous growth since the end of 2017, general activities in the private sector suffered a hitch in the country due to poor weather conditions and low cash flows. According to  the Economic Survey 2019, exports to the East African nation rose slightly by 4.31 per cent to Sh29.75 billion in 2018 from Sh28.52 billion in 2017. The values had however declined in the past years from a high of Sh46 billion in 2012. Imports from the country also rose to Sh17.81 billion in 2018 from Sh17.17 billion in the previous year. The index shows that over 35 per cent of close to 400 private sector companies reduced output, to mark the first instance since November 2017. “Firms were thus led to reduce output prices as they looked for new customers,” the index shows. Input prices rose at a quicker pace, though a drier than expected weather inflated commodity prices. The managers also attributed...

The first thing a visitor to Istanbul notices is the noise, energy and action. A more discerning visitor is also struck by its geography. For Istanbul is quite literally the meeting point of two continents, Europe and Asia.In fact, a day in the Turkish capital will regularly involve engagements in both Europe and Asia. This unique position gives Turkey a number of geostrategic advantages, and it was this advantageous position that enabled the Ottoman Empire, a precursor to modern day Turkey, at its peak, to rule over much of North Africa, the Middle East and Europe. Turkey’s example But this also brought with it problems. The Ottoman Empire eventually collapsed, over extended and attacked from all sides.Its successor, the modern state of Turkey, has struggled with its position, finding itself in conflict with the bulk of its neighbours at one time or another, lurching from one adversary to the next.Reflecting on this challenge, Ahmet Davuto?lu, an academic and later the Foreign Minister, devised a new foreign policy doctrine, known as the “Zero Problems Policy”.This approach rejected the notion that Turkey should turn its back on the Arab World in favour of the West, explaining that it was in fact possible to maintain friendly relations with all of Turkey’s neighbours. For this, Davuto?lu was recognised by the prestigious Foreign Policy Magazine, who in 2011 included him in its “Top 100 Global Thinkers” for “imagining a new role for Turkey in the world – and making it happen.” Zero problems? Analysing Kenyan foreign...

A team from the Department for International Development – United Kingdom (DFID-UK), has pledged to continue supporting Kenya Ports Authority (KPA) to achieve operational efficiencies especially in the area of innovation. Led by Head of DFID-Kenya, Julius Court and officials from Trade Mark East Africa, the team visited Mombasa Port where they were impressed by the degree of planning and investments at the port and vowed to continue with the collaboration. KPA General Manager Engineering services, Eng Rashid Salim and the Head of Corporate Development Martin Mutuku took the delegation through a presentation, followed by a tour of key facilities. Trade Mark East Africa collaborates with KPA in a number of projects including the Green Port Policy, one of the most significant projects that KPA is spearheading, to protect the environment. Last year KPA acquired 4 eco-hoppers funded by Trade Mark East Africa to reduce dust emission when handling dirty cargo. Source: Vash Media

Kenya hopes that its cement and confectionery will soon get access to the Tanzanian market, as efforts by the two countries to resolve a standoff over the products near fruition. A team of Tanzanian officials is expected in Kenya next week to inspect the cement and confectionery factories to verify the source of the raw materials used in their manufacture, before a decision on exports is made. Chris Kiptoo, Kenya’s Trade Principal Secretary, told The EastAfrican that the Kenyan products could enter Tanzanian market in two weeks’ time once the verification team completes its exercise. During a recent bilateral trade meeting on non-tariff barriers in Arusha, the two countries agreed to fast-track the verification missions recommended for confirmation of product origin as provided for in the East African Community rules of origin. It was agreed that compliance with the rules of origin be upheld and preferential treatment be accorded to products that qualify, a significant breakthrough in resolving trade disputes that have become a big threat to the region’s integration efforts. Tanzania has since early last year locked out the two products from its market because of the use of imported clinker and duty-free sugar in their manufacturing respectively. Source: The East African

Kenya will next week host the ninth East African Petroleum Conference and exhibition to discuss investment opportunities to enhance socio-economic transformation, an official said on Friday. Marin Heya, chairperson of the organizing committee, told journalists that over 1,000 local, regional and international delegates will be attending the three-day conference that will be in Mombasa from May 8. "The conference will help attract investors on oil and gas into the region given the potential in the region," Heya said in Nairobi. He revealed that the Chinese geo-spatial and survey firm BGP and CNOOC are among the companies that are expected to attend the three-day conference. The official said that the East African Community (EAC) member states, including Kenya, Uganda, Tanzania, Rwanda, will also exhibit at the conference alongside international oil companies. "We are also going to discuss a common legal and policy framework for countries in the region," he added. Heya noted that the conference is coming at a time when Kenya and Uganda have started drilling oil while Tanzania is exploring gas. He revealed that Kenya is keen at marketing its oil blocks with the aim of attracting investors into the industry. The Kenyan official said the conference is in line with the EAC Vision 2050 on the energy sector development that is aimed at ensuring sustainable, adequate, affordable, competitive, secure and reliable supply of energy to meet the regional needs at lower cost. "By 2050, the region targets to transform the energy landscape to have efficient distribution of petroleum...

Business Ireland Kenya held their latest breakfast meeting yesterday at the Park Inn by Radisson focusing on expansion and opportunities for growth. Joining attendees were representatives from the Irish Embassies of both Kenya and Uganda. The meeting opened with Lau Larsen presenting a bouquet of flowers to Charge D’Affaires Lisa Doherty in recognition of her leadership of the Irish diplomatic mission in Kenya. Dr Herta Von Steigel, Founder and Executive Chair of Ariya Capital, began the presentations with a look at effective expansion strategies and the importance of building networks in both global and continental business. She said that as disruption sweeps the traditional business set up, digitisation and people were the two areas to focus on, adding that even in Kenya, Brexit is seen as a major political risk Poverty alleviation will not occur at the back of a service industry, but will only happen under a manufacturing based economy, she added. TradeMark Africa Director General Mr David Stanton followed, discussing the current state of the East African Community (EAC) and how to facilitate ease of trade. He highlighted that Africa only accounts for 2 percent of world trade and that the continent’s combined GDP (Gross Domestic Product) is less than that of France. He went on to say said that despite a few challenges around expansion and opportunities for business growth, EAC is still attractive to investors with Kenya as a footprint country and Nairobi as a mature, middle-income capital city with opportunities for IT, telecoms, tourism and finance. Ian Middleton, Managing...

The African Union (AU) Commission has said that the African Continental Free Trade Agreement (AfCFTA) is set to enter into force on May 30. The one-month timeframe to activate the continental free trade pact came as Sierra Leone and the Saharawi Republic deposited their instruments of AfCFTA ratification to the AU Commission, the AU said in a statement late Wednesday. "The two deposits meet the minimum threshold of ratifications required under Article 23 of the AfCFTA Agreement for it to enter into force 30 days after the deposit of the 22nd deposit, which is made by the Saharawi Republic," the statement said. "The AfCFTA Agreement will, in this regard, enter into force on 30th May, 2019," it said. "All that is now left is for the African Union and African Ministers of Trade to finalize work on supporting instruments to facilitate the launch of the operational phase of the AfCFTA during the Extra-Ordinary Summit of African heads of state and government on July 7, 2019," the AU statement said. According to the 55-member pan-African bloc, the AfCFTA's supporting instruments include the 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 an African Trade Observatory Portal. The AU said recently deposits of ratifications are also expected from Zimbabwe and Gambia following the ratification of the AfCFTA by the two AU member countries' parliaments. The African ministers of trade are "scheduled to meet in Kampala, capital of...

that the government has so far done a commendable job towards making the country a middle-income industrial economy. The task force has presented its report to a closed-door meeting of the TNBC Executive Committee, which is chaired by the Chief Secretary. The committee is the second supreme organ of the TNBC. The national business council is chaired by the president of Tanzania. Addressing the press after presenting the report, the co-chairman of the task force (private sector), Ali Mufuruki said the task force was satisfied with the measures taken by the government in a fresh bid to modernise and industrialise Tanzania. “We had exhaustive consultations with a wide range of people on this important issue from both sides. We are content with step taken by the government in pursuit of this goal,” assured Mufuruki. Steps taken include securing airplanes, building of roads, power projects and establishment of other types of physical infrastructure, the chairman said. As a result of the consultations, he explained, the private sector has submitted to the committee a draft policy on industries. Asked to shed light on the submitted document, Mufuruki said experts proposed the kind of industries to be given priority, the importance of research, the importance of having an education system that prepares students for the kind of work and life they will face after studies. “In that document we are calling for a fresh approach that pays sufficient attention to the capabilities of our people, the existing opportunities, economic empowerment of Tanzanians and...

As far as trading blocs go, the EU has been a global case study of turning a free market into a common market. Faced with notable challenges in the integration process such as the consecutive crises in the Exchange Rate Mechanism in the early 90’s, the EU defied all odds and continued to expand in depth and geography in a historic feat. However, only two years ago, this ideal trading bloc took a hit with the Brexit vote, which triggered a global conversation on regional trading, agreements and integration towards creating shared prosperity for the countries involved. In our own context, a snapshot of intra–EAC trade in the past few years will reveal tension-filled and sometimes hectic trade-relations, as well as an overall cloud of uncertainty on the future of the regional community.  Yet with our geographical advantages, natural resources and global reputation, the EAC holds huge potential to set the pace for the Africa Continental Free Trade Area (AfCFTA) and lead the continent into a new age trading with the world on an equal and mutually beneficial platform. Whilst there isn’t much comparison to be made with the EU, one indisputable thing is that their integration process was marred by political and social differences, especially with bringing on board Eastern-European countries. This often caused uproar in member states with populations demanding that their nations’ ‘needs come first’. Through the chaos, nonetheless, members designed new institutions with a view to open up markets and for ideological alignments. Our challenges in integration...

National and international trade in Kenya and other developing countries is expected to receive a tremendous boost with discussion of international standards and conformity assessment. This is the key discussion item as the conformity assessment community from round the world meet for the next three days in Nairobi. Over 130 Conformity Assessment experts are attending the 34th ISO Committee on Conformity Assessment (CASCO) plenary to deliberate on Standards and strategies to enhance conformity assessment. “As we move forward and with global value chains creating more and more of the world’s wealth – effective, efficient and internationally recognized inspection, testing and certification services that are compliant with World Trade Organization (WTO) agreements will be integral to not only parts of, but to whole value chains,” said Mr. Eddy Njoroge, ISO President – Elect. “With a size-able proportion of ISO members being from developing countries, their participation in the international standards setting process is imperative in order to enjoy the full benefits of a globalized economy and consequently a share in the future growth in world trade,” adds Mr. Njoroge. ISO, through the National Standard Bodies and National Certification Bodies, aims to contribute to improving developing countries economic growth and access to world markets and helping to achieve sustainable development. Kenya has the important task to represent developing countries in the ISO Committee, on Conformity Assessment (CASCO) to ensure that their interests are taken into account when CASCO standards are being developed. Speaking during the official opening ceremony, Ms. Betty Maina, Principal...