Archives: News

Kenya receives $1.5m to ease cost of doing business

TMA will support Single Window enhancement. Additionally, the funding will be used to automate Partner Government Agencies (PGAs) processes or enhance their existing Systems to increase utilization of the Kenya TradeNet System. These improvements are aimed at reducing trade-related costs and time with a view to reducing the cost of doing business in Kenya. “TradeMark Africa is committed to growing prosperity through trade in the Eastern Africa region; and we recognize the impact of the single window on the trade value chain,”TMA Kenya Country Director Ahmed Farah said in a statement issued in Nairobi on Monday. The Implementation of the Kenya TradeNet System commenced in 2012 and the system was rolled out in 2013. More than 1,707,642 permits have been processed through the TradeNet System since it went live. In addition, the business community has realized savings estimated at $25.36 million. As part of the Partner Support Agreement, TMA will also support KenTrade in the implementation the Maritime Single Window (MSW) to comply with the International Maritime Organization Convention on Facilitation of Maritime Traffic known as FAL Convention. Kenya is among the 120 Governments (member states) that have ratified the FAL Convention. The FAL Convention recommends the use of the “Single Window” concept in which the agencies and authorities involved exchange data via a single point of contact. Source: APA News

TanTrade secures five new export markets for maize

Dar es Salaam. Maize farmers in the county have a reason to smile after the Tanzania Trade Development Authority (TanTrade) secured new export markets in Rwanda, Burundi, Zambia, DR Congo and the Comoros. Businesspeople in the country have therefore been asked to prepare themselves to grab the opportunity, not only for maize but also other cereal crops. TanTrade director general Edwin Rutageruka delivered the good news at the weekend during a cereals stakeholders’ meeting held in Dar es Salaam. He said that through the Ministry of Foreign Affairs and East Africa Cooperation, the authority has received a request from the private sector in Rwanda for the purchase 102,000 tonnes of maize during the 2019 season. In addition to that, there is demand for 100,000 tonnes of maize in Burundi, 3,000 tonnes in Zambia and 3,000 tonnes in the Comoros. Mr Rutageruka added that members of the private sector from Rwanda are ready to visit Tanzania and meet with various traders dealing in cereals, including maize. “As the government, we rely on the cereals board of cereals, but mostly it is private sector, so it better for everyone to determine their capacity so that we can allow buyers from Rwanda to come here,” he said. He advised traders to send their maize to warehouses to make it easier for buyers to access the cereal. For his part, the Program Officer from the Eastern Africa Grain Council (EAGC), Mr Junior Ndesanjo, thanked the authority for providing information about new markets. Source: The Citizen

Uganda, DR Congo unite to fight illegal wildlife trade

In a bid to fight illegal wildlife trade and trafficking in Queen Elizabeth and Virunga national parks, Uganda and Democratic Republic of Congo (DRC) through their wildlife authority bodies have embarked on trans-boundary collaboration to curb the vice. The wildlife authorities in Uganda include International Fund for Animal Welfare (IFAW) in partnership with the Uganda Wildlife Authority (UWA). IFAW is an international non-governmental organisation that protects animals and their habitants. The UWA deputy executive director, Mr George Owoyesigire, said Uganda is endowed with diverse natural resources such as wildlife, forests and wetlands, but poaching, illegal wildlife trade and habitat degradation remain threats. “We have seen a serious decline in wildlife populations due to poaching and illegal wildlife trade,” he said. Mr Owoyesigire said this on Saturday at Koikoi in Fort Portal Town during a training of security and law enforcement officers within Queen Elizabeth and Virunga national parks on how to detect and combat illegal wildlife trade. He said due to the efforts, UWA with support from stakeholders are beginning to witness an increase in wild animals. “For instance, elephant population decreased from 30,000 in 1960 to only 2,000 by 1983 and have since increased to 5,808 in 2017; buffalos were 60,000 in 1960 decreased to 25,000 in 1982 but have since increased to 37,054,” he said. Mr Owoyesigire said deforestation has had devastating effects on the forest cover from more than 30 per cent in 1990 to less than 9 per cent by 2019, wetland cover from more than...

Regional businesses decry persistence of non-tariff barriers

Regional businesses have decried the persistence of non-tariff barriers which they say often gets in the way of their operations. Presenting their challenges before the East African Business Council and officials of the East Africa secretariat, operators said that non-tarrif barriers continue to be the largest impediment to their operations. The meeting came at a time when the business community members across the region has been said to be experiencing hardships which some said had led them to incur losses. Among the products that have been experiencing difficulties in trade, they said, include insurance products and medical supplies often due to uneven standards and conditions. Christine Mukundwa, Head of Corporate Business at Sonarwa General Insurance Company, said that local insurance players are still finding difficulties to help out their local clients in the event of incidences when travelling within the region. Dr Abel Dushimimana the Chairperson of Importers of Pharmaceutical Products, said that one of the major challenges is that some member states still have to subject medicines that are manufactured in the region to multiple standard checks despite the bilateral and multilateral agreements that have been signed. “It is surprising that some member states are still subjecting medicines manufactured from other partner states to multiple standard checks on claims of doubt, it is unacceptable because it is stalling businesses especially as importers,” he said. The Executive Director of the EABC, Peter Mathuki, said that the organ is seeking to reclaim its autonomy as it is stipulated in the EAC...

The African Continental Free Trade Area – more hills to climb

  The African Continental Free Trade Area (AFTA) has garnered the required 22 ratifications for it to enter force, the latest ratification coming in on April 1, 2019 from The Gambia; just 11 days after the first anniversary of the signing of the Agreement on 21 March 2018 in Kigali. What was thought unthinkable has happened. It was the Icon Nelson Mandela who said, it always looks impossible until it is done. He said also, that after climbing one great hill, you only realise you have more hills to climb. The real hard work now begins; that of Implementation, on which Africa doesn’t have a very proud record. Besides, there is quite a bit of unfinished work to be done. In addition to trade in goods, AFTA covers also services as well as innovation, competition and investment. Adding these areas was a stroke of genius, given the psychotic fear of these issues by many developing countries in international trade agreements particularly the World Trade Organisation. However, way back in 2006, the African Ministers at a conference in Nairobi chaired by the then Kenyan Trade Minister Mukhisa Kituyi, now Secretary General of UNCTAD, took a fundamental decision to include these issues among programs for regional economic integration in Africa. It all came together one day at the Africa Trade Forum, before AFTA negotiations started. The die was cast, and a certain old man took the podium. He called out to the 200 strong audience that it would be a huge wasted...

World Bank pushes for e-trade platform

The World Bank (WB) wants Kenya to set up an electronic trading platform for issuance of government securities in order to strengthen debt management and ensure prompt settlement of transactions. WB Country Director for Kenya Felipe Jaramillo says in the latest Country Economic update that this could also help in improving liquidity in the market. “Adopting an electronic platform could improve the primary auction of government securities. This could promote transparency and enhance efficiency in the management of government debt,” says the WB in the report. “Adoption of this technology could, for instance, hasten the settlement period after every auction and reduce liquidity management challenges.” The primary auction of Treasury bills and bonds is part of the channels through which government raises money to finance its spending plans but sometimes there are delays in the settlement period. The Kenyan government committed to a prudent management of public debt as articulated in its regularly published Medium Term Debt Management Strategy. But WB says that for this to be realised, government will have to strengthen the institutional framework for cash and debt management including adoption of this platform. Developing transparent and vibrant local currency bond market is seen as a way of spurring significant interest from foreign investors and potentially reduce country borrowing costs. In financial year 2018/19, the split or ratio between external and domestic debt in the total debt stock was about 51:49. “However, reflecting higher domestic interest rates, debt servicing charges on the domestic debt stock are about three...

EABC, ITC to build capacity targeting removal of trade barriers

In a statement yesterday, the EABC secretariat said under the MoU, it will partner with the ITC through a four year European Union and East African Community Market Access Upgrade Programme (MARKUP) to improve capacity to advocate for the removal of trade barriers, standards and harmonization of sanitary and phytosanitary (SPS) measures and enhance export competitiveness. The new partnership will support EABC to improve the capacity of the private sector and trade supporting institutions on the World Trade Organization’s Trade Facilitation Agreement (TFA) in the bloc with a target to remove barriers to trade. “It is an undisputable fact that the TFA is increasingly becoming an important tool for countries to improve their business environment by initiating various trade facilitation reforms,” said EABC’s CEO, Peter Mathuki during the official opening ceremony of the regional training on trade facilitation. Witnessing the signing of the MoU was ITC’s representative, Victoria Tuomisto who in collaboration with EABC is conducting the training for masters of trainers on the TFA that started in Arusha yesterday. Delays and red tape hamper the movement of goods across borders for traders. In the East African Community (EAC), inefficient trade procedures and non-tariff barriers represent an obstacle to expanded intra-regional trade and deepened regional integration. “Trade facilitation – the simplification, modernization and harmonization of export and import processes – has thus become a key issue for the global trade system and for regional economic communities, such as the EAC, to create new thriving opportunities for businesses that are operating...

Hard work begins for continental trade pact

The African Continental Free Trade Area (AFTA) has garnered the required 22 ratifications for it to enter force, the latest ratification coming in on April 1, 2019 from The Gambia; just 11 days after the first anniversary of the signing of the Agreement on March 21, 2018 in Kigali. What was thought unthinkable has happened. It was Nelson Mandela who said; it always looks impossible until it is done and that after climbing one great hill, you only realise you have more hills to climb. The real hard work now begins; that of Implementation, on which Africa doesn't have a very proud record. Besides, there is quite a bit of unfinished work to be done. In addition to trade in goods, AFTA covers services as well as innovation, competition and investment. Adding these areas was a stroke of genius, given the psychotic fear of these issues by many developing countries in international trade agreements, particularly the World Trade Organisation.However, way back in 2006, the African Ministers at a conference in Nairobi chaired by the then Kenyan Trade Minister Mukhisa Kituyi, now Secretary General of UNCTAD, took a fundamental decision to include these issues among programs for regional economic integration in Africa.Various services sectors are already fairly liberalised in much of Africa, such as tourism, financial, communication, computer, transport, certain professions, energy, cultural and entertainment services. This follows years of autonomous liberalisation under economic liberalism programmes, regional economic integration and participation in negotiations at the World Trade Organisation and other fora....

Ugandan sues Rwandal over closed borders

A Ugandan citizen has dragged the government of Rwanda to the East African Court of Justice over what he terms as an illegal closure of border posts early this year. On February 28, Rwanda closed its borders with Uganda in Katuna and Chanika in Kabale and Kisoro districts respectively. Mr Steven Kalali, an advocate says he is aggrieved by the conduct of Rwandan President Paul Kagame. He accuses him of ordering immigration and revenue officials at the border posts not to allow Ugandan citizens and traders to cross into the country over unjustified reasons. In a petition he filed against the Attorney General of Rwanda, Mr Kalali contends that what Rwanda has done defeats the spirit of the East African Treaty, Free trade and Common Market Protocol since the closed border posts were also serving other countries like the Democratic Republic of Congo and Burundi. Mr Kalali filed his petition at the registry of the East African Court of Justice at the Supreme Court in Kololo, Kampala. In his petition, Mr Kalali wants the justices at regional court, to order Rwanda open its borders that have been closed since February 28, opened, to allow a free movement of Ugandan citizens and goods in the spirit of free trade. The closure affected hundreds of cargo trucks destined for Rwanda. The Rwandan authorities advised the truck drivers to turn back and use Mirama Hill border in Ntungamo District, which is 100 kilometers away. Initially, Rwanda claimed it had closed the borders to...