The manufacturing sector will set up an e-commerce platform to promote exports through increased sale locations. Kenya Association of Manufactures chief executive Phyllis Wakiaga has said the digital platform will help showcase locally manufactured products to the rest of the world, running like established global online marketplaces such as Alibaba in China and Amazon. The platform will also help Kenyan products expand their reach in the East African market and counter the existing intra-trade barriers. "There’s an opportunity to grow exports to EAC even though the amount of trade has been declining over the years. As we work on export competitiveness, we will work on low cost-effective products to ensure growth of the exports," Wakiaga said. She spoke during the Changamka Shopping Festival at Kasarani Stadium on Friday where local firms were able to showcase their products and sell them at discounted prices. The need to shift online has been driven by increased online shopping in the country due to ease in payments, and the African region. A report by United Nations Conference on Trade and Development released in 2018 showed that Kenyans shopping through the internet hit the 2.61 million mark in 2017 compared to 1.2 million in 2014. South Africa online shoppers hit 2.93 million, while Nigeria led in the online purchase space with more than four million online buyers. Export Promotion Council chief executive Peter Biwott said the move will also engage the diaspora community business council to increase promotion and ensure Kenyan companies are present in...

THE government said yesterday is in the process to construct a cruise terminal at the Dar es Salaam port following increasing number of cruise ships calling at the port. The Deputy Permanent Secretary in the Ministry of Nature Resources and Tourism, Dr Aloyce Nzuki, announced the plan when receiving Silver Whisper cruise ship that docked at the Dar port yesterday with more than 350 tourists. He said construction of the special terminal would be done during the on-going expansion of the port and new facility would enable handling of tourists without disrupting activities of handling other cargo ships at the port. "Currently the country is not benefiting a lot from the Cruise Ship tourism because the terminal has not been constructed. This limits the number of cruise liners docking at the port," he said. According to him, the cruise ship tourism is common and popular. According to him, companies which arrange cruise ship tourism are ready to bring many tourists to Tanzania but the challenge is lack of a terminal for cruise ships. On his part the Chairman of Tanzania Tourists Board (TTB), Justice Thomas Mihayo said the board would discuss with relevant authorities to see how they could issue long-term visa to tourists who would like to stay in the country for more than a month. The TTB's Managing Director, Devota Mdachi said the arrival of tourists in the country from different markets proves that the country's hospitality, peace and security are satisfactory. She advised the members of the...

Things are looking up for Mombasa port as a modernisation project and the Standard Gauge Railway (SGR) bring in more cash. The port earned Sh45.35 billion in 2018, an increase of Sh4 billion over the previous year’s Sh41.56 billion, as it handled a slightly higher number of containers. According to the Kenya Ports Authority (KPA) financials for 2018, profit before tax for 2018 dropped marginally from Sh10.6 billion to Sh10.3 billion, largely as a result of an increase in expenditure. MODERNISATION With the five-year modernisation project, which entailed dredging the port channel and constructing Berth 19, the port has increased its capacity to handle bigger panmax (382 metres) vessels, and the upgrade of the cargo evacuation equipment saw it lower ship occupancy time from five to 1.55 days in 2017. This means KPA can now expect to see growth in cargo volumes, and especially once the second container terminal under construction is complete. This will increase the port's container capacity by 450,000 twenty-foot equivalent unit (TEU’s), further cementing the port as the region’s logistics hub. The ports grants from the government rose to Sh5 billion last year, up from 588 million the previous year, as the country intensified the port’s modernisation to bring it to par with its competitors, including Durban, Egypt and Lagos ports. CARGO The push to have importers use the SGR and pick their cargo from the Nairobi Inland Container Depot in Embakasi also breathed life into the previously lacklustre facility, pushing its handling capacity last year...

Kenya has applied for an extension in order to meet UN deadline for the implementation of the maritime single window system by April, officials said on Friday.Amos Wang’ora, chief executive officer of the Kenya Trade Network Agency (KenTrade), told Xinhua that Nairobi is unable to comply with the International Maritime Organization (IMO) Convention on Facilitation of Maritime Traffic known as FAL Convention. "We have applied for an extension to the IMO until June and we have informed them we could not make it due to procurement issues which caused delays," Wang’ora said. KenTrade signed a partnership agreement with TradeMark Africa (TMA) for the enhancement of Kenya’s Single Window System to improve on its performance and eventually enable faster and efficient trade processes. Under the deal, KenTrade will receive about 150 million shillings (about 1.5 million U.S. dollars) to enhance usage of the National Electronic Single Window System (Kenya TradeNet) as well as the implementation of the Maritime Single Window in Kenya. Wang’ora said that Kenya has completed the business requirements for the development of the maritime system and is only remaining with the implementation of the digital platform. He observed that Kenya is among the 120 governments that have ratified the FAL Convention. The official noted that the FAL Convention aims at promoting measures to bring uniformity and simplicity in the documentary requirements and procedures associated with the arrival, stay and departure of ships engaged in international voyages. "The convention recommends the use of the ‘single window’ concept in which...

The Minister for foreign Affairs and East African Cooperation, Professor Palamagamba Kabudi made this observation on 5th April, 2019 during the tomb-sweeping event at the Chinese cemetery in commemoration of over 50 Chinese workers and technicians who died in the 1970s during the construction of the 1,860 kilometer Tanzania Zambia Railway Authority (TAZARA) line. Professor Kabudi said his ministry`s budget proposals for the 2019/2020 financial year includes the costs for establishing the consulate, and the process will begin as soon as the parliament approves the budget estimates. He noted that the opening of the consulate in the Chinese commercial city is timed to go along with the anticipated direct flights from Tanzania to Guangzhou by Air Tanzania`s new Boeing 787-8 Dreamliner. He further stated that opening the consulate will enable Chinese investors to access important information on how to set up factories and other businesses in the country. He also said the move is aimed to facilitate and cater for a growing demand for visa services brought about by increased trade between the two countries. Professor Kabudi also described China as Tanzania’s all weather friend. “Be it during hard times and during glorious times, China has steadfastly remained Tanzania’s friend,” said the professor. He cited the TAZARA line construction times when western countries and the World Bank rebuffed the ideas, claiming that the project was economically not viable, but China accepted a joint request made by former Tanzanian President Julius Nyerere and former Zambian President Kenneth Kaunda to fund and construct the railway line. He commended the unmatched...

For the past decades much has been said about the need for African countries to be integrated economically and unite to advance development and face challenges collectively. Sub regional economic blocs such as, Economic Community of West African states, South African Development Community, East African Community, Economic Community of Central African States and Common Market for Eastern and Southern Africa, have been achieving good results though some still are facing challenges. Learning from the successes and challenges of these sub regional economic blocks, member states of the African Union have been pushing for the establishment of African Continental Free Market Area (AfCFTA) led by the African Union Commission (AUC) and supported by the UN Economic Commission for Africa (ECA), among others. After many years of discussions 44 African countries have signed the AfCFTA agreement in Kigali, Rwanda in March 2018. For the agreement to be implemented at least half of the signatory countries have to ratify it by their national legislative bodies within one-year period. Countries like Rwanda, Ghana and Kenya were among the first to get the agreement approved by their national parliaments. Today including Ethiopia and the Gambia, whose parliament passed the bill at the 11th hour, AfCFTA is now ready for implementation securing approval of 22 countries parliaments. More countries are expected to ratify the AFCFTA in the coming months according to the United Nations Economic Commission Executive Secretary whose organization has been instrumental in calculating the benefits and challenges the AfCFTA brings to African countries and...

Kenya will be able to extend its trade foothold into all the 54 African nations beginning July. This follows ratification of the African Continental Free Trade Area Agreement by the Parliament of Gambia last week paving the way for its enforcement. The West African country was the 22nd to ratify the agreement making AFCFTA meet the minimum threshold needed to make it operational. According to the chairperson of the African Union Moussa Mahamat, the approval by Gambia marked the legal threshold for the historic agreement to enter into force. AFCFTA was first signed on March 21, 2018 by 44 countries in Kigali, Rwanda, making it one of the largest trading blocs since the formation of the World Trade Organisation. To date, the pact has been signed by 52 African countries. Last May, Kenya and Ghana became the first countries to hand over to the African Union Commission documents ratifying the free trade deal. On coming into force, the AFCFTA sets a centre stage for Kenya to grow its exports from 2.8 per cent in 2017 to an average of 25 per cent by 2022. This is according to the Integrated National Exports Development and Promotion Strategy unveiled last year aimed at growing exports. Leather and footwear, medical equipment, plastics, furniture, food,and beverages are listed among the top targeted sectors in the government led export promotion strategy. With the new deal, local industries will be able to access a market of over 1.2 billion people with a cumulative gross domestic product...

Africa’s economy is growing and its Gross Domestic Product (GDP) hit a seven-year high of 4%, which makes it the second fastest-growing region in the world behind Asia, says the African Development Bank (AfDB). This growth is driven largely driven by East Africa, which will be the fastest-expanding region for the fifth straight year. Ethiopia, Kenya, Rwanda and Tanzania all feature on the AfDB’s list of 10 fastest-growing economies for 2019. Egypt, the biggest economy after Nigeria and South Africa, will also help drive growth. Output in the Arab world’s most-populous country will rise around 5.5% this year as the government’s structural reforms attract more investment. “The state of the continent is good. Africa’s general economic performance continues to improve, but it remains insufficient to address the structural challenges,” Akinwumi Adesina. A “borderless Africa” is one of the key foundations of a competitive continental market that will sustain this growth and help address various structural challenges, hence, the Africa Continental Free Trade Agreement (AfCFTA), offers substantial gains for all African countries. The African Economic Outlook 2019 report also suggests five policy actions could raise Africa’s total gains to 4.5 percent of its GDP, or $134 billion a year: eliminating all applied bilateral tariffs in Africa; keeping rules of origin simple, flexible, and transparent; removing all non-tariff barriers on goods and services; implementing the World Trade Organization’s Trade Facilitation Agreement to reduce cross border time and transaction costs tied to non-tariff measures and; negotiating with other developing countries to reduce their tariffs and...

An African trading bloc on Thursday urged member states of three regional economic blocs to sign and ratify the free trade area agreement as the deadline nears. Three regional blocs namely the Common Market for Eastern and Southern Africa (COMESA), East Africa Community and the Southern African Development Community signed the tripartite agreement in June, 2015 in Egypt, comprising 26 countries. In a statement released after a meeting of the COMESA Intergovernmental Committee in Lusaka, the Zambian capital, the regional bloc urged member states to sign and ratify the agreement which lapses this month. The statement said so far only four countries in the three regional blocs ratified the agreement. The deadline of April 2019 was set in June last year during a ministerial meeting in South Africa, the statement added. Christopher Yaluma, Zambia's Minister of Commerce, Trade and Industry said it was time for the remaining countries to sign the tripartite given that it was supposed to be the building block to the Africa Free Trade Area Agreement. "I can not overemphasize the absolute importance of all of us ratifying the tripartite agreement so that it enters into force immediately. After years of negotiation, the tripartite free trade area is ready for implementation," he said. The Zambian minister said 93 percent of the work of rules of origin has been completed, providing the basis for trade to begin while legal texts have been concluded and adopted. Source: Xinhua

Nigeria exports rubber and crude oil to South Africa. We earn more if we export more, and this gives us more purchasing power to buy minerals from Ivory Coast and visit the Gambia for holidays. In turn, Ivory Coast can now buy fertilisers from Morocco and mineral fuels from Nigeria. By trading amongst themselves, these countries get the broadest range of goods and services at the lowest cost. This is the principle of comparative advantage and trade; rather than trying to do everything themselves, each country focuses on the products with the lowest opportunity costs. Should Africa unite on trade? A quick look at the trade profile of developing nations will show their reliance on developed nations in trading relationships. For example, 80% of Mexico’s exports go to the United States, and Nigeria’s trade with other African countries represents less than 10% of our annual trade activities. Nigeria’s story is replicated around Africa, and that is the problem that ought to be solved by the African Continental Free Trade Agreement (AfCFTA). It seeks to create a Free Trade Areawithin the continent that would reduce or remove barriers to facilitate the movement of goods and services. Previously, African countries tried to boost regional trade through international commodity agreements (ICAs). As many African countries mainly trade commodities, the idea was to establish agreements that would help stabilise export prices and commodity supply. Over time, however, ICAs grew increasingly ineffective as negotiations were driven by political rather than commercial concerns. Developing country exporters came to look at the ICAs...