For twenty years, only soldiers, refugees or rebels had ventured to the border between the enemy brothers of the Horn of Africa, Ethiopia and Eritrea. But with the normalization of their relations, the former desert no man’s land is now quivering with activity. Trucks loaded with bricks and wood, fruit and vegetable carts and local buses visiting their families are now crossing the border under the benevolent eye of soldiers who until a few months ago looked at each other as dogs from their trenches dug in the rock. “We have everything we didn’t have before, from the smallest to the largest,” says Abraham Abadi, a merchant in the Eritrean city of Senafé, whose shop is full of cookies, drinks and other goods from Ethiopia. We have everything we didn’t have before, from the smallest to the largest But the dramatic reopening of the border this summer has also brought its share of problems, with an influx of Eritrean refugees in Ethiopia and a chaotic exchange market between the currencies of two countries with very unbalanced economic development. Once a province of Ethiopia, Eritrea gained its independence in 1993 after several decades of bloody war. The border demarcation then caused a two-year conflict in 1998 that left tens of thousands dead, before ending with more than 15 years of Cold War, with Ethiopia refusing to comply with UN recommendations on the demarcation of the border. Until the arrival in Addis Ababa of the reformer Abiy Ahmed, who decided last June to...

Uganda might have discovered oil reserves years earlier than Kenya, but the country has admitted it has much to learn from Kenya. The two countries have had a joint session to share experiences and ways of maximizing the benefits that come with oil and gas discovery. The Kenya National Oil Corporation (NOC) was the host as it entertained Uganda Oil Corporation and Kenya Pipeline Company. The three institutions also discussed various ways of collaboration and partnership in line with East African Community integration as both Kenya and Uganda recently discovered oil. Uganda has proven crude oil reserves of 6.5 billion barrels, about 2.2 billion of which is recoverable. The International Monetary Fund was quoted in 2013 as saying that these reserves are the fourth-largest in sub-Saharan Africa, behind Nigeria, Angola, and South Sudan. Kenyan reserves are significantly lower although the government is yet to finalise survey on certain oil blocks including the Rift Valley and offshore blocks. Last month, Kenya Petroleum and Mining Cabinet Secretary John Munyes indicated that Kenya was willing to help Uganda build and complete its oil jetties in Jinja and Entebbe which in return will enhance the viability of Sh1.7 billion Kisumu’s new oil terminal. The Kisumu oil terminal is expected to increase petroleum supply to landlocked Uganda, Rwanda, Burundi and the Democratic Republic of Congo. However, it has not been used to the maximum as the jetties in Entebbe and Jinja are yet to be complete. Kenya and Uganda were expected to conduct a joint pipeline...

has opened Africa's fifth-largest bridge in Jinja in the eastern part of the country. The 525-meter-long, cable-stayed bridge was funded by the Japanese International Cooperation Agency (JICA), and Uganda's President Yoweri Museveni claimed "it will last for 120 years." The bridge has been named "Source of the Nile bridge," and the project cost US$112 million. The government of Japan financed 80% as a loan of US$100 million at an annual interest rate of 0.01%, repayable in 10 years but extendable to 40 years. The new bridge is built across the Victoria Nile and is expected to reduce the heavy traffic that passes through the Nalubaale Bridge, which was built 64 years ago.. The President also said that 67% of the technical staff were Ugandan engineers and the bridge was completed in four years. Japan's State Foreign Affairs Minister Masahisa Sato was also at the opening on Wednesday. He and President Museveni cut the tape to open the Source of the Nile bridge. The Japanese minister has hinted of future projects with Kenya. "...In the future, logistics with Kenya will become even more active," Sato said in a tweet.  And there are indications that Uganda has more big projects to unveil. "...It is the season of big projects in Uganda. We will soon unveil new projects like the hydro power dams," Source Cnn

Revenue Authorities in the East African Community (EAC) have renewed calls for Tanzania and Burundi to join the Regional Electronic Cargo Tracking System to reduce dumping and control data of transported cargo. Officials said that while the system was launched over a year ago and should be regional, the two countries are still reluctant to join it, thereby affecting doing business in the region. The EAC partner states adopted the Single Customs Territory (SCT) in a bid to ease doing business across the bloc by electronically processing goods and releasing them from the country of destination prior to loading and releasing from the port. An electronic seal is attached to transit cargo vehicles and gives real time information such as vehicle location and speed, and whether or not the container was tampered with. The electronic cargo tracking also sought to reduce paperwork while maximising use of technology. Importers, transporters, and the revenue authorities alike are also able to access the information. Rapid response units are stationed along sections of the Northern Corridor identified as notorious for diverting goods. The SCT was meant to speed up clearance by ensuring that customs procedures are all completed at the point of entry hence easing the implementation of Single Customs Territory. However, the two countries use multi-vendor system which traders have to pay for while the EAC electronic cargo tracking is free, officials and traders said. “Currently, the system we are implementing is free of charge but in Tanzania they are using a multi-vendor system which...

The UK is committed to improving its partnership with Kenya to ensure the Lapsset project is implemented successfully, High Commissioner Nic Hailey said on Friday. The Sh2.7 trillion Lamu Port South Sudan Ethiopia Transport corridor is expected to boost transport and trade in East Africa. The project brings together Kenya, Ethiopia and South Sudan. It comprises seven key infrastructure projects — starting with a new 32-berth port in Lamu, interregional highways from Lamu to Isiolo, Isiolo to Juba (South Sudan), Isiolo to Addis Ababa (Ethiopia), and Lamu to Garsen. According to the Lapsset website, the berths will cost about Sh500 billion. The government has partnered with the private sector to fund the project. Hailey said the megaproject will open up Kenya to the rest of Africa and the Middle East and attract more commercial investment and shipping. The  UK is keen to provide vocational training for Lamu youths to ensure they benefit, he said. “I’m touched by the progress of the Lapsset thus far. The UK is keen to help in every way possible for Kenya to realise its objectives. We are looking forward to the project because we are confident of its ability to open up Kenya to the rest of Africa and the Middle East,” Hailey said. The envoy said his country will work together with all sector players. The upcoming Lamu port is a huge investment plan for Kenya compared to the Port of Mombasa, he said. “The UK has been providing vocational training for local communities...

The  long queues normally witnessed at the One-Stop Border Post at Namanga will now be a thing of the past. This is after Kenya Trade Network Agency (KenTrade) in partnership with the International Finance Corporation (IFC) rolled out Internet and Wi-Fi connectivity to enable faster clearance of goods at the border post. The service has also been extended to One Stop Border Posts in Malaba, Busia, Taveta, and Isebania. Jomo Kenyatta International Airport (cargo section) and the Port of Mombasa have also had their connectivity boosted to facilitate faster clearance of goods. Speaking when he officiated at the launch, Principal Secretary State Department of Trade, Dr. Chris Kiptoo, said use of the Internet could make the process of initiating and doing trade a lot easier, faster, and less expensive. Kiptoo noted that the government was at the forefront of implementing initiatives aimed at reducing the cost of doing business and enhance trade facilitation. “Using ICT as an enabler, the business community and citizens have been accorded seamless services in addition to giving them the opportunity to access Government services anytime at their convenience,” noted the PS. He  added that the electronic Single Window System (Kenya TradeNet System), which allowed traders to lodge trade documentation for approvals by regulatory government agencies through the single electronic platform, was one of the projects implemented by the Government that has contributed to savings in time and cost for traders. The Chief Executive Officer  KenTrade, Amos  Wangora noted that the Agency has been working with...

Manufacturers now want a break from the import declaration fee of two per cent and the railway development levy of 1.5 per cent. Speaking during the unveiling of the sectors deep-dive report on Thursday evening, Kenya Association of Manufactures chairman Sachen Gudka said the move will help them regain some of the lost export market in the region. He said the sector is worried about the decreasing optional spending from consumers due to higher taxation that has led to a decrease in the demand for goods. “While there is an imperative by the government to collect tax, we are worried that we have reached a tipping point of overtaxing consumers and the spending will go down,” Gudka said. “The government should release the taxes as rebate to all exporters in order for us to have a competitive advantage.” He noted that in recent years Uganda's exports to Kenya surpassed Kenya's export to Uganda, same to exports from Tanzania, hence the need for Kenya to evaluate its competitive position. The 2018 Economic survey shows the value of Kenya's imports from Uganda more than doubled from Sh19.3 billion in 2016 to Sh42 billion in 2017 while its exports to the same country reduced in value from Sh62.2 billion to Sh61.8 billion. Exports to Tanzania fell to Sh28.5 billion from Sh34.8 billion in 2016 as recorded in the survey while exports from Rwanda plummeted to Sh17.1 billion from Sh17.5 billion. According to the Kenya National Bureau of Statistics leading economic indicators for August...

The new Source of the Nile Bridge in Uganda is a small section of the Northern Corridor but a significant link that launches the region into the future of road transport. The smart bridge, located in Jinja Town, about 80 kilometres east of Kampala, is designed to improve traffic flow, digitally enforce axle load limits and ensure road safety. Although the bridge mainly links eastern and central Uganda, it has a bigger significance for countries that use the Northern Corridor transport route as it serves as the second gateway to the rest of Uganda, eastern Congo, South Sudan, Rwanda, Burundi and the northern parts of Tanzania. “This is a milestone in upgrading the most important trade and transport corridor, and will relieve traffic on the old Nalubaale Bridge,” said Monica Ntege Azuba, Uganda’s Minister for Works and Transport (UNRA). Launched by President Yoweri Museveni on October 17, the bridge is a dual carriageway, measuring 525 metres long and 22.9 metres wide. It was built at a cost of $125 million, funded through a concessional loan from the Japan International Co-operation Agency (JICA). President Museveni said that slow traffic, congestion, cargo overload and high frequency of accidents are some of the issues that continually concern road infrastructure planners and transport managers along the northern corridor, despite having speed and axle load control regulations in place. The East African Community continues to grapple with overloaded cargo trucks despite the regional parliament enacting a law — the East African Community Vehicle Load Control...

A turf war has erupted among textile manufacturers barely two months after the Treasury granted extension allowing the sale of subsidised fabric in the local market. The battle pitting 48 apparel manufacturers against 17 of their competitors who are registered under the Export Processing Zones (EPZs) follows the recent measures seen to favour the latter. At the start of this financial year, Kenya successfully lobbied its partners in the East African Community for extension of an offer which allows EPZ firms to offload 20 per cent of their annual production duty-and-VAT free in the domestic market. The Kenya Association of Manufacturers (KAM), which represents both categories of textile producers, wants the government to stop the EPZ firms from selling their products tax-free in the local market “since it poses unfair competition to non-EPZ firms. “The stay of application was renewed in 2017. This has created uneven playing field for textiles and apparels manufacturers. Non-EPZ manufacturers cannot compete with the highly incentivised products from the EPZ manufacturers,” says KAM in a report released last week. Among other incentives, firms operating under EPZ enjoy a 10-year corporate income tax holiday and a 25 per cent tax rate for a further 10 years thereafter, a 10 year withholding tax holiday on dividends and exemption from VAT and import duty. These incentives are not available to other manufacturers which have to pay corporate taxes at standard rate of 30 percent and VAT at 16 percent. Acting CEO and head of membership development at KAM...

Kenya is developing health and safety protocols to boost livestock exports, an official said on Wednesday. Harry Kimutai, principal secretary in the Ministry of Agriculture, Livestock, Fisheries and Irrigation, told an agricultural forum in Nairobi that currently Kenya's livestock cannot access the lucrative overseas markets due to high prevalence of animal diseases such as foot-and-mouth disease. "The protocols will ensure that livestock meet stringent standards imposed by importing countries," Kimutai said during the Commercial Bank of Africa Economic Forum. Kimutai said that Middle East countries such Saudi Arabia and Oman have already expressed interest in purchasing live animals from Kenya. He said that the livestock will be quarantined at the Bachuma Livestock Export Processing Zone before they are exported. The government has already set aside 1 million U.S. dollars to develop the livestock exporting processing zone, which will be operational by June 2019, Kimutai said. Kenya will use the public-private-partnership model to expand production of the livestock sector, he said. The ministry also plans to amend the Branding of Stock Act to allow for the introduction of the Livestock Identification and Traceability System (LITS), Kimutai said, noting that the system will help enhance food security. Source Xinhuanet