Four jetties in Lamu County will be renovated at a cost of Sh649 million starting next month as the State looks to accommodate increasing trade volumes. The jetties - Mokowe, Mangrove and Manda Airport, all in Lamu West, and Mtangawanda in Lamu East- will be expanded to handle more boats, travellers and cargo, ministry officials have said. Transport and Infrastructure Principal Secretary Paul Maringa said the government has already set aside Sh520 million for Mokowe, Sh62 million for the Mtangawanda and Sh32 million for Lamu Mangrove. Manda Airport Jetty works will cost the taxpayer Sh35 million. Speaking during an inspection tour of various jetties in Lamu on Wednesday, Prof Maringa said preliminary requests, including drawing works and the general planning have already been finalised. The jetties, he said, will all be ready by May, 2019. “We have found that some of the jetties are structurally unsound and need repairs. For the Mokowe Customs Jetty, we expect it to be complete in two years’ time,” said Prof Maringa. Structural Engineer in the State Department of Public Works Hillary Nyaanga said the construction works include expansion of some of the landing sites. “We will have to construct the Mokowe Jetty afresh and in a modern style. We want it to have the large waiting bay, a mini-petrol station. It will also be designed in such a way that will accommodate the disabled. Source Business Daily

The African Development Bank has approved the East Africa Regional Integration Strategy Paper (RISP) laying out the roadmap for accelerating regional integration in the region with regional infrastructure development among the main pillars of the plan. The bank has earmarked $3.3b (sh12.5 trillion) to finance the strategy according to a statement from the bank. The strategy will guide the bank’s regional operations in 13 countries, namely Burundi, Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Rwanda, Seychelles, Somalia, South Sudan, Sudan, Tanzania and Uganda. The Regional Integration Strategy Paper 2018-2022 maps out the direction of the Bank’s regional integration work in Eastern Africa over the next five years. The key objectives are fast-tracking structural transformation, increasing trade and promoting financial sector integration and inclusion. The strategy is focused on two mutually reinforcing pillars namely regional infrastructure development for competitiveness and transformation. The other is strengthening of policy and institutional frameworks for market integration, growing investments and value chains development. Eastern Africa is the fastest growing region in Africa, with real gross domestic product (GDP) growth rate of 5.9% in 2017 compared to the continental average of 3.6%. But countries in the region grapple with poor infrastructure including power shortages, low electricity connection rates and high cost of electricity for manufacturing enterprises – about four times higher than the global average. They are also characterised by low-level industrialisation, with manufacturing added value below 15% in all the region’s member countries. “Most Eastern African countries depend on agricultural and mineral products for their exports,” said...

The flourishing economic cooperation between Uganda and Tanzania is gaining traction in seeking to boost trade and investment opportunities. The two countries continue to strengthen their bilateral relations to open new possibilities of doing business and expanding their GDP as well as economic performance in the regional bloc. The recently signed Uganda – Tanzania Joint Permanent Commission (JPC) Ministerial meeting is a fundamental factor in improving the ease of doing business between the two parties. During the second phase of the summit held in Kampala, Uganda both countries finalized matters concerning the energy sector signing the Memorandum of Understanding (MoU) to support the industry. The JPC is a potential platform for enhancing and consolidating bilateral cooperation frameworks between the two countries. It brings together companies and business people from both Tanzania and Uganda consisting of manufacturers, importers, exporters, clearing agents and transporters to discuss opportunities for trade between the two countries, and identifying challenges to be resolved. According to Uganda’s Ambassador to Tanzania Mr. Richard Kabonero, the signing of critical agreements covering trade, and railways between Uganda and Tanzania increased cross-border trade and reduced the cost of doing business. The gesture should be bait to lure more investors into seizing the opportunities available for business. Tanzania Communications Minister Harrison Mwakyembe praised Uganda’s relations with Tanzania which he said “continue to grow from strength to strength” as evidenced by landmark bilateral trade agreements signed recently. They have experienced healthy trade relations with historical linkages over the years. President Yoweri Museveni and...

The Kenya standard gauge railway (SGR) is the largest transport infrastructure project in the country since independence. The facility is designed to enhance transport operations in the country and beyond in a bid to boost development and economic growth in line with the Kenya Vision 2030. Phase one of the project extending from Mombasa-Nairobi was completed in May 2017 and is now fully operational with 14 freight and 4 passenger trains. At 14 cargo trains, the Nairobi-Mombasa SGR has already hit its 2025 container transportation target as per its original design plan. This means it has achieved its eight-year target in one year – which is quite an impressive accomplishment. With such success, positive impact of the SGR on the Kenyan economy are likely to be felt soon and its objective to grow the country’s GDP by 1.5% will be realised earlier than expected owing to the following after-effects: Job creation Top on the list of positive effects of the SGR project to the economy is job creation. From individuals employed in the construction sector, to the 2,285 staff from diverse professional backgrounds working at the 33 stations and in the passenger and cargo rolling stock, the project has generated numerous job opportunities. Furthermore, there is indirect job creation through entrepreneurship opportunities posed by the need for goods and services by SGR employees and passengers including catering, and entertainment among many others. Spending by these employees is set to create ‘income effects’ on the economy. Increased industrialisation Immense opportunities for...

The onset of the Standard Gauge Railway project and the current war on contraband goods has placed the Kenya Ports Authority on the radar of many including the Government. With the Government’s focus on the creation of an enabling business environment being on the Big Four Agenda: improved infrastructure as an enabler to economic development, the Port management will continue to be under pressure and its performance of great public interest. And the pressure, within a space of limited information, has clouded the other things happening at the Port. The onset of the Standard Gauge Railway project and the current war on contraband goods has placed the Kenya Ports Authority on the radar of many including the Government. With the Government’s focus on the creation of an enabling business environment being on the Big Four Agenda: improved infrastructure as an enabler to economic development, the Port management will continue to be under pressure and its performance of great public interest. And the pressure, within a space of limited information, has clouded the other things happening at the Port. The management of KPA should provide information to the public about what they are doing to ensure that the port will still remain very important to the region, Kenya and people from the Coast with these developments. With the SGR having been completed 18 months earlier than scheduled, and the volume of goods way ahead of plans, by 2020, Kenya will be in a position to suffice the Exim Bank without challenges....

Small- and medium-sized enterprises portend the future growth for industry and trade in this country. They constitute the next frontier for economic growth and transformation. They contribute 25 per cent of the gross domestic product, but have potential to expand exponentially, if properly supported. Policy papers have been published and the government has on several occasions expressed its desire to promote SMEs. However, oftentimes the discussions take place at workshops and conferences or exist just on paper. There is little evidence to demonstrate that the policymakers are actually seized of the matter and, therefore, driving it to the desire destination. INFRASTRUCTURE Precisely, the growth of SMEs lies in practical support, including incentives and markets for the products, which is what the government should focus on. President Uhuru Kenyatta has aptly captured the state of SMEs and, in particular, did the right thing to admit that the government has given lip service to the sector. Speaking at a conference at Strathmore University this week, the President was candid that the government has done little to support SMEs other than giving lofty promises that are never actualised. The role of government is basically facilitation, which means providing the right infrastructure, formulating proper policies, minimising administrative and legal bottlenecks in addition to operating a favourable financial and tax regime. RESTRICTIVE In reality, the obtaining scenario is restrictive and punitive. In major cities like Nairobi, the areas where SMEs operate are poorly serviced in terms of infrastructure, water and sewerage. Take the case of...

The onset of the Standard Gauge Railway (SGR) project and the current war on contraband goods has placed the Kenya Ports Authority(KPA) on the radar of many including the government. With the government’s focus on the creation of an enabling business environment under the Big Four Agenda, improved infrastructure as an enabler of economic development and the port management will continue to be under pressure and its performance of great public interest. And the pressure, within a space of limited information, has clouded the other things happening at the port. That it’s the major entry and exit point of goods including contraband, it’s the guarantor for the SGR loan and that its making major infrastructural investments, is not in question, and people want to know its role and future, including responding to issues on the possibility of Kenyans losing to the loaners should SGR fail to perform, or its relevance with operations shifting to Nairobi inland container depot and with the entry of the dry port in Naivasha. For public interest, these questions are relevant and information on the viability of the port will ease the anxieties Kenyans have on the same. The port is stable and has a future. The KPA management should provide information to the public about what they are doing to ensure the port will still remain very important to the region, Kenya and people from the Coast with these developments. With the SGR having been completed 18 months earlier than scheduled, and the volume of...

THE East African Community (EAC) will join other regional economic communities for a Tripartite Transport and Transit Facilitation Programme (TTTFP) validation workshop for cross border road transport agreements, model laws and regulations in Eastern and Southern Africa slated for Addis Ababa, Ethiopia next week. TTTFP’s goal is to assist EAC, the Common Market for Eastern and Southern Africa(COMESA) and the Southern African Development Community (SADC) member states to harmonise road transport laws, policies, regulations, standards and systems. Funded by the European Union (EU), the programme is coordinated by a Programme Management Unit hosted by SADC Secretariat on behalf of the Tripartite. According to a statement released by the EAC Secretariat, the programme is relevant for the Agenda 2030 as it not only contributes primarily to the progressive achievement of Sustainable Development Goal number nine but also promotes progress towards the goal. This does not imply a commitment by the Member States of SADC, COMESA and EAC benefiting from this programme. The overall strategic objective is to facilitate the development of a more competitive, integrated and liberalized regional road transport market in the East and Southern African region. The project purpose is to develop and implement harmonized road transport policies, laws, regulations and standards for efficient cross border road transport and transit networks, transport and logistics services, systems and procedures in the East and Southern African region. Target participants in the workshop are experts from 21 beneficiary member states representing Ministries and Government Agencies. Fifteen other regional subsidiary organisations with a...

The call was made by Salum Shamte, chairman of the Tanzania Private Sector Foundation (TPSF), shortly after returning from Istanbul, Turkey where he led a contingent of Tanzanian businessmen to the second Turkey-Africa Economic and Business Forum. “During the forum we identified a lot of opportunities… Turkish businessmen and investors have shown high enthusiasm to come and do business in Tanzania. Most of them are keen to team up with local partners, so it is up to Tanzanians to grab these partnership openings,” Shamte said. He cited areas which appeared to be of more interest to potential Turkish investors as agriculture, construction, industries, energy, and the hospitality industry. Some of them were even willing to come and invest in Tanzania immediately, he added. “There are others who have asked us to organize a tour of Tanzania for a large contingent of businessmen from Turkey. I will sit down with my colleagues and see what we can do about that,” the TPSF chairman said. Shamte also said the TPSF delegation to the forum was highly impressed by Turkish president Recep Tayyip Erdogan’s zeal to see his country’s private sector flourish by seeking international linkages. “There is a political will in Turkey. Financing of projects is not a big problem for Turkish businessmen as they have many sources of funding, so it is up to us to be ready to team up with them in business ventures,” he noted. Opening the two-day forum last week, Erdogan proposed that African countries shun international...

Nairobi is once again at the centre of efforts to re-write global trade rules as raging tariff wars shine spotlight on the role of World Trade Organisation. Kenya’s trade ministry officials are set to fly to Canada next week to present proposals on “radical reforms” that WTO requires to work effectively in a polarised world. “The Canada meeting will receive proposals from 15 world ministers, including Kenya which has been very active in global trade matters,” Mr Keith Rockwell, director and chief spokesperson at WTO told the Business Daily in Nairobi as the global agency began its outreach for East Africa this week. “There is a general agreement that WTO needs some reforms...; that we cannot retain a system where two thirds of members prefer not to follow rules”. The WTO, a global agency which is supposed to write rules of trade and settle disputes, has lately been on the spot as US President Donald Trump continues to dismantle the trade pacts negotiated by his predecessor Barack Obama. The spats which, among other things, have led to US-China trade wars, have, since March affected $413 bislion (Sh41 trillion) worth of exports, Mr Rockwell said, forcing the WTO to revise the 2018 global trade growth projection down to 3.7 per cent, from 4.5 percent at the start of the year. Trade economists have since projected that the raging tariff wars, if not tamed, could reduce global trade volumes by 17 percent this year and, in the long run, cut the world’s...