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Why innovations are key

Dar es Salaam. The government is creating a viable space for encouraging agricultural innovative activities in a bid to attract more youth into the sector, which employs about 80 per cent of Tanzanians. The remark was made by the policy advisor for the ministry of Agriculture (Food Security and Co-operatives), Mr Revelian Ngaiza said on Tuesday August 29 when presenting a report in a meeting organised by the East African Community (EAC) in Dar es Salaam. Mr Ngaiza, who represented the ministry’s permanent secretary, said the government had identified the innovative approach as a powerful tool of encouraging the youth to take up agriculture as their main economic activity. “In our two-year pilot project for identifying the challenges making the youth shun agriculture, they have discovered that innovations in agriculture were crucial in attracting the youth to engage in agriculture,” he said. In his opening remarks to such meeting on Best Youth Agri-business Models in East Africa, the EAC deputy secretary general, Mr Christophe Bazivamo, said that since many young people do not regard agriculture in a positive way, there is a need to use Information and Communications Technology (ICT) to attract them. “ICT can be improved let us say to integrate music and sports in agricultural activities for attracting more youths in this sector,” said Mr Bazivamo. He cited the case of the use of ICT in agri-businesses such as marketing of agricultural produce, which is attracting more youths in Kenya. The EAC senior officer for the UN Food...

KPA denies row hampering SGR cargo transport

The number of trains ferrying cargo using the standard gauge railway (SGR) from Mombasa-Nairobi have dropped to seven after rising eight last week. The Kenya Port Authority (KPA) which is overseeing the transportation reported that the number of trains had shot to eight in the better part of last week but reduced following a “number of issues.” Reliable sources informed Shipping that wrangles between the Kenya Revenue Authority (KRA) and officers in the container operations department resulted to the reduction of the freight trains back to seven daily. KPA's head of container operations Edward Opiyo however denied reports that the disputes were behind the unfolding events. “We only had some small issues with the new KRA officials but those are not in any way linked to the transport of cargo,” Mr Opiyo said. He noted that the number of freight trains reduced as there were no enough wagons available for transportation. “The wagons that come from Nairobi are the same ones that we are dealing with but our aim is to meet the target which is seven trains a day and that is the ministry’s target. On a good day we can do up to 10 but it depends on the availability of those wagons,” said Mr Opiyo. He said since KPA has been able to meet the target, “what I can tell you is that the operations are going on well.” Currently, a total of 8,000 containers are moved through SGR freight trains every day to the Inland Container...

The United Kingdom is looking for new post-Brexit friends in Africa

As the UK prepares for life after Brexit, prime minister Theresa May is leading a charm offensive to Africa this week. With a delegation that includes the UK trade minister and minister for Africa, the British leader will visit three of Africa’s largest economies, South Africa (Aug. 28), Nigeria (Aug. 29), and Kenya (Aug. 30). May will be the first UK prime minister to visit Kenya in more than three decades and the first to visit Sub-Saharan Africa since 2013. The visit, described as ”a unique opportunity at a unique time,” has a very clear purpose: “As we prepare to leave the European Union, now is the time for the UK to deepen and strengthen its global partnerships,” May said. As it is already late to the party in Africa, following increased efforts from China and the United States in recent years, the UK is making the pitch for a “renewed partnership” with “mutual benefits.” It says it will work “side by side” with partners on the continent to “maximize shared opportunities.” Those sentiments appear to be particularly veiled references to contrast China’s activity on the continent which has been branded as “debt trap diplomacy” and criticized for encouraging dependency. In Kenya, for example, debt to China has grown tenfold in five years. May will need to make a strong impression on Kenya’s president, Uhuru Kenyatta, who is also meeting leaders from China and the US this week. In addition to trade talks, May will be pledging more military support as Kenya continues to battle the insurgent...

Britain to boost trade in Africa – PM May

Britain's Prime Minister Theresa May walks out of 10 Downing Street in London, Britain, May 2, 2018. /REUTERS Britain will use its international aid budget to boost its own interests while also seeking to deepen trade ties with Africa, Prime Minister Theresa May said on Tuesday, countering critics who say aid funds would be better spent at home. May, battling to unite her divided Conservative Party over her plan to take Britain out of the European Union, is visiting South Africa, Nigeria and Kenya on her first official trip to the continent. In a speech in Cape Town, May said she wanted Britain to become the biggest investor in Africa out of the Group of Seven nations, overtaking the United States, by using the aid budget to help British companies invest on the continent. The government has held out the prospect of increased trade with non-European Union countries as one of the major selling points of Brexit as it prepares to leave the bloc, currently its biggest trading partner, in March next year. In April, Britain hosted a meeting of Commonwealth countries, including South Africa, Kenya and Nigeria, seeking to reinvigorate the network of mostly former colonies and drum up new trade amongst its members. May recommitted to maintaining the overall British aid budget at 0.7 percent of economic output but said she would use it in a way that helped Britain. “I am unashamed about the need to ensure that our aid programme works for the UK,” May said....

Kenya to host regional logistics trade fair in September

Over 2,500 trade professionals from around the world are expected to converge in Kenya next month for a regional transport and logistics trade exhibition. The trade fair, Scalex East Africa 2018, is scheduled for September 3-5 at the Oshwal Center in the capital Nairobi. The trade event is expected to boost Kenya’s credentials as the leading transport and logistics hub in East and Central Africa. The event is also signficant considering the heavy investment in infrastructure by countries in the region in recent years. Scalex East Africa spokesperson Skander Negasi said the trade fair will offer firms and investors a unique opportunity to learn more about infrastructure in the region. “Scalex East Africa offers a powerful and knowledge networking base for industry players eyeing the East African market especially regarding processes and solutions for the logistics industry,” said Mr. Negasi. He added that local and international exhibitors will showcase innovations and link up with potential clients. The event also offers participating firms a platform to project their brands in the regional market. It will also incorporate a conference where participants will discuss trends in African logistics, rail and port infrastructure development, logistics standards, and technology and innovation in transportation among other topical issues. By some estimates, East Africa requires an estimated $100 billion until 2021 to plug the infrastructure gap. Investments in roads, railways, airports and sea ports are seen as vital to trade and economic growth. Scalex East Africa trade fair is organised by planetfair GmbH & Co., an...

Trade among EAC countries grows by $4b

Trade among East African Community member states has grown by $4b (Shs15.014 trillion) since the establishment of Customs Union on January 2, 2005. The growth signifies the importance of regional integration to member states which mainly pursues trade and market integration. Mr Kenneth Bagamuhunda, the EAC customs general, said during the 22nd Ordinary Meeting of the East African Community Monetary Affairs Committee (MAC) that while integration will take long to be fully realised, there are already positives results. “Since January 2005, EAC trade integration has resulted into increased volume of trade. In 2005, trade between the EAC states was $1.5b but has since increased to $5.5b in 2017,” he said. According to Mr Bagamuhunda, infrastructure development in the region has developed, which has helped to grow trade in the region. “We have put emphasis on infrastructure development for economic growth [with] customs as one of the avenues for growth,” he said. The East African Customs Union was followed by the East African Community Common Market, which represents the second pillar of the EAC regional integration process. The EAC regional integration provides for freedom of movement for all the factors of production such as goods and labour, among others. Mr Bagamuhunda said the implementation of the Common Market has progressed well with the secretariat implementing a number of procedures such as the e-passport and one-stop border points, among others. The East African Legislative Assembly has also passed the Bill establishing the East African Monetary Institute. LARGEST TRADE PARTNER Since the establishment...

Second-hand clothes, smuggling and the US-China trade war in Africa

50 kilograms or 110 pounds. That is the maximum Nathalie can smuggle in one night. She knows a shortcut to avoid the border control. Her heavy bags are packed with used trousers, dresses and shirts from Europe and North America. "If you get caught, you can go to jail. If you are lucky, you can bribe the police," she said. One trip takes her two days. Eight hours by van from Kigali, the capital of Rwanda, to the place near the border where her parents live. Another hour by boat to the Democratic Republic of the Congo. There she spends the day at the market. "I look for all kinds of clothes. Back home, the people buy everything because second-­hand clothes are hard to get." High tariffs for textiles in Rwanda, pressure from the US Nathalie's 50 kilograms of used clothes are just a minor contraband compared to other smugglers. Rwandan authorities have impounded 230 tons of illegally imported clothes from July to December 2017. This is a consequence of the rise of tariffs for textiles from $0.20 (€0,17) to $2.50 (€2,09) per kilogram by the Rwandan government. The high tariffs are part of the strategy to strengthen the domestic textile sector. Currently, local production cannot compete with the quality and price of used clothes from the West. In 2015, the states of the East African Community (EAC) decided to ban the import on second-­hand clothing from 2019 onwards. Today, Rwanda is the only state that sticks to this plan. It is the US that...

Kenya’s Uhuru wraps up US tour, says Africa is open to fair trade

President Uhuru Kenyatta wrapped up his official visit to the US with a message that Africa is open to mutually beneficial trade and investments with the world. Speaking to the media after his meeting with President Donald Trump, the President observed that Africa has come of age and does not look to the world for aid but how to foster win-win partnerships that benefit all parties involved. “There has been dramatic change across the African continent where people are beginning to get a better understanding of themselves, who they are and where they want to be,” he said. The Head of State added: “And we are looking at how we can partner with countries across the globe in a partnerships that are not patronising but those that are anchored on a win-win positions.” The President spoke shortly before he departed Washington DC on Monday evening after a busy day that saw him hold bilateral talks with President Donald Trump. He also met business executives of leading US companies during which he witnessed investment deals worth USD 238 million (Sh24 billion) signed between Kenyan and US companies. Uhuru termed his meeting with President Trump a big success, saying it cemented a relationship that was already strong between Kenya and the US. “The meeting with President Trump was fruitful. We discussed security, especially the fight against terrorism. We also discussed how to increase trade and investments between our two countries and how US companies can help create jobs for our youth,” he...

EAC Monetary Union Realization Hangs In Balance

Central Bank Governors of the East African Community (EAC) have noted that there have been delays in realising targets set out in the East African Monetary Union (EAMU) road map and that there are several challenges that could further impede the full implementation of EAMU protocol. The Governors, who met in Kampala at the 22nd ordinary meeting of the EAC Monetary Affairs Committee (MAC) chaired by Prof. Emmanuel Tumusiime-Mutebile, Governor Bank of Uganda, pledged to collaborate with stakeholders in the EAC integration process to fast-track pending activities of the EAMU road map. The meeting was attended by Central Bank Governors of the 6 EAC member states (Kenya, Tanzania, Rwanda, Burundi, South Sudan and Uganda) and the Secretary General of the EAC Secretariat. The Governors noted that significant progress has already been made towards the operationalization of the EAMU Protocol. “Partner States’ Central Banks have made strides on harmonization of: monetary policy frameworks, exchange rate policies, rules and practices governing bank supervision, financial accounting principles, as well as payment systems. “A number of national laws are also being harmonised. In April 2018, the East African Legislative Assembly (EALA) enacted the bill establishing the East African Monetary Institute (EAMI). The EAMI bill now awaits assent by the EAC Heads of State,” noted a Communiqué that was issued after the meeting. It said that “Notwithstanding the above, Governors noted that there have been delays in realising targets set out in the EAMU road map and that there are several challenges that could further...

BUSINESS TANZANIA AND UGANDA PARTNER TO CONSTRUCT EAST AFRICA’S FIRST TRANS-BORDER GAS PIPELINE

In a move to bolster cooperation between both countries, Tanzania and Uganda have signed an agreement to construct a natural gas pipeline. This took place after a three-day Joint Permanent Commission Summit held in Kampala from August 21-23. The summit which was led by Tanzania’s Foreign Minister, Augustine Mahinga and Uganda’s Minister of Energy, Irene Muloni, was also attended by Uganda’s Ambassador to Tanzania, Richard Kabonero and officials from ministries of Defence, Energy, Trade and Agriculture, among others. This gas pipeline is a first of its kind in East Africa. Since the extraction of natural gas commenced in 2004 at the Songosongo Island in Tanzania’s southern region of Lindi, no gas pipeline has crossed East African country borders. According to the Managing Director of Tanzania Petroleum Development Corporation (TPDC), Kapuulya Musomba, the pipeline will connect Dar es Salaam, Tanga port on the Indian Ocean, and Mwanza which is a port on Lake Victoria to Uganda. Tanzania is endowed with estimated recoverable natural gas reserves of over 57 trillion cubic feet (tcf). This reserve which is mostly in offshore fields in the south of the country has been a source of attraction to a number of investors. The government is expecting to utilize this pipeline to pump its liquefied petroleum gas and make the export of the energy source easier. The success of this sector will contribute greatly to the country’s economic growth. The gas transmitted will also be used for power generation for industrial and domestic use. The Ugandan government considers the steel...