Nairobi. Full integration of South Sudan in the East African Community (EAC) has been delayed by the prevailing turmoil there. However, the regional body is optimistic that the on-going peace dialogue will see the war-wracked country settle down to business. “Despite the turmoil, the huge territory has a lot of resources. Hopefully overtime, they will settle down,” said EAC secretary general Liberat Mfumukeko. He said EAC would extend every necessary support to the current mediation efforts in collaboration with the Intergovernmental Authority on Development (Igad). The dialogue process that has been largely initiated by Igad hinges on power sharing between President Salva Kiir and his arch-rival Riek Machar. However, it is far from being concluded as the two sides continue to differ on the modalities of the set up of the proposed administration structure in which Dr Machar will revert to his vice president position. Mr Mfumukeko told reporters that South Sudan which officially joined EAC two years ago was already part of the Community although not fully integrated in many areas. It has members in the East African Legislative Assembly (Eala), the legislative arm of the Community, and a judge in the EA Court of Justice, the judicial organ. “A road map for the country’s full integration was presented and adopted during a recent ministerial meeting in Kampala,” he pointed out. South Sudan sent delegates for the first time to the just-concluded regional forum in Nairobi aimed to enhance integration of the bloc with the private sector and civil...

Nairobi. Tanzania is set to benefit from an ambitious US-led initiative to invest in gas-powered power plants in Africa. Through the initiative, US companies will invest $175 billion in gas power projects in Tanzania and eight other African countries, namely Kenya, Côte d’Ivoire, Ghana, Nigeria, Senegal, Angola, Mozambique and South Africa. The initiative is in its preliminary stages and it is not yet know which country would get how much of the planned investment. The earmarked countries were selected because of their relatively large populations, high gross domestic product and either because they have local gas resources (in operation or under development) or are planning liquefied natural gas (LNG) import projects. The initiative, known as the Gas Roadmap for sub-Saharan Africa, was launched in June at the World Gas Conference in Washington, by the US Agency for International Development’s Power Africa co-ordinator. It seeks to add some 16,000MW of gas-fired power in nine countries by 2030. “A key ingredient in Africa’s energy mix is, and will continue to be, clean natural gas. Natural gas and LNG projects have the potential to generate essential electricity quickly and at reasonable prices,” wrote Mr Rick Perry, US Secretary of Energy, in the Power Africa Gas Roadmap to 2030, strategy report. The gas roadmap is part of the Power Africa Initiative launched in 2016. Gas resources have been discovered in 14 countries in sub-Saharan Africa. Tanzania is set to benefit more because, according to reports, its undeveloped gas fields together with those of Mozambique...

Kenyan avocado producers have set sights on China and India in search of better prices amid rising competition in the traditional 28-nation European Union (EU) market. Avocado prices in the EU have fallen by more than half this year largely due to increased supply from Peru and South Africa, media reports said earlier this month. A four-kilo bag sold for between Sh471.88 and Sh589.85 (€4 and €5) compared with a range of Sh1,297.67 — Sh1, 533.61) last year. Fresh Produce Consortium of Kenya chief executive Okisegere Ojepat said the low prices had hit farmers hard after heavy rains delayed maturity of their crop leading it to coincide with Peru’s. “We are now exploring new markets in the Far East where we are anticipating the Chinese and the Indian market will open,” he said on phone. “If that happens, the issue of the (price) war in the EU will be a thing of the past.” Past attempts to access the populous Chinese market failed largely on agricultural health concerns, he said, adding that another team of inspectors has been invited to assess Kenya’s compliance with Beijing’s phytosanitary standards. “We are currently finalising, together with our regulators, the protocols to be put in place to allow Kenyan avocados to get to the Far East without having to go through a long channel where some of our crop ends up there through other markets such as the UK,” Mr Ojepat said. “That will sort us from this mess that we are in currently.”...

The Common Market for Eastern and Southern Africa (Comesa) plans to set up a team to oversee the implementation of the Digital Free Trade Area (DFTA). The DFTA is an online platform for trade facilitation comprising three segments namely electronic trade (e-trade,) e-logistics, and e-legislation. The e-trade aims at promoting electronic commerce by providing a platform for traders in the Comesa bloc to conduct business online. The e-logistics segment uses ICT as a tool to improve transportation of goods to customers, while e-legislation looks at the preparedness of countries to put in place laws that enable them to carry out e-transactions and e-payments. “The DFTA platform will enable duty-free and quota-free trading and provide an online regional market. Hence, it will empower cross border traders to do business using ICT thereby minimising physical barriers,” said the Comesa in a statement. The sub-committee, which will be made up of members of trade, ICT and other relevant ministries in member states will be charged with the responsibility of ensuring that Comesa realises the dream of achieving a digital free trade area. The decision was reached during a council of ministers meeting in Lusaka, Zambia, last week. The ministers also allowed the including of other stakeholders in the committee, including the private sector, to hasten implementation. The council instructed the Comesa secretariat to finalise DFTA gap analysis in member states by the end of this year. The DFTA will require both technological and legal inputs, especially in the fields of intellectual property, competition,...

Rwanda has officially joined Africa50, a Pan-African infrastructure platform that was created to bridge the infrastructure gap. The platform seeks to develop and invest in bankable projects, catalysing public sector capital, and mobilising private sector funding. Finance ministry’s Permanent Secretary and Secretary to the Treasury, Caleb Rwamuganza, who signed Rwanda’s membership on behalf of government, said that Africa50 provides Rwanda with a unique opportunity to pursue to key infrastructure projects. “We have several infrastructure projects in the pipeline that we hope to realise in the near future. Joining Africa50 simply takes us another step closer to that objective,” Rwamuganza said. Africa50’s primary target sectors are transport and power, which represent almost 70 per cent of projected infrastructure investment needs between now and 2025, and have a significant economic and transformative impact. Africa50 Chief Executive Alain Ebobisse said that the initiative brings together public and private sector partners to finance infrastructure development. “More than ever, Africa50 is in a position to deliver its mandate. In just two years of operation, Africa50 has brought together key players from Africa’s public and private sectors and the broader Pan-African and international development finance community,” Ebobisse said, Africa50 supports commercially sustainable projects through increasing the number of investment-ready, infrastructure projects and provide financing at earlier stages of projects. It also provides primarily equity and quasi equity with flexible exit options, while accessing preferential debt from the Africa Development Bank and development finance institutions. The third general shareholders meeting was also attended by President Uhuru Kenyatta...

Kenya must raise production standards and up its marketing to counter similar efforts by its neighbours racing for a pie of the United Kingdom (UK) market, latest trade and investment report states. According to the latest study by Overseas Development Institute (ODI) exports to the UK from the rest of the world have risen by 15 per cent in eight years to 2017. Kenya lost out on all its top three exports to the same destination during that period. “Kenya has lost its competitiveness to other countries and that has to be rectified by upping its standards, improve marketing and branding of its products as well as diversifying,” said Dirk Wellem Te Velde, principal research fellow and head of Economic Development Group. Data from International Trade Centre showed that the value of Kenya’s exports to the UK has been on decline, moving from Sh50.3 billion in 2009 to Sh37.6 billion in 2017. This is tipped to fall further should the country fail to address challenges of infrastructure, diversity and standards to ward off increasing competition. The study showed that Kenya’s share in UK imports fell from 16 per cent in 2011 to seven per cent by 2014 as vegetables and flowers lost competitiveness to neighbouring countries due to improved wages, marketing systems, diversity and standard compliance. Diversification “Lack of diversification has reduced Kenya’s competitiveness and given rise to significant competition from other African countries such as Rwanda, Ethiopia, Tanzania and Ivory Coast, all gradually eating into Kenya’s market share in...

Nairobi-based cargo carrier Astral Aviation has signed a letter of intent to acquire two Lucas-F250 drones, with plans to launch a local cargo drone network next year. The firm said the new fleet will enable it provide logistics services in aid and relief sectors, e-commerce, postal networks, medical deliveries, schoolbooks and the oil, gas and mining sectors. The airline said it plans to purchase an additional 10 drones in 2019 from Dubai-based manufacturer Falcon Drones Technology. The F-250 is an unmanned aerial vehicle with a range extending 1,500 kilometres, endurance of up to 10 hours, a cruise speed of 150 kilometres (km) per hour and maximum speed of 200km/hour. It has a cargo weight of up to 250 kilos, capacity for Euro-pallet dimensions, folding wings, a folding tail, fully autonomous take-off and landing, and Waypoint Navigation and landing. “The Falcon Drones technology is truly ground breaking. At Astral, we are delighted to have secured this order with exclusivity in Kenya,” said Astral Aviation chief executive Sanjeev Gadhia. “It brings with it the exciting prospect of further expansion in the wider East Africa region.” Mr Gadhia, said the firm will expand the drone network in phases, comprising domestic, regional and then intra-Africa deliveries with Nairobi as the central logistics hub. The second phase, targeting the eastern Africa region, will focus on point-to-point and last mile delivery within "strategic drone hubs", serving a population of 250 million people, all subject to regulatory approval. The third and final phase will extend the range...

Tanzania risks a legal suit at international tribunals over its recent investment and tax policies, which parties to Bilateral Investment Treaty (BIT) deem to be anti-business. Tanzania is among signatories to the BIT with developed countries which offers companies special protection through a dispute settlement mechanism that allows them to sue for compensation when new regulations or policies threaten their profits. The treaty does not provide for regular reviews of issues that affect profitability. If not called for review by October 1, 2018, it will be automatically renewed for another 10 years as provided for under Article 14. Observers say trouble is likely to come from The Netherlands. Civil society organisations are pushing for the review of the BIT between Tanzania and The Netherlands which they say does not serve the best interests of Tanzania. BothENDS, a Netherlands’ organisation, has teamed up with The Southern and Eastern Africa Trade Information and Negotiations Institute (Seatini), HakiMadini from Tanzania and Diakonia to lobby decision-makers in Tanzania to influence the treaty’s review. The lobbies want a rewording of the treaty to make it explicit that the intended investment promotion and protection will be pursued to the extent that it supports local development and not at the expense of key domestic development goals and public interest such as health, environment, human-rights, consumer protection, anti-corruption, consumer rights and the promotion of internationally recognised rights such as labour rights. They want the preamble of the treaty to assert the right of the state to introduce new...

Kenya, Uganda, Rwanda and Southern Sudan have already put the regional Act effect which, among other things, seeks to reduce the spate of accidents. Briefing reporters here yesterday, Permanent Secretary in the Ministry of Works, Transport and Communication Joseph Nyamhanga said the new regional Act embodies many new aspects, unlike the existing one. He was speaking at a forum aimed at imparting knowledge and awareness about the new regulations to heads of key stakeholders in the transport industry from both private and public sectors. "Before the Act comes into effect, we have seen the need to educate you about it and its relevant regulations, hoping that you will also bequeath the knowledge to others in the transport industry," he said. He urged experts with the Tanzania National Roads Agency (TANROADS) to continue disseminating education and knowledge on the fresh vehicle load control regulations to all transporters countrywide. Dwelling on impending changes after the Act and its regulations come into effect, he said offenders will be fined up to $15,000 or three years’ imprisonment in default. "This is why we have set ample time of at least four months in order for all transporters in the country to read between the lines and understand them well since we will not entertain any excuses when the Act and regulations come into force," he cautioned. Elaborating, he said according to the new regulations, limitation of weight in axle of super single tyres has been set at 8.5 tonnes instead of the current 10...

Please fill in this survey to help us better serve you. Loading...