When East African countries announced a ban on the import of secondhand clothes to help their own textile industries, this irked US President Donald Trump. All but Rwanda have now backtracked. What's at stake? It's one of US President Donald Trump's trade wars that makes few headlines: The one over used clothes. In 2016, member states of the East African Community (EAC) came up with a plan to ban secondhand clothes and shoes by 2019. The EAC doubled a common external tariff rate for worn clothing to $0.40 (€0.34) per kilogram. Rwanda increased its per-kilogram import tax to $2.50. Trump threatened to retaliate, saying the tax goes against the African Growth and Opportunity Act (AGOA). At the end of March, Trump announced he would suspend the application of duty‑free treatment to all AGOA-eligible goods in the clothing sector for the Republic of Rwanda within 60 days. Rwanda didn't budge and let Trump's deadline run out last week. That means the US is now likely to impose tariffs on textile products and shoes from Rwanda. "Legally speaking, the US has the right to impose a penalty because, within AGOA, Rwanda is supposed to remove all barriers to US goods," Christopher Kayumba, an analyst and senior lecturer at the University of Rwanda, told DW. "But the spirit of AGOA is to help poor countries to evolve," he added. "I was surprised that a country as big and rich as the US [would] insist on exporting its secondhand clothes to a poor country like Rwanda," he said. Hampering Rwanda's development "We...

For many Americans, coffee is less of a luxury drink and more of a daily necessity. As of 2018, 64 percent of Americans consume at least one cup of coffee daily. East Africa, one of the world’s largest coffee producers, is a historically poor region that has seen recent growth in trade due to the growing demand for coffee and support given to its farmers from U.S. foreign aid. These factors are supporting the East African coffee market. An Expanding Global Market East African coffee market expansion is the result of a few recent developments. First, the global market for coffee has been expanding as more people are escaping poverty and gaining the means to afford coffee. For example, some of the fastest-growing markets for coffee include Asian countries on the rise such as Vietnam, Indonesia and India. Due to the expanding coffee market, East African coffee producers can expand their business and look to the future with optimism.  Ugandan coffee producers are explicitly targeting these new markets. In 2017, the country reported a 36 percent growth in production and a 15 percent growth in exports. This fivefold increase in their share of the global coffee market is a direct result of new regions of the world being able to buy their product. In this way, reducing global poverty has a ripple effect that expands the global market and benefits everyone. The Benefits of U.S. Foreign Aid On top of the growing market, U.S. foreign aid has been helping to...

The 2018/19 budget is a step-down from the $110,130,184 presented to the House in the previous financial year. The EAC has presented for consideration budget estimates for the financial year 2018/19, totalling $99,770,716 (about sh379b) to the East African Legislative Assembly (EALA). The chairperson of the EAC council of ministers, and Uganda’s 2nd Deputy Prime Minister, Ali Kirunda Kivenjija, presented the budget to the assembly in Arusha Tanzania. The 2018/19 budget is a step-down from the $110,130,184 presented to the House in the previous financial year, a statement issued yesterday said. According to Kivejinja, priority Interventions for 2018/19 will focus on enhanced free movement of goods in the region and further liberalization of free movement of labour and services; improved cross-border infrastructure to ease cost of doing business in the region; and enhanced regional agricultural productivity. Other priority interventions include enhanced industrial development through investment in key priority sectors including leather and textile; skills development, technological advancement and innovation to stimulate economic development. The implementation of the roadmap for the attainment of the EAC Monetary Union; strengthened Peace, Security and Good Governance and Institutional Framework for EAC Political Confederation are also set for consideration. The 2018/2019 Budget is allocated to the Organs and Institutions of the EAC as follows; East African Community Secretariat ($46,693,056), East African Legislative Assembly ($17,885,852) and the East African Court of Justice ($3,982,446). The Inter-University Council for East Africa shall receive ($6,847,969), Lake Victoria Basin Commission ($13,357,673) while $ 2, 518,137 is earmarked for the Lake...

When you hear about Kenya, experiencing elephants, giraffes, lions and the like in the wild is certainly one of the first things to pop into your head. For Hapag-Lloyd, this African country and its port city of Mombasa are also becoming increasingly important in commercial terms. After Nairobi, the capital city, Mombasa is the second-largest city in Kenya and home to the most important port in East Africa. The main part of the city is located on Mombasa Island, directly on the Indian Ocean. Roughly a million people live in this colorful and lively city, which was founded by Arabs in the 11th century and gained its independence from Britain in 1963. Surrounded by white sandy beaches and azure-blue water, Mombasa is a breathtaking holiday destination. While tourism continues to increase, there has also been growth in industry and the export of tea and coffee. As a result, Kenya’s real gross domestic product (GDP) is expected to increase by around 5.5 percent from 2017 to 2018. The Port of Mombasa has been part of Hapag-Lloyd’s new East Africa Service (EAS) since April 2018. This service connects the Saudi Arabian port city of Jeddah with Mombasa and the Port of Dar es Salaam in Tanzania, thereby expanding Hapag-Lloyd’s global network. Kenya Ports Authority (KPA) manages the Port of Mombasa. This is the first port of call of the vessels and has good connections to the interior of the country. For example, Kenya Uganda Railways is used for the onward transport of...

The Building and Construction Industry in East Africa is witnessing a continuous growth and as a result driving up numbers in employment and productivity, experts have said. According to East Africa BUILD, the growth and getting more international exposure as the Governments and Trade Associations have boosted the confidence of international investors in the region which is a significant driver of economic activity and development. "East Africa's growth in the building & construction sector drives employment and productivity, which in turn encourages government investment in quality infrastructure projects. As East Africa's population continues to grow, now more than ever, it needs quality infrastructure." A statement from the firm adds. The African Construction report by Deloitte, states that the number of construction projects in East Africa have gone up by 65.1% between 2016 and 2017 while the increase in the total value of projects has been much lower, but still considerable at 20.7%. A brand new industry-owned trade show for the building & construction industry has been announced by a team of individuals with over 15 years of experience and it will be held for the first time in September 2018 in Tanzania. The event, which will be held from 20 - 23 September this year, at the Mlimani City Conference Centre, Dar es Salaam, Tanzania is expected to have over 200 foreign and local exhibitors from over 19 countries which include Turkey, China, India, U.A.E, Germany to name a few. East Africa BUILD will be the ideal platform for local...

LOKICHAR, TURKANA COUNTY, KENYA–President Uhuru Kenyatta over the weekend flagged off the first consignment of crude oil destined for export from Kenya. With Oil  billed to becoming a major contributor to the nation’s economy, the President flagged off trucks loaded with crude oil from Ngamia 8, in the Turkana oil fields as part of the Early Oil Pilot Scheme. “A great day for Kenya,” the President wrote in the visitor’s book on arrival at Ngamia in the Turkana heartland. Kenya is using the Early Oil Pilot Scheme, which will soon be followed by the Full Field Development phase, to establish itself as a crude oil exporter in the region and provide valuable information for future exploration and development. “This flag-off event and the anticipated implementation of the Early Oil Pilot (EOP) Scheme marks the beginning of a long and fruitful journey,” said President Kenyatta when he spoke after flagging off the crude oil laden trucks. The President, who was accompanied by Deputy President William Ruto, said what Kenya stands to gain from the production and exportation of petroleum products cannot be understated. He said the production of petroleum products will strengthen the existing economic and commercial partnerships and enhance the opportunities for growth and investments within the country. “My Government will therefore focus on the development of our oil and gas sectors for the betterment of the economy and people,” said the President. The President said the initial petroleum exports will complement the country’s existing development projects under the BIG...

Works on a 250-metre bridge linking the port of Mombasa to the standard gauge railway (SGR) Mombasa terminus is complete in an upgrade that will drop the use of trucks to feed goods from ships to the rail. The bridge will connect with a 2.7-kilometre rail extension from SGR terminus to shipping cargo dispatch bays. This will remove the need to use road trucks in what is expected to lower cost of transport and swiftly move goods on SGR. “Construction works on the cross-bridge connecting the port of Mombasa and the standard gauge railway at Mombasa terminus is complete. The 250-metre radius bridge is part of the 2.726 km SGR Port Relief Line that will cover 10 berths at the Mombasa Port,” said China Communication Construction Company in a statement Monday. The move is aimed at facilitating easier movement of bulky and heavy goods such as clinker, steel, iron and cement into the SGR. The 10 berths are currently connected to the SGR terminus via a road. The Kenya Port Authority have been offloading goods via cranes and transporting them via trucks to the SGR line. The SGR freight service, which  started operations last December, has struggled to find  more customers despite rock bottom prices. It is currently charging freighters a flat fee of Sh35,000 for a 20-foot container and Sh40,000 for a  40-foot type from Mombasa to Embakasi Inland Container Depot (ICD). It also charges Sh25,000 to transport a 20-foot container and  Sh30,000 for  a 40-foot container from ICD...

Kenya has launched a pilot scheme to export crude oil via Mombasa as part of efforts to capitalise on the country's oil reserves. The East African country discovered commercial oil reserves in its Lokichar basin in 2012 and a 800 km (500 mile) pipeline is due to be built before production starts up in 2021/22. The national government and the regional administration of the northwestern Turkana region agreed last month on revenue sharing that will come into force when production reaches full capacity by 2022. That agreement paved the way for the passage of a law on petroleum production, which will enable Tullow Oil - which operates the Kenyan fields - to start shipping oil that has been held in storage tanks for a year. "The benefits of the project will be shared and no one will be left behind," Deputy President William Ruto said at the launch of the export initiative under which 2,000 barrels will be transported to Mombasa by road for shipment each day. Tullow has hired Wood Group to design the pipeline needed to bring crude from Lokichar's onshore fields to a port in Lamu along the Indian Ocean coast. The cost of the pipeline is estimated at $1.1-billion, with a further $2.9-billion needed for upstream operations, the company says. Tullow has said the Amosing and Ngamia fields in the basin have estimated contingent resources of about 560 million barrels, with plateau production potentially reaching 100 000 bbl/d. Source: Engineering News

The Port of Mombasa has received four new eco-hoppers supplied by a UK-based company, Samson Materials Handling. "They were procured by Trademark East Africa (TMA) on behalf of KPA at a total cost of US dollars 6,206,024," Kenya Ports Authority(KPA) said in a communication. Speaking while witnessing the offloading of the eco-hoppers at Berth No. 5, KPA General Manager Operations and Harbour Master Captain William Ruto, said the acquisition of the equipment means cargo discharge rate at the Port would improve from the current 3,000 tonnes per day per ship to 10,000 tonnes. The successful delivery and discharge of the eco-hoppers completes in part the implementation of the Green Port Policy developed and adopted in 2014/15. The use of eco-hoppers in handling dirty import cargo such as clinker, coal and gypsum is chief among KPA's initiatives in furtherance to its stated core values including care for staff and communities while being sensitive to the environment. "The state-of-the-art eco-hoppers are mobile power-driven units with crabbing functionality to enable specific positioning of the hoppers alongside the ship. On top of the 6m x 6m eco hopper inlet grill is a 2m high shroud which creates a mouth of 8.2 x 8.2m for grab discharge thus mitigating the effects of high winds," KPA said over the weekend. Each eco-hopper sits on a frame adding up the total height to 15.7m permitting a comfortable truck drive-through clearance of 4.2m. Source: Hivisasa

Rwanda, Tanzania and Uganda are the key destinations for high-skilled Kenyan migrants, attracted by opportunities in financial, IT, engineering and hospitality sectors, a new UN report showed. The United Nations Conference on Trade and Development (UNCTAD) said labour shortages in information technology, engineering, finance, hospitality and management in some regional markets in Eastern Africa have fuelled migration of professionals from the region, some of them young. “Rwanda is a major destination for migrants from Kenya and Uganda and has attracted highly skilled professionals. Its burgeoning information technology sector has driven labour mobility among young highly skilled migrants from Kenya, who have taken advantage of economic opportunities in the sector, and demand in financial services and other skill-intensive sectors in Uganda and the United Republic of Tanzania has also fuelled mobility among professionals from Kenya” the agency said. Mutual recognition agreements between various professional bodies within the East African Community (EAC) allow for cross-border practices among professionals and accord experts from partner States in accounting, architecture, dentistry, medicine and engineering to the same treatment as nationals. “Such agreements, along with the abolition of work permits by some EAC partner States, have been vital in facilitating labour mobility among highly skilled professionals within the region. Regional investment in economic sectors, besides creating labour demand in specific sectors, has also become an important driver of intraregional economic migration” UNCTAD noted. Highly skilled migrants tend to earn relatively high incomes in destinations. “For example, skilled Nigerian migrants in Ghana and South Africa have household...