Tanzanian President, Dr. John Pombe Joseph Magufuli has advocated for industrialisation, infrastructural development and revitalisation of the energy sector in the region. He cited infrastructural developments and the revitalisation of the energy sector as key ingredients to speeding transformation.  He expressed concern about the high cost of transport and energy, saying it results in situations where the costs of travel had scaled up almost four times in comparison to other regions. Magufuli was addressing the East African Legislative Assembly in Dodoma, Tanzania on Tuesday, a press release said. According to findings by Power Africa in 2015 results show the region only has 6500MW which cannot entirely support the region’s development. In that regard, the President called for other alternatives to be sought. “We must reverse the trend and assist the region.  I challenge you Mr Speaker and Members to see what you can do,” he said. He revealed that natural gas and the rare helium gas were available in Tanzania and said such benefits should for example be spread across the entire region. The President said the alternative energy initiatives would assist boost the national grid adding an additional 2100 MW which would be sold in the region.  “As Tanzania, we shall do our part,” he said. The President rallied for the industrialisation and infrastructural development of the region, saying it held the key for the transformation of the United Republic of Tanzania and the entire region. The President said time had come for the region to “think big and...

BUSIA, KENYA: The East African Community and the Kenyan government have established simplified guides aimed at improving cross border trade among millions of women from member states. The guides provide relevant information on existing policies, procedures, requirements, rules of origin, taxes, tariffs, exemptions and facilities available to cross border traders such that they can ably trade within the region. The guides, according to Samwel Mwangi, Senior Assistant Director for Regional Integration, was established following the information gaps and numerous challenges faced by women that have been a stumbling block denying them opportunity to trade freely. “The main challenge has been the information gap. Most of them do not know the privileges they have and some of the laws that usually favour them. This has made many not thrive in their business,” said Mwangi. Studies have shown that there are about 16 million traders in the EAC region of which 70 per cent are women dealing with primary stable and agricultural commodities. “Cross border traders are significant players in feeding this country. Majorly trade in cereals and other foodstuffs which are essential in stabilizing food supply in Kenya.” The launch, coming few weeks after establishment of a one stop border post in Busia and other border points, was done in Busia by the East Africa Community, the Kenyan government’s ministry of EAC and Nothern Corridor aimed at empowering women doing small scale businesses in the states within the region. The once stop border post has brought in some tangible achievements to...

Rwanda coffee farmers for the first time exported ten tonnes of roasted coffee beans to the United States. Officials from National Agricultural Export Development Board (NAEB) said it is the highest shipment from Rwanda saying that it adds value to the sector’s development as previously exports were washed green coffee. Sector experts say that 10 tonne shipment generates more value as its processed compared to washed green coffee. Eric Rukwaya, the Sales and Marketing Manager at Rwanda farmers Coffee Company (RFCC), said that if the exports were green coffee, it would have had a value US$42,000 (Rwf35,000,000) compared to U$77,000 (Rwf66, 177,000) generated. The shipment is the first following a five-year coffee business agreement partnership signed in February 2018 between Rwanda Farmers Coffee Company (RFCC) and the Global Food of USA, facilitated by National Agricultural Export Development Board (NAEB). The partnership was developed to support the ‘beyond fair-trade’ business model whereby farmers share in the value of each sales of roasted coffee. The business partnership between Global Food and RFCC was negotiated beginning 2016 with the terms including establishment of Global Food operational offices in Kigali to supply of over 36 tonnes of roasted coffee to the American Market. Rwanda Farmers Coffee Company is a coffee roasting facility located in Kigali with a mission to retain a value from the coffee chain for farmers’ livelihood improvement and Rwanda coffee sector development. Rukwaya said that other significant trade volumes of roasted coffee by the RFCC were recorded in 2015 whereby seven...

Eastern Africa Grain Council (EAGC), in partnership with the USAID East Africa Trade and Investment Hub, on Monday launched nine East African Standards for staple foods. The nine priority product standards reviewed were for maize (grain), wheat, milled rice, dry beans, dry soybeans, maize flour, wheat flour, sorghum flour and millet flour. Among other aspects addressed through the revision of the standards were aflatoxin, moisture content levels and discolouration of grains. The nine product standards for staple foods and two standards for sampling and test methods are expected to become legally binding in all EAC partner state in June 2018 and could increase grain trade between Rwanda and the rest of the East African region, according to EAGC. Speaking at the forum, the EAGC executive director Gerald Masila said smooth adoption and application of the gazetted standards would see farmers accessing better and greater markets within the region, while consumers would be provided with safe and high-quality food grain products. “The launch of the standards in all EAC countries is meant to ensure a level playing field in the sector and minimize the risk of food shortage in the region by allowing easy movement of grains across states, as well as providing ready market access for farmers in the region,” he said. He added that the survey, conducted by the EAGC in 2013, revealed that safety and quality requirements, sampling and testing methods were key constraints limiting the realisation of structured grain trade within the region. Following the gaps identified...

Improved efficiency and enhanced capacity at the Port of Mombasa holds the key to positioning Kenya as Africa’s industrial hub, logistics experts say. This is particularly the case with the proposed creation of a free-trade zone on the continent, they add. Kenya has been on the frontline in pushing for implementation of the proposed African Continental Free Trade Area (AfCFTA), becoming among the very first nations to offer legal backing to the treaty through a Bill in the National Assembly. AfCFTA is expected to establish a single market with duty-free access among traders in Africa in a bid to spur industrialisation, infrastructure development and economic diversification across the continent whose market is estimated in the upwards of 1.2 billion people. “About 80 per cent of trade will go through the port and if those ports are not as efficient or reliable as they could be, then it will have a direct impact on your competitiveness as a country and the price of goods coming into the country,” said Andrew Shaw, the lead transport and logistics consultant for Africa at PricewaterhouseCoopers (PwC), in a recent interview in Nairobi. “Ports can be the bottlenecks, but they can also be the conduits to enhancing trade for countries and regions.” Africa has been tipped as the next destination for global industrialists fleeing rising operating costs in China, offering Kenya an opportunity to position herself as a cost-effective location. The World Bank Group in 2011 estimated that about 80 million jobs were likely to leave...

In a bid to keep cargo dry and safe during the rainy season, haulage companies prefer using detachable drop sides, which are efficient for transporting loose bagged goods. Studies show tarpaulins, a heavy-duty waterproof clothe used in drop sides are useful for keeping hold of loose bulk cargo that might be affected by the movement of the truck. “They are efficient when a company is moving loose cargo such as packages and pallets when there is heavy rain like now. It allows the use of tarpaulin as it also holds the cargo in place, thus they will not get wet or damaged. At the moment we are not using the drop sides but we had them last year when transporting bagged cargo,” said Transeast, a heavy haulage and transport company with a fleet size of over 130 trucks. The firm has operational bases in Kenya, Uganda, Tanzania and the Democratic Republic of Congo. “We detached from the trailers because we did not have specific cargo for their use. With containerised cargo, we are using the same trailers but with no drop sides, just flatbed trailers,” the firm said. According to a study on the performance standards for the safe carriage of loads on road vehicles, drop side trailers are useful in transporting loose bulk goods as they enable easier loading. “Loose bulk loads include quarry products, primary produce and demolition and waste material. These can be carried in tippers, drop-sided vehicles and tankers,” read the report. “Tarpaulins also act as...

A vessel carrying over 6,000 twenty foot equivalent units (Teus) docked at the Mombasa port on Monday, signalling an era of growth in trans shipment business at the facility. Liberian flagged Mv MSC Portugal which has a capacity of 6,550 Teus is 304 metres long, 40 metres wide with a depth of 14.5 metres and is one of the largest vessels to call at the port. The arrival of the vessel was a culmination of marketing efforts in Europe, Middle East and Asia following expansion of capacity at the facility, said William Ruto, the Kenya Ports Authority (KPA) general manager operations and harbour master. “When a large vessel calls at a port there is the advantage of economies of scale because it is economical for shipping lines to operate one big vessel to a region than send several ships with low capacity. Once containers are offloaded in Mombasa smaller vessels will be used to distribute cargo to other ports within the region,” he said. When shipping lines move huge volumes of cargo using one vessel, there are lower running costs with shippers offering competitive freight rates. Mr Ruto said they expected ships with a higher capacity to keep calling at the port after expansion of the terminal and deepening of the harbour to accommodate larger vessels. The KPA targets to increase transshipment business from the current two per cent of total cargo handled to about 10 per cent in 2025. With the port handling 27 million tonnes in 2017, this...

The future of Kenya’s trade with the European Union looks bleak, with the country staring at Brexit uncertainties and unwillingness by East Africa Community members’ to ratify the Economic Partnership Agreement. While the country’s trade has been gravitating towards the East in recent times, President Uhuru Kenyatta recently pitched tent in the United Kingdom in what was seen as a fence mending visit to the region that has been Kenya’s biggest export market for a long time. Kenya’s imports from the EU bloc continued to decline for the second consecutive year, dropping to Sh206.5 billion last year. The value of imports from the two leading source countries— Germany and UK— jointly declined by five per cent to Sh73 billion in 2017. According to the Kenya National Bureau of Statistics' latest Economic Survey Kenya’s exports to Europe rose by 3.6 per cent to Sh125.6 billion in 2017. This constituted only 21.1 per cent of total exports. The value of total exports to Netherlands, United Kingdom, France and Belgium went up, jointly amounting to Sh96.2 billion in 2017, up from Sh92.9 billion in 2016 while that of Pakistan alone went up from Sh40.3 billion in 2016 to Sh64.1 billion in 2017 A notable decline was also recorded in value of imports from Italy at 5.7 per cent. Spain, Denmark and Ireland recorded 5.7, 11.5 and 53.1 per cent drop respectively. Only import volumes from France, Netherlands and Belgium went up during the year The value of imports from the Far East and...

Project is part of TMA’s USD 50Million programming in Rwanda and will cost USD 14.2 Million Will focus on developing port facilities at Karongi, Rusizi and Rubavu and attract private sector investment to operationalize passenger and cargo ferry services on Lake Kivu Kigali, 30th May 2018:  TradeMark Africa (TMA) and Rwanda Transport Development Agency (RTDA) unveiled plans to commence on a project that will improve water transport on Lake Kivu, through interventions at Karongi port, Rubavu port and Rusizi port. The project will be part of TMA’s USD50Million programme in Rwanda and will cost USD14.2Million. It will be completed by 2023. The intervention is part of TMA’s pledge to support the Government of Rwanda to enhance water transport on Lake Kivu by constructing harbour facilities in the three port towns of Rubavu, Karongi and Rusizi, attract private sector investment to operate ferry services and streamline the regulatory and institutional framework required for ferry operations on the lake. Funding for this transport project was provide by United Kingdom’s Department for Foreign International Development (DFID) and Embassy of Belgium through TMA. Interventions will result to modern facilities for cargo and passenger handling. Specifically, there will be construction of vessel terminals, warehouse, access roads, parking Areas, administration buildings; service utilities such as water supply, electro-networks, fencing and any other required facilities; and development of inland water ways. Economic benefits will accrue to all port users which will result in increased trade. Businesses will enjoy a reduction of costs incurred when transporting goods along...

Rwanda and the Kingdom of The Netherlands have pledged to maintain strong ties with emphasis on investment, officials from both countries have said. They were speaking during celebrations to mark the Dutch King’s Day at the Ambassador’s residence in Nyarutarama, a Kigali suburb. Over the years, several Dutch companies have invested in Rwanda, including Heineken, Royal DSM that holds the majority shares in Africa Improved Foods Company, Unilever in Tea processing and KLM Airlines. Also, a recent Horticulture investors’ conference led to a contract between a Rwandan horticultural company and their Dutch counterparts to supply year round fresh vegetables. The Dutch envoy to Rwanda, Fredrique de Man, said that there is need for the two countries to further strengthen their cooperation on trade and investment. “These are exciting times for doing business in Rwanda. And at the embassy we are looking forward to remain in constant dialogue with the Rwandan authorities and the business community on intensifying our commercial exchanges and on the transparency, clear procedures, the level playing field and the innovation and creativity needed to achieve this.” “At the same time, we highly value the great work of civil organisations who keep us, Rwanda and the Netherlands, ‘awake’ on a wide range of societal challenges,” she said. In his remarks, Olivier Nduhungirehe, the Minister of State at the Ministry of Foreign Affairs, Cooperation and East African Community, commended the Dutch support in Rwanda’s development over the last 24 years and pledged continued commitment in the cooperation. “Rwanda and...