The East African Community is prioritising infrastructure development in the next fiscal year, signalling a break from a three-year lull blamed on the Covid-19 pandemic. The EAC on Tuesday tabled before the East African Legislative Assembly (Eala) budget estimates totalling $103,842,880 for 2023/2024, out of which 43 percent ($44 million), funded by development partners, will be used on infrastructure projects to spur intra-EAC trade, which increased by 13.4 percent to $74.03 billion in 2022 from $65.268 billion in 2021. The bloc has this year secured funding for road projects connecting Kenya and Tanzania though Lunga Lunga; Tanzania to Burundi through Kasulu; and Kenya to Uganda through the Busia border. It has also prioritised railway, air and water/port transport. “The secretariat will continue implementing successor multinational road projects linking partner states and the Phase II OSBP (One Stop Border Post) programme including the design, construction and operationalisation of prioritised OSBPs within the region to enhance regional integration and trade facilitation,” said council chair, Burundi’s minister for EAC affairs Ezechiel Nibigira. The Kenya-Tanzania road sections are in different stages of completion after the two governments secured €375 million ($410 million) from the African Development Bank (AfDB) and the European Union (EU). But some remaining sections still need funding to connect the entire stretch of the coastal corridor. “Construction of the multinational Tanzania/Burundi road: Kabingo-Kasulu-Manyovu (260 kilometres) in Tanzania and Gitaza-Rumonge (45km) in Burundi is ongoing following Burundi and Tanzania securing financing amounting to $322.35 million in the form of grants and loans from...

In Summary New market offers a safe business environment for cross-border traders in Busia The outbreak of the Covid-19 pandemic in 2020 took a huge toll on women traders A new market has been opened in Busia to facilitate business between traders in Kenya and Uganda. The Sh40 million market comes as a relief to women traders who were hit hard by the Covid-19 pandemic. Busia Governor Paul Otuoma on Tuesday said the investment will go a long way in ensuring a safe business environment for cross-border traders. “What we want are innovative solutions to economic challenges facing our people,” he said. The market is an initiative of the county government of Busia, the Ministry of East African Community Affairs, TradeMark Africa and development partners. “We are grateful for the support because all this is geared towards providing safe spaces for our people especially in trade,” the county chief said. The construction of the market started in July 2021 as part of the Safe Trade Emergency Facility. TradeMark Africa implemented it together with the Busia government with funding from Canada, Ireland, the European Union and Denmark. The outbreak of the Covid-19 pandemic in 2020 took a huge toll on local and international trade. Informal cross-border traders, particularly women, were hard hit. The effects of the pandemic led to a drastic reduction in business operations on the border. Traders recorded up to 90 per cent income losses that resulted from stringent government-enforced restrictions of social distancing to combat the spread of...

Startups, micro, small, and medium enterprises (MSMEs) will benefit from an app aimed at facilitating access to markets and networks for women traders. The platform, called Isoko, will operate in the Mt Kenya region, helping women trade with ease across counties. During a sensitisation workshop in Nyeri for traders in Nyeri, Laikipia, Kirinyaga, and Muranga counties, Communication Specialist Rachael Wangechi said the platform is targeting women traders, light processors and manufacturers, and producer women groups. "Isoko is an integrated platform that enables users to access everything they need in one place and learn more," she said. Networking Wangechi further said the application offers various features to assist entrepreneurs, including the ability to upload their products and services, place orders, manage bookkeeping, calculate taxes, and exchange currencies. "You can utilise your phone to access markets, information, service providers, and network with other traders in Kenya," she said. She added that through the news segment, one can explore opportunities to unlock the potential of their business. "Our trade regulations module ensures that you remain compliant with the latest regulations, while our value-added services grant you access to essential services such as banking and logistics providers," she said. The mobile app was launched in March and has since expanded its services to various countries, including Kenya, Uganda, Tanzania, with plans to further extend its reach to Rwanda and Burundi. Online business Martin Ndirangu, CEO of the Nyeri chapter of the Kenya National Chamber of Commerce and Industry (KNCCI), expressed his appreciation for the...

Accra, 18 June 2023: – The African Export-Import Bank (Afreximbank) today in Accra launched its wholly owned insurance management services subsidiary, AFREXInsure, with a commitment to provide a single-entry point for all specialty insurance needs to assist in optimally managing related risks for the trade and commerce sector in Africa. Established in 2021, AFREXInsure is set up to offer specialty insurance solutions for trade and trade-related investments across Africa with access to quality, best-in-breed specialty insurance that are tailor-made for Africa. With credible knowledge of Africa, AFREXInsure will leverage on its risk expertise by using its continent-wide presence and deep understanding of the African market to provide solutions around cargo handling, construction, operations and energy – sectors critical for the growth and establishment of trade and investment intercontinentally. Speaking during the launch, which took place on the sidelines of Afreximbank’s 30th Anniversary Annual Meetings, Kanayo Awani, Executive Vice President, Intra-African Trade Bank, speaking on behalf of Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, said that AFREXInsure was established to facilitate the insurance of specialty risks in order to support businesses in Afreximbank member countries to mitigate the problem of Africa having to rely on external partners to architect the continent’s economic resilience and development. “By reducing the risk of transactions or investments, insurance can help drive forward business strategy for those engaged in intra-African trade and enable global partners to further their commercial interests and ambitions in Africa,” said Ms. Awani. Insurance penetration is relatively low...

The EU and Kenya have announced today the political conclusion of the negotiations for an Economic Partnership Agreement (EPA). The Agreement will boost trade in goods and create new economic opportunities, with targeted cooperation to enhance Kenya's economic development. It is the most ambitious EU trade deal with a developing country when it comes to sustainability provisions such as climate and environmental protection and labour rights. The negotiations were concluded during an official ceremony in Nairobi by European Commission Executive Vice-President and Commissioner for Trade Valdis Dombrovskis and Cabinet Secretary of Kenya's Ministry of Investments, Trade and Industry, Hon. Moses Kuria, in the presence of Kenyan President Dr. William Samoei Ruto. The EU is Kenya's first export destination and second largest trading partner, totalling €3.3 billion of trade in 2022 - an increase of 27% compared to 2018. The EPA will create even more opportunities for Kenyan businesses and exporters, as it will at once fully open the EU market for Kenyan products, and it will incentivise EU investment to Kenya thanks to increased legal certainty and stability. Kenya has a pioneering role in sustainability efforts on the African continent and is a reliable ally in the fight against climate change. It co-leads the Coalition of Trade Ministers on Climate initiative launched earlier this year, together with the EU, Ecuador and New Zealand. The EU-Kenya EPA builds on this strong track record and is the first agreement with a developing country in which the EU's new approach to trade and sustainable development...

NAIROBI, Kenya - The EAC region still faces fresh trade challenges, despite eliminating ten trade restrictions East African Community Partner States resolved a total of 10 Non-Tariff Barriers (NTBs) as four (4) new ones emerged. This was revealed during the 42nd Meeting of the Sectoral Council of Ministers on Trade, Industry, Finance and Investment (SCTIFI) that recently took place at the EAC Headquarters in Arusha, Tanzania. The ministers were briefed that eight NTBs remained outstanding and were at different levels of resolution. The Ministerial Session of the 42nd SCTIFI that was chaired by Burundi’s Minister of Trade, Transport, Industry and Tourism, Hon. Marie Chantal Nijimbere, consequently directed Partner States to resolve all outstanding NTBs. During the minister’s meeting South Sudan was accused of still charging EAC citizen’s visa fees, specifically those from Rwanda and Burundi, with EAC citizens who had travelled to the country complaining of visa charges at Juba International Airport. The meeting further directed Partner States that still impose visa requirements on EAC citizens to remove the requirement by November 2023. The Ministers expressed concern that Partner States still impose visa requirements on EAC citizens and emphasised the need to expeditiously remove the requirements, adding that such requirements could also hinder access to the African Continental Free Trade Area (AfCFTA). The meeting observed that it was high time the Community considered putting in place a borderless bloc to facilitate the smooth flow of capital services and goods. Among the resolved NTBs were a 25% excise duty imposed by Kenya on...

The Ugandan government, through the Ministry of East African Community Affairs, has expressed concern about South Sudan’s decision to impound its maize flour due to allegations that it is contaminated with aflatoxins. Uganda has also requested that the dozens of trucks impounded at the Elegu border post while transporting the said maize flour be released. Reports indicate that in the past two weeks, over 40 Ugandan registered trucks transporting maize flour have been impounded on their way to Juba by South Sudan Bureau of Standards.  It is said that these trucks are held up in an isolated parking yard 7kms into South Sudan and the major reason for impounding them is that they are carrying aflatoxin affected maize flour which is not fit for human consumption. In a letter by Edith Mwanje, the permanent secretary of the Ministry of East African Affairs in Uganda to her counterpart Andrea Aguer Ariik Malueth of South Sudan, she noted that they had been informed that the impounded consignments failed to pass the rapid tests which were conducted at Nimule border and they await confirmatory results as samples have been exported for further investigation.  “However, there is no clear time line as to when the confirmatory results shall be available,” she said. Mwanje further pointed out that it is now over two weeks since the first consignments was impounded and this is fuelling a strike by the affected parties at Elegu-Nimule border. In order to solve the impass, Ugandan authorities have asked their counterparts...

The United Natioms General assembly adopted a resolution in 2018 declaring June 7th as the World Food Safety Day (WFSD) celebrations. This annual event aims to raise awareness of food safety’s  importance and promote action to prevent, detect and manage foodborne risks. In commemoration of the 2023 World Food Safety Day (WFSD), the African Union Commission, East African Community, the Government of Kenya, TradeMark Africa, MESPT, and Partners organized an event from 5 to 7 June 2023 in Nairobi, Kenya to raise awareness on food safety. The meeting was held under the theme “Food Standards Save Lives”. The objectives of the summit were to: i.         Raise awareness of the importance of food safety and to promote action to prevent, detect, and manage foodborne risks. ii.         Provide a platform for sharing experiences and best practices on implementation and compliance with food safety standards and measures. iii.         Foster collaboration and partnerships among stakeholders to amplify the impact of food safety interventions in Africa.The Summit brought together 220 participants from 30 African Union member states, 2 RECs (EAC, ECOWAS), AUC, and Development Partners (EU, USAID, DANIDA).WE the Member States of the African Union, Regional Economic Communities, Development Partners, Food Producers, Processors, Marketers and Consumers. RECALLING the momentum created from the previous World Food Safety Day celebrations, and desirous of collaborating in unison to focus efforts on reaching state and non-state actors as well as those directly involved in food systems on...

Minister of Commerce, Trade and Industry Chipoka Mulenga says government is coming up with a facility that will allow trade between government and the private sector to be done on digital e-Commerce platforms. Mr. Chipoka says digitisation of businesses is critical in providing ease of doing and limiting the cost of doing business. The commerce minister disclosed this during a Roundtable discussion dubbed “Accelerating the Recovery of COMESA Member States from COVID19 focusing on Green Investment, Value Addition and Tourism” He added that digitisation and the use of e-Commerce in doing business further limits human interaction which also results in stopping corrupt activities. “We believe that digitisation of how we do business is critical on how we provide ease of doing business, limiting the cost of doing business and limit also, human interaction which also results in stopping, to a large extent, corrupt activities in government. We are also coming up with a facility where trade between government and the private sector should be done on a digital e-Commerce platform where there is no acquisition of delays coming in from human activities,” said Mr. Chipoka. He added that the COVID19 pandemic that affected many African countries reminded most African governments of the need for homegrown solutions to socio-economic challenges. Mr. Chipoka said it was against this background that government deliberately established the Ministry of Science and Technology stressing that innovation is something that societies have to depend on. He said in order to achieve digitisation, government has chosen a principle...

Kenya’s Cabinet Secretary in charge of East African Community Affairs Rebecca Miano says she has held talks with her counterpart in Tanzania over the export crisis at the Namanga border, where more than 200 maize-laden trucks were stranded over permits, and a solution is on the cards. Miano told The EastAfrican on Thursday that she had been in talks with Stergomena Tax, Tanzania's Minister for Foreign Affairs and East African Cooperation, to unlock the impasse at the border, which has lasted over two weeks. Trucks loaded with maize from Tanzania were barred from crossing into Kenya after the Tanzanian authorities stopped issuing maize exportation permits. Cross-border importers have termed the change in policy by Dodoma as a re-emergence of non-tariff barriers (NTBs), especially on food trade, even as the Community continues to seek resolution to these challenges. “Tanzania changed its rules on maize exportation. This caused a problem in Namanga,” Miano said on Thursday. The minister, speaking from Lusaka, Zambia, where she had accompanied President William Ruto to a Common Market for Eastern and Southern Africa (Comesa) Summit, said: “I spoke to my counterpart in Tanzania, Hon Tax, and she has assured me that the matter will be sorted out today (Thursday).” By press time, at least 200 trucks, all carrying an average of 6,000 tonnes of maize, had been allowed to cross the border after the talks between the two countries, but a majority were yet to fully comply with Tanzania’s regulations. Tanzania Minister for Agriculture Hussein Bashe blamed the impasse...