Tanzania is still weighing the impact of the envisaged ban on the use of polythene materials before effecting it. The country’s minister for State responsible for Union Affairs and Environment, January Makamba, said that the authorities were concerned over the likely massive loss of jobs. “We don’t want to continue generating plastic wastes. At the same time we are concerned on the loss of jobs in factories producing polythene materials,” he said. Speaking to reporters at the end of the regional meeting on environment, the minister stated that Tanzania was still keen on joining other East African Community (EAC) states in banning the use of plastic wastes, but was still cautious. “Once you ban the use of plastics, some factories will have to be closed leading to loss of jobs,” he said, noting that relevant authorities are still weighing on the matter. Rwanda and Kenya Rwanda and Kenya are among the EAC countries that have banned the use of polythene materials used to make plastic bags though Kenya has faced challenges in totally enforcing the ban. Early last year, the East African Legislative Assembly (EALA) passed the EAC Polythene Materials Control Bill 2017 aiming to prohibit manufacturing, sale, importation and use of the materials. Although majority of MPs supported the legislation on human health and environmental grounds, others warned on the consequences on the manufacturing sector. Tanzania, which imports 70 per cent of its plastic bags, requested to be given more time to consult its private sector and other stakeholders...

The Rwanda n government has said the United States has the right to withdraw benefits of Africa Growth and Opportunity Act ( AGOA), responding to the suspension of its eligibility for apparel exports. In a statement issued on Tuesday, Kigali signalled that it would not reverse restrictions on importation of used clothes and shoes, including those from the United States. “The notification by the United States on suspension of duty-free status for Rwandan apparel products under the African Growth and Opportunity Act ( AGOA) follows a decision by East African countries to raise tariffs on second-hand clothing imports, in order to promote local manufacturing capacity in garment and other industries,” read the statement. AGOA is a commendable unilateral gesture to African countries, including Rwanda, meant to promote trade and development through exports. The withdrawal of AGOA benefits is at the discretion of the United States. While the decision was agreed by members of the East African community, Kenya, Tanzania and Uganda have since succumbed to pressure, choosing the economic benefits that accrue under AGOA. The AGOA trade program provides eligible sub-Saharan countries duty-free access to the United States on condition they meet certain statutory eligibility requirements, including eliminating barriers to U.S. trade and investment, among others. It was enacted in the US in 2000 to run to 2015 and renewed to 2025. “ AGOA is a commendable unilateral gesture to African countries, including Rwanda, meant to promote trade and development through exports. The withdrawal of AGOA benefits is at the...

The African Union recently announced the creation of a Continental Free Trade Area in Kigali, in what has been termed a historic event. The heads of 44 African nations signed the bill establishing the Free Trade Area, immediately fast-tracking Africa’s economy by 50 years. However, there is still some more work to be done for the African trade area to be ‘modern’. Other than the fact that intra-African trade is the lowest among its ilk in the world at 11 percent (which was a reason for the creation of the Free Trade Area),  the Continental Free trade area also needs to be digitized. In a world of high-speed internet, emerging technologies and economies, digital networks and data flows, and the traditional boundaries regarding trade will no longer suffice. Ventures Africa spoke to Microsoft’s Director for Corporate Affairs in Africa Mr. Louis Otieno last week on the sidelines of the Africa CEO Forum in Abidjan, Ivory Coast. He says Africa needs to digitize its Free Trade Area to enable it to incorporate at scale. “Digital data flows is what defines the economic area as opposed to traditional boundaries,” he said. “For Africa to complete globally with the likes of China, we have to incorporate at scale. We have a billion people, which makes us a viable market today, with the youngest billion people, which makes us a viable market tomorrow.” His solution to digitizing the CFTA is for African governments to initiate policies that would make it easier for data flows...

US President Donald Trump on Thursday announced plans to suspend the duty-free treatment of clothing imported from Rwanda under the African Growth and Opportunity Act (AGOA). In a letter to the US Congress, Trump says Rwanda’s duty-free status will end in 60 days, unless the East African nation lifts barriers recently imposed on used clothing imports from the US. Trump retaliates to Rwanda tariffs Last year, Rwanda was one of various East African nations – including Kenya, Tanzania, Uganda and Burundi – to create a policy seeking to end the import of used clothing and motor vehicles from the US and other western countries. Experts in Rwanda say the import of used clothes from the US is stifling the country’s own textile and fashion industries. Some also argue that the import and sale of second-hand clothing insults Rwandans’ integrity. However, it also supports an estimated 40,000 jobs in the US and the Trump administration is piling pressure on East African nations to soften their stance on used clothing imports. Uganda and Tanzania have already toned down their verdict on the issue, according to the Office of the United States Trade Representative. Rwanda now has 60 days to change its own stance or lose its duty-free status for clothes exported to the US. Trump points to AGOA agreement The Office of the United States Trade Representative says the president’s decision follows the verdict of a government review looking into the impact of Rwanda’s tariffs on second-hand clothing imports. Key players in the US used clothing industry filed a...

Sugar imports in January dropped 72 per cent from last year as the regulator moved to control quantities allowed into the country. A market report by the Sugar Directorate indicates the volume of sugar imported dropped to 9,907 tonnes in the period under review from 35,170 in a similar period last year. The consignment comprised 1,900 tonnes of refined sugar while the bulk of cargo was 8,007 tonnes of industrial sugar. “Total sugar imports in February 2018 were 9,907 tonnes compared with 35,170 tonnes imported in the same period last year, a decrease of 72 per cent,” says the Sugar Directorate in a report. Last week, the directorate said it had subsequently cut the volumes of the sweetener imported to an average of 7,000 tonnes a month from previous highs of 29,000 tonnes to protect local millers who are grappling with huge volumes. “We are regulating the imports to ensure that the volumes we license in a month are manageable so that we do not affect the local millers,” said Solomon Odera, head of the Directorate. Normally, Kenya is allowed to import 350,000 tonnes annually from the Common Market for Eastern and Southern Africa (Comesa), which is spread across the year to about 30,000 tonnes monthly. The country imported over 900,000 tonnes of sugar between May and December last year as Kenya opened a duty-free window to allow traders to ship in the commodity outside Comesa. The directorate says the number of traders seeking import permit has gone down in...

Modernisation of Tanzania’s main airport is back on course after more than a year’s delay, a project likely to reduce Dar es Salaam’s reliance on Nairobi for transit flights by some of European airlines. Authorities in Tanzania have announced the construction of the new passenger terminal at the Julius Nyerere International Airport (JNIA) will be completed in June 2019. The $300 million (Sh30.27 billion) project had been delayed over a funding stand-off after President John Magufuli questioned its costs and implementation timeframes in February 2017. The airport’s terminal 3 – which includes construction of 24 parking lots, access roads and a taxiway — is designed for expected growth in international traffic. The capacity of the airport is set to more than double to six million annual passengers from the present 2.5 million once the project is completed, Reuters reported, quoting a statement from Prime Minister’s office. Emirates, KLM, Qatar Airways, Turkish Airlines and Swiss International Airlines are some of major international airports that fly to Dar’s main airport. Tanzania, however, still relies on Jomo Kenyatta International Airport (JKIA) to get some of its international guests, largely tourists, because some of the major airlines such as British Airways do not fly Tanzania. Tanzania’s reliance on Nairobi for some of its tourists came to the fore following an outcry from tour operators when Nairobi banned Tanzanian-registered vans from accessing the JKIA for 25 days from December 22, 2014. The move was in retaliation to a similar decision by Tanzanian authorities to deny...

Water transport investors in Lake Victoria are banking on the planned construction of the Standard Gauge Railway line to Kisumu to grow. Mbita Ferry Ltd, the biggest investor in lake transport vessels in the region, is focusing on handling cargo and increasing its presence in passenger transport. The company, which began its operations in 2001, has 11 vessels operating in Kenyan waters and two vessels in Tanzania. The ferry in Kenyan waters plies routes such as Mbita Town in Homa Bay County to Luanda Kotieno in Siaya County, and other islands around Mfangano main Island. Those operating in Tanzania named MV Alestus and MV Tilapiia ply between Mwanza and Bukoba ports respectively. Mbita Ferry Managing Director James Orege said the company has been specialising in handling cargo and passengers but is eyeing heavy cargo. “We are currently strategising on how to increase our cargo handling capacity following the move by the government to extend the Standard Gauge Railway to Kisumu,” said Mr Orege. The MV Mbitta that plies the Mbita Town to Lwanda Kotieno route in Siaya County can carry up to 500 tonnes.  It charges adults Sh150 and children Sh50 to cross from the Mbita to Luanda Kotieno. The ferry can carry up to 20 motor vehicles.  A car is charged Sh930 while a lorry is charged Sh2,320. The manager said motorists who do not want to be inconvenienced by road traffic often resort to the ferry to reach their destination. “Most of our customers crossing the lake with their motor vehicles do so because it is cost-effective and save...

The cost of transporting empty containers back to designated shipping lines yards in Mombasa is watering down the gains for importers using the Standard Gauge Railway (SGR) subsidised freight rates. Currently, there are more than 400 empty containers lying at the Nairobi Inland Container Depot (ICD) awaiting transportation to yards in Mombasa, with importers bearing the costs, according to clearing and forwarding agents. The containers were railed to the ICD without being nominated to the facility. As a rule, importers have to declare in the import documents where they want their cargo to be offloaded. The The Kenya Ports Authority (KPA) General Manager, Operations and Harbour Master, William Ruto on Tuesday said the number of 20-foot containers were 289 while the 40-foot ones were 141. He however said the initial confusion that arose after goods were railed to the ICD were being addressed and the yard had been reorganised. “We have already deployed 10 people to assist in the organisation of the yard and clearing agents are now able to locate their containers,” Mr Ruto said, adding that they expected the equipment to be transported to Mombasa by Tuesday. Return of the empty containers is being complicated by the fact that the SGR trains are not able to transport the goods to the final destination, forcing the importers to use road transport for the last mile transport. However, the Kenya Railways (KR) has negotiated with shipping lines on the return of the containers to Mombasa, although the logistics have not...

Kenya Airways is staring at a possible loss of its regional market share following the planned revival of national carriers in Uganda, Tanzania and Zambia. Kenya Airways, popularly known by the code KQ, has been enjoying a big presence in these countries capitalising on lack of national airlines. Air Tanzania is welcoming a new aircraft- Bombardier Q-400, which is the third since President John Magufuli rose to power, in an effort to revive the ailing airline. The airline has also lined up three more jet aircraft, including two Bombardier C300s and one Boeing 787-8 Dreamliner to arrive in the country before the end of this year. Uganda is also in the process of reviving its national airline before the end of the year after the cabinet approved the plan. This will cut the 15 years dominance that KQ has been enjoying at Entebbe which might result in revenue loss as Uganda seeks to claw back regional routes to kick-start an ambitious global outreach. Kenya’s Transport Principal Secretary Paul Maringa, however, says the move will not affect KQ’s earnings as part of the efforts to revive the local airline are aimed at making it competitive in the regional market. “There will be increased competition obviously, but this does not mean it will affect the operations of KQ. We are banking our strength on the services that we offer, which will keep us going even in the presence of stiff competition,” said the PS. Prof Maringa said there is nothing wrong with...

Large cargo handling deals — health products, heavy machinery and coffee — have boosted Uganda’s clearing and forwarding industry despite a weak economy and rising competition. Prolonged economic downturn experienced since the beginning of 2017/18 led to a tax revenue shortfall of Ush355.8 billion ($96 million) between June and December 2017, Bank of Uganda data shows. Uganda’s economy expanded by four per cent against a target of five per cent in 2016/17 financial year. Figures compiled by Uganda Revenue Authority (URA) revealed the total number of Customs declaration entries registered by URA rose to 500,000 last year, with minimum transaction fees in the industry estimated at Ush500,000 ($135) per transaction or more than Ush250 billion ($67.7 million) in total annual industry revenues. “We are getting some huge deals from the Chinese contractors but the flow of these orders is fluctuating,” observed Lino Criel Icila, secretary general of the Uganda Clearing Industry and Forwarding Association. Infrastructure projects Mr Icila was alluding to the huge infrastructure projects in the energy and transport sectors by the Chinese, which have increased demand for new construction equipment. The ongoing projects are Karuma and Isimba dams, Mubende-Kakumiro-Kagadi and Soroti-Moroto roads. In additional to Chinese contracts, the Ministry of Works and Transport was a key player in road construction. The ministry imported about 1,151 units of equipment — motor graders, vibro rollers, wheel loaders, water bowsers and dump trucks — valued at Ush318 billion ($86 million), last year. A big chunk of this consignment was cleared and...