Archives: News

Technology easing cargo clearance

The World Trade Organisation (WTO) forecasts that global trade will rise by 3.6 per cent by the end of the year. Sea transport will continue to play a key role in this growth, given that nearly 90 per cent of all goods in the world are transported by sea. However, this rapid growth in international trade and cargo volumes, travellers and conveyances presents increasingly new challenges. They include security threats of terrorism, illegal trade in natural resources, trade in substances that pose a threat to public health and safety, illicit financial flows (money laundering) as well as piracy. TRADE AND TRAVEL Customs administrations and other players in the global supply chain need to continuously build and upgrade the capacity to handle the increased volumes and travel whilst enhancing security. This calls for a balance between facilitation of trade and travel, and enforcement of controls to safeguard public safety. Cargo inspection is a critical aspect in safeguarding the supply chain, security and protection of society against the organised transnational crimes of terrorism, hazardous substances and environmental crimes, and facilitation of legitimate trade. For the past 15 years, the Kenya Revenue Authority (KRA) has used modern cargo inspection tools such as X-ray cargo scanning at the Mombasa seaport and airport. The use of non-intrusive inspection equipment is consistent with the World Customs Organisation’s (WCO) Safe Framework of Standards, which states “that non-intrusive inspection equipment and radiation detection equipment should be available and used for conducting inspections, and in accordance with risk assessment....

Kenyan leaders take oath, pledge teamwork with EAC partners

Mr Kenyatta and his deputy William Ruto were sworn in to serve the country for the second term, saying only collaborations with their EAC partners will help in renewed energy and optimism to the country’s unity. The swearing in of the top leaders follows their victory in the recent repeat polls. At the well-attended inauguration ceremony at Kasarani Stadium in Nairobi, with presence of international and regional leaders, President Kenyatta said working together was the way to deliver peace and prosperity, which EAC citizens are yearning for. “We will work for peace in our region, for that is what good neighbours do,” he said. On behalf of President John Magufuli, the Vice-President, Ms Samia Suluhu joined other regional and international key figures to grace the event. She arrived in Nairobi yesterday morning accompanied by Deputy Minister for Foreign Affairs and East Africa Cooperation Dr Suzan Kolimba. “To our brothers and sisters in the East African community, you are our closest friends, our fate and yours are joined at the hip, our troubles and triumphs are yours, and yours are ours,” he stated. He said as mark of Kenya’s continued commitment to the fellow East Africans, from now on citizens from other EAC member states will be treated like Kenyans. “Like your Kenyan brothers and sisters, you will need only your identity card. You can now work, do business; own property, farm and if you wish, and find a willing partner, you can marry and settle in Kenya,” he assured, adding,...

2018 will be the year African fintech takes off

Next year will be a good year for Sub-Saharan Africa. After a challenging 2017 for many of its nations, 2018 will see economic growth return across the continent, gas activity boom and fintech innovation pick up in speed. So says Ecobank Research as it recently launched the newest version of its yearly Fixed Income, Currency and Commodities Guidebook, which provides analysis on African markets for investors and businesses. The research department of the Pan-African bank forecasts three key trends that will take hold across Africa during the next 12 months. GTRtakes a closer look at them.   1. Rebounding economy after a trying year Low commodity prices have hit many economies across the African continent over the past few years and put the brakes on years of steep growth. But 2018 is expected to be the year that gives African growth a new boost. “Growth is returning to Africa next year,” Edward George, head of Ecobank Group Research, tells GTR. “Now that doesn’t mean we are seeing these amazing growth rates we saw maybe 10 years ago of up to 5% a year, but growth is definitely returning.” This growth will in particular be driven by a recovery in the region’s economic heavyweights such as Nigeria and South Africa – countries that have been especially challenged by slumping commodity prices. Ecobank also points to the ongoing growth in the continent’s top performers, Ethiopia, Côte d’Ivoire and, more recently, Ghana. “A lot of people got the wrong impression about the slowdown in growth in...

Kenya set to build coast-to-centre highway to boost Africa trade

 Kenya on Wednesday signed a $620 million agreement to build a 530 km (329 mile) highway from its east coast to the centre of the country, part of a campaign to boost its role as a regional trade hub. A consortium including a unit of South Africa’s Group Five and the Development Bank of Southern Africa with work with the state. Cabinet Secretary James Macharia said in a statement the road would link Lamu on the coast to Isiolo, north of Nairobi, via Garissa. The consortium will design, build, finance, maintain, operate and transfer the highway. Work is due to start in mid 2018 and be completed within four years. Kenya wants to build up a role as a regional trade and transport hub, serving as a link to landlocked countries such as Burundi, Rwanda and Uganda. It is seeking more private investment to maintain the pace of spending on highways, railways and other vital assets while reducing its budget deficit. The Public Private Partnership model has been touted as a promising route to fund new infrastructure across Africa, a continent that struggles with poor transport networks. “The signing of this agreement shows continued confidence of international investors and its economic stability,” Macharia said. Macharia said the highway was part of a 2,000 road network linking a planned port in Lamu with the rest of Kenya and neighbouring South Sudan and Ethiopia, of which 505 km is already complete. He added that the consortium will operate and maintain the road...

Kenya will issue African travelers visas on arrival

Africans visiting Kenya will no longer need to get a visa before traveling to the East African nation, the latest country to join a continent-wide push to boost integration and free movement. During his inauguration for a second term in office, president Uhuru Kenyatta announced that Africans wishing to visit Kenya will be eligible to receive a visa on arrival. The directive, he said, was meant to enhance trade, security, and intercontinental travel. Kenya already had one of the more straightforward online processes for short-term visas. “The free movement of people on our continent has always been a cornerstone of Pan-African brotherhood and fraternity,” Kenyatta said. “The freer we are to travel and live with one another, the more integrated and appreciative of our diversity, we will become.” He made his announcement in front of African leaders from Djibouti, Ethiopia, Gabon, Nigeria, Rwanda, Somalia, Uganda, and Zambia, among others. Moving across Africa or anywhere else is tough for Africans, who have the least powerful passports in the world. Even North Americans and Europeans travel faster and with less restrictive visa processes within the continent than most Africans. But over the last couple of years, there’s been a drive by the African Union and others to see that movement across the continent becomes easier. The African Development Bank, which monitors visa openness of countries, says at least 21 countries have loosened or scrapped their visa rules altogether. Along with Seychelles, which has had no visa requirements for long, Ghana, Rwanda, Mauritius, Nigeria, and Beninhave all adopted this no visa policy over...

Region in joint efforts to develop cross-border trade

Rwanda, Tanzania, Uganda, Burundi and DR Congo officials have committed to work together in addressing challenges hindering cross-border trade in the region. The commitment, which is expected to help thousands of small-scale cross-border traders – especially women – to carry out their daily business smoothly, was made on Monday in Kigali during a regional advocacy meeting on cross-border trade. The meeting brought together regional public institution representatives whose mandates relate to cross-border trade. It aimed to discuss challenges and the progress made in addressing them in line with enhancing regional integration that enables cross-border traders to contribute to sustainable economic development. It was organised by Pro-femme Twese Hamwe, a civil society umbrella of 57 women advocacy groups in Rwanda. The cross-border trade features small businesses, like selling fish, tomatoes, milk, and fruits. It was noted that, despite its vital contribution to food security, providing employment as well as allowing people access to goods and services unavailable in their own countries at affordable prices, cross-border trade remains under developed. The major challenges faced by cross-border traders include limited access to credit, lack of information on regional trading protocols and services, robbery, gender based violence and confiscation. According to Rwanda’s Ministry of Trade and Industry, cross-border trade contributes over $ 170 million annually to GDP. Markets Robert Opirah, the director-general of trade and investment at the Ministry of Trade and Industry, said the Government has been creating a friendly operating environment for cross-border traders. The Government has been constructing markets at the...

Uganda’s Bittersweet Coffee Story

The Uganda coffee story is one of resilience characterised by slumps that are subdued every time one of Uganda biggest foreign exchange earners recovers. The impact of climate change, diseases and the shifting growth priorities have eaten into Uganda's coffee production story, especially in the last one decade. According to data from Uganda Coffee Development Authority (UCDA), coffee production started to experience intermittent volumes at the fold of the 90s, slightly recovering in the mid-2000s before mildly sliding back into instability. However, current data indicates production and quality continue to move northwards by an average of 7 per cent per annum, which has boosted both exports and farmer incomes. According to a UCDA report for the month of September, coffee exports between October 2016 and September 2017 fetched 4.61 million bags worth $545m (about Shs1.96 trillion). This is compared to about 3.32 million bags worth $326.7m (about Shs1.1 trillion) over the same period in the previous year. The recovery, analysts believe, has been a result of sustained approaches that continue to point to the importance of coffee as a key revenue factor in Uganda's economic trajectory. According to Mr Ramathan Ggoobi, an economics lecturer at Makerere University Business School, the government has had programmes that seek to uplift coffee production volumes. Such programmes, he says, have targeted small holder farmers who continuously graduate into larger producers as their incomes improve. "The volumes are benefiting from campaigns such as Operation Wealth Creation and Naads [that distributes free coffee seedlings] through which...

TPA brings services closer to Burundi

The office opened in Bujumbura will also reduce costs that businesspersons have been incurring to travel to Dar es Salaam to inquire about their cargo. TPA Director General, Engineer Deusdedit Kakoko recently travelled to Burundi where he met government officials, including President Pierre Nkurunziza and head of revenue body Mr Audace Niyonzima. Other measures taken by TPA to attract cargo from Burundi, include extending cargo clearance grace period for major importers from 14 to 30 days. He also said TPA has opened an account with CRDB bank in Bunjumbura to facilitate bank transactions. Also in the list of measures include availing a piece of land to keep containerised cargo destined for Burundi at Ruvu in Coast region. According to Engineer Kakoko, a plot measuring 250 width and 500 length would be handed over to Burundi through its embassy in Tanzania. Engineer Kakoko said TPA was working out a plan so that with effect from next year importers from Burundi and the central corridor in general could receive and clear their cargo in Kigoma instead of being required to travel to Dar es Salaam. “With effect from next year all cargo destined for Burundi and the central corridor in general would be transported by railway from Dar es Salaam Port to Kigoma. From there importers will be able to pick up their goods to their respective countries,” he said. Commissioner General of Burundi revenue body (Office Burundais des Recettes- OBR), Mr Audace Niyonzima hailed TPA for improving its services at Dar...

‘Digital natives’ to lead in the next boom

Information and communications technology is driving an entrepreneurial boom in Kenya, and it is youth at the forefront of creating new businesses. Young entrepreneurs such as Jacob Otieno, the founder of Tablets for Schools, and Danson Muchemi, the founder of Jambopay, are some of the emerging trailblazers in this vibrant space. But it is the concerted government and private sector push to build telecoms infrastructure and digital services that is helping to catalyse the trend. The Communication Authority of Kenya’s (CA) latest statistics place the country’s Internet penetration at 90 per cent or 43.3 million users as at the end of June this year, compared to 37.7 million the previous year. EMPLOYMENT According to The Kenya Youth Report 2016 by Aga Khan University, the median age in Kenya is 19 years and 80 per cent of the population is below 35. People aged 15 to 24 are striving to get a good education, but the promise of gainful employment in the formal sector remains elusive. Yet many of Kenya’s digital natives aim to become self-sufficient by starting businesses of their own — with connectivity and digital platforms offering them efficient new ways to access information, market businesses, conduct transactions and connect with customers. WORK CULTURE As enthusiastic users of the latest technology, they are creating their own opportunities using social platforms, cloud software and other digital tools. The way young people find or carry out work is changing. They are shunning newspaper classifieds in favour of online job listings and...

Project boosts cargo clearance, safety in East Africa

Five countries in East Africa are at different phases of implementing an electronic cargo clearing systems at the ports of Mombasa in Kenya and Dar es Salaam in Tanzania to address the problem of container and cargo congestion at the two ports, cut down on operational costs and increase revenue for governments in the region. The cargo clearing system is being backed by a new cargo tracking system that eliminates dumping and theft of cargo in transit along the northern transport corridor anchored on the port of Mombasa and the Central transport corridor that is supported by the port of Dar es Salaam. The two ports have recorded growth in the number of containers and volumes of cargo in the last 10 years as East Africa’s economic performance surged to 6.3% by 2015 compared to the sub Saharan Africa’s average of 4.2% at the time. Inefficiencies at the two ports, which have greatly been addressed for the last two years, led to extended ship dwell times, spatial constraints especially at port terminals as clearance of containers and general cargo took too long. Incidents of dumping and theft of goods in transit have also been reported previously because of lack of an efficient system to monitor cargo movement from port to warehouse. At the port of Dar es Salaam, the World Bank estimates an annual loss of $2.6 billion for Tanzania and neighboring countries that rely on the gateway for international trade such as Zambia, Uganda, Rwanda, Burundi and parts of...