Africa’s huge growth in trade and its diversification of partners over the past two decades has not helped in expanding its export basket. Africa’s goods trade with the rest of the world shot up from $197 billion in 1995 to $852 billion in 2015.  By KUDZAI GOREMUSANDU This quantum rise reflects an expansion of imports and exports. Africa’s purchase of goods from the rest of the world expanded 4,7 times over that period, while the continent’s total exports quadrupled. Until 2013, the advanced economies were Africa’s main trading partners. In a major change, from 2014, more than half of the continent’s trade with the rest of the world was with emerging and developing economies. This diversification revolution was, however, not matched by changes to the variety of products that Africa sells. Expanding the continent’s export basket to include more processed and manufactured products remains a challenge. Trade with Asia has expanded Africa’s trade geography which has seen a shift from Europe to Asia. With its size and economic development, the European Union remains the biggest single customer for Africa. It accounted for more than 30% of Africa’s global trade in 2015 though this is down from 40% in 2000. In that time, the value of merchandise goods exchanged between Africa and Asia expanded fivefold to reach 25% of Africa’s merchandise trade with the world in 2015. At a country level, China and India were the eighth and ninth largest trading partners for Africa in 2000. In 2015, they were first...

By the first quarter of 2018, Africa will become a continental free-trade hub to enable small- and mediums-scale enterprises (SMEs) export goods duty-free and quota-free across the continent. This was disclosed by the Minister of Trade and Industry, Alan Kyerematen at the maiden edition of the Ghana SME CEOs summit in Accra on Monday, 20 November 2017, He, therefore, encouraged SMEs to scale up and to take advantage of the African market. Mr Kyerematen further disclosed that under the African Growth and Opportunity Act (AGOA), SMEs can enjoy exporting some 6,400 products to the US market duty-free. Delivering the key note address, Mr Kyerematen said: “There is an economic partnership agreement, which allows us duty-free and quota-free to the whole of Europe. If SMEs can recalibrate their own production processes to meet the quality standards demanded by the EU market, I can assure you that this is where you can start making progress in terms of scaling up. So, when you want to scale up, you need to be able to sell and that’s where export becomes important. “Under the African Growth and Opportunity Act (AGOA), SMEs can export 6,400 products and over to the United States market duty-free and quota-free and I think that it’s time that our SMEs take this also very serious. “Beyond that, the biggest thing that is going to happen to Africa is the establishment of the continental free-trade area. By the first quarter of 2018, Africa is going to become one continental free-trade area...

It is projected that by 2022, the airspace will be busier with flying mini-robots as the number of commercial drones is expected to go over 620,000 while their commercial market is projected to hit $15 billion globally. While highest usage is in the USA and China, drone technology and application is fast spreading into the rest of the world. In Africa, Rwanda is now sort of a test ground for drones as the continent slowly starts to embrace the use of drones in their airspace. Drones are far more reliable, fast and efficient. Drone use had for a very long time been associated with governments and the military, especially for manning military grounds and spying. In recent years, however, drones have been approved for civilian use. They have since then been developed for more positive and productive ways like aerial photography in film and journalism, shipping and delivery of materials, gathering information in cases of disaster management, geographic mapping in areas with inaccessible terrains, building safety requirements and cargo transport. Drone usage has however had its fair share of criticism from their unregulated usage in many African countries, including Kenya. Privacy concerns are a major concern for many who may think that drones will intrude on their space and privacy. With this in mind, Kenya is yet to fully implement the Remote Piloted Aircraft Systems Regulations 2017, which will allow Kenyans to use drones for filming and photography, sports, as well as other private and commercial activities. Supporting health sector...

The increase of cargo volumes at the port of Mombasa has been significantly boosted by the operationalization of the second container terminal, Kenya Ports Authority has said. The terminal has made tremendous contributions to the total traffic handled in the Port since it became operational in April 2016. This year alone, between January and September, about 120 vessels called at terminal. About 202,661 TEUs containers, were handled terminal, said KPA managing director Catherine Mturi-Wairi on Monday in Mombasa during a two-day KPA-organised media workshop at Whitesands Hotel. The Sh28 billion first phase of the second container terminal was officially launched by president Uhuru Kenyatta on September 2016, some five months after it was handed over to KPA management by the contractor. “The facility (second container terminal) has increased the port’s annual container handling capacity by 550,000 TEUs,” said Mturi-Wairi. The construction of the Sh35 billion second phase of the terminal is expected to start early 2018 and will provide another additional capacity 550,000 TEUs. Overall, KPA cargo handling recorded a 10.6 per cent growth between January and September this year, despite the pro-longed electioneering period. The port handled a total of 22,756,448 tons of cargo compared with 20,566,156 tons registered in the corresponding period in 2016, reflecting an increase of 2,190,293 tons, which is 10.6 per cent growth. The MD said the ship turn-around, which is the time taken by a vessel from when it berths to the time it leaves the Port, achieved an all-time high of 2.9 days. Cargo dwell time has also come down from 12.6 days...

The port of Mombasa recorded 10.6 percent growth in cargo handled during the January-September period this year compared to the same period last year, despite a prolonged electioneering period, officials said on Monday. Kenya Ports Authority (KPA) Managing Director Catherine Mturi-Wairi said the port handled a total of 22.76 million tonnes of cargo compared with 20.57 million tonnes registered in the corresponding period in 2016, reflecting an increase of 2.19 million tonnes. Mturi-Wairi said despite the political temperatures in the country, the port has remained steadfast in cargo handling. According to the KPA MD, for the past nine months the rise in import cargo was driven by the increase in dry bulk commodities. According to Mturi-Wairi, the export cargo rose slightly by 3.2 per cent during the same period. "The marginal increase was mainly supported by coffee which increased by 37.7 percent and tea by 3.6 percent," Mturi-Wairi said. Transit cargo also increased from 5.98 million tonnes recorded in the first nine months of 2016 to 6.49 million tonnes in the first nine months of the year. Enditem Source: Xinhua Net

Activity in east Africa's biggest port is considered a measure of economic activity for the region. Mombasa handles imports such as fuel for Uganda, Burundi, Rwanda, South Sudan and eastern Democratic Republic of Congo. The increased traffic comes despite prolonged tensions over an election in August which was nullified and then rerun in October. Mombasa handled 22.8 million tonnes of cargo between January and September compared with 20.6 million in the same period last year, Catherine Mturi, the port managing director, said. Increase in transit traffic Imports accounted for 19.3 million tonnes, up from 17.4 million in the same 2016 period, an increase of 10.4%. It handled 2.8 million tonnes in exports, up 3.2% on the 2.7 million tonnes in the same period last year. Transit traffic increased by 8.5% to 6.5 million tonnes from 5.9 million. Uganda remained the biggest transit market, accounting for 81% of all transit cargo. Last year Kenya commissioned the first phase of a second $300 million container terminal that provides an additional cargo-handling capacity of 550,000 TEUs (20-foot-equivalent units) per year. Source: The Africa Report

f President Yoweri Museveni has a best buddy amongst his East African counterparts, it might as well be Tanzania's John Pombe Magufuli. When they are not sharing a hearty laugh at an African Union meeting in Addis Ababa, they are holding hands while walking as was the case during Magufuli's recently concluded 3-day visit to Uganda. This wasn't all. Quite uncharacteristic of him, Museveni hailed Magufuli for fighting corruption. Magufuli on the other hand has equated Museveni to Tanzania's former iconic president, Julius Nyerere. And some of his ministers are echoing the same. Magufuli was in Uganda for the first time this year exactly three months after Museveni was in Tanzania. President Museveni has been in Tanzania three times -- in February, May and August - this year. Apart from the closeness the two presidents have exhibited publicly, they are also closing mega deals that are upsetting old alliances in the region. The US$3.55 Oil Pipeline Specifically, the Magufuli-Museveni alliance appears to have caused two big deals; the US$3.25 billion loop of the Standard Gauge Railway through Tanzania and the US$3.55 Uganda Oil Pipeline, to be prioritized and switched from Kenya. Throw in the US$12 million One-Stop Border Post at the Mutukula Tanzania-Uganda border and the Magufuli-Magufuli dalliance will have notched the US$7 billion mark. It also appears to be shaking up what has, until now, been a close-knit alliance of Museveni, Kenya's Uhuru Kenyatta and Rwanda's Paul Kagame. Popular press had had dubbed their alliance "the coalition of the...

Kenya has crafted a new strategy to revitalise exports that have stagnated for some time. The National Export Development and Promotion Strategy aims to grow exports by 20 per cent by 2022. The ambitious plan targets six items for accelerated development via a public-private working group. While unveiling the plan this week, Trade Principal Secretary Chris Kiptoo said safeguarding Kenya’s exports, with a keen eye on opening up new markets for processed products, underpins the new strategy. The principal secretary said Kenya has identified six sectors that will be prioritized including livestock and livestock products, agriculture, fisheries, manufactured products and handicrafts. Data shows that about 60 per cent of Kenya’s exports comprise just 10 products, which go to only 12 destinations, half of which are in Africa. Countries identified as key markets in the new push include USA, UK, Germany, Uganda, Egypt, Democratic Republic of Congo, Rwanda, Pakistan, South Sudan, Belgium and The Netherlands. The PS said another strategy will aim at improving balance of trade between various countries, particularly Asian powerhouses China and India. Currently, trade between Kenya and the two countries is heavily tilted in their favour. The Trade PS said while imports from India last year were 12 per cent, and those from China at 13 per cent, Kenya only exported a paltry 1 per cent to these two countries. In 2015, Chinese imports to Kenya peaked at Sh320.8 billion, compared with Sh8.4 billion worth of exports, while India exported goods worth Sh411.8 billion to Kenya and received...

OMAN has excellent port and logistics infrastructure that it has developed with an eye to the future. The Sultanate has two well-developed ports at strategic locations on the main East-West trade routes, with good air connections as well. Oman's main cargo ports of Salalah and Sohar are seen as the region's best located ports to serve the Middle East, Indian subcontinent and East Africa markets. The APM Terminals-managed Port of Salalah began operations in 1998 and is currently expanding capacity at its general cargo terminal (GCT) to cater for expected future increases in demand. It is Oman's biggest port and main shipment centre. APM Terminals also has a 30 per cent stake in the port. The Port of Salalah comprises a container terminal with seven berths of up to 18-metre draft and the GCT with 14 berths of up to 18m draft. To meet increasing demands at the GCT, a new general cargo and liquid bulk jetty was built by the government at a cost of RO55million (S$194 million). The new facilities feature a quay length of 1,266m and a draft of 18m. The port offers one of the fastest transit times from the region to connect businesses to the Asia-Europe trade lane, with 52 direct-port connections and feeder connections to reach developing markets of East Africa, India and the Gulf Cooperation Council (GCC) markets. The Port of Salalah also receives cruise ships, with some 25 port calls bringing in 32,000 tourists in 2016. Between 1998 and December 2016, the...

Early this month, the government of Rwanda established a new visa regime that is intended to ease and improve movement of tourists in that country. For instance, on reciprocity basis, Rwanda will grant visas free of charge with 90 days validity to all East African Community (EAC) partner states, and this takes immediate effect. This is in addition to other African and Asian states. But more importantly, come January 1, 2018, citizens of all countries will be eligible to get a 30-days visa upon arrival without prior application. Before this change, it was only nationals of African countries who would get visas upon arrival in Rwanda. Also, Rwanda has eased the movement of Comesa members into that country. They will now be able to get a 90 days’ visa upon arrival and upon payment of the prescribed fees. Also, Rwandans living abroad with dual nationality will be allowed to use national IDs on entry and would not be required to pay any visa fees. This innovative strategy of the Rwanda government will earn them rewards in the tourism sector. Uganda needs to watch with keen interest the innovations being implemented by the EAC partner states. This is because, in terms of tourism resources, we almost rely on the same resources. For instance, Kenya, Uganda, Rwanda, heavily rely on wildlife, lakes, national parks, but the trick is in being innovative in trying to attract tourists for the same resource. Kenya is good at infrastructure and pricing. It is must be recalled...