Lack of a compensation plan for land owners has held back bid to build the Nairobi-Naivasha standard gauge railway, four months after Kenya secured funding. The Kenya Railways was supposed to prepare and submit the plan to the National Land Commission (NLC) to set in motion the process of acquiring wayleaves for the wider railroad. The 120-kilometre Nairobi-Naivasha line will cost Sh150 billion, and connects to the recently completed stretch from Mombasa port to the capital city Nairobi. The contractor, China Road and Bridge Construction, was to move to site in July. “Our hands are tied. We were expecting a resettlement action plan from Kenya Railways weeks ago. We can’t go to the ground to clear the way without the plan,” NLC chairman Muhammad Swazuri said in an interview. Kenya Railways managing director Atanas Maina did not answer our phone queries. The railroad will cut through the Nairobi National Park, town centres and agricultural zones like Maai Mahiu, according to Dr Swazuri, highlighting the heavy compensation burden awaiting taxpayers. Environmental conservationists have challenged the plan to have the project traverse through the wildlife park. The government has fashioned the planned line as a key link to Kenya’s industrial drive through movement of goods and inputs connecting to proposed special economic zones in geothermal energy-rich Naivasha. Land compensation bill for the completed Mombasa-Nairobi line, covering 609km, stood at Sh33 billion, equivalent to 10 per cent of the total project cost of Sh327 billion. An internal audit report by Kenya Railways last...

A new project that seeks to promote the quality and standards of locally-made products has been unveiled by the Rwanda Standards Board (RSB). The three-year ‘Zamukana Ubuziranenge’ project is targeting small-and-medium industries. Under the initiative, small industries will be trained in standardisation and quality assurance to help improve the quality and standards of local products to make them more competitive on the local and regional markets, Raymond Murenzi, the RSB director general, said. Murenzi added: “The project will focus on empowering small industries, especially those run by women, youth and people with disabilities, because most of them are struggling to meet standards.” The RSB chief said government will inject Rwf2 billion for a feasibility study of the project that will benchmark capacity needs of the targeted industry to ensure they enhance their production processes and standards. He said Rwf300 million has been allocated to the project this fiscal year. Murenzi explained that the project will initially focus on small agro-processors of milk products, meat, vegetables and fruits, as well as honey processing industries, providing supervision and mentorship. “We are confident that through mentorship and education, the beneficiaries will be able to improve the quality and standards of their products and become more competitive and sustainable,” he said. Information gap Murenzi said many business operators do not know the guidelines for set standards so that they can have their products examined. “That is why we are planning to send a team of experts that will evaluate the level of standards of...

Regional integration and co-operation between sovereign states has a long history especially in Africa. According to the World Bank, the first generation regional integration schemes were partly motivated by the political vision of African unity, but also as a means for providing sufficient scale to import substitution industrialisation policies. One of the most compelling arguments for regional integration in Africa is usually made on the basis of the fragmentation of sub-Saharan Africa, which has 47 small economies, with an average Gross Domestic Product (GDP) of $4 billion (Sh400 billion), and a combined GDP equal to that of Belgium or 50 per cent of the GDP of Spain. The implication is that with the per capita growth rate being between zero and two per cent per annum, there is limited progress in poverty reduction and the achievement of many of the Sustainable Development Goals (SDGs) seems to be elusive. Regional tourism is driving the world over. For example, it is estimated that four out of five international arrivals are visitors travelling within their region (UNWTO Tourism Barometer 2014). Leading destinations in Europe, USA and southern Africa have domestic and regional tourists accounting for between 60 and 70 per cent, which therefore acts as the foundation for their industry thereby cushioning them from international shocks whenever these occur, as they are bound to. In Kenya, arrivals from Africa by air in 2015 were estimated at 26 per cent of the total arrivals. However for the year 2014, when cross border numbers are...

NEGOTIATIONS for the Tripartite Free Trade Area (TFTA) will be concluded by the end of next month to provide a single trade regime covering three regional blocs to accelerate trade. Speaking at the fourth regional sensitisation workshop, Common Market for Eastern and Southern Africa (Comesa) director of trade and customs, Francis Mangeni said 20 countries have signed all annexes on key areas such as standards, non-tariff barriers and interim arrangements for rules of origin. Trade remedies and tariff offers were also agreed upon. “At the moment some countries are saying they want things done properly and when everything is finished then they will sign the agreements. One of these countries was South Africa and a few others. So in about two months, when we have finally finished all the outstanding issues, then South Africa will sign. This is what has delayed, but countries are saying about the same argument on ratification that after all these issues then there can also sign and then ratify. When all these outstanding issues are finally resolved we will see more progress,” he said. “Currently, we are left with only six countries to sign the agreements and that’s not a problem and ratification now is the problem. “When the ministers met in Kampala in July they set a deadline for October 30, 2017.” The TFTA is a proposed African free trade agreement between the Comesa, East African Community (EAC) and Southern African Development Community (Sadc). Mangeni said countries have set three deadlines to complete the...

 How can central banks in the East African Community boost private sector credit that has since last year slowed down?   That was one of the issues that the Central Bank Governors in the region deliberated on during the 21st Ordinary East African Community (EAC) Monetary Affairs Committee held in Kampala on Aug. 25. Emmanuel Tumusiime-Mutebile, the Governor of Bank of Uganda and the current chairperson of the Monetary Affairs Committee told his guests that they have attained a lot of progress towards the operationalisation of the East African Common Market protocol but there have been a number of emerging issues which pose serious challenges to our integration efforts. “Some partner states have faced a slowdown in economic growth, both in the growth of private sector credit and the economic activities coupled with an increase in the non-performing loans,” Mutebile said. He said further reduction in private sector credit could weaken aggregate demand going forward and threaten the continent’s fastest-growing region. As such, he said, central governments in the region should do whatever it takes to encourage private sector access credit. But while the Governors said they do not have immediate plans to stir private sector credit uptake and improve economies of their respective countries, outgoing governor, Bank of Tanzania, Prof. Benno Ndulu, tried to offer a solution. He said at the time he assumed the job in 2008, the Tanzanian economy was in turmoil characterised by low private sector credit as business firms were unable to either access or repay...

Nairobi – The Port of Mombasa got a major boost following the arrival of two ultra-modern diesel electric cranes. According to the Kenya Ports Authority’s (KPA), the acquisition of the equipment funded by TradeMark Africa (TMA) through the UK government’s International Climate Fund (ICF) facility. The two $8.7 million portal harbour cranes are part of a comprehensive programme in supporting the port’s resilient port infrastructure initiatives, KPA added. “These cranes are aimed at mitigating the negative effects on the environment,” the port authority said in the statement. “The cranes will provide dust and spillage-free unloading through a dust control system that minimises escape of dust during discharge and reduces running expenses on average by 30 per cent,” KPA said last week. “The Eco Hoppers will complement mobile harbour cranes for dry bulk cargo handling,” it added. Unlike the Mobile Harbor Cranes currently used at the Port which handle one vessel at a time, the new cranes will handle two vessels simultaneously. KPA general managers for engineering services, Eng Joseph Atonga, Sudi Mwasinago, the in-charge of operations, and TMA Kenya country director Ahmed Farah, witnessed the arrival of the equipment at the port’s Berth number 10. The Government of Kenya has made it a priority to continually invest in infrastructural development of the Port of Mombasa and made progress in the modernisation of the port. Some of the key projects include the construction of the phase one of the second container terminal which increased the port’s annual capacity by 550,000 TEUs,...

 In its bid to advance the Black Industrialist Programme (BIP), the South African government is looking to work closely with its African counterparts.    This week, the Department of Trade and Industry (DTI) revealed that it will take a group of black industrialists on an outward trade mission to Uganda from 18-23 September. The aim of the trade mission is to assist the black business people to search for a market for their products and investments opportunities. The mission is to consist of export-ready industrialists operating in the economic infrastructure, agro-processing, chemicals, pharmaceuticals, plastics, and electronics, as well as textiles, footwear and leather sectors. Trade and Industry Minister Rob Davies said the mission is part of the implementation of the BIP. The programme is one of government’s industrialisation initiatives to expand the country’s industrial base and inject new entrepreneurial dynamism in the economy as outlined in the Industrial Policy Action Plan (IPAP). “The Black Industrialists Programme is specifically dedicated to supporting the growth and building the global competitiveness of majority black-owned and managed businesses in the manufacturing sector. “The intention is to contribute towards shifting the demographic composition of South Africa’s industrial sector by engaging with and nurturing emerging Black Industrialists to tap into a reservoir of potential jobs, revenue, taxes and innovation,” explains Davies. Davies says that the goal of the programme is to accelerate the growth of Black Industrialists who are actively participating in the national economy, selected industrial sectors and value-chains in order to increase their contribution...

The business meet set for October 5 and 6 is projected to bring together over 2500 investors from Kenya, France and other African countries. Dubbed ‘The Encounters Africa 2017’, the event is already attracting strong interest from French companies, as well as from Francophone countries. Event Coordinator Annemijn Perrin says they expect to connect businesses with the aim of closing deals at the summit. “Most companies are coming here to find partners to work together with Kenyan companies, either to set up in these countries, or to find a partnership to develop their business. Over 100 French companies have already signed up to come, dealing with agriculture, manufacturing, energy, education among others,” Perrin told Capital FM Business. The first edition was launched in 2016 in Paris, bringing together 2700 decision makers from 30 countries. Bilateral trade between Kenya and France remains heavily skewed in favour of France as it’s the is the third largest source market for Kenya’s imports in Western Europe, and the sixth largest market for Kenya’s exports in the bloc. Official data shows that Kenya’s exports to France grew 12 per cent to Sh5.6 billion between 2010 and 2014, while imports rose 20.4 per cent to Sh22.4 billion in the same period. Business France opened its office in Nairobi in 2013 to assist French firms interested in investing in Kenya and neighboring East African nations. Over 70 firms have invested in the country. Source: Capital Business

With a 14.2 kilometre dual carriageway stretch of the Arusha-Holili road almost complete, Tanzania is looking for funds from development partners to upgrade the remaining part of the road. Sources close to the East African Community (EAC) said the government had approached the government of Japan to secure funds for road upgrading towards Moshi. "Negotiations are going on how best to extend the road from Tengeru to Usa River at least and rehabilitate Kikafu Bridge near Moshi," the source told The Citizen on Sunday recently. Arusha-Holili Road is part of the 240-kilometre regional road that extends to Voi in Kenya and is being upgraded within the framework of the East African Road Project (EARP) at $400 million. It is part of the vast network of major roads earmarked for massive rehabilitation throughout the East African Community (EAC) bloc to facilitate cross-border trade and movement of people. Construction started in June 2015 although it was launched by regional leaders in March last year during the EAC Heads of State Summit at the Ngurdoto Mountain Lodge. The idea is to create another major transport corridor in the region linking Mombasa Port with northern Tanzania and beyond. Rehabilitation of the Holili/Taveta-Voi stretch in Kenya is almost complete. When reached for comment, the principal civil engineer with the EAC Secretariat, Mr Hosea Nyangweso, declined to talk about efforts to secure funds for road extension works, but gave hints on proposed civil works. He revealed that the concern of Tanzania and the secretariat was to...

On July 2 President John Magufuli unveiled the Dar es Salaam Maritime Gateway Project (DSMGP), which aims to overhaul Port of Dar es Salaam’s infrastructure by 2023. The project, which according to the World Bank will cost approximately $421m, will see the construction of a new multi-purpose berth at Gerezani Creek, dredging of the port’s entrance channel, and intermodal improvements to both rail and road linkages. The 11-berth port, which handled 13.8m tonnes of cargo last year, is expected to see its handling capacity more than double to 28m tonnes per year by 2020 as a result of the upgrades, while berth wait times will be reduced from 80 hours to 30. The project is being financed in part by the World Bank, which has provided roughly $350m in loans and grants, while the bulk of the remainder – approximately $70m – is being provided by the Tanzania Ports Authority (TPA). The UK’s Department for International Development has also put forward grant assistance. Increased port throughput makes expansion a priority The need for the improvements is clear, with demand steadily increasing. The Port of Dar es Salaam has seen rising traffic over the past five years: between 2011 and 2016 throughput at the port jumped by 3.4m tonnes annually. The pressure the increased traffic puts on the port’s infrastructure and intermodal connections is particularly notable, given that it currently handles roughly 95% of Tanzania’s external trade. Dar es Salaam’s capacity far outstrips that of the country’s next two largest ports,...