Since the beginning of this century, the rapid economic growth of Asian economies, particularly China, has brought about immense economic benefits for Africa. This is because over the last few decades, to support its economic development, China has voraciously bought and consumed all types of commodities in Africa and globally. This enormous demand for commodities not only made the African natural resources more valuable, but also brought about a substantial amount of export revenues to Africa. Moreover, the massive inflow of export revenues has translated into a relatively high growth rate, that eventually caused people to start talking about the ‘Africa rising’ narrative. However, the impact of the 2008 global financial crisis, as well as the recent economic slowdown in China, has been hugely felt in the continent. Hence, a better insight in Africa’s global trade may provide a better idea of how Africa will fare in the future. Trends in Africa’s global trade According to data from the International Trade Centre, the 2016 global trade of the African continent had increased by a significant 238% to reach US$794.7bn from $235.4bn in 2001. Moreover, during those last 16 years, Africa received a cumulative amount of $5.8tn for its exports. This has definitely helped the African countries to grow. However, looking at a granular level, we find that trade is in fact on a decline. From 2001 until 2012, the African global trade had increased steadily to reach a peak of $1.2tn (a tremendous 427% increase), but from 2012 to 2016,...

The President of Rwanda Paul Kagame has called for regional and continental cooperation saying its key in boosting tourism by increasing the numbers of visitors as well as facilitating trade and investment in different countries of East Africa and Africa at large. During the opening of the 41st World Tourism Conference in Kigali Rwanda, Kagame noted that there’s need to implement the existing agreements on open skies, and easing visa restrictions among other issues. The conference organised by Africa Travel Association under the theme “Unlocking Africa’s Tourism Potential” attracted of tourism key players in different countries in and outside Africa. These included academia, online travel companies among other tourism stakeholders. “The single tourist visa and passport-free travel between Kenya, Rwanda and Uganda, is already a reality. So is visa on arrival in Rwanda for all African nationals,” read part of his speech. Kagame added that there’s need to take full advantage of new technology, particularly innovative digital platforms, to attract more visitors as well as offering new experiences, and provide better services. “Our national carrier RwandAir continues to expand to destinations within Africa and beyond, and will soon have a more modern, efficient base when the new airport in Bugesera is completed.” Lynette Nakamanya a tourism student at Makerere University who attended the conference told New Vision that such conference is necessary because the policy training, topical discussion by panelists and equips tourism actors with key knowledge on transforming the sector She added that currently although the Government of Uganda and...

Cargo handling at the Mombasa Port got a major boost earlier this week with the arrival of two ultra-modern diesel-electric cranes. Eco-hoppers, which will be received in December to complement the cranes, will provide dust and spillage-free unloading through a control system that minimises escape of dust during discharge and reduces running expenses on average by 30 per cent. The two harbour cranes are part of the Kenya Ports Authority’s Mombasa port improvement programme aimed at reducing carbon emissions and helping the port, its users, and other stakeholders to adapt to the effects of climate change. Simultaneously The cranes will enable the port to handle two vessels at a time, which will, in turn, reduce ship waiting times and greenhouse gas emissions from their diesel powered engines. The cranes, funded by Trade Mark East Africa (TMA) through the UK Government’s International Climate Fund facility, were procured at a cost of Sh868.27 million. They are the first of their kind to be deployed in East and Southern Africa. 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. TMA has been working closely with KPA to implement short-term and high-impact projects, including the improvement of Gate 18/20 which enhanced port access. Source: The Standard Digital 

A new strategy that is designed to increase tax compliance among clearing agents has been unveiled by the Rwanda Revenue Authority (RRA). Gadi Munyentwali, the RRA deputy commissioner in charge of risk management, said the compliance improvement plan aims at ensuring that clearing agents and importers meet their tax obligations as prescribed by law. “We developed this strategy to further improve compliance in the sector. It will also help us understand challenges that deter compliance, as well as the associated risks,” Munyentwali said. The plan runs from this year and throughout 2018. “According to our experience, some importers connive with clearing agents to avoid paying their taxes,” he added. He speaking during a tax sensitisation seminar targeting clearing and forwarding agents in Kigali on Tuesday. “The tax body official said agents sometimes give importers wrong information which compromises compliance with tax regulations,” he added. Munyentwali noted that noncompliance and international misclassification of goods were still widespread among clearing agents, adding that the revenue body had discovered a “significant lack of classification knowledge among agents”. “We still see intentional use of fictitious invoices as well as significant abuse of investment certificates and exemptions among some agents. We are, therefore, confident that the compliance improvement plan will help us to address these challenges going forward,” he told the agents. Unscrupulous agents cautioned Meanwhile, the revenue authority has warned noncompliant clearing agents and freight forwarders that it will start publishing names of any agents involved in malpractices for criminal prosecution. “We shall equally...

According to JLL's 2017 Africa Prime Industrial Report, within Africa's more diversified economies, the prime industrial sector is set to emerge as an attractive asset class over the short to medium term. Anthony Lewis, head of investor services for JLL Sub-Saharan Africa comments, “With forecasts of sustained high economic growth rates in several African countries, there is quite some room for the development of prime logistics and warehousing space in markets that have historically been under-served. This trend, when coupled with the growing logistics requirements of sophisticated occupiers entering these high-growth markets, suggests that sturdy growth drivers should push the establishment of the prime industrial sector. JLL’s demand analysis finds that: In the top 11 African countries, demand stands at c.15-million m2 for all grades of space as at Q2 of 2017. If only 10% of this demand is for prime space, the market should be providing c.1.5-million m2 of prime space to the market. The reality is that far less than this is being provided currently. In addition, over the next decade total demand is forecasted to grow to over 20 million m2. Once again if only 10% of this demand is for prime space, the market should be able to sustainably provide 2-million m2 of prime space to the market by 2027. Given the clear lack of good quality prime industrial space, particularly in the distribution and logistics markets, many new prime developments should be springing up over the next decade. On a regional basis, demand in East Africa...

A port chaplain in Mombasa, Kenya, has spoken about how the crew of a fishing vessel were not paid their wages, denied shore leave and had to endure poor living conditions on board ever since their ship was detained at the port more than two years ago. The Taiwanese-owned ship, MV Lean Fong Tsai, first arrived at Mombasa with an Indonesian crew in December 2014. It was detained by Kenya Maritime Authority when port state control officers found the ship to be unseaworthy. Repairs were still not done by 2015, so the crew were repatriated and a new crew comprising 11 Filipinos, and a Taiwanese engineer and master, were subsequently brought in to take over without the authorities’ knowledge, said George Sunguh from the seafarers’ charity Apostleship of the Sea (AoS). “The captain repeatedly told the men ‘we will sail next month’, but it never happened. The crew were only provided with rice and chicken, with no vegetables and fruit, and limited drinking water,” said George who is the AoS Coordinator in Mombasa, adding that living conditions on board were dismal. George added, “The ship owner decided to repatriate the crew without the authorities’ knowledge but one of the seafarers was able to contact police overseas. It was at this point that AoS and the International Transport Workers’ Federation (ITF) intervened to assist the men.” While they were stranded, AoS provided pastoral and practical support to the seafarers; listening to their concerns and helping them keep in contact their families...

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,...

Interior Cabinet Secretary Fred Matiangi while presiding over the launch of the new passports on Thursday described the rollout as a milestone in efforts to ensure the digitisation of identification information for all citizens. “Our departments are coming together and you can see that we are stepping on to a modern digital platform of managing identification and information of our citizens,” Matiangi said during the function also graced by Pakistan High Commissioner to the country Raza Bashir Tarar, his cabinet colleagues Charles Keter (Energy and Petroleum), Joe Mucheru (ICT), Phyllis Kandie (EAC, Labour and Social Protection), Interior Principal Secretary Karanja Kibicho and Gordon Kihalangwa, the Director General at the Directorate of Immigration and Registration of Persons. Matiangi lauded the staff at the directorate of immigration for ensuring the timely adoption of the new electronic passports, something he said the government had taken with seriousness since EAC Heads of States agreed on the rollout at the 17th Ordinary Summit held on March 2, 2016 in Arusha. The new travel documents according to Matiangi comply with guidelines set by the International Civil Aviation Organisation (ICAO), making them admissible globally. Matiangi however warned immigration staff against irregular issuance of the passports saying the integrity of the new passport will be protected at all cost. “We want to be even much more serious than we’ve been in handling our identification passports. Our passports must not be in the hands of the people who ought not to have them. The integrity of these documents must...

Euromonitor International’s new data showed international arrivals to Africa grew by 6.5 percent in 2017, with more than 18.6 million people traveling to the continent. Five years ago, that number was 16.4 million. Africa’s key travel markets include South Africa, Kenya, Nigeria, Mozambique, Cameroon, Mauritius and Tanzania. These countries accounted for 70 percent of international trips to the Sub-Saharan African region. One of the key growth drivers at the moment is digital integration, which is helping increase Africa’s footprint on the world travel map. Another is the increasing interaction between hotels, airlines and car rental companies. Platforms such as social media, meta-search engines and the penetration of online travel agents to better communicate with one another provide more robust travel options for visitors. “Many countries are moving away from only promoting Africa as a traditional safari destination, exploring other niche categories such as beach and medical tourism,” said Euromonitor Research Analyst Christy Tawii. “The travel and tourism market continues to introduce products that suit different types of travelers, accounting for strong growth in major cities across Sub-Saharan Africa,” Tawii added. The outlook for Sub-Saharan Africa continues to be strong. Euromonitor predicts a growth to 25 million trips by 2022 and says that ongoing growth will be driven by increased interest from overseas visitors due to more competitive rates. While price will be a factor, destination marketing campaigns and an increase in airlift, especially from long-haul markets, will also drive inbound tourism. Making Africa easier to reach is key. Air prices for travel to the continent remain...

The contrast couldn’t be starker. As U.S. President Donald Trump’s government continues to champion isolationism and undermine decades-old international relationships, China is rolling out its Belt and Road Initiative, or BRI, a project to build a new “Silk Road” that could change the meaning of globalization itself. Africa is at the margins of both of these developments, but its future will be determined by them. As someone who grew up in Africa, the project stirs a tangle of emotions. While it will directly affect East and North Africa, there is the chance that it could spur desperately needed development all along Africa’s eastern seaboard, where countries are still trying to recover from the proxy conflicts of the Cold War. For me, it comes down to African agency: Are African governments doing enough to achieve gains that can be shared? Or are their citizens being left to pick up the tab? The issue isn’t just about an increasing amount of Chinese power in Africa, but about what local leaders will allow outside forces like China to do with that influence as well. The breakdown of trust between African leaders and the African population is being put to the test ― and even exacerbated ― by ventures like Beijing’s Belt and Road Initiative. Breaking Down The Belt And Road Initiative The Belt and Road Initiative breaks down into two parts, one over land and another over sea. The former, known as the Silk Road Economic Belt, is made up of interlinked rail lines, communications networks, and oil and gas pipelines running from Chongqing in China...