Kenya hopes to boost regional trade by improving the efficiency and clearance of cargo and passengers on the Northern Corridor by opening a one-stop-border-post (OSBP) with Uganda at the Suam crossing in northwest Kenya. The upgrading of the Suam border post is coming slightly over one year after that of Busia and Malaba OSBPs. The Suam border post, and the subsequent opening of the Kitale-Suam-Kapachorwa trade route is expected to ease pressure on Malaba, which is a major entry and exit point between Kenya and Uganda, and onwards to DR Congo with about 1,000 trucks crossing daily. “The congestion at Malaba is really frustrating to the business community because it is the main crossing point to Uganda,” Wanja Kiragu, operations director at East Africa Online Transport Agency told The EastAfrican. While it takes an average of five hours for trucks to get cleared, at the worst, they could queue the whole day. In recent weeks, traders using the border crossing have been complaining of extended delays occasioned by the intermittent failure of the new version of Asycuda World tax system that Uganda Revenue Authority is still testing. The situation is bound to get worse when Kenya Revenue Authority starts implementing the Integrated Customs Management System in the coming months to replace the obsolete Simba system. Kenya is concerned that although Uganda still prefers the Northern Corridor, Rwanda, Burundi and the Democratic Republic of Congo are increasingly turning to the Central Corridor in Tanzania. Another concern is the declining intra-East Africa Community...

Tanzania more than tripled the number of non-tariff barriers (NTBs) it imposed on its regional partners last year, according to the East African Community Common Market Scorecard 2016. Kenya more than doubled the number of barriers, and Uganda recorded the highest compliance rate. According to the scorecard, Tanzania’s NTBs rose from seven to 24 and Kenya’s increased from 10 to 23, putting into doubt the two countries’ commitment to easing intra-EAC trade. In Uganda, at least 18 of the 20 capital transactions were restriction-free. The scorecard, which analyses the movement of capital, services and goods, shows that the EAC member states are enacting laws and enforcing regulations that go against the spirit of the Common Market Protocol. In the past year, member countries have either passed new laws, amended regulations or are in the process of doing both, which will have a negative impact on some of the provisions of the EAC Common Market Protocol. Trade relations At a meeting in Dar es Salaam earlier this month, Kenyan and Tanzania businessmen under the Tanzania Private Sector Federation (TPSF) and the Kenya Private Sector Alliance (Kepsa) deliberated on trade relations between the two countries, highlighting some of the barriers that are against the spirit of integration. “The local content shareholding requirements by countries within the region restricts investment from other EAC countries because they are treated as foreigners. It is inconsistent with the provisions of the Common Market Protocol,” TPSF chief executive officer Godfrey Simbeye said. On the movement of capital,...

NAIROBI, Aug. 27 (Xinhua) -- After a ride on Kenya's newly-launched Standard Gauge Railway (SGR), Nairobi Railway Museum guide Daniel Shikoli felt an urge to tell visitors what it meant for the country to run a new, modern rail link after a century-long hiatus in rail projects. Like Shikoli, Kenyans have good reason -- and ample opportunities -- to be excited. A trip by the Chinese-built SGR linking the port city of Mombasa and the capital Nairobi takes less than five hours for an otherwise tedious journey either by road or by a colonial-era railway. Kenya Railways currently operates one daily service from Nairobi to Mombasa and another from Mombasa to Nairobi and is looking into the possibility of increasing the frequency of trains. "It's so nice. The trip took only more than four hours," said Shikoli, who was among the first Kenyans to ride on the modern train. Shikoli's one-off experience with the SGR came about thanks to a reward ticket from Kenya Railways which runs the Nairobi Railway Museum. But soon, his encounter with the new railway will become long running -- the museum has dedicated a room to the SGR and is in preparations to put the SGR section on show. He said many newly-weds in Nairobi would visit the museum to avail themselves of the ages-old locomotives on display as a setting for their pre-wedding photograph. And a large number of school children patronize the museum for extended learning of history. "They'll have more to see...

The East African Community countries in conjunction with public and private production companies in the countries have considered a ban on import of new shoes and second hand shoes after signing of memoranda awaiting Head of States signatures in bid to conserve, utilize, improve local production, supplies and sales among the member countries. “The challenge we have had previously that has been in the center to undermine local production is fear for competition between public and private leather production companies. It is good that we realised that we can do much better if we work together hence the move to have the memoranda signed,” acknowledged Mr.Robert Njoka, Director REDDAMAC Leather Centre. This emerged during a press briefing by stakeholders in the industry after Kenya Prison Service Officers were awarded for excellence after successfully completing 3 months special training within the sector. The move is aimed at seeing public and private companies in the industry work together to improve and increase production locally to boost the members countries economy. Three months ago, the Kenyan government partnered with one of the leather manufacturing pioneer company locally that saw selected prison officers go through extensive training in Management, Manufacturing and Equipment service and maintenance. The officers from Athi River and Kamiti Maximum Prisons are now tasked with training as many prisoners as possible to boost production in the Kenyan leather industry. Source: Citizen Digital

Kenya's Mombasa port on Friday launched three China-aided container scanners to enhance efficiency in cargo clearance. Speaking during the launch ceremony, John Njiraini, Commissioner General of Kenya Revenue Authority (KRA), said the newly-installed non-intrusive cargo scanners include two fixed units and a mobile one, which will enhance KRA's capacity to scan all cargo of interest from a risk management perspective. "Presently we scan about 500 containers every day and expect to increase this to about 750 containers or approximately 30 percent of all cargo with the newly-installed equipment," he said. Njiraini recalled his visit to China's Shanghai and the port there. "I've seen how they use technology to facilitate customs process. There's no people at the big port and all the work is done automatically," he said, adding that Kenya will continue deepening engagement with China in utilization of customs clearance technology. The Kenya official also expected the scanners to better facilitate business flow, clamp down on smuggling and thus generate more revenue. Guo Ce, Economic and Commercial Counselor of the Chinese Embassy in Kenya, said he hoped the three advanced container scanners could help Mombasa port operate more efficiently and safely, so to drive local economic development and spur Kenya's economic growth. He said with the two countries' economic cooperation deepening and expanding, areas adjacent to China-driven mega flagship projects are becoming a booming economic belt, where accelerated growth and investment have led to revitalized development in Kenya. Guo said China's two centenary goals mirror the aspirations of Kenya's...

East Africa’s two leading economies, Kenya and Tanzania, recorded a drop in growth in the first quarter of this year, due to a slowdown in manufacturing, agriculture and construction sectors. Tanzania The Tanzanian economy slowed down to 5.7 per cent between January and April, compared with 6.8 per cent over the same period last year. Kenya recorded 4.7 per cent growth in Quarter 1, down from 5.9 per cent in the same period of 2016. Data from the Tanzania National Bureau of Statistics shows that the country’s construction sector slowed down to 8.4 per cent from 8.9 per cent a year ago, while growth in the transport sector almost halved — to 4.1 per cent from 7.9 per cent. “During the period under review, mining and quarrying registered the highest growth rates of 35.3 per cent, followed by information and communications at 13.8 per cent. The surge in growth of the mining sector was as a result of increased production of gold, tanzanite, copper and coal,” the statistics agency said last week. Tanzania is Africa’s fourth-largest gold producer and also has vast deposits of coal, uranium and gemstones. But in recent months, it has clamped down on what it termed as exploitation of its minerals by mining firms, which saw the country’s largest gold miner Acacia slapped with a $190 billion tax bill. The country also saw its agriculture sector slow down to 2.6 per cent, a 0.1 per cent drop from last year’s figures, due to poor weather. Tanzania...

Container ship average working time at the port of Mombasa improved by half a day to record 1.93 days in the week ended August 16, Kenya Ports Authority said in a statement yesterday. This was an improvement from 2.55 days registered the previous week. KPA also indicates that container dwell time at the port dropped marginally to 4.35 days, down from 4.85 days the previous week. “A total of 10 container ships went alongside both the existing and the new container terminal two to discharge 11,449 Twenty Feet Equivalent Units (TEUs) full and empty and also loaded for export another 9,230 TEUs,” during the week under review, the statement added. A total of 10,438 TEUs were delivered out of the port through road transport marking an increase of 1,567 TEUs or 17.66 per cent compared to the previous week. However, deliveries by rail dropped to 109 TEUs, down 48 per cent. The total container population rose to 17,226 TEUs from 15,244 TEUs the previous week registering an increase of 1,982 TEUs or 13 percent. The yard population comprised 7,325 TEUs awaiting pickup order, 4,647 TEUs ready for collection 771 TEUs full exports (nominated/un-nominated). Others included 441 TEUs for transshipments, 3,261 TEUs empties and 781 TEUs at the customs warehouse. Cargo moved to the Container Freight Stations (CFS) recorded 818,494 TEUs out of which 814,690 TEUs were cleared leaving a balance of 3,804 TEUs. The import breakdown showed that 3,705 TEUs were local bound while 5,205 TEUs were for the transit...

Over the last 20 years, Rwanda International Trade Fair has grown by leaps and bounds becoming a strategic platform through which major businesses from around the world have penetrated the Rwandan market. The annual exhibition, the largest in the country, is organised by Private Sector Federation in partnership with the Ministry of Trade Industry and East African Community affairs. Many foreign exhibitors that first came to Rwanda through the annual exhibition have since set up shop in the country. Aware of this, Private Sector Federation has stepped up efforts to promote the event beyond Rwandan borders, encouraging foreign businesses to come and showcase their products but also consider investing in the country, industry leaders said. Movit Products Ltd, a Ugandan cosmetics company, is one of the foreign firms that first came to Rwanda through the exhibition and has since set foot in the Rwandan market. This, officials say, has helped create employment for many Rwandans but also boosted the country’s economy in one way or another. John Nabirinda, the Movit country distributor, says the company set up shop in Rwanda thanks to the trade fair. “We were attracted to the market. We came as exhibitors in the expo only to realize that there was actually a good market for our products,” he told The New Times. The other foreign firms that have entered the local market through the expo include Dubai’s JKK International from Dubai (have since started a construction company), Ugand’a Mukwano Industries (laundry detergents, cooking oil etc) and...

Some eyebrows were raised when South Africa’s President Jacob Zuma announced last weekend that Comoros had been admitted as the Southern African Development Community’s (SADC) 16th member. The announcement came after the 37th Ordinary Summit of the Heads of State and Government of the organisation in Pretoria. Officials disclosed that Burundi had also applied but had been declined, for now. They said Burundi first needed to resolve the internal political instability that President Pierre Nkurunziza provoked in 2015 when he took an apparently unconstitutional third term in office. But they seemed confident that Burundi would eventually be admitted. Why the interest in joining? SADC doesn’t, on the face of it, seem a very alluring organisation. Vera Songwe, the Economic Commission for Africa (ECA) executive secretary, painted a rather bleak picture of the region’s economy in her speech to the summit. She said overall growth in the region had declined to 1.4% in 2016, from 2.3% in 2015. The share of manufacturing in the region’s overall GDP had also declined, from 14.1% in 2005 to only 11.1% in 2015. SADC countries continued to rely heavily, for over 60% of total exports, on raw commodities, in particular minerals – with minimal value added. In 2016 the region also registered a deficit of $17 billion in goods and services, while lower revenues from diminished global commodity prices and depreciating currencies inflated fiscal deficits and public debts. SADC’s overall government debt rose from 42% of GDP in 2014 to 46.8% of GDP in 2015....

AS part of its continued support to Tanzania, the UK government has pledged US 450 million dollars (about 1.026trl/-) support, to improve roads and port infrastructure, education and industrialisation. According to a statement issued by the Directorate of Presidential Communications, the announcement to that end was made by the United Kingdom's Minister of State at the Department for International Development, responsible for Africa affairs at the Foreign and Commonwealth Office, Mr Rory Stewart. The visiting minister announced the funding after meeting with President John Magufuli at the State House in Dar es Salaam yesterday. Mr Stewart said the aid would be channeled into projects for improving the quality of education and enrolment of pupils, as well as strengthening road and port infrastructure. In addition, the funding would help boost commercial farming and improve meat and cotton processing factories. Speaking at the occasion, Mr Stewart praised President Magufuli for his staunch moves to curb corruption and opening up access to education for many young Tanzanians. "I visited one school in Dar es Salaam yesterday (Tuesday) and I was impressed how the free education policy in Tanzania has played a significant role in increasing enrolment of pupils. "During the visit I had an opportunity to speak to parents and teachers; enrolment of pupils has increased two times within a short period and has brought major reforms; education is everything," Mr Stewart remarked. 1.026trl/- a big booster He pledged his country's continued support for cementing bilateral relations, expressing optimism that the just announced...