The Democratic Republic of Congo (DRC) has signed a Memorandum of Understanding (MoU) with regional trade facilitator TradeMark Africa (TMA) to improve cross border trade and enhance trade links between the country and East Africa Community (EAC) member states. The government of the Netherlands has committed $6.7 million to kick-start the projects. TMA will invest in projects involving already available resources such as water transport, simplifying trade processes through training and facilitating adoption of ICT around Eastern DRC. They will comprise dredging and rehabilitation of Kalundu Port on Lake Tanganyika; capacity building and implementation of Integrated Border Management Systems on the border crossings in Rusizi between Rwanda and Bukavu; rehalibitation of the Ports of Kasenyi on the DRC side and Ntoroko in Uganda; as well as infrastructure work at the border crossing at Goli, Uganda and Mahagi, DRC. “Trade is a way to reduce conflict and unemployment. The agreement will contribute to the training of cross border traders in trade issues, exporting and tapping into regional markets. This will especially benefit our youth,” Prof. Nehemie Wilondja, DRC Directuer du Cabinet noted. TMA Director General David Stanton said they are seeking to replicate the success of similar initiatives between EAC governments and businesses to drive down the costs of trade along the key transport corridors, which include the border with DRC, in the country. The institution has facilitated projects along the Northern Corridor from Mombasa Port, Kenya linking Uganda, Rwanda, DRC and South Sudan; and the Central Corridor connecting Dar es...

Uganda is among the fastest growing countries in East Africa economically. However, despite its competitive position as a logistics hub, businesses still face a variety of high-level logistics risks including lack of private sector strategy on logistics, poor organisational capacity and technical skills, bureaucracy and red tape in setting up logistics operations, poor transport facilities, weak adoption of logistics practices and dysfunctional advocacy. It is against this background that Uganda Chamber of Mines and Petroleum (UCMP), Uganda Freight Forwarders Association, Ministry of Works and Transport and National Logistics platform  supported by Department of International Development (DFID) through TradeMark East has partnered to host a three day  logistics expo that will bring together over 500 participants from logisticians, government officials, civil society organizations, development partners, academicians, and other private sector stakeholders to discuss and define integrated roles each will play in transforming Uganda into a logistics hub. Titled “Transforming Uganda into a Regional Logistics Hub – What is your role?” the event will result in clearer definition of the various stakeholders’ role in and contribution into realizing Uganda’s dream of becoming a logistics hub. Speaking prior to the event,Dr Elly Karuhaga, the Chairman of the UCMP noted that , “Oil and Gas require efficient logistics. Now is the time, we expect the first oil to pop out in 2020, a lot is happening, we need to be ready.” With support from Department of International Development (DFID) through TradeMark Africa, the National Logistics Platform is developing a 10 year Private Sector Strategy that...

Kampala. Uganda is considered a cheaper cargo route for goods bound to South Sudan, than the direct route to from Mombasa to Juba. This was revealed by Mr Richard Kamajugo, the senior director for trade development at TradeMark Africa while giving a keynote speech at the opening of the joint oil and gas convention and regional logistics expo at the Kampala Serena Hotel on Tuesday. He said this was an opportunity for Uganda to leverage if it was to be a hub for logistics within East Africa. “When I looked at the numbers, I saw something which I think we need to build on and grow. That the cost of transport from Mombasa to Juba direct was higher than Mombasa-Kampala and then Kampala-Juba. There is already an opportunity here for us to pick on,” he added. This is part of efficiencies that give Uganda the potential of being a regional logistics hub with centres in Mbarara, Gulu, Kampala and Tororo. Despite the weak infrastructure, Uganda is ranked 58 out of 168 countries, according to the World Bank Logistics Performance Index (LPI) for 2016. It was the 5th country in Africa and top performing low-income country ahead of Tanzania, Rwanda and Cambodia among others. The report highlights that being landlocked is no-longer unfortunate. “For the first time in the history of the Connecting to Compete reports, landlocked countries are no longer automatically the most unfortunate ones, as evidenced by, for instance, the performance of Rwanda and Uganda,” the report reads, inpart....

A visit to Busia County tells a story of ongoing transformation in cross-border trade. The Kenya-Uganda trade, for a long time known for lengthy procedures, expensive processes, a lot of paperwork and middlemen, has changed considerably. Customs and other border control agencies from two states now sit under one roof to facilitate trade and collect revenues with ease. That is the concept of one-stop border post (OSBP). Kenya has since made the OSBP a reality in seven of its border crossing points in a bid to remove the barrier to cross-border trade. The Kenya Revenue Authority (KRA) says custom collections have tripled and clearance time cut from three days to just under one hour since it began implementing the OSBP in June last year. KRA western regional coordinator Kevin Safari says the simplified procedures have attracted traders into the cross-border business as well as reduced smuggling, increasing revenue collections. “With a faster and a simpler process, traders have had no incentive to use illegal channels to bring in goods into the country as they are assured of a faster and a more transparent process. “We have also reduced the time they would take to cross the border, meaning they can trade more volumes which is also a revenue boost for us,” said Safari said during a tour of the Busia border point. National economy At the Busia border point, which is major entry and exit point between Kenya and Uganda, past delays forced trucks ferrying goods between the two countries...

Kenya's status as an exporter of products to the East African market continues to be undermined by cheap direct imports from China, according to the latest data. This is threatening the country's industrial growth, which relies on the same market to sell its products. The World Bank, which had earlier warned of the threat due to imports from the Asian economic giant, now says Kenya's trade performance is fast declining due to an influx of goods from China into Uganda and Tanzania who are major export destination for the country. The data shows that exports contracted by an estimated 23.3 per cent in 2016 despite the region's relative resilience underlined by a growth in the East Africa Community (EAC) intraregional business. The imports now threaten Kenya's regional economic dominance where the country's competitiveness has remained highest over time. "Kenya has become less competitive in EAC due mostly to cheaper products to EAC markets from elsewhere, in particular East Asia (including China). For instance, in both Tanzania and Uganda, the share of China exports has increased from some 45 per cent to 60 per cent over the past decade. This has not only driven down market shares of Kenya's exports, but also that of other countries," the global lender said it its latest economic update. The narrowing space is said to be affecting both agricultural and manufactured products. The World Bank says that while Ugandan and Tanzanian Chinese imports grew at 12.4 and 16 per cent respectively over the 2000-2015 period,...

South Sudan has secured $106 million from the World Bank and the African Development Bank, in part to pay for food imports as millions face starvation and to fund the construction of a road to trade partner Kenya, its finance minister said. Parts of the war-ravaged country are suffering famine. A three-year civil war has forced millions from their homes, sent the oil-producing economy into a tail-spin and devastated crop harvests, just as the worst drought in year’s bites. Finance Minister Stephen Dhieu Dau told Reuters late on Monday that the government had signed a deal with the World Bank for a $50 million grant "to meet the food gaps in South Sudan". Speaking by telephone from Washington where he had been attending meetings with lenders, the minister said those funds would be disbursed soon and finance food imports from Tanzania and Uganda. Dau said a further $8 million agreed with the World Bank was earmarked for the construction of a road connecting the capital Juba to Kenya. Separately, the African Development Bank will provide loans and grants worth $48 million to help strengthen the recession-hit economy, the minister said, without giving details. South Sudan, the world's youngest country, descended into civil war in 2013 after President Salva Kiir fired his deputy, unleashing a conflict that has spawned a patchwork of armed factions. The fighting has hit oil production and food cultivation amid soaring inflation. The IMF says the economy shrunk by almost 20 percent in the two years through...

The Kenya Revenue Authority (KRA) says it has tripled custom revenue collections in its seven border points after it began operating one-stop border posts in June 2016. The move, which put together bureaucrats involved in cross-border clearance processes under one roof, has also cut cargo clearance time from the previous three days to just under 1 hour, the agency said. KRA Western Regional Coordinator Kevin Safari said the simplified procedures have attracted traders into the cross order business as well as reduced smuggling hence the increased revenues. “With a faster and a simpler process, traders have had no incentive to use illegal channels to bring in goods into the country as they are assured of a faster and a more transparent process,” Mr. Safari said during a tour at the Busia border point. “We have also reduced the time they would take to cross the border meaning they can trade more volumes which is also a revenue boost for us.” The Busia OSPB which is major entry and exit point between Kenya and Uganda has a one-stop clearance point for cargo and people, with various government agencies sitting in one office to fasten the clearance procedures. Kenya has 35 gazetted entry and exit points with four more being proposed in the Western border with Uganda. Source: Asempa News

Kenya’s private sector has opened fresh talks with Tanzania in a fresh bid to convince the least-developed East African Community peer to sign the stalled trade deal with 28-member European Union. The Kenya Private Sector Alliance has entered into a partnership with the Tanzania Private Sector Foundation to discuss regional and international trade, among key issues being the Economic Partnership Agreement between the region and the European Union. The partnership was entered into last Friday, Kepsa business regulatory environment consultant Patrick Tonui said yesterday. “We want to look at how we can support trade between us and the international markets. In our discussion, they (TPSF) recognised that this is a conversation they need to have in Tanzania, and they are having it,” Tonui said during the Kepsa’s quarterly media briefing in Nairobi. Tanzania is perceived to be the stumbling block in the deal which gives the region quota-free and duty-free market access to the EU. Only Kenya and Rwanda have signed and ratified the EPA deal. Uganda has shown intentions to signs, according to East African Affairs Principal Secretary Betty Maina. Tanzania has declined to sign the pact twice in 2014 and 2016, saying it will hurt the growth of her industries. Burundi on the other hand cited the wavering diplomatic relations with the EU which came after President Pierre Nkurunziza re-election bid. Kepsa however believes that private sector intervention in all EAC member states will lead to the conclusion of the deal. “We want our country to grow and...

American roasters are expected to raise coffee purchases from Kenya by a quarter to Sh3.5 billion annually after the country showcased its produce in the ongoing symposium in Seattle, US. Coffee Directorate made a pitch for Kenya’s specialty coffee during the exhibition to have the US, which pays a premium price for the commodity, increase its uptake 25 per cent. America buys seven per cent of Kenya’s annual export of 46,000 metric tonnes but it pays highly compared to the other top buyers. US buyers currently pay Sh500 a kilogramme compared to Germany that is the leading importer but pays Sh300 for the same quantity, according to the directorate. “We have pushed for increased sale from the American roasters and they have already given an undertaking to increase the sales from what they currently buy,” said Agriculture Cabinet secretary Willy Bett. During the financial year 2015/2016, American roasters paid Sh30,000 per 50 kilogramme bag compared with Sh25,000 that Germany offered and Sh24,000 that Belgium gave for the same quantity. The Coffee Directorate is exhibiting Kenya’s specialty coffee at the annual global coffee meeting that brings together key stakeholders in the sector. Kenya was chosen as a portrait country in this year’s exhibition in Seattle making it the focus of the activities at the coffee trade fair that started on April 19. The Specialty Coffee Association of America Symposium and Exhibition, organised by the Specialty Coffee Association of America is one of the single largest market avenues where coffee producers meet...

Intra-Africa trade took 40 per cent of the exports worth Sh234.1 billion indicating a need to ease movement of goods and services. The Economic Survey 2017 shows the East African Community that brings together Kenya, Uganda, Tanzania, Rwanda and Burundi continued to provide Kenya with a ready market that accounted for 51.9 per cent of the intra-Africa trade. The bloc, which is pursuing integration at economic and political levels, has also provided a ready market for Kenyan investments in manufacturing, banking and provision of professional services. Somalia that is slowly returning to normalcy provided Kenya with the largest gains as export volumes of fresh and processed products doubled. Exports in 2016 stood at Sh17.9 billion, an indication that a stable Mogadishu means good business for Kenya. Uganda remained the biggest market for Kenyan goods where Sh62 billion worth was sold with Rwanda receiving goods valued at Sh17.5 billion, Burundi Sh7.2 billion and Tanzania recorded Sh34.8 billion up from 2015 Sh33.7 billion. European Union came second accounting for 24 per cent of the exports worth Sh141.5 billion while the US imported goods worth Sh52.9 billion. Source: Business Daily