Archives: News

Netherlands Commits $6.7m to Enhance DRC’s Trade Links with EAC States

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...

USA 27.4 billion worth mega projects attract Global Construction players in East Africa

After a very successful first edition that exceeded all expectations, the official exhibition of Kenya’s National Construction Week is coming back at the Kenyatta International Convention Centre in Nairobi from 1-3 November 2017. The Big 5 Construct East Africa welcomed over 8,500 participants in 2016, hosting 188 companies from 21 countries, and 144 key buyers who directly influence the purchasing of products and services for projects valued above USD 50 million. The event, co-located with the National Construction Authority’s Annual Construction Research Conference, also offered 24 hours of networking and 17 certified workshops attended by almost 4,500 industry professionals. On its second edition, The Big 5 Construct East Africa 2017 is expected to grow even bigger, expanding across 5 exhibition halls and hosting over 200 local and international exhibitors. “With East Africa being the fastest growing region in the continent, the event is setting itself as the central meeting place for global manufacturers of construction products to network and do business,” Andy Pert, Exhibition Portfolio Director, said. “Demand of innovative solutions for the built environment in countries like Kenya, Tanzania, Uganda and Ethiopia is booming. The Big 5 Construct East Africa is proud to connect local and international stakeholders in Nairobi supporting knowledge sharing as well as contributing to the long-term development goals of the Kenyan Government,” Mr Pert added. There are 43 mega projects currently going on in the region, with a total value of USD 27.4 billion. According to the latest 6W research commissioned by The Big 5...

Contractor to complete first berth of Kenya Lamu port in mid 2018

NAIROBI (Xinhua) -- Chinese construction firm, China Communication Construction Company (CCCC) is on course to complete the first berth of the Lamu port in mid 2018, Kenyan officials said on Thursday. Lamu Port-South Sudan-Ethiopia-Transport (LAPSSET) Corridor Development Authority Director General Sylvester Kasuku told a media briefing in Nairobi that dredging works began in October 2016 and the work is currently 20 percent complete. "China Communication Construction Company is expected to complete construction of the three berths by the year 2020 at a cost of 480 million U.S. dollars," Kasuku said. The East African nation has so far spent 120 million dollars for the construction of the port with another 100 million dollars earmarked for the next financial year. Lamu port will have a total of 32 berths and is part of the LAPSSET Corridor Program which will cost over 26 billion dollars to complete. Kasuku said that the Kenya government will fund construction of the first three berths while the rest are expected to be funded by private sector under a public private sector framework. The South African government has already signed a Memorandum of Understanding to develop the first three berths in the Lamu port. "The South Africans are currently in the phase of submission of proposals and are undertaking discussions with relevant government agencies before commencing construction works," Kasuku said. The port has also received inquiries from ten private firms seeking to invest in the infrastructure project. Kasuku said that Lamu port is expected to surpass Mombasa port...

EU TO INVEST 20 BILLION SHILLINGS IN MOMBASA PORT PROJECTS

The European Union (EU) is considering investing at least 20 billion shillings (about 200 million dollars) on Kenyas Mombasa port projects, including upgrading the berths. The European Investment Bank (EIB) has received a request for financing for Kenyas ports, which are being processed in the form of a loan, while Regional Director of Trade Mark East Africa Ahmad Farah said that although a final decision had been reached, there were high-level negotiations and funding would come soon . The loan of $ 180 million would soon come, while the $ 20 million grant would be considered, he said, adding that the funds would be used for continuous upgrading of the pavements and would work closely with the Kenyan Revenue Authority in the project, Simba with a new one. Source:Cement Kuwait

New economic order for Kenya

When the standard gauge railway is launched on June 1, ahead of schedule, it shall be the herald of a basket of unprecedented socioeconomic benefits for Kenya and the region. There is the obvious improvement in the transportation of people and goods between the Port of Mombasa and its hinterland. This will reduce the cost of doing business, and the price of goods and services. But most importantly, the SGR promises to spawn new industries and businesses along the Corridor, creating jobs. Already, through on-the-job training, technological transfer and institutionalised learning, China Road and Bridge Company, the contractor for the SGR, is preparing the next generation of Kenyan railway workers. Formally, some 60 students are currently undergoing a four-year undergraduate course in railway engineering at Beijing Jiaotong University. Next year, CRBC plans to send a third batch of 40 students. Locally, 767 students are enrolled at the Railway Training Institute. They include 102 local students who graduated in July 2016 and 665 currently in session. This training will eventually cover all the estimated 3,000 staff who will be required to operate and maintain the SGR in seven years. This will ensure that Kenya has a well-trained pool of personnel that can operate and maintain the SGR. During construction, the SGR has become the biggest employer outside government. Some 12,932 staff were on site as at the end of last month. A significant 11,004 of these are Kenyans, making up 85.1 per cent of the workforce. Some 1,928 are Chinese managerial...

Mwanza gears up for Uganda cargo… dry port in the works

The dry port is part of an undertaking which Head of State, Dr John Magufuli, made at a joint meeting with Ugandan President Yoweri Museveni during his two-day State Visit to Tanzania last February. Dr Magufuli and his Ugandan counterpart agreed to maximize business opportunities that would boost the economies of their two neighbouring countries. In 2016, business between Tanzania and Uganda stood at 178.19bn/-; it now stands at 193.59bn/-, according to Dr Magufuli. The two leaders also agreed to establish a dry port in Mwanza for Ugandan business people only, as well as repairing MV Umoja so that it can ferry goods from Mwanza to Uganda, in order to reduce the cost of transporting cargo. The move was welcomed by his Ugandan counterpart who said it was the second liberation offered by Tanzania to Uganda after the support it offered Uganda in liberating the country from the dictatorial leadership of Idd Amin Dada. “I salute the government of Tanzania for the envisaged construction of the Standard Gauge Railway and modernizing the Mwanza port as the services will now be cheaper, faster, more efficient and modern,’’ said Mr Museveni. At the weekend, the Mwanza Region Business Development Officer, Mr Yesaya Sikindene, said already the port experts and regional leaders including Mwanza Regional Commissioner (RC), Mr John Mongella had visited the site where the dry port will be constructed. However, he said that the cost of the construction was yet to be established, although he remains optimistic that everything was on...

EAC passport for release next year

The EAC six partner states, it was revealed at the just ended 35th EAC Council of Ministers’ meeting here, have been directed to start issuing the new East African machine readable Electronic- Passports by January 31, 2018 after preparedness of each partner state was considered. The council directives come on the backdrop of the 17th Ordinary Summit of the EAC Heads of State that directed the partner states to issue the new EA e-Passport by January 1, 2017 and execute the phase out programme for the current machine readable East African and National Passports between January 1, 2017 and December 31, 2018. According to the 35th EAC Council of Ministers’ official report, Burundi reported that through the Public Private Partnership (PPP) arrangement, the country had completed the process of procuring the EA e-Passport booklets and was ready to issue the document by April 3, 2017. Kenya, Uganda and Rwanda reported to start issuing the New International EA e-passport not later than April 2017 while Tanzania will be ready to issue the East African e-Passport by January 1, 2018. The e-Passport is expected to boost free movement of people across the East African region and facilitate implementation of the Common Market protocol, which guarantees the right to move between countries in East Africa. The EAC e-Passport will have diplomatic, service and ordinary categories, different from the current machine readable passports issued by the partner states. It will be valid for up 10 years while the diplomatic passport and service passport will...

Kenya’s $4bn railway gains traction from Chinese policy ambitions

A few miles outside the town of Makindu on the Nairobi-Mombasa road sits a heavily guarded compound. Only the sign outside, in red Chinese lettering, indicates that this is the project site for “section 9” of a new $4bn Chinese-built railway that will run 300 miles between the Kenyan capital and the Indian Ocean port. The railway is the centrepiece of an infrastructure splurge by President Uhuru Kenyatta, who faces re-election this year and whose Kenyan government has invested heavily in roads, pipelines, oil development and geothermal power. It is also one of China’s most important investments in east Africa and follows the opening in January of a $4.2bn, 470-mile line from Djibouti to Addis Ababa, the capital of landlocked Ethiopia, replacing the 100-year-old French-built railway. And contrary to some critics, who have voiced concerns at China’s growing presence in Africa, residents of Makindu are upbeat on the biggest infrastructure project in Kenya since independence 54 years ago. “It’s very smart,” says Elizabeth Wanjiru Ngima, a housewife, referring to the elevated line and towering new station just outside town. “It’s very quick, very quiet and when you are on it you [will] feel like you are in heaven,” she adds, conceding that she has not yet ridden on the new train, which will be commissioned in June. Other residents of Makindu, including the barber, counter a common complaint in Africa that Chinese do not hire local people, saying the construction company employs Kenyan labourers, guards and chefs. In the past...

Republic of Uganda takes over Chairmanship of EAC from United Republic of Tanzania

The Republic of Uganda has officially taken over from the United Republic of Tanzania as the new Chairperson of East African Community. The Republic of Rwanda became the new rapporteur during the 35th Meeting of EAC Council of Ministers which concluded yesterday at the EAC headquarters in Arusha, Tanzania. The tenure of office of the Chairperson of the EAC is one year and it is held on rotational basis among the Partner States as per Article 12 of the Treaty for the Establishment of the EAC. Speaking after taking over, the new Chairman of the EAC Council of Ministers, Hon. Dr Ali Kirunda Kivenjija, Uganda's Second Deputy Prime Minister and Minister of East African Affairs, said that the Council of Ministers meeting came at a time when there was growing demand by the East African citizens to see, touch and feel the tangible benefits of the regional integration especially following the launch of the Customs Union in 2005, the Common Market in 2010, and the Monetary Union in 2013. "At this critical period, the Council’s contribution towards the regional integration process therefore cannot be overemphasized," Hon. Kivenjija. He urged EAC Partner States to enhance the visibility of the tangible benefits of the integration by implementing fully the Customs Union and Common Market protocols. Hon. Kivejinja said that since the operationalization of the Customs Union and Common Market protocols, Partner States have not fully allowed the citizens to enjoy the anticipated benefits. "Our people are still experiencing non-tariff barriers, harmonization of national laws to conform...

East Africa: How Will the New Generation of Treaties Benefit Tanzania?

Dar es Salaam — When President John Magufuli came into power at the end of 2015, he may have sent mixed signals on what exactly would shape his new government's international relations policy after it took him nearly forever to embark on his maiden trip beyond the borders of Tanzania as President. And when he finally set out on that much-expected journey, it was a 1,460km road trip to Kigali, Rwanda. That did little to stop tongues wagging in the country and across the region over where the fifth phase government really stood with regards to international relations - more so considering what many in the East African Community (EAC) had begun describing as a veiled "snub" of neighbours by Tanzania. Yet behind the scenes, President Magufuli's government had started out on a diplomatic charm offensive that in the past few months has seen the State House in Dar es Salaam playing host to various heads of state and senior foreign government officials and signing deals covering diverse aspects of the economy. This new generation of agreements were aimed at boosting and giving the much-needed fresh impetus to the industrialisation drive that the government embarked by attracting investment, spurring innovation and technological upgrading, and opening up market access for the exports of goods and services from the envisaged industry boom. And last week, Tanzania struck its latest deal with Ethiopia, with the two nations agreeing to cooperate in 13 areas, mainly energy, water and aviation. In addition, the Ethiopian Prime...