The Government is looking to cross-border markets planned at key border areas to improve trade and Rwanda’s exports to the region. According to James Tayebwa, the in charge of regional integration (cross-border trade) at Ministry of Trade, Industry and East African Community Affairs, a total of eight cross-border markets will be constructed by the government at different crossing points to facilitate trade between Rwanda and neighbouring countries – DR Congo, Burundi, Uganda and Tanzania. Tayebwa was giving an update on the ongoing works of the Rubavu Cross-border Market that is being built by government and TradeMark Africa. Funds for Nyamasheke, Kagitumba and Rusumo cross-border markets have also been secured and construction is expected to start in August, according Tayebwa. He said the government was also mobilising resources to set up cross-border markets at Nemba, Gatuna and Rwemasha markets. Once they are completed, the markets will have warehouse facilities, among others. Traders and local firms say the facilities will support cross-border businesses and could also help enhance Rwanda’s exports to the region. Tayebwa was optimistic the warehouses will address the challenge of lack of storage facilities by firms involved in export trade and ease access to Rwandan products by regional buyers. “Regional buyers will be able to get goods at the border instead of travelling inland to procure them from factories or co-operatives across the country. This will also help reduce operational costs,” he said. Donatien Mungwarareba, the director of advocacy, communication and labour relations at PSF, said the warehouse facilities...

Speaking to reporters shortly after the signing ceremony in Dar es Salaam yesterday, the Minister for Finance and Planning, Dr Philip Mpango, expressed gratitude to the Kuwait government, and said the road is important because it links Tanzania and other countries. Upon its completion, the 85-kilometre section will ease transportation of cargoes from the Dar es Salaam port to nearby countries, and hence boost the country’s economy. “The road corridor starts in the Dar es Salaam city, passes through to Kigoma and link Tanzania with other landlocked countries surrounding Tanzania, therefore, upgrading of the section will increase traffic movement and capacity between Dar es Salaam port and Kigoma as well as Burundi and Eastern DRC,” the minister said. According to him, the objective of the project also is to increase multimodal transport options in the region and reduce transport time and cost along the entire central corridor. The loan agreement signed consists of three parts, including civil works, consultancy services and technical assistance. Expounding further, Dr Mpango said the fund is another commitment of the management of the Kuwait fund for Arab Economic Development to continue supporting the fifth phase government in achieving its economic developments. Deputy Director General of the Kuwait Fund for Arab Economic Development, Hamad Al-Omar was in line with the commitment of the Amir of the State of Kuwait, Sheikh Sabah Al-Ahmed Al-Jaber Al-Sabah made during the 3rd Africa-Arab Summit to grant concessionary loans to African countries to finance development projects. Mr Al-Omar was optimistic that...

TANZANIA has the lowest pump fuel price levels giving motorists a better flexibility on spending compared to their peers in the six-member East African Community. The country petrol price stood at 0.91 US dollars (some 2,002/-) and diesel 0.84 US dollars (1,848/-), according to Global Petrol Prices website. Mzumbe University's Dar es Salaam Campus Economist, Prof Honest Ngowi, said naturally landlocked countries would have high fuel prices than non-landlocked. "Naturally Tanzania will have a lower prices... fuel price is a factor of many components including taxes and costs of transport". Uganda is the second with lowest petrol at 0.97 US dollars and diesel 0.83 US dollars. Uganda had the lowest diesel prices in the region up to last Saturday. Kenya, a non-landlocked country, with the highest purchasing power parity in the region, petrol price is at 0.99 US dollars (2,178/-) and diesel 0.88 US dollars (1,936/-). Rwanda was the second country in the EAC with highest fuel level at 1.02 US dollars (2,244/-) for both petrol and diesel. The highest country in the bloc with high rate is Burundi at 1.23 US dollars (2,706/-) where petrol and diesel has the same price. Tanzania despite of having lowest fuel price in region also was the second highest country with GDP per capita purchasing power parity (PPP) after Kenya. But Prof Ngowi said PPP does not have a direct correlation with price of fuel other than making affordability easier for motorists on buying the product. "Actually to me I don't see the...

Kenya Railways (KR) has received another batch of locomotives and rolling stock that will be deployed on the Standard Gauge Railway (SGR). It consists of three passenger locomotives, eight passenger coaches, and 120 open-top wagons which arrived at the port of Mombasa aboard two ships from China. The firm received the first batch of the locomotives and rolling stock in January with the second, third and fourth batches arriving last month. To date KR has received eight freight haulage heavy duty locomotives for mainline use out of the total 43, two shunting locomotives out of the eight on order and 330 wagons out of the total order of 1,620. Source: Media Max

The first SGR train will leave Mombasa station for Nairobi on June 1. Transport CS James Macharia said phase one of construction is 99 per cent complete. The railway project from Mombasa to Nairobi will cost Sh327 billion. Macharia said tracks have been laid from Mombasa to Nairobi South in readiness for the first run. He made the announcement on Monday when he briefed President Uhuru Kenyatta on the progress of the SGR at State House, Nairobi. The President commended the progress made and underscored the importance of the project in transforming the transport sector. The meeting was attended by China Communications Construction Company Vice President Chen Yun and China Roads and Bridges Corporation President Lu Shan. Macharia said test-runs of locomotives, tracks, signalling and communication facilities is ongoing. He said construction of 33 stations is also about to be completed, 15 locomotives have been received, while Sh15 billion has been paid out as land compensation. Some Sh84 billion has been used under local content, with people living along the railway line getting direct employment. Others have benefited through delivery of goods and services to the project. The CS said 60 Kenyan students have been offered scholarship to pursue railway and train-related engineering courses in Chinese universities. Another 300 technicians trained by the CRBC at the Railway Training Institute are currently attached to the SGR project. CRBC President Lu said his company has offered Sh1 billion to develop an engineering school at the Railway Training School. The meeting discussed phase...

On February 13, a report on Lapsset’s environmental and economic impact was published, and for the first time Kenyans have a clearer picture of what this mega project will do for Lamu’s economy. (This report is available on Nema’s website) The report by the Lapsset Development Authority, which I urge all Kenyans to read, has debunked myths and misconceptions on infrastructure spending. It clearly shows the dividends such projects are expected to yield. These benefits will be felt across various counties. Natural justice demands that we first have a look at Lamu county, where the project begins. Lamu primarily depends on fishing, and this is where Lapsset will have the biggest impact. Fishing accounts for three out of four jobs, but the industry is yet to scale up and diversify into value addition, which would create more skilled jobs and increase earnings. For lack of infrastructure, many a fisherman relies on the activity for subsistence living, not as a source of gainful employment. However, this is set to change with the proposed fishing port, which will be part of the larger Lamu Port. Building a fishing port and creating capacity for local fishermen will enable them to venture into the deep sea to exploit the rich Exclusive Economic Zone, whose waters are home to over 150 varieties of fish. This rich catch would then be taken to the fishing port for value addition. Fish fillets, fish sticks, breaded shrimp, canned tuna, fish oil and other derivatives such as fish meal...

Kenya is banking on marketing campaigns in leading global cruise conventions and enhanced security to increase the number of international tourists arriving by sea. Last year, the Port of Mombasa was voted Africa’s leading cruise facility for the second-year running by the World Travel Awards. “Mombasa is a preferred destination for cruise holidaymakers since after they arrive at the port, it takes them a short time to head to national parks for game drives,” said Tourism Cabinet secretary Najib Balala. Cruise tourism, he said, is a lucrative market for Kenya, adding that visitors arriving by sea are high-end holidaymakers. To tap the potential of this segment, Kenya is building a Sh350 million cruise ship terminal at the port. The project, which is expected to be completed before the forthcoming cruise tourism season in November this year, would significantly boost the industry as the port currently lacks a facility for catering to global international holidaymakers. Mr Balala, Kenya Tourism Board Chief Executive Officer Betty Radier and officials from the Kenya Ports Authority were in Miami, US, on Monday, where they participated in the Seatrade Cruise Global convention which closed its doors on Thursday. The forum is the cruise industry’s premier global event and brings together business, industry cruise lines, suppliers, travel agents and partners in the sector. As the epicentre of the cruise industry, Seatrade features exhibitors and attendees from around the world including key industry players. Mr Balala said Kenya’s participation in the Miami convention would boost the country’s growing...

Today World Bank Group President Jim Yong Kim announced that Tanzania will be able to access up to $2.4 billion in concessional financing over the next three years, an increase of half a billion dollars over previous allocations. The additional resources will come from the World Bank Group’s International Development Association (IDA), the Bank’s fund for the poorest, which in December of last year received a record 18th replenishment of $75 billion. Approximately $45 billion of those funds will be invested in Africa over the next three years. Because of Tanzania’s strong macroeconomic management and political stability as well as the overall growth opportunities in the country, Tanzania’s is one of the “scale-up countries,” meaning that in addition to concessional resources, they will be able to borrow additional resources on non-concessional terms that are lower than market rates. Kim made this announcement during a ceremony in which he and Tanzanian President John Magufuli laid the foundation stone for the Ubungo Interchange in Ubungo District of Dar Es Salaam. The interchange will be financed under one of the three projects signed today, with a total value of $780 million. The Ubungo Interchange is a critical piece of infrastrucure designed to reduce congestion at a key strategic gateway in Dar Es Salaam, and the next step in an ambitious effort to connect the Port of Dar Es Salaam to rural areas, industries, and the wider region. Kim underscored the need to leverage private sector investment for infrastructure development as well as in job-creating...

The East African Legislative Assembly (EALA), deeply concerned by the poor financial situation of the East African Community, has passed a resolution urging the Council of Ministers to immediately convene under matters of urgency to solve the financial crisis in the community. Sanctions should be imposed on the partner states which do not accomplish their duties. The East African Legislative Assembly wants Council of Ministers to invoke provisions of the Treaty (Article 14 and Article 143) to warn the partner states that are defaulting in meeting their obligations. “EALA has moved to establish a select committee to investigate the matter of financial paralysis and to report back to the House”, said EALA MP Nancy Abisai when she moved on a motion on the situation of the EAC budget at the end of the EALA session held in Kigali, this 17 March. Unlike other EAC member states, Burundi has not contributed any amount to the community’s financial year budget (0.00%) leaving an outstanding of US$ 8,378,108 (100%) excluding arrears for the previous year amounting to US$ 771,037. For fiscal year 2016/17 remittances from Uganda were the highest with 91.53 percent ($7,668,419), followed by Kenya at 52.4 percent ($4,395,707), Rwanda at 48.07 percent ($4,027,316) and Tanzania at 30.47 percent with $2.553.203. Each of the five EAC member states is required to make a contribution of $8,378,108 per financial year and before 31st December. The Burundian Minster in Charge of EAC affairs, Léontine Nzeyimana said Burundi is preparing to pay the first part...

The question of the spirit and pace of East African integration was prominent at the just ended sitting of the East African Legislative Assembly in Kigali. The members were clearly exasperated by what they considered starvation of funds to the Community by partner states which had severely crippled its activities. This prompted members to ask: “Are we really serious about integration?” In March 2014, Charles Njonjo, the once powerful Attorney General of Kenya, warned that the East African Community was likely to face the same fate as its earlier version that collapsed in 1977. At the time many people disagreed with the analysis that had led him to the gloomy conclusion. Three years later, that warning and the legislators’ concerns lead to other questions. Is enthusiasm for integration waning? Or is Trumpesque country-first positioning hindering it? East Africans have long recognised that they are fated to live closely together. It is both aspiration and a fact of history. And so they always dream about how to make the bond work stronger and build big promises of what it should be like. But they also have a knack for knocking down what they are trying to build. Some clever people might start talking about an East African curse. In the early 1960s, Kenya, Uganda and Tanzania formed the East African Community (EAC). The EAC was hailed as a shining example of regional integration. For a decade, East Africans lived through what may be called the glory years of integration. Then as...