On the third floor of Rwanda Revenue Authority (RRA) headquarters in Kimihurura, a City of Kigali suburb, modern flat screens beam images of cargo trucks as they enter, transit and exit Rwanda. Beside the screens is a Google map with a tracker of Rwanda’s two main routes to and from the sea—the Northern and Central corridors—tracking the movement of trucks carrying Rwanda bound and transit cargo. This is the Central Monitoring Centre (CMC), the watchtower of RRA’s newly installed Electronic Cargo Tracking System (eCTs). The eCTs is a web-based system used to monitor transit cargo from the point of entry to the exit in order to improve its safety and promote fair terms of trade by eliminating offloading of undeclared goods on the Rwandan market. The system will reduce the cost of doing business by reducing transit time, enhancing cargo safety and helping traders to better predict arrival of goods. Funded by TradeMark Africa (TMA) through a grant from the United Kingdom Department for International Development (DFID),the system will be launched in March 2017 and will add to on-going efforts to reduce the cost of doing business in the region, through improved cargo predictability, increased truck turn-around time that will ultimately lead to lower transport costs. Transport delays and cargo theft are among the key concerns to importers and exporters who have been forced to pay high insurance cover for goods on transit, adding to the already high costs of doing business in the country. With improved security of cargo,...

The Uganda Revenue Authority on Friday launched three customs trade facilitation programmes to ease trade in the region Minister of Trade,Industry and co-operatives Amelia Kyambadde,joined by Evelyn Anite the state minister of Finance for Investment and Privatization,launched the services. Trade Mark East Africa funded URA innovation aims to ease trade facilitation through a centralized Document Processing Center (DPC).Introduction of a Regional Electronic Cargo Tracking System(RECTS) ,and accredition of new Authorized Economic Operators(AEOS). The trade facilitation programmes funded by Trade Mark EastAfrica (TMA),will be used to monitor transit cargo under customs control in Kenya,Rwanda and Uganda. That will improve the ease of doing business in Uganda and the EastAfrican community,also promote trade and investment thus support the growth of regional and international trade in EastAfrica. They were joined by URA,Commissioner General Doris Akol,World Custom Organisation Director Compliance.Anna Brigette and officials of (TMA). URA.Commissioner General Akol, said”Our dream of being the model tax body is starting to bear fruits.REATS and other innovations ensure better trade facilitations.” Previously,each country operated a separate national cargo tracking system.According to officials, this posed challenges like, lack of complete transit monitoring mechanism leading to cases of dumping, delayed bond cancellation and refund processing and poor information exchange. They further added that, the process was a barrier to cross-border trade due to multiple verification steps at all borders along, and costly both in terms of money and time. The implemention will be done in phased manner, so far four stations have been rolled out in Mbale, Mbarara, Kampala...

The population of Africa is presently 1.2 billion and growing at a rate of 2.5% a year, more than twice that of any other continent. In two years’ time, it will gain the population of the UK; in 12 years of compounded growth it will gain the population of China. All these extra people may add dynamism to economies, but only if the increase in labour supply can be matched by an equivalent increase in economic activity; otherwise, rising population density may destabilise social and political systems – an effect already seen in Rwanda and the Democratic Republic of Congo (DRC). This challenge has led to a different pattern of development for ports on Africa’s east coast, compared to the west coast. In the west, the centres served by these ports are close by, sometimes right outside the port gate. In east Africa, by contrast, they are between 500km and 1,000km away, and most of the infrastructure needed to reach them has not yet been built. In the case of the Doraleh container terminal at Djibouti, the goal is the Ethiopian highlands and the valley of the White Nile at Khartoum, a cluster roughly equivalent to the population of Japan. In East Africa, a similar-sized population is grouped in the Great Lakes states, South Sudan and the DRC. All of these centres, with the marginal exception of the DRC, are landlocked. Their ability to attract investment and benefit from globalisation depends, among other things, on having efficient rail, road and...

Rwanda’s trade balance has been deteriorating over the years due to the continued higher import bill compared to export receipts. The mismatch between imports and exports is mainly due to the continued reliance on low-value export products, whose prices depend on the international market dynamics and the continued excessive demand for foreign produced goods, especially capital and intermediate goods, to sustain the ongoing economic development. However, increased production initiatives for some categories of imports such as rice, wheat and sugar whose domestic market is growing rapidly and whose contribution to the import bill is high should be reinforced. This will be a game changer towards reducing the country’s import bill. Formal imports decreased by 2.7 percent in value, to $2.2 million in 2016 down from $2.3 million in 2015. The decline in formal imports value is due to a decrease in intermediary goods, which decreased by 16.6 percent and in energy and lubricants that registered a reduction of 15.7 percent. Formal imports declined to 17.2 percent in volume due to decreasing volume of intermediary goods (unfinished products). Government’s “Made in Rwanda” initiative seems to be paying off and according to experts, the campaign is key in correcting and balancing Rwanda’s trade books. There is potential to produce most of the imported commodities locally which could have a huge potential and positive impact on Rwanda’s trade balance, according to experts. For example, imports of cement, sugar, wheat, rice and second hand clothing exceed coffee and tea exports earnings. If produced locally...

Trade between East Africa and the United States is set to increase after the latter’s Federal Aviation Administration granted Kenya’s Jomo Kenyatta International Airport a Category One status, finalising a pact that heralds the beginning of direct flights to America from Nairobi. By attaining the highest International Aviation Safety Assessment status, Nairobi can now cement its position as the region’s aviation hub for both passengers and cargo. Kenya’s Transport Cabinet Secretary James Macharia said national carrier Kenya Airways and other interested local operators will fly directly from Kenya to the US once the necessary approvals and last point of departure (LPD) rights are granted. RwandAir, the other major airline in the EAC says going through Kenya is also an opportunity the airline can explore. Jimmy Musoni, the head of commercial planning at RwandAir, however noted that they were yet to undertake a study to weigh their options. Direct flights to the US will significantly reduce the time taken to move cargo between the US and East Africa — from seven days to as little as a day. Burundi’s Minister of Transport and Public Works Jean Bosco Ntunzenimana welcomed the news, saying it would help to cut costs and time for the country’s fruit and fish exporters. In 2015, the US imported goods worth $8 million from Burundi — mainly coffee, tea, spices fish, seafood, art and antiques, wood and wood products. Convenience versus cost Passengers will also save on the time it takes transiting through Europe or the Middle East. Currently, due to JKIA’s second-class status, travellers between East Africa and the US have to...

Customs officials intercepted containers with concealed cargo worth Sh75 million last December. The officers discovered some 24, 40-foot, containers of concealed new garments and milk powder at the Port of Mombasa in the largest single seizure by the Kenya Revenue Authority (KRA). Out of the 24 containers, 21 had new garments and shoes disguised as cold rooms being imported by horticultural farms. Three containers had a consignment of milk powder disguised as flasks and sewing machines. The detection was due to the KRA’s increased collaboration with other state agencies in combating smuggling syndicates. The KRA used special non-intrusive scanners to detect the real contents in the consignments. Major ports of entry in Kenya now have the non-intrusive scanners that can detect and identify pre-cursor chemicals, strategic trade commodities as well as a special category goods. Smart gadgets have made it easier for Customs officials to detect imported illegal goods. However, it is important to note that maintaining the delicate balance between facilitating legitimate trade flows while deterring illicit business is a complex operational task for any Customs and border control agency. The trafficking of endangered species and animal parts such as ivory, tiger skins, and rhino horns, is estimated to be a $19 billion a year trade. DEVASTATING LOSS Due to the secretive nature and lack of verifiable data on illicit trade, it is difficult to calculate with absolute precision the market size. However, most Customs, border and law enforcement officials, policymakers, and academicians agree that the illicit trade results...

Building of the first three berths in Lamu port has started. Transport Principal Secretary Irungu Nyakera said 20 per cent of the work has been done and the government will allocate Sh10 billion to the port project in the next financial year. He said the government has already paid Sh4.6 billion to the contractor while another Sh2.9 billion would be paid before the end of this year. The PS said the project would cost the exchequer a total of Sh48 billion. “We expect the construction of the first berth of the Lamu port to be completed by June 2018,” he said. In an interview with the Nation in Mombasa, Mr Nyakera said building of the second and third berths are expected to be completed in 2019 and 2020 respectively. “The government is determined to complete the construction of a second port in Lamu to supplement the port of Mombasa,” he said. Apart from the construction of the three berths, other work going on concurrently include dredging of the channel, land reclamation, the building of a cofferdam and a causeway. He noted that the Lamu Port South Sudan Ethiopia Transport (Lapsset) is one of the key projects the government was implementing to boost trade between Kenya and neighbouring countries of Ethiopia and South Sudan. “Lamu port, will not only offer services to the country but also to landlocked countries of Ethiopia and South Sudan,” he said. Mr Nyakera said the government has also set aside Sh10 billion for the construction of...

The 4th session of the inter-Burundian dialogue under the auspices of the Tanzanian facilitator ended on Sunday 19 February. A session marked by an about-turn, calls especially to the Heads of State of the region for help. The fate of this process remains in their hands. The message or SOS launched by Facilitator Benjamin Mkapa at the end of this stage of the talks reveals his discomfort or the stalemate of this dialogue full of jerks and a sudden turn of events. "There is an imperative need to hold an Extraordinary Summit of the East African Community to expose the obstacles that drag the process," he said after pointing out that this was his point of view. "This is an urgency, I will present this to the mediator and the current President of the East African Community as soon as possible," said the former Tanzanian President before a crowd of Burundian politicians invited to Arusha. It was a part of this Burundian political class represented by Evariste Ndayishimiye, Secretary General of the ruling Cndd-Fdd party along with Edouard Nduwimana, the Ombudsman of the Republic at his side. In the same row, there was the second Deputy President of the National Assembly, Agathon Rwasa and two former Heads of state further on. The place reserved for Senator Pierre Buyoya remained empty. He left the day before the session. Just behind these personalities, there was the duo Evariste Ngayimpenda and Tatien Sibomana of Uprona party not officially recognized by the Burundian Government....

Tanzanian President John Magufuli on Saturday affirmed his government’s commitment to construct a dry port in Mwanza region aimed at easing trade between Tanzania and Uganda. Speaking at a joint news conference with visiting Ugandan President Yoweri Museveni, Magufuli said that upon completion of the dry port construction, there will be no need for Ugandan traders travelling to the country’s major port of Dar es Salaam, situated over 1,000 kilometers from Uganda. "At the same time my government will repair MV Umoja in Lake Victoria to ease cargo transportation between Mwanza and Uganda," said the Tanzanian leader shortly after the signing of diplomatic agreements between the two East African countries. Magufuli added that the two countries have also agreed to rehabilitate an 11-km road stretch from Port Bell in Lake Victoria to Kampala. He said the Tanzanian government had also reduced truck check points to facilitate fast transportation of cargo between the two countries. Magufuli commended trade growth between the two countries, saying statistics showed an increase from 89 million U.S. dollars in 2015 to 96.7 million dollars in 2016. Magufuli said the two leaders also discussed the construction of the 1,403-km pipeline to transport crude oil from Hoima in Uganda to Tanga Port in Tanzania. He ordered for immediate pipeline construction take-off, saying any minor issues will be resolved while construction activities were on progress. Source: Coast Week

Dar es Salaam. President John Magufuli yesterday described the Economic Partnership Agreement (EPA) as a “form of colonialism”, dampening Tanzania’s possibility of signing the deal with the European Union (EU). “It is bad for our country,” Dr Magufuli affirmed. Addressing a joint press conference with visiting Ugandan President Yoweri Museveni at the State House here, Dr Magufuli disfavoured EPAs, which are aimed at creating a free trade area between EU and the African, Caribbean and Pacific Group of States. His Ugandan counterpart warned African countries that EPA might break up their unity. “It’s better if the signing of the deal is shelved until further consultations are made.” President Museveni arrived in Dar es Salaam yesterday morning for a two-day state visit. Dr Magufuli noted that after studying EPA he had realised that African countries would not benefit from it economically as its architects touted. He noted that terms included in the agreement were not intended to help African countries to grow economically. “I believe that our neighbour, Uganda, will second us for the betterment of our countries. We have discussed EPA for a long time but to me it seems like another form of colonialism… it is bad for our country,” he said. There has been criticism in other quarters that the non-reciprocal and discriminating preferential trade agreements offered by EU are incompatible with World Trade Organisation rules. President Museveni noted that the fact that many African countries had not signed EPA shows that the proposal was meant to create...