The U.S. may be a global superpower, but when it comes to trade and investment in Africa, it lags far behind. China, with $200 billion in trade with the continent, more than doubles that of the U.S. That means that while Africans paid attention to the U.S. presidential election, they were much more concerned by a slowdown in China's economy. "U.S. dynamics are far less important to us than what's happening in China," said Francois Conradie, head of research at NKC African Economics, a South African subsidiary of Oxford Economics based in Cape Town. "The biggest risk for us is Chinese demand slowing down sharply." FILE - U.S. President Barack Obama addresses the U.S.-Africa Business Forum in Washington, Aug. 5, 2014. During his presidency, Barack Obama made it a priority to try and narrow the trade gap between the U.S. and China. In 2012, he launched the Doing Business in Africa Campaign to help make the U.S. Government's trade resources more easily available to the U.S. private sector, and African public and private partners. In September 2016, he hosted the U.S. Africa Business Forum in New York where he announced $9 billion in private trade and investment with Africa. He said U.S. foreign direct investment in African countries rose by 70 percent during his time in office. "I think the key to his legacy is that he has brought trade and investment to the forefront of the U.S.-Africa policy agenda," said Witney Schneidman, senior international adviser for Africa at Covington...

IN SUMMARY Agreement was reached during President Uhuru Kenyatta’s recent visit to the country last week. Kenya has struck a deal with India to boost maritime surveillance and share security intelligence amid raging boundary disputes and growing global terrorism threats. The agreement, reached during President Uhuru Kenyatta’s two-day visit to India last week, means that the two countries will share white shipping information and conducting joint hydrographic surveys. White shipping agreements enable partner states to establish an information network allowing their navies to exchange information about ships in their oceanic territories. Under the protocol, ships will be colour-coded based on their use — commercial, military or illegal — in efforts to enhance response against threats, offer quicker decisions and authorisation of different vessels. Hydrographic surveys involve measurement and description of features affecting maritime navigation, dredging, offshore oil drilling, maritime construction and related activities. “Both sides agreed to enhance cooperation in areas of maritime surveillance, maritime security; sharing of white shipping information and joint hydrographic surveys,” reads the India-Kenya joint statement prepared by their Foreign Affairs ministries. In September last year, two Indian warships docked at the Kenyan coast in what was seen as an official signal to renew maritime security cooperation between the two states. Share experiences At the time, officials said the naval vessels were on a mission to share experiences in combating threats of maritime terrorism and piracy with Kenyan security agencies. In 2014, three Indian warships visited Mombasa as part of an overseas deployment. In February last...

East African Community (EAC) partner states will be legally obliged to collectively promote participation of women and men in regional trade and sustainable economic growth, while considering gender dimensions to personal safety in cross border trade once a new Bill is passed this month. The East African Legislative Assembly (EALA) is sitting in Kampala, Uganda to, among others; consider the EAC Gender Equality and Development Bill, 2016, which makes provision for gender equality, protection and development in many aspects of the EAC’s integration agenda. The draft seen by The New Times partly indicates that in the process of engendering trade, countries shall: support national and regional associations of women in business; address gender and non-tariff trade barriers; and ensure gender analysis in diagnostic trade integration studies and other trade impact assessments. Francine Uwera Havugimana, second vice chairperson at the Private Sector Federation (PSF), in Kigali, is concerned by how the culture myth harming women will be deflated. “As we all know that women are starting freshly, my opinion would be to set a proper policy supporting women in this long and hard journey in order to avoid disappointment,” Havugimana told The New Times on Monday. “For example, putting in place a strong policy that is well regulated where by 30% is applied for gender equality as minimum share in procurement, loan in big project, or joint venture with government in big projects for development. I think this will be the only way to build this trust among women and in...

At least 2,000 youth are set to be trained in the operation and maintenance of the Sh372 billion standard gauge railway (SGR). According to Transport secretary James Macharia, civil works on the construction of the 472km railway line from Mombasa to Nairobi were completed in November last year. Kenya has started to receive trains and other equipment ahead of the commissioning of the project on June 1. To sustain the services, he said, the youth will be trained on operation and maintenance of the railway. He said that 300 locals are being trained at the Kenya Railways Institute in Nairobi while 500 more are expected to complete training before the end of this year. Mr Macharia said 25 students are expected to undertake five-year undergraduate studies at Beijing Jiatong University in China while another 75 will join the same programme between this year and 2018. Wagons Mr Macharia said the government has already identified John Holland Limited, based in Australia, to operate the railway. “The company will operate the railway for a 10-year period as it has vast experience including managing two thirds of Australia’s railway,” he said. In an interview with the Business Daily at Moi International Airport, Mombasa, Mr Macharia said the railway will be completed 18 months ahead of schedule. Last week Kenya received the first batch of six trains at Mombasa port manufactured by China Railway Rolling Stock Corporation (CRRC). The government is expected to receive 50 more by May. Mr Macharia said that 1,620 freight...

Hyacinth has paralysed business at the Kisumu port after the weed engulfed the shores of Lake Victoria. Operations at the port have been brought to a halt with ships and vessels transporting goods across the region trapped by the weed. Movement of boats and fishing vessels has also been restricted by the hyacinth carpet. The port receives and processes goods from countries across, the region including Tanzania, Uganda and Rwanda. The Kenya Maritime Authority yesterday said the re-emergence of the algae has grounded business. Boaz Ogolla, a maritime officer at the port, said the prolonged dry season was worsening the situation because it could lead to an unprecedented growth of the weed. The weed thrives in hot weather. “Our operations have been grounded due to the weed. We have, for instance, a ship which had been loaded with fertilisers for transport to Tanzania but cannot leave the port because of the weed,” Mr Ogolla said. “The hyacinth easily grows in still waters in full sun. This is the case we are witnessing on the lake. Matters have also been complicated by the lack of strong waves allowing the hyacinth to sprout on still waters,” he added. The port, rated by shippers as the best in East Africa owing to its strategic location, has been operating below capacity for the past four years, a situation that has been compounded by lack of modern equipment. Railway line With a handling capacity of about 1,000 tonnes of cargo per day, the facility currently...

Full completion of the Malaba border post is set for April, financiers have said, raising hope for faster clearance of goods and passenger between Kenya and Uganda. The one-stop border post has been functioning with sub optimal infrastructure since its commissioning last June. Delays in completion of the project have been occasioned by end World Bank funding in September, at a time when infrastructure for the Sh533 million project were not fully concluded. The World Bank funding was limited in time. Variations to the contract were also left without funding. Trademark East Africa (TMA) injected additional funds into the project to complete the outstanding works and variations bringing the final contract sum to Sh632 million, excluding claims. “Malaba last bits and pieces of infrastructure will be completed by March /April this year on the Kenya side while the access road to the new bridge from the Uganda side will be completed in April 2017,” said Sjoerd Visser, TMA one-stop border posts director. He said the developments would allow the use of the new dual carriage weigh bridge and separate entry as well as exit roads into Kenya and Uganda. Current tedious clearance procedures at both sides often lead to delays and congestion at the border point. To date, five one-stop border posts have been completed in East Africa including Busia, Holili Taveta, Mutukula (Uganda/Tanzania) Kagitumba Mirama Hills (Rwanda/ Uganda) and Kobero Kabanga (Burundi/Tanzania). The completed border posts are part of the 15 initiated by the East African Community (EAC) One-Stop-Border-Posts...

IN SUMMARY The EAC secretary-general Libérat Mfumukeko says he has since last July signed financing pacts amounting to Sh30bn. The East African Community (EAC) is eyeing increased donor funding for its development projects after it passed the European Union’s financial risk test last year. The EAC secretary-general, Libérat Mfumukeko, said key development partners “are once again ready and willing to continue supporting the community” after previously casting doubt over financial management. “The most promising is the Partnership Fund, which has received over $2.5 million (Sh250 million) and we are still expecting about Sh290 million before the end of this financial year.” Mr Mfumukeko said in his New Year message. In June, the EAC secretariat passed the EU’s fiduciary risk assessment (FRA), the first time in 10 years having failed the test in 2006 and 2008. The FRA was conducted by London-based consultancy firm, Moore Stephens LLP, which reviewed the bloc’s internal control, accounting records, external audits, procurement and sub-delegation. The bloc obtained an overall positive score after its accounting system, external audit and sub-delegation were found above board. It’s weak internal control system and poor procurement rules however failed the test. According to the findings, the bloc is considered as having met internationally acceptable standards for external funding. A positive score implies that the EU regards the EAC as an organisation that is likely to use donor funds for the intended purposes, properly account for them and give value for every cent contributed. That means donor funds can be disbursed...

NAIROBI, Kenya, Jan 16 – Kenya Railways Corporation (KR) has come to the defence of the construction of the Standard Gauge Railway following concerns over the cost compared to other railway projects in the continent. The Corporation Managing Director Atanus Maina says the Standard Gauge Railway (SGR) is built based on the needs of the country which is to primarily ease the moving goods to and from the port of Mombasa. Speaking to Capital FM Business, Maina says Kenya’s objectives for the railway are different from those of other countries like Ethiopia, and that the dynamics of rolling out the massive infrastructure projects are different. “Ethiopia are constructing class two (type) railway dictated by their demands. Their cargo volumes are less than 10 million tonnes, so we cannot do a class two here. The port of Djibouti does less than 7 million tonnes while the port of Mombasa is doing nearly 30 million tonnes per annum. Our SGR has a capacity of about 22 million tonnes per year, with double stack capability,” he explained, adding that the cost implications will differ. Mombasa Super Bridge/SkyscraperCity“Ethiopian corridor has enough level crossings as it passes through areas where they don’t have a lot of people. For Kenya, the area is heavily inhabited…we had to do a lot of bridges and we needed to have more stations and land compensation, this will definitely have a huge impact on cost,” he noted. Maina said Kenya has 33 crossing stations with overpasses in large sections to allow...

The Ministry of Trade and Industrialization has rubbished claims of a January deadline for the East African Community to sign a trade partnership deal with the European Union. The EAC heads of state were scheduled to hold the Heads of State Summit in early January but that has been put off until mid February. The regional trading bloc was expected to use the summit to get a way forward on whether to sign the economic partnership agreement (EPA) with the EU after years of back and forth negotiations. Trade Cabinet Secretary Adan Mohamed however said there was no timeline set with the European Union as to when the deal will be signed, despite having already missing the October 2016 deadline. “I want to e very clear that there is no January deadline to sign (EPA),” Mr Mohamed said on the sidelines of the ongoing CCAfrica Food Standards conference. Kenya is the only member of the East African Community that stands to lose with trade restrictions being imposed by the EU. According to Mr Mohamed, presidents of the five EAC countries are yet to agree on a suitable date to hold the meeting. “The heads of state summit will happen at the right time when the diaries of the heads of states will allow. That (EPA) will be discussed at the summit,” he said, while responding to journalists. The European Union had in October said it would allow for extended negations between the five partner states that now appear to behind...

The East African Community (EAC) is yet to make any meaningful gains since it became active some 20 years ago, a new report shows. According to the International Monetary Fund report, implementation of the customs union and the common market have not led to “a major increase in economic and financial integration”, with the trade bloc’s member countries still looking far and wide for their imports. The report, titled Integrating Markets for Goods, Labour and Capital in the East African Community, identified inhibitive laws and regulations by member countries as the main detriments to integration. The region, the report says, still imports goods such as industrial supplies, fuel and lubricants, transport equipment parts and accessories, processed foods and beverages from outside the region. Some of these goods are available in the region. “The share of intra-EAC imports in total imports has not increased in the past 15 years and most imports continue to come from outside sub-Saharan Africa,” says the report, which found that more than 85 per cent of total imports into the region come from outside the EAC. It is mostly small landlocked countries of Rwanda, Burundi and Uganda that have higher ratios of GDP of imports from the EAC. For Kenya and Tanzania, says the report, the “ratios are very small”. Indeed, goods that the landlocked countries import from Tanzania and Kenya are mostly imports sourced from outside the region. However, this arrangement is bound to change with some countries such as Uganda opting to fly their...