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TMA signs an MOU with Tanzania ports authority

Dar es Salaam – December 6th, 2016 Tanzania Ports Authority (TPA) and TradeMark Africa (TMA) have today signed an MOU worth USD 62 million. The support is intended to transform Dar port into a modern port through improving the operational and spatial efficiency and increase handling capacity to the level agreed upon under Tanzania Ports Masterplan. Dar Es Salaam port handles approximately 90% of Tanzania’s seaborne import and export volume. It is the gateway to global trade and serves as a transit port for Burundi, Democratic Republic of Congo, Rwanda, Uganda, Zambia and Malawi. Traffic at Dar port is projected to increase from a throughput of 13.5 million tonnes in 2013 to 28 million tonnes in 2028, with container throughput increasing from 577,047 TEUs handled in 2013 up to 1,138,000 TEUs in 2018 and 3,226,000 TEUs in 2028. TMA Tanzania Country Director, John Ulanga, said “Dar Port is a major trade gateway for Tanzania and the region and that’s why TMA has continued to invest in improvement of its infrastructure, productivity and Port reforms” TMA’s support will specifically support the following areas: The improvement of the port infrastructure: Removal and relocation of sheds (2-7 and import Improvements of roads to gates 4,5 &8;News scanners for exit gates 4 & 8 and relocation of gate 5 entry scanner ;Bathymetric, hydrodynamic and geo-tech surveys & feasibility study of dredging channel and basin. Port productivity: Productivity improvement plan; strengthening operating procedures; implementing the new cost accounting. Port reform Dialogue and Process: Transaction advisory...

EAC chief asks countries to speed up plans for regional vehicle industry

IN SUMMARY Due to the high costs, the countries currently import second hand machines from Germany, the United States, Japan, France among other countries, some of over eight years of use, making them not only prone to accidents but also have short life span. The East African countries have been asked to speed up the study that will enable the bloc develop its own automotive industry in order tolower importation of used cars. The bloc’s deputy secretary general Christophe Bazivamo said setting up competitive automotive sector was crucial to providing the population and the business community with affordable means of transport. Due to the high costs, the countries currently import second hand machines from Germany, the United States, Japan, France among other countries, some of over eight years of use, making them not only prone to accidents but also have short life span. The 16th summit of heads of States on February 20, 2015 had directed the EAC Council of Ministers to conduct a study on the modality for the promotion of motor vehicle assembly in the region to stop importation of used vehicles. With the study receiving technical and financial support from Japanese government, the team is supposed to present the report to the 17th Summit in February. “This exercise  and the overall study is therefore crucial as it is intended to inform the EAC and potential private sector investors on policy options and modality that should be adopted to drive automotive industry to the next level,” said Mr...

Removal of customs bond lifts transit cargo at the port

Transshipment cargo at the port of Mombasa grew 2.4 per cent in ten months through October compared to the same period last year, the Kenya Ports Authority data shows. The increased volumes has been attributed to abolishment of customs bond by the Kenya Revenue Authority. This followed transition to Regional Customs Transit Guarantee which started in February for goods cleared under the Single Customs Territory. The East Africa's largest port handled 461,502 tonnes of transshipment cargo between January and October compared to 450,472 tonnes handled a year earlier, marking an upward trend for the third year in a row. Total container throughput closed at 1,076, 118 TEUs ( twenty-foot equivalent units) compared to 1,012 ,003 TEUs previously, a 6.3 per cent growth year-on-year. “The removal of customs bond is, for instance, a timely step that we believe will catalyse the growth of this business (transhipment) segment,” KPA managing director Catherine Mturi told port stakeholders in Mombasa on Saturday. “We will continue to engage with our anchor stakeholders." The regional leading harbour by performance handled 22 ,895 ,408 tonnes of cargo against 22,224 ,369 in a similar period last year, a rise of three per cent. Mturi said the authority will “constantly engage the shipping lines" geared at achieving growth of cargo at the port. She attributed the growth in volumes to a multi-agency approach to clearing of cargo, following installation by President Uhuru Kenyatta in July 2014. In October, the Kenya Revenue Authority shelved trans-shipment bonds that have been blamed...

Inactivity of EAC Attorneys General hampers legislation

Presenting Bills proposed by the Council of Ministers to the East African Legislative Assembly (EALA) for debate to facilitate the East African Community integration has become harder for lack of green light by the Sectoral Council. The bills must be scrutinised and accepted by the EAC Sectoral Council on legal and judicial affairs before submission to the regional Assembly. But sectoral council has not met for nearly two years, The New Times understands. The sectoral council on legal and judicial affairs is made up of East African Community Attorneys General, Solicitors General and ministers responsible for judicial and constitutional affairs. MP Patricia Hajabakiga, the chairperson of the Rwandan delegation to the East African Legislative Assembly (EALA), in a recent interview with The New Times, said laws such as the EAC Standardisation, Quality Assurance, Metrology and Testing (SQMT) Act that are outdated and need urgent review remain unaddressed. “Bills proposed by Council have to go through the sectoral council on legal and judicial affairs in order to be submitted to parliament. But the problem is that the sectoral council rarely meets,” she said. “They have not sat for the past two years to look at any legislation. This means that, for the past two years, apart from the Appropriation Bills which are budget related and don’t require the sectoral council on judicial and legal, no other laws came to parliament.” The SQMT Act, enacted in 2006, provides a framework for development and implementation of SQMT activities in the bloc and other...

SGR could help East Africa achieve free trade dreams

IN SUMMARY Having become a world-class facility, goods are being cleared fast. There is neither congestion nor threat by any agency to auction uncollected goods. Imagine waking up to find the six East African countries have fully integrated their markets. A trader is able to move goods freely and a fully implemented common market protocol guarantees right of establishment in any of the member states. Sounds like a dreamland utopia already? Now imagine the integrated market is being served by three world class seaports — one in Mombasa, another one in Dar es Salaam and the region’s newest and largest one in Lamu. Since you’ll be waking up in Kenya at the end of the dream, let the old Mombasa port be the harbour of your interest. Having become a world-class facility, goods are being cleared fast. There is neither congestion nor threat by any agency to auction uncollected goods. For Kenya, the most advanced of the integrating states, ease of input flow into the region imply that local manufacturers are able to produce and export world-class goods as well. And so it has markets across the globe! But our dream is a local one. So Uganda remains top market for Kenya’s exports and investment capital. There is 1,300km standard gauge railway (SGR) connecting Mombasa port to Kampala. Business people are free to move at speeds of up to 120km per hour to any of the destinations served by the upgraded track. A single currency in circulation ensures traders do...

Nairobi by-passes give rise to industrial logistics hubs

IN SUMMARY The bypasses were initially built to divert traffic away from Nairobi’s central business district. However, demand for high-end industrial property has spurred new developments in Nairobi that are set to change the warehousing and logistics space in the country. The newly constructed by-passes around Nairobi have freed up transport routes making a number road intersections latest hotspots for logistics parks. Prime logistics warehouses currently under development include, Tilisi on Nairobi-Nakuru highway, Nairobi Gateway Logistics Park on Mombasa Road, Infinity Industrial Park and Northlands Commercial Park on Eastern Bypass and Tatu Industrial and Logistics park on Northern Bypass. The bypasses were initially built to divert traffic away from Nairobi’s central business district. However, demand for high-end industrial property has spurred new developments in Nairobi that are set to change the warehousing and logistics space in the country. Most logistics space is currently in Nairobi’s Industrial Area, which is already clogged and devoid of technologies that support varying occupiers. “Nairobi lacks adequate supply of prime logistics space. The existing space in Industrial Area is congested, old and does not feature latest technology. But we are seeing new developments come up outside Nairobi to support the space. Tatu City, for instance, features a huge industrial space and has already attracted huge players like Dormans and Chandaria industries,” said Ben Woodhams, managing director Knight Frank, a property management firm. The latest prime logistics hubs are being built in line with the high-tech specifications and demands — such as refrigeration — of sophisticated...

Kenya and Uganda officials to sign joint SGR financing pact in Beijing

IN SUMMARY Top officials from the two countries have already scheduled a trip to Beijing early next year. Kenya is seeking funds for the Naivasha to Malaba section of the SGR while Uganda plans to build the link to Kampala under a bilateral agreement signed between the two countries. Kenya and Uganda are set to sign a joint financing deal for building the second phase of the standard gauge railway (SGR). Top officials from the two countries have already scheduled a trip to Beijing early next year. Kenya is seeking funds for the Naivasha to Malaba section of the SGR while Uganda plans to build the link to Kampala under a bilateral agreement signed between the two countries. Exim Bank of China, which is the financier of the project for both countries, had committed to extending credit to Uganda on condition that Kenya is ready to extend its section of the railway to Malaba. Uganda had written to Kenya in November requesting an assurance that it will extend the rail to the border town in a bid to secure financing from the China based lender. Kenya Railways managing director Atenas Maina confirmed that the two nations signed a joint commitment for funding, which will pave the way for Uganda to access funds. “We signed bilateral commitment with Uganda in seeking funds for the extension of the northern corridor and we shall be visiting China in the first quarter of 2017 to ink a financial deal,” said Mr Maina in an...

Opening of standard gauge rail delayed by six months to Jan 2018

Cargo owners and passengers will wait longer to use the new standard gauge railway linking Mombasa to Nairobi after the government pushed back the date for it commercial launch. Transport principal secretary Irungu Nyakera told MPs on Tuesday that the new, faster railway will be ready in June, but open for commercial traffic six months later or January 2018. “It will take us about six months for the freight and commuter train services to operate commercially. We will be setting tariffs in the six months period,” he told the National Assembly’s Transport committee on Tuesday. Kenya Railways had expected the tracks for the Mombasa to Nairobi line to be ready by next month and the rail opened for commercial traffic in June 2017. The goal of the project is to cut the cost of transport and boost trade by replacing the slower, narrow-gauge line. It will cut the journey between Nairobi and Mombasa to four-and-a-half hours from 13 hours and reduce freight costs to eight US cents (Sh8.14) per tonne per kilometre from the present average of 20 US cents (Sh20.37). But business people who had been promised these benefits from June will wait longer with December 2017 being the earliest date they can enjoy faster movement of cargo cheaply. READ: SGR electric upgrade to cost taxpayers Sh49bn more In addition to speeding up the flow of cargo, Kenya hopes to transform its passenger service, now plagued by delays. The PS informed the committee that the ministry has set aside...

Govt. calls for speedy African trade integration

The government is pushing for the accelerated implementation of the Tripartite Free Trade Area. The free trade area is expected to bring together economies from South, West and East Africa in an effort of bridging intra Africa trade. Speaking in Algeria during the first ever African Investment and Business Forum, Foreign Affairs Cabinet Secretary Amb Amina Mohamed said African countries need to work towards adopting borderless continent to allow for increased movement of goods. Intra African trade currently stands at 10 percent compared with trade with North America and Europe which accounts for 40 percent and 63 percent respectively. “We must deepen our own integration and not clink to sovereignty for sovereignty sake to close our borders,” Amb. Mohamed told the Algiers gathering. the East African Community (EAC), Common Market for Eastern and Southern Africa (COMESA) and Southern Africa Development Cooperation (SADC) have mulled plans to integrate, bringing together 26 countries with a combined GDP of $624 billion. The foreign affairs CS said the continent had enough potential to grow by trading amongst African countries that would also boost the continents bargaining power on the international stage. “To move forward, we need to make sacrifices. We have put in place cross border initiatives to ensure that formal and informal trade is fully facilitated and registered,” she said. The forum brought together government officials from across the continent with plans to successfully implement the African blueprint, Agenda 2063. Source: Citizen TV Kenya

East Africa: Private Sector to Shape EPA Deal

<a target=&quot;_blank&quot; href=&quot;https://adclick.g.doubleclick.net/pcs/click?xai=AKAOjsvEX_v8VtGE43MSAP7JzBnfTClKbJaICdKv9PgUVa5_oZApzaVbOqXSV8dxHaYtKiq21h47IF3_nqK8f9gsd-Rk_y8x82cnCXR7k3xHjqk5Yq8ntk7yUiibhsdEhJqJXSfIZpGwd5gytZQFUxR65qX7rD7oNcHUBm0xv5OFNwyB_oEn5-ldggnR5Ju2BKHgYR79eUEn-d6YlUI_PkN4unQa9Y-rSmOxvSZ_PzLsBWg9xr5h8BnsddE2a2jthfIJAhoEDRYvUx5opmgbd_KwouS33x8DzEXHHcPcnmj8DXlWn0_oEpm9tL-q_sNEGid5TdW3uKPlQhKBbTVnT7qYquKcvUOQTb5zgXi0eXM-qfMJ82Ai6HpXs-HwNov9O8MWqUlVj2V09R4N9IJeyAfbtQd5YKBK7nssxRVqAx9nfvx2erB_FLu27zw1qK0yacxFaJZSgMOrrr7E9R3ap3JCMUD1VdikQ0jgw015fhjn0h2sJ9Kn7kll1hDS6cfdUe_p5U3_XaOjYQ6_9AIVk8Kxpe5mQIJc_MjxXcZYzH8mtMfdTTmRqx9A-XxN1Cz6vFi9xjLWOhsKznpKTTeHkmFuZP9LucmEayYyIikRZhT8QDqfdgFtKrWF_isU1N98WIA0X8wvPrFUXIJuFr2APPS-nSR0EILeOiWSFVMiXJoC0RpzKMomVn2FYBZDgKHvMeEDQn0-Ng6g9cvPRU_sNIEaS2Z9qLMLXB47&amp;amp;sig=Cg0ArKJSzEn4UksEE0_cEAE&amp;amp;urlfix=1&amp;amp;rm_eid=3245246&amp;amp;adurl=https://www.google.com/chrome/browser/?brand=CHBH&quot;><img src=&quot;https://s0.2mdn.net/2878480/Google_Chrome_Baseline_Fast-DownloadNow_EN_300x250.jpg&quot; width=&quot;300&quot; height=&quot;250&quot; border=&quot;0&quot; /></a><img width=&quot;0px&quot; height=&quot;0px&quot; style=&quot;visibility:hidden&quot; border=&quot;0&quot; src=&quot;&quot; />​ <a target=&quot;_blank&quot; href=&quot;https://adclick.g.doubleclick.net/pcs/click?xai=AKAOjsvEX_v8VtGE43MSAP7JzBnfTClKbJaICdKv9PgUVa5_oZApzaVbOqXSV8dxHaYtKiq21h47IF3_nqK8f9gsd-Rk_y8x82cnCXR7k3xHjqk5Yq8ntk7yUiibhsdEhJqJXSfIZpGwd5gytZQFUxR65qX7rD7oNcHUBm0xv5OFNwyB_oEn5-ldggnR5Ju2BKHgYR79eUEn-d6YlUI_PkN4unQa9Y-rSmOxvSZ_PzLsBWg9xr5h8BnsddE2a2jthfIJAhoEDRYvUx5opmgbd_KwouS33x8DzEXHHcPcnmj8DXlWn0_oEpm9tL-q_sNEGid5TdW3uKPlQhKBbTVnT7qYquKcvUOQTb5zgXi0eXM-qfMJ82Ai6HpXs-HwNov9O8MWqUlVj2V09R4N9IJeyAfbtQd5YKBK7nssxRVqAx9nfvx2erB_FLu27zw1qK0yacxFaJZSgMOrrr7E9R3ap3JCMUD1VdikQ0jgw015fhjn0h2sJ9Kn7kll1hDS6cfdUe_p5U3_XaOjYQ6_9AIVk8Kxpe5mQIJc_MjxXcZYzH8mtMfdTTmRqx9A-XxN1Cz6vFi9xjLWOhsKznpKTTeHkmFuZP9LucmEayYyIikRZhT8QDqfdgFtKrWF_isU1N98WIA0X8wvPrFUXIJuFr2APPS-nSR0EILeOiWSFVMiXJoC0RpzKMomVn2FYBZDgKHvMeEDQn0-Ng6g9cvPRU_sNIEaS2Z9qLMLXB47&amp;amp;sig=Cg0ArKJSzEn4UksEE0_cEAE&amp;amp;urlfix=1&amp;amp;rm_eid=3245246&amp;amp;adurl=https://www.google.com/chrome/browser/?brand=CHBH&quot;><img src=&quot;https://s0.2mdn.net/2878480/Google_Chrome_Baseline_Fast-DownloadNow_EN_300x250.jpg&quot; width=&quot;300&quot; height=&quot;250&quot; border=&quot;0&quot; /></a><img width=&quot;0px&quot; height=&quot;0px&quot; style=&quot;visibility:hidden&quot; border=&quot;0&quot; src=&quot;&quot; />​ The government will take the views of the private sector in deliberation of its position on the Economic Partnership Agreement (EPA) between the European Union (EU) and the East African Community (EAC), a cabinet minister has said. Industry, Trade and Investments Minister Charles Mwijage told members of the private sector at the CEO Roundtable gala dinner in Dar es Salaam on Saturday that the government would take on board their views in reaching a position on the protracted negotiations of the trade deal with the EU. "You will be invited when we deliberate on the government position on EPAs," the minister told a number of heads of businesses at the 8th Annual gala dinner, which is a policy dialogue forum and a platform for captains of industry to engage with the government on the issues affecting the business environment in the country. He said although the government did not consult them when it decided not to sign the trade deal, it had their interests at heart to make sure the local businesses were protected from any deal that may have negative impacts on them. Leaders of the East African Community (EAC) postponed EPA with the EU when they met in Dar es Salaam in September and demanded more time to assess the impact of the agreements before the actual signing takes place....