Traders in the East African Community (EAC) should understand the rule of game in the regional cross-border trade, a trade technocrat has advised as millers in Kenya complain about zero rated wheat flour imports from Tanzania. The East African Business Council (EABC) Trade Economist, Mr Adrian Njau, said in a telephone interview from Arusha yesterday that most traders were uninformed of their rights stated on the EAC treaties. "Business people operating in the region should not overlook the procedures needed to penetrate the regional markets, but make effective use of the duty-free access to sell their products," he said. Kenyan millers have questioned the application of the EAC tax regime by the authorities which allow wheat from Tanzania to enter Kenya market tax free. Kenyan Cereal Millers said Tanzania imports its wheat, hence should not enjoy tax incentives under the East African Community Customs Union (rule of origin), which gives preferential treatment to locally produced goods. However, under the revised Rules of Origin adopted by EAC ministers, finished products are required to have at least 30 per cent of the ex-works value added in the exporting member state, down from 35 per cent of the ex-factory price. The millers have accused Kenya officials at the borders of letting zero- rated wheat from Tanzania enter the country, yet Kenyans pay up to 50 per cent duties when exporting their products to East Africa. Under the EAC customs union rule of origin 2015, goods shall be accepted as originating in a partner state...

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 not have to stop at Busia or Malaba border points just to exchange money. The bloc already has a common revenue agency that collects customs...

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...

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...

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...

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...

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...

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...

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...

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...