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East African MPs Call on Community to Take Firmer Hand With South Sudan Leaders

Nairobi — East African Legislative Assembly (EALA) Speaker Daniel Kidega on Monday called for unity and reconciliation to resolve the current South Sudan leadership crisis. Kidega told the press at a briefing held at Parliament Buildings on Monday, that they are concerned by the continued 'political confusion' in Africa's youngest state. "We are an Assembly are very concerned about the political confusion in our newest member state -- the Republic of South Sudan -- we appeal to all the concerned parties, particularly the elected government which sits in Khartoum, to make sure peace prevails and provides opportunity to the South Sudanese to be fully integrated into the EAC process." The Regional House Speaker urged the East African Community (EAC) Head of States to intervene and help restore stability adding that a crisis in any of the EAC member countries impacts critically on to the economy of all the member states. "South Sudan is part of the EAC, whatever happens in any part of the EAC, affects the totality of the community." Kidega stated. "You might be aware that when we saw some political challenges in the Republic of Burundi, the EAC swung into action through the Summit and the Plenary." Kidega however tactfully sidestepped the circumstances that led to the Kenyan government withdrawing its troops from the United Nations Peacekeeping Mission in South Sudan (UN-MISS) in response to the sacking of the Kenyan commander of the UNMISS force. "In the words of His Excellency President Uhuru Kenyatta, we are not...

Fruits and tea exports from Kenya on the rise as trade volumes shrink by 3pc

Fruits and tea are emerging as money-spinning commodities in Kenya’s export market. This is according to a new report by Maersk Group, a global transport and logistics firm, titled the Maersk Group Trade Report 2016. The report for example states export volumes of avocados from Kenya to Europe and the Middle East in the first three quarters of 2016 grew by 34 per cent. “The inception of controlled atmosphere containers has created a fundamental change. Before the new technologies were available, the Middle East region had been as far as fruit exporters could reach in containers,” the report read in part. “Now, Europe, where a fruit like avocado sells for roughly triple the price, is within reach. And therefore the rise in export volumes,” the report indicates. The report also asserts that today, Kenya produces an estimated 115,000 metric tonnes of avocado annually, 70 per cent of which is grown by small-scale farmers. Some years back, most of the avocados were sold in the local markets, but this trend has drastically changed this year, where three quarters of the avocado fruit grown is for export. Tea, which is the second largest foreign exchange earner for Kenya, also recorded significant growth in the export market. Kenyan tea earnings jumped 29 per cent from May 2015 to May 2016. Official data shows  tea fetched Sh53.2 billion in the period under review, up from Sh41.2 billion in a similar period in 2014 – a growth of Sh12 billion. “Tea earnings’ growth was further...

TradeMark Africa in renewed efforts to enhance regional trade

Frank Matsaert, the TradeMark Africa chief executive, speaks during a news conference as RRA commissioner-general Richard Tusabe, looks on, on Monday, in Kigali. / Nadege Imbabazi The ongoing integration efforts across the East African Community (EAC) region largely aim at increasing trade. The efforts have involved operationalising single customs territories, reducing non-tariff barriers, creating one-stop border posts, and encouraging mass production in regional countries to export to countries in the bloc. However, despite these efforts, intra-regional trade across the bloc is at about 17 per cent, according to trade experts who say that there is great potential across the bloc. EAC comprises six countries with a population of more than 160 million. According to Frank Matsaert, the TradeMark Africa Chief Executive, though some indexes put the levels of trade in the region at 20 per cent, 17 per cent is more realistic. Matsaert said that persistent setbacks to regional trade in EAC largely comprise of non-tariff barriers which include, technical issues such as standards, logistics and police road blocks. TradeMark Africa is a non-profit company that supports the growth and trade to ensure gains for EAC residents. “The other barrier to trade is lots of paper work requirements, red tape and lack of automation in the process of intra-regional trade,” he said. Matsaert was speaking at the launch of Rwanda Trade Programme Evaluation Report by TradeMark Africa, in Kigali, on Monday evening. Matsaert noted that despite the progress with developing physical infrastructure across the region, there was still a long way to...

Uganda developing new tourism products

GOULF COURSE HOTEL, 16th NOVEMBER 2016: Uganda could soon increase its offering in the tourism menu and increase its attractiveness to tourists if projects worth UGX 231 Million get funding and are implemented. Uganda Tourism Board and Uganda Tourism Association last week validated the five potential tourist attraction projects, which include the following: Namugongo Shrine son et lumiere; Uganda National Museum Indigenous dinner; Uganda Rwenzori Cultural Trail; and Interpretation Capacity Building for Birding. Over the last decade, Uganda Tourism industry has grown fivefold, emerging as a major source of economic growth, employment and revenue for the country. The sector’s total contribution to GDP in 2015 was 9.9% (UGX 6,395.4 billion)  compared to 7.9% (UGX 5,495.0 billion)  in 2013 and 8.8% in 2012 (UGX 4,993.6 billion). Receipts from tourism have also increased from USD 449 million in 2007 to about USD 1.048billion in 2014. Tourist arrivals have also significantly grown from 641,743 in 2007 to 1,266,040 in 2014. The Government of Uganda has in its Vision 2040 recognized tourism as the mainstay of the economy contributing highest in foreign exchange earnings (at least $12 billion annually), tax and non-tax revenue, employment and to GDP as a whole. It believes that tourism can contribute to the transformation of Uganda from a predominantly peasant and low-income society to a modern, prosperous and competitive upper middle-income country. Uganda has also received several accolades with the most recent one awarded by CNN, which touted it as one of the top 16 destinations to visit in...

Why the future seems bright for Mombasa

A section of Mombasa Town. The days of Mombasa playing second fiddle to other counties are literally coming to an end, as the metropolitan area is destined for newer heights. The coastal city has recently benefited from increased infrastructure developments such as the Standard Gauge Railway (SGR). Considering Mombasa is the gateway to East and Central Africa, this couldn't have come at a better time. The increased efficiency of movement of goods between the Mombasa Port, the city and the hinterland means better days for the business fraternity. The ongoing multi-billion expansion and modernization of the port will increase its efficiency, allowing more usage by the East and Central Africa players, thus creating a huge logistics hub. Several road projects are currently ongoing in the city such as the dual MIA-Port Reitz road and Dongo Kundu by-pass. Also worth mentioning is the second Nyali bridge whose design is underway, and the proposed cable cars that will be set up at the Likoni Ferry Channel. The real estate in the region is also booming following the setting up of several luxurious hotels and apartments such as the English Point Marina, Sheheena Marina, Ocean Seven Development, Sultan Palace, Shaza, Vipingo Ridge Development and Centum's Vipingo city in the neighbouring Kilifi County. Improved security has also led to an increase in the number of tourists visiting the coastal city, thus creating employment opportunities among the residents. Institutions of higher learning such as the Mombasa Technical University (TUM), Pwani University, and the upcoming Mombasa...

East African MPs call on Community to take firmer hand with South Sudan leaders

The East African Legislative Assembly Speaker Daniel Kidega, flanked by members of his House, addressing the press in Nairobi/CFM By LABAN WANAMBISI, NAIROBI, Kenya, Nov 21 – East African Legislative Assembly (EALA) Speaker Daniel Kidega on Monday called for unity and reconciliation to resolve the current South Sudan leadership crisis. Kidega told the press at a briefing held at Parliament Buildings on Monday, that they are concerned by the continued ‘political confusion’ in Africa’s youngest state. “We are an Assembly are very concerned about the political confusion in our newest member state — the Republic of South Sudan — we appeal to all the concerned parties, particularly the elected government which sits in Khartoum, to make sure peace prevails and provides opportunity to the South Sudanese to be fully integrated into the EAC process.” The Regional House Speaker urged the East African Community (EAC) Head of States to intervene and help restore stability adding that a crisis in any of the EAC member countries impacts critically on to the economy of all the member states. “South Sudan is part of the EAC, whatever happens in any part of the EAC, affects the totality of the community.” Kidega stated. “You might be aware that when we saw some political challenges in the Republic of Burundi, the EAC swung into action through the Summit and the Plenary.” Kidega however tactfully sidestepped the circumstances that led to the Kenyan government withdrawing its troops from the United Nations Peacekeeping Mission in South Sudan (UN-MISS)...

Funding crisis clouds Nairobi session of East African Parliament

East African Legislative Assembly (EALA) Speaker Daniel Kidega. PHOTO | FILE  A funding crisis that has crippled operations at the East African Community (EAC) is set to cloud debate at the Nairobi sittings of the trade bloc’s legislative arm beginning Tuesday. The East African Legislative Assembly (EALA) Monday said the financial crunch is so serious that the Assembly, a number of institutions and organs within the EAC have either cancelled or significantly curtailed their activities. Speaking in Nairobi on Monday, EALA Speaker Daniel Kidega said cash remission by member states had fallen way behind budget. “I know generally that there is pressure on our economies, but the point of concern here is that partner states committed to contribute money equally to the integration process. But these commitments are not coming in time and therefore affecting the EAC integration process,” he said. In the current (2016/2017) financial year, Kenya is among countries doing dismally in remittances to the EAC, having paid only 28 per cent of the Sh854.5 million that is due per country annually. Rwanda has remitted only 23.8 percent of the amount due, Tanzania 6.6 per cent while Burundi has remitted nothing. Uganda is doing better that the other partner states, having paid Sh760.3 million or 88.9 percent of the amount due. Flanked by other EALA members at the Press briefing, Dr Kidega noted that the Assembly had to suspend some of its activities in September and October due to lack of funds. Some of the affected activities are...

East Africa: SMEs to Get EAC Market Information

Arusha — Small and medium enterprises (SMEs) will now be able to access firsthand information on trade and investment opportunities across East African Community (EAC) member countries, thanks to a new initiative by youth focused non-governmental organization (NGO). The Vision for Youth has launched has launched a project known as "SokoMkononi" that aims to identify challenges and enable SMEs to get information on the EAC investment and trade opportunities, the NGO's director, Ms Violet Ayubu told The Citizen yesterday. This, according to her, is because though the EAC Common Market Protocol became effective on July 1, 2010, many Tanzanians still lack information on the opportunities found in the wider regional market in other member states like Kenya, Uganda, Burundi and Rwanda. The common market provides the four freedoms of free movement of goods, labour, services and capital which significantly boost trade and investment and makes the region more productive and prosperous. The project, according to Ms Ayubu, is funded by EAC and GIZ. "The project commences with Tanzania and Uganda before moving to other EAC states. With it, we seek to ensure that business people are able to understand what is needed to be able to sell products between the two countries," she said. Specifically, the project seeks to educate business people about the customs, taxation requirements, rule of origin and the products allowed to be traded between countries. The NGO will also open a portal to allow online discussions between business people and get quick information on what is...

All aboard! The Chinese funded railways linking East Africa

By Sophie Morlin-Yron CNN (CNN) -- Near Africa's horn on the easternmost part of the continent, a shiny new electric railway runs alongside an old abandoned track through both arid desert and green highlands. Some 750 kilometres long, the $4 billion line opened in October and links landlocked Ethiopia to the coast in Djibouti. It was partly funded and built by Chinese companies, just like the other planned lines it could soon link up with neighboring Sudan and Kenya -- where the first part of a new $13bn Kenyan railway linking Mombasa to Nairobi is taking shape. The sprawling network is planned to continue into South Sudan, Uganda, Rwanda and Burundi, as part of transnational efforts to connect countries within East Africa. This could transform how goods and people move, and the increased number of lines is expected to boost trade in countries like Kenya, says Kuria Muchiru, Advisory Partner, East Africa, at PwC in Kenya. "Because we probably have about 4,000 trucks everyday making the trip up from Mombasa into Nairobi, and some go further on," adds Muchiru. The ports are where the magic happens, with 90% of African imports and exports conducted by sea which can be an issue for trade coming into landlocked countries. "The new lines will have access to the ports and be able to almost offload directly onto the train and then straight onto inland locations," Muchiru says. Billions in loans The new lines are part of the so-called LAPPSET rail project and the...

SGR electric upgrade to cost taxpayers Sh49bn more

Workers build a standard gauge railway overpass in Taru, Kwale County in May. PHOTO | KEVIN ODIT  IN SUMMARY Kenya to install 609 kilometres of electric track between Nairobi and Mombasa in latest pact with Uganda and Rwanda. The electric upgrade will be done within five years and ahead of Uganda linking its SGR line to the Kenyan one. Taxpayers will fork out nearly Sh49 billion more following fresh plans for the electrification of the standard gauge railway (SGR) line between Mombasa and Nairobi. Transport secretary James Macharia said the 609 kilometres of railway track from Mombasa to Nairobi would be made electric in a deal reached with Uganda and Rwanda. The locomotives will in the immediate term be powered by diesel, but the electric upgrade will be done within five years and ahead of Uganda linking its SGR line to the Kenyan one. China Road and Bridge Corporation, which was appointed to build the Mombasa-Nairobi line, will be offered 15 per cent over the current construction costs of Sh327 billion or Sh49.05 billion more to upgrade the line. An electric track is needed for fast movement of bigger containers and passengers in the quest to boost East Africa’s competitiveness as an investment destination. “The protocol signed between the four countries was to do an electric track. In Kenya, we started with a diesel one but we need to convert it to electric before Uganda commissions their bit, which is in about five years,” said Mr Macharia. “In our estimates,...