President Uhuru Kenyatta is set to commission the first phase of Mombasa Port’s second container terminal on Saturday just days after Japan committed to disburse Sh27 billion for phase two. The Kenya Ports Authority (KPA) temporarily assumed management of the facility in February after a protracted court battle stalled the search for a concessionaire. The terminal built at a cost of Sh30 billion has a capacity of 550,000 twenty-foot equivalent units (TEUs) and has been receiving vessels since April. Transport Principal Secretary Irungu Nyakera said tendering for the implementation of phase two of the project is expected to start in January. “We expect the construction of the second container terminal phase two to commence in June 2017,” he said. The project, he added, will take between two and three years to complete, adding that it will have a capacity of 450,000 TEUs. Speaking at the port of Mombasa, the PS said phase three of the project will kick off immediately the second is completed. The entire project will give the port of Mombasa an additional capacity of 2.5 million TEUs. The second container terminal phase will push the container terminal capacity to 1.55 million TEU up from 1,080,000 TEUs. Source: Business Daily

By James Karuhanga The signing of the EAC-EU EPA deal in Brussels, Belgium, by trade ministers for Rwanda and Kenya is a step in the right direction, business leaders and officials have said. Rwanda's Trade and Industry minister Francois Kanimba and Kenya's trade cabinet secretary Adan Mohamed, put pen to paper pursuant to the EAC Council decision earlier in the year for the EAC to sign the Economic Partnership Agreement (EPA) with the European Union. "This is a step in the right direction. As EAC gears up for the Summit of Heads of State next week, EABC calls on the three other Partner States to also reconsider and agree to sign EAC-EU Economic Partnership agreement," East African Business Council (EABC) chief executive Lilian Awinja told The New Times. An extraordinary summit of the EAC Heads of State is slated for Dar-es-Salaam, Tanzania, next week, according to Richard Owora Othieno, the EAC head of corporate communications and public affairs. Earlier this week, Othieno said key issues to be discussed include the EAC-EU EPA deal. Awinja said the deal is part of the agenda for the forthcoming summit. "As the EAC Council of Ministers are preparing their report, let them consult widely, consider private sector positions and if there are contentious issues let them be tabled for the Council to discuss them," she said. The Council of Ministers is the central decision-making organ of the EAC. The move by Rwanda and Kenya is momentous as, previously, negotiation for the trade deal which...

  Kenya and Rwanda have signed the Economic Partnership Agreement (EPA) with the European Union even as two of its EAC partners say the deal does not auger well for the region's economies. The move, which comes hardly four months after the East African Community Council of Ministers agreed to have the member states sign the trade deal, is seen to likely cajole other EAC countries beat the September 30 deadline. Being a single customs territory, however, the other EAC members – Tanzania, Uganda, Burundi and South Sudan must also sign the pact to make it enforceable. Rwanda's Ambassador to Belgium Olivier Nduhungirehe posted pictures of Rwandan Trade minister Francois Kanimba and his Kenyan counterpart Adan Mohamed signing the agreements in Brussels Thursday on his Twitter account. "#Kenya & #Rwanda, who signed the #EPA with the EU this morning, are the first partner states to sign," he said in the tweet. The EPA is intended to guarantee the EAC traders duty-and-quota free access to the EU market in exchange for a gradual opening of up to 80 per cent of the region’s market to European products. Kenya was desperate to have the agreement signed to safeguard unlimited duty free access of its exports to Europe after Tanzania and Uganda said the deal initialled in October 2014 needed to be renegotiated following Britain’s exit from the bloc. READ: Dar dodges EPA to protect industrialisation, budget ALSO READ: How Museveni put the brakes on EA trade deal with Europe Kenya’s Industrialisation minister...

The last few months have seen some significant developments for African trade and integration. These advances come at a crucial time for African countries, which have been particularly hard hit by the slump in commodity prices, China’s economic downturn, and higher external borrowing costs. This has resulted in slower GDP growth than expected, currency fluctuations and reduced investment—particularly in resource-rich countries. Get the magazine, the app and full web access from $1 a week New dynamics are emerging as a result of two major developments: first, a set of agreements between regional African blocs and the European Union, as well as between African countries themselves. Second, Brexit may change the thrust of African trade with both the EU and Britain. Combined, they are likely to have some positive economic implications for Africa. Intra-African trade has comprised about 15 percent of Africa’s total trade over the last decade. This compares with intra-regional trade rates of, for example, 17 percent in South and Central America, and 62 percent in Asia. African exports to the EU have increased substantially in recent years, from €85 billion in 2004 to more than €150 billion in 2014. The recent trade and integration developments should raise economic activity and competitiveness in non-extractive sectors, leading to higher GDP growth and greater economic diversification. They are intended to boost intra-African trade, particularly in goods, and may increase African trade with the EU and Britain. Trade to drive economic integration In June, African leaders signed the Tripartite Free Trade Area agreement. This...

Kenya aims to expand its multi-billion horticulture export market during the upcoming international plant health conference set for Nairobi next month, the first of its kind in Africa. The phytosanitary conference will discuss plant health and issues including pests and exports control measures that are key to Kenya’s horticultural market. The country aims to seize the opportunity to showcase procedures that it has put in place to comply with international standards. The conference will be hosted by Kenya Plant Health Inspectorate Service (Kephis), which is the body mandated with checking quality of the produce and compliance standards. Kephis managing director Esther Kimani says Kenya will use the conference to further its agenda in the export market that last year saw the country earn up to Sh100 billion in foreign exchange. “Being the first conference on plant health to be held in Africa, we see it as an opportunity to grow our export market even further,” said Dr Kimani. Agriculture principal secretary Richard Lesiyampe noted that pests reduce crop production by 33 per cent resulting in loss of income and poverty. “An example of how pests can cause countries to lose market is when South Africa banned all imports of susceptible crops from Mozambique due to the fruit fly until appropriate measures were undertaken. This resulted in export commodities being lost,” said Dr Lesiyampe. During the conference, delegates will propose ways of mitigating against diseases such as Tuta Absoluta, which affects tomatoes as well as the Maize Lethal Necrosis Disease that...

  In Summary In the past six months, the country earned Sh47 billion from tourism, and is expected to earn a record Sh100 billion by the end of the year, Mr Balala told industry players. Consequently, a team to be headed by Ms Tasneem Adamji, African Quest Safaris Ltd managing director will be appointed to lay the groundwork for the formation of a national convention bureau. The British government, he said, was also supportive of the ongoing infrastructure projects such as the building of Mombasa Airport and Port Reitz Roads funded under TradeMark Africa. The government will help in the investment of billions of shillings to revive the tourism sector which has taken a beating in recent years due to insecurity. Tourism Cabinet Secretary Najib Balala announced on Wednesday that a fund to offer affordable loans for hotel renovations would be set up. Talks were on with the African Development Bank (AfDB) to secure Sh10 billion funding, he said. The fund will only be available to hotels built years ago and whose standards and quality are wanting. The government will also pump in some Sh1.5 billion into marketing. Kenya’s tourism has suffered in recent years because of travel advisories by western governments occasioned by terror attacks. International arrivals have dropped drastically with current high season hotel bookings at a low of 10 per cent. But speaking at a tourism summit at State House, Mombasa, Mr Balala was optimistic that the sector had started registering marked improvement with a 14 per...

Tanzania Ports Authority (TPA) and Tanzania Zambia Railway Authority (TAZARA) have vowed to work together closely in a bid to enhance efficiency and offer cost effective services to customers. During their meeting which was held in Dar es Salaam recently, the Chiefs of the two authorities, Eng Deusdedit Kakoko of TPA and Eng Bruno Ching'andu of TAZARA agreed to have regular consultative meetings focusing on information sharing and strategising on efficient cargo handling. "We call upon all stakeholders to offer seamless transport services in order to reduce transport costs and transit times for assured business on the Dar es Salaam Corridor Route," Eng Kakoko said during the meeting. The meeting was also attended by Chief Executive Officer (CEO) of MOFED, the Zambian Government owned clearing firm, Mr. David Chimfwembe. About 99.7percent of all cargo from the port of Dar es Salaam is transported by road compared to 0.3 percent transported by rail which is not very economical. Transit traffic at Dar es Salaam port accounts for 34% of the total throughput and Zambia is the first transit customer whose traffic cargo has been growing from 1,830,005.00 in 2014 to 1,903,979.00 in 2015. Eng Ching'wandu noted that it is in the interest and vision of both parties to see cargo from the port transported via a vibrant railway network. "The vision calls for closer cooperation between all stakeholders in the transport chain," he said Source: Tanzania

It is too early to be certain, but this may be the first sign of African countries using Brexit to renegotiate and leverage fairer trade terms. The last few months have seen some significant developments for African trade and integration. These advances come at a crucial time for African countries, which have been particularly hard hit by the slump in commodity prices, China’s economic downturn, and higher external borrowing costs. This has resulted in slower GDP growth than expected, currency fluctuations and reduced investment – particularly in resource-rich countries. New dynamics are emerging as a result of two major developments: first, a set of agreements between regional African blocs and the European Union, as well as between African countries themselves. Second, Brexit may change the thrust of African trade with both the EU and Britain. Combined, they are likely to have some positive economic implications for Africa. Intra-African trade has comprised about 15% of Africa’s total trade over the last decade. This compares with intra-regional trade rates of, for example, 17% in South and Central America, and 62% in Asia. African exports to the EU have increased substantially in recent years, from €85 billion in 2004 to more than €150 billion in 2014. The recent trade and integration developments should raise economic activity and competitiveness in non-extractive sectors, leading to higher GDP growth and greater economic diversification. They are intended to boost intra-African trade, particularly in goods, and may increase African trade with the EU and Britain. Trade to drive...

In this special report, Dr. Einir Young and  Jalia Nabukalu Packwood of Bangor University, take a look at the market challenges and development issues facing used clothing exports and East Africa. The Textiles Recycling Conference in London will hear more about this market (see the conference website for more details). In March 2016, the heads of state of the East African Community (EAC) agreed to phase out the importation of used textiles and leather products from third countries within three years (by 2019), with the view of promoting vertical integration of the industries in the textile and leather sector within the EAC. When looking at this decision from the outside, one has to wonder why the EAC leaders came to such a conclusion given that almost 80% of the population of some EAC countries such as Uganda purchase used clothes and the trade employs thousands of people who would otherwise be without work. It isn’t clear how it will be possible to grow the new textile and leather industry in the EAC as the appropriate infrastructure to support the sector’s growth is limited. This directive and previous EAC policies aimed at stopping the trade in used textiles is not good news for the UK textile recycling sector or that of Europe, America and other exporting countries. UK charities, textile sorters, processors and traders have been affected as a result of a reduction in demand and falling prices per bale.  This in turn threatens the progress made in the UK and...

By Sylivester Domasa The government has outlined a three-year timeline for the construction of a 7.6 billion US dollar (15 trillion/-) railway line - a major trade artery between Tanzania and its landlocked neighbours of Burundi, Rwanda and Democratic Republic of Congo (DRC). The Standard Gauge project, which is supported by China's Exim Bank, is scheduled to start anytime from now, the Minister for Works, Transport and Communications, Professor Makame Mbarawa, has confirmed. "The planned standard gauge line from Dar es Salaam-Tabora-Isaka-Mwanza and Kaliua to Mpanda, Isaka to Lusumo and Uvinza to Msongati, some 2,560-kilometres will be implemented by three contractors and will take two phases," he said. Prof Mbarawa further noted that each contractor will need to complete the job in 18 months-time or about three years for the two phases. According to the minister, the Board of Directors of Reli Assets Holding Company (RAHCO) met on Monday in Dar es Salaam purposely to issue a tender for the construction of the 200-kilometre stretch from Dar es Salaam to Morogoro. The standard gauge line is projected to take advantage of a planned 10 billion US dollar Bagamoyo port, discovery of natural gas and massive helium gas prospects in the country. Government officials had it that the iconic infrastructure would open up more trade opportunities, reduce road traffic and amicably speed-up economic growth in the eastern-African developing country. Giving further details about the project, the transport minister said the new railway will have a speed capacity of between 120 and...