By Jean d'Amour Mugabo Amb. Michael Ryan, the head of European Union Delegation to Rwanda has commended Rwanda's commitment to sign the Economic Partnership Agreement (EPA) between the EU and East African Community member states. "I am very much encouraged by the approach of Rwanda. The approach of Trade Minister Francois Kanimba is very much in favour of the EPA and we would see no EAC country lose the ratification of the EPA with EU," , Amb. Ryan told journalists yesterday after his visit to Speaker Donatille Mukabalisa at the Parliament buildings in Kigali. Rwanda and Kenya are still committed to sign the deal while Tanzania and Uganda decided to delay the signing because of the Britain's vote (Brexit) to leave the EU bloc in the referendum of June 23. The EPA signing was expected on July 18 but was postponed until October 1st because the EAC states are divided on whether the deal will benefit the infant local manufactures or will see the big European investors dominate the EAC market. However, Minister Kanimba warned of the possible cracks in the region if the deal is not signed and urged the EAC politicians to consider the region's collective gains ahead of individual state's interests and sign the EU-EAC deal, according to The East African. Amb. Ryan said Brexit is an issue which is preoccupying for the European Union but Britain still a member of the EU as it has not yet triggered article 50 (of the EU charter). "I think...

East Africa is set to be the fastest growing region in Africa this year after posting a regional growth rate of 6.7 percent, prompted by the sharp rise is cement use. Throughout the region, the use of cement has been on the rise as construction sites crop up. Kenya National Bureau of Statistics (KNBS) data shows the consumption of cement in Kenya reached 5.23 million metric tonnes in November 2015, slightly higher than the 5.19 million metric tonnes registered in 2014. The data show construction sector grew by 11.3 per cent in the first quarter of 2015 compared to a growth of 7.6 per cent in a similar period in 2014. The construction sector is estimated to have expanded by 14.1 per cent between July to September compared to a growth of 8.8 per cent in the same period of 2014. The growth was on account of increased public infrastructure projects and private sector development in the real estate sector. In Uganda, cement consumption is expected to increase by at least 12% over the next 3 years. Tanzania has made great strides in improving its infrastructure with the cement industry being a key beneficiary of the building boom. The East African governments are now focused on infrastructural delivery and ways to close the most important infrastructure gaps in planning for new cities. Both the transport and power sectors have critical infrastructure needs in the region and ICT infrastructure is another growing sector now considered key to development. Africa has the...

A key objective of the conference is to build up African ownership of its own vision of growth and development. TOKYO International Conference on African Development, "TICAD 6" just ended in Nairobi, Kenya and in attendance were several African Presidents and Prime Ministers including our own Muhammadu Buhari and the co-convener of the conference, Shinzo Abe, the head of the Japanese government. The TICAD seeks a win-win partnership between Japan and Africa. A key objective of the conference is to build up African ownership of its own vision of growth and development. In furtherance of this, Japan seeks to differ with the other players on the continent by placing emphasis on high quality infrastructure that do more than job creation by transferring technology through the training of youth and women. The conference held every five years from the time it started in 1993 until the last one in 2003 when it was decided that it should be convened every three years instead. The one that just finished is significant in the sense that this was the first time it took place in Africa. They met in Japan all the time in the past. Another significant departure is the recognition of the role of the private sector in the economic take-off of the continent. In this respect, more than 100 Chief Executive Officers, CEOs from leading Japanese companies accompanied Prime Minister Abe. This is a clear indication that more and more Japanese companies are eying the African continent. A modest number of...

Kenya’s Industrialization Cabinet Secretary Adan Mohamed is leading a government delegation to Brussels to make a bid for the country to maintain duty free market access to the European Union (EU). This is after some members of the East African Community (EAC) Partner States failed to sign the Economic Partnership Agreement (EPA) on July 18, 2016 due to circumstances that they were facing. “This development poses a great risk to Kenya unless it is addressed before the deadline that the EU put for EAC to sign and ratify the EPA in order for EAC products to continue accessing the EU market on duty free quota basis”, said CS Mohamed. Kenya, Uganda, Tanzania, Rwanda and Burundi entered a region-to-region EPA which covers trade in goods and development cooperation with the EU in October 2014. The deal is in line with the EAC Common External Tariff and bans unjustified and discriminatory restrictions on imports and exports which contribute to the EAC’s efforts to eradicate non-tariff barriers (NTBs) in intra-EAC trade. The EU-EAC EPA also supports the EAC’s ambitious regional integration project. Kenya’s government has held several unsuccessful high-level bilateral consultations with EAC Partner States towards agreeing on alternatives for the signing of the EPA over the past three months. The pact has been ready for signing after undergoing translation into the official EU languages and Kiswahili. Mohamed has been tasked with resolving the impasse by President Uhuru Kenyatta before the EU’s Market Access Regulation (MAR) expiry date of October 1, 2016. The...

This comes in the wake of heightened diplomatic efforts by the East African Community Partner states to resolve issues that have stalled the signing of the pact. CS Mohamed leads a delegation that includes Principal Secretaries Chris Kiptoo of Trade, Betty Maina of East African Community and other government officials. The agreement has been ready for signing after undergoing translation into the EU official languages and Kiswahili. The signing of the EPA, which was scheduled to happen on July 18, 2016, did not take place as a result of a request by some EAC Partner States not to sign at the time due to circumstances that they were facing. “This development poses a great risk to Kenya unless it is addressed before the deadline of 1st October 2016 that the EU put for EAC to sign and ratify the EPA in order for EAC products to continue accessing the EU market on duty free quota basis”, said Cabinet Secretary Adan Mohamed. The government has been undertaking high level bilateral consultations with EAC Partner States geared towards agreeing on alternatives for signing of the EPA over the past 3 months. This matter is also to be deliberated upon in the EAC Summit that has been convened for early September. President Uhuru Kenyatta has tasked CS Adan Mohamed with resolving the impasse. Source: Citizen FM

Low prices are increasingly pulling a number of cross-border traders to source maize from Uganda as Kenya grapples with a shortage. Data compiled by the Regional Agricultural Trade Intelligence Network (RATIN) shows that in the last seven days alone, traders moved a total of 647 tonnes of maize into Kenya, mainly through the Busia border. About eight tonnes of maize came in through Lwakhakha and Malaba borders. This comes in the wake of an increase in maize prices across the East African Community as the head smut maize disease continues to subdue production in Kenya. The disease has reportedly ravaged maize farms in the country’s bread basket of North Rift, threatening up to 50 per cent of projected output. As of yesterday, a 90kg bag of maize from Uganda was retailing at Sh4,911 in Mombasa and Sh3,572 in Kisumu, a possible indicator of the effects of the head smut, which is said to be a new maize disease that has affected all varieties of the commodity. Last week, for instance, a 90kg bag of maize from Uganda was retailing at Sh3,150 for a 90 kilogram bag in Nakuru and Sh2,696 in Machakos. Uganda was the net supplier of maize to other EAC countries. The landlocked country supplied Rwanda with 120 tonnes of maize during the same period. Due to inadequate long rains between March and May, the Agriculture ministry reckons that the country will rely on imports to meet its annual maize needs of nearly 40 million bags. A poor...

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: Daily News

President Uhuru Kenyatta will on Friday commission the Mombasa port second container terminal (CT2), one of the biggest projects along the East African. The Kenya Ports Authority (KPA) said the project is part of the Jubilee administration’s flagship projects under Vision 2030. The project was funded on a government-to-government arrangement with Japan which provides a cheap loan of 0.2 per cent interest with a repayment period of 30 years. The terminal lies on a 100 acre piece of land which was reclaimed from the sea to create a 900-meter long quay. The project is set to be done in three phases. Phase one, which is set to be commissioned, consists of two berths that are numbers 20 with a quay length of 210 meters and a draft of 12 meters to serve medium size vessels. KPA Corporate Affairs Manager Hajj Masemo, in a statement announcing the commissioning, said berth No 21 has a 350-meter long quay and a depth of 15 meters that is capable of accommodating post-Panamax vessels of 8,000 twenty-foot equivalent units (TEU) capacity. “This first phase was constructed at a cost of Sh30 billion which includes supply of two ship-to-shore (STS) gantry cranes and four rubber tyred gantry (RTG) cranes for yard operations,” said the statement sent to newsrooms on Saturday. A new six lane access road was also constructed joining the Port Reitz road for ease of entry and exit of cargo traffic from East Africa’s largest port. Source: Daily Nation Source: Hellenic Shipping News

Kenya has secured nearly $270m from Japan to build a new industrial and commercial hub near the port of Mombasa. The loan and grant package will fund basic infrastructure for a 1,326-hectare special economic zone (SEZ) at Dongo Kundu, intended to boost Kenya’s economy and accelerate the movement of goods in East Africa. Kenya and Japan signed the MoU in Japan at the Tokyo International Convention on Africa Development, which concluded 28 August. The $269.7m on offer breaks down into a long-term, low-interest loan of $210.8m and $58.9m in grants, reports The Daily Nation. The first phase of the SEZ is scheduled to be ready by 2019, and is part of Kenya’s plan to ramp up capacity at Mombasa, eastern Africa’s biggest port, which has seen the volume of goods flow-through increase beyond forecasts. Japan helped Kenya produce a master plan for Mombasa port development in October last year. The project involves the development of infrastructure, including Berth 1 at the Port of Mombasa, access roads, transmission line, water supply pipeline, a sub-station, drainage, power supply and a free trade zone. It will also entail establishment of a free trade zone on between 300 and 500 acres for wholesale and retail trading, breaking bulk, re-packaging logistics, warehousing, handling and storage of goods. According to The Daily Nation, the area will be reserved for re-exports to the 400 million-people Common Market for Eastern and Southern Africa (Comesa), allowing trans-shipment of cargo without inspection or customs duty. The Comesa bloc is the...

MOMBASA: The first train on the standard gauge railway (SGR) line will make its way from the Port of Mombasa to Nairobi in June next year. But as this date draws closer, players in road transport are getting increasingly jittery about their future. Those involved in logistics along the Northern Corridor fear the SGR line will render thousands jobless and waste millions of shillings in investments, as the train replaces the bus and truck. Truck operators have dominated cargo ferrying from Mombasa to various inland destinations, with rail volumes dropping from about 70 per cent in the 1970s and 80s, to a paltry 5 per cent today. Competitive rates But while there is one camp of worried investors, there is another that is optimistic innovation and competitive rates will keep the industry afloat, particularly as trucks offer ‘last mile’ convenience in cargo delivery. READ MORE Kenya now battlefront for China and Japan President Uhuru asks landowners to support infrastructural projects 400 people killed in motorcycle accidents since January In an interview last week, Kenya Railways Corporation (KR) managing director Atanas Maina said the construction of the SGR track was 90 per cent complete, with 440 kilometres of rail having been laid. He added that test runs will begin in March next year, with commercial operations set for June, when one train will pull a record 200 containers between the port and the Embakasi Inland Container Depot (ICD) in Nairobi . It is expected that four trains will haul containers daily,...