Imports to South Sudan through Kenya’s main port have fallen to the lowest-ever level as resurgent violence in the world’s youngest nation hurt the fledgling economy and sent traders and citizens fleeing. Only 525 twenty-foot equivalent units of cargo were cleared at the Mombasa port in July, compared with a monthly average of 4,000 TEUs in 2013, just before the nation descended into fresh fighting, according to Ayuel Mathach Deng, the government’s representative at the Indian Ocean port city. While landlocked South Sudan, which holds Africa’s third-biggest crude reserves, brings in most of its imports through Mombasa, it exports oil through its northern neighbor Sudan, from which it seceded in 2011 after decades of fighting. Close Shop A civil war that began in December 2013 has driven up consumer prices — with the nation’s inflation rate soaring to 661.3 per cent in July -- while falling crude prices have dried up a key source of foreign exchange. “There are no dollars anywhere; at the central bank, in forex bureaus, anywhere,” Deng said in an interview on August 12. “It is a matter of struggling if you need to import something.” South Sudan, which depends on commodity imports including wheat, oil, rice and sugar, was the second-largest destination for transit goods through Mombasa after Uganda in 2015, according to Kenya Ports Authority data. The war between troops loyal to President Salva Kiir and his former deputy, Riek Machar, which has killed tens of thousands of people and forced more than two...

Imports to South Sudan through Kenya’s main port have fallen to the lowest-ever level as resurgent violence in the world’s youngest nation hurt the fledgling economy and sent traders and citizens fleeing. Only 525 twenty-foot equivalent units of cargo were cleared at the Mombasa port in July, compared with a monthly average of 4,000 TEUs in 2013, just before the nation descended into fresh fighting, according to Ayuel Mathach Deng, the government’s representative at the Indian Ocean port city. While landlocked South Sudan, which holds Africa’s third-biggest crude reserves, brings in most of its imports through Mombasa, it exports oil through its northern neighbor Sudan, from which it seceded in 2011 after decades of fighting. A civil war that began in December 2013 has driven up consumer prices -- with the nation’s inflation rate soaring to 661.3 percent in July -- while falling crude prices have dried up a key source of foreign exchange. “There are no dollars anywhere; at the central bank, in forex bureaus, anywhere,” Deng said in an interview on Aug. 12. “It is a matter of struggling if you need to import something.” Close Shop South Sudan, which depends on commodity imports including wheat, oil, rice and sugar, was the second-largest destination for transit goods through Mombasa after Uganda in 2015, according to Kenya Ports Authority data. The war between troops loyal to President Salva Kiir and his former deputy, Riek Machar, which has killed tens of thousands of people and forced more than two million to flee...

Local importers and exporters using Dar es Salaam port have complained of thefts at sea port in which they have lost millions of dollars. However, Eng Deusdedit Kakoko (pictured right), the director general Tanzania Ports Authority, says all that is in the past. Business Times’ Peterson Tumwebaze caught up with him in Kigali last week to discuss efforts geared at addressing the challenges faced by Rwandan traders who use Dar port, particularly ensuring security at the port, as well as the strategies being put in place to eliminate non-tariff barriers (NTBs) along the Central Corridor and enhance trade between Rwanda and Tanzania. Rwandan exporters and importers using Dar es Salaam have complained about thefts at the port; what are you doing to address these challenges? Safety and security in the port area is guaranteed by TPA through its own mechanism and its agents, including inland container depots (ICDs), the Container Terminal Operator (TICTS). We have tightened security by installing a state-of-the-art integrated security system (ISS) which includes fixing CCTV cameras at various points around the port. More so, the Tanzania Railways and the truck operators along the Central Corridor give priority to cargo safety and security. The port exercises zero tolerance to any malpractice, be it among port employees, those of TICTS, or others. I wish, therefore, to assure customers in Rwanda, and around the world, that theft at the port premises is now history. Delays at the port are costing Rwandan traders a lot of money. How are you...

“Brexit means Brexit”, according to Theresa May, the UK’s newly appointed prime minister. Though what this means for trade still remains speculative, experts watching the African oil and gas industry believe that Brexit will not significantly affect the sector. Yann Alix, a partner in leading global law firm Ashurst, who has a focus on deals and projects in the African oil, gas and mining sector, said that while currencies and stocks tumbled in a number of African jurisdictions immediately after the referendum result, “Brexit is unlikely to have a significant impact on the African oil and gas industry”. Stuart Carter, partner and head of oil and gas at European law firm Fieldfisher, agrees, but argues that in the longer term some effects may be felt. “The UK could be subject to some tariffs on oil and gas from the EU, so may be more likely to import petroleum from Africa”. However, Carter stresses that this is still highly unlikely. Speculation over the prospect of a second Scottish independence referendum brought about by the Brexit result might also prove to have an effect on the African oil and gas industry. Carter believes that projects could be delayed in the Scottish area of UKCS (United Kingdom Continental Shelf) and Africa could “potentially be one beneficiary” from a slowdown in the UKCS as teams become available for other projects”. Leaving the European Union has implications of fewer trade restrictions for UK business from the EU, and this could make working with African trading...

East African Community states need to develop rural infrastructure (especially electricity and ICT) to enhance mobile phone penetration and facilitate its use. The call was made by experts in reaction to the 2016 Brookings Financial and Digital Inclusion Project Report, which, despite showing substantial progress toward advancing financial inclusion in regional countries, indicates there is room for improvement. The report, released last week, evaluates commitment to and progress toward financial inclusion across 26 countries. It says Kenya retained its position as the highest-ranked country in the study by a five percentage point margin. Of four East African Community (EAC) countries in the study, Kenya scored an overall 84 per cent followed by Uganda and Rwanda at 78 per cent and 76 per cent, respectively, with Tanzania trailing at 68 per cent. Kenya, South Africa, Brazil, and Uganda held their places in the top five-ranked countries between 2015 and 2016. Country scores are hinged on four dimensions: country commitment, mobile capacity, regulatory environment, and adoption. The lowest income economy among the countries ranked at the top of the FDIP scorecard was Uganda driven in part by its strong levels of mobile money adoption. Rwanda, which ranked among the top 10 countries overall, is the other low-income country that demonstrated “a particularly strong performance” on the FDIP scorecard “Rwanda provides an effective example of how country commitment to advancing financial inclusion and the promotion of digital financial services can lead to a more inclusive financial ecosystem,” the report says. Rwanda jointly topped...

Regional trade ministers and Government officials are set to meet in Dar es Salaam Tanzania this week in a last ditch effort to sign a joint trade deal with the European Union(EU). The Ministerial meeting is expected to speed up negations on a regional trade deal that has stalled over the last four years. With an October deadline looming to ratify the economic partnership agreement (EPA) for having a unified trade agreement with the E.U, the Kenyan government is making a last minute appeal to its East African community counterparts to commit to a joint deal. “The EAC has now convened a ministerial meeting in Dar es Salaam this month, and it will be followed by a summit of Heads of State. The matter will be taken forward in that way,” Statehouse Spokesman Manoah Esipisu said during media briefing on Sunday. If the five member states of the Eat African Community (EAC) fail to agree on a joint trade deal, exports to the E.U will be subjected to high duty rates. Tanzania and Uganda are the two countries that have raised issue with the deal calling for further talks on what the full implications of the deal are before signing. Of concern to the two countries is the intended benefit of the trade deal to the EAC. Kenya however stands as the biggest loser if a consensus is not reached given the fact that E.U rules classify the country as a middle income. As such the country is not seen...

NAKURU, KENYA: The East African Grain Council (EAGC) has asked leaders in East African Community to incorporate private sector in promoting inter-regional trade. sector in EAC integration By Mercy Kahenda Updated Mon, August 15th 2016 at 12:13 GMT +3 SHARE THIS ARTICLE NAKURU, KENYA: The East African Grain Council (EAGC) has asked leaders in East African Community to incorporate private sector in promoting inter-regional trade. EAGC executive director Gerald Masila said policy to include private sector should be in line with EAC integration policy. Masila said there is huge investment gap in EAC member countries that should support cereal and grain value chain addition to boost food security and economy of farmers. "EAGC is working close with governments to ensure there are more private sectors investing in farming to boost production and inter-regional trade," said Masila. Masila said EAGC is engaging the EAC governments not to put barriers to regional trade for instance restriction of trading licenses to farmers that lock potentials. He said limiting trade barriers will see farmers sell their produce freely in EAC a move that will boost food security and economy among the states. Source: Standard Media

The East African Community regional integration process has seen the region register improvement in logistics performance which had stagnated in previous years, a World Bank report has said. The bi-annual report, ‘Connecting to Compete 2016: Trade Logistics in the Global Economy’, ranked 160 countries on their trade logistics performance as well as the region, identifying the challenges and opportunities. The report noted that the move by the East African Community nations to integrate into one bloc had elevated the region’s logistics performance, consequently making it more attractive for investments and reducing the cost of doing business. Among the most notable changes observed by the survey was the elimination of multiple barriers to trade and transport, such as cumbersome procedures. “The Northern Corridor was once known for multiple barriers to trade and transport, including lengthy dwell times at Mombasa port and cumbersome clearance procedures along the corridor. In 2012–13, the corridor countries started a series of reforms that significantly improved the logistics environment and drove down logistics costs,” the report’s authors observed. Integration, the report says, saw the establishment of a single customs territory, thereby tackling unbearable clearance procedures. “One of the reforms was to introduce Single Customs Territory clearance procedures within the East African Community, including Burundi and Tanzania. This means final customs clearances for free circulation can be made already at the port of entry in Mombasa. The system has significantly reduced administrative burden and shortened the time required for customs formalities,” the authors said. With the single customs...

Rwandan importers and exporters will no longer need to travel to Dar es Salaam port, Tanzania to clear their shipments, thanks to a move by the Tanzania Ports Authority (TPA) to open a liaison office in Kigali in October. "This means that importers, clearing agents and exporters will be able to clear goods from Kigali without having to travel to Dar es Salaam," Eng Deusdedit Kakoko, the TPA director general, said in an interview with The New Times last week. Eng Kakoko added that the move aims at bringing services near to the Rwandan business community, "which will help cut the cost of doing business, and reduce the hurdles within the logistics and supply chain". Kakoko said the Liaison office will be a one-stop-centre, where customers can access information, including the status of their cargo, or applicable port charges. "This is a healthy and supportive development that will help to reduce time and costs, as well as improve the value chain. It also means that the Rwandan business community can make payments through electronic payment system (EPS) and attend to any queries through the Kigali office," he added. The move, according to the Treasury Registrar of the Government of the United Republic of Tanzania, Lawrence Mafuru, is also clear testimony of the commitment by the Tanzanian government to improve business environment for clients in neighbouring countries, especially for Rwanda. "We are, therefore, calling on the Rwandan business community to use of this office effectively and take advantage of the cost...

The Kenya Revenue Authority targets to clear at least 70 per cent of imports under the Pre-Export Verification of Conformity cargo clearing system effected in January. “Compliant clients will have their cargo from the ship, to the track, to their destination. The process will be non-discriminating. It will depend on your record,” commissioner for customs Julius Musyoki told port stakeholders at a meeting in Mombasa on Friday. The system, spearheaded by the Kenya Bureau of Standards, enables the customs department to conduct pre-arrival clearance at the ports of export. The pre-arrival system requires traders abroad to present all cargo destined for export to inspection companies. The exporters is also required to avail the invoice for the cargo to the appointed inspection firm to confirm the value. The pre-arrival system requires traders abroad to present all cargo destined for export to inspection companies. The exporters is also required to avail the invoice for the cargo to the appointed inspection firm to confirm the value. Carriers must also ensure a Certificate of Conformity issued by Kebs appointed inspection agents is produced, prior to loading, as evidence of quality inspection. The new measure is part of the governments efforts to curb sub-standard goods and tax leakages. Kebs has contracted four inspection companies- Messrs Bureau Veritas, China Certification and Inspection Group, Intertek International, and Société Générale de Surveillance, to undertake PVoC activities. Kebs managing director Charles Ongwae said the law on conformity safeguards Kenyans from sub-standard goods. Pre-arrival clearance will also help cut costs...