Burundi, Kenya, Rwanda, Tanzania, and Uganda consider ending imports of used garments by 2019 in order to increase domestic production. Five East African countries may ban sales of second-hand clothing from abroad – a staple of many residents’ wardrobes – in order to bolster domestic garment making. Burundi, Kenya, Rwanda, Tanzania, and Uganda make up the East Africa Community (EAC), which directed its member countries to phase out textile and shoe imports by 2019. The heads of state of all five countries must agree before the limits could take effect. The proposal comes as many African countries seek to increase manufacturing and other industries to fuel economic growth. Charitable donations resold Second-hand clothing, mostly from Europe and North America, are a mainstay of local clothing markets in Africa, according to Dr. Andrew Brooks, author of Clothing Poverty: The Hidden World of Fast Fashion and Second-hand Clothes. In Uganda, for example, second-hand garments account for 81 percent of all clothing purchases, Brooks said. East Africa imported more than $150 million worth of second-hand clothing in 2015. Brooks noted that the used clothing is less expensive than locally produced garments or even inexpensive new imports. U.S., U.K. are largest exporters Most of the second-hand clothing sold around the world comes from charitable donations by European and North American residents who are unaware the clothing will be sold, Brooks said. The United States and the United Kingdom are by far the largest exporters of used clothing. The United States exported used garments worth more than...

A Sh1.6 billion ($16 million) grant-based fund that supports innovators and entrepreneurs working in the logistics and transport sector has opened entries for its second phase. Logistics Innovation for Trade (LIFT) Challenge Fund will provide grants ranging from Sh15 million ($150,000) to Sh100 million ($1,000,000) to winning proposals from innovators across the world, whose project ideas will be implemented in East Africa. LIFT is a TradeMark Africa initiative managed by Nathan Associates through a fund management team based in Nairobi. It is financially supported by the UK Department for International Development (DFID). It seeks to trigger and introduce innovative approaches to tackling freight and transport costs in the East African Community (EAC). TradeMark Africa CEO Frank Matsaert asked innovators to apply saying the challenge had enabled stakeholders to test new ideas that should reduce the cost and transport time in the EAC. “It is our hope that the entrepreneurs and innovators of the East African Community in partnership with their counterparts internationally will drive forward development through the adoption or introduction of ‘best practice’ technologies in the transport and logistics sector, enabling local businesses to compete favourably in the increasingly global economy,” said Mr Matsaert. LIFT Challenge Fund manager David Mitchell said the initiative’s impact to local entrepreneurs had been positive. “The Challenge Fund instruments fill a significant gap in the financial support needs of private businesses and the innovators that drive business activity to greater results and efficiencies,” said Mr Mitchell. Businesses in the transport and logistics sector, or...

The construction of rural roads under the State’s annuity programme is set to start soon, even as Kenya awaits the World Bank financing. Transport secretary James Macharia told Parliament that the ministry was working on contracts for roads in five lots which have been identified as requiring immediate attention. The country has been banking on a Sh150 billion concessionary loan from the World Bank (WB) to speed up financing of the programme which has been rocked by high cost of borrowing from banks. Last year, the National Treasury set aside Sh9 billion under a special purpose fund to finance and upgrade selected rural roads to bitumen standards. “We have said that lets start the programme with the little money we have as we wait for the other funding to come,” said Mr Macharia. He told the National Assembly Transport committee that the Sh9 billion in the annuity levy was enough to maintain road works in the five identified lots. The fund was set aside to assure road developers including contractors and financiers that the government’s annuity payment obligations will be met when they fall due. It was aimed at addressing fears that pending bills will accumulate with respect to payment demands under the new mode of financing roads development. Roads identified under the five lots are in Ngong, Kiserian, Njukimi, Taveta, Kwale, Kinango, Mariakani, Lamu, Mandera, Elwak and Wajir among other places. Under the annuity financing model, local contractors are expected to build a selected number of roads using their...

Construction of a larger docking facility for bigger oil tankers is set to start early next year as the country races to expand its petroleum storage tanks to boost reserves and stabilise fuel pump prices. The planned offshore jetty in the port of Mombasa has attracted 31 bidders from across the world and will result in the relocation of the existing Kipevu Oil Terminal (KOT) which has a smaller capacity. The Kenya Ports Authority, the agency implementing the project, on Monday opened prequalification tenders, as it seeks to assess the financial capacity and technical know-how of interested companies. “The pre-qualification exercise will enable the Authority to shortlist qualified firms to be invited to bid. Tenders for construction will go out by July 2016 ahead of actual construction early next year,” KPA acting managing director Catherine Mturi- Wairi said in a statement. Construction of the new jetty will take 30 months and is part of the ongoing expansion of Mombasa port’s second container terminal to handle larger ships. Companies from 15 countries including England, South Africa, China, Japan, Australia, India, Dubai, US, United Arab Emirates, Spain and Netherlands are eyeing the multibillion–shilling contract. Bigger oil storage tanks are also in the projects construction works. Sector players argue the country, which is a net importer of oil, would have reaped more benefits from the recent crash in global oil prices had it invested in bigger storage facilities. The country has no strategic reserves currently and relies on oil marketers’ 21-day oil reserves...

Lack of skills and capacity among clearing and freight forwarding agents has been blamed for trade hurdles across the East African region, a new survey shows. The survey by TradeMark Africa (TMA) established that 477 clearing agents in the region had not been trained on improving trade logistics. This means that freight forwarding firms continue to incur costs such as fines imposed when clearing agents make errors on systems. The TMA survey conducted between 2011 and 2014 estimated that companies could save Sh38,500 annually if they employ trained clearing agents. TMA chief executive Frank Matsaert said business prosperity is achieved when there is a trade flow. “By training key people in the freight forwarding business, we are helping move goods quicker, save time and money and help the region develop,” he said. He said the survey was based on the premise that freight forwarders and clearing agents lacked necessary skills and capacity in clearing cargo at border points which resulted to an increase in cargo clearance costs and cargo release times. It was implemented by the Federation of East African Freight Forwarders Associations (FEAFFA) in conjunction with the East Africa Revenue Authorities (EARA). A total of 4,023 out of 4,500 freight forwarders and clearing agents were trained during the programme that sought to seal some skills gaps. The highest number of graduates in the programme were from Kenya, 1,665, while Tanzania had 1,218. Uganda, Rwanda and Burundi had 717; 299 and 164 graduates respectively. The survey projected an 84 per...

Kenya is mulling terminating the Standard Gauge Railway (SGR) in Naivasha or Kisumu after Rwanda pulled out of the flagship infrastructure project on the Northern Corridor. Transport Cabinet Secretary James Macharia played down the impact of Rwanda’s exit even as he acknowledged that extension of the line to Malaba may no longer be necessary if landlocked states opt out. “The decision has not been reached but we have a number of options at our disposal. We can decide to end the SGR at Naivasha or Kisumu but it will still be a viable venture due to the presence of Lake Victoria,” said Mr Macharia. Rwanda last week announced plans to build a railway through Tanzania to the Indian Ocean noting that the route is cheaper and would take shorter time to complete. The country’s last-minute pullout from the SGR came as a surprise to Kenya which has build almost 80 per cent of the first phase running from Mombasa to Nairobi. Kenya, Uganda, Rwanda and South Sudan have been keen on connecting their economies via the fast-speed SGR running along the northern corridor. Speculation has been rife that China — which is financing the Mombasa-Nairobi section of the railway — is keen on taking up the whole project. Uganda, which is the top transit destination of Mombasa port cargo, has not build even as single inch of its section of SGR, putting pressure on Rwanda instead. The Kenya Ports Authority sees an efficient railway link from Mombasa as a sure...

As traders rue missed opportunities relating to Uganda choosing Tanzania over Kenya on the pipeline route, other initiatives are going on to spur intra-trade in East African. Hopefully, the recent initiative by Kenya and Uganda supported by a number of global and regional bodies to create a common platform for facilitating cross-border trade in fish and fishery products, using Busia Border point will succeed. Many times, the cumbersome and punitive inspection protocols for animal, human and plant products across the countries, which have different requirements and standards, has made it difficult for intra trade between the two countries. Uganda has a bigger supply for fish products, which on many occasions go to waste, while traders in Kenya face a huge domestic demand for fish products for local and export consumption cannot access because of stringent standards and different trade regimes within the two countries. To ease the cross border trade in fish and fish products, that will allow increased intra trade within the two countries, and by extension, export to other countries, a number of activities and facilities are to be established at the Busia border point that will provide quick inspection of human, animal and plant products health both at and behind borders. The pilot is among the several initiatives being implemented by partners in the business community as a way of increasing the level of intra trade volumes in Africa including: the EAC has developed the regional sanitary and phytosanitary standards, (SPS) the Inspectors’ guide; standard Operating Procedures;...

China has pledged to finance the Tanzania-Zambia Railways (Tazara) and extend it to four other countries. Official from the three governments — China, Tanzania and Zambia —  are meeting in Dar es Salaam to put together details of the plan whose proposal include reducing the bloated Tazara workforce, The East African reported. The plan will include renovating the 1,860 kilometers track and linking Tazara to Tanzania’s new Bagamoyo port and to Malawi, the Democratic Republic of Congo, Rwanda and Burundi. The plan is part of the China-Africa co-operation agenda discussed at the Forum On China-Africa Co-operation in Johannesburg in December 2015, Rowland Msiska, secretary to the Zambia Cabinet said. “Rwanda, Burundi and Eastern DR Congo will be linked through the Seleka-Mpulungu section of Tazara in Zambia, where the construction study has already been completed and is only awaiting financing,” Bruno Ching’andu, Tazara CEO, told the East African. The Citizen reported that China will take over the management and operation of the railway line in a privatization arrangement that has been termed by the Tanzanian government as turn-around strategy. Tanzania and Zambia would also review their domestic laws to provide for preferential provisions in the running of Tazara, with a view to attracting more private players. It is the only railway line in Africa that links three economic blocs, including the East African Community, COMESA and SADC, that serves more than 600 million people or half of the continent. Volume of cargo transported on the line has bee dropping over the years despite increased throughput...

The TITF will be opened by the Minister for Industries and Trade, Mr Charles Mwaijage.“The Tanga –Uganda Oil pipeline project expected to cost about $4bn (£2.8bn) has generated a lot of interest in Tanga’s business community, and of course, there would be a lot of inquires on how society could cash in on the proposed projects,” the Executive Secretary of the Tanzania Chamber of Commerce, Industry and Agriculture (TICCA), Charles Hoza said. The TCCIA and the Tanzania Trade Agency (TANTRADE) are the joint organizers of the Trade Fair that was launched with fanfare with hope to make it a big East African event four years ago. The discovered oil reserves in Uganda are estimated at some 6.5bn barrels, and the country expects to start production in 2018. France’s Total, China’s CNOOC and the Anglo-Irish company Tullow Oil hold most of the license, according to information made available here. “The pipeline to Uganda is another development opportunity that Tanga residents have been given by the government. People should come and be introduced to the various opportunities that would come with the pipeline,” said Mr Hoza. Speaking at a recent meeting in Tanga, the new TCCIA Tanga President, Peter Chisawillo challenged business men and women to attend the fair to learn how they can grab opportunities to be brought by the construction of an oil pipeline from Uganda to Tanga port. “Come to the Fair where TPDC would be in high profile and learn how to explore areas which will attract business...

KIGALI—Rwanda has announced plans to develop rail links to Indian Ocean ports through Tanzania because they were cheaper and shorter than the route transiting Kenya, says Claver Gatete, Rwanda minister of finance and economic planning. Gatete told reporters on Sunday that the Tanzania route was cheaper and would not take long to be completed compared to the Kenya route. In 2013, Rwanda, Kenya and Uganda agreed to link up to the Kenyan port of Mombasa along a standard-gauge railway estimated to cost $13 billion. Studies done by member states in the six-nation East African Community (EAC) showed that the Tanzanian option would cost Rwanda about $800 to $900 million dollars while the Kenyan one would go for $1 billion, according to the Rwanda ministry of East African Community Affairs report. “We opted for the route transiting to Tanzania during the construction of our railway line because the Kenyan route would be expensive and time consuming,” said Gatete. The Dar es Salaam-Isaka-Kigali/Keza-Musongati (DIKKM) standard gauge railway (SGR) project is expected to be completed by March 2018 and is estimated to cost three countries $5.2 billion. Eng. Jules Ndenga, acting special project implementation unit coordinator at the Rwanda ministry of Infrastructure, said that Rwanda and Tanzania had already held joint technical monitoring committee meeting to fast-track the project implementation. “We are conducting a joint development of the standard gauge railway with our counterparts from Burundi and Tanzania. We have agreed contract terms and conditions and the Rwanda Transport Development Agency (RTDA), will...