Kenya received a major boost in its efforts to connect its economy to northern landlocked markets on Wednesday after the rich countries formed an African hub to mobilise $20 billion for cross-border infrastructure projects. The Lamu Port-South Sudan-Ethiopia Transport (Lapsset) corridor is among the 16 regional projects set to benefit from a mix of philanthropic and development financing targeted under the initiative announced in Kigali. The regional hub dedicated to African projects was made public by the Sustainable Development Investment Partnership (SDIP) on the first day of the World Economic Forum (WEF). SDIP is an initiative hosted by the forum and a host of rich countries working under the aegis of the Organisation for Economic Cooperation and Development (OECD). The SDIP Africa Hub will mobilise blended finance, which combines funding from private investors and lenders, governments and philanthropic funds. BLENDED FINANCE “The SDIP Africa Hub is an important first step to accelerate the engagement of SDIP members on the continent” said Mr Terri Toyota, the head of the Foundations Community and Development Finance and member of the Executive Committee of the WEF. He added: “We envision the hub building local capacity to advance blended finance best practices for infrastructure investment and ensure a consistent pipeline of projects for the initiative from Africa.” The initiative is likely to be applauded by Kenya, which only recently received a blow after Uganda pulled out of a joint crude oil pipeline designed to run along the corridor to Lamu. Kenya has over the past...

The chief executive officer of the Private Sector Federation (PSF), Stephen Ruzibiza, has said doors for business relations between Rwandan and Tanzania business communities are now open. Ruzibiza made the remarks during the preparations to host the first Tanzania Rwanda Trade Forum (TRTF) early this month. TRTF is expected to facilitate both countries boost trade. "We have to increase exports, promote cross-border trade and investment more in Tanzania," Ruzibiza said. The forum, to be held under the theme: 'Strengthening Bilateral and Trade Investment Opportunities,' is being organized by PSF, Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA); Tanzania Trade Development Authority (Tantrade) and Tanzania Truck owners Association (Tatoa). The event aims to assemble over 100 key business players from Tanzania and Rwanda's private sectors, as well as policymakers from both governments. "Rwanda and Tanzania have a firm commitment to increase trade and cooperation through their joint membership with East African Community (EAC). There is a conducive environment for trade and we encourage Rwandans to use it," says Ruzibiza. He mentions the Rusumo one-stop border post which will soon operate for 24 hours, and Dar es Salaam port as opportunities to be exploited. According to the ministry of East African Community (MINEAC), TRTF comes at the heels of renewed political ties between both Rwanda and Tanzania following the inauguration of President John Pombe Magufuli. Magufuli's first maiden trip outside Tanzania was to Rwanda on the invitation of President Paul Kagame. The two presidents officially opened the Rusumo one-stop border post and...

Rwanda Standards Boards (RSB) has signed a memorandum of understanding with the Eastern Africa Grain Council (EAGC) to reinforce standards in commodity trade within the region. Dr Marc Cyubahiro Bagabe, the RSB director-general, said reinforcing grain standards will improve commodity value chain and promote interlinkages between grain stakeholders among the East African Community (EAC) partner states. “The partnership will help upgrade value addition in this sector and bring in economies of scale. In Rwanda, Kenya and Uganda, warehousing standards are in place but there is a challenge of lack of warehouses that meet the requirements,” Bagabe said after the signing in Kigali on Tuesday. Gerald Makau Masila, the executive director of the Eastern Africa Grain Council (EAGC), said the MoU will help foster linkages between players in the grain sector within EAC partner states, which he said would improve grain value chain. “There is a need for linkages to ensure that we have well-structured grain trade. The grain value chain would improve if only people involved with the sector worked more closely and abided by standards requirements,” he said. EAGC, a not-for-profit that prepares, disseminates, and promotes the exchange of information on matters affecting regional grain industry, also signed similar agreements with Uganda and Kenya. Source: The New Times

By Geoffrey Irungu Export orders from Uganda improved business conditions in Kenya in April after a slowdown in March, a survey released by CfC Stanbic Bank on Monday. The growth in trade with Uganda resumed in earnest after the conclusion of elections in March according to the bank. "It's business as usual in Uganda after the conclusion of elections in February and hence Kenya's manufacturing exports have been robust," said Jibran Qureishi, regional economist for East Africa at CfC Stanbic Bank. The lender forecast that the completion of the standard gauge railway will further increase the trade with Uganda. The railway line is set to reach Nairobi by mid next year. The railway is planned to be extended to Kisumu and Malaba at the border with Uganda. "As regional infrastructure is bolstered, through developments such as the standard gauge railway, we believe this avenue will continue to show more promise in the coming years," said the bank. The improvement in trading will come as a relief for businesspeople since Uganda has traditionally been Kenya's single largest export market. There has also been considerable unease following the government's failure to clinch an oil pipeline deal to transport Uganda's oil through Kenya. The deal instead went to Tanzania. The latest Purchasing Managers' Index (PMI) data released by CfC Stanbic indicates a turnaround in growth of Kenya's private sector, following a substantial slowdown at the end of the first quarter. The PMI picked up from a five-month low to signal robust improvement in...

While Europe is on the verge of breaking up, Africa is reaping the benefits of integrating, growing and developing its trading blocks The collapse of virtual borders is one of the most remarkable things to have happened in our lifetimes. In the world of cyberspace, time and distance have become almost peripheral considerations when it comes to doing business. Services from software development to accounting can be delivered across the world in the blink of an eye. Future business leaders will struggle to imagine an era when communication was neither immediate nor virtually free. But in the physical world, integration between and even within countries has happened at a much slower pace. In some regions, high freight costs are made worse by antiquated working practices, such as demanding cash deposits of $1,000 to $5,000 instead of accepting insurance. At too many borders, goods still hang around and wait needlessly, raising costs and hurting business competitiveness. There are plenty of successful examples of regional economic integration, from Europe’s single market to, increasingly, the East African Community (EAC), the fastest growing bloc on the African continent. But for every success there is a graveyard of stalled or stunted regional initiatives to remove barriers to trade and investment. This is unfortunate, because for many smaller economies, especially landlocked ones, regional integration is not a policy option, it’s a necessity. Building trade blocs with neighbouring countries can help small countries to get access to ports. It can help them achieve economies of scale, facilitate...

DAR ES SALAAM, TANZANIA - For the past year, the European Union Business Group (EUBG) has been in the middle of encouraging commercial links between business people in the European Union and Tanzania as a way to boost economic relations, including highlighting new investment opportunities. “The formation of 70 private sector members is not an easy task and EUBG deserves accolades, as this evolves to trade and investment, making Tanzanians attain better lives,” Prof. Adolf Mkenda, the Permanent Secretary in the Ministry of Trade Industry and Investment said recently. This was during an event to mark the first anniversary of EUBG in Tanzania Morten Juul, the EUBG Chairman  said: “Other achievements are to build a strong relationship with valued partners namely Tanzania National Business Council (TNBC), Tanzania Private Sector Foundation (TPSF) and fellow National business groups, formed a network of 70 private sector companies representing 12 European Union (EU) countries across 20 sectors of industry.” He said the EUBG has hosted a variety of workshops, seminars and networking events supporting the private sector in Tanzania to appreciate and comply with legislation including a dialogue with TRA and the provision of inputs into the annual budget and started a network in northern Tanzania Arusha and Moshi regions to give support beyond Dar es Salaam. According to Juul these achievements include the building of a strong relationship and dialogue with key institutions such as Tanzania Revenue Authority (TRA), Ministry of Finance, Immigration and Labour. Speaking on the same occasion, Ambassador Roeland van...

Even though the world investment report places Uganda second in the region in attracting foreign direct investment, a group of Indian investors have expressed frustration over delays in clearing business deals due to by government bureaucracy. They advised the Government to support value addition which will boost the quality of exports from Uganda, and also attract global markets and a good premium. “It takes on average 14 days to have a major consignment approved in Uganda due to delays by government officials and the lengthy approval process, which frustrates investors,” said the Chief, Trade Facilitation and Policy for Business at the International Trade Centre, Rajesh Aggarwal. He said the delays affect the country’s competitiveness on the world market and asked government to effect sustainable, inclusive and far-reaching solutions. This was during the Supporting Indian Trade and Investment for Africa (SITA Fifth Partnership Platform Meeting at the Speak country Resort in Munyonyo recently. SITA is a trade support organization established to boost trade and investment between Indian and East African businesses through growth in key sectors such as ICT. India is so far the second biggest foreign investor in Uganda, after China, according to the 2015 records from the Uganda Investment Authority (UIA). He stressed the importance of high-level government commitment in addressing non-tariff measures and implementing the necessary reforms for improving the business and investment climate “Every day spent in clearance delays affects trade by 1% according to the World Bank and there is no investor that wants to lose....

It probable that among the 1,200 visitors due in Kigali for the World Economic Forum for Africa (WEF 2016) this week, many will be surprised that they can hop over to either Kenya or Uganda using the same visa. The visa goes for only $100 and more convenient than before when one had to tackle each country’s immigration singularly. Now with the one visa, it allows access to the three countries for up to 90 days. The visa can be bought at the point of entry into any of these countries. For those who are interested in visiting one of the East African countries only, the fee will remain at $50 for Uganda and Kenya, and $30 for Rwanda. This is a great opportunity to tout the merits of the East African Single Visa launched two years ago and currently incorporating Kenya, Rwanda and Uganda. Burundi and Tanzania have more than once indicated a strong interest to join the club. The East African Community (EAC) sees itself moving towards a common agenda and by showing visitors the convenience of the Single Visa, they may just become more intrigued into investing in the region. If not right way, but at least take the time to go out and look about for opportunities. However even if their sole aim is to relax after the Forum, the tourism receipts will be much appreciated. Hosting international conferences is a very serious business. A host of cities around the world including Las Vegas, Vienna, Geneva,...

TradeMake East Africa (TMA) through the Logistics Innovation for Trade (LIFT), a development finance instrument that provides grant finance for innovative business projects proposed by the private sector operating in the transport and logistics sector in East African, has secured $7.6 million for Round 2 funding. In an interview DAVID MITCHELL, LIFT Fund Manager tells Sam Okwakol, how and what one needs to do in order to benefit from the Fund.  QUESTION: Briefly explain, what LIFT is to an ordinary reader? ANSWER: LIFT is a challenge fund that rewards innovation ideas/project in the logistics and transport sector within the East African Community with grant funding. LIFT funds innovative logistics projects (not companies) ideas that provide sustainable solutions with measurable socio-economic impacts. Funds are provided by means of grants, matching applicants funding up to $1 million (LIFT contribution) per project. Why did you choose this approach in implementing LIFT? This is a historic idea which has been used successfully in different parts of the world. We have adopted it to harness the potential and energies of individuals in the private sector to derive solutions that can reduce the logistical and transport challenges facing the region. East Africa has well educated people with good ideas, can do research and most of all care about the development of their countries. Therefore capturing their potential will help us find solutions to reduce transit time and transport cost challenges faced by the logistical and transport sector, while at the same time helping in reducing the...

Cargo transportation through railway from the port of Mombasa is set to increase by 32 per cent from the current three per cent once the Standard Gauge Railway (SGR) is fully operational. The SGR is also set to reduce the cost of transportation to Sh8 ($0.08) from Sh20 ($0.20) a tonne per kilometre (km), significantly bringing down the cost of doing business for stakeholders. The rail is expected to carry 4,000 tonnes per trip once complete. The Mombasa-Nairobi SGR project is set for completion in June 2017, and already 200 km of track has been laid while the remaining part is expected to be complete before the end of the year. Test runs are scheduled for early next year. Speaking during a railway users’ consultative forum, organised by the Shippers Council of East Africa (SCEA) and Kenya Railways Corporation, the Principal Secretary for Transport Mr Wilson Nyakera said that 75 per cent of civil works on phase one of the project are complete. The entire stretch is 472 km. Stakeholders are hopeful that the SGR will provide a reliable alternative for cargo transportation. Currently, they rely on road to move their goods to various destinations from Mombasa. “SGR will significantly reduce transport costs and the time taken to evacuate cargo from the port thereby launching the East African region as a competitive logistics hub,” said SCEA chief executive Gilbert Langat. The second phase of the SGR is expected to start later in the year, where the line will be extended...