The Tanzania business community is gradually increasing its use of the Port of Mombasa citing too many bureaucracies at Dar-es-Salaam port. An importer said Tanzanians are afraid of using their own port because of strictness, “where port management is afraid of making decisions for fear of annoying the presidency”. The Tanzania Ports Authority staff are reportedly wary of an action by President John Magufuli, who sacked four senior officers including director general Awadhi Massawe and the authority’s board chairman Joseph Msambichaka in December. The purge, said to “root out corruption and inefficiency at the port” saw at least 25 people sacked, including eight middle-level managers. The slow decision-making has since been blamed for bureaucracies at the port handing over a brisk business to Mombasa, which is already clearing goods destined for Tanzania through the Single Customs Territory. “More Tanzanian traders are now using Mombasa port to import their wares,” another importer told the Star. The Kenya International Freight and Warehousing Association confirmed increased activities in clearing cargo destined for Tanzania. “Things have changed because of the new systems in place which have made importing through Mombasa faster and better. People are coming to Mombasa,” Kifwa chairman for Mombasa region, Eric Gitonga said in a telephone interview. The East Africa Online Transport Agency said its Tanzanian clients and investors are on a wait-and-see situation. “Uncertainty in Tanzania’s political environment is one of the issues coming up in regional forums currently. People are slowing down on investments and imports in Tanzania,” said...

The arrival of Tanzania President John Magufuli in Rwanda on Wednesday for a two-day official visit marked a special moment for East Africa. First, it signified thawing relations between Dar es Salaam and Kigali after years of feuds following a fallout between Dr Magufuli’s predecessor Jakaya Kikwete and President Paul Kagame over claims that Tanzania favoured the Democratic Forces for the Liberation of Rwanda (DFLR). Rwanda believes DFLR played an active role in the 1994 genocide on its soil that claimed the lives of more than a million people. Significantly Dr Magufuli is today scheduled to officiate at an event to commemorate the 22nd anniversary of the genocide that drew global attention to the tiny east Africa nation, symbolising a truce over the genocide claims. “Rwanda extends a special welcome to His Excellency John Magufuli, President of the sister nation of Tanzania! Karibu sana mheshimiwa rais,” Rwanda Foreign Affairs minister Louise Mushikiwabo said on Wednesday. But even more critical, President Magufuli’s maiden trip abroad since his election in 2015 signifies a deep resolve to restore Tanzania’s clout in the region and shake-off the recent ‘lone-ranger’ tag among other East Africa Community (EAC) partners on key integration issues such as trade and infrastructure development. Presidents Magufuli and Kagame on Wednesday jointly opened the Rusumo one-stop-border- post to improve trade between the two countries — firming up Tanzania’s latest onslaught to restore active participation in EAC matters after an infamous fallout with Kenya, Rwanda and Uganda over regional integration issues. The fallout...

Africa, it is often said, is a continent that leapfrogs various intermediary stages of technology. From fixed to mobile telephony, Africa leapfrogged the usual phases of technological advancement. It does not come as a surprise, therefore, that on a global level, the East African Community is one of few regional blocs that have scrapped mobile roaming charges. And this is just the beginning. Introduced in October 2014, the One Network Area aims to harmonise tariffs on mobile voice calls, SMS and data transmission within the EAC. Today, roaming charges between Rwanda, Kenya and Uganda have been removed, making all mobile calls between the three countries local. This has led to a minimum 400 per cent increase in the volume of calls — a direct benefit to EAC citizens and African businesses operating across the region’s borders. Previously, making calls across the EAC was more expensive than calling Europe, America or Asia. The second phase of the ONA initiative is underway, with telecom operators revising SMS and data charges downwards. Rwanda began this process in August 2015, and the idea is to have a truly integrated regional bloc with all mobile telephony barriers removed. Compare this with older and more advanced regional blocs in the West or in Asia. The European Union for example, only recently voted new rules that will scrap mobile roaming charges — a reality that will happen in 2017. This has taken the EU almost a decade of negotiations and an interim cap on roaming charges is...

Kenya will start building a new offshore crude oil and refined fuel jetty in October. The jetty is expected to increase efficiency in delivery of imported refined fuel for Kenya’s domestic use and export to Uganda, Rwanda, Burundi and eastern Democratic Republic of Congo. The Kenya Ports Authority (KPA) plans to build the jetty near Dongo Kundu from October to December 2019 to handle larger tankers and relocate existing Kipevu Oil Terminal from Port Reitz. READ: Kenya to move oil terminal, double capacity in Nairobi KPA head of procurement Yobesh Oyaro said Denmark-based Niras will supervise building of the new terminal to replace the existing facility near berth 19 container terminal. He said relocation from Port Reitz to an offshore site will to allow offloading of tankers with a capacity of 170,000 tonnes to improve port efficiency and meet the region’s growing demand for refined oil products. The new island terminal will have four berths capable of facilitating import as well as export of crude oil, heavy fuel oil, dual purpose kerosene, diesel and petrol. The terminal is expected to make Mombasa sea port a major trading hub. The terminal will have a crude oil pipeline connecting it with the Changamwe-based Kenya Petroleum Refineries Ltd (KPRL). Early production of waxy oil found in South Lokichar basin, is set to start in June 2017, entails use of the road to Eldoret and rail transport to KPRL in Mombasa for storage ready for export. The new island terminal will have four other...

Rwanda’s economic managers face the daunting task of crafting new measures to bridge the ballooning trade deficit. The country continues to import more goods and services, eating up its narrow foreign-exchange earnings due to sluggish growth in exports. Despite ongoing efforts to boost exports, the latest central bank figures released this past week show that Rwanda’s trade deficit widened by 12.7 per cent in the first two months of 2016, from $263.55 million to $297.02 million due to high import demand, which increased by 7.2 per cent in value. Meanwhile exports decreased by 9.7 per cent. There is growing concern that the widening current account deficit could discourage foreign investors worried about losing their money, while making it difficult for the country to pay its foreign debt as the currency depreciates further. Figures show that formal exports covered 20.6 per cent of formal imports against 24.4 per cent in the same period of 2015. As a result, the deficit intensified pressure on the foreign exchange market with the franc depreciating against the dollar by 2.6 per cent on March 24 compared with December 2015. The economy remains vulnerable to domestic and global shocks, in particular lack of foreign exchange, which could undermine growth. READ: Huge import bill strangles Rwandan industries, slows down growth “If the current deficit becomes unsustainable, it will ultimately force the country’s currency to weaken; and if you have invested in the country, then obviously the value of your investment drops,” said Andre Roux, co-head of emerging...

TANZANIA Ports Authority (TPA) has finally secured funds for construction of berths 13 and 14 which were on drawing board for almost five years. The fund, 690 million US dollar, put together by World Bank, DFID and TPA, will enable the much awaited project to take off in 2016/17 fiscal year. TPA’s acting Director of Planning and Investment, Gladson Urioh, said the fund will also involve the construction of berth 12 after relocating Kurasini Oil Jetty to Mbwamaji in Kigamboni. “A German consultant is on site… if all go as planned we expect to have the twin container terminal design shortly,” Mr Urioh said at a seminar for editors and senior reporters from mainstream media last Friday. The design would enable to set construction process and whether to have a partner on running the project and terminal. He said the construction of the two terminals was delayed as the previous two contractors, from China, were disqualified after failing to deliver in previous projects. “We had to start afresh on designs as the previous contractors did not leave behind any document for the berths as they were yet to complete the task,” Mr Urioh said. The consultant will, among other things, propose suitable Public Private Partnership (PPP) option for development and operation of berths 13 and 14. Mr Urioh said the project fall under Dar es Salaam Maritime Gateway that geared on expanding and improving also berths 1 to 7. The berths, according to TPA, will be transformed to dedicated service...

IN SUMMARY WOMEN IN BUSINESS. MTN’s Women in Business dinner attracted women and men from both professional and business circles, who shared and learnt from each other’s experiences. Step up. These two words uttered by Jennifer Mwijukye, chief executive officer and founder Unifreight Group, the keynote speaker, were both the conviction and inspiration that the women gathered at the 2016 MTN Women in Business awards dinner needed. “CEOs who are seated in the office can no longer sustain their businesses. You must go out there. Think beyond profits and think about how to sustain your business and impact society,” Mwijukye said. Set against the backdrop of women adapting ICTs to boost their different businesses, the evening at Kampala Serena Hotel last month, brought together both professional and business women, as well as a few men, to sip from the wisdom of different experiences. Right from the former finance minister Maria Kiwanuka, to the admirable panellists, the speakers quipped that technology goes a long way to improve one’s business, especially the Small and Medium-sized Enterprises (SMEs), giving them a competitive edge and also helping one minimise costs. Data from Uganda Communications Commission puts the number of internet users in the country at 8.5 million, thus women in business are able to take advantage of this fast growing technology to provide business solutions. The panel, moderated by Marketing and communications specialist Susan Nsibirwa comprised Knight Frank’s managing director Judy Kyanda, TradeMark Africa Country director Allen Asiimwe, MTN’s chief marketing officer Mapula Bodibe...

A new report unveiled at the ongoing African Development Week meeting at Addis Ababa indicated the cross-border movements were easiest between Kenya, Uganda, Rwanda, Burundi and Tanzania. EAC's leadership in integration, which identified various matrices including roaming costs and volume of trade, is a major indicator towards achieving the dream of a unified Africa by 2063. "Deeper regional integration means larger markets and industrialisation and productivity as part of value chains," said Erastus Mwencha, the deputy chairperson of the African Union Commission, adding: "It means talent mobility thanks to greater visa openness." Kenyan citizens, for instance, only need to produce their national identification documents to enter any of the countries in the bloc, while work permit requirements are minimal as the region works towards the dream of a common currency. A regional parliament made of 54 members, which has been sitting since November 2001, is charged with streamlining the respective country laws with the vision of the five-member community. Several firms have had their shares cross-listed at the various stock exchanges. Integration in the EAC was ranked ahead of the Southern African Development Community (SADC) bloc where Tanzania has a cross-membership. South Africa is the most developed economy in the trading bloc, and is naturally the biggest exporter into the 15-member community. Africa's largest bloc, the Community of Sahel–Saharan States (Cen-Sad), which draws membership from 27 countries in the northern part of the continent including Kenya and Somalia, is ranked worst. Among the reason for the poor score is the...

CHISHALA MUSONDA, Ndola THE Zambian and Malawian governments have shown interest to revive transportation of petroleum products using Tanzania-Zambia Railway Authority (Tazara) line. Malawi transports freight using Tazara from Dar-es-Salaam to Mbeya where they have a government-owned inland container depot and storage tanks for fuels. From Mbeya, the cargo is moved by road into Malawi. Company deputy managing director Betram Kiswaga said Tazara has improved its operations and increased cargo transportation in volume. This follows renewed confidence shown from its customer base following improvement in Tazara’s operations which confirms that it has now attained some levels of stability. Briefing the media recently, Dr Kiswaga said the authority has received positive response from key customers who have increased their monthly volumes of cargo transportation. “We have received renewed commitment and are expecting huge volumes of freight from customers that had lost confidence in Tazara including the Zambian and Malawian governments that will be resuming transportation of petroleum products using Tazara line,” he said. Tazara is determined to continue building on its achievements to raise its operation performance even higher even though it faces challenges. “The authority faces challenges, but we take these challenges as an inspiration and a motivation to every employee to work even harder to survive and turn around this great facility,” Dr Kiswaga said. In November, Tazara received 10 diesel-electric locomotives and 18 coaches and Dr Kiswaga said this will help improve operations for the company. The equipment was bought through the 15th Protocol of Economic and Technical...

By Marc Nkwame Arusha — AS the new Secretary General for the East African Community is set to report at the Secretariat this month, the East African Employers' Organization already has some tasks ready for him. "We want the new EAC Secretary General, Mr Liberat Mfumukeko, to push the five governments of the member states in fast-tracking free movement of workers, persons and labour," stated the chairperson of the East African Employers' Organization (EAEO), Ms Rosemary Ssenabulya, who is also the Executive Director of Uganda Employers' Association. Ms Ssenabulya was delivering a joint statement from heads of employers' associations from Tanzania, Kenya, Uganda, Rwanda and Burundi who gathered here under their EAEO umbrella to discuss the implementation of the East African Community's Common Market Protocol, launched back in July 2010 but until now, many figure that the CMP remains a far-fetched theory. Free movement of people, capital and labour were among the things stipulated in the East African Common Market Protocol. However the EAC stated earlier that, free movement of people will only be viable once each member state issued machine-readable Identity Cards. "We are however happy that, Kenya, Rwanda and Uganda have waivered work permit fees in their respective borders, which by itself is great achievement of the East African Community under the outgoing Secretary General, Dr Richard Sezibera," added the Executive Director of the Association of Tanzania Employees (ATE), Dr Aggrey Mlimuka, the Secretary General of EAEO. They were of view that, it is high time Tanzania and...