Archives: News

Kenya: New Railway to Boost Mombasa Port Container Capacity, Says CS

By Mwakera Mwajefa Container handling will increase from one million to two million a year at the port of Mombasa once the standard gauge railway begins operations in June next year, says Transport Cabinet Secretary James Macharia. Mr Macharia said Kenya's gross domestic product (GDP) would also grow by 1.5 per cent annually, courtesy of the new line. "Through this project, we believe it will positively impact on transforming the port of Mombasa in terms of container movements compared to the current situation," he said. Mr Macharia spoke on Saturday after touring the Mombasa West railway project accompanied by the chairman of the Standing Committee of China National People's Congress Zhang Dejiang. Noting that Kenya is the economic powerhouse in East Africa, Mr Macharia said the new railway would open up trade and commerce along the northern corridor that serves Uganda, Rwanda and South Sudan. As it stands currently, said the CS, the Cabinet meeting on Wednesday approved Phase Two B of the project from Naivasha to Kisumu from where Phase Two C -- from Kisumu to Malaba border post -- will be commissioned. Speaking after touring the railway projects funded by his government at Skembo, Port Reitz on Saturday, Mr Zhang said its completion would tremendously change the country's transport sector. He expressed satisfaction that 90 per cent of the project was near completion and what remained was only 10 per cent, which he promised would be hastened. "After my briefing today (Saturday), I am happy to report that...

How new set of import rules are taking heavy toll on small traders

In downtown Nairobi, near the River Road-Tom Mboya Street junction, business is a buzz. Scores of small scale traders run shops, popularly known as stalls, selling mostly office and home electronic appliances. Competition is stiff as evident by traders who jostle to catch the eye of potential customers. Mr Franklin Njorua is one of the traders. His small shop is almost bursting at the seams with wares. However his business prospects are not as bright as they seem. He told Money that the fortunes of small businesses have changed dramatically after government implemented new rules that require all imported cargo to have a certificate of conformity. The small traders like Mr Njorua who used to bring several varieties of goods in small quantities are now forced to buy in bulk in partnership with other importers or alone and bear the huge cost of inspection in China and Dubai. “I had to bring all these computers because we have to pay for inspection in China while seeking the COC (certificate of conformity) which we pay per item type. The cost of this may sometimes be even higher than what you are bringing in considering that we bring items in very small quantities,” Mr Njorua said. “It is very difficult because it takes more time to obtain goods and as you can see stock is hard to dispose and storage space is scarce. We don’t even know how to pass the cost to the customers who don’t understand these changes.” The November...

Law to harmonise states’ legislations with EAC sought

In Summary The East African Legislative Assembly (Eala) believes the enactment of an omnibus law would cure, if not overcome, challenges of harmonisation of the member countries’ legislations on the community and implementation of joint programmes. Advertisement Arusha. A new legislation intended to harmonise all national laws pertaining to the East African Community (EAC) by all partner states has been proposed. The East African Legislative Assembly (Eala) believes the enactment of an omnibus law would cure, if not overcome, challenges of harmonisation of the member countries’ legislations on the community and implementation of joint programmes. The regional Assembly, which ended its plenary session in Dar es Salaam recently, also wants an administration law for the Common Market Protocol be instituted to ensure its smooth implementation. “The assembly is of the view that such a move shall cure existing challenges of harmonisation of partner states’ laws pertaining to the community,” said Bobi Odiko, the spokesman of Eala in a statement to the media. In the same vein, the Eala session, the first to be held in the country’s commercial capital in nearly three years, tasked the EAC Council of Ministers to prioritise harmonisation of laws for EAC “in order to facilitate integration within the set time frames”. The Council, which is the policy organ of the community, directed the Sectoral Council on Legal and Judicial Affairs to expedite implementation of the entire Article 126 of the EAC Treaty which obliges partner states to harmonise legal training and certification and encourage standardisation...

TANZANIA TO START REQUIRING IMPORT PERMITS FOR LUBRICANTS STARTING MAY

In an effort to prevent sub-standard products from entering Tanzania, importers of lubricants will be required to obtain import permits from the Tanzania Bureau of Standards (TBS) commencing May. Minister for Industry, Trade and Investment Charles Mwijage made the announcement during his official visit to three lubricant blending plants in Dar es Salaam, the largest city in Tanzania. Mwijage said there has been an influx of sub-standard lubricant products in the local market; thus TBS is compelled to implement a mechanism to stop this. “In the previous years people were importing oil lubricants without any permits from TBS, something which has brought us here, from today onwards anyone who wish to import must get permit from TBS,” he said. The minister pointed out that the use of sub-standard lubricants could potentially harm equipment and cause vehicles to break down. Mwijage urged mining and other industries to use locally produced lubricants, pointing to the potential loss of local jobs. Source: F+L Daily

MTN celebrates women in business

On Friday evening, MTN in a big bash at Serena hotel celebrated the women who have excelled in business. It was the fourth year running that the MTN Women in Business awards and gala night was taking place. The red-carpet event was a definition of mixing business with pleasure. It kicked off with cocktails, before getting down to the serious business of the evening. About 90 per cent of the attendees were high-profile women in Uganda, across different sectors. Once inside Victoria hall, the panelists took to the stage and discussed how technology can be used to manage business. Moderating was Vision group’s Susan Nsibirwa while the panel was made up of Mapula Bodipe, chief marketing officer of MTN Uganda; Allen Asiimwe, country director, TradeMark Africa; Jean Mugisha, head of marketing, Vivo Energy; and Judy Rugasira Kyanda, managing director, Knight Frank Uganda. Away from the panelists’ stage was the performers’ platform. It was graced by Afrigo band’s Joanita Kawalya who performed Suzana, Nfunda N’Omubi and her mega hit Jim that had some of the guests joining her on the dance floor. Also performing on the night was Unit 446 band that had Jemimah Sanyu, Ian Businge and Happy K, whose skill on the saxophone stood out while performing with Joanita Kawalya. The band also performed their version of Wiz Kid’s Ojuelegba, and You Move Me, among others. AWARD WINNERS: CEO of the Year: Alice Karugaba, Nina Interiors. Excellence in ICT: Susan Ajok, Straight Talk Foundation. Excellence in Financial Services: Jacqueline...

Rwf6.5b Rubavu warehouse to ease cross-border trade

The Government of Rwanda has signed a partnership deal with Alpha Logistics Limited to construct a modern bonded warehouse at Petit Barrière, Rubavu District in the Western Province. The $8.6 million (Rwf6.5 billion) facility is part of government’s strategy to boost the country’s logistics industry and promote cross-border trade, according to the Trade and Industry Minister, Francois Kanimba. Kanimba said the concessional agreement will see Alpha Logistics design, construct, finance, operate and maintain the facility for 20 years. He said the project will reduce the time and costs associated with cargo movement and handling at the Rwanda–DR Congo border. “It is also designed to enhance efficiency and quality of Rwanda’s logistics industry,” Kanimba told The New Times on Tuesday during the signing ceremony of the agreement in Kigali. The Ministry of Trade and Industry has been in the process of implementing the Rwanda Logistics and Distribution Services Strategy which will enable Rwanda to overcome logistical difficulties to improve Rwanda’s trade competitiveness. Alphonse Semugaza, the managing director of Alpha logistics, said works on the facility would be completed in 12 months. He added that the works for the project, which will seat on 2.03 hectares of land, includes constructing internal roads, equipment maintenance and repair yard, offices, administrative building, security and IT facilities, landscaping, and electricity and lighting, among others. The firm that is presently mobilising, is expected to start counstruction works in about two months. When completed, the warehouse will ease and enhance cross–border trade between Rwanda and DRC, experts...

UK-backed African infrastructure projects are ‘pipeline for investment’, says minister

The UK has outlined plans to increase its support for infrastructure development in Africa and encourage further investment on the continent. The UK's Africa minister James Duddridge told an infrastructure conference hosted by the international and current affairs think-tank Chatham House in London on 15 March: “Infrastructure is a pipeline for money. Airports, railways and roads are all pipelines for economic activity. This requires local knowledge and skills but also global expertise and help to get people and money moving.” “UK companies have skills and expertise from project design, through planning and implementation,” Duddridge said. “British architects, professional services, legal firms and capital markets are among the best in the world and stand ready to support infrastructure development on the continent.” Duddridge said there was “no quick fix” for infrastructure challenges in Africa, but part of a new UK-led ‘Prosperity Fund’ for the region, worth £1.3 billion ($1.8bn) over five years, “will be used to help Africa grow out of poverty”. Duddridge said current UK projects include supporting “critical feasibility studies” for Tanzania’s government “to secure bigger finance through the World Bank”. “With greater funding, Tanzania can improve the port infrastructure and realise the regional trade benefits that will come from improved freight corridors across Tanzania,” he said. The UK’s Department for International Development is backing a Tanzanian government programme with the World Bank to make the major commercial port city of Dar es Salaam, on Tanzania’s Indian Ocean coast, “more resilient to extreme weather events”, Duddridge said. Duddridge said...

No more jostling in Uganda-Tanzania oil pipeline deal

If economies had faces, then those of Uganda and Tanzania would be wearing smiles right now. The two neighbours reached a milestone when energy ministers from the nations penning a project implementation plan (PIP) on a crude oil pipeline linking them. Once completed, the project would enable over 200,000 barrels of oil to be transported per day from Uganda’s Lake Albert area to Tanzania’s Tanga port on the Indian Ocean coast ready to be supplied to the world. When signing the pact, Uganda’s Energy Minister, Irene Muloni and Tanzania’s Energy and Minerals Minister, Prof Sospeter Muhongo expressed the two state’s desire to fast track the implementation of the project, saying it is an important undertaking for the two nations in the region. Hammering the nail home, Adewale Fayemi of Total E&P Uganda, the French firm undertaking the project, cleared fears over its possible delays, saying there was no likelihood as the funds to build the pipeline are already available. President Magufuli was earlier quoted as having challenged Total to see if completion of the project could be expedited and take less than the years that have been planned. It is rather encouraging to learn that the political will is not wanting on both countries involved in the implementation of the project which, at a certain point, seemed to have been mired in high level regional politicking. On the one hand, neighbouring Kenya had her eyes on the project with the ambitious vision of linking the pipeline with Ethiopia and South...

East Africa to harmonize laws on wildlife trafficking

The East African region has embarked on harmonizing laws on illegal wildlife trade as part of efforts to fight vice. The director, ministry of tourism, wildlife and antiquities, James Lutalo, said they are already working on mechanisms on how they can combat the illicit trade. "We want our laws to be harmonized. We want all countries to have tough punishments for the perpetrators like in Kenya where they have a life sentence," he said. Lutalo disclosed this while closing a five-day workshop training for law enforcement officers from different agencies on the prevention of wildlife trafficking in Entebbe. It was facilitated by the International Fund for Animal Welfare (IFAW). Lutalo said that although the entire East African region remains a transit route of wildlife trafficking, Uganda remains the top-most used route for many wildlife items because of its porous borders and weak laws. Margaret Kasumba, the acting law enforcement coordinator at the Uganda Wildlife Authority (UWA) said they seized some 4,000kg of ivory between 2014 and 2015. She said many items go undetected due to poor coordination of various agencies and lack of skills by law enforcers. Uganda Revenue Authority (URA) and Police also impound 4,310kg of ivory and rhino horns in 2015. - See more at: http://www.newvision.co.ug/new_vision/news/1420150/east-africa-harmonize-laws-wildlife-trafficking#sthash.rJXe1qrE.dpuf Abel Kagumire, the manager, enforcement operations at URA, said most items were seized at Entebbe Airport disguised as shear butter, while others were camouflaged as matooke and aircraft equipment in transit to Singapore and Netherlands. Lutalo said wildlife trafficking is categorized as...

EAC: Protectionism will not help locally produced goods

This is a critical and strategic discussion that should continue and I’m glad it was triggered by the Minister of Trade and Industry; it means it is high on the agenda of the Government of Rwanda. For industrialisation to take place, there are many prerequisites: universities must be actively involved in research and development, availability of basic infrastructure (electricity, water, transportation and Internet connectivity), access to finance (and even preferential treatment for local firms...just replicate the EXIM banks in most OECD countries) and reduction of government red tapes. During the conversations, I would also throw this question out there; what is really our competitive advantage? If we think we can manufacture tyres in Rwanda and be competitive then indeed we are missing the point. I also don’t agree with these rules of nationalistic protectionism being promoted at the East African Community level; it creates uncompetitive and non-innovative companies (this sounds like welfare of sorts...Europe has tried it before and failed). For Rwanda, what we should focus on is how to aggregate in environment protection, textile, coffee, food processing and export (products and services) to big markets in Africa, China and USA. Finally, we need to tap into outsourcing opportunities in technology and related services. That should be part and parcel of our industrialisation policy. And, don’t forget to invest in think-tanks (local and regional). Al ************************* And what is “industrialisation”? Is it switching hand work to machine work? Replacing own oriented work with factory wage work? Relinquishing personal, landlord, or...