Archives: News

Goods registration plan to reduce cross-border delays

Summary Waiting times at the border stations are commonly used as an indicator of trade facilitation performance. All registered products require a local certificate of conformity to be permitted into the country. Kebs shall register products based on test reports from laboratories accredited to ISO/IEC 17025, product certification by the National Standards Body and/or under IECEE scheme. The import, export and transit of goods and the means of transporting them are subjected to national and international regulations. Compliance with these regulations is checked and enforced when the goods arrive in the country of transit or destination. In most countries, this is at the border crossings or stations close to the geographical boundary of the country. Unfortunately, traders, their representatives and drivers in most cases are forced to undertake multiple formalities at border crossings to release and clear the goods. At times this becomes a lengthy or speedy process depending on the organisation of the border crossings, the procedures in place and management of those formalities. As a result, delays have become common, with pictures of endless lines of waiting trucks depicting trade barriers, particularly in developing countries in Africa. Waiting times at the border stations are commonly used as an indicator of trade facilitation performance. However, the delays and incalculable timelines harm transit traffic and cross border trade. They cause unpredictable delivery times for traders and make it difficult for them to participate in a time-sensitive logistics chain of business with the producer and cargo owner. Uncertain timelines also increase...

Inclusive loans lift women up

Zione Tchale, 41, a mother of two children from Chabwera Village, Traditional Authority (T/A) Sitola in Machinga District, lost her husband in 2002. She was forced to go back to her home village where, for seven years, she lived a tough life raising her children single-handedly as a jobless widow. After some six years, she decided to venture into a business largely unexplored by women at that time, with trends only starting to expressively change in recent years. “In 2008, I enrolled in a carpentry and joinery course at Macoha Technical College to gain skills for running my own business later,” Tchale recalls. Misfortune struck just after she had thought her troubles were over. After opening a small carpentry shop following the completion of the course later the same year, an electric fault sparked a blaze that destroyed everything in the shop. In 2019, another predicament hit her. A second shop she had put up got blown down by strong winds. “Now, I did not have adequate tools and business capital. Unfortunately, there was no microfinance institution available to assist with additional capital for a small business like mine. From 2019, my family was surviving on piecework until I got a loan two years later,” Tchale says. In 2021, when the National Economic Empowerment Fund (Neef) started disbursing loans, Tchale joined an all-women group named Miracle and applied for a loan from the fund. Out of the total amount that the group received, Tchale received a K400,000 loan which she...

Ease of doing business across EAC should be the priority of all organs

Summary Before the Covid-19 pandemic, the region’s economic growth was projected at more than 5 percent, well above the continent’s average of 3.3 percent and the global average of 2.9 percent in 2019. In March 2020, the pandemic disrupted global supply chains following introduction of measures to contain the spread of Covid-19 such as closed borders, social distancing, partial and complete lockdowns. Unfortunately, small-scale cross-border trade collapsed from an average of $44 million in the first quarter of 2020 to $1.15 million by the end of November 2020 because of the Covid-19 restrictions such as lockdowns and curfews. It’s 23 years since the re-establishment of East African Community (EAC) and time to address what more we collectively need to do to realise the dream of East Africa being a prosperous and vibrant economic bloc. Our bloc is widely recognised as the most integrated and fastest growing regional economic bloc in Africa. It has been 17 years since the formation of the Customs Union and 12 years since the implementation of the Common Market protocol, and a tremendous amount has been done to win such accolades. Before the Covid-19 pandemic, the region’s economic growth was projected at more than 5 percent, well above the continent’s average of 3.3 percent and the global average of 2.9 percent in 2019. It is expected to return to such high levels going forward. In March 2020, the pandemic disrupted global supply chains following introduction of measures to contain the spread of Covid-19 such as closed...

Opening up new frontiers for young people and refugees in agribusiness

The Food and Agriculture Organization of the United Nations (FAO) Subregional office for Eastern Africa and Agricycle Global Inc. agreed to work together in nurturing youth groups in Kenya, and refugees and host communities in Uganda in the development of fruit and vegetable value-chains. Areas of collaboration include capacity development for youth on fruit and vegetable value chain development; od safety standards and fruit and vegetable-related agribusiness; documentation of youth empowerment business models; transfer of knowledge and skills for adoption of technologies and equipment for fruit drying; and publishing of best practices. Through this agreement, targeted beneficiaries will improve their access to market, as well as technology, such as solar driers/ dehydrators, and gain capacity development trainings on quality control of their produce. These interventions will eventually help them to improve their incomes and livelihoods, contributing to decent rural (youth) employment and reduction of food waste and loss. Women and youth have been historically excluded/ discriminated against in the agricultural value-chain even though they have an important role to play in the agri-food systems Signing the agreement, David Phiri, FAO Subregional Coordinator for Eastern Africa and Representative to the African Union and United Nations Economic Commission for Africa, noted that youth employment in the food and agriculture sector in the subregion was a key area of focus given that youth constituted a large segment of the population. “In order to address issues such as rural exodus, unemployment, and food and nutrition insecurity, it is critical to engage and invest in...

Keeping smugglers at bay

Save for shrubs and the squeal of small creatures, Malawi’s border with Mozambique in Nsanje District is as open as the skies. This is also the case in Mchinji District where, apart from Malawi Revenue Authority (MRA) offices that give the place a semblance of an official border, what passes for a borderline is replete with undesignated routes that are at the behest of goods smugglers. Fortunately, goings-on in border districts have caught the attention of President Lazarus Chakwera who, in December last year, vowed to do something about the situation. On December 7 2021, the President and his Zambian counterpart Hakainde Hichilema agreed to tighten the borders and put in place sound monitoring mechanisms as one way of strengthening trade ties and economically empowering people of the two countries. Chakwera described Malawi and Zambia as inseparable sisters, tied at the hip by history, culture, geography, economics, values and language. He boasted that no two nations on earth could boast of ties closer to those which exist between Malawi and Zambia. “My brother president and I share a common conviction that the development and progress of Malawi and Zambia are inextricably linked. That is why we have agreed to harmonise and simplify border controls by jointly constructing the One Stop Border Post at Mchinji/Mwami border, which my brother President and I will commission together next year [2022],” Chakwera said. Chakwera, who is also Chairperson of the Southern African Development Community also took advantage of Hichilema’s visit to brief him on...

EAC states adopt AfCFTA Category A trade list offer

The EAC is now among the state parties meeting the minimum requirements for Category A to start trading on a provisional basis under AfCFTA, as the zone is negotiating the AfCFTA rollout as a bloc. A ministerial council meeting on trade, industry, finance and investment in Arusha on Friday directed the EAC Secretariat to submit the Category A list to the AfCFTA Secretariat as soon as possible, while also asking the EAC Secretariat to convene an experts meeting by 15th April to consider categories B and C of the EAC tariff offer. The offers will now be subjected to verification by the AfCFTA Secretariat in the Ghanaian capital of Accra, with AfCFTA having so far verified 29 tariff offers to ensure that they meet the protocol framework modalities, with the EAC listing the number to 34 countries once the EAC offers are verified. Verification of the tariff offers will ensure that AfCFTA member states meeting the minimum requirements start trading under the Continental Free Trade Area Agreement, officials said. Dr Kevit Desai, Kenya’s permanent secretary for EAC Affairs, said at a media briefing after chairing the ministerial council meeting that consultations will start on the determination of the maximum rate for the Common External Tariff (CET) for various products, in the wake of the EAC offer. The partner states need to consult stakeholders on the analysis undertaken by the EAC Secretariat on the proposed maximum CET rates and submit comments on the proposed maximum CET rates of 30 per cent,...

A ‘blossoming partnership’: digital corridor drives Kenyan flower exports to UK

International trade, however, has a huge part to play in keeping the UK’s florists stocked with fresh cut flowers. The second top import market to the UK for flowers is Kenya, which supplies just over 8 percent of British-sold flowers, or 10,000 tons, worth not far off £67 million. Cut flowers account for 25% of all Kenyan imports to the UK. The Institute of Export & International Trade has been working with donor organization TradeMark Africa (TMA) to implement a ‘digital trade corridor’ between the UK and Kenya to help simplify trade between the two nations. The initiative, called the ‘UK-Kenya Trade Logistics Information Pipeline’ (TLIP), aims to eliminate documentation and introduce better visibility in the supply chains flowing between the UK and Kenya. This initiative builds upon on the Kenya-UK Economic Partnership Agreement, which was signed in December 2020. TLIP's system uses blockchain technology to link all those in a supply chain together, enabling faster logistics and easier trading. Marco Forgione, director general of the IOE&IT, said: “This Valentine’s Day when you were giving your loved one a beautiful bouquet of flowers, consider the journey they have taken to put that smile on their face. Around nine different organizations are involved with the transportation of flowers from Kenya before they enter your home and all of these actions in the supply chain require documentation to move the goods along on their journey. “The trade corridor we are creating will provide more transparency and enable all actors to view the...

EAC: EABC, South Sudan discuss creating a single custom territory

In 2020, South Sudan’s exports summed up to US$87 million to the EAC member states, while imports amounted to US$573 million They (traders) explained that the delayed implementation of the EAC Single Customs Territory by South Sudan causes delays in cargo clearance at the border EABC urged the EAC secretariat to bring together more resources to support South Sudan to finalise the construction of a One-Stop Border Post Trade in East Africa The East African Business Council is persuading the Republic of South Sudan to fully implement the East African Community’s Single Customs Territory to accelerate Intra-EAC trade. Traders, transporters and clearing and forwarding agents spoke at the EABC-TMA Public-Private Dialogue at the Elegu/Nimule One-Stop Border Post. They explained that the delayed implementation of the EAC Single Customs Territory by South Sudan causes delays in cargo clearance at the border. The traders and transporters noted that, at times, trucks await clearance up to two days in the parking lot. South Sudan joined the East African community joined the EAC in April 2016, after being the youngest nation to gain independence on July 9, 2011. In 2020, South Sudan’s exports summed up to US$87 million to the EAC member states, while imports amounted to US$573 million. In contrast to the year 2016, the exports and imports to the same stood at US$2.6 million and US$400 million respectively. According to the International Trade Center, South Sudan exported US$86 million and imported US$357 million from Uganda in 2020. The East Africa Business Trade Council urged...

S.Sudan urged to fully embrace Single Customs Territory

Summary South Sudan is second after Uganda on the use of Kenya's Port of Mombasa, accounting for 9.9 per cent of total transit volumes. South Sudan joined the East African Community in April 2016. The East African Business Council (EABC) has called on South Sudan to fully implement the East African Community Single Customs Territory to spur intra-EAC trade. The Single Customs Territory, which Kenya and other member states have adopted, is aimed at facilitating faster clearance and improvement in cargo movement along the two corridors serving the region. These are the  1,700 kilometre-long Northern Corridor that runs between Kenya, Uganda Rwanda, Burundi and Eastern D.R. Congo, with an exit and entry point at the Port of Mombasa. The 1,300 kilometre long Central Corridor serves Tanzania, Rwanda, Burundi, Uganda and Eastern D.R. Congo, with an exit and entry point at the port of Dar-es- Salaam. The two corridors facilitate export and import activities within the EAC region on a combination of rail, road and lake transportation networks. South Sudan is second after Uganda on the use of Kenya's Port of Mombasa , accounting for 9.9 per cent of total transit volumes. Uganda accounts for the lion share of 83.2 per cent while DR Congo, Tanzania and Rwanda account for 7.2 per cent, 3.2 per cent and 2.4 per cent, respectively. Among benefits of the SCT is the assessment and payment of duties at the destination Partner State while goods are still at the first point of entry. During an EABC -Trade...

Govt equips private sector to tap AfCFTA opportunities

THE government has challenged the private sector to produce high quality goods at low costs to compete in the African Continental Free Trade Area (AfCFTA) market. Deputy Minister for Investment, Industry and Trade, Mr Exaud Kigahe made the remarks on Monday at the opening of a three-day workshop on a capacity building programme for the private sector in Dar es Salaam to grasp AfCFTA opportunities. “This market is likely to create trade competition, so I urge you to ensure that we continue to produce high quality products that will be able to enter other African countries and encourage market competition,” he said. The workshop was organised by TradeMark Africa. He said the government is committed to creating a friendly environment by ensuring the availability of reliable and affordable electricity which is fundamental in producing goods at low cost. He also said the government is in the process of conducting a comprehensive analysis of the AfCFTA agreement on the country’s economy and preparing the national AfCFTA charter. “Recognizing the importance of the AfCFTA agreement, the government has engaged various experts to obtain information and stakeholders views on the implementation of the agreement,” said Kigahe. He added, “The strategy will help us to organize ourselves as a country to ensure that we take full advantage of the AfCFTA agreement opportunities,” He said the AfCFTA market was an opportunity that could be used by Tanzanians to attract investors who would produce their products and sell them on the local market and the AfCFTA...