The Cabinet Secretary for ICT, Innovation and Youth Affairs, Joe Mucheru, has urged public institutions to embrace digitalization and leverage innovation to improve service delivery.  Citing innovation as the new frontier of creating value and solutions to present challenges, CS Mucheru noted that the digital transformation journey that the Government has embarked on will support enhance service delivery in government institutions. The implementation will be guided by 2019 Digital Economy Blueprint to achieve the Kenya Vision 2030. According to the ICT CS, digitalization of government services is also aimed at driving the country’s knowledge economy, supported by laws such as the Data Protection Act 2019 which guides the use and management of electronic data and Business Laws (Amendment) Act No. 1 of 2020 which seeks to enhance the ease of doing business in Kenya. Speaking at the Konza Technopolis – Intel Corporation Forum Themed Accelerating Government Digitalization or the realization of Vision 2030 held in Mombasa, the CS lauded the institutions that have embarked on the digitalization process adding that they will be competitive regarding service delivery to the public. “I am glad that you took part to create this dialogue because it is very critical. As a country we need to embrace technology to move to the next level and I think it is great that many corporations are determined to move forward,” said CS Mucheru, adding that organizations must keep up with the trends on digital markets to drive the economy. He said: “I want to challenge organizations...

For a majority of Kenyan small and medium enterprises (SMEs) or startups, selling products by wholesale and retail is a core business model. As such, the market appears to be at times flooded with so many products that young companies without huge budgets for marketing die as soon as they get started. However, this situation would be different if most firms instead pursued other models, such as business process outsourcing (BPO), according to a paper published by Viffa Consult Ltd. BPO is the process of getting a third-party service provider to perform specific tasks that you would otherwise have performed in-house as a business. The idea comes from the manufacturing industry where manufacturers would hire other firms to do procurement, branding and distribution. A BPO can be in the same locality or elsewhere depending on the services it offers. Examples of BPO include call centres, human resources, back office processing and engineering design, data transcription, accounting and payroll outsourcing, software development and creative services such as animation. The global market for outsourced services as of 2019 was $92.5 billion (Sh10.4 trillion) with the US generating the lion’s share of the revenue ($62 billion). “India is among the leading countries for offshore business services due to solid investment case, supportive policy and legal environment and abudant skilled labour,” says the paper. Business longevity In a country where the business environment is not very conducive for SMEs, Viffa Consult suggests in the research paper titled BPO Market Opportunity for Kenyan SMEs: A case of...

Afreximbank in partnership with the AfCFTA Secretariat have launched the Pan-African Payment and Settlement System (PAPSS). The launch of PAPPS aims to boost intra-African trade by transforming and facilitating payment, clearing and settlement for cross-border trade across Africa. The platform is also expected to save Africa more than Ksh. 567 billion (USD 5 billion) annually in payment transaction costs, underpinning the operationalization of the AfCFTA. According to Afreximbank, PAPSS provides the solution to the disconnected and fragmented nature of payment and settlement systems that have long impeded intra-African trade. Prior to PAPSS, over 80% of African cross-border payment transactions originating from African banks had to be routed offshore for clearing and settlement using international banking relationships. That process posed multiple challenges including payment delays to operational inefficiencies and compliance concerns for the disparate regional payment systems. PAPSS, which has been successfully piloted in the six countries of the West African Monetary Zone, delivers among others, the following benefits. Reducing the cost, duration and time variability of cross-border payments across Africa. Decreasing the liquidity requirements of commercial banks for cross-border payments. Strengthening oversight of cross-border payment systems by central banks. Speaking at the launch event, Ghanian President Nana Akufo-Addo complimented Afreximbank and AfCFTA Secretariat for the establishment of the payment system saying, “This launch is a result of many months of hard work, resolve and commitment towards achieving set objectives for the growth of the continent in trade. All Central Banks in Africa must now join up and ensure seamless transfer of...

A truck pile-up has started to build along the Kenyan borders with Uganda following Kampala’s call for mandatory testing of all drivers at border crossing points, even as transporters threatened to suspend haulage of cargo through the Northern Corridor if the issues is not addressed. Uganda directed mandatory Covid-19 testing of all incoming travellers, including truck drivers, on December 20 last year. As a result, long queues have been reported all the way from Amagoro in Kenya, a few kilometres from the Malaba border post, since January 1. “I did Covid-19 test at Inland Container Depot in Nairobi and I have a valid certificate which is still valid for seven days. Why am I forced to get tested again?” asked Mohammed Mahmud, a truck driver. The new directive by Uganda authorities proposed the review of the Regional Electronic Cargo and Drivers Tracking System (RECDTS), which allows Covid-19 testing after 14 days, to a shorter duration of 7 days, due to the high transmissibility of the Omicron variant, which has a shorter incubation period. Due to ongoing trade barriers, Kenya Transporters Association (KTA) has threatened to suspend hauling of cargo until the Ugandan government reconsiders its new directive. “We are urging Ugandan authorities to consider the new directive and drop the $30 charge per test, which is an additional cost since in the other East African Community (EAC) states, Covid-19 tests are carried out free of charge. We also want clarification of how frequently the test will be carried out and their duration,”...

Summary The $29 million Gulu Logistics Hub aims to lower transport costs and trade barriers faced by Ugandan traders who export goods to the two countries. The new facility will provide container and break-bulk, handling and storage facilities — including bonded and non-bonded warehouses — as well as provide space for stakeholders dealing with freight transport. Ugandan transporters who ply the Gulu-Juba route are optimistic that the hub will increase their profits due to significant reduction in the distance and time their trucks spend on the road. More than a decade ago, Gulu was a no-go area, thanks to the Joseph Kony-led Lord’s Resistance Army rebels, who were fighting the government then. Fast forward to 2022 and the town has risen from the rubble, emerging as a key business point between Uganda and South Sudan. Its latest logistics hub, which will link Uganda, Kenya, South Sudan and the Democratic Republic of Congo, is a testament to its changing fortunes. The $29 million Gulu Logistics Hub aims to lower transport costs and trade barriers faced by Ugandan traders who export goods to the two countries. The new facility will provide container and break-bulk, handling and storage facilities — including bonded and non-bonded warehouses — as well as provide space for stakeholders dealing with freight transport. Ugandan transporters who ply the Gulu-Juba route are optimistic that the hub will increase their profits due to significant reduction in the distance and time their trucks spend on the road. “This logistics hub will be...

The beneficiaries so far include individual commitments for 1,120 families and commitments for 2,000 families by companies. Overall, more than 700 people and companies had participated in the challenge as of December 29. A solar home system under this plan consists of a minimum of three lights, one radio, one torch lamp, and a USB plug to charge mobile phones using solar [panel] energy. The #canachallenge is a campaign through which an organisation or individual can make a voluntary pledge and contribution to "Light up a Rwandan Family" that is far away from the national grid coverage area and cannot access electricity. BRD has been inviting people to join this challenge, indicating that with only Rwf15,000 contribution, one can help light up a family in need. For every such contribution, BRD tops up the remaining Rwf100,000 to fully finance the cost of a Solar Home System for one family - totalling Rwaf115,000. On the financing aspect, Uwera pointed out that BRD will provide in total a grant of Rwf1 billion through the Renewable Energy Fund Project - a government project funded by the World Bank and implemented by BRD towards lighting up an initial 10,000 families in Ubudehe category 1 across the country. Some prominent individuals who supported the challenge include Rolande Pryce, the World Bank Group Country Manager for Rwanda, Yvonne Manzi Makolo, Chief Executive Officer of RwandAir, Maxwell Gomera, UNDP Rwanda country representative, Patience Mutesi Gatera, Rwanda Country Director, TradeMark Africa, and Teddy Mugabo, Chief Executive Officer, Rwanda...

IN the current fiscal year’s national budget, the Government has allocated 500bn/- for ports’ projects. Out of the total amount, 210bn/- was meant for purchasing new equipment. During her recent tour to the Dar es Salaam Port, President Samia Suluhu Hassan also promised to add 290bn/- more for purchasing more new equipment. The government’s move is the continuation of its efforts in line with ongoing projects in different country’s ports to increase their capacity. At the Dar es Salaam Port, for instance, the Tanzania Ports Authority (TPA) is implementing the Dar es Salaam Maritime Gateway Programme (DMGP). This is the major project that aims at improving the effectiveness and efficiency of the port and supporting the economic development of the country and the land-linked countries. While expansion projects and purchasing of modern equipment are ongoing, the government has also been eager to attract businesses and investment which in turn   increases imports and exports through the country’s ports. Since President Samia took over the country’s administration, attracting businesses and investment is among her top priorities. Her leadership has been described as opened new chapter    in business and investment with analysts saying they should praise her for setting a new record. "The fear to invest in the country is almost gone and we have seen various investors visiting her at the State House for guidance and way forward. "This shows the President continues to build investor confidence,” an economist-cum-investment banker, Dr Hildebrand Shayo, said when commented on 100 days of President Samia in...

Summary The Port of Mombasa recorded marginal growth in cargo volumes last year as business steadily recovers following the Covid-19 pandemic. During the period, the port registered 34.54 million tonnes against 34.12 million tonnes handled in the same period in 2020, representing a growth of 1.2 percent. The Port of Mombasa recorded marginal growth in cargo volumes last year as business steadily recovers following the Covid-19 pandemic. During the period, the port registered 34.54 million tonnes against 34.12 million tonnes handled in the same period in 2020, representing a growth of 1.2 percent. Container traffic recorded 1,435,565 twenty equivalent units (TEUs) compared to 1,359,579 TEUs handled in the same period in 2020, representing an increase of 75,986 TEUs or 5.6 percent. Kenya Ports Authority (KPA) acting managing director John Mwangemi said the positive performance was mainly attributed to a continued recovery from the Covid-19 pandemic period which in 2020 severely impacted global economies. “The pandemic had disrupted the global supply chain reducing international trade that affected many ports in the world. Similarly, the performance is attributable to improved resource planning and efficiency of business processes,” said Mr Mwangemi. Transshipment traffic was 220,489 TEUs in 2021 against 175,827 TEUs in 2020, representing a growth of 25.4 percent. “Transshipment has proved to be a lucrative and sensitive business that all ports strive to tap into. Lamu port has also contributed greatly where the facility has so far handled nine vessels cumulatively and a total of 1,619 TEUs since operationalisation in May last...

The Ethiopia-Djibouti railway, which runs from Addis Ababa to the port in Djibouti City, recorded $US 86.13m in revenue in 2021, a 37.5% increase on 2020. The line was used by 449 passenger trains and 1469 freight trains over the year, transporting 77,357 TEUs. The company also improved the efficiency of operation, with the time to process a freight train at the Port of Doraleh in Djibouti reduced from three days to one-and-a-half days, while the loading and unloading time at the dry port of Modjo was reduced from 12 to seven hours. Safety improved with no accidents recorded in 2021. Ethiopia’s Somali Region, the largest region through which the Yaji Railway passes, also implemented the Regulation on Railway Safety Protection on August 25 2021. The railway carried 96 special trains of fertilizer and 13 special trains of wheat into Ethiopia, with the line targeting new markets such as cooking oil, small cars and chilled fruits and vegetables. To improve the localisation of operation, 34 Ethiopian locomotive drivers were awarded their certificates on May 4 2021, followed by 15 shunter drivers on July 29. The 752km electrified line opened in October 2016, with the $US 3.4bn project 70% financed by China’s Exim Bank and built by China Railway Group and China Civil Engineering Construction. Read original article

Summary The AfCFTA is a flagship project of the African Union (AU) Agenda 2063, Africa’s long-term development strategy for transforming the continent into a global powerhouse of the future. The African Continental Free Trade Area is the world’s largest free trade area, and the largest trade organisation since the establishment of the World Trade Organisation, bringing together 54 countries of the African Union and eight regional economic communities to create a single market. It has a population of about 1.3 billion people and a combined GDP of about $3.4 trillion. In addition to being a free trade area, the AfCFTA is a flagship project of the African Union (AU) Agenda 2063, Africa’s long-term development strategy for transforming the continent into a global powerhouse of the future. The agreement establishing the AfCFTA was signed in Kigali, Rwanda, on March 21, 2018 by 44 AU member states. Ten more countries have since signed the pact. The AfCFTA Agreement entered into force on May 30, 2019, 30 days after the deposit of the 22nd instrument of ratification, as specified in its Article 23. Trading under the AfCFTA started on January 1, 2021. Opportunities The AfCFTA market comes with many opportunities, some of which are highlight in this article. Consumer welfare gains: Consumers will have limitless choice of quality products at an affordable price. This is due to the fact that AfCFTA aims at eliminating import duties on products that are produced within Africa and thus satisfy the rules of origin. It also defines standards...