Archives: News

Why it’s tough selling farm produce online

Agriculture’s online penetration is proving hard. This is despite the sector being Kenya’s backbone contributing over 30 per cent to the economy and employing at least 60 per cent of the informal workers. A new report details the challenges farmers face to sell their products online on platforms that are not as friendly to perishable products. The report titled Platform Livelihoods: The quality of Kenyan youth’s digital experiences in logistics, e-commerce, farming, and the creative sectors by Qhala and Caribou Digital supported by Mastercard Foundation opines that the most affected are small scale farmers. Digital market places like MkulimaYoung and Farmers Market, and social agriculture where one publicises their produce on social media as frequently as possible to increase visibility are some of the ways farmers tap into the online space. The report documents that the majority of farmers use social agriculture more. While digital agriculture presented itself as the alternative to traditional marketing that is controlled by brokers, it is still a tall order to break through on the online space. Farmers who use the formal marketplaces noted that these (online) platforms are not well known hence slows down sales. It, therefore, causes farmers to go informal by delving into social media. Largely unknown marketplaces “The majority of the farmers who use these platforms had the impression that agriculture platforms are not widely known by either farmers or customers, hence their slow sales. Additionally, these marketplaces are known for specific types of produce, some of which get more traction...

TMA and AfCFTA join forces to unlock Africa’s trade potential

Lomé, 17th September 2021: Today, a Memorandum of Understanding (MoU) was signed between the African Continental Free Trade Area (AfCFTA) Secretariat and TradeMark Africa (TMA), aimed at promoting cooperation and collaboration between the two organisations in their common goal of supporting trade in Africa. The MoU was signed in Lomé, Togo, by His Excellency Wamkele Mene, Secretary-General of the AfCFTA, and Frank Matsaert, Chief Executive Officer at TMA. The AfCFTA and TMA are united in their shared goal of increasing prosperity in Africa through the liberalisation of trade on the continent. This MoU represents the next logical step for the two organisations as they work to increase the ease and standards of trade across Africa; support engagement with the continent’s private sector on trade and economic development issues; digitisation of key trade processes at a national level, followed by linking these at a regional level and policies to promote the use of e-commerce across the continent; and develop regional value chains and investment while developing Africa’s cross-border trade with a particular focus on women traders, youth and MSMEs. The Agreement will also allow the two organisations to share costs and support each other in logistical challenges as they seek to implement programmes to develop trade across Africa. His Excellency Wamkele Mene, Secretary-General of the AfCFTA, said: “The MoU will further allow the AfCFTA Secretariat working with partners including TMA to facilitate State Parties to carry out the necessary reforms needed to fully implement the AfCFTA, unlocking the continent’s trade potential...

East Africa Tourism Platform launches ‘Tembea Nyumbani’

East Africa Tourism Platform (EATP) Headquarters, Kigali, Rwanda. September 8, 2021. The East Africa Tourism Platform has launched a three-month campaign dubbed "Tembea Nyumbani", in the East African Community (EAC) Partner States.Tembea Nyumbani, Swahili for Visit Home, is a call to the citizens of the countries in the East African Community to visit each other's countries — in an effort to promote domestic and regional tourism business in Burundi, Kenya, Rwanda, Tanzania, and Uganda. In the spirit of East African unity, the tourism body is drawing wisdom from the popular adage that as an East African, any East African country you travel to is a home away from home. Undertaken in partnership with stakeholders, the campaign will promote different tourist packages within the region. The campaign aims to spur tourism business within the region by showcasing the many hidden gems as well as affordable and exciting holiday packages that can be explored in what the world has come to know as Africa's magical destinations. It is expected that an increase in interest to travel within the region will revive the tourism industry, which is a lifeline for millions of people. Before the Covid-19 pandemic, the tourism sector had become one of the most lucrative, but the pandemic brought it to its knees. As uptake of vaccines increases and recovery efforts start, many nations are cooperating to revive tourism. Before Covid-19, tourism contributed to the Gross Domestic Product (GDP) of EAC Partner States by an average of 9.5% in 2019. It...

Malawi eyes UK market under new scheme

Malawi is vying in the category of 70 developing nations earmarked for preferential trade treatment through the United Kingdom (UK)’s new Generalised Scheme of Preferences (GSP). Following Brexit, an interim framework has guided trade between the UK and developing countries since January 1 2021. But a UK GSP Consultations Report by Chancellor college-based economist Ronald Mangani shows that moving beyond the interim arrangement, the UK is preparing its own more permanent trading framework with developing countries including Malawi. The overall key policy proposals include maintaining zero-tariff on UK imports, simplifying rules of origin requirements, amending the approach to goods graduation and amending the conditions and reporting requirements that enable partners to benefit from more generous provisions through the enhanced framework. “From the UK’s perspective, more access to imports from developing countries will increase choice for UK consumers and industries. The current interim scheme implies that UK importers pay lower (often zero) tariffs on goods from 70 developing countries,” reads the report. Lately, the Ministry of Trade through the Trademark East Africa Malawi Country Programme has been consulting the local industry and creating awareness on how to leverage on the available UK market. The government feels the schemes are fundamental broadening market base for local products. Deputy Director responsible for Foreign Trade in the Ministry of Trade Mufa Munthali said in an interview recently that the government considers the proposal by the UK as a tremendous opportunity for Malawi. “This provides a window of opportunity for Malawi to understand what the...

Tanzania, Burundi join EAC member states in AfCFTA deal

In Summary Burundi ratified the AfCFTA on June 17, while Tanzania endorsed on September 9. Other EAC Partner States that have ratified the agreement are Kenya, Rwanda and Uganda. East African Community Secretary General Peter Mathuki has hailed Burundi and Tanzania for ratifying the African Continental Free Trade Area Agreement (AfCFTA). Burundi ratified the AfCFTA on June 17,  while Tanzania endorsed on September 9. So far, 42 countries have ratified the AfCFTA that seeks to boost intra-African trade. Mathuki said that the AfCFTA would allow East Africans to access a large continental market and increase EAC’s exports to African countries outside the bloc. “It will also improve movement of people across Africa, advance trade and development aspirations and ultimately put the region in a better position to trade more with the rest of the world,” said Mathuki. He further disclosed that the EAC had initiated a number of steps towards the implementation of the AfCFTA Agreement, adding that the ratification by Burundi and Tanzania would expedite the implementation of the agreement. Other EAC Partner States that have ratified the agreement are Kenya, Rwanda and Uganda. South Sudan has signed the AfCFTA but is yet to ratify it. Mathuki said that the bloc had almost finalised the submission of its tariff offers, which conform to the agreed modalities in addition to the schedules of liberalization of trade in services. “We have also prepared a draft strategy for the implementation of the Agreement, which takes into account the need for capacity building....

Regional tourism body mulls new campaign to revive Covid-19 hit sector

The Kigali-based East Africa Tourism Platform (EATP) will on Wednesday, September 15, launch a three-month campaign dubbed "Tembea Nyumbani", in four East African Community (EAC) partner states – Burundi, Kenya, Rwanda, Tanzania, and Uganda, in a new bid to spur regional tourism. Tembea Nyumbani, Swahili for Visit Home, is a call to EAC citizens to visit each other's countries — in an effort to promote domestic and regional tourism business in the four countries. Yves Ngenzi, the EATP Coordinator, on Monday told The New Times that the campaign is “long overdue” and it comes to try address the challenges faced due to the impact of the pandemic on international travel. Ngenzi said: “In a big way, ours are tourism-dependent countries. We are, therefore, compelled to find new and creative solutions to this unpredictable crisis. And since international travellers are unable to visit en-masse as they used before the pandemic, we are focusing on domestic and or regional tourists.” Undertaken in partnership with stakeholders, the campaign will promote different tourist packages within the region. It aims to spur tourism business in the region by showcasing the “many hidden gems” as well as affordable and exciting holiday packages that can be explored in what “the world has come to know as Africa’s magical destinations.” According to the EATP, it is expected that an increase in interest to travel within the region will revive the tourism industry which is a lifeline for millions of people. Jeannette Rugero Murekatete, a Rwandan tour guide and...

AfDB grants $50 million for women projects in EAC

The African Development Bank (AfDB) has earmarked $50 million for women business projects in the eastern Africa region. This was revealed this week by the regional director of the continental bank during his visit to the East African Community (EAC) and affiliated bodies in Arusha. Cheptoo Kipronoh who heads AfDB operations in Tanzania, Uganda, Kenya, Rwanda, South Sudan, Ethiopia, Eritrea and Seychelles said this was part of a wider support to the region. “Some $50 million have been earmarked to support women in business,” he said during his visit to the East African Business Council (EABC) head offices. The apex body of private sector associations based here has a full desk coordinating women-in-business programmes within the region. Mr Kipronoh added that the continental bank had also granted $900 000 to the EAC secretariat for the fight against Covid-19 epidemic. The Abidjan-based AfDB is the main financier of a host of infrastructure development projects in the EAC bloc. Within Tanzania, these include the 110-kilometre Arusha-Namanga road (which extends to Athi River in Kenya), 41km Arusha By-Pass and 14km Arusha Tengeru road. Plans are afoot for the proposed 110km Arusha-Holili highway which would be widened to a four lane road to serve the increasing traffic. Kipronoh commended Tanzania for ratifying the African Continental Free Trade Area (AfCFTA) agreement and the EAC Protocol on Sanitary and Phytosanitary measures. “These shall boost intra-African trade, food safety and agribusiness in the EAC bloc,” he said. He further elaborated that AfCFTA’s 1.2-billion market offers a pathway...

KAM bids to tap women players in industrialisation

Kenya Association of Manufacturers (KAM) has rolled out its county-focused drive bid to increase women participation in industry, through its Women in Manufacturing (WIM) programme. The WIM North Rift Conference and Expo, held in Eldoret, marks the beginning of a nationwide series of events, geared towards increasing women’s participation in the manufacturing sector. Industrialisation, Trade and Enterprise Development Chief Administrative Secretary David Osiany says women are the future of the manufacturing sector. “Our nation’s manufacturing sector is in a state of reinvention, as such empowering women will be critical to the future of the industry,” said Osiany who opened the three-day expo in Eldoret. “It is without a doubt that women are an emerging market force, and must be fully supported, to actively participate in our country’s development, “added the CAS. He said that the government, we remain committed to advancing women economic empowerment, for prosperity. Osiany said the government has developed the National Women Economic Empowerment Strategy, which seeks to bring together regional, national and international stakeholders, to sensitise and build capacity amongst women for their economic empowerment. He cited the huge potential the East African Community manufacturing market has with a population of 187 million. “There is a huge gap which needs to be filled by our manufacturers. This can only be achieved through partnerships,” said Osiany. Uasin Gishu Deputy Governor Daniel Chemno, noted the importance of an enabling environment in the counties. “To enjoy the full benefits of devolution, we must support our businesses to grow. This...

While more women are starting and owning companies, financial inclusion remains low

Summary A study by Forbes further indicates that 96 percent of women have primary or shared responsibility for their families’ financial decisions. In Kenya, women make about 52 percent of the country’s population and about 30 percent of registered businesses are women-owned but their financial inclusion remains slim. Closing the gender inequality gap remains an economic challenge and necessity across the world. A lot of effort is being put into the gender agenda by governments, private sector and other institutions to narrow this disparity. In Africa, women are applying themselves in every field to financially support their families and communities. Research has shown that one in four women is starting or managing a business, making Africa the continent with the highest percentage of women entrepreneurs in the world. A study by Forbes further indicates that 96 percent of women have primary or shared responsibility for their families’ financial decisions, and 70-80 percent of all consumer purchases are driven by women, through buying power and influence. Even more importantly, women own and lead roughly 30 percent of all SMEs in the world, and SMEs account for 70 percent of employment worldwide. In emerging markets, these businesses contribute up to 45 percent of total employment and 33 percent of GDP. Although one third of registered SMEs globally are estimated to have been created by women, with close to 100 million women running established businesses, the gap between women and men remains significant. In Kenya, women make about 52 percent of the country’s...

Kenya, Uganda push to strengthen trade

In Summary A high-powered delegation from Uganda of three Ministers; Trade, Agriculture, Finance and Investment attended the Mombasa expo. Kenya's Trade CS Betty Maina and her Ugandan counterpart Francis Mwebesa explored on available opportunities for trade in both nations. There are great opportunities for Kenya and Uganda traders to invest more in agribusiness, logistics and other related business support services within the two nations,experts have said. For years, Kenyan exports to Uganda have been manufactured goods, while imports into Kenya from Uganda have been agro-products. During an agribusiness expo in Mombasa this week, Kenya's industrialisation and trade  CS Betty Maina and her Ugandan counterpart Francis Mwebesa, said both nations have an opportunity to diversify their business. The two-day expo was themed, ‘Unlocking the full potential of Agri-business to enhance export performance for national development.’ The expo brought together over 50 exhibitors from the two countries and other parts of the world, focusing on agriculture and food security. CS Maina said the cordial relation between Kenya and Uganda has enabled the business communities in both countries to trend deep into each other's territories in search of opportunities. “The greatest testimony to this is the thriving air, road and rail transport between our two countries. I applaud the direct flights between Mombasa city and Entebbe and from the available data, I can comfortably indicate that there is greater potential for more flights – facilitating faster movement of Kenyan and Ugandan entrepreneurs and investors,” she said. Uganda is the biggest users of the Port of Mombasa among landlocked...