Come July, exporters in East Africa will pay more, when a new requirement on weighing and verifying containers is implemented globally. The International Maritime Organisation (IMO) is making verification of weights a condition for loading packed export containers aboard ships to conform to amended changes to Safety of Life at Sea (SOLAS) convention. Safety is a driver of change as each year over 135 million containers enter the global supply chain, but many lack accurate weight estimates, contributing to costly shipping accidents. The Kenya Maritime Authority (KMA) said SOLAS changes aim to curb under-declaring weight of cargo that can lead to shipwrecks, destruction of goods and pollution if hazardous cargo spills into the sea. The global rule for shippers to provide verified gross mass (VGM) for every packed container complete with correct documentation targeting enhanced safety is expected to increase cost of operations with consumers bearing the brunt. A container without VGM will not be loaded on a ship from July 1. A shipper sending goods will be responsible for proper verified weighing of packed container and documentation for cargo to be loaded on a vessel. Any container exceeding maximum gross mass will not be loaded to a ship. KMA acting director-general Cosmas Cherop said a container leaving a port will have a document signed either electronically or in hard copy by the shipper on bill of lading. Shippers will make the information available in advance to the port and the shipping line. The first method of obtaining VGM entails...

Regional inflation rates could spike in the medium term following the sustained rebound of the price of crude oil in the international market, where it has risen from a low of $29 early this year to the current $47 per barrel. Rwanda recorded a rise in its April inflation rate to 4.6 per cent, up from 4.1 per cent a month earlier, which it blamed on rising energy and transport costs. Kenya, Tanzania and Uganda have also recorded an increase in fuel prices in the past month. The three countries saw their inflation drop in April, with Kenya’s year-on-year inflation dropping to 5.27 per cent in April, from 6.45 per cent a month earlier. Uganda’s inflation dropped to 5.1 per cent in April from 6.2 per cent in March, while Tanzania saw its April inflation decrease to 5.1 per cent from 5.4 per cent a month earlier. Rwanda’s central bank (BNR) said the country’s inflation levels experienced pressure as a result of increased transport prices after the recovery in global oil prices. Rwanda’s monthly inflation rate rose by 0.8 per cent in April, while its food prices rose by 5.6 per cent. The annual inflation rate for housing, water, electricity, gas and other fuels increased by 3.9 per cent while that for transport rose by 7.6 per cent. Last week, Rwanda’s Ministry of Trade and Industry announced an increase in the petrol pump price from Rwf826 ($1.05) to Rwf860 ($1.09) per litre, making it the highest in the region. “The...

Innovators and entrepreneurs in the logistics and transport sector across the East African Community have a chance to acquire part of $16 million grant-based fund under the second phase of the logistics Innovation for Trade (LIFT) Challenge Fund. The TradeMark Africa initiative will provide grants ranging from $150,000 to $1 million to winning proposals from innovators across the world, whose project ideas will be implemented in East Africa. The organisation has already called for entries from qualifying sector player. The LIFT initiative is managed by Nathan Associates through a fund management team based in Nairobi, and is funded by the UK Department for International Development (DFID). It seeks to trigger and introduce innovative approaches to tackling freight and transport costs in the East African Community (EAC). TradeMark Africa chief executive Officer Frank Matsaert urged innovators to apply for funding, saying the challenge had enabled stakeholders to test new ideas that should reduce the cost and transport time in the EAC. "It is our hope that the entrepreneurs and innovators of the East African Community in partnership with their counterparts internationally will drive forward development through the adoption or introduction of 'best practice' technologies in the transport and logistics sector, enabling local businesses to compete favourably in the increasingly global economy," said Matsaert. Businesses in the transport and logistics sector, or those that provide services to actors within it, are now being invited to submit their innovative concepts to LIFT for possible funding. The LIFT Challenge Fund is open to businesses...

Proper investments will also be used as a key driver of structural transformation through creating backward and forward linkages between agriculture production, industrialization and growth in services trade. The call was made by Ambassador Nathan Irumba from SEATIN Uganda, ahead of the regional investment climate meeting that takes place this Thursday and Friday at Lake Victoria hotel in Entebbe. The meeting is organized by SEATINI Uganda in partnership with Diakonia under the theme "Making investment work for the people of East African Community (EAC)". It's aimed at kick starting efforts towards "Promoting Investment policies and Agreements that support sustainable development and improved livelihoods within the region". The multi-stakeholder meeting will involve adoption of a multi-disciplinary approach to enhance stakeholders' awareness and capacity to understand and appreciate the imperative for investment policies and practices that are gender sensitive, protect human rights, promote environment sustainability and address the development needs of the EAC region. At the meeting, stakeholders will be able to appreciate the need for investment policies and practices that are gender sensitive; protect human rights; promote environment sustainability among others. Irumba added that investment can facilitate rural economic transformation through increased production and productivity as well as value addition. The East African Community region is characterized by mostly Foreign Direct Investments (FDIs) due to the fact that deliberate effort has been made by governments to attract FDIs into their countries. Currently, the region has registered world FDI flows of up to US$ 7 billion in 2014. Besides this, the EAC...

Innovators and entrepreneurs in the logistics and transport sector across the East African Community have a chance to acquire part of $16 million grant-based fund under the second phase of the logistics Innovation for Trade (LIFT) Challenge Fund. The TradeMark Africa initiative will provide grants ranging from $150,000 to $1 million to winning proposals from innovators across the world, whose project ideas will be implemented in East Africa. The organisation has already called for entries from qualifying sector player. The LIFT initiative is managed by Nathan Associates through a fund management team based in Nairobi, and is funded by the UK Department for International Development (DFID). It seeks to trigger and introduce innovative approaches to tackling freight and transport costs in the East African Community (EAC). TradeMark Africa chief executive Officer Frank Matsaert urged innovators to apply for funding, saying the challenge had enabled stakeholders to test new ideas that should reduce the cost and transport time in the EAC. “It is our hope that the entrepreneurs and innovators of the East African Community in partnership with their counterparts internationally will drive forward development through the adoption or introduction of ‘best practice’ technologies in the transport and logistics sector, enabling local businesses to compete favourably in the increasingly global economy,” said Matsaert. Businesses in the transport and logistics sector, or those that provide services to actors within it, are now being invited to submit their innovative concepts to LIFT for possible funding. The LIFT Challenge Fund is open to businesses...

Burundi, Kenya, Rwanda, Tanzania, and Uganda consider ending imports of used garments by 2019 in order to increase domestic production. Five East African countries may ban sales of second-hand clothing from abroad – a staple of many residents’ wardrobes – in order to bolster domestic garment making. Burundi, Kenya, Rwanda, Tanzania, and Uganda make up the East Africa Community (EAC), which directed its member countries to phase out textile and shoe imports by 2019. The heads of state of all five countries must agree before the limits could take effect. The proposal comes as many African countries seek to increase manufacturing and other industries to fuel economic growth. Charitable donations resold Second-hand clothing, mostly from Europe and North America, are a mainstay of local clothing markets in Africa, according to Dr. Andrew Brooks, author of Clothing Poverty: The Hidden World of Fast Fashion and Second-hand Clothes. In Uganda, for example, second-hand garments account for 81 percent of all clothing purchases, Brooks said. East Africa imported more than $150 million worth of second-hand clothing in 2015. Brooks noted that the used clothing is less expensive than locally produced garments or even inexpensive new imports. U.S., U.K. are largest exporters Most of the second-hand clothing sold around the world comes from charitable donations by European and North American residents who are unaware the clothing will be sold, Brooks said. The United States and the United Kingdom are by far the largest exporters of used clothing. The United States exported used garments worth more than...

A Sh1.6 billion ($16 million) grant-based fund that supports innovators and entrepreneurs working in the logistics and transport sector has opened entries for its second phase. Logistics Innovation for Trade (LIFT) Challenge Fund will provide grants ranging from Sh15 million ($150,000) to Sh100 million ($1,000,000) to winning proposals from innovators across the world, whose project ideas will be implemented in East Africa. LIFT is a TradeMark Africa initiative managed by Nathan Associates through a fund management team based in Nairobi. It is financially supported by the UK Department for International Development (DFID). It seeks to trigger and introduce innovative approaches to tackling freight and transport costs in the East African Community (EAC). TradeMark Africa CEO Frank Matsaert asked innovators to apply saying the challenge had enabled stakeholders to test new ideas that should reduce the cost and transport time in the EAC. “It is our hope that the entrepreneurs and innovators of the East African Community in partnership with their counterparts internationally will drive forward development through the adoption or introduction of ‘best practice’ technologies in the transport and logistics sector, enabling local businesses to compete favourably in the increasingly global economy,” said Mr Matsaert. LIFT Challenge Fund manager David Mitchell said the initiative’s impact to local entrepreneurs had been positive. “The Challenge Fund instruments fill a significant gap in the financial support needs of private businesses and the innovators that drive business activity to greater results and efficiencies,” said Mr Mitchell. Businesses in the transport and logistics sector, or...

Lack of skills and capacity among clearing and freight forwarding agents has been blamed for trade hurdles across the East African region, a new survey shows. The survey by TradeMark Africa (TMA) established that 477 clearing agents in the region had not been trained on improving trade logistics. This means that freight forwarding firms continue to incur costs such as fines imposed when clearing agents make errors on systems. The TMA survey conducted between 2011 and 2014 estimated that companies could save Sh38,500 annually if they employ trained clearing agents. TMA chief executive Frank Matsaert said business prosperity is achieved when there is a trade flow. “By training key people in the freight forwarding business, we are helping move goods quicker, save time and money and help the region develop,” he said. He said the survey was based on the premise that freight forwarders and clearing agents lacked necessary skills and capacity in clearing cargo at border points which resulted to an increase in cargo clearance costs and cargo release times. It was implemented by the Federation of East African Freight Forwarders Associations (FEAFFA) in conjunction with the East Africa Revenue Authorities (EARA). A total of 4,023 out of 4,500 freight forwarders and clearing agents were trained during the programme that sought to seal some skills gaps. The highest number of graduates in the programme were from Kenya, 1,665, while Tanzania had 1,218. Uganda, Rwanda and Burundi had 717; 299 and 164 graduates respectively. The survey projected an 84 per...

As traders rue missed opportunities relating to Uganda choosing Tanzania over Kenya on the pipeline route, other initiatives are going on to spur intra-trade in East African. Hopefully, the recent initiative by Kenya and Uganda supported by a number of global and regional bodies to create a common platform for facilitating cross-border trade in fish and fishery products, using Busia Border point will succeed. Many times, the cumbersome and punitive inspection protocols for animal, human and plant products across the countries, which have different requirements and standards, has made it difficult for intra trade between the two countries. Uganda has a bigger supply for fish products, which on many occasions go to waste, while traders in Kenya face a huge domestic demand for fish products for local and export consumption cannot access because of stringent standards and different trade regimes within the two countries. To ease the cross border trade in fish and fish products, that will allow increased intra trade within the two countries, and by extension, export to other countries, a number of activities and facilities are to be established at the Busia border point that will provide quick inspection of human, animal and plant products health both at and behind borders. The pilot is among the several initiatives being implemented by partners in the business community as a way of increasing the level of intra trade volumes in Africa including: the EAC has developed the regional sanitary and phytosanitary standards, (SPS) the Inspectors’ guide; standard Operating Procedures;...

The top African trade show - which was held from May 7 to 9 - at the Inkosi Albert Luthuli Convention Centre (Durban ICC), exploded with originality and creativity of the Africa’s wealth of cultural appeal, tourism natural attractions, services and products. In the media talk facilitated by the CNN New York based news anchor Richard Quest, African tourism ministers acknowledged the need to consult and engage one another to work on the bulk of issues which hinder tourism penetration. African ministers led by Hanekom added a strong voice on how Africa countries can come together to position themselves as tourism business collaborators and promote inbound tourism in which huge opportunities have largely not been exploited. “If one quarter of African countries were to implement the open skies for Africa decision  and facilitate great air connectivity between our countries - additional jobs (job creation) and an added GDP that could be generated with obvious numerous benefits for tourism in many countries, said Derek Hanekom, South African’s tourism minister. Hanekom said that many major airlines fly to Africa from North America, Europe, Asia and other parts of the world. However, once visitors reach this continent they encounter difficulties in connectivity as well as exorbitant air fares from country to country. He said that air transport services in Africa remained a critical constraint. Hanekom, who was one of the three panelist’ tourism experts who attended the media talk including ministers from Zambia, Zimbabwe, Namibia, Lesotho, Seychelles, Swaziland, Burkina Faso and Ghana. “Africa’s...