The escalation of fighting between government forces and those loyal to former vice president turned-rebel Riek Machar in South Sudan is among the reasons that Juba sought a postponement of a decision on its bid to join the East African Community in a meeting held in Arusha last week. EAC presidents attending the Extraordinary Heads of State Summit in Arusha, Tanzania on Wednesday agreed that the final negotiations on the bid by South Sudan should begin in September following a request by Juba to defer the process to allow for national consultation and preparations. South Sudan, in a letter to EAC Secretary-General Richard Sezibera, dated March 26, 2014, asked for up to six months before it can defend its application with the EAC high level negotiation team. Specifically, Juba cited the need for it to create sub-technical committees, train civil servants in EAC policy and programmes; and sensitise the private sector and civil society. “We reckon that in order to carry out these preparatory activities, South Sudan requires an additional five-six months before our country will be in position to commence the negotiations. We would, therefore, like to propose for the first round of the negotiations to take place sometime in the months of September-October, 2014, at a mutually agreeable date,” reads the letter signed by Barnaba Marial Benjamin and Aggrey Tisa Sabuni, the Ministers in charge of Foreign Affairs and Finance respectively. However, EAC officials privy to the bid said member states were “uncomfortable considering the application” when the...

Kenyan President Uhuru Kenyatta launched a “National Electronic Single Window System,” which aims to facilitate trade with other East African states, at Friday a ceremony attended by the leaders of several neighboring countries. The system aims to remove impediments to trade between Kenya and other East African countries, which have adversely impacted Kenya’s business environment. In the past, traders had to go through numerous government agencies to acquire the necessary permits and licenses. But as of today, the new single window and e-payment systems will enable East African traders to swiftly complete all the official procedures that would have taken them months in the past. While speaking at the launch ceremony, Deputy President William Ruto explained that, while it used to cost $3300 for a container to be shipped from Kenya to Uganda, it would now only cost $1600 – a reduction of 50 percent. Containers shipped to Rwanda used to cost $5000; now they will cost only $3300, he added. President Kenyatta pointed out that, once the new system is fully operational, cargo clearance will become faster at the Port of Mombasa and at Nairobi’s Jomo Kenyatta International Airport (JKIA). “We intend to progressively reduce the cargo dwell time at the Port of Mombasa to a maximum of three days and at the JKIA to one day, so as to significantly ease the cost of doing business in the region,” Kenyatta said. “Therefore, full implementation of the Kenya TradeNet System will have a major positive impact on business in...

President Uhuru Kenyatta has called on East Africa Community member states to fast track implementation of electronic single window system to boost regional trade. Speaking at the Safari Park Hotel yesterday during the launch of the Kenya National Electronic Single Window System, Uhuru said the system will strengthen integration envisioned under EAC. “This launch marks the beginning of a new chapter towards a paperless cargo clearance process. The realisation of this initiative will undoubtedly go a long way in transforming the way we conduct international trade transactions, not only in Kenya but also in the wider East African region,” he said. He urged ministers in charge of East African affairs to work with their National Treasury colleagues to move the agenda to EAC level and encourage partner states to work together to realise the concept. Uhuru said the international trade logistics involve submission of huge volumes of information and documents to government agencies in compliance with import, export and transit related regulatory requirements, which is cumbersome and leads to delays. “This information and documentation often has to be submitted through several different Government agencies in most cases each of these agencies has its own unique system which is either manual or automated. Most of the documentation is also in paper form thus creating multiple duplications that lead to enormous wastage and high transaction costs,” he said. He lauded the launch of the system saying it will have a major positive impact on business in the region if adopted regionally. Uhuru...

President Yoweri Museveni has received an award for promoting trade in East Africa from The Shippers’ Council of East Africa. The Chairman, Kenya Manufacturers’ Association, Polucar Igathe, on behalf of the East African Business Community, presented the award to President Museveni at Safari Park Hotel in Nairoi-Kenya. The ceremony took place Saturday during the 5th Northern Corridor Integration Project Summit held by the Heads of State of Kenya, Rwanda and Uganda. President Paul Kagame said the people of Rwanda were looking forward to the Integration of the East African Community for Economic Development. Kenya’s president, Uhuru Kenyatta, thanked his Rwanda and Uganda counterparts for their efforts geared towards further Integration of East Africa. The Vice-President of Kenya, William Ruto was in attendance. Source: New Vision

The World Bank has approved a $300 million loan to improve the rail network in Tanzania between Dar es Salaam and Isaka. The funds will be used to improve the deteriorating rail infrastructure on the route in an effort to create a reliable service. A World Bank statement describes the project as “a necessary first step to the eventual upgrade and expansion of the broader Central Corridor transport network.” “The location and the size of Tanzania, its mineral and agricultural resources , its tourism potential and its critical role as a transport hub for its landlocked neighbours, provide unrivalled opportunities for the development of modern transport infrastructure and services,” said Philippe Dongier, the World Bank’s country director for Tanzania. “We are excited to support the government’s efforts to rebuild its rail and intermodal transport system. The project will also indirectly help to boost agricultural trade, create jobs and improve overall livelihoods for the country and neighbouring countries.” The financing will support the Rail Development Project designed to increase the reliability of the rail infrastructure and train operations; strengthen logistics in the port of Dar es Salaam and its rail terminals; and strengthen railway operations. The funds will also be used to lay tracks, build new terminals, repair or reconstruct bridges and support the institutional transformation of the sector. “Besides constraining economic activity in Tanzania and reducing the competitiveness of the country’s tradable sectors, poor infrastructure on the East African Central Corridor creates delays and high costs for transporting goods between...

Kenya has launched a paperless cargo clearance system that is expected to save the economy millions of dollars by reducing the time and cost it takes to move goods across the region. The rollout of the Electronic Single Window System, also known as the Kenya Tradenet System, will cement the country’s position as the gateway to East Africa by making it easier and cheaper for traders to move their goods around the region. Presidents Uhuru Kenyatta of Kenya, Paul Kagame of Rwanda and Yoweri Museveni of Uganda officiated at the launch at a Nairobi hotel. Tanzania and Burundi sent government representatives. Clear cargo With the amount of cargo coming into East Africa through Kenya rising each year, the different systems used by the government to clear cargo have often been blamed for the long delays at the port of Mombasa. According to the Economic Survey 2014, cargo handled at the port went up 1.8 per cent to 22.31 million tonnes in 2013. It takes an average of seven days to complete the clearing process. Kenya hopes to drastically cut this dwell time. “With the Electronic Single Window System in place, we intend to progressively reduce the cargo dwell time at the port of Mombasa to a maximum of three days and at the Jomo Kenyatta International Airport to one day so as to significantly ease the cost of doing business in the region,” said President Kenyatta. It is estimated that once it is fully operational, the system will save Kenya...

Tanzania has opened an office in Lubumbashi, DR Congo, as part of a reform and expansion plan to become a port hub for the hinterland countries, and fight off competition from Kenya. The government is also keen to fast-tract the expansion of the Dar es Salaam port as it seeks to secure a geostrategic position as the key access point to the Indian Ocean to serve the economic zone straddling the Nile Basin countries — a position Kenya too, is keen to achieve. The opening of the Lubumbashi office comes in the wake of a visit by the Minister for Transport Harrison Mwakyembe and the top management of the Tanzania Ports Authority to the city, which is Congo’s second biggest. “Congo is one of the biggest users of the Dar es Salaam port, therefore we have decided to follow them and serve them where they are. A Congolese businessman will be served without having to come here, we are also going to link the office to our Dar es Salaam main office via an electronic system,” said TPA in a statement. The Dar es Salaam Port also serves Zambia, Uganda, Rwanda and Burundi. The opening of the office follows a similar move by TPA’s rival the Kenya Ports Authority (KPA), which launched a representative office in Kigali last year, also targeting Burundi and the DRC. Kenya is also setting up a second container terminal in Mombasa, as part of mega projects the country is pushing in order to consolidate its...

Kenya on Friday launched a single electronic system for processing imports and exports, to simplify red tape blamed for holding up trade in the trading hub of the region. Kenya is the main trade gateway to east Africa, through its Indian Ocean port of Mombasa, but traders say it takes too long to get goods cleared and permit-related delays ramp up costs. Previously, entrepreneurs had to fill several forms and visit 24 different government agencies to get the permits and pay the levies, fees, duties and taxes they need to get goods across borders. Using the new system, traders will no longer need to physically take documents from one agency to another for processing but can now enter all necessary information online. Speaking at the launch, Kenya’s President Uhuru Kenyatta said currently it takes an average of 7 days to clear cargo through the port of Mombasa and about 5 days at Jomo Kenyatta International Airport (JKIA), the regional air hub. However, the new Kenya National Electronic Single Window System, would hasten the process, he said. “With the electronic Single Window System in place, we intend to progressively reduce the cargo dwell time at the port of Mombasa to a maximum of 3 days and at the JKIA to one day so as to significantly ease the cost of doing business in the region,” he told a gathering that included regional presidents. Kenyatta said other countries in the region were also planning to adopt the system, and that there was...

East African Community (EAC) leaders met for the 5th Northern Corridor Integration Projects Summit in Nairobi during which they agreed on a wide range of issues, which if implemented, will not only take the bloc’s integration to another level but will have a significant impact on the lives of the ordinary East Africans. The inauguration of a raft of joint infrastructure and integration projects during a meeting between Presidents Paul Kagame, Yoweri Museveni of Uganda and Uhuru Kenyatta of Kenya in Entebbe, Uganda in June, 2013 heralded a new dawn for the EAC, instilling a sense of urgency in the integration agenda, with the improved livelihoods of the East Africans the ultimate objective. Since then, the three Heads of State have held another four summits, with none of the three failing to turn up for a single meeting. And the Principals have agreed to meet for their 6th summit around the same time the initiative will have lasted for just one year – in June. That coupled with the incredible results on the ground that are beginning to be realised, is a testament that with sufficient political will, East Africans and, indeed, Africans can go all the way. That the citizens of Rwanda, Kenya and Uganda could visit each other using just national IDs or voters/student cards as travel documents barely six months after the Presidents had agreed to the plan, as well as the significant drop in the number of days it took truckers to move goods from Kenya’s...

President Paul Kagame yesterday launched Kenya National Electronic Single Window System seen as a major boost for regional trade since it will simplify clearance processes of goods. President Kagame logs in to the Kenya National Electronic Window System (Kenya TradeNet) during 5th Northern Corridor Integration Projects Summit in Nairobi yesterday. Village Urugwiro. The launch was part of the activities of the 5th Northern Corridor Integration Projects Summit held in Nairobi, and was attended by Presidents Kagame, Uhuru Kenyatta of Kenya and Yoweri Kaguta of Uganda, as well as the second vice president of Burundi and Tanzania’s prime minister. Rwanda, Uganda and Kenya – which heavily rely on the Kenyan port of Mombasa – are spearheading a series of joint projects aimed at fast tracking regional development through joint infrastructure, trade and political and economic integration. The use of Electronic Single Window System is expected to centralise trade services such as tracking of goods, custom clearance, and electronic payment including through mobile money. The system will also integrate with Kenya Revenue Authority, making the clearance at Kenyan ports a lot faster and easier. “I just want to reiterate how this is one of many important projects that the East African Community partner states have undertaken to deepen integration that we have been seeking, make business more efficient, and lower the cost of doing business as we move forward,” Kagame said at the launch. Making tech tick He reiterated Rwanda’s “continued active participation towards making integration a reality.” President Kenyatta and his...