14 August 2020: The Tech for Growth programme, launched by the Department for International Trade this week, aims to build trading opportunities between the UK and emerging economies. The UK Department for International Trade (DIT)’s new Tech for Growth programme will build future trading opportunities between the UK and emerging economies through the use of technology to expand access to financial services, the government announced this week. The programme will initially be piloted across Africa for a year. Access to financial services remains low across the continent; aound 60% of adults in sub-Saharan African still do not have access to traditional means of financial services, including banking and insurance. Mobile phone use has risen to over 40%, and the DIT believes that technology can play an increasing role in expanding access to financial services and other sectors. In that first year, the programme aims to establish a UK-Africa ‘Tech for Growth’ community, providing more access to financial services in underserved regions. It will include events across the UK and Africa to promote partnerships between British and African technology and financial services companies. It also looks to establish UK-Africa FinTech trade by highlighting commercial opportunities and addressing any hurdles that are holding back growth in that area. The DIT wants to establish close, collaborative relationships with African governments and regulators to help stimulate the growth of the tech sector across the continent. “Diversifying and increasing trade and investment in sectors such as tech will be crucial for economic recovery from Coronavirus,...

The WTO Secretariat has published a new information note warning of possible increases to trade costs due to COVID-19 disruptions. The note examines the pandemic’s impact on key components of trade costs, particularly those relating to travel and transport, trade policy, uncertainty, and identifies areas where higher costs may persist even after the pandemic is contained. The note estimates that travel and transport costs account for as much as a third of trade costs depending on the sector. Pandemic-related travel restrictions are therefore likely to affect trade costs for as long as they remain in place. For example, global air cargo capacity shrank by 24.6 per cent in March 2020, as passenger flights account for around half of air cargo volumes. The resulting increase in air freight prices is likely to subside only with a rebound in passenger transport, according to the report. While sea and land transport have not faced comparable shocks, maritime transport has seen a decrease in numbers of sailings, while international land transport has been affected by border closures, sanitary measures and detours. Moreover, business travel, which is important for maintaining trading relationships and managing global value chains, in addition to being a significant economic activity in its own right, is being disrupted. The quality of information and communications technology (ICT) infrastructure and digital preparedness will be important in determining how well economies can cope. Trade policy barriers and regulatory differences are estimated to account for at least 10 per cent of trade costs in all...

In Summary The two countries have recently had some misunderstanding over handling of the Covid-19 the pandemic. The residents said the duo should sort out their differences and strengthen economic and social ties. Communities living in Vanga, Lunga Lunga, Kwale want President Uhuru Kenyatta and his Tanzanian counterpart Pombe Magufuli to end the economic cold war. The two countries have recently had some misunderstanding over handling of the Covid-19 the pandemic. According to residents, the ongoing grudge between the two countries has negatively affected trade. Led by Feroz Mohammed, the residents said the duo should sort out their differences and strengthen economic and social ties. “We want them to end their fights. Before these coronavirus restrictions businesses were doing great unlike now,” he said. Tanzania and Kenya have for years depended on each other on trade as border residents will cross over for business. There are popular open-air markets called ‘chete’ whereby businesspeople from both sides trade at cheap prices. Mohammed said the stringent Covid-19 rules for foreigners at the border have paralysed businesses, raising the prices of commodities. Vanga is known for fishing and the biggest markets are in Tanzania. The residents said they were forced to travel to Mombasa to find a market for their products, which is expensive. “Vanga to Tanga is about 60km compared to going to Mombasa which is almost 150km. That's time-wasting and consumes a lot of money, " he said. Wholesaler Hamdu Hamadi said they used to get wheat flour, rice and maize among...

The revival of the 240-Kilometre Nairobi-Nanyuki metre-gauge railway line is now complete and has started operations by transporting petroleum products to the Shell Vivo Energy depot in Nanyuki town. The  Mining and Petroleum Cabinet Secretary (CS), John Munyes who toured the petroleum facility on  Wednesday accompanied by a government delegation that rode the passenger train from Thika station to Nanyuki on a test run said the revival would offer a safer way of transporting petroleum products to  Mt. Kenya region and Northern parts of the country. “What this brings as far as the petroleum sector is concerned is efficiency, the security of our products is going to be achieved with this railway, it’s going to be cheap, safe because we are taking away trucks off our roads,” Munyes said. The  CS  added that the transportation of petroleum via the railway will greatly minimize cases of fuel adulteration often common when the same is transported by trucks on roads. “We have had cases of neighbouring countries complaining that fuel transported there through Kenyan roads is adulterated, but if we can restrict ourselves to transporting fuel via pipeline or railway, it means the security of our products is achieved,” the CS said. Munyes  who  was  accompanied by the  Principal Secretaries, Andrew Kamau (Petroleum) and Kirimi Kaberia (Mining), termed the revival of the railway line a great milestone that would not only boost the agricultural potential of Mt Kenya but added the mining sector was likewise set to reap big as the train...

DP World this week announced the completion of a 400-meter expansion of the Berbera port in Somaliland. The Dubai Port Company that is contracted to expand the port said once operational, it will increase the terminal’s capacity by 500,000 TEUs per year and further strengthen Berbera as a major regional trade hub servicing the Horn of Africa. In a tweet, DP World stated: “We have just completed a 400m quay and a new extension at Berbera Port, Somaliland. Once operational, it will increase the terminal’s capacity by 500,000 TEUs per year and will further strengthen Berbera as a major regional trade hub servicing the Horn of Africa.” The news has elicited excitement within the Somaliland government with the vice president Abdirahman Abdilahi saying: “As Deputy President of Somaliland and on behalf of the people, words can’t express my great excitement about the nearing completion of the Berbera port expansion. my gratitude goes to the Sheikhs of the UAE and the DP World.” DP world, the Dubai based world’s largest port operator is the key player in the rebuilding of Berbera, they have invested $442 million for the expansion of the port and are also the economic free zone. It has projected to complete work by February next year. In 2017 when the original agreement was signed, the CEO of DP World Mr. Sultan Ahmed bin Sulayem drew a parallel between the growth of Dubai and the development path Somaliland is on and added “Our vision is to make Berbera a trading and transportation hub for the Horn of Africa.”...

Summary In 2019, transit cargo from Dar es Salaam to Uganda, Rwanda, and Burundi was at 37 percent, up from 22 percent in 2018. On average it costs $1.80 per kilometre per container to transport goods from the port of Dar es Salaam to Bujumbura compared with $3.10 per kilometre per container from the port of Mombasa. The turnaround of the Central Corridor has been attributed to the revival of the Central line metre gauge railway. This may have prompted Kenya Railways — after two decades of neglect — to rehabilitate the old meter-gauge railway from Nakuru to Kisumu at a cost of Ksh3.8 billion ($35 million). The Dar es Salaam port could attract lucrative business away from the Mombasa as the Central Corridor proves to be cheaper compared with the Northern Corridor transport route. On average it costs $1.80 per kilometre per container to transport goods from the port of Dar es Salaam to Bujumbura compared with $3.10 per kilometre per container from the port of Mombasa. The recently released the Central Corridor Transport Observatory 2019 report, which measures the performance of the Central Corridor, also shows that the average costs per km per container from Dar es Salaam to Kigali is $1.90 compared with $2.10 from the port of Mombasa. Importers from Uganda, also pay less at $1.80 per km per container to transport goods from the port of Dar es Salaam compared with $1.90 per km per container charged from Mombasa, while those from Goma pay $2.60...

In Summary Free trade policies in general provides for free movement of goods and services between countries. This approach is based on the argument that enhanced trade increases wealth and is therefore a good thing to both Kenya and the US. Kenya and the United States of America (USA) formally launched negotiations on 8th July 2020 to seal a Free Trade Agreement (FTA). This will be first of its kind in Sub-Saharan Africa. This follows the U.S.-Kenya Trade and Investment Working Group established by President Trump and President Kenyatta in August 2018, which was tasked with laying the groundwork for a stronger bilateral trade relationship. It is expected that this deal will form a model for other African countries upon the expiry of the African Growth and Opportunities Act (AGOA) in 2025. Free trade policies in general provides for free movement of goods and services between countries. This approach is based on the argument that enhanced trade increases wealth and is therefore a good thing to both Kenya and the US. The announcement of Kenya’s trade deal with the US is a testament to the realization of Kenya’s growing market diversification and offers a myriad of opportunities especially with regards to market penetration, job opportunities, technological advancements and innovation to spur economic growth and help Kenya raise standards to meet new manufacturing American requirements for export; and open up local industry to new investments. In order to understand and appreciate how these benefits would accrue it is important to first...

In Summary A kilo at the Mombasa auction averaged $1.85 (Sh199.87) this week, a slight increase from $1.82(Sh196.63) in last week's trading. The commodity however continues to trade below the two-dollar mark for 13 weeks. Tea auction prices have shown a sign of recovery after maintaining an upward trend for the second week, despite remaining below the traditional two-dollar mark. A kilo at the Mombasa auction averaged $1.85 (Sh199.87) this week, a slight increase from $1.82(Sh196.63) in last week's trading. Out of 171,065 packages (11,363,081 kilos) available for sale this week,140,022 packages (9,268,419 kgs) were sold. 18.15 per cent packages remained unsold. Kazakhstan and other CIS states lent strong support and were dominant while Sudan showed strong activity with increased interest from Pakistan packers, Yemen, other Middle Eastern countries and Russia, the East African Tea Trade Association (EATTA) data indicates. “Afghanistan showed strong support with useful inquiry from Bazaar and UK. There was reduced interest from Egyptian packers while Iran were selective with strong activity from local packers,” EATTA managing director Edward Mudibo said. Somalia were more active at the lower end on the market. Last week, Kazakhstan, other CIS states and Sudan showed more and strong interest and were forceful while Afghanistan and Bazaar increased activity and were also forceful, according to EATTA. Out of 176,602 packages (11,716,349 kilos) available for sale last week,139,925 packages (9,246,702 kgs) were sold, meaning this weeks sold packages went high. 20.77 per cent packages remained unsold last week. The upward trend comes as a relief after three straight weeks of trading at an average $1.73 (Sh186.91),...

Kenya's standard gauge railway maintained a steady movement of cargo from the port of Mombasa to the capital Nairobi despite the COVID-19 pandemic disrupting various sectors. The service moved about 1.98 million tons of cargo between January and June. NAIROBI, Aug. 7 (Xinhua) -- Kenya's standard gauge railway (SGR) maintained a steady movement of cargo from the port of Mombasa to the capital Nairobi despite the COVID-19 pandemic disrupting various sectors in the first half of the year. New data from the Kenya National Bureau of Statistics seen on Friday showed that the service moved about 1.98 million tons of cargo between January and June. This was a slight decline from a similar period in 2019, where 2.20 million tons of cargo was moved in the first half. Considering the fact that COVID-19 pandemic hit Kenya from March, affecting port operations, the movement of cargo this year was stable. Most of the cargo in the first half of this year was moved between April and June, when some 1.05 million tons were ferried on the SGR, with the rest between January and March, according to the bureau. During the period, it said the SGR's cargo business generated 5.53 billion shillings (about 51.7 million U.S. dollars) in revenue, a slight fall from 52.6 million dollars in a similar period in 2019. Most of the cargo ferried in the period under review was medical supplies and grains, as demand for the trains rose as the country battled COVID-19 pandemic. According to Afristar...

The Commissioner of Customs and Border Control notifies all shippers, clearing agents, transporters and stakeholders in the conveyance of goods under customs control that pursuant to regulation 210 and 211 of The East Africa Community Customs Management Regulations 2010 that goods subject to customs control may only be conveyed by a vessel or vehicle licenced by the Commissioner for that purpose. All stakeholders under this category are therefore urged to familiarise themselves with the provisions of the said sections and ensure compliance within 14 days from the date of this notice. Please note that vehicles conveying transit goods and licenced under regulation 104 of the said regulations are exempted from this directive. For clarification please call our Contact Centre on Tel: (0) 20 4 999 999; 0711 099 999 or Email: callcentre@kra.go.ke Commissioner of Customs and Border Control Read the original article Disclaimer: The opinions expressed herein are the author's and not necessarily those of TradeMark Africa.