The UK this past week opened a new chapter in its relations with African countries at a summit to set the tone for the country’s trade and diplomatic ties with the continent after exiting the European Union. British Prime Minister Boris Johnson hosted leaders from 21 African countries in London, where 27 deals worth an estimated $8.5 billion (£6.5 billion) were signed at the UK-Africa Summit held on January 20. The summit came just months after Japan and Russia hosted African leaders in their respective capitals last year. “We want to build a new future as a global free trading nation, that’s what we are doing now and that’s what we will be embarking on, on 31st of January,” Mr Johnson told the gathering in London. “But I want to intensify and expand that trade in ways that go far beyond what we sell you or you sell us.” The tone of the meeting signalled a shift in Mr Johnson’s attitude towards Africa. Eight years ago, as mayor of London, he wrote a commentary in the Spectator Magazine suggesting that Africa would have been better off if the UK was still its colonial master. Britain expects to start an 18-month transition from being a member of the EU beginning January 31, to being an independent country capable of signing bilateral or multilateral trade deals. Britain may have to renegotiate all trade deals initially signed under the EU, including with African countries. In the EAC, for example, Britain had been a...

With the AfCFTA expected to increase intra-African trade by 52 per cent by the year 2022, the journey towards making it a reality is in high gear. The Africa Continental Free Trade Agreement seeks to have the removal of tariffs on 90 per cent of goods traded within the continent. Towards this, UNCTAD and the African Union have developed an online platform to help remove non-tariff barriers to trade in Africa. The tool became operational on January 13. Moving goods across the continent Traders and businesses moving goods across the continent can now instantly report the challenges they encounter, such as quotas, excessive import documents or unjustified packaging requirements. To improve the movement of goods across the continent and reduce the cost importers and exporters in the region face, the tool will help African governments monitor and eliminate such challenges which slow trade costing the continent billions of dollars annually. The African Union’s Agenda 2063 seeks to transform Africa into a global powerhouse of the future. The need to envision a long-term 50-year development trajectory for Africa is important as the continent needs to revise and adapt its development agenda due to ongoing structural transformations; increased peace and reduction in the number of conflicts; renewed economic growth and social progress; the need for people-centred development, gender equality and youth empowerment; changing global contexts such as increased globalization and the ICT revolution; the increased unity of Africa which makes it a global power to be reckoned with and capable of rallying support around its own...

Agriculture Cabinet Secretary Peter Munya has extended the term of a task force formed to spearhead reforms on standardisation of goods in the fight against counterfeits. The Standards and Quality Infrastructure Reforms Taskforce that Mr. Munya appointed on November 15, 2019, while he was Trade Minister, is chaired by Mr. Wachira Maina. It was appointed for a period of two months so it was expected to have completed its work by January 15. But in a January 14 Gazette notice, Mr. Munya extended the team's term by three months, effective January 15. GOALS The taskforce is undertaking a comprehensive review and evaluation of weaknesses and shortcomings of Kenya's standards and quality infrastructure It is analysing the system's policy as well as legal and legislative frameworks of relevant institutions and agencies. The terms of reference state that members are to "review and evaluate weaknesses in inter-agency coordination in the standards enforcement ecosystem. They are also to "review adequacy of the capacity level of various institutions or agencies covering human, financial and other resources, for purposes of ensuring efficient implementation of their mandate". KEBS EVALUATION The 11-member team with four joint secretaries is looking into organisations including the Kenya Bureau of Standards (Kebs). According to its terms of reference, it will submit a report recommending evaluation of Kebs' internal weaknesses, its mandate and functions. The team will also recommend the evaluation of inherent conflicts of interests in the operational structure at Kebs and other agencies involved in defining, monitoring and enforcing national...

Kenya’s President Uhuru Kenyatta at the London Stock Exchange. The country’s $40 million debut green bond received a lukewarm reception. PHOTO | FILE | NATION MEDIA GROUP Kenya and Rwanda are hoping to expose the East Africa region to sophisticated foreign investors after floating two bonds on the London Stocks Exchange (LSE) last week. However, Kenya’s $40 million debut green bond received a lukewarm reception with no trading recorded in the first week. While the cross-listing of the bond was intended to expose investors to a deep market that is significantly liquid, the issue has failed to generate interest from investors with LSE market statistics reflecting zero trading. Trading of the bond by Nairobi-based property developer Acorn Holdings has been flat in the secondary market. The World Bank floated a $40 million Rwandan Franc bond that offers investors an annual coupon of 9.25 percent payable in US dollars when it matures in 2023. The World Bank intends to raise funds to invest in government bonds issued in the local market. Source: The East African

The Epower forum, recently hosted at Nairobi’s Movenpick Hotel, unfolded the key issues regarding the way in which E-commerce can enable cross border trade for women in light of the African Continental Free Trade Agreement (AFCFTA). In attendance were over 150 women owned SME’s. The basis of the event touched on how cross border trade can be made simpler, more cost effective, whilst creating new business opportunities and enhancing social development. This comes at a time where the advancement of technology is at an unprecedented level. Eric Wainaina, from Africa’s talking, said “It is annoying to hear, that Africa is not at par with the rest of the world concerning technology. It’s not true” With regards to how E-commerce is relying on technology, it was made increasingly clear that the uptake of more technology will allow for seamless patterns, instead for operating in a fragmented manner, ensuring more out of the value chains. This was emphasized by Gloria Atuheirwe, Director Women in Trade East Africa, “ICT to facilitate trade, automating and making trade easier. ICT to be the building blocks for improving outreach, processes and efficiency”. Outlining trade issues from two perspectives, barriers and cost of trade, alluding to how technology can ease up those processes. Through the inception of the Epower forum, women globally have learnt how to plug into E-commerce learning to harness the power of internet skills. Source: CIO East Africa

The Lamu Port-South Sudan-Ethiopia-Transport (Lapsset) corridor project got its biggest boost yet after it was adopted as an African Union project. INFRASTRUCTURE It will be redesigned to link the Sh32 billion Lamu port on the shores of the Indian Ocean to the Douala port in Cameroon, on the Atlantic Ocean. The project will be implemented in two phases — starting with the Lamu-Isiolo-Addis Ababa-Djibouti route before embarking on connecting Lamu to Kribi/Douala via Juba and Bangui. The announcement has given Nairobi the much needed boost for its flagship multi-billion-dollar infrastructure project that has dragged on for years. Speaking during the signing of a memorandum of understating between Kenya, Ethiopia and South Sudan in Mombasa, AU High Representative for Infrastructure Development Raila Odinga said the organisation had adopted Lapsset as a continental project and this would now see it get implemented under the AU. “This project will now not only connect Kenya with Ethiopia and South Sudan, but with other West Africa countries once it is completed. As an AU project, it will link with other continental corridors such as East Africa Northern Corridor, East Africa Central Corridor and provide a land bridge through the African Great Lakes region,” Mr Odinga said PARTNER COUNTRIES The three countries signed the MoU that will now help the project to facilitate its infrastructure development and funding. Attending the three-day meeting were prospective financiers of the project, the African Development Bank (AfDB), a boost for the project that has so far been funded only by...

Importers paid Sh3.22 billion in cargo storage charges at Kenya Ports Authority(KPA) facilities in 2017-18,data by the Shippers Council of Eastern Africa(SCEA) shows. This is despite the much publicized 'improved cost of doing business' pegged on investments in infrastructure, automation of systems and digitization of government services, improved cargo handling and speedy evacuation of cargo from Mombasa. KPA prides itself of year-on-year improvement in cargo handling capacity, ship-turn-around time and dwell time at the port. The Standard Gauge Railway(SGR) has also been lauded as a game changer in the country's logistics space, while Kenya Revenue Authority(KRA) and other state agencies have continued to invest heavily in systems to improve the business environment. In the latest World Bank Ease of Doing Business-2020, released last October, Kenya was ranked 56 globally on attractiveness to investors, having improved five positions. "Kenya is among top reformists in Africa and the World. This takes good leadership and coordination between agencies," said Augustine Langyintuo of World Bank finance competitiveness and innovation regional focal point. "I encourage Kenya to continue with these reforms," he added. However, the logistical space requires more attention  to support growth of the GDP, according to industry players, as numerous challenges continue to affect international trade. Clearance Cargo clearance is one of the biggest challenges that needs to be addressed to spur trade, according to traders. While cargo dwell (time taken to clear) at the Port of Mombasa has reduced from an average 4.2 days in 2018, to 3.9 in 2019, and eight...

The expansion of a section of the busy Busia-Kisumu highway starts this week, Busia Governor Sospeter Ojaamong has said. The British government is funding the Sh300 million rehabilitation of the section between the One-Stop Border Post in Busia town and Korinda in Matayos, Ojaamong said on Friday. “The British government has availed Sh300 million for expanding the Busia-Kisumu highway from the One-Stop Border Post to Korinda," the governor told Mulembe FM. The potholed condition of the regional road has ignited many complaints. It is also too narrow. "The contractor will be on sight within a week to start the rehabilitation,” Ojaamong said. The road will be a dual carriageway for an easier flow of traffic to Uganda. “This is a regional road from Busia to Kisumu and it is not the responsibility of the county to maintain,” the governor said in response to complaints that his administration had failed to maintain it. Four years ago, British High Commissioner to Kenya Christian Turner assured the county administration of his government's preparedness to rehabilitate infrastructure in the county. Source: The Star

The  Rehabilitation  works  of  the 240-kilometre old Nairobi-Nanyuki railway line has commenced in Laikipia with the goal of spurring economic growth in Central Kenya. The Sh.3 billion rehabilitation  works of the metre-gauge railway line expected to be completed in five months are being undertaken by Kenya Railways Corporation which has already injected Sh.1 billion while the remainder will be provided by the National government. The  Laikipia Governor, Ndiritu  Muriithi  while briefing the press at his Nanyuki office on Tuesday said that that the works  would be undertaken in three stages in order to speed up the process and have the railway line ready for use by the end of May this year. “Rehabilitation is in three stages; one group will work from Nanyuki-Marua section, the second group is allocated the Marua-Sagana section while the third will rehabilitate from Sagana-Thika stretch,” Governor Muriiithi said. He  said among the beneficiaries of the revival of the line would be the 11 million litres Nanyuki Petroleum depot operated by  Vivo Energy that serves parts of Eastern and Northern Kenya. “We want to see the large fuel trucks taken of the roads for its safer and cheaper when fuel is moved by rail,” the Governor said. A spot check at the Nanyuki terminus revealed that works had commenced with local youth who had been contracted by Kenya Railways to clear bushes along the line before engineering works could be carried out. Governor Muriithi added that cohorts from the National Youth Service (NYS) and technicians from...

Kenyan traders can now access the continent’s investment regulatory data on one platform following the launch of an e-portal aimed enhancing ease of doing business. The tool, tradebarriers.africa, has been developed by United Nations Conference on Trade and Development (UNCTAD) and the African Union, and also seeks to make trade less costly for local investors. The platform became operational on January 13. UNCTAD and African Union (AU) said Kenyan traders and businesses moving goods across the continent will be able to report the challenges they encounter, such as quotas, excessive import documents or unjustified packaging requirements. UNCTAD and the AU trained 60 public officials and business representatives from across Africa on how to use the tool in December 2019 in Nairobi. “Non-tariff barriers are the main obstacles to trade between African countries,” said Ms Pamela Coke-Hamilton, director of UNCTAD’s trade division. “That’s why the success of the African Continental Free Trade Area (AfCFTA) depends in part on how well governments can track and remove them,” she said, referring to the agreement signed by African governments to create a single, continentwide market for goods and services. Complaints logged on the platform will be monitored by government officials in each nation and a special coordination unit that’s housed in the AfCFTA secretariat. The unit will be responsible for verifying a complaint. Once verified, officials in the countries concerned will be tasked with addressing the issue within set timelines prescribed by the AfCFTA agreement. Kenya’s manufacturing sector is betting big on the Africa-wide...