Sign up for Next China, a weekly email on where the nation stands now and where it’s going next. By many measures, China’s Belt and Road Initiative has been a monumental success. Since 2013, when China launched the effort to expand trade links, more than 130 countries have signed deals or expressed interest. The World Bank estimates some $575 billion worth of energy plants, railways, roads, ports and other projects have been built or are in the works. But President Xi Jinping’s signature effort has also come in for criticism, including accusations that China is luring poor countries into debt traps for its own political and strategic gain. The mixed reviews abroad and worries at home about the cost have led China into something of a reboot as it tries to increase transparency, improve project quality and reduce financial risks. 1. Where are the problems? Several countries have run into trouble with Belt and Road projects or had a rethink, often after a popular backlash, change of government or both. Complaints include corruption, padded contracts, heavy debt loads, environmental damage and a reliance on imported Chinese labor over local hires. Some examples: • Sri Lanka borrowed heavily to build a new port, couldn’t repay the loans, and then gave a state-owned Chinese company a 99-year lease in exchange for debt relief. The port has little business now but provides China a strategic berth along key shipping lanes. • China was set to lend Pakistan $8 billion to upgrade a railroad...

The first passenger cruise ship of 2019 docked at the Port of Mombasa’s new world class cruise ship terminal today, Sunday 3rd November 2019. She (Ms Albatros cruise ship) has 400 tourists on board and 300 crew members. The tourists will then proceed to excursions in Maasai Mara Tsavo National Part, Simba hills and Mombasa city. The terminal was constructed with contributions from Kenya Ports Authority (KPA) and the Finish Embassy in Kenya, which contributed funding through TradeMark Africa (TMA). The terminal is currently 96.5% complete; with practical handover expected to take place in the next two weeks. The completion comes in time for the cruise season during the festive period. TMA and KPA agreed to upgrade the old passenger terminal, which was first constructed in the 1920’s; and was initially designed for storage of conventional cargo. It was later converted as a cruise terminal in 1960s. The key driver of the intervention was a need to provide safety for passengers and a modern facility that’s in line with the changing shipping technology; that’s now dominated by mega ships with high carrying capacity and depths. This would therefore, position Kenya as a passenger destination via sea, and support its agenda to increase tourism. Port of Mombasa is one of the busiest Ports along the East African coastline. The fact that it provides direct connectivity to over 80 Ports worldwide makes the terminal an economic logic and critical node in increasing tourism in the region. Additionally, and obviously, the old terminal...

Feasibility studies for the construction of a Jumuiya market in Busia is expected to kick off in February 2020, Trade Mark East Africa (TMA) official has said. Speaking to KNA after paying a courtesy call on the County Commissioner on Tuesday, Simon Konzolo TMA official from Nairobi said the team will then move to designing the cross border market. “Once we are done with making the design, we can then move to the construction,” he said, adding that works will only proceed if feasibility studies prove that the project is viable. Konzolo added that the team is still holding talks with stakeholders in Busia to find out how best to carry out the project. The  project under the Ministry of East African Community is being supported by Trade Mark East Africa to the tune of Sh.1billion. He  stated that they had a challenge with the initial consultant over the cost and the entire plan. “We have now been forced to go back to the drawing board and find out who can do it,” he said, adding that the issue was a little bit out of their control. The official at the same time said that the people entrusted with the design works will come out with the project’s time frame. “But based on past experiences, it is not a project which will be done within a short period,” he stated adding that it will be done in phases. He further stated that the resources into it might be more than...

With the United States and China locked in a trade war, climate action lagging behind climate reality, and the World Trade Organisation’s Appellate Body at risk of becoming inoperable, the theme of this week’s WTO public forum — “Trading Forward: Adapting to a Changing World” — couldn’t be more appropriate. But if the global trading system is to be adapted to twenty-first-century realities, careful attention must be paid to the needs of developing countries. Consider Africa, which has been working hard lately to deepen intra-continental trade and integration. While such efforts — most notably the African Continental Free Trade Area (AfCFTA), have the potential to spur growth and development, their impact depends both on complementary global reforms and on countries’ implementation of WTO agreements. Success is far from guaranteed. The Trade Facilitation Agreement (TFA), which entered into force in 2017, is a case in point. One of the few WTO agreements to be ratified in recent years, the TFA places developing members’ ambitions at the forefront. It aims to expedite the movement, clearance and release of goods across borders; establishes measures for effective cooperation between customs and other relevant authorities; and provides for technical assistance and capacity building. The TFA recognises that trade facilitation rests on three key pillars: Simplification, harmonisation and transparency. Given its global uptake, it has the potential to ensure that reforms reflecting this recognition are “locked in” across countries, including those whose governments might otherwise be reluctant to implement them. For African countries that manage to implement the TFA...

With the United States and China locked in a trade war, climate action lagging behind climate reality, and the World Trade Organisation’s Appellate Body at risk of becoming inoperable, the theme of this week’s WTO public forum — “Trading Forward: Adapting to a Changing World” — couldn’t be more appropriate. But if the global trading system is to be adapted to twenty-first-century realities, careful attention must be paid to the needs of developing countries. Consider Africa, which has been working hard lately to deepen intra-continental trade and integration. While such efforts — most notably the African Continental Free Trade Area (AfCFTA), have the potential to spur growth and development, their impact depends both on complementary global reforms and on countries’ implementation of WTO agreements. Success is far from guaranteed. The Trade Facilitation Agreement (TFA), which entered into force in 2017, is a case in point. One of the few WTO agreements to be ratified in recent years, the TFA places developing members’ ambitions at the forefront. It aims to expedite the movement, clearance and release of goods across borders; establishes measures for effective cooperation between customs and other relevant authorities; and provides for technical assistance and capacity building. The TFA recognises that trade facilitation rests on three key pillars: Simplification, harmonisation and transparency. Given its global uptake, it has the potential to ensure that reforms reflecting this recognition are “locked in” across countries, including those whose governments might otherwise be reluctant to implement them. For African countries that manage to implement the TFA...

The establishment of fully serviced industrial parks with plug and play facilities to attract investments is one of the proposed actions to gain quick wins in the promotion of the Cotton, Textiles and Apparels (CTA) Manufacturing Industries in East Africa. The first forum of owners CTA manufacturing industries held in Kigali, Rwanda days ago further proposed sustainable procurement of all institutional uniforms, beddings, draperies by state institutions from textiles and fabric industries in the region. Another resolution of the forum was to carry out campaigns on Buy East Africa, Wear East Africa including implementation of the declaration of Fridays as “Afrika Mashariki Fashion Day” and organizing the Annual “Afrika Mashariki Fashion Week” exhibition to precede the EAC Heads of States Summit Meetings normally held on November 30, every year. Themed, ‘Promoting Local Production and Consumption  of Cotton, Textile and Apparels (CTA) Made in the EAC Region’, the two-day forum was attended by participants from the ministries responsible for industry, trade, agriculture and EAC; private sector players, CTA industry associations, private sector associations, industry associations and development partners, among other stakeholders. The overall objective of the Forum was to ensure that the owners of CTA industries meet discuss pertinent issues within the sector and make useful and practical recommendations to the EAC Policy Organs especially the Heads of State Summit for purposes of promoting the sector. Opening the Forum, Rwanda’s Permanent Secretary of Trade and Industry, Michel Minega Sebera, noted that CTA has the potential to create employment, improve economic well-being and widen...

Kenya National Chamber of Commerce and Industry (KNCCI) on Monday launched a one-month campaign to introduce local investors on opportunities that will be unleashed by Nairobi-Naivasha Standard Gauge Railway (SGR) and the proposed dry port. Said Ali, chairman of Nakuru County chapter of KNCCI, said that countrywide sensitization fora will be carried out to enable entrepreneurs and ordinary citizens understand the huge potential of the extended railway line that was launched by President Uhuru Kenyatta on Oct.16. Ali said both the 120 kilometers modern railway and the dry port will stimulate economic activities in the Kenyan hinterland. "The SGR stations are now fully operational and works to construct a modern dry port that have already begun. Our duty going forward is to bring our members on board and shed light on opportunities they can seize to grow their businesses," said Ali. He said that apart from educating members on phase 2 A of SGR, the trade lobby will partner with local authorities to help youth acquire the skill that can secure them jobs at the proposed special economic zones. "No one will be left out including our youth and we have made elaborate plans to ensure they are included in this new transformation that we are witnessing after the launch of phase 2 A of SGR," said Ali. He urged the business community in Mombasa opposed to ferrying goods using the SGR freight service to halt their demonstrations as the benefits will be felt along the value chain. "Not all...

The Kenyan government is determined that the Big Four Agenda in President Uhuru Kenyatta’s national plans delivers on the objective of creating jobs and enhancing economic transformation by 2022. The Big 4 will help Kenya to achieve faster growth in investment to reach the Kenya Vision 2030 target of at least 32 per cent of GDP. This will in turn accelerate economic growth towards the double digit growth, create jobs and enhance wealth. This means closing the current gap of more than six per cent in the next two years or so. It is not going to be an easy task, but it is one that can be achieved with the right policies, focused implementation and well-thought investments. The country must prioritise manufacturing by making it profitable for local companies to produce for export, boost their capacities to expand within the country and focusing on small enterprises growth and productivity. Although Kenya’s position in the region as a preferred investment destination remains strong, its competitiveness wavers due to a myriad of factors, the most critical of which can actually be resolved. Uhuru, Raila-backed plebiscite will bring changes we all desire The solutions, however, will require political goodwill and strong sustainable policies whose impact will last for years to come. Already, we are seeing heightened activity to improve the road and rail infrastructure. Apart from mega projects like the Standard Gauge Railway (SGR), the Dongo Kundu bypass in Mombasa and Kwale, the Lamu port and its associated infrastructure, there are plenty...

ESTABLISHMENT of fully serviced industrial parks with plug and production facilities to attract investments is one of the proposed actions to gain quick wins in the promotion of the cotton, textiles and apparels (CTA) manufacturing industries in East Africa. The 1st forum of owners of cotton, textiles and apparels (CTA) manufacturing industries was held in Kigali mid this week with Rwanda proposing for sustainable procurement of all institutional uniforms, beddings, draperies by state institutions from textiles and fabric industries in the region. Another resolution of the forum was to carry out campaigns on ‘Buy East Africa, Wear East Africa including implementation of the declaration of Fridays as ‘Afrika Mashariki Fashion Day’ and organising the Annual ‘Afrika Mashariki Fashion Week’ exhibition to precede the EAC Heads of States Summit Meetings normally held on 30th November every year. Opening the Forum, Rwanda’s Permanent Secretary of Trade and Industry, Michel Minega Sebera, noted that CTA has the potential to create employment, improve economic well-being and widen the tax base in the region. Sebera called on EAC partner states to fast track the phasing out of the second hand clothes in order to reap the benefits of the sector. He informed the meeting that in 2016, Rwanda started implementing the Summit directives and embarked on the phase out of second hand clothes. The PS disclosed that the phasing out of second hand clothes in Rwanda had attracted new investments in the sector and led to more than 15 new companies investing in apparels. He...

It is an indisputable fact that African countries do not trade enough among themselves. To make any meaningful headway and register economic growth, countries within the continent must boost intra-regional trade. This will also help accelerate economic growth and development on the continent. The government of The Gambia through the Ministry of Trade, Industry, Regional Integration and Employment in collaboration with partners has been spearheading initiatives geared towards promoting trade within our continent. Regional trade integration has long been a strategic objective for Africa with some success in eliminating tariffs within regional communities. However, more still needs to be done. The signing of the African Continental Free Trade Area (AfCFTA) Agreement by the overwhelming majority of African countries is a historic step towards rationalising Africa’s regional trade arrangements, deepen economic integration and draw on economies of scale and development of regional value chains. These many believe, would further accelerate the process of structural transformation of African economies. As a flagship project of the African Union Agenda 2063: The Africa We Want, the AfCFTA seeks to bring on board all the 55 African countries with a combined population of more than 1.2 billion people and a combined gross domestic product (GDP) exceeding US$2.5 trillion, making the continent the largest free trade area created since the formation of the World Trade Organisation (WTO). Analyst believe that Africa could double intra-regional trade by easing non-tariff barriers, including customs procedures and improving the continent’s poor transport infrastructure; that doing this will help boost economic...