In a couple of weeks, Kenya will open the first phase of its multi–billion dollar Lamu Port, the beachhead to the Lamu Port South Sudan Ethiopia Transport (Lapsset) Corridor. That will be the second new logistics corridor after the Djibouti-Ethiopia standard gauge rail that went into service a few years ago. Yet to be done, Djibouti is also in the middle of a mega project to expand its port while to the south, Tanzania which has in recent years completed upgrades to the Dar es Salaam port, is now betting on a new port at Bagamoyo. Invariably, all these projects target the Eastern Africa hinterland with all contenders aiming to be the logistics hub of the region. Looking at East Africa’s or even Africa’s logistics map, it is not in dispute that the region and continent suffers a huge infrastructure deficit. But must the projects be this grandiose? There is indeed a case for developing infrastructure but a sense of proportion and degree of co-ordination are needed to make these projects viable. Multiple corridors provide critical redundancy in the event of failure, if they are inter-linked. But their economic efficiency needs to be looked at in more practical than academic terms because the economies are racking up huge debt to build these projects. For instance, the Lapsset Corridor aims to link Lamu, South Sudan and Ethiopia along a logistics umbilical cord comprising rail, an oil pipeline, electric power and roads. At the same time, if at all the Kenya standard...

Deputy President William Ruto has said Kenya has to do more to make it a preferred gateway to Africa for investors. He said the country must adopt a radical and progressive stance in reforming the business and regulatory environment. “Intensified collaboration between the Government, development partners and the private sector would firmly drive Kenya into being the continent’s business hub,” he said during the launch of the World Bank’s Doing Business in Kenya 2020 Report on Thursday in Nairobi. Dr Ruto said despite being ranked 56th globally out of 190 countries, first worldwide in the Protecting Minority Investors indicator and third in Sub-Saharan Africa, Kenya should not rest on its laurels if it is to rewrite its economic trajectory. By putting in more effort in pro-business policies and programmes, the Deputy President noted that more international flows would be realised, and more jobs and wealth generated. Leaders present during the function were East African Community CS Adan Mohammed, World Bank Group, Finance Competitiveness and Innovation Regional Focal Point Augustine Langyintuo, Development Partners Representative Julius Court, Head of Public Service Joseph Kinyua and Kenya Private Sector Alliance CEO Carole Kariuki. Dr Ruto said the Government had upped its efforts in not only making it easy for businesses to flourish but also towards turning Kenya into a home to a thriving army of talented and innovative entrepreneurs. “Positioning on its own is not enough, strategic intent must go with action. This is what led to the President’s directive in 2014 to embed...

,p>Last week, Kenya and the entire East African region witnessed a historic occasion as President Uhuru Kenyatta launched the next phase of the Standard Gauge Railway (SGR), originating from Nairobi and terminating at Suswa. It is instructive that this launch is part of the execution of Kenya the Railways Master Plan that sets to transform the national and regional railways network with a view to providing efficient, safe and reliable rail transport services. Whereas critics have christened this phase of the SGR as “a railroad to nowhere”, the benefits that will accrue from this project cannot be overstated. For starters, this will be an efficient railway network catering for increased demand for both passengers and goods transport along the northern corridor, besides addressing traffic congestion within the urban and peri-urban areas. Secondly, the railway line will play a huge role in decongesting the port of Mombasa as the increased capacity of transport infrastructure will meet the existing transport demand at the port, resulting in the movement of high freight volumes. The region is also set to become a competitive investment destination as the SGR will lead to higher speeds, thus reducing transit times between destinations and, consequently, lowering costs of production. Additionally, better access to markets will aid the exploitation of various resources in the region. End of SGR boom hits Bamburi Cement profit Finally, a viable railway transportation solution will ensure seamless connectivity that will enhance regional integration, reduce carbon emissions and wear and tear of roads and consequently,...

The government of Zambia has signed a US US $147m deal with Africa Inland Container Depot (AFICD) of Tanzania for the establishment of a dry port in the central town of Kapiri Mposhi. According to the signed agreement, the port will be an integrated logistics and industrial hub that will provide services to clients across eastern, central and southern Africa thereby increasing regional market access for Zambian products. Dry port project The project will be built on a Build-Lease-Transfer (BLT), Public-Private-Partnership (PPP) model. The area where the Kapiri Mposhi Dry Port is earmarked for is located on the northern side of New Kapiri Mposhi Railway station, measuring approximately 4.3756 hectares (10.81 acres), with an already installed gantry crane of 36mt lifting capacity. CEO of the IDC Mateyo Kaluba said that construction will be done in two phases. Phase one will involve construction of the dry port while the second phase will see an establishment of a multi-facility economic zone. Share holders The Industrial Development Corporation (IDC), the investment arm of the Zambian government, will hold 15% of shares in the project while the Tanzanian firm, Tanzania-Zambia Railway Authority (TAZARA) will hold 85%. The Dar es Salaam Corridor Group (DCG) will take hold of the four-hectare piece of land, construct the Dry Port, operate (lease) it for 25 years and, thereafter, transfer all the immovable assets to TAZARA. Approximately 500 jobs will be created during construction and up to 3,000 direct and indirect jobs will be created when the dry port becomes operational. “This is a...

MOMBASA, Kenya (Reuters) - Kenya’s port of Mombasa will spend 20 billion shillings ($193 million) to modernise four berths to handle both container cargo and goods not packed in containers, the head of the state port operator said. The port, built in 1895, is the main trade gateway for the Eastern Africa region, serving Kenya and seven neighbours, including Uganda, Somalia, Rwanda and South Sudan. The investment is driven by growing demand for imported cargo in the region, where most economies are growing by at least 5% per year, said Daniel Manduku, the managing director of the Kenya Ports Authority (KPA). Exports make up just 15% of the cargo that goes through Mombasa every year, with a third of the total belonging to neighbouring countries, while Kenya, the region’s biggest economy, takes up the lion’s share. Annual cargo traffic through the port is projected to jump to 47 million tonnes in 2025 from 32 million tonnes last year, Manduku said in an interview at the port. “We are currently undertaking major expansion programmes... We are trying to be ahead of the game.” The volume of cargo handled is expected to rise to 34 million tonnes this year, including 1.4 million 20-foot containers. Popular imports include clinker for cement manufacturing, steel, fertiliser and grains. The European Investment Bank and French development agency AFD have offered to finance the modernisation of the berths at commercial rates, Manduku said. “We think it is something we should consider, as opposed to normal commercial bank...

Kwame Nkrumah famously proclaimed on the night of Ghana’s independence that “Our independence is meaningless unless it is linked up with the total liberation of Africa”.  Africa, a continent rich in natural resources, holding around 30% of the world’s mineral resources is at the same time home to 5 of the 10 poorest countries in the world. In a recent report, the World Bank projects that a staggering 90% of the world’s poor may reside in Africa by 2030. Barriers to free regional trade, political turmoil, inadequate infrastructure and weak financial institutions remain key hurdles to economic advancement. Despite how grey the narrative looks, Africa’s growth outlook remains buoyant and continues to attract high foreign direct investment. Nkrumah’s vision was to restore Africa’s identity, “We are going to see that we create our own African personality and identity. We again rededicate ourselves in the struggle to emancipate other countries in Africa”. His desire was to see a well-functioning continent capable of harnessing its rich resources to become a global economic powerhouse. Kwame Nkrumah saw the need for neighbourhood/regional political independence – for he knew Ghana cannot be the only free country in Sub-Saharan Africa. He accordingly spent a great deal of his time, Ghana’s time and resources supporting the political liberation of fellow African countries. The going together, working together approach that Kwame Nkrumah and our political forefathers adopted in the political sphere is needed in economic development. Though recognized, the focus and zeal with which it was deployed in...

By mid-1970s, the East African Railways was the king of long-distance transportation with Mombasa, Nairobi, Nakuru, Eldoret, Kisumu, Jinja and Kampala as the key hubs. Branches to Moshi, Magadi, Nanyuki, Nyahururu, Solai, Kitale, Lira and Kasese created a web of regional railway networks, and at each railway town, rail sidings provided connections to warehouses, factories and oil depots. Rwanda import and exports including petroleum products were handled though Kampala station. When the East African Community collapsed in 1977 Tanzania closed borders with Kenya, resulting in loss of transit traffic from Mombasa to Moshi and the lake ports of Mwanza, Moshi and Bukoba which were fed from Mombasa by railways via Kisumu port. The railways name changed to Kenya Railways (KR) in 1977. About the same time, difficult relationships between Presidents Jomo Kenyatta and Idi Amin of Uganda fractured links between Kenya and Uganda railways resulting in loss of rail synergy between the two countries. This is when transporters, mainly Italians and Somalis from Mandera, emerged from Somalia where they were engaged in long-distance transportation and populated the highway between Mombasa and Uganda with old Fiat/Iveco trucks. To fill the railways void, Rwanda formed a state company (STIR Kigali) to truck cargo (including petroleum) to and from Kenya. Source: Business Daily

The  Industry, Trade and Cooperatives Cabinet Secretary (CS), Peter Munya has assured investors of unrelenting government support in creating an enabling environment for investment. Citing Kenya as the best investment hub in East and Central Africa, Munya said the country has endeavored to make it easier and cheaper to invest particularly through the Export Processing Zone (EPZ) incentives, among other programs aimed at bringing down the cost of utilities. The  CS  who  was speaking at EPZ in Athi River, Machakos County during the official handover of Braun Infusion Plant flag to signify Germany’s first investment at the EPZ program on Tuesday said investors in the county can now enjoy reduced power tariffs. “For example, we recently gazetted new power tariffs that bring the cost of power down by 30 percent for all manufacturing industries in the country, so if you invest in Kenya, you can now enjoy the best power costs available in this region,” said Munya. The CS exuded confidence that Kenya is a very attractive investment destination as it has access to a big regional market in the East African Community (EAC), the Common Market for Eastern and Southern Africa and the upcoming Continental Free Trade Area. He noted that Since 2013 Kenya has been a leading destination for Foreign Direct Investment placing the country third after South Africa and Nigeria in terms of volumes and first in terms of companies coming to invest in Africa. Munya attributed this to consistent Private Public Sector Partnership polices that promote...

Symposium on Inclusive Participation of Women in Trade, which took place in Nairobi in September, was co-organised by Professor Leïla Choukroune and attended by Nancy, who is a PhD Candidate in the Faculty of Business and Law. Nancy says: ‘The Symposium dealt with the broader perspective of emerging global issues in trade and narrowed down to inclusivity of women in trade from a gender perspective. The event attracted high-level dignitaries including Kenya’s Minister for Trade, UNCTAD Secretary General, Ambassadors and CEOs from various organisations across the globe. Various presentations were made by specialists ranging from information technology, data analyses and legal perspectives. My paper was titled:’Legal Framework for Inclusion of Women in Trade: Case of the United Kingdom vis a vis Kenya.’ This was informed by the 2030 United Nations Agenda for Sustainable Development, which included 17 Sustainable Development Goals (SDGs) aimed at ending poverty, hunger and inequality, supporting action on climate change, improving access to health and education, and building strong institutions and partnerships. The inclusion of a standalone goal (Goal 5) on women’s equality, as well as the mainstreaming of gender and inclusion through the other 16 goals, is a key achievement for the international community. Gender inequality in most spheres of development remains a major barrier to human development. The presentation demystified the legal and institutional framework of the rights of women in trade, reasons for the shift from exclusion and marginalisation of women for many decades and an increase in inclusion by creation of relevant legislation...

The EAC Regional Meeting on Trade Facilitation is the first meeting of the EAC Sub-Committee on Trade Facilitation under the UNCTAD Phase II project on Trade Facilitation, funded by TradeMark EA. The project is aimed at providing technical assistance to the EAC Secretariat and the EAC Partner States in trade facilitation reforms and simplification of trade procedures built upon the Trade Information Portals, all implemented by UNCTAD. The meeting will ensure a coordinated and harmonized implementation process of the trade facilitation policies in the EAC region. The EAC Regional Meeting will be held in Dar es Salaam, Tanzania, on 22-25 October 2019 under the leadership of the EAC Secretariat with the participation of the Chairs of the NTFCs, Representatives of the Customs Authority and the East African Business Council. At the end of the EAC Regional Meeting, the EAC Secretariat will prepare recommendations to be presented and adopted by the EAC Sectoral Council on Trade, Industry, Finance and Investment in November 2019. Source: United Nations Trade and Development