Kenya and Ethiopia are still struggling to conduct robust trade between them despite penning a number of bilateral agreements and instituting several trade-friendly measures. This is according to Foreign Affairs Chief Administrative Secretary Ababu Namwamba, who singled out non-tariff barriers for the current subdued bilateral trade. The barriers include long bureaucratic procedures, bans and sanctions. Another hindrance cited is a strict foreign currency regulatory regime by the National Bank of Ethiopia, which cuts across all the foreign nationals, especially those doing small enterprises. Mr Namwamba was speaking during the commemoration of the Ethiopia-Kenya 55-year relationship in Nairobi midweek. In 2012, the CAS said, Kenya and Ethiopia signed an agreement for preferential access aimed at fostering economic co-operation. The deal placed emphasis on trade, investment, infrastructure, food security and sustainable livelihoods. The two countries established the Joint Ministerial Commission (JMC) tasked with driving bilateral ties, in addition to more than 30 agreements and MoUs spanning nearly all economic, social and political spheres including security, defence and trade, movement of people, transport, and culture. “Despite all these very impressive agreements and JMC, regrettably the bilateral trade between our two countries remains quite low,” said Mr Namwamba. Ethiopian Ambassador to Kenya Meles Alem said: “Ethiopia and Kenya complement each other. As we celebrate 55 years of strategic partnership, this is the beginning of more to come. We are not rivals. Maybe the only thing we compete each other on is athletics,” he said. “Commemoration of the 55-year relationship is not only about reflections...

The Southern African Customs Union (SACU) and the East African Community (EAC) bilateral tariff liberalisation negotiations have been concluded. Launched in 10 June 2015, the Common Market for Eastern and Southern Africa Tripartite Free Trade Area (TFTA) aims to establish a single market for 27 African countries with a combined population of about 700 million (57% of Africa’s population), and Gross Domestic Product above US$1.4 trillion. Information from the SACU Secretariat office states that SACU and EAC have done their part by concluding the bilateral tariff liberalization negotiations between the two regional blocs. The Secretariat says the conclusion of the SACU-EAC negotiations is a significant step towards realising the benefits of the whole TFTA. The TFTA is based on three pillars, namely, market integration, infrastructure development and industrial development. As part of the market integration, member/partner states have been engaged in bilateral tariff liberalisation negotiations. The market access negotiations between SACU – consisting of Botswana, Eswatini, Lesotho, Namibia and South Africa –and EAC, which consists of Burundi, Kenya, Rwanda, South Sudan, Tanzania, and Uganda -- have been successfully concluded. As a result, the SACU-EAC private sector will thus have access to new and dynamic markets for exports as well as new sources of inputs for domestic production processes, thereby enhancing intra-regional trade.  Furthermore, the SACU and EAC secretariats, in a joint statement released last week, said that there was emphasis on the development of regional value chains in a wide range of sectors to deepen integration between SACU and the...

China has asked Kenya and Uganda to work on their respective financing modalities for the joint railway in order to receive funding for the project, Ugandan Finance Minister Matia Kasaija has said. China declined to fund the project, with analysts saying the two states’ public debt levels are too high to accumulate more, hence the fear by Beijing over their default risk. But Mr Kasaija told The EastAfrican that China has always been “ready to give us the funds to start the construction of SGR in Uganda, but there have been some complications between us with our neighbour Kenya. Kenya is supposed to extend the line to Malaba, but they have not been able to do so.” Although Kenya has completed the initial SGR phase linking Mombasa to Nairobi, and has progressed with the second phase from Nairobi to Naivasha, the fate of the subsequent phases from Naivasha to Kisumu and then to Malaba at the Ugandan border hangs in the balance. Increased competitiveness The 1,500km railway project, expected to be complete in 2018, was meant to increase the region’s competitiveness by lowering transport costs and ultimately the cost of doing business. Speaking to The EastAfrican on Friday on the sidelines of the First China-Africa Trade Expo in Changsha, the capital of central China’s Hunan Province, Mr Kasaija said that a delegation from Kampala led by President Yoweri Museveni held talks with China’s Minister for Commerce, officials of Exim Bank and Kenya’s Transport Cabinet Secretary James Macharia to see how the project could be...

Knowledge and competence are important to tap the potential of the East African and wider African market regional business lobby group has said. The East African Business Council (EABC) and the EAC Secretariat With support from German Development Cooperation under “Creating Perspectives: Business for Development, East Africa”  EABC improved skills of managers engaged in the manufacturing sector from the six East African Partner States on Export Preparedness and Management. Working with selected 74 growth-oriented small and medium enterprises (SMEs) in East Africa the pilot project aims to improve their economic perspectives by increasing productivity, competitiveness, and innovation. Speaking at the award ceremony today, Hon. Peter Mathuki said that SMEs are the backbone of the economy not only in East Africa but also in Germany where 80 per cent of employment is attached to SMEs. EABC is establishing a desk to help with cross border trade challenges “EABC has repositioned to respond to the needs of SMEs in the region by establishing a fully-fledged desk to help members with cross border trade challenges and provide advisory for business development” Mr Mathuki said. Support to start-ups and SMEs is crucial for the creation of employment and income generation for the steadily growing population in the EAC Partner States. The Chief Guest at the award ceremony, Hon. Kennedy Musyoka, Member of East African Legislative Assembly commended the SMEs for exploring the opportunities of the wider EAC market and employing the youth in the region. “As legislators, we would like more business to grow and expand...

Kenya Ports Authority's (KPA) Standard Gauge Railway (SGR) freight trains between the port city of Mombasa and Nairobi reached an all-time high of 221 in June, a monthly performance index has shown. For the past six months, KPA has been doing an average of eight trains per day from the port of Mombasa to Inland Container Depot in Embakasi, Nairobi. According to KPA's half year report on cargo evacuation via the SGR, a total of 1,197 SGR trains transported cargo from Mombasa to Nairobi. In January, KPA did 214 trains to Nairobi, whereas in February, March, April and in May another 172, 184, 203 and 203 freight trains operated respectively transporting cargo to Nairobi. However, the June performance of 221 trains is the highest ever record since the commencement of SGR freight services in January of 2018. KPA Managing Director, Daniel Manduku, on Monday said for the past six months, they transported a total of 2,019,002 metric tonnes from the port of Mombasa via the SGR freight services. "The performance record at the port of Mombasa is because of the 100 per cent efficiency at the facility. We introduced the ex-hook railage, whereby cargo destined for Nairobi via the SGR is offloaded from the ship and loaded straight to the waiting cargo trains to the hinterland," said Manduku. He said in the ex-hook railage concept, the cargo is discharged directly from the vessel onto the SGR wagons to build a block train of 100 containers, which are evacuated to the...

Kenya has also agreed to allocate land for a dry port to South Sudan at the Naivasha Special Economic Zone and for a logistics hub near the new Lamu Port. Further, the two countries have agreed to set up a joint border commission for the management of the common border between the two East African nations. The agreements were announced today at State House, Nairobi, after bilateral talks between President Uhuru Kenyatta and his visiting counterpart from South Sudan. “To further ease the movement of goods consigned to South Sudan, the Kenya Government has set aside 10 acres of land at the Inland Container Depot in Naivasha Industrial Park, for use as a dry port by the Government ofSouth Sudan,” said President Kenyatta when he addressed a joint press conference with President Salva Kiir. The President made the revelations as he assured South Sudan that Kenya is fast tracking the completion of the LAPSSET projects, including transnational highways, Oil Pipeline and the Lamu Port, among others, to link the two countries. “The first berth (of the Lamu Port) will be ready this August while Berths 2 and 3 are expected to be completed within the year 2020.  I will invite Your Excellency, with other regional leaders, to inspect the Lamu Project in due course,” said President Kenyatta. The President said Kenya and South Sudan will put more efforts in completing trans-national highways including Eldoret-Lokichoggio-Nadapal-Kapoeta-Torit-Juba Road. “In pursuit of our shared vision to deepen further our cooperation, it is important we...

President uhuru Kenyatta(right) and MasterCard foundation CEO Reeta Roy during the launch of mastercard programme in Nairobi on 20/6/19-[Beverlyne Musili,Standard] Successfully transforming from a developing nation into a mature, global economy means prioritising education, health, and the integration of technology. While those considerations are being reflected in recent budgets, the bigger picture is that Kenya is now in a position to look beyond its own borders. We must actively seek opportunities, partnerships and policies that multiply the hard work and successes of the past few years. Fortunately, it is also plain to see that the world is ripe for change. No place more so than in London, as Britain prepares to finally leave the European Union in October. Whether Boris Johnson or Jeremy Hunt takes charge of the British government, it appears increasingly likely that whatever the outcome, the door will be wide open for opportunity, partnerships, and for the implementation of a wise policy: Leading from the front. Our own leader, Uhuru Kenyatta, has shown he belongs on the world stage; receiving praise and recruiting support for his national and international policies. It is for this reason he is a fixture at all-important G7 meetings, and that he has secured Nairobi as the host city for the first global conference on sustainable ocean-based economics later this year, with Canada and Japan as co-hosts. With notches like these on his belt, a reputation for leading Pan-Africanism, and a united country behind him, Uhuru can now lead us beyond successes like...

Uganda is hopeful that the African trade meeting, taking place in Niger on July 7 will promptly address the issue of non-tariff barriers which for long has stood in the way of trade among countries. The meeting is intended to launch the operationalization the African Continental Free Trade Area agreement (AFCTA). The Agreement, a free trade area among 52 of the 55 African Union nations, was adopted during the 30th ordinary session of the African heads of state in Addis Ababa in January 2018. It brings on the table a market of 1.3 billion people. Literally, it means Africa wants trade where all its countries can trade with each without major restrictions. So far Nigeria, Eritrea and Guinea Bissau have rejected the agreement. By the end of May 2019, at least 24 countries had ratified the agreement meaning it can now be implemented. The agreement needed only 22 countries to kick-start work on supporting instruments. These instruments will be unveiled in Niger. Trade and Industry minister Amelia Kyambadde told reporters at the Uganda Media Centre today that there is now visible work in progress and Uganda expected members to address the issue of no-tariff barriers as soon as possible. Non-tariff barriers are trade barriers that restrict imports or exports of goods or services through mechanisms other than the simple imposition of tariffs. They include import bans, discriminatory rules of origin and quality conditions imposed by the importing country on the exporting countries. Others are unreasonable/unjustified packaging, labelling, product standards. These,...

Not need to hassle your way at the bus stand anymore to catch a ticket. Traveling across East Africa is set to be easier following the launch of our IIDEA project “Easy Travel East Africa”. The online platform will enable cross-border travelers to plan ahead for their journey through access to real time information on scheduled trips and compare pricing as well as reserve bookings. The new system seeks to provide cross-border universal ticketing and customer support services. Easy Travel East Africa project lead and Bekn Global Technologies Chief Executive Officer Nicodemus Barasa explains how the platform brings together regional bus operators, regulators, tour agencies and immigration agencies. The company has already engaged six regional bus operators including Modern Coast, Tahmeed, Dreamline, Mash Poa, Easy Coach and Riverside Shuttle. “A passenger only needs to visit our website and search for buses doing cross-border travels. They will then be able to book for their tickets online. They will get ticket details emailed and SMS confirmation sent to their phones, which they will use to board the buses they had booked,” Barasa said during the launch event in June, in Nairobi. Easy Travel East Africa's aim for seamless travelling across the region is additionally achieved by offering border pre-clearance services for passengers using their platform. Hereby the passengers’ information will be sent to the immigration offices prior to their arrival at the border through the platform. The platform is ready for use and will fully be rolled out in August 2019. Mr...

The hopes of China’s president Xi Jinping to play a more assertive role on the world stage were under pressure on Thursday as he headed to the G20 summit amid a trade war with the US and blows to his flagship Belt and Road Initiative (BRI). Mr Xi, who has reversed years of foreign policy caution, landed in Osaka amid reports that Tanzania had suspended a port project and Kenya halted construction on a coal power plant, dealing a major blow to Beijing’s ambitions in Africa. The port in the Tanzanian town of Bagamoyo was worth $10bn and would have been the largest in east Africa. But financing terms presented by the Chinese were “exploitative and awkward,” said John Magufuli, Tanzania’s president. “They want us to give them a guarantee of 33 years and a lease of 99 years, and we should not question whoever comes to invest there once the port is operational,” said Mr Magufuli. “They want to take the land as their own but we have to compensate them for drilling construction of that port.” When Mr Xi launched the BRI in 2013, developing nations enthusiastically signed on for loans to fund big projects that would set them on the path to prosperity. But six years on new governments are starting to cancel and renegotiate contracts given the weight of Chinese debt, casting doubt on the $1 trillion initiative set  to inaugurate a new ‘Silk Road’. Sri Lanka’s Hambantota port was a cautionary tale for many. After...