News Categories: Kenya News

Seize the opportunity offered by Africa’s continental free trade area

Since the turn of the millennium, Africa has experienced a steady and unprecedented economic growth. However, poverty continues for people across the continent, especially in the sub-Saharan region. Unemployment and inequality have remained high. The rural population and the urban poor, women and youth, have not benefited from economic growth. African policymakers realize that, for the benefits of growth to be shared by all, there needs to be a structural transformation of the economy. Specifically, there is an acknowledgement that its composition should change, with increased shares of manufacturing and agro-related industry in national investment, output, and trade. Manufacturing, thanks to its multiplier effect on other sectors of the economy, has always been one of the most important drivers of economic development and structural change, especially in developing countries. Manufacturing is an “engine of growth” that enhances higher levels of productivity and greater technical change, thus creating more jobs with higher wages for both women and men. Recognizing this, the United Nations has proclaimed the period 2016-2025 as the Third Industrial Development Decade for Africa (IDDA III) in order to increase global awareness and encourage partnerships to achieve inclusive and sustainable industrialization. Today, Africa has exceptional opportunities for industrialization. In the next few decades, Africa will become the youngest and most populous continent in the world with a working age population expected to grow by 450 million people. or close to 70 per cent of the total, by 2035. With a rapidly growing population, and one of the world’s highest...

EAC launches policy to bridge gender gap

A policy seeking to protect and promote the rights of women, men, boys and girls within the East African Community (EAC) has been launched. Mr Abdikadir Aden, Chairperson of the Committee on General Purpose of EALA, said that the policy will look into areas of gender equality as well as protection of the youth and children. "In most institutions and even governments, the higher we go on the decision-making ladder, the fewer women we see. This has been many times referred to as the 'glass ceiling' that keeps women from rising to the upper ranks, regardless of their (academic and professional) qualifications or achievements and in comparison with their male counterparts," Mr Aden said during the launch of the programme in Arusha, Tanzania, on Monday. Mr Aden added that through social protection and community development, the EAC would be able to institutionalise gender strategies in the region. POLITICS He explained that despite various accomplishments by partner States in educating the girl child, there is still poor representation of women in the employment sector, more so in political representation. He said that there is still misleading data and false dichotomies between targeted programme interventions and those incorporating gender issues across different sectors. He also observed that there is lack of comparable data for tracking allocations and expenditures of resources for gender equality and the empowerment of women. "This lack of accountability delays progress in advancing gender equality and the empowerment of women, girls and other marginalised groups," he said. POLICY He,...

AU launches campaign to fully ratify African Continental Free Trade Area

A business guide developed by the International Trade Centre (ITC) was launched on Tuesday to help the private sector and policymakers better understand and navigate the agreement. Albert Muchanga, the AU Commissioner of Trade and Industry, said the bloc was confident of getting the 15 remaining member-states to ratify the agreement by December. So far, Kenya, Rwanda, eSwatini, Chad, Niger, Guinea and Ghana have ratified the AfCFTA, while three countries (Egypt, Kenya and Uganda) have ratified the Common Market for Eastern and Southern Africa (COMESA), Southern African Development Community (SADC) and the East African Community (EAC) Tripartite Free Trade Area. At least 22 ratifications are needed for the AfCFTA to enter into force, and 14 are required for the TFTA. COMESA Secretary General Chileshe Kapwepwe said overlapping activities between the TFTA and the AfCFTA needed to be harmonized. Kapwepwe, who is the chair of the TFTA Task Force, said closer co-ordination between the AU and the regional economic communities will be key to successful implementation of both agreements. “The narrative of the regional economic communities being the building blocks of the ACFTA should be promoted to ensure complementarity,” she said. Source Apa News

Utilise Beira Corridor

ZAMBIAN importers and exporters should heed the advice by Mozambican Ambassador to Zambia Jeronimo Chivavi to use the port of Beira for ease of transport of goods across the two countries. Mr Jeronimo said Beira is secure as there are no thefts of cargo and is the shortest route to the sea. The advice by ambassador Jeronimo is timely as Zambia is deepening economic diplomacy and people in business should take advantage of every opportunity that beckons. Zambia has traditionally used the ports in Dar es Salaam, Tanzania, Durban, South Africa and Walvis Bay in Namibia for exporting and importation of goods. Yet, in terms of distance, the port in Beira is shorter and will make business sense for exporting and importation of goods from overseas, especially from Asia. Beira is 1,300 kilometres from the Chanida border post in Katete and 1,900 kilometres from the capital city, Lusaka. Using the Beira port will also spur trade between Zambia and Mozambique. The volume of Zambia’s trade with Mozambique is low, yet these neighbouring countries have enjoyed bilateral relations for over 40 years. Zambian traders should take advantage of Beira, the fourth largest city in Mozambique which lies in the central region of the country in Sofala Province where the Pungwe River meets the Indian Ocean. Trade should become an integral part of Zambia’s economy and a significant tool for economic modernisation. The appeal by the Mozambican for the utilisation of Beira’s port facilities ties in well with Government’s commitment to facilitating...

TradeMark Africa, COMESA Open A New Chapter Of Cooperation

TradeMark Africa (TMA) and the Common Market for Eastern and Southern Africa (COMESA) have opened a new chapter of cooperation on regional integration programmes following a high-level meeting between the parties in Lusaka. The TMA team, led by its Board Chairman Erastus Mwencha, who is also former COMESA Secretary-General and immediate Deputy Chair of the African Union, comprised of the Chief Executive Officer Frank Matsaert among others. COMESA Secretary General Chileshe Mpundu Kapwepwe led her team flanked by the Assistant Secretary-General (Programmes) Dr Kipyego Cheluget and other senior officials. Mwencha said TMA already works closely with East African Community institutions, national governments as well as the private sector and civil society organisations to boost trade. “The main purpose is to increase trade by unlocking the economic potential of Member States’ increased physical access to markets, enhanced trade environment and improved business competitiveness,” he said. In his brief to the Secretary-General, Matsaert said: “TMA has diagnosed the problems in the North and Central corridor and has come up with a program now in its second phase with an initial investment of $2m.” He added that TMA’s biggest programs have been in the ports of Dar-e-Salaam and Mombasa focusing on infrastructure upgrade to raise productivity. Additionally, TMA has registered success in coordinating and integrating border management systems, automation, cargo tracking, reduction of non-tariff barriers and harmonizing standards on a national and regional level. Matsaert stated that the company closely works with the private sector particularly the small-scale traders at each country level....

TradeMark Africa Earmarks $2M to Empower Women in Logistics

rademark East Africa (TMA) has earmarked $2million for the next three years to support women in the logistics and transport sector in the East African Community countries. According to Sandra Kirenga, an Economist at TMA, the funds will be used to establish a secretariat that will develop strategy on mainstreaming gender in the logistics sector. “The fund will also be used to train women in leadership to become agents of change, do research on challenges facing women and how they can be addressed; develop a guideline for gender equality best practices and also engage educational institutions on available opportunities for women in the logistic sector,” she said. “The fund will also be used to organize regional logistics awards that will be aimed at promoting women in the logistic sector.” According to a survey that was done by the Federation East Africa Freight Forwarders Association (FEAFFA) with funding from TMA on 97 logistics companies in East Africa, Only 19% of all the employees in the companies are women. “Even the small percentage that is employed in the logistics sector is being unequally treated compared to their male counterparts. They are paid less for the same jobs, they are sexually harassed and work in unconducive environment with no security,” Kirenga said. The Gender project, she said, will start in Kenya with $600,000 dollars already secured from TMA funders and will be expanded to other East African countries. Kirenga revealed this during a panel discussion on ‘Mainstreaming Women in Logistics’ during the Global...

Mombasa port upgrade boost to trade, says Uganda

The Ugandan government says the improvement of the Northern Corridor and expansion of the port of Mombasa have enhanced its trade with Kenya. Uganda Consulate in Mombasa Katureebe Tayebwa on Tuesday said the two countries are enjoying the benefit of the infrastructural developmental being undertaken. “When Kenya is doing well, Uganda is doing better and what we have so far achieved is commendable through the development and improvement of the corridor and the port,” said Mr Tayebwa. Speaking during a press briefing at the consulate offices in Nyali, Mombasa, Mr Tayebwa said since Kenya is the gateway to Uganda, it is only through infrastructural improvement that the two countries will economically prosper. “Over 80 per cent of our imports and exports as a country go through the Mombasa port and that should tell you how much important the port is to us and the value we give it,” said Mr Tayebwa. The government has focused on construction of major roads along the corridor and expansion of the port. The projects consist of bypasses and expansion of roads all the way from Mombasa to Nairobi and parts of the corridor. The Port of Mombasa has been outlining its plans to handle two million containers annually by 2022. Currently, the port handles 30 million tonnes of cargo annually and the KPA wants to increase it to 45 million tonnes in the next four years. Some of the huge infrastructural projects KPA is also undertaking include the ongoing construction of the Lamu port,...

KPA bets on Sh120bn expansion to retain regional hub status

The Kenya Ports Authority (KPA) has engaged in an ambitious Sh120 billion expansion in a bid to protect its position as the region's biggest port facility. Speaking in an exclusive interview with Shipping, KPA managing director Daniel Manduku said the organisation is seeking to fight competition from the port of Dar er salaam. Currently KPA is undertaking the construction of the Sh20 billion Shimoni port, the Sh40 billion new Kipevu Oil Terminal, the construction of the Sh30 billion second container terminal at the Port of Mombasa and the construction of the Sh30 billion Dongo Kundu free trade port. Reports indicate that importers from Rwanda, Uganda and Burundi and other Great Lakes region countries are slowly shifting to the Port of Dar es salaam. "Everyone looks for good business opportunities and we know that the Rwandan market is growing," said Dr Manduku. He said Tanzania is an alternative corridor for importers in the Great Lakes region, and Kenya has no choice but to be competitive. "...being in the East African region and being alive to the fact that we have alternative corridor puts us in an awkward position because now we must constantly be ahead of the game,” said Dr Manduku. The MD disclosed that the building of the Sh20 Shimoni Port along the Kenya/Tanzania border is awaiting the public partnership approval. The fishing port of Shimoni is one of the 11 small facilities that KPA wants to develop countrywide in an ambitious multi-billion shillings programme Dr Manduku said the construction...

EDITORIAL: Tackle trade rows promptly

Recently, the permanent secretary in the Foreign Affairs and East African Cooperation ministry, Prof Adolf Mkenda, lamented that Kenya had slapped a ban on rice imports from Tanzania, noting that the ban is allegedly on account of the commodity’s low quality and packaging, Prof Mkenda said Tanzania has demanded an explanation over the ban, which suggests that a new trade tiff is brewing. The ban comes a few months after President John Magufuli and his Kenyan counterpart, Mr Uhuru Kenyatta, intervened to get their ministers in charge of East African Community (EAC) affairs to resolve an earlier trade dispute. Indeed, there are unresolved trade concerns between Tanzania and Kenya, and this latest only adds to the woes. But as good, old members of the EAC, we need each other in the regional integration stakes – along with the other four EAC member states, namely Uganda, Rwanda, Burundi and South Sudan. So, tit-for-tat decisions should be avoided in the best interests of our peoples and economies. Indeed, such developments do not augur well for EAC cooperation and economic integration. And, in that regard, the relevant authorities must always seek to address contentious issues promptly, amicably and conclusively. Source The Citizen

Kenya Looks to the EAC to Work Out Trade Issues

Kenya has turned to the East African Community (EAC) Secretariat to resolve increasing trade conflicts with some member countries according to the Standard. Adan Mohamed, the EAC and Regional Development Cabinet Secretary said the executive arm of the EAC should be able to resolve instance when member countries fail to reach an agreement with regards to non-tariff barrier challenges. “The biggest issue is the interpretation of rules by officials at the border. To solve this, we want a different approach where the secretariat takes a leading role in resolving the issues rather than members resolving disputes among themselves,” he said Trade Barriers The Kenya Association of Manufacturers (KAM) chairman Sachen Gudka said in spite of the attempts being made to work out a trade disagreement where Uganda and Tanzania imposed a duty on confectionery and sweets in Kenya with some products being prohibited from entering the two countries. Tanzania has also imposed a 25 per cent duty on duty-free sugar imports, a situation that is frustrating Kenyan manufacturers. What’s more, CS Aden said that the conflicts also touch on taxes on cigarettes and textiles. This has led Kenya to invite the two countries to inspect countries manufacturing ice cream, cakes, and other confectioneries using industrial sugar. KAM members have also held meetings with Tanzanian officials to solve long-standing trade issues such as “lack of preferential status on edible oil products, cement and lubricants.” Tanzania is also charging Kenyan business people $500 for work permits amid a supposedly intentional delay to issue Sylvia...