As India marks its 71st Independence day ties between Africa and India increasingly strengthening as both parties seek mutually beneficial partnership largely through trade. Indian Prime Minister Narendra Modi recently said that the current India-Africa partnership includes implementation of 180 lines of credit worth USD11bn in over 40 Africa countries and USD600 million in grant assistance. Today India’s trade with Africa is over $62 billion with plans to increase this volume further. The Indian government says that they have taken a long-term view of its engagement with African countries by participating in existing institutions in order to support the continent’s drive to build itself from within. One such example is the Government of India’s recent decision to invest USD10 million in the African Trade Insurance Agency (ATI). The shareholding positions India as the first non-African government to become a member of the pan-African and multilateral investment and credit insurer with the expected result of boosting India’s trade with Africa. The Export Credit Guarantee Corporation of India (ECGC) will represent the government’s shareholding in ATI. ECGC’s most recent results show the company has $99 billion in exposures and it insures 32 per cent of India’s exports. ECGC has operated in Africa since the 1960s with plans to deepen its engagement in Africa. “India’s membership in ATI is a landmark development for a symbiotic relationship between the two fastest growing regions in the world. It is indeed a proud moment to be the first non-African state shareholder of ATI. This partnership will...

A noble effort to ensure Kenyans stop wearing mitumba clothes has come to a cropper after the government silently stopped companies in the Export Processing Zones (EPZs) from selling their products in the local market. After only two years of Kenyans flocking KICC and other centres to buy new top fashion brands like Victoria's Secret, Tommy Hilfiger and Calvin Klein at affordable prices, they are now back to mitumba with the halting of the EPZ ‘super sales’. The decision to bar EPZ products from the local market is a bizarre twist of events considering that President Uhuru Kenyatta had last year promised to increase their local quota from 20 to 40 percent primarily to restore the dignity of Kenyans, a majority of whom depend on second-hand clothes. DEMEANING In doing so, the President argued it was demeaning for Kenyans to export new clothes yet they end up wearing the same clothes as mitumba. The waiver to allow EPZ companies to sell up to 20 per cent of their products in the domestic market duty free and value added tax (VAT) free to promote consumption of locally manufactured apparel had been introduced in 2016 and was riding on the ‘Buy Kenya, Build Kenya’ mantra. However, a vicious battle in the local textile and apparels industry pitting EPZ companies, local manufacturers, importers and designers has forced the government to backtrack on selling EPZ products locally. Although companies operating within the zones are still allowed 20 per cent quota for the local market,...

NAIROBI, Aug. 15 (Xinhua) -- The East African Community member (EAC) states plans to develop a policy framework to address the human and animal health threat of aflatoxin contamination and boost food security, the economic bloc said on Wednesday. Christophe Bazivamo, Deputy Secretary General of the EAC, told a regional forum in Nairobi that aflatoxins from fungi are widespread in the region and cause contamination of staple foods such as maize milk and groundnuts in the field and during storage. "The EAC partner states will therefore develop policies to aid in the formulation and implementation of intervention programs to curb the spread of aflatoxins," Bazivamo said. The overall goal of the framework is to said to contribute to food and nutrition security as well as to protect human, animal and plant health. Bazivamo said to eliminate the threat of aflatoxin, the region needs to create awareness and sensitize high level policy makers and other key stakeholders on the necessary policy action and interventions to mitigate impacts of aflatoxin. According to Bazivamo, the control of aflatoxin will enable the EAC to expand intra-regional trade in the agricultural products. He said a comparative analysis of trade-related impacts of aflatoxin indicate that export destinations such as the EU have rejected agricultural commodities from the region leading to huge losses. He urged the member states to focus on preventive measures given that disposal of aflatoxin-contaminated food can be a costly and time consuming affair. Mwangi Kiunjuri, Kenya's Cabinet Secretary in the Ministry of Agriculture,...

NAIROBI, KENYA: Pressure is pilling on Tanzania and Burundi to ratify tax harmonisation agreement signed eight years ago to boost trade among East African Community partner states. East African Business Council noted that slow pace in ratifying the document makes it difficult for Kenya, Uganda, and Rwanda to implement the agreement which would make it attractive for businesses to expand operations in East Africa. “We have witnessed a decline in intra-trade among the Partner States as many companies shy away from expanding within the region due to the fear of double taxation, this needs not to be the case as we have a document to address all these,” said Adrian Njau, East African Business Council Trade and Policy Advisor. “The EAC business community eagerly awaits harmonisation of domestic taxes in EAC and hopes to see in harmonization removal of tax distortions that hamper efficient allocation of resources within the Community and come in the way of free movement of goods, services, labor, capital, and investments within the Community,” he added. The East African Business Working Group on domestic taxes identifies several challenges in tax harmonisation among them reluctance of Partner States to move with speed and finalize the legal framework for tax harmonisation, and fear by governments that tax harmonization may deplete revenue base especially in the case of excise. Other challenges are reluctance by stakeholders to provide data that would enable the working group and government stakeholders to quantify the actual impact of tax harmonisation, Strong lobby by some...

Dubai-based ports operator DP World would have done well to beware the ides of March. This was the month in which the governments of both Djibouti and Somalia kicked out the state-owned entity. The two separate quarrels over infrastructure deals have origins and ructions that go far beyond the ports themselves, reflecting a complex network of shifting regional alliances, geopolitical manoeuvres by influential powers in the Middle East and North Africa, and the potential for profit – and corruption – such large projects invite. In February, after six years of conflict, President Ismaïl Omar Guelleh’s government in Djibouti took over the Doraleh Container Terminal (DCT) that it had built in a joint venture with DP World. Djibouti complained about the commercial terms of the contract, saying that it was lopsided in the Emiratis’ favour. The government is now looking for new investors. It recently hosted delegations from CMA CGM and Pacific International Lines, and has received attractive offers from its allies in Ethiopia. Aboubaker Omar Hadi, president of the Djibouti Autorité des Ports et Zones Franches (APZF), complained to our sister magazine Jeune Afrique about the long and difficult divorce with DP World. He said: “For six years, we tried to renegotiate the contract without success. In February, we proposed buying out their shares of Doraleh Container Terminal. They were about to accept, but they insisted that we should not develop any other ports in the country. It was a blatant attack on our sovereignty.” In April, President Guelleh told...

The Port of Mombasa plans to increase the number of containers it handles to two million Twenty Foot Equipment units (TEUs) by 2022. Last year, the port handled 1.2 million TEUs and targets 1.3 million this year. The increase in volume of cargo at East Africa’s biggest port will result in a rise in revenue from Sh50 billion netted in July alone to about Sh100 billion monthly. Before major changes were initiated at the port to ensure efficiency following the appointment of Kenya Ports Authority (KPA) acting managing director Daniel Manduku, the port netted about Sh30 billion monthly in revenue. In 2017, the port handled 30 million deadweight tones of cargo, up from 21 million in 2012. Dr Manduku is however upbeat that the volume will hit 45 million tones in the next four years to achieve the Sh100 billion revenue. The envisaged two million TEUs of cargo annually, he said, will enhance KPA operations. In its port performance programmes released last week during a stakeholders round-table and cocktail on Vision 2030 at English Point Marina in Mombasa, delivery board chairman James Mwangi said the facility had recorded tremendous growth in container traffic and cargo volumes. “In 2012, the port handled 900,000 TEUs and by the end of 2017 it had handled 1.2 million TEUs, an increase of about 32 per cent. Cargo volume in deadweight tonnes also increased from 21 million in 2012 to 30 million in the same period,” said Dr Mwangi. Dr Manduku said improved cargo clearance...

Financial support from Germany to the East African Community (EAC) would from now largely focus on improved trade integration of the bloc. Another key priority would be on technical cooperation, it emerged during last week’s talks between the two sides. “The cooperation will continue in many areas with more focus on implementation to achieve tangible results”, said Dr Kirsten Focken, the cluster coordinator of GIZ-EAC Programme based in Arusha. She said during a meeting to plan the next phase of development support to EAC by the European economic powerhouse that new projects have to benefit regional integration. “We have to come up with clear and smart project objectives, outputs and indicators for the next phase of cooperation,” she said. The fourth phase of the multimillion euro EAC-GIZ Support Programme comes to an end in the middle of next year. The planning process for a new phase of the programme started last September with a series of appraisal meetings by the consultants. EAC deputy secretary general (Productive and Social Sectors) Christophe Bazivamo said the long-standing German support to the bloc’s integration would continue. “Implementation of the Customs Union and continued implementation of the Common Market will remain the core areas of support and cooperation,” he told the meeting. The support in the next phase of the programme would focus on economic sectors through regional cooperation and improved trade integration. According to the EAC secretary general, Amb Liberat Mfumukeko, Germany had supported the EAC to the tune of 290 million euros in...

Few modes of transport evoke such a sense of history and romanticism as rail. The first recorded use of rail transport was around 500BC, when ancient Greeks used a rail-like system – most likely powered by humans or horses – to carry boats across where the Corinth channel currently is. In the 1400s, German miners used wooden railways that were pushed by hand or pulled by horse. After the first iron rails were introduced in England in 1767, it took less than 40 years before Richard Trevithick built the first steam locomotive, also in England. In 1830, the world’s first regular steam passenger rail service was inaugurated by the Canterbury & Whitstable Railway. Africa’s first network of railways was started in Alexandria, Egypt in 1852. By 1860, South Africa had launched its first steam train, running from Central Durban to the Point, and by 1897 a railway line between Cape Town and Bulawayo in Zimbabwe was completed. In the early part of the 20th century rail lines were being constructed across the continent, connecting cities and countries in North, East, West and Southern Africa. Today, fast-growing economies across the continent are upgrading antiquated rail infrastructure to support improved regional trade and mass local transit. However, according to the African Development Bank, the poor condition of rail infrastructure and rolling stock in many African countries is undermining the potential of rail systems to contribute to economic development. Critical priorities for rail development in East Africa Governments and rail operators are responding...

Regional coffee growers, exporters and sector policy makers are turning their focus to domestic consumption, a move they say is intended to cushion them against fluctuations on the international market, which sometimes adversely affects their incomes. They were speaking Friday at the official launch of the 17th African Fine Coffee Conference and Exhibition (AFCC&E) in Kigali. The event is running under the theme, 'Specialty Coffees at the Heart of Africa', and it is focusing production and marketing of high quality coffee. The event was organised by African Fine Coffees Association (AFCA) and Rwanda's National Agricultural Export Development Board (NAEB). About 2,000 people are taking part in the event, including coffee producers, exporters, roasters, policymakers and buyers from around Africa, the Americas, Europe, among other parts of the world. Samuel Kamau, the Executive Director of African Fine Coffees Association, said: "Local consumption is our future because we have to be self-sufficient. We cannot rely on donations. It creates the first base market for our farmers, so they do not have to worry about international prices going down." "For countries like Ethiopia, the prices on the international market are normally better than those on the international market. The international market has to pay more because (international consumers) are competing with the local people". Regional countries, he observed, can tap into the African Continental Free Trade Area, a deal signed in Kigali earlier this year with view to liberalise intra-African trade. "For instance, we want Rwanda to trade with Kenya, with Uganda and...

Non-tariff barriers remain the toughest headache for Comesa member states, and must be handled to clear way for free trade in Africa. Comesa Secretary general Chilese Mpundu Kapwepwe said there are also a number of sensitive products which member countries would not prefer to have tariffs removed, hampering the process to smooth harmonization of trade laws. “Once the restrictive barriers are harmonized, it will increase intra-trade among member countries,” she said on the sidelines of the heads of customs sub-committee meeting which ends today. The Tripartite Free Trade Area which should ideally harmonise the various trade groupings, has so far been ratified by 22 of the 26 member states of Comesa, East African Community and Southern African Development Community (SADC). The tripartite FTA brings together a population of 700 million people with an estimated Gross Domestic product of well over $1.4 trillion (Sh 140.9 trillion). It is looking to leverage on working recommendations for digital trade to see progress in the TFTA and the whole Comesa region. Identification, removal and monitoring of Non-Tariff Barriers to trade by the Member States in the Tripartite Community is one of the priority areas for policy harmonisation and coordination under the Tripartite framework. The two-day meeting is part of efforts for the 22 member states to give guidance and coordinate regional and national customs procedures and specifically customs related issues. The medium term strategic plan is focused on improving customs co-operation and trade facilitation to simplify and enhance automated and digitalized customs systems. Among...