A leading global shipping line, Hapag – Llyod which is a multi-national German based transportation company, has began its operations to the port of Mombasa. Hapag Llyod is the world’s sixth largest container carrier in terms of vessel capacity. MV Spero Majura, which is a ship operated by Hapag – Llyod made its maiden trip to the East African region by calling at the port of Mombasa on Thursday 4:00am carrying 1,770 Total Equivalent Units (TEUs). Captain James Kagaoan, steered the vessel from the port of Jedda, which is the largest and busiest port in the Middle East, to Mombasa before heading to Dar-es- Salaam in Tanzania. At the port of Mombasa, the vessel discharged 154 TEUs. Kenya Ports Authority managing director Catherine Mturi-Wairi said the port of Mombasa is now receiving vessels from six of the top ten container shipping lines of the world. These are the Maersk Line, Mediterranean Shipping Company, CMA-CGM Lines, China Ocean Shipping Company (Cosco), Evergreen Shipping Line and now Hapag – Llyod. In a speech read on her behalf by KPA general manager engineering services, Rashid Salim during MV Spero Majuro’s maiden call, Mturi-Wairi said the port of Mombasa is tremendously growing. “The decision to have more shipping lines calling at the port is also a manifestation of the confidence the global shipping and business community has in the port of Mombasa,” Mturi-Wairi said. This, she said, has been the result of consistent improvement programmes that have been put under the Mombasa Port Development...

More strategic investment in Africa’s ports can accelerate growth and development by strengthening trade as these are gateways for 80 percent of merchandise trade by volume and 70 percent by value, globally. This is according to an analysis report of port development in sub-Saharan Africa (SSA) issued by the global auditing firm PwC on Thursday which stated that Africa needed to take advantage of the economic potential of its ports and shipping sector to realise its growth ambitions. “Globally, ports are gateways for 80% of merchandise trade by volume and 70% by value. Investment in ports and their related transport infrastructure to advance trade and promote overall economic development and growth is therefore vital, particularly in emerging economies that are currently under-served by modern transportation facilities,” the PwC report said. “However, port investment must be channeled appropriately to ensure financial sustainability and economic growth. Investment is not always about building new ports or terminals, investment spent on infrastructure without cognisance of the efficiency and effectiveness of the performance of the port may not produce the desired results.” Dr. Andrew Shaw, PwC Africa Transport and Logistics leader, said: “Ports are a vital part of the supply chain in Africa, with many ports having a far-reaching hinterland often spanning a number of countries, which makes them a natural focus for regional development. “In this report, we show that the global transportation and logistics industry can no longer afford to ignore developments in Africa. Logistics service providers and ports, in particular, will continue...

The port of Mombasa is lagging its regional hub competitors in southern and West Africa in expansion and efficiency, slowing down Kenya’s potential to reap from international trade volumes as a gateway to East Africa. Consultants at PricewaterhouseCoopers (PwC) say while the Mombasa port is ahead of other ports in the region such as Dar es Salaam and Djibouti, it’s trailing Durban in South Africa and ports in West Africa such as Lagos-Apapa and Abidjan. Kenya has positioned Mombasa as the hub port for East and Central Africa in line with global trend where giant shipping lines prefer partnerships with a few regional hub ports. Durban is the preferred hub port in southern Africa, while West African countries are investing heavily in expansion of their ports and roping private sector in operations in a bid to become preferred hub ports. “East Africa is, in context of Africa, the market that’s the least developed in respect of hub port development. We see a bit of a lag in East Africa in terms of investments within the ports and also potentially a lag in involving the private sector,” PwC Africa transport and logistics leader Andrew Shaw said in Nairobi on Thursday. Source: Business Daily

KIGALI, April 12 (Xinhua) -- Rwanda's Cabinet has endorsed the draft law ratifying the African Continental Free Trade Area (CFTA), paving way for parliament's ratification. According to minutes of Wednesday's cabinet meeting, the cabinet also approved Protocol on trade in goods, Protocol on trade in services, and Protocol on rules and procedures for settlement of disputes which were signed in Kigali, Rwanda, in March 2018. The African Continental Free Trade Area treaty is geared at increasing intra-Africa trade. Up to 44 countries signed the deal in Kigali at the last 10th Extraordinary African Union Summit of Heads of State and Government. The CFTA agreement will be adopted after being ratified by at least 22 countries. The CFTA is envisaged to establish a single liberalized market of 1.2 billion people. This is expected to spur trade, industrialization, infrastructural development, and economic diversification, according to economic experts. In the East African Community, Kenyan cabinet also in March approved the Africa Continental Free Trade Area treaty for ratification. Source: Xinhua News  

Kenya’s second-biggest infrastructure project since independence five decades ago, a $3.5 billion inter-city expressway, will be delayed amid concerns by lawmakers that East Africa’s largest economy is taking on too much debt, the company building it said. While Kenya is ramping up construction of much-needed infrastructure to underpin economic growth, the cost of the mega projects, mostly financed by Chinese loans, has stirred concern that the debt is unsustainable for the $71 billion economy. The nation’s debt could rise to 58 percent of gross domestic product by the end of June, from 40.6 percent in the 2011-12 fiscal year, according to World Bank estimates. Construction of the 473-kilometer (294-mile) four-lane highway between the capital, Nairobi, and the second-biggest city, Mombasa, will be undertaken by San Francisco-based Bechtel Group Inc., which has arranged commercial loans for Kenya to undertake the project. The country will not seek concessional financing or a public-private partnership, according to the company. The Kenya National Highways Authority wasn’t aware of any delay, public relations officer Charles Njogu said by phone. “The agreement has, however, to be scrutinized by lawmakers because of its size,” he said. Transport and Infrastructure Secretary James Macharia didn’t pick calls to his mobile phone nor respond to a text message seeking comment. Big Concern The financing arrangements for the toll road are now expected to be in place by end-June, the initial sod-turning target, and construction work will now begin in the second half of the year, said Andrew Patterson, Bechtel’s regional president...

Entrepreneur, and philanthropist, Tony O. Elumelu will lead a 5-day working visit to East Africa, where he will meet withnational leaders of Kenya and Uganda. In his capacity as Chairman of United Bank for Africa (UBA), Mr. Elumelu will travel to Uganda (April 10) and Kenya (April 12) to meet with the Executive Presidents of both nations, Uhuru Kenyatta and Yoweri K. Musevenito discuss issues around the growth and development of the their economies, enabling entrepreneurship, infrastructure financing, regional economic growthand how the private sector in Africa can work in shared purpose alongside African governments to create prosperity for all Africans. On the side lines of these engagements, the Tony Elumelu Foundation (TEF) will gather members of the full local ecosystem – from investors to academia to established and emerging entrepreneurs alike – for an entrepreneurship ecosystem event. During the event, TEF alumni and members of the vibrant Kenyan and Ugandan entrepreneurship communities will receive insights from guest speakers who will provide practical, practicable information to help the audience develop their businesses and their business management skills. Guest speakers include leaders from TEF partner Microsoft and other ecosystem players including Google. During the visit, Elumelu will also meet with key stakeholders and policy makers in the countries to discuss infrastructural funding opportunities, as well as interact with leading private and public sectors players. He will host a Founder’s Forum with students of Makerere University, Kampala and University of Nairobi, two leading African institutions. At this Forum he will give young Africans...

The search for a single East African currency is set to go a notch higher as the regional parliament prepares laws for setting up key institutions. The East African Legislative Assembly (Eala) has said its committees are using the three-week Dodoma sittings, which began on April 9 to collect views on the East Africa Monetary Institute (EAMI) Bill, 2017 and the Statistics Bureau Bill, 2017, which had earlier sailed through the first and second readings. The Monetary Institute Bill seeks to set up EAMI as an agency to initially perform the role of a regional central bank. It will be expected to craft policies required to back a single currency. The EA Statistics Bureau Bill will on the other hand create a regional agency akin to European Union’s Eurostat, charged with gathering data  to guide decision making within the EAC Monetary Union. The Eala’s Committee on Communications and Trade is currently engaging with stakeholders on the regional Statistics Bureau Bill while its General Purpose Committee is handling views on the EAC Monetary Institute Bill. The East African ministers, including Kenya’s Cabinet Secretary for East African Community and Northern Corridor Development Peter Munya, are among the stakeholders on queue to exchange views with the Eala committees. “The Council of Ministers for EAC is thus expected to meet with the committees to thrash out key matters on both Bills,” Eala said in a statement The two agencies are among the enabling institutions whose absence has delayed the region’s match to a single...

The creation of a continental free trade area across the African continent poses unique conflict of interest challenges for the signatories. Last month, African leaders descended upon Kigali, Rwanda, the Land of a Thousand Hills’ capital, to ink an agreement that is meant to smoothen the rough terrain of intra-African trade. Nearly 50 years after independence movements swept across Africa, the continent is still struggling to find its footing. The challenges are exacerbated by both the internal makeup of the countries and a shifting geopolitical environment. In 2014, African heads of state saw a rare invite to Washington by the Obama administration to discuss trade, investment and security. This was seen as a counterbalance to the growing Chinese influence on the continent; by 2014 China-Africa trade totaled $200 billion, up from approximately $100 billion during the 2008 financial crisis. With the chaotic and confusing nature of the geopolitical challenges and the continued courting of African countries by both Beijing, through the new and ambition Belt and Road Initiative, and by the Washington security gospel, Africa finds itself in a position where it has to define its fortunes. By 2010, trade between African countries was only 11%, compared to 50% within Asia, 21% in Latin America and Caribbean, with Europe leading at 70% of internal trade. The picture is not of a continent that less than 130 years ago had no artificial boundaries and where its people traded and migrated freely. The African Union has embarked on an initiative that is...

Ecobank Kenya Wednesday launched the Emerald Ecobank Business Club aimed at widening opportunities for its Small and Medium Enterprises (SMEs) customers by creating direct linkages between businesses operation in 33 African Markets with over 12.8 million customers. Members of the club will also get access to direct networking platforms, market information as well as business advisory services from the Ecobank, associated partners, external trade facilitation and preferential banking among others. The Emerald Ecobank Business Club will focus on bolstering intra-Africa trade leveraging on the Bank’s presence in 33 African markets enabling SMEs to leverage on Ecobank’s customer book to authenticate and vet trading partners across the continent. Speaking during the media launch, Ecobank Kenya Executive Director, Head of Commercial Banking Kenya & EAC Humphrey Muturi noted that the launch of the new Business Club is a wider strategy by the bank to grow SME sector by offering direct linkages and a seamless base of transaction for Kenyan businesses and their counterparts across the continent. “As a pan African bank, we recognize the pivotal role that emerging businesses play in our economy, thus our target is to empower our SME customers by availing networking opportunities across our network of 33 African countries to help them grow with us. Most SMEs here in Kenya and generally across Africa face capacity challenges either in terms of technical knowledge on how businesses operate across the continent or in terms of access to opportunities to forge partnership. Emerald Ecobank Business Club members will therefore in...

I am a concerned citizen who always travels across borders, but has failed to see the benefits of the East African Community. Recently, I travelled to watch the 2018 Safari Rally in Kenya in which Uganda sent two representatives (Jas Mangat and Duncan Mubiru). However, Ugandans were treated as if we were from another planet. From the border to all the rally sections, the moment Kenyan traffic police officers saw Ugandan-registered number plates; they would stop and hold you until you gave them money. They asked between KShs 500 [approximately Shs 16,000] and KShs 2,000 [approximately Shs 64,000]. I was personally stopped seven times; and on the eighth one, I complained and tried to confront them. They immediately took me to their express court where I was fined KShs 15,000 (about Shs 480,000). At the road block where they arrested me, I had all they asked for but one officer told me my vehicle was dirty! It had been raining from the time I left Jinja to Nairobi. Funny enough, when I reached the court, they changed the statement and said I did not have a safety reflector triangle. I hope EALA MPs, the minister of East African Community Affairs and respective embassies can look into this matter; otherwise, we are losing hope in the EAC. Keith Ssali Isaac, Deputy mayor, Nansana municipality. Ochola has started on a positive note Since the new inspector general of police, Martin Okoth Ochola, took over the mantle, changes have been made within the force....