Kenya and Tanzania have agreed to put an end to trade dispute, preparing for an increase in intra-East Africa Community (EAC) trade. Both countries have had a bumpy trade relation in the last few years, dropping Kenya's exports to Tanzania by 60 percent in the first six months of last year. Chris Kiptoo, the Principal Secretary in the Ministry of Trade for Kenya and Elisante Ole Gabriel, the Permanent Secretary in the Ministry of Trade for Tanzania said "We have agreed to resolve the none-tariff barriers." They also said: "The two Partner States recognized each other as significant trading partners and underscored the importance of ease of market access for each other's products and services." Source: Menafn

Importers could clear their cargo arriving through the port of Mombasa in six hours following the amendment of the East Africa Community Customs Management Act (EACCMA). The Act if implemented by the Kenya Revenue Authority (KRA) will allow for advance cargo profiling, which will enable direct loading at the port for containers headed to the Inland Container Depot (ICD) in Nairobi through the Standard Gauge Railway (SGR). It is among a new raft of incentives the Government is throwing at importers who have stuck to trailers a month since the SGR cargo service was launched. Weekend Business last week pointed out the long time of upto a month taken to clear a container headed to the ICD as among reasons the SGR cargo service has failed to roar to life. Truckers charge between Sh60,000 and Sh80,000 to ferry a container loaded with cargo from the port to Nairobi while the SGR charges Sh30,000. KRA says it is committed to clear properly documented cargo within six hours to ensure seamless facilitation from the port to the ICD for release of cargo. The ICD has a cargo handling capacity of 180,000 20-foot equivalent units (TEU) per annum and is being expanded to increase this to 450,000 TEU. It has, however, been starved of cargo since it was launched at the end of last year. Commissioner of Customs and Border Control Julius Musyoki says that ability to profile cargo in advance will enable lodgment of manifest on departure by vessel from last port...

The UN specialized agency on civil aviation on Thursday hailed the East Africa Community (EAC)'s aviation safety record. Barry Kashambo, the regional director for Eastern and Southern Africa at the International Civil Aviation Organization (ICAO) told an aviation forum in Nairobi that the high standards has been validated by the continued progress in the ICAO safety audits taken in the last four years. "Four out of the five audited EAC states are among the 12 that are above 60 percent effective implementation score in the Eastern and Southern Africa," Kashambo said. "This translates in 80 percent of the audited states being above the Abuja target of ensuring that Africa's aviation accident rate be in line with global average by end of 2015," he said during the occasion of the official opening of the fourth EAC Symposium on Aviation Safety. The two-day symposium was organized by the Kenya Civil Aviation Authority (KCAA) in collaboration with the Civil Aviation Safety Oversight Agency (CASSOA), the administrative agency of the East African Community (EAC) that focuses on safe and secure development of aviation in the region. The regional aviation conference brought over 300 delegates from East Africa and across the world to review ways to improve aviation safety in the EAC. Kashambo said ICAO shares the region's desire to build resilient state aviation oversight systems that will ensure protection of the lives of the traveling public. He noted that the target of improved safety can only be achieved if the region fulfills certain prerequisites...

Passengers travelling between Nairobi and Mombasa are set to pay nearly double for rides on the Standard Gauge Railway (SGR) in a new fare regime to be effected in April. Travellers on the economy class will cough up Sh1, 200 up from the current Sh700. Those on the First Class, currently parting with Sh3, 000, are also set to pay more when new fares will be announced as SGR marks its first anniversary in May. SGR economy fares had initially been priced at Sh900 one-way between Mombasa and Nairobi before the government adjusted it downwards to a promotional Sh700 to stimulate consumer traffic. It has, however, emerged the subsidised SGR fares are inadequate to meet the train’s operational costs and its loan obligations to the China Exim Bank. Speaking exclusively to K24TV, our sister station, Kenya Railways managing director Atanas Maina said the current pricing is not sustainable hence the need for a review. He said the operator is still consulting on fares for different classes, with base expected to be around Sh1, 200. With the anticipated fare hikes, the train service will rake in a double their current revenues. The government hopes new fares will enable it to pay the China Exim Bank loan, which financed the first phase of SGR between Mombasa and Nairobi at a cost of $3.8 billion (Sh387 billion). As the operator reviews fares it also intends to improve consumer experience and boost amenities along the route. “There are still a few things we need...

Back in 1999, under what is known as the Yamoussoukro Decision, African countries planned to free their skies for air travel. Last Sunday the African Union (AU) took its first big step towards this goal, launching the Single African Air Transport Market (SAATM). The landmark announcement unveiled by Rwandan President Paul Kagame, the new chair of the AU, aims to transform intra-African air travel, lower prices and increase connectivity. The initiative has 23 signatories. There are 32 AU members still to come on board. Take off for African aviation Opening up the continent's skies could be a huge coup for African airlines, which would work under a common regulatory framework. It could also benefit intra-continental travelers who are often bound to illogical and time-consuming routes via Europe and the Middle East when flying between African countries. The agreement will also hope to increase the continent's global share of the aviation industry. The total population of Africa accounts for around 17% globally, but the continent's proportion of air travel passengers varies between 2-4%. In a statement, Rapahel Kuuchi, Vice President for Africa at the International Air Transport Association (IATA) said: "Greater connectivity will lead to greater prosperity." "An IATA survey suggest that if just 12 key African countries opened their markets and increased connectivity an extra 155,000 jobs and US$1.3 billion in annual GDP would be created in those countries." The approach follows in the footsteps of similar single market aviation agreements such as theEU's Internal Market for Aviation, which are generally recognized to...

The governments of Kenya and Tanzania have downplayed reports that there is bad blood between the two on trade. There are reports that Tanzanians have been tough on Kenyan traders with the most recent incident being that of Tanzania authorities burning live chicken imported into their country from Kenya. There is also an incident where over 10,000 head of cattle belonging to Kenyans were auctioned by President John Magufuli’s administration. PS for International Trade Chris Kiptoo and Tanzania trade Permanent Secretary Prof Elisante Ole Gabriel jointly agreed there are no trade barriers between the two nations. Kiptoo however said there has been a decline in business between Kenya and Tanzania since 2012. Kenya was making over Sh46 billion in trade with Tanzania, while the Tanzania was making over Sh20 billion trading with Kenya. “Last year, Kenya made Sh34 billion and Tanzania made Sh13 billion in trade between the two countries. The business was in favour of Kenya, but as you can see it has been on a decline since 2012,” said Kiptoo. “This is why we are here today to discuss some of the trade barriers.” Tanzania is Kenya’s number two in trade after Uganda, but non-tariff trade barriers have been affecting business. “It is the responsibility of the political leadership in the respective countries to make a favourable environment for trade and investments. That is why we are here to engage,” said Gabriel. He said they have agreed that there be no sudden changes to trade laws and regulations...

Kenya is among 23 countries in Africa that launched the Single African Air Transport Market (SAATM), a move expected to lower air transport costs in the continent by 25 per cent. The open skies treaty which was signed on Monday at the just concluded African Union Summit on governance in Addis Ababa, Ethiopia is set to make it easier for Africans to visit African countries without the hassle of long paperwork-laden visa applications or expensive, long-winding air travel and will inadvertently boost the continent’s economy. According to the International Air Transport Association, an open air policy in Africa will add $1.3 billion (Sh136 billion) to the continent’s gross domestic product every year and create 150,000 additional jobs. In Kenya, the opening up of African air routes will add $76.9 million (Sh8.14 billion) to the country’s GDP every year while giving the national carrier, Kenya Airways unfettered access and multiple destinations to any city in the countries under the arrangement, as part of African Union’s move to improve connectivity and integrate countries Currently most countries in Africa are applying protectionism policy to safeguard their domestic carriers from competition, denying regional flights fifth freedom right. KQ for instance cannot stop in Kigali Rwanda to pick customers Other regional airlines that are set to benefit from the treaty includes: Ethiopian Airlines, RwandaAir and South African Airways, this even as statistics show that 80 per cent of air travel from Africa to the world is controlled by non-African Airlines. “We have seen 23 member...

A trade initiative is helping mid-size businesses tap opportunities there. A Kerala-based spices company recently started growing chillies in Rwanda, which is estimated to have increased the income of farmers there six-fold. A leather company from Tamil Nadu has set up a plant in Uganda producing one million pairs of shoes annually and is generating new jobs in both countries. And, 300 Ethiopian artists are getting handloom and handicrafts training in Bengaluru. These are just a few of the success stories that have been spun over the past two-three years by Geneva-based development agency International Trade Centre’s initiative — ‘Supporting Indian Trade and Investment for Africa’ (SITA). “We are looking at mid-sized companies which have less of a natural inclination to look abroad. Through the SITA initiative we are building bridges between India and East Africa by taking Indian companies to these countries to see with their own eyes what the opportunities are,” said ITC Executive Director Arancha Gonzalez, in a telephonic interview with BusinessLine. Investment flows worth $71 million and additional trade flows of $26.5 million have so far been generated between India and East Africa (with an additional $10 million in the pipeline) as part of the six-year project (2014-2020) funded by the UK’s Department of International Development. Gonzalez will be in India later this week and visit Jaipur, Chennai and Bengaluru to take stock of the progress made so far and prepare the ground for more partnerships. Multiple sectors The sectors being promoted include leather, spices, pulses, textile...

In a world looking increasingly inwards, Africa will need to make its own opportunities, writes Kingsley Makhubela. Changes in the global landscape require emerging markets to consider how they must shape their future. Many countries in the developed world have focused their efforts and resources inwards as a result of challenging economic times. There is a danger that a shift away from emerging markets will negatively affect the global economy’s ability to grow. This would not bode well for Africa, given its growing integration into the global economy in recent years. To mitigate this, Africa must take steps to secure its own share of global economic growth and African citizens must sustain the economic growth of the continent. The greatest opportunity to realise its growth potential is often overlooked — Africa’s ability to trade and do business with itself. What is required is an inward and outward strategy acting in tandem — outwardly cementing Africa’s place in the global economy through foreign investment and improved trading links while internally driving the integration of regional trade. It is no coincidence that Africa’s recent growth, epitomised by the label "Africa rising", was in part realised due to increased levels of foreign direct investment. Improvements in fiscal policies, governance and regulatory frameworks, along with a move to diversify away from commodities, presented greater opportunities to investors. If Africa is going to capitalise on this base, it needs to collaborate on a shared future. Africa’s development must be underpinned by further regional integration and...

Nigeria's SME-dominant market is poised to overtake Kenya and South Africa in terms of cloud adoption in 2018 says Adebayo Sanni, MD at Oracle Nigeria. The West African country has only recently emerged from its first economic recession in over two decades and the experience has forced businesses to review their IT spending strategies and relevant technologies – and this has set the scene for improved cloud uptake, he says. The company believes by 2025, 80% of IT budgets will be spent on cloud services, all enterprise data will be stored in the cloud and 100% of application development and testing will be conducted in the cloud. But the real impact of cloud is a true barometer of success, says Sanni. "Today, the Nigerian economy is bolstered by a thriving small to medium enterprise (SME) community that makes up over 90% of the market, with many engaging in business that can only be made possible through cloud technology." He adds that the government's vision to be one of the largest economies globally by 2020 is a key driver behind cloud adoption. Market growth Regional representatives at market analysis and research firm IDC anticipate growth in cloud services in 2018, driven by issues such as the increase in hardware prices and investment by top tier cloud providers in Africa. The company has stated that in South Africa up to 93% of companies are developing a cloud strategy and are either in the implementation or planning phase of their cloud journey. Liquid...