DAR ES SALAAM, Tanzania - The Port Management Association of Eastern and Southern Africa (PMAESA) and the African Media Initiative (AMI) have agreed to work together to raise awareness on the maritime economy through media related activities. The agreement was made following a visit by PMAESA Secretary General Ms Nozipho Mdawe and Head of Communications Mr. George Sunguh to the AMI headquarters in Nairobi recently. The PMAESA delegation met the AMI management team including Eric Chinje Chief Executive Officer, Wagethi Mwangi, Senior Advicer and Meredith Beal Technology Advisor. The meeting discussed possible areas of synergy between the two organizations in raising the profile of the maritime economy and related activities on the continent. Knowledge of the sector remains extremely low in Africa and the dissemination of information on the maritime sector has been a challenge as few journalists understand the sector. AMI and PMAESA will work to bring together leaders in the media industry and the maritime sector in Africa to discuss how the media can best inform citizens on opportunities present in the maritime economy. The African maritime sector remains under reported despite its enormous potential for transforming the continent’s economy hence by creating better linkages between the media and maritime economy stakeholders, AMI and PMAESA hope to spur improvements in the governance of the sector and to encourage a harmonized vision for an African maritime economy through a sharing of knowledge. Speaking during the courtesy call, Chinje said the maritime sector has deep significance for African populations in...

East African economies are looking to benefit from increased trade with the rest of the world following the extension of the 146-year-old Suez Canal in Egypt. The regional bloc has been receiving growing volumes of cargo — from 3.28 million tonnes in 2004 to 4.36 million tonnes in 2014 —through the canal. Official data from the Suez Canal Authority shows that the highest volumes were in 2006 (5.12 million tonnes) and 2008 (5.91 million tonnes). This cargo originates from countries in Europe, the UK, America, through the Black Sea, the Baltic Sea and the Mediterranean. The volume of cargo from the EAC to these countries through the canal however declined by 617 per cent from 14.83 million tonnes to 2.06 million tonnes in the same period. Products passing through the canal include petroleum and related products such as crude oil, gasoline, gas oil and diesel oil, fuel oils and liquefied petroleum gas (LPG). Other goods are cereals, fertiliser, fabricated metals, chemicals, coal and coke, foodstuffs, machinery and parts, ores and metals, oil seeds and vegetable oils. From January to June, the volume of cargo passing through the canal to East Africa increased 80 per cent to 458,000 tonnes from 254, 000 tonnes. On June 10, Cairo hosted 26 heads of state representing the Common Market for Eastern and Southern Africa (Comesa), the EAC and the Southern African Development Community (Sadc) at the official launch of the Tripartite Free Trade Area (TFTA). The TFTA is expected to increase trade in an...

Kenya is reviewing its law on importation of animal products to enable its traders to gain access to the Ugandan market. Uganda had rejected Kenyan beef and animal products because Kenya did not have restrictions on imports from countries once affected by Mad Cow Disease (BSE). A Bill to review the law is in the third reading stage in the Kenyan parliament. Whereas Ugandan law prohibit importation of beef and animal products from ex-Mad Cow countries, Kenyan laws only bar imports from Europe while the port of Mombasa receives imports from all over the world. “We expect that parliament will expedite the passing into law of the Bill for our traders to start entering the market soon,” said a Kenyan government official. Kenya exports beef mainly to the European Union. Other markets are Egypt, Malaysia, Qatar, Iran, the United Arab Emirates, Uganda, Democratic Republic of Congo, South Africa and Mauritius. At the recent bilateral trade meeting in Kampala, Kenya said it had also stepped up the fight against livestock diseases with the creation of disease-free zones so as to meet the required sanitary standards in the Laikipia-Isiolo complex and at the Coast. It has borrowed the zoning concept from Botswana, one of Africa’s leading beef exporters. Uganda banned Kenyan beef in 1997, claiming it did not meet the required standards. Earlier attempts to resolve the issue through bilateral talks had failed. The EAC Secretariat had earlier indicated that the resolution of the dispute would require political goodwill owing to pressure...

Kenya and Uganda are betting on more oil discoveries in the region to increase earnings from a crude oil pipeline that will connect the oilfields in Uganda through northern Kenya to the international market. The pipeline is expected to connect to export markets via the proposed port at Lamu. Estimated to cost $4.7 billion, the pipeline will have an initial capacity of 300,000 barrels per day, earning the joint pipeline company about $1.66 billion a year. The two countries will share the money depending on the volume of cargo passing through each. The route the pipeline will follow has been contested by Uganda and oil companies, which preferred an option through Nairobi for fear of insecurity in northern Kenya. Northern Kenya is prone to cattle rustling. The Kenyan government favoured the consensus route for its potential to open up the underdeveloped Turkana region, where Tullow Oil has discovered vast quantities of oil and its linkage to the Lamu Port South Sudan Transport (Lapsset) Corridor, which will link up to Juba and Addis Ababa. Studies also favoured the northern route for two key reasons: The route through Nairobi would, at $5.4 billion, have been more expensive because of passing through hilly terrain that requires more pumping. By passing through densely populated areas it would have required more funding for compensation of displaced people and their investments. It would also have been slightly longer, by 44 kilometres. The northern route, which will pass through gentle terrain and involve less disruption of settlements...

Nairobi hotels are set to benefit from yet another major boost when an estimated 5,000 delegates congregate in the capital for the World Trade Organisation (WTO) meeting. Kenya will host the 10th edition of WTO’s Ministerial conference in December, which comes just five months after US President Barack Obama’s July visit boost the hoteliers. The event, to be held at the Kenyatta International Conference Centre, is expected to attract delegates from 100 countries. During the pre-event briefing session held in Geneva, Switzerland, the WTO member states were represented by over 300 delegates, many of who are expected to be in Nairobi. ‘We are certain that our joint efforts will translate to converting the delegates to tourists during the pre and post conference events,” said Kenya Tourism Board CEO Muriithi Ndegwa in a statement. Kenya won the bid to host this year’s edition after Turkey dropped out of the race. The ninth edition of the biennial event was held in Indonesia in 2013. Source: Business Daily

The government will implement a raft of measures to revive Kisumu and make it the commercial capital of the East African Community, President Uhuru Kenyatta has said. Uhuru said the Northern Corridor Integration Projects Summit will be held in the town to demonstrate the government's seriousness about elevating it. "I will talk to the presidents of our neighbouring countries so that we hold the Northern Corridor Integration Projects Summit here in Kisumu," he said. Thousands of residents lined up Oginga Odinga Street as he drove through the town on Friday after hosting the Kenya National Music Festival Winners' Concert at the Kisumu State Lodge. Uhuru, who got a rousing reception from residents of the town, was accompanied by Kisumu Governor Jack Ranguma, Kisumu Central MP Ken Obura and Kisumu East MP Shakeel Shabbir. He made two stopovers to address residents, saying the government will undertake measures including reviving industries in the town to create more jobs and wealth for the residents. Uhuru said cotton growing in the region will be revived so that Kicomi factory can be reopened. He said the shipping line that used to operate from Kisumu serving ports on Lake Victoria in Tanzania and Uganda will also be revived. More issues concerning efforts to revive the city's economy were discussed in a meeting among theUhuru, Ranguma and two Kisumu MPs. Uhuru also announced that the National Youth Service will start upgrade projects in Manyatta Slum, following the launch of similar projects in two other slums in the...

Kenya is set to become a hub for intra-regional trade in Africa, according to a new report from Frost & Sullivan. An estimated $55.6 billion in investments in infrastructure development for Kenya is planned, the majority of which will focus on telecommunications and power generation infrastructure, according to the report. Mega infrastructure projects are also planned for elsewhere in East Africa and are set to create unique opportunities and open new markets in Kenya, Uganda, and Ethiopia, the report said. Industry sectors expected to benefit from the planned infrastructure developments include oil and gas, mining, agriculture, and retail. “Transport infrastructure has undergone major upgrades over the past five years in order to support the high trade demand in the East African region,” said Craig Parker, senior economic consultant at Frost & Sullivan. “The Nairobi Southern bypass, for example, was commissioned in 2012 and is already 40 percent complete.” Major road projects that are currently underway were established to alleviate the severe bottlenecks and traffic congestion. An estimated $5.14 billion has been dedicated to road project investment in Kenya. The Nairobi Southern bypass, a freeway in Kenya’s capital, is meant to ease congestion and increase speeds on local roads. The project was 85 per cent funded by China’s EXIM Bank; the Kenyan government provided the remaining 15 per cent. However, disputes and illegal occupation of land in areas where infrastructure projects are underway, or are about to take place, have resulted in high relocation costs. This will culminate in delays along...

The Kenya Revenue Authority has reversed a directive compelling Kenyan traders to declare shipments to the east African market through its Simba system, ending a month of uncertainty. The withdrawal of a directive issued to exporters and clearing agents last month took effect on Friday. “All such goods will now be declared under the Single Customs Territory procedures only”, Mr Julius Musyoki, KRA’s acting Commissioner of Customs and Border Control, said on Friday. The taxman on July 2 ordered traders servicing the EAC markets to declare their exports on the Simba cargo clearance system amid concern over a backlog of tax refunds claims, which have remained a thorny issue for KRA and the Treasury with traders pushing for reimbursement of money owed to them. Delayed payment of tax refunds has forced some businesses to borrow from banks in order to meet their cash flow needs, adding to the high cost of doing business in Kenya. “In order to facilitate VAT refunds pertaining to exports destined to East African Community (EAC) partner states, all exporters or clearing agents will now be required to declare their exports through the Simba system while importers in the country of destination will continue lodging import entries in the ASCYUDA/TACTIS system,” KRA said in a notice to traders and agents on July 2. As at December last year the government owed traders about Sh30 billion in VAT refunds accumulated over the years partly due to lack of a reliable system to capture and audit claims by...

Kenya is set to cede regulation of its sugar industry to a regional agency in the latest bid to end a long running market access war with Uganda. The joint agency, described by the two states as "the long term solution to intermittent sugar wars", will take up the role of licensing and vetting dealers, currently undertaken by national agencies. The two states are yet to agree on the nature of the inter-state agency -- whether to make it a single entity located at border points or a joint committee made up of officials from national agencies. "We will meet in Nairobi in coming days to lay down long term solutions so that this problem does not recur," Foreign Affairs and International Trade secretary Amina Mohamed said in a statement. The sugar wars between the two countries have eluded several bilateral agreements since Kenya slapped an initial ban on Uganda sugar in 2012. "The two countries are considering formation of a joint body to manage the sub-sector in the region," Ms Mohamed said. Under the East African Customs Management Act, sugar produced in the region should be sold in any of the member states without attracting tariffs or administrative restrictions. Under pressure from farmers and millers, Kenya banned sugar from Uganda in 2012 with regulatory agencies accusing dealers from the landlocked neighbour of abusing the free trade treaty to ship in cheap sugar imported and repackaged from other regions. Kenyan millers have frequently blamed their woes on cheap sugar smuggled...

Now there is this small argument between President Kenyatta and opposition Cord leader Raila Odinga about, of all things, Ugandan sugar. Kenyatta says it makes business sense to import Ugandan sugar, because Uganda is reciprocating and will import diary and beef products from Kenya, as per the trade pact he just signed with President Yoweri Museveni in Kampala. That is better than importing sugar from Brazil, which is not buying Kenyan goods in return, and Uganda is, after all, a fellow member of the East African Community. Raila’s concern is that this will result in cheap sugar being dumped into the Kenyan market, and cane farmers will suffer. His position, though, is understandable, because the stronghold of his Cord is in the sugar-growing areas, and he is doing the right thing by them. But as an East Africanist, I am with Kenyatta on this one. First of all, just like not every country needs to make its own cars or aeroplanes, not every country needs to produce its own sugar — even if they could do it more inefficiently than Kenya’s. Thus, airlines in the Middle East and Asia, which don’t make aircraft, are using American and European planes to run more successful airlines than European and US carriers. CAPITALISM But sugar is also a metaphor for some of the surprising differences between Uganda and Kenya. If you came of age in the 1980s, there were only three “capitalist” countries in Africa: South Africa, Malawi, and Kenya. However, South Africa...