Kenya and Uganda have struck a deal allowing cheaper Ugandan sugar into the Kenyan market, ending the long-running feud over the trading of the commodity across their common border. The deal President Uhuru Kenyatta signed with his Ugandan counterpart Yoweri Museveni in Kampala also clears the way for Kenyan traders to export beef to Uganda under similar terms, deepening the commercial ties between Kampala and East Africa’s largest economy. The agreements were signed during Mr Kenyatta’s three-day visit to Kampala where he held bilateral meetings with his host Mr Museveni and addressed the Ugandan parliament. Ministry of Trade officials said they were expediting issuance of import permits to Ugandan sugar traders to enable them feed the undersupplied Kenyan market. Kenya has had a near diplomatic stand-off with Kampala over the Ugandan traders’ quest to export sugar to the region’s largest economy, arguing that the country did not produce enough sugar to meet its consumption needs and would therefore not have excess to export. The Kenyan authorities have maintained that Ugandan traders were importing sugar cheaply for repackaging and exporting to lucrative markets such as Kenya. Uganda has strongly defended itself against the allegation, arguing it has excess production capacity that can produce sugar for export to the Common Market for Eastern and Southern Africa (Comesa). Foreign Affairs and International Trade secretary Amina Mohamed said the slow pace of processing of permits for Ugandan sugar exporters was behind the stalemate, adding that the issue had been resolved. Mrs Mohamed said the...

Kenya has become the top regional destination for investors putting money in impact investments that target both social and financial gains, a new study shows. The report, which looked at regional impact investments made between 1998 and 2004, says Kenya accounted for nearly half of the $9.3 billion (Sh930 billion) invested. The report, produced by the UK Department for International Development (DfID), the Global Impact Investing Network (GIIN) and Nairobi-based Open Capital Advisors found Kenya had impact investments worth $4.2 billion (Sh420 billion) which is 46 per cent of the amount that went to the region. Data shows Development Finance Institutions (DFIs) such as the World Bank are the biggest investors in power plants, schools, banks, hospitals and other ventures having put $3.6 billion (Sh360 billion) in such ventures through 136 deals. Private equity and venture capital firms invested $650 million (Sh65 billion) in 221 deals over the same period. The study says that more funding would have gone to local ventures were it not for security concerns. “Kenya is so dominant that some impact investors express concern that the landscape is already saturated. However, ongoing security concerns as well as challenges common to the region have kept impact investing activity in Kenya from reaching its potential,” says the report. Human capital “Kenya offers the advantage of more readily available human capital compared to other countries in the region,” the study says. "But like other countries in the region, the informal nature of many businesses poses challenges for investors, and...

Mega infrastructure projects are planned for East Africa and are set to create unique opportunities and open new markets in Kenya, Uganda and Ethiopia. Industry sectors expected to benefit from the planned infrastructure developments include oil and gas (O&G), mining, agriculture, and retail. New analysis from Frost & Sullivan, African Infrastructure Tracker: Kenya, reveals that Kenya is set to become a hub for intra-regional trade in Africa. An estimated $55.6 billion in investment into infrastructure development for Kenya is planned (as of 2015), the majority of which will focus on telecommunications and power generation infrastructure. “Transport infrastructure has undergone major upgrades over the past 5 years in order to support the high trade demand in the East African region,” said Frost & Sullivan Senior Economic Consultant Craig Parker. “The Nairobi Southern bypass, for example, was commissioned in 2012 and is already 40% 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. 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 with escalating project completion costs. Furthermore, legislative changes to the tendering process in Kenya have placed limitations on the type of projects international firms can get involved in. In order to address these challenges, and be accepted for infrastructure project tenders, global firms will be...

Egypt’s Ministry of Industry and Foreign Trade is looking to double its exports of agricultural crops and is looking to African markets to realise this goal. Through free trade agreements with Nigeria and Senegal (with more between West and Central Africa on the way) the North African nation is seeking to trade with notable African markets such as the International Maritime Organisation (IMO), and the Economic and Monetary Community of Central Africa (CEMAC). Egypt’s Minister of Industry and Foreign Trade, Mounir Fakhry Abdel Nour, highlighted that Egypt had already reached a preliminary agreement with IMO in 2004. After negotiations were halted, the ministry is now seeking to reach a final agreement through the current negotiations. Abdel Nour added that the volume of African total product amounts to $2.5 trillion, that annual exports amounts to about $599.5 billion and that total annual imports are worth $605 billion. However, Egypt’s share of these amounts is no more than $4 billion. Egypt is developing its trade relations with the rest of the continent based on three approaches: Re-forming Egypt’s mutual interests with other African countries, moving from merely water-based interests to achieving broader economic outcomes Strengthening Egypt’s presence in African markets by leveraging its commodities; the ministry seeks to transform the country into a major supplier of goods to needy African countries Increase the size of the technical assistance provided by Egypt which assist with social and economic development.   Abdel Nour said: “The ministry implemented important steps to strengthen cooperation with Africa,...

Kenya's President Uhuru Kenyatta has urged the East African region to harness its "shared identities" as the strongest asset to develop its economy. Addressing the Ugandan Parliament in Kampala on Monday, President Kenyatta said the close ties between the people of Kenya and Uganda should encourage similar policies that would guide the region out of poverty. "It is such shared identities and people-to-people links that tie our partnership. We will need these links more than before in future," he told Ugandan MPs. Mr Kenyatta, who was on his first ever state visit to Uganda since his election, used the podium to challenge the region to reorganise policies if they have to catch up with the 'Asian Tigers'- the emerging economies of the Far East. These 'Tigers' include Malaysia and Singapore, "countries who have managed to move from wretched poverty to great wealth in just two generations." Of concern to him is corruption and poor governance, which he argued were eating into any progress the two countries make. Standard gauge railway Both Uganda and Kenya belong to the East African Community, which also includes Rwanda, Burundi and Tanzania. The region has been involved in key infrastructure projects such as the multibillion-dollar standard gauge railway, improving the Port of Mombasa and reducing road blocks on goods in transit. But President Kenyatta admitted there are "enemies" who may want to stand in the way of these projects. He never named them, but hinted at corrupt officials and political detractors who he argued posed...

The presidents of Kenya and Uganda have agreed to resolve trade disputes that are threatening to sour bilateral commercial ties between the two countries. President Uhuru Kenyatta is expected to meet his Ugandan counterpart Yoweri Mueveni on Saturday August 8, ahead of the Intergovernmental Authority on Development (Igad) summit scheduled for the following day in Kampala. Among the trade disputes expected to feature in the discussions are the issue of sugar exports into Kenya from Uganda, rice exports, treatment of Ugandan cargo importers at the port of Mombasa and restrictions by Ugandan Authorities on Kenyan beef and cigarette exports. The trade disputes have caused several losses especially to Ugandan traders who have been complaining about unfair treatment from Kenyan Authorities. Uganda has traditionally been Kenya’s top trading partner in the region, and the biggest consumer of Kenyan goods. All-time high Imports from Kenya have been rising, averaging $250 million in 1998, and reaching an all-time high of $475 million in 2014. Last year, President Museveni warned Kenyans that he would block the country’s goods from entering Uganda if the Kenya Revenue Authority did not stop blocking Ugandan exports from entering Kenya. President Museveni said the move was not only “myopic” but that it contravened the East African Community Protocol. “We buy a lot of goods from Kenya. Some of those (KRA) officials are narrow-minded. They wanted to block our sugar. Now they have gone for our chicken. If I say no more, Kenya will feel it,” he said. Uganda has...

East Africa is fast becoming a hotspot for impact investing that promotes not just profits but also sound environmental and social principles. In the past five years, about $9.3 billion in impact investment funds has flowed into the region, according to the latest report produced by the UK Department for International Development (DfID), the Global Impact Investing Network (GIIN) and Open Capital Advisors. Nairobi is identified as the hub of the funding and headquarters of the managers handling the deals, with about half of the $9.3 billion being invested in the country. Uganda and Tanzania received 13 per cent and 12 per cent of the total investments respectively. “Nairobi is the physical hub for impact investing in the region, where 48 impact investors have local offices, and is often the first port of call for impact investors operating in the region,” says the report. However, Ethiopia — the largest economy in public-private-partnership (PPP) terms — has received only around seven per cent of disbursements to date. On the other hand, Rwanda, with an economy just one-eighth the size of Ethiopia’s, has received four per cent of all disbursements. “Notably, the research team was unable to find any evidence of impact investment activity in Eritrea or Somalia, and only minimal activity in Burundi, Sudan, South Sudan and Djibouti,” the report says, adding that the bulk of support provided in the six countries is through bilateral or multilateral government loans. According to the document, impact investment ought to be taken seriously, since...

EAST African Community countries need to engage the private sector when formulating business laws and regulations to accelerate integration under the bloc's common market protocol, President Uhuru Kenyatta has said. He said such consultations will help better the region's business environment, helping firms thrive and spark faster economic growth. Speaking during a business forum on his three-day state visit to west-neighbouring Uganda that ends today, Uhuru however emphasised that companies need to become more innovative and competitive to remain relevant in a highly globalising market. The president held bilateral talks with his host, President Yoweri Museveni on Saturday, focusing on security, anti-terrorism, trade and investment. In a statement to newsrooms yesterday, the Presidential Strategic Communications Unit said the two countries are working on a framework to forge increased collaboration of companies. This will hel;p take advantage of the proposed 700-million people tripartite market bringing together EAC, Comesa and Southern Africa Development Community 26 member countries. The framework will be coordinated by the Kenya National Chamber of Commerce and its counterpart in Uganda, guided by a memorandum of understanding that the two have signed. Uganda remain's Kenya's largest trading partners with trade volumes of Sh88.88 billion ($880 million) last year, including Sh70.7 billion($700 million) in exports and Sh18.18 billiin in imports($180 million) in imports. “Last year, in keeping with our recent history, the volume of trade between us made Uganda one of Kenya’s most vital trading partners,” Museveni said. Source: The Star

EAST African Community may have a common custom bond in two weeks as the bloc races to enhance faster movement of goods across the five member countries, the Kenya Revenue Authority has said. This is part of the proposed Regional Customs Transit Guarantee, a regime that will ensure authorities in a transit country receive proper payment for dues and duties for goods passing through their territories. The RCTG bonds scheme is designed to fast-track movement of goods under the customs seals. Value of custom bonds presently vary from one country to another because of different duty rates and valuation of goods. “This(RCTG) will put in place a mechanism which the importing country can recover revenue in case of an incidence," KRA commissioner general John Njiraini said. "Once that is completed in one or two weeks, we will now be rolling out further products that will then be secured through this system.” The RCTG was first introduced in 2012 for three countries along Northern corridor – Kenya, Uganda and Rwanda – to facilitate movement of goods from the port of Mombasa to the hinterland. Tanzania joined joined on April 9, this year. Introduction of uniform bonds for the EAC countries is part of the ongoing implementation of the Single Customs Territory system which was launched in October 2013. The SCT allows for assessment and collection of taxes at the port of entry. Its implementation which is in phases is currently at 50 per cent, according to the EAC secretariat. KRA said...

The bilateral political, cultural and economic relations between Kenya and Turkey have been growing stronger in the last 10 years. Kenya aims to further increase trade relations with Turkey, said the Republic of Kenya's first substantive ambassador to Ankara, Julius Kiema Kilonzo on Thursday, in an exclusive interview with Daily Sabah in Istanbul. Kilonzo highlighted the strength of Turkish exports to Kenya, as Turkey has had increasing figures, particularly in the first two quarters of 2015, and suggested Turkey "lower taxes so that Kenya's goods can find markets here directly", rather than using trade hubs in Europe such as Amsterdam. Kenyan exports to Turkey use European hubs, which lead to double taxation, but with Turkish Airlines flying to the Kenyan cities of Nairobi and Mombasa, Kenyan goods should come to Turkey directly as an alternative hub, Kilonzo said. Kenya's enhanced financial infrastructure and skilled manpower are its highlights as well as what makes it an attractive investment destination, Kilonzo stressed, and said Kenya, as the emerging economy of East Africa, "is looking for a partner that will help it prosper." According to data released by the Turkish Exporters Assembly (TİM), Turkey's exports to Kenya increased by 16 percent in the first seven months of the year compared to the same period of the previous year, reaching $75.9 million, up from $65 million, which is quite low considering the potential of the countries. Kilonzo also highlighted the significant increase in bilateral relations between Turkey and African countries. "Before the Justice and...