The Mombasa Tea Auction has been fully automated to boost efficiency and transparency. East Africa Tea Trade Association (EATTA), which runs the auction said that the new Integrated Tea Trading System (iTTS) costs Sh230 million. The automation was funded by the Danish International Development Agency (Danida) through Trade Mark East Africa, said EATTA chairman Arthur Sewe. Mr Sewe said automation of the auction will reduce the period in the tea trading cycle as well as direct costs associated with the auction process. The iTTS project automated the manual processes along the tea value chain and stakeholders hope it will enhance tea volumes traded at the auction and productivity. He said iTTS will ensure availability and access to tea trade data in a timely, reliable, accurate and verifiable manner. “When fully implemented, iTTS will significantly reduce the need for physical presence or representation. It will simplify the tea trading process, reducing, among other things, the learning curve for new entrants into the tea sector and streamlining of processes,” Mr Sewe said. He noted that automation will contribute to an increase in the income of farmers even in the event that prices remain constant. Mr Sewe explained that the digital platform will enable tea packers to effectively participate in the auction and enhance the opportunities for marketing and selling value-added teas. KTDA board chairman David Ichoho expressed hope that smallholder farmers will gain following the automation of the auction. [Sammy Omingo, Standard] “iTTS will increase the volumes of tea sold at the auction....

Summary Report suggests that the impacts of the Russia-Ukraine war on African economies should be negligible, because of “limited trade exposure”. Countries rich in metal and mineral resources like DR Congo and Zambia are expected to grow by 4.8 percent in the next two years, as metal prices surge due to increased demand. East Africa and southern Africa are expected to register the highest growth, which the World Bank says is because it is “characterised by a diversified economy that is more integrated than other regions in sub-Saharan Africa”. Africa’s economic growth is projected to drop to 3.4 percent this year, down 0.6 percentage points from the four percent growth recorded in 2021, due to new macroeconomic shocks. The latest Africa Pulse report, a biannual analysis of Africa’s macroeconomic outlook by the World Bank, released on Wednesday, said inflation and higher costs of living contribute to the decline. According to the report, the decrease is from economic shocks including effects of new Covid-19 variants, inflation, supply disruptions, rising public debt, climate shocks and a general slowdown in the global economy, especially in the US and China. “The slowdown in growth reflects challenges facing Africa prior to the Ukraine crisis, but have been exacerbated by the war,” said Albert Zeufack, the World Bank’s chief economist for Africa. The report suggests that the impacts of the Russia-Ukraine war on African economies should be negligible, because of “limited trade exposure”. “Resource-rich countries, especially their extractive sectors, will see improved economic performance due to...

Summary According to the East African Business Council (EABC) trade volumes at the official Holili border crossing with Kenya have picked up lately. Trucks carrying goods increased by 73 percent last year to 33,000 from 19,000 in 2020, a sign of recovery and resilience against Covid-19 impact and easing of restrictions. Moshi. Smuggling of goods has declined sharply at the Holili border post between Tanzania and Kenya, thanks to easing of restrictions. Revenue agency officials and traders alike have confirmed that the use of alternative ‘panya’ routes has gone down in favour of the official route. Yusuph Mwahu, a Tanzania Revenue Authority (TRA) official in charge of Customs has attributed this to intensified public sensitisation programmes. “The decline in smuggling has boosted trade between the two countries. The volumes have increased in recent weeks,” he told The Citizen in an interview. Mr Mwahu said unlike in the past the revenue authorities and other border agencies from the two countries at Holili were now closely cooperating, hence boosting trade. Ms Diana Mtaita, a woman trader from Kenya said they were now using the official border routes as there was no need to smuggle goods across the borders. “We have been sensitised on the need to pay the required levies and the risks of using the ‘panya’ routes. That include confiscation of our goods,” she said. However, she said they were burdened by high taxation for their merchandise that do not fetch much in the markets due to their low value. Mr Makulomba...

NAIROBI, Kenya, Apr 11 – The Kenya Revenue Authority (KRA) has stepped up measures to contain smuggling of goods along the Kenya and Uganda border. The efforts jointly undertaken by Kenya and Uganda target to close in on unscrupulous businessmen who use illegal routes to smuggle goods into the country evading tax. KRA Malaba One Stop Border Post (OSBP) Manager Kimani Kang’ethe said the joint patrols have yielded fruits with KRA now collecting 100% revenue at the border. The measures alongside the establishment of the OSBP which has brought all government bodies in charge of clearance of cargo and people from the two countries under one roof, he added, has seen a growth in revenue from Sh962 million in 2012 to Sh4.2 billion in 2021. With enhanced surveillance along the border and inland along the Eldoret-Malaba Highway, he said KRA targets to net Sh5 billion by the close of this financial year. KRA, he added, has embarked on sensitisation of the business community, small scale traders and women engaged in cross border trade on the need to make use of the OSBP. “We are sensitizing them on the importance of taking advantage of the East African Community (EAC) treaty where they are exempted from paying duty for goods. They only pay Value Added Tax (VAT),” he said. “We are also working with the Cross Border Women Association to ensure that all their goods pass through the OSBP to net additional revenue,” he added. Speaking during a tour of the facility...

Summary ECA says the Ukraine crisis has exacerbated the economic and social vulnerabilities of African states, with food, oil and fertiliser prices reaching 14-year highs. The crisis has caused a 75 percent rise in crude oil prices, 67 percent rise in wheat prices, and 52 percent rise in maize prices. Fertiliser prices have risen by 21 percent since the war began. ECA projects that the Ukraine war will further contract Africa’s real GDP growth by 0.7 percent in 2022, raise inflation by 2.2 percent and drive 43 African states into fiscal deficit stress. The Africa Continental Free Trade Area (AfCTA) agreement could be the continent’s Marshall Plan for recovery as the region faces a further economic disruption from the Russia-Ukraine war. Economists from the UN Economic Commission for Africa (ECA) say the continent must now implement the agreement fast as it presents insurance for the future. The experts had this week gathered for a webinar convened by the East African Business Council (EABC) to discuss the turmoil caused by Covid-19 as well as the Russian invasion of Ukraine. Mama Keita, the director of ECA sub-regional office for Eastern Africa noted that “Africa’s recovery has been hindered by higher inflation, tighter global financial conditions, rising interest rates and the Ukraine crisis further compound the situation.” ECA says the Ukraine crisis has exacerbated the economic and social vulnerabilities of African states, with food, oil and fertiliser prices reaching 14-year highs. The crisis has caused a 75 percent rise in crude oil prices,...

Summary The business associations, seen as the most affected by the non-tariff barriers (NTBs), say having common standards of safety, sanitation and the list of documentations would help reduce unnecessary delays. The traders intend to file their proposals with respective export departments for agreeable standards. Kenyan and Ugandan traders have signed a memorandum of understanding to help end continual tiffs on non-tariff regulations. In a joint communique, the two sides pledged to harmonise policies on agriculture to reduce delays and cut down on bureaucracies in doing business. “The signing of this memorandum today will enhance agricultural trade between Uganda and Kenya, improve interdependence of agro-based industries in the two countries. The document will advance and actualise the resolutions arrived during September 2021 at a trade symposium in Mombasa,” read the joint communique. The business associations, seen as the most affected by the non-tariff barriers (NTBs), say having common standards of safety, sanitation and the list of documentations would help reduce unnecessary delays. The traders intend to file their proposals with respective export departments for agreeable standards. Building linkages During a trade symposium in Mombasa last year, Ugandan High Commissioner to Kenya Wasswa Galiwango and Consulate General to Mombasa Paul Mukumbya promised to actualise the issues discussed to help build linkages that increase export volumes to Kenya. During the signing of the MoU on Wednesday, Mr Mukumbya said Uganda will benefit considering it has a surplus of agricultural produce with need for a ready market. “The two countries have come up...

Kenya is witnessing an extended drought, and it is becoming evident that climate change is now directly and significantly affecting local livelihoods. The country is only about 20 per cent arable, making it highly vulnerable to extreme weather events such as high temperatures, droughts and floods, which have grave implications on food security, economic growth, and social stability. Urgent action is needed to build the resilience and adaptive capacities of sectors and communities to cope with climate change impacts and spur sustainable growth. The Kenyan government estimates that US$44 billion is needed by 2030 to implement various adaptation interventions across key sectors. Despite this significant financing need, a report published on the landscape of climate finance in Kenya shows that much of the funds that flowed into the country in 2018 were directed towards mitigation action (79.8 per cent), and mainly for renewable energy projects. Only 11.7 per cent of financing was for adaptation, while the remaining 8.5 per cent went towards cross-cutting issues. This low investment, coupled with competing development priorities and lowered economic growth due to the impacts of Covid-19, makes raising the needed resources for adaptation action an uphill task. But it must be done. For a long time, Kenya has depended on aid and grants to finance actions that address climate change impacts. These are largely designed as emergency responses, and have proven to be unsustainable. The need to find alternative, innovative and long-term strategies to raise adaptation finance is glaring. How can this be achieved?...

The entry of the Democratic Republic of Congo (DRC) into the East African Community (EAC) has made the region more attractive to business, Kenya Ports Authority (KPA) acting Managing Director John Mwangemi has said. Mr Mwangemi said this would boost trade with the Port of Mombasa being a key facilitator of the regional trade. He said the huge potential has been bolstered by the recent admission of DRC to the EAC - now with a combined population of over 200 million people. The KPA boss said the entry of DRC to the EAC will also boost strategic infrastructural developments that respective governments are implementing to increase integration and make cargo movement seamless and efficient. He noted that KPA will soon be commissioning several infrastructural projects in the final phase of completion, to enhance efficiency and ease cargo evacuation. Key among these projects is the new Sh40 billion Kipevu Oil Terminal currently undergoing a trial phase in readiness for operations. The latest offshore oil terminal has four berths with the capacity to handle five different oil products including heavy fuel oil, three white oil products (DPK-aviation fuel, AGO-diesel and PMS-petrol) and crude oil. The Mombasa Port’s phase two of the second container terminal that will increase capacity at the port by 450,000 TEUs (20-foot equivalent units) annually is also set for commissioning in the next few weeks. Meanwhile, the world’s fifth-largest shipping line, Hapag Lloyd Shipping Line is targeting to move at least one million TEUs to increase its market share...

Summary Farmers are holding onto 85 percent of the total stock of maize in the country, starving grain millers of supplies. The food balance sheet report from the Ministry of Agriculture indicates that growers are holding 8.5 million bags of maize stocks out of 10.1 million bags of 90Kgs, which has left millers facing a shortage of grain, subjecting consumers to high prices of flour. The report indicates that millers and traders are in possession of a paltry 1.5 million bags with the National Cereals and Produce Board (NCPB) holding zero grains. Farmers are holding onto 85 percent of the total stock of maize in the country, starving grain millers of supplies. The supply of maize in the market has been low since the beginning of the year as farmers hoard their crop in anticipation of higher prices. The food balance sheet report from the Ministry of Agriculture indicates that growers are holding 8.5 million bags of maize stocks out of 10.1 million bags of 90Kgs, which has left millers facing a shortage of grain, subjecting consumers to high prices of flour. The report indicates that millers and traders are in possession of a paltry 1.5 million bags with the National Cereals and Produce Board (NCPB) holding zero grains. NCPB has been targeting to buy two million bags of maize from farmers. “Most of the maize and bean stock was with the farmers,” said the report. Millers have recently complained that the flow of stocks from local farmers has been...

Summary Kenya and Tanzania were engaged in vicious trade spats during the regime of the late President John Magufuli, which almost killed cross-border trade between the two states. But the coming into power of President Samia heralded an era of reconciliation and cooperation. Kenya and Tanzania have hammered out a bilateral trade deal cutting across the aviation and energy sectors, enabling growth of the Common Market. In the new deal, Kenyan airline Jambojet will now be allowed to fly to destinations in Tanzania while Tanzania’s Taifa Gas has been granted permission to establish a plant in Kenya’s Export Processing Zone. The deal comes after a series of meetings that have been going between Kenya and Tanzania since May 2021, following President Samia Suluhu’s inaugural state visit to Kenya. The two East African Community partners have also resolved the disputes involving aviation, tour vans, Covid-19 clearance certificates, clearance of goods at the Namanga-Kenya-Tanzania border and mutual recognition of engineers’ certificates. Johnson Weru, Kenya’s principal secretary in the Ministry of Industrialisation, Trade and Enterprise Development, told The EastAfrican this week that the teams have resolved four of the 18 outstanding issues, adding that they will meet in the second week of July “to discuss the remaining items”. Mr Weru is co-chair of the bilateral talks. The other chair, Prof Godius Kahyarara, was recently transferred from Tanzania’s Investment Ministry to the newly established Investment, Industry and Trade Ministry. The deal is a boom for Kenya’s low-cost airline Jambojet, a subsidiary of Kenya Airways, which recently...