Trade CS Moses Kuria on Tuesday signed the Business Environment and  Export Enhancement programme. In a statement, Kuria said the BEEEP programme is a €25 million (Sh3.3 billion) EU grant-funded project implemented by Trade Mark Africa. "It consists of €20 million (Sh2.6 billion) of export promotion, a green ring of value chains and using digitalisation and other means to make trade faster and easier," he said. Trade CS Moses Kuria during the European Union-Kenya business forum on February 21, 2023 Image: MOSES KURIA/TWITTER "Together with the Principal Secretary for Trade, Alfred K’Ombudo, PS for Investment Proportion  Abubakar Hassan we joined other stakeholders from the EU delegation and witnessed the signing of the Business Environment and Export Enhancement," he said. He said €5 million (Sh672.2 million) will be dedicated to supporting the government in improving the investment climate and the ease of doing business at the national and county levels. Trade CS Moses Kuria and other dignitaries during the European Union-Kenya business forum on February 21, 2023. Image: MOSES KURIA/TWITTER Kuria said the move will focus on the full ecosystem of certain foods and supply chains and is aligned with the Government’s Integrated National Export Development Strategy. "We will open a deal book listing of submissions of company details, areas of interest in investment that will allow for follow-up from my ministry," he said. "I welcomed the delegates to the APSA, TFTA and KIICO conferences later this year as we seek to grow trade in Kenya." Trade CS Moses Kuria and other...

In Summary President Ruto said Nairobi is a strong participant in the Tripartite Trade Agreement encompassing EAC, Comesa and SADC. This, he said, will offer the 28-countries bloc the advantage of 750 million people and an economy of $1.8 trillion. The EAC-Comesa-SADC tripartite agreement will be in place by the end of April 2023, President William Ruto has said. This means 28 African countries will trade as a bloc with the European Union. Pitching Kenya as the preferred investment hub for EU investors on Tuesday, President Ruto said Nairobi is a strong participant in the Tripartite Trade Agreement encompassing EAC, Comesa and SADC. “The tripartite agreement was signed in 2015 and unfortunately for the seven years or so, we have not concluded it to the satisfaction of the EU requirements,” the President said in Nairobi during the EU-Kenya Business Forum. To address this challenge, Ruto said he sent Trade CS Moses Kuria as his special envoy to 11 capitals to meet with the respective presidents. “He [Moses Kuria] has been to Egypt, Angola, Comoros [new AU chair], Uganda, Tanzania, Lesotho South Africa …, and now I can promise with confidence, by the end of April, we will have the tripartite agreement in place,” Ruto said. This, he said, will offer the 28-countries bloc the advantage of 750 million people and an economy of $1.8 trillion. “This is a great opportunity that as the EU looks at Kenya, you are also looking at the tripartite agreement and a huge population and economy...

Complex and stringent rules of origin can prevent businesses from taking advantage of trade preferences, according to a new study by UNCTAD and the Common Market for Eastern and Southern Africa (COMESA) secretariat. Rules of origin are the “passport” for goods, determining whether they can be exempted from taxes or taxed less under a preferential trade arrangement or free trade area (FTA). They can be complex to comply with – especially for products made using materials from different countries through global value chains – and can make it difficult for products to qualify for trade preferences. This complexity can hinder African businesses from benefiting from preferential trade agreements that the continent’s governments have increasingly signed to increase intra-African trade or exports to partners like the European Union (EU). Utilization rates Utilization rates measure the extent to which firms are using FTAs. The study uses rates reported by COMESA countries to examine how effectively firms in those nations are using trade preferences offered by FTAs. “Making utilization rates publicly available will help governments monitor the effectiveness of trade agreements,” says Paul Akiwumi, director of UNCTAD’s division for Africa and least developed countries. “And understanding which trade agreements are working better for African firms will help the continent’s governments improve the outcome of trade negotiations and ensure better trade deals,” he adds. Underutilized potential of free trade agreements The study compares the utilization rates of COMESA members under FTAs with other African countries and preferential agreements with Canada, the EU, Japan and the United...

Summary The ship can carry 1,200 passengers, 400 tonnes of cargo, 20 small vehicles and three trucks. The vessel will have a VVIP section for national leaders as well as regular VIP facilities including a first-class section. Tanzania has floated East Africa's largest-ever domestically manufactured fresh water passenger and cargo ship, the MV Mwanza Hapa Kazi Tu, on Lake Victoria. The ship, launched at the Mwanza South Port on February 12, can carry 1,200 passengers, 400 tonnes of cargo, 20 small vehicles and three trucks. It is currently 82 percent complete. "Up to this point of float-out, we can say the ship is complete and the remaining 18 percent is just minor installations that will be done in less than four months," said Eric Hamissi, the chief executive officer of Tanzania's Marine Services Company Limited. Hamissi explained that the next phase includes finishing internal aesthetics such as paintwork, fixing air conditioners, beds, and toilets and installing navigation equipment. Cost of vessel The ship's construction began in January 2019 and was led by two South Korean companies, Gas Entec and KangNam Corporation. The 92.6 metre-long, 17-metre wide and 20-metre-high vessel will cost the taxpayers over Tsh100 billion (US$43 million). "Until now, the contractor has been paid more than 93.8 billion by the government, and when he completes the work, the remaining amount will be paid," said Hamissi. Upon completion, the ship will weigh 3,500 tonnes. Design MV Mwanza's design includes an elevator section for people with disabilities, a clinic to provide health...

In the last couple of years, there has been exponential growth in international trade globally. Customs administrations are key players in international trade as frontline agencies in the clearance of goods, people and means of conveyance across borders. This growth has meant an increased workload for Customs as officials have to clear a large number of consignments as well as passengers. To enhance operational efficiency, Customs Administrations have employed technology by automating most of their processes including the processing of declarations, risk management, revenue assessment and collection, post clearance audit, among others. Kenya Revenue Authority’s Customs and Border Control has not been left behind, transitioning from what used to be very long endless truck queues, extending as far as 25km at border points, a surge in smuggling, slow clearance taking as long as a week or two, to efficient clearance services with malpractices being detected instantly. The efficiency is made possible by the technological changes with KRA having 33 serviceable scanners, across the country. Initially, Customs officers perused cargo manually, now the 33 scanners are interlinked to the Integrated Scanners Command Centres at Times Towers, JKUAT Towers and Mombasa Command Centre, enhancing transparency in the entire process. The platform handles processes such as Customs declarations, revenue assessment and payment, intelligence-based risk management as well as post-clearance audit. All the functions supporting cargo clearance are domiciled within iCMS. To enhance regional trade through trade facilitation, KRA in partnership with the Revenue Administrations of the EAC Partner States (Uganda and Rwanda) have implemented the Regional...

Kenya Ports Authority (KPA) is the latest heavy power consumer to embrace the shift towards renewable energy after it rolled out plans to commission a new solar plant, as part of the green strategy at the Mombasa port. The five-10 megawatts power plant will be installed within the port and will also help it cut down on electricity bills. A feasibility study conducted by energy and marine consultancy ABL Group has picked two possible brownfield sites for the installation of a solar photovoltaic plant to generate renewable energy-powered shore power or ‘cold ironing’ at the Mombasa port. The project was commissioned following the proposed introduction of the Green Ports Policy by the KPA, envisaging that all vessels at the Mombasa port are to turn off onboard generators and operate from shore power. Depending on the size of the ship, all ships are required to switch off engines to save power and reduce pollution at any port and recharge offshore with some taking between eight-80 hours to recharge. The policy also says the solar-powered cold ironing’ could end oil-fired emissions from vessels at the port and reduce the cost of electricity, which has been on the rise in recent months. This comes at a time when governments are dealing with the rising nightmare of air pollution from docked ships. The green policy identifies the shore-to-ship power strategy — a solution that makes ports more sustainable, reducing emissions from ships while berthed — as one of the technologies that can cut emissions...

East African Business Council (EABC) has raised new concerns that variations in tax policies are distorting prices and frustrating intra-EAC trade and investment. As a result, the EAC member states are being urged to eliminate discriminatory taxes and accelerate the harmonization of domestic taxes within the bloc if they are to attract improved cross-border and foreign direct investments. Unharmonized taxes, it emerged, was largely contributing to the bend of the intra-EAC trade and cross-border investment and frustrating the free movement of goods, services, service suppliers, and workers. Speaking during the Validation Webinar for the Study on Discriminative Taxes and Harmonization of Excise Duties in the East African Community (EAC) – the Council’s Chief John Bosco Kalisa, called on the EAC Partner States to adhere to Article 15:2 of Customs Union Protocol that states for the trade within the bloc to flourish. “No Partner State shall impose, directly or indirectly, on the products of other Partner States any internal taxation of any kind in excess of that imposed, directly or indirectly, on similar domestic products,” states the article’s excerpt. The continued intra-EAC trade decline reflects a gradual loss of competitiveness among the region’s manufacturers compared with Asian exporters, as well as increasing protectionism fueled by political tensions among some member countries that have engulfed the region over the past couple of years – limiting attractiveness. Other upshots include an unlevelled playing field for business and difficulties in marketing the EAC bloc as a single investment destination, according to Kalisa. The harmonization...

Summary The FSNWG data shows Rwanda breweries imported 3,991 tonnes of sorghum from Uganda. Small scale cross-border traders complain they have not fully benefited from the reopening of the border. Previously most of the informal trade at the Gatuna-Katuna border was in foodstuff such as maize flour. Rwanda’s appetite for imports from Ugandan grew to a record $60.55 million in the fourth quarter of 2022 from $15.64 million in the first nine months to September as Kigali turned to her regional neighbours for food supplies and raw materials. Latest Bank of Uganda trading data shows exports, which had stagnated in single-digit millions of dollars between January and September 2022, grew to an average of $20 million monthly between October-December. Ugandan economist Fred Muhumuza attributed the growth to lower harvests in Rwanda that necessitated food imports. “The importer ... has to import a lot of food to restock. In future, we might see export levels reduce,” he told local media in Uganda. Highlights published in the East African Cross Border Trade Bulletin by the Food Security and Nutrition Working Group (FSNWG) show that Rwandan authorities were under pressure to provide adequate food and also ensure sufficient supply for raw material, especially for breweries. The FSNWG data shows Rwanda breweries imported 3,991 tonnes of sorghum from Uganda, 2,065 tonnes of maize and 2,866 tonnes of rice from Tanzania. However, small scale cross-border traders – who used to dominate the informal trade business – complain they have not fully benefited from the reopening...

Luanda- The Cabinet Council analysed Thursday the draft project resolution that approves Angola’s ratification of the Agreement that creates the Tripartite Free Trade Zone COMESA-EAC-SADC. The document analysed in the first Extraordinary Session led by President João Lourenço will be submitted to the National Assembly. The agreement aims to establish a legal framework for trade in goods and services between member states of the Common Market for Eastern and Southern Africa (COMESA), the East African Community (EAC) and the Southern African Development Community (SADC), in accordance with the laws and regulations in force in each country. It also aims to promote the economic and social development of the region, creation of a large common market with free circulation of goods and services and the promotion of intra-regional trade. Among the objectives of the agreement are also the strengthening of regional and continental integration processes and the building of a strong Tripartite Free Trade Area for the benefit of the peoples of the region. The agreement also provides for the progressive elimination of tariffs and non-tariff barriers to trade in goods, the liberalisation of trade in services, cooperation in customs matters and the implementation of trade facilitation measures. The COMESA-EAC-SADC tripartite mechanism was established during the first Heads of State and Government Summit held in Kampala, Uganda October 22, 2008. Read original article

To align with its West Africa expansion, TradeMark East Africa rebranded last month to TradeMark Africa as its sub-regional office will be headquartered in Ghana’s Accra. This marks an important step in trade facilitation within the Economic Community of West African States (ECOWAS) region, with CEO David Beer expecting that bureaucratic delays at the various borders will soon be cut down by at least 70%. Read original article