Truck drivers also applauded the interventions the NCTTCA secretariat has put in place so far including the real-time quick response. Stigma along the Northern Corridor and delays at Malaba border crossing point are the biggest challenges facing transit truck drivers. The chairman of Kenya Long Distance Drivers and Conductors Association (LoDDCA), Mr Roman Waema said that truck drivers are not allowed to stop at designated areas in some counties in Kenya such as the Machakos for fear that they will spread the coronavirus. “Sometimes we are forced to drive for over four hours without stopping, going as far as 400km, just because people do not want us to stop in their neighbourhoods,” Waema said. The drivers said that they had been facing stigmatization in different places due to misinformation by the public with some being treated suspiciously even by very close family members. He was speaking during the launch of the sensitization campaign against the spread of COVID-19 and stigmatization along the Northern Corridor when the Northern Corridor Transit Transport Coordination Authority (NCTTCA) did a one week-long exercise of distributing 10,000 masks and reflective jackets to long distance truck drivers. The exercise was carried out in Mombasa and at the weighbridges- Busia, Webuye, Mariakani, Athi-River and Gilgil. Truck drivers also applauded the interventions the NCTTCA secretariat has put in place so far including the real time quick response through a WhatsApp group dubbed “Northern Corridor Stakeholders Forum”. “We appreciate the Northern Corridor Secretariat for their solidarity with the drivers and...

The COMESA bloc has developed an online portal for member states to exchange information on availability of essential products within the region as part of its strategy to lessen the impact of the Covid-19 pandemic. According to COMESA Secretary General, Chileshe Kapwepwe, the platform will connect buyers to suppliers of essential goods thereby promoting and fostering intra-COMESA trade. It is a platform largely meant to support regional trade, during the Covid-19 pandemic. Mwangi Gakunga, Head of Corporate Communications at the COMESA Secretariat, on Monday, July 20, told The New Times that the new tool "will enable suppliers in one country link up with buyers in another by uploading the products they have on the platform." Gakunga explained that for it to work, suppliers must be registered companies in their home countries. He said: "They will register on the platform and open an account and this will be vetted by the governmental focal points mainly in the ministry that coordinates COMESA activities who will approve and activate the account or advise otherwise." "This is to ensure the integrity of the companies allowed to post on the platform. Once the supplier account is activated, he or she can post the products on the platform." The platform will also help small-scale cross-border traders and SMEs to have access to market information and will link producers, sellers and buyers. It comes as the regional bloc noted that measures being implemented by member states such as closing borders to prevent the spread of the Covid-19...

NAIROBI, KENYA: The East African Business Council (EABC) has endorsed sports Cabinet Secretary Amina Mohammed for the World Trade Organization’s (WTO) Director-General position. In a statement, the outfit noted that Amina joining the WTO will be timely as Africa is keenly focusing on the African Free Trade Area (AfCFTA). “She is a strong advocate for the actualization of the AfCFTA and has also chaired the WTO’s 10th Ministerial Conference held in Nairobi in 2015, the Dispute Settlement Body and the WTO’s General Council in 2005, her passion for international trade, exemplary strategic leadership, diplomatic and negotiation skills maker her the right candidate for the job,” said Peter Mathuki, CEO East African Business Council. Her success in the position will be a great opportunity for the EAC bloc and Africa towards championing global economic policy to increase the continent’s share in global trade. “The business community in East Africa is assured that Amb. Mohamed will steer the WTO to greater heights. As a former Cabinet Secretary for Foreign Affairs and International Trade of the Republic of Kenya she is bold and proficient, it will be an honour for the continent to have the first African and first woman as the Director-General of the WTO,” said Dr. Mathuki. Mohamed said on Monday she is seeking Washington’s backing and expressed some sympathy with its criticism of the global body as she emerges as one of two reform-minded African female frontrunners. Delegates say Mohamed, a 58-year-old minister, and former WTO chair, is one of...

Paradoxically, the health and economic crisis have shown that the restoration of local production will be achieved through greater trade and economic integration. The post-pandemic period promises to be a moment of opportunity for Africa, that of securing supply by bringing production back to the continent. Yet the risks of supply disruption are not as much linked to a lack of factories in Africa as they are to the concentration of trade. Africa imports 75% of its drugs from Europe, India, and China. First and foremost, securing supply requires greater diversification of suppliers, backed up by trade agreements. Can this be done in a way that benefits African countries? Intra-community trade within EAC Intra-continental trade circuits are more fragile than international circuits. Despite the pandemic, cargo aircraft continue to land in Nairobi, container ships dock in Djibouti and oil tankers leave Port Sudan. Traffic in the Kenyan port of Mombasa is only expected to decrease 2.1% in the first quarter of 2020 as compared to 2019. The problem lies elsewhere. Quality of infrastructure Intra-Community trade within the East African Community (EAC) represents only 20% of its total trade (as opposed to 70% in Europe). Several factors are to blame for this, including the poor quality of infrastructure, complex administrative procedures, low competition in the carrier industry, and a lack of interconnectivity between the various modes of transport. For example, clearing a container takes eight days in Mombasa, less than two days in Mauritius and barely ten minutes in Europe. These differences are even more pronounced...

In Summary The app will follow the trajectory of the truck and detect any smuggling or short-landing. The app is expected to be launched within two weeks. Truck drivers have welcomed a decision by the government to introduce an application through which they can access coronavirus test results. EU ambassador to Kenya Simon Mordue said Friday they are partnering the government to release the app in two weeks. The cargo transporters said on Sunday the app will limit the frequency of travel to Covid-19 test centres to pick their results. They also said the development will hasten the delivery of test results to individual drivers thus reducing the time they spend queuing on the roads. Mark Kibet who plies the Mombasa-Tororo route transporting clinker to the Tororo Cement Industry in eastern Uganda said he was ready to download and use the app. “That is a good decision because that app will help us when our samples have been taken. We will only be returning to our vehicles and wait for the results to come out through our phones,” he said in Amagoro. Results take two to three days and when they are released, drivers have had to travel again to Malaba to pick them, he said. Truck drivers are screened for the coronavirus after every 14 days and it has been cumbersome for them to travel to test centres to collect result certificates. Abdallah Boru who plies the Mombasa-Kampala and Mombasa-Juba routes said developers of the app deserve commendation. It...

Summary In its latest African Economic Outlook 2020 Supplement report, the African Development Bank (AfDB) says that despite countries embarking on a cautious reopening of economies to stem further damage, the impact of the pandemic is bound to be severe. Losses are expected to be carried over to 2021 because the projected recovery will only be partial with losses ranging from $27.6 billion (baseline) up to $47 billion (worst case) from the potential GDP of $2.76 trillion without the pandemic. Cumulatively, the pandemic could lead to GDP losses in 2020–21 of between $173.1 billion and $236.7 billion in current value terms. At mid-year, African economies, already battered by the Covid-19 pandemic are now facing a total GDP loss of at least $145.5 billion. With many countries recording an unprecedented surge in the number of infections, and the continent’s total cases surpassing the half million mark as per World Health Organisation data, Africa is forecast to suffer GDP losses of between $145.5 billion and $189.7 billion from the pre-Covid-19 estimated GDP of $2.59 trillion. In its latest African Economic Outlook 2020 Supplement report, the African Development Bank (AfDB) says that despite countries embarking on a cautious reopening of economies to stem further damage, the impact of the pandemic is bound to be severe. Losses are expected to be carried over to 2021 because the projected recovery will only be partial with losses ranging from $27.6 billion (baseline) up to $47 billion (worst case) from the potential GDP of $2.76 trillion without the...

​​​​​​​IN a move to tackle foreign domination of shipping business in Africa, the African Union (AU) has adopted the Deep Blue Economy strategy by taking initiatives to promote maritime transport, port activities, maritime security, as well as interstate exchanges. In a report “Africa Blue Economy Strategy”, the AU noted that foreigners intentionally destroyed the budding African shipping lines and conferences to ensure that only Europeans offer such services and at their own prices. Besides, the AU is also expecting port activity in Africa to reach two billion tonnes by 2040. West Africa is home to port facilities in the process of continuous modernisation since the end of the colonial era. East Africa has expanded its ports, including Djibouti, which is responsible for exports to Saudi Arabia, Egypt and India. The port of Dar-Es-Salaam in Tanzania carries many imports from India and China. To this end the group also concluded plans to reduce, if not eliminate foreign domination of shipping businesses in the continent as it commenced research and studies in fisheries, aquaculture, conservation and sustainable aquatic ecosystems, shipping/transportation, trade, ports, maritime security, safety and enforcement, coastal and maritime tourism, climate change, resilience, environment, infrastructure, sustainable energy and mineral resources and innovative industries, polices, institutional and governance, employment, job creation and poverty eradication as well as innovative financing. According to the report, the AU noted that in its current configuration, maritime trade remains dominated by arms conglomerates which unilaterally set freight rates and thus organise the shipping market as they see...

Today the House of Lords’ International Relations and Defence Committee has issued its first report of the current parliament, The UK and Sub-Saharan Africa: prosperity, peace and development co-operation. The report rightly argues that the UK should take a greater strategic interest in and seek a stronger partnership with Africa to support the delivery of the African Union’s (AU) strategy. In fact, ODI’s written and oral evidence to the Committee argued that the government should consider building on the recent UK-Africa Investment Summit to lay the foundations for a new medium-term post-Brexit economic partnership, to diversify UK investment in Africa and increase trade by taking advantage of Africa’s integration. Together with the All-Party Parliamentary Group (APPG) on Trade out of Poverty, we also suggested a UK-Africa Prosperity Commission is set up to inform these efforts as equal partners. The government must now take note of the House of Lords report, reset economic relations and publish an ambitious Africa strategy. The strategic approach to Africa falls short The Committee’s diagnosis on the state of UK-Africa economic relations is stark. It warns of a flatlining of the relationship between the UK and African countries between 2008-2018 in terms of trade and investment, at a time of growth in the continent and increased integration through the African Continental Free Trade Area (AfCFTA). Reflecting insights from the APPG on Africa and ODI, it also presents the UK’s visa policy as a thorn damaging the relationship, but notes the good track record of UK aid for trade programmes such as TradeMark Africa and aid to support industrialisation in Ethiopia. It...

The East African Community (EAC) is likely to see a sharp decline in Foreign Direct Investments (FDIs) this year owing to the current Covid-19 pandemic that continues to ravage economies across the globe. According to the latest World Investment Report 2020 by the United Nations Conference on Trade and Development (Unctad) FDIs in East Africa declined by nine per cent to $7.8 billion in 2019, from $9 billion in 2018. The report forecasts FDI inflows to the continent will fall by 25 to 40 per cent in 2020, exacerbated by low commodity prices. “Although all industries are set to be affected, several services industries including aviation, hospitality, tourism and leisure are hit hard, a trend likely to persist for some time in the future,” said James Zhan, Unctad director of investment and enterprise. The decrease, according to the report, comes after the continent recorded a 10 per cent decline in FDIs flows to $45 billion in 2019 from $46 billion in 2018. Alternatively, the expected transformation of international production also brings some opportunities for development, such as promoting resilience-seeking investment, building regional value chains and entering new markets through digital platforms, the report reads in part However, capturing these opportunities will require a shift in development strategies. According to Mukhisa Kituyi Secretary-General of Unctad, export-oriented investment geared towards exploiting factors of production, resources and low-cost labour will remain important. But the pool of such investment is shrinking, and the first rungs on the development ladder could become much harder to climb. He...

Cross-border travel after COVID must be safe and predictable and shouldn’t require excess disclosure of personal health information. Developing such crossing experiences will take cooperation between the health sector as well as aviation, travel and tourism sector stakeholders. Timing is of the essence to prevent further harm to economies and make travelers comfortable with travel. When the six nations of the East African Community opened to essential trade in June, COVID-19 testing created kilometers of backed up trucks along the borders as truck drivers waited for hours to get test results. By working together to share test results in a harmonized system, border crossing and regional integration was later accelerated within East Africa. We need this kind of coordination and harmonization on a global scale. Unfortunately, that is not the current trajectory of COVID-19 era border crossing. COVID brought a patchwork of closed borders and complex border entry requirements as reopening countries attempted to balance the urgent need to restart travel and cross-border economic activity against the imperative of protecting their population’s health. Such disparate efforts are slowing travel and halting a range of industries such as tourism. Without intervention, these efforts will lead to fragmented policies and procedures and make international travel confusing and uncertain long into the future. Image: IATA The need: Safe, dynamic borders that respect private data For cross-border traffic to resume fully, travelers need border crossing experiences that are safe, predictable and do not require excess disclosure of personal health information. Such policies are not universally in place....