News Categories: Tanzania News

EDITORIAL: Sense of proportion needed in EA infrastructure push

In a couple of weeks, Kenya will open the first phase of its multi–billion dollar Lamu Port, the beachhead to the Lamu Port South Sudan Ethiopia Transport (Lapsset) Corridor. That will be the second new logistics corridor after the Djibouti-Ethiopia standard gauge rail that went into service a few years ago. Yet to be done, Djibouti is also in the middle of a mega project to expand its port while to the south, Tanzania which has in recent years completed upgrades to the Dar es Salaam port, is now betting on a new port at Bagamoyo. Invariably, all these projects target the Eastern Africa hinterland with all contenders aiming to be the logistics hub of the region. Looking at East Africa’s or even Africa’s logistics map, it is not in dispute that the region and continent suffers a huge infrastructure deficit. But must the projects be this grandiose? There is indeed a case for developing infrastructure but a sense of proportion and degree of co-ordination are needed to make these projects viable. Multiple corridors provide critical redundancy in the event of failure, if they are inter-linked. But their economic efficiency needs to be looked at in more practical than academic terms because the economies are racking up huge debt to build these projects. For instance, the Lapsset Corridor aims to link Lamu, South Sudan and Ethiopia along a logistics umbilical cord comprising rail, an oil pipeline, electric power and roads. At the same time, if at all the Kenya standard...

Zambia signs US $147m deal for development of a dry port

The government of Zambia has signed a US US $147m deal with Africa Inland Container Depot (AFICD) of Tanzania for the establishment of a dry port in the central town of Kapiri Mposhi. According to the signed agreement, the port will be an integrated logistics and industrial hub that will provide services to clients across eastern, central and southern Africa thereby increasing regional market access for Zambian products. Dry port project The project will be built on a Build-Lease-Transfer (BLT), Public-Private-Partnership (PPP) model. The area where the Kapiri Mposhi Dry Port is earmarked for is located on the northern side of New Kapiri Mposhi Railway station, measuring approximately 4.3756 hectares (10.81 acres), with an already installed gantry crane of 36mt lifting capacity. CEO of the IDC Mateyo Kaluba said that construction will be done in two phases. Phase one will involve construction of the dry port while the second phase will see an establishment of a multi-facility economic zone. Share holders The Industrial Development Corporation (IDC), the investment arm of the Zambian government, will hold 15% of shares in the project while the Tanzanian firm, Tanzania-Zambia Railway Authority (TAZARA) will hold 85%. The Dar es Salaam Corridor Group (DCG) will take hold of the four-hectare piece of land, construct the Dry Port, operate (lease) it for 25 years and, thereafter, transfer all the immovable assets to TAZARA. Approximately 500 jobs will be created during construction and up to 3,000 direct and indirect jobs will be created when the dry port becomes operational. “This is a...

The Africa Continental Free Trade Agreement…An Important Instrument For Ghana And Africa’s Economic Advancement [PART 1]

Kwame Nkrumah famously proclaimed on the night of Ghana’s independence that “Our independence is meaningless unless it is linked up with the total liberation of Africa”.  Africa, a continent rich in natural resources, holding around 30% of the world’s mineral resources is at the same time home to 5 of the 10 poorest countries in the world. In a recent report, the World Bank projects that a staggering 90% of the world’s poor may reside in Africa by 2030. Barriers to free regional trade, political turmoil, inadequate infrastructure and weak financial institutions remain key hurdles to economic advancement. Despite how grey the narrative looks, Africa’s growth outlook remains buoyant and continues to attract high foreign direct investment. Nkrumah’s vision was to restore Africa’s identity, “We are going to see that we create our own African personality and identity. We again rededicate ourselves in the struggle to emancipate other countries in Africa”. His desire was to see a well-functioning continent capable of harnessing its rich resources to become a global economic powerhouse. Kwame Nkrumah saw the need for neighbourhood/regional political independence – for he knew Ghana cannot be the only free country in Sub-Saharan Africa. He accordingly spent a great deal of his time, Ghana’s time and resources supporting the political liberation of fellow African countries. The going together, working together approach that Kwame Nkrumah and our political forefathers adopted in the political sphere is needed in economic development. Though recognized, the focus and zeal with which it was deployed in...

IMPROVING GENDER EQUALITY IN TRADE AS A WAY OF AIDING DEVELOPMENT

Symposium on Inclusive Participation of Women in Trade, which took place in Nairobi in September, was co-organised by Professor Leïla Choukroune and attended by Nancy, who is a PhD Candidate in the Faculty of Business and Law. Nancy says: ‘The Symposium dealt with the broader perspective of emerging global issues in trade and narrowed down to inclusivity of women in trade from a gender perspective. The event attracted high-level dignitaries including Kenya’s Minister for Trade, UNCTAD Secretary General, Ambassadors and CEOs from various organisations across the globe. Various presentations were made by specialists ranging from information technology, data analyses and legal perspectives. My paper was titled:’Legal Framework for Inclusion of Women in Trade: Case of the United Kingdom vis a vis Kenya.’ This was informed by the 2030 United Nations Agenda for Sustainable Development, which included 17 Sustainable Development Goals (SDGs) aimed at ending poverty, hunger and inequality, supporting action on climate change, improving access to health and education, and building strong institutions and partnerships. The inclusion of a standalone goal (Goal 5) on women’s equality, as well as the mainstreaming of gender and inclusion through the other 16 goals, is a key achievement for the international community. Gender inequality in most spheres of development remains a major barrier to human development. The presentation demystified the legal and institutional framework of the rights of women in trade, reasons for the shift from exclusion and marginalisation of women for many decades and an increase in inclusion by creation of relevant legislation...

EAC Regional Meeting on Trade Facilitation

The EAC Regional Meeting on Trade Facilitation is the first meeting of the EAC Sub-Committee on Trade Facilitation under the UNCTAD Phase II project on Trade Facilitation, funded by TradeMark EA. The project is aimed at providing technical assistance to the EAC Secretariat and the EAC Partner States in trade facilitation reforms and simplification of trade procedures built upon the Trade Information Portals, all implemented by UNCTAD. The meeting will ensure a coordinated and harmonized implementation process of the trade facilitation policies in the EAC region. The EAC Regional Meeting will be held in Dar es Salaam, Tanzania, on 22-25 October 2019 under the leadership of the EAC Secretariat with the participation of the Chairs of the NTFCs, Representatives of the Customs Authority and the East African Business Council. At the end of the EAC Regional Meeting, the EAC Secretariat will prepare recommendations to be presented and adopted by the EAC Sectoral Council on Trade, Industry, Finance and Investment in November 2019. Source: United Nations Trade and Development

Agriculture as a vehicle for increasing women’s participation in global trade

Recently, there has been a widespread recognition towards agriculture as an engine of growth and poverty reduction in developing countries.  Yet the sector keeps under performing in many parts of our continent and other developing countries. Globally, women produce 50% of global food products and comprise, on average, 43% of the agricultural labour force in developing countries according to FAO statistics. In African countries, according to the UNDP, the economic and social discrimination against women actually costs Africa USD 105 billion a year or 6% of the continent’s annual Gross Domestic Product(GDP). In Tanzania, agriculture is a principal source of income and livelihood for about 65% of the population contributing an estimated 30%to the GDP. There is a greater participation of women than men in the sector split 81% and 73% respectively -the number increases to 98% for women in rural areas. Many of the world’s poorest countries rely on traditional agricultural crops for export however,it has been proven that participation in high-value export commodity chains such as horticulture and fisheries provides considerable opportunities for growth and poverty reduction. An analysis conducted by International Trade Center Non-Tariff Measures Surveys across 20 countries in 2015 revealed that when it comes to gender parity, far fewer women owned businesses are engaged in international trade than those owned by men. Diversification into high-value agricultural exports has been cited as a key means of linking the world’s rural poor to global markets. But how do we unlock this potential of agriculture for improved livelihoods...

Tanzania Open to Talks Over $10 Billion Port Project, Daily Says

Tanzania is open to discussions with investors on the $10 billion Bagamoyo Port project, but will prioritize the interests of the East African nation, the Daily News newspaper reported, citing Tanzania Ports Authority Director General Deusdedit Kakoko. Talks on the proposed port have stalled because investors’ conditions were likely to prevent Tanzania from reaping the maximum benefit from the project, the newspaper said. The Port Authority proposes a 33-year lease for the Bagamoyo Port investors, who are seeking a 99-year term. Tanzania signed a framework agreement in 2013 with China Merchants Holdings International, with financial backing from Oman’s State General Reserve Fund, to build the port and a special economic zone that is intended to establish a regional trade and transport hub, the Dar es Salaam-based newspaper said. Source: Hellenic Shipping News

Africa: Kagame – Africa Must Fund Her Own Transformation

The African continent cannot continue to rely on foreign aid to finance its transformation, President Paul Kagame has said. Kagame was speaking in Abidjan at the 8th CGECI (Confédération Générale des Entreprises de Côte d'Ivoire) Academy, the largest annual gathering of Private Sector in the West African country. The summit brings together the private sector of the West African countries and covers topics such as avenues to grow competitiveness, relevance and growth among other topics. "We have to reach a point where our countries have the capacity to finance our own transformation. Development aid has been useful and it continues to be useful, especially when we work to get the most impact out of every cent that we receive. But the point has never been to remain dependent forever when we have always had the potential to be wealthy ourselves," Kagame said during the keynote address. Rather than continuously look to other countries for aid, Kagame said that there are more productive ways for Africa to partner with various countries and regions for mutual benefit. This year's conference is themed around creating a conducive business climate. To create a more conducive business climate, Kagame said deliberation among public and private sector from various countries are crucial to share connections and experiences. "One way to advance this cause, is through forums like this one. Coming together here, we make useful connections, share experiences, and learn from each other. The starting point is ensuring that relevant actors in both the public and...

EAC seeks safe, orderly migration

AS US readies to support the East African Community (EAC) in controlling the deadly Ebola fever from spreading across borders, the latter is joining hands with International Organisation for Migration (IOM) to ensure safe, orderly and regular migration within the bloc. This comes as the six partner states look to bolster free movement of persons – migration that is being facilitated by the commitment of Tanzania, Kenya, Uganda, Rwanda, Burundi and South Sudan in the implementation of the EAC Common Market Protocol provisions. To that end, there is development of a regional policy on eimmigration, progressive implementation of integrated border management, initiatives to build the capacity of immigration officials and other border management authorities. Along with that, it is implementation of the monitoring and evaluation framework and data collection of migration movement in the Community that Ambassador Mfumukeko says need support from stakeholders and specifically calls for IOMto lend a hand in as far as migration is concerned. The Secretary General says that the Community is concerned about security issues that could arise due to free movement of persons within and outside the EAC. He expresses concern at the overdependence on the United Nations High Commission for Refugees (UNHCR) when it comes to support for refugees, repatriation and supporting the welfare and rights of refugees. When he met the new IOM Regional Director for the East and Horn of Africa, Mr Muhammed Abdiker at the EAC Headquarters here last week, the diplomat said that refugees were a special category of...

Duplication of standards, laws killing businesses–UN

Duplicate standards and regulations across different state agencies are stifling businesses and investments in the country, United Nations Industrial Development Organization (UNIDO) has warned. The UN specialized agency that promotes industrial development yesterday called for harmonization of standards and regulations, both in the private sector and government, to ensure the cost of doing business remains low. According to UNIDO, the private sector has for long suffered from regulations and standards that are similar across the ’numerous’ state agencies, where costs such as licensing and inspection fees are payable. This has continued to ‘punish’ business and the private sector at large, the agency notes. “Government needs to have regulations and standards that address the real problem not just over regulating, it needs to address only the problem, we don’t want laws to become roadblocks we want laws that are facilitative,” said Andrew Edewa, UNIDO standards expert. He spoke during the World Standards Day(2019) celebrations in Nairobi, an event snubbed by the Industry, Trade and Cooperatives CS Peter Munya and the Kenya Bureau of Standards (KEBS) managing director Bernard Njiraini. According to the UN, there are laws in the health department, trade, industry among other state organs that are duplicated, adding pressure to the private sector. These add to business to business standards which all put together, they are stifling businesses. “The government is speaking tough on their end , private sector has its own business to business standards, the marrying of these two seems to be a problem and it is affecting...