Global warming could create substantial economic damage in agriculture, a new study conducted by a team of scientists of the Potsdam Institute for Climate Impact Research finds. Around the globe, climate change threatens agricultural productivity, forcing up food prices. While financial gains and losses differ between consumers and producers across the regions, bottom line is that consumers in general will likely have to pay more for the same basket of food. As the additional expenditure for consumers outweighs producers' gains, increasing net economic losses will occur in the agriculture and food sector towards the end of the century. However, economic losses could be limited to 0.3 percent of global GDP - depending on agricultural trade policies. "Agriculture is very sensitive to climate change - even a small increase of global mean temperatures can have significant effects on regional crop yields, affecting both the profitability of agricultural production and the share of income spent on food", lead author Miodrag Stevanovi? says. "Our study quantifies economic impacts and analyses the role of international trade as an adaptation measure. We find that economic losses in agriculture could add up to the annual amount of roughly 0.8 percent of global GDP at the end of the century with a very restricted trade regime. As small as this percentage sounds, it actually translates to losses of 2.5 trillion US Dollars and is comparably higher for regions with limited agricultural resources with respect to growing agricultural demand, for example the Middle East, Africa and India. In...

Tullow Oil workers at a drilling rig in Turkana. Tullow struck Kenya’s first oil in the northwest region of in Lokichar in 2012, and followed it with a string of other finds. PHOTO | FILE  IN SUMMARY Tullow Oil will initially produce 2,000 barrels of crude oil per day and have stocks ready for export in June 2017. Kenya plans to have the oil transported by road from Turkana to Eldoret for onward delivery by train to the port of Mombasa. British oil firm Tullow on Wednesday raised Kenya’s hopes of becoming an oil exporting country after it officially announced plans to start producing oil from Turkana in March next year. Tullow Oil chief operating officer Paul McDade told President Uhuru Kenyatta at State House Nairobi that it will initially produce 2,000 barrels of crude oil per day and have stocks ready for export in June 2017. The announcement is in line with State House’s plan to have the oil transported by road from Turkana to Eldoret for onward delivery by train to the port of Mombasa — a distance of 1,089 kilometres. “Following President Kenyatta’s directive that exportation of Kenya’s first oil be expedited, Tullow Oil has this afternoon confirmed that it will start oil production in March next year,” a statement from State House said. Tullow’s count of the Turkana oil reserves so far stands at 750 million barrels — which is considered commercially viable at the current prices of $50 (Sh5,050) a barrel. One barrel is equivalent...

Mr Iswaran (left) during the signing ceremony yesterday. The agreements come at a time of growing interest among Singapore firms to explore opportunities in Africa. Photo: IE Singapore Agreements on tax, bilateral investment and air services open doors to emerging market. SINGAPORE — The Republic yesterday inked several tax, investment and air services agreements with Africa, in a move that will boost relations with the world’s second-largest and second most-populous continent. The agreements will also ease entry by Singapore firms into a region that investing guru Mark Mobius once described as the emerging market story of the next decade. Among the agreements signed by Minister for Trade and Industry (Industry) Mr S Iswaran at the fourth edition of the Africa Singapore Business Forum (ASBF) was an Avoidance of Double Taxation Agreement (DTA) with Ethiopia, a Bilateral Investment Treaty (BIT) with Mozambique, and a Bilateral Air Services Agreement (ASA) with Nigeria. “While our traditional overseas markets remain important, Singapore companies must venture beyond these markets to seize opportunities in untapped markets in regions such as Africa. Ethiopia, Mozambique and Nigeria are three fast-growing African economies and the agreements signed today signify commitment on the part of Singapore and the respective African governments to support trade, tourism and investment between our countries,” said Mr Iswaran. The Ethiopia-Singapore DTA clarifies the taxing rights between Singapore and Ethiopia, on all forms of income flows arising from cross-border business activities, and minimises the double taxation of such income. This will lower barriers to cross-border investment,...

CRAFTS producers in East Africa will soon be able to sell their products to international markets following the plans to establish an annual professional for Business-to-Business (B2B) trade fair for Home Décor, Fashion Accessories and Lifestyle products in the region. Currently, there is no B2B trade platform for the crafts sector in the whole of East African region. The Africa and Middle East World Fair Trade Organization (WFTO) regional director, Mr Bernard Outah said there is need to establish B2B so that producers could easily sell their products to any country of their choice without problem. He said, at the moment, the only option for producers to reach regional or international buyers is to travel around the region in search of potential buyers or to participate in trade fairs in South Africa, West Africa or International trade fairs in Europe or the US. He said the high cost of participation fails most of African crafts producers from attending international trade fairs. “Failure to access market opportunities is one of the key challenges that face most of African crafts producers in East African region,” he said. According to Mr Outah, the establishment of B2B will enable East African crafts producers to excel in the area and boost their businesses at both local and international levels. Meanwhile, the public has been urged to recognize the crafts sector as a key economic sector in the region and offer required support so that it can unfold its potentiality. CBI programme manager for the export...

By Joseph Olanyo The East African countries must commit to develop the agro-processing sub-sector but also take care of the climate change issues therein, experts have said. Climate change, food security and trade experts were gathered in Kampala recently to review recent policy research on how agro-processing can become more climate sensitive, trade driven and food security enhancing in the region. "The region's success in realising this potential will partly depend on its ability to factor in the ever-increasing challenges posed by climate change, and work in synergy with its own trade agenda," said a statement released after the meeting. The regional meeting, jointly organised by CUTS Geneva and SEATINI, also identified necessary policy actions to be pursued over the next three years under the regional project "Promoting Agriculture, Climate and Trade Linkages in the East African Community - Phase 2" (PACT EAC2). The project seeks to build capacities of East Africans to be climate-aware, trade-driven and food security-enhancing agro-processing in their region. "We all agree that climate change is real, and that agro-processing is the way forward. These issues are intertwined," said Fred Mukasa Mbidde, the chairman of East African Legislative Assembly's Committee on communication, trade and investment. Dr Oswald Mashindano, a principal research associate with the Economic and Social Research Foundation Tanzania, said that whereas agro-processing development has been earmarked as a key regional priority, multi-pronged challenges continue to affect the East African region. Mashindano, also a rural development academic at the University of Dar es Salaam said...

Elephant tusks. Elephants are some of the endangered wild animals targeted by poachers. / Net. The East African Legislative Assembly (EALA) is calling on East African Community Partner States to enact new wildlife legislation with enhanced penalties and improve strategies and protection measures in a bid to save the region’s wildlife. Findings by EALA’s committee on agriculture, tourism and natural resources indicate that elephants and rhinoceros are the animals most vulnerable to poaching but other species including leopards, pythons, marine turtles and others are also endangered. The committee’s oversight activity report says that contributing factors include persistent weaknesses in the legislation governing wildlife crime, along with poor administration and low levels of compliance. “The Committee recommends the EAC Secretariat to expedite the ongoing anti-poaching strategy to combat poaching, illegal trade and trafficking of wildlife and wildlife products to foster regional coordination,” said committee chairperson MP Christophe Bazivamo (Rwanda). Christophe Bazivamo. “We recommend the EAC Secretariat to develop common strategies, standards, and guidelines for conservation of shared natural resources. The Committee also urges East African elephant range countries, and those through which ivory transits, to create national anti-poaching multi-agency security task force.” The report was presented Tuesday as the Assembly begun its ordinary sitting in Arusha, Tanzania. Other measures called for include forming specialised units to combat poaching and illegal wildlife trade, enhancing inter-agency collaboration, and increasing international cooperation. Wildlife crime is one of the most lucrative forms of illegal activities worldwide and it hurts people, communities and economies. Besides urging...

Dr Papias Malimba Musafiri, the minister for education, speaks during the first East African stakeholders' workshop on science, technology and innovation as Dr Ignace Gatare, director-general of National Commission for Science and Technology (L), looks on. At the workshop in Kigali, Musafiri said maximising science and technology is part of the government's agenda to enhance products value addition. / Nadege Imbabazi. Maximising use of science and technology is part of the government’s agenda to increase products value addition, Education minister Papias Musafiri has said. The minister was speaking, yesterday, as experts met to devise regional priorities in science, technology, and innovation funding workshop in Kigali. The workshop convened regional scientific bodies and commissions, under the East African Science and Technology Commission (EASTECO). It sought to design a five-year action plan in integration of science and technology toward socio-economic transformation and sustainable development. Head of DFID Rwanda Laure Beaufils speaks during the first East African stakeholders' workshop on science technology and innovation. / Nadege Imbabazi Minister Musafiri said a policy on science and technology should provide tangible and palpable solutions to prevailing challenges. “The role of science and technology, first of all, is to provide simple technology that should later be disseminated or transferred to support either farms or small-scale industry activities and to ensure that we have some facilities at the lower level processes of the materials which are being produced,” he said. A participant follows proceedings. / Nadege Imbabazi. Musafiri said it was important to create a value addition...

The East African Community needs a strong and uniform regulatory framework that promote financial inclusion to ensure sustainable growth in the region. Prof Lemma Senbet, from the African Economic Research Consortium says that a regionally integrated financial system that feeds into a global system will help strengthen the financial industry on the continent. Senbet also noted that a strong linkage between the financial industry and other sectors of the economy is crucial for Africa. The professor stated that It is important to have a globally competitive financial system and regulatory framework to ensure best practices. Source: TVC News

(L to R) Trade and Industry (Industry) Minister S Iswaran, Deputy Prime Minister Tharman Shanmugaratnam and Mozambique's Minister of Trade and Industry Ernesto Max Elias Tonela. (Photo: Calvin Hui) SINGAPORE: Trade relations between Singapore and Africa are set to deepen, with several agreements signed on Wednesday (Aug 24) at the fourth edition of the Africa Singapore Business Forum. These include the signing of the Avoidance of Double Taxation (DTA) with Ethiopia, a bilateral investment treaty (BIT) with Mozambique and an Air Services Agreement (ASA) with Nigeria. According to a joint press statement from the Ministry of Trade and Industry, Ministry of Transport and Ministry of Finance, Ethiopia-Singapore DTA clarifies the taxing rights between both countries. This covers all forms of income flows from cross-border business activities and minimises double taxation of such income, they said. Meanwhile, the Mozambique-Singapore BIT is a legally binding agreement on how the Mozambique government should treat investments from Singapore, and vice versa. With this agreement, Singapore companies operating in Mozambique will enjoy protection on top of what is already accorded under the country's domestic laws. The Nigeria-Singapore ASA provides a framework to enable the establishment of air linkages between both countries, as airlines from both countries can operate an agreed number of passenger and cargo flights between Nigeria and Singapore, and beyond both countries. They were signed by Trade and Industry (Industry) Minister S Iswaran and respective representatives from the countries - Ethiopia's Minister of Foreign Affairs, Tedros Adhanom, Mozambique's Minister of Trade and Industry...

Dar es Salaam — A critical analysis to establish the reasons for a drop in cargo volume at the Dar es Salaam Port is underway, a top official has said. But Tanzania Ports Authority (TPA) director general Deusdedit Kakoko gave no figures or possible causes for the decline. Nonetheless, he said in 2014/15 fiscal year the ports collectively handled 15,979,693 tonnes of cargo compared with 15,427,830 tonnes in 2013/14. The ports handled 4.732 tonnes of cargo destined to neighbouring countries during the same period and the authority collected Sh679, 316.95 and spent Sh464, 653.32. Meanwhile TPA is implementing 163 projects to raise the performance of ports and contributing immensely to economic development. According to Mr Kakoko, $690 million will be spent on Dar es Salaam Port projects. The money will be sourced through soft loans and grants. The International Bank for Reconstruction and Development will offer a $600-million-soft loan while the UK's Department for International Development and Trade Mark East Africa will jointly offer a $30-million grant. The Tanzania government will contribute $60 million. The money will be spent on 10 schemes which include increasing berth depth to 14 metres covering berth number 1 to 11; increasing the number of scanners from three to five; building a new berth at the Gerezani Creek and two more at number 13 and 14 locations, deepening to 14 metres the port's gateway, installation of a conveyor system and silos, modernisation of railway network within the port, expansion of Bandari-Mivinjeni road and completion of...