Last month, representatives of Maersk were invited to share their East Africa project in front of the World Trade Organization (WTO) in Geneva, hosting the fifth year review of Aid for Trade – a concept to support developing countries and their governments in recognising the role trade plays in their countries’ development. Maersk Line pointed out that the journey of a container encompasses a maze of processes and paperwork that greatly complicates a simple task of moving cargo from A to B, with these complications being cost-heavy due to lost or inaccurate information. "More than 30 individuals or institutions are involved in handling documentation and there are about 200 different communication interactions in the process, with public officials and between different companies," the group said. "Consequently, the time spent waiting on paper stamps and email replies costs just as much as the actual shipment, which simply is not a feasible or productive way to do business. For producers in Kenya all of the paperwork and its processes increase their total cost and limit their market access significantly." The mapping of numerous documentary requirements in the journey of flowers and avocados from growers in East Africa to retailers in the Netherlands was the first step of a new partnership between Maersk Line and TradeMark Africa, a not-for-profit organisation working to accelerate poverty reduction in the region through trade growth. The aim of the partnership is to identify ways to reduce trade barriers for Small and Medium sized enterprises (SMEs) and perishable...

Restrictive legal and regulatory policies coupled with poor infrastructure and logistic services are holding back East Africa’s manufacturing sector, says the Africa Development Bank The East Africa’s manufacturing sector report released on Friday shows manufacturers continue to experience problems in cross border trading and starting and closing a company. It shows productivity remains inhibited by a problematic energy supply and costly transport due to poor road network, limited availability of rail transport and poor logistics in ports. “From a regional perspective... the poor performance on trading across borders is particularly detrimental to the prospects for achieving rapid industrialisation,” it reads. The countries that were covered include Kenya, Rwanda, Burundi, Ethiopia, Uganda, Tanzania and Seychelles. According to the report, the contribution of manufacturing in the economies of these countries is relatively small, ranging from 3.8-11 per cent of the gross domestic product, compared to the levels between 30-40 per cent in industrialised countries like China and South Africa. The report shows manufacturing in East Africa is dominated by food and beverages, largely basic processing of agricultural output and the production of more refined consumer products such as soaps, perfumes and cosmetics. It shows Kenya has a comparative advantage in food and beverages, leather products, textiles and clothing, and in non-metallic mineral products including cement and ceramics. Rwanda has an edge in processed tea, Tanzania in textiles, Uganda in cement, clay and ceramics and the Seychelles in processed fish products, mainly tuna. According to the report, the limited role that manufacturing currently...

East African governments could be forced to raise taxes for their citizens as they move towards a common currency. Rwanda, Burundi, Uganda, Kenya and Tanzania have agreed to keep the gross public debt ceiling at 50 per cent of GDP in net present value terms as part of the EACs primary macroeconomic convergence criteria. Countries are expected to observe and maintain the criteria for three consecutive years in the run-up to the adoption of the monetary union and single currency in 2024. “This means that government spending will be controlled and countries will not be allowed to borrow beyond the set limit, forcing them to look for the other ways of generating revenue to fund their projects,” said Peter Njoroge, director of economics at Kenya’s Ministry of EAC Affairs, Commerce and Tourism. “The majority of countries look to raising taxes for their citizens to generate funds to run projects. They also include the other groups of citizens that were previously not in the tax bracket, such as non-governmental organisations, to generate revenue.” According to Mr Njoroge, the 50 per cent ceiling is likely to constrain EAC countries from undertaking huge infrastructure projects to avoid exceeding the debt ceiling. Alternatively, countries may be forced to phase the implementation of the huge projects in such a way that they do not break the debt ceiling thus projects take longer to implement. “In a way, it will instil fiscal discipline among partner states,” he said. “But the agreed upon ceiling will start applying...

East African partner states are working towards ensuring people can move and work freely in the region by December 31. Immigration and labour experts from Uganda, Tanzania, Burundi, Rwanda and Kenya have jointly proposed harmonised classification, procedures, forms and fees for issuance of entry/work/ residence permits for the EAC citizens into the partner states. This is expected to be adopted before December 31. But the partner states have divergent views on the harmonised work permit classifications for non-EAC foreigners, including diplomats, employees of international and civil society organisations, refugees, and foreigners seeking permanent residence. Mary Makoffu, EAC director of social sectors said that although the partner states have divergent views on foreign classifications, consultations are ongoing and a final report is expected in September for review by the EAC Labour ministers before it is presented to the Heads of States in November for approval. “The divergent views on some of the proposed classes will give guidance on the way forward in harmonising the classification of the work permits,” said Ms Makoffu. Tanzania was of the view that class D1 and D2, involving diplomats and employees of international organisations respectively, should not be provided for in the harmonised classifications since they are covered in other protocols. Burundi, Kenya, Rwanda and Uganda said that the classification should be maintained. “EAC countries need to prioritise harmonising procedures and work permit fees, labour laws and review their social protection Acts for their citizens to ease the free movement of labour in the region,” said...

The United Nations Conference on Trade and Development and TradeMark Africa have signed a memorandium of understanding (MoU) to boost trade in East Africa. According to a statement issued, the MoU signed in Geneva, Switzerland will help to boost trade in the region through collaboration trade and gender, trade facilitation, including customs automation and trade portals and improving port infrastructure. "UNCTAD is excited about this new partnership with Trade- Mark East Africa. This partnership reinforces UNCTAD capacity to assist East Africa in the implementation of trade enhancing reforms," the Deputy Secretary General for UNCTAD, Joakim Reiter is quoted as saying during the contribution agreement signing ceremony. Speaking at the signing ceremony, TradeMark CEO Frank Matsaert noted that trade infrastructure is critical to East Africa's prosperity and in creating the much needed jobs in the region. Currently, East Africa's trade corridors are characterised by long transit times and high costs. Freight costs per kilometre are more than 50 per cent higher than costs in the United States and Europe and for the landlocked countries, transport costs can be as high as 45per cent of the value of exports, he said. "We are delighted to enter into a MoU with UNCTAD which provides a platform for cooperation between our two organisations. This will help us work together with our partners in the EAC in a more coordinated way in such areas as implementing the Bali TFA and women in trade," he said. Source: All Africa

TANZANIA Ports Authority (TPA) launched a liaison office here, with the government promising to exemplary serve the Zambian business community using the Dar es Salaam port for the improved welfare of citizens in both friendly countries. Deputy Minister for Transport Charles Tizeba, speaking at the office’s inauguration ceremony, described the opening of the office as testimony of the Tanzanian government to strengthen port services to the region including Zambia. “I urge the Zambian traders to fully utilize this office,” the Minister told journalists after the launch of the office located at the Tanzania High Commission complex here. The minister said the new TPA office will help Zambia business community solve their quarries and problems in Lusaka instead of travelling all the way to Dar es Salaam. “They will be able to make payment for port charges in Lusaka and avoid the risk of carrying large sums of money to Dar es Salaam,” the Minister said. Zambia leads other countries to pass cargo at Dar port. He explained that the problem of being cheated by untrustworthy agents will now be history as the list of all registered clearing and forwarding agents will be readily available in Lusaka. Also cargo monitoring will be done from Lusaka and this will help speed up clearance as traders will have updated information on the status of their cargo. The office in Lusaka seeks to solve several issues Zambian business communities have been complaining about including port delays and unscrupulous clearing and forwarding agents. “Efforts are...

Geneva – July 1st, 2015 – The United Nations Conference on Trade and Development and TradeMark Africa have signed an MOU which is aimed at boosting trade in East Africa through collaboration on Trade and Gender, Trade Facilitation, including Customs automation and trade portals and improving port infrastructure. [caption id="attachment_8117" align="alignleft" width="600"] From Left to Right, TMA CEO Frank Matsaert and UNCTAD Deputy Secretary General, Joakim Reiter, exchanging MOU documents in Geneva.From Left to Right, TMA CEO Frank Matsaert and UNCTAD Deputy Secretary General, Joakim Reiter, exchanging MOU documents in Geneva.[/caption] Speaking during the contribution agreement signing ceremony in Geneva, the Deputy Secretary General for UNCTAD Joakim Reiter said: “UNCTAD is excited about this new partnership with TradeMark Africa. This partnership reinforces UNCTAD capacity to assist East Africa in the implementation of trade enhancing reforms”. Speaking at the signing ceremony, TradeMark CEO Frank Matsaert noted that trade infrastructure is critical to East Africa’s prosperity, and in creating the much needed jobs in the region. Currently East Africa’s trade corridors are characterised by long transit times and high costs. Freight costs per kilometre are more than 50% higher than costs in the United States and Europe, and for the landlocked countries, transport costs can be as high as 45% of the value of exports. “We are delighted to enter into a MoU with UNCTAD which provides a platform for cooperation between our two organisations. This will help us work together with our partners in the EAC in a more coordinated way...

In unity lies strength, so goes the popular adage. It is in respect of this that a 27 member trade delegation from Kenya recently visited Ghana to explore investment opportunities in the field of agriculture. It was basically to woo investors to each other’s country in the area of agricultural development taking into consideration the competitive advantage of both countries. The broad objective focused on promoting and deepening economic ties. This relationship is a reflection of the general inter-African trade among African states which according to statistics is about 12 per cent of total world trade. It was therefore heartwarming when the leader of the Kenya trade delegation and Cabinet Secretary, Adam Mohammed called for intensive collaboration among African states to enhance the economic development of the continent. The memorandum of understanding signed between the two countries stressed the need to promote cooperation in Agriculture development. This obviously, is one of the pragmatic ways of boosting South-South cooperation in general and inter African trade in particular. It is not surprising that African countries in recent times are increasingly taking advantage of the favourable economic opportunities and good governance to step up investment especially in Agri business. The fact is Agriculture remains the backbone of the economies of most African countries including Ghana and Kenya. Therefore it has become important for cross fertilization of ideas among African States to share experiences on advancing businesses related to agriculture. As has always been stated, the catalyst for Africa’s growth and development is through...

Zanzibar, Tanzania: Lack of standardised procedures on inspection of forest products on transit in Kenya and across her borders have encouraged illegal trade in the country. Illegal charcoal trade and movement of forest products across the borders by use of cheap means such as bicycles and pick-up trucks are some of the reasons that have encouraged the illegal trade on timber and timber products. Speaking at the third Annual East Africa Timber Trade Stakeholders Forum organized by World Wide Fund for Nature (WWF) and the Wildlife Trade and Monitoring Network (TRAFFIC), the Kenyan representative; Alex Lemarkoko the Enforcement and Compliance Commandant at the Kenya Forest Service (KFS) said that poorly kept records on the trade has made it difficult to follow up on progress. “A recent visit to four Kenya-Tanzania border points revealed that despite regular interagency meetings involving the Kenya Revenue Authority, the police, KFS, the Kenya Wildlife Trade, Kenya Plant Health Inspectorate Service (KEPHIS) and Kenya Bureau of Standards especially at the Taveta border; there is a need to develop a system for regular monitoring and tracking of illegal timber and timber products at cross border sites of Kenya and Tanzania,” he said. The stakeholder’s forum that kicked off on Tuesday and ends on Wednesday, it aims at addressing growing domestic demand for timber in the region along with growing intra-regional and inter-regional illegal trade of timber and other forest products flowing across mainland Tanzania, Kenya, Uganda, Zanzibar, Madagascar, Zambia, Mozambique, Malawi and the Democratic Republic of Congo...

Over the past 25 years, an astounding one billion people have lifted themselves out of extreme poverty, reducing by more than half the number of those living in such deplorable conditions. This is great work but we can do even better. In the next 15 years, we believe that international trade, which has boosted economic growth and improved access to new technologies and innovations, has played a significant role in reducing extreme poverty in the past, and it can do so in the future. But while trade can lift economic growth, the poor do not automatically benefit from new trade opportunities. Many people simply face too many obstacles to benefit from increased trade. Gender inequalities mean that women face a range of constraints that limit their ability to participate in trade. The rural poor are often isolated from markets and lack access to technologies like modern seeds and fertilisers that could boost their incomes. In times of economic downturns, workers in the informal sector often fall into poverty without any type of social safety net. And more than 40% of the extreme poor live in fragile and conflict-affected areas, creating a major hurdle for the poor to reap the gains from trade. But the World Bank and the World Trade Organisation – the world’s largest multilateral development and trade organisations – believe a series of policies can help countries deliver the benefits of trade to all their citizens, including the poorest. Our latest joint report The Role of Trade in...