Kampala- Uganda leads the rest of East Africa in ease of access to foreign exchange, according to the 2019 Absa Financial Market Index. The country, according index, scored 70 out of 100 points compared to Rwanda’s 66, Kenya’s 65 and Tanzania’s 60. Burundi was not surveyed. Access to foreign exchange continues to be a pillar growth across the African continent. The Absa Africa Financial Markets Index evaluates financial market development in 20 countries, and highlights economies with the clearest growth prospects. The index seeks to position how economies can improve market frameworks to meet yardsticks for investor access and sustainable growth. Presenting findings of the index in Kampala yesterday, Mr Jeff Gable, the Absa chief economist said: “Uganda performs strongly … with almost the same score as top-ranked South Africa. It has a high level of foreign reserves relative to net portfolio investment flows and enough reserves to cover more than four months of imports.” Interbank foreign exchange turnover used as a measure of foreign exchange liquidity, he said was $20m in the year to June 2019, one of the highest in the index. Mr Gable said Uganda has enough foreign exchange reserves to cover its portfolio flows with net portfolio investment in 2019 standing at $97m, which is low relative to reserves of $3.4 billion. Easily accessible  According to the findings of the index, survey respondents said foreign exchange was easily accessible but the study noted that Uganda could score more points by adopting the Global Foreign Exchange Code of...

There has been much hype about a major Africa investment summit being hosted by the UK. Attended by Prime Minister Boris Johnson and an array of royals, a great deal of hopeful win-win-win rhetoric abounded linked to forging new partnerships for a post-Brexit future.At the summit, Ghana, it seems, is being given top treatment as a favoured destination, while Zimbabwe appears to have been snubbed despite being “open for business”.UK aid policy these days is focused on promoting UK trade interests abroad, with the government adopting a global business promotion approach for UK firms. The linking of aid and trade, of course, has a history in Britain.In 1994 the Pergau dam scandal – in which aid was used as a sweetener for an arms deal – led to the commitment to untie aid. It also led to the establishment of a separate development department and an Act of Parliament specifying how aid must be spent. This consensus on aid since the mid-1990s, however, is now under threat. Trade and investment can, of course, help reduce poverty, promote women’s empowerment and be good for children’s rights.But the opposite may be true too. There are many different business models – and so labour, environmental and rights regimes – with very different outcomes. We’ve been looking at some of these issues over the last few years across several projects.All were funded by the UK’s Department for International Development. The project compared three broad types of commercial agricultural investment: estates and plantations; medium-scale commercial farms;...

The Uganda National Roads Authority (Unra) has unveiled plans to rehabilitate and expand the Masaka-Kyotera-Mutukula road. The project is to be funded by the African Development Bank under the New Partnership for Africa’s Development programme of the African Union. Mr Mark Ssali, the head of public and corporate affairs at Unra, said the road will expanded to a single carriageway. “The total road way shall be 11m wide except for Kyotera Town where the road will include a parking lane of 3 metres,” he said in an interview at the weekend. Mr Ssali revealed that the new road designs are expected to be ready by March and thereafter construction works will commence. “Once the design studies are concluded, the East African Secretariat will secure funds for the road implementation under the similar arrangement,” he added. Mr Ssali said the Masaka-Kyotera-Mutukula highway has been prioritised for expansion because it links the central corridor to the northern corridor, which are the main transit routes in the East African region. “This project is part of Mutukula-Kyaka/Kasulo-Kamunazi and Bugene-Kasulo road on the Tanzanian side, which serve as an alternative route to the coast for Uganda through the Dar es Salaam port,” he said. Rising case Since 2017, there has been a remarkable increase in volumes of transit cargo through Mutukula border ever since it became a one-stop border post, which operates 24 hours daily. Transit goods, passengers, travellers and exports exiting through Mutukula to either Tanzania or Uganda stop once for clearance by immigration...

The Kenya National Highway Authority (KeNHA) has started the process to construct part of the 460-kilometre East African Coastal Corridor development project. Tenders were advertised for the two phases of the 13.5km Mombasa—Mtwapa (A7) section, which entails the construction of a four-lane dual carriageway. The works include construction of a grade separated junction, service roads, storm water drains, major and minor drainage structures, access roads and social amenities along the road. The project has already received funds from the African Development Bank (AfDB) and a grant from the European Union. Last June, Gabriel Negatu, East Africa director general of AfDB said construction of the road would begin this year. “Both the Kenya and Tanzania governments have finalised all their requirements to pave way for the construction of the coastal highway,” Mr Negatu said. The Coastline Transnational Highway project, conceived more than two decades ago, covers Bagamoyo-Tanga-Horohoro on the Tanzania side and Lunga Lunga-Mombasa-Mtwapa-Malindi on the Kenyan side, and is expected to cost $751 million. According to an agreement signed last November, AfDB will finance 70 per cent of the highway and the governments of Kenya and Tanzania will cover 30 per cent. Last December, AfDB approved of the $384.22 million financing package for the road construction a few months after the EU gave a grant of $33.41 million or 7.7 per cent of the total project cost to the government of Kenya. The road is a priority item in AfDB’s Eastern Africa Regional Integration Strategy and the Country Strategy Papers...

The ongoing Kenya-Uganda trade dispute on milk tariffs could deal a blow to hopes of Common External Tariffs (CETs) and Non-Trade Barriers(NTBs). The differences between the two neighbours started in December when Kenya introduced a 16 per cent value-added tax (VAT) on milk imports from Uganda as part of measures cushion the local dairy sector. This was later followed by the seizure of Lato milk produced by Uganda's Pearl Dairy by Kenyan authorities. Uganda has threatened to retaliate. The country's minister for East Africa Community Affairs Julius Muganda told the New Vision newspaper that Uganda will retaliate by targeting a number of Kenyan goods, key among them packed juices, assorted household items and roofing materials in a similar protectionist move. This comes just ten days after Uganda's Ministry of Foreign Affair wrote a protest letter to Kenya, demanding immediate and unconditional release of 23 tonnes of Lato milk impounded starting late December. “Cease any operations specifically targeting Ugandan made milk exported to Kenya. Refrain from any actions against Uganda’s exports to Kenya be it milk or any other products that contravene the EAC customs union and common market protocol,'' the protest letter read. It further asked Kenya to take responsibility for any spoilage of products seized and losses suffered. Kenya, Uganda said should address any trade concerns within the EAC and bilateral frameworks instead of resorting to arbitrary means that could jeopardise trade relations. Kenyan officials did not respond calls or messages on the position taken by Uganda. The simmering hostility Kenya...

The UK this past week opened a new chapter in its relations with African countries at a summit to set the tone for the country’s trade and diplomatic ties with the continent after exiting the European Union. British Prime Minister Boris Johnson hosted leaders from 21 African countries in London, where 27 deals worth an estimated $8.5 billion (£6.5 billion) were signed at the UK-Africa Summit held on January 20. The summit came just months after Japan and Russia hosted African leaders in their respective capitals last year. “We want to build a new future as a global free trading nation, that’s what we are doing now and that’s what we will be embarking on, on 31st of January,” Mr Johnson told the gathering in London. “But I want to intensify and expand that trade in ways that go far beyond what we sell you or you sell us.” The tone of the meeting signalled a shift in Mr Johnson’s attitude towards Africa. Eight years ago, as mayor of London, he wrote a commentary in the Spectator Magazine suggesting that Africa would have been better off if the UK was still its colonial master. Britain expects to start an 18-month transition from being a member of the EU beginning January 31, to being an independent country capable of signing bilateral or multilateral trade deals. Britain may have to renegotiate all trade deals initially signed under the EU, including with African countries. In the EAC, for example, Britain had been a...

With the AfCFTA expected to increase intra-African trade by 52 per cent by the year 2022, the journey towards making it a reality is in high gear. The Africa Continental Free Trade Agreement seeks to have the removal of tariffs on 90 per cent of goods traded within the continent. Towards this, UNCTAD and the African Union have developed an online platform to help remove non-tariff barriers to trade in Africa. The tool became operational on January 13. Moving goods across the continent Traders and businesses moving goods across the continent can now instantly report the challenges they encounter, such as quotas, excessive import documents or unjustified packaging requirements. To improve the movement of goods across the continent and reduce the cost importers and exporters in the region face, the tool will help African governments monitor and eliminate such challenges which slow trade costing the continent billions of dollars annually. The African Union’s Agenda 2063 seeks to transform Africa into a global powerhouse of the future. The need to envision a long-term 50-year development trajectory for Africa is important as the continent needs to revise and adapt its development agenda due to ongoing structural transformations; increased peace and reduction in the number of conflicts; renewed economic growth and social progress; the need for people-centred development, gender equality and youth empowerment; changing global contexts such as increased globalization and the ICT revolution; the increased unity of Africa which makes it a global power to be reckoned with and capable of rallying support around its own...

Trade wars and border blockades within the East African region cost Uganda $454.7m (Shs1.6 trillion) worth of export revenue for the year ended December 2019, according to data sourced from Bank of Uganda, Uganda Revenue Authority and Uganda Coffee Development Authority. The data indicates that Uganda lost much more revenue from Kenya and Rwanda compared to other EAC member states. For instance, according to the data, Uganda’s export receipts from Rwanda declined to $173m (Shs640b) in 2019 from $250m (Shs925b) in 2018. Uganda at last lost $75.6m (Shs280b) of revenue specifically due to a decline in exports from companies such as Hima Cement, Roofings and Movit, among others. Exports revenue to Kenya, according to the data, declined to $535m (Shs1.9 trillion) in the period from $825m (Shs3 trillion) in 2018. This means that at least export revenue worth $290m (Shs1 trillion) was lost mainly due to cautious purchase of Uganda’s maize, sugar, beef and poultry products. Cautioned  Kenya, despite experiencing scarcity and low supply of maize on its market, cautioned against Uganda’s maize on claims that it contained aflatoxins, a poisonous substance that is produced by molds. The country has also not fully embraced Uganda’s poultry products despite lifting a ban against the same in 2018. Kenya and Uganda are currently involved in a milk export war, which by last week had at least cost Uganda about Shs1b worth of export revenue, according to details from Private Sector Foundation Uganda. Rwanda continues to maintain a blockade at the Katuna border...

The Epower forum, recently hosted at Nairobi’s Movenpick Hotel, unfolded the key issues regarding the way in which E-commerce can enable cross border trade for women in light of the African Continental Free Trade Agreement (AFCFTA). In attendance were over 150 women owned SME’s. The basis of the event touched on how cross border trade can be made simpler, more cost effective, whilst creating new business opportunities and enhancing social development. This comes at a time where the advancement of technology is at an unprecedented level. Eric Wainaina, from Africa’s talking, said “It is annoying to hear, that Africa is not at par with the rest of the world concerning technology. It’s not true” With regards to how E-commerce is relying on technology, it was made increasingly clear that the uptake of more technology will allow for seamless patterns, instead for operating in a fragmented manner, ensuring more out of the value chains. This was emphasized by Gloria Atuheirwe, Director Women in Trade East Africa, “ICT to facilitate trade, automating and making trade easier. ICT to be the building blocks for improving outreach, processes and efficiency”. Outlining trade issues from two perspectives, barriers and cost of trade, alluding to how technology can ease up those processes. Through the inception of the Epower forum, women globally have learnt how to plug into E-commerce learning to harness the power of internet skills. Source: CIO East Africa

URC has started moving local cargo from Tororo to Kampala. Currently, URC is averaging 18,000-20,000 tonnes per month. In 2018, Uganda Railways Corporation (URC)took possession of the concession assets from Rift Valley Railways (RVR) and started operating the metre-gauge. URC cited RVR’s failure to perform as stipulated in the concession agreement to terminate the concession. Stephen Wakasenza, the chief commercial/ concession officer, says at the time of the takeover, railway transport in Uganda was in a mess. “We are now on track and the future is bright,” he says. He says at the take-over, RVR was only transporting goods on the northern Corridor, because it was not in its interest to move in the Southern Corridor. “It did not make business sense because it was not a profitable route. But as URC, we are looking at the bigger picture. We need to have alternative access to the sea. It is, therefore, in our best interest to have the Central Corridor and the Northern Corridor Operating,” Wakasenza explains. In June 2018, URC started movement on the central corridor and is now moving an average of 6,500 tonnes per month. URC has started moving local cargo from Tororo to Kampala. Currently, URC is averaging 18,000-20,000 tonnes per month. “Our biggest clients are Grain Bulk Haulers Ltd, Roofings Ltd, World Food Programme and Seroma Ltd. But at the time we took over, there was neither a Central Corridor nor local cargo,” he says. To open the Southern Corridor, URC repaired the line from...